UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06383
---------------------
Nuveen Michigan Quality Income Municipal Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: July 31
------------------
Date of reporting period: January 31, 2005
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT January 31, 2005
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
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
NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NVJ
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DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU
KEEP.(R)
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
I am pleased to report that over the six-month period covered by this semiannual
report your Fund continued to provide you with monthly tax-free income and an
attractive total return. For more details about the management strategy and
performance of your Fund, please see the Portfolio Manager's Perspective and
Performance Overview sections of this report.
As I noted in my last letter to you, our conversations with financial advisors
and investors suggest that many of you may be wondering whether long-term
interest rates will soon begin to rise substantially, how high they might go,
and whether that makes this a good time to adjust your holdings of fixed-income
investments. We can't answer that question for you - no one knows what the
future will bring.
What we do know from our experience is that a well-balanced portfolio,
structured and carefully monitored with the help of a trusted investment
professional, can be an important component in helping you achieve your
long-term financial goals. In
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK."
fact, a well-diversified portfolio may actually help to reduce your overall
investment risk. That is one reason why we believe that a municipal bond
investment like your Nuveen Fund can be an important building block in a
comprehensive investment program designed to perform well over the long term and
in a variety of market conditions.
As in past reports, I urge you to consider receiving future Fund reports and
other Fund information by e-mail and the Internet . Not only will you be able to
receive the information faster, but this also may help lower your Fund's
expenses. Sign up is quick and easy - see the inside front cover of this report
for instructions.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
March 15, 2005
Nuveen Municipal Closed-End Exchange-Traded Funds
(NUM, NMP, NZW, NUO, NXI, NBJ, NVJ)
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves reviews key investment strategies and the
six-month performance of these Michigan and Ohio Funds. Cathryn, who has been
with Nuveen since 1996, assumed portfolio management responsibility for the Ohio
Funds in August 2004 and for the Michigan Funds in January 2005.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THE
SIX MONTHS ENDED JANUARY 31, 2005?
Between August 2004 and January 2005, the Federal Reserve introduced four one-
quarter-point increases in the fed funds rate, raising this short-term target
from 1.25% to 2.25%. (On February 2, 2005, following the end of this reporting
period, the Fed announced another 0.25% increase, bringing the fed funds rate to
2.50%.) With the market anticipating increases in interest rates throughout the
period, our focus centered on finding bonds that we believed could add immediate
value to the Funds' portfolios while also preserving their ability to perform
well under a variety of future market scenarios.
Despite a decline in municipal issuance in both Michigan and Ohio, we continued
to find some attractive opportunities to execute our management strategy and
make several trades that could benefit the Funds. While not extensive during
this period, our purchase activities for all these Funds generally emphasized
finding premium bonds (those trading above their par value) with
intermediate-term maturities - that is, bonds that will mature in 15 to 23
years. In many cases, bonds in this part of the yield curve offered yields
similar to those of longer-term bonds with less inherent interest rate risk (the
risk that the value of a Fund's portfolio will decline if market interest rates
rise, since bond prices move in the opposite direction of interest rates).
Some of the additions to the portfolios during this period were financed with
the proceeds from sales of lower-rated holdings, as we continued to take
advantage of opportunities to selectively trim some BBB rated and nonrated
holdings. These sales included some of our larger healthcare positions,
especially in the Michigan Funds. Because lower-rated bonds generally performed
well over the past year, demand for these bonds was strong and we were able to
obtain attractive prices for the bonds we
4
sold. This process enabled us to reduce some of our more concentrated credit
positions and improve overall diversification for many of the Funds.
Another strategy designed to help us reduce interest rate risk is to hedge some
of our interest rate exposure in the derivatives markets. We implemented a
hedging program for NZW during this period. It is important to note that we did
not use the hedge in an attempt to profit from correctly predicting the timing
and direction of interest rate movements. Instead, our sole objective was to
reduce NZW's duration (and therefore its price sensitivity to interest rate
changes) without having a negative impact on its income stream or common share
dividend over the short term. The cost of the hedge is reflected as an addition
or subtraction to the Fund's net asset value (NAV) as the market value of the
hedge fluctuates. The hedge did succeed in reducing the volatility of NZW's NAV
over the course of this reporting period. At the same time, the hedge had a
negative market value as of January 31, 2005, because long-term interest rates
fell and bond prices rose during most of the time the hedge was in place. Please
note that the hedge was put in place because the Fund's portfolio duration (and
therefore its interest rate-related price volatility) was greater than the
desired level. This means that, although the hedge lost value because bond
prices in fact went up after the hedge was entered, the Fund's
longer-than-target portfolio duration resulted in interest rate-driven increases
in value that were greater than if the portfolio duration had been at the target
level, and these excess interest rate-driven portfolio returns roughly coincided
with and offset the losses on the hedge.
While general obligation (GO) bonds issued by the state of Michigan were
downgraded to Aa2 from Aa1 by Moody's in January 2005, this action had no
discernable impact on our management strategies or on the performance of the
Michigan Funds during this period. We generally focused our purchase activity on
GO bonds issued by local governments, rather than the state, in the belief that
this provided more stability and diversification.
5
HOW DID THE FUNDS PERFORM?
Individual results for the Michigan and Ohio Funds, as well as for comparative
indexes, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 1/31/05
MICHIGAN FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NUM 7.84% 7.81% 9.90% 7.82%
--------------------------------------------------------------------------------
NMP 7.56% 7.86% 10.16% 8.34%
--------------------------------------------------------------------------------
NZW 8.45% 8.30% NA NA
--------------------------------------------------------------------------------
Lipper Michigan
Municipal Debt Funds
Average1 7.70% 7.28% 10.86% 7.81%
--------------------------------------------------------------------------------
OHIO FUNDS
--------------------------------------------------------------------------------
NUO 7.29% 7.37% 8.87% 7.83%
--------------------------------------------------------------------------------
NXI 8.18% 8.88% NA NA
--------------------------------------------------------------------------------
NBJ 8.62% 9.22% NA NA
--------------------------------------------------------------------------------
NVJ 8.71% 8.42% NA NA
--------------------------------------------------------------------------------
Lipper Other States
Municipal Debt Funds
Average2 12.14% 7.17% 11.32% 9.15%
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index3 4.80% 4.86% 7.50% 6.86%
--------------------------------------------------------------------------------
*Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions or
upon the sale of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the six months ended January 31, 2005, the cumulative return on NAV for each
of the Michigan and Ohio Funds outperformed the return on the Lehman Brothers
Municipal Bond Index. NUM and NZW also outperformed the average return for the
Lipper Michigan peer group for this period, while NMP trailed this measure by a
slight margin. While each of the Ohio Funds underperformed the Lipper Other
States category average, it is important to note that the Lipper return
represents the overall average of returns for funds from 10 different states
exhibiting a variety of municipal market conditions. We believe this makes
direct comparisons between specific Funds and the Other States category average
less meaningful.
1 The Lipper Michigan Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 6 months, 7 funds; 1 year, 7 funds; 5 years, 5
funds; and 10 years, 4 funds. Fund and Lipper returns assume reinvestment
of dividends.
2 The Lipper Other States Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 6 months, 44 funds; 1 year, 44 funds; 5 years,
19 funds; and 10 years, 17 funds. Fund and Lipper returns assume
reinvestment of dividends.
3 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman indexes do not reflect any expenses.
6
The primary factor benefiting the six-month performances of these Funds relative
to that of the unleveraged Lehman Brothers index was the Funds' use of financial
leverage. While leveraging can add volatility to the Funds' NAVs and share
prices, especially during periods when interest rates rise, this strategy also
can provide opportunities for additional income and total return for common
shareholders when short-term interest rates remain relatively low and long-term
rates fall or remain fairly constant, as they did during this reporting period.
In general, shorter-term municipal rates tended to rise during this six-month
period and longer-term rates tended to fall, causing a flattening of the
municipal yield curve. As a result, bonds with longer maturities or greater
sensitivity to interest rate movements generally tended to perform better than
bonds with shorter maturities or less interest rate sensitivity. This benefited
the newer Funds, like NZW, NXI, NBJ and NVJ, because they had less exposure to
the shorter end of the yield curve than the older funds like NUM, NMP and NUO.
This accounted for most of the performance differential between these Funds over
the six-month reporting period.
All of the Funds benefited from their holdings of lower quality bonds, which
generally outperformed other credit quality sectors as the economy improved.
This was especially true in the healthcare sector, which ranked second in terms
of performance among the Lehman Brothers municipal revenue sectors for the
six-month period. NUM's and NMP's hospital holdings included Ba3 rated bonds
issued for the Detroit Medical Center, which rebounded and became strong
performers for the Funds. In the Ohio Funds, we continued to purchase hospital
bonds, such as the AA rated Montgomery County Catholic Health Initiatives, which
performed well since their addition to all four Ohio Fund portfolios in October
2004.
Bonds backed by the 1998 master tobacco settlement agreement also were among the
lower-rated credits that produced strong results during this period as the
litigation environment improved. As of January 31, 2005, NUM, NMP and all four
of the Ohio Funds held positions in tobacco bonds.
7
Pre-refunded bonds tended to underperform during this reporting period, due
primarily to their shorter effective maturities. Older Funds typically have more
advance refunded bonds than the more recently introduced Funds. As of January
31, 2005, NUM and NMP held 15% and 14%, respectively, of their portfolios in
pre-refunded bonds, and this served as a mild constraint on their performance
during this period. By contrast, NZW had 7% of its portfolio in pre-refunded
bonds, NUO had 9%, and the remaining three Ohio Funds--NXI, NBJ and NVJ--had no
pre-refunded bonds as of January 31, 2005.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
JANUARY 31, 2005?
We continued to believe that, given the current geopolitical and economic
climate, maintaining strong credit quality was an important requirement. As of
January 31, 2005, all seven of these Funds continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA among the
Michigan Funds ranging from 87% in NZW to 89% in NUM and 90% in NMP, while the
Ohio Funds had allocations ranging from 74% in NXI and 77% in NVJ to 81% in NBJ
and 85% in NUO.
At the end of January 2005, potential call exposure during 2005 and 2006 ranged
from 2% in NVJ, 3% in NZW and NBJ, and 5% in NUM to 10% in NXI, 11% in NMP, and
15% in NUO. The number of actual bond calls in all of these Funds will depend
largely on future market interest rates.
8
Dividend and Share Price
INFORMATION
As short-term interest rates remained relatively low throughout this reporting
period, the leveraged structures of these seven Funds continued to support their
dividend-paying capabilities. The extent of this benefit is tied in part to the
short-term rates these Funds pay their MuniPreferred(R) shareholders. During
periods of low short-term rates, leveraged Funds generally pay lower dividends
to their MuniPreferred shareholders, which can leave more earnings to support
common share dividends. This strategy helped to maintain the dividends of all of
these Funds throughout the reporting period.
In addition, due to capital gains generated by normal portfolio activity, common
shareholders of the following Funds received capital gains and net ordinary
income distributions at the end of December 2004 as indicated:
NUM $0.1165 per share
--------------------------------------------------------------------------------
NMP $0.0510 per share
--------------------------------------------------------------------------------
NUO $0.0354 per share
--------------------------------------------------------------------------------
NBJ $0.0225 per share
--------------------------------------------------------------------------------
NVJ $0.0183 per share
--------------------------------------------------------------------------------
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of
its earnings, the excess constitutes negative UNII that is likewise reflected in
the Fund's NAV. Each Fund will, over time, pay all of its net investment income
as dividends to shareholders. As of January 31, 2005, all of the Funds in this
report had positive UNII balances for both financial statement and tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums and discounts to their NAVs as shown in the accompanying chart.
FUND 1/31 PREM/DISC PERIOD AVG. PREM/DISC
--------------------------------------------------------------------------------
NUM 0.43% 0.09%
--------------------------------------------------------------------------------
NMP - 1.14% - 1.70%
--------------------------------------------------------------------------------
NZW 3.52% - 0.06%
--------------------------------------------------------------------------------
NUO 12.17% 5.25%
--------------------------------------------------------------------------------
NXI 2.72% 5.97%
--------------------------------------------------------------------------------
NBJ 2.94% 3.56%
--------------------------------------------------------------------------------
NVJ 0.19% 0.21%
--------------------------------------------------------------------------------
9
Nuveen Michigan Quality Income Municipal Fund, Inc.
NUM
Performance
OVERVIEW As of January 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 78%
AA 11%
A 7%
BBB 2%
BB or Lower 1%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.079
Mar 0.079
Apr 0.079
May 0.079
Jun 0.079
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Jan 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/04 16.35
16.3
16.38
16.45
16.37
16.45
16.38
16.36
16.37
16.37
16.32
16.4
16.48
16.39
16.4
16.49
16.48
16.47
16.4
16.4
16.5
16.5
16.46
16.45
16.53
16.48
16.57
16.52
16.46
16.59
16.53
16.51
16.53
16.63
16.55
16.49
16.54
16.55
16.59
16.43
16.37
16.33
16.37
16.4
16.05
15.84
15.5
15.5
15.65
15.65
15.59
15.6
15.3
15.22
15.26
15.25
15.49
15.27
15.25
15.1
14.72
14.73
14.78
15.16
15.29
15.25
15.42
15.06
14.7
14.69
14.63
14.39
14.48
14.55
14.56
14.57
14.41
14.33
14.44
14.48
14.5
14.6
14.75
14.77
14.77
14.67
14.8
14.83
14.84
14.78
14.81
14.81
14.89
14.88
14.99
14.86
14.76
14.75
14.78
14.75
14.75
14.64
14.63
14.69
14.73
14.75
14.9
14.9
14.97
15.08
14.99
15
15.14
15.13
15.11
15.04
15.05
15.08
15.05
15.04
15.05
15.07
15.18
15.11
15.1
15.08
15.2
15.2
15.33
15.45
15.5
15.5
15.49
15.49
15.45
15.48
15.45
15.41
15.62
15.57
15.45
15.57
15.6
15.56
15.75
15.8
15.62
15.78
15.8
15.8
15.9
16.1
15.7
15.73
15.78
15.9
15.85
15.72
15.63
15.78
15.74
15.67
15.58
15.65
15.7
15.87
15.82
15.9
16.03
15.87
15.74
15.68
15.73
15.85
15.93
15.84
15.92
15.9
15.87
15.73
15.9
15.85
16.02
16
16.1
16.2
16.21
16.1
16.26
16.27
16.25
16.53
16.53
16.68
16.5
16.55
16.57
16
15.7
15.75
15.84
15.91
15.97
16.04
16.05
16.05
16.05
15.99
15.99
15.87
15.91
16.05
15.91
15.95
15.85
15.72
15.78
15.84
15.8
15.85
15.95
15.95
15.94
15.96
16.05
16.14
16.1
16
15.91
15.86
16.2
16.19
16.24
16.3
16.45
16.36
16.3
16.45
16.39
16.5
16.4
16.25
16.15
16.08
16.07
16.04
16.2
16.24
16.07
16.04
16.08
16.13
16.09
16.11
16.02
1/31/05 16.19
FUND SNAPSHOT
------------------------------------
Share Price $16.19
------------------------------------
Common Share
Net Asset Value $16.12
------------------------------------
Premium/(Discount) to NAV 0.43%
------------------------------------
Market Yield 5.86%
------------------------------------
Taxable-Equivalent Yield1 8.49%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $188,558
------------------------------------
Average Effective
Maturity on Securities (Years) 16.12
------------------------------------
Leverage-Adjusted Duration 8.87
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month 10.45% 7.84%
(Cumulative)
------------------------------------
1-Year 5.92% 7.81%
------------------------------------
5-Year 11.18% 9.90%
------------------------------------
10-Year 7.77% 7.82%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 28.0%
------------------------------------
U.S. Guaranteed 17.4%
------------------------------------
Tax Obligation/Limited 15.6%
------------------------------------
Healthcare 12.5%
------------------------------------
Utilities 8.1%
------------------------------------
Water and Sewer 6.4%
------------------------------------
Education and Civic
Organizations 5.7%
------------------------------------
Other 6.3%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31%. For investments that generate qualified dividend income, the
taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1165 per share.
10
Nuveen Michigan Premium Income Municipal Fund, Inc.
NMP
Performance
OVERVIEW As of January 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 70%
AA 20%
A 7%
BBB 1%
BB or Lower 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.077
Mar 0.077
Apr 0.077
May 0.077
Jun 0.077
Jul 0.077
Aug 0.077
Sep 0.077
Oct 0.077
Nov 0.077
Dec 0.077
Jan 0.077
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/04 16.03
16.02
15.95
15.9
15.97
15.97
15.78
15.73
15.79
15.81
15.88
15.91
15.86
15.88
15.88
15.82
15.91
15.93
15.95
15.95
15.96
15.98
15.98
15.96
16.03
16.03
16.06
16
16.02
16.1
16.1
16.1
16.05
16.1
16.1
16.1
16.08
16.13
16.15
16.05
16.05
15.99
15.99
15.99
15.75
15.48
15.5
15.6
15.7
15.45
15.63
15.4
15.16
15.1
15.05
14.93
14.6
14.51
14.26
14.22
14.33
14.25
14.5
14.6
14.7
15
14.92
14.8
14.4
13.66
13.85
13.94
13.76
13.85
13.7
13.61
13.72
13.8
13.9
13.76
13.89
14.05
14.07
14.03
14.03
13.98
14.05
14.06
14.08
14.1
14.1
14.05
14.04
13.91
13.94
13.93
13.97
14.1
14.03
14
13.94
13.95
13.82
13.89
13.73
13.93
14.1
14.17
14.27
14.45
14.62
14.4
14.5
14.46
14.5
14.4
14.5
14.59
14.36
14.3
14.31
14.3
14.27
14.17
14.24
14.34
14.37
14.37
14.49
14.58
14.58
14.53
14.62
14.77
14.7
14.73
14.72
14.74
14.8
14.74
14.8
14.62
14.75
14.75
14.65
14.64
14.66
14.8
14.85
14.9
15.16
15.13
15.04
15.01
15.14
15.15
15.05
14.95
15.1
15.15
15.39
15.33
15.12
15.15
15.29
15.2
15.14
15.12
15.24
15.35
15.27
15.24
15.32
15.49
15.36
15.48
15.31
15.42
15.55
15.67
15.48
15.58
15.7
15.55
15.754
15.7
15.61
15.51
15.75
15.64
15.77
15.74
15.74
15.8
15.8
15.81
15.7
15.37
15.36
15.28
15.39
15.37
15.45
15.75
15.58
15.66
15.6
15.59
15.59
15.62
15.53
15.53
15.51
15.34
15.44
15.53
15.61
15.5
15.46
15.46
15.38
15.32
15.12
15.05
15.15
15.16
15.1
15.25
15.25
15.16
15.26
15.22
15.06
15.11
15.24
15.13
15.19
15.14
15.23
15.35
15.15
15.3
15.34
15.39
15.41
15.5
15.65
15.72
15.72
15.85
15.91
15.72
15.83
15.8
15.76
1/31/05 15.63
FUND SNAPSHOT
------------------------------------
Share Price $15.63
------------------------------------
Common Share
Net Asset Value $15.81
------------------------------------
Premium/(Discount) to NAV -1.16%
------------------------------------
Market Yield 5.91%
------------------------------------
Taxable-Equivalent Yield1 8.57%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $122,334
------------------------------------
Average Effective
Maturity on Securities
(Years) 16.78
------------------------------------
Leverage-Adjusted Duration 7.80
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month 12.44% 7.56%
(Cumulative)
------------------------------------
1-Year 4.35% 7.86%
------------------------------------
5-Year 12.22% 10.16%
------------------------------------
10-Year 9.25% 8.34%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 27.2%
------------------------------------
Tax Obligation/Limited 21.4%
------------------------------------
U.S. Guaranteed 16.0%
------------------------------------
Healthcare 10.3%
------------------------------------
Utilities 9.4%
------------------------------------
Education and Civic
Organizations 5.4%
------------------------------------
Other 10.3%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31%. For investments that generate qualified dividend income, the
taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0510 per share.
