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
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: July 31
------------------
Date of reporting period: July 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.
ANNUAL REPORT July 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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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the 12-month period covered by this
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 Comments and
Performance Overview sections of this report.
As I noted in my last letter to you, many market observers are wondering whether
longer-term interest rates will soon begin to rise substantially, mirroring the
rise that has taken place over the past year in shorter-term rates. If
longer-term rates do begin to rise significantly, some have suggested that this
would be a signal to begin adjusting your holdings of fixed-income investments.
Nobody knows what the market will do in the future. But from our experience, we
do know 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 fact, a well-diversified
portfolio may actually help to reduce your overall investment risk over the long
term. 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 in a variety of market conditions.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
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.
Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of
Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a
substantial portion of its stake in Nuveen. More recently, St. Paul sold the
balance of its Nuveen shares to Nuveen Investments or to others. Please be
assured that these transactions only affect Nuveen's corporate structure, and
they do not have any impact on the investment objectives or management of your
Fund.
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
September 15, 2005
Nuveen Municipal Closed-End Exchange-Traded Funds
(NUM, NMP, NZW, NUO, NXI, NBJ, NVJ)
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves discusses the economic and municipal market
environments, key investment strategies and the performance of these Funds.
Cathryn, who joined Nuveen in 1996, assumed portfolio management responsibility
for the Ohio Funds in August 2004 and for the Michigan Funds in January 2005.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
REPORTING PERIOD ENDED JULY 31, 2005?
Between August 1, 2004, and July 31, 2005, the Federal Reserve implemented eight
0.25% increases in the fed funds rate. These increases, which were aimed at
controlling economic growth and keeping the rate of inflation at acceptable
levels, raised this short-term target to 3.25% from 1.25%. (On August 9, 2005,
following the close of this reporting period, the fed funds rate was increased
by another 0.25% to 3.50%.) As the fed funds rate rose over the reporting
period, there was a corresponding increase in many shorter-term municipal market
rates. At the same time, longer-term yields declined and bond prices rose. The
yield on the benchmark 10-year U.S. Treasury note stood at 4.31% on July 31,
2005, compared with 4.45% one year earlier. Longer-term yields in the municipal
market followed a similar pattern. The yield of the Bond Buyer 25 Revenue Bond
Index, a widely-followed measure of longer-term municipal market rates, declined
by approximately 45 basis points during this 12-month reporting period.
This rise in shorter-term rates and decline in longer-term rates produced an
overall flattening of the yield curve, and generally helped the performance of
bonds with longer effective maturities while tending to hurt the performance of
securities with shorter maturities or short call dates.
Despite the increases in shorter-term rates and an upsurge in energy costs, the
economic expansion continued through the reporting period. The U.S. gross
domestic product (GDP) grew in every calendar quarter, expanding at an
annualized rate of 4.0% in the third quarter of 2004, by 3.3% (annualized) in
the fourth quarter of 2004, 3.8% (annualized) in the first three months of 2005
and 3.4% (annualized) in the second quarter of 2005.
4
As of July 31, 2005, the year-over-year increase in the Consumer Price Index
(CPI) was 3.2%, and the national unemployment rate stood at 5.0%, its lowest
level since September 2001. On the whole, job reports over the 12-month period
presented a picture of relatively solid growth.
Over this 12-month period, municipal bond new issue supply nationwide remained
strong, with $389.1 billion in new securities coming to market. One major factor
behind the large new issue supply was the flattening yield curve, which in many
situations made advance refundings economically more attractive for municipal
issuers. Advance refunding means issuing new bonds at current lower rates and
using the proceeds to effectively pay off existing, higher-yielding bonds.
Between January and July 2005 such refundings were 67% higher than during the
same period in 2004.
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN MICHIGAN AND OHIO?
During this reporting period, Michigan's manufacturing-based economy remained
among the weakest in the country. The state's relatively highly unionized work
force, combined with high energy and shipping costs, continued to prompt
outsourcing to states and countries where costs were lower. While jobs in the
business and services industries expanded, this was not enough to offset losses
among auto manufacturers and suppliers. As of July 2005, Michigan's unemployment
rate stood at 7.0%, the highest among the 50 states and well above the July 2005
national average of 5.0%. The continued weakness of the state's economy caused
Fitch to downgrade Michigan's general obligation debt to AA from AA+ in December
2004. Moody's followed suit in January 2005, lowering the state's rating to Aa2
from Aa1. Standard & Poor's downgraded Michigan's general obligation debt to AA
from AA+ in March 2005. During this reporting period, municipal issuance in
Michigan totaled $14.1 billion, an increase of 60% over the previous 12 months.
Ohio's economic growth also continued to be constrained by the state's heavy
reliance on the weakened manufacturing sector. However, the massive job losses
in manufacturing - with 235,000 jobs lost over the past three years - appear to
have eased in recent months, and the state has become a hub for healthcare
services. The state's outlook for business and professional services jobs also
has improved recently, providing diversity to the Ohio economy. While relatively
high when compared with the national average, the
5
jobless rate in Ohio fell to 5.7% in July 2005, down from 6.2% in July 2004.
Recent state legislation that limits judgments against small and medium-sized
companies, combined with Ohio's below-average overall cost of doing business,
was expected to help strengthen Ohio's competitiveness and encourage businesses
to relocate to or remain in the state. As of July 31, 2005, Ohio's general
obligation bonds were rated Aa1/AA+/AA+ by Moody's, Standard & Poor's and Fitch,
respectively. In November 2004, Moody's revised its outlook for the state to
stable from negative, citing recent improvements in Ohio's economic conditions.
For the 12 months ended July 31, 2005, Ohio issuers offered $11.4 billion in new
municipal debt, an increase of 7% from the previous 12-month period.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THE
12 MONTHS ENDED JULY 31, 2005?
With many market participants anticipating higher long-term interest rates, our
focus in the Michigan and Ohio Funds throughout this period centered on finding
bonds that we believed would add immediate value to the Funds' portfolios and
that, in our judgment, also had the potential to perform well under a variety of
future market scenarios, regardless of economic or interest rate trends.
In general, our purchase activity emphasized bonds in the long-intermediate part
of the yield curve - specifically, bonds that mature in 15 to 25 years. In our
opinion, bonds in the intermediate part of the curve offered more attractive
opportunities and the best values during this period.
We also focused on purchasing bonds with premium coupons - those with prices
above par and coupons above current market rates. Historically, these bonds
often have held their value better than current coupon bonds when interest rates
rise. Since premium bonds are sometimes vulnerable to early calls, we sought to
balance some of these holdings by also purchasing bonds with eight to ten years
of call protection.
As noted earlier, Michigan experienced significant growth in municipal issuance
during this period, especially in the first part of 2005, while Ohio saw a more
modest increase in municipal supply. In both markets, this increased our
opportunities to utilize our specialized research expertise to find the types of
bonds we sought. For example, for all
6
three of the Michigan Funds during this period we purchased BBB rated Chelsea
Community Hospital bonds; BBB-rated Chandler Park Academy, a charter school; and
non-rated bonds issued by Michigan State Hospital Financial Authority for
Presbyterian Villages of Michigan, a long-term care facility. In the Ohio Funds,
we added bonds rated AA issued by Montgomery County for Catholic Health
Initiatives to all four Funds and bonds rated Baa1 issued for Wittenberg
University to NUO, NXI and NVJ.
In addition to yield curve positioning and credit exposure, another priority
during this period was careful duration management. Duration is a measure of a
bond's price sensitivity as interest rates change, with higher duration bonds
being more sensitive and thereby presenting greater interest rate risk. Duration
management became increasingly important in the first half of 2005, as the
flattening of the yield curve resulted in a dramatic rise in advance refundings.
This had a generally positive impact on the Funds' performance, but also had a
shortening effect on the Funds' durations. In order to maintain the Funds'
durations within our preferred strategic range, we sold some of our older
pre-refunded bonds and bonds with shorter maturities, which tended to
underperform in the interest rate environment of the past 12 months, and
reinvested the proceeds in longer duration bonds. Selling shorter duration bonds
and reinvesting further out on the yield curve also enabled us to improve the
Funds' overall call protection.
As discussed in the shareholder report dated January 31, 2005, we also began to
use forward interest rate swaps, a type of derivative financial instrument, in
late 2004 in an effort to reduce some of the interest rate risk in NZW. It is
important to note that the hedge was not an attempt to profit from correctly
predicting the timing and direction of interest rate movements. Instead, our
sole objective was to reduce the duration of the Fund without having a negative
impact on its income stream or common share dividends over the short term. The
gain or loss from the hedging activity is reflected as an addition or
subtraction to the Fund's net asset value (NAV) as the market value of the hedge
fluctuates. Over the course of this reporting period, the hedge was effective in
helping to reduce the NAV volatility of NZW. However, it had a negative impact
on the Fund's total return for the period as declining long-term interest rates
caused the value of the hedge to decline as the value of the Fund's portfolio
rose.
7
HOW DID THE FUNDS PERFORM?
Individual results for these Michigan and Ohio Funds, as well as for comparative
indexes and averages, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 7/31/05
MICHIGAN FUNDS 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NUM 9.28% 8.52% 7.16%
--------------------------------------------------------------------------------
NMP 8.80% 8.37% 7.41%
--------------------------------------------------------------------------------
NZW 10.41% NA NA
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index1 6.35% 6.48% 6.23%
--------------------------------------------------------------------------------
Lipper Michigan Municipal
Debt Funds Average2 9.53% 8.73% 7.81%
--------------------------------------------------------------------------------
OHIO FUNDS
--------------------------------------------------------------------------------
NUO 8.70% 7.77% 7.11%
--------------------------------------------------------------------------------
NXI 9.87% NA NA
--------------------------------------------------------------------------------
NBJ 9.90% NA NA
--------------------------------------------------------------------------------
NVJ 10.40% NA NA
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index1 6.35% 6.48% 6.23%
--------------------------------------------------------------------------------
Lipper Other States Municipal
Debt Funds Average3 9.78% 8.51% 7.28%
--------------------------------------------------------------------------------
*Annualized
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended July 31, 2005, the total returns on NAV for all seven of
the Funds in this report exceeded the return on the Lehman Brothers Municipal
Bond Index. NZW also outperformed the average return for the Lipper Michigan
peer group, while NUM and NMP trailed this measure. Among the Ohio Funds, NXI,
NBJ and NVJ all outperformed the Lipper Other States peer group, while NUO
lagged the group average. It should be noted that the performance of the Lipper
Other States category represents the average returns of funds from 10 different
states, representing a wide variety of economic and municipal market conditions.
We believe this makes direct comparisons between this group average and a
particular Ohio Fund less meaningful.
1 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 index do not reflect any expenses.
2 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: 1 year, 7 funds; 5 years, 5 funds; and 10 years, 4 funds.
Fund and Lipper returns assume reinvestment of dividends.
3 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: 1 year, 44 funds; 5 years, 19 funds; and 10 years, 17
funds. Fund and Lipper returns assume reinvestment of dividends.
8
One of the primary factors benefiting the 12-month performance 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 a Fund's NAV and
share price, especially during periods when interest rates rise, this strategy
can also 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 constant.
As noted earlier, the municipal market yield curve flattened over the course of
this reporting period as longer-term interest rates fell while short-term rates
rose. Since falling bond yields mean rising bond prices, longer maturity bonds
with falling yields generally performed better than securities with shorter
maturities. Heavier exposure to the longer end of the yield curve helped the
performances of NZW, NXI, NVJ, NBJ, and--to a lesser extent--NUM , while the
performances of NMP and NUO were hampered by their relatively greater exposure
to the short end of the curve. Part of the duration management strategy
discussed earlier included efforts to more closely align the yield curve
positioning of all these Funds.
All of the Funds in this report also benefited during this period from their
allocations of lower-quality bonds during this period. Bonds rated BBB and lower
and non-rated bonds generally outperformed other higher-credit quality sectors
as increased demand for lower-quality bonds offering higher yields drove up the
value of these securities. For example, all of the Michigan Funds benefited from
their holdings of lower-rated bonds issued for Detroit Medical Center, which
posted a return of 35% for the 12-month reporting period. Strong performing
bonds in the Ohio Funds included the BBB rated Hamilton County issue for Twin
Towers (a long-term care facility bond held by all four Funds), Baa1 rated bonds
for Summa Health Systems (held by NUO, NBJ and NVJ), and non-rated Ohio Water
Development Authority solid waste disposal revenue bonds issued for Bay Shore
Power (held by NUO, NXI and NBJ). The Ohio Funds also benefited from their
holdings of BBB rated bonds issued by Puerto Rico and backed by the 1998 master
tobacco settlement agreement, which produced solid performance during this
period as the litigation environment improved and supply/demand dynamics drove
tobacco bond prices higher.
9
In addition to leverage and credit and sector exposures, the Funds' performances
during this period were impacted by actions that affected individual securities,
including advance refundings, bond calls and upgrades or downgrades. NUM and
NZW, in particular, benefited from advance refundings of 11% and 6%,
respectively, of their portfolios during this reporting period. NXI, NBJ and NVJ
also had portions of their portfolios pre-refunded during this period. These
advance refundings resulted in price appreciation and enhanced credit quality.
In contrast, NMP and NUO had fewer pre-refundings during this period than the
other Funds in this report.
While bonds that were pre-refunded over this period tended to enhance Fund
performance, holdings of older pre-refunded bonds tended to underperform the
general municipal market during this period due to the shorter effective
maturities of these bonds. This had an impact on the returns of NUM, NMP and NUO
in particular. Housing was another sector that lagged the market during this
period, largely as the result of the increased risk of prepayments and bond
calls in the current interest rate environment. All of the Funds had exposures
to housing bonds backed by the Government National Mortgage Association (GNMA),
which did not perform well during this period and had slight negative impacts on
the Funds' annual returns.
10
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
JULY 31, 2005?
The Funds continued to maintain strong credit quality. As of July 31, 2005, all
of these Funds continued to offer excellent credit quality, with allocations of
bonds rated AAA/U.S. guaranteed and AA ranging from 76% in NVJ to 79% in NXI,
80% in NBJ, 83% in NZW, 86% in NUO, and 90% in NUM and NMP.
As of July 31, 2005, potential call exposure for the period August 2005 through
the end of 2006 ranged from 2% in NUM and NVJ to 3% in NZW, 4% in NBJ, 6% in
NXI, 9% in NMP and 11% in NUO. The number of actual bond calls in all of these
Funds depends largely on future market interest rates.
11
Dividend and Share Price
INFORMATION
Each of the Funds in this report uses leverage to enhance opportunities for
additional income for common shareholders. The extent of this benefit is tied in
part to the short-term rates the 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. However, when short-term interest rates rise, as
they did during this reporting period, the Funds' borrowing costs also rise.
While leveraging continued to provide benefits for common shareholders, the
extent of these benefits was reduced. In addition, older Funds such as NUM, NMP,
and NUO had a greater number of older, higher-yielding bonds that matured or
were called, and the proceeds from these bonds had to be reinvested in the
lower-yielding bonds available in the current rate environment, thereby reducing
the Funds' income streams. The decline in interest rates at the longer end of
the yield curve during this period also had an impact on some of the newer
Funds, which had fewer opportunities to build reserves. As a cumulative result
of all these factors, NXI and NVJ experienced one dividend reduction over the
12-month period ended July 31, 2005, and the dividends of NUM, NMP, NUO, and NBJ
were reduced twice. The dividend of NZW remained stable throughout this
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 follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NUM $0.1109 $0.0056
--------------------------------------------------------------------------------
NMP $0.0454 $0.0056
--------------------------------------------------------------------------------
NUO $0.0295 $0.0059
--------------------------------------------------------------------------------
NBJ $0.0210 $0.0015
--------------------------------------------------------------------------------
NVJ $0.0183 --
--------------------------------------------------------------------------------
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has
12
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
July 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 or discounts to their NAVs as shown in the accompanying chart:
7/31/05 12-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NUM -1.32% +0.44%
--------------------------------------------------------------------------------
NMP +0.84% -1.35%
--------------------------------------------------------------------------------
NZW +8.74% +1.49%
--------------------------------------------------------------------------------
NUO +2.29% +4.21%
--------------------------------------------------------------------------------
NXI +9.32% +4.30%
--------------------------------------------------------------------------------
NBJ +0.72% +2.28%
--------------------------------------------------------------------------------
NVJ +2.12% +0.96%
--------------------------------------------------------------------------------
13
Nuveen Michigan Quality Income Municipal Fund, Inc.
