UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06383
---------------------
Nuveen Michigan Quality Income Municipal Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: July 31
------------------
Date of reporting period: January 31, 2007
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT January 31, 2007
Nuveen Investments
Municipal Closed-End 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
Photo of: Woman and man at the beach.
Photo of: A child.
DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
Photo of: Woman
Photo of: Woman
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Logo: NUVEEN Investments
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 six-month period covered
by this report your Fund continued to provide you with attractive monthly
tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Manager's Comments, the
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well balanced investment portfolio.
In addition to providing attractive tax-free monthly income, a municipal
bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with investing.
For more information about this important investment strategy, I encourage
you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the Internet. The inside
front cover of this report contains information on how you can sign up.
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. 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.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
March 15, 2007
Nuveen Investments Municipal Closed-End Funds
(NUM, NMP, NZW, NUO, NXI, NBJ, NVJ)
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves reviews key investment strategies and the
six-month performance of these seven Nuveen Funds. Cathryn, who joined Nuveen in
1996, has managed the Ohio Funds since 2004 and the Michigan Funds since 2005.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THE
SIX-MONTH REPORTING PERIOD ENDED JANUARY 31, 2007?
During this six-month period, we saw very little change in short-term interest
rates, while longer-term rates continued to decline, resulting in further
flattening of the yield curve. In this environment, we continued to emphasize a
disciplined approach to duration1 management and yield curve positioning. As
part of this approach, our purchases for the Funds' portfolios focused mainly on
attractively priced bonds in the 25-year to 30-year part of the yield curve. We
believed that bonds in this range of the curve generally offered better value
and reward opportunities more commensurate with their risk levels. To help us
maintain the Funds' durations within our preferred strategic range, we also
selectively sold holdings with shorter durations, including pre-refunded bonds,
in all of the Funds.
While municipal issuance in Michigan during this six-month period was basically
the same as that of the same period a year earlier, Ohio saw a 57% increase in
supply for this period, compared with a 14% increase nationwide. Since both
Michigan and Ohio are relatively high-quality states, much of the new supply was
highly rated and/or insured, and the majority of our new purchases for the
Michigan Funds were insured credits.
In the Michigan Funds, our purchases focused on health care, water and sewer,
and appropriation bonds. In NUM, we also added zero coupon bonds, which were put
into place to both lengthen fund duration and increase distributable income. In
addition to lower-rated health care credits, the Ohio Funds also purchased
higher education bonds.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
4
During this period, we purchased inverse floating rate trusts, a type of
derivative financial instrument, in NMP and all four of the Ohio Funds. The
inverse floaters had the benefit of increasing the Funds' distributable income
and bringing their durations closer to our preferred strategic target. In past
shareholder reports, we have also discussed the use of hedging as part of our
duration management strategies. As of January 31, 2007, NZW continued to use
forward interest rate swaps, which were put in place as part of our yield curve
strategies. In addition, NVJ continued to use both forward interest rate swaps
for yield curve management and U.S. Treasury note futures contracts to help
bring the Fund's duration closer to our preferred strategic target.
HOW DID THE FUNDS PERFORM?
Individual results for these Michigan and Ohio Funds, as well as relevant index
and peer group information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 1/31/07
MICHIGAN FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NUM 3.69% 4.29% 6.70% 6.43%
--------------------------------------------------------------------------------
NMP 3.32% 4.41% 6.21% 6.60%
--------------------------------------------------------------------------------
NZW 3.73% 4.79% 7.55% NA
--------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index2 3.06% 4.29% 5.11% 5.71%
--------------------------------------------------------------------------------
Lipper Michigan
Municipal Debt Funds
Average3 3.87% 5.12% 6.60% 6.23%
--------------------------------------------------------------------------------
OHIO FUNDS
--------------------------------------------------------------------------------
NUO 3.33% 4.25% 6.36% 6.32%
--------------------------------------------------------------------------------
NXI 3.44% 4.41% 7.17% NA
--------------------------------------------------------------------------------
NBJ 3.55% 4.32% 7.25% NA
--------------------------------------------------------------------------------
NVJ 3.48% 4.14% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index2 3.06% 4.29% 5.11% 5.71%
--------------------------------------------------------------------------------
Lipper Other States
Municipal Debt Funds
Average4 3.75% 4.98% 6.96% 6.57%
--------------------------------------------------------------------------------
*Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
2 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 Brothers Municipal Bond Index do not reflect
any expenses.
3 The Lipper Michigan Municipal Debt Funds category average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 7; 1 year, 7; 5 years, 5; and 10 years, 4. Fund and
Lipper returns assume reinvestment of dividends.
4 The Lipper Other State Municipal Debt Funds category average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 46; 1 year, 46; 5 years, 27; and 10 years, 18. Fund
and Lipper returns assume reinvestment of dividends.
5
For the six months ended January 31, 2007, the cumulative returns on net asset
value (NAV) for all of the Michigan and Ohio Funds outperformed the return on
the Lehman Brothers Municipal Bond Index. All of the Michigan Funds trailed the
average return for the Lipper Michigan peer group. For the Ohio Funds, all four
Funds lagged the return of Lipper Other States peer group average. Shareholders
of the Ohio Funds should note that the performance of the Lipper Other States
category represents the overall average of returns for funds from 10 different
states with a wide variety of municipal market conditions, making direct
comparisons less meaningful.
Factors that influenced the Funds' returns during this period included duration
management, allocations to lower-rated credits (or credit risk), sector
weightings, advance refunding activity,5 and the use of financial leverage.
As the yield curve continued to flatten over the course of this period, bonds
with shorter maturities generally underperformed longer bonds. Overall, the
Funds were well positioned in terms of duration, with limited exposure to the
shortest maturities and good exposure to those parts of the yield curve that
performed best during this period. However, the durations of NMP and NVJ were
shorter than our preferred strategic target. As previously mentioned, we worked
to address this situation by purchasing inverse floaters for NMP and maintaining
the hedge on NVJ during this period.
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, all of the Funds benefited from their
allocations of lower-quality credits. The performance of this sector was largely
the result of investor demand for the higher yields typically associated with
lower-quality bonds, which drove up their value. In particular, NZW's overall
heavier weighting in lower-rated securities helped its performance, while NMP
and NUO had the smallest exposures to lower credit quality categories among
these Funds, detracting from their six-month performance.
Among the lower-rated holdings making contributions to the Funds' total returns
for this period were health care (including hospitals) credits and industrial
development revenue bonds, which ranked as the top performing revenue sectors in
the Lehman Brothers Municipal Bond Index. While tobacco bonds also performed
well during this period as their credit spreads narrowed, only NVJ had a large
enough exposure (4%) to this sector
5 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
6
to significantly benefit from the performance of these bonds. NBJ, NUO, and NXI
each allocated just over 1% of their portfolios to tobacco bonds, while the
Michigan Funds did not hold any of these bonds. In the Ohio Funds, exposure to
the housing sector was also a positive contributor, as was the Funds'
underexposure to state-issued general obligation bonds, which underperformed for
the period.
In the Michigan Funds, we continued to see positive contributions from advance
refunding activity, which benefited these three Funds through price appreciation
and enhanced credit quality. However, the Michigan and Ohio Funds' holdings of
older, previously pre-refunded bonds tended to underperform the general
municipal market, due primarily to their shorter effective maturities and higher
credit quality. While we continue to look for opportunities to trim the Funds'
positions in these older pre-refunded bonds, we have taken a measured approach
to selling these holdings due to their higher embedded yields.
Another factor in the six-month performance of these Funds, especially relative
to that of the unleveraged Lehman Brothers Municipal Bond Index, was the use of
financial leverage. While leverage can add volatility to a Fund's NAV and share
price, this strategy can also provide opportunities for additional income and
total return for common shareholders. The Funds' leveraging strategy positively
impacted their results over this period.
7
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. While the
Funds' leveraging strategy continued to provide incremental income, the extent
of this benefit was reduced during this period due to higher short-term interest
rates, which increased the Funds' borrowing costs. The Funds' income streams
were also impacted as the proceeds from older, higher-yielding bonds that
matured or were called were reinvested into bonds currently available in the
market, which generally offered lower yields. These factors resulted in one
monthly dividend reduction in NUM, NVJ , NXI, and NZW, and two in NBJ and NUO
over the six-month period ended January 31, 2007. The dividend of NMP remained
stable during this period.
Due to normal portfolio activity, common shareholders of the Funds received
capital gains and net ordinary income distributions at the end of December 2006,
as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NUM $0.0734 --
--------------------------------------------------------------------------------
NMP $0.0926 --
--------------------------------------------------------------------------------
NZW $0.0078 --
--------------------------------------------------------------------------------
NUO $0.0414 $0.0007
--------------------------------------------------------------------------------
NXI $0.0311 --
--------------------------------------------------------------------------------
NBJ $0.0435 $0.0004
--------------------------------------------------------------------------------
NVJ $0.0283 $0.0073
--------------------------------------------------------------------------------
These distributions, which were generated by bond calls and the sale of
appreciated securities, had a slight negative impact on the Funds' earning power
per common share and were a minor factor in the per share dividend reductions
noted above.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
8
investment income as dividends to shareholders. As of January 31, 2007, NUM, NMP
and NZW had positive UNII balances for both financial statement and, based on
our best estimates, for tax purposes. All of the Ohio Funds had negative UNII
balances for financial statement purposes and positive UNII balances, based on
our best estimates, for 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:
1/31/07 6-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NUM -3.92% -5.06%
--------------------------------------------------------------------------------
NMP -2.47% -2.47%
--------------------------------------------------------------------------------
NZW +1.46% +2.76%
--------------------------------------------------------------------------------
NUO -2.98% -2.84%
--------------------------------------------------------------------------------
NXI -0.33% -1.88%
--------------------------------------------------------------------------------
NBJ -3.41% -2.71%
--------------------------------------------------------------------------------
NVJ -1.97% -3.15%
--------------------------------------------------------------------------------
9
Nuveen Michigan Quality Income Municipal Fund, Inc.
NUM
Performance
OVERVIEW As of January 31, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 85%
AA 7%
A 3%
BBB 4%
BB or Lower 1%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.0685
Mar 0.065
Apr 0.065
May 0.065
Jun 0.062
Jul 0.062
Aug 0.062
Sep 0.059
Oct 0.059
Nov 0.059
Dec 0.059
Jan 0.059
Line Chart:
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
2/01/06 15.29
15.18
15.28
15.27
15.3
15.49
15.29
15.18
15.12
15.12
15.1401
15.28
15.29
15.21
15.31
15.21
15.42
15.41
15.53
15.5
15.58
15.45
15.47
15.54
15.51
15.63
15.65
15.5
15.5
15.6
15.57
15.5
15.53
15.41
15.35
15.27
15.28
15.15
15.25
15.2
15.15
15.11
15.2
15.15
15.25
15.17
15.1
15.1
14.92
14.9
14.9
14.85
14.99
14.85
14.8028
14.77
14.7
14.8
14.6
14.74
14.72
14.72
14.81
15.01
15.26
15.22
15.1
15.25
15.18
15.43
15.13
15
14.97
15.05
15.03
14.96
14.75
14.85
14.89
14.88
14.81
14.87
14.8
14.77
14.96
15
14.81
14.8
14.63
14.75
14.76
14.59
14.46
14.41
14.41
14.47
14.49
14.44
14.5
14.48
14.24
14.2
14.23
14.34
14.35
14.29
14.48
14.58
14.63
14.69
14.5
14.4499
14.42
14.38
14.38
14.38
14.26
14.25
14.31
14.25
14.2
14.16
14.25
14.26
14.35
14.41
14.47
14.41
14.47
14.49
14.47
14.5
14.66
14.74
14.65
14.51
14.51
14.68
14.73
14.79
14.8
14.7401
14.76
14.75
14.74
14.74
14.86
14.93
14.9
14.95
14.9
14.71
14.78
14.97
14.82
14.77
14.73
14.73
14.67
14.69
14.69
14.67
14.79
14.77
14.78
14.75
14.88
14.82
14.76
14.76
14.77
14.81
14.83
14.77
14.8
14.7
14.78
14.65
14.65
14.57
14.64
14.65
14.57
14.61
14.61
14.58
14.54
14.54
14.6
14.54
14.55
14.52
14.55
14.63
14.53
14.49
14.6058
14.67
14.61
14.73
14.68
14.65
14.63
14.67
14.68
14.7
14.66
14.64
14.69
14.63
14.67
14.76
14.8101
14.87
14.86
14.84
14.83
14.81
14.81
14.89
14.97
14.89
14.76
14.67
14.63
14.59
14.55
14.55
14.5
14.48
14.4901
14.47
14.53
14.53
14.51
14.53
14.54
14.65
14.64
14.63
14.55
14.58
14.62
14.57
14.64
14.58
14.66
14.6664
14.75
14.731
14.75
14.7
14.68
1/31/07 14.7
FUND SNAPSHOT
------------------------------------
Common Share Price $14.70
------------------------------------
Common Share
Net Asset Value $15.30
------------------------------------
Premium/(Discount) to NAV -3.92%
------------------------------------
Market Yield 4.82%
------------------------------------
Taxable-Equivalent Yield1 6.97%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $179,235
------------------------------------
Average Effective
Maturity on Securities (Years) 14.05
------------------------------------
Leverage-Adjusted Duration 8.16
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.03% 3.69%
------------------------------------
1-Year 1.78% 4.29%
------------------------------------
5-Year 5.35% 6.70%
------------------------------------
10-Year 5.81% 6.43%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 28.9%
------------------------------------
U.S. Guaranteed 27.4%
------------------------------------
Tax Obligation/Limited 11.6%
------------------------------------
Health Care 8.6%
------------------------------------
Utilities 8.2%
------------------------------------
Water and Sewer 6.3%
------------------------------------
Other 9.0%
------------------------------------
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 30.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0734 per share.
10
Nuveen Michigan Premium Income Municipal Fund, Inc.
NMP
Performance
OVERVIEW As of January 31, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 79%
AA 14%
A 4%
BBB 2%
BB or Lower 1%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.0665
Mar 0.063
Apr 0.063
May 0.063
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Line Chart:
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
2/01/06 14.99
15.1
15.07
15.15
15.06
15.17
15.15
15.16
15.3
15.14
15.06
15.04
15.04
14.96
15.11
15.12
15.1008
15.11
15.4
15.49
15.5
15.37
15.21
14.6
14.66
14.74
14.73
14.8
15.05
15.29
15.03
15.01
14.8
14.94
14.85
14.8
15
14.95
14.95
14.8
14.69
14.62
14.61
14.5
14.74
14.46
14.45
14.4
14.39
14.29
14.43
14.38
14.34
14.2
14.3
14.3
14.55
14.25
14.48
14.6
14.86
14.86
14.82
14.8501
14.87
14.76
14.83
14.9
14.62
14.95
14.8
14.94
14.7
14.7
14.98
14.85
14.9
14.88
14.85
14.9
15.08
14.82
14.8
14.92
15.15
15.11
14.95
14.7
14.61
14.7
14.73
14.7
14.7
14.58
14.46
14.5
14.43
14.32
14.42
14.2
14.26
14.13
14.24
14.17
14.45
14.66
14.8
14.75
14.79
14.84
14.88
14.84
14.72
14.5
14.45
14.5
14.5
14.45
14.25
14.19
14.15
14.11
14.1
14.05
14.2
14.27
14.32
14.35
14.39
14.48
14.39
14.21
14.22
14.28
14.26
14.28
14.37
14.48
14.42
14.42
14.43
14.53
14.52
14.71
14.7
14.7
14.7
14.68
14.7
14.68
14.74
14.66
14.58
14.7
14.61
14.69
14.67
14.67
14.67
14.79
14.72
14.6
14.57
14.63
14.63
14.69
15
14.72
14.8
14.8
14.85
14.94
14.95
14.95
14.95
14.91
14.84
14.75
14.6
14.6
14.61
14.6001
14.65
14.8
14.9
14.85
14.76
14.79
14.8
14.85
14.8509
14.89
14.89
14.82
14.72
14.77
14.86
15
14.96
14.98
14.9
15
14.97
14.9794
14.86
14.91
14.87
14.93
14.9
14.83
14.895
14.85
14.86
14.97
14.9994
15.15
15.06
15.1
15.21
15.06
15.08
14.92
14.83
14.8
14.75
14.7
14.81
14.8
14.8
15.0599
14.91
14.86
14.75
14.75
14.7801
15.05
15.04
14.95
14.9701
14.96
14.95
14.91
14.9
14.86
14.86
14.83
14.75
14.7
14.7
14.66
14.66
14.7103
14.64
1/31/07 14.59
FUND SNAPSHOT
------------------------------------
Common Share Price $14.59
------------------------------------
Common Share
Net Asset Value $14.96
------------------------------------
Premium/(Discount) to NAV -2.47%
------------------------------------
Market Yield 4.98%
------------------------------------
Taxable-Equivalent Yield1 7.20%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $115,928
------------------------------------
Average Effective
Maturity on Securities (Years) 15.21
------------------------------------
Leverage-Adjusted Duration 7.18
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.40% 3.32%
------------------------------------
1-Year 3.67% 4.41%
------------------------------------
5-Year 6.70% 6.21%
------------------------------------
10-Year 7.83% 6.60%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 27.5%
------------------------------------
U.S. Guaranteed 20.9%
------------------------------------
Tax Obligation/Limited 13.5%
------------------------------------
Water and Sewer 12.6%
------------------------------------
Utilities 9.2%
------------------------------------
Health Care 7.2%
------------------------------------
Other 9.1%
------------------------------------
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 30.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0926 per share.