11
Nuveen Michigan Dividend Advantage Municipal Fund
NZW
Performance
OVERVIEW As of January 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 69%
AA 18%
A 8%
BBB 4%
BB or Lower 1%
Bar Chart:
2004-2005 Monthly Tax-Free Dividends Per Share
Feb 0.0745
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0745
Jul 0.0745
Aug 0.0745
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0745
Jan 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/04 15.66
15.66
15.66
15.62
15.7
15.7
15.71
15.79
15.79
15.79
15.8
15.9
15.9
15.8
15.71
15.71
15.72
15.75
15.83
15.83
15.87
15.88
15.95
15.9
16.07
15.8
15.9
15.89
15.81
15.73
15.65
15.78
15.86
15.9
15.9
15.9
15.85
15.97
15.98
15.96
15.91
15.93
15.94
15.95
15.89
15.49
14.96
14.91
14.8
14.8
14.38
14.3
14.32
14.2
14.3
14.21
14.2
13.97
13.97
13.97
14
14.19
14.3
14.35
14.38
14.68
14.65
14.51
14.1
14.2
14.2
14.13
14.2
14.28
14.22
14.12
13.85
13.89
13.76
13.76
13.69
13.87
13.98
13.97
13.97
13.96
13.98
13.94
13.81
13.8
13.89
13.83
13.74
13.64
13.7
13.6
13.6
13.65
13.69
13.69
13.69
13.5
13.52
13.48
13.46
13.53
13.65
13.7
13.85
13.85
13.97
14.01
14.1
14.1
14.06
14.01
14.08
14.3
14.44
14.34
14.36
14.35
14.2
14.44
14.44
14.45
14.65
14.65
14.76
14.99
14.9
14.75
14.75
14.76
14.72
14.67
14.71
14.85
14.87
14.8
14.9
14.9
15.11
15.18
15.15
15.15
15.13
15.14
14.89
15
14.92
14.9
14.9
14.89
14.8
14.8
14.88
14.84
14.86
14.86
15
15
15
14.8
15.01
15.17
15.1
15.1
15.12
15.24
15.24
15.24
15.15
15.25
15.1
15.1
15.16
15.05
15.1
15
15
14.95
14.95
14.9
14.854
14.99
14.99
15.07
15.01
15.15
15.2
15.21
15.21
15.2
15.39
15.3
15.4
15.02
14.99
14.93
14.84
14.76
14.84
14.9
15.05
15.23
15.35
15.17
15.17
15.25
15.55
15.61
15.61
15.61
15.63
15.25
15.31
15.15
15.13
15.31
15.31
15.18
15.2
15.2
15.19
15.25
15.14
15.1
15.08
15.22
15.3
15.47
15.47
15.54
15.71
15.71
15.55
15.75
15.5
15.5
15.63
15.7
15.75
15.85
15.85
15.95
16.15
16.35
16.46
16.25
15.85
15.85
15.93
16.04
16.04
1/31/05 16.16
FUND SNAPSHOT
------------------------------------
Share Price $16.16
------------------------------------
Common Share
Net Asset Value $15.61
------------------------------------
Premium/(Discount) to NAV 3.52%
------------------------------------
Market Yield 5.53%
------------------------------------
Taxable-Equivalent Yield1 8.01%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $32,171
------------------------------------
Average Effective
Maturity on Securities
(Years) 19.11
------------------------------------
Leverage-Adjusted Duration 7.68
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month 13.53% 8.45%
(Cumulative)
------------------------------------
1-Year 9.47% 8.30%
------------------------------------
Since
Inception 8.19% 8.59%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 31.4%
------------------------------------
Tax Obligation/Limited 19.0%
------------------------------------
Healthcare 10.3%
------------------------------------
Utilities 10.2%
------------------------------------
Water and Sewer 7.9%
------------------------------------
U.S. Guaranteed 7.9%
------------------------------------
Education and Civic
Organizations 4.8%
------------------------------------
Other 8.5%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31%. For investments that generate qualified dividend income, the
taxable equivalent yield is lower.
12
Nuveen Ohio Quality Income Municipal Fund, Inc.
NUO
Performance
OVERVIEW As of January 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 63%
AA 22%
A 8%
BBB 5%
BB or Lower 1%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.0835
Mar 0.0835
Apr 0.0835
May 0.0835
Jun 0.0835
Jul 0.0835
Aug 0.0835
Sep 0.0835
Oct 0.0835
Nov 0.0835
Dec 0.0835
Jan 0.0835
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/04 18.28
18.13
18.14
18.05
18.1
18.15
18.07
18.08
18.07
18.08
18.08
18.01
18.03
18.06
18.07
18.13
18.4
18.45
18.35
18.35
18.35
18.48
18.4
18.3
18.4
18.68
18.68
18.55
18.28
18.49
18.66
18.65
18.74
18.73
18.73
18.55
18.48
18.69
18.75
18.78
18.53
18.48
18.46
18.45
18.3
18
17.9
18
17.78
17.89
17.45
17.5
17.47
17.3
17.05
17.08
16.7
16.6
16.55
16.23
16.22
15.7
15.95
16
16
16
16.02
16.05
15.8
15.4
15.39
15.4
15.32
15.31
15.4
15.4
15.46
15.55
15.53
15.6
15.84
15.85
15.91
15.93
15.93
15.91
15.94
16.05
16.09
16.03
16.01
16.24
16.05
15.78
15.72
15.63
15.64
15.62
15.75
15.75
15.67
15.68
15.72
15.7
15.6
15.7
15.84
16.03
16.04
16.29
16.44
16.58
16.6
16.44
16.44
16.43
16.62
16.66
16.8
16.7
16.5
16.64
16.6
16.3
16.24
16.25
16.3
16.3
16.32
16.36
16.41
16.42
16.51
16.45
16.4
16.45
16.4
16.4
16.43
16.51
16.38
16.52
16.6
16.65
16.65
16.71
16.8
16.88
16.99
17
17.05
16.91
16.89
16.97
16.88
16.86
16.91
16.86
16.75
16.86
16.85
16.8
16.9
16.98
16.95
16.9
16.84
16.9
17
17.06
17.05
17.13
16.9
16.98
16.94
17
16.94
16.97
17.1
17.05
17.09
17.2
17.17
17.09
16.98
17.06
17.05
17.04
17.15
17.22
17.29
17.51
17.51
17.45
17.3
17.35
17.6
17.42
17.36
17.37
17.39
17.29
17.4
17.43
17.54
17.61
17.74
17.65
17.84
17.8
17.8
17.88
17.87
17.82
18.04
17.91
17.98
18.29
18.4
18.2
18.25
18.22
18.08
18.1
18.05
18.09
18.13
18.1
18.05
18.16
18.21
18.2
18.42
18.5
18.51
18.67
18.45
18.427
18.45
18.6
18.4
18.19
18.1
17.85
17.8
18.15
18.4
18.59
18.7
18.5
18.6
18.7
18.8
18.85
18.6
1/31/05 18.89
FUND SNAPSHOT
------------------------------------
Share Price $18.89
------------------------------------
Common Share
Net Asset Value $16.84
------------------------------------
Premium/(Discount) to NAV 12.17%
------------------------------------
Market Yield 5.30%
------------------------------------
Taxable-Equivalent Yield1 7.91%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $163,186
------------------------------------
Average Effective
Maturity on Securities
(Years) 16.88
------------------------------------
Leverage-Adjusted Duration 7.57
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month 19.41% 7.29%
(Cumulative)
------------------------------------
1-Year 9.50% 7.37%
------------------------------------
5-Year 10.32% 8.87%
------------------------------------
10-Year 8.95% 7.83%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 31.2%
------------------------------------
Healthcare 17.4%
------------------------------------
U.S. Guaranteed 10.1%
------------------------------------
Water and Sewer 7.9%
------------------------------------
Education and Civic
Organizations 6.6%
------------------------------------
Housing/Multifamily 6.5%
------------------------------------
Transportation 5.5%
------------------------------------
Utilities 4.9%
------------------------------------
Other 9.9%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. For investments that generate qualified dividend income, the
taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0354 per share.
13
Nuveen Ohio Dividend Advantage Municipal Fund
NXI
Performance
OVERVIEW As of January 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 51%
AA 23%
A 12%
BBB 11%
BB or Lower 2%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Feb 0.081
Mar 0.081
Apr 0.081
May 0.081
Jun 0.081
Jul 0.081
Aug 0.081
Sep 0.081
Oct 0.081
Nov 0.081
Dec 0.081
Jan 0.081
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/04 16
16.07
16.14
16.17
16.2
16.2
16.24
16.45
16.73
16.9
16.82
16.88
16.51
16.49
16.49
16.6
16.7
16.7
16.75
16.75
16.75
16.76
16.76
16.88
16.95
16.94
16.92
16.77
16.89
16.85
16.9
16.96
17.24
17.2
16.96
16.95
17
17.02
16.91
16.92
17.02
16.97
17.07
16.82
16.3
16.1
15.69
15.7
15.89
15.65
15.24
15.26
15
15.1
15.09
15.37
15.19
15.13
15.05
14.95
14.71
14.64
14.63
14.65
14.74
14.65
14.5
14.5
14.19
13.91
13.95
14.06
14.35
14.36
14.57
14.51
14.6
14.48
14.48
14.19
14.49
14.76
14.56
14.56
14.56
14.35
14.36
14.3
14.17
14.17
14.24
14.12
14.31
14.13
14.26
14.35
14.4
14.44
14.51
14.36
14.39
14.65
14.57
14.41
14.35
14.24
14.45
14.6
14.8
14.65
14.98
14.81
14.76
14.64
14.69
15.06
15
15.1
15.08
14.86
14.71
14.86
14.71
14.72
14.8
14.71
14.8
14.8
14.79
14.86
14.86
14.85
15.07
15.21
15.16
15.21
15.27
15.25
15.25
15.5
15.56
15.55
15.87
15.9
16.01
15.85
15.61
15.72
15.85
15.95
16
16.04
15.95
15.95
16.25
16.39
16.39
16.42
16.04
16.1
16.1
16.01
16.15
16.35
16.42
16.23
16.22
16.37
16.23
16.35
16.3
16.2
16.21
16.29
16.2
16.1
16.22
16.22
16.24
16.4
16.38
16.39
16.4
16.32
16.26
16.3
16.43
16.49
16.62
16.63
16.55
16.65
16.65
16.74
16.77
16.65
16.67
16.58
16.55
16.55
16.47
16.6
16.6
16.6
16.44
16.89
16.89
16.72
16.61
16.6
16.6
16.69
16.75
16.73
16.78
16.55
16.71
16.8
16.8
16.8
16.95
17.1
17
16.95
16.88
16.9
16.74
16.57
16.55
16.64
16.79
16.8
17.31
17.47
17.24
17.75
17.65
18
17.38
17.45
17.25
17.25
17.07
16.39
16.44
16.44
16.4
16.48
16.61
16.34
16.45
16.46
16.26
16.26
16.27
1/31/05 16.21
FUND SNAPSHOT
------------------------------------
Share Price $16.21
------------------------------------
Common Share
Net Asset Value $15.78
------------------------------------
Premium/(Discount) to NAV 2.72%
------------------------------------
Market Yield 6.00%
------------------------------------
Taxable-Equivalent Yield1 8.96%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $66,787
------------------------------------
Average Effective
Maturity on Securities
(Years) 17.73
------------------------------------
Leverage-Adjusted Duration 7.25
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month 12.79% 8.18%
(Cumulative)
------------------------------------
1-Year 7.70% 8.88%
------------------------------------
Since
Inception 8.17% 8.90%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 29.7%
------------------------------------
Education and Civic
Organizations 17.0%
------------------------------------
Healthcare 14.5%
------------------------------------
Utilities 8.6%
------------------------------------
Tax Obligation Limited 8.0%
------------------------------------
Water and Sewer 6.8%
------------------------------------
Housing/Multifamily 5.0%
------------------------------------
Other 10.4%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. For investments that generate qualified dividend income, the
taxable equivalent yield is lower.
14
Nuveen Ohio Dividend Advantage Municipal Fund 2
NBJ
Performance
OVERVIEW As of January 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 68%
AA 13%
A 10%
BBB 8%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.077
Mar 0.077
Apr 0.077
May 0.077
Jun 0.077
Jul 0.077
Aug 0.077
Sep 0.077
Oct 0.077
Nov 0.077
Dec 0.077
Jan 0.077
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/04 16.15
16.1
16
16.16
16.14
16.02
16.07
15.92
15.98
16
16.03
16
15.95
15.92
15.93
15.94
15.92
15.96
15.97
15.97
16.02
15.99
15.9
15.89
16.09
16.08
16.08
16.07
15.93
15.95
16.09
16.15
16.3
16.25
16.11
16.17
16.17
16.14
16.18
16.42
16.4
16.2
16.25
16.25
15.8
15.6
15.18
15.18
15.12
15.1
14.61
14.74
14.54
14.6
14.6
14.35
14.35
14.5
14.3
14.15
14.09
14.05
13.88
14.05
14.3
14.08
14.2
14.25
14.15
13.75
13.75
13.85
13.82
13.95
13.77
13.97
14.09
13.96
14
13.97
14
14.05
14.04
14.05
14.05
14.1
13.95
13.9
13.76
13.81
13.85
13.63
13.7
13.52
13.6
13.6
13.68
13.8
13.8
13.55
13.65
13.62
13.77
13.8
13.75
13.85
13.89
14.01
14.15
14.15
14.15
14.13
14.29
14.25
14.61
14.63
14.62
14.8
14.65
14.6
14.62
14.62
14.51
14.63
14.63
14.63
14.7
14.7
14.65
14.7
14.7
14.95
15.09
15.04
15.03
15.11
15.18
15.1
15.05
15.05
15
15
15.2
15.5
15.18
15.17
15.35
15.45
15.47
15.48
15.48
15.48
15.48
15.8
15.61
15.53
15.7
15.57
15.45
15.5
15.57
15.63
15.52
15.58
15.51
15.75
15.58
15.56
15.57
15.65
15.55
15.5
15.45
15.34
15.36
15.35
15.52
15.65
15.7
15.72
15.6
15.75
15.93
15.93
15.95
15.99
16
16
16.1
15.93
16.03
16.2
16.2
16.3
16.38
16.41
16.4
16.33
16.2
16.15
16.05
16.17
16.2
16.25
16.27
16.12
16.25
16.27
16.36
16.14
16.1
16.15
16.15
16.02
16.15
16.05
16.22
16.12
16.11
16.13
16.18
16.28
16.28
16.3
16.24
16.3
16.3
16.36
16.39
16.3
16.3
16.32
16.53
16.41
16.5
16.65
17.16
16.75
16.62
16.52
16.58
16.41
16.55
15.9
16.08
16
16.09
16.15
15.98
15.99
16
16
15.97
15.99
16.16
1/31/05 16.09
FUND SNAPSHOT
------------------------------------
Share Price $16.09
------------------------------------
Common Share
Net Asset Value $15.63
------------------------------------
Premium/(Discount) to NAV 2.94%
------------------------------------
Market Yield 5.74%
------------------------------------
Taxable-Equivalent Yield1 8.57%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $48,729
------------------------------------
Average Effective
Maturity on Securities (Years) 17.23
------------------------------------
Leverage-Adjusted Duration 8.54
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month 2.81% 8.62%
(Cumulative)
------------------------------------
1-Year 5.52% 9.22%
------------------------------------
Since
Inception 8.14% 8.76%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 36.8%
------------------------------------
Healthcare 15.8%
------------------------------------
Tax Obligation/Limited 11.2%
------------------------------------
Education and Civic
Organizations 8.6%
------------------------------------
Utilities 6.0%
------------------------------------
Consumer Staples 5.7%
------------------------------------
Transportation 5.3%
------------------------------------
Water and Sewer 5.2%
------------------------------------
Other 5.4%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. For investments that generate qualified dividend income, the
taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0225 per share.
15
Nuveen Ohio Dividend Advantage Municipal Fund 3
NVJ
Performance
OVERVIEW As of January 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 55%
AA 22%
A 16%
BBB 7%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.073
Oct 0.073
Nov 0.073
Dec 0.073
Jan 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/04 15.84
15.7
15.7
15.68
16.1
16.1
16.1
16.1
15.82
15.99
16
16
16.21
16.25
16.5
16.41
16.3
16.35
16.43
16.43
16.11
15.94
15.95
15.95
15.95
16.02
16.04
16.04
16.06
16.06
16
16.08
16.23
16.5
16.6
16.61
16.61
16.41
16.41
16.55
16.55
16.39
16.33
16.48
15.89
15.8
15.61
15
15.05
14.95
14.95
14.55
14.42
14.6
14.59
14.61
14.39
14.33
14.05
14
13.86
13.83
13.82
13.8
13.9
13.72
13.79
13.75
13.35
13.35
13.38
13.2
13.2
13.1
13.22
13.22
13.25
13.32
13.41
13.47
13.34
13.39
13.56
13.6
13.6
13.72
13.39
13.46
13.74
13.79
13.7
13.6
13.65
13.43
13.4
13.4
13.26
13.26
13.31
13.47
13.34
13.5
13.41
13.5
13.6
13.49
13.61
13.61
13.7
13.7
13.85
14
14
13.82
14.29
14.5
14.5
14.4
14.4
14.3
14.2
14.2
14.31
14.35
14.39
14.2
14.3
14.3
14.25
14.35
14.34
14.35
14.46
14.37
14.5
14.54
14.55
14.55
14.56
14.63
14.49
14.5
14.54
14.65
14.65
14.65
14.89
15.1
15.03
15.05
15.3
15.05
15.08
15.2
15.5
15.45
15.4
15.13
15.13
15.07
15.19
15.1
15.1
15.11
15.1
14.95
15.01
15.12
15.09
15.12
15.06
15.05
14.88
14.94
14.83
14.82
15
15.15
15.01
14.89
15.06
15
14.95
15
15.19
14.96
14.96
14.96
14.91
14.96
15.07
15.03
15.03
15.08
15.3
15.22
15.12
15.1
15.16
15.34
15.46
15.5
15.5
15.4
15.4
15.46
15.65
15.82
16.2
16.1
15.94
16.2
16.05
16.12
16.12
16.12
16.12
16.12
16.14
16.25
16.24
16.3
16.29
16.31
16.478
16.5
16.64
16.61
16.61
16.66
16.5
16.35
16.58
16.6
16.49
16.87
17.28
17.28
17.1
17
16.95
16.7
16.59
16.2
16.08
16.01
16.01
16.04
16
15.7
15.8
15.8
15.69
15.7
15.73
1/31/05 15.79
FUND SNAPSHOT
------------------------------------
Share Price $15.79
------------------------------------
Common Share
Net Asset Value $15.76
------------------------------------
Premium/(Discount) to NAV 0.19%
------------------------------------
Market Yield 5.55%
------------------------------------
Taxable-Equivalent Yield1 8.28%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $34,008
------------------------------------
Average Effective
Maturity on Securities (Years) 16.97
------------------------------------
Leverage-Adjusted Duration 9.04
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month 13.69% 8.71%
(Cumulative)
------------------------------------
1-Year 6.43% 8.42%
------------------------------------
Since
Inception 8.02% 9.65%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 32.8%
------------------------------------
Healthcare 15.8%
------------------------------------
Tax Obligation/Limited 15.2%
------------------------------------
Education and Civic
Organizations 9.3%
------------------------------------
Water and Sewer 8.7%
------------------------------------
Transportation 6.2%
------------------------------------
Consumer Staples 4.1%
------------------------------------
Other 7.9%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. For investments that generate qualified dividend income, the
taxable equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0183 per share.
