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
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Nuveen Michigan Quality Income Municipal Fund, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: July 31
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Date of reporting period: January 31, 2008
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMI-ANNUAL REPORT
January 31, 2008
Nuveen Investments
MUNICIPAL CLOSED-END FUNDS
Photo of: Small child
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
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
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Logo: NUVEEN Investments
Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger | Chairman of the Board
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 Common Share Dividend
and Share Price Information, and the Performance Overview sections of this
report.
I also wanted to update you on some important news about Nuveen Investments.
Since the last shareholder report, a group led by Madison Dearborn Partners,
LLC, completed its acquisition of Nuveen Investments. This change in ownership
had no impact on the investment objectives, portfolio management strategies or
dividend policy of your Fund.
With the recent volatility in the stock and bond markets, many have begun to
wonder which way the market is headed, and whether they need to adjust their
holdings of investments. No one knows what the future will bring, which is why
we think a well-balanced portfolio that is structured and carefully monitored
with the help of an investment professional is an important component in
achieving your long term financial goals. A well-diversified portfolio may
actually help to reduce your overall investment risk, and we believe that
investments like your Nuveen Investments Fund can be important building blocks
in a portfolio crafted to perform well through a variety of market conditions.
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 14, 2008
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds
NUM, NMP, NZW, NUO,
NXI, NBJ, NVJ
Portfolio manager Daniel Close discusses key investment strategies and the
six-month performance of the Nuveen Michigan and Ohio Funds. Dan, who joined
Nuveen in 2000, assumed portfolio management responsibility for these seven
Funds in March 2007.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THE
SIX-MONTH REPORTING PERIOD ENDED JANUARY 31, 2008?
Over the course of this reporting period, we saw the yield curve steepen, as
municipal bond interest rates at the short end of the curve declined while
longer- term rates were flat to slightly higher. In this environment, our
investment strategies continued to focus on finding relative value, as we looked
for undervalued sectors and individual credits with the potential to perform
well over the long term. The majority of our purchases were attractively-priced
bonds that mature in 25 years or more. These purchases helped to offset the
shortening of the Funds' portfolio durations1 due to bond calls and the natural
tendency of bond durations to shorten as time passes.
Many of our purchases involved essential services bonds (bonds issued to fund
roads, schools and water and sewer type projects). All three of the Michigan
Funds purchased education bonds and a AAA rated water and sewer credit, and NZW
also purchased a charter school bond and a tax-supported revenue issue. In the
Ohio Funds, we purchased education and water and sewer bonds as well as some
multifamily housing credits. All of the Ohio Funds also participated in the $5.5
billion Buckeye Tobacco Settlement Financing Authority offering in October 2007.
When liquidity issues caused the market to discount lower-quality and
higher-yielding bonds, we selectively took advantage of opportunities to add
uninsured, lower-rated hospitals to all three Michigan Funds, marking the first
time in a while that we found bonds of this type at attractive levels relative
to their credit quality.
(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.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
4
To help generate cash for purchases and move the Funds' durations closer to our
strategic range, we selectively sold holdings with shorter durations. Selling
shorter duration bonds and reinvesting further out on the yield curve also
helped to improve the Funds' overall call protection profiles. In NMP and NZW,
we took advantage of strong bids to sell a small number of sub-5% coupon bonds
that were attractive to the retail market. NXI, NBJ, and NVJ also found an
opportunity to sell holdings that were purchased when yields were lower and
replace them with similar, newer credits that yielded comparatively more. This
process allowed us to maintain the Funds' current portfolio characteristics
while strengthening their future income streams.
We also continued to emphasize a disciplined approach to duration management.
As part of our duration strategies, we invested in inverse floating rate
securities,2 a type of derivative financial instrument, in all of the Michigan
and Ohio Funds. Inverse floaters typically provide the dual benefit of
lengthening the Funds' durations to be closer to our strategic target and
enhancing their income-generation capabilities, albeit while adding risk to the
portfolio. During this period, we found it advantageous to terminate some of the
inverse floating rate trusts in the Ohio Funds and modify our positions using
bonds that offered more attractive yields and better structures.
Going into this period, NMP, NUO, NXI, NBJ and NVJ utilized derivative
instruments. The goal of these derivative strategies was to help us manage the
common share net asset value (NAV) volatility of these Funds without having a
negative impact on their income streams or common share dividends over the short
term. During this period, we believed that the derivatives in NUO and NBJ had
accomplished this goal, and we removed them from these two Funds. As of January
31, 2008, the derivative positions remained in place in the other three Funds.
(2) An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market Association
Index or BMA). Inverse floaters, including those inverse floating rate
securities in which the Funds invested during this reporting period, are
further defined within the Notes to Financial Statements and Glossary of
Terms Used in This Report sections of this shareholder report.
5
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Michigan and Ohio Funds, as well as relevant
index and peer group information, are presented in the accompanying table.
Total Returns on Common Share Net Asset Value*
For periods ended 1/31/08
Michigan Funds Six-Month 1-Year 5-Year 10-Year
NUM 3.41% 3.49% 5.43% 5.70%
NMP 3.30% 3.57% 5.22% 5.67%
NZW 2.53% 2.59% 5.65% NA
Lehman Brothers
Municipal
Bond Index(3) 3.71% 4.93% 4.61% 5.20%
Lipper Michigan
Municipal Debt Funds
Average(4) 2.41% 2.63% 5.43% 5.49%
Ohio Funds
NUO 3.18% 3.41% 5.17% 5.46%
NXI 3.92% 4.50% 6.12% NA
NBJ 2.80% 3.06% 5.67% NA
NVJ 4.51% 5.10% 5.97% NA
Lehman Brothers
Municipal
Bond Index(3) 3.71% 4.93% 4.61% 5.20%
Lipper Other States
Municipal Debt Funds
Average(5) 2.66% 2.83% 5.63% 5.52%
For the six months ended January 31, 2008, the cumulative returns on common
share NAV for NXI and NVJ exceeded the return on the Lehman Brothers Municipal
Bond Index, while the remaining five state Funds underperformed this national
index. All of the Michigan Funds outperformed the average return for the Lipper
Michigan Municipal Debt Funds Average and all four of the Ohio Funds
outperformed the Lipper Other States Municipal Debt Funds Average. Shareholders
should note that the performance of the Lipper Other States Municipal Debt Funds
Average 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.
Major factors that influenced the Funds' returns included yield curve and
duration positioning, the use of derivatives and financial leverage, sector
allocations, credit exposure, and holdings of bonds backed by certain municipal
bond insurers.
* Six-month returns are cumulative; returns for one-year, five- year, and
ten-year are annualized.
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions
or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for
your Fund in this report.
(3) The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
(4) The Lipper Michigan Municipal Debt Funds 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, 7; and 10 years, 4. Fund and
Lipper returns assume reinvestment of dividends.
(5) The Lipper Other State Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: 6 months, 46; 1 year, 46; 5 years, 46; and 10 years, 18. Fund and
Lipper returns assume reinvestment of dividends.
6
During this six-month period, bonds in the Lehman Brothers Municipal Bond Index
with maturities between four and eight years, especially those maturing in
approximately six to eight years, benefited the most from changes in the
interest rate environment. As a result, these bonds generally outperformed
credits with longer maturities, with bonds having the longest maturities (22
years and longer) posting poor returns. Although these Funds on the whole were
underexposed to the outperforming shorter maturity categories, this was
generally offset by their heavier weightings in the intermediate part of the
curve, which performed well. The performance of NVJ, in particular, was helped
by its relatively greater exposure to intermediate-term bonds and specifically
to bonds in the four-year to six-year part of the yield curve. While our
strategies during this period included adding some longer bonds to the
portfolios, all of the Funds continued to be relatively underweighted in the
underperforming longer part of the yield curve. Overall, the Funds' duration and
yield curve positioning was a net positive for performance.
Some of the inverse floaters used by the Michigan and Ohio Funds had a negative
impact on performance. This was generally due to the fact that they effectively
increased the Funds' exposure to longer maturity bonds during a period when
shorter maturities were in favor in the market. However, the inverse floaters
also benefited the Funds by helping to support their income streams.
Another factor in the six-month performance of these Funds was the use of
financial leverage. While leverage can add volatility to a Fund's common share
NAV and common share price, this strategy can also provide opportunities for
additional income and total return for common shareholders. The returns of all
seven of these Funds were positively impacted by their use of leverage during
this reporting period.
Sectors of the market that generally made positive contributions to the Funds'
performances included water and sewer, special tax, education, and
transportation. Pre-refunded bonds, especially those with shorter maturities,
performed exceptionally well, with NUM, NXI, and NVJ generally having the
greatest exposure to these securities. General obligation credits also generally
outperformed the market. Among the credit quality groupings, "natural" AAA and
AA bonds (i.e., those that were not credit-enhanced by the addition of
insurance, etc.) were among the top performers.
On the other hand, bonds that carried any credit risk, regardless of sector,
tended to perform poorly. Revenue bonds as a whole, and specifically the
industrial development and health care sectors that had ranked among the top
performers in the Lehman Brothers Municipal Bond Index over the past few years,
underperformed the general municipal market. NBJ, which had the largest
allocation of industrial development revenue (IDR) bonds among these Funds, was
especially impacted by the poor performance of the IDR sector. Bonds backed by
the 1998 master tobacco settlement agreement also posted poor returns, due to
the overall lower credit quality of the tobacco sector as well as the ample
supply of these bonds. With the purchase of
7
Buckeye tobacco bonds in October 2007, all of the Ohio Funds maintained their
weightings in this sector at approximately 3% of their portfolios. (The Michigan
Funds did not hold any tobacco bonds.)
As credit spreads widened, lower credit quality bonds also generally
underperformed the municipal market as a whole for the first time in several
years. As of January 31, 2008, the Michigan Funds had weightings of bonds rated
BBB or lower and non-rated bonds ranging from approximately 4% in NMP and 5% in
NUM to 15% in NZW, while the Ohio Funds' allocations totaled approximately 7% in
NUO, 8% in NVJ and 11% in NBJ and NXI.
Another factor that had an impact on the performance of the Michigan and Ohio
Funds was their position in bonds backed by certain municipal insurers. All of
the Funds in this report had positions in bonds insured by Financial Guaranty
Insurance Company (FGIC) ranging from approximately 5% in NXI, 8% in NUM and
NVJ, and 9% in NZW to 13% in NMP and NUO and 18% in NBJ. In addition, all of the
Michigan Funds also had positions in bonds insured by XL Capital Assurance
(XLCA), ranging from approximately 2% in NUM and NMP to 5% in NZW. (The Ohio
Funds did not have any XLCA-insured holdings, except for NUO, which held less
than 1%.) As concern increased about the balance sheets of municipal bond
insurers, prices on bonds insured by these two companies declined, detracting
from the performance of these Funds. At the same time, these Funds also had
modest holdings of bonds backed by Financial Security Assurance (FSA), which
held their value well and benefited the Funds through good performance. The
holdings of all of our Funds continued to be well diversified not only between
insured and uninsured bonds, but also within the insured bond category.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings
on certain bonds insured by Ambac, FGIC, XLCA or MBIA as of January 31, 2008.
Subsequent to January 31, 2008, at least one rating agency reduced the rating
for Ambac-insured bonds to AA, the rating for XLCA-insured and FGIC-insured
bonds experienced further downgrades such that they no longer carry AAA ratings
which had the effect of reducing the ratings of many (if not all) of the bonds
insured by those particular insurers. One or more rating agencies have placed
each of these insurers on "negative credit watch", which may presage one or more
rating reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced below AAA by these rating agencies, it would
likely reduce the effective rating of many of the bonds insured by that insurer
or insurers. It is important to note that municipal bonds historically have had
a very low rate of default.
8
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS
Beginning in February 2008, after the close of this reporting period, more
shares for sale were submitted in the regularly scheduled auctions for the
Municipal Auction Preferred shares issued by these Funds than there were offers
to buy. This meant that these auctions "failed to clear," and that many or all
Auction Preferred shareholders who wanted to sell their shares in these auctions
were unable to do so. This decline in liquidity in Auction Preferred shares did
not lower the credit quality of these shares, and that Auctioned Preferred
shareholders unable to sell their shares received distributions at the "maximum
rate" calculated in accordance with the pre-established terms of the Municipal
Auctioned Preferred shares. At the time this report was prepared, the Funds'
manager could not predict when future auctions might succeed in attracting
sufficient buyers for the shares offered, if ever. The Funds' manager is working
diligently to develop mechanisms designed to improve the liquidity of the
Municipal Auctioned Preferred shares, or to refund them, but at present there is
no assurance that these efforts will succeed. These developments generally do
not affect the management or investment policies of these Funds. However, one
implication of these auction failures for common shareholders is that the Funds'
cost of leverage will be higher than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future common share
earnings may be lower than they otherwise would have been.
For current, up-to-date information please visit the Nuveen CEF Auction Rate
Preferred Resource Center, http://www.nuveen.com/ResourceCenter/AuctionRate
Preferred/AuctionRatePreferred.aspx
9
Common Share
Dividend and Share Price
INFORMATION
As noted earlier, these seven Funds use financial leverage to potentially
enhance opportunities for additional income for common shareholders. The Funds'
use of this strategy continued to provide incremental income, although the
extent of this benefit was reduced to some degree by short-term interest rates
that remained relatively high during the earlier part of this period. This, in
turn, kept the Funds' borrowing costs high. 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 often
offered lower yields during this period. The combination of these factors
resulted in one monthly common share dividend reduction in each of the Michigan
and Ohio Funds over the six-month period ended January 31, 2008.
Due to normal portfolio activity, common shareholders of the Funds also received
capital gains and/or net ordinary income distributions at the end of December
2007 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NUM $0.0987 $0.0043
NMP $0.0729 $0.0012
NZW $0.0727 --
NUO $0.0666 $0.0008
NXI $0.0942 --
NBJ $0.0585 $0.0008
NVJ $0.0613 --
10
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 common share 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 common share NAV. Each Fund will, over time,
pay all of its net investment income as dividends to shareholders. As of January
31, 2008, all of the Funds in this report, except NXI, had positive UNII
balances, based upon our best estimate, for tax purposes and negative UNII
balances for financial statement purposes. NXI had a positive UNII balance,
based upon our best estimate, for tax purposes, and a positive UNII balance for
financial statement purposes.
As of January 31, 2008, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying chart:
1/31/08 Six-Month Average
Discount Discount
NUM -9.39% -9.79%
NMP -9.44% -9.33%
NZW -7.29% -4.72%
NUO -8.30% -9.92%
NXI -9.25% -8.43%
NBJ -7.78% -8.55%
NVJ -6.19% -6.45%
11
NUM
Performance
OVERVIEW
Nuveen Michigan
Quality Income
Municipal Fund, Inc.
as of January 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 84%
AA 7%
A 4%
BBB 4%
BB or Lower 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Feb 0.059
Mar 0.059
Apr 0.059
May 0.059
Jun 0.059
Jul 0.059
Aug 0.059
Sep 0.059
Oct 0.0555
Nov 0.0555
Dec 0.0555
Jan 0.0555
Line Chart:
Common Share Price Performance -- Weekly Closing Price
2/01/07 14.68
14.67
14.7
14.66
14.58
14.66
14.68
14.59
14.61
14.67
14.64
14.65
14.63
14.8
15
14.82
14.8
14.56
14.72
14.5501
14.1
14.18
14.21
14.33
14.19
14.26
14.21
14.11
13.88
13.4
13.66
13.799
14.4
14.132
13.7
13.8
13.5875
13.5
13.57
13.49
13.32
13.05
12.64
12.76
12.95
13.24
12.76
12.8
12.89
13.46
13.55
13.4
13.53
1/31/08 13.61
FUND SNAPSHOT
------------------------------------
Common Share Price $13.61
------------------------------------
Common Share
Net Asset Value $15.02
------------------------------------
Premium/(Discount) to NAV -9.39%
------------------------------------
Market Yield 4.89%
------------------------------------
Taxable-Equivalent Yield(2) 7.10%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $175,942
------------------------------------
Average Effective
Maturity on Securities (Years) 14.34
------------------------------------
Leverage-Adjusted Duration 9.37
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -0.71% 3.41%
------------------------------------
1-Year -2.01% 3.49%
------------------------------------
5-Year 3.65% 5.43%
------------------------------------
10-Year 3.95% 5.70%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 34.8%
------------------------------------
U.S. Guaranteed 24.0%
------------------------------------
Health Care 9.7%
------------------------------------
Tax Obligation/Limited 9.4%
------------------------------------
Utilities 8.0%
------------------------------------
Water and Sewer 6.1%
------------------------------------
Other 8.0%
------------------------------------
(1) The percentage of AAA ratings shown in the forgoing chart reflects the AAA
ratings on certain bonds insured by AMBAC, FGIC, XLCA or MBIA as of January
31, 2008. As explained earlier in the Portfolio Manager's Comments section
of this report, one rating agency has reduced the rating for AMBAC-insured
bonds to AA and XLCA-insured and FGIC-insured bonds experienced further
downgrades such that they no longer carry AAA ratings which had the effect
of reducing the rating of many (if not all) of the bonds insured by those
particular insurers. One or more rating agencies have placed each of these
insures on "negative credit watch", which may presage one or mare rating
reductions for sure insurer or insurers in the future. If one or more
insurers' ratings are reduced below AAA by these ratings agencies, it would
likely reduce the effective rating of many of the bonds insured by that
insurer or insurers, and thereby reduce the percentage of the portfolio
rated AAA from the percentage shown in the forgoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.1030 per share.
12
NMP
Performance
OVERVIEW
Nuveen Michigan Premium Income Municipal Fund, Inc.
as of January 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 78%
AA 8%
A 10%
BBB 3%
BB or Lower 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Feb 0.0605
Mar 0.058
Apr 0.058
May 0.058
Jun 0.058
Jul 0.058
Aug 0.058
Sep 0.055
Oct 0.055
Nov 0.055
Dec 0.055
Jan 0.055
Line Chart:
Common Share Price Performance -- Weekly Closing Price
2/01/07 14.64
14.63
14.63
14.52
14.47
14.45
14.4
14.26
14.33
14.33
14.44
14.5
14.51
14.52
14.97
14.77
14.52
14.44
14.33
14.05
13.87
13.95
14
14
13.85
13.89
13.69
13.75
13.34
13.3
13.4
13.5
13.87
13.75
13.57
13.61
13.61
13.6
13.54
13.4
13.19
12.9
12.49
12.51
12.75
12.94
12.73
12.6
12.72
13.36
13.3999
13.239
13.39
1/31/08 13.33
FUND SNAPSHOT
------------------------------------
Common Share Price $13.33
------------------------------------
Common Share
Net Asset Value $14.72
------------------------------------
Premium/(Discount) to NAV -9.44%
------------------------------------
Market Yield 4.95%
------------------------------------
Taxable-Equivalent Yield(2) 7.18%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $114,091
------------------------------------
Average Effective
Maturity on Securities (Years) 15.15
------------------------------------
Leverage-Adjusted Duration 8.08
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -0.43% 3.30%
------------------------------------
1-Year -3.49% 3.57%
------------------------------------
5-Year 4.50% 5.22%
------------------------------------
10-Year 5.07% 5.67%
------------------------------------
INDUSTRIES
(as a % of total investments)3
------------------------------------
Tax Obligation/General 32.0%
------------------------------------
U.S. Guaranteed 17.5%
------------------------------------
Tax Obligation/Limited 14.3%
------------------------------------
Water and Sewer 10.9%
------------------------------------
Utilities 9.3%
------------------------------------
Health Care 6.8%
------------------------------------
Other 9.2%
------------------------------------
(1) The percentage of AAA ratings shown in the forgoing chart reflects the AAA
ratings on certain bonds insured by AMBAC, FGIC, XLCA or MBIA as of January
31, 2008. As explained earlier in the Portfolio Manager's Comments section
of this report, one rating agency has reduced the rating for AMBAC-insured
bonds to AA and XLCA-insured and FGIC-insured bonds experienced further
downgrades such that they no longer carry AAA ratings which had the effect
of reducing the rating of many (if not all) of the bonds insured by those
particular insurers. One or more rating agencies have placed each of these
insures on "negative credit watch", which may presage one or mare rating
reductions for sure insurer or insurers in the future. If one or more
insurers' ratings are reduced below AAA by these ratings agencies, it would
likely reduce the effective rating of many of the bonds insured by that
insurer or insurers, and thereby reduce the percentage of the portfolio
rated AAA from the percentage shown in the forgoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) Excluding derivative transactions.