11
Nuveen Michigan Dividend Advantage Municipal Fund
NZW
Performance
OVERVIEW As of January 31, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 74%
AA 9%
A 7%
BBB 6%
BB or Lower 2%
N/R 2%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.0745
Mar 0.0705
Apr 0.0705
May 0.0705
Jun 0.0675
Jul 0.0675
Aug 0.0675
Sep 0.0645
Oct 0.0645
Nov 0.0645
Dec 0.0645
Jan 0.0645
Line Chart:
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
2/01/06 15.72
15.6
15.95
15.95
15.93
15.93
16.4
16.15
16.15
16
16
16.25
16.2
16.12
16.15
16.15
16.11
16.15
16.15
16.22
16.59
16.25
16.26
16.1
16
16
16
15.97
15.85
15.85
15.85
15.86
15.86
15.68
15.42
15.32
15.32
15.31
15.3199
15.5
15.5
15.73
15.73
15.65
15.76
15.76
15.76
15.76
15.8
15.8
15.8
15.9
16
16
16
16
15.9
16
16.09
16.09
16.06
16.06
16.1
16
15.9
15.9
16
15.88
15.57
15.57
15.49
15.4
15.4
15.47
15.36
15.19
15.25
15.3
15.25
15.29
15.39
15.39
15.39
15.53
15.6
15.65
15.77
15.55
15.65
15.4108
15.4108
15.4108
15.45
15.45
15.45
15.36
15.36
15.26
15.4
15.44
15.4
15.4
15.32
15.5
15.5
15.59
15.59
15.52
15.58
15.48
15.48
15.55
15.58
15.5
15.37
15.45
15.61
15.6
15.57
15.5
15.64
15.64
15.7
15.8
15.8
15.81
15.92
15.85
15.84
15.84
15.6
15.6699
15.524
15.524
15.68
15.64
15.912
15.912
15.78
15.78
15.85
15.95
15.84
15.8501
15.85
15.97
16
16
15.9999
15.9999
15.9585
15.88
15.88
15.88
15.85
15.85
15.78
15.9
15.9
15.85
15.81
15.85
15.95
15.92
16.09
15.85
15.92
15.78
15.84
15.84
15.75
15.65
15.6
15.55
15.55
15.44
15.44
15.55
15.8
15.79
15.8
15.8
15.8
15.75
15.75
15.75
15.5
15.5
15.44
15.44
15.5
15.55
15.33
15.38
15.39
15.39
15.39
15.43
15.5
15.78
15.78
15.36
15.36
15.32
15.3301
15.33
15.26
15.3
15.25
15.25
15.277
15.24
15.33
15.33
15.39
15.38
15.39
15.46
15.55
15.59
15.76
15.6
15.53
15.53
15.46
15.37
15.5
15.67
15.38
15.29
15.56
15.54
15.54
15.54
15.63
15.7
15.7
15.73
15.83
15.83
15.66
15.64
15.64
15.64
15.64
15.64
15.46
15.46
15.44
15.44
15.31
15.33
15.26
1/31/07 15.32
FUND SNAPSHOT
------------------------------------
Common Share Price $15.32
------------------------------------
Common Share
Net Asset Value $15.10
------------------------------------
Premium/(Discount) to NAV 1.46%
------------------------------------
Market Yield 5.05%
------------------------------------
Taxable-Equivalent Yield1 7.30%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $31,178
------------------------------------
Average Effective
Maturity on Securities (Years) 15.67
------------------------------------
Leverage-Adjusted Duration 7.48
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -0.59% 3.73%
------------------------------------
1-Year 3.32% 4.79%
------------------------------------
5-Year 7.14% 7.55%
------------------------------------
Since
Inception 6.16% 6.86%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 25.8%
------------------------------------
Tax Obligation/General 19.2%
------------------------------------
Health Care 11.7%
------------------------------------
Water and Sewer 11.6%
------------------------------------
Utilities 10.4%
------------------------------------
Tax Obligation/Limited 8.3%
------------------------------------
Other 13.0%
------------------------------------
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 30.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0078 per share.
12
Nuveen Ohio Quality Income Municipal Fund, Inc.
NUO
Performance
OVERVIEW As of January 31, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 75%
AA 14%
A 6%
BBB 4%
N/R 1%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.073
Mar 0.069
Apr 0.069
May 0.069
Jun 0.0655
Jul 0.0655
Aug 0.0655
Sep 0.0625
Oct 0.0625
Nov 0.0625
Dec 0.0595
Jan 0.0595
Line Chart:
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
2/01/06 16.9
16.88
16.8
17.03
17.03
17.09
17.1
17.1
17.01
16.87
16.89
16.85
17.15
17.06
16.9
16.95
17.12
16.99
16.95
17
16.77
16.35
16.6999
16.51
16.52
16.54
16.38
16.35
16.38
16.39
16.47
16.5
16.4
16.44
16.25
16.35
16.27
16.25
16.36
16.35
16.29
16.37
16.6
16.57
16.47
16.18
16.1
16
16.08
16.2
16.09
16.08
16.19
16.06
16.06
16.11
16.2
16.219
16.19
16.24
16.27
16.27
16.28
16.3
16.24
16.11
16.1
16.08
16.05
15.98
15.9699
15.6
15.57
15.88
15.76
15.8501
16.1
16.11
16.2
16.2
16.25
16.3001
16.14
16.24
16.04
16.15
16.11
16.12
16
15.81
15.8
15.71
15.56
15.45
15.47
15.43
15.3
15.1
15.13
15.12
15.04
15.05
15.03
14.97
15.06
15.22
15.28
15.27
15.35
15.37
15.34
15.25
15.06
15.31
15.31
15.26
15.2
15.33
15.34
15.66
15.65
15.77
15.72
15.77
15.9
15.83
15.8401
15.92
15.92
16.13
15.99
16.0499
16.15
16.08
16.03
16
16
15.99
16.15
15.97
16.03
16.05
16
16.06
16.04
16.03
16.14
16.18
16.15
16.2199
15.91
15.85
15.77
15.99
15.97
15.91
15.73
15.56
15.55
15.52
15.48
15.48
15.46
15.56
15.52
15.5
15.71
15.62
15.59
15.59
15.66
15.59
15.55
15.5601
15.56
15.58
15.5301
15.54
15.54
15.61
15.62
15.64
15.62
15.62
15.65
15.67
15.68
15.73
15.64
15.65
15.61
15.79
15.9
15.94
15.92
15.95
15.89
15.95
15.91
15.97
15.86
15.88
15.93
15.9
15.81
15.87
15.71
15.67
15.6
15.58
15.65
15.77
15.72
15.8
15.86
15.95
15.97
15.96
15.97
15.93
15.91
15.81
15.72
15.7
15.61
15.74
15.74
15.73
15.68
15.75
15.78
15.69
15.65
15.65
15.9
15.85
15.86
15.89
15.9
15.91
15.86
15.89
15.82
15.75
15.74
15.73
15.71
15.7799
15.81
15.75
15.71
15.74
15.67
1/31/07 15.65
FUND SNAPSHOT
------------------------------------
Common Share Price $15.65
------------------------------------
Common Share
Net Asset Value $16.13
------------------------------------
Premium/(Discount) to NAV -2.98%
------------------------------------
Market Yield 4.56%
------------------------------------
Taxable-Equivalent Yield1 6.74%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $157,194
------------------------------------
Average Effective
Maturity on Securities (Years) 14.53
------------------------------------
Leverage-Adjusted Duration 7.57
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.48% 3.33%
------------------------------------
1-Year -3.26% 4.25%
------------------------------------
5-Year 3.79% 6.36%
------------------------------------
10-Year 5.34% 6.32%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 25.5%
------------------------------------
Tax Obligation/General 22.8%
------------------------------------
Health Care 12.0%
------------------------------------
Education and Civic
Organizations 11.7%
------------------------------------
Tax Obligation/Limited 7.0%
------------------------------------
Utilities 4.7%
------------------------------------
Housing/Multifamily 4.3%
------------------------------------
Other 12.0%
------------------------------------
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 32.3%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2006 of $0.0421 per share.
13
Nuveen Ohio Dividend Advantage Municipal Fund
NXI
Performance
OVERVIEW As of January 31, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 68%
AA 17%
A 8%
BBB 6%
N/R 1%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.071
Mar 0.0675
Apr 0.0675
May 0.0675
Jun 0.0635
Jul 0.0635
Aug 0.0635
Sep 0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Line Chart:
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
2/01/06 16.85
16.8501
16.55
16.4
16.24
16.14
16.13
16.4
16.3
16.6
16.46
16.5
16.77
16.56
16.7
16.48
16.75
16.701
16.84
17
16.79
16.6
16.35
16.35
16.35
16.35
16.24
16.3
16.2001
16.21
16.3
16.3
16.3
16.23
16.21
16.23
16
16.49
16.3
16.36
16.6
16.4
16.2
16.15
15.96
16.03
15.9708
16.01
16.22
16.08
16.229
15.86
15.83
15.93
15.88
15.85
16.08
16.1
15.59
15.67
15.8
15.8
15.62
15.68
15.55
15.6
15.6
15.71
15.54
15.54
15.32
15.45
15.6
15.5
15.35
15.6
15.6
15.65
15.65
15.42
15.49
15.66
15.33
15.3
15.46
15.52
15.52
15.36
15.28
15.28
15.23
15.22
15.01
15.07
14.96
14.95
14.9
14.66
14.6
14.6
14.48
14.48
14.33
14.35
14.41
14.38
14.44
14.35
14.45
14.5001
14.47
14.6
14.41
14.57
14.48
14.4
14.33
14.4
14.4
14.6999
14.5
14.61
14.75
14.85
15.1
15.05
15.12
15.22
15.36
15.42
15.39
15.4
15.4
15.45
15.6
15.59
15.49
15.79
15.95
15.35
14.95
15.12
14.92
14.9
14.94
15.15
14.89
14.82
14.89
14.98
14.89
14.7
14.6
14.57
14.5799
14.68
14.61
14.63
14.74
14.8487
14.75
14.87
14.94
15.1574
14.96
14.93
15.06
15.02
15.06
15.06
15.02
15.23
15.15
15.31
15
15
15.08
15
15.09
15.01
15.02
14.9999
15.05
15.06
14.8
14.73
14.77
14.89
14.87
14.93
14.8852
15.13
15.24
15.24
15.19
15.12
15.14
15.01
15.01
14.97
15.06
14.91
14.82
14.74
14.7
14.79
14.7603
14.74
14.78
14.76
14.9
14.84
14.828
14.94
14.98
15.06
15
15
15.03
15.06
15.11
14.88
14.9
15
14.95
14.91
14.91
14.99
14.99
14.95
14.92
14.77
14.81
14.81
14.8
14.76
14.68
14.72
14.73
14.79
14.84
14.75
14.83
14.7
14.7897
14.76
14.8
14.8
14.96
14.86
14.89
15
15.09
1/31/07 15.09
FUND SNAPSHOT
------------------------------------
Common Share Price $15.09
------------------------------------
Common Share
Net Asset Value $15.14
------------------------------------
Premium/(Discount) to NAV -0.33%
------------------------------------
Market Yield 4.81%
------------------------------------
Taxable-Equivalent Yield1 7.10%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $64,253
------------------------------------
Average Effective
Maturity on Securities (Years) 14.04
------------------------------------
Leverage-Adjusted Duration 7.26
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 2.95% 3.44%
------------------------------------
1-Year -8.39% 4.41%
------------------------------------
5-Year 5.88% 7.17%
------------------------------------
Since
Inception 5.99% 7.08%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 29.7%
------------------------------------
Tax Obligation/General 18.0%
------------------------------------
Education and Civic
Organizations 15.5%
------------------------------------
Tax Obligation/Limited 8.0%
------------------------------------
Health Care 7.5%
------------------------------------
Utilities 6.0%
------------------------------------
Housing/Multifamily 3.9%
------------------------------------
Other 11.4%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.3%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0311 per share.
14
Nuveen Ohio Dividend Advantage Municipal Fund 2
NBJ
Performance
OVERVIEW As of January 31, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 71%
AA 12%
A 9%
BBB 7%
N/R 1%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.0665
Mar 0.0665
Apr 0.0665
May 0.0665
Jun 0.062
Jul 0.062
Aug 0.062
Sep 0.059
Oct 0.059
Nov 0.059
Dec 0.0565
Jan 0.0565
Line Chart:
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
2/01/06 16.45
16.4
16.3
16.06
16.06
16.16
16.06
16.21
16.25
16.16
16.16
16.25
16.16
16.12
16.12
15.72
15.76
15.77
15.69
15.82
15.53
15.1
15.2
15.35
15.25
15.46
15.5
15.08
15.25
15.25
15.57
15.45
15.45
15.25
15.6
15.2
15.3
15.17
15.2
15.35
15.21
15.11
15.26
15.26
15.25
15.2
15.05
15.25
15.6
15.45
15.32
15.4001
15.25
15.5
15.25
15.5
15.5
15.51
15.79
15.65
15.46
15.46
15.55
15.65
15.4
15.09
15.18
15.3228
15.8
15.35
15.25
15.44
15.25
15.45
15.55
15.55
15.5
15.05
15.35
15.35
15.6
15.4
15.4
15.28
15.35
15.15
15.16
15.15
14.95
14.95
14.83
14.83
14.86
14.7
14.71
14.49
14.16
14.2
14.3
14.33
14.7
14.7
14.3
14.27
14.34
14.3
14.3
14.17
14.09
14.01
14.12
14.13
14.1
14.14
14.1
14.1
14.06
14.15
14.22
14.45
14.45
14.6
14.58
14.7
14.7
14.7
14.73
14.95
14.8999
14.98
14.98
14.9
14.9
14.7
14.7
15
14.9
15
15.3
15.25
15.25
15.07
15.01
15.04
14.99
14.9
14.72
14.88
15.12
15.1
15.15
14.81
14.7
14.69
14.92
14.91
14.83
14.7
14.78
14.63
14.61
14.58
15
15
15.3624
15.13
15.09
15.09
14.9943
14.9943
14.93
14.83
14.77
14.77
14.66
14.65
14.5
14.4
14.48
14.59
14.63
14.6
14.67
14.67
14.67
14.67
14.54
14.52
14.61
14.8
14.75
14.78
14.81
14.82
14.67
14.75
14.7
14.66
14.66
14.71
14.62
14.69
14.62
14.6606
14.51
14.55
14.58
14.58
14.58
14.6
14.5
14.51
14.49
14.53
14.47
14.5
14.57
14.55
14.65
14.61
14.46
14.49
14.45
14.48
14.45
14.55
14.52
14.58
14.49
14.47
14.43
14.41
14.54
14.54
14.5508
14.5401
14.4801
14.55
14.48
14.36
14.39
14.3
14.25
14.28
14.28
14.29
14.33
14.35
14.39
14.35
14.23
14.26
14.4
1/31/07 14.43
FUND SNAPSHOT
------------------------------------
Common Share Price $14.43
------------------------------------
Common Share
Net Asset Value $14.94
------------------------------------
Premium/(Discount) to NAV -3.41%
------------------------------------
Market Yield 4.70%
------------------------------------
Taxable-Equivalent Yield1 6.94%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $46,643
------------------------------------
Average Effective
Maturity on Securities (Years) 14.69
------------------------------------
Leverage-Adjusted Duration 7.68
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 0.83% 3.55%
------------------------------------
1-Year -7.56% 4.32%
------------------------------------
5-Year 5.12% 7.25%
------------------------------------
Since
Inception 5.05% 6.71%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 26.0%
------------------------------------
Tax Obligation/General 21.5%
------------------------------------
Health Care 15.5%
------------------------------------
Tax Obligation/Limited 10.0%
------------------------------------
Education and Civic
Organizations 9.5%
------------------------------------
Utilities 6.0%
------------------------------------
Consumer Staples 5.9%
------------------------------------
Other 5.6%
------------------------------------
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 32.3%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2006 of $0.0439 per share.
15
Nuveen Ohio Dividend Advantage Municipal Fund 3
NVJ
Performance
OVERVIEW As of January 31, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 70%
AA 11%
A 11%
BBB 8%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.0655
Mar 0.0655
Apr 0.0655
May 0.0655
Jun 0.0615
Jul 0.0615
Aug 0.0615
Sep 0.0595
Oct 0.0595
Nov 0.0595
Dec 0.0595
Jan 0.0595
Line Chart:
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
2/01/06 15.83
15.85
15.8
16
15.83
15.9
15.8101
15.8101
15.81
15.8
15.9
16
15.91
15.8
16
15.44
15.58
15.44
15.35
15.55
15.2508
15.35
15.1
15.41
15.09
15.3
15.35
15.35
15.12
15.12
15.16
15.18
15.18
15.09
15.54
15.45
15.45
15.45
15.55
15.55
15.76
15.65
15.85
15.85
15.85
15.85
15.65
15.75
15.6
15.4
15.38
15.75
15.5999
15.5
15.57
15.67
15.77
15.77
15.8
15.8
16.05
16.05
16.05
16.05
16.05
15.85
15.83
15.83
15.83
15.7
15.97
15.87
15.9
15.9
15.65
15.5
15.55
15.29
15.29
15.19
15.35
15.4
15.3
15.25
15.33
15.4
15.45
15.08
15.05
15.06
15.01
14.85
14.8
14.68
14.5
14.49
14.49
14.27
14.36
14.4
14.46
14.34
13.9
13.95
14.33
14.38
14.37
14.09
14.14
14.02
14.03
14.05
14
14.05
14.05
14.1
14.11
14.12
14.12
14.1
14.12
14.27
14.33
14.43
14.67
14.75
14.69
14.69
14.69
14.7
14.79
14.87
14.87
14.92
14.78
14.96
14.68
14.94
15.06
15.06
15.06
14.95
15.02
15.08
14.95
14.95
14.95
15.04
15.0301
15.36
15.29
15.0196
15
15.01
14.9
14.96
14.84
14.85
14.85
14.86
14.86
14.73
14.73
14.75
14.72
14.72
14.77
14.81
14.69
14.69
14.69
14.79
14.82
14.82
14.78
14.68
14.9
14.9
14.82
14.77
14.76
14.75
14.72
14.7
14.7
14.72
14.72
14.6899
14.93
14.79
14.88
14.86
14.93
14.99
14.85
14.81
14.79
14.82
14.83
14.9
14.8
14.8699
14.8
14.88
14.93
14.96
14.96
14.92
14.92
14.88
14.83
14.84
14.9
14.9
14.95
14.95
14.83
14.89
14.91
14.89
14.98
14.9
14.88
14.88
14.86
14.85
14.89
14.86
14.85
14.91
14.88
14.64
14.64
14.64
14.64
14.67
14.65
14.69
14.69
14.68
14.76
14.72
14.65
14.74
14.73
14.78
14.87
14.84
14.84
14.76
14.8
14.8501
14.89
1/31/07 14.89
FUND SNAPSHOT
------------------------------------
Common Share Price $14.89
------------------------------------
Common Share
Net Asset Value $15.19
------------------------------------
Premium/(Discount) to NAV -1.97%
------------------------------------
Market Yield 4.80%
------------------------------------
Taxable-Equivalent Yield1 7.09%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $32,780
------------------------------------
Average Effective
Maturity on Securities (Years) 13.56
------------------------------------
Leverage-Adjusted Duration 7.61
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.66% 3.48%
------------------------------------
1-Year -1.02% 4.14%
------------------------------------
Since
Inception 5.64% 7.05%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 31.8%
------------------------------------
Tax Obligation/General 22.4%
------------------------------------
Tax Obligation/Limited 13.5%
------------------------------------
Health Care 8.9%
------------------------------------
Education and Civic
Organizations 6.5%
------------------------------------
Consumer Staples 4.3%
------------------------------------
Other 12.6%
------------------------------------
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 32.3%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2006, of $0.0356 per share.
16
Shareholder
MEETING REPORT
The shareholder meeting was held in the offices of Nuveen
Investments on November 14, 2006.