16
Shareholder
MEETING REPORT
The Shareholder Meeting was held in Chicago, Illinois, on November 17, 2004.
NUM NMP NZW
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 10,572,136 -- 6,854,182 -- 2,001,499 --
Withhold 102,010 -- 91,746 -- 10,148 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,674,146 -- 6,945,928 -- 2,011,647 --
====================================================================================================================================
Lawrence H. Brown
For 10,568,667 -- 6,851,967 -- 1,992,899 --
Withhold 105,479 -- 93,961 -- 18,748 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,674,146 -- 6,945,928 -- 2,011,647 --
====================================================================================================================================
Jack B. Evans
For 10,566,727 -- 6,854,632 -- 2,001,499 --
Withhold 107,419 -- 91,296 -- 10,148 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,674,146 -- 6,945,928 -- 2,011,647 --
====================================================================================================================================
William C. Hunter
For 10,563,420 -- 6,854,367 -- 2,001,499 --
Withhold 110,726 -- 91,561 -- 10,148 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,674,146 -- 6,945,928 -- 2,011,647 --
====================================================================================================================================
William J. Schneider
For -- 3,593 -- 2,192 -- 636
Withhold -- 21 -- 7 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,614 -- 2,199 -- 636
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,593 -- 2,192 -- 636
Withhold -- 21 -- 7 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,614 -- 2,199 -- 636
====================================================================================================================================
Judith M. Stockdale
For 10,561,279 -- 6,854,212 -- 2,001,499 --
Withhold 112,867 -- 91,716 -- 10,148 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,674,146 -- 6,945,928 -- 2,011,647 --
====================================================================================================================================
17
Shareholder
MEETING REPORT (continued)
NUO NXI
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 8,727,410 -- 4,126,440 --
Withhold 74,224 -- 23,660 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,801,634 -- 4,150,100 --
====================================================================================================================================
Lawrence H. Brown
For 8,726,087 -- 4,124,415 --
Withhold 75,547 -- 25,685 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,801,634 -- 4,150,100 --
====================================================================================================================================
Jack B. Evans
For 8,720,442 -- 4,126,440 --
Withhold 81,192 -- 23,660 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,801,634 -- 4,150,100 --
====================================================================================================================================
William C. Hunter
For 8,716,779 -- 4,126,440 --
Withhold 84,855 -- 23,660 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,801,634 -- 4,150,100 --
====================================================================================================================================
William J. Schneider
For -- 2,974 -- 1,200
Withhold -- 33 -- 21
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,007 -- 1,221
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,974 -- 1,200
Withhold -- 33 -- 21
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,007 -- 1,221
====================================================================================================================================
Judith M. Stockdale
For 8,719,664 -- 4,125,640 --
Withhold 81,970 -- 24,460 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,801,634 -- 4,150,100 --
====================================================================================================================================
18
NBJ NVJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 3,036,346 -- 2,103,575 --
Withhold 17,855 -- 24,002 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,054,201 -- 2,127,577 --
====================================================================================================================================
Lawrence H. Brown
For 3,030,372 -- 2,102,575 --
Withhold 23,829 -- 25,002 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,054,201 -- 2,127,577 --
====================================================================================================================================
Jack B. Evans
For 3,031,631 -- 2,103,575 --
Withhold 22,570 -- 24,002 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,054,201 -- 2,127,577 --
====================================================================================================================================
William C. Hunter
For 3,021,947 -- 2,093,575 --
Withhold 32,254 -- 34,002 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,054,201 -- 2,127,577 --
====================================================================================================================================
William J. Schneider
For -- 881 -- 660
Withhold -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 881 -- 660
====================================================================================================================================
Timothy R. Schwertfeger
For -- 881 -- 660
Withhold -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 881 -- 660
====================================================================================================================================
Judith M. Stockdale
For 3,036,346 -- 2,103,575 --
Withhold 17,855 -- 24,002 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,054,201 -- 2,127,577 --
====================================================================================================================================
19
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of
INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.5% (5.7% OF TOTAL INVESTMENTS)
$ 1,720 Ferris State College, Michigan, General Revenue Bonds, 4/08 at 100.00 AAA $ 1,815,907
Series 1998, 5.000%, 10/01/23 - AMBAC Insured
1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,901,640
Obligation Revenue Refunding Bonds, Kettering University,
Series 2001, 5.500%, 9/01/17 - AMBAC Insured
1,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AAA 1,627,815
Bonds, Series 2000 XII-T, 5.300%, 9/01/10 (Alternative
Minimum Tax) - AMBAC Insured
1,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 1,059,270
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 (Alternative
Minimum Tax) - AMBAC Insured
Michigan Technological University, General Revenue Bonds,
Series 2004A:
1,060 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 1,146,538
1,115 5.000%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 1,201,000
1,170 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,255,808
Wayne State University, Michigan, General Revenue Bonds,
Series 1999:
3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AAA 3,789,498
1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AAA 1,059,630
1,000 Western Michigan University, General Revenue Refunding 11/13 at 100.00 AAA 1,085,940
Bonds, Series 2003, 5.000%, 11/15/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.6% (12.5% OF TOTAL INVESTMENTS)
2,900 Dearborn Hospital Finance Authority, Michigan, Hospital 11/05 at 102.00 AAA 3,025,570
Revenue Bonds, Oakwood Obligated Group, Series 1995A,
5.875%, 11/15/25 - FGIC Insured
1,235 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 1,321,252
Mortgage Hospital Revenue Bonds, Portage Health System
Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured
3,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 3,722,705
Spectrum Health, Series 2001A, 5.250%, 1/15/21
1,709 Michigan State Hospital Finance Authority, Collateralized Loan, No Opt. Call Baa2 1,723,902
Detroit Medical Center, Series 2001, 7.360%, 3/01/07
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,641,405
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A 1,083,370
Refunding Bonds, OSF Healthcare System, Series 1999,
6.125%, 11/15/19
1,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/09 at 101.00 AAA 1,900,226
Refunding Bonds, Mercy Health Services Obligated Group,
Series 1999X, 5.750%, 8/15/19 - MBIA Insured
Michigan State Hospital Finance Authority, Hospital Revenue
Refunding Bonds, Mercy Mt. Clemens Corporation Obligated
Group, Series 1999A:
3,385 5.750%, 5/15/17 - MBIA Insured 5/09 at 101.00 AAA 3,765,643
500 5.750%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 547,425
2,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 2,396,682
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/28
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 BBB+ 1,044,880
Refunding Bonds, Memorial Healthcare Center Obligated
Group, Series 1999, 5.875%, 11/15/21
5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 5,367,700
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 5,781,325
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
2,195 University of Michigan, Medical Service Plan Revenue Bonds, No Opt. Call AA+ 1,801,041
Series 1991, 0.000%, 12/01/10
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.4% (3.6% OF TOTAL INVESTMENTS)
$ 2,675 Michigan Housing Development Authority, FNMA Limited 12/20 at 101.00 AAA $ 2,885,683
Obligation Multifamily Housing Revenue Bonds, Parkview
Place Apartments, Series 2002A, 5.550%, 12/01/34
(Alternative Minimum Tax)
1,800 Michigan Housing Development Authority, FNMA Enhanced 9/15 at 100.00 Aaa 1,857,240
Limited Obligation Multifamily Revenue Bonds, Renaissance
Apartments, Series 2002, 5.500%, 8/01/35 (Alternative
Minimum Tax)
3,115 Michigan Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 3,195,865
Revenue Bonds, Series 1995B, 6.150%, 10/01/15 -
MBIA Insured
2,110 Michigan Housing Development Authority, Rental Housing 4/09 at 101.00 AAA 2,157,581
Revenue Bonds, Series 1999A, 5.300%, 10/01/37
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,000 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,059,800
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8% (1.2% OF TOTAL INVESTMENTS)
3,300 Michigan State Hospital Finance Authority, Hospital Revenue 1/07 at 102.00 N/R 3,142,788
Bonds, Presbyterian Villages of Michigan Obligated Group,
Series 1997, 6.375%, 1/01/25
200 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 BBB+ 201,906
Refunding Bonds, Porter Hills Presbyterian Village,
Series 1998, 5.375%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,750 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,775,200
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 41.6% (28.0% OF TOTAL INVESTMENTS)
Allegan County Public School District, Michigan, General
Obligation Bonds, Series 2000:
1,850 5.600%, 5/01/20 - FSA Insured 5/10 at 100.00 AAA 2,050,929
1,435 5.750%, 5/01/30 - FSA Insured 5/10 at 100.00 AAA 1,596,538
Anchor Bay School District, Macomb and St. Clair Counties,
Michigan, Unlimited Tax General Obligation Refunding
Bonds, Series 2001:
2,500 5.000%, 5/01/21 5/11 at 100.00 AA+ 2,699,700
3,200 5.000%, 5/01/29 5/11 at 100.00 AA+ 3,309,888
1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA+ 1,065,840
Michigan, General Obligation Refunding Bonds, Series 2002,
5.000%, 5/01/25
1,000 Belding School District, Ionia, Kent and Montcalm Counties, 5/08 at 100.00 AAA 1,047,840
Michigan, General Obligation Refunding Bonds, Series 1998,
5.000%, 5/01/26 - AMBAC Insured
1,200 Birmingham, Michigan, General Obligation Bonds, 10/12 at 100.50 AAA 1,302,348
Series 2002, 5.000%, 10/01/20
1,320 Bridgeport Spaulding Community School District, Saginaw 5/12 at 100.00 AA+ 1,482,294
County, Michigan, General Obligation Bonds, Series 2002,
5.500%, 5/01/16
2,110 Caledonia Community Schools, Kent, Allegan and Barry 5/13 at 100.00 AA+ 2,325,600
Counties, Michigan, General Obligation Bonds, Series 2003,
5.250%, 5/01/20
1,000 Charlotte Public School District, Easton County, Michigan, 5/09 at 100.00 AAA 1,068,500
General Obligation Unlimited Tax School Building and Site
Bonds, Series 1999, 5.250%, 5/01/25 - FGIC Insured
2,000 Clarkston Community Schools, Michigan, General Obligation 5/07 at 100.00 AAA 2,101,880
Bonds, School Bond Loan Fund - QSBLF, Series 1997,
5.250%, 5/01/23 - MBIA Insured
1,195 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 1,316,818
5.250%, 4/01/24 - AMBAC Insured
2,000 Detroit City School District, Wayne County, Michigan, General No Opt. Call AAA 2,459,400
Obligation Bonds, Series 2002A, 6.000%, 5/01/19 -
FGIC Insured
1,065 Edwardsburg Public School, Cass County, Michigan, General 5/14 at 100.00 AAA 1,148,741
Obligation Bonds, Series 2004, 5.000%, 5/01/22 -
FSA Insured
21
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Fitzgerald Public School District, Macomb County, Michigan,
General Obligation Bonds, Series 2004B:
$ 1,150 5.000%, 5/01/16 - AMBAC Insured 11/14 at 100.00 AAA $ 1,273,855
2,100 5.000%, 5/01/17 - AMBAC Insured 11/14 at 100.00 AAA 2,313,507
1,085 Freeland Community School District, Saginaw, Midland and 5/10 at 100.00 AA+ 1,186,990
Bay Counties, Michigan, General Obligation Bonds,
Series 2000, 5.250%, 5/01/19
3,300 Grand Ledge Public Schools, Eaton, Clinton and Ionia 5/05 at 102.00 AAA 3,387,615
Counties, Michigan, General Obligation Refunding Bonds,
Series 1995, 5.375%, 5/01/24 - MBIA Insured
Grand Rapids and Kent County Joint Building Authority, Michigan,
Limited Tax General Obligation Bonds, Devos Place Project,
Series 2001:
8,900 0.000%, 12/01/25 No Opt. Call AAA 3,333,317
3,000 0.000%, 12/01/26 No Opt. Call AAA 1,055,970
1,400 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA+ 1,512,406
Obligation Bonds, Series 2003, 5.000%, 5/01/21
1,500 Huron Valley School District, Oakland and Livingston 11/11 at 100.00 AA+ 1,693,305
Counties, Michigan, General Obligation Bonds, Series 2001,
5.500%, 5/01/17
1,065 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,148,741
Obligation School Building and Site Bonds, Series 2004,
5.000%, 5/01/22 - FSA Insured
2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AA+ 2,138,300
General Obligation Bonds, Series 2002, 5.000%, 5/01/24
1,790 Lansing Building Authority, Michigan, General Obligation Bonds, 6/13 at 100.00 AAA 1,891,654
Series 2003A, 5.000%, 6/01/26 - MBIA Insured
1,785 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,933,976
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 -
MBIA Insured
4,000 Michigan, General Obligation Bonds, Environmental Protection 5/13 at 100.00 AA+ 4,437,120
Program, Series 2003A, 5.250%, 5/01/20
4,300 Montcalm County Building Authority, Michigan, Correctional 5/10 at 100.00 AAA 4,606,633
Facility Improvement General Obligation Bonds, Series 2000,
5.250%, 5/01/25 - AMBAC Insured
2,500 Montrose School District, Michigan, School Building and No Opt. Call AAA 3,102,525
Site Bonds, Series 1997, 6.000%, 5/01/22 - MBIA Insured
1,255 Morenci Area Schools, Lenawee County, Michigan, General 5/12 at 100.00 AAA 1,391,105
Obligation Bonds, Series 2002, 5.250%, 5/01/19 -
MBIA Insured
1,625 Northville Public Schools, Wayne County, Michigan, General 11/11 at 100.00 AA+ 1,815,986
Obligation Bonds, Series 2001, 5.375%, 5/01/18
1,000 Oakland County Building Authority, Michigan, General 9/11 at 100.00 AAA 1,068,040
Obligation Bonds, Series 2002, 5.125%, 9/01/22
4,200 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 5,008,080
Refunding Bonds, Series 2001A, 5.500%, 7/01/20 -
MBIA Insured
2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,712,450
General Obligation Bonds, Series 2000, 5.125%, 3/01/17 -
AMBAC Insured
1,050 Warren Consolidated School District, Macomb and Oakland 11/11 at 100.00 AAA 1,176,095
Counties, Michigan, General Obligation Bonds, Series 2001,
5.375%, 5/01/19 - FSA Insured
1,980 Washtenaw County Building Authority, Michigan, Limited 9/07 at 100.00 AAA 2,114,125
Tax General Obligation Bonds, Series 1999,
5.400%, 9/01/17 - FGIC Insured
1,125 Whitehall District Schools, Muskegon County, Michigan, 11/11 at 100.00 AA+ 1,269,979
General Obligation Bonds, Series 2001, 5.500%, 5/01/17
1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 2,029,997
Tax General Obligation QSBLF Bonds, Series 1996,
5.500%, 5/01/25 - MBIA Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.1% (15.6% OF TOTAL INVESTMENTS)
$ 1,800 Wayne County, Dearborn Heights, Michigan, Tax Increment 10/10 at 100.00 AAA $ 1,905,336
Financing Authority, Limited Tax General Obligation Bonds,
Police and Courthouse Facility, Series 2001A,
5.000%, 10/01/26 - MBIA Insured
1,000 Grand Rapids Building Authority, Kent County, Michigan, No Opt. Call AA 1,118,470
Limited Tax General Obligation Bonds, Series 1998,
5.000%, 4/01/16
1,145 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,209,990
Limited Tax General Obligation Bonds, Series 2001,
5.125%, 10/01/26 - MBIA Insured
1,100 Michigan Municipal Bond Authority, Clean Water Revolving 10/12 at 100.00 AAA 1,226,764
Fund Revenue Refunding Bonds, Series 2002,
5.250%, 10/01/18
75 Michigan Municipal Bond Authority, Local Government Loan 5/05 at 100.00 A 75,235
Program Revenue Sharing Bonds, Series 1992D,
6.650%, 5/01/12
4,210 Michigan Municipal Bond Authority, Clean Water Revolving 10/14 at 100.00 AAA 4,620,686
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/19
1,150 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 1,242,828
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23
Michigan State Building Authority, Revenue Refunding Bonds,
Facilities Program, Series 2003II:
5,100 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AAA 5,494,077
5,000 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 5,367,300
Michigan, Certificates of Participation, Series 2000:
2,000 5.500%, 6/01/19 - AMBAC Insured 6/10 at 100.00 AAA 2,220,180
2,000 5.500%, 6/01/27 - AMBAC Insured 6/10 at 100.00 AAA 2,186,860
1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 1,066,750
5.000%, 11/01/25 - FSA Insured
3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,870,895
5.250%, 10/01/21 - FSA Insured
1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,148,697
Wastewater Management System 2 Revenue Bonds,
Series 2002, 5.000%, 7/01/26 - FGIC Insured
4,100 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 A 4,544,358
Transportation Authority, Series 1996Y, 5.500%, 7/01/36
915 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,109,273
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 5,338,350
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/21 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.6% (0.5% OF TOTAL INVESTMENTS)
1,000 Capital Region Airport Authority, Michigan, Revenue 7/12 at 100.00 AAA 1,065,300
Refunding Bonds, Series 2002, 5.250%, 7/01/21
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 25.9% (17.4% OF TOTAL INVESTMENTS)
2,190 Anchor Bay School District, Macomb and St. Clair Counties, 5/09 at 100.00 AAA 2,466,509
Michigan, General Obligation Bonds, Series 1999I,
6.000%, 5/01/29 (Pre-refunded to 5/01/09) - FGIC Insured
250 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 269,430
Asset Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 1,142,820
Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) -
FGIC Insured
Detroit, Michigan, Sewerage Disposal System Revenue Bonds,
Series 1997A:
950 5.500%, 7/01/20 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,026,171
2,050 5.500%, 7/01/20 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA
2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 2,274,280
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to
1/01/10) - FGIC Insured
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2001A:
3,400 5.750%, 7/01/28 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 101.00 AAA 3,940,906
770 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 863,971
1,000 East China School District, St. Clair County, Michigan, 11/11 at 100.00 AA+*** 1,128,870
General Obligation Bonds, Series 2001, 5.500%, 5/01/20
2,000 East Grand Rapids Public Schools, Kent County, Michigan, 5/09 at 100.00 AAA 2,252,520
Unlimited Tax General Obligation School Building and Site
Bonds, Series 2000, 6.000%, 5/01/29 (Pre-refunded
to 5/01/09) - FSA Insured
23
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** (continued)
$ 2,000 Grand Rapids Township Economic Development Corporation, 7/09 at 101.00 BBB+*** $ 2,220,960
Michigan, Limited Obligation Revenue Bonds, Porter Hills
Obligated Group, Cook Valley Estate Project, Series 1999,
5.450%, 7/01/29 (Pre-refunded to 7/01/09)
