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: February 28
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Date of reporting period: August 31, 2009
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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.
LOGO: NUVEEN INVESTMENTS
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report August 31, 2009
-------------------- -------------------- -------------------
NUVEEN MICHIGAN NUVEEN OHIO NUVEEN OHIO
QUALITY INCOME DIVIDEND ADVANTAGE QUALITY INCOME
MUNICIPAL FUND, INC. MUNICIPAL FUND 2 MUNICIPAL FUND, INC.
NUM NBJ NUO
-------------------- --------------------
NUVEEN OHIO NUVEEN MICHIGAN
DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE
MUNICIPAL FUND MUNICIPAL FUND
NXI NZW
-------------------- --------------------
NUVEEN MICHIGAN NUVEEN OHIO
PREMIUM INCOME DIVIDEND ADVANTAGE
MUNICIPAL FUND, INC. MUNICIPAL FUND 3
NMP NVJ
AUGUST 09
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LOGO: NUVEEN INVESTMENTS
[PHOTO OF ROBERT P. BREMNER]
Chairman's Letter to Shareholders
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year appears to be slowly but steadily receding. The major institutions
that are the linchpin of the international financial system are strengthening
their capital structures, but many still struggle with losses in their various
portfolios. There are encouraging signs of recovery in European and Asian
economies, while the U.S. economy continues to feel the impact of job losses and
an over-borrowed consumer. Global trends include modestly increasing trade and
increased concern about the ability of the U.S. government to address its
substantial budgetary deficits. Identifying those developments that will define
the future is never easy, but rarely is it more difficult than at present.
After considerable volatility in the first few months of 2009, both the
fixed-income and equity markets have seen a partial recovery. A fundamental
component of a successful long-term investment program is a commitment to remain
invested during market downturns in order to be better positioned to benefit
from any recovery. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of this year as part of the annual
management contract renewal process. I encourage you to read the description of
this process in the Annual Investment Management Agreement Approval Process
section of this report.
Remaining invested through market downturns and reconfirming the appropriateness
of a long term investment strategy is as important for our shareholders as it is
for professional investment managers. For that reason, I again encourage you to
remain in communication with your financial consultant on these subjects. For
recent developments on all your Nuveen Funds, please visit the Nuveen web site:
www.nuveen.com.
Nuveen remains committed to resolving the issues connected with outstanding
auction rate preferred shares. In September 2009, Nuveen completed the
refinancing at par of all the outstanding auction rate preferred shares issued
by its taxable closed-end funds. For a variety of reasons, refinancing the
remaining outstanding preferred shares issued by the municipal closed-end funds
is taking longer but Nuveen is diligently pursuing a range of options to
accomplish this. Please consult the Nuveen web site for the most recent
information about the redemption of municipal auction rate preferred shares.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
----------------------
Robert P. Bremner
Chairman of the Board
October 20, 2009
Nuveen Investments 1
Portfolio Manager's Comments
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)
Portfolio manager Daniel Close reviews 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 2007.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THE
SIX-MONTH REPORTING PERIOD ENDED AUGUST 31, 2009?
During this reporting period, municipal bonds prices generally rose as strong
cash flows into municipal bond funds combined with tighter new issue supply to
provide favorable supply and demand conditions.
Given the restricted new issue supply during the period, investment activity in
these Funds was somewhat more limited than usual. One reason for the supply
reduction was the introduction of the Build America Bond program. Build America
Bonds are a new class of taxable municipal debt created as part of the February
2009 economic stimulus package. They provide municipal issuers with a federal
subsidy equal to 35% of the security's interest payments, and therefore offer
issuers an attractive alternative to traditional tax-exempt debt.
Overall, our purchases during this period focused on higher credit quality
bonds, including general obligation issues in both Michigan and Ohio and revenue
bonds such as water and sewer and non-AMT (alternative minimum tax) housing
credits in Michigan. We also found selective opportunities to increase our
credit exposure through the purchase of uninsured health care bonds in both
states. Supply was especially plentiful in the health care sector, due to the
fact that hospitals generally do not qualify for the Build America Bond program
and so they therefore must continue to issue bonds in the tax-exempt municipal
market. While these Funds have closed out their positions in Puerto Rico general
obligation bonds, we remained positive on Puerto Rico sales tax credits, adding
these A rated bonds to the portfolios of the Ohio Funds.
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED
HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER
FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
Cash for new purchases during this period was generated largely by bond calls.