NUM
Performance
OVERVIEW As of July 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 82%
AA 8%
A 7%
BBB 2%
BB or Lower 1%
Bar Chart:
2004-2005 Monthly Tax-Free Dividends Per Share2
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Jan 0.079
Feb 0.079
Mar 0.076
Apr 0.076
May 0.076
Jun 0.072
Jul 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/04 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
16.68
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
16.19
16.28
16.42
16.36
16.71
16.7
16.66
16.88
16.62
16.52
16.52
16.55
16.63
16.51
16.51
16.4
16.51
16.6
16.88
17.08
16.71
16.64
16.6
16.78
17
16.85
17
16.94
16.45
16.48
16.54
16.45
16.44
16.5
16.18
16
15.77
15.42
15.24
15.4
15.35
15.52
15.69
15.74
15.81
15.75
15.9
15.76
15.82
15.78
15.67
15.63
15.65
15.64
15.69
15.69
15.68
15.64
15.65
15.7
15.72
15.81
15.95
15.95
15.92
15.93
15.91
15.99
15.85
15.88
16.11
16.07
15.99
16.11
16.08
16.18
16.04
16.05
16.13
16.08
16.16
16.19
15.91
15.96
16.06
16.19
16.23
16.2
16.07
15.93
15.95
15.88
15.73
15.63
15.75
15.83
15.8
15.76
15.78
15.8
15.84
15.89
15.86
15.94
15.93
16.02
16.1
16.1
16.17
16.1
16.15
16.15
16.13
16
15.89
16
15.95
15.87
15.95
15.79
15.65
15.65
15.56
15.58
15.55
15.61
15.67
7/31/05 15.67
FUND SNAPSHOT
------------------------------------
Common Share Price $15.67
------------------------------------
Common Share
Net Asset Value $15.88
------------------------------------
Premium/(Discount) to NAV -1.32%
------------------------------------
Market Yield 5.51%
------------------------------------
Taxable-Equivalent Yield1 7.99%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $185,900
------------------------------------
Average Effective
Maturity on Securities
(Years) 15.00
------------------------------------
Leverage-Adjusted Duration 8.67
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 9.94% 9.28%
------------------------------------
5-Year 9.04% 8.52%
------------------------------------
10-Year 7.10% 7.16%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 25.9%
------------------------------------
U.S. Guaranteed 24.2%
------------------------------------
Tax Obligation/Limited 12.1%
------------------------------------
Healthcare 11.5%
------------------------------------
Utilities 8.2%
------------------------------------
Water and Sewer 6.9%
------------------------------------
Education and Civic
Organizations 5.7%
------------------------------------
Other 5.5%
------------------------------------
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%. When comparing this fund to 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.
14
Nuveen Michigan Premium Income Municipal Fund, Inc.
NMP
Performance
OVERVIEW As of July 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
Aug 0.077
Sep 0.077
Oct 0.077
Nov 0.077
Dec 0.077
Jan 0.077
Feb 0.077
Mar 0.074
Apr 0.074
May 0.074
Jun 0.07
Jul 0.07
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/04 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
15.75
15.7
15.61
15.51
15.75
15.64
15.77
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
15.63
15.65
15.67
15.7
15.72
15.87
15.83
15.88
15.87
15.88
15.83
15.6
15.61
15.59
15.6
15.64
15.8
16.01
16.01
16.02
16.09
16.06
16.14
16.16
16.25
16.09
16.03
15.8
15.85
15.9
15.72
15.72
15.64
15.43
14.89
14.89
14.73
14.61
14.55
14.48
14.52
14.66
14.8
14.85
14.8
14.89
14.91
14.98
15.25
15.2
15.2
15.26
15.25
15.24
15.39
15.14
15
15
14.9
14.85
14.99
15.3
15.12
15.12
15.15
15.28
15.26
15.3
15.05
15.1
15.2
15.28
15.3
15.28
15.29
15.28
15.4
15.41
15.4
15.3
15.48
15.65
15.57
15.49
15.61
15.6
15.66
15.63
15.65
15.6
15.64
15.65
15.7
15.55
15.4
15.38
15.36
15.62
15.5
15.42
15.42
15.42
15.44
15.45
15.31
15.38
15.4
15.55
15.6
15.65
15.7
15.6
15.6
15.72
15.75
15.62
15.8
15.75
15.76
15.75
15.57
15.65
15.42
15.57
15.56
15.66
15.68
7/31/05 15.68
FUND SNAPSHOT
------------------------------------
Common Share Price $15.68
------------------------------------
Common Share
Net Asset Value $15.55
------------------------------------
Premium/(Discount) to NAV 0.84%
------------------------------------
Market Yield 5.36%
------------------------------------
Taxable-Equivalent Yield1 7.77%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $120,475
------------------------------------
Average Effective
Maturity on Securities
(Years) 16.93
------------------------------------
Leverage-Adjusted Duration 7.66
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 16.03% 8.80%
------------------------------------
5-Year 10.33% 8.37%
------------------------------------
10-Year 9.25% 7.41%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 35.8%
------------------------------------
Tax Obligation/Limited 14.4%
------------------------------------
U.S. Guaranteed 12.9%
------------------------------------
Healthcare 10.7%
------------------------------------
Utilities 9.4%
------------------------------------
Water and Sewer 6.1%
------------------------------------
Other 10.7%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31%. When comparing this fund to 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.
15
Nuveen Michigan Dividend Advantage Municipal Fund
NZW
Performance
OVERVIEW As of July 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 70%
AA 13%
A 8%
BBB 6%
BB or Lower 1%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Aug 0.0745
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0745
Jul 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/04 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
14.85
14.99
14.99
15.07
15.01
15.15
15.2
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
16.16
16.16
16.32
16.2
16.26
16.35
16.37
16.5
16.37
16.5
16.35
16.42
16.2
16.04
15.77
15.7
15.79
15.84
15.79
15.8
15.76
15.79
15.95
16.3
16.3
16
16.18
16.1
15.76
15.83
15.74
15.68
15.47
15.57
15.46
15.28
15.28
15.15
15.15
14.88
14.89
14.9
14.96
14.96
14.95
14.95
15.04
15
14.9
14.99
15
15.45
15.5
15.63
15.63
15.48
15.45
15.45
15.27
15.27
15.5
15.46
15.49
15.49
15.48
15.51
15.6
15.65
15.7
15.7
15.74
15.66
15.61
15.61
15.56
15.48
15.51
15.58
15.64
15.73
15.74
15.64
15.55
15.47
15.43
15.55
15.68
15.74
15.73
15.6
15.72
15.69
15.74
15.74
15.55
15.65
15.65
15.58
15.6
15.55
15.61
15.58
15.57
15.63
15.75
15.75
16.25
16.25
16.24
16.45
16.45
16.46
16.5
16.53
16.7
16.6
16.55
16.49
16.5
16.43
16.45
16.57
16.4
16.65
16.6
16.6
16.79
7/31/05 16.79
FUND SNAPSHOT
------------------------------------
Common Share Price $16.79
------------------------------------
Common Share
Net Asset Value $15.44
------------------------------------
Premium/(Discount) to NAV 8.74%
------------------------------------
Market Yield 5.32%
------------------------------------
Taxable-Equivalent Yield1 7.71%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $31,821
------------------------------------
Average Effective
Maturity on Securities
(Years) 17.43
------------------------------------
Leverage-Adjusted Duration 7.41
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 21.34% 10.41%
------------------------------------
Since
Inception 8.97% 7.94%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 28.0%
------------------------------------
U.S. Guaranteed 19.3%
------------------------------------
Healthcare 10.6%
------------------------------------
Utilities 10.2%
------------------------------------
Tax Obligation/Limited 9.9%
------------------------------------
Water and Sewer 8.0%
------------------------------------
Education and Civic
Organizations 4.8%
------------------------------------
Other 9.2%
------------------------------------
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%. When comparing this fund to investments that generate
qualified dividend income, the taxable equivalent yield is lower.
16
Nuveen Ohio Quality Income Municipal Fund, Inc.
NUO
Performance
OVERVIEW As of July 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 64%
AA 22%
A 8%
BBB 4%
BB or Lower 1%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Aug 0.0835
Sep 0.0835
Oct 0.0835
Nov 0.0835
Dec 0.0835
Jan 0.0835
Feb 0.0835
Mar 0.0805
Apr 0.0805
May 0.0805
Jun 0.0765
Jul 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/04 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
17.45
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
18.43
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
18.89
18.76
18.9
18.6
18.64
18.68
18.6
18.7
18.56
18.43
18.5
18.47
18.44
18.27
18.13
17.95
18.05
17.79
17.65
17.68
17.55
17.36
17.39
17.36
17.38
17.38
17.3
17.34
17.29
17.17
16.89
16.62
16.58
16.72
16.55
16.37
16.21
16.12
16.11
16.18
16.25
16.5
16.84
16.81
16.9
16.94
16.92
16.8
16.71
16.9
16.87
16.87
16.87
16.86
16.9
16.66
16.59
16.5
16.46
16.51
16.53
16.62
16.71
16.71
16.8
16.87
16.86
16.93
16.8
16.64
16.7
16.74
16.76
16.79
16.8
16.8
16.97
16.88
17.01
17.1
17.16
17
16.96
17
17.16
17.22
17.2
17.28
17.25
17.21
17.22
17.21
17.2
17.25
17.13
17.12
17
17
16.87
17.07
17.11
17.2
17.14
17.26
17.34
17.22
17.18
17.28
17.22
17.15
17.2
17.22
17.22
17.13
17.14
17.07
17.1
17.06
17.14
17.14
17.12
17
16.87
16.94
17.02
16.99
16.96
7/31/05 16.96
FUND SNAPSHOT
------------------------------------
Common Share Price $16.96
------------------------------------
Common Share
Net Asset Value $16.58
------------------------------------
Premium/(Discount) to NAV 2.29%
------------------------------------
Market Yield 5.41%
------------------------------------
Taxable-Equivalent Yield1 8.07%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $160,982
------------------------------------
Average Effective
Maturity on Securities
(Years) 16.68
------------------------------------
Leverage-Adjusted Duration 7.54
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 10.25% 8.70%
------------------------------------
5-Year 6.49% 7.77%
------------------------------------
10-Year 7.21% 7.11%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 31.7%
------------------------------------
Healthcare 17.1%
------------------------------------
U.S. Guaranteed 11.1%
------------------------------------
Tax Obligation/Limited 7.2%
------------------------------------
Education and Civic
Organizations 7.0%
------------------------------------
Water and Sewer 6.1%
------------------------------------
Transportation 5.3%
------------------------------------
Utilities 4.8%
------------------------------------
Other 9.7%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. When comparing this fund to 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.
17
Nuveen Ohio Dividend Advantage Municipal Fund
NXI
Performance
OVERVIEW As of July 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 56%
AA 23%
A 9%
BBB 11%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Aug 0.081
Sep 0.081
Oct 0.081
Nov 0.081
Dec 0.081
Jan 0.081
Feb 0.081
Mar 0.078
Apr 0.078
May 0.078
Jun 0.078
Jul 0.078
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/04 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
16.74
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
16.21
16.36
16.36
16.46
16.58
16.65
16.53
16.53
16.62
16.66
16.95
16.64
16.68
17
16.5
16.52
16.38
16.13
16.12
16.09
16.15
16.31
16.42
16.4
16.39
16.2
16.11
16.02
16.14
16.1
16.15
15.93
15.67
15.68
15.63
15.46
15.3
15.08
14.93
14.8
15.01
15.19
15.28
15.24
15.28
15.35
15.12
15.02
15.07
15.27
15.34
15.55
15.7
16.03
16.2
16.15
16.11
16.1
16.05
16
16.21
16.3
16.42
16.42
16.29
15.84
15.82
15.7
15.46
15.4
15.38
15.3
15.27
15.37
15.37
15.28
15.35
15.35
15.52
15.58
15.51
15.59
15.66
15.76
15.99
16.09
16.2
16.35
16.27
16.3
16.16
16.1
16.03
15.86
15.9
15.8
15.65
15.76
15.91
15.93
16.1
16.2
16.24
16.25
16.32
16.21
16.18
16.31
16.14
16.1
16.03
16.1
16.43
16.68
16.62
16.7
16.83
16.69
16.66
16.34
16.78
16.73
16.41
16.49
16.74
16.81
17
7/31/05 17
FUND SNAPSHOT
------------------------------------
Common Share Price $17.00
------------------------------------
Common Share
Net Asset Value $15.55
------------------------------------
Premium/(Discount) to NAV 9.32%
------------------------------------
Market Yield 5.51%
------------------------------------
Taxable-Equivalent Yield1 8.22%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $65,873
------------------------------------
Average Effective
Maturity on Securities
(Years) 17.85
------------------------------------
Leverage-Adjusted Duration 7.56
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 21.79% 9.87%
------------------------------------
Since
Inception 9.11% 8.22%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 30.7%
------------------------------------
Education and Civic
Organizations 13.2%
------------------------------------
Healthcare 12.1%
------------------------------------
Tax Obligation/Limited 11.7%
------------------------------------
Utilities 8.7%
------------------------------------
Water and Sewer 6.7%
------------------------------------
U.S. Guaranteed 3.5%
------------------------------------
Housing/Multifamily 3.2%
------------------------------------
Other 10.2%
------------------------------------
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%. When comparing this fund to investments that generate
qualified dividend income, the taxable equivalent yield is lower.
18
Nuveen Ohio Dividend Advantage Municipal Fund 2
NBJ
Performance
OVERVIEW As of July 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 67%
AA 13%
A 11%
BBB 8%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Aug 0.077
Sep 0.077
Oct 0.077
Nov 0.077
Dec 0.077
Jan 0.077
Feb 0.077
Mar 0.074
Apr 0.074
May 0.074
Jun 0.07
Jul 0.07
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/04 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
16.3
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
16.09
16.05
16
16.19
16.19
16.06
16.05
16.01
16.09
15.95
16
16.05
15.95
15.89
15.89
15.88
15.9
15.97
15.97
15.89
15.8
15.72
15.9
15.97
15.89
15.85
15.83
15.78
15.69
15.6
15.61
15.55
15.45
15.45
15.48
15.48
15.35
15.45
15.18
15.2
15.24
15.37
15.45
15.3
15.3
15.2
15.44
15.36
15.2
15.25
15.12
14.96
15.01
15.3
15.45
15.45
15.59
15.59
15.41
15.61
15.5
15.5
15.6
15.6
15.62
15.72
15.51
15.57
15.14
15.26
15.23
15.16
15.05
15.13
15
15.04
15.18
15.14
15.15
15.12
15.14
15.16
15.16
15.15
15.29
15.45
15.5
15.61
15.59
15.51
15.52
15.63
15.66
15.7
15.58
15.45
15.44
15.35
15.43
15.7
15.74
15.8
16.06
16.13
15.98
15.7
15.54
15.48
15.46
15.47
15.5
15.49
15.66
15.56
15.65
15.75
15.53
15.51
15.53
15.58
15.55
15.51
15.5
15.5
15.6
15.51
15.48
7/31/05 15.48
FUND SNAPSHOT
------------------------------------
Common Share Price $15.48
------------------------------------
Common Share
Net Asset Value $15.37
------------------------------------
Premium/(Discount) to NAV 0.72%
------------------------------------
Market Yield 5.43%
------------------------------------
Taxable-Equivalent Yield1 8.10%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $47,937
------------------------------------
Average Effective
Maturity on Securities
(Years) 15.69
------------------------------------
Leverage-Adjusted Duration 8.01
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 11.63% 9.90%
------------------------------------
Since
Inception 6.76% 7.92%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 27.6%
------------------------------------
Healthcare 17.2%
------------------------------------
Tax Obligation/Limited 13.1%
------------------------------------
U.S. Guaranteed 9.3%
------------------------------------
Education and Civic
Organizations 7.0%
------------------------------------
Utilities 6.0%
------------------------------------
Consumer Staples 5.8%
------------------------------------
Transportation 5.3%
------------------------------------
Water and Sewer 5.2%
------------------------------------
Other 3.5%
------------------------------------
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 33%. When comparing this fund to 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.
19
Nuveen Ohio Dividend Advantage Municipal Fund 3
NVJ
Performance
OVERVIEW As of July 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 59%
AA 17%
A 16%
BBB 8%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Aug 0.073
Sep 0.073
Oct 0.073
Nov 0.073
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Jun 0.069
Jul 0.069
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/04 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
15.08
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
16.48
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
15.79
15.9
15.94
15.8
15.95
16
16.05
16.01
16.11
15.95
16.08
16.43
16.39
16.43
16.42
16.38
16.25
16.2
16.2
16.2
16.13
16.16
16.32
16.34
16.34
16.58
16.5
16.6
16.47
16.42
16.4
16.05
16.05
16.07
15.79
15.66
15.74
15.59
15.4
15.31
15.27
15.33
15.58
15.4
15.4
15.44
15.52
15.52
15.16
15.37
15.4
15.4
15.58
15.39
15.44
15.32
15.35
15.31
15.37
15.37
15.38
15.38
15.64
15.64
16
15.85
15.95
15.9
15.66
15.66
15.66
15.72
15.55
15.55
15.6
15.65
15.62
15.67
15.67
15.73
15.67
15.66
15.66
15.7
15.75
16.2
16.3
16.25
16.21
16.21
16.23
15.97
15.88
15.74
15.74
15.67
15.71
15.71
15.58
15.7
15.71
15.71
15.71
15.77
15.68
15.77
15.72
15.76
15.7
15.93
16.2
16.1
16.15
16.15
16.18
16.11
16.06
16.09
16.02
15.93
15.93
15.93
16.05
16.05
16.05
16.1
15.9
7/31/05 15.9
FUND SNAPSHOT
------------------------------------
Common Share Price $15.90
------------------------------------
Common Share
Net Asset Value $15.57
------------------------------------
Premium/(Discount) to NAV 2.12%
------------------------------------
Market Yield 5.21%
------------------------------------
Taxable-Equivalent Yield1 7.78%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $33,606
------------------------------------
Average Effective
Maturity on Securities
(Years) 16.12
------------------------------------
Leverage-Adjusted Duration 8.17
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 17.60% 10.40%
------------------------------------
Since
Inception 7.87% 8.66%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 30.5%
------------------------------------
Healthcare 15.9%
------------------------------------
Tax Obligation/Limited 14.5%
------------------------------------
Education and Civic
Organizations 8.0%
------------------------------------
Transportation 6.1%
------------------------------------
U.S. Guaranteed 7.8%
------------------------------------
Water and Sewer 5.3%
------------------------------------
Other 11.9%
------------------------------------
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%. When comparing this fund to 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.