725 Lake Orion Community School District, Oakland County, 5/05 at 101.00 AAA 737,267
Michigan, Unlimited Tax General Obligation Refunding
Bonds, Series 1995, 5.500%, 5/01/20 - AMBAC Insured
1,000 Mancelona Public School District, Antrim and Kalkaska 5/06 at 100.00 AAA 1,035,520
Counties, Michigan, General Obligation School Building
and Site Bonds, Series 1997, 5.200%, 5/01/17 (Pre-refunded
to 5/01/06) - FGIC Insured
1,000 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,127,210
Development Inc., Series 2001, 5.375%, 9/01/21
(Pre-refunded to 9/01/11) - MBIA Insured
Michigan State Hospital Finance Authority, Hospital Revenue
Bonds, Ascension Health Credit Group, Series 1999A:
1,000 6.125%, 11/15/23 (Pre-refunded to 11/15/09) - MBIA Insured 11/09 at 101.00 AAA 1,149,950
2,500 6.125%, 11/15/26 (Pre-refunded to 11/15/09) 11/09 at 101.00 AAA 2,874,875
3,460 Michigan State Hospital Finance Authority, Hospital Revenue 5/08 at 101.00 AAA 3,630,613
Refunding Bonds, St. John's Health System, Series 1998A,
5.000%, 5/15/28 - AMBAC Insured
250 Michigan South Central Power Agency, Power Supply System No Opt. Call A3*** 289,075
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,100 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 BBB+*** 1,204,489
Refunding Bonds, Porter Hills Presbyterian Village,
Series 1998, 5.375%, 7/01/28 (Pre-refunded to 7/01/08)
2,875 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 3,259,100
Michigan, General Obligation Bonds, Series 2000A,
5.750%, 5/01/24 (Pre-refunded to 5/01/10) - FGIC Insured
4,000 Pinckney Community Schools, Livingston and Washtenaw 5/07 at 100.00 AAA 4,266,400
Counties, Michigan, Unlimited Tax General Obligation
School Building and Site Bonds, Series 1997,
5.500%, 5/01/27 (Pre-refunded to 5/01/07) - FGIC Insured
1,125 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 A*** 1,296,934
Revenue Bonds, Series 2000B, 6.000%, 7/01/39
(Pre-refunded to 7/01/10)
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A-*** 1,014,320
Series 1995X, 5.500%, 7/01/25 (Pre-refunded to 7/01/05)
85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+*** 105,073
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
685 Reeths-Puffer Schools, Muskegon County, Michigan, School 5/05 at 101.00 AAA 697,515
Building and Site Refunding Bonds, Series 1995,
5.750%, 5/01/15 (Pre-refunded to 5/01/05) - FGIC Insured
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,133,600
Counties, Michigan, General Obligation Bonds, Series 2000I,
5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC Insured
2,100 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 2,344,272
Unlimited Tax General Obligation School Building and
Site Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded
to 5/01/09) - FGIC Insured
2,600 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 2,966,184
Unlimited Tax General Obligation School Building and
Site Bonds, Series 2000, 5.900%, 5/01/18 (Pre-refunded
to 5/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.1% (8.1% OF TOTAL INVESTMENTS)
3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 3,258,120
Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 -
AMBAC Insured
3,225 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 3,604,647
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,630 Michigan Strategic Fund, Limited Obligation Revenue No Opt. Call AAA 4,856,613
Refunding Bonds, Detroit Edison Company, Series 1991BB,
7.000%, 5/01/21 - AMBAC Insured
2,000 Michigan Strategic Fund, Limited Obligation Pollution No Opt. Call Aaa 2,157,720
Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory
put 9/01/11) - AMBAC Insured
4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 4,193,160
Pollution Control Revenue Refunding Bonds, Detroit
Edison Company, Series 2001C, 5.450%, 9/01/29
3,000 Michigan Strategic Fund, Limited Obligation Revenue 12/12 at 100.00 AAA 3,182,100
Refunding Bonds, Detroit Edison Company, Series 2002C,
5.450%, 12/15/32 (Alternative Minimum Tax) - XLCA Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA $ 1,061,800
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
400 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 434,680
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.6% (6.4% OF TOTAL INVESTMENTS)
1,500 Detroit, Michigan, Sewerage Disposal System Revenue 7/05 at 101.00 AAA 1,530,030
Refunding Bonds, Series 1995B, 5.250%, 7/01/21 -
MBIA Insured
1,730 Detroit, Michigan, Sewerage Disposal System Revenue 7/07 at 101.00 AAA 1,822,814
Bonds, Series 1997A, 5.000%, 7/01/22 - MBIA Insured
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,756,575
Revenue Bonds, Series 2001B, 5.500%, 7/01/29 -
FGIC Insured
2,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 2,178,800
Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 -
FSA Insured
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2003A:
4,025 5.000%, 7/01/24 - MBIA Insured 7/13 at 100.00 AAA 4,305,663
3,000 5.000%, 7/01/25 - MBIA Insured 7/13 at 100.00 AAA 3,199,020
730 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 782,662
Bonds, Series 2001A, 5.250%, 7/01/33 - FGIC Insured
Muskegon Heights, Muskegon County, Michigan, Water Supply
System Revenue Bonds, Series 2000A:
1,040 5.625%, 11/01/25 - MBIA Insured 11/10 at 100.00 Aaa 1,155,284
1,160 5.625%, 11/01/30 - MBIA Insured 11/10 at 100.00 Aaa 1,288,587
------------------------------------------------------------------------------------------------------------------------------------
$ 265,914 Total Long-Term Investments (cost $257,207,103) - 148.7% 280,433,149
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,124,896
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (94,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 188,558,045
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
25
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of
INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.8% (5.4% OF TOTAL INVESTMENTS)
Eastern Michigan University, General Revenue Bonds,
Series 2003:
$ 1,000 5.000%, 6/01/28 - FGIC Insured 6/13 at 100.00 AAA $ 1,048,890
1,450 5.000%, 6/01/33 - FGIC Insured 6/13 at 100.00 AAA 1,511,596
2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 2,118,540
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 (Alternative
Minimum Tax) - AMBAC Insured
1,000 Saginaw Valley State University, Michigan, General Revenue 7/09 at 100.00 Aaa 1,095,230
Bonds, Series 1999, 5.625%, 7/01/29 - AMBAC Insured
3,500 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 3,708,705
Series 1999, 5.125%, 11/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 14.8% (10.3% OF TOTAL INVESTMENTS)
2,050 Dearborn Hospital Finance Authority, Michigan, Hospital 11/05 at 102.00 AAA 2,138,765
Revenue Bonds, Oakwood Obligated Group, Series 1995A,
5.875%, 11/15/25 - FGIC Insured
2,200 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 2,353,648
Mortgage Hospital Revenue Bonds, Portage Health System
Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 2/05 at 101.00 Ba3 2,000,880
500 6.500%, 8/15/18 2/05 at 101.00 Ba3 500,060
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,641,405
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17
4,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/09 at 101.00 AAA 4,379,400
Refunding Bonds, Mercy Mt. Clemens Corporation Obligated
Group, Series 1999A, 5.750%, 5/15/29 - MBIA Insured
500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A1 527,000
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31
4,300 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 4,616,222
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.5% (4.5% OF TOTAL INVESTMENTS)
1,000 Michigan Housing Development Authority, GNMA 4/12 at 102.00 Aaa 1,040,190
Collateralized Limited Obligation Multifamily Housing
Revenue Bonds, Burkshire Pointe Apartments, Series 2002A,
5.400%, 10/20/32 (Alternative Minimum Tax)
500 Michigan Housing Development Authority, FNMA Enhanced 9/15 at 100.00 Aaa 530,655
Limited Obligation Multifamily Revenue Bonds, Renaissance
Apartments, Series 2002, 5.350%, 8/01/22 (Alternative
Minimum Tax)
2,400 Michigan Housing Development Authority, Limited Obligation 4/05 at 102.00 AAA 2,474,760
Revenue Bonds, Walled Lake Villa Project, Series 1993,
6.000%, 4/15/18 - FSA Insured
1,500 Michigan Housing Development Authority, Limited Obligation 4/05 at 102.00 AAA 1,531,485
Revenue Bonds, Breton Village Green Project, Series 1993,
5.625%, 10/15/18 - FSA Insured
Mt. Clemens Housing Corporation, Michigan, FHA-Insured
Section 8 Assisted Multifamily Housing Revenue Refunding
Bonds, Clinton Place Project, Series 1992A:
885 6.600%, 6/01/13 6/05 at 100.00 AAA 890,859
1,500 6.600%, 6/01/22 6/05 at 100.00 AAA 1,508,310
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,050 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,065,120
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 39.0% (27.2% OF TOTAL INVESTMENTS)
$ 2,500 Anchor Bay School District, Macomb and St. Clair Counties, 5/11 at 100.00 AA+ $ 2,699,700
Michigan, Unlimited Tax General Obligation Refunding
Bonds, Series 2001, 5.000%, 5/01/21
1,475 Anchor Bay School District, Macomb and St. Clair Counties, 11/13 at 100.00 AA+ 1,593,428
Michigan, General Obligation Bonds, Series 2003,
5.000%, 5/01/21
1,000 Central Montcalm Public Schools, Montcalm and Ionia 5/09 at 100.00 AAA 1,107,940
Counties, Michigan, General Obligation Unlimited Tax
School Building and Site Bonds, Series 1999,
5.750%, 5/01/24 - MBIA Insured
1,375 Chippewa Valley Schools, Macomb County, Michigan, 5/11 at 100.00 AA+ 1,432,145
General Obligation Bonds, Series 2001, 5.000%, 5/01/26
2,665 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 2,936,670
5.250%, 4/01/24 - AMBAC Insured
Detroit City School District, Wayne County, Michigan, General
Obligation Bonds, Series 2002A:
1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AAA 2,243,975
750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AAA 930,473
2,500 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 2,680,600
Obligation Bonds, Series 2003B, 5.000%, 5/01/23 -
FGIC Insured
500 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 562,835
Unlimited Tax School Building and Site Improvement
Bonds, Series 2001A, 5.500%, 5/01/21 - FSA Insured
3,815 East Lansing Building Authority, Ingham and Clinton Counties, 4/11 at 100.00 AA 4,237,511
Michigan, Unlimited Tax General Obligation Building Authority
Bonds, Series 2000, 5.375%, 4/01/25
1,350 Gull Lake Community Schools, Barry and Calhoun Counties, 5/14 at 100.00 AAA 1,451,817
Kalamazoo, Michigan, General Obligation Bonds,
Series 2004, 5.000%, 5/01/23 - FSA Insured
2,000 Howell Public Schools, Livingston County, Michigan, 11/13 at 100.00 AA+ 2,151,980
General Obligation Bonds, Series 2003, 5.000%, 5/01/22
1,000 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA+ 1,074,620
Obligation Bonds, Series 2004, 5.000%, 5/01/22
1,185 Linden Community School District, Genesse County, Michigan, 11/13 at 100.00 AA+ 1,280,144
General Obligation Bonds, Series 2003, 5.000%, 5/01/21
1,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,083,460
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 -
MBIA Insured
Michigan, General Obligation Bonds, Environmental Protection
Program, Series 2003A:
1,000 5.250%, 5/01/20 5/13 at 100.00 AA+ 1,109,280
2,000 5.250%, 5/01/21 5/13 at 100.00 AA+ 2,213,460
1,000 Otsego Public Schools District, Allegan and Kalamazoo 5/14 at 100.00 AAA 1,067,450
Counties, Michigan, General Obligation Bonds, Series 2004,
5.000%, 5/01/25 - FSA Insured
1,100 Oxford Area Community Schools, Oakland and Lapeer 5/14 at 100.00 AAA 1,174,195
Counties, Michigan, General Obligation Bonds,
Series 2004, 5.000%, 5/01/25 - FSA Insured
2,515 Plainwell Community Schools, Allegan County, Michigan, 11/12 at 100.00 AA+ 2,622,240
General Obligation Bonds, Series 2002, 5.000%, 5/01/28
South Lyon Community Schools, Oakland, Washtenaw and Livingston
Counties, Michigan, General Obligation Bonds, Series 2003:
2,350 5.250%, 5/01/19 - FGIC Insured 11/12 at 100.00 AAA 2,605,045
1,575 5.250%, 5/01/22 - FGIC Insured 11/12 at 100.00 AAA 1,737,761
1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,588,918
Michigan, General Obligation Bonds, Series 2004,
5.250%, 5/01/20 - MBIA Insured
2,830 Warren Consolidated School District, Macomb and Oakland 5/13 at 100.00 AA+ 3,119,169
Counties, Michigan, General Obligation Refunding Bonds,
Series 2003, 5.250%, 5/01/20
2,950 West Bloomfield School District, Oakland County, Michigan, 5/14 at 100.00 AAA 3,181,959
General Obligation Bonds, Series 2004, 5.000%, 5/01/22 -
FSA Insured
27
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.9% (21.4% OF TOTAL INVESTMENTS)
$ 7,000 Detroit-Wayne County Stadium Authority, Michigan, 2/07 at 102.00 AAA $ 7,404,460
Limited Tax General Obligation Building Authority Stadium
Bonds, Series 1997, 5.250%, 2/01/27 - FGIC Insured
2,800 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 3,026,016
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23
1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/10 at 100.00 AA 1,650,270
Program, Series 2000I, 5.375%, 10/15/20
Michigan State Building Authority, Revenue Refunding Bonds,
Facilities Program, Series 2001I:
2,570 5.500%, 10/15/19 10/11 at 100.00 AA 2,899,243
6,500 5.000%, 10/15/24 10/11 at 100.00 AA 6,955,520
Michigan State Building Authority, Revenue Refunding Bonds,
Facilities Program, Series 2003II:
5,000 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AAA 5,386,350
2,480 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 2,662,181
1,500 Michigan, Comprehensive Transportation Revenue Refunding 11/11 at 100.00 AAA 1,632,735
Bonds, Series 2001A, 5.000%, 11/01/19 - FSA Insured
Wayne County, Michigan, Limited Tax General Obligation Airport
Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport,
Series 2001A:
1,500 5.500%, 12/01/18 - MBIA Insured 12/11 at 101.00 AAA 1,690,545
4,270 5.000%, 12/01/30 - MBIA Insured 12/11 at 101.00 AAA 4,436,530
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.6% (0.3% OF TOTAL INVESTMENTS)
1,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/05 at 100.00 CCC 707,050
American Airlines Inc., Series 1993A, 6.300%, 6/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 23.1% (16.0% OF TOTAL INVESTMENTS)
355 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 382,591
Asset Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,285,640
Series 1999A, 5.875%, 7/01/27 (Pre-refunded to
1/01/10) - FGIC Insured
1,370 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 7/07 at 101.00 AAA 1,479,847
Series 1997A, 5.500%, 7/01/20 (Pre-refunded to 7/01/07) -
MBIA Insured
1,385 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 1,554,025
Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded
to 7/01/11) - FGIC Insured
4,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 4,548,560
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded
to 1/01/10) - FGIC Insured
2,500 Kalamazoo Hospital Finance Authority, Michigan, Hospital 5/06 at 102.00 AAA 2,656,075
Revenue Refunding and Improvement Bonds, Bronson
Methodist Hospital, Series 1996, 5.750%, 5/15/16
(Pre-refunded to 5/15/06) - MBIA Insured
1,000 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,127,210
Development Inc., Series 2001, 5.375%, 9/01/21
(Pre-refunded to 9/01/11) - MBIA Insured
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/05 at 100.00 AAA 3,137,550
Refunding Bonds, St. John's Hospital, Series 1993A,
6.000%, 5/15/13 - AMBAC Insured
2,500 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 2,874,875
Bonds, Ascension Health Credit Group, Series 1999A,
6.125%, 11/15/26 (Pre-refunded to 11/15/09)
75 Michigan South Central Power Agency, Power Supply System No Opt. Call A3*** 86,723
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,240 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 1,398,174
Michigan, General Obligation Bonds, Series 2000A,
5.625%, 5/01/16 (Pre-refunded to 5/01/10) - FGIC Insured
Reeths-Puffer Schools, Muskegon County, Michigan, School
Building and Site Refunding Bonds, Series 1995:
620 5.750%, 5/01/15 (Pre-refunded to 5/01/05) - FGIC Insured 5/05 at 101.00 AAA 631,947
380 5.750%, 5/01/15 (Pre-refunded to 5/01/05) - FGIC Insured 5/05 at 101.00 AAA 386,943
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,133,600
Counties, Michigan, General Obligation Bonds, Series 2000I,
5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** (continued)
$ 1,500 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA $ 1,674,480
Unlimited Tax General Obligation School Building and Site
Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded
to 5/01/09) - FGIC Insured
2,500 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 2,840,025
Unlimited Tax General Obligation School Building and Site
Bonds, Series 2000, 5.800%, 5/01/17 (Pre-refunded
to 5/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.5% (9.4% OF TOTAL INVESTMENTS)
1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,086,040
Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 -
AMBAC Insured
925 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 1,033,891
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,000 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Aaa 3,236,580
Revenue Refunding Bonds, Detroit Edison Company,
Series 1995CC, 4.850%, 9/01/30 (Mandatory put
9/01/11) - AMBAC Insured
5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 5,241,450
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 2001C, 5.450%, 9/01/29
3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 AAA 3,182,100
Bonds, Detroit Edison Company, Series 2002C,
5.450%, 12/15/32 (Alternative Minimum Tax) -
XLCA Insured
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,061,800
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
1,500 Wyandotte, Michigan, Electric Revenue Refunding Bonds, 10/08 at 101.00 AAA 1,644,720
Series 2002, 5.375%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.0% (4.9% OF TOTAL INVESTMENTS)
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,756,575
Revenue Bonds, Series 2001B, 5.500%, 7/01/29 -
FGIC Insured
4,960 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 5,403,423
Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 -
FSA Insured
1,315 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 1,409,863
Bonds, Series 2001A, 5.250%, 7/01/33 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 163,255 Total Long-Term Investments (cost $163,685,213) - 144.1% 176,274,102
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 2,059,720
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (45.8)% (56,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 122,333,822
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
29
Nuveen Michigan Dividend Advantage Municipal Fund (NZW)
Portfolio of
INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.1% (4.8% OF TOTAL INVESTMENTS)
$ 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa $ 1,202,061
Obligation Revenue Refunding Bonds, Kettering University,
Series 2001, 5.000%, 9/01/26 - AMBAC Insured
1,010 Michigan Technological University, General Revenue Bonds, 10/13 at 100.00 AAA 1,096,325
Series 2004A, 5.000%, 10/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.4% (10.3% OF TOTAL INVESTMENTS)
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 1,063,630
Spectrum Health, Series 2001A, 5.250%, 1/15/21
700 Michigan State Hospital Finance Authority, Hospital Revenue 1/06 at 102.00 Ba3 708,519
Refunding Bonds, Sinai Hospital, Series 1995,
6.625%, 1/01/16
500 Michigan State Hospital Finance Authority, Hospital Revenue 5/06 at 102.00 A1 511,850
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 790,500
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31
1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 1,892,070
Revenue Bonds, William Beaumont Hospital,
Series 2001M, 5.250%, 11/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.5% (3.7% OF TOTAL INVESTMENTS)
1,700 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 1,775,650
Limited Obligation Multifamily Housing Revenue Bonds,
Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.1% (2.8% OF TOTAL INVESTMENTS)
1,250 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,324,750
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5% (0.9% OF TOTAL INVESTMENTS)
500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB+ 488,210
Republic Services Inc., Series 2001, 4.250%, 8/01/31
(Alternative Minimum Tax) (Mandatory put 4/01/14)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.6% (1.1% OF TOTAL INVESTMENTS)
500 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 507,200
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 46.9% (31.4% OF TOTAL INVESTMENTS)