The Michigan Funds also took advantage of opportunities to sell a charter school
issue, as well as a lower-rated hospital bond in NZW, due to our concerns about
these two credits. In the Ohio Funds, we sold our position in a long-term care
issue that was not performing in line with our expectations and some
short-dated, high-quality securities at various times during the period in order
to fund purchases.
We also found an opportunity to sell a holding from the three Michigan Funds
that was purchased when yields were lower and replaced it with a similar credit
that yielded comparatively more. This process allowed us to maintain the Funds'
current portfolio characteristics while also strengthening their future income
streams and generating a tax loss that can be used to offset capital gains.
We continued to use inverse floating rate securities(1) in all three of the
Michigan Funds and added inverse floaters to the four Ohio Funds during the
latter part of the period as a form of leverage. We employ inverse floaters for
a variety of reasons, including duration(2) management and income enhancement.
As of August 31, 2009, the inverse floaters remained in place in all of these
Funds.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE* FOR PERIODS ENDED
8/31/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------------------------
MICHIGAN FUNDS
NUM 8.78% 5.72% 3.59% 5.86%
NMP 8.19% 4.89% 3.49% 5.80%
NZW 12.18% 5.86% 3.82% N/A
Standard & Poor's (S&P) Michigan Municipal Bond Index(3) 6.17% 2.58% 3.46% 5.12%
Lipper Michigan Municipal Debt Funds Average(4) 10.95% 4.43% 3.25% 5.81%
OHIO FUNDS
NUO 9.35% 7.21% 3.98% 5.64%
NXI 9.03% 7.33% 4.53% N/A
NBJ 9.94% 5.25% 3.64% N/A
NVJ 9.23% 7.63% 4.60% N/A
Standard & Poor's (S&P) Ohio Municipal Bond Index(3) 9.56% 4.34% 3.47% 4.95%
Lipper Other States Municipal Debt Funds Average(5) 11.12% 4.53% 3.52% 5.56%
Standard & Poor's (S&P) National Municipal Bond Index(6) 6.49% 4.68% 4.00% 5.30%
Barclays Capital Municipal Bond Index(7) 5.61% 5.67% 4.16% 5.40%
--------------------------------------------------------------------------------------------------
(1) An inverse floating rate security, also known as inverse floaters, 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 the reporting period, are further defined within the
Notes to Financial Statements and Glossary of Terms Used in this Report
sections of this report.
(2) 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.
* 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 Standard & Poor's (S&P) Municipal Bond Indexes for Michigan and Ohio
are unleveraged market value-weighted indexes designed to measure the
performance of the investment-grade municipal bond markets in Michigan and
Ohio, respectively. These indexes do not reflect any initial or on going
expenses and are not available for direct investment.
(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: Six-months, 7 funds; 1-year, 7 funds; 5-year, 7 funds; and
10-year, 4 funds. Fund and Lipper returns assume reinvestment of
dividends.
(5) The Lipper Other States Municipal Debt Funds Average is calculated using
the returns of all closed-end funds in this category for each period as
follows: Six-months, 46 funds; 1-year, 46 funds; 5-year, 27 funds; and
10-year, 18 funds. The performance of the Lipper Other States category
represents the overall average of returns for funds from ten different
states with a wide variety of municipal market conditions. Fund and Lipper
returns assume reinvestment of dividends.
(6) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. This index
does not reflect any initial or on going expenses and is not available for
direct investment.
(7) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds. Results for the Barclays Capital index
do not reflect any expenses. An index is not available for direct
investment.
Nuveen Investments 3
For the six months ended August 31, 2009, the cumulative returns on common share
net asset value (NAV) for NUM, NMP, and NZW exceeded the return of the Standard
& Poor's (S&P) Michigan Municipal Bond Index, and NBJ outperformed the S&P Ohio
Municipal Bond Index, while the remaining three Ohio Funds lagged the S&P Ohio
index by a slight margin. NZW outperformed the average return for the Lipper
Michigan Municipal Debt Funds Average, while the other six Funds trailed the
averages for their respective Lipper peer groups. All of the Funds outperformed
the Standard & Poor's (S&P) National Municipal Bond Index and the Barclays
Capital Municipal Bond Index.