20
Special Shareholder
MEETING REPORT
The Special Shareholder Meeting was held at the Northern Trust Bank, 50 S.
LaSalle St., Chicago, IL on July 26, 2005.
NUM NMP NZW
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred
shares shares shares
voting together voting together voting together
as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
For 10,627,795 7,045,378 2,012,319
Against 194,469 96,769 12,740
Abstain 221,918 149,130 25,306
------------------------------------------------------------------------------------------------------------------------------------
Total 11,044,182 7,291,277 2,050,365
====================================================================================================================================
21
Special Shareholder
MEETING REPORT (continued)
NUO NXI NBJ NVJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT
WAS REACHED AS FOLLOWS:
Common and Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares shares shares shares
voting together voting together voting together voting together
as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
For 8,795,587 4,015,037 2,973,924 2,065,237
Against 65,850 47,225 16,935 6,304
Abstain 142,999 94,672 77,217 41,709
------------------------------------------------------------------------------------------------------------------------------------
Total 9,004,436 4,156,934 3,068,076 2,113,250
====================================================================================================================================
22
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 3
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Michigan Quality Income Municipal Fund,
Inc., Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Michigan
Dividend Advantage Municipal Fund, Nuveen Ohio Quality Income Municipal Fund,
Inc., Nuveen Ohio Dividend Advantage Municipal Fund, Nuveen Ohio Dividend
Advantage Municipal Fund 2 and Nuveen Ohio Dividend Advantage Municipal Fund 3
as of July 31, 2005, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of July 31, 2005, by correspondence with the custodian and
brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan Premium
Income Municipal Fund, Inc., Nuveen Michigan Dividend Advantage Municipal Fund,
Nuveen Ohio Quality Income Municipal Fund, Inc., Nuveen Ohio Dividend Advantage
Municipal Fund, Nuveen Ohio Dividend Advantage Municipal Fund 2 and Nuveen Ohio
Dividend Advantage Municipal Fund 3 at July 31, 2005, and the results of their
operations for the year then ended, changes in their net assets for each of the
two years in the period then ended, and their financial highlights for the
periods indicated therein, in conformity with U.S. generally accepted accounting
principles.
Ernst & Young LLP
Chicago, Illinois
September 14, 2005
23
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of
INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.4% (5.7% OF TOTAL INVESTMENTS)
$ 1,720 Ferris State College, Michigan, General Revenue Bonds, 4/08 at 100.00 AAA $ 1,782,075
Series 1998, 5.000%, 10/01/23 - AMBAC Insured
1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,860,055
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 1,598,385
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 1,049,100
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 1,131,995
1,115 5.000%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 1,186,817
1,170 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,242,177
Wayne State University, Michigan, General Revenue Bonds,
Series 1999:
3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AAA 3,711,775
1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AAA 1,062,790
1,000 Western Michigan University, General Revenue Refunding 11/13 at 100.00 AAA 1,071,110
Bonds, Series 2003, 5.000%, 11/15/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.1% (11.5% OF TOTAL INVESTMENTS)
2,900 Dearborn Hospital Finance Authority, Michigan, Hospital 11/05 at 102.00 AAA 2,980,939
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 1,302,270
Mortgage Hospital Revenue Bonds, Portage Health System
Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured
1,354 Michigan State Hospital Finance Authority, Collateralized Loan, No Opt. Call Baa2 1,362,600
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 1,620,915
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 1,074,480
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 1,854,122
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 3,678,513
500 5.750%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 541,130
2,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 2,430,189
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+ 1,056,360
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 5,341,950
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 505,950
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 492,675
Chelsea Community Hospital, Series 2005,
5.000%, 5/15/37 (WI, settling 8/09/05)
5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 5,785,120
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
2,195 University of Michigan, Medical Service Plan Revenue No Opt. Call AA+ 1,815,902
Bonds, Series 1991, 0.000%, 12/01/10
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.4% (3.7% OF TOTAL INVESTMENTS)
$ 2,675 Michigan Housing Development Authority, FNMA Limited 12/20 at 101.00 AAA $ 2,910,052
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 1,886,796
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 12/05 at 102.00 AAA 3,181,412
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 2,151,525
Revenue Bonds, Series 1999A, 5.300%, 10/01/37 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.6% (0.3% OF TOTAL INVESTMENTS)
1,000 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,037,930
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 1,002,650
Presbyterian Villages of Michigan Obligated Group,
Series 2005, 5.250%, 11/15/25
200 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 BBB+ 203,202
Refunding Bonds, Porter Hills Presbyterian Village,
Series 1998, 5.375%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.0% (0.7% OF TOTAL INVESTMENTS)
1,750 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,793,943
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 38.5% (25.9% OF TOTAL INVESTMENTS)
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 2,652,300
3,200 5.000%, 5/01/29 5/11 at 100.00 AA 3,317,056
1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA 1,054,020
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 1,036,360
Michigan, General Obligation Refunding Bonds, Series 1998,
5.000%, 5/01/26 - AMBAC Insured
1,200 Birmingham, Michigan, General Obligation Bonds, Series 2002, 10/12 at 100.50 AAA 1,284,672
5.000%, 10/01/20
1,320 Bridgeport Spaulding Community School District, Saginaw 5/12 at 100.00 AA 1,463,708
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 2,304,837
Counties, Michigan, General Obligation Bonds, Series 2003,
5.250%, 5/01/20
1,285 Caledonia Community Schools, Kent, Allegan and Barry 5/15 at 100.00 AAA 1,365,981
Counties, Michigan, General Obligation Bonds, Series 2005,
5.000%, 5/01/25 - MBIA Insured
1,850 Chippewa Valley Schools, Macomb County, Michigan, 5/15 at 100.00 AAA 1,969,640
General Obligation Bonds, Series 2005, 5.000%, 5/01/24 -
MBIA Insured
1,195 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 1,291,209
5.250%, 4/01/24 - AMBAC Insured
2,000 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 2,404,560
General 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 1,132,031
Obligation Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured
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 1,249,751
2,100 5.000%, 5/01/17 - AMBAC Insured 11/14 at 100.00 AAA 2,271,969
25
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
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 $ 3,452,844
3,000 0.000%, 12/01/26 No Opt. Call AAA 1,105,380
1,400 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA 1,493,366
Obligation Bonds, Series 2003, 5.000%, 5/01/21
1,065 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,132,031
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 2,109,860
General Obligation Bonds, Series 2002, 5.000%, 5/01/24
1,790 Lansing Building Authority, Michigan, General Obligation 6/13 at 100.00 AAA 1,881,648
Bonds, Series 2003A, 5.000%, 6/01/26 - MBIA Insured
1,785 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,901,400
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 4,380,560
Program, Series 2003A, 5.250%, 5/01/20
4,300 Montcalm County Building Authority, Michigan, Correctional 5/10 at 100.00 AAA 4,586,036
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 3,049,175
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 1,369,870
Obligation Bonds, Series 2002, 5.250%, 5/01/19 -
MBIA Insured
1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,144,220
Wastewater Management System 2 Revenue Bonds,
Series 2002, 5.000%, 7/01/26 - FGIC Insured
1,000 Oakland County Building Authority, Michigan, General 9/11 at 100.00 AAA 1,071,390
Obligation Bonds, Series 2002, 5.125%, 9/01/22
4,200 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 4,905,222
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
1,510 Rockford Public Schools, Kent County, Michigan, General 5/15 at 100.00 AAA 1,601,431
Obligation Bonds, Series 2005, 5.000%, 5/01/27 -
FSA Insured
1,655 Southfield Library Building Authority, Michigan, General 5/15 at 100.00 AAA 1,756,567
Obligation Bonds, Series 2005, 5.000%, 5/01/26 -
MBIA Insured
1,050 Warren Consolidated School District, Macomb and Oakland 11/11 at 100.00 AAA 1,151,955
Counties, Michigan, General Obligation Bonds, Series 2001,
5.375%, 5/01/19 - FSA Insured
5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 5,258,150
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/21 -
MBIA Insured
1,125 Whitehall District Schools, Muskegon County, Michigan, 11/11 at 100.00 AA 1,243,373
General Obligation Bonds, Series 2001, 5.500%, 5/01/17
1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 2,017,526
Tax General Obligation QSBLF Bonds, Series 1996,
5.500%, 5/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 18.0% (12.1% OF TOTAL INVESTMENTS)
350 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- 345,727
Charter School Revenue Bonds, Series 2005,
5.125%, 11/01/35 (WI, settling 8/09/05)
1,800 Wayne County, Dearborn Heights, Michigan, Tax Increment 10/10 at 100.00 AAA 1,893,384
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 1,100,270
Limited Tax General Obligation Bonds, Series 1998,
5.000%, 4/01/16
1,345 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,411,725
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 1,206,128
Fund Revenue Refunding Bonds, Series 2002,
5.250%, 10/01/18
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 65 Michigan Municipal Bond Authority, Local Government Loan 11/05 at 100.00 A $ 65,203
Program Revenue Sharing Bonds, Series 1992D,
6.650%, 5/01/12
1,150 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 1,229,764
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23
1,500 Michigan Municipal Bond Authority, Clean Water Revolving 10/15 at 100.00 AAA 1,614,525
Fund Revenue Bonds, Series 2005, 5.000%, 10/01/22
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 5,429,052
5,000 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 5,308,950
Michigan, Certificates of Participation, Series 2000:
2,000 5.500%, 6/01/19 - AMBAC Insured 6/10 at 100.00 AAA 2,174,220
2,000 5.500%, 6/01/27 - AMBAC Insured 6/10 at 100.00 AAA 2,158,980
3,500 Michigan State Trunk Line, Fund Refunding Bonds, 10/12 at 100.00 AAA 3,811,220
Series 2002, 5.250%, 10/01/21 - FSA Insured
4,100 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 A 4,556,084
Transportation Authority, Series 1996Y, 5.500%, 7/01/36
915 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- 1,100,928
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.6 % (0.4% OF TOTAL INVESTMENTS)
1,000 Capital Region Airport Authority, Michigan, Revenue Refunding 7/12 at 100.00 AAA 1,053,570
Bonds, Series 2002, 5.250%, 7/01/21 (Alternative Minimum
Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 35.8% (24.2% OF TOTAL INVESTMENTS)
Allegan County Public School District, Michigan, General
Obligation Bonds, Series 2000:
1,850 5.600%, 5/01/20 (Pre-refunded to 5/01/10) - FSA Insured 5/10 at 100.00 AAA 2,039,348
1,435 5.750%, 5/01/30 (Pre-refunded to 5/01/10) - FSA Insured 5/10 at 100.00 AAA 1,591,286
2,190 Anchor Bay School District, Macomb and St. Clair Counties, 5/09 at 100.00 AAA 2,409,964
Michigan, General Obligation Bonds, Series 1999I,
6.000%, 5/01/29 (Pre-refunded to 5/01/09) - FGIC Insured
1,000 Charlotte Public School District, Easton County, Michigan, 5/09 at 100.00 AAA 1,074,080
General Obligation Unlimited Tax School Building and
Site Bonds, Series 1999, 5.250%, 5/01/25 (Pre-refunded
to 5/01/09) - FGIC Insured
220 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 234,230
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,000 Clarkston Community Schools, Michigan, General Obligation 5/07 at 100.00 AAA 2,081,460
Bonds, School Bond Loan Fund - QSBLF, Series 1997,
5.250%, 5/01/23 (Pre-refunded to 5/01/07) - MBIA Insured
1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 1,113,990
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 1,004,730
1,730 5.000%, 7/01/22 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,813,611
2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 2,223,000
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 3,846,216
770 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 844,297
1,000 East China School District, St. Clair County, Michigan, General 11/11 at 100.00 AA*** 1,113,100
Obligation Bonds, Series 2001, 5.500%, 5/01/20
(Pre-refunded to 11/01/11)
2,000 East Grand Rapids Public Schools, Kent County, Michigan, 5/09 at 100.00 AAA 2,200,880
Unlimited Tax General Obligation School Building and Site
Bonds, Series 2000, 6.000%, 5/01/29 (Pre-refunded to
5/01/09) - FSA Insured
1,085 Freeland Community School District, Saginaw, Midland and 5/10 at 100.00 AA*** 1,179,449
Bay Counties, Michigan, General Obligation Bonds,
Series 2000, 5.250%, 5/01/19 (Pre-refunded to 5/01/10)
1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA*** 1,669,650
Michigan, General Obligation Bonds, Series 2001,
5.500%, 5/01/17 (Pre-refunded to 11/01/11)
3,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA*** 3,855,390
Spectrum Health, Series 2001A, 5.250%, 1/15/21
(Pre-refunded to 7/15/11)
27
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** (continued)
$ 1,000 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA $ 1,101,120
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 1,122,810
2,500 6.125%, 11/15/26 (Pre-refunded to 11/15/09) 11/09 at 101.00 AAA 2,807,025
3,300 Michigan State Hospital Finance Authority, Hospital Revenue 1/07 at 102.00 N/R*** 3,518,295
Bonds, Presbyterian Villages of Michigan Obligated Group,
Series 1997, 6.375%, 1/01/25 (Pre-refunded to 1/01/07)
3,460 Michigan State Hospital Finance Authority, Hospital Revenue 5/08 at 101.00 AAA 3,596,878
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*** 282,530
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 1,085,200
5.000%, 11/01/25 (Pre-refunded to 11/01/11) - FSA Insured
1,100 Michigan Strategic Fund, Limited Obligation Revenue Refunding 7/08 at 101.00 BBB+*** 1,181,180
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 3,188,116
Michigan, General Obligation Bonds, Series 2000A,
5.750%, 5/01/24 (Pre-refunded to 5/01/10) - FGIC Insured
1,625 Northville Public Schools, Wayne County, Michigan, General 11/11 at 100.00 AA*** 1,797,445
Obligation Bonds, Series 2001, 5.375%, 5/01/18
(Pre-refunded to 11/01/11)
4,000 Pinckney Community Schools, Livingston and Washtenaw 5/07 at 100.00 AAA 4,179,920
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*** 1,273,973
Revenue Bonds, Series 2000B, 6.000%, 7/01/39
(Pre-refunded to 7/01/10)
85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB-*** 106,695
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,108,910
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 2,292,465
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 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,699,150
General Obligation Bonds, Series 2000, 5.125%, 3/01/17
(Pre-refunded to 3/01/10) - AMBAC Insured
1,980 Washtenaw County Building Authority, Michigan, Limited 9/07 at 100.00 AAA 2,080,485
Tax General Obligation Bonds, Series 1999, 5.400%, 9/01/17
(Pre-refunded to 9/01/07) - FGIC Insured
2,600 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 2,900,222
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% (8.2% OF TOTAL INVESTMENTS)
3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 3,213,960
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 3,542,243
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,630 Michigan Strategic Fund, Limited Obligation Revenue Refunding No Opt. Call AAA 4,770,110
Bonds, Detroit Edison Company, Series 1991BB,
7.000%, 5/01/21 - AMBAC Insured
2,000 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Aaa 2,107,020
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 4,200,040
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 3,192,000
Refunding 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 1,061,780
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 400 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA $ 431,520
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.3% (6.9% OF TOTAL INVESTMENTS)
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,766,010
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 2,159,400
Revenue 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 4,263,884
3,000 5.000%, 7/01/25 - MBIA Insured 7/13 at 100.00 AAA 3,175,560
730 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 782,443
Bonds, Series 2001A, 5.250%, 7/01/33 - FGIC Insured
4,210 Michigan Municipal Bond Authority, Clean Water Revolving 10/14 at 100.00 AAA 4,548,821
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/19
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 1,139,965
1,160 5.625%, 11/01/30 - MBIA Insured 11/10 at 100.00 Aaa 1,271,495
------------------------------------------------------------------------------------------------------------------------------------
$ 263,609 Total Long-Term Investments (cost $255,798,715) - 148.4% 275,820,083
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 4,079,557
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.6)% (94,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 185,899,640
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
29
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of
INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.0% (4.8% 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 $ 1,048,480
1,450 5.000%, 6/01/33 - FGIC Insured 6/13 at 100.00 AAA 1,515,381
2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 2,098,200
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 (Alternative
Minimum Tax) - AMBAC Insured
3,500 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 3,719,765
Series 1999, 5.125%, 11/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.6% (10.7% OF TOTAL INVESTMENTS)
2,050 Dearborn Hospital Finance Authority, Michigan, Hospital 11/05 at 102.00 AAA 2,107,216
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 2,319,834
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 8/05 at 100.00 BB- 2,000,400
500 6.500%, 8/15/18 8/05 at 100.00 BB- 500,125
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,620,915
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 4,329,040
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 A+ 528,720
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 4,594,077
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
325 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 328,868
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
425 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 425,327
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/25
(WI, settling 8/09/05)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.5% (4.5% OF TOTAL INVESTMENTS)
950 Michigan Housing Development Authority, GNMA Collateralized 4/12 at 102.00 Aaa 991,477
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 526,560
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 10/05 at 102.00 AAA 2,450,400
Revenue Bonds, Walled Lake Villa Project, Series 1993,
6.000%, 4/15/18 - FSA Insured
1,500 Michigan Housing Development Authority, Limited Obligation 10/05 at 101.00 AAA 1,519,740
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:
845 6.600%, 6/01/13 12/05 at 100.00 AAA 846,310
1,500 6.600%, 6/01/22 12/05 at 100.00 AAA 1,532,565