1,000 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 1,120,210
Obligation Bonds, Series 2002A, 5.375%, 5/01/24 -
FGIC Insured
1,000 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 1,125,670
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 5.500%, 5/01/21 - FSA Insured
1,000 Durand Area Schools, Shiawasee County, Michigan, General 5/07 at 100.00 AAA 1,054,760
Obligation Bonds, Series 1997, 5.375%, 5/01/23 -
FGIC Insured
500 Fitzgerald Public School District, Macomb County, Michigan, 11/14 at 100.00 AAA 553,850
General Obligation Bonds, Series 2004B, 5.000%, 5/01/16 -
AMBAC Insured
1,000 Garden City School District, Wayne County, Michigan, 5/11 at 100.00 AA+ 1,041,560
General Obligation Refunding Bonds, Series 2001,
5.000%, 5/01/26
2,200 Huron School District, Wayne and Monroe Counties, Michigan, 5/11 at 100.00 AAA 2,441,626
General Obligation Bonds, Series 2001, 5.375%, 5/01/26 -
FSA Insured (PLG1)
1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA+ 1,562,190
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/27
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 500 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA $ 539,315
Obligation School Building and Site Bonds, Series 2004,
5.000%, 5/01/22 - FSA Insured
1,050 Lawton Community Schools, Van Buren County, Michigan, 11/11 at 100.00 AA+ 1,185,314
General Obligation Bonds, Series 2001, 5.500%, 5/01/21
1,000 Oxford Area Community Schools, Oakland and Lapeer 11/11 at 100.00 AA+ 1,128,870
Counties, Michigan, General Obligation Bonds,
Series 2001, 5.500%, 5/01/17
500 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AAA 543,230
Obligation Bonds, Series 2001, 5.150%, 11/01/22 -
FGIC Insured
Washtenaw County, Michigan, Limited Tax General Obligation
Bonds, Sylvan Township Water and Wastewater System, Series 2001:
500 5.000%, 5/01/19 - MBIA Insured 5/09 at 100.50 AAA 537,970
800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 856,200
1,300 Willow Run Community Schools, Washtenaw County, 5/11 at 100.00 AA+ 1,403,844
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.4% (19.0% OF TOTAL INVESTMENTS)
1,300 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,373,788
Limited Tax General Obligation Bonds, Series 2001,
5.125%, 10/01/26 - MBIA Insured
1,205 Michigan State Building Authority, Revenue Refunding Bonds, 10/11 at 100.00 AA 1,289,446
Facilities Program, Series 2001I, 5.000%, 10/15/24
2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,133,500
5.000%, 11/01/25 - FSA Insured (PLG2)
1,450 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,514,192
Wastewater Management System 2 Revenue Bonds,
Series 2002, 5.000%, 7/01/26 - FGIC Insured
915 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,109,273
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
1,650 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 1,714,350
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/30 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 11.8% (7.9% OF TOTAL INVESTMENTS)
515 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 577,851
Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded to
7/01/11) - FGIC Insured
1,000 Michigan Municipal Bond Authority, Drinking Water 10/10 at 101.00 AAA 1,157,480
Revolving Fund Revenue Bonds, Series 2000,
5.875%, 10/01/17 (Pre-refunded to 10/01/10)
235 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 Aaa 262,709
Bonds, Series 2001A, 5.125%, 7/01/31 (Pre-refunded
to 7/01/11)
500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 551,690
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+*** 105,073
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
1,000 Rochester Community School District, Oakland and 11/11 at 100.00 AA+*** 1,128,030
Macomb Counties, Michigan General Obligation Bonds,
Series 2001II, 5.500%, 5/01/22 (Pre-refunded to 11/01/11)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.2% (10.2% OF TOTAL INVESTMENTS)
1,115 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,205,148
Electric Utility System Revenue Bonds, Series 2003A,
5.000%, 7/01/21 - FSA Insured
1,235 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,357,005
Turbine 1 Project, Series 2001A, 5.250%, 1/01/24 -
AMBAC Insured
2,215 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 2,328,894
Pollution Control Revenue Refunding Bonds, Fixed Rate
Conversion, Detroit Edison Company, Series 1999C,
5.650%, 9/01/29 (Alternative Minimum Tax)
31
Nuveen Michigan Dividend Advantage Municipal Fund (NZW) (continued)
Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.9% (7.9% OF TOTAL INVESTMENTS)
$ 1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA $ 1,171,050
Revenue Bonds, Series 2001B, 5.500%, 7/01/29 -
FGIC Insured
1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 1,089,400
Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 -
FSA Insured
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2001A:
1,000 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 1,032,910
485 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 519,987
------------------------------------------------------------------------------------------------------------------------------------
$ 44,615 Total Long-Term Investments (cost $44,907,205) - 149.4% 48,077,150
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 94,194
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 32,171,344
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT JANUARY 31, 2005:
UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with JPMorgan dated January 11, 2005, to pay
semi-annually the notional amount multiplied by 5.235%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). $1,500,000 8/17/05 8/17/25 $(46,464)
Agreement with Morgan Stanley dated January 31, 2005,
to pay semi-annually the notional amount multiplied by
5.058% (annualized) and receive quarterly the notional
amount multiplied by the three-month USD-LIBOR
(United States Dollar-London Inter-Bank Offered Rates). 1,500,000 8/16/05 8/16/35 (4,630)
------------------------------------------------------------------------------------------------------------------------------------
$(51,094)
====================================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
(PLG1) Portion of security, with an aggregate market value
of $16,647, has been pledged to collateralize the net
payment obligations under forward swap contracts.
(PLG2) Portion of security, with an aggregate market value
of $277,355, has been pledged to collateralize the net
payment obligations under forward swap contracts.
See accompanying notes to financial statements.
32
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of
INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7% (1.2% OF TOTAL INVESTMENTS)
$ 2,800 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,736,076
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.4% (6.6% OF TOTAL INVESTMENTS)
770 Ohio State Education, Student Loan Revenue Bonds, 6/07 at 102.00 AAA 810,510
Supplemental Student Loan Program, Series 1997A-1,
5.850%, 12/01/19 (Alternative Minimum Tax) -
AMBAC Insured
1,200 Ohio Higher Educational Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,231,248
Bonds, University of Findlay, Series 1996, 6.125%, 9/01/16
1,415 Ohio Higher Educational Facilities Commission, Revenue 11/14 at 100.00 AA 1,530,606
Bonds, Denison University, Series 2004, 5.000%, 11/01/21
1,320 Ohio Higher Educational Facilities Commission, Revenue 12/14 at 100.00 AAA 1,412,519
Bonds, University of Dayton, Series 2004,
5.000%, 12/01/25 - AMBAC Insured
1,750 Ohio Higher Education Facilities Commission, General 10/13 at 100.00 AA 1,878,310
Revenue Bonds, Oberlin College, Series 2003,
5.125%, 10/01/24
1,200 Ohio State University, General Receipts Bonds, 12/12 at 100.00 AA 1,264,284
Series 2002A, 5.125%, 12/01/31
3,000 Ohio State University, General Receipts Bonds, 6/13 at 100.00 AA 3,319,140
Series 2003B, 5.250%, 6/01/22
1,510 University of Akron, Ohio, General Receipts Bonds, 1/13 at 100.00 AAA 1,629,411
Series 2003A, 5.000%, 1/01/21 - AMBAC Insured
850 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 914,745
Series 2003C, 5.000%, 6/01/22 - FGIC Insured
1,200 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,310,724
Series 2004D, 5.000%, 6/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 24.8% (17.4% OF TOTAL INVESTMENTS)
2,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 2,033,220
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.375%, 11/15/24
1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/07 at 102.00 AAA 1,076,150
Improvement Bonds, MetroHealth System, Series 1997,
5.625%, 2/15/17 - MBIA Insured
2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, 7/13 at 100.00 Aa3 2,203,020
Cleveland Clinic Health System, Series 2003A,
6.000%, 1/01/32
4,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 4,705,830
Firelands Regional Medical Center, Series 2002A,
5.625%, 8/15/32
Franklin County, Ohio, Hospital Revenue Refunding and
Improvement Bonds, Children's Hospital Project, Series 1996A:
1,000 5.750%, 11/01/20 11/06 at 101.00 Aa2 1,036,060
1,500 5.875%, 11/01/25 11/06 at 101.00 Aa2 1,552,320
2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital 5/14 at 100.00 AAA 2,745,549
Medical Center, Series 2004J, 5.250%, 5/15/16 -
FGIC Insured
2,500 Marion County, Ohio, Hospital Revenue Refunding and 5/06 at 102.00 BBB+ 2,616,325
Improvement Bonds, The Community Hospital, Series 1996,
6.375%, 5/15/11
2,405 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,516,015
and Improvement Bonds, Upper Valley Medical Center, S
eries 1996A, 6.250%, 5/15/16
1,500 Montgomery County, Ohio, Hospital Facilities Revenue 4/06 at 102.00 AAA 1,582,200
Refunding and Improvement Bonds, Kettering Medical
Center, Series 1996, 5.625%, 4/01/16 - MBIA Insured
3,000 Montgomery County, Ohio, Hospital Facilities Revenue 4/10 at 101.00 A3 3,346,830
Bonds, Kettering Medical Center, Series 1999,
6.750%, 4/01/18
2,500 Montgomery County, Ohio, Revenue Bonds, Catholic 5/14 at 100.00 AA 2,584,000
Health Initiatives, Series 2004A, 5.000%, 5/01/30
33
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 6,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- $ 6,173,520
Hospital Revenue Refunding and Improvement Bonds,
Series 1998, 5.375%, 11/01/29
2,500 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,699,425
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30
1,500 Steubenville, Ohio, Hospital Facilities Revenue 10/10 at 100.00 A3 1,665,300
Refunding and Improvement Bonds, Trinity Health
System, Series 2000, 6.375%, 10/01/20
1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue 10/11 at 101.00 AA 1,910,742
Bonds, Union Hospital Project, Series 2001,
5.750%, 10/01/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.3% (6.5% OF TOTAL INVESTMENTS)
1,385 Clermont County, Ohio, GNMA Collateralized Mortgage 2/05 at 102.00 Aaa 1,409,390
Revenue Bonds, S.E.M. Villa II Project, Series 1994A,
5.950%, 2/20/30
985 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/10 at 102.00 Aaa 1,012,452
Housing Mortgage Revenue Bonds, West Tech Apartments
Project, Series 2002A, 5.350%, 3/20/33 (Alternative
Minimum Tax)
1,435 Cuyahoga County, Ohio, GNMA Collateralized Loan 6/08 at 105.00 Aaa 1,548,365
Multifamily Housing Revenue Bonds, Water Street
Associates Ltd., Series 1997, 6.150%, 12/20/26
(Alternative Minimum Tax)
Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing
Mortgage Revenue Bonds, Longwood Phase One Associates LP, Series 2001A:
2,475 5.350%, 1/20/21 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,631,618
2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,341,395
1,000 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/12 at 102.00 Aaa 1,041,430
Housing Mortgage Revenue Bonds, Livingston Park
Apartments Project, Series 2002A, 5.350%, 9/20/27
(Alternative Minimum Tax)
985 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/05 at 103.00 Aa 1,006,207
Mortgage Revenue Bonds, Hamilton Creek Apartments
Project, Series 1994A, 5.550%, 7/01/24 (Alternative
Minimum Tax)
4,060 Lucas Northgate Housing Development Corporation, Ohio, 7/05 at 101.00 Aaa 4,104,335
FHA-Insured Section 8 Assisted Mortgage Revenue
Refunding Bonds, Northgate Apartments, Series 1999A,
6.000%, 7/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.3% (3.8% OF TOTAL INVESTMENTS)
1,755 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 1,819,496
Securities Program Residential Mortgage Revenue Bonds,
Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax)
3,220 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 3,354,016
Securities Program Residential Mortgage Revenue Bonds,
Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum
Tax) - FSA Insured
2,935 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/08 at 102.00 Aaa 3,015,448
Securities Program Residential Mortgage Revenue Bonds,
Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax)
500 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 517,420
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.3% (0.3% OF TOTAL INVESTMENTS)
530 Cleveland-Cuyahoga County Port Authority, Ohio, Bond Fund 11/14 at 100.00 N/R 537,245
Program Development Revenue Bonds, Myers University,
Series 2004E, 5.600%, 5/15/25
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 1,033,600
Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 43.9% (30.9% OF TOTAL INVESTMENTS)
1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102.00 Aaa 1,133,600
Obligation Bonds, Series 2000, 5.500%, 12/01/22 -
MBIA Insured
1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,058,560
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25
270 Berea City School District, Ohio, General Obligation Unlimited 6/05 at 101.00 AAA 273,764
Tax School Improvement Bonds, Series 1993,
7.500%, 12/15/06 - AMBAC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Butler County, Ohio, General Obligation Judgment Bonds,
Series 2002:
$ 2,030 5.250%, 12/01/21 12/12 at 101.00 Aa3 $ 2,246,601
2,140 5.250%, 12/01/22 12/12 at 101.00 Aa3 2,366,027
Butler County, Ohio, General Obligation Bonds, Series 2002:
1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aaa 1,455,640
1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aaa 1,293,216
1,560 Canal Winchester Local School District, Franklin and Fairfield 12/11 at 100.00 Aaa 1,623,508
Counties, Ohio, School Facilities Construction and
Improvement Bonds, Series 2001B, 5.000%, 12/01/28 -
FGIC Insured
1,000 Central Ohio Solid Waste Authority, General Obligation 6/14 at 100.00 AAA 1,104,010
Bonds, Series 2004A, 5.000%, 12/01/15 - AMBAC Insured
1,000 Cincinnati City School District, Hamilton County, Ohio, 12/11 at 100.00 AAA 1,125,320
General Obligation Bonds, Series 2001, 5.375%, 12/01/15 -
MBIA Insured
2,600 Cincinnati City School District, Hamilton County, Ohio, 12/12 at 100.00 AAA 2,871,934
General Obligation Bonds, Series 2002, 5.250%, 6/01/21 -
FSA Insured
1,000 Cleveland Municipal School District, Cuyahoga County, 6/14 at 100.00 AAA 1,078,410
Ohio, General Obligation Bonds, Series 2004,
5.000%, 12/01/22 - FSA Insured
1,200 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 1,311,504
Series 2004, 5.000%, 12/01/21
1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,121,760
5.250%, 12/01/19 - AMBAC Insured
1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aaa 1,076,400
Bonds, Series 2000A, 5.000%, 12/01/20
1,000 Dublin City School District, Franklin, Delaware and Union 12/13 at 100.00 AAA 1,077,680
Counties, Ohio, General Obligation Bonds, Series 2003,
5.000%, 12/01/22 - FSA Insured
1,300 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 1,439,269
Refunding Bonds, Series 1993, 5.375%, 12/01/20
2,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 2,098,820
Ohio, General Obligation School Improvement Bonds,
Series 2001, 5.000%, 12/15/26 - MBIA Insured
1,000 Hilliard School District, Ohio, General Obligation School 12/10 at 101.00 AAA 1,137,930
Improvement Bonds, Series 2000, 5.750%, 12/01/24 -
FGIC Insured
1,160 Kenston Local School District, Geauga County, Ohio, 6/13 at 100.00 Aaa 1,249,981
General Obligation Bonds, Series 2003, 5.000%, 12/01/22 -
MBIA Insured
2,000 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 2,110,700
Unlimited Tax General Obligation School Improvement and
Refunding Bonds, Series 2001, 5.125%, 12/01/26 -
FGIC Insured
1,350 London City School District, Ohio, General Obligation 12/11 at 100.00 Aaa 1,401,719
School Facilities Construction and Improvement Bonds,
Series 2001, 5.000%, 12/01/29 - FGIC Insured
2,000 Louisville City School District, Ohio, General Obligation 12/11 at 100.00 Aaa 2,076,620
Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured
1,515 Massillon City School District, Ohio, General Obligation 12/12 at 100.00 Aaa 1,676,711
Bonds, Series 2003, 5.250%, 12/01/21 - MBIA Insured
760 Middletown City School District, Butler County, Ohio, 12/13 at 100.00 Aaa 811,087
General Obligation Bonds, Series 2004, 5.000%, 12/01/25 -
FGIC Insured
1,260 Morgan Local School District, Morgan, Muskingum and 12/10 at 101.00 AA 1,436,677
Washington Counties, Ohio, Unlimited Tax General
Obligation School Improvement Bonds, Series 2000,
5.750%, 12/01/22
3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, 2/13 at 100.00 AA+ 3,214,920
Series 2003F, 5.000%, 2/01/23
Olentangy Local School District, Deleware and Franklin Counties,
Ohio, General Obligation Bonds, Series 2004A:
1,315 5.250%, 12/01/23 - FGIC Insured 6/14 at 100.00 AAA 1,458,677
3,380 5.250%, 12/01/24 - FGIC Insured 6/14 at 100.00 AAA 3,740,916
1,510 Painesville City School District, Ohio, General Obligation 12/14 at 100.00 AAA 1,640,011
Bonds, Series 2004, 5.000%, 12/01/22 - FGIC Insured
1,155 Perry Local School District, Allen County, Ohio, General 12/11 at 101.00 AAA 1,286,104
Obligation Bonds, Series 2001, 5.250%, 12/01/25 -
AMBAC Insured
35
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,720 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA $ 2,830,731
Counties, Ohio, General Obligation Bonds, School Facilities
Construction and Improvement, Series 2001,
5.000%, 12/01/28 - FGIC Insured
1,100 Plain Local School District, Franklin and Licking Counties, 6/12 at 100.00 Aaa 1,239,634
Ohio, General Obligation Bonds, Series 2002,
5.500%, 12/01/17 - FGIC Insured
280 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 323,394
Ohio, General Obligation Bonds, Series 2000,
6.000%, 12/01/20 - FGIC Insured
1,445 Portage County, Ohio, General Obligation Bonds, 12/11 at 100.00 AAA 1,508,175
Series 2001, 5.000%, 12/01/27 - FGIC Insured
1,000 Princeton City School District, Butler County, Ohio, 12/13 at 100.00 AAA 1,048,310
General Obligation Bonds, Series 2003, 5.000%, 12/01/30 -
MBIA Insured
2,830 Springfield Township, Hamilton County, Ohio, Various 12/11 at 100.00 Aa3 3,026,430
Purpose Limited Tax General Obligation Bonds, Series 2002,
5.250%, 12/01/27
2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 2,163,900
5.000%, 12/01/21 - FGIC Insured
70 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 75,733
Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21
2,000 Sugarcreek Local School District, Athens County, Ohio, 12/13 at 100.00 Aaa 2,182,520
General Obligation Bonds, Series 2003, 5.250%, 12/01/27 -
MBIA Insured
Warren City School District, Trumbull County, Ohio, General
Obligation Bonds, Series 2004:
2,515 5.000%, 12/01/20 - FGIC Insured 6/14 at 100.00 AAA 2,742,934
1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 1,266,490
1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,052,820
Obligation Bonds, Series 2003, 5.000%, 12/01/28 -
MBIA Insured
2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,081,840
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 - MBIA Insured
1,000 Westlake, Ohio, Various Purpose General Obligation 12/08 at 101.00 Aaa 1,110,750
Improvement and Refunding Bonds, Series 1997,
5.550%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 6.0% (4.2% OF TOTAL INVESTMENTS)
1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 1,467,188
Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured
1,585 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 1,735,163
First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 -
FGIC Insured
New Albany Community Authority, Ohio, Community Facilities
Revenue Refunding Bonds, Series 2001B:
1,000 5.500%, 10/01/15 - AMBAC Insured 4/12 at 100.00 AAA 1,126,430
1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,124,400
1,000 Ohio, State Appropriation Lease Bonds, Mental Health 6/13 at 100.00 AA 1,094,700
Capital Facilities, Series 2003B-II, 5.000%, 6/01/16
2,645 Ohio Building Authority, State Facilities Bonds, Adult 4/14 at 100.00 AAA 2,977,556
Correctional Building Fund Project, Series 2004A,