(4) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0741 per share.
13
NZW
Performance
OVERVIEW
Nuveen Michigan Dividend Advantage Municipal Fund
as of January 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 76%
AA 5%
A 4%
BBB 7%
BB or Lower 2%
N/R 6%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Feb 0.0645
Mar 0.0645
Apr 0.0645
May 0.0645
Jun 0.0615
Jul 0.0615
Aug 0.0615
Sep 0.0585
Oct 0.0585
Nov 0.0585
Dec 0.0585
Jan 0.0585
Line Chart:
Common Share Price Performance -- Weekly Closing Price
2/01/07 15.24
15.2
15.18
15.32
15.255
15.22
15.3
15.45
15.3
15.14
15.6
15.57
15.69
16.05
16.17
16.85
16.65
16.16
15.8
15.65
15.15
15.25
15.05
15.17
15.1
14.8
14.65
15.01
15.15
15.15
15.19
15.15
14.74
14.41
14.01
14.14
14
14.09
13.76
13.87
13.66
13.327
12.98
13.01
13.2
13.44
13.36
13
12.99
13.71
13.68
13.76
13.8
1/31/08 13.6
FUND SNAPSHOT
------------------------------------
Common Share Price $13.60
------------------------------------
Common Share
Net Asset Value $14.67
------------------------------------
Premium/(Discount) to NAV -7.29%
------------------------------------
Market Yield 5.16%
------------------------------------
Taxable-Equivalent Yield(2) 7.49%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $30,320
------------------------------------
Average Effective
Maturity on Securities (Years) 17.34
------------------------------------
Leverage-Adjusted Duration 9.00
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -7.12% 2.53%
------------------------------------
1-Year -6.13% 2.59%
------------------------------------
5-Year 4.18% 5.65%
------------------------------------
Since
Inception 4.12% 6.17%
------------------------------------
INDUSTRIES
(AS A % OF TOTAL INVESTMENTS)
------------------------------------
Tax Obligation/General 28.1%
------------------------------------
Health Care 15.0%
------------------------------------
U.S. Guaranteed 14.3%
------------------------------------
Water and Sewer 11.0%
------------------------------------
Utilities 10.3%
------------------------------------
Tax Obligation/Limited 9.6%
------------------------------------
Other 11.7%
------------------------------------
(1) The percentage of AAA ratings shown in the forgoing chart reflects the AAA
ratings on certain bonds insured by AMBAC, FGIC, XLCA or MBIA as of January
31, 2008. As explained earlier in the Portfolio Manager's Comments section
of this report, one rating agency has reduced the rating for AMBAC-insured
bonds to AA and XLCA-insured and FGIC-insured bonds experienced further
downgrades such that they no longer carry AAA ratings which had the effect
of reducing the rating of many (if not all) of the bonds insured by those
particular insurers. One or more rating agencies have placed each of these
insures on "negative credit watch", which may presage one or mare rating
reductions for sure insurer or insurers in the future. If one or more
insurers' ratings are reduced below AAA by these ratings agencies, it would
likely reduce the effective rating of many of the bonds insured by that
insurer or insurers, and thereby reduce the percentage of the portfolio
rated AAA from the percentage shown in the forgoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0727 per share.
14
NUO
Performance
OVERVIEW
Nuveen Ohio
Quality Income
Municipal Fund, Inc.
as of January 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 76%
AA 12%
A 5%
BBB 6%
N/R 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Feb 0.0595
Mar 0.0595
Apr 0.0595
May 0.0595
Jun 0.0595
Jul 0.0595
Aug 0.0595
Sep 0.0595
Oct 0.055
Nov 0.055
Dec 0.055
Jan 0.055
Line Chart:
Common Share Price Performance -- Weekly Closing Price
2/01/07 15.71
15.66
15.77
15.74
15.6
15.79
15.82
15.89
15.76
15.67
15.76
15.86
15.77
15.85
16.02
15.78
15.75
15.58
15.58
15.1
15.13
14.9
14.96
14.95
14.85
14.51
14.31
14.57
14.43
14.14
14.65
14.54
14.76
14.68
14.56
14.4
14.44
14.27
14.27
14.24
14.22
13.79
13.73
13.63
13.79
14.1
13.62
13.48
13.64
14.34
14.43
14.3534
14.464
1/31/08 14.58
FUND SNAPSHOT
------------------------------------
Common Share Price $14.58
------------------------------------
Common Share
Net Asset Value $15.90
------------------------------------
Premium/(Discount) to NAV -8.30%
------------------------------------
Market Yield 4.53%
------------------------------------
Taxable-Equivalent Yield(2) 6.67%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $154,997
------------------------------------
Average Effective
Maturity on Securities (Years) 15.34
------------------------------------
Leverage-Adjusted Duration 8.16
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.93% 3.18%
------------------------------------
1-Year -1.94% 3.41%
------------------------------------
5-Year 2.86% 5.17%
------------------------------------
10-Year 3.29% 5.46%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.8%
------------------------------------
U.S. Guaranteed 21.7%
------------------------------------
Health Care 11.5%
------------------------------------
Education and Civic
Organizations 11.0%
------------------------------------
Tax Obligation/Limited 9.3%
------------------------------------
Housing/Multifamily 5.4%
------------------------------------
Utilities 4.7%
------------------------------------
Other 12.6%
------------------------------------
(1) The percentage of AAA ratings shown in the forgoing chart reflects the AAA
ratings on certain bonds insured by AMBAC, FGIC, XLCA or MBIA as of January
31, 2008. As explained earlier in the Portfolio Manager's Comments section
of this report, one rating agency has reduced the rating for AMBAC-insured
bonds to AA and XLCA-insured and FGIC-insured bonds experienced further
downgrades such that they no longer carry AAA ratings which had the effect
of reducing the rating of many (if not all) of the bonds insured by those
particular insurers. One or more rating agencies have placed each of these
insures on "negative credit watch", which may presage one or mare rating
reductions for sure insurer or insurers in the future. If one or more
insurers' ratings are reduced below AAA by these ratings agencies, it would
likely reduce the effective rating of many of the bonds insured by that
insurer or insurers, and thereby reduce the percentage of the portfolio
rated AAA from the percentage shown in the forgoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0674 per share.
15
NXI
Performance
OVERVIEW
Nuveen Ohio
Dividend Advantage Municipal Fund
as of January 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 73%
AA 11%
A 5%
BBB 8%
BB or Lower 1%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(4)
Feb 0.0605
Mar 0.0605
Apr 0.0605
May 0.0605
Jun 0.057
Jul 0.057
Aug 0.057
Sep 0.057
Oct 0.054
Nov 0.054
Dec 0.054
Jan 0.054
Line Chart:
Common Share Price Performance -- Weekly Closing Price
2/01/07 15.09
15.16
15.16
15.15
15.21
15.38
15.75
15.55
15.25
15.25
15.39
15.39
15.3
15.42
15.73
15.69
15.64
15.68
15.12
14.94
14.88
14.85
14.64
14.72
14.32
14.09
14.08
14.352
13.88
13.43
13.714
13.78
14.19
14.2701
13.78
14
13.73
13.74
13.66
13.75
13.7
13.39
12.93
12.922
13.21
13.55
12.9901
12.9
13.18
13.66
13.72
13.55
13.82
1/31/08 13.63
FUND SNAPSHOT
------------------------------------
Common Share Price $13.63
------------------------------------
Common Share
Net Asset Value $15.02
------------------------------------
Premium/(Discount) to NAV -9.25%
------------------------------------
Market Yield 4.75%
------------------------------------
Taxable-Equivalent Yield(2) 7.00%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $63,730
------------------------------------
Average Effective
Maturity on Securities (Years) 14.42
------------------------------------
Leverage-Adjusted Duration 8.47
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -2.32% 3.92%
------------------------------------
1-Year -4.62% 4.50%
------------------------------------
5-Year 3.24% 6.12%
------------------------------------
Since
Inception 4.37% 6.70%
------------------------------------
INDUSTRIES
(as a % of total investments)(3)
------------------------------------
U.S. Guaranteed 31.8%
------------------------------------
Tax Obligation/General 14.9%
------------------------------------
Tax Obligation/Limited 10.1%
------------------------------------
Education and Civic
Organizations 9.4%
------------------------------------
Health Care 7.8%
------------------------------------
Utilities 5.8%
------------------------------------
Housing/Multifamily 5.5%
------------------------------------
Other 14.7%
------------------------------------
(1) The percentage of AAA ratings shown in the forgoing chart reflects the AAA
ratings on certain bonds insured by AMBAC, FGIC or MBIA as of January 31,
2008. As explained earlier in the Portfolio Manager's Comments section of
this report, one rating agency has reduced the rating for AMBAC-insured
bonds to AA and FGIC-insured bonds experienced further downgrades such that
they no longer carry AAA ratings which had the effect of reducing the
rating of many (if not all) of the bonds insured by those particular
insurers. One or more rating agencies have placed each of these insures on
"negative credit watch", which may presage one or mare rating reductions
for sure insurer or insurers in the future. If one or more insurers'
ratings are reduced below AAA by these ratings agencies, it would likely
reduce the effective rating of many of the bonds insured by that insurer or
insurers, and thereby reduce the percentage of the portfolio rated AAA from
the percentage shown in the forgoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) Excluding derivative transactions.
(4) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0942 per share.
16
NBJ
Performance
OVERVIEW
Nuveen Ohio
Dividend Advantage
Municipal Fund 2
as of January 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 69%
AA 12%
A 8%
BBB 8%
BB or Lower 1%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Feb 0.0565
Mar 0.0565
Apr 0.0565
May 0.0565
Jun 0.0565
Jul 0.0565
Aug 0.0565
Sep 0.0565
Oct 0.053
Nov 0.053
Dec 0.053
Jan 0.053
Line Chart:
Common Share Price Performance -- Weekly Closing Price
2/01/07 14.42
14.219
14.31
14.45
14.2
14.34
14.5
14.56
14.44
14.33
14.44
14.73
14.29
14.31
14.52
14.61
14.6
14.37
14.75
14.35
14.28
14.13
14.1
14.05
13.93
13.5
13.74
13.75
13.54
13.11
13.3
13.38
13.99
13.63
13.6
13.39
13.42
13.8
13.56
13.36
13.4
13.25
12.55
12.65
13.25
13.21
12.69
12.51
12.72
13.3
13.42
13.78
13.4
1/31/08 13.52
FUND SNAPSHOT
------------------------------------
Common Share Price $13.52
------------------------------------
Common Share
Net Asset Value $14.66
------------------------------------
Premium/(Discount) to NAV -7.78%
------------------------------------
Market Yield 4.70%
------------------------------------
Taxable-Equivalent Yield(2) 6.92%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $45,772
------------------------------------
Average Effective
Maturity on Securities (Years) 16.14
------------------------------------
Leverage-Adjusted Duration 8.20
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 0.82% 2.80%
------------------------------------
1-Year -1.27% 3.06%
------------------------------------
5-Year 4.50% 5.67%
------------------------------------
Since
Inception 4.03% 6.13%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 24.9%
------------------------------------
U.S. Guaranteed 17.0%
------------------------------------
Health Care 15.1%
------------------------------------
Tax Obligation/Limited 12.1%
------------------------------------
Education and Civic
Organizations 9.0%
------------------------------------
Utilities 5.9%
------------------------------------
Industrials 5.8%
------------------------------------
Other 10.2%
------------------------------------
(1) The percentage of AAA ratings shown in the forgoing chart reflects the AAA
ratings on certain bonds insured by AMBAC, FGIC or MBIA as of January 31,
2008. As explained earlier in the Portfolio Manager's Comments section of
this report, one rating agency has reduced the rating for AMBAC-insured
bonds to AA and FGIC-insured bonds experienced further downgrades such that
they no longer carry AAA ratings which had the effect of reducing the
rating of many (if not all) of the bonds insured by those particular
insurers. One or more rating agencies have placed each of these insures on
"negative credit watch", which may presage one or mare rating reductions
for sure insurer or insurers in the future. If one or more insurers'
ratings are reduced below AAA by these ratings agencies, it would likely
reduce the effective rating of many of the bonds insured by that insurer or
insurers, and thereby reduce the percentage of the portfolio rated AAA from
the percentage shown in the forgoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0593 per share.
17
NVJ
Performance
OVERVIEW
Nuveen Ohio
Dividend Advantage
Municipal Fund 3
as of January 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 76%
AA 6%
A 10%
BBB 6%
BB or Lower 1%
N/R 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(4)
Feb 0.0595
Mar 0.0595
Apr 0.0595
May 0.0595
Jun 0.0595
Jul 0.0595
Aug 0.0595
Sep 0.0595
Oct 0.0555
Nov 0.0555
Dec 0.0555
Jan 0.0555
Line Chart:
Common Share Price Performance -- Weekly Closing Price
2/01/07 14.89
14.98
15.06
15.09
15.08
14.98
15.1
14.93
14.91
14.92
14.93
14.81
14.82
15.05
15.05
15.44
15.75
15.21
15.48
15.37
15.5
15.25
15.05
14.93
14.84
14.62
14.3
14.55
14.34
14
13.8433
14.35
14.45
14.29
14.1
14.16
14.15
14.03
14.06
13.93
14
13.88
13.5
13.7
13.45
13.76
13.6
13.1999
13.4
13.9
14.12
14.23
14.13
1/31/08 14.24
FUND SNAPSHOT
------------------------------------
Common Share Price $14.24
------------------------------------
Common Share
Net Asset Value $15.18
------------------------------------
Premium/(Discount) to NAV -6.19%
------------------------------------
Market Yield 4.68%
------------------------------------
Taxable-Equivalent Yield(2) 6.89%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $32,759
------------------------------------
Average Effective
Maturity on Securities (Years) 13.15
------------------------------------
Leverage-Adjusted Duration 9.35
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 2.10% 4.51%
------------------------------------
1-Year 0.78% 5.10%
------------------------------------
5-Year 4.50% 5.97%
------------------------------------
Since
Inception 4.79% 6.72%
------------------------------------
INDUSTRIES
(as a % of total investments)(3)
------------------------------------
U.S. Guaranteed 32.8%
------------------------------------
Tax Obligation/General 17.9%
------------------------------------
Tax Obligation/Limited 15.1%
------------------------------------
Health Care 8.7%
------------------------------------
Education and Civic
Organizations 6.2%
------------------------------------
Transportation 3.6%
------------------------------------
Utilities 3.2%
------------------------------------
Other 12.5%
------------------------------------
(1) The percentage of AAA ratings shown in the forgoing chart reflects the AAA
ratings on certain bonds insured by AMBAC, FGIC or MBIA as of January 31,
2008. As explained earlier in the Portfolio Manager's Comments section of
this report, one rating agency has reduced the rating for AMBAC-insured
bonds to AA and FGIC-insured bonds experienced further downgrades such that
they no longer carry AAA ratings which had the effect of reducing the
rating of many (if not all) of the bonds insured by those particular
insurers. One or more rating agencies have placed each of these insures on
"negative credit watch", which may presage one or mare rating reductions
for sure insurer or insurers in the future. If one or more insurers'
ratings are reduced below AAA by these ratings agencies, it would likely
reduce the effective rating of many of the bonds insured by that insurer or
insurers, and thereby reduce the percentage of the portfolio rated AAA from
the percentage shown in the forgoing chart.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) Excluding derivative transactions.
(4) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0613 per share.
18
NUM
NMP
NZW
Shareholder MEETING REPORT
The annual meeting of shareholders was held in the offices of Nuveen Investments
on October 12, 2007.