NUM NMP NZW
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Robert P. Bremner
For 10,819,143 -- 7,140,205 -- 2,018,290 --
Withhold 169,193 -- 124,377 -- 29,990 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,988,336 -- 7,264,582 -- 2,048,280 --
====================================================================================================================================
Lawrence H. Brown
For 10,824,472 -- 7,130,859 -- 2,010,440 --
Withhold 163,864 -- 133,723 -- 37,840 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,988,336 -- 7,264,582 -- 2,048,280 --
====================================================================================================================================
Jack B. Evans
For 10,834,515 -- 7,144,314 -- 2,018,290 --
Withhold 153,821 -- 120,268 -- 29,990 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,988,336 -- 7,264,582 -- 2,048,280 --
====================================================================================================================================
William C. Hunter
For 10,841,215 -- 7,145,350 -- 2,016,871 --
Withhold 147,121 -- 119,232 -- 31,409 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,988,336 -- 7,264,582 -- 2,048,280 --
====================================================================================================================================
David J. Kundert
For 10,831,693 -- 7,144,314 -- 2,017,691 --
Withhold 156,643 -- 120,268 -- 30,589 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,988,336 -- 7,264,582 -- 2,048,280 --
====================================================================================================================================
William J. Schneider
For -- 3,601 -- 2,206 -- 613
Withhold -- 22 -- 10 -- 24
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,623 -- 2,216 -- 637
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,601 -- 2,206 -- 613
Withhold -- 22 -- 10 -- 24
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,623 -- 2,216 -- 637
====================================================================================================================================
Judith M. Stockdale
For 10,832,073 -- 7,141,164 -- 2,018,291 --
Withhold 156,263 -- 123,418 -- 29,989 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,988,336 -- 7,264,582 -- 2,048,280 --
====================================================================================================================================
Eugene S. Sunshine
For 10,840,256 -- 7,144,786 -- 2,016,870 --
Withhold 148,080 -- 119,796 -- 31,410 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,988,336 -- 7,264,582 -- 2,048,280 --
====================================================================================================================================
17
Shareholder
MEETING REPORT (continued)
NUO NXI NBJ
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Robert P. Bremner
For 8,902,959 -- 4,096,606 -- 3,019,575 --
Withhold 148,891 -- 32,181 -- 32,859 --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,051,850 -- 4,128,787 -- 3,052,434 --
====================================================================================================================================
Lawrence H. Brown
For 8,887,448 -- 4,096,475 -- 3,014,175 --
Withhold 164,402 -- 32,312 -- 38,259 --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,051,850 -- 4,128,787 -- 3,052,434 --
====================================================================================================================================
Jack B. Evans
For 8,906,329 -- 4,098,633 -- 3,017,656 --
Withhold 145,521 -- 30,154 -- 34,778 --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,051,850 -- 4,128,787 -- 3,052,434 --
====================================================================================================================================
William C. Hunter
For 8,904,887 -- 4,099,133 -- 3,016,656 --
Withhold 146,963 -- 29,654 -- 35,778 --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,051,850 -- 4,128,787 -- 3,052,434 --
====================================================================================================================================
David J. Kundert
For 8,905,333 -- 4,097,133 -- 3,007,221 --
Withhold 146,517 -- 31,654 -- 45,213 --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,051,850 -- 4,128,787 -- 3,052,434 --
====================================================================================================================================
William J. Schneider
For -- 2,898 -- 1,189 -- 935
Withhold -- 49 -- 23 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,947 -- 1,212 -- 935
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,898 -- 1,189 -- 935
Withhold -- 49 -- 23 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,947 -- 1,212 -- 935
====================================================================================================================================
Judith M. Stockdale
For 8,908,269 -- 4,097,737 -- 3,013,006 --
Withhold 143,581 -- 31,050 -- 39,428 --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,051,850 -- 4,128,787 -- 3,052,434 --
====================================================================================================================================
Eugene S. Sunshine
For 8,907,004 -- 4,099,133 -- 3,016,656 --
Withhold 144,846 -- 29,654 -- 35,778 --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,051,850 -- 4,128,787 -- 3,052,434 --
====================================================================================================================================
18
NVJ
------------------------------------------------------------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Robert P. Bremner
For 2,078,317 --
Withhold 22,978 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,101,295 --
====================================================================================================================================
Lawrence H. Brown
For 2,062,475 --
Withhold 38,820 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,101,295 --
====================================================================================================================================
Jack B. Evans
For 2,079,617 --
Withhold 21,678 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,101,295 --
====================================================================================================================================
William C. Hunter
For 2,076,577 --
Withhold 24,718 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,101,295 --
====================================================================================================================================
David J. Kundert
For 2,063,317 --
Withhold 37,978 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,101,295 --
====================================================================================================================================
William J. Schneider
For -- 658
Withhold -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 659
====================================================================================================================================
Timothy R. Schwertfeger
For -- 658
Withhold -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 659
====================================================================================================================================
Judith M. Stockdale
For 2,067,477 --
Withhold 33,818 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,101,295 --
====================================================================================================================================
Eugene S. Sunshine
For 2,077,617 --
Withhold 23,678 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,101,295 --
====================================================================================================================================
19
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of
INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.9% (4.6% OF TOTAL INVESTMENTS)
$ 700 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- $ 702,394
Charter School Revenue Bonds, Series 2005, 5.125%, 11/01/35
1,380 Ferris State College, Michigan, General Revenue Bonds, 4/08 at 100.00 AAA 1,395,028
Series 1998, 5.000%, 10/01/23 - AMBAC Insured
1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,800,743
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 1,565,565
Bonds, Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC
Insured (Alternative Minimum Tax)
1,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 1,043,910
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC
Insured (Alternative Minimum Tax)
1,115 Michigan Technological University, General Revenue Bonds, 10/13 at 100.00 AAA 1,175,623
Series 2004A, 5.000%, 10/01/22 - MBIA Insured
Wayne State University, Michigan, General Revenue Bonds,
Series 1999:
3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AAA 3,581,366
1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AAA 1,034,860
------------------------------------------------------------------------------------------------------------------------------------
11,810 Total Education and Civic Organizations 12,299,489
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.0% (8.6% OF TOTAL INVESTMENTS)
2,900 Dearborn Hospital Finance Authority, Michigan, Hospital 5/07 at 101.00 AAA 2,933,321
Revenue Bonds, Oakwood Obligated Group, Series 1995A,
5.875%, 11/15/25 - FGIC Insured
204 Michigan State Hospital Finance Authority, Collateralized Loan, No Opt. Call N/R 204,239
Detroit Medical Center, Series 2001, 7.360%, 3/01/07
2,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 2,723,193
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+ 1,043,610
Refunding Bonds, Memorial Healthcare Center Obligated
Group, Series 1999, 5.875%, 11/15/21
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 3,543,283
500 5.750%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 523,770
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 507,420
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/37
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 508,960
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
2,500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,611,025
Sparrow Obligated Group, Series 2005, 5.000%, 11/15/36 -
MBIA Insured
1,000 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 BBB- 1,047,380
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.375%, 6/01/26
5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 5,729,624
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
2,195 University of Michigan, Medical Service Plan Revenue Bonds, No Opt. Call AA+ 1,897,204
Series 1991, 0.000%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
22,884 Total Health Care 23,273,029
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.0% (2.0% OF TOTAL INVESTMENTS)
2,675 Michigan Housing Development Authority, FNMA Limited 12/20 at 101.00 AAA 2,916,018
Obligation Multifamily Housing Revenue Bonds, Parkview
Place Apartments, Series 2002A, 5.550%, 12/01/34
(Alternative Minimum Tax)
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,055 Michigan Housing Development Authority, Rental Housing 4/09 at 101.00 AAA $ 1,075,235
Revenue Bonds, Series 1999A, 5.300%, 10/01/37 -
MBIA Insured (Alternative Minimum Tax)
1,300 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA 1,345,487
Revenue Bonds, Series 2006D, 5.125%, 4/01/31 -
FSA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,030 Total Housing/Multifamily 5,336,740
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.5% (0.4% OF TOTAL INVESTMENTS)
1,000 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,030,680
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 1,032,820
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+ 202,700
Refunding Bonds, Porter Hills Presbyterian Village,
Series 1998, 5.375%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
1,200 Total Long-Term Care 1,235,520
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.0% (0.7% OF TOTAL INVESTMENTS)
1,750 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,789,778
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 43.4% (28.9% OF TOTAL INVESTMENTS)
1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA 1,041,100
Michigan, General Obligation Refunding Bonds, Series 2002,
5.000%, 5/01/25
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 2,601,125
3,200 5.000%, 5/01/29 5/11 at 100.00 AA 3,296,608
1,000 Belding School District, Ionia, Kent and Montcalm Counties, 5/08 at 100.00 AAA 1,010,190
Michigan, General Obligation Refunding Bonds, Series 1998,
5.000%, 5/01/26 - AMBAC Insured
1,200 Birmingham, Michigan, General Obligation Bonds, 10/12 at 100.50 AAA 1,267,224
Series 2002, 5.000%, 10/01/20
1,320 Bridgeport Spaulding Community School District, Saginaw 5/12 at 100.00 AA 1,421,059
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 2,258,671
Counties, Michigan, General Obligation Bonds, Series 2003,
5.250%, 5/01/20
1,000 Caledonia Community Schools, Kent, Allegan and Barry 5/15 at 100.00 AAA 1,053,450
Counties, Michigan, General Obligation Bonds, Series 2005,
5.000%, 5/01/25 - MBIA Insured
2,000 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 2,366,120
General Obligation Bonds, Series 2002A, 6.000%, 5/01/19 -
FGIC Insured
1,195 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 1,276,846
5.250%, 4/01/24 - AMBAC Insured
Grand Rapids and Kent County Joint Building Authority, Michigan,
Limited Tax General Obligation Bonds, Devos Place Project,
Series 2001:
8,900 0.000%, 12/01/25 No Opt. Call AAA 3,863,757
3,000 0.000%, 12/01/26 No Opt. Call AAA 1,241,100
5,305 0.000%, 12/01/29 No Opt. Call AAA 1,890,649
1,400 Howell Public Schools, Livingston County, Michigan, 11/13 at 100.00 AA 1,484,994
General Obligation Bonds, Series 2003, 5.000%, 5/01/21
1,065 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,122,819
Obligation School Building and Site Bonds, Series 2004,
5.000%, 5/01/22 - FSA Insured
1,935 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 2,056,325
Series 2006, 5.000%, 5/01/25 - FSA Insured
1,790 Lansing Building Authority, Michigan, General Obligation Bonds, 6/13 at 100.00 AAA 1,870,836
Series 2003A, 5.000%, 6/01/26 - MBIA Insured
21
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,505 Lincoln Consolidated School District, Washtenaw and Wayne 5/16 at 100.00 AAA $ 2,662,064
Counties, Michigan, General Obligation Bonds, Series 2006,
5.000%, 5/01/25 - MBIA Insured
2,810 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 2,967,950
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 -
MBIA Insured
2,100 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 2,227,743
Detroit City School District, Series 2005, 5.000%, 6/01/18 -
FSA Insured
4,000 Michigan, General Obligation Bonds, Environmental Protection 5/13 at 100.00 AA 4,286,400
Program, Series 2003A, 5.250%, 5/01/20
2,500 Montrose School District, Michigan, School Building and Site No Opt. Call AAA 2,992,450
Bonds, Series 1997, 6.000%, 5/01/22 - MBIA Insured
1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,135,321
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 1,044,100
Obligation Bonds, Series 2002, 5.125%, 9/01/22
1,595 Oakridge Public Schools, Muskegon County, Michigan, 5/15 at 100.00 AAA 1,691,657
General Obligation Bonds, Series 2005, 5.000%, 5/01/22 -
MBIA Insured
4,340 Plymouth-Canton Community School District, Wayne and 5/14 at 100.00 AAA 4,556,175
Washtenaw Counties, Michigan, General Obligation Bonds,
Series 2004, 5.000%, 5/01/26 - FGIC Insured
4,200 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 4,813,704
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
3,175 South Redford School District, Wayne County, Michigan, 5/15 at 100.00 AAA 3,337,909
General Obligation Bonds, School Building and Site,
Series 2005, 5.000%, 5/01/30 - MBIA Insured
1,655 Southfield Library Building Authority, Michigan, General 5/15 at 100.00 AAA 1,747,001
Obligation Bonds, Series 2005, 5.000%, 5/01/26 -
MBIA Insured
2,275 Troy City School District, Oakland County, Michigan, General 5/16 at 100.00 AAA 2,440,575
Obligation Bonds, Series 2006, 5.000%, 5/01/19 -
MBIA Insured
5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 5,213,950
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/21 -
MBIA Insured
3,350 Wayne Westland Community Schools, Michigan, General 11/14 at 100.00 AAA 3,575,288
Obligation Bonds, Series 2004, 5.000%, 5/01/17 -
FSA Insured
1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 1,985,285
Tax General Obligation QSBLF Bonds, Series 1996,
5.500%, 5/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
83,250 Total Tax Obligation/General 77,800,445
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.5% (11.6% OF TOTAL INVESTMENTS)
1,000 Grand Rapids Building Authority, Kent County, Michigan, No Opt. Call AA 1,080,840
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 1,400,616
Limited Tax General Obligation Bonds, Series 2001,
5.125%, 10/01/26 - MBIA Insured
4,440 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 AAA 4,711,373
5.000%, 10/15/36 - FGIC Insured
60 Michigan Municipal Bond Authority, Local Government 5/07 at 100.00 Aa3 60,130
Loan Program Revenue Sharing Bonds, Series 1992D,
6.650%, 5/01/12
2,135 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 AAA 2,252,745
Program, Series 2005II, 5.000%, 10/15/33 - AMBAC Insured
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 5,378,663
5,000 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 5,267,199
3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,733,380
5.250%, 10/01/21 - FSA Insured
915 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- 1,085,977
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
4,100 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 BBB+ 4,505,859
Transportation Authority, Series 1996Y, 5.500%, 7/01/36
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,800 Wayne County, Dearborn Heights, Michigan, Tax Increment 10/10 at 100.00 AAA $ 1,852,056
Financing Authority, Limited Tax General Obligation Bonds,
Police and Courthouse Facility, Series 2001A,
5.000%, 10/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
29,395 Total Tax Obligation/Limited 31,328,838
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.5% (0.4% OF TOTAL INVESTMENTS)
1,000 Capital Region Airport Authority, Michigan, Revenue Refunding 7/12 at 100.00 AAA 1,042,000
Bonds, Series 2002, 5.250%, 7/01/21 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 41.2% (27.4% OF TOTAL INVESTMENTS) (4)
1,850 Allegan County Public School District, Michigan, General 5/10 at 100.00 AAA 1,953,397
Obligation Bonds, Series 2000, 5.600%, 5/01/20
(Pre-refunded 5/01/10) - FSA Insured
2,190 Anchor Bay School District, Macomb and St. Clair Counties, 5/09 at 100.00 AAA 2,296,916
Michigan, General Obligation Bonds, Series 1999I,
6.000%, 5/01/29 (Pre-refunded 5/01/09) - FGIC Insured
1,000 Charlotte Public School District, Easton County, Michigan, 5/09 at 100.00 AAA 1,032,780
General Obligation Bonds, Series 1999, 5.250%, 5/01/25
(Pre-refunded 5/01/09) - FGIC Insured
2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 2,127,140
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded 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 7/01/11) - FGIC Insured 7/11 at 101.00 AAA 3,699,540
770 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 815,784
730 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 773,406
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2003A:
4,025 5.000%, 7/01/24 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 AAA 4,301,155
1,500 5.000%, 7/01/25 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 Aaa 1,602,915
Detroit, Michigan, Sewerage Disposal System Revenue Bonds,
Series 1997A:
950 5.500%, 7/01/20 (Pre-refunded 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 966,606
1,000 5.000%, 7/01/22 (Pre-refunded 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,015,430
1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 1,066,990
Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) -
FGIC Insured
2,000 East Grand Rapids Public Schools, Kent County, Michigan, 5/09 at 100.00 AAA 2,097,640
Unlimited Tax General Obligation School Building and Site
Bonds, Series 2000, 6.000%, 5/01/29 (Pre-refunded 5/01/09) -
FSA Insured
1,085 Freeland Community School District, Saginaw, Midland and 5/10 at 100.00 AA (4) 1,134,129
Bay Counties, Michigan, General Obligation Bonds,
Series 2000, 5.250%, 5/01/19 (Pre-refunded 5/01/10)
1,235 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 1,265,270
Mortgage Hospital Revenue Bonds, Portage Health System
Inc., Series 1998, 5.450%, 8/01/47 (Pre-refunded 8/01/08) -
MBIA Insured
3,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 3,730,545
Spectrum Health, Series 2001A, 5.250%, 1/15/21
(Pre-refunded 7/15/11)
2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AA (4) 2,115,580
General Obligation Bonds, Series 2002, 5.000%, 5/01/24
(Pre-refunded 5/01/12)
3,880 Mayville Community Schools, Tuscola County, Michigan, 11/14 at 100.00 AAA 4,181,166
General Obligation Bonds, School Building and Site Project,
Series 2004, 5.000%, 5/01/34 (Pre-refunded 11/01/14) -
FGIC Insured
250 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 (4) 270,875
Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM)
Michigan State Hospital Finance Authority, Hospital Revenue
Bonds, Ascension Health Credit Group, Series 1999A:
1,000 6.125%, 11/15/23 (Pre-refunded 11/15/09) - MBIA Insured 11/09 at 101.00 AAA 1,071,830
500 6.125%, 11/15/26 (Pre-refunded 11/15/09) 11/09 at 101.00 AAA 535,365
5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 5,343,449
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24 (Pre-refunded 11/15/09)
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 (4) 1,643,550
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17 (Pre-refunded 3/01/13)
23
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/09 at 101.00 AAA $ 1,798,107
Refunding Bonds, Mercy Health Services Obligated Group,
Series 1999X, 5.750%, 8/15/19 (Pre-refunded 8/15/09) -
MBIA Insured
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A (4) 1,070,730
Refunding Bonds, OSF Healthcare System, Series 1999,
6.125%, 11/15/19 (Pre-refunded 11/15/09)
3,460 Michigan State Hospital Finance Authority, Hospital Revenue 5/08 at 101.00 AAA 3,532,210
Refunding Bonds, St. John's Health System, Series 1998A,
5.000%, 5/15/28 - AMBAC Insured (ETM)
1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 1,052,760
5.000%, 11/01/25 (Pre-refunded 11/01/11) - FSA Insured
1,100 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 BBB+ (4) 1,135,530
Refunding Bonds, Porter Hills Presbyterian Village,
Series 1998, 5.375%, 7/01/28 (Pre-refunded 7/01/08)
Michigan, Certificates of Participation, Series 2000:
2,000 5.500%, 6/01/19 (Pre-refunded 6/01/10) - AMBAC Insured 6/10 at 100.00 AAA 2,105,080
2,000 5.500%, 6/01/27 (Pre-refunded 6/01/10) - AMBAC Insured 6/10 at 100.00 AAA 2,105,080
2,875 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 3,048,765
Michigan, General Obligation Bonds, Series 2000A,
5.750%, 5/01/24 (Pre-refunded 5/01/10) - FGIC Insured