5.250%, 4/01/15 - MBIA Insured
330 Ohio Department of Transportation, Certificates of 4/05 at 100.00 AA 330,455
Participation, Rickenbacker International Airport
Improvements, Series 1996, 6.125%, 4/15/15
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.8% (5.5% OF TOTAL INVESTMENTS)
1,780 Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 1,944,241
Series 2000A, 5.250%, 1/01/16 - FSA Insured
3,430 Cleveland, Ohio, Parking Facilities Revenue Refunding Bonds, 9/06 at 102.00 AAA 3,648,251
Series 1996, 5.500%, 9/15/22 - MBIA Insured
3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 3,156,750
International Airport, Series 2003C, 5.250%, 12/01/23
(Alternative Minimum Tax) - RAAI Insured
1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 AAA 1,618,635
Emery Air Freight Corporation and Emery Worldwide
Airlines Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18
2,000 Ohio Turnpike Commission, Revenue Bonds, Series 1998A, No Opt. Call AAA 2,341,380
5.500%, 2/15/18 - FGIC Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 14.4% (10.1% OF TOTAL INVESTMENTS)
$ 2,295 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 2,473,367
Asset Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
420 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 452,332
Improvement Bonds, Series 1998I, 5.000%, 1/01/28
(Pre-refunded to 1/01/08) - FSA Insured
1,210 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/09 at 101.00 AAA 1,322,724
Project, Series 1999, 4.875%, 12/01/24 (Pre-refunded
to 6/01/09) - AMBAC Insured
1,710 Franklin County, Ohio, First Mortgage Revenue, OCLC Inc. 6/05 at 100.00 AAA 1,861,985
Project, Series 1979, 7.500%, 6/01/09
2,100 Lakota Local School District, Butler County, Ohio, Unlimited 12/05 at 100.00 AAA 2,171,463
Tax General Obligation School Improvement Bonds,
Series 1994, 6.250%, 12/01/14 (Pre-refunded to
12/01/05) - AMBAC Insured
4,315 Ohio Capital Corporation for Housing, FHA-Insured 2/09 at 102.00 N/R*** 4,888,205
Section 8 Assisted Mortgage Loan Revenue Refunding
Bonds, Series 1999G, 5.950%, 2/01/24 (Pre-refunded
to 2/01/09)
1,000 Ohio Water Development Authority, Fresh Water Loan Revenue 6/05 at 102.00 AAA 1,032,690
Bonds, Series 1995, 5.900%, 12/01/21 (Pre-refunded
to 6/01/05) - AMBAC Insured
1,220 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 1,420,068
Ohio, General Obligation Bonds, Series 2000,
6.000%, 12/01/20 (Pre-refunded to 6/01/11) - FGIC Insured
1,000 Southwest Ohio Regional Water District, Waterworks System 12/05 at 101.00 AAA 1,041,800
Revenue Bonds, Series 1995, 6.000%, 12/01/20
(Pre-refunded to 12/01/05) - MBIA Insured
500 Sylvania City School District, Ohio, Unlimited Tax General 12/05 at 101.00 AAA 520,070
Obligation Bonds, Series 1995, 5.800%, 12/01/15
(Pre-refunded to 12/01/05) - FGIC Insured
1,000 Upper Arlington City School District, Ohio, General 12/06 at 101.00 AAA 1,053,190
Obligation Improvement Bonds, Series 1996,
5.250%, 12/01/22 - MBIA Insured
2,000 Wayne Local School District, Warren County, Ohio, Unlimited 12/06 at 101.00 AAA 2,153,080
Tax General Obligation School Improvement Bonds,
Series 1996, 6.100%, 12/01/24 (Pre-refunded to
12/01/06) - AMBAC Insured
3,000 West Clermont Local School District, Clermont County, 12/05 at 100.00 AAA 3,095,910
Ohio, Unlimited Tax General Obligation School Improvement
Bonds, Series 1995, 6.000%, 12/01/18 (Pre-refunded
to 12/01/05) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.0% (4.9% OF TOTAL INVESTMENTS)
4,000 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 4,300,600
Bonds, American Municipal Power Ohio Inc., Series 2002,
5.000%, 2/15/22 - MBIA Insured
2,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 2,163,820
Interest Certificates, Joint Venture 5, Belleville
Hydroelectric Project, American Municipal Power Ohio Inc.,
Series 2004, 5.000%, 2/15/20 - AMBAC Insured
3,000 Ohio Air Quality Development Authority, Revenue Bonds, 4/07 at 102.00 AAA 3,195,540
JMG Funding Limited Partnership Project, Series 1997,
5.625%, 1/01/23 (Alternative Minimum Tax) -
AMBAC Insured
1,800 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,808,136
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.2% (7.9% OF TOTAL INVESTMENTS)
Cincinnati, Ohio, Water System Revenue Bonds, Series 2001:
1,000 5.500%, 12/01/17 6/11 at 100.00 AA+ 1,125,980
6,010 5.000%, 12/01/18 6/11 at 100.00 AA+ 6,546,332
3,000 5.000%, 12/01/19 6/11 at 100.00 AA+ 3,266,310
1,000 5.000%, 12/01/20 6/11 at 100.00 AA+ 1,085,680
2,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ 2,114,820
5.000%, 12/01/22
1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 1,175,970
Refunding and Improvement Bonds, Series 1993G,
5.500%, 1/01/21 - MBIA Insured
40 Cleveland, Ohio, Waterworks First Mortgage Revenue 1/06 at 102.00 AAA 41,933
Refunding and Improvement Bonds, Series 1996H,
5.750%, 1/01/26 - MBIA Insured
580 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 606,222
Improvement Bonds, Series 1998I, 5.000%, 1/01/28 -
FSA Insured
2,110 Hamilton County, Ohio, Sewer System Revenue and 6/10 at 101.00 AAA 2,367,294
Improvement Bonds, Metropolitan Sewer District of
Greater Cincinnati, Series 2000A, 5.750%, 12/01/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 215,735 Total Long-Term Investments (cost $216,770,921) - 141.7% 231,358,903
=============-----------------------------------------------------------------------------------------------------------------------
37
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 600 Puerto Rico Government Development Bank, Adjustable VMIG-1 $ 600,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.750%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 600 Total Short-Term Investments (cost $600,000) 600,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $217,370,921) - 142.1% 231,958,903
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.1% 8,227,469
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.2)% (77,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 163,186,372
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
38
Nuveen Ohio Dividend Advantage Municipal Fund (NXI)
Portfolio of
INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.6% (1.1% OF TOTAL INVESTMENTS)
$ 1,120 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,094,430
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 24.6% (17.0% OF TOTAL INVESTMENTS)
1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,109,020
Bonds, University of Dayton, Series 2000,
5.500%, 12/01/25 - AMBAC Insured
2,000 Ohio Higher Educational Facilities Commission, Revenue 11/11 at 101.00 AA 2,147,700
Bonds, Denison University, Series 2001, 5.200%, 11/01/26
2,650 Ohio Higher Education Facilities Commission, Revenue 5/12 at 100.00 A2 2,784,541
Bonds, Ohio Northern University Project, Series 2002,
5.000%, 5/01/22
1,760 Ohio University at Athens, Subordinate Lien General 6/14 at 100.00 AAA 1,915,179
Receipts Bonds, Series 2004, 5.000%, 12/01/20 -
MBIA Insured
3,150 Student Loan Funding Corporation, Cincinnati, Ohio, No Opt. Call A 3,160,049
Student Loan Subordinated Revenue Refunding Bonds,
Series 1992D, 6.600%, 7/01/05 (Alternative Minimum Tax)
2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA 2,296,740
Series 2001A, 5.750%, 6/01/17 - FGIC Insured
2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 AA- 3,012,903
Series 2002F, 5.375%, 6/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.9% (14.5% OF TOTAL INVESTMENTS)
1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, 7/13 at 100.00 Aa3 1,211,661
Cleveland Clinic Health System, Series 2003A,
6.000%, 1/01/32
1,950 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 AAA 2,107,229
Healthcare Obligated Group, Series 1999,
5.375%, 11/15/29 - AMBAC Insured
2,500 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,608,275
and Improvement Bonds, Upper Valley Medical Center,
Series 1996A, 6.375%, 5/15/26
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 1,033,600
Initiatives, Series 2004A, 5.000%, 5/01/30
Parma Community General Hospital Association, Ohio, Hospital
Revenue Refunding and Improvement Bonds, Series 1998:
2,250 5.250%, 11/01/13 11/08 at 101.00 A- 2,371,275
2,000 5.375%, 11/01/29 11/08 at 101.00 A- 2,057,840
1,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,079,770
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30
1,500 Tuscarawas County, Ohio, Hospital Facilities Revenue 4/05 at 101.00 Baa1 1,514,295
Bonds, Union Hospital Project, Series 1993A,
6.500%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.2% (5.0% OF TOTAL INVESTMENTS)
1,790 Lucas Northgate Housing Development Corporation, Ohio, 7/05 at 101.00 Aaa 1,809,923
FHA-Insured Section 8 Assisted Mortgage Revenue
Refunding Bonds, Northgate Apartments, Series 1999A,
5.950%, 7/01/19 - MBIA Insured
2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage 4/11 at 102.00 Aa2 3,030,952
Revenue Bonds, Asbury Woods Project, Series 2001A,
5.450%, 4/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.5% (3.1% OF TOTAL INVESTMENTS)
810 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 853,918
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
1,465 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,469,073
Securities Program Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
39
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 435 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa $ 444,309
Securities Program Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
205 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 212,142
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.9% (2.7% OF TOTAL INVESTMENTS)
1,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/11 at 101.00 BBB 1,101,600
Ohio Presbyterian Retirement Services, Series 2001A,
7.125%, 7/01/29
1,470 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 1,524,081
Revenue Bonds, Twin Towers, Series 1999A,
5.750%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 43.1% (29.7% OF TOTAL INVESTMENTS)
1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,058,560
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25
1,000 Centerville, Ohio, General Obligation Limited Tax Bonds, 12/11 at 100.00 Aa3 1,057,320
Capital Facilities Improvement, Series 2001,
5.125%, 12/01/26
1,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,156,750
Obligation Bonds, Series 2004, 5.500%, 12/01/15 -
FSA Insured
500 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 546,460
Series 2004, 5.000%, 12/01/21
Jackson City School District, Jackson County, Ohio, Unlimited
Tax General Obligation School Improvement Bonds, Series 2001:
880 5.500%, 12/01/22 - MBIA Insured 6/11 at 100.00 Aaa 996,239
935 5.500%, 12/01/23 - MBIA Insured 6/11 at 100.00 Aaa 1,058,504
1,000 Lakewood City School District, Cuyahoga County, Ohio, 12/14 at 100.00 AAA 1,134,240
General Obligation Bonds, Series 2004, 5.250%, 12/01/16 -
FSA Insured
2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aaa 2,110,700
Tax General Obligation School Improvement and Refunding
Bonds, Series 2001, 5.125%, 12/01/26 - FGIC Insured
2,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 2,154,300
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 - FGIC Insured
1,000 Middletown City School District, Butler County, Ohio, 12/13 at 100.00 Aaa 1,067,220
General Obligation Bonds, Series 2004,
5.000%, 12/01/25 - FGIC Insured
1,000 Nordonia Hills City School District, Ohio, School Improvement 12/10 at 101.00 AAA 1,104,180
Bonds, Series 2000, 5.450%, 12/01/25 - AMBAC Insured
2,000 Ohio, General Obligation Higher Education Capital Facilities 2/11 at 100.00 AA+ 2,165,040
Bonds, Series 2001A, 5.000%, 2/01/20
1,900 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 2,107,594
Counties, Ohio, General Obligation Bonds, Series 2004A,
5.250%, 12/01/23 - FGIC Insured
1,850 Swanton Local School District, Fulton County, Ohio, General 12/11 at 101.00 AAA 2,027,933
Obligation Bonds, Series 2001, 5.250%, 12/01/25 -
FGIC Insured
1,275 Sycamore Community School District, Hamilton County, 12/09 at 101.00 AAA 1,371,683
Ohio, Unlimited Tax General Obligation School Improvement
Bonds, Series 1999, 5.000%, 12/01/23 - MBIA Insured
1,485 West Chester Township, Butler County, Ohio, Various 11/11 at 101.00 Aaa 1,682,564
Purpose Limited Tax General Obligation Refunding Bonds,
Series 2001, 5.500%, 12/01/17 - AMBAC Insured
1,000 West Holmes Local School District, Ohio, School Improvement 6/07 at 101.00 AAA 1,066,000
Bonds, Series 1997, 5.375%, 12/01/23 - MBIA Insured
1,500 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 1,561,380
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 - MBIA Insured
2,965 Franklin County, Worthington, Ohio, Various Purpose 12/11 at 100.00 AA+ 3,328,657
Unlimited Tax General Obligation Bonds, Series 2001,
5.375%, 12/01/21
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.6% (8.0% OF TOTAL INVESTMENTS)
$ 1,415 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA $ 1,532,841
First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/21 -
FGIC Insured
4,000 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 4,562,920
6.000%, 8/01/16 - FSA Insured
1,400 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,620,444
Taxes Loan Notes, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.1% (3.5% OF TOTAL INVESTMENTS)
2,000 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA 2,239,100
5.500%, 2/15/26
1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 1,141,890
Bonds, CSX Transportation Inc., Series 1992,
6.450%, 12/15/21
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.5% (8.6% OF TOTAL INVESTMENTS)
1,440 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 1,592,208
Bonds, American Municipal Power Ohio Inc., Series 2002,
5.250%, 2/15/17 - MBIA Insured
910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 1,023,950
Series 2001, 5.500%, 12/01/18 - AMBAC Insured
1,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 1,078,750
Interest Certificates, Joint Venture 5, American Municipal
Power Ohio Inc., Belleville Hydroelectric Project,
Series 2004, 5.000%, 2/15/21 - AMBAC Insured
1,500 Ohio Air Quality Development Authority, Revenue Refunding 9/05 at 102.00 Ba1 1,521,315
Bonds, Dayton Power and Light Company Project,
Series 1995, 6.100%, 9/01/30
2,000 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,139,860
Bonds, Ohio Power Company Project, Series 1999C,
5.150%, 5/01/26 - AMBAC Insured
1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,004,520
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.8% (6.8% OF TOTAL INVESTMENTS)
2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 2,131,220
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,700 Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 1,860,175
Series 2001, 5.125%, 12/01/21
2,375 Ohio Water Development Authority, Revenue Bonds, Water 12/13 at 100.00 Aaa 2,550,157
Development Community Assistance Program, Series 2003,
5.000%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 89,805 Total Long-Term Investments (cost $90,451,636) - 144.8% 96,705,179
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 1,081,799
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.4)% (31,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 66,786,978
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
41
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ)
Portfolio of
INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 8.4% (5.7% OF TOTAL INVESTMENTS)
$ 975 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 952,741
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
3,000 Ohio State Sewage and Solid Waste Disposal Facilities, 11/11 at 100.00 A+ 3,136,680
Revenue Bonds, Anheuser-Busch Project, Series 2001,
5.500%, 11/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.7% (8.6% OF TOTAL INVESTMENTS)
1,345 Bowling Green State University, Ohio, General Receipts 6/13 at 100.00 AAA 1,497,335
Bonds, Series 2003, 5.250%, 6/01/18 - AMBAC Insured
2,050 Ohio Higher Educational Facilities Commission, Revenue 12/11 at 100.00 Baa1 2,233,045
Bonds, Wittenberg University, Series 2001, 5.500%, 12/01/15
1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 1,076,170
Series 2003C, 5.000%, 6/01/22 - FGIC Insured
1,245 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,359,876
Series 2004D, 5.000%, 6/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.3% (15.8% OF TOTAL INVESTMENTS)
1,380 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 1,438,250
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.000%, 11/15/08
1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,051,050
Firelands Regional Medical Center, Series 2002A,
5.500%, 8/15/22
1,850 Lorain County, Ohio, Hospital Revenue Refunding and 10/11 at 101.00 AA- 1,981,905
Improvement Bonds, Catholic Healthcare Partners,
Series 2001A, 5.400%, 10/01/21
700 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 723,520
Initiatives, Series 2004A, 5.000%, 5/01/30
2,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,159,540
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30
3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 4,027,605
Union Hospital Project, Series 2001, 5.750%, 10/01/26 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.2% (1.5% OF TOTAL INVESTMENTS)
1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa 1,076,900
Housing Mortgage Revenue Bonds, Agler Project,
Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.8% (2.5% OF TOTAL INVESTMENTS)
1,605 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/10 at 100.00 Aaa 1,653,439
Securities Program Residential Mortgage Revenue Bonds,
Series 2001A, 5.500%, 9/01/34 (Alternative Minimum Tax)
170 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 175,923
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.1% (1.4% OF TOTAL INVESTMENTS)
1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 1,033,600
Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 54.3% (36.8% OF TOTAL INVESTMENTS)
1,000 Cleveland, Ohio, General Obligation Bonds, Series 2003, 8/13 at 100.00 AAA 1,114,400
5.250%, 8/01/18 - FGIC Insured
Cleveland Municipal School District, Cuyahoga County, Ohio,
General Obligation Bonds, Series 2004:
1,000 5.000%, 12/01/15 - FSA Insured 6/14 at 100.00 AAA 1,106,510
1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,078,410
2,605 Columbus City School District, Franklin County, Ohio, 12/14 at 100.00 AAA 3,013,334
General Obligation Bonds, Series 2004, 5.500%, 12/01/15 -
FSA Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 400 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ $ 437,168
Series 2004, 5.000%, 12/01/21
1,750 Fairfield City School District, Ohio, General Obligation 12/11 at 100.00 AAA 1,965,898
Refunding Bonds, Series 2001, 5.375%, 12/01/19 -
FGIC Insured
1,000 Greater Cleveland Regional Transit Authority, Ohio, General 12/11 at 100.00 Aaa 1,094,270
Obligation Capital Improvement Bonds, Series 2001A,
5.125%, 12/01/21 - MBIA Insured
1,065 Lakewood City School District, Cuyahoga County, Ohio, 12/14 at 100.00 AAA 1,207,966
General Obligation Bonds, Series 2004, 5.250%, 12/01/16 -
FSA Insured
4,000 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 4,539,480
Obligation Bonds, Series 2001, 5.500%, 12/01/21 -
FSA Insured
2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aaa 2,745,442
Center Bonds, Series 2002, 5.500%, 12/01/22 - FGIC Insured
1,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,077,150
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 - FGIC Insured
1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,062,710
Bonds, Series 2001B, 5.000%, 9/15/21
1,050 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 1,207,532
Counties, Ohio, General Obligation Bonds, Series 2004A,
5.500%, 12/01/15 - FGIC Insured
1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AAA 2,091,163
5.000%, 12/01/25 - FGIC Insured
1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,132,790
5.500%, 12/01/25 - FGIC Insured
1,500 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 1,622,925
5.000%, 12/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.5% (11.2% OF TOTAL INVESTMENTS)
1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation 11/11 at 101.00 Aaa 1,793,092
Bonds, One Renaissance Center Acquisition, Series 2001,
5.000%, 11/01/26 - AMBAC Insured
1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,195,083
Capital Facilities, Series 2004A-II, 5.000%, 12/01/18
2,500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 2,796,450
Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 -
MBIA Insured
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 1,143,720
Revenue Refunding Bonds, Series 2002E, 5.750%, 7/01/24
1,000 Summit County Port Authority, Ohio, Revenue Bonds, 12/11 at 100.00 AAA 1,128,860