NUM NMP NZW
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
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
====================================================================================================================================
For 6,142,391 -- 4,254,100 -- 1,070,869 --
Against 333,960 -- 239,910 -- 86,608 --
Abstain 234,534 -- 131,422 -- 48,127 --
Broker Non-Votes 1,752,757 -- 1,180,164 -- 283,143 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,463,642 -- 5,805,596 -- 1,488,747 --
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner
For 8,174,000 -- 5,555,366 -- -- --
Withhold 289,642 -- 250,230 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,463,642 -- 5,805,596 -- -- --
====================================================================================================================================
Jack B. Evans
For 8,170,002 -- 5,552,546 -- -- --
Withhold 293,640 -- 253,050 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,463,642 -- 5,805,596 -- -- --
====================================================================================================================================
William C. Hunter
For 8,174,095 -- 5,553,390 -- -- --
Withhold 289,547 -- 252,206 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,463,642 -- 5,805,596 -- -- --
====================================================================================================================================
David J. Kundert
For 8,168,702 -- 5,549,844 -- -- --
Withhold 294,940 -- 255,752 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,463,642 -- 5,805,596 -- -- --
====================================================================================================================================
William J. Schneider
For -- 2,981 -- 1,808 -- 584
Withhold -- 79 -- 88 -- 17
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,060 -- 1,896 -- 601
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,981 -- 1,798 -- 584
Withhold -- 79 -- 98 -- 17
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,060 -- 1,896 -- 601
====================================================================================================================================
Judith M. Stockdale
For 8,172,582 -- 5,549,996 -- 1,436,248 --
Withhold 291,060 -- 255,600 -- 52,499 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,463,642 -- 5,805,596 -- 1,488,747 --
====================================================================================================================================
Carole E. Stone
For 8,171,618 -- 5,549,126 -- 1,434,798 --
Withhold 292,024 -- 256,470 -- 53,949 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,463,642 -- 5,805,596 -- 1,488,747 --
====================================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 8,205,361 -- 5,621,677 -- 1,467,014 --
Against 96,326 -- 66,999 -- 10,296 --
Abstain 161,955 -- 116,920 -- 11,437 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,463,642 -- 5,805,596 -- 1,488,747 --
====================================================================================================================================
19
NUO
NXI
NBJ
Shareholder MEETING REPORT (continued)
NUO NXI NBJ
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
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
====================================================================================================================================
For 5,473,652 -- 2,203,710 -- 1,695,247 --
Against 299,488 -- 83,529 -- 54,381 --
Abstain 225,954 -- 127,987 -- 111,628 --
Broker Non-Votes 1,615,961 -- 694,659 -- 607,264 --
------------------------------------------------------------------------------------------------------------------------------------
Total 7,615,055 -- 3,109,885 -- 2,468,520 --
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner
For 7,308,670 -- -- -- -- --
Withhold 306,385 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 7,615,055 -- -- -- -- --
====================================================================================================================================
Jack B. Evans
For 7,309,870 -- -- -- -- --
Withhold 305,185 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 7,615,055 -- -- -- -- --
====================================================================================================================================
William C. Hunter
For 7,309,941 -- -- -- -- --
Withhold 305,114 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 7,615,055 -- -- -- -- --
====================================================================================================================================
David J. Kundert
For 7,306,799 -- -- -- -- --
Withhold 308,256 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 7,615,055 -- -- -- -- --
====================================================================================================================================
William J. Schneider
For -- 2,103 -- 1,029 -- 746
Withhold -- 56 -- 22 -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,159 -- 1,051 -- 747
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,103 -- 1,029 -- 746
Withhold -- 56 -- 22 -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,159 -- 1,051 -- 747
====================================================================================================================================
Judith M. Stockdale
For 7,313,653 -- 3,013,181 -- 2,373,901 --
Withhold 301,402 -- 96,704 -- 94,619 --
------------------------------------------------------------------------------------------------------------------------------------
Total 7,615,055 -- 3,109,885 -- 2,468,520 --
====================================================================================================================================
Carole E. Stone
For 7,294,867 -- 3,015,281 -- 2,371,901 --
Withhold 320,188 -- 94,604 -- 96,619 --
------------------------------------------------------------------------------------------------------------------------------------
Total 7,615,055 -- 3,109,885 -- 2,468,520 --
====================================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 7,395,555 -- 2,984,686 -- 2,372,409 --
Against 109,834 -- 12,769 -- 8,242 --
Abstain 109,666 -- 112,430 -- 87,869 --
------------------------------------------------------------------------------------------------------------------------------------
Total 7,615,055 -- 3,109,885 -- 2,468,520 --
====================================================================================================================================
20
NVJ
NVJ
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
====================================================================================================================================
For 1,062,423 --
Against 75,624 --
Abstain 53,963 --
Broker Non-Votes 369,064 --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,561,074 --
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner
For -- --
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- --
====================================================================================================================================
Jack B. Evans
For -- --
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- --
====================================================================================================================================
William C. Hunter
For -- --
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- --
====================================================================================================================================
David J. Kundert
For -- --
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- --
====================================================================================================================================
William J. Schneider
For -- 591
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 591
====================================================================================================================================
Timothy R. Schwertfeger
For -- 591
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 591
====================================================================================================================================
Judith M. Stockdale
For 1,471,123 --
Withhold 89,951 --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,561,074 --
====================================================================================================================================
Carole E. Stone
For 1,471,123 --
Withhold 89,951 --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,561,074 --
====================================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 1,508,352 --
Against 19,798 --
Abstain 32,924 --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,561,074 --
====================================================================================================================================
21
NUM
Nuveen Michigan Quality Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.2% (4.7% OF TOTAL INVESTMENTS)
$ 700 Chandler Park Academy, Michigan, Public School Academy Charter 11/15 at 100.00 BBB- $ 614,656
School Revenue Bonds, Series 2005, 5.125%, 11/01/35
1,380 Ferris State College, Michigan, General Revenue Bonds, Series 1998, 4/08 at 100.00 AAA 1,383,064
5.000%, 10/01/23 - AMBAC Insured
435 Grand Traverse Academy, Michigan, Public School Academy Revenue 11/17 at 100.00 BBB- 362,629
Bonds, Series 2007, 4.750%, 11/01/32
1,685 Michigan Higher Education Facilities Authority, Limited Obligation 9/11 at 100.00 Aaa 1,835,016
Revenue Refunding Bonds, Kettering University, Series 2001,
5.500%, 9/01/17 - AMBAC Insured
1,500 Michigan Higher Education Student Loan Authority, Revenue Bonds, No Opt. Call AAA 1,574,115
Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured
(Alternative Minimum Tax)
1,000 Michigan Higher Education Student Loan Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,038,900
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 1,166,892
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 3,577,147
1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 Aaa 1,026,320
------------------------------------------------------------------------------------------------------------------------------------
12,245 Total Education and Civic Organizations 12,578,739
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.7% (9.7% OF TOTAL INVESTMENTS)
2,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 2,421,475
Metropolitan Hospital, Series 2005A, 5.250%, 7/01/30
2,900 Michigan Hospital Financing Authority, Revenue Bonds, Oakwood 7/17 at 100.00 A 2,777,185
Obligated Group, Series 2007A, 5.000%, 7/15/37
2,700 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 8/08 at 101.00 BB- 2,462,643
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+ 1,027,600
Refunding Bonds, Memorial Healthcare Center Obligated Group,
Series 1999, 5.875%, 11/15/21
Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea
Community Hospital, Series 2005:
1,025 5.000%, 5/15/30 5/15 at 100.00 BBB 960,159
500 5.000%, 5/15/37 5/15 at 100.00 BBB 456,010
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 1,479,555
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
5,800 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 5,795,186
Sparrow Obligated Group, Series 2005, 5.000%, 11/15/36 -
MBIA Insured (UB)
1,000 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 926,480
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.375%, 6/01/26
5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 11/11 at 100.00 AAA 5,575,844
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+ 2,043,106
Series 1991, 0.000%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
26,620 Total Health Care 25,925,243
------------------------------------------------------------------------------------------------------------------------------------
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.9% (1.9% OF TOTAL INVESTMENTS)
$ 2,675 Michigan Housing Development Authority, FNMA Limited 12/20 at 101.00 AAA $ 2,769,802
Obligation Multifamily Housing Revenue Bonds, Parkview Place
Apartments, Series 2002A, 5.550%, 12/01/34
(Alternative Minimum Tax)
1,055 Michigan Housing Development Authority, Rental Housing 4/09 at 101.00 AAA 1,054,135
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 1,303,679
Revenue Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,030 Total Housing/Multifamily 5,127,616
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 908,910
Presbyterian Villages of Michigan Obligated Group, Series 2005,
5.250%, 11/15/25
200 Michigan Strategic Fund, Limited Obligation Revenue Refunding 7/08 at 101.00 BBB 197,308
Bonds, Porter Hills Presbyterian Village, Series 1998,
5.375%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
1,200 Total Long-Term Care 1,106,218
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.0% (0.6% OF TOTAL INVESTMENTS)
1,750 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB 1,712,638
Pollution Control Revenue Bonds, International Paper Company,
Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 52.9% (34.8% OF TOTAL INVESTMENTS)
1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA- 1,049,230
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- 2,634,975
3,200 5.000%, 5/01/29 5/11 at 100.00 AA- 3,261,696
1,000 Belding School District, Ionia, Kent and Montcalm Counties, 5/08 at 100.00 AAA 1,002,850
Michigan, General Obligation Refunding Bonds, Series 1998,
5.000%, 5/01/26 - AMBAC Insured
1,200 Birmingham, Michigan, General Obligation Bonds, Series 2002, 10/12 at 100.50 AAA 1,292,388
5.000%, 10/01/20
1,320 Bridgeport Spaulding Community School District, Saginaw County, 5/12 at 100.00 AA- 1,457,900
Michigan, General Obligation Bonds, Series 2002, 5.500%, 5/01/16
1,405 Caledonia Community Schools, Kent County, Michigan, General 5/17 at 100.00 AAA 1,456,676
Obligation Bonds, Series 2007, Residuals 1018, 9.398%, 5/01/32 -
MBIA Insured (IF)
2,110 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/13 at 100.00 AA- 2,300,892
Michigan, General Obligation Bonds, Series 2003, 5.250%, 5/01/20
1,000 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/15 at 100.00 AAA 1,049,170
Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/25 -
MBIA Insured
2,000 Detroit City School District, Wayne County, Michigan, General No Opt. Call Aaa 2,395,140
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 1,232,200
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 3,866,516
3,000 0.000%, 12/01/26 No Opt. Call AAA 1,232,400
5,305 0.000%, 12/01/29 No Opt. Call AAA 1,831,817
1,700 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AAA 1,787,822
5.000%, 9/01/27 - MBIA Insured
1,400 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA- 1,508,822
Obligation Bonds, Series 2003, 5.000%, 5/01/21
23
NUM
Nuveen Michigan Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,065 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA $ 1,141,446
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 2,049,475
Series 2006, 5.000%, 5/01/25 - FSA Insured
2,505 Lincoln Consolidated School District, Washtenaw and Wayne 5/16 at 100.00 AAA 2,644,253
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 3,001,333
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 -
MBIA Insured
865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 902,359
General Obligation Bonds, Series 2007, 5.000%, 5/01/37 -
FSA Insured
1,500 Marshall Public Schools, Calhoun County, Michigan, General 5/17 at 100.00 AAA 1,527,135
Obligation Bonds, Series 2007,5.000%, 5/01/30 - XLCA Insured
2,100 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 2,267,958
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- 4,365,920
Program, Series 2003A, 5.250%, 5/01/20
2,500 Montrose School District, Michigan, School Building and Site No Opt. Call AAA 3,036,775
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 1,131,438
Wastewater Management System 2 Revenue Bonds, Series 2002,
5.000%, 7/01/26 - FGIC Insured
1,000 Oakland County Building Authority, Michigan, General Obligation 9/11 at 100.00 AAA 1,051,840
Bonds, Series 2002, 5.125%, 9/01/22
2,250 Oakland Intermediate School District, Oakland County, Michigan, 5/17 at 100.00 AAA 2,347,178
General Obligation Bonds, Series 2007, 5.000%, 5/01/36 -
FSA Insured
1,595 Oakridge Public Schools, Muskegon County, Michigan, General 5/15 at 100.00 AAA 1,695,453
Obligation Bonds, Series 2005, 5.000%, 5/01/22 - MBIA Insured
Ottawa County, Michigan, Water Supply System, General Obligation
Bonds, Series 2007:
4,330 5.000%, 8/01/26 - MBIA Insured 8/17 at 100.00 Aaa 4,576,464
1,120 5.000%, 8/01/30 - MBIA Insured 8/17 at 100.00 Aaa 1,169,504
1,050 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 1,093,365
Obligation Bonds, Series 2007, Residuals 07-1017,
9.394%, 5/01/36 - FSA Insured (IF)
4,340 Plymouth-Canton Community School District, Wayne and Washtenaw 5/14 at 100.00 Aaa 4,489,036
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 4,625,502
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
3,175 South Redford School District, Wayne County, Michigan, General 5/15 at 100.00 AAA 3,284,982
Obligation Bonds, School Building and Site, Series 2005,
5.000%, 5/01/30 - MBIA Insured
1,655 Southfield Library Building Authority, Michigan, General Obligation 5/15 at 100.00 AAA 1,730,071
Bonds, Series 2005, 5.000%, 5/01/26 - MBIA Insured
2,200 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AAA 2,291,630
General Obligation Bonds, Series 2007, 5.000%, 5/01/32 -
MBIA Insured
2,275 Troy City School District, Oakland County, Michigan, General 5/16 at 100.00 AAA 2,488,236
Obligation Bonds, Series 2006, 5.000%, 5/01/19 - MBIA Insured
5,000 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 AAA 5,141,550
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 Obligation 11/14 at 100.00 AAA 3,704,095
Bonds, Series 2004, 5.000%, 5/01/17 - FSA Insured
1,725 Williamston Community School District, Michigan, Unlimited Tax No Opt. Call AAA 2,021,907
General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
97,880 Total Tax Obligation/General 93,139,399
------------------------------------------------------------------------------------------------------------------------------------
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.3% (9.4% OF TOTAL INVESTMENTS)
$ 1,000 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax No Opt. Call AA $ 1,123,070
General Obligation Bonds, Series 1998, 5.000%, 4/01/16
1,345 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax 10/11 at 100.00 AAA 1,401,651
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 4,507,000
5.000%, 10/15/36 - FGIC Insured
50 Michigan Municipal Bond Authority, Local Government Loan 5/08 at 100.00 A 50,172
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 2,197,406
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 5,337,965
5,000 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 5,204,099
3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,806,215
5.250%, 10/01/21 - FSA Insured
5,500 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue No Opt. Call Aaa 1,496,715
Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,070 Total Tax Obligation/Limited 25,124,293
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,000 Capital Region Airport Authority, Michigan, Revenue Refunding 7/12 at 100.00 AAA 1,031,110
Bonds, Series 2002, 5.250%, 7/01/21 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 36.5% (24.0% OF TOTAL INVESTMENTS) (4)
2,190 Anchor Bay School District, Macomb and St. Clair Counties, 5/09 at 100.00 Aaa 2,295,646
Michigan, General Obligation Bonds, Series 1999I,
6.000%, 5/01/29 (Pre-refunded 5/01/09) - FGIC Insured
935 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 Aaa 1,038,439
Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) -
FSA 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 3,787,906
770 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 Aaa 839,839
730 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 Aaa 796,211
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 4,483,126
1,500 5.000%, 7/01/25 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 Aaa 1,670,730
1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 1,074,540
Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) -
FGIC Insured
1,085 Freeland Community School District, Saginaw, Midland and Bay 5/10 at 100.00 AA- (4) 1,154,386
Counties, Michigan, General Obligation Bonds, Series 2000,
5.250%, 5/01/19 (Pre-refunded 5/01/10)
1,200 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 1,217,112
Mortgage Hospital Revenue Bonds, Portage Health System Inc.,
Series 1998, 5.450%, 8/01/47 (Pre-refunded 8/01/08) -
MBIA Insured
2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AA- (4) 2,189,520
General Obligation Bonds, Series 2002, 5.000%, 5/01/24
(Pre-refunded 5/01/12)
1,790 Lansing Building Authority, Michigan, General Obligation Bonds, 6/13 at 100.00 AAA 1,991,268
Series 2003A, 5.000%, 6/01/26 (Pre-refunded 6/01/13) -
MBIA Insured
3,880 Mayville Community Schools, Tuscola County, Michigan, 11/14 at 100.00 Aaa 4,374,816
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) 274,850
Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM)
25
NUM
Nuveen Michigan Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
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 $ 1,077,870
500 6.125%, 11/15/26 (Pre-refunded 11/15/09) 11/09 at 101.00 AAA 539,215
5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 5,372,049
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) 1,696,020
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17 (Pre-refunded 3/01/13)
Michigan State Hospital Finance Authority, Hospital Revenue
Refunding Bonds, Mercy Mt. Clemens Corporation Obligated Group,
Series 1999A:
3,385 5.750%, 5/15/17 (Pre-refunded 5/15/09) - MBIA Insured 5/09 at 101.00 AAA 3,574,120
500 5.750%, 5/15/29 (Pre-refunded 5/15/09) - MBIA Insured 5/09 at 101.00 AAA 527,935
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A (4) 1,076,590
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 3,507,194
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 1,089,480
5.000%, 11/01/25 (Pre-refunded 11/01/11) - FSA Insured
1,100 Michigan Strategic Fund, Limited Obligation Revenue Refunding 7/08 at 101.00 BBB (4) 1,125,762
Bonds, Porter Hills Presbyterian Village, Series 1998,
5.375%, 7/01/28 (Pre-refunded 7/01/08)
2,000 Michigan, Certificates of Participation, Series 2000, 6/10 at 100.00 AAA 2,132,060
5.500%, 6/01/27 (Pre-refunded 6/01/10) - AMBAC Insured
700 Muskegon Heights, Muskegon County, Michigan, Water Supply 11/10 at 100.00 Aaa 760,914
System Revenue Bonds, Series 2000A, 5.625%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
1,125 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB+ (4) 1,231,110
Revenue Bonds, Series 2000B, 6.000%, 7/01/39
(Pre-refunded 7/01/10)
Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Bonds, Series 2002E:
85 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 104,233
915 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 1,122,037
4,100 Puerto Rico, Highway Revenue Bonds, Highway and Transportation 7/16 at 100.00 Aaa 4,835,581
Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16)
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 Aaa 1,074,850
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 2,194,857
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 1,157,972
Counties, Michigan, General Obligation Bonds, Series 2001,
5.375%, 5/01/19 (Pre-refunded 11/01/11) - FSA Insured
2,600 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 Aaa 2,803,112
Unlimited Tax General Obligation School Building and Site
Bonds, Series 2000, 5.900%, 5/01/18 (Pre-refunded 5/01/10) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
58,875 Total U.S. Guaranteed 64,191,350
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.1% (8.0% OF TOTAL INVESTMENTS)
3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 3,139,020
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 3,433,722
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,022,500
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- $ 4,090,280
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 2,111,660
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 4,450,997
Bonds, Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 -
AMBAC Insured
3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 AAA 3,045,510
Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 -
XLCA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,855 Total Utilities 21,293,689