These relatively strong performance results were achieved in economic and market
environments that remained generally weak, particularly in Michigan.3The most
recent data for gross domestic product (GDP) by state (2008) showed that
Michigan's economy contracted at an annual rate of -1.5%, compared with a
national annual growth rate of 0.7%, ranking Michigan 47th among the 50
states.3Ohio's annual GDP rate was -0.7%, placing it 45th. As of August 2009,
Michigan had an unemployment rate of 15.2%, the highest in the nation and a
26-year high for the state, up from 12.0% six months earlier. In Ohio, the
jobless rate in August 2009 was 10.8%, the most since October 1983, up from 9.5%
in February 2009. Both rates were higher than August 2009's national
unemployment rate of 9.7%. Much of the deterioration in economic growth and
employment can be attributed to Michigan and Ohio's heavier dependence on the
declining manufacturing sector, particularly the troubled auto industry,
relative to the national average.
During this reporting period, key management factors that influenced the Funds'
returns during this period included duration and yield curve positioning, credit
exposure, sector allocations, and individual security selection. In addition,
the use of leverage was an important factor affecting the Funds' performances
over this period. The impact of leverage is discussed in more detail on page
six.
As noted, municipal bonds generally performed well over this period. Bonds in
the Barclays Capital Municipal Bond Index with maturities longer than 15 years,
especially those with the longest maturities (22 years and or more), benefited
the most in this environment. These bonds generally outperformed credits with
shorter maturities, with bonds maturing in one to two years posting the weakest
returns for the period. NUM, NMP, NZW, NUO, and NBJ had relatively smaller
exposures to the underperforming shorter end of the yield curve, which was
beneficial for their performances. In particular, NZW and NBJ, which had some of
the longer durations among these Funds, were helped by their duration and yield
curve positioning. In NVJ and--to a lesser extent--NXI, greater exposure to the
shorter end of the curve caused duration and yield curve positioning to be
relative negatives for performance.
4 Nuveen Investments
Demand increased for municipal bonds among both institutional and individual
investors, especially for lower-rated credits, was driven by a variety of
factors. These included concerns about possible tax increases, the need to
rebalance portfolio allocations and growing appetite to assume additional risk.
At the same time, the supply of new municipal paper declined and bonds rated BBB
or below and non-rated bonds generally outperformed those rated AAA. All of the
Michigan Funds were underweighted in the lower-rated credit categories, which
hurt their returns during this performance period. The four Ohio Funds benefited
from their relative underweighting of the AAA category and saw positive
contributions from their exposure to BBB and lower-rated credits.
Holdings that generally contributed positively to the Funds' returns included
industrial development revenue (IDR), health care and zero coupon bonds, all of
which outperformed the overall municipal market during this period. NBJ, which
had the largest allocations of IDR and health care bonds among these seven
Funds, was particularly helped by the outstanding performance of the IDR sector.
Bonds backed by the 1998 master tobacco settlement agreement also posted strong
returns. As of August 31, 2009, the Ohio Funds' holdings of lower-rated tobacco
bonds ranged from approximately 3% to 5% of total net assets, providing a
meaningful contribution to performance. The Michigan Funds each held about 1% of
their portfolios in tobacco bonds.
Pre-refunded(8) bonds, which often are backed by U.S. Treasury securities and
which were one of the top performing segments of the municipal bond market over
the past two years, performed especially poorly during this period. This was due
primarily to their shorter effective maturities and higher credit quality. NUM,
NXI, and NVJ held the heaviest weightings of pre-refunded bonds among these
Funds. Additional market segments that underperformed the overall municipal
market included general obligation, resource recovery, water and sewer and
insured credits.
In addition, all of the Ohio Funds had negative returns from the utilities
sector, which struggled during this six-month period.
Individual security selection was also a factor in the Funds' performances.
Although older, previously pre-refunded bonds tended to underperform the
municipal market during this period, we saw positive contributions from new
pre-refunding activity in certain Funds, which benefited them through price
appreciation and enhanced credit quality. All three of the Michigan Funds were
helped by the pre-refunding of a health care bond, particularly NZW, which had
the largest position. NXI also had two issues pre-refunded during this period.
(8) Pre-refundings, also known as advance refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
Nuveen Investments 5
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative indexes was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total returns for common shareholders.
However, use of leverage also can expose common shareholders to additional
risk--especially when market conditions are unfavorable. For example, as the
prices of securities held by a Fund declines, the negative impact of these
valuation changes on common share net asset value and common shareholder total
return is magnified by the use of leverage. Conversely, leverage may enhance
common share returns during periods when bond prices generally are rising.
During this six-month period, leverage had a positive impact on the total return
performance of these Funds.