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6% (0.4% OF TOTAL INVESTMENTS)
665 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 666,762
Presbyterian Villages of Michigan Obligated Group,
Series 2005, 5.250%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,050 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,076,366
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 51.8% (35.8% OF TOTAL INVESTMENTS)
$ 2,500 Anchor Bay School District, Macomb and St. Clair Counties, 5/11 at 100.00 AA $ 2,652,300
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 1,573,368
Michigan, General Obligation Bonds, Series 2003,
5.000%, 5/01/21
2,250 Caledonia Community Schools, Kent, Allegan and Barry 5/15 at 100.00 AAA 2,388,083
Counties, Michigan, General Obligation Bonds, Series 2005,
5.000%, 5/01/26 - MBIA Insured
1,375 Chippewa Valley Schools, Macomb County, Michigan, General 5/11 at 100.00 AA 1,428,859
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 2,879,559
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 2,199,471
750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AAA 912,667
2,500 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 2,651,775
General Obligation Bonds, Series 2003B, 5.000%, 5/01/23 -
FGIC Insured
7,000 Detroit-Wayne County Stadium Authority, Michigan, Limited 2/07 at 102.00 AAA 7,331,380
Tax General Obligation Building Authority Stadium Bonds,
Series 1997, 5.250%, 2/01/27 - FGIC Insured
3,815 East Lansing Building Authority, Ingham and Clinton Counties, 4/11 at 100.00 AA 4,116,767
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 1,431,904
Kalamazoo, Michigan, General Obligation Bonds,
Series 2004, 5.000%, 5/01/23 - FSA Insured
2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA 2,126,880
Obligation Bonds, Series 2003, 5.000%, 5/01/22
1,000 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA 1,062,940
Obligation Bonds, Series 2004, 5.000%, 5/01/22
1,185 Linden Community School District, Genesse County, Michigan, 11/13 at 100.00 AA 1,264,028
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 1,065,210
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 1,095,140
2,000 5.250%, 5/01/21 5/13 at 100.00 AA 2,187,480
1,000 Otsego Public Schools District, Allegan and Kalamazoo 5/14 at 100.00 AAA 1,057,670
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 1,163,437
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 2,629,156
General Obligation Bonds, Series 2002, 5.000%, 5/01/28
1,000 Rockford Public Schools, Kent County, Michigan, General 5/15 at 100.00 AAA 1,060,550
Obligation Bonds, Series 2005, 5.000%, 5/01/27 -
FSA Insured
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 2,579,008
1,575 5.250%, 5/01/22 - FGIC Insured 11/12 at 100.00 AAA 1,714,892
1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,555,943
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 3,091,322
Counties, Michigan, General Obligation Refunding Bonds,
Series 2003, 5.250%, 5/01/20
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 1,662,675
4,270 5.000%, 12/01/30 - MBIA Insured 12/11 at 101.00 AAA 4,460,271
31
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,950 West Bloomfield School District, Oakland County, Michigan, 5/14 at 100.00 AAA $ 3,135,673
General Obligation Bonds, Series 2004, 5.000%, 5/01/22 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.8% (14.4% OF TOTAL INVESTMENTS)
220 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- 217,314
Charter School Revenue Bonds, Series 2005,
5.125%, 11/01/35 (WI, settling 8/09/05)
2,800 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 2,994,208
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23
1,000 Michigan Municipal Bond Authority, Clean Water Revolving 10/15 at 100.00 AAA 1,076,350
Fund Revenue Bonds, Series 2005, 5.000%, 10/01/22
1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/10 at 100.00 AA- 1,618,005
Program, Series 2000I, 5.375%, 10/15/20
Michigan State Building Authority, Revenue Bonds, Facilities
Program, Series 2001I:
2,570 5.500%, 10/15/19 10/11 at 100.00 AA- 2,835,712
6,500 5.000%, 10/15/24 10/11 at 100.00 AA- 6,827,730
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 5,322,600
2,480 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 2,633,239
1,500 Michigan, Comprehensive Transportation Revenue Refunding 11/11 at 100.00 AAA 1,604,805
Bonds, Series 2001A, 5.000%, 11/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/05 at 100.00 CCC 809,430
American Airlines Inc., Series 1993A, 6.300%, 6/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 18.7% (12.9% OF TOTAL INVESTMENTS)
1,000 Central Montcalm Public Schools, Montcalm and Ionia 5/09 at 100.00 AAA 1,091,650
Counties, Michigan, General Obligation Unlimited Tax School
Building and Site Bonds, Series 1999, 5.750%, 5/01/24
(Pre-refunded to 5/01/09) - MBIA Insured
310 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 330,051
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
500 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 558,140
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 5.500%, 5/01/21 (Pre-refunded to 5/01/12) -
FSA Insured
2,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,227,980
Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) -
FGIC Insured
1,385 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 1,518,639
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 4,446,000
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to
1/01/10) - FGIC Insured
1,000 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,101,120
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 11/05 at 100.00 AAA 3,202,500
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 2,807,025
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*** 84,759
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,240 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 1,368,266
Michigan, General Obligation Bonds, Series 2000A,
5.625%, 5/01/16 (Pre-refunded to 5/01/10) - FGIC Insured
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,108,910
Counties, Michigan, General Obligation Bonds, Series 2000I,
5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC Insured
1,500 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 1,637,475
Unlimited Tax General Obligation School Building and
Site Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded
to 5/01/09) - FGIC Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 1,000 Saginaw Valley State University, Michigan, General Revenue 7/09 at 100.00 Aaa $ 1,090,430
Bonds, Series 1999, 5.625%, 7/01/29 (Pre-refunded to
7/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.6% (9.4% OF TOTAL INVESTMENTS)
1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,071,320
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 1,015,992
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,000 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Aaa 3,160,530
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 5,250,050
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 3,192,000
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 1,061,780
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 1,609,515
Series 2002, 5.375%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.8% (6.1% OF TOTAL INVESTMENTS)
2,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 AAA 2,114,520
Bonds, Series 2005A, 5.000%, 7/01/30 - MBIA Insured
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue No Opt. Call AAA 1,766,010
Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
4,960 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 5,355,309
Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured
1,315 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/11 at 100.00 AAA 1,409,470
Series 2001A, 5.250%, 7/01/33 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 163,635 Total Long-Term Investments (cost $164,461,546) - 145.0% 174,743,770
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 1,730,969
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.5)% (56,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 120,474,739
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
33
Nuveen Michigan Dividend Advantage Municipal Fund (NZW)
Portfolio of
INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.2% (4.8% OF TOTAL INVESTMENTS)
$ 1,150 Michigan Higher Education Facilities Authority, Limited Obligation 9/11 at 100.00 Aaa $ 1,197,369
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 1,081,437
Series 2004A, 5.000%, 10/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.9% (10.6% OF TOTAL INVESTMENTS)
500 Allegan Hospital Finance Authority, Michigan, Revenue Bonds, 11/09 at 101.00 N/R 532,620
Allegan General Hospital, Series 1999, 7.000%, 11/15/21
700 Michigan State Hospital Finance Authority, Hospital Revenue 1/06 at 102.00 Ba3 707,329
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 510,170
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 A+ 793,080
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31
200 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 202,380
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
425 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 420,856
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30
(WI, settling 8/09/05)
1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 1,893,312
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.6% (3.7% OF TOTAL INVESTMENTS)
1,700 Michigan Housing Development Authority, GNMA 8/12 at 102.00 Aaa 1,782,943
Collateralized Limited Obligation Multifamily Housing
Revenue Bonds, Cranbrook Apartments, Series 2001A,
5.400%, 2/20/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.1% (2.7% OF TOTAL INVESTMENTS)
1,250 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,297,413
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5% (1.0% OF TOTAL INVESTMENTS)
500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB+ 490,905
Republic Services Inc., Series 2001, 4.250%, 8/01/31
(Alternative Minimum Tax) (Mandatory put 4/01/14)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.1% (0.7% OF TOTAL INVESTMENTS)
335 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 335,888
Presbyterian Villages of Michigan Obligated Group,
Series 2005, 5.250%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.6% (1.1% OF TOTAL INVESTMENTS)
500 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 512,555
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 41.9% (28.0% OF TOTAL INVESTMENTS)
500 Fitzgerald Public School District, Macomb County, Michigan, 11/14 at 100.00 AAA 543,370
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 1,039,170
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 2,376,308
General Obligation Bonds, Series 2001, 5.375%, 5/01/26 -
FSA Insured
1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA 1,562,385
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/27
34
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 $ 531,470
Obligation School Building and Site Bonds, Series 2004,
5.000%, 5/01/22 - FSA Insured
1,150 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,196,230
Wastewater Management System 2 Revenue Bonds,
Series 2002, 5.000%, 7/01/26 - FGIC Insured
1,000 Oxford Area Community Schools, Oakland and Lapeer 11/11 at 100.00 AA 1,105,220
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 534,310
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 529,160
800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 841,032
1,650 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 1,723,524
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/30 -
MBIA Insured
1,300 Willow Run Community Schools, Washtenaw County, 5/11 at 100.00 AA 1,379,196
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.8% (9.9% OF TOTAL INVESTMENTS)
115 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- 113,596
Charter School Revenue Bonds, Series 2005,
5.125%, 11/01/35 (WI, settling 8/09/05)
1,100 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,154,571
Limited Tax General Obligation Bonds, Series 2001,
5.125%, 10/01/26 - MBIA Insured
1,000 Michigan Municipal Bond Authority, Clean Water Revolving 10/15 at 100.00 AAA 1,076,350
Fund Revenue Bonds, Series 2005, 5.000%, 10/01/22
1,205 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 AA- 1,265,756
Program, Series 2001I, 5.000%, 10/15/24
915 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- 1,100,928
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 29.0% (19.3% OF TOTAL INVESTMENTS)
1,000 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 1,118,270
Obligation Bonds, Series 2002A, 5.375%, 5/01/24
(Pre-refunded to 5/01/13) - FGIC Insured
1,000 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 1,116,280
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 5.500%, 5/01/21 (Pre-refunded to 5/01/12) -
FSA Insured
515 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 564,692
Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded to
7/01/11) - FGIC Insured
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA*** 1,101,540
Spectrum Health, Series 2001A, 5.250%, 1/15/21
(Pre-refunded to 7/15/11)
1,000 Michigan Municipal Bond Authority, Drinking Water Revolving 10/10 at 101.00 AAA 1,131,180
Fund Revenue Bonds, Series 2000, 5.875%, 10/01/17
(Pre-refunded to 10/01/10)
2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,170,400
5.000%, 11/01/25 (Pre-refunded to 11/01/11) - FSA Insured
235 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 Aaa 257,562
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 549,965
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB-*** 106,695
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
1,000 Rochester Community School District, Oakland and Macomb 11/11 at 100.00 AA*** 1,100,810
Counties, Michigan, General Obligation Bonds, Series 2001II,
5.500%, 5/01/22 (Pre-refunded to 11/01/11)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.3% (10.2% OF TOTAL INVESTMENTS)
1,115 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,189,872
Electric Utility System Revenue Bonds, Series 2003A,
5.000%, 7/01/21 - FSA Insured
35
Nuveen Michigan Dividend Advantage Municipal Fund (NZW) (continued)
Portfolio of INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 1,235 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA $ 1,334,702
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 2,332,262
Pollution Control Revenue Refunding Bonds, Fixed Rate
Conversion, Detroit Edison Company, Series 1999C,
5.650%, 9/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.0% (8.0% OF TOTAL INVESTMENTS)
1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,177,340
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 1,079,700
Revenue 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 1,037,020
485 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 519,842
------------------------------------------------------------------------------------------------------------------------------------
$ 44,640 Total Long-Term Investments (cost $44,948,958) - 150.0% 47,718,965
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 101,697
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 31,820,662
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT JULY 31, 2005:
UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
--------------------------------------------------------------------------------------------------------------------
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 $(22,132)
Agreement with JPMorgan dated June 21, 2005, to pay
semi-annually the notional amount multiplied by 4.833%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 700,000 2/9/06 2/9/36 16,910
--------------------------------------------------------------------------------------------------------------------
$ (5,222)
====================================================================================================================
(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 (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
36
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of
INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.8% (1.2% OF TOTAL INVESTMENTS)
$ 2,730 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,822,274
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.2% (7.0% OF TOTAL INVESTMENTS)
1,200 Ohio Higher Educational Facilities Commission, Revenue Bonds, 9/06 at 101.00 Ba1 1,225,500
University of Findlay, Series 1996, 6.125%, 9/01/16
1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa1 1,077,220
Wittenberg University, Series 2001, 5.500%, 12/01/15
1,415 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/14 at 100.00 AA 1,512,182
Denison University, Series 2004, 5.000%, 11/01/21
1,320 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/14 at 100.00 AAA 1,401,338
University of Dayton, Series 2004, 5.000%, 12/01/25 -
AMBAC Insured
1,750 Ohio Higher Education Facilities Commission, General Revenue 10/13 at 100.00 AA 1,861,773
Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24
1,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa1 1,012,020
Wittenburg University, Series 2005, 5.000%, 12/01/29
1,200 Ohio State University, General Receipts Bonds, Series 2002A, 12/12 at 100.00 AA 1,263,216
5.125%, 12/01/31
3,000 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 3,288,090
5.250%, 6/01/22
1,510 University of Akron, Ohio, General Receipts Bonds, Series 2003A, 1/13 at 100.00 AAA 1,609,086
5.000%, 1/01/21 - AMBAC Insured
850 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 904,018
Series 2003C, 5.000%, 6/01/22 - FGIC Insured
1,200 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,288,080
Series 2004D, 5.000%, 6/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.1% (17.1% OF TOTAL INVESTMENTS)
2,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 2,043,680
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 1,056,320
Improvement Bonds, MetroHealth System, Series 1997,
5.625%, 2/15/17 - MBIA Insured
2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 Aa3 2,214,120
Clinic Health System, Series 2003A, 6.000%, 1/01/32
4,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 4,737,555
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 1,027,750
1,500 5.875%, 11/01/25 11/06 at 101.00 Aa2 1,541,280
2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital 5/14 at 100.00 AAA 2,697,677
Medical Center, Series 2004J, 5.250%, 5/15/16 - FGIC Insured
2,405 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,489,247
and Improvement Bonds, Upper Valley Medical Center,
Series 1996A, 6.250%, 5/15/16
1,500 Montgomery County, Ohio, Hospital Facilities Revenue 4/06 at 102.00 AAA 1,555,035
Refunding and Improvement Bonds, Kettering Medical Center,
Series 1996, 5.625%, 4/01/16 - MBIA Insured
3,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A2 3,330,180
Kettering Medical Center, Series 1999, 6.750%, 4/01/18
37
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
Montgomery County, Ohio, Revenue Bonds, Catholic Health
Initiatives, Series 2004A:
$ 2,500 5.000%, 5/01/30 5/14 at 100.00 AA $ 2,600,475
2,500 5.000%, 5/01/32 No Opt. Call AA 2,599,925
6,000 Parma Community General Hospital Association, Ohio, Hospital 11/08 at 101.00 A- 6,170,580
Revenue Refunding and Improvement Bonds, Series 1998,
5.375%, 11/01/29
2,500 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 2,720,450
Bonds, MedCentral Health System Obligated Group,
Series 2000B, 6.375%, 11/15/30
1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding 10/10 at 100.00 A3 1,643,955
and Improvement Bonds, Trinity Health System, Series 2000,
6.375%, 10/01/20
1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 1,881,485
Union Hospital Project, Series 2001, 5.750%, 10/01/21 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.8% (4.6% OF TOTAL INVESTMENTS)
1,385 Clermont County, Ohio, GNMA Collateralized Mortgage Revenue 8/05 at 101.00 Aaa 1,400,083
Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30
975 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/10 at 102.00 Aaa 1,005,313
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 Multifamily 6/08 at 105.00 Aaa 1,545,151
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 2,596,547
2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,350,012
1,000 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/12 at 102.00 Aaa 1,047,110
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 1/06 at 102.00 Aa 1,001,686
Mortgage Revenue Bonds, Hamilton Creek Apartments
Project, Series 1994A, 5.550%, 7/01/24 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.6% (3.2% OF TOTAL INVESTMENTS)
1,500 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 1,555,365
Securities Program Residential Mortgage Revenue Bonds,
Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax)