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.3% (6.1% OF TOTAL INVESTMENTS)
5,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 5,704,378
Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue No Opt. Call Aaa 1,627,875
Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
565 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 618,579
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 1,541,805
Bonds, Series 2003A, 5.000%, 7/01/25 - MBIA Insured
4,210 Michigan Municipal Bond Authority, Clean Water Revolving Fund 10/14 at 100.00 AAA 4,600,730
Revenue Bonds, Series 2004,5.000%, 10/01/19
1,150 Michigan Municipal Bond Authority, Drinking Water Revolving Fund 10/14 at 100.00 AAA 1,217,689
Revenue Bonds, Series 2004, 5.000%, 10/01/23
1,000 Michigan Municipal Bond Authority, Water Revovling Fund Revenue 10/17 at 100.00 AAA 1,074,900
Bonds, Series 2007, 5.000%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
15,425 Total Water and Sewer 16,385,956
------------------------------------------------------------------------------------------------------------------------------------
$ 267,950 Total Investments (cost $256,010,090) - 152.1% 267,616,251
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.2)% (3,870,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.5% 6,195,693
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.4)% (5) (94,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 175,941,944
====================================================================================================================
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The AAA ratings shown in the Portfolio of Investments
reflect the AAA ratings on certain bonds insured by AMBAC,
FGIC, XLCA or MBIA as of January 31, 2008. Subsequent to
January 31, 2008, at least one rating agency reduced the
rating for AMBAC-insured bonds to AA and XLCA-insured and
FGIC-insured bonds experienced further downgrades such that
they no longer carry AAA ratings which had the effect of
reducing the rating of many (if not all) of the bonds
insured by those particular insurers. One or more rating
agencies have placed each of these insurers on "negative
credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If
one or more insurers' ratings are reduced below AAA by these
rating agencies, it would likely reduce the effective rating
of many of the bonds insured by that insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
total investments is (35.1)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
27
NMP
Nuveen Michigan Premium Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.5% (3.6% OF TOTAL INVESTMENTS)
$ 440 Chandler Park Academy, Michigan, Public School Academy Charter 11/15 at 100.00 BBB- $ 386,355
School Revenue Bonds, Series 2005, 5.125%, 11/01/35
275 Grand Traverse Academy, Michigan, Public School Academy 11/17 at 100.00 BBB- 229,248
Revenue Bonds, Series 2007, 4.750%, 11/01/32
2,000 Michigan Higher Education Student Loan Authority, Revenue Bonds, 9/12 at 100.00 AAA 2,077,800
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 3,592,120
Series 1999, 5.125%, 11/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,215 Total Education and Civic Organizations 6,285,523
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.2% (6.8% OF TOTAL INVESTMENTS)
1,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 1,452,885
Metropolitan Hospital, Series 2005A, 5.250%, 7/01/30
1,800 Michigan Hospital Financing Authority, Revenue Bonds, Oakwood 7/17 at 100.00 A 1,723,770
Obligated Group, Series 2007A, 5.000%, 7/15/37
Michigan State Hospital Finance Authority, Revenue Bonds,
Chelsea Community Hospital, Series 2005:
425 5.000%, 5/15/25 5/15 at 100.00 BBB 415,115
150 5.000%, 5/15/30 5/15 at 100.00 BBB 140,511
1,005 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 991,302
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
3,700 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 3,696,929
Sparrow Obligated Group, Series 2005, 5.000%, 11/15/36 -
MBIA Insured (UB)
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 2/08 at 100.00 BB- 2,002,060
500 6.500%, 8/15/18 2/08 at 100.00 BB- 500,385
800 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 741,184
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.375%, 6/01/26
------------------------------------------------------------------------------------------------------------------------------------
11,880 Total Health Care 11,664,141
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.9% (4.6% OF TOTAL INVESTMENTS)
915 Michigan Housing Development Authority, GNMA Collateralized 4/12 at 102.00 Aaa 925,998
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 4/08 at 100.00 AAA 1,502,010
Revenue Bonds, Breton Village Green Project, Series 1993,
5.625%, 10/15/18 - FSA Insured
2,400 Michigan Housing Development Authority, Limited Obligation 4/08 at 100.00 AAA 2,464,944
Revenue Bonds, Walled Lake Villa Project, Series 1993,
6.000%, 4/15/18 - FSA Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 800 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA $ 802,264
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:
635 6.600%, 6/01/13 6/08 at 100.00 AAA 636,378
1,500 6.600%, 6/01/22 6/08 at 100.00 AAA 1,588,140
------------------------------------------------------------------------------------------------------------------------------------
7,750 Total Housing/Multifamily 7,919,734
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.5% (0.4% OF TOTAL INVESTMENTS)
665 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 604,425
Presbyterian Villages of Michigan Obligated Group, Series 2005,
5.250%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,050 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB 1,027,583
Pollution Control Revenue Bonds, International Paper Company,
Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 48.1% (32.0% OF TOTAL INVESTMENTS)
1,475 Anchor Bay School District, Macomb and St. Clair Counties, 11/13 at 100.00 AA- 1,589,652
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- 2,634,975
Michigan, Unlimited Tax General Obligation Refunding Bonds,
Series 2001, 5.000%, 5/01/21
910 Caledonia Community Schools, Kent County, Michigan, General 5/17 at 100.00 AAA 943,470
Obligation Bonds, Series 2007, Residuals 1018, 9.398%, 5/01/32 -
MBIA Insured (IF)
2,250 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/15 at 100.00 AAA 2,352,060
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 2,175,822
750 6.000%, 5/01/21 - FGIC Insured No Opt. Call Aaa 898,943
2,500 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 Aaa 2,627,825
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 2,747,961
5.250%, 4/01/24 - AMBAC Insured
7,000 Detroit-Wayne County Stadium Authority, Michigan, Limited Tax 2/08 at 101.00 Aaa 7,078,330
General Obligation Building Authority Stadium Bonds, Series 1997,
5.250%, 2/01/27 - FGIC Insured
860 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AAA 918,342
5.000%, 9/01/24 - MBIA Insured
1,650 Holly Area School District, Oakland County, Michigan, General 5/16 at 100.00 AAA 1,727,138
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- 2,126,000
Obligation Bonds, Series 2003, 5.000%, 5/01/22
1,250 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 1,323,950
Series 2006, 5.000%, 5/01/25 - FSA Insured
500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA- 535,890
Obligation Bonds, Series 2004, 5.000%, 5/01/22
1,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,068,090
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 -
MBIA Insured
865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 902,359
General Obligation Bonds, Series 2007, 5.000%, 5/01/37 -
FSA Insured
29
NMP
Nuveen Michigan Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS January 31, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 425 Marshall Public Schools, Calhoun County, Michigan, General 5/17 at 100.00 AAA $ 432,688
Obligation Bonds, Series 2007, 5.000%, 5/01/30 - XLCA Insured
1,000 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 1,079,980
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- 1,091,480
2,000 5.250%, 5/01/21 5/13 at 100.00 AA- 2,182,960
1,450 Oakland Intermediate School District, Oakland County, Michigan, 5/17 at 100.00 AAA 1,512,626
General Obligation Bonds, Series 2007, 5.000%, 5/01/36 -
FSA Insured
3,500 Ottawa County, Michigan, Water Supply System, General 8/17 at 100.00 Aaa 3,654,700
Obligation Bonds, Series 2007, 5.000%, 8/01/30 - MBIA Insured
1,100 Oxford Area Community Schools, Oakland and Lapeer Counties, 5/14 at 100.00 AAA 1,151,249
Michigan, General Obligation Bonds, Series 2004,
5.000%, 5/01/25 - FSA Insured
680 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 708,084
Obligation Bonds, Series 2007, Residuals 07-1017,
9.394%, 5/01/36 - FSA Insured (IF)
1,000 Rockford Public Schools, Kent County, Michigan, General 5/15 at 100.00 AAA 1,044,720
Obligation Bonds, Series 2005, 5.000%, 5/01/27 - FSA Insured
1,100 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AAA 1,145,815
General Obligation Bonds, Series 2007, 5.000%, 5/01/32 -
MBIA Insured
2,830 Warren Consolidated School District, Macomb and Oakland 5/13 at 100.00 AA- 3,086,030
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 1,632,480
4,435 5.000%, 12/01/30 - MBIA Insured 12/11 at 101.00 AAA 4,524,321
------------------------------------------------------------------------------------------------------------------------------------
52,010 Total Tax Obligation/General 54,897,940
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.5% (14.3% OF TOTAL INVESTMENTS)
2,880 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 Aaa 2,923,459
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 A+ 2,778,144
6,500 5.000%, 10/15/24 10/11 at 100.00 A+ 6,789,510
1,600 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 AAA 1,652,032
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 5,233,300
2,480 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 2,581,234
1,500 Michigan, Comprehensive Transportation Revenue Refunding 11/11 at 100.00 AAA 1,594,905
Bonds, Series 2001A, 5.000%, 11/01/19 - FSA Insured
3,500 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue No Opt. Call Aaa 952,455
Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
26,030 Total Tax Obligation/Limited 24,505,039
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.4% (17.5% OF TOTAL INVESTMENTS) (4)
1,375 Chippewa Valley Schools, Macomb County, Michigan, General 5/11 at 100.00 AA- (4) 1,483,749
Obligation Bonds, Series 2001, 5.000%, 5/01/26
(Pre-refunded 5/01/11)
915 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 Aaa 1,030,345
Bonds, Series 2005A, 5.000%, 7/01/30 (Pre-refunded 7/01/15) -
MBIA Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,385 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 Aaa $ 1,510,620
Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) -
FGIC Insured
2,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,149,080
Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) -
FGIC Insured
2,140 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 2,170,516
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 AA- (4) 560,275
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) 82,455
Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM)
1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/10 at 100.00 A+ (4) 1,615,875
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 2,696,075
Bonds, Ascension Health Credit Group, Series 1999A,
6.125%, 11/15/26 (Pre-refunded 11/15/09)
3,575 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 3,841,016
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) 1,696,020
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17 (Pre-refunded 3/01/13)
2,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/09 at 101.00 AAA 2,111,740
Refunding Bonds, Mercy Mt. Clemens Corporation Obligated
Group, Series 1999A, 5.750%, 5/15/29 (Pre-refunded 5/15/09) -
MBIA Insured
500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A+ (4) 557,885
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31 (Pre-refunded 11/15/11)
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/08 at 100.00 AAA 3,064,380
Refunding Bonds, St. John's Hospital, Series 1993A,
6.000%, 5/15/13 - AMBAC Insured (ETM)
1,000 Otsego Public Schools District, Allegan and Kalamazoo Counties, 5/14 at 100.00 AAA 1,120,550
Michigan, General Obligation Bonds, Series 2004,
5.000%, 5/01/25 (Pre-refunded 5/01/14) - FSA Insured
2,515 Plainwell Community Schools, Allegan County, Michigan, General 11/12 at 100.00 AA- (4) 2,777,994
Obligation Bonds, Series 2002, 5.000%, 5/01/28
(Pre-refunded 11/01/12)
1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,617,019
Michigan, General Obligation Bonds, Series 2004,
5.250%, 5/01/20 (Pre-refunded 5/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
27,905 Total U.S. Guaranteed 30,085,594
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.0% (9.3% OF TOTAL INVESTMENTS)
1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,046,340
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 984,866
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,022,500
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 A- 5,112,850
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 3,167,490
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 3,045,510
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 1,541,820
Series 2002, 5.375%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,425 Total Utilities 15,921,376
------------------------------------------------------------------------------------------------------------------------------------
31
NMP
Nuveen Michigan Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.5% (10.9% OF TOTAL INVESTMENTS)
$ 3,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA $ 3,630,060
Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured
1,085 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 1,087,951
Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - MBIA Insured
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call Aaa 1,627,875
Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
1,120 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 1,226,210
Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured
1,330 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 7/15 at 100.00 AAA 1,377,853
Series 2005, 5.000%, 1/01/30 - MBIA Insured
1,000 Michigan Municipal Bond Authority, Water Revovling Fund Revenue 10/17 at 100.00 AAA 1,074,900
Bonds, Series 2007, 5.000%, 10/01/24
8,460 North Kent Sewer Authority, Michigan, Sewer Revenue Bonds, 11/16 at 100.00 AAA 8,802,966
Series 2006, 5.000%, 11/01/31 - MBIA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
17,995 Total Water and Sewer 18,827,815
------------------------------------------------------------------------------------------------------------------------------------
$ 166,925 Total Investments (cost $166,641,159) - 150.5% 171,739,170
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.1)% (8,105,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.7% 6,457,284
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.1)% (5) (56,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 114,091,454
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT JANUARY 31, 2008:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $ 800,000 Pay 3-Month USD-LIBOR 5.375% Semi-Annually 4/23/08 4/23/30 $ 65,922
Royal Bank
of Canada 1,000,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 82,706
------------------------------------------------------------------------------------------------------------------------------------
$148,628
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate).
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The AAA ratings shown in the Portfolio of Investments
reflect the AAA ratings on certain bonds insured by AMBAC,
FGIC, XLCA or MBIA as of January 31, 2008. Subsequent to
January 31, 2008, at least one rating agency reduced the
rating for AMBAC-insured bonds to AA and XLCA-insured and
FGIC-insured bonds experienced further downgrades such that
they no longer carry AAA ratings which had the effect of
reducing the rating of many (if not all) of the bonds
insured by those particular insurers. One or more rating
agencies have placed each of these insurers on "negative
credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If
one or more insurers' ratings are reduced below AAA by these
rating agencies, it would likely reduce the effective rating
of many of the bonds insured by that insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
total investments is (32.6)%.
(6) 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.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
32
NZW
Nuveen Michigan Dividend Advantage Municipal Fund
Portfolio of INVESTMENTS
January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.1% (4.7% OF TOTAL INVESTMENTS)
$ 230 Chandler Park Academy, Michigan, Public School Academy Charter 11/15 at 100.00 BBB- $ 201,958
School Revenue Bonds, Series 2005, 5.125%, 11/01/35
500 Concord Academy, Boyne City, Michigan, Certificates of 11/17 at 100.00 N/R 476,805
Participation, Series 2007, 5.450%, 11/01/22
75 Grand Traverse Academy, Michigan, Public School Academy 11/17 at 100.00 BBB- 62,522
Revenue Bonds, Series 2007, 4.750%, 11/01/32
1,150 Michigan Higher Education Facilities Authority, Limited Obligation 9/11 at 100.00 Aaa 1,177,347
Revenue Refunding Bonds, Kettering University, Series 2001,
5.000%, 9/01/26 - AMBAC Insured
250 Michigan Public Educational Facilities Authority, Charter School 12/17 at 100.00 N/R 248,828
Revenue Bonds, American Montessori Academy, Series 2007,
6.500%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
2,205 Total Education and Civic Organizations 2,167,460
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 22.7% (15.0% OF TOTAL INVESTMENTS)
500 Allegan Hospital Finance Authority, Michigan, Revenue Bonds, 11/09 at 101.00 N/R 518,115
Allegan General Hospital, Series 1999, 7.000%, 11/15/21
500 Garden City Hospital Finance Authority, Michigan, Revenue Bonds, 8/17 at 100.00 N/R 407,155
Garden City Hospital Obligated Group, Series 2007A,
5.000%, 8/15/38
350 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 339,007
Metropolitan Hospital, Series 2005A, 5.250%, 7/01/30
600 Michigan Hospital Financing Authority, Revenue Bonds, Oakwood 7/17 at 100.00 A 574,590
Obligated Group, Series 2007A, 5.000%, 7/15/37
700 Michigan State Hospital Finance Authority, Hospital Revenue 7/08 at 100.00 Ba3 700,308
Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16
Michigan State Hospital Finance Authority, Revenue Bonds,
Chelsea Community Hospital, Series 2005:
425 5.000%, 5/15/30 5/15 at 100.00 BBB 398,115
335 5.000%, 5/15/37 5/15 at 100.00 BBB 305,527
400 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 394,548
Marquette General Hospital, Series 2005A, 5.000%, 5/15/26
1,075 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 1,074,108
Sparrow Obligated Group, Series 2005, 5.000%, 11/15/36 -
MBIA Insured (UB)
400 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 370,592
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.375%, 6/01/26
1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 11/11 at 100.00 AAA 1,824,822
Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,085 Total Health Care 6,906,887
------------------------------------------------------------------------------------------------------------------------------------
33
NZW
Nuveen Michigan Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.3% (4.2% OF TOTAL INVESTMENTS)
$ 1,700 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa $ 1,722,015
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 Revenue 7/15 at 100.00 AAA 200,566
Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,900 Total Housing/Multifamily 1,922,581
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.7% (1.1% OF TOTAL INVESTMENTS)
500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB+ 500,380
Republic Services Inc., Series 2001, 4.250%, 8/01/31
(Mandatory put 4/01/14) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0% (0.6% OF TOTAL INVESTMENTS)
335 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 304,485
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, Michigan, 11/14 at 100.00 BBB 489,325
Pollution Control Revenue Bonds, International Paper Company,
Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 42.8% (28.1% OF TOTAL INVESTMENTS)
265 Caledonia Community Schools, Kent County, Michigan, General 5/17 at 100.00 AAA 274,747
Obligation Bonds, Series 2007, Residuals 1018, 9.398%, 5/01/32 -
MBIA Insured (IF)
300 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AAA 315,498
5.000%, 9/01/27 - MBIA Insured
940 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA- 970,033
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 535,890
Obligation School Building and Site Bonds, Series 2004,
5.000%, 5/01/22 - FSA Insured
300 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 317,748
Series 2006, 5.000%, 5/01/25 - FSA Insured
430 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 448,572
General Obligation Bonds, Series 2007, 5.000%, 5/01/37 -
FSA Insured
400 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 431,992
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 1,182,867
Wastewater Management System 2 Revenue Bonds,
Series 2002, 5.000%, 7/01/26 - FGIC Insured
1,410 New Haven Community Schools, Macomb County, Michigan, 5/16 at 100.00 AAA 1,493,416
General Obligation Bonds, Series 2006, 5.000%, 5/01/25 -
FSA Insured
400 Oakland Intermediate School District, Oakland County, Michigan, 5/17 at 100.00 AAA 417,276
General Obligation Bonds, Series 2007, 5.000%, 5/01/36 -
FSA Insured
1,000 Ottawa County, Michigan, Water Supply System, General 8/17 at 100.00 Aaa 1,044,200
Obligation Bonds, Series 2007, 5.000%, 8/01/30 - MBIA Insured
200 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 208,260
Obligation Bonds, Series 2007, Residuals 07-1017,
9.394%, 5/01/36 - FSA Insured (IF)
330 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AAA 343,745
General Obligation Bonds, Series 2007, 5.000%, 5/01/32 -
MBIA 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 513,105
800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 820,968
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,690 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 AAA $ 1,724,037
Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport,
Series 2001A, 5.000%, 12/01/30 - MBIA Insured
500 Wayne Westland Community Schools, Michigan, General Obligation 11/14 at 100.00 AAA 552,850
Bonds, Series 2004, 5.000%, 5/01/17 - FSA Insured
1,300 Willow Run Community Schools, Washtenaw County, Michigan, 5/11 at 100.00 AA- 1,371,006
General Obligation Bonds, Series 2001, 5.000%, 5/01/21
------------------------------------------------------------------------------------------------------------------------------------
12,415 Total Tax Obligation/General 12,966,210
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.6% (9.6% OF TOTAL INVESTMENTS)
1,100 Grand Rapids Building Authority, Kent County, Michigan, Limited 10/11 at 100.00 AAA 1,146,332
Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 -
MBIA Insured
1,000 Kalkaska County Hospital Authority, Michigan, Hospital Revenue No Opt. Call N/R 1,023,530
Bonds, Series 2007, 5.125%, 5/01/14
720 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 Aaa 730,865
5.000%, 10/15/36 - FGIC Insured
1,205 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ 1,258,671
Program, Series 2001I, 5.000%, 10/15/24
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call Aaa 272,130
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,025 Total Tax Obligation/Limited 4,431,528
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.9% (14.3% OF TOTAL INVESTMENTS) (4)
1,000 Detroit City School District, Wayne County, Michigan, Unlimited 5/12 at 100.00 AAA 1,114,730
Tax School Building and Site Improvement Bonds, Series 2001A,
5.500%, 5/01/21 (Pre-refunded 5/01/12) - FSA Insured
720 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 Aaa 799,654
Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) -
FSA Insured
1,000 Garden City School District, Wayne County, Michigan, General 5/11 at 100.00 AA- (4) 1,079,090
Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26
(Pre-refunded 5/01/11)
560 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA- (4) 610,109
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/27 (Pre-refunded 11/01/11)
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 1,095,200