RECENT DEVELOPMENTS REGARDING THE FUND'S LEVERAGED CAPITAL STRUCTURE
As noted in the last several shareholder reports, the auction rate preferred
shares issued by many closed-end funds, including these Nuveen Funds, have been
hampered by a lack of liquidity since February 2008. Since that time, more
auction rate preferred shares have been submitted for sale in their regularly
scheduled auctions than there have been offers to buy. In fact, offers to buy
have been almost completely non-existent since late February, 2008. This means
that these auctions have "failed to clear," and that many, or all, of the
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This lack of liquidity in auction rate preferred
shares did not lower the credit quality of these shares, and auction rate
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions, as calculated in accordance with
the pre-established terms of the auction rate preferred shares. In the recent
market, with short-term rates at multi-generational lows, those maximum rates
also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
6 Nuveen Investments
As noted in past shareholder reports, the Funds' Board of Directors/Trustees
authorized a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares. The amount of TOBs that a Fund may use varies according to the
composition of each Fund's portfolio. Some Funds have a greater ability to use
TOBs than others. As of August 31, 2009, the amounts of auction rate preferred
securities redeemed, at par, each of the Funds are as shown in the accompanying
table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMEDP REFERRED SHARES
--------------------------------------------------------------------------------
NUM $ 6,675,000 7.10%
NMP $ 2,300,000 4.11%
NZW $ 1,725,000 10.78%
NUO -- --
NXI -- --
NBJ $ 900,000 3.75%
NVJ -- --
--------------------------------------------------------------------------------
Subsequent to the reporting period, NUO noticed for redemption, at par, an
additional $4 million auction rate preferred securities.
The Funds, their Board of Directors/Trustees and Fund Management continue to
work to resolve this situation. Some Funds have issued Variable Rate Demand
Preferred Shares, but these issuances have been limited since it has been
difficult to find liquidity facilities on economically viable terms given the
constrained credit environment. The Funds also have tried to develop other forms
of preferred stock that have longer terms and do not require a Fund to obtain
and pay for the services of an external liquidity provider. However, the Funds
cannot provide any assurance on when the remaining outstanding auction rate
preferred shares might be redeemed.
As of August 31, 2009, 78 Nuveen closed-end municipal funds have redeemed, at
par, a portion of their outstanding auction rate preferred shares. These
redemptions bring the total amount of Nuveen's municipal closed-end funds'
auction rate preferred share redemptions to approximately $2.3 billion of the
original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
Nuveen Investments 7
Common Share Dividend and Share Price Information
During the six-month reporting period ended August 31, 2009, all seven of the
Michigan and Ohio Funds had one increase in their monthly dividends.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of August 31, 2009, all of
the Funds in this report had positive UNII balances for tax purposes, based upon
our best estimate, and positive UNII balances for financial statement purposes.
COMMON SHARE REPURCHASES, MANAGEMENT INITIATIVES AND SHARE PRICE INFORMATION
Over the period, the Funds' managers have taken a series of steps designed to
enhance common share value, including the repurchase of outstanding common
shares.
As of August 31, 2009, the following Funds cumulatively repurchased common
shares as shown in the accompanying table. Since the inception of the Funds
repurchase program, NUO and NBJ have not repurchased any of their outstanding
common shares.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
--------------------------------------------------------------------------------
NUM 76,200 0.7%
NMP 69,000 0.9%
NZW 900 0.0%
NXI 600 0.0%
NVJ 1,700 0.1%
--------------------------------------------------------------------------------
8 Nuveen Investments
During the six-month reporting period, the following Funds repurchased common
shares at a weighted average price and a weighted average discount per common
share as shown in the accompanying table.
WEIGHTED AVERAGE WEIGHTED AVERAGE
COMMON SHARES PRICE PER SHARE DISCOUNT PER SHARE
REPURCHASED REPURCHASED REPURCHASED
--------------------------------------------------------------------------------
NUM 76,200 $ 10.29 23.56%
NMP 42,300 $ 10.20 22.70%
NZW 900 $ 10.05 20.27%
--------------------------------------------------------------------------------
The repurchase program helps promote attractive secondary market trading markets
for the Funds as measured by premium/discount levels relative to peers, and
market quality measures as daily trading volume, bid/ask spreads, quote depth
and price continuity.
As of August 31, 2009, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying table.