Muskegon Heights, Muskegon County, Michigan, Water Supply
System Revenue Bonds, Series 2000A:
1,040 5.625%, 11/01/25 (Pre-refunded 11/01/10) - MBIA Insured 11/10 at 100.00 Aaa 1,107,371
1,160 5.625%, 11/01/30 (Pre-refunded 11/01/10) - MBIA Insured 11/10 at 100.00 Aaa 1,235,145
1,125 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB+ (4) 1,214,775
Revenue Bonds, Series 2000B, 6.000%, 7/01/39
(Pre-refunded 7/01/10)
85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- (4) 105,947
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
185 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 191,749
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,060,440
Counties, Michigan, General Obligation Bonds, Series 2000I,
5.750%, 5/01/19 (Pre-refunded 5/01/10) - FGIC Insured
2,100 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 2,191,287
Unlimited Tax General Obligation School Building and Site
Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded 5/01/09) -
FGIC Insured
1,050 Warren Consolidated School District, Macomb and Oakland 11/11 at 100.00 AAA 1,122,366
Counties, Michigan, General Obligation Bonds, Series 2001,
5.375%, 5/01/19 (Pre-refunded 11/01/11) - FSA Insured
1,980 Washtenaw County Building Authority, Michigan, Limited Tax 9/07 at 100.00 AAA 2,000,038
General Obligation Bonds, Series 1999, 5.400%, 9/01/17
(Pre-refunded 9/01/07) - FGIC Insured
2,600 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 2,768,974
Unlimited Tax General Obligation School Building and Site
Bonds, Series 2000, 5.900%, 5/01/18 (Pre-refunded 5/01/10) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
69,825 Total U.S. Guaranteed 73,887,812
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.4% (8.2% OF TOTAL INVESTMENTS)
3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 3,150,750
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 3,430,884
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,050,520
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 4,189,200
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 2001C, 5.450%, 9/01/29
2,000 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Aaa 2,070,900
Revenue Refunding Bonds, Detroit Edison Company,
Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) -
AMBAC Insured
3,630 Michigan Strategic Fund, Limited Obligation Revenue Refunding No Opt. Call AAA 4,690,759
Bonds, Detroit Edison Company, Series 1991BB,
7.000%, 5/01/21 - AMBAC Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 AAA $ 3,180,570
Bonds, Detroit Edison Company, Series 2002C,
5.450%, 12/15/32 - XLCA Insured (Alternative Minimum Tax)
400 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 419,824
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,255 Total Utilities 22,183,407
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.5% (6.3% OF TOTAL INVESTMENTS)
5,500 Detroit Water Supply System, Michigan, Water Supply 7/16 at 100.00 AAA 5,788,804
System Revenue Bonds, Series 2006A, 5.000%, 7/01/34 -
FSA Insured
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,775,295
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 2,122,020
Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured
1,500 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 1,564,695
Bonds, Series 2003A, 5.000%, 7/01/25 - MBIA Insured
4,210 Michigan Municipal Bond Authority, Clean Water Revolving 10/14 at 100.00 AAA 4,484,829
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/19
1,150 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 1,220,162
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
15,860 Total Water and Sewer 16,955,805
------------------------------------------------------------------------------------------------------------------------------------
$ 263,259 Total Long-Term Investments (cost $253,246,108) - 149.6% 268,163,543
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,200 Puerto Rico Government Development Bank, Adjustable VMIG-1 1,200,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 3.300%, 12/01/15 - MBIA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,200 Total Short-Term Investments (cost $1,200,000) 1,200,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $254,446,108) - 150.3% 269,363,543
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 3,871,487
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (94,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 179,235,030
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
25
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of
INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.3% (3.5% OF TOTAL INVESTMENTS)
$ 440 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- $ 441,505
Charter School Revenue Bonds, Series 2005, 5.125%, 11/01/35
2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 2,087,820
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured
(Alternative Minimum Tax)
3,500 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 3,622,010
Series 1999, 5.125%, 11/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,940 Total Education and Civic Organizations 6,151,335
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.8% (7.2% OF TOTAL INVESTMENTS)
2,050 Dearborn Hospital Finance Authority, Michigan, Hospital 5/07 at 101.00 AAA 2,073,555
Revenue Bonds, Oakwood Obligated Group, Series 1995A,
5.875%, 11/15/25 - FGIC Insured
4,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/09 at 101.00 AAA 4,190,160
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+ 531,215
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31
425 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 435,986
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/25
325 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 330,824
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
1,600 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 1,671,056
Sparrow Obligated Group, Series 2005, 5.000%, 11/15/36 -
MBIA Insured
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 2/07 at 100.00 BB- 2,001,160
500 6.500%, 8/15/18 2/07 at 100.00 BB- 500,350
800 Monroe County Hospital Finance Authority, Michigan, 6/16 at 100.00 BBB- 837,904
Mercy Memorial Hospital Corporation Revenue Bonds,
Series 2006, 5.375%, 6/01/26
------------------------------------------------------------------------------------------------------------------------------------
12,200 Total Health Care 12,572,210
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.9% (4.6% OF TOTAL INVESTMENTS)
930 Michigan Housing Development Authority, GNMA 4/12 at 102.00 Aaa 970,613
Collateralized Limited Obligation Multifamily Housing
Revenue Bonds, Burkshire Pointe Apartments, Series 2002A,
5.400%, 10/20/32 (Alternative Minimum Tax)
1,500 Michigan Housing Development Authority, Limited Obligation 4/07 at 100.00 AAA 1,501,635
Revenue Bonds, Breton Village Green Project, Series 1993,
5.625%, 10/15/18 - FSA Insured
2,400 Michigan Housing Development Authority, Limited Obligation 4/07 at 100.00 AAA 2,457,816
Revenue Bonds, Walled Lake Villa Project, Series 1993,
6.000%, 4/15/18 - FSA Insured
800 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA 827,992
Revenue Bonds, Series 2006D, 5.125%, 4/01/31 -
FSA Insured (Alternative Minimum Tax)
Mt. Clemens Housing Corporation, Michigan, FHA-Insured Section 8
Assisted Multifamily Housing Revenue Refunding Bonds, Clinton
Place Project, Series 1992A:
725 6.600%, 6/01/13 6/07 at 100.00 AAA 726,015
1,500 6.600%, 6/01/22 6/07 at 100.00 AAA 1,552,200
------------------------------------------------------------------------------------------------------------------------------------
7,855 Total Housing/Multifamily 8,036,271
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.7% (0.4% OF TOTAL INVESTMENTS)
665 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 686,825
Presbyterian Villages of Michigan Obligated Group,
Series 2005, 5.250%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.9% (0.6 % OF TOTAL INVESTMENTS)
$ 1,050 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB $ 1,073,867
Pollution Control Revenue Bonds, International Paper
Company, Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 41.6% (27.5% OF TOTAL INVESTMENTS)
1,475 Anchor Bay School District, Macomb and St. Clair Counties, 11/13 at 100.00 AA 1,564,547
Michigan, General Obligation Bonds, Series 2003,
5.000%, 5/01/21
2,500 Anchor Bay School District, Macomb and St. Clair Counties, 5/11 at 100.00 AA 2,601,125
Michigan, Unlimited Tax General Obligation Refunding Bonds,
Series 2001, 5.000%, 5/01/21
2,250 Caledonia Community Schools, Kent, Allegan and Barry 5/15 at 100.00 AAA 2,375,078
Counties, Michigan, General Obligation Bonds, Series 2005,
5.000%, 5/01/26 - MBIA 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 2,163,680
750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AAA 898,530
2,500 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 2,625,600
Obligation Bonds, Series 2003B, 5.000%, 5/01/23 -
FGIC Insured
2,665 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 2,847,526
5.250%, 4/01/24 - AMBAC Insured
7,000 Detroit-Wayne County Stadium Authority, Michigan, Limited 2/07 at 102.00 AAA 7,146,297
Tax General Obligation Building Authority Stadium Bonds,
Series 1997, 5.250%, 2/01/27 - FGIC Insured
1,650 Holly Area School District, Oakland County, Michigan, General 5/16 at 100.00 AAA 1,763,009
Obligation Bonds, Series 2006, 5.125%, 5/01/32 -
MBIA Insured
2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA 2,109,900
Obligation Bonds, Series 2003, 5.000%, 5/01/22
1,250 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 1,328,375
Series 2006, 5.000%, 5/01/25 - FSA Insured
500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA 527,145
Obligation Bonds, Series 2004, 5.000%, 5/01/22
1,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,056,210
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 -
MBIA Insured
1,000 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 1,060,830
Detroit City School District, Series 2005, 5.000%, 6/01/18 -
FSA Insured
Michigan, General Obligation Bonds, Environmental Protection
Program, Series 2003A:
1,000 5.250%, 5/01/20 5/13 at 100.00 AA 1,071,600
2,000 5.250%, 5/01/21 5/13 at 100.00 AA 2,143,200
1,000 Otsego Public Schools District, Allegan and Kalamazoo 5/14 at 100.00 AAA 1,051,090
Counties, Michigan, General Obligation Bonds, Series 2004,
5.000%, 5/01/25 - FSA Insured
1,100 Oxford Area Community Schools, Oakland and Lapeer Counties, 5/14 at 100.00 AAA 1,156,199
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 2,615,374
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 1,054,870
Obligation Bonds, Series 2005, 5.000%, 5/01/27 - FSA Insured
2,830 Warren Consolidated School District, Macomb and Oakland 5/13 at 100.00 AA 3,029,402
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 1,611,315
4,270 5.000%, 12/01/30 - MBIA Insured 12/11 at 101.00 AAA 4,443,746
------------------------------------------------------------------------------------------------------------------------------------
45,570 Total Tax Obligation/General 48,244,648
------------------------------------------------------------------------------------------------------------------------------------
27
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.4% (13.5% OF TOTAL INVESTMENTS)
$ 2,880 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 AAA $ 3,056,026
5.000%, 10/15/36 - FGIC Insured
Michigan State Building Authority, Revenue Bonds, Facilities
Program, Series 2001I:
2,570 5.500%, 10/15/19 10/11 at 100.00 AA- 2,744,477
6,500 5.000%, 10/15/24 10/11 at 100.00 AA- 6,741,995
1,600 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 AAA 1,691,824
Program, Series 2005II, 5.000%, 10/15/30 - AMBAC Insured
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 5,273,200
2,480 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 2,612,531
1,500 Michigan, Comprehensive Transportation Revenue Refunding 11/11 at 100.00 AAA 1,567,185
Bonds, Series 2001A, 5.000%, 11/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,530 Total Tax Obligation/Limited 23,687,238
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 31.7% (20.9% OF TOTAL INVESTMENTS) (4)
1,000 Central Montcalm Public Schools, Montcalm and Ionia Counties, 5/09 at 100.00 AAA 1,043,470
Michigan, General Obligation Unlimited Tax School Building
and Site Bonds, Series 1999, 5.750%, 5/01/24 (Pre-refunded
5/01/09) - MBIA Insured
1,375 Chippewa Valley Schools, Macomb County, Michigan, General 5/11 at 100.00 AA (4) 1,440,491
Obligation Bonds, Series 2001, 5.000%, 5/01/26
(Pre-refunded 5/01/11)
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2001A:
1,385 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 1,467,352
1,315 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 1,393,190
2,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,133,980
Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) -
FGIC Insured
Eastern Michigan University, General Revenue Bonds,
Series 2003:
1,000 5.000%, 6/01/28 (Pre-refunded 6/01/13) - FGIC Insured 6/13 at 100.00 AAA 1,067,800
1,450 5.000%, 6/01/33 (Pre-refunded 6/01/13) - FGIC Insured 6/13 at 100.00 AAA 1,548,310
2,200 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 2,253,922
Mortgage Hospital Revenue Bonds, Portage Health System
Inc., Series 1998, 5.450%, 8/01/47 (Pre-refunded 8/01/08) -
MBIA Insured
500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 Aa2 (4) 536,865
Obligation Bonds, Series 2004, 5.000%, 5/01/22
(Pre-refunded 5/01/14)
75 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 (4) 81,263
Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM)
1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/10 at 100.00 AA- (4) 1,583,250
Program, Series 2000I, 5.375%, 10/15/20
(Pre-refunded 10/15/10)
2,500 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 2,676,825
Bonds, Ascension Health Credit Group, Series 1999A,
6.125%, 11/15/26 (Pre-refunded 11/15/09)
4,300 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 4,595,367
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24 (Pre-refunded 11/15/09)
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 (4) 1,643,550
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17 (Pre-refunded 3/01/13)
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 4/07 at 100.00 AAA 3,106,620
Refunding Bonds, St. John's Hospital, Series 1993A,
6.000%, 5/15/13 - AMBAC Insured (ETM)
1,240 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 1,310,246
Michigan, General Obligation Bonds, Series 2000A,
5.625%, 5/01/16 (Pre-refunded 5/01/10) - FGIC Insured
265 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 274,667
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,060,440
Counties, Michigan, General Obligation Bonds, Series 2000I,
5.750%, 5/01/19 (Pre-refunded 5/01/10) - FGIC Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
South Lyon Community Schools, Oakland, Washtenaw and
Livingston Counties, Michigan, General Obligation Bonds,
Series 2003:
$ 1,000 5.250%, 5/01/19 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 AAA $ 1,075,540
1,575 5.250%, 5/01/22 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 AAA 1,693,976
1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,552,424
Michigan, General Obligation Bonds, Series 2004,
5.250%, 5/01/20 (Pre-refunded 5/01/14) - MBIA Insured
2,950 West Bloomfield School District, Oakland County, Michigan, 5/14 at 100.00 AAA 3,167,504
General Obligation Bonds, Series 2004, 5.000%, 5/01/22
(Pre-refunded 5/01/14) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
34,555 Total U.S. Guaranteed 36,707,052
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.9% (9.2% OF TOTAL INVESTMENTS)
1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,050,250
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 984,052
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,050,520
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 5,236,500
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 2001C, 5.450%, 9/01/29
3,000 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Aaa 3,106,350
Revenue Refunding Bonds, Detroit Edison Company,
Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) -
AMBAC Insured
3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 AAA 3,180,570
Bonds, Detroit Edison Company, Series 2002C,
5.450%, 12/15/32 - XLCA Insured (Alternative Minimum Tax)
1,500 Wyandotte, Michigan, Electric Revenue Refunding Bonds, 10/08 at 101.00 AAA 1,550,820
Series 2002, 5.375%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,425 Total Utilities 16,159,062
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 19.1% (12.6% OF TOTAL INVESTMENTS)
3,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 3,683,785
Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured
2,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 2,101,520
Revenue Bonds, Series 2005A, 5.000%, 7/01/30 -
MBIA Insured
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,775,295
Revenue Bonds, Series 2001B, 5.500%, 7/01/29 -
FGIC Insured
3,960 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 4,201,600
Revenue Bonds, Series 2003A, 5.000%, 7/01/17 -
FSA Insured
29
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,330 Grand Rapids, Michigan, Sanitary Sewer System Revenue 7/15 at 100.00 AAA $ 1,402,325
Bonds, Series 2005, 5.000%, 1/01/30 - MBIA Insured
8,460 North Kent Sewer Authority, Michigan, Sewer Revenue 11/16 at 100.00 AAA 8,972,084
Bonds, Series 2006, 5.000%, 11/01/31 - MBIA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
20,750 Total Water and Sewer 22,136,609
------------------------------------------------------------------------------------------------------------------------------------
$ 166,540 Total Investments (cost $168,152,787) - 151.3% 175,455,117
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.9)% (5,640,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 2,112,775
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.3)% (56,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 115,927,892
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
30
Nuveen Michigan Dividend Advantage Municipal Fund (NZW)
Portfolio of
INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.6% (3.0% OF TOTAL INVESTMENTS)
$ 230 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- $ 230,787
Charter School Revenue Bonds, Series 2005, 5.125%, 11/01/35
1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,188,192
Obligation Revenue Refunding Bonds, Kettering University,
Series 2001, 5.000%, 9/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,380 Total Education and Civic Organizations 1,418,979
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 17.5% (11.7% OF TOTAL INVESTMENTS)
500 Allegan Hospital Finance Authority, Michigan, Revenue Bonds, 11/09 at 101.00 N/R 534,795
Allegan General Hospital, Series 1999, 7.000%, 11/15/21
700 Michigan State Hospital Finance Authority, Hospital Revenue 7/07 at 101.00 Ba3 707,714
Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16
750 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A+ 796,823
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31
425 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 433,054
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30
200 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 203,584
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
475 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 496,095
Sparrow Obligated Group, Series 2005, 5.000%, 11/15/36 -
MBIA Insured
400 Monroe County Hospital Finance Authority, Michigan, 6/16 at 100.00 BBB- 418,952
Mercy Memorial Hospital Corporation Revenue Bonds,
Series 2006, 5.375%, 6/01/26
1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 1,875,150
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,250 Total Health Care 5,466,167
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.4% (4.3% OF TOTAL INVESTMENTS)
1,700 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 1,779,390
Limited Obligation Multifamily Housing Revenue Bonds,
Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31
(Alternative Minimum Tax)
200 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA 206,998
Revenue Bonds, Series 2006D, 5.125%, 4/01/31 -
FSA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,900 Total Housing/Multifamily 1,986,388
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.1% (2.8% OF TOTAL INVESTMENTS)
1,250 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,288,350
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.6% (1.0% OF TOTAL INVESTMENTS)
500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB+ 488,945
Republic Services Inc., Series 2001, 4.250%, 8/01/31
(Mandatory put 4/01/14) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0% (0.8% OF TOTAL INVESTMENTS)
335 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 345,995
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 511,365
Michigan, Pollution Control Revenue Bonds, International
Paper Company, Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen Michigan Dividend Advantage Municipal Fund (NZW) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.7% (19.2% OF TOTAL INVESTMENTS)
$ 1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA $ 1,550,760
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/27
500 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 527,145
Obligation School Building and Site Bonds, Series 2004,
5.000%, 5/01/22 - FSA Insured
300 Kalamazoo Public Schools, Michigan, General Obligation 5/16 at 100.00 AAA 318,810
Bonds, Series 2006, 5.000%, 5/01/25 - FSA Insured
400 Michigan Municipal Bond Authority, General Obligation 6/15 at 100.00 AAA 424,332
Bonds, Detroit City School District, Series 2005,
5.000%, 6/01/18 - FSA Insured
1,150 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,186,927
Wastewater Management System 2 Revenue Bonds,
Series 2002, 5.000%, 7/01/26 - 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 513,945
800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 822,312
1,650 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 1,717,139
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/30 -
MBIA Insured
500 Wayne Westland Community Schools, Michigan, General 11/14 at 100.00 AAA 533,625
Obligation Bonds, Series 2004, 5.000%, 5/01/17 - FSA Insured
1,300 Willow Run Community Schools, Washtenaw County, 5/11 at 100.00 AA 1,352,585
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/21
------------------------------------------------------------------------------------------------------------------------------------
8,600 Total Tax Obligation/General 8,947,580
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 12.5% (8.3% OF TOTAL INVESTMENTS)
1,100 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,145,485
Limited Tax General Obligation Bonds, Series 2001,
5.125%, 10/01/26 - MBIA Insured
720 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 AAA 764,006
5.000%, 10/15/36 - FGIC Insured
1,205 Michigan State Building Authority, Revenue Bonds, 10/11 at 100.00 AA- 1,249,862
Facilities Program, Series 2001I, 5.000%, 10/15/24
615 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- 729,919
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