Spectrum Health, Series 2001A, 5.250%, 1/15/21
(Pre-refunded 7/15/11)
500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 530,770
Bonds, Series 2000A, 5.500%, 10/01/40
Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Bonds, Series 2002E:
85 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 104,233
615 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 754,156
500 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 Aaa 537,220
Obligation Bonds, Series 2001, 5.150%, 11/01/22
(Pre-refunded 11/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,980 Total U.S. Guaranteed 6,625,162
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.7% (10.3% OF TOTAL INVESTMENTS)
1,115 Lansing Board of Water and Light, Michigan, Steam and Electric 7/13 at 100.00 AAA 1,203,408
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 1,298,640
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 AAA 2,255,774
Pollution Control Revenue Refunding Bonds, Fixed Rate
Conversion, Detroit Edison Company, Series 1999C,
5.650%, 9/01/29 - XLCA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,565 Total Utilities 4,757,822
------------------------------------------------------------------------------------------------------------------------------------
35
NZW
Nuveen Michigan Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.8% (11.0% OF TOTAL INVESTMENTS)
$ 1,000 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA $ 1,037,160
Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured
1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue No Opt. Call Aaa 1,085,250
Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
280 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 306,552
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 1,011,060
Bonds, Series 2001A, 5.000%, 7/01/30 - FGIC Insured
1,000 Michigan Municipal Bond Authority, Clean Water Revolving Fund 10/15 at 100.00 AAA 1,100,690
Revenue Bonds, Series 2005, 5.000%, 10/01/19
500 Michigan Municipal Bond Authority, Water Revovling Fund Revenue 10/17 at 100.00 AAA 540,360
Bonds, Series 2007, 5.000%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
4,780 Total Water and Sewer 5,081,072
------------------------------------------------------------------------------------------------------------------------------------
$ 45,290 Total Investments (cost $44,980,355) - 152.2% 46,152,912
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.4)% (715,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 882,206
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.8)% (5) (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 30,320,118
====================================================================================================================
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The AAA ratings shown in the Portfolio of Investments
reflect the AAA ratings on certain bonds insured by AMBAC,
FGIC, XLCA or MBIA as of January 31, 2008. Subsequent to
January 31, 2008, at least one rating agency reduced the
rating for AMBAC-insured bonds to AA and XLCA-insured and
FGIC-insured bonds experienced further downgrades such that
they no longer carry AAA ratings which had the effect of
reducing the rating of many (if not all) of the bonds
insured by those particular insurers. One or more rating
agencies have placed each of these insurers on "negative
credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If
one or more insurers' ratings are reduced below AAA by these
rating agencies, it would likely reduce the effective rating
of many of the bonds insured by that insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
total investments is (34.7)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
36
NUO
Nuveen Ohio Quality Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.7% (3.1% OF TOTAL INVESTMENTS)
$ 5,000 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB $ 4,828,850
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2, 5.875%, 6/01/47
2,580 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,506,857
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
7,580 Total Consumer Staples 7,335,707
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.8% (11.0% OF TOTAL INVESTMENTS)
1,650 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 1,661,765
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 1,827,910
Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24
1,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 955,780
Wittenberg University, Series 2005, 5.000%, 12/01/29
5,000 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 AAA 5,174,750
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 1,495,754
Denison University, Series 2004, 5.000%, 11/01/21
1,320 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/14 at 100.00 AAA 1,375,321
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 Baa2 1,044,270
Wittenberg University, Series 2001, 5.500%, 12/01/15
1,500 Ohio State Higher Education Facilities, Revenue Bonds, 12/16 at 100.00 AAA 1,543,605
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 Aa2 1,259,544
5.125%, 12/01/31
3,000 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 3,223,050
5.250%, 6/01/22
1,510 University of Akron, Ohio, General Receipts Bonds, Series 2003A, 1/13 at 100.00 AAA 1,601,778
5.000%, 1/01/21 - AMBAC Insured
850 University of Cincinnati, Ohio, General Receipts Bonds, Series 2003C, 6/13 at 100.00 Aaa 888,922
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 1,281,648
2,605 5.000%, 6/01/25 - AMBAC Insured 6/14 at 100.00 AAA 2,672,313
------------------------------------------------------------------------------------------------------------------------------------
25,000 Total Education and Civic Organizations 26,006,410
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 17.6% (11.5% OF TOTAL INVESTMENTS)
2,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/09 at 101.00 Baa1 2,025,620
Hospital Facilities Revenue Bonds, Summa Health System,
Series 1998A, 5.375%, 11/15/24
5,200 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 Aaa 5,211,856
Cincinnati Children's Medical Center Project, Series 2006K,
5.000%, 5/15/31 - FGIC Insured
37
NUO
Nuveen Ohio Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/08 at 101.00 AAA $ 1,012,360
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- 2,167,180
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 4,600,665
Regional Medical Center, Series 2002A, 5.625%, 8/15/32
2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital Medical 5/14 at 100.00 Aaa 2,661,318
Center, Series 2004J, 5.250%, 5/15/16 - FGIC Insured
785 Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, 5/16 at 100.00 A- 811,086
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 2,511,125
2,500 5.000%, 5/01/32 No Opt. Call AA 2,507,125
830 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 864,213
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- 1,176,336
Health System Group, Series 2006, 5.250%, 11/15/36
1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 1,789,483
Union Hospital Project, Series 2001, 5.750%, 10/01/21 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
26,675 Total Health Care 27,338,367
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.2% (5.4% OF TOTAL INVESTMENTS)
1,385 Clermont County, Ohio, GNMA Collateralized Mortgage Revenue 2/08 at 100.00 Aaa 1,386,094
Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30
925 Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing 9/12 at 102.00 Aaa 941,724
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 2,547,419
2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,280,713
985 Franklin County, Ohio, FHA-Insured Multifamily Housing Mortgage 7/08 at 100.00 Aa2 985,256
Revenue Bonds, Hamilton Creek Apartments Project,
Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax)
800 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 809,232
Revenue Bonds, Canterbury Court Project, Series 2007,
5.500%, 10/20/42 (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 N/R 814,496
850 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 790,500
1,000 Ohio Housing Finance Agency, Multifamily Housing Revenue Bonds, No Opt. Call Aaa 978,910
Warren Heights Project, GNMA Collateralized, Series 2007,
5.100%, 11/20/48 (Alternative Minimum Tax)
1,200 Summit County Port Authority, Ohio, Multifamily Housing Revenue 9/17 at 102.00 AAA 1,172,340
Bonds, Callis Tower Apartments Project, Series 2007,
5.250%, 9/20/47 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,670 Total Housing/Multifamily 12,706,684
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.1% (2.0% OF TOTAL INVESTMENTS)
1,670 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 9/08 at 102.00 Aaa 1,681,907
Program Residential Mortgage Revenue Bonds, Series 1997B,
5.400%, 9/01/29 (Alternative Minimum Tax)
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 1,180 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 3/08 at 101.50 Aaa $ 1,196,697
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 Revenue 9/15 at 100.00 Aaa 1,965,920
Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,850 Total Housing/Single Family 4,844,524
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS)
530 Cleveland-Cuyahoga County Port Authority, Ohio, Bond Fund 11/14 at 100.00 N/R 537,261
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 AA- 1,531,725
Emery Air Freight Corporation and Emery Worldwide Airlines Inc. -
Guarantors, Series 1998A, 5.625%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
2,030 Total Industrials 2,068,986
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4% (1.6% OF TOTAL INVESTMENTS)
4,100 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, 1/17 at 100.00 BBB 3,779,708
Life Enriching Communities Project, Series 2006A,
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.4% (0.9% OF TOTAL INVESTMENTS)
2,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, No Opt. Call A 2,105,080
Cargill Inc., Series 2004B, 4.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 36.3% (23.8% OF TOTAL INVESTMENTS)
1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102.00 Aaa 1,074,960
Obligation Bonds, Series 2000, 5.500%, 12/01/22 - MBIA Insured
Butler County, Ohio, General Obligation Bonds, Series 2002:
1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aaa 1,448,498
1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aaa 1,270,140
1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aaa 1,562,010
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 1,097,600
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 2,834,988
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 1,073,860
General Obligation Bonds, Series 2004, 5.000%, 12/01/22 -
FSA Insured
1,200 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 1,304,016
5.000%, 12/01/21
1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,095,620
5.250%, 12/01/19 - AMBAC Insured
1,000 Dublin City School District, Franklin, Delaware and Union Counties, 12/13 at 100.00 AAA 1,064,900
Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/22 -
FSA Insured
1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement Bonds, 12/10 at 100.00 Aaa 1,050,980
Series 2000A, 5.000%, 12/01/20
1,195 Fairview Park City School District, Cuyahoga County, Ohio, General 6/15 at 100.00 Aaa 1,258,980
Obligation Bonds, Series 2005, 5.000%, 12/01/24 - MBIA Insured
1,840 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,959,766
5.000%, 12/01/28
1,300 Franklin County, Ohio, Limited Tax General Obligation Refunding 12/08 at 102.00 AAA 1,350,908
Bonds, Series 1993, 5.375%, 12/01/20
39
NUO
Nuveen Ohio Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 6,650 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA $ 6,960,090
Series 2007, 5.000%, 12/01/34 - FSA Insured (UB)
125 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA 142,486
Series 2007, Drivers 1766, 10.090%, 12/01/34 - FSA Insured (IF)
1,850 Hilliard School District, Franklin County, Ohio, General 12/15 at 100.00 AAA 1,937,135
Obligation Bonds, School Construction, Series 2005,
5.000%, 12/01/26 - MBIA Insured
3,000 Hilliard School District, Franklin County, Ohio, General Obligation 12/16 at 100.00 AAA 3,172,020
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 1,222,559
Obligation Bonds, Series 2003, 5.000%, 12/01/22 - MBIA Insured
800 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 Aaa 843,488
Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC Insured
2,000 Louisville City School District, Ohio, General Obligation Bonds, 12/11 at 100.00 Aaa 2,034,720
Series 2001, 5.000%, 12/01/29 - FGIC Insured
505 Marysville Exempted School District, Union County, Ohio, General 12/15 at 100.00 AAA 533,947
Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured
500 Mason City School District, Counties of Warren and Butler, Ohio, 6/17 at 100.00 Aa1 524,880
General Obligation Bonds, Series 2007, 5.000%, 12/01/31
1,515 Massillon City School District, Ohio, General Obligation Bonds, 12/12 at 100.00 Aaa 1,645,563
Series 2003, 5.250%, 12/01/21 - MBIA Insured
640 New Albany Plain Local School District, Franklin County, Ohio, 6/12 at 100.00 Aaa 703,117
General Obligation Bonds, Series 2002, 5.500%, 12/01/17 -
FGIC Insured
1,000 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 Aaa 1,039,000
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+ 3,166,740
Series 2003F, 5.000%, 2/01/23
1,510 Painesville City School District, Ohio, General Obligation Bonds, 12/14 at 100.00 Aaa 1,608,059
Series 2004, 5.000%, 12/01/22 - FGIC Insured
1,155 Perry Local School District, Allen County, Ohio, General Obligation 12/11 at 101.00 AAA 1,236,970
Bonds, Series 2001, 5.250%, 12/01/25 - AMBAC Insured
280 Plain Local School District, Franklin and Licking Counties, Ohio, 6/11 at 100.00 Aaa 305,374
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 1,480,778
5.000%, 12/01/27 - FGIC Insured
2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 2,122,500
5.000%, 12/01/21 - FGIC Insured
70 Strongsville, Ohio, Limited Tax General Obligation Various Purpose 6/08 at 101.00 Aa1 70,873
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 2,715,798
1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 Aaa 1,245,875
1,000 West Chester Township, Butler County, Ohio, General Obligation 12/13 at 100.00 Aaa 1,027,410
Bonds, Series 2003, 5.000%, 12/01/28 - MBIA Insured
1,000 Westlake, Ohio, Various Purpose General Obligation Improvement 12/08 at 101.00 Aaa 1,035,600
and Refunding Bonds, Series 1997, 5.550%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
53,070 Total Tax Obligation/General 56,222,208
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.2% (9.3% OF TOTAL INVESTMENTS)
1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, 6/14 at 100.00 AAA 1,402,811
Series 2004A, 5.000%, 12/01/25 - AMBAC Insured
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,000 Franklin County, Ohio, Excise Tax and Lease Revenue Anticipation 12/15 at 100.00 AAA $ 3,102,930
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 1,152,476
2,600 5.000%, 12/01/33 - FGIC Insured 6/14 at 100.00 Aaa 2,632,890
4,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 Aaa 4,757,366
Series 2006, 5.000%, 12/01/32 - AMBAC Insured
1,000 Hudson City School District, Ohio, Certificates of Participation, 6/14 at 100.00 Aaa 1,028,620
Series 2004, 5.000%, 6/01/26 - MBIA Insured
New Albany Community Authority, Ohio, Community Facilities
Revenue Refunding Bonds, Series 2001B:
1,000 5.500%, 10/01/15 - AMBAC Insured 4/12 at 100.00 AAA 1,094,850
1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,095,260
800 Ohio State Building Authority, State Facilities Bonds, Administrative 4/15 at 100.00 AAA 839,616
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 2,934,442
Correctional Building Fund Project, Series 2004A,
5.250%, 4/01/15 - MBIA Insured
1,000 Ohio, State Appropriation Lease Bonds, Mental Health Capital 6/13 at 100.00 AA 1,096,200
Facilities, Series 2003B-II, 5.000%, 6/01/16
3,430 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue No Opt. Call AAA 789,312
Bonds, Series 2005A, 0.000%, 7/01/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,540 Total Tax Obligation/Limited 21,926,773
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.5% (2.2% OF TOTAL INVESTMENTS)
3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox International 12/13 at 100.00 AA 3,076,980
Airport, Series 2003C, 5.250%, 12/01/23 - RAAI Insured
(Alternative Minimum Tax)
2,000 Ohio Turnpike Commission, Revenue Refunding Bonds, No Opt. Call Aaa 2,299,740
Series 1998A, 5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Transportation 5,376,720
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 33.1% (21.7% OF TOTAL INVESTMENTS) (4)
Butler County, Ohio, General Obligation Judgment Bonds,
Series 2002:
2,030 5.250%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 Aa2 (4) 2,286,450
2,140 5.250%, 12/01/22 (Pre-refunded 12/01/12) 12/12 at 101.00 Aa2 (4) 2,410,346
3,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2001, 6/11 at 100.00 AA+ (4) 3,242,550
5.000%, 12/01/19 (Pre-refunded 6/01/11)
1,210 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, 6/09 at 101.00 AAA 1,266,120
Series 1999, 4.875%, 12/01/24 (Pre-refunded 6/01/09) -
AMBAC Insured
1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox International No Opt. Call AAA 1,090,230
Airport, Series 2005B, 5.000%, 12/01/14 - XLCA Insured (ETM)
800 Franklin County, Ohio, First Mortgage Revenue, OCLC Inc. Project, 6/08 at 100.00 AAA 831,512
Series 1979, 7.500%, 6/01/09 (ETM)
2,000 Garfield Heights City School District, Cuyahoga County, Ohio, 12/11 at 100.00 Aaa 2,184,540
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 Revenue 10/08 at 101.00 BBB (4) 1,033,960
Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23
(Pre-refunded 10/01/08)
1,500 Hamilton County, Ohio, Sewer System Revenue and Improvement 6/10 at 101.00 AAA 1,630,545
Bonds, Metropolitan Sewer District of Greater Cincinnati,
Series 2000A, 5.750%, 12/01/25 (Pre-refunded 6/01/10) -
MBIA Insured
41
NUO
Nuveen Ohio Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,000 Hilliard School District, Ohio, General Obligation School 12/10 at 101.00 Aaa $ 1,102,230
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 2,169,640
Tax General Obligation School Improvement and Refunding
Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) -
FGIC Insured
760 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 852,294
Obligation Bonds, Series 2004, 5.000%, 12/01/25
(Pre-refunded 12/01/13) - FGIC Insured
3,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 3,303,300
Kettering Medical Center, Series 1999, 6.750%, 4/01/18
(Pre-refunded 4/01/10)
1,260 Morgan Local School District, Morgan, Muskingum and Washington 12/10 at 101.00 AA (4) 1,390,271
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, Ohio, 6/12 at 100.00 Aaa 513,677
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 Section 8 2/09 at 102.00 N/R (4) 4,561,818
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 1,494,037
3,380 5.250%, 12/01/24 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 Aaa 3,840,187
6,000 Parma Community General Hospital Association, Ohio, Hospital 11/08 at 101.00 N/R (4) 6,204,537
Revenue Refunding and Improvement Bonds, Series 1998,
5.375%, 11/01/29 (Pre-refunded 11/01/08)
1,000 Princeton City School District, Butler County, Ohio, General 12/13 at 100.00 AAA 1,121,440
Obligation Bonds, Series 2003, 5.000%, 12/01/30
(Pre-refunded 12/01/13) - MBIA Insured
1,670 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- (4) 1,863,102
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 Purpose 12/11 at 100.00 Aa3 (4) 3,114,330
Limited Tax General Obligation Bonds, Series 2002,
5.250%, 12/01/27 (Pre-refunded 12/01/11)
1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 A3 (4) 1,654,500
Improvement Bonds, Trinity Health System, Series 2000,
6.375%, 10/01/20 (Pre-refunded 10/01/10)
2,000 Westerville City School District, Franklin and Delaware Counties, 6/11 at 100.00 AAA 2,161,700
Ohio, Various Purpose General Obligation Bonds, Series 2001,
5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
47,170 Total U.S. Guaranteed 51,323,316
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.2% (4.7% OF TOTAL INVESTMENTS)
4,000 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 Aaa 4,164,400
Improvement Revenue Bonds, Series 2002, 5.000%, 2/15/22 -
MBIA Insured
3,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG 4/08 at 101.00 Aaa 3,040,650
Funding Limited Partnership Project, Series 1997,
5.625%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax)
800 Ohio Municipal Electric Generation Agency, Beneficial Interest No Opt. Call AAA 281,304
Certificates, Belleville Hydroelectric Project - Joint Venture 5,
Series 2001, 0.000%, 2/15/29 - MBIA Insured
2,000 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 2,119,980
Certificates, Belleville Hydroelectric Project - Joint Venture 5,
Series 2004, 5.000%, 2/15/20 - AMBAC Insured
1,500 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/08 at 102.00 N/R 1,472,490
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,300 Total Utilities 11,078,824
------------------------------------------------------------------------------------------------------------------------------------
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.9% (1.9% OF TOTAL INVESTMENTS)
$ 430 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 Aaa $ 446,039
Series 2007, 5.000%, 12/01/32 - AMBAC Insured
1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding No Opt. Call AAA 1,151,770
and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 -
MBIA Insured
40 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding 7/08 at 100.00 AAA 40,068
and Improvement Bonds, Series 1996H, 5.750%, 1/01/26 -
MBIA Insured
1,220 Hamilton, Ohio, Wastewater System Revenue Bonds, Series 2005, 10/15 at 100.00 Aaa 1,336,974
5.250%, 10/01/22 - FSA Insured
1,500 Ohio Water Development Authority, Water Pollution Control Loan 6/15 at 100.00 AAA 1,590,046
Fund Revenue Bonds, Water Quality Project, Series 2005B,
5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
4,190 Total Water and Sewer 4,564,897
------------------------------------------------------------------------------------------------------------------------------------
$ 229,175 Total Investments (cost $228,866,365) - 152.7% 236,678,204
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.9)% (4,435,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.1)% (245,708)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (5) (77,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 154,997,496
====================================================================================================================
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The AAA ratings shown in the Portfolio of Investments
reflect the AAA ratings on certain bonds insured by AMBAC,
FGIC, XLCA or MBIA as of January 31, 2008. Subsequent to
January 31, 2008, at least one rating agency reduced the
rating for AMBAC-insured bonds to AA and XLCA-insured and
FGIC-insured bonds experienced further downgrades such that
they no longer carry AAA ratings which had the effect of
reducing the rating of many (if not all) of the bonds
insured by those particular insurers. One or more rating
agencies have placed each of these insurers on "negative
credit watch", which may presage one or more rating
reductions for such insurer or insurers in the future. If
one or more insurers' ratings are reduced below AAA by these
rating agencies, it would likely reduce the effective rating
of many of the bonds insured by that insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
total investments is (32.5)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
43
NXI
Nuveen Ohio Dividend Advantage Municipal Fund
Portfolio of INVESTMENTS
January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.6% (3.0% OF TOTAL INVESTMENTS)
$ 2,000 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB $ 1,931,540
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2, 5.875%, 6/01/47
1,025 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 995,941
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
3,025 Total Consumer Staples 2,927,481
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.3% (9.4% OF TOTAL INVESTMENTS)
1,165 Cleveland-Cuyahoga County Port Authority, Ohio, Lease Revenue 8/15 at 100.00 AAA 1,228,644
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+ 704,991
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 2,718,079
Ohio Northern University, Series 2002, 5.000%, 5/01/22