8/31/09 SIX-MONTH AVERAGE
FUND (-)DISCOUNT (-)DISCOUNT
--------------------------------------------------------------------------------
NUM -11.82% -17.73%
NMP -12.43% -17.90%
NZW -11.96% -15.57%
NUO -6.25% -9.58%
NXI -7.14% -10.47%
NBJ -8.36% -10.74%
NVJ -7.73% -8.93%
--------------------------------------------------------------------------------
Nuveen Investments 9
NUM Performance OVERVIEW | Nuveen Michigan Quality Income Municipal Fund, Inc.
as of August 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.68
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.38
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -11.82%
--------------------------------------------------------------------------------
Market Yield 5.54%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.04%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $167,312
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.28
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.51
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 23.08% 8.78%
--------------------------------------------------------------------------------
1-Year 9.09% 5.72%
--------------------------------------------------------------------------------
5-Year 1.56% 3.59%
--------------------------------------------------------------------------------
10-Year 3.68% 5.86%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 36.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 20.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.6%
--------------------------------------------------------------------------------
Utilities 10.1%
--------------------------------------------------------------------------------
Water and Sewer 7.3%
--------------------------------------------------------------------------------
Health Care 7.1%
--------------------------------------------------------------------------------
Other 8.0%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 43%
AA 29%
A 22%
BBB 4%
BB or Lower 1%
N/R 1%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Sep 0.0555
Oct 0.0555
Nov 0.0555
Dec 0.0555
Jan 0.0555
Feb 0.0555
Mar 0.0555
Apr 0.0555
May 0.0585
Jun 0.0585
Jul 0.0585
Aug 0.0585
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 12.44
12.46
12.25
11.56
11.29
10.666
8.23
9.46
10.835
10.64
10.64
9.958
9.2
9.69
9.01
8.47
9.1
9.47
10.09
11.15
10.84
10.57
11.05
11.23
11.23
10.52
10.61
10.06
9.86
10.27
10.35
10.69
10.65
10.78
11.01
11.27
11.52
11.51
11.65
11.68
11.68
11.52
11.5
11.45
11.62
11.62
11.72
12.092
12.41
12.34
12.45
12.48
12.63
8/31/09 12.68
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
10 Nuveen Investments
NMP Performance OVERVIEW | Nuveen Michigan Premium Income Municipal Fund, Inc.
as of August 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 31%
AA 27%
A 35%
BBB 6%
BB or Lower
and N/R 1%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Sep 0.055
Oct 0.053
Nov 0.053
Dec 0.053
Jan 0.053
Feb 0.053
Mar 0.053
Apr 0.053
May 0.0565
Jun 0.0565
Jul 0.0565
Aug 0.0565
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 12.35
12.38
12.192
11.34
11.1
10.55
7.95
9.49
10.25
10.25
10.54
9.91
9.2
9.14
8.79
8.35
8.73
9.24
9.94
11
10.55
10.3899
10.61
10.966
11.01
10.444
10.44
10
9.76
10.12
10.1899
10.44
10.4
10.5199
10.75
10.94
11.18
11.1875
11.37
11.56
11.49
11.23
11.08
11.2
11.29
11.33
11.42
11.6
11.96
11.92
11.9536
12.056
12.27
8/31//09 12.2638
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.26
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.00
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -12.43%
--------------------------------------------------------------------------------
Market Yield 5.53%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.03%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 107,520
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.27
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.26
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 20.92% 8.19%
--------------------------------------------------------------------------------
1-Year 5.76% 4.89%
--------------------------------------------------------------------------------
5-Year 2.03% 3.49%
--------------------------------------------------------------------------------
10-Year 4.29% 5.80%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 37.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.9%
--------------------------------------------------------------------------------
Water and Sewer 11.6%
--------------------------------------------------------------------------------
Utilities 10.2%
--------------------------------------------------------------------------------
Other 14.2%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 11
NZW Performance OVERVIEW | Nuveen Michigan Dividend Advantage Municipal Fund
as of August 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.22
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.88
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -11.96%
--------------------------------------------------------------------------------
Market Yield 5.55%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.06%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 28,675
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.92
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.84
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 16.89% 12.18%
--------------------------------------------------------------------------------
1-Year 4.28% 5.86%
--------------------------------------------------------------------------------
5-Year 1.61% 3.82%
--------------------------------------------------------------------------------
Since Inception 3.15% 5.28%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 33.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.2%
--------------------------------------------------------------------------------
Utilities 12.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 9.9%
--------------------------------------------------------------------------------
Water and Sewer 9.7%
--------------------------------------------------------------------------------
Health Care 9.3%
--------------------------------------------------------------------------------
Other 11.2%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 44%
AA 21%
A 24%
BBB 3%
BB or Lower 1%
N/R 7%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BARCHART]
Sep 0.0585
Oct 0.0555
Nov 0.0555
Dec 0.0555
Jan 0.0555
Feb 0.0555
Mar 0.0555
Apr 0.0555
May 0.0565
Jun 0.0565
Jul 0.0565
Aug 0.0565
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 12.5
12.58
12.45
11.9
11.306
11.25
8.8
8.72
9.55
10.31
10.6001
9.84
8.82
9
8.8247
8.25
8.6
8.96
9.65
10.63
10.4
10.18
10.22
10.5499
10.57
10.32
10.77
10.2099
10
10.1599
10.15
10.36
10.38
10.7599
11.09
11.18
11.66
11.61
11.45
11.3045
11.47
10.97
11.08
11
11.26
11.2
11.3
11.5
12.19
12.25
11.94
12.21
12.06
8/31/09 12.22
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gains distribution in December 2008
of $0.0120 per share.