2,645 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 2,724,112
Securities Program Residential Mortgage Revenue Bonds,
Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum
Tax) - FSA Insured
2,605 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/08 at 102.00 Aaa 2,681,691
Securities Program Residential Mortgage Revenue Bonds,
Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax)
355 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 368,295
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.3% (0.2% OF TOTAL INVESTMENTS)
530 Cleveland-Cuyahoga County Port Authority, Ohio, Bond Fund 11/14 at 100.00 N/R 539,673
Program Development Revenue Bonds, Myers University,
Series 2004E, 5.600%, 5/15/25
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6% (0.5% OF TOTAL INVESTMENTS)
1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 1,042,410
Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 46.4% (31.7% OF TOTAL INVESTMENTS)
1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102.00 Aaa 1,112,160
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 1,054,770
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25
270 Berea City School District, Ohio, General Obligation Unlimited 12/05 at 100.00 AAA 273,780
Tax School Improvement Bonds, Series 1993,
7.500%, 12/15/06 - AMBAC Insured
38
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 $ 2,229,123
2,140 5.250%, 12/01/22 12/12 at 101.00 Aa3 2,345,440
Butler County, Ohio, General Obligation Bonds, Series 2002:
1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aaa 1,436,944
1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aaa 1,277,832
1,560 Canal Winchester Local School District, Franklin and Fairfield 12/11 at 100.00 Aaa 1,625,645
Counties, Ohio, School Facilities Construction and Improvement
Bonds, Series 2001B, 5.000%, 12/01/28 - FGIC Insured
1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aaa 1,588,995
General Obligation Bonds, Series 2005, 5.000%, 12/01/30 -
FSA Insured
1,000 Central Ohio Solid Waste Authority, General Obligation Bonds, 6/14 at 100.00 AAA 1,085,260
Series 2004A, 5.000%, 12/01/15 - AMBAC Insured
1,000 Cincinnati City School District, Hamilton County, Ohio, 12/11 at 100.00 AAA 1,099,450
General Obligation Bonds, Series 2001, 5.375%, 12/01/15 -
MBIA Insured
2,600 Cincinnati City School District, Hamilton County, Ohio, General 12/12 at 100.00 AAA 2,835,872
Obligation Bonds, Series 2002, 5.250%, 6/01/21 -
FSA Insured
1,000 Cleveland Municipal School District, Cuyahoga County, Ohio, 6/14 at 100.00 AAA 1,064,210
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+ 1,288,332
Series 2004, 5.000%, 12/01/21
1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,095,750
5.250%, 12/01/19 - AMBAC Insured
1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aaa 1,060,920
Bonds, Series 2000A, 5.000%, 12/01/20
1,000 Dublin City School District, Franklin, Delaware and Union 12/13 at 100.00 AAA 1,064,860
Counties, Ohio, General Obligation Bonds, Series 2003,
5.000%, 12/01/22 - FSA Insured
1,195 Fairview Park City School District, Cuyahoga County, Ohio, 6/15 at 100.00 Aaa 1,275,806
General Obligation Bonds, Series 2005, 5.000%, 12/01/24 -
MBIA Insured
1,300 Franklin County, Ohio, Limited Tax General Obligation Refunding 12/08 at 102.00 AAA 1,407,432
Bonds, Series 1993, 5.375%, 12/01/20
2,000 Garfield Heights City School District, Cuyahoga County, Ohio, 12/11 at 100.00 Aaa 2,090,320
General Obligation School Improvement Bonds, Series 2001,
5.000%, 12/15/26 - MBIA Insured
1,160 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,235,168
Obligation Bonds, Series 2003, 5.000%, 12/01/22 -
MBIA Insured
2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aaa 2,097,760
Tax General Obligation School Improvement and Refunding
Bonds, Series 2001, 5.125%, 12/01/26 - FGIC Insured
1,000 London City School District, Ohio, General Obligation School 12/11 at 100.00 Aaa 1,040,390
Facilities Construction and Improvement Bonds, Series 2001,
5.000%, 12/01/29 - FGIC Insured
2,000 Louisville City School District, Ohio, General Obligation Bonds, 12/11 at 100.00 Aaa 2,080,780
Series 2001, 5.000%, 12/01/29 - FGIC Insured
1,515 Massillon City School District, Ohio, General Obligation Bonds, 12/12 at 100.00 Aaa 1,652,441
Series 2003, 5.250%, 12/01/21 - MBIA Insured
760 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 805,045
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 1,406,714
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+ 3,180,690
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 1,433,745
3,380 5.250%, 12/01/24 - FGIC Insured 6/14 at 100.00 AAA 3,679,975
1,510 Painesville City School District, Ohio, General Obligation 12/14 at 100.00 AAA 1,615,081
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 1,255,011
Obligation Bonds, Series 2001, 5.250%, 12/01/25 -
AMBAC Insured
39
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS July 31, 2005
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 $ 2,834,458
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 1,221,770
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 315,246
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 1,507,438
Series 2001, 5.000%, 12/01/27 - FGIC Insured
1,000 Princeton City School District, Butler County, Ohio, General 12/13 at 100.00 AAA 1,051,070
Obligation Bonds, Series 2003, 5.000%, 12/01/30 -
MBIA Insured
2,830 Springfield Township, Hamilton County, Ohio, Various Purpose 12/11 at 100.00 Aa3 3,005,828
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 2,128,980
5.000%, 12/01/21 - FGIC Insured
70 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 74,066
Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21
2,000 Sugarcreek Local School District, Athens County, Ohio, General 12/13 at 100.00 Aaa 2,183,080
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 2,695,728
1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 1,247,805
1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,054,660
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 2,080,400
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 1,082,970
Improvement and Refunding Bonds, Series 1997,
5.550%, 12/01/17
2,155 Youngstown City School District, Mahoning County, Ohio, 12/14 at 100.00 AAA 2,291,218
General Obligation Bonds, Series 2005, 5.000%, 12/01/25 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.5% (7.2% OF TOTAL INVESTMENTS)
1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 1,456,052
Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured
3,000 Franklin County, Ohio, Excise Tax and Lease Revenue 12/15 at 100.00 AAA 3,185,220
Anticipation Bonds, Convention Facilities Authority,
Series 2005, 5.000%, 12/01/27 - AMBAC Insured
1,085 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 1,163,804
First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 -
FGIC Insured
1,000 Hudson City School District, Ohio, Certificates of Participation, 6/14 at 100.00 Aaa 1,056,620
Series 2004, 5.000%, 6/01/26 - MBIA 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 1,108,940
1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,108,310
1,000 Ohio, State Appropriation Lease Bonds, Mental Health Capital 6/13 at 100.00 AA 1,084,030
Facilities, Series 2003B-II, 5.000%, 6/01/16
2,645 Ohio State Building Authority, State Facilities Bonds, Adult 4/14 at 100.00 AAA 2,920,821
Correctional Building Fund Project, Series 2004A,
5.250%, 4/01/15 - MBIA Insured
800 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 852,032
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
2,500 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 2,662,600
Adult Correctional Building Fund Project, Series 2005A,
5.000%, 4/01/25 - FSA Insured
250 Ohio Department of Transportation, Certificates of 10/05 at 100.00 AA 250,358
Participation, Rickenbacker International Airport Improvements,
Series 1996, 6.125%, 4/15/15 (Alternative Minimum Tax)
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.8% (5.3% OF TOTAL INVESTMENTS)
$ 1,780 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101.00 AAA $ 1,911,738
5.250%, 1/01/16 - FSA Insured
3,430 Cleveland, Ohio, Parking Facilities Revenue Refunding Bonds, 9/06 at 102.00 AAA 3,587,780
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 3,130,440
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 1,600,890
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 2,307,520
5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 16.1% (11.1% OF TOTAL INVESTMENTS)
2,025 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 2,155,977
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 443,633
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 1,295,232
Project, Series 1999, 4.875%, 12/01/24 (Pre-refunded to
6/01/09) - AMBAC Insured
1,415 Franklin County, Ohio, First Mortgage Revenue, OCLC Inc. 12/05 at 100.00 AAA 1,526,799
Project, Series 1979, 7.500%, 6/01/09
2,110 Hamilton County, Ohio, Sewer System Revenue and 6/10 at 101.00 AAA 2,358,853
Improvement Bonds, Metropolitan Sewer District of Greater
Cincinnati, Series 2000A, 5.750%, 12/01/25 (Pre-refunded
to 6/01/10) - MBIA Insured
1,000 Hilliard School District, Ohio, General Obligation School 12/10 at 101.00 AAA 1,126,590
Improvement Bonds, Series 2000, 5.750%, 12/01/24
(Pre-refunded to 12/01/10) - FGIC Insured
2,100 Lakota Local School District, Butler County, Ohio, Unlimited 12/05 at 100.00 AAA 2,125,599
Tax General Obligation School Improvement Bonds,
Series 1994, 6.250%, 12/01/14 (Pre-refunded to 12/01/05) -
AMBAC Insured
2,500 Marion County, Ohio, Hospital Revenue Refunding and 5/06 at 102.00 BBB+*** 2,616,675
Improvement Bonds, The Community Hospital, Series 1996,
6.375%, 5/15/11 (Pre-refunded to 5/15/06)
4,315 Ohio Capital Corporation for Housing, FHA-Insured 2/09 at 102.00 N/R*** 4,777,870
Section 8 Assisted Mortgage Loan Revenue Refunding
Bonds, Series 1999G, 5.950%, 2/01/24 (Pre-refunded
to 2/01/09)
1,220 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 1,384,017
Ohio, General Obligation Bonds, Series 2000,
6.000%, 12/01/20 (Pre-refunded to 6/01/11) - FGIC Insured
1,000 Upper Arlington City School District, Ohio, General 12/06 at 101.00 AAA 1,042,310
Obligation Improvement Bonds, Series 1996,
5.250%, 12/01/22 (Pre-refunded to 12/01/06) -
MBIA Insured
2,000 Wayne Local School District, Warren County, Ohio, Unlimited 12/06 at 101.00 AAA 2,107,820
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, Ohio, 12/05 at 100.00 AAA 3,034,050
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% (4.8% OF TOTAL INVESTMENTS)
4,000 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 Aaa 4,236,280
System Improvement Revenue Bonds, Series 2002,
5.000%, 2/15/22 - MBIA Insured
2,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 2,129,360
Interest Certificates, Belleville Hydroelectric Project -
Joint Venture 5, Series 2004, 5.000%, 2/15/20 -
AMBAC Insured
3,000 Ohio Air Quality Development Authority, Revenue Bonds, 4/07 at 102.00 AAA 3,159,870
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 1,820,124
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.9% (6.1% OF TOTAL INVESTMENTS)
Cincinnati, Ohio, Water System Revenue Bonds, Series 2001:
1,000 5.500%, 12/01/17 6/11 at 100.00 AA+ 1,100,030
3,510 5.000%, 12/01/18 6/11 at 100.00 AA+ 3,761,772
3,000 5.000%, 12/01/19 6/11 at 100.00 AA+ 3,210,300
1,000 5.000%, 12/01/20 6/11 at 100.00 AA+ 1,061,720
2,000 Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 2,121,500
Series 2003, 5.000%, 12/01/22
41
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding No Opt. Call AAA $ 1,158,200
and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 -
MBIA Insured
40 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding 1/06 at 102.00 AAA 41,236
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 603,977
Improvement Bonds, Series 1998I, 5.000%, 1/01/28 -
FSA Insured
1,220 Hamilton, Ohio, Wastewater System Revenue Bonds, 10/15 at 100.00 Aaa 1,343,669
Series 2005, 5.250%, 10/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 220,895 Total Long-Term Investments (cost $222,817,235) - 146.1% 235,132,995
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 2,848,506
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.9)% (77,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 160,981,501
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
42
Nuveen Ohio Dividend Advantage Municipal Fund (NXI)
Portfolio of
INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7% (1.2% OF TOTAL INVESTMENTS)
$ 1,090 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,126,842
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.1% (13.2% OF TOTAL INVESTMENTS)
1,165 Cleveland-Cuyahoga County Port Authority, Ohio, Lease 8/15 at 100.00 AAA 1,234,632
Revenue Bonds, Euclid Avenue Housing Corporation - Fenn
Tower Project, Series 2005, 5.000%, 8/01/23 - AMBAC Insured
1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,098,220
Bonds, University of Dayton, Series 2000, 5.500%, 12/01/25 -
AMBAC Insured
2,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/11 at 101.00 AA 2,130,000
Denison University, Series 2001, 5.200%, 11/01/26
2,650 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 2,759,154
Ohio Northern University, Series 2002, 5.000%, 5/01/22
500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa1 510,495
Wittenburg University, Series 2005, 5.000%, 12/01/24
1,760 Ohio University at Athens, Subordinate Lien General Receipts 6/14 at 100.00 AAA 1,883,781
Bonds, Series 2004, 5.000%, 12/01/20 - MBIA Insured
2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 AA- 2,955,359
Series 2002F, 5.375%, 6/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.5% (12.1% OF TOTAL INVESTMENTS)
1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 Aa3 1,217,766
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 2,097,556
Healthcare Obligated Group, Series 1999, 5.375%, 11/15/29 -
AMBAC Insured
1,600 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 1,654,224
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 1,040,190
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- 2,345,783
2,000 5.375%, 11/01/29 11/08 at 101.00 A- 2,056,860
1,000 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 1,088,180
Bonds, MedCentral Health System Obligated Group,
Series 2000B, 6.375%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.6% (3.2% OF TOTAL INVESTMENTS)
2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue 4/11 at 102.00 Aa2 3,025,846
Bonds, Asbury Woods Project, Series 2001A, 5.450%, 4/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9% (2.7% OF TOTAL INVESTMENTS)
650 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 667,115
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
1,325 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,355,051
Securities Program Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
390 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 401,337
Securities Program Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
145 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 150,430
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
43
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
$ 1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 $ 1,157,710
Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.0% (2.8% OF TOTAL INVESTMENTS)
1,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/11 at 101.00 BBB 1,120,410
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 1,541,060
Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 44.3% (30.7% OF TOTAL INVESTMENTS)
1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,054,770
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 1,051,410
Capital Facilities Improvement, Series 2001, 5.125%, 12/01/26
1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aaa 1,588,995
General Obligation Bonds, Series 2005, 5.000%, 12/01/30 -
FSA Insured
1,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,133,220
Obligation Bonds, Series 2004, 5.500%, 12/01/15 -
FSA Insured
500 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 536,805
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 970,218
935 5.500%, 12/01/23 - MBIA Insured 6/11 at 100.00 Aaa 1,030,856
1,000 Lakewood City School District, Cuyahoga County, Ohio, 12/14 at 100.00 AAA 1,110,970
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 2,097,760
Tax General Obligation School Improvement and Refunding
Bonds, Series 2001, 5.125%, 12/01/26 - FGIC Insured
1,000 Middletown City School District, Butler County, Ohio, 12/13 at 100.00 Aaa 1,059,270
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 1,094,390
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+ 2,117,200
Bonds, Series 2001A, 5.000%, 2/01/20
1,900 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 2,071,570
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 1,995,447
Obligation Bonds, Series 2001, 5.250%, 12/01/25 - FGIC Insured
1,275 Sycamore Community School District, Hamilton County, Ohio, 12/09 at 101.00 AAA 1,348,427
Unlimited Tax General Obligation School Improvement Bonds,
Series 1999, 5.000%, 12/01/23 - MBIA Insured
2,415 Troy City School District, Miami County, Ohio, General 12/14 at 100.00 Aaa 2,556,157
Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FSA Insured
1,485 West Chester Township, Butler County, Ohio, Various Purpose 11/11 at 101.00 Aaa 1,654,899
Limited Tax General Obligation Refunding Bonds, Series 2001,
5.500%, 12/01/17 - AMBAC Insured
1,500 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 1,560,300
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 - MBIA Insured
2,965 Franklin County, Worthington, Ohio, Various Purpose Unlimited 12/11 at 100.00 AA+ 3,236,179
Tax General Obligation Bonds, Series 2001, 5.375%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.9% (11.7% OF TOTAL INVESTMENTS)
2,000 Franklin County, Ohio, Excise Tax and Lease Revenue 12/15 at 100.00 AAA 2,123,480
Anticipation Bonds, Convention Facilities Authority,
Series 2005, 5.000%, 12/01/27 - AMBAC Insured
1,415 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 1,505,857
First Lien Revenue Bonds, Series 2004,
5.000%, 12/01/21 - FGIC Insured
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 345 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA $ 367,439
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
1,000 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 1,068,330
Adult Correctional Building Fund Project, Series 2005A,
5.000%, 4/01/23 - FSA Insured
4,000 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 4,469,960
6.000%, 8/01/16 - FSA Insured
1,400 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 1,586,676
Loan Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.3% (2.3% OF TOTAL INVESTMENTS)
2,000 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA 2,177,880
5.500%, 2/15/26
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 5.1% (3.5% OF TOTAL INVESTMENTS)
1,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,081,760
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 (Pre-refunded to 12/01/09) -
FGIC Insured
2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA 2,259,020
Series 2001A, 5.750%, 6/01/17 (Pre-refunded to
6/01/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.6% (8.7% OF TOTAL INVESTMENTS)
1,440 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 Aaa 1,569,960
System Improvement Revenue Bonds, Series 2002,
5.250%, 2/15/17 - MBIA Insured
910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 1,006,151
Series 2001, 5.500%, 12/01/18 - AMBAC Insured
1,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 1,062,450
Interest Certificates, Belleville Hydroelectric Project -
Joint Venture 5, Series 2004, 5.000%, 2/15/21 -
AMBAC Insured
1,500 Ohio Air Quality Development Authority, Revenue Refunding 9/05 at 102.00 Baa1 1,531,200
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 2,121,020
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 1,011,180
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.8% (6.7% OF TOTAL INVESTMENTS)
2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 2,086,640
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,700 Cincinnati, Ohio, Water System Revenue Bonds, Series 2001, 6/11 at 100.00 AA+ 1,816,875
5.125%, 12/01/21
2,375 Ohio Water Development Authority, Revenue Bonds, Water 12/13 at 100.00 Aaa 2,522,485
Development Community Assistance Program, Series 2003,
5.000%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 88,955 Total Long-Term Investments (cost $90,081,927) - 144.6% 95,255,207
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 1,617,381
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.1)% (31,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 65,872,588
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
N/R Investment is not rated.
See accompanying notes to financial statements.