------------------------------------------------------------------------------------------------------------------------------------
3,640 Total Tax Obligation/Limited 3,889,272
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 38.6% (25.8% OF TOTAL INVESTMENTS) (4)
1,000 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 1,087,700
General Obligation Bonds, Series 2002A, 5.375%, 5/01/24
(Pre-refunded 5/01/13) - FGIC Insured
1,000 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 1,081,400
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 5.500%, 5/01/21 (Pre-refunded 5/01/12) -
FSA Insured
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2001A:
515 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 545,622
485 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 513,838
1,000 Garden City School District, Wayne County, Michigan, General 5/11 at 100.00 AA (4) 1,047,630
Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26
(Pre-refunded 5/01/11)
2,200 Huron School District, Wayne and Monroe Counties, Michigan, 5/11 at 100.00 AAA 2,336,884
General Obligation Bonds, Series 2001, 5.375%, 5/01/26
(Pre-refunded 5/01/11) - FSA Insured
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 1,065,870
Spectrum Health, Series 2001A, 5.250%, 1/15/21
(Pre-refunded 7/15/11)
1,000 Michigan Municipal Bond Authority, Drinking Water 10/10 at 101.00 AAA 1,078,870
Revolving Fund Revenue Bonds, Series 2000,
5.875%, 10/01/17 (Pre-refunded 10/01/10)
2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,105,520
5.000%, 11/01/25 (Pre-refunded 11/01/11) - FSA Insured
500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 532,900
Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM)
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- (4) $ 105,947
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 (ETM)
500 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AAA 524,155
Obligation Bonds, Series 2001, 5.150%, 11/01/22
(Pre-refunded 11/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,285 Total U.S. Guaranteed 12,026,336
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.5% (10.4% OF TOTAL INVESTMENTS)
1,115 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,179,782
Electric Utility System Revenue Bonds, Series 2003A,
5.000%, 7/01/21 - FSA Insured
1,235 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,302,678
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 2,340,834
Pollution Control Revenue Refunding Bonds, Fixed Rate
Conversion, Detroit Edison Company, Series 1999C,
5.650%, 9/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,565 Total Utilities 4,823,294
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.3% (11.6% OF TOTAL INVESTMENTS)
1,000 Detroit Water Supply System, Michigan, Water Supply 7/16 at 100.00 AAA 1,052,510
System Revenue Bonds, Series 2006A, 5.000%, 7/01/34 -
FSA Insured
1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,183,530
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 1,061,010
Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured
1,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 1,028,860
Bonds, Series 2001A, 5.000%, 7/01/30 - FGIC Insured
1,000 Michigan Municipal Bond Authority, Clean Water Revolving 10/15 at 100.00 AAA 1,072,427
Fund Revenue Bonds, Series 2005, 5.000%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Water and Sewer 5,398,337
------------------------------------------------------------------------------------------------------------------------------------
$ 44,205 Total Investments (cost $44,348,682) - 149.4% 46,591,008
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 587,118
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.3)% (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 31,178,126
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT JANUARY 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $5,600,000 Receive 3-Month USD-LIBOR 5.682% Semi-Annually 7/10/07 7/10/12 $(106,639)
Goldman Sachs 1,700,000 Pay 3-Month USD-LIBOR 5.803 Semi-Annually 7/10/07 7/10/37 83,738
------------------------------------------------------------------------------------------------------------------------------------
$ (22,901)
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
33
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of
INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.8% (1.2% OF TOTAL INVESTMENTS)
$ 2,660 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,780,365
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.5% (11.7% OF TOTAL INVESTMENTS)
1,650 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 1,712,057
Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41
1,750 Ohio Higher Education Facilities Commission, General Revenue 10/13 at 100.00 AA 1,840,685
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 1,030,540
Wittenberg University, Series 2005, 5.000%, 12/01/29
5,000 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 AAA 5,313,000
Bonds, University of Dayton, 2006 Project, Series 2006,
5.000%, 12/01/30 - AMBAC Insured
1,415 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/14 at 100.00 AA 1,495,372
Denison University, Series 2004, 5.000%, 11/01/21
1,320 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/14 at 100.00 AAA 1,387,544
University of Dayton, Series 2004, 5.000%, 12/01/25 -
AMBAC Insured
1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa1 1,058,830
Wittenberg University, Series 2001, 5.500%, 12/01/15
1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 5/16 at 100.00 Aaa 1,058,770
Xavier University, Series 2006, 5.000%, 5/01/22 - CIFG Insured
1,500 Ohio State Higher Education Facilities, Revenue Bonds, 12/16 at 100.00 AAA 1,575,405
Case Western Reserve University, Series 2006,
5.000%, 12/01/44 - MBIA Insured
1,200 Ohio State University, General Receipts Bonds, Series 2002A, 12/12 at 100.00 AA 1,259,364
5.125%, 12/01/31
3,000 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 3,206,070
5.250%, 6/01/22
1,510 University of Akron, Ohio, General Receipts Bonds, 1/13 at 100.00 AAA 1,591,661
Series 2003A, 5.000%, 1/01/21 - AMBAC Insured
850 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 894,183
Series 2003C, 5.000%, 6/01/22 - FGIC Insured
University of Cincinnati, Ohio, General Receipts Bonds,
Series 2004D:
1,200 5.000%, 6/01/19 - AMBAC Insured 6/14 at 100.00 AAA 1,269,372
2,605 5.000%, 6/01/25 - AMBAC Insured 6/14 at 100.00 AAA 2,737,725
------------------------------------------------------------------------------------------------------------------------------------
26,000 Total Education and Civic Organizations 27,430,578
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.0% (12.0% OF TOTAL INVESTMENTS)
2,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/09 at 101.00 Baa1 2,045,860
Hospital Facilities Revenue Bonds, Summa Health System,
Series 1998A, 5.375%, 11/15/24
4,140 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 AAA 3,974,441
Cincinnati Children's Medical Center Project, Series 2006K,
4.375%, 5/15/32 - FGIC Insured (UB)
1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/07 at 102.00 AAA 1,021,290
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 AA- 2,195,860
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 4,791,060
Regional Medical Center, Series 2002A, 5.625%, 8/15/32
2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital 5/14 at 100.00 AAA 2,643,667
Medical Center, Series 2004J, 5.250%, 5/15/16 - FGIC Insured
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 785 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- $ 826,503
Bonds, Upper Valley Medical Center Inc., Series 2006,
5.250%, 5/15/21
Montgomery County, Ohio, Revenue Bonds, Catholic Health
Initiatives, Series 2004A:
2,500 5.000%, 5/01/30 5/14 at 100.00 AA 2,588,150
2,500 5.000%, 5/01/32 No Opt. Call AA 2,586,600
830 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 895,263
Bonds, MedCentral Health System Obligated Group,
Series 2000B, 6.375%, 11/15/30
1,200 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 1,259,388
Health System Group, Series 2006, 5.250%, 11/15/36
1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding 10/10 at 100.00 A3 1,604,700
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 1,832,500
Union Hospital Project, Series 2001, 5.750%, 10/01/21 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
27,115 Total Health Care 28,265,282
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.4% (4.3% OF TOTAL INVESTMENTS)
1,385 Clermont County, Ohio, GNMA Collateralized Mortgage 2/07 at 100.00 Aaa 1,386,371
Revenue Bonds, S.E.M. Villa II Project, Series 1994A,
5.950%, 2/20/30
955 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/12 at 102.00 Aaa 997,192
Housing Mortgage Revenue Bonds, Livingston Park Apartments
Project, Series 2002A, 5.350%, 9/20/27 (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 2,579,643
2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,346,098
96 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/10 at 102.00 Aaa 95,500
Housing Mortgage Revenue Bonds, West Tech Apartments
Project, Series 2002A, 5.350%, 3/20/33 (Alternative
Minimum Tax)
985 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/07 at 101.00 Aa2 991,688
Mortgage Revenue Bonds, Hamilton Creek Apartments Project,
Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax)
Ohio Housing Finance Agency, FHA-Insured Multifamily Housing
Mortgage Revenue Bonds, Madonna Homes, Series 2006M:
800 4.450%, 10/01/09 (Alternative Minimum Tax) No Opt. Call Aaa 798,640
850 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 851,649
------------------------------------------------------------------------------------------------------------------------------------
9,796 Total Housing/Multifamily 10,046,781
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.2% (2.8% OF TOTAL INVESTMENTS)
1,195 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 1,212,913
Securities Program Residential Mortgage Revenue Bonds,
Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax)
1,875 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/08 at 102.00 Aaa 1,920,038
Securities Program Residential Mortgage Revenue Bonds,
Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax)
1,325 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 1,354,415
Securities Program Residential Mortgage Revenue Bonds,
Series 1998A-1, 5.300%, 9/01/19 - FSA Insured
(Alternative Minimum Tax)
2,000 Ohio Housing Finance Agency, Single Family Mortgage 9/15 at 100.00 Aaa 2,052,560
Revenue Bonds, Series 2006H, 5.000%, 9/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,395 Total Housing/Single Family 6,539,926
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.2% (0.9% OF TOTAL INVESTMENTS)
530 Cleveland-Cuyahoga County Port Authority, Ohio, Bond Fund 11/14 at 100.00 N/R 555,350
Program Development Revenue Bonds, Myers University,
Series 2004E, 5.600%, 5/15/25
1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 AAA 1,551,975
Emery Air Freight Corporation and Emery Worldwide
Airlines Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
2,030 Total Industrials 2,107,325
------------------------------------------------------------------------------------------------------------------------------------
35
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.2% (1.5% OF TOTAL INVESTMENTS)
$ 3,440 Hamilton County, Ohio, Health Care Revenue Refunding 1/17 at 100.00 BBB $ 3,495,006
Bonds, Life Enriching Communities Project, Series 2006A,
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.2% (0.9% OF TOTAL INVESTMENTS)
2,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, No Opt. Call A+ 2,050,780
Cargill Inc., Series 2004B, 4.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 34.1% (22.8% OF TOTAL INVESTMENTS)
1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102.00 Aaa 1,078,490
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 1,030,140
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25
Butler County, Ohio, General Obligation Bonds, Series 2002:
1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aaa 1,427,543
1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aaa 1,266,660
Butler County, Ohio, General Obligation Judgment Bonds,
Series 2002:
2,030 5.250%, 12/01/21 12/12 at 101.00 Aa3 2,180,139
2,140 5.250%, 12/01/22 12/12 at 101.00 Aa3 2,298,274
1,560 Canal Winchester Local School District, Franklin and 12/11 at 100.00 Aaa 1,613,648
Fairfield 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 1,583,010
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 1,066,040
Series 2004A, 5.000%, 12/01/15 - AMBAC Insured
2,600 Cincinnati City School District, Hamilton County, Ohio, General 12/12 at 100.00 AAA 2,777,918
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 1,059,700
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+ 1,273,740
Series 2004, 5.000%, 12/01/21
1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,080,690
5.250%, 12/01/19 - AMBAC Insured
1,000 Dublin City School District, Franklin, Delaware and Union 12/13 at 100.00 AAA 1,055,550
Counties, Ohio, General Obligation Bonds, Series 2003,
5.000%, 12/01/22 - FSA Insured
1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aaa 1,037,140
Bonds, Series 2000A, 5.000%, 12/01/20
1,195 Fairview Park City School District, Cuyahoga County, Ohio, 6/15 at 100.00 Aaa 1,268,038
General Obligation Bonds, Series 2005, 5.000%, 12/01/24 -
MBIA Insured
1,300 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 1,361,399
Refunding Bonds, Series 1993, 5.375%, 12/01/20
1,850 Hilliard School District, Franklin County, Ohio, General 12/15 at 100.00 AAA 1,964,497
Obligation Bonds, School Construction, Series 2005,
5.000%, 12/01/26 - MBIA Insured
3,000 Hilliard School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 3,205,260
Obligation Bonds, Series 2006A, 5.000%, 12/01/25 -
MBIA Insured
1,160 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,220,297
Obligation Bonds, Series 2003, 5.000%, 12/01/22 -
MBIA Insured
2,000 Louisville City School District, Ohio, General Obligation 12/11 at 100.00 Aaa 2,067,900
Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured
505 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 536,638
General Obligation Bonds, Series 2006, 5.000%, 12/01/25 -
FSA Insured
1,515 Massillon City School District, Ohio, General Obligation Bonds, 12/12 at 100.00 Aaa 1,618,671
Series 2003, 5.250%, 12/01/21 - MBIA Insured
760 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 799,436
Obligation Bonds, Series 2004, 5.000%, 12/01/25 -
FGIC Insured
640 New Albany Plain Local School District, Franklin County, Ohio, 6/12 at 100.00 Aaa 689,990
General Obligation Bonds, Series 2002, 5.500%, 12/01/17 -
FGIC Insured
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 AAA $ 1,059,610
Obligation Bonds, Series 2005, 5.000%, 12/01/28 -
FGIC Insured
3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, 2/13 at 100.00 AA+ 3,145,590
Series 2003F, 5.000%, 2/01/23
1,510 Painesville City School District, Ohio, General Obligation 12/14 at 100.00 AAA 1,599,664
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 1,235,238
Obligation Bonds, Series 2001, 5.250%, 12/01/25 -
AMBAC Insured
280 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 303,391
Ohio, General Obligation Bonds, Series 2000,
6.000%, 12/01/20 - FGIC Insured
1,445 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AAA 1,494,694
5.000%, 12/01/27 - FGIC Insured
2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 2,091,020
5.000%, 12/01/21 - FGIC Insured
70 Strongsville, Ohio, Limited Tax General Obligation Various 6/07 at 102.00 Aa1 71,516
Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21
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 2,664,316
1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 1,235,672
1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,048,250
Obligation Bonds, Series 2003, 5.000%, 12/01/28 -
MBIA Insured
1,000 Westlake, Ohio, Various Purpose General Obligation 12/08 at 101.00 Aaa 1,040,530
Improvement and Refunding Bonds, Series 1997,
5.550%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
50,645 Total Tax Obligation/General 53,550,299
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.5% (7.0% OF TOTAL INVESTMENTS)
1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 1,444,984
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 3,162,960
Anticipation Bonds, Convention Facilities Authority,
Series 2005, 5.000%, 12/01/27 - AMBAC Insured
Hamilton County Convention Facilities Authority, Ohio,
First Lien Revenue Bonds, Series 2004:
1,085 5.000%, 12/01/18 - FGIC Insured 6/14 at 100.00 AAA 1,149,492
2,600 5.000%, 12/01/33 - FGIC Insured 6/14 at 100.00 AAA 2,714,114
1,000 Hudson City School District, Ohio, Certificates of Participation, 6/14 at 100.00 Aaa 1,045,170
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 1,077,460
1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,073,580
5 Ohio Department of Transportation, Certificates of Participation, 4/07 at 100.00 AA 5,007
Rickenbacker International Airport Improvements, Series 1996,
6.125%, 4/15/15 (Alternative Minimum Tax)
800 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 845,232
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
2,645 Ohio State Building Authority, State Facilities Bonds, Adult 4/14 at 100.00 AAA 2,867,947
Correctional Building Fund Project, Series 2004A,
5.250%, 4/01/15 - MBIA Insured
1,000 Ohio, State Appropriation Lease Bonds, Mental Health 6/13 at 100.00 AA 1,063,810
Capital Facilities, Series 2003B-II, 5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
15,515 Total Tax Obligation/Limited 16,449,756
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.1% (2.7% OF TOTAL INVESTMENTS)
3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 3,111,270
International Airport, Series 2003C, 5.250%, 12/01/23 -
RAAI Insured (Alternative Minimum Tax)
1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox No Opt. Call AAA 1,069,190
International Airport, Series 2005B, 5.000%, 12/01/14 -
XLCA Insured
37
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 2,000 Ohio Turnpike Commission, Revenue Refunding Bonds, No Opt. Call AAA $ 2,270,360
Series 1998A, 5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total Transportation 6,450,820
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 38.1% (25.5% OF TOTAL INVESTMENTS) (4)
1,000 Cincinnati City School District, Hamilton County, Ohio, General 12/11 at 100.00 AAA 1,071,400
Obligation Bonds, Series 2001, 5.375%, 12/01/15
(Pre-refunded 12/01/11) - MBIA Insured
Cincinnati, Ohio, Water System Revenue Bonds, Series 2001:
1,000 5.500%, 12/01/17 (Pre-refunded 6/01/11) 6/11 at 100.00 AA+ (4) 1,069,960
3,510 5.000%, 12/01/18 (Pre-refunded 6/01/11) 6/11 at 100.00 AA+ (4) 3,685,956
3,000 5.000%, 12/01/19 (Pre-refunded 6/01/11) 6/11 at 100.00 AA+ (4) 3,150,390
1,000 5.000%, 12/01/20 (Pre-refunded 6/01/11) 6/11 at 100.00 AA+ (4) 1,050,130
1,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ (4) 1,050,130
5.000%, 12/01/22 (Pre-refunded 6/01/11)
1,780 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 1,869,285
5.250%, 1/01/16 (Pre-refunded 1/01/10) - FSA Insured
420 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 429,097
Improvement Bonds, Series 1998I, 5.000%, 1/01/28
(Pre-refunded 1/01/08) - FSA Insured
1,210 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, 6/09 at 101.00 AAA 1,252,144
Series 1999, 4.875%, 12/01/24 (Pre-refunded 6/01/09) -
AMBAC Insured
1,135 Franklin County, Ohio, First Mortgage Revenue, OCLC Inc. 6/07 at 100.00 AAA 1,168,834
Project, Series 1979, 7.500%, 6/01/09 (ETM)
2,000 Garfield Heights City School District, Cuyahoga County, Ohio, 12/11 at 100.00 Aaa 2,110,760
General Obligation School Improvement Bonds, Series 2001,
5.000%, 12/15/26 (Pre-refunded 12/15/11) - MBIA Insured
1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 101.00 BBB (4) 1,042,080
Revenue Bonds, Twin Towers, Series 1999A,
5.800%, 10/01/23 (Pre-refunded 10/01/08)
2,110 Hamilton County, Ohio, Sewer System Revenue and 6/10 at 101.00 AAA 2,260,633
Improvement Bonds, Metropolitan Sewer District of Greater
Cincinnati, Series 2000A, 5.750%, 12/01/25 (Pre-refunded
6/01/10) - MBIA Insured
1,000 Hilliard School District, Ohio, General Obligation School 12/10 at 101.00 AAA 1,080,340
Improvement Bonds, Series 2000, 5.750%, 12/01/24
(Pre-refunded 12/01/10) - FGIC Insured
2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aaa 2,110,180
Tax General Obligation School Improvement and Refunding
Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) -
FGIC Insured
1,000 London City School District, Ohio, General Obligation School 12/11 at 100.00 Aaa 1,054,970
Facilities Construction and Improvement Bonds, Series 2001,
5.000%, 12/01/29 (Pre-refunded 12/01/11) - FGIC Insured
3,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 3,285,780
Kettering Medical Center, Series 1999, 6.750%, 4/01/18
(Pre-refunded 4/01/10)
1,260 Morgan Local School District, Morgan, Muskingum and 12/10 at 101.00 AA (4) 1,363,572
Washington Counties, Ohio, Unlimited Tax General Obligation
School Improvement Bonds, Series 2000, 5.750%, 12/01/22
(Pre-refunded 12/01/10)
460 New Albany Plain Local School District, Franklin County, 6/12 at 100.00 Aaa 498,447
Ohio, General Obligation Bonds, Series 2002,
5.500%, 12/01/17 (Pre-refunded 6/01/12) - FGIC Insured
4,315 Ohio Capital Corporation for Housing, FHA-Insured 2/09 at 102.00 N/R (4) 4,575,108
Section 8 Assisted Mortgage Loan Revenue Refunding
Bonds, Series 1999G, 5.950%, 2/01/24 (Pre-refunded 2/01/09)
Olentangy Local School District, Delaware and Franklin
Counties, Ohio, General Obligation Bonds, Series 2004A:
1,315 5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AAA 1,433,771
3,380 5.250%, 12/01/24 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AAA 3,685,282
6,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 N/R (4) 6,224,157
Hospital Revenue Refunding and Improvement Bonds,
Series 1998, 5.375%, 11/01/29 (Pre-refunded 11/01/08)
1,220 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 1,329,544
Ohio, General Obligation Bonds, Series 2000,
6.000%, 12/01/20 (Pre-refunded 6/01/11) - FGIC Insured
1,000 Princeton City School District, Butler County, Ohio, General 12/13 at 100.00 AAA 1,072,510
Obligation Bonds, Series 2003, 5.000%, 12/01/30
(Pre-refunded 12/01/13) - MBIA Insured
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,730 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 1,793,110
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
1,670 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 N/R (4) 1,834,161
Bonds, MedCentral Health System Obligated Group,
Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10)
2,830 Springfield Township, Hamilton County, Ohio, Various 12/11 at 100.00 Aa3 (4) 3,016,554
Purpose Limited Tax General Obligation Bonds,
Series 2002, 5.250%, 12/01/27 (Pre-refunded 12/01/11)
2,000 Sugarcreek Local School District, Athens County, Ohio, 12/13 at 100.00 Aaa 2,174,860
General Obligation Bonds, Series 2003, 5.250%, 12/01/27
(Pre-refunded 12/01/13) - MBIA Insured
2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,100,260
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
56,345 Total U.S. Guaranteed 59,843,405
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.0% (4.7% OF TOTAL INVESTMENTS)