Civic Theatre Project, Series 2001, 5.500%, 12/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.8% (5.3% OF TOTAL INVESTMENTS)
3,495 Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 3,809,690
Series 2000A, 5.250%, 1/01/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.9% (6.0% OF TOTAL INVESTMENTS)
595 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 643,735
Interest Certificates, Joint Venture 5, Belleville
Hydroelectric Project, American Municipal Power
Ohio Inc., Series 2004, 5.000%, 2/15/20 - AMBAC Insured
2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,674,824
Bonds, Ohio Power Company Project, Series 1999C,
5.150%, 5/01/26 - AMBAC Insured
1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,004,520
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
43
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) (continued)
Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.7% (5.2% OF TOTAL INVESTMENTS)
$ 2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA $ 2,131,220
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,500 Ohio Water Development Authority, Revenue Bonds, 12/11 at 100.00 AAA 1,596,674
Fresh Water Development, Series 2001A,
5.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 66,125 Total Long-Term Investments (cost $67,787,012) - 147.7% 71,992,595
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 735,994
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.3)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 48,728,589
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
44
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ)
Portfolio of
INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.0% (4.1% OF TOTAL INVESTMENTS)
$ 2,095 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,047,171
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.7% (9.3% OF TOTAL INVESTMENTS)
1,125 Ohio Higher Education Facilities Commission, Revenue 5/12 at 100.00 A2 1,265,839
Bonds, Ohio Northern University Project, Series 2002,
5.750%, 5/01/16
2,000 Ohio Higher Education Facilities Commission, Revenue 10/12 at 100.00 AA 2,261,080
Bonds, Case Western Reserve University Project,
Series 2002B, 5.500%, 10/01/22
1,000 Ohio State University, General Receipts Bonds, 12/09 at 101.00 AA 1,120,670
Series 1999A, 5.800%, 12/01/29
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.2% (15.8% OF TOTAL INVESTMENTS)
690 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 719,125
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.000%, 11/15/08
1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,839,338
Firelands Regional Medical Center, Series 2002A,
5.500%, 8/15/22
1,425 Montgomery County, Ohio, Hospital Facilities Revenue 4/10 at 101.00 A3 1,589,744
Bonds, Kettering Medical Center, Series 1999,
6.750%, 4/01/18
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic 9/11 at 100.00 AA 1,108,660
Health Initiatives, Series 2001, 5.500%, 9/01/12
500 Montgomery County, Ohio, Revenue Bonds, Catholic 5/14 at 100.00 AA 516,800
Health Initiatives, Series 2004A, 5.000%, 5/01/30
1,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 1,028,920
Hospital Revenue Refunding and Improvement Bonds,
Series 1998, 5.375%, 11/01/29
1,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,079,770
Improvement Bonds, MedCentral Health SystemObligated
Group, Series 2000B, 6.375%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.1% (3.5% OF TOTAL INVESTMENTS)
390 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 411,146
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
895 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 897,488
Securities Program Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
425 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 434,095
Securities Program Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5% (1.1% OF TOTAL INVESTMENTS)
500 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 518,395
Revenue Bonds, Twin Towers, Series 1999A,
5.750%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 48.2% (32.8% OF TOTAL INVESTMENTS)
2,000 Canal Winchester Local School District, Franklin and 12/08 at 102.00 AAA 2,162,720
Fairfield Counties, Ohio, Unlimited Tax General Obligation
School Improvement Bonds, Series 1998, 5.300%, 12/01/25 -
FGIC Insured
300 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 327,876
Series 2004, 5.000%, 12/01/21
1,475 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 Aaa 1,718,434
Obligation Bonds, Series 2002, 5.750%, 12/01/21 -
FGIC Insured
2,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa3 2,227,260
Obligation Bonds, Series 2001, 5.500%, 12/01/28
1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA- 1,121,040
5.375%, 12/01/22
1,000 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,077,570
Obligation Bonds, Series 2003, 5.000%, 12/01/22 -
MBIA Insured
1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 Aaa 1,354,468
5.125%, 12/01/26 - AMBAC Insured
45
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) (continued)
Portfolio of INVESTMENTS January 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,190 Miami East Local School District, Miami County, Ohio, 12/12 at 100.00 AAA $ 1,257,937
General Obligation Bonds, Series 2002, 5.125%, 12/01/29 -
FSA Insured
1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,084,990
Bonds, Series 2001B, 5.000%, 9/15/20
1,000 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 1,115,900
Counties, Ohio, General Obligation Bonds, Series 2004A,
5.250%, 12/01/21 - FGIC Insured
1,535 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA 1,703,129
Counties, Ohio, General Obligation Bonds, School Facilities
Construction and Improvement, Series 2001,
5.250%, 12/01/20 - FGIC Insured
1,130 Solon, Ohio, General Obligation Refunding and Improvement 12/12 at 100.00 AA+ 1,233,146
Bonds, Series 2002, 5.000%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.4% (15.2% OF TOTAL INVESTMENTS)
500 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 547,370
First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 -
FGIC Insured
1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 1,030,600
Certificates of Participation, Series 2003, 5.000%, 11/01/30
2,000 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 2,237,160
Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 -
MBIA Insured
1,250 Ohio Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,402,138
Administrative Building Fund Projects, Series 2002A,
5.500%, 4/01/18 - FSA Insured
2,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 2,386,580
Government Facilities Revenue Bonds, Series 1993L,
5.500%, 7/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.0% (6.2% OF TOTAL INVESTMENTS)
1,140 Columbus Municipal Airport Authority, Ohio, Airport No Opt. Call AAA 1,262,436
Improvement Revenue Bonds, Port Columbus International
Airport Project, Series 1998B, 5.250%, 1/01/11 -
AMBAC Insured
1,550 Ohio Turnpike Commission, Revenue Bonds, Series 1998A, No Opt. Call AAA 1,814,570
5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.9% (3.3% OF TOTAL INVESTMENTS)
1,500 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 1,658,550
Bonds, American Municipal Power Ohio Inc., Series 2002,
5.250%, 2/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 1,065,610
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,500 Hamilton County, Ohio, Sewer System Revenue Refunding 12/11 at 100.00 AAA 1,670,864
and Improvement Bonds, Metropolitan Sewer District of
Greater Cincinnati, Series 2001A, 5.250%, 12/01/18 -
MBIA Insured
1,500 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 1,596,674
Water Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 45,635 Total Long-Term Investments (cost $46,556,234) - 146.7% 49,895,263
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 613,214
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.5)% (16,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 34,008,477
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
46
Statement of
ASSETS AND LIABILITIES January 31, 2005 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $257,207,103, $163,685,213
and $44,907,205, respectively) $280,433,149 $176,274,102 $48,077,150
Cash -- -- --
Receivables:
Interest 3,192,090 2,321,514 570,429
Investments sold -- 2,002,536 --
Other assets 16,155 1,626 601
------------------------------------------------------------------------------------------------------------------------------------
Total assets 283,641,394 180,599,778 48,648,180
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 866,736 2,096,001 156,622
Payable for forward swaps closed -- -- 244,293
Forward swaps, at value -- -- 51,094
Accrued expenses:
Management fees 151,303 96,168 13,920
Other 50,828 62,630 7,118
Preferred share dividends payable 14,482 11,157 3,789
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,083,349 2,265,956 476,836
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $188,558,045 $122,333,822 $32,171,344
====================================================================================================================================
Common shares outstanding 11,696,465 7,739,754 2,060,512
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 16.12 $ 15.81 $ 15.61
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 116,965 $ 77,398 $ 20,605
Paid-in surplus 163,648,274 108,216,633 29,175,431
Undistributed net investment income 1,532,191 1,070,343 355,825
Accumulated net realized gain (loss) from investments and
forward swaps 34,569 380,559 (499,368)
Net unrealized appreciation (depreciation) of investments and
forward swaps 23,226,046 12,588,889 3,118,851
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $188,558,045 $122,333,822 $32,171,344
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
47
Statement of
ASSETS AND LIABILITIES January 31, 2005 (Unaudited) (continued)
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $217,370,921, $90,451,636,
$67,787,012 and $46,556,234, respectively) $231,958,903 $96,705,179 $71,992,595 $49,895,263
Cash -- -- -- 36,217
Receivables:
Interest 2,680,194 1,190,202 775,979 601,748
Investments sold 6,237,938 -- -- --
Other assets 1,944 4,267 904 3,502
------------------------------------------------------------------------------------------------------------------------------------
Total assets 240,878,979 97,899,648 72,769,478 50,536,730
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 455,653 67,134 9,661 --
Payable for forward swaps closed -- -- -- --
Forward swaps, at value -- -- -- --
Accrued expenses:
Management fees 129,201 28,308 21,042 14,614
Other 94,673 13,402 8,996 8,728
Preferred share dividends payable 13,080 3,826 1,190 4,911
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 692,607 112,670 40,889 28,253
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $163,186,372 $66,786,978 $48,728,589 $34,008,477
====================================================================================================================================
Common shares outstanding 9,691,159 4,231,992 3,117,483 2,157,649
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 16.84 $ 15.78 $ 15.63 $ 15.76
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 96,912 $ 42,320 $ 31,175 $ 21,576
Paid-in surplus 146,884,302 60,062,512 44,193,160 30,528,659
Undistributed net investment income 1,300,839 590,803 353,515 120,882
Accumulated net realized gain (loss) from investments and
forward swaps 316,337 (162,200) (54,844) (1,669)
Net unrealized appreciation (depreciation) of investments and
forward swaps 14,587,982 6,253,543 4,205,583 3,339,029
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $163,186,372 $66,786,978 $48,728,589 $34,008,477
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
48
Statement of
OPERATIONS Six Months Ended January 31, 2005 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,880,262 $4,333,293 $1,140,230
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 896,400 568,646 153,675
Preferred shares - auction fees 118,467 70,575 20,165
Preferred shares - dividend disbursing agent fees 10,081 10,081 5,042
Shareholders' servicing agent fees and expenses 14,771 10,623 491
Custodian's fees and expenses 34,082 20,282 6,595
Directors'/Trustees' fees and expenses 3,402 2,272 650
Professional fees 10,021 8,002 5,657
Shareholders' reports - printing and mailing expenses 18,949 8,844 3,135
Stock exchange listing fees 5,559 8,009 129
Investor relations expense 17,169 10,871 2,955
Other expenses 15,660 8,918 5,725
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,144,561 727,123 204,219
Custodian fee credit (9,893) (10,780) (2,052)
Expense reimbursement -- -- (71,640)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,134,668 716,343 130,527
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,745,594 3,616,950 1,009,703
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 674,307 481,407 (14,421)
Net realized gain (loss) from forward swaps -- -- (401,766)
Change in net unrealized appreciation (depreciation)
of investments 8,197,131 4,964,871 2,004,648
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- 13,534
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 8,871,438 5,446,278 1,601,995
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (546,685) (324,718) (80,407)
From accumulated net realized gains from investments (81,692) (11,736) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (628,377) (336,454) (80,407)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $13,988,655 $8,726,774 $2,531,291
====================================================================================================================================
See accompanying notes to financial statements.
49
Statement of
OPERATIONS Six Months Ended January 31, 2005 (Unaudited) (continued)
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,974,586 $2,381,919 $1,669,781 $1,162,563
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 763,158 312,790 232,666 161,576
Preferred shares - auction fees 97,042 39,069 30,246 20,794
Preferred shares - dividend disbursing agent fees 15,123 5,042 5,042 5,042
Shareholders' servicing agent fees and expenses 15,909 753 715 579
Custodian's fees and expenses 27,054 12,424 8,764 5,258
Directors'/Trustees' fees and expenses 3,107 1,293 951 650
Professional fees 6,993 5,350 5,544 4,939
Shareholders' reports - printing and mailing expenses 6,953 6,433 5,814 3,417
Stock exchange listing fees 5,592 181 134 92
Investor relations expense 14,508 5,777 4,358 3,140
Other expenses 8,254 6,541 4,946 4,714
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 963,693 395,653 299,180 210,201
Custodian fee credit (6,954) (2,892) (4,071) (3,500)
Expense reimbursement -- (145,816) (108,464) (75,323)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 956,739 246,945 186,645 131,378
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,017,847 2,134,974 1,483,136 1,031,185
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 526,485 (13,072) 62,481 (1,543)
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments 6,152,217 3,186,811 2,518,641 1,847,486
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 6,678,702 3,173,739 2,581,122 1,845,943
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (428,386) (168,838) (137,052) (91,265)
From accumulated net realized gains from investments (17,746) -- (3,841) (2,521)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (446,132) (168,838) (140,893) (93,786)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $11,250,417 $5,139,875 $3,923,365 $2,783,342
====================================================================================================================================
See accompanying notes to financial statements.
50
Statement of
CHANGES IN NET ASSETS (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW)
--------------------------------- --------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
1/31/05 7/31/04 1/31/05 7/31/04 1/31/05 7/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,745,594 $11,802,032 $ 3,616,950 $ 7,522,642 $ 1,009,703 $ 2,031,123
Net realized gain (loss)
from investments 674,307 1,180,195 481,407 1,871,869 (14,421) 51,975
Net realized gain (loss)
from forward swaps -- -- -- -- (401,766) --
Change in net unrealized
appreciation (depreciation)
of investments 8,197,131 4,399,778 4,964,871 1,053,906 2,004,648 1,008,797
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- 13,534 (64,628)
Distributions to
Preferred Shareholders:
From net investment income (546,685) (724,631) (324,718) (313,219) (80,407) (111,533)
From accumulated net
realized gains
from investments (81,692) (95,441) (11,736) (220,148) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares
from operations 13,988,655 16,561,933 8,726,774 9,915,050 2,531,291 2,915,734
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,601,408) (11,067,332) (3,612,613) 7,285,471) (920,908) (1,841,125)
From accumulated net realized gains
from investments (1,296,599) (1,232,780) (356,938) 3,007,816) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (6,898,007) (12,300,112) (3,969,551) (10,293,287) (920,908) (1,841,125)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 353,292 666,222 47,725 488,732 8,742 22,217
Preferred shares offering costs -- -- -- -- 13,775 (1,870)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 353,292 666,222 47,725 488,732 22,517 20,347
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 7,443,940 4,928,043 4,804,948 110,495 1,632,900 1,094,956
Net assets applicable to Common
shares at the beginning
of period 181,114,105 176,186,062 117,528,874 117,418,379 30,538,444 29,443,488
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $188,558,045 $181,114,105 $122,333,822 $117,528,874 $32,171,344 $30,538,444
====================================================================================================================================
Undistributed net investment
income at the end of period $ 1,532,191 $ 1,934,690 $ 1,070,343 $ 1,390,724 $ 355,825 $ 347,437
====================================================================================================================================
See accompanying notes to financial statements.
51
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
OHIO OHIO OHIO
QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ)
--------------------------------- --------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
1/31/05 7/31/04 1/31/05 7/31/04 1/31/05 7/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,017,847 $ 10,288,690 $ 2,134,974 $ 4,394,700 $ 1,483,136 $ 3,072,016
Net realized gain (loss)
from investments 526,485 2,207,042 (13,072) (170,963) 62,481 (16,409)
Net realized gain (loss)
from forward swaps -- -- -- -- -- --
Change in net
unrealized appreciation
(depreciation) of investments 6,152,217 246,313 3,186,811 1,850,624 2,518,641 1,654,989
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- -- -- -- --
Distributions to
Preferred Shareholders:
From net investment income (428,386) (535,383) (168,838) (255,016) (137,052) (181,912)
From accumulated net
realized gains
from investments (17,746) (141,268) -- (5,304) (3,841) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares from operations 11,250,417 12,065,394 5,139,875 5,814,041 3,923,365 4,528,684
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,849,661) (9,681,971) (2,055,863) (4,096,876) (1,444,509) (2,862,473)
From accumulated net
realized gains
from investments (342,343) (2,044,035) -- (71,806) (65,438) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares
from distributions
to Common shareholders (5,192,004) (11,726,006) (2,055,863) (4,168,682) (1,509,947) (2,862,473)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 493,852 883,014 61,449 74,236 31,752 26,498
Preferred shares offering costs -- -- -- (1,664) 14,942 (1,870)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 493,852 883,014 61,449 72,572 46,694 24,628
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 6,552,265 1,222,402 3,145,461 1,717,931 2,460,112 1,690,839
Net assets applicable to Common
shares at the beginning
of period 156,634,107 155,411,705 63,641,517 61,923,586 46,268,477 44,577,638
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $163,186,372 $156,634,107 $66,786,978 $63,641,517 $48,728,589 $46,268,477
====================================================================================================================================
Undistributed net investment
income at the end of period $ 1,300,839 $ 1,561,039 $ 590,803 $ 680,530 $ 353,515 $ 451,940
====================================================================================================================================
See accompanying notes to financial statements.