500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 500,445
Wittenberg University, Series 2005, 5.000%, 12/01/24
2,000 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 AAA 2,069,900
Bonds, University of Dayton, 2006 Project, Series 2006,
5.000%, 12/01/30 - AMBAC Insured
1,760 Ohio University at Athens, Subordinate Lien General Receipts 6/14 at 100.00 AAA 1,866,410
Bonds, Series 2004, 5.000%, 12/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,775 Total Education and Civic Organizations 9,088,469
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.8% (7.8% OF TOTAL INVESTMENTS)
2,100 Butler County, Ohio, Hospital Facilities Revenue Bonds, Cincinnati 5/16 at 100.00 Aaa 2,104,788
Children's Medical Center Project, Series 2006K,
5.000%, 5/15/31 - FGIC Insured
1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 AA- 1,191,949
Clinic Health System, Series 2003A, 6.000%, 1/01/32
1,950 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare 11/09 at 101.00 AAA 2,022,813
Obligated Group, Series 1999, 5.375%, 11/15/29 - AMBAC Insured
330 Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, 5/16 at 100.00 A- 340,966
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 1,004,450
Initiatives, Series 2004A, 5.000%, 5/01/30
335 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 348,809
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- 490,140
Health System Group, Series 2006, 5.250%, 11/15/36
------------------------------------------------------------------------------------------------------------------------------------
7,315 Total Health Care 7,503,915
------------------------------------------------------------------------------------------------------------------------------------
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.4% (5.5% OF TOTAL INVESTMENTS)
$ 350 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa $ 354,039
Revenue Bonds, Canterbury Court Project, Series 2007,
5.500%, 10/20/42 (Alternative Minimum Tax)
2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue 4/11 at 102.00 Aa2 2,992,812
Bonds, Asbury Woods Project, Series 2001A, 5.450%, 4/01/26
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 N/R 315,617
340 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 316,200
415 Ohio Housing Finance Agency, Multifamily Housing Revenue Bonds, No Opt. Call Aaa 406,248
Warren Heights Project, GNMA Collateralized, Series 2007,
5.100%, 11/20/48 (Alternative Minimum Tax)
1,000 Summit County Port Authority, Ohio, Multifamily Housing Revenue 9/17 at 102.00 AAA 976,950
Bonds, Callis Tower Apartments Project, Series 2007,
5.250%, 9/20/47 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,300 Total Housing/Multifamily 5,361,866
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.8% (1.9% OF TOTAL INVESTMENTS)
340 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 357,966
Program Residential Mortgage Revenue Bonds, Series 2000C,
6.050%, 3/01/32 (Alternative Minimum Tax)
870 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 917,380
Program Residential Mortgage Revenue Bonds, Series 2000D,
5.450%, 9/01/31 (Alternative Minimum Tax)
45 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 45,635
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 491,480
Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,755 Total Housing/Single Family 1,812,461
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.7% (3.1% OF TOTAL INVESTMENTS)
380 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R 367,935
Revenue Bonds, Bond Fund Program - Columbia National Group
Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax)
880 Ohio State Water Development Authority, Solid Waste Revenue 7/12 at 100.00 B+ 829,734
Bonds, Allied Waste Industries, Inc., Series 2007A,
5.150%, 7/15/15 (Alternative Minimum Tax)
1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa3 1,134,600
Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21
700 Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue 7/17 at 102.00 N/R 665,406
Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,960 Total Industrials 2,997,675
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,800 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, 1/17 at 100.00 BBB 1,659,384
Life Enriching Communities Project, Series 2006A,
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.5% (14.9% OF TOTAL INVESTMENTS)
1,500 Centerville City School District, Montgomery County, Ohio, General 6/15 at 100.00 Aaa 1,562,010
Obligation Bonds, Series 2005, 5.000%, 12/01/30 - FSA Insured
400 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 153,792
Obligation Bonds, Series 2006, 0.000%, 12/01/27 - FSA Insured
500 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 543,340
5.000%, 12/01/21
1,355 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,446,584
5.000%, 12/01/27
45
NXI
Nuveen Ohio Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,550 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA $ 2,668,907
Series 2007, 5.000%, 12/01/34 - FSA Insured (UB)
430 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 Aaa 445,351
Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC Insured
1,005 Marysville Exempted School District, Union County, Ohio, General 12/15 at 100.00 AAA 1,062,607
Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured
200 Mason City School District, Counties of Warren and Butler, Ohio, 6/17 at 100.00 Aa1 209,952
General Obligation Bonds, Series 2007, 5.000%, 12/01/31
2,000 Ohio, General Obligation Higher Education Capital Facilities 2/11 at 100.00 AA+ 2,103,660
Bonds, Series 2001A, 5.000%, 2/01/20
2,415 Troy City School District, Miami County, Ohio, General Obligation 12/14 at 100.00 Aaa 2,511,866
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 1,636,025
Limited Tax General Obligation Refunding Bonds, Series 2001,
5.500%, 12/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,840 Total Tax Obligation/General 14,344,094
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.3% (10.1% OF TOTAL INVESTMENTS)
2,000 Franklin County, Ohio, Excise Tax and Lease Revenue Anticipation 12/15 at 100.00 AAA 2,068,620
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 1,476,977
1,000 5.000%, 12/01/33 - FGIC Insured 6/14 at 100.00 Aaa 1,012,650
2,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 Aaa 2,068,420
Series 2006, 5.000%, 12/01/32 - AMBAC Insured
345 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 362,084
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 1,060,120
Correctional Building Fund Project, Series 2005A,
5.000%, 4/01/23 - FSA Insured
950 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue No Opt. Call AAA 218,614
Bonds, Series 2005A, 0.000%, 7/01/35 - AMBAC Insured
1,400 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 1,504,846
Loan Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
10,110 Total Tax Obligation/Limited 9,772,331
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.3% (2.2% OF TOTAL INVESTMENTS)
2,000 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA 2,104,300
5.500%, 2/15/26
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 48.2% (31.8% OF TOTAL INVESTMENTS) (4)
1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 (4) 1,072,420
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25 (Pre-refunded 12/01/10)
1,700 Cincinnati, Ohio, Water System Revenue Bonds, Series 2001, 6/11 at 100.00 AA+ (4) 1,844,194
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 1,159,410
Obligation Bonds, Series 2004, 5.500%, 12/01/15
(Pre-refunded 12/01/14) - FSA Insured
1,470 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 101.00 BBB (4) 1,519,436
Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19
(Pre-refunded 10/01/08)
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,000 Lakewood City School District, Cuyahoga County, Ohio, General 12/14 at 100.00 AAA $ 1,142,690
Obligation Bonds, Series 2004, 5.250%, 12/01/16
(Pre-refunded 12/01/14) - FSA Insured
2,000 Lakota Local School District, Butler County, Ohio, Unlimited Tax 6/11 at 100.00 Aaa 2,169,640
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 996,823
Series 2001, 5.500%, 12/01/18 (Pre-refunded 12/01/10) -
AMBAC Insured
1,000 Medina City School District, Medina County, Ohio, Unlimited Tax 12/09 at 100.00 Aaa 1,056,050
General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 (Pre-refunded 12/01/09) -
FGIC Insured
1,000 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,121,440
Obligation Bonds, Series 2004, 5.000%, 12/01/25
(Pre-refunded 12/01/13) - FGIC Insured
1,000 Nordonia Hills Local School District, Ohio, General Obligation 12/10 at 101.00 AAA 1,094,050
Bonds, Series 2000, 5.450%, 12/01/25 (Pre-refunded 12/01/10) -
AMBAC Insured
2,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/11 at 101.00 AA (4) 2,211,440
Denison University, Series 2001, 5.200%, 11/01/26
(Pre-refunded 11/01/11)
1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/10 at 101.00 AAA 1,095,410
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 Counties, 6/14 at 100.00 Aaa 2,158,685
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) 2,324,633
2,000 5.375%, 11/01/29 (Pre-refunded 11/01/08) 11/08 at 101.00 N/R (4) 2,068,180
2,000 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 2,135,140
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 A- (4) 741,894
Bonds, MedCentral Health System Obligated Group, Series 2000B,
6.375%, 11/15/30 (Pre-refunded 11/15/10)
1,275 Sycamore Community School District, Hamilton County, Ohio, 12/09 at 101.00 AAA 1,353,030
Unlimited Tax General Obligation School Improvement Bonds,
Series 1999, 5.000%, 12/01/23 (Pre-refunded 12/01/09) -
MBIA Insured
2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 A+ (4) 3,037,874
Series 2002F, 5.375%, 6/01/19 (Pre-refunded 6/01/12)
400 Westerville City School District, Franklin and Delaware Counties, 6/11 at 100.00 AAA 432,340
Ohio, Various Purpose General Obligation Bonds, Series 2001,
5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,305 Total U.S. Guaranteed 30,734,779
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.9% (5.8% OF TOTAL INVESTMENTS)
1,440 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 Aaa 1,558,138
Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 -
MBIA Insured
2,000 Ohio Air Quality Development Authority, Revenue Refunding Bonds, 5/09 at 101.00 AAA 2,048,400
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 1,053,930
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 Revenue 9/08 at 102.00 N/R 981,660
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,440 Total Utilities 5,642,128
------------------------------------------------------------------------------------------------------------------------------------
47
NXI
Nuveen Ohio Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.2% (2.8% OF TOTAL INVESTMENTS)
$ 175 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 Aaa $ 181,528
Series 2007, 5.000%, 12/01/32 - AMBAC Insured
2,375 Ohio Water Development Authority, Revenue Bonds, Water 12/13 at 100.00 Aaa 2,483,393
Development Community Assistance Program, Series 2003,
5.000%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,550 Total Water and Sewer 2,664,921
------------------------------------------------------------------------------------------------------------------------------------
$ 93,175 Total Investments (cost $93,257,140) - 151.6% 96,613,804
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.7)% (1,700,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.3)% (183,930)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.6)% (5) (31,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 63,729,874
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT JANUARY 31, 2008:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley $1,100,000 Pay 3-Month USD-LIBOR 5.227% Semi-Annually 2/21/08 2/21/30 $ 71,952
Royal Bank
of Canada 1,500,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 124,059
------------------------------------------------------------------------------------------------------------------------------------
$196,011
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate).
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The AAA ratings shown in the Portfolio of Investments
reflect the AAA ratings on certain bonds insured by AMBAC,
FGIC or MBIA as of January 31, 2008. Subsequent to January
31, 2008, at least one rating agency reduced the rating for
AMBAC-insured bonds to AA and FGIC-insured bonds experienced
further downgrades such that they no longer carry AAA
ratings which had the effect of reducing the rating of many
(if not all) of the bonds insured by those particular
insurers. One or more rating agencies have placed each of
these insurers on "negative credit watch", which may presage
one or more rating reductions for such insurer or insurers
in the future. If one or more insurers' ratings are reduced
below AAA by these rating agencies, it would likely reduce
the effective rating of many of the bonds insured by that
insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
total investments is (32.1)%.
(6) 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.
48
NBJ
Nuveen Ohio Dividend Advantage Municipal Fund 2
Portfolio of INVESTMENTS
January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.0% (2.6% OF TOTAL INVESTMENTS)
$ 1,000 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB $ 965,770
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2, 5.875%, 6/01/47
895 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 869,627
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
1,895 Total Consumer Staples 1,835,397
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.0% (9.0% OF TOTAL INVESTMENTS)
1,345 Bowling Green State University, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 1,456,837
Series 2003, 5.250%, 6/01/18 - AMBAC Insured
450 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 453,209
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 1,034,950
Bonds, University of Dayton, 2006 Project, Series 2006,
5.000%, 12/01/30 - AMBAC Insured
1,050 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa2 1,096,484
Wittenberg University, Series 2001, 5.500%, 12/01/15
1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 Aaa 1,045,790
Series 2003C, 5.000%, 6/01/22 - FGIC Insured
1,245 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,329,710
Series 2004D, 5.000%, 6/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,090 Total Education and Civic Organizations 6,416,980
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 23.5% (15.1% OF TOTAL INVESTMENTS)
370 Akron, Bath and Copley Joint Township Hospital District, Ohio, No Opt. Call Baa1 375,088
Hospital Facilities Revenue Bonds, Summa Health System,
Series 1998A, 5.000%, 11/15/08
1,600 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 Aaa 1,603,648
Cincinnati Children's Medical Center Project, Series 2006K,
5.000%, 5/15/31 - FGIC Insured
1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 1,042,300
Regional Medical Center, Series 2002A, 5.500%, 8/15/22
1,850 Lorain County, Ohio, Hospital Revenue Refunding and Improvement 10/11 at 101.00 AA- 1,925,184
Bonds, Catholic Healthcare Partners, Series 2001A,
5.400%, 10/01/21
225 Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, 5/16 at 100.00 A- 232,477
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 703,115
Initiatives, Series 2004A, 5.000%, 5/01/30
665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 692,411
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- 343,098
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 3,822,780
Union Hospital Project, Series 2001, 5.750%, 10/01/26 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
10,430 Total Health Care 10,740,101
------------------------------------------------------------------------------------------------------------------------------------
49
NBJ
Nuveen Ohio Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.1% (4.0% OF TOTAL INVESTMENTS)
$ 1,000 Franklin County, Ohio, GNMA Collateralized Multifamily Housing 5/12 at 102.00 Aaa $ 1,040,460
Mortgage Revenue Bonds, Agler Project, Series 2002A,
5.550%, 5/20/22 (Alternative Minimum Tax)
250 Montgomery County, Ohio, GNMA Guaranteed Multifamily 10/18 at 101.00 Aaa 252,885
Housing Revenue Bonds, Canterbury Court Project, Series 2007,
5.500%, 10/20/42 (Alternative Minimum Tax)
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 N/R 254,530
250 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 232,500
300 Ohio Housing Finance Agency, Multifamily Housing Revenue No Opt. Call Aaa 293,673
Bonds, Warren Heights Project, GNMA Collateralized, Series 2007,
5.100%, 11/20/48 (Alternative Minimum Tax)
750 Summit County Port Authority, Ohio, Multifamily Housing Revenue 9/17 at 102.00 AAA 732,713
Bonds, Callis Tower Apartments Project, Series 2007,
5.250%, 9/20/47 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,800 Total Housing/Multifamily 2,806,761
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.1% (1.4% OF TOTAL INVESTMENTS)
1,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 982,960
Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 9.1% (5.8% OF TOTAL INVESTMENTS)
3,000 Ohio State Sewage and Solid Waste Disposal Facilities, Revenue 11/11 at 100.00 A 3,067,020
Bonds, Anheuser-Busch Project, Series 2001, 5.500%, 11/01/35
(Alternative Minimum Tax)
640 Ohio State Water Development Authority, Solid Waste Revenue 7/12 at 100.00 B+ 603,443
Bonds, Allied Waste Industries, Inc., Series 2007A,
5.150%, 7/15/15 (Alternative Minimum Tax)
500 Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue 7/17 at 102.00 N/R 475,290
Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,140 Total Industrials 4,145,753
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.5% (1.6% OF TOTAL INVESTMENTS)
1,225 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, 1/17 at 100.00 BBB 1,129,303
Life Enriching Communities Project, Series 2006A, 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 38.6% (24.9% OF TOTAL INVESTMENTS)
1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation 11/11 at 101.00 Aaa 1,749,419
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 1,103,620
1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,073,860
300 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 115,344
Obligation Bonds, Series 2006, 0.000%, 12/01/27 - FSA Insured
400 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 434,672
5.000%, 12/01/21
1,000 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,067,590
5.000%, 12/01/27
1,905 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA 1,993,830
Series 2007, 5.000%, 12/01/34 - FSA Insured (UB)
345 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 Aaa 357,317
Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC Insured
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,420 Lorain County, Ohio, Limited Tax General Obligation Justice Center 12/12 at 100.00 Aaa $ 2,613,261
Bonds, Series 2002, 5.500%, 12/01/22 - FGIC Insured
1,005 Marysville Exempted School District, Union County, Ohio, General 12/15 at 100.00 AAA 1,062,607
Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured
200 Mason City School District, Counties of Warren and Butler, Ohio, 6/17 at 100.00 Aa1 209,952
General Obligation Bonds, Series 2007, 5.000%, 12/01/31
2,665 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 Aaa 2,768,935
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 2,039,027
5.000%, 12/01/25 - FGIC Insured
1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 Aaa 1,071,170
5.500%, 12/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,900 Total Tax Obligation/General 17,660,604
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 18.7% (12.1% OF TOTAL INVESTMENTS)
725 Hamilton County Convention Facilities Authority, Ohio, First Lien 6/14 at 100.00 Aaa 734,171
Revenue Bonds, Series 2004, 5.000%, 12/01/33 - FGIC Insured
1,400 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 Aaa 1,447,894
Series 2006, 5.000%, 12/01/32 - AMBAC Insured
250 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 262,380
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 1,060,120
Correctional Building Fund Project, Series 2005A,
5.000%, 4/01/23 - FSA Insured
1,500 Ohio, State Appropriation Lease Bonds, Higher Education Capital No Opt. Call AAA 1,591,905
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 1,186,641
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+ 1,063,300
Revenue Refunding Bonds, Series 2002E, 5.750%, 7/01/24
620 Puerto Rico Infrastructure Financing Authority, Special No Opt. Call AAA 142,674
Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/35 -
AMBAC Insured
1,000 Summit County Port Authority, Ohio, Revenue Bonds, 12/11 at 100.00 AAA 1,056,770
Civic Theatre Project, Series 2001, 5.500%, 12/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,590 Total Tax Obligation/Limited 8,545,855
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.3% (17.0% OF TOTAL INVESTMENTS) (4)
2,345 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 2,495,690
5.250%, 1/01/18 (Pre-refunded 1/01/10) - FSA Insured
1,605 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,860,853
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 1,095,930
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 Revenue 10/08 at 101.00 BBB (4) 1,033,960
Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23
(Pre-refunded 10/01/08)
2,250 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 2,496,510
Obligation Bonds, Series 2001, 5.500%, 12/01/21
(Pre-refunded 12/01/11) - FSA Insured
1,000 Marysville Exempted Village School District, Ohio, Certificates 6/15 at 100.00 AAA 1,144,040
of Participation, School Facilities Project, Series 2005,
5.250%, 12/01/21 (Pre-refunded 6/01/15) - MBIA Insured
51
NBJ
Nuveen Ohio Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,050 Olentangy Local School District, Delaware and Franklin Counties, 6/14 at 100.00 Aaa $ 1,208,046
Ohio, General Obligation Bonds, Series 2004A, 5.500%, 12/01/15
(Pre-refunded 6/01/14) - FGIC Insured
635 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- (4) 708,425
Bonds, MedCentral Health System Obligated Group,
Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
10,885 Total U.S. Guaranteed 12,043,454
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.1% (5.9% OF TOTAL INVESTMENTS)
2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,560,500
Bonds, Ohio Power Company Project, Series 1999C,
5.150%, 5/01/26 - AMBAC Insured
595 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 630,694
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 Revenue 9/08 at 102.00 N/R 981,660
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,095 Total Utilities 4,172,854
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.9% (0.6% OF TOTAL INVESTMENTS)
130 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 Aaa 134,849
Series 2007, 5.000%, 12/01/32 - AMBAC Insured
270 Ohio Water Development Authority, Revenue Bonds, Fresh Water 12/11 at 100.00 AAA 287,439
Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
400 Total Water and Sewer 422,288
------------------------------------------------------------------------------------------------------------------------------------
$ 68,450 Total Investments (cost $69,117,068) - 154.9% 70,902,310
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.8)% (1,270,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 139,847
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (5) (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 45,772,157
====================================================================================================================
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The AAA ratings shown in the Portfolio of Investments
reflect the AAA ratings on certain bonds insured by AMBAC,
FGIC or MBIA as of January 31, 2008. Subsequent to January
31, 2008, at least one rating agency reduced the rating for
AMBAC-insured bonds to AA and FGIC-insured bonds experienced
further downgrades such that they no longer carry AAA
ratings which had the effect of reducing the rating of many
(if not all) of the bonds insured by those particular
insurers. One or more rating agencies have placed each of
these insurers on "negative credit watch", which may presage
one or more rating reductions for such insurer or insurers
in the future. If one or more insurers' ratings are reduced
below AAA by these rating agencies, it would likely reduce
the effective rating of many of the bonds insured by that
insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
total investments is (33.8)%.