4,000 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 Aaa 4,169,720
System Improvement Revenue Bonds, Series 2002,
5.000%, 2/15/22 - MBIA Insured
3,000 Ohio Air Quality Development Authority, Revenue Bonds, 4/07 at 102.00 Aaa 3,066,900
JMG Funding Limited Partnership Project, Series 1997,
5.625%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax)
2,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 2,105,940
Interest Certificates, Belleville Hydroelectric Project -
Joint Venture 5, Series 2004, 5.000%, 2/15/20 -
AMBAC Insured
1,600 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,623,952
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,600 Total Utilities 10,966,512
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.0% (2.0% OF TOTAL INVESTMENTS)
1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 1,143,310
Refunding and Improvement Bonds, Series 1993G,
5.500%, 1/01/21 - MBIA Insured
40 Cleveland, Ohio, Waterworks First Mortgage Revenue 7/07 at 101.00 AAA 40,458
Refunding and Improvement Bonds, Series 1996H,
5.750%, 1/01/26 - MBIA Insured
580 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 589,953
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 1,324,652
Series 2005, 5.250%, 10/01/22 - FSA Insured
1,500 Ohio Water Development Authority, Water Pollution Control 6/15 at 100.00 AAA 1,594,950
Loan Fund Revenue Bonds, Water Quality Project,
Series 2005B, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
4,340 Total Water and Sewer 4,693,323
------------------------------------------------------------------------------------------------------------------------------------
$ 222,881 Total Investments (cost $225,357,717) - 149.3% 234,670,158
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (2,770,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 2,294,294
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.0)% (77,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 157,194,452
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
39
Nuveen Ohio Dividend Advantage Municipal Fund (NXI)
Portfolio of
INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7% (1.2% OF TOTAL INVESTMENTS)
$ 1,060 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,107,965
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.9% (15.5% OF TOTAL INVESTMENTS)
1,165 Cleveland-Cuyahoga County Port Authority, Ohio, Lease 8/15 at 100.00 AAA 1,223,821
Revenue Bonds, Euclid Avenue Housing Corporation -
Fenn Tower Project, Series 2005, 5.000%, 8/01/23 -
AMBAC Insured
700 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 726,327
Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41
2,650 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 2,743,095
Ohio Northern University, Series 2002, 5.000%, 5/01/22
500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa1 517,840
Wittenberg University, Series 2005, 5.000%, 12/01/24
2,000 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 AAA 2,125,200
Bonds, University of Dayton, 2006 Project, Series 2006,
5.000%, 12/01/30 - AMBAC Insured
2,000 Ohio Higher Educational Facilities Commission, Revenue 11/11 at 101.00 AA 2,107,440
Bonds, Denison University, Series 2001, 5.200%, 11/01/26
500 Ohio Higher Educational Facilities Commission, Revenue Bonds, 5/16 at 100.00 Aaa 529,385
Xavier University, Series 2006, 5.000%, 5/01/22 - CIFG Insured
1,760 Ohio University at Athens, Subordinate Lien General Receipts 6/14 at 100.00 AAA 1,862,203
Bonds, Series 2004, 5.000%, 12/01/20 - MBIA Insured
2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 A+ 2,903,203
Series 2002F, 5.375%, 6/01/19 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
14,010 Total Education and Civic Organizations 14,738,514
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.1% (7.5% OF TOTAL INVESTMENTS)
1,690 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 AAA 1,622,417
Cincinnati Children's Medical Center Project, Series 2006K,
4.375%, 5/15/32 - FGIC Insured (UB)
1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 AA- 1,207,723
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 2,033,226
Healthcare Obligated Group, Series 1999, 5.375%, 11/15/29 -
AMBAC Insured
330 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 347,447
Bonds, Upper Valley Medical Center Inc., Series 2006,
5.250%, 5/15/21
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 1,035,260
Initiatives, Series 2004A, 5.000%, 5/01/30
335 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 361,341
Bonds, MedCentral Health System Obligated Group,
Series 2000B, 6.375%, 11/15/30
500 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 524,745
Health System Group, Series 2006, 5.250%, 11/15/36
------------------------------------------------------------------------------------------------------------------------------------
6,905 Total Health Care 7,132,159
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.7% (3.9% OF TOTAL INVESTMENTS)
2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue 4/11 at 102.00 Aa2 3,012,171
Bonds, Asbury Woods Project, Series 2001A, 5.450%, 4/01/26
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
Ohio Housing Finance Agency, FHA-Insured Multifamily Housing
Mortgage Revenue Bonds, Madonna Homes, Series 2006M:
$ 310 4.450%, 10/01/09 (Alternative Minimum Tax) No Opt. Call Aaa $ 309,473
340 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 340,660
------------------------------------------------------------------------------------------------------------------------------------
3,535 Total Housing/Multifamily 3,662,304
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.1% (2.1% OF TOTAL INVESTMENTS)
405 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 408,726
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
990 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,003,068
Securities Program Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
45 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 45,366
Securities Program Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
500 Ohio Housing Finance Agency, Single Family Mortgage 9/15 at 100.00 Aaa 513,140
Revenue Bonds, Series 2006H, 5.000%, 9/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,940 Total Housing/Single Family 1,970,300
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.5% (1.7% OF TOTAL INVESTMENTS)
400 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R 402,968
Revenue Bonds, Bond Fund Program - Columbia National
Group Project, Series 2005D, 5.000%, 5/15/20
(Alternative Minimum Tax)
1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 1,206,670
Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21
------------------------------------------------------------------------------------------------------------------------------------
1,400 Total Industrials 1,609,638
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,495 Hamilton County, Ohio, Health Care Revenue Refunding 1/17 at 100.00 BBB 1,518,905
Bonds, Life Enriching Communities Project, Series 2006A,
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.5% (18.0% OF TOTAL INVESTMENTS)
1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,030,140
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25
1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aaa 1,583,010
General Obligation Bonds, Series 2005, 5.000%, 12/01/30 -
FSA Insured
500 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 530,725
5.000%, 12/01/21
2,965 Franklin County, Worthington, Ohio, Various Purpose Unlimited 12/11 at 100.00 AA 3,156,476
Tax General Obligation Bonds, Series 2001, 5.375%, 12/01/21
1,000 Lakewood City School District, Cuyahoga County, Ohio, General 12/14 at 100.00 AAA 1,091,730
Obligation Bonds, Series 2004, 5.250%, 12/01/16 - FSA Insured
1,005 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 1,067,963
General Obligation Bonds, Series 2006, 5.000%, 12/01/25 -
FSA Insured
1,000 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,051,890
Obligation Bonds, Series 2004, 5.000%, 12/01/25 -
FGIC Insured
2,000 Ohio, General Obligation Higher Education Capital Facilities 2/11 at 100.00 AA+ 2,076,620
Bonds, Series 2001A, 5.000%, 2/01/20
1,275 Sycamore Community School District, Hamilton County, Ohio, 12/09 at 101.00 AAA 1,316,170
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 2,545,169
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 1,602,731
Limited Tax General Obligation Refunding Bonds, Series 2001,
5.500%, 12/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,145 Total Tax Obligation/General 17,052,624
------------------------------------------------------------------------------------------------------------------------------------
41
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.8% (8.0% OF TOTAL INVESTMENTS)
$ 2,000 Franklin County, Ohio, Excise Tax and Lease Revenue 12/15 at 100.00 AAA $ 2,108,640
Anticipation Bonds, Convention Facilities Authority,
Series 2005, 5.000%, 12/01/27 - AMBAC Insured
Hamilton County Convention Facilities Authority, Ohio,
First Lien Revenue Bonds, Series 2004:
1,415 5.000%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 1,492,584
1,000 5.000%, 12/01/33 - FGIC Insured 6/14 at 100.00 AAA 1,043,890
345 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 364,506
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
1,000 Ohio State Building Authority, State Facilities Bonds, Adult 4/15 at 100.00 AAA 1,058,670
Correctional Building Fund Project, Series 2005A,
5.000%, 4/01/23 - FSA Insured
1,400 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB+ 1,521,114
Taxes Loan Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
7,160 Total Tax Obligation/Limited 7,589,404
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.3% (2.2% OF TOTAL INVESTMENTS)
2,000 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA 2,109,300
5.500%, 2/15/26
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 44.1% (29.7% OF TOTAL INVESTMENTS) (4)
1,700 Cincinnati, Ohio, Water System Revenue Bonds, Series 2001, 6/11 at 100.00 AA+ (4) 1,793,653
5.125%, 12/01/21 (Pre-refunded 6/01/11)
1,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,111,830
Obligation Bonds, Series 2004, 5.500%, 12/01/15
(Pre-refunded 12/01/14) - FSA Insured
1,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/11 at 101.00 BBB (4) 1,136,330
Ohio Presbyterian Retirement Services, Series 2001A,
7.125%, 7/01/29 (Pre-refunded 7/01/11)
1,470 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 101.00 BBB (4) 1,530,682
Revenue Bonds, Twin Towers, Series 1999A,
5.750%, 10/01/19 (Pre-refunded 10/01/08)
Jackson City School District, Jackson County, Ohio, Unlimited
Tax General Obligation School Improvement Bonds, Series 2001:
880 5.500%, 12/01/22 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 Aaa 943,386
935 5.500%, 12/01/23 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 Aaa 1,002,348
2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aaa 2,110,180
Tax General Obligation School Improvement and Refunding
Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) -
FGIC Insured
910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 975,056
Series 2001, 5.500%, 12/01/18 (Pre-refunded 12/01/10) -
AMBAC Insured
1,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,041,140
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 (Pre-refunded 12/01/09) -
FGIC Insured
1,000 Nordonia Hills City School District, Ohio, School Improvement 12/10 at 101.00 AAA 1,069,720
Bonds, Series 2000, 5.450%, 12/01/25 (Pre-refunded
12/01/10) - AMBAC Insured
1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,071,490
Bonds, University of Dayton, Series 2000, 5.500%, 12/01/25
(Pre-refunded 12/01/10) - AMBAC Insured
1,900 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AAA 2,071,608
Counties, Ohio, General Obligation Bonds, Series 2004A,
5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured
Parma Community General Hospital Association, Ohio, Hospital
Revenue Refunding and Improvement Bonds, Series 1998:
2,250 5.250%, 11/01/13 (Pre-refunded 11/01/08) 11/08 at 101.00 A- (4) 2,329,358
2,000 5.375%, 11/01/29 (Pre-refunded 11/01/08) 11/08 at 101.00 N/R (4) 2,074,720
2,000 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 2,130,340
6.000%, 8/01/16 (Pre-refunded 8/01/09) - FSA Insured
665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 N/R (4) 730,370
Bonds, MedCentral Health System Obligated Group,
Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10)
1,850 Swanton Local School District, Fulton County, Ohio, General 12/11 at 101.00 AAA 1,987,418
Obligation Bonds, Series 2001, 5.250%, 12/01/25
(Pre-refunded 12/01/11) - FGIC Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,500 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA $ 1,632,585
Series 2001A, 5.750%, 6/01/17 (Pre-refunded 6/01/11) -
FGIC Insured
1,500 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 1,575,195
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,560 Total U.S. Guaranteed 28,317,409
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.8% (6.0% OF TOTAL INVESTMENTS)
1,440 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 Aaa 1,526,040
System Improvement Revenue Bonds, Series 2002,
5.250%, 2/15/17 - MBIA Insured
2,000 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,064,660
Bonds, Ohio Power Company Project, Series 1999C,
5.150%, 5/01/26 - AMBAC Insured
1,000 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 1,051,720
Certificates, Belleville Hydroelectric Project - Joint Venture 5,
Series 2004, 5.000%, 2/15/21 - AMBAC Insured
1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,014,970
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,440 Total Utilities 5,657,390
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.9% (2.6% OF TOTAL INVESTMENTS)
2,375 Ohio Water Development Authority, Revenue Bonds, Water 12/13 at 100.00 Aaa 2,504,034
Development Community Assistance Program, Series 2003,
5.000%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 90,025 Total Investments (cost $91,021,264) - 147.8% 94,969,946
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.7)% (1,120,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,403,041
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.2)% (31,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 64,252,987
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
43
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ)
Portfolio of
INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 8.8% (5.9% OF TOTAL INVESTMENTS)
$ 3,000 Ohio State Sewage and Solid Waste Disposal Facilities, 11/11 at 100.00 A1 $ 3,154,950
Revenue Bonds, Anheuser-Busch Project, Series 2001,
5.500%, 11/01/35 (Alternative Minimum Tax)
925 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 966,856
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
3,925 Total Consumer Staples 4,121,806
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.4% (9.5% OF TOTAL INVESTMENTS)
1,345 Bowling Green State University, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 1,442,445
Series 2003, 5.250%, 6/01/18 - AMBAC Insured
450 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 466,925
Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41
1,000 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 AAA 1,062,600
Bonds, University of Dayton, 2006 Project, Series 2006,
5.000%, 12/01/30 - AMBAC Insured
1,050 Ohio Higher Educational Facilities Commission, Revenue 12/11 at 100.00 Baa1 1,111,772
Bonds, Wittenberg University, Series 2001, 5.500%, 12/01/15
250 Ohio Higher Educational Facilities Commission, Revenue Bonds, 5/16 at 100.00 Aaa 264,693
Xavier University, Series 2006, 5.000%, 5/01/22 - CIFG Insured
1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 1,051,980
Series 2003C, 5.000%, 6/01/22 - FGIC Insured
1,245 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,316,973
Series 2004D, 5.000%, 6/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,340 Total Education and Civic Organizations 6,717,388
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 23.4% (15.5% OF TOTAL INVESTMENTS)
725 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 728,205
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.000%, 11/15/08
1,230 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 AAA 1,180,812
Cincinnati Children's Medical Center Project, Series 2006K,
4.375%, 5/15/32 - FGIC Insured (UB)
1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 1,056,660
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- 1,953,397
Improvement Bonds, Catholic Healthcare Partners,
Series 2001A, 5.400%, 10/01/21
225 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 236,896
Bonds, Upper Valley Medical Center Inc., Series 2006,
5.250%, 5/15/21
700 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 724,682
Initiatives, Series 2004A, 5.000%, 5/01/30
665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 717,289
Bonds, MedCentral Health System Obligated Group,
Series 2000B, 6.375%, 11/15/30
350 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 367,322
Health System Group, Series 2006, 5.250%, 11/15/36
3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 3,954,168
Union Hospital Project, Series 2001, 5.750%, 10/01/26 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
10,415 Total Health Care 10,919,431
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.3% (2.2% OF TOTAL INVESTMENTS)
1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa 1,056,070
Housing Mortgage Revenue Bonds, Agler Project,
Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax)
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
Ohio Housing Finance Agency, FHA-Insured Multifamily Housing
Mortgage Revenue Bonds, Madonna Homes, Series 2006M:
$ 250 4.450%, 10/01/09 (Alternative Minimum Tax) No Opt. Call Aaa $ 249,575
250 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 250,485
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total Housing/Multifamily 1,556,130
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.3% (1.5% OF TOTAL INVESTMENTS)
50 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/10 at 100.00 Aaa 51,278
Securities Program Residential Mortgage Revenue Bonds,
Series 2001A, 5.500%, 9/01/34 (Alternative Minimum Tax)
1,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 1,026,280
Bonds, Series 2006H, 5.000%, 9/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,050 Total Housing/Single Family 1,077,558
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3% (1.5% OF TOTAL INVESTMENTS)
1,045 Hamilton County, Ohio, Health Care Revenue Refunding 1/17 at 100.00 BBB 1,061,710
Bonds, Life Enriching Communities Project, Series 2006A,
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.4% (21.5% OF TOTAL INVESTMENTS)
1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation 11/11 at 101.00 Aaa 1,772,692
Bonds, One Renaissance Center Acquisition, Series 2001,
5.000%, 11/01/26 - AMBAC Insured
Cleveland Municipal School District, Cuyahoga County, Ohio,
General Obligation Bonds, Series 2004:
1,000 5.000%, 12/01/15 - FSA Insured 6/14 at 100.00 AAA 1,069,320
1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,059,700
400 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 424,580
Series 2004, 5.000%, 12/01/21
1,065 Lakewood City School District, Cuyahoga County, Ohio, 12/14 at 100.00 AAA 1,162,692
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 2,613,600
Center Bonds, Series 2002, 5.500%, 12/01/22 - FGIC Insured
1,005 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 1,067,963
General Obligation Bonds, Series 2006, 5.000%, 12/01/25 -
FSA Insured
2,665 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 AAA 2,823,861
Obligation Bonds, Series 2005, 5.000%, 12/01/28 -
FGIC Insured
1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AAA 2,036,518
5.000%, 12/01/25 - FGIC Insured
1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,074,070
5.500%, 12/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,215 Total Tax Obligation/General 15,104,996
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.1% (10.0% OF TOTAL INVESTMENTS)
800 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 835,112
First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/33 -
FGIC Insured
250 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 264,135
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 1,058,670
Adult Correctional Building Fund Project, Series 2005A,
5.000%, 4/01/23 - FSA Insured
1,500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 1,570,470
Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 -
MBIA Insured
1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,162,879
Capital Facilities, Series 2004A-II, 5.000%, 12/01/18
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 BBB+ 1,078,370
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 1,065,270
Civic Theatre Project, Series 2001, 5.500%, 12/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,645 Total Tax Obligation/Limited 7,034,906
------------------------------------------------------------------------------------------------------------------------------------
45
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 39.1% (26.0% OF TOTAL INVESTMENTS) (4)
$ 3,495 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA $ 3,670,309
5.250%, 1/01/18 (Pre-refunded 1/01/10) - FSA Insured
2,605 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 2,896,317
Obligation Bonds, Series 2004, 5.500%, 12/01/15
(Pre-refunded 12/01/14) - FSA Insured
1,000 Greater Cleveland Regional Transit Authority, Ohio, General 12/11 at 100.00 Aaa 1,060,440
Obligation Capital Improvement Bonds, Series 2001A,
5.125%, 12/01/21 (Pre-refunded 12/01/11) - MBIA Insured
1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 101.00 BBB (4) 1,042,080
Revenue Bonds, Twin Towers, Series 1999A,
5.800%, 10/01/23 (Pre-refunded 10/01/08)
4,000 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 4,307,517
Obligation Bonds, Series 2001, 5.500%, 12/01/21
(Pre-refunded 12/01/11) - FSA Insured
1,710 Marysville Exempted Village School District, Ohio, Certificates 6/15 at 100.00 AAA 1,873,698
of Participation, School Facilities Project, Series 2005,
5.250%, 12/01/21 (Pre-refunded 6/01/15) - MBIA Insured
730 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 770,128
Water Development, Series 2001A, 5.000%, 12/01/21
(Pre-refunded 12/01/11) - FSA Insured
1,050 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AAA 1,161,479
Counties, Ohio, General Obligation Bonds, Series 2004A,
5.500%, 12/01/15 (Pre-refunded 6/01/14) - FGIC Insured
1,335 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 N/R (4) 1,466,231
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30
(Pre-refunded 11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
16,925 Total U.S. Guaranteed 18,248,199
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.1% (6.0% OF TOTAL INVESTMENTS)
2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,580,825
Bonds, Ohio Power Company Project, Series 1999C,
5.150%, 5/01/26 - AMBAC Insured
595 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 626,517
Interest Certificates, Belleville Hydroelectric Project -
Joint Venture 5, Series 2004, 5.000%, 2/15/20 -
AMBAC Insured
1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,014,970