52
OHIO
DIVIDEND ADVANTAGE 3 (NVJ)
---------------------------------
SIX MONTHS ENDED YEAR ENDED
1/31/05 7/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,031,185 $ 2,063,782
Net realized gain (loss) from investments (1,543) 41,914
Net realized gain (loss) from forward swaps -- --
Change in net unrealized appreciation
(depreciation) of investments 1,847,486 1,025,170
Change in net unrealized appreciation
(depreciation) of forward swaps -- --
Distributions to Preferred Shareholders:
From net investment income (91,265) (124,399)
From accumulated net realized gains
from investments (2,521) (10,818)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 2,783,342 2,995,649
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (945,022) (1,889,890)
From accumulated net realized gains
from investments (39,484) (146,047)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (984,506) (2,035,937)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 1,389 4,762
Preferred shares offering costs -- (1,408)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 1,389 3,354
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 1,800,225 963,066
Net assets applicable to Common
shares at the beginning of period 32,208,252 31,245,186
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $34,008,477 $32,208,252
====================================================================================================================================
Undistributed net investment
income at the end of period $ 120,882 $ 125,984
====================================================================================================================================
See accompanying notes to financial statements.
53
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols are Nuveen 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 amended,
as closed-end management investment companies.
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 U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of 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, evaluations
of anticipated cash flows or collateral and general market conditions. Prices of
derivative investments are also provided by an independent pricing service
approved by each Fund's Board of Directors/Trustees. If the pricing service is
unable to supply a price for a derivative investment each Fund may use a market
quote provided by a major broker/dealer in such investments. If it is determined
that market prices for an investment are unavailable or inappropriate, the Board
of Directors/Trustees of the Funds, or its designee, may establish a fair value
for the investment. 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 on a when-issued or delayed delivery basis may have
extended settlement periods. Any securities so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At January 31, 2005,
there were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
54
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate on each Series is determined
every seven days, pursuant to a dutch auction process overseen by the auction
agent, and is payable weekly at the end of each rate period. The number of
Preferred shares outstanding, 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
================================================================================
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
================================================================================
Forward Swap Transactions
The Funds may invest in certain derivative financial instruments. The Funds' use
of forward interest rate swap transactions is intended to mitigate the negative
impact that an increase in long-term interest rates could have on Common share
net asset value. Forward interest rate swap transactions involve each Fund's
agreement with the counterparty to pay, in the future, a fixed rate payment in
exchange for the counterparty paying the Fund a variable rate payment. The
amount of the payment obligation is based on the notional amount of the forward
swap contract. The Funds may close out a contract prior to the effective date at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash. Each Fund intends, but is
not obligated to, terminate its forward swaps before the effective date.
Accordingly, the risk of loss with respect to the swap counterparty on such
transactions is limited to the credit risk associated with a counterparty
failing to honor its commitment to pay any realized gain to the Fund upon
termination. To minimize such credit risk, all counterparties are required to
pledge collateral daily (based on the daily valuation of each swap) on behalf of
each Fund with a value approximately equal to the amount of any unrealized gain
above a pre-determined threshold. Reciprocally, when any of the Funds have an
unrealized loss on a swap contract, the Funds have instructed the custodian to
pledge assets of the Funds as collateral with a value approximately equal to the
amount of the unrealized loss above a pre-determined threshold. Collateral
pledges are monitored and subsequently adjusted if and when the swap valuations
fluctuate, either up or down, by at least the pre-determined threshold amount.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
55
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Indemnifications
Under the Fund's organizational documents, its Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM MICHIGAN DIVIDEND
INCOME (NUM) INCOME (NMP) ADVANTAGE (NZW)
----------------------- ---------------------- ----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/05 7/31/04 1/31/05 7/31/04 1/31/05 7/31/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due
to reinvestment
of distributions 21,592 40,867 3,091 30,749 567 1,185
=========================================================================================================
OHIO QUALITY OHIO DIVIDEND OHIO DIVIDEND
INCOME (NUO) ADVANTAGE (NXI) ADVANTAGE 2 (NBJ)
---------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/05 7/31/04 1/31/05 7/31/04 1/31/05 7/31/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due
to reinvestment
of distributions 28,289 49,919 3,708 4,481 1,986 1,437
=========================================================================================================
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
---------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
1/31/05 7/31/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 85 299
=========================================================================================================
56
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the six months ended January 31, 2005, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Purchases $10,058,108 $11,723,031 $1,577,550
Sales and maturities 9,731,247 11,448,027 1,253,810
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Purchases $15,889,618 $3,606,935 $6,675,107 $825,852
Sales and maturities 20,830,596 3,044,500 5,814,200 430,000
================================================================================
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 the treatment of paydown gains and losses on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on security
transactions.
At January 31, 2005, the cost of investments was as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Cost of investments $257,298,393 $163,649,086 $44,904,884
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Cost of investments $217,324,000 $90,387,091 $67,776,464 $46,548,462
================================================================================
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at January 31, 2005, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $23,561,386 $12,915,618 $3,187,003
Depreciation (426,630) (290,602) (14,737)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $23,134,756 $12,625,016 $3,172,266
============================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $14,634,972 $6,349,284 $4,216,131 $3,346,801
Depreciation (69) (31,196) -- --
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $14,634,903 $6,318,088 $4,216,131 $3,346,801
============================================================================================================
The tax components of undistributed net investment income and net realized gains
at July 31, 2004, the Funds' last fiscal year end, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $2,706,496 $1,894,851 $500,325
Undistributed net ordinary income ** 60,807 14,373 --
Undistributed net long-term capital gains 915,473 267,823 --
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $2,328,022 $960,391 $681,157 $279,127
Undistributed net ordinary income ** 54,254 10,211 349 --
Undistributed net long-term capital gains 95,687 -- -- 41,879
=========================================================================================================
* Undistributed net tax exempt income (on a tax basis) has not been reduced
for the dividend declared on July 1, 2004, paid on August 2, 2004.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
58
The tax character of distributions paid during the fiscal year ended July 31,
2004, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,754,459 $7,435,769 $1,951,436
Distributions from net ordinary income ** 30,661 161,074 --
Distributions from net long-term capital gains 1,328,221 3,227,967 --
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,199,299 $4,338,961 $3,036,212 $2,013,038
Distributions from net ordinary income ** 18,197 1,707 -- 156,865
Distributions from net long-term capital gains 2,185,303 75,417 -- --
=========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At July 31, 2004, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
MICHIGAN OHIO OHIO
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE ADVANTAGE 2
(NZW) (NXI) (NBJ)
--------------------------------------------------------------------------------
Expiration year:
2011 $83,181 $-- $21,436
2012 -- 23,743 3,575
--------------------------------------------------------------------------------
Total $83,181 $23,743 $25,011
================================================================================
The following Funds elected to defer net realized losses from investments
incurred from November 1, 2003 through July 31, 2004 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen on the first day of the current fiscal year:
OHIO OHIO
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2
(NXI) (NBJ)
--------------------------------------------------------------------------------
$126,917 $23,088
================================================================================
59
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
As approved by the Board of Directors/Trustees, effective August 1, 2004, a
complex-wide management fee structure was adopted for all funds sponsored by the
Adviser or its predecessor and its affiliates. This fee structure separates each
fund's management fee into two components - a complex-level component, based on
the aggregate amount of all fund assets managed by the Adviser and its
affiliates, and a specific fund-level component, based only on the amount of
assets within each individual fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser
and its affiliates. Under no circumstances will this pricing structure result in
a fund paying management fees at a rate higher than would otherwise have been
applicable had the complex-wide management fee structure not been implemented.
As a consequence of this new management fee structure, the funds' effective
management fees were reduced by approximately .009% as of February 28, 2005.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
MICHIGAN QUALITY INCOME (NUM)
AVERAGE DAILY NET ASSETS MICHIGAN PREMIUM INCOME (NMP)
(INCLUDING NET ASSETS ATTRIBUTABLE OHIO QUALITY INCOME (NUO)
TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
MICHIGAN DIVIDEND ADVANTAGE (NZW)
OHIO DIVIDEND ADVANTAGE (NXI)
AVERAGE DAILY NET ASSETS OHIO DIVIDEND ADVANTAGE 2 (NBJ)
(INCLUDING NET ASSETS ATTRIBUTABLE OHIO DIVIDEND ADVANTAGE 3 (NVJ)
TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
60
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
MICHIGAN QUALITY INCOME (NUM)
AVERAGE DAILY NET ASSETS MICHIGAN PREMIUM INCOME (NMP)
(INCLUDING NET ASSETS ATTRIBUTABLE OHIO QUALITY INCOME (NUO)
TO PREFERRED SHARES) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
MICHIGAN DIVIDEND ADVANTAGE (NZW)
OHIO DIVIDEND ADVANTAGE (NXI)
AVERAGE DAILY NET ASSETS OHIO DIVIDEND ADVANTAGE 2 (NBJ)
(INCLUDING NET ASSETS ATTRIBUTABLE OHIO DIVIDEND ADVANTAGE 3 (NVJ)
TO PREFERRED SHARES) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
61
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised Funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
Funds.
For the first ten years of 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.
62
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.
63
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
6. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on March 1, 2005, to shareholders of record on
February 15, 2005, as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Dividend per share $.0790 $.0770 $.0745
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Dividend per share $.0835 $.0810 $.0770 $.0730
================================================================================
Announcement Regarding Parent Company of Adviser
Recently, The St. Paul Travelers Companies, Inc. announced that it intended to
explore strategic alternatives to divest its equity stake in Nuveen. This
divestiture could take the form of a sale by The St. Paul Travelers Companies,
Inc. of its interest in Nuveen to another party or the form of the sale of its
interest to the public in a registered, broadly disseminated offering. Any
resulting divestiture could be deemed to be an "assignment" (as defined in the
1940 Act) of the investment management agreement between the Fund and NAM and
the investment sub-advisory agreement between NAM and Gateway, which would
result in the automatic termination of each agreement. The Board of
Directors/Trustees thereupon may consider both an interim investment management
agreement and interim investment sub-advisory agreement (as permitted under the
1940 Act) and new ongoing investment management and investment sub-advisory
agreements. If approved by the Board, the new ongoing agreements would be
presented to the Funds' shareholders for approval, and would take effect upon
such approval. There can be no assurance that these approvals will be obtained.
64
Financial
HIGHLIGHTS (Unaudited)
65
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:
2005(b) $15.51 $ .49 $ .77 $(.05) $(.01) $1.20 $(.48) $(.11) $ (.59)
2004 15.14 1.01 .49 (.06) (.01) 1.43 (.95) (.11) (1.06)
2003 15.48 1.04 (.27) (.08) (.01) .68 (.92) (.10) (1.02)
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)
MICHIGAN PREMIUM
INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(b) 15.19 .47 .71 (.04) -- 1.14 (.47) (.05) (.52)
2004 15.24 .97 .38 (.04) (.03) 1.28 (.94) (.39) (1.33)
2003 15.56 1.03 (.37) (.07) -- .59 (.91) -- (.91)
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)
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(b) 14.82 .49 .78 (.04) -- 1.23 (.45) -- (.45)
2004 14.30 .99 .47 (.05) -- 1.41 (.89) -- (.89)
2003 14.42 .99 (.20) (.07) -- .72 (.86) -- (.86)
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:
2005(b) $ -- $16.12 $16.1900 10.45% 7.84%
2004 -- 15.51 15.2000 5.17 9.52
2003 -- 15.14 15.4500 2.40 4.35
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
MICHIGAN PREMIUM
INCOME (NMP)
-----------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(b) -- 15.81 15.6300 12.44 7.56
2004 -- 15.19 14.3700 5.46 8.56
2003 -- 15.24 14.8500 2.64 3.71
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
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
-----------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(b) .01 15.61 16.1600 13.53 8.45
2004 -- 14.82 14.6500 2.99 10.00
2003 .02 14.30 15.1000 9.19 5.01
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
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:
2005(b) $188,558 1.22%* 6.12%* 1.21%* 6.13%* 4%
2004 181,114 1.22 6.44 1.22 6.45 15
2003 176,186 1.24 6.56 1.24 6.57 15
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
MICHIGAN PREMIUM
INCOME (NMP)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(b) 122,334 1.20* 5.95* 1.18* 5.96* 7
2004 117,529 1.20 6.28 1.19 6.30 28
2003 117,418 1.21 6.49 1.20 6.50 18
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
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(b) 32,171 1.29* 5.92* .83* 6.38* 3
2004 30,538 1.28 6.13 .81 6.60 9
2003 29,443 1.29 6.15 .82 6.61 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:
2005(b) $94,000 $25,000 $75,148
2004 94,000 25,000 73,169
2003 94,000 25,000 71,858
2002 94,000 25,000 72,774
2001 94,000 25,000 71,985
2000 94,000 25,000 69,529
MICHIGAN PREMIUM
INCOME (NMP)
-----------------------------------------------------------------------------
Year Ended 7/31:
2005(b) 56,000 25,000 79,613
2004 56,000 25,000 77,468
2003 56,000 25,000 77,419
2002 56,000 25,000 78,491
2001 56,000 25,000 77,582
2000 56,000 25,000 73,913
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
-----------------------------------------------------------------------------
Year Ended 7/31:
2005(b) 16,000 25,000 75,268
2004 16,000 25,000 72,716
2003 16,000 25,000 71,005
2002(a) 16,000 25,000 71,374
=============================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period September 25, 2001 (commencement of operations) through July
31, 2002.
(b) For the six months ended January 31, 2005.
See accompanying notes to financial statements.
66-67 spread
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from 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:
2005(d) $16.21 $ .52 $ .69 $(.04) $ -- $1.17 $ (.50) $(.04) $ (.54)
2004 16.17 1.07 .25 (.06) (.01) 1.25 (1.00) (.21) (1.21)
2003 16.36 1.10 (.22) (.08) -- .80 (.99) -- (.99)
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)
OHIO DIVIDEND
ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(d) 15.05 .50 .76 (.04) -- 1.22 (.49) -- (.49)
2004 14.66 1.04 .40 (.06) -- 1.38 (.97) (.02) (.99)
2003 14.83 1.05 (.23) (.07) -- .75 (.92) (.01) (.93)
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:
2005(d) 14.85 .48 .82 (.04) -- 1.26 (.46) (.02) (.48)
2004 14.31 .99 .53 (.06) -- 1.46 (.92) -- (.92)
2003 14.48 1.00 (.23) (.08) -- .69 (.87) -- (.87)
2002(b) 14.33 .78 .23 (.08) -- .93 (.62) -- (.62)
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(d) 14.93 .48 .85 (.04) -- 1.29 (.44) (.02) (.46)
2004 14.48 .96 .51 (.06) (.01) 1.40 (.88) (.07) (.95)
2003 14.83 .97 (.29) (.07) (.01) .60 (.88) (.06) (.94)
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:
2005(d) $ -- $16.84 $18.8900 19.41% 7.29%
2004 -- 16.21 16.3000 2.59 7.87
2003 -- 16.17 17.0400 (3.15) 4.84
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
OHIO DIVIDEND
ADVANTAGE (NXI)
-----------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(d) -- 15.78 16.2100 12.79 8.18
2004 -- 15.05 14.8000 10.70 9.54
2003 .01 14.66 14.2600 (.04) 5.09
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:
2005(d) -- 15.63 16.0900 12.81 8.62
2004 -- 14.85 14.7000 9.60 10.33
2003 .01 14.31 14.2600 3.17 4.74
2002(b) (.16) 14.48 14.6500 1.91 5.58
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-----------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(d) -- 15.76 15.7900 13.69 8.71
2004 -- 14.93 14.3000 5.86 9.72
2003 (.01) 14.48 14.4000 .09 3.81
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:
2005(d) $163,186 1.19%* 6.19%* 1.18%* 6.20%* 7%
2004 156,634 1.20 6.46 1.19 6.47 31
2003 155,412 1.22 6.59 1.22 6.60 12
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
OHIO DIVIDEND
ADVANTAGE (NXI)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(d) 66,787 1.20* 6.02* .75* 6.47* 3
2004 63,642 1.20 6.41 .75 6.86 10
2003 61,924 1.23 6.52 .78 6.97 6
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:
2005(d) 48,729 1.24* 5.70* .78* 6.16* 8
2004 46,268 1.25 6.13 .79 6.60 15
2003 44,578 1.27 6.26 .81 6.72 15
2002(b) 45,073 1.25* 6.12* .80* 6.57* 39
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005(d) 34,008 1.25* 5.67* .78* 6.14* 1
2004 32,208 1.28 5.87 .81 6.34 8
2003 31,245 1.28 5.89 .82 6.35 16
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:
2005(d) $77,000 $25,000 $77,983
2004 77,000 25,000 75,855
2003 77,000 25,000 75,458
2002 77,000 25,000 75,763
2001 77,000 25,000 74,729
2000 77,000 25,000 72,742
OHIO DIVIDEND
ADVANTAGE (NXI)
---------------------------------------------------------------------
Year Ended 7/31:
2005(d) 31,000 25,000 78,860
2004 31,000 25,000 76,324
2003 31,000 25,000 74,938
2002 31,000 25,000 75,442
2001(a) 31,000 25,000 74,535
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
---------------------------------------------------------------------
Year Ended 7/31:
2005(d) 24,000 25,000 75,759
2004 24,000 25,000 73,196
2003 24,000 25,000 71,435
2002(b) 24,000 25,000 71,951
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
---------------------------------------------------------------------
Year Ended 7/31:
2005(d) 16,500 25,000 76,528
2004 16,500 25,000 73,800
2003 16,500 25,000 72,341
2002(c) 16,500 25,000 73,477
=====================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 27, 2001 (commencement of operations) through July 31,
2001.
(b) For the period September 25, 2001 (commencement of operations) through July
31, 2002.
(c) For the period March 25, 2002 (commencement of operations) through July 31,
2002.
(d) For the six months ended January 31, 2005.
See accompanying notes to financial statements.
68-69 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
70
Other Useful
INFORMATION
Effective Jan. 1, 2005, the asset management services and operations of Nuveen
Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part
of Nuveen Asset Management (NAM). This internal consolidation is intended to
simplify the delivery of services to the investment management clients of Nuveen
Investments. It does not affect the investment objectives or portfolio
management of any Fund.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
most recent 12-month period ended June 30, 2004, and (iii) a description of the
policies and procedures that the Funds used to determine how to vote proxies
relating to portfolio securities are available without charge, upon request, by
calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the sensitivity of a bond
or bond Fund's value to changes when interest rates change. Generally, the
longer a bond or Fund's duration, the more the price of the bond or Fund will
change as interest rates change. Leverage-adjusted duration takes into account
the leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
71
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $115 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-B-0105D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Schedule I in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Michigan Quality Income Municipal Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: April 8, 2005
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: April 8, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: April 8, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.