45
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ)
Portfolio of
INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 8.6% (5.8% OF TOTAL INVESTMENTS)
$ 950 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 982,110
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+ 3,145,260
Revenue Bonds, Anheuser-Busch Project, Series 2001,
5.500%, 11/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.4% (7.0% OF TOTAL INVESTMENTS)
1,345 Bowling Green State University, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 1,477,025
Series 2003, 5.250%, 6/01/18 - AMBAC Insured
1,050 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa1 1,131,081
Wittenberg University, Series 2001, 5.500%, 12/01/15
1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 1,063,550
Series 2003C, 5.000%, 6/01/22 - FGIC Insured
1,245 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,336,383
Series 2004D, 5.000%, 6/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.6% (17.2% OF TOTAL INVESTMENTS)
1,380 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 1,412,182
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.000%, 11/15/08
1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 1,054,760
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- 1,969,362
Improvement Bonds, Catholic Healthcare Partners,
Series 2001A, 5.400%, 10/01/21
900 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 930,501
and Improvement Bonds, Upper Valley Medical Center,
Series 1996A, 6.375%, 5/15/26
700 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 728,133
Initiatives, Series 2004A, 5.000%, 5/01/30
2,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,176,360
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 3,992,116
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 1,066,080
Housing Mortgage Revenue Bonds, Agler Project,
Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.6% (0.5% OF TOTAL INVESTMENTS)
180 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/10 at 100.00 Aaa 185,744
Securities Program Residential Mortgage Revenue Bonds,
Series 2001A, 5.500%, 9/01/34 (Alternative Minimum Tax)
120 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 124,494
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.2% (1.5% OF TOTAL INVESTMENTS)
1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 1,042,410
Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 40.9% (27.6% OF TOTAL INVESTMENTS)
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 1,087,610
1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,064,210
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,605 Columbus City School District, Franklin County, Ohio, 12/14 at 100.00 AAA $ 2,952,038
General Obligation Bonds, Series 2004, 5.500%, 12/01/15 -
FSA Insured
400 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 429,444
Series 2004, 5.000%, 12/01/21
1,750 Fairfield City School District, Ohio, General Obligation 12/11 at 100.00 AAA 1,921,973
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 1,073,970
Obligation Capital Improvement Bonds, Series 2001A,
5.125%, 12/01/21 - MBIA Insured
1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation 11/11 at 101.00 Aaa 1,785,816
Bonds, One Renaissance Center Acquisition, Series 2001,
5.000%, 11/01/26 - AMBAC Insured
1,065 Lakewood City School District, Cuyahoga County, Ohio, 12/14 at 100.00 AAA 1,183,183
General Obligation Bonds, Series 2004, 5.250%, 12/01/16 -
FSA Insured
2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aaa 2,691,016
Center Bonds, Series 2002, 5.500%, 12/01/22 - FGIC Insured
1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,063,880
Bonds, Series 2001B, 5.000%, 9/15/21
1,050 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 1,183,560
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 2,067,682
5.000%, 12/01/25 - FGIC Insured
1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,110,640
5.500%, 12/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.5% (13.1% OF TOTAL INVESTMENTS)
1,710 Marysville Exempted Village School District, Ohio, Certificates 6/15 at 100.00 AAA 1,872,878
of Participation, School Facilities Project, Series 2005,
5.250%, 12/01/21 - MBIA Insured
1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,181,844
Capital Facilities, Series 2004A-II, 5.000%, 12/01/18
2,500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 2,727,725
Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 -
MBIA Insured
250 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 266,260
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
1,000 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 1,068,330
Adult Correctional Building Fund Project, Series 2005A,
5.000%, 4/01/23 - FSA Insured
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 1,117,680
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 1,101,420
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 3,750,100
Series 2000A, 5.250%, 1/01/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 13.9% (9.3% OF TOTAL INVESTMENTS)
1,000 Cleveland, Ohio, General Obligation Bonds, Series 2003, 8/13 at 100.00 AAA 1,111,530
5.250%, 8/01/18 (Pre-refunded to 8/01/13) - FGIC Insured
4,000 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 4,453,960
Obligation Bonds, Series 2001, 5.500%, 12/01/21
(Pre-refunded to 12/01/11) - FSA Insured
1,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,081,760
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 (Pre-refunded to 12/01/09) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.0% (6.0% OF TOTAL INVESTMENTS)
595 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 633,485
Certificates, Belleville Hydroelectric Project - Joint Venture 5,
Series 2004, 5.000%, 2/15/20 - AMBAC Insured
2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,651,275
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 1,011,180
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
47
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) (continued)
Portfolio of INVESTMENTS July 31, 2005
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 Bonds, 12/06 at 101.00 AAA $ 2,086,640
Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,500 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 1,596,734
Water Development, Series 2001A, 5.000%, 12/01/21 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 65,985 Total Long-Term Investments (cost $67,772,775) - 148.4% 71,145,374
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 791,795
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.1)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 47,937,169
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
N/R Investment is not rated.
See accompanying notes to financial statements.
48
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ)
Portfolio of
INVESTMENTS July 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.3% (4.3% OF TOTAL INVESTMENTS)
$ 2,040 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,108,952
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.8% (8.0% OF TOTAL INVESTMENTS)
1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 1,242,563
Ohio Northern University, Series 2002, 5.750%, 5/01/16
2,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 10/12 at 100.00 AA 2,216,880
Case Western Reserve University, Series 2002B,
5.500%, 10/01/22
500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa1 510,495
Wittenburg University, Series 2005, 5.000%, 12/01/24
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.4% (15.9% OF TOTAL INVESTMENTS)
690 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 706,091
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.000%, 11/15/08
1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 1,845,830
Regional Medical Center, Series 2002A, 5.500%, 8/15/22
1,425 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A2 1,581,836
Kettering Medical Center, Series 1999, 6.750%, 4/01/18
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic 9/11 at 100.00 AA 1,093,930
Health Initiatives, Series 2001, 5.500%, 9/01/12
500 Montgomery County, Ohio, Revenue Bonds, Catholic 5/14 at 100.00 AA 520,095
Health Initiatives, Series 2004A, 5.000%, 5/01/30
1,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 1,028,430
Hospital Revenue Refunding and Improvement Bonds,
Series 1998, 5.375%, 11/01/29
1,000 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 1,088,180
Bonds, MedCentral Health System Obligated Group,
Series 2000B, 6.375%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.6% (3.1% OF TOTAL INVESTMENTS)
310 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 318,162
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
810 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 828,371
Securities Program Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
380 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 391,047
Securities Program Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.6% (1.2% OF TOTAL INVESTMENTS)
500 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 524,170
Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 44.7% (30.5% OF TOTAL INVESTMENTS)
2,000 Canal Winchester Local School District, Franklin and Fairfield 12/08 at 102.00 AAA 2,152,380
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+ 322,083
Series 2004, 5.000%, 12/01/21
1,475 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 Aaa 1,678,978
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 Aa2 2,196,920
Obligation Bonds, Series 2001, 5.500%, 12/01/28
1,000 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,064,800
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 1,345,768
5.125%, 12/01/26 - AMBAC Insured
49
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) (continued)
Portfolio of INVESTMENTS July 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 $ 1,275,228
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+ 1,064,450
Bonds, Series 2001B, 5.000%, 9/15/20
1,000 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 1,093,410
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 1,663,756
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+ 1,212,637
Bonds, Series 2002, 5.000%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.3% (14.5% OF TOTAL INVESTMENTS)
1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 1,036,340
Certificates of Participation, Series 2003, 5.000%, 11/01/30
2,000 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 2,182,180
Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 -
MBIA Insured
1,250 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,382,275
Administrative Building Fund Projects, Series 2002A,
5.500%, 4/01/18 - FSA Insured
200 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 213,008
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
2,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 2,341,680
Government Facilities Revenue Bonds, Series 1993L,
5.500%, 7/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.0% (6.1% OF TOTAL INVESTMENTS)
1,140 Columbus Municipal Airport Authority, Ohio, Airport No Opt. Call AAA 1,235,372
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 1,788,328
5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 11.5% (7.8% OF TOTAL INVESTMENTS)
1,500 Hamilton County, Ohio, Sewer System Revenue Refunding 12/11 at 100.00 AAA 1,649,070
and Improvement Bonds, Metropolitan Sewer District of
Greater Cincinnati, Series 2001A, 5.250%, 12/01/18
(Pre-refunded to 12/01/11) - MBIA Insured
1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA-*** 1,114,350
5.375%, 12/01/22 (Pre-refunded to 12/01/12)
1,000 Ohio State University, General Receipts Bonds, Series 1999A, 12/09 at 101.00 AA*** 1,099,120
5.800%, 12/01/29 (Pre-refunded to 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.9% (3.3% OF TOTAL INVESTMENTS)
1,500 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 Aaa 1,635,375
System Improvement Revenue Bonds, Series 2002,
5.250%, 2/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.9% (5.3% OF TOTAL INVESTMENTS)
1,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 1,043,320
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,500 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 1,596,733
Water Development, Series 2001A, 5.000%, 12/01/21 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 45,570 Total Long-Term Investments (cost $46,399,034) - 147.0% 49,392,593
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 713,355
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.1)% (16,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 33,605,948
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
50
Statement of
ASSETS AND LIABILITIES July 31, 2005
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $255,798,715, $164,461,546 and
$44,948,958, respectively) $275,820,083 $174,743,770 $47,718,965
Cash 1,936,433 260,691 117,016
Receivables:
Interest 3,200,656 2,277,370 552,722
Investments sold -- -- --
Other assets 18,578 4,434 2,601
------------------------------------------------------------------------------------------------------------------------------------
Total assets 280,975,750 177,286,265 48,391,304
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- --
Payable for investments purchased 838,878 642,435 535,739
Forward swaps, at value -- -- 5,222
Accrued expenses:
Management fees 150,820 95,761 13,844
Other 68,307 58,310 12,945
Preferred share dividends payable 18,105 15,020 2,892
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,076,110 811,526 570,642
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $185,899,640 $120,474,739 $31,820,662
====================================================================================================================================
Common shares outstanding 11,706,154 7,745,623 2,061,526
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.88 $ 15.55 $ 15.44
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 117,062 $ 77,456 $ 20,615
Paid-in surplus 163,807,968 108,309,704 29,191,483
Undistributed net investment income 990,736 703,684 294,336
Accumulated net realized gain (loss) from investments and
forward swaps 962,506 1,101,671 (450,557)
Net unrealized appreciation (depreciation) of investments and
forward swaps 20,021,368 10,282,224 2,764,785
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $185,899,640 $120,474,739 $31,820,662
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
51
Statement of
ASSETS AND LIABILITIES July 31, 2005 (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 $222,817,235, $90,081,927,
$67,772,775 and $46,399,034, respectively) $235,132,995 $95,255,207 $71,145,374 $49,392,593
Cash -- 478,028 80,835 138,590
Receivables:
Interest 2,724,148 1,182,566 757,288 597,497
Investments sold 1,546,498 -- -- --
Other assets 12,743 7,649 2,645 7,565
------------------------------------------------------------------------------------------------------------------------------------
Total assets 239,416,384 96,923,450 71,986,142 50,136,245
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,199,711 -- -- --
Payable for investments purchased -- -- -- --
Forward swaps, at value -- -- -- --
Accrued expenses:
Management fees 128,599 28,069 20,857 14,526
Other 89,301 16,338 18,219 11,702
Preferred share dividends payable 17,272 6,455 9,897 4,069
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,434,883 50,862 48,973 30,297
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $160,981,501 $65,872,588 $47,937,169 $33,605,948
====================================================================================================================================
Common shares outstanding 9,706,985 4,235,468 3,119,041 2,157,781
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 16.58 $ 15.55 $ 15.37 $ 15.57
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 97,070 $ 42,355 $ 31,190 $ 21,578
Paid-in surplus 147,164,649 60,129,130 44,217,615 30,530,620
Undistributed net investment income 810,186 390,102 214,557 64,974
Accumulated net realized gain (loss) from investments and
forward swaps 593,836 137,721 101,208 (4,783)
Net unrealized appreciation (depreciation) of investments and
forward swaps 12,315,760 5,173,280 3,372,599 2,993,559
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $160,981,501 $65,872,588 $47,937,169 $33,605,948
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
52
Statement of
OPERATIONS Year Ended July 31, 2005
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $13,685,061 $ 8,629,344 $2,274,969
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,776,807 1,128,029 305,737
Preferred shares - auction fees 235,000 140,000 40,000
Preferred shares - dividend disbursing agent fees 20,000 20,000 10,000
Shareholders' servicing agent fees and expenses 27,956 20,369 1,002
Custodian's fees and expenses 67,941 44,986 14,093
Directors'/Trustees' fees and expenses 6,307 3,963 1,044
Professional fees 19,637 15,501 10,589
Shareholders' reports - printing and mailing expenses 35,501 16,190 5,719
Stock exchange listing fees 13,205 13,177 175
Investor relations expense 39,440 20,309 5,297
Other expenses 27,975 8,201 8,357
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 2,269,769 1,430,725 402,013
Custodian fee credit (19,182) (18,231) (3,147)
Expense reimbursement -- -- (142,801)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,250,587 1,412,494 256,065
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,434,474 7,216,850 2,018,904
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 1,581,756 1,197,250 129,220
Net realized gain (loss) from forward swaps -- -- (496,596)
Change in net unrealized appreciation (depreciation)
of investments 4,992,452 2,658,205 1,604,711
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- 59,406
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 6,574,208 3,855,455 1,296,741
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,477,435) (885,902) (229,801)
From accumulated net realized gains from investments (81,692) (11,575) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,559,127) (897,477) (229,801)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $16,449,555 $10,174,828 $3,085,844
====================================================================================================================================
See accompanying notes to financial statements.
53
Statement of
OPERATIONS Year Ended July 31, 2005 (continued)
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $11,834,455 $4,740,893 $3,321,980 $2,328,548
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,514,093 621,276 461,692 321,024
Preferred shares - auction fees 192,500 77,500 60,000 41,250
Preferred shares - dividend disbursing agent fees 30,000 10,000 10,000 10,000
Shareholders' servicing agent fees and expenses 30,249 1,488 1,437 1,188
Custodian's fees and expenses 61,428 27,929 18,120 13,123
Directors'/Trustees' fees and expenses 5,720 2,173 1,588 1,074
Professional fees 14,573 12,232 11,222 10,426
Shareholders' reports - printing and mailing expenses 18,641 13,790 9,300 9,129
Stock exchange listing fees 10,779 360 265 184
Investor relations expense 28,728 13,386 7,802 7,296
Other expenses 8,821 13,701 8,623 11,516
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,915,532 793,835 590,049 426,210
Custodian fee credit (11,928) (6,506) (6,259) (5,217)
Expense reimbursement -- (290,178) (215,641) (149,940)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,903,604 497,151 368,149 271,053
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 9,930,851 4,243,742 2,953,831 2,057,495
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 795,602 285,990 218,487 (4,849)
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments 3,879,996 2,106,549 1,685,657 1,502,016
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 4,675,598 2,392,539 1,904,144 1,497,167
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,186,754) (473,047) (377,637) (245,582)
From accumulated net realized gains from investments (14,809) -- (3,841) (2,521)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,201,563) (473,047) (381,478) (248,103)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $13,404,886 $6,163,234 $4,476,497 $3,306,559
====================================================================================================================================
See accompanying notes to financial statements.
54
Statement of
CHANGES IN NET ASSETS
MICHIGAN MICHIGAN MICHIGAN
QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW)
----------------------------- ----------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
7/31/05 7/31/04 7/31/05 7/31/04 7/31/05 7/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,434,474 $ 11,802,032 $ 7,216,850 $ 7,522,642 $ 2,018,904 $ 2,031,123
Net realized gain (loss)
from investments 1,581,756 1,180,195 1,197,250 1,871,869 129,220 51,975
Net realized gain (loss)
from forward swaps -- -- -- -- (496,596) --
Change in net unrealized
appreciation (depreciation)
of investments 4,992,452 4,399,778 2,658,205 1,053,906 1,604,711 1,008,797
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- 59,406 (64,628)
Distributions to Preferred
Shareholders:
From net investment income (1,477,435) (724,631) (885,902) (313,219) (229,801) (111,533)
From accumulated net
realized gains
from investments (81,692) (95,441) (11,575) (220,148) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 16,449,555 16,561,933 10,174,828 9,915,050 3,085,844 2,915,734
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (10,880,505) (11,067,332) (7,012,719) (7,285,471) (1,842,204) (1,841,125)
From accumulated net
realized gains
from investments (1,296,599) (1,232,780) (357,099) (3,007,816) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from distributions
to Common shareholders (12,177,104) (12,300,112) (7,369,818) (10,293,287) (1,842,204) (1,841,125)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 513,084 666,222 140,855 488,732 24,803 22,217
Preferred shares offering costs -- -- -- -- 13,775 (1,870)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 513,084 666,222 140,855 488,732 38,578 20,347
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 4,785,535 4,928,043 2,945,865 110,495 1,282,218 1,094,956
Net assets applicable to Common
shares at the beginning
of year 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 year $185,899,640 $181,114,105 $120,474,739 $117,528,874 $31,820,662 $30,538,444
====================================================================================================================================
Undistributed net investment
income at the end of year $ 990,736 $ 1,934,690 $ 703,684 $ 1,390,724 $ 294,336 $ 347,437
====================================================================================================================================
See accompanying notes to financial statements.