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,095 Total Utilities 4,222,312
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.6% (0.4% OF TOTAL INVESTMENTS)
270 Ohio Water Development Authority, Revenue Bonds, 12/11 at 100.00 AAA 282,288
Fresh Water Development, Series 2001A, 5.000%, 12/01/21 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 66,425 Total Investments (cost $67,942,319) - 150.8% 70,346,724
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (820,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 1,116,577
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.5)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 46,643,301
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
46
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ)
Portfolio of
INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.3% (4.3% OF TOTAL INVESTMENTS)
$ 1,990 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,080,048
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.6% (6.5% OF TOTAL INVESTMENTS)
350 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 363,164
Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41
1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 1,213,898
Ohio Northern University, Series 2002, 5.750%, 5/01/16
500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa1 517,840
Wittenberg University, Series 2005, 5.000%, 12/01/24
1,000 Ohio Higher Educational Facilities Commission, General 12/16 at 100.00 AAA 1,062,600
Revenue Bonds, University of Dayton, 2006 Project,
Series 2006, 5.000%, 12/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
2,975 Total Education and Civic Organizations 3,157,502
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.3% (8.9% OF TOTAL INVESTMENTS)
360 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 361,591
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.000%, 11/15/08
870 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 AAA 835,209
Cincinnati Children's Medical Center Project, Series 2006K,
4.375%, 5/15/32 - FGIC Insured (UB)
1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,849,155
Firelands Regional Medical Center, Series 2002A,
5.500%, 8/15/22
160 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 168,459
Bonds, Upper Valley Medical Center Inc., Series 2006,
5.250%, 5/15/21
500 Montgomery County, Ohio, Revenue Bonds, Catholic 5/14 at 100.00 AA 517,630
Health Initiatives, Series 2004A, 5.000%, 5/01/30
335 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 361,341
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30
250 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 262,373
Health System Group, Series 2006, 5.250%, 11/15/36
------------------------------------------------------------------------------------------------------------------------------------
4,225 Total Health Care 4,355,758
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.1% (0.7% OF TOTAL INVESTMENTS)
Ohio Housing Finance Agency, FHA-Insured Multifamily
Housing Mortgage Revenue Bonds, Madonna Homes,
Series 2006M:
150 4.450%, 10/01/09 (Alternative Minimum Tax) No Opt. Call Aaa 149,745
200 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 200,388
------------------------------------------------------------------------------------------------------------------------------------
350 Total Housing/Multifamily 350,133
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.2% (2.8% OF TOTAL INVESTMENTS)
190 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 191,748
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
610 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 618,052
Securities Program Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
45 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 45,366
Securities Program Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
500 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 513,140
Bonds, Series 2006H, 5.000%, 9/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,345 Total Housing/Single Family 1,368,306
------------------------------------------------------------------------------------------------------------------------------------
47
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) (continued)
Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3% (1.6% OF TOTAL INVESTMENTS)
$ 745 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, 1/17 at 100.00 BBB $ 756,913
Life Enriching Communities Project, Series 2006A,
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.3% (22.4% OF TOTAL INVESTMENTS)
2,000 Canal Winchester Local School District, Franklin and Fairfield 12/08 at 102.00 AAA 2,083,040
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, Series 2004, 12/14 at 100.00 AA+ 318,435
5.000%, 12/01/21
2,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa2 2,126,020
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 1,051,980
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 1,332,827
5.125%, 12/01/26 - AMBAC Insured
500 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 531,325
General Obligation Bonds, Series 2006, 5.000%, 12/01/25 -
FSA Insured
1,190 Miami East Local School District, Miami County, Ohio, 12/12 at 100.00 AAA 1,248,417
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+ 1,043,710
Bonds, Series 2001B, 5.000%, 9/15/20
1,130 Solon, Ohio, General Obligation Refunding and Improvement 12/12 at 100.00 AA+ 1,190,918
Bonds, Series 2002, 5.000%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
10,390 Total Tax Obligation/General 10,926,672
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.0% (13.5% OF TOTAL INVESTMENTS)
600 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 626,334
First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/33 -
FGIC Insured
1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 1,030,480
Certificates of Participation, Series 2003, 5.000%, 11/01/30
1,250 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,341,788
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 211,308
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
1,000 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 1,046,980
Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 -
MBIA Insured
2,000 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call AAA 2,294,180
Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,050 Total Tax Obligation/Limited 6,551,070
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.4% (3.6% OF TOTAL INVESTMENTS)
1,550 Ohio Turnpike Commission, Revenue Refunding Bonds, No Opt. Call AAA 1,759,529
Series 1998A, 5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 47.3% (31.8% OF TOTAL INVESTMENTS) (4)
1,475 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 Aaa 1,639,005
Obligation Bonds, Series 2002, 5.750%, 12/01/21
(Pre-refunded 12/01/12) - FGIC Insured
500 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 101.00 BBB (4) 520,640
Revenue Bonds, Twin Towers, Series 1999A,
5.750%, 10/01/19 (Pre-refunded 10/01/08)
1,000 Hamilton County, Ohio, Sewer System Revenue Refunding 12/11 at 100.00 AAA 1,065,920
and Improvement Bonds, Metropolitan Sewer District of
Greater Cincinnati, Series 2001A, 5.250%, 12/01/18
(Pre-refunded 12/01/11) - MBIA Insured
1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA- (4) 1,083,670
5.375%, 12/01/22 (Pre-refunded 12/01/12)
1,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 1,095,260
Kettering Medical Center, Series 1999, 6.750%, 4/01/18
(Pre-refunded 4/01/10)
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA (4) 1,071,640
Initiatives, Series 2001, 5.500%, 9/01/12
(Pre-refunded 9/01/11)
2,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 10/12 at 100.00 AA- (4) 2,171,760
Case Western Reserve University, Series 2002B,
5.500%, 10/01/22 (Pre-refunded 10/01/12)
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,000 Ohio State University, General Receipts Bonds, Series 1999A, 12/09 at 101.00 AA (4) $ 1,064,810
5.800%, 12/01/29 (Pre-refunded 12/01/09)
1,230 Ohio Water Development Authority, Revenue Bonds, 12/11 at 100.00 AAA 1,297,613
Fresh Water Development, Series 2001A, 5.000%, 12/01/21
(Pre-refunded 12/01/11) - FSA Insured
1,000 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AAA 1,090,320
Counties, Ohio, General Obligation Bonds, Series 2004A,
5.250%, 12/01/21 (Pre-refunded 6/01/14) - FGIC Insured
1,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 N/R (4) 1,037,360
Hospital Revenue Refunding and Improvement Bonds,
Series 1998, 5.375%, 11/01/29 (Pre-refunded 11/01/08)
1,535 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA 1,636,187
Counties, Ohio, General Obligation Bonds, School Facilities
Construction and Improvement, Series 2001, 5.250%, 12/01/20
(Pre-refunded 12/01/11) - FGIC Insured
665 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 N/R (4) 730,370
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
14,405 Total U.S. Guaranteed 15,504,555
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.8% (3.3% OF TOTAL INVESTMENTS)
1,500 American Municipal Power Ohio Inc., Wadsworth, 2/12 at 100.00 Aaa 1,589,625
Electric System Improvement Revenue Bonds, Series 2002,
5.250%, 2/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.9% (0.6% OF TOTAL INVESTMENTS)
270 Ohio Water Development Authority, Revenue Bonds, 12/11 at 100.00 AAA 282,285
Fresh Water Development, Series 2001A, 5.000%, 12/01/21 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 45,795 Total Investments (cost $46,378,726) - 148.5% 48,682,396
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (580,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.6% 1,177,572
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (16,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 32,779,968
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT JANUARY 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $3,600,000 Receive 3-Month USD-LIBOR 5.682% Semi-Annually 7/10/07 7/10/12 $(68,554)
Goldman Sachs 1,100,000 Pay 3-Month USD-LIBOR 5.803 Semi-Annually 7/10/07 7/10/37 54,184
------------------------------------------------------------------------------------------------------------------------------------
$(14,370)
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
FUTURES CONTRACTS OUTSTANDING AT JANUARY 31, 2007:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
TYPE POSITION CONTRACTS EXPIRATION JANUARY 31, 2007 (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
U.S. 10-Year Treasury Notes Long 16 3/07 $1,708,000 $(30,923)
------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
49
Statement of
ASSETS AND LIABILITIES January 31, 2007 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $254,446,108,
$168,152,787 and $44,348,682, respectively) $269,363,543 $175,455,117 $46,591,008
Cash 1,044,553 21,458 81,755
Receivables:
Interest 3,063,917 2,240,625 555,474
Variation margin on futures contracts -- -- --
Other assets 20,113 7,499 7,926
------------------------------------------------------------------------------------------------------------------------------------
Total assets 273,492,126 177,724,699 47,236,163
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- --
Floating rate obligations -- 5,640,000 --
Unrealized depreciation on forward swaps -- -- 22,901
Accrued expenses:
Management fees 145,870 92,446 15,453
Other 65,691 40,546 8,791
Preferred share dividends payable 45,535 23,815 10,892
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 257,096 5,796,807 58,037
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $179,235,030 $115,927,892 $31,178,126
====================================================================================================================================
Common shares outstanding 11,714,953 7,751,048 2,064,990
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.30 $ 14.96 $ 15.10
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 117,150 $ 77,510 $ 20,650
Paid-in surplus 163,946,943 108,392,808 29,246,175
Undistributed (Over-distribution of) net investment income 164,627 79,018 17,806
Accumulated net realized gain (loss) from investments and
derivative transactions 88,875 76,226 (325,930)
Net unrealized appreciation (depreciation) of investments and
derivative transactions 14,917,435 7,302,330 2,219,425
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $179,235,030 $115,927,892 $31,178,126
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
50
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $225,357,717, $91,021,264,
$67,942,319 and $46,378,726, respectively) $234,670,158 $94,969,946 $70,346,724 $48,682,396
Cash -- 368,644 410,606 624,981
Receivables:
Interest 2,590,618 1,107,440 738,472 588,548
Variation margin on futures contracts -- -- -- 4,750
Other assets 4,180 3,073 8,018 2,888
------------------------------------------------------------------------------------------------------------------------------------
Total assets 237,264,956 96,449,103 71,503,820 49,903,563
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 80,794 -- -- --
Floating rate obligations 2,770,000 1,120,000 820,000 580,000
Unrealized depreciation on forward swaps -- -- -- 14,370
Accrued expenses:
Management fees 125,418 31,190 23,145 14,046
Other 57,520 24,119 10,315 13,641
Preferred share dividends payable 36,772 20,807 7,059 1,538
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,070,504 1,196,116 860,519 623,595
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $157,194,452 $64,252,987 $46,643,301 $32,779,968
====================================================================================================================================
Common shares outstanding 9,746,032 4,242,916 3,121,477 2,158,239
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 16.13 $ 15.14 $ 14.94 $ 15.19
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 97,460 $ 42,429 $ 31,215 $ 21,582
Paid-in surplus 147,811,741 60,251,477 44,255,652 30,537,824
Undistributed (Over-distribution of) net investment income (159,489) (44,961) (80,343) (39,096)
Accumulated net realized gain (loss) from investments and
derivative transactions 132,299 55,360 32,372 1,281
Net unrealized appreciation (depreciation) of investments and
derivative transactions 9,312,441 3,948,682 2,404,405 2,258,377
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $157,194,452 $64,252,987 $46,643,301 $32,779,968
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
51
Statement of
OPERATIONS Six Months Ended January 31, 2007 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,604,233 $4,230,148 $1,130,615
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 870,215 552,063 151,839
Preferred shares - auction fees 118,467 70,575 20,165
Preferred shares - dividend disbursing agent fees 10,082 10,082 5,041
Shareholders' servicing agent fees and expenses 9,932 7,888 314
Floating rate obligations interest expense and fees -- 41,964 --
Custodian's fees and expenses 33,308 29,835 8,839
Directors'/Trustees' fees and expenses 3,857 2,400 651
Professional fees 10,592 8,491 5,659
Shareholders' reports - printing and mailing expenses 18,823 9,423 5,016
Stock exchange listing fees 5,005 4,967 88
Investor relations expense 17,972 11,679 3,188
Other expenses 16,087 10,238 6,467
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,114,340 759,605 207,267
Custodian fee credit (15,663) (7,088) (3,039)
Expense reimbursement -- -- (63,691)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,098,677 752,517 140,537
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,505,556 3,477,631 990,078
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 847,044 653,940 82,450
Net realized gain (loss) from futures -- -- --
Change in net unrealized appreciation (depreciation)
of investments 1,790,662 696,475 336,140
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- 672
Change in net unrealized appreciation (depreciation)
of futures -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 2,637,706 1,350,415 419,262
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,367,771) (805,541) (247,591)
From accumulated net realized gains (232,090) (174,588) (4,070)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,599,861) (980,129) (251,661)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 6,543,401 $3,847,917 $1,157,679
====================================================================================================================================
See accompanying notes to financial statements.
52
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,635,407 $2,280,571 $1,658,545 $1,178,823
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 747,327 306,745 227,751 158,824
Preferred shares - auction fees 97,042 39,069 30,246 20,794
Preferred shares - dividend disbursing agent fees 15,123 5,041 5,041 5,041
Shareholders' servicing agent fees and expenses 10,995 475 532 399
Floating rate obligations interest expense and fees 15,893 6,431 4,704 3,330
Custodian's fees and expenses 37,948 16,931 17,551 11,637
Directors'/Trustees' fees and expenses 3,287 1,357 1,405 730
Professional fees 9,766 6,733 6,246 5,669
Shareholders' reports - printing and mailing expenses 11,403 7,839 6,006 4,919
Stock exchange listing fees 5,016 182 134 92
Investor relations expense 15,723 6,239 4,681 3,360
Other expenses 12,032 8,220 6,027 5,289
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 981,555 405,262 310,324 220,084
Custodian fee credit (12,299) (5,017) (6,893) (3,844)
Expense reimbursement -- (120,694) (95,536) (74,990)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 969,256 279,551 207,895 141,250
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,666,151 2,001,020 1,450,650 1,037,573
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 599,556 139,475 142,997 40,753
Net realized gain (loss) from futures -- -- -- 66,475
Change in net unrealized appreciation (depreciation)
of investments 1,234,300 581,558 454,877 301,153
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- 643
Change in net unrealized appreciation (depreciation)
of futures -- -- -- (54,247)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 1,833,856 721,033 597,874 354,777
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,185,781) (485,634) (372,420) (245,529)
From accumulated net realized gains (109,526) (34,050) (39,456) (21,569)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,295,307) (519,684) (411,876) (267,098)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 5,204,700 $2,202,369 $1,636,648 $1,125,252
====================================================================================================================================
See accompanying notes to financial statements.
53
Statement of
CHANGES IN NET ASSETS (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW)
---------------------------- ------------------------------ ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/07 7/31/06 1/31/07 7/31/06 1/31/07 7/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,505,556 $ 11,188,131 $ 3,477,631 $ 7,082,116 $ 990,078 $ 1,998,909
Net realized gain (loss)
from investments 847,044 879,750 653,940 522,482 82,450 25,827
Net realized gain (loss)
from forward swaps -- -- -- -- -- 36,525
Net realized gain (loss)
from futures -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments 1,790,662 (6,894,595) 696,475 (3,676,369) 336,140 (863,821)
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- -- -- 672 (18,351)
Change in net unrealized appreciation
(depreciation) of futures -- -- -- -- -- --
Distributions to
Preferred Shareholders:
From net investment income (1,367,771) (2,438,505) (805,541) (1,425,891) (247,591) (422,322)
From accumulated net
realized gains (232,090) (204,993) (174,588) (177,593) (4,070) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares
from operations 6,543,401 2,529,788 3,847,917 2,324,745 1,157,679 756,767
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,182,237) (9,516,815) (2,813,631) (6,136,157) (805,171) (1,790,433)
From accumulated net realized gains (859,878) (1,317,932) (717,747) (1,135,132) (16,105) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (5,042,115) (10,834,747) (3,531,378) (7,271,289) (821,276) (1,790,433)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 139,063 -- 83,158 18,628 36,099
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 139,063 -- 83,158 18,628 36,099
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 1,501,286 (8,165,896) 316,539 (4,863,386) 355,031 (997,567)
Net assets applicable to Common
shares at the beginning
of period 177,733,744 185,899,640 115,611,353 120,474,739 30,823,095 31,820,662
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $179,235,030 $177,733,744 $115,927,892 $115,611,353 $31,178,126 $30,823,095
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 164,627 $ 209,079 $ 79,018 $ 220,559 $ 17,806 $ 80,490
====================================================================================================================================
See accompanying notes to financial statements.
54
OHIO OHIO OHIO
QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ)
---------------------------- ------------------------------ ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/07 7/31/06 1/31/07 7/31/06 1/31/07 7/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,666,151 $ 9,570,771 $ 2,001,020 $ 4,065,899 $ 1,450,650 $ 2,904,214
Net realized gain (loss)
from investments 599,556 61,521 139,475 104,619 142,997 135,984
Net realized gain (loss)
from forward swaps -- -- -- -- -- --
Net realized gain (loss) from futures -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments 1,234,300 (4,237,619) 581,558 (1,806,156) 454,877 (1,423,071)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of futures -- -- -- -- -- --
Distributions to
Preferred Shareholders:
From net investment income (1,185,781) (2,099,203) (485,634) (876,328) (372,420) (671,536)
From accumulated net
realized gains (109,526) (76,287) (34,050) (18,836) (39,456) (22,844)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares
from operations 5,204,700 3,219,183 2,202,369 1,469,198 1,636,648 922,747
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,626,499) (8,294,392) (1,552,907) (3,585,882) (1,098,759) (2,505,800)
From accumulated net realized gains (409,333) (528,190) (131,955) (142,845) (137,033) (149,733)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,035,832) (8,822,582) (1,684,862) (3,728,727) (1,235,792) (2,655,533)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 647,482 -- 122,421 -- 38,062
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 647,482 -- 122,421 -- 38,062
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,168,868 (4,955,917) 517,507 (2,137,108) 400,856 (1,694,724)
Net assets applicable to Common
shares at the beginning
of period 156,025,584 160,981,501 63,735,480 65,872,588 46,242,445 47,937,169
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $157,194,452 $156,025,584 $64,252,987 $63,735,480 $46,643,301 $46,242,445
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (159,489) $ (13,360) $ (44,961) $ (7,440) $ (80,343) $ (59,814)
====================================================================================================================================
See accompanying notes to financial statements.