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.
52
NVJ
Nuveen Ohio Dividend Advantage Municipal Fund 3
Portfolio of INVESTMENTS
January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.3% (2.8% OF TOTAL INVESTMENTS)
$ 1,000 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB $ 965,770
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2, 5.875%, 6/01/47
440 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 427,526
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
1,440 Total Consumer Staples 1,393,296
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.4% (6.2% OF TOTAL INVESTMENTS)
350 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 352,496
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 1,205,843
Ohio Northern University, Series 2002, 5.750%, 5/01/16
500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 500,445
Wittenberg University, Series 2005, 5.000%, 12/01/24
1,000 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 AAA 1,034,950
Bonds, University of Dayton, 2006 Project, Series 2006,
5.000%, 12/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
2,975 Total Education and Civic Organizations 3,093,734
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.4% (8.7% OF TOTAL INVESTMENTS)
185 Akron, Bath and Copley Joint Township Hospital District, Ohio, No Opt. Call Baa1 187,544
Hospital Facilities Revenue Bonds, Summa Health System,
Series 1998A, 5.000%, 11/15/08
1,100 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 Aaa 1,102,508
Cincinnati Children's Medical Center Project, Series 2006K,
5.000%, 5/15/31 - FGIC Insured
1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 1,824,025
Regional Medical Center, Series 2002A, 5.500%, 8/15/22
160 Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, 5/16 at 100.00 A- 165,317
Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21
500 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 502,225
Initiatives, Series 2004A, 5.000%, 5/01/30
335 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 348,809
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- 245,070
Health System Group, Series 2006, 5.250%, 11/15/36
------------------------------------------------------------------------------------------------------------------------------------
4,280 Total Health Care 4,375,498
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.5% (2.9% OF TOTAL INVESTMENTS)
200 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 202,308
Revenue Bonds, Canterbury Court Project, Series 2007,
5.500%, 10/20/42 (Alternative Minimum Tax)
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 N/R 152,718
200 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 186,000
53
NVJ
Nuveen Ohio Dividend Advantage Municipal Fund 3 (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 200 Ohio Housing Finance Agency, Multifamily Housing Revenue Bonds, No Opt. Call Aaa $ 195,782
Warren Heights Project, GNMA Collateralized, Series 2007,
5.100%, 11/20/48 (Alternative Minimum Tax)
750 Summit County Port Authority, Ohio, Multifamily Housing Revenue 9/17 at 102.00 AAA 732,713
Bonds, Callis Tower Apartments Project, Series 2007,
5.250%, 9/20/47 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total Housing/Multifamily 1,469,521
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9% (2.6% OF TOTAL INVESTMENTS)
160 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 168,454
Program Residential Mortgage Revenue Bonds, Series 2000C,
6.050%, 3/01/32 (Alternative Minimum Tax)
540 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 569,408
Program Residential Mortgage Revenue Bonds, Series 2000D,
5.450%, 9/01/31 (Alternative Minimum Tax)
45 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 45,635
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 491,480
Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,245 Total Housing/Single Family 1,274,977
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.5% (1.7% OF TOTAL INVESTMENTS)
480 Ohio State Water Development Authority, Solid Waste Revenue 7/12 at 100.00 B+ 452,582
Bonds, Allied Waste Industries, Inc., Series 2007A,
5.150%, 7/15/15 (Alternative Minimum Tax)
400 Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue 7/17 at 102.00 N/R 380,232
Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
880 Total Industrials 832,814
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.5% (1.7% OF TOTAL INVESTMENTS)
900 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, 1/17 at 100.00 BBB 829,692
Life Enriching Communities Project, Series 2006A,
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 27.3% (17.9% OF TOTAL INVESTMENTS)
1,815 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 697,831
Obligation Bonds, Series 2006, 0.000%, 12/01/27 - FSA Insured
300 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 326,004
5.000%, 12/01/21
1,000 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,067,590
5.000%, 12/01/27
1,275 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA 1,334,453
Series 2007, 5.000%, 12/01/34 - FSA Insured (UB)
1,000 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,053,930
Obligation Bonds, Series 2003, 5.000%, 12/01/22 - MBIA Insured
200 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 Aaa 210,872
Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC Insured
1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 Aaa 1,326,655
5.125%, 12/01/26 - AMBAC Insured
500 Marysville Exempted School District, Union County, Ohio, General 12/15 at 100.00 AAA 528,660
Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured
100 Mason City School District, Counties of Warren and Butler, Ohio, 6/17 at 100.00 Aa1 104,976
General Obligation Bonds, Series 2007, 5.000%, 12/01/31
1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,061,950
Bonds, Series 2001B, 5.000%, 9/15/20
1,130 Solon, Ohio, General Obligation Refunding and Improvement 12/12 at 100.00 AA+ 1,214,863
Bonds, Series 2002, 5.000%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
9,590 Total Tax Obligation/General 8,927,784
------------------------------------------------------------------------------------------------------------------------------------
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.1% (15.1% OF TOTAL INVESTMENTS)
$ 600 Hamilton County Convention Facilities Authority, Ohio, First Lien 6/14 at 100.00 Aaa $ 607,590
Revenue Bonds, Series 2004, 5.000%, 12/01/33 - FGIC Insured
1,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 Aaa 1,034,210
Series 2006, 5.000%, 12/01/32 - AMBAC Insured
1,000 Midview Local School District, Lorain County, Ohio, Certificates 5/13 at 100.00 A 1,007,500
of Participation, Series 2003, 5.000%, 11/01/30
1,250 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,362,538
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 209,904
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
1,000 Ohio, State Appropriation Lease Bonds, Higher Education Capital No Opt. Call AAA 1,061,270
Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured
2,000 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call AAA 2,280,000
Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,050 Total Tax Obligation/Limited 7,563,012
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.4% (3.6% OF TOTAL INVESTMENTS)
1,550 Ohio Turnpike Commission, Revenue Refunding Bonds, No Opt. Call Aaa 1,782,299
Series 1998A, 5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 50.1% (32.8% OF TOTAL INVESTMENTS) (4)
1,000 Canal Winchester Local School District, Franklin and Fairfield 12/08 at 102.00 Aaa 1,046,480
Counties, Ohio, Unlimited Tax General Obligation School
Improvement Bonds, Series 1998, 5.300%, 12/01/25
(Pre-refunded 12/01/08) - FGIC Insured
725 Eaton City School District, Preble County, Ohio, General Obligation 12/12 at 101.00 Aaa 832,938
Bonds, Series 2002, 5.750%, 12/01/21 (Pre-refunded 12/01/12) -
FGIC Insured
1,300 Granville Exempt Village School District, Ohio, General Obligation 12/11 at 100.00 Aa2 (4) 1,442,428
Bonds, Series 2001, 5.500%, 12/01/28 (Pre-refunded 12/01/11)
500 Hamilton County, Ohio, Healthcare Facilities Improvement Revenue 10/08 at 101.00 BBB (4) 516,815
Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19
(Pre-refunded 10/01/08)
1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 Aa2 (4) 1,123,160
5.375%, 12/01/22 (Pre-refunded 12/01/12)
1,190 Miami East Local School District, Miami County, Ohio, General 6/12 at 100.00 AAA 1,313,272
Obligation Bonds, Series 2002, 5.125%, 12/01/29
(Pre-refunded 6/01/12) - FSA Insured
1,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 1,101,100
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) 1,102,260
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) 2,247,660
Case Western Reserve University, Series 2002B,
5.500%, 10/01/22 (Pre-refunded 10/01/12)
1,000 Ohio State University, General Receipts Bonds, Series 1999A, 12/09 at 101.00 AA (4) 1,075,510
5.800%, 12/01/29 (Pre-refunded 12/01/09)
1,000 Olentangy Local School District, Delaware and Franklin Counties, 6/14 at 100.00 Aaa 1,136,150
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, Hospital 11/08 at 101.00 N/R (4) 1,034,090
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 Counties, 12/11 at 100.00 Aaa 1,688,040
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 Improvement 11/10 at 101.00 A- (4) 741,894
Bonds, MedCentral Health System Obligated Group, Series 2000B,
6.375%, 11/15/30 (Pre-refunded 11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
14,915 Total U.S. Guaranteed 16,401,797
------------------------------------------------------------------------------------------------------------------------------------
55
NVJ
Nuveen Ohio Dividend Advantage Municipal Fund 3 (continued)
Portfolio of INVESTMENTS January 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.9% (3.2% OF TOTAL INVESTMENTS)
$ 1,500 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 Aaa $ 1,623,060
Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.3% (0.8% OF TOTAL INVESTMENTS)
130 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 Aaa 134,849
Series 2007, 5.000%, 12/01/32 - AMBAC Insured
270 Ohio Water Development Authority, Revenue Bonds, Fresh Water 12/11 at 100.00 AAA 287,437
Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
400 Total Water and Sewer 422,286
------------------------------------------------------------------------------------------------------------------------------------
$ 48,225 Total Investments (cost $47,739,410) - 152.6% 49,989,770
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.6)% (850,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.4% 119,455
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.4)% (5) (16,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 32,759,225
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT JANUARY 31, 2008:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Royal Bank
of Canada $1,500,000 Pay SIFM 4.335% Quarterly 8/06/08 8/06/37 $124,060
====================================================================================================================================
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The AAA ratings shown in the Portfolio of Investments
reflect the AAA ratings on certain bonds insured by AMBAC,
FGIC or MBIA as of January 31, 2008. Subsequent to January
31, 2008, at least one rating agency reduced the rating for
AMBAC-insured bonds to AA and FGIC-insured bonds experienced
further downgrades such that they no longer carry AAA
ratings which had the effect of reducing the rating of many
(if not all) of the bonds insured by those particular
insurers. One or more rating agencies have placed each of
these insurers on "negative credit watch", which may presage
one or more rating reductions for such insurer or insurers
in the future. If one or more insurers' ratings are reduced
below AAA by these rating agencies, it would likely reduce
the effective rating of many of the bonds insured by that
insurer or insurers.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
total investments is (33.0)%.
(6) 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.
56
Statement of
ASSETS & LIABILITIES
January 31, 2008 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $256,010,090,
$166,641,159 and $44,980,355, respectively) $267,616,251 $171,739,170 $46,152,912
Cash 774,365 1,205,196 --
Unrealized appreciation on forward swaps -- 148,628 --
Receivables:
Interest 3,096,715 2,267,852 561,219
Investments sold 3,151,174 3,355,038 550,788
Other assets 24,394 7,372 7,888
------------------------------------------------------------------------------------------------------------------------------------
Total assets 274,662,899 178,723,256 47,272,807
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 93,662
Floating rate obligations 3,870,000 8,105,000 715,000
Accrued expenses:
Management fees 143,979 91,313 17,130
Other 67,472 33,249 9,550
Common share dividends payable 572,120 368,166 115,928
Preferred share dividends payable 67,384 34,074 1,419
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 4,720,955 8,631,802 952,689
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $175,941,944 $114,091,454 $30,320,118
====================================================================================================================================
Common shares outstanding 11,714,953 7,751,048 2,066,986
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.02 $ 14.72 $ 14.67
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 117,150 $ 77,510 $ 20,670
Paid-in surplus 163,945,766 108,391,489 29,276,260
Undistributed (Over-distribution of) net investment income (32,076) (148,267) (52,527)
Accumulated net realized gain (loss) from investments and
derivative transactions 304,943 524,083 (96,842)
Net unrealized appreciation (depreciation) of investments and
derivative transactions 11,606,161 5,246,639 1,172,557
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $175,941,944 $114,091,454 $30,320,118
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
57
Statement of
ASSETS & LIABILITIES (continued)
January 31, 2008 (Unaudited)
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $228,866,365, $93,257,140,
$69,117,068 and $47,739,410, respectively) $236,678,204 $96,613,804 $70,902,310 $49,989,770
Cash -- -- -- --
Unrealized appreciation on forward swaps -- 196,011 -- 124,060
Receivables:
Interest 2,673,579 1,148,057 762,764 602,497
Investments sold -- -- -- --
Other assets 3,178 3,003 7,958 2,861
------------------------------------------------------------------------------------------------------------------------------------
Total assets 239,354,961 97,960,875 71,673,032 50,719,188
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 2,263,938 1,267,158 403,630 469,020
Floating rate obligations 4,435,000 1,700,000 1,270,000 850,000
Accrued expenses:
Management fees 123,941 34,933 25,775 16,057
Other 33,991 10,247 7,258 6,018
Common share dividends payable 455,098 215,913 157,098 116,185
Preferred share dividends payable 45,497 2,750 37,114 2,683
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 7,357,465 3,231,001 1,900,875 1,459,963
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $154,997,496 $63,729,874 $45,772,157 $32,759,225
====================================================================================================================================
Common shares outstanding 9,746,032 4,244,093 3,121,477 2,158,458
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.90 $ 15.02 $ 14.66 $ 15.18
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 97,460 $ 42,441 $ 31,215 $ 21,585
Paid-in surplus 147,811,741 60,269,433 44,255,705 30,541,089
Undistributed (Over-distribution of) net investment income (221,818) 4,949 (131,522) (25,081)
Accumulated net realized gain (loss) from investments and
derivative transactions (501,726) (139,624) (168,483) (152,788)
Net unrealized appreciation (depreciation) of investments and
derivative transactions 7,811,839 3,552,675 1,785,242 2,374,420
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $154,997,496 $63,729,874 $45,772,157 $32,759,225
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
58
Statement of
OPERATIONS
Six Months Ended January 31, 2008 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,590,552 $ 4,295,669 $1,136,204
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 847,877 537,669 147,460
Preferred shares - auction fees 118,467 70,575 20,165
Preferred shares - dividend disbursing agent fees 10,041 10,046 5,034
Shareholders' servicing agent fees and expenses 10,536 7,895 364
Interest expense on floating rate obligations 69,062 145,491 12,759
Custodian's fees and expenses 36,758 19,490 8,151
Directors'/Trustees' fees and expenses 3,034 2,379 560
Professional fees 10,709 8,330 3,952
Shareholders' reports - printing and mailing expenses 24,430 18,794 6,915
Stock exchange listing fees 4,856 4,860 88
Investor relations expense 13,148 8,550 2,645
Other expenses 14,710 8,216 6,345
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,163,628 842,295 214,438
Custodian fee credit (7,311) (4,444) (3,159)
Expense reimbursement -- -- (50,339)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,156,317 837,851 160,940
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,434,235 3,457,818 975,264
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 644,897 597,809 163,910
Forward swaps -- (73,636) --
Futures -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments 1,625,138 500,671 (92,244)
Forward swaps -- 284,992 --
Futures -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 2,270,035 1,309,836 71,666
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,384,898) (891,287) (244,166)
From accumulated net realized gains (431,262) (187,020) (48,339)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,816,160) (1,078,307) (292,505)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 5,888,110 $ 3,689,347 $ 754,425
====================================================================================================================================
See accompanying notes to financial statements.
59
Statement of
OPERATIONS (continued)
Six Months Ended January 31, 2008 (Unaudited)
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,775,657 $2,357,483 $1,714,799 $1,212,945
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 729,323 300,268 221,702 155,439
Preferred shares - auction fees 97,042 39,069 30,246 20,794
Preferred shares - dividend disbursing agent fees 15,050 5,020 5,034 5,020
Shareholders' servicing agent fees and expenses 11,346 493 546 409
Interest expense on floating rate obligations 190,484 75,339 56,333 38,653
Custodian's fees and expenses 61,406 12,307 9,883 9,522
Directors'/Trustees' fees and expenses 2,840 1,258 516 639
Professional fees 10,199 4,619 4,405 3,869
Shareholders' reports - printing and mailing expenses 24,955 14,176 9,759 6,668
Stock exchange listing fees 4,900 182 134 92
Investor relations expense 13,014 4,295 4,598 3,272
Other expenses 10,532 7,221 5,767 5,339
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,171,091 464,247 348,923 249,716
Custodian fee credit (7,399) (4,026) (3,960) (4,407)
Expense reimbursement -- (94,693) (75,682) (61,275)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,163,692 365,528 269,281 184,034
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,611,965 1,991,955 1,445,518 1,028,911
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (224,751) 59,938 (122,796) (145,048)
Forward swaps (113,636) (40,909) (45,455) --
Futures -- -- -- 26,355
Change in net unrealized appreciation (depreciation) of:
Investments 1,963,141 718,068 448,639 698,047
Forward swaps 141,307 309,057 56,523 124,060
Futures -- -- -- (11,702)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 1,766,061 1,046,154 336,911 691,712
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,236,265) (488,372) (437,183) (241,232)
From accumulated net realized gains (235,804) (133,387) (67,354) (45,494)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,472,069) (621,759) (504,537) (286,726)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 4,905,957 $2,416,350 $1,277,892 $1,433,897
====================================================================================================================================
See accompanying notes to financial statements.