55
Statement of
CHANGES IN NET ASSETS (continued)
OHIO OHIO OHIO
QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ)
----------------------------- ----------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
7/31/05 7/31/04 7/31/05 7/31/04 7/31/05 7/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 9,930,851 $ 10,288,690 $ 4,243,742 $ 4,394,700 $ 2,953,831 $ 3,072,016
Net realized gain (loss)
from investments 795,602 2,207,042 285,990 (170,963) 218,487 (16,409)
Net realized gain (loss)
from forward swaps -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments 3,879,996 246,313 2,106,549 1,850,624 1,685,657 1,654,989
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- -- -- -- --
Distributions to Preferred
Shareholders:
From net investment income (1,186,754) (535,383) (473,047) (255,016) (377,637) (181,912)
From accumulated net
realized gains
from investments (14,809) (141,268) -- (5,304) (3,841) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 13,404,886 12,065,394 6,163,234 5,814,041 4,476,497 4,528,684
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,486,568) (9,681,971) (4,050,053) (4,096,876) (2,813,531) (2,862,473)
From accumulated net
realized gains
from investments (345,280) (2,044,035) -- (71,806) (65,438) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions
to Common shareholders (9,831,848) (11,726,006) (4,050,053) (4,168,682) (2,878,969) (2,862,473)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 774,356 883,014 117,890 74,236 56,222 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 774,356 883,014 117,890 72,572 71,164 24,628
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 4,347,394 1,222,402 2,231,071 1,717,931 1,668,692 1,690,839
Net assets applicable to Common
shares at the beginning
of year 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 year $160,981,501 $156,634,107 $65,872,588 $63,641,517 $47,937,169 $46,268,477
====================================================================================================================================
Undistributed net investment
income at the end of year $ 810,186 $ 1,561,039 $ 390,102 $ 680,530 $ 214,557 $ 451,940
====================================================================================================================================
See accompanying notes to financial statements.
56
OHIO
DIVIDEND ADVANTAGE 3 (NVJ)
----------------------------
YEAR ENDED YEAR ENDED
7/31/05 7/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,057,495 $ 2,063,782
Net realized gain (loss) from investments (4,849) 41,914
Net realized gain (loss) from forward swaps -- --
Change in net unrealized appreciation
(depreciation) of investments 1,502,016 1,025,170
Change in net unrealized appreciation
(depreciation) of forward swaps -- --
Distributions to Preferred Shareholders:
From net investment income (245,582) (124,399)
From accumulated net realized gains
from investments (2,521) (10,818)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 3,306,559 2,995,649
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,872,857) (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 (1,912,341) (2,035,937)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 3,478 4,762
Preferred shares offering costs -- (1,408)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 3,478 3,354
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 1,397,696 963,066
Net assets applicable to Common
shares at the beginning of year 32,208,252 31,245,186
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $33,605,948 $32,208,252
====================================================================================================================================
Undistributed net investment
income at the end of year $ 64,974 $ 125,984
====================================================================================================================================
See accompanying notes to financial statements.
57
Notes to
FINANCIAL STATEMENTS
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.
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.
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 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 July 31, 2005,
Michigan Quality Income (NUM), Michigan Premium Income (NMP) and Michigan
Dividend Advantage (NZW) had outstanding when-issued purchase commitments of
$838,878, $642,435 and $535,739, respectively. There were no such outstanding
purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
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. All monthly tax-exempt income dividends paid during the fiscal
year ended July 31, 2005, have been designated Exempt Interest Dividends. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
58
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, and would increase or decrease in value based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date were to increase or decrease. 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 on a net basis. Each Fund intends, but is not obligated to,
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To 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.
59
Notes to
FINANCIAL STATEMENTS (continued)
Indemnifications
Under the Funds' organizational documents, their 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)
------------------------ ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
7/31/05 7/31/04 7/31/05 7/31/04 7/31/05 7/31/04
----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 31,281 40,867 8,960 30,749 1,581 1,185
======================================================================================================================
OHIO QUALITY OHIO DIVIDEND OHIO DIVIDEND
INCOME (NUO) ADVANTAGE (NXI) ADVANTAGE 2 (NBJ)
------------------------ ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
7/31/05 7/31/04 7/31/05 7/31/04 7/31/05 7/31/04
----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 44,115 49,919 7,184 4,481 3,544 1,437
======================================================================================================================
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-----------------------
YEAR ENDED YEAR ENDED
7/31/05 7/31/04
----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 217 299
======================================================================================================================
60
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended July 31, 2005, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Purchases $20,837,440 $19,893,639 $4,245,364
Sales and maturities 22,848,623 19,464,093 3,993,624
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Purchases $34,793,099 $13,025,753 $10,795,413 $1,543,177
Sales and maturities 33,816,192 13,032,906 9,987,710 1,230,705
=========================================================================================================
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 July 31, 2005, the cost of investments was as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Cost of investments $255,890,739 $164,426,945 $45,361,662
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Cost of investments $222,762,776 $90,018,649 $67,760,474 $46,389,795
=========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at July 31, 2005, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $20,359,026 $10,504,378 $2,795,229
Depreciation (429,682) (187,553) (437,926)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $19,929,344 $10,316,825 $2,357,303
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $12,416,520 $5,265,258 $3,405,440 $3,014,651
Depreciation (46,301) (28,700) (20,540) (11,853)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $12,370,219 $5,236,558 $3,384,900 $3,002,798
=========================================================================================================
61
Notes to
FINANCIAL STATEMENTS (continued)
The tax components of undistributed net investment income and net realized gains
at July 31, 2005, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,766,789 $1,206,094 $448,052
Undistributed net ordinary income ** -- 20,208 --
Undistributed net long-term capital gains 1,139,426 1,101,668 --
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,515,578 $655,225 $430,138 $208,689
Undistributed net ordinary income ** -- 8,426 350 --
Undistributed net long-term capital gains 593,836 137,721 101,207 --
=========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on July 1, 2005, paid on August 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal years ended July 31,
2005 and July 31, 2004, was designated for purposes of the dividends paid
deduction as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
2005 (NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $12,353,910 $7,901,622 $2,070,374
Distributions from net ordinary income ** 68,743 44,066 --
Distributions from net long-term capital gains 1,378,291 363,651 --
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2005 (NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,725,327 $4,531,442 $3,201,799 $2,124,939
Distributions from net ordinary income ** 59,986 -- 4,973 --
Distributions from net long-term capital gains 300,638 -- 69,279 41,879
=========================================================================================================
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
2004 (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 --
=========================================================================================================
62
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2004 (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, 2005, 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
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 3
(NZW) (NVJ)
---------------------------------------------------------------------------------------------------------
Expiration Year
2011 $35,129 $ --
2012 -- --
2013 -- 1,451
---------------------------------------------------------------------------------------------------------
Total $35,129 $1,451
=========================================================================================================
Ohio Dividend Advantage 3 elected to defer net realized losses from investments
incurred from November 1, 2004 through July 31, 2005 ("post-October losses") in
accordance with Federal income tax regulations. The post-October losses of
$3,332 were treated as having arisen on the first day of the following fiscal
year.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
As of August 31, 2005, the complex-level fee rate was .1896%.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
MICHIGAN QUALITY INCOME (NUM)
AVERAGE DAILY NET ASSETS MICHIGAN PREMIUM INCOME (NMP)
(INCLUDING NET ASSETS OHIO QUALITY INCOME (NUO)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
MICHIGAN DIVIDEND ADVANTAGE (NZW)
OHIO DIVIDEND ADVANTAGE (NXI)
AVERAGE DAILY NET ASSETS OHIO DIVIDEND ADVANTAGE 2 (NBJ)
(INCLUDING NET ASSETS OHIO DIVIDEND ADVANTAGE 3 (NVJ)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
63
Notes to
FINANCIAL STATEMENTS (continued)
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.
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.
64
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.
6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen and
was deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which resulted in the
automatic termination of each agreement under the 1940 Act. In anticipation of
such deemed assignment, the Board of Directors/Trustees had approved new ongoing
investment management agreements for each Fund and the submission of those
agreements for approval by each respective Fund's shareholders, which
shareholder approval was received prior to the settlement of transactions (C)
and (D). The new ongoing management agreements took effect upon such settlement.
7. SUBSEQUENT EVENTS - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on September 1, 2005, to shareholders of
record on August 15, 2005, as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0720 $.0700 $.0745
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0765 $.0780 $.0700 $.0690
=========================================================================================================
65
Financial
HIGHLIGHTS
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 $15.51 $ .98 $ .57 $(.13) $(.01) $1.41 $(.93) $(.11) $(1.04)
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)
MICHIGAN PREMIUM
INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 15.19 .93 .50 (.11) -- 1.32 (.91) (.05) (.96)
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)
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 14.82 .98 .63 (.11) -- 1.50 (.89) -- (.89)
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 $ -- $15.88 $15.67 9.94% 9.28%
2004 -- 15.51 15.20 5.17 9.52
2003 -- 15.14 15.45 2.40 4.35
2002 -- 15.48 16.10 11.18 7.68
2001 -- 15.32 15.42 17.11 11.90
MICHIGAN PREMIUM
INCOME (NMP)
-------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 -- 15.55 15.68 16.03 8.80
2004 -- 15.19 14.37 5.46 8.56
2003 -- 15.24 14.85 2.64 3.71
2002 -- 15.56 15.35 10.52 7.40
2001 -- 15.31 14.71 17.81 13.61
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
-------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 .01 15.44 16.79 21.34 10.41
2004 -- 14.82 14.65 2.99 10.00
2003 .02 14.30 15.10 9.19 5.01
2002(a) (.19) 14.42 14.65 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 $185,900 1.22% 6.13% 1.21% 6.14% 8%
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
MICHIGAN PREMIUM
INCOME (NMP)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 120,475 1.19 5.97 1.17 5.98 11
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
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 31,821 1.27 5.93 .81 6.39 8
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 $94,000 $25,000 $74,441
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
MICHIGAN PREMIUM
INCOME (NMP)
-----------------------------------------------------------------------
Year Ended 7/31:
2005 56,000 25,000 78,783
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
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
-----------------------------------------------------------------------
Year Ended 7/31:
2005 16,000 25,000 74,720
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.
See accompanying notes to financial statements.
66-67 SPREAD
FINANCIAL HIGHLIGHTS (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 $16.21 $1.02 $ .49 $(.12) $ -- $1.39 $ (.98) $(.04) $(1.02)
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)
OHIO DIVIDEND ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 15.05 1.00 .57 (.11) -- 1.46 (.96) -- (.96)
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 14.85 .95 .61 (.12) -- 1.44 (.90) (.02) (.92)
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 14.93 .95 .69 (.11) -- 1.53 (.87) (.02) (.89)
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 $ -- $16.58 $16.96 10.25% 8.70%
2004 -- 16.21 16.30 2.59 7.87
2003 -- 16.17 17.04 (3.15) 4.84
2002 -- 16.36 18.62 17.00 7.63
2001 -- 16.10 16.80 6.86 9.85
OHIO DIVIDEND
ADVANTAGE (NXI)
-------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 -- 15.55 17.00 21.79 9.87
2004 -- 15.05 14.80 10.70 9.54
2003 .01 14.66 14.26 (.04) 5.09
2002 -- 14.83 15.15 4.48 8.02
2001(a) (.14) 14.57 15.35 3.77 3.21
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
-------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 -- 15.37 15.48 11.63 9.90
2004 -- 14.85 14.70 9.60 10.33
2003 .01 14.31 14.26 3.17 4.74
2002(b) (.16) 14.48 14.65 1.91 5.58
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 -- 15.57 15.90 17.60 10.40
2004 -- 14.93 14.30 5.86 9.72
2003 (.01) 14.48 14.40 .09 3.81
2002(c) (.16) 14.83 15.30 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 $160,982 1.19% 6.16% 1.18% 6.17% 14%
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
OHIO DIVIDEND
ADVANTAGE (NXI)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2005 65,873 1.21 6.00 .76 6.46 14
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 47,937 1.23 5.71 .77 6.17 14
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 33,606 1.27 5.68 .81 6.14 3
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 $77,000 $25,000 $77,267
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
OHIO DIVIDEND
ADVANTAGE (NXI)
---------------------------------------------------------------------
Year Ended 7/31:
2005 31,000 25,000 78,123
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 24,000 25,000 74,935
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 16,500 25,000 75,918
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.
See accompanying notes to financial statements.
68-69 SPREAD
Board Members
AND OFFICERS
The management of the Fund, including general supervision of the duties
performed for the Fund by the Adviser, is the responsibility of the Board
Members of the Fund. The number of board members of the Fund is currently set at
nine. None of the board members who are not "interested" persons of the Fund has
ever been a director or employee of, or consultant to, Nuveen or its affiliates.
The names and business addresses of the board members and officers of the Fund,
their principal occupations and other affiliations during the past five years,
the number of portfolios each oversees and other directorships they hold are set
forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUND APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 155
3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and
333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Chairman and Director (since
1997) of Nuveen Asset Management; Director (since 1996)
of Institutional Capital Corporation; Chairman and Director
(since 1999) of Rittenhouse Asset Management, Inc.;
Chairman of Nuveen Investments Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 155
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 155
7/29/34 Trust Company; Director, Community Advisory Board for
333 W. Wacker Drive Highland Park and Highwood, United Way of the North
Chicago, IL 60606 Shore (since 2002).
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 155
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College; Director, Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 155
3/6/48 Business at the University of Connecticut (since 2003);
333 W. Wacker Drive previously, Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003); Director
(since 1997), Credit Research Center at Georgetown University;
Director of Xerox Corporation (since 2004).
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (2004) as Chairman, JPMorgan Asset Management, 153
10/28/42 President and CEO, Banc One Investment Advisors Corporation,
333 W. Wacker Drive and President, One Group Mutual Funds; prior thereto,
Chicago, IL 60606 Executive Vice President, Banc One Corporation and Chairman
and CEO, Banc One Investment Management Group; Board of Regents,
Luther College; currently a member of the American and Wisconsin Bar
Associations.
70
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUND APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUND (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman, formerly, Senior Partner and Chief Operating 155
9/24/44 Officer, Miller-Valentine Partners Ltd., a real estate
333 W. Wacker Drive investment company; formerly, Vice President, Miller-Valentine
Chicago, IL 60606 Realty, a construction company; Board Member and Chair of the
Finance Committee, member of the Audit Committee of Premier
Health Partners, the not-for-profit company of Miami
Valley Hospital; Board Member, formerly Chair, Dayton
Development Coalition; President, Dayton Philharmonic
Orchestra Association; formerly, Member, Community Advisory
Board, National City Bank, Dayton, Ohio and Business
Advisory Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 155
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance (since 1997), 155
1/22/50 Northwestern University; Director (since 2003), Chicago
333 W. Wacker Drive Board of Options Exchange; Director (since 2003), National
Chicago, IL 60606 Mentor Holdings, a privately-held, national provider of home
and community-based services; Chairman (since 1997), Board
of Directors, Rubicon, an insurance company owned by
Northwestern University; Director (since 1997), Evanston of
Commerce and Evanston Inventure, a business development
organization.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 155
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
2000), of Nuveen Asset Management; Managing Director (since
2004) and Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset Management,
Inc. (since 2003); Chartered Financial Analyst.
71
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), previously, Vice President 155
9/22/63 (since 2002), formerly, Assistant Vice President (since 1999)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 155
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); 155
11/28/67 and Treasurer Vice President and Treasurer of Nuveen Investments, Inc.
333 W. Wacker Drive (since 1999); Vice President and Treasurer of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp (since 1999)(3);
Vice President and Treasurer of Nuveen Asset Management
(since 2002) and of Nuveen Investments Advisers Inc.;
Assistant Treasurer of NWQ Investment Management
Company, LLC (since 2002); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002) and Assistant General Counsel 155
9/24/64 and Secretary (since 1998), formerly, Assistant Vice President (since 1998) of
333 W. Wacker Drive Nuveen Investments, LLC; Vice President (since 2002)
Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); and (since 2005) Nuveen
Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 155
10/24/45 Nuveen Investments, LLC; Managing Director (since 2004)
333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory Corp.
Chicago, IL 60606 and Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 155
3/2/64 LLC; Managing Director (since 2001), formerly, Vice President
333 W. Wacker Drive (since 1995) of Nuveen Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.(3); Managing Director (since 2001) of Nuveen
Asset Management; Vice President (since 2002) of Nuveen
Investment Advisers Inc.; Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 155
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 155
4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc.,
333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management,
Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Compliance
(2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Corp.(3); formerly, Senior Attorney (1994 to 2004), The Northern
Trust Company.
72
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 155
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999) of Nuveen Investments, LLC. 155
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 155
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005) and
Assistant Secretary of Nuveen Investments, Inc. and of Nuveen
Asset Management; Vice President (since 2000), Assistant
Secretary and Assistant General Counsel (since 1998) of
Rittenhouse Asset Management; Vice President and Assistant
Secretary of Nuveen Investments Advisers Inc. (since 2002);
Assistant Secretary of NWQ Investment Management
Company, LLC (since 2002).
(1) Mr. Schwertfeger is an "interested person" of the Fund, as defined in the
Investment Company Act of 1940, because he is an officer and board member of
the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
73
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds,
including the independent Trustees, unanimously approved the Investment
Management Agreement between each Fund and NAM.
THE APPROVAL PROCESS
To assist the Board in its evaluation of an advisory contract with NAM, the
independent Trustees received a report in adequate time in advance of their
meeting which outlined, among other things, the services provided by NAM; the
organization of NAM, including the responsibilities of various departments and
key personnel; the Fund's past performance as well as the Fund's performance
compared to funds of similar investment objectives compiled by an independent
third party (a "Peer Group") and if available, with recognized or, in certain
cases, customized benchmarks; the profitability of NAM and certain industry
profitability analyses for advisers to unaffiliated investment companies; the
expenses of NAM in providing the various services; the advisory fees of NAM,
including comparisons of such fees with the management fees of comparable funds
in its Peer Group as well as comparisons of NAM's management fees with the fees
NAM assesses to other types of investment products or accounts, if any; the soft
dollar practices of NAM; and the expenses of each Fund, including comparisons of
the Fund's expense ratios (after any fee waivers) with the expense ratios of its
Peer Group. This information supplements that received by the Board throughout
the year regarding Fund performance, expense ratios, portfolio composition,
trade execution and sales activity.