55
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
OHIO
DIVIDEND ADVANTAGE 3 (NVJ)
----------------------------
SIX MONTHS
ENDED YEAR ENDED
1/31/07 7/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,037,573 $ 2,052,181
Net realized gain (loss) from investments 40,753 (2,845)
Net realized gain (loss) from forward swaps -- --
Net realized gain (loss) from futures 66,475 --
Change in net unrealized appreciation
(depreciation) of investments 301,153 (991,042)
Change in net unrealized appreciation
(depreciation) of forward swaps 643 (15,013)
Change in net unrealized appreciation
(depreciation) of futures (54,247) 23,324
Distributions to Preferred Shareholders:
From net investment income (245,529) (464,277)
From accumulated net realized gains (21,569) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 1,125,252 602,328
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (774,809) (1,709,126)
From accumulated net realized gains (76,833) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (851,642) (1,709,126)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 7,208
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 7,208
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 273,610 (1,099,590)
Net assets applicable to Common
shares at the beginning of period 32,506,358 33,605,948
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $32,779,968 $32,506,358
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ (39,096) $ (56,331)
====================================================================================================================================
See accompanying notes to financial statements.
56
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen Michigan Quality Income Municipal
Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP),
Nuveen Michigan Dividend Advantage Municipal Fund (NZW), Nuveen Ohio Quality
Income Municipal Fund, Inc. (NUO), Nuveen Ohio Dividend Advantage Municipal Fund
(NXI), Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) and Nuveen Ohio
Dividend Advantage Municipal Fund 3 (NVJ). Common shares of Michigan Quality
Income (NUM), Michigan Premium Income (NMP), and Ohio Quality Income (NUO) are
traded on the New York Stock Exchange while Common shares of Michigan Dividend
Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ)
and Ohio Dividend Advantage 3 (NVJ) are traded on the American Stock Exchange.
The Funds are registered under the Investment Company Act of 1940, as 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 or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Futures contracts are valued using the closing settlement price or,
in the absence of such a price, at the mean of the bid and asked prices. Prices
of forward swap contracts 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 municipal bond, future contract or a forward swap
contract, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment is 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 investments are valued at amortized cost, which approximates market
value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At January 31, 2007, there
were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
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
=============================================================================================================
Inverse Floating Rate Securities
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
58
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investment in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Floating
rate obligations interest expense and fees" in the Statement of Operations.
During the six months ended January 31, 2007, Michigan Premium Income (NMP),
Ohio Quality Income (NUO), Ohio Dividend Advantage (NXI), Ohio Dividend
Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ) invested in externally
deposited inverse floaters and/or self-deposited inverse floaters. Michigan
Quality Income (NUM) and Michigan Dividend Advantage (NZW)did not invest in any
such instruments during the six months ended January 31, 2007.
The average floating rate obligations outstanding and average annual interest
rate related to self-deposited inverse floaters during the six months ended
January 31, 2007, were as follows:
MICHIGAN OHIO OHIO OHIO OHIO
PREMIUM QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMP) (NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------------------------------------
Average floating rate obligations $2,176,304 $814,946 $329,728 $241,196 $170,761
Average annual interest rate 3.83% 3.87% 3.87% 3.87% 3.87%
=============================================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
Futures Contracts
The Funds are authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is noted in the
Statement of Assets and Liabilities. Additionally, the Statement of Assets and
Liabilities reflects a receivable or payable for the variation margin when
applicable.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
59
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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.
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)
------------------------ ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/07 7/31/06 1/31/07 7/31/06 1/31/07 7/31/06
----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 8,799 -- 5,425 1,186 2,278
================================================================================================================
OHIO QUALITY OHIO DIVIDEND OHIO DIVIDEND
INCOME (NUO) ADVANTAGE (NXI) ADVANTAGE 2 (NBJ)
------------------------ ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/07 7/31/06 1/31/07 7/31/06 1/31/07 7/31/06
----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 39,047 -- 7,448 -- 2,436
================================================================================================================
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-----------------------
SIX MONTHS
ENDED YEAR ENDED
1/31/07 7/31/06
----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 458
================================================================================================================
60
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended January 31, 2007, were
as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-------------------------------------------------------------------------------------------------------------
Purchases $ 9,148,069 $15,138,826 $1,246,571
Sales and maturities 16,823,850 12,857,535 2,163,570
=============================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------------------------------------
Purchases $22,084,434 $8,520,014 $5,685,463 $4,390,601
Sales and maturities 22,070,631 6,723,424 5,293,961 4,817,866
=============================================================================================================
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, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No.140. To the
extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At January 31, 2007, the cost of investments was as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-------------------------------------------------------------------------------------------------------------
Cost of investments $254,539,997 $162,483,871 $44,650,988
=============================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------------------------------------
Cost of investments $222,517,435 $89,811,546 $67,106,857 $45,784,717
=============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at January 31, 2007, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $15,032,358 $7,416,320 $2,257,393
Depreciation (208,812) (85,131) (317,373)
-------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $14,823,546 $7,331,189 $1,940,020
=============================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $9,604,334 $4,130,261 $2,509,096 $2,367,427
Depreciation (220,383) (92,649) (89,220) (49,742)
-------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $9,383,951 $4,037,612 $2,419,876 $2,317,685
=============================================================================================================
61
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at July 31, 2006, the Funds' last tax year end,
were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $877,261 $673,707 $222,544
Undistributed net ordinary income ** -- -- --
Undistributed net long-term capital gains 510,719 314,618 --
=============================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $587,921 $197,856 $121,200 $73,873
Undistributed net ordinary income ** -- -- 1,429 --
Undistributed net long-term capital gains 51,601 81,890 64,434 --
=============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on July 3, 2006, paid on August 1, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
July 31, 2006, was designated for purposes of the dividends paid deduction as
follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $12,059,759 $7,607,421 $2,223,571
Distributions from net ordinary income ** -- 20,208 --
Distributions from net long-term capital gains 1,522,925 1,313,082 --
=============================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,480,603 $4,505,621 $3,209,643 $2,183,862
Distributions from net ordinary income ** 749 8,426 350 --
Distributions from net long-term capital gains 604,477 161,865 172,587 --
=============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
62
At July 31, 2006, the Funds' last tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
MICHIGAN OHIO
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 3
(NZW) (NVJ)
--------------------------------------------------------------------------------
Expiration Year:
2011 $45,364 $ --
2012 -- --
2013 8,281 1,451
2014 -- 3,804
--------------------------------------------------------------------------------
Total $53,645 $5,255
================================================================================
The following Funds elected to defer net realized losses from investments
incurred from November 1, 2005 through July 31, 2006 ("post-October losses") in
accordance with federal income tax regulations. Post-October losses are treated
as having arisen on the first day of the current fiscal year:
MICHIGAN OHIO
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 3
(NZW) (NVJ)
--------------------------------------------------------------------------------
$28,241 $2,290
================================================================================
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on
the amount of assets within each individual fund. This pricing structure enables
Nuveen fund shareholders to benefit from growth in the assets within each
individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
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 (Unaudited) (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 stated in the table below. As
of January 31, 2007, the complex-level fee rate was .1844%.
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 preferred stock issued by or borrowings 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 its 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. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. Recent SEC guidance allows funds
to delay implementing FIN 48 into NAV calculations until the fund's last NAV
calculation in the first required financial statement reporting period. As a
result, the Funds must begin to incorporate FIN 48 into their NAV calculations
by July 31, 2007. At this time, management is continuing to evaluate the
implications of FIN 48 and does not expect the adoption of FIN 48 will have a
significant impact on the net assets or results of operations of the Funds.
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of January 31, 2007, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
65
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 March 1, 2007, to shareholders of record on
February 15, 2007, as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Dividend per share $.0590 $.0605 $.0645
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Dividend per share $.0595 $.0605 $.0565 $.0595
================================================================================
66
Financial
HIGHLIGHTS (Unaudited)
67
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
MICHIGAN QUALITY
INCOME (NUM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) $15.17 $ .47 $.23 $(.12) $(.02) $ .56 $(.36) $(.07) $ (.43)
2006 15.88 .96 (.52) (.21) (.02) .21 (.81) (.11) (.92)
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)
MICHIGAN PREMIUM
INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) 14.92 .45 .16 (.10) (.02) .49 (.36) (.09) (.45)
2006 15.55 .91 (.40) (.18) (.02) .31 (.79) (.15) (.94)
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)
====================================================================================================================================
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:
2007(b) $ -- $15.30 $14.70 5.03% 3.69%
2006 -- 15.17 14.41 (2.28) 1.41
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
MICHIGAN PREMIUM
INCOME (NMP)
---------------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) -- 14.96 14.59 5.40 3.32
2006 -- 14.92 14.27 (3.12) 2.06
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
=======================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- --------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
MICHIGAN QUALITY
INCOME (NUM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) $179,235 1.22%* 1.22%* 6.01%* 1.20%* 1.20%* 6.03%* 3%
2006 177,734 1.23 1.23 6.17 1.22 1.22 6.19 18
2005 185,900 1.22 1.22 6.13 1.21 1.21 6.14 8
2004 181,114 1.22 1.22 6.44 1.22 1.22 6.45 15
2003 176,186 1.24 1.24 6.56 1.24 1.24 6.57 15
2002 179,630 1.28 1.28 7.29 1.27 1.27 7.29 19
MICHIGAN PREMIUM
INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) 115,928 1.28* 1.21* 5.87* 1.27* 1.20* 5.88* 7
2006 115,611 1.20 1.20 6.03 1.19 1.19 6.03 6
2005 120,475 1.19 1.19 5.97 1.17 1.17 5.98 11
2004 117,529 1.20 1.20 6.28 1.19 1.19 6.30 28
2003 117,418 1.21 1.21 6.49 1.20 1.20 6.50 18
2002 119,820 1.25 1.25 6.82 1.24 1.24 6.83 9
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
MICHIGAN QUALITY INCOME (NUM)
--------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) $94,000 $25,000 $72,669 $ -- $ --
2006 94,000 25,000 72,270 -- --
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 -- --
MICHIGAN PREMIUM INCOME (NMP)
--------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) 56,000 25,000 76,754 5,640 31,484
2006 56,000 25,000 76,612 -- --
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 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended January 31, 2007.
See accompanying notes to financial statements.
68-69 spread
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(c) $14.94 $ .48 $.20 $(.12) $ -- $ .56 $ (.39) $(.01) $ (.40)
2006 15.44 .97 (.40) (.20) -- .37 (.87) -- (.87)
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(b) 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 DIVIDEND
ADVANTAGE (NZW)
---------------------------------------------------------------------------------------
Year Ended 7/31:
2007(c) $ -- $15.10 $15.32 (.59)% 3.73%
2006 -- 14.94 15.81 (.47) 2.46
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(b) (.19) 14.42 14.65 2.00 5.21
=======================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- --------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(c) $31,178 1.31%* 1.31%* 5.83%* .89%* .89%* 6.25%* 3%
2006 30,823 1.31 1.31 5.92 .83 .83 6.40 8
2005 31,821 1.27 1.27 5.93 .81 .81 6.39 8
2004 30,538 1.28 1.28 6.13 .81 .81 6.60 9
2003 29,443 1.29 1.29 6.15 .82 .82 6.61 2
2002(b) 29,679 1.35* 1.35* 6.00* .90* .90* 6.45* 21
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
MICHIGAN DIVIDEND ADVANTAGE (NZW)
--------------------------------------------------------------------------------
Year Ended 7/31:
2007(c) $16,000 $25,000 $73,716 $ -- $ --
2006 16,000 25,000 73,161 -- --
2005 16,000 25,000 74,720 -- --
2004 16,000 25,000 72,716 -- --
2003 16,000 25,000 71,005 -- --
2002(b) 16,000 25,000 71,374 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the period September 25, 2001 (commencement of operations) through July
31, 2002.
(c) For the six months ended January 31, 2007.
See accompanying notes to financial statements.
70-71 spread
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
OHIO QUALITY
INCOME (NUO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) $16.01 $ .48 $ .18 $(.12) $(.01) $ .53 $ (.37) $(.04) $ (.41)
2006 16.58 .98 (.42) (.22) (.01) .33 (.85) (.05) (.90)
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)
OHIO DIVIDEND
ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) 15.02 .47 .17 (.11) (.01) .52 (.37) (.03) (.40)
2006 15.55 .96 (.40) (.21) -- .35 (.85) (.03) (.88)
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)
====================================================================================================================================
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:
2007(b) $ -- $16.13 $15.65 1.48% 3.33%
2006 -- 16.01 15.83 (1.36) 2.10
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
OHIO DIVIDEND
ADVANTAGE (NXI)
-----------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) -- 15.14 15.09 2.95 3.44
2006 -- 15.02 15.05 (6.53) 2.32
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
===================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- --------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
OHIO QUALITY
INCOME (NUO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) $157,194 1.23%* 1.21%* 5.82%* 1.21%* 1.19%* 5.84%* 9%
2006 156,026 1.20 1.20 6.05 1.19 1.19 6.06 9
2005 160,982 1.19 1.19 6.16 1.18 1.18 6.17 14
2004 156,634 1.20 1.20 6.46 1.19 1.19 6.47 31
2003 155,412 1.22 1.22 6.59 1.22 1.22 6.60 12
2002 156,351 1.26 1.26 7.10 1.24 1.24 7.12 26
OHIO DIVIDEND
ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) 64,253 1.24* 1.22* 5.74* .86* .84* 6.13* 7
2006 63,735 1.21 1.21 5.85 .76 .76 6.30 6
2005 65,873 1.21 1.21 6.00 .76 .76 6.46 14
2004 63,642 1.20 1.20 6.41 .75 .75 6.86 10
2003 61,924 1.23 1.23 6.52 .78 .78 6.97 6
2002 62,548 1.24 1.24 6.79 .78 .78 7.25 18
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
OHIO QUALITY INCOME (NUO)
--------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) $77,000 $25,000 $76,037 $2,770 $85,547
2006 77,000 25,000 75,658 -- --
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 -- --
OHIO DIVIDEND ADVANTAGE (NXI)
--------------------------------------------------------------------------------
Year Ended 7/31:
2007(b) 31,000 25,000 76,817 1,120 86,047
2006 31,000 25,000 76,400 -- --
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 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended January 31, 2007.
See accompanying notes to financial statements.
72-73 spread
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(d) $14.81 $ .46 $ .19 $(.12) $(.01) $ .52 $(.35) $(.04) $(.39)
2006 15.37 .93 (.41) (.22) (.01) .29 (.80) (.05) (.85)
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:
2007(d) 15.06 .48 .17 (.11) (.01) .53 (.36) (.04) (.40)
2006 15.57 .95 (.45) (.22) -- .28 (.79) -- (.79)
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 DIVIDEND
ADVANTAGE 2 (NBJ)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2007(d) $ -- $14.94 $14.43 .83% 3.55%
2006 -- 14.81 14.70 .35 1.96
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:
2007(d) -- 15.19 14.89 3.66 3.48
2006 -- 15.06 14.75 (2.33) 1.87
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
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(d) $46,643 1.31%* 1.29%* 5.68%* .88%* .86%* 6.11%* 7%
2006 46,242 1.27 1.27 5.71 .78 .78 6.19 8
2005 47,937 1.23 1.23 5.71 .77 .77 6.17 14
2004 46,268 1.25 1.25 6.13 .79 .79 6.60 15
2003 44,578 1.27 1.27 6.26 .81 .81 6.72 15
2002(b) 45,073 1.25* 1.25* 6.12* .80* .80* 6.57* 39
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2007(d) 32,780 1.32* 1.30* 5.75* .85* .83* 6.22* 9
2006 32,506 1.28 1.28 5.76 .81 .81 6.23 2
2005 33,606 1.27 1.27 5.68 .81 .81 6.14 3
2004 32,208 1.28 1.28 5.87 .81 .81 6.34 8
2003 31,245 1.28 1.28 5.89 .82 .82 6.35 16
2002(c) 31,995 1.22* 1.22* 4.72* .80* .80* 5.15* 7
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
--------------------------------------------------------------------------------
Year Ended 7/31:
2007(d) $24,000 $25,000 $73,587 $820 $87,150
2006 24,000 25,000 73,169 -- --
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:
2007(d) 16,500 25,000 74,667 580 85,965
2006 16,500 25,000 74,252 -- --
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 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the period September 25, 2001 (commencement of operations) through July
31, 2002.
(c) For the period March 25, 2002 (commencement of operations) through July 31,
2002.
(d) For the six months ended January 31, 2007.
See accompanying notes to financial statements.
74-75 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
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.
76
Automatic Dividend
REINVESTMENT PLAN
NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS
These Funds are amending the terms and conditions of their Automatic Dividend
Reinvestment Plan (the ''Plan``) as further described below effective with the
close of business on March 1, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN
PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A
LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who
do not wish to continue as participants under the amended Plan may withdraw from
the Plan by notifying the Plan Agent prior to the effective date of the
amendments. Participants should refer to their Plan document for notification
instructions, or may simply call Nuveen at (800) 257-8787.
Fund shareholders who elect to participate in the Plan are able to have Fund
distributions consisting of income dividends, realized capital gains and returns
of capital automatically reinvested in additional Fund shares. Under the Plan's
existing terms, the Plan Agent purchases Fund shares in the open market if the
Fund's shares are trading at a discount to their net asset value on the payable
date for the distribution. If the Fund's shares are trading at or above their
net asset value on the payable date for the distribution, the Plan Agent
purchases newly-issued Fund shares directly from the Fund at a price equal to
the greater of the shares' net asset value or 95% of the shares' market value.
Under the Plan's amended terms, if the Plan Agent begins purchasing Fund shares
on the open market while shares are trading below net asset value, but the
Fund's shares subsequently trade at or above their net asset value before the
Plan Agent is able to complete its purchases, the Plan Agent may cease
open-market purchases and may invest the uninvested portion of the distribution
in newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value. This change will permit Plan
participants under these circumstances to reinvest Fund distributions at a lower
aggregate cost than is possible under the existing Plan.
77
Notes
78
Other Useful
INFORMATION
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, 2006, 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 the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the security.
This figure does not account for the likelihood of prepayments or the exercise
of call provisions unless an escrow account has been established to redeem the
bond before maturity. The market value weighting for an investment in an inverse
floating rate security is the value of the portfolio's residual interest in the
inverse floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
INVERSE FLOATERS: Inverse floating rate securities are created by depositing a
municipal bond, typically with a fixed interest rate, into a special purpose
trust created by a broker-dealer. This trust, in turn, (a) issues floating rate
certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund) interested
in gaining investment exposure to a long-term municipal bond. The income
received by the holder of the inverse floater varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the holder of the inverse floater bears substantially all of the
underlying bond's downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
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
Carol E. Stone
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase 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 approximately $162 billion in assets, as of December 31, 2006, 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 six distinct brands: NWQ, specializing in value-style
equities; Nuveen, managing fixed-income investments; Santa Barbara, committed to
growth equities; Tradewinds, specializing in global value equities; Rittenhouse,
focused on "blue-chip" growth equities; and Symphony, with expertise in
alternative investments as well as equity and income portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/CEF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-B-0107D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: 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: April 9, 2007
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: April 9, 2007
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: April 9, 2007
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* Print the name and title of each signing officer under his or her signature.