60
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
1/31/08 7/31/07 1/31/08 7/31/07 1/31/08 7/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,434,235 $ 11,023,625 $3,457,818 $ 6,952,299 $ 975,264 $ 1,965,259
Net realized gain (loss) from:
Investments 644,897 2,021,802 597,809 1,318,366 163,910 397,159
Forward swaps -- -- (73,636) -- -- (50,922)
Futures -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation) of:
Investments 1,625,138 (3,145,750) 500,671 (2,008,515) (92,244) (641,385)
Forward swaps -- -- 284,992 (136,364) -- 23,573
Futures -- -- -- -- -- --
Distributions to
Preferred Shareholders:
From net investment income (1,384,898) (2,968,560) (891,287) (1,756,872) (244,166) (505,441)
From accumulated net
realized gains (431,262) (232,090) (187,020) (174,588) (48,339) (4,070)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 5,888,110 6,699,027 3,689,347 4,194,326 754,425 1,184,173
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,995,973) (8,329,332) (2,581,101) (5,530,371) (731,710) (1,592,223)
From accumulated net
realized gains (1,193,754) (859,878) (574,353) (717,747) (150,270) (16,105)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions
to Common shareholders (5,189,727) (9,189,210) (3,155,454) (6,248,118) (881,980) (1,608,328)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- 8,679 40,054
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- -- -- 8,679 40,054
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 698,383 (2,490,183) 533,893 (2,053,792) (118,876) (384,101)
Net assets applicable to Common
shares at the beginning
of period 175,243,561 177,733,744 113,557,561 115,611,353 30,438,994 30,823,095
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $175,941,944 $175,243,561 $114,091,454 $113,557,561 $30,320,118 $30,438,994
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ (32,076) $ (85,440) $ (148,267) $ (133,697) $ (52,527) $ (51,915)
====================================================================================================================================
See accompanying notes to financial statements.
61
Statement of
CHANGES in NET ASSETS (continued) (Unaudited)
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
1/31/08 7/31/07 1/31/08 7/31/07 1/31/08 7/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,611,965 $ 9,361,633 $ 1,991,955 $ 3,996,849 $ 1,445,518 $ 2,885,530
Net realized gain (loss) from:
Investments (224,751) 1,187,125 59,938 458,042 (122,796) 356,781
Forward swaps (113,636) -- (40,909) -- (45,455) --
Futures -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation) of:
Investments 1,963,141 (2,229,443) 718,068 (728,528) 448,639 (612,925)
Forward swaps 141,307 (141,307) 309,057 (113,046) 56,523 (56,523)
Futures -- -- -- -- -- --
Distributions to
Preferred Shareholders:
From net investment income (1,236,265) (2,526,574) (488,372) (1,023,335) (437,183) (788,031)
From accumulated net
realized gains (235,804) (109,526) (133,387) (34,050) (67,354) (39,456)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 4,905,957 5,541,908 2,416,350 2,555,932 1,277,892 1,745,376
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,303,905) (7,105,832) (1,400,552) (3,063,555) (1,014,479) (2,156,940)
From accumulated net realized gains (656,883) (409,333) (399,794) (131,955) (185,104) (137,033)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from distributions
to Common shareholders (3,960,788) (7,515,165) (1,800,346) (3,195,510) (1,199,583) (2,293,973)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- 17,968 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- -- 17,968 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 945,169 (1,973,257) 616,004 (621,610) 78,309 (548,597)
Net assets applicable to Common
shares at the beginning
of period 154,052,327 156,025,584 63,113,870 63,735,480 45,693,848 46,242,445
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $154,997,496 $154,052,327 $63,729,874 $63,113,870 $45,772,157 $45,693,848
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ (221,818) $ (293,613) $ 4,949 $ (98,082) $ (131,522) $ (125,378)
====================================================================================================================================
See accompanying notes to financial statements.
62
DIVIDEND ADVANTAGE 3 (NVJ)
----------------------------
SIX MONTHS
ENDED YEAR ENDED
1/31/08 7/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,028,911 $ 2,070,882
Net realized gain (loss) from:
Investments (145,048) 233,291
Forward swaps -- (32,854)
Futures 26,355 34,159
Change in net unrealized appreciation (depreciation) of:
Investments 698,047 (450,205)
Forward swaps 124,060 15,013
Futures (11,702) (11,622)
Distributions to Preferred Shareholders:
From net investment income (241,232) (530,895)
From accumulated net realized gains (45,494) (21,569)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 1,433,897 1,306,200
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (736,034) (1,545,319)
From accumulated net realized gains (132,313) (76,833)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (868,347) (1,622,152)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 3,269
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 3,269
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 565,550 (312,683)
Net assets applicable to Common
shares at the beginning of period 32,193,675 32,506,358
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $32,759,225 $32,193,675
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ (25,081) $ (76,726)
====================================================================================================================================
See accompanying notes to financial statements.
63
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. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. Futures
contracts are valued using the closing settlement price or, in the absence of
such a price, at the mean of the bid and asked prices. If the pricing service is
unable to supply a price for a municipal bond, forward swap or futures contract,
each Fund may use market quotes provided by major broker/dealers in such
investments. If it is determined that the market price for an investment or
derivative instrument is unavailable or inappropriate, the Board of
Directors/Trustees of the Funds, or its designee, may establish fair value in
accordance with procedures established in good faith by the Board of
Directors/Trustees. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates 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, 2008, 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.
64
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.
Effective January 31, 2008, the Funds adopted Financial Accounting Standards
Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income
Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions
should be recognized, measured, presented and disclosed in the financial
statements. FIN 48 requires the affirmative evaluation of tax positions taken or
expected to be taken in the course of preparing the Funds' tax returns to
determine whether it is "more-likely-than-not," (i.e. greater than 50-percent)
of being sustained by the applicable tax authority. Tax positions not deemed to
meet the more-likely-than-not threshold may result in a tax benefit or expense
in the current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the status of limitations, for all major jurisdictions,
which includes federal and certain states. Open tax years are those that are
open for examination by taxing authorities (i.e. the last four tax year ends and
the interim tax period since than). The Funds have no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the six months ended January 31, 2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders 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
================================================================================
65
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
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.
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"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") with a broker-dealer by which a Fund agrees to reimburse the
broker-dealer, in certain circumstances, for the difference between the
liquidation value of the fixed-rate bond held by the trust and the liquidation
value of the floating rate certificates, as well as any shortfalls in interest
cash flows. The inverse floater held by a Fund gives the Fund the right (1) to
cause the holders of the floating rate certificates to tender their notes at
par, and (2) to have the broker transfer the fixed-rate bond held by the trust
to the Fund, thereby collapsing the trust. An investment in an
externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater, recourse trust or credit recovery swap 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 "Interest
expense on floating rate obligations" in the Statement of Operations.
During the six months ended January 31, 2008, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
66
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended January 31, 2008, were as follows:
MICHIGAN MICHIGAN MICHIGAN OHIO OHIO OHIO OHIO
QUALITY PREMIUM DIVIDEND QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME INCOME ADVANTAGE INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUM) (NMP) (NZW) (NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------
Average floating
rate obligations $3,870,000 $8,105,000 $715,000 $10,545,788 $4,169,783 $3,118,016 $2,138,940
Average annual
interest rate
and fees 3.54% 3.56% 3.54% 3.58% 3.58% 3.58% 3.58%
==================================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount. Michigan Premium Income
(NMP), Ohio Dividend Advantage (NXI) and Ohio Dividend Advantage 3 (NVJ) were
the only Funds to invest in forward interest rate swap transactions during the
six months ended January 31, 2008.
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized on
the Statement of Assets and Liabilities. Additionally, the Statement of Assets
and Liabilities reflects a receivable or payable for the variation margin when
applicable.
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.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and 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.
67
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
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
1/31/08 7/31/07 1/31/08 7/31/07 1/31/08 7/31/07
------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- -- -- 595 2,587
==================================================================================================================
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
1/31/08 7/31/07 1/31/08 7/31/07 1/31/08 7/31/07
------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- -- 1,177 -- --
==================================================================================================================
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-----------------------
SIX MONTHS
ENDED YEAR ENDED
1/31/08 7/31/07
------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 219
==================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended January 31, 2008, were
as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------
Purchases $ 6,052,572 $3,717,173 $2,588,187
Sales and maturities 10,768,159 8,361,813 3,091,926
==================================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------
Purchases $13,168,380 $ 8,379,841 $6,201,693 $5,284,770
Sales and maturities 22,643,112 10,687,884 8,254,381 6,063,658
==================================================================================================================
68
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, 2008, the cost of investments was as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------
Cost of investments $252,261,037 $158,515,165 $44,515,558
==================================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------
Cost of investments $224,345,416 $91,449,704 $67,830,113 $46,901,852
==================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at January 31, 2008, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $13,568,350 $ 6,391,734 $1,683,571
Depreciation (2,085,752) (1,274,412) (761,711)
------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $11,482,598 $ 5,117,322 $ 921,860
==================================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 9,236,259 $4,033,250 $2,163,920 $2,503,037
Depreciation (1,338,705) (569,150) (361,723) (265,119)
------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 7,897,554 $3,464,100 $1,802,197 $2,237,918
==================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at July 31, 2007, 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 * $ 563,630 $307,896 $ 77,768
Undistributed net ordinary income ** 68,426 12,818 --
Undistributed net long-term capital gains 1,411,370 748,463 193,565
==================================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $239,058 $ 64,598 $ 40,409 $ 54,736
Undistributed net ordinary income ** 8,990 1,814 3,297 217
Undistributed net long-term capital gains 720,358 372,714 248,931 177,780
==================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on July 2, 2007, paid on August 1, 2007.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
69
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
The tax character of distributions paid during the Funds' last tax year ended
July 31, 2007, was designated for purposes of the dividends paid deduction as
follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,324,987 $7,313,161 $2,109,139
Distributions from net ordinary income ** -- -- --
Distributions from net long-term capital gains 1,091,968 892,335 20,175
==================================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $9,691,928 $4,111,327 $2,959,465 $2,078,890
Distributions from net ordinary income ** 8,612 -- 1,566 20,184
Distributions from net long-term capital gains 511,427 166,005 174,923 78,218
==================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
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
================================================================================
70
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
================================================================================
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 tables below. As
of January 31, 2008, the complex-level fee rate was .1847%.
Effective August 20, 2007, the complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSETS BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
Prior to August 20, 2007, the complex-level fee schedule was as follows:
COMPLEX-LEVEL ASSETS BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1698
$125 billion .1617
$200 billion .1536
$250 billion .1509
$300 billion .1490
================================================================================
(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.
71
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
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.
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.
72
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.
Agreement and Plan of Merger
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City
Investments, Inc. ("Windy City"), a corporation formed by investors led by
Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy
City would acquire Nuveen Investments. Madison Dearborn is a private equity
investment firm based in Chicago, Illinois. The merger was consummated on
November 13, 2007.
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser, and resulted in the automatic
termination of each Fund's agreement. The Board of Directors/Trustees of each
Fund considered and approved a new investment management agreement with the
Adviser on the same terms as the previous agreements. Each new ongoing agreement
was approved by the shareholders of each Fund and took effect on November 13,
2007.
The investors led by Madison Dearborn includes an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation with
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
73
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
6. NEW ACCOUNTING PRONOUNCEMENT
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, 2008, management does 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.
7. SUBSEQUENT EVENTS
Auction Rate Preferred Markets
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Municipal Auction Preferred shares issued by the
Funds than there were offers to buy. This meant that these auctions "failed to
clear," and that Municipal Auction Preferred shareholders who wanted to sell
their shares in these auctions were unable to do so. Municipal Auction Preferred
shareholders unable to sell their shares received distributions at the "maximum
rate" calculated in accordance with the pre-established terms of the Municipal
Auction Preferred stock.
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will be higher than it
otherwise would have been had the auctions continued to be successful. As a
result, the Funds' future Common share earnings may be lower than they otherwise
would have been.
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on March 3, 2008, to shareholders of record on
February 15, 2008, as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Dividend per share $.0555 $.0550 $.0585
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Dividend per share $.0550 $.0540 $.0530 $.0555
================================================================================
74
Financial
HIGHLIGHTS (Unaudited)
75
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:
2008(b) $14.96 $ .46 $ .20 $(.12) $(.04) $ .50 $(.34) $(.10) $ (.44)
2007 15.17 .94 (.10) (.25) (.02) .57 (.71) (.07) (.78)
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)
MICHIGAN PREMIUM
INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) 14.65 .45 .15 (.11) (.02) .47 (.33) (.07) (.40)
2007 14.92 .90 (.12) (.23) (.02) .53 (.71) (.09) (.80)
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)
====================================================================================================================================
Total Returns
----------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
===================================================================================
MICHIGAN QUALITY
INCOME (NUM)
-----------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) $ -- $15.02 $13.61 (.71)% 3.41%
2007 -- 14.96 14.16 3.64 3.77
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
MICHIGAN PREMIUM
INCOME (NMP)
-----------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) -- 14.72 13.33 (.43) 3.30
2007 -- 14.65 13.80 2.16 3.59
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
===================================================================================
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:
2008(b) $175,942 1.32%*** 1.24%*** 6.15%*** 1.31%*** 1.23%*** 6.15%*** 2%
2007 175,244 1.26 1.22 6.12 1.24 1.20 6.14 13
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
MICHIGAN PREMIUM
INCOME (NMP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) 114,091 1.47*** 1.22*** 6.03*** 1.46*** 1.21*** 6.04*** 2
2007 113,558 1.38 1.22 5.97 1.37 1.21 5.98 15
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
===================================================================================================================================
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:
2008(b) $94,000 $25,000 $71,793 $3,870 $70,572
2007 94,000 25,000 71,607 3,870 70,572
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 -- --
MICHIGAN PREMIUM INCOME (NMP)
--------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) 56,000 25,000 75,934 8,105 21,986
2007 56,000 25,000 75,695 8,105 21,920
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 -- --
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended January 31, 2008.
See accompanying notes to financial statements.
76-77 spread
Financial
HIGHLIGHTS (continued) (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 DIVIDEND
ADVANTAGE (NZW)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) $14.73 $.47 $ .03 $(.12) $(.02) $ .36 $(.35) $(.07) $(.42)
2007 14.94 .95 (.14) (.24) --*** .57 (.77) (.01) (.78)
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)
====================================================================================================================================
Total Returns
----------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
======================================================================================
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
--------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) $ -- $14.67 $13.60 (7.12)% 2.53%
2007 -- 14.73 15.10 .46 3.79
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
======================================================================================
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:
2008(b) $30,320 1.41%**** 1.32%**** 6.04%**** 1.06%**** .97%**** 6.39%**** 6%
2007 30,439 1.38 1.35 5.89 .96 .93 6.31 19
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
====================================================================================================================================
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:
2008(b) $16,000 $25,000 $72,375 $715 $65,783
2007 16,000 25,000 72,561 715 65,950
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 -- --
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Distributions from Capital Gains to Preferred Shareholders rounds to less
than $0.01 per share.
**** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended January 31, 2008.
See accompanying notes to financial statements.
78-79 spread
Financial
HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations 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:
2008(b) $15.81 $ .47 $ .18 $(.13) $(.02) $ .50 $ (.34) $(.07) $ (.41)
2007 16.01 .96 (.12) (.26) (.01) .57 (.73) (.04) (.77)
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)
OHIO DIVIDEND
ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) 14.87 .47 .25 (.12) (.03) .57 (.33) (.09) (.42)
2007 15.02 .94 (.09) (.24) (.01) .60 (.72) (.03) (.75)
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)
====================================================================================================================================
Total Returns
----------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
=====================================================================================
OHIO QUALITY
INCOME (NUO)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) $ -- $15.90 $14.58 3.93% 3.18%
2007 -- 15.81 14.43 (4.25) 3.56
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
OHIO DIVIDEND
ADVANTAGE (NXI)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) -- 15.02 13.63 (2.32) 3.92
2007 -- 14.87 14.39 .52 4.02
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
=====================================================================================
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:
2008(b) $154,997 1.51%*** 1.26%*** 5.94%*** 1.50%*** 1.25%*** 5.95%*** 6%
2007 154,052 1.29 1.19 5.94 1.27 1.17 5.95 15
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
OHIO DIVIDEND
ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) 63,730 1.46*** 1.22*** 5.94*** 1.15*** .91*** 6.25*** 9
2007 63,114 1.32 1.22 5.85 .96 .86 6.21 14
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
====================================================================================================================================
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:
2008(b) $77,000 $25,000 $75,324 $ 4,435 $53,311
2007 77,000 25,000 75,017 10,670 22,654
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 -- --
OHIO DIVIDEND ADVANTAGE (NXI)
--------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) 31,000 25,000 76,395 1,700 56,723
2007 31,000 25,000 75,898 4,220 23,302
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 -- --
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended January 31, 2008.
See accompanying notes to financial statements.
80-81 spread
Financial
HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations 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:
2008(b) $14.64 $ .46 $.11 $(.14) $(.02) $ .41 $(.33) $(.06) $(.39)
2007 14.81 .92 (.10) (.25) (.01) .56 (.69) (.04) (.73)
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)
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) 14.92 .48 .31 (.11) (.02) .66 (.34) (.06) (.40)
2007 15.06 .96 (.08) (.25) (.01) .62 (.72) (.04) (.76)
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)
====================================================================================================================================
Total Returns
----------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
========================================================================================
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
----------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) $ -- $14.66 $13.52 .82% 2.80%
2007 -- 14.64 13.80 (1.26) 3.80
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
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
----------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) -- 15.18 14.24 2.10 4.51
2007 -- 14.92 14.35 2.32 4.06
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
========================================================================================
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:
2008(b) $45,772 1.52%*** 1.27%*** 5.95%*** 1.17%*** .93%*** 6.30%*** 9%
2007 45,694 1.41 1.31 5.76 1.00 .90 6.17 14
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
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) 32,759 1.54*** 1.30*** 5.92*** 1.13*** .89*** 6.33*** 11
2007 32,194 1.41 1.31 5.85 .96 .86 6.30 19
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
====================================================================================================================================
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:
2008(b) $24,000 $25,000 $72,679 $1,270 $55,939
2007 24,000 25,000 72,598 3,155 23,090
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 -- --
OHIO DIVIDEND ADVANTAGE 3 (NVJ)
--------------------------------------------------------------------------------
Year Ended 7/31:
2008(b) 16,500 25,000 74,635 850 58,952
2007 16,500 25,000 73,778 2,165 23,491
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 -- --
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended January 31, 2008.
See accompanying notes to financial statements.
82-83 spread
Reinvest Automatically
EASILY and CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
84
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.
85
Glossary of
TERMS USED in this REPORT
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period.
It expresses the return that would have been necessary each year to equal
the investment's actual cumulative performance (including change in NAV or
market price and reinvested dividends and capital gains distributions, if
any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments or
the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to changes
when market interest rates change. Generally, the longer a bond's or Fund's
duration, the more the price of the bond or Fund will change as interest
rates change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's 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.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
86
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
twelve-month period ended June 30, 2007, 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.
BOARD OF TRUSTEES
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
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 common
or preferred shares were repurchased during the period covered by this report.
Any future repurchases will be reported to shareholders in the next annual or
semi-annual report.
87
Nuveen Investments:
-------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Managing $164 billion in assets, as of December 31, 2007, 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: Nuveen, a leader in fixed-income investments; NWQ, a leader
in value-style equities; Rittenhouse, a leader in growth-style equities;
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios; Santa Barbara, a leader in growth equities; and
Tradewinds, a leader in global equities.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
ESA-B-0108D
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.
-----------------------------------------------------------
By (Signature and Title)* /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: April 9, 2008
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: April 9, 2008
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: April 9, 2008
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.