In addition to the foregoing materials, independent legal counsel to the
independent Trustees provided, in advance of the meeting, a legal memorandum
outlining, among other things, the duties of the Trustees under the 1940 Act as
well as the general principles of relevant state law in reviewing and approving
advisory contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards of
directors have fulfilled their duties and factors to be considered by the board
in voting on advisory agreements.
At the Board meeting, NAM made a presentation to and responded to questions from
the Board. After the presentations and after reviewing the written materials,
the independent Trustees met privately with their legal counsel to review the
Board's duties in reviewing advisory contracts and consider the renewal of the
advisory contract. It is with this background that the Trustees considered each
Investment Management Agreement with NAM. The independent Trustees, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and SEC directives relating to the renewal of advisory contracts. As
outlined in more detail below, the Trustees considered all factors they believed
relevant with respect to each Fund, including the following: (a) the nature,
extent and quality of the services to be provided by NAM; (b) the investment
performance of the Fund and NAM; (c) the costs of the services to be provided
and profits to be realized by NAM and its affiliates from the relationship with
the Fund; (d) the extent to which economies of scale would be realized as the
Fund grows; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, extent and quality of NAM's services, the Trustees
reviewed information concerning the types of services that NAM or its affiliates
provide and are expected to provide to the Nuveen Funds; narrative and
statistical information concerning the Fund's performance record and how such
performance compares to the Fund's Peer Group and, if available, recognized
benchmarks or, in certain cases, customized benchmarks (as described in further
detail in Section B below); information describing NAM's organization and its
various departments, the experience and responsibilities of key personnel, and
available resources. In the discussion of key personnel, the Trustees received
materials regarding the changes or additions in personnel of NAM. The Trustees
further noted the willingness of the personnel of NAM to engage in open, candid
discussions with the Board. The Trustees further considered the quality of NAM's
investment process in making portfolio management decisions, including any
refinements or improvements to the portfolio management processes, enhancements
to technology and systems that are available to portfolio managers, and any
additions of new personnel which may strengthen or expand the research and
investment capabilities of NAM. In their review of advisory contracts for the
fixed income funds, the Trustees also noted that Nuveen won the Lipper Award for
Best Fund Family: Fixed Income-Large Asset Class, for 2004. Given the Trustees'
experience with the Funds, other Nuveen funds and NAM, the Trustees noted that
they were familiar with and continue to have a good understanding of the
organization, operations and personnel of NAM.
In addition to advisory services, the independent Trustees considered the
quality of the administrative or non-advisory services provided. In this regard,
NAM provides the Fund with such administrative and other services (exclusive of,
and in addition to, any such services provided by others for the Funds) and
officers and other personnel as are necessary for the operations of the
respective Fund. In addition to investment management services, NAM and its
affiliates provide each Fund with a wide range of services, including: preparing
shareholder reports; providing daily accounting; providing quarterly financial
statements; overseeing and coordinating the
74
activities of other service providers; administering and organizing Board
meetings and preparing the Board materials for such meetings; providing legal
support (such as helping to prepare registration statements, amendments thereto
and proxy statements and responding to regulatory inquiries); and performing
other Fund administrative tasks necessary for the operation of the respective
Fund (such as tax reporting and fulfilling regulatory filing requirements). In
addition, in evaluating the administrative services, the Trustees considered, in
particular, NAM's policies and procedures for assuring compliance with
applicable laws and regulations in light of the new SEC regulations governing
compliance. The Trustees noted NAM's focus on compliance and its compliance
systems. In their review, the Trustees considered, among other things, the
additions of experienced personnel to NAM's compliance group and modifications
and other enhancements to NAM's computer systems. In addition to the foregoing,
the Trustees also noted that NAM outsources certain services that cannot be
replicated without significant costs or at the same level of expertise. Such
outsourcing has been a beneficial and efficient use of resources by keeping
expenses low while obtaining quality services.
In addition to the above, in reviewing the variety of additional services that
NAM or its affiliates must provide to closed-end funds, such as the Funds, the
independent Trustees determined that Nuveen's commitment to supporting the
secondary market for the common shares of its closed-end funds is particularly
noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor
numerous forums for analysts and specialists regarding the various Nuveen
closed-end funds, its creation of a new senior position dedicated to providing
secondary market support services and enhancing communications with investors
and analysts, and its advertising and media relations efforts designed to raise
investor and analyst awareness of the closed-end funds.
With respect to services provided to municipal funds, such as the Funds, the
Trustees also noted, among other things, the enhancements NAM implemented to its
municipal portfolio management processes (e.g., the increased use of benchmarks
to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify NAM's computer systems as necessary to support
the innovations of the municipal investment team (such as, the ability to assess
certain historical data in order to create customized benchmarks, perform
attribution analysis and facilitate the use of derivatives as hedging
instruments). With respect to certain of the Funds with a less seasoned
portfolio, the Trustees also noted the hedging program implemented for such
Funds and the team responsible for developing, implementing and monitoring the
hedging procedures. The hedging program was designed to help maintain the
applicable Fund's duration within certain benchmarks.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the Funds under
the Investment Management Agreements were of a high level and were quite
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER
As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group, if available. Among other things, the
Board received materials reflecting a Fund's historic performance, the Fund's
performance compared to its Peer Group and, if available, its performance
compared to recognized and, in certain cases, customized benchmarks. Further, in
evaluating the performance information, in certain limited instances, the
Trustees noted that the closest Peer Group for a Fund still would not adequately
reflect such Fund's investment objectives and strategies, thereby limiting the
usefulness of the comparisons of such Fund's performance with that of the Peer
Group.
For state municipal funds, such as the Funds, the performance data included,
among other things, the respective Fund's performance relative to its peers.
More specifically, a Fund's one-, three- and five-year total returns (as
available) for the periods ending December 31, 2004 were evaluated relative to
the unaffiliated funds in its respective Peer Group (including the returns of
individual peers as well as the Peer Group average) as well as additional
performance information with respect to all the funds in the Peer Group, subject
to the following. Certain state municipal Funds do not have a corresponding Peer
Group in which case their performance is measured against a state-specific
municipal index compiled by an independent third party. Such indices measure
bond performance rather than fund performance. The closed-end Funds that utilize
such indices are from Connecticut, Georgia, Maryland, Missouri, North Carolina,
Texas and Virginia. Based on their review, the Trustees determined that each
Fund's absolute and relative investment performance over time had been
satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that a Fund is expected to
bear, the Trustees considered the Fund's current management fee structure
and the Fund's expected expense ratios in absolute terms as well as
compared with the fees and expense ratios of the unaffiliated funds in its
Peer Group. The Trustees reviewed the financial information of NAM,
including its respective revenues, expenses and profitability. In reviewing
fees, the Trustees, among other things, reviewed comparisons of the Fund's
gross management fees (fees after fund-level and complex-wide level
breakpoints but before reimbursements and fee waivers), net management fees
(after breakpoints and reimbursements and fee waivers) and total expense
ratios (before and after waivers) with those of the unaffiliated funds in
the Peer Group and peer averages. In this regard, the Trustees noted that
the relative ranking of the Nuveen Funds on fees and expenses was aided by
the significant level of fee reductions provided by the fund-level and
complex-wide breakpoint schedules, and the fee waivers and reimbursements
provided by Nuveen for certain Funds launched since 1999. The complex-wide
breakpoint schedule was instituted in 2004 and is described in further
detail below in Section D entitled "Economies of Scale and Whether Fee
Levels Reflect these Economies of Scale." In their review of the fee and
expense information provided, including, in particular, the expense ratios
of the unaffiliated funds in the respective Peer Group, the Trustees
determined that each Fund's net total expense ratio was within an
acceptable range compared to such peers.
75
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further compared the fees of NAM to the fees NAM assessed for
other types of clients investing in municipal funds (such as municipal
managed accounts). With respect to such separately managed accounts, the
advisory fees for such accounts are generally lower than those charged to
the comparable Fund. The Trustees noted, however, the additional services
that are provided and the costs incurred by Nuveen in managing and
operating registered investment companies, such as the Funds, compared to
individually managed separate accounts. For instance, as described above,
NAM and its affiliates provide numerous services to the Funds including,
but not limited to, preparing shareholder reports; providing daily
accounting; preparing quarterly financial statements; overseeing and
coordinating the activities of other service providers; administering and
organizing Board meetings and preparing the Board materials for such
meetings; providing legal support; and administering all other aspects of
the Fund's operations. Further, the Trustees noted the increased compliance
requirements for funds in light of new SEC regulations and other
legislation. These services are generally not required to the same extent,
if at all, for separate accounts. In addition to the differences in
services, the Trustees also considered, among other things, the differences
in product distribution, investment policies, investor profiles and account
sizes. Accordingly, the Trustees believe that the nature and number of
services provided to operate a Fund merit the higher fees than those to
separate managed accounts.
3. PROFITABILITY OF ADVISER
In conjunction with its review of fees, the Trustees also considered NAM's
profitability. The Trustees reviewed NAM's revenues, expenses and
profitability margins (on both a pre-tax and after-tax basis). In reviewing
profitability, the Trustees recognized that one of the most difficult
issues in determining profitability is establishing a method of allocating
expenses. Accordingly, the Trustees reviewed NAM's assumptions and
methodology of allocating expenses. In this regard, the methods of
allocation used appeared reasonable but the Board noted the inherent
limitations in allocating costs among various advisory products. The
Trustees also recognized that individual fund or product line profitability
of other advisers is generally not publicly available. Further,
profitability may be affected by numerous factors including the types of
funds managed, expense allocations, business mix, etc. and therefore
comparability of profitability is somewhat limited. Nevertheless, to the
extent available, the Trustees considered NAM's profit margin compared to
the profitability of various publicly-traded investment management
companies and/or investment management companies that publicly disclose
some or all of their financial results compiled by three independent
third-party service providers. The Trustees also reviewed the revenues,
expenses and profit margins of various unaffiliated advisory firms with
similar amounts of assets under management for the last year prepared by
NAM. Based on their review, the Trustees were satisfied that NAM's level of
profitability from its relationship with each Fund was reasonable in light
of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to NAM as well as any indirect benefits
(such as soft dollar arrangements, if any) NAM and its affiliates are
expected to receive that are directly attributable to their management of
the Funds, if any. See Section E below for additional information. Based on
their review of the overall fee arrangements of the applicable Fund, the
Trustees determined that the advisory fees and expenses of the respective
Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
In reviewing the compensation, the Trustees have long understood the benefits of
economies of scale as the assets of a fund grow and have sought to ensure that
shareholders share in these benefits. One method for shareholders to share in
economies of scale is to include breakpoints in the advisory fee schedules that
reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed
the schedules of advisory fees for each Fund, including fund-level breakpoints
thereto. In addition, after lengthy negotiations with management, the Board in
May 2004 approved a complex-wide fee arrangement pursuant to which fees of the
funds in the Nuveen complex, including the Funds, are reduced as the assets in
the fund complex reach certain levels. The complex-wide fee arrangement was
introduced on August 1, 2004 and the Trustees reviewed data regarding the
reductions of fees for the Funds for the period of August 1, 2004 to December
31, 2004. In evaluating the complex-wide fee arrangement, the Trustees
considered, among other things, the historic and expected fee savings to
shareholders as assets grow, the amount of fee reductions at various asset
levels, and that the arrangement would extend to all Funds in the Nuveen
complex. The Trustees also considered the impact, if any, the complex-wide fee
arrangement may have on the level of services provided. Based on their review,
the Trustees concluded that the breakpoint schedule and complex-wide fee
arrangement currently was acceptable and desirable in providing benefits from
economies of scale to shareholders.
76
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. In this regard, the Trustees considered any benefits from soft dollar
arrangements. The Trustees noted that although NAM manages a large amount of
assets, it has very little, if any, brokerage to allocate. This is due to the
fact that NAM typically manages the portfolios of the municipal funds in the
Nuveen complex and municipal bonds generally trade on a principal basis.
Accordingly, NAM does not currently have any soft dollar arrangements and does
not pay excess brokerage commissions (or spreads on principal transactions) in
order to receive research services. In addition to soft dollar arrangements, the
Trustees also considered any other revenues, if any, received by NAM or its
affiliates. With respect to Funds with outstanding preferred shares and new
Funds, the Trustees considered revenues received by Nuveen for serving as agent
for broker-dealers at its preferred trading desk and for acting as co-manager in
the initial public offering of new closed-end exchange-traded funds.
F. OTHER CONSIDERATIONS
Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers
Companies, Inc. ("St. Paul"). As noted, St. Paul earlier this year announced its
intention to divest its equity stake in Nuveen. Nuveen is the parent of NAM.
Pursuant to a series of transactions, St. Paul had begun to reduce its interest
in Nuveen which would ultimately result in a change of control of Nuveen and
therefore NAM. As mandated by the 1940 Act, such a change in control would
result in an assignment of the advisory agreement with NAM and the automatic
termination of such agreement. Accordingly, the Board also considered for each
Fund the approval of a New Investment Management Agreement with each Fund in
light of, and which would take effect upon, the anticipated change of control.
More specifically, the Board considered for each Fund a New Investment
Management Agreement on substantially identical terms to the existing Investment
Management Agreement, to take effect after the change of control has occurred
and the contract has been approved by Fund shareholders. In its review, the
Board considered whether the various transactions necessary to divest St. Paul's
interest will have an impact on the various factors they considered in approving
NAM, such as the scope and quality of services to be provided following the
change of control. In reviewing the St. Paul transactions, the Board considered,
among other things, the impact, if any, on the operations and organizational
structure of NAM; the possible benefits and costs of the transactions to the
respective Fund; the potential implications of any arrangements used by Nuveen
to finance certain of the transactions; the ability of NAM to perform its duties
after the transactions; whether a Fund's fee structure or expense ratio would
change; any changes to the current practices of the respective Fund; any changes
to the terms of the advisory agreement; and any anticipated changes to the
operations of NAM. Based on its review, the Board determined that St. Paul's
divestiture would not affect the nature and quality of services provided by NAM,
the terms of the Investment Management Agreement, including the fees thereunder,
and would not materially affect the organization or operations of NAM.
Accordingly, the Board determined that their analysis of the various factors
regarding their approval of NAM would continue to apply after the change of
control.
G. APPROVAL
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that the respective Fund Adviser's fees are reasonable in
light of the services provided to each Fund, that the renewal of the NAM
Investment Management Agreements should be approved, and that the new,
post-change of control NAM Investment Management Agreements be approved and
recommended to shareholders.
77
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.
78
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26. 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
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
12-month period ended June 30, 2005, 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.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
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 expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
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.
79
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 $120 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
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
EAN-B-0705D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Michigan Quality Income Municipal Fund, Inc.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that Ernst & Young LLP provided to the Fund, except for those non-audit services
that were subject to the pre-approval exception under Rule 2-01 of Regulation
S-X (the "pre-approval exception"). The pre-approval exception for services
provided directly to the Fund waives the pre-approval requirement for services
other than audit, review or attest services if: (A) the aggregate amount of all
such services provided constitutes no more than 5% of the total amount of
revenues paid by the Fund to its accountant during the fiscal year in which the
services are provided; (B) the Fund did not recognize the services as non-audit
services at the time of the engagement; and (C) the services are promptly
brought to the Audit Committee's attention, and the Committee (or its delegate)
approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
Fiscal Year Ended to Fund Billed to Fund Billed to Fund Billed to Fund
------------------------------------------------------------------------------------------------------------------------------------
July 31, 2005 $ 12,181 $ 0 $ 431 $ 2,700
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
July 31, 2004 $ 11,608 $ 0 $ 409 $ 2,500
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon
procedures required by the rating agencies to rate fund preferred shares. The
above "Tax Fees" were billed for professional services for tax advice, tax
compliance, and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
Fiscal Year Ended Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Affiliated Fund Affiliated Fund and Affiliated Fund
Service Providers Service Providers Service Providers
---------------------------------------------------------------------------------------------------------------------
July 31, 2005 $ 0 $ 282,575 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------
July 31, 2004 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Fund tax
return preparation.
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Services Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP's independence.
Fiscal Year Ended Total Non-Audit Fees
billed to Adviser and
Affiliated Fund Service Total Non-Audit Fees
Providers (engagements billed to Adviser and
related directly to the Affiliated Fund Service
Total Non-Audit Fees operations and financial Providers (all other
Billed to Fund reporting of the Fund) engagements) Total
------------------------------------------------------------------------------------------------------------------------------------
July 31, 2005 $ 3,131 $ 282,575 $ 0 $ 285,706
July 31, 2004 $ 2,909 $ 0 $ 0 $ 2,909
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax-Fees" billed
to Adviser in the amount of $282,575 from previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit
committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the audit committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the audit committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the audit committee at
the next audit committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
audit committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
the Adviser would either engage an independent third party to determine how the
proxy should be voted or vote the proxy with the consent, or based on the
instructions, of the Fund's Board of Directors or Trustees or its
representative. In the case of a conflict of interest, the proxy would be
submitted to the applicable Fund's Board to determine how the proxy should be
voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Michigan Quality Income Municipal Fund, Inc.
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: October 7, 2005
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: October 7, 2005
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By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: October 7, 2005
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* Print the name and title of each signing officer under his or her signature.