12 Nuveen Investments
NUO Performance OVERVIEW | Nuveen Ohio Quality Income Municipal Fund, Inc.
as of August 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 30%
AA 29%
A 27%
BBB 9%
N/R 5%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BARCHART]
Sep 0.056
Oct 0.056
Nov 0.056
Dec 0.056
Jan 0.056
Feb 0.056
Mar 0.0575
Apr 0.0575
May 0.0645
Jun 0.0645
Jul 0.0645
Aug 0.0645
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 13.63
13.57
13.39
13.0101
12.4101
12.01
8.47
10.71
11.71
11.67
12.132
11.79
11.3
12.33
11.4
10.7
12
11.6705
12.51
13.53
13.14
13.5
13.4
13.36
13.31
12.79
12.9
12.03
12.01
12.16
12.46
12.74
13.13
12.99
13.1
13.4334
13.5
13.82
13.8732
13.95
13.71
13.76
13.71
13.71
13.69
13.65
13.7
13.73
13.9
13.85
14.02
14.48
14.47
8/31/09 14.56
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.56
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 15.53
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.25%
--------------------------------------------------------------------------------
Market Yield 5.32%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.81%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 151,377
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.13
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.38
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91) ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 15.96% 9.35%
--------------------------------------------------------------------------------
1-Year 12.82% 7.21%
--------------------------------------------------------------------------------
5-Year 2.27% 3.98%
--------------------------------------------------------------------------------
10-Year 4.04% 5.64%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 26.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.1%
--------------------------------------------------------------------------------
Health Care 13.7%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.1%
--------------------------------------------------------------------------------
Utilities 6.9%
--------------------------------------------------------------------------------
Consumer Staples 5.2%
--------------------------------------------------------------------------------
Other 13.0%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 13
NXI Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund
as of August 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.65
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.70
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.14%
--------------------------------------------------------------------------------
Market Yield 5.45%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.00%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 62,371
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.78
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.64
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 16.03% 9.03%
--------------------------------------------------------------------------------
1-Year 11.82% 7.33%
--------------------------------------------------------------------------------
5-Year 2.39% 4.53%
--------------------------------------------------------------------------------
Since Inception 4.61% 6.10%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 26.1%
--------------------------------------------------------------------------------
Tax Obligation/General 17.0%
--------------------------------------------------------------------------------
Health Care 11.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.8%
--------------------------------------------------------------------------------
Utilities 8.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 6.2%
--------------------------------------------------------------------------------
Housing/Multifamily 6.1%
--------------------------------------------------------------------------------
Other 14.5%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 39%
AA 22%
A 20%
BBB 11%
N/R 8%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Sep 0.055
Oct 0.055
Nov 0.055
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.057
Apr 0.057
May 0.062
Jun 0.062
Jul 0.062
Aug 0.062
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 12.85
13
13.04
12.35
11.75
11.25
8.18
10.562
10.914
11.46
11.604
10.88
10.48
10.85
9.78
9.66
9.84
10.89
11.12
12.49
12.2699
12
12.15
12.264
12.05
11.57
12.1
11.8
11.8
11.7999
12.05
11.83
12.14
12.1499
12.31
12.44
12.71
12.63
12.79
13.01
12.92
12.84
12.52
12.82
12.79
12.95
13.18
13.25
13.115
13.33
13.23
13.39
13.65
8/31/09 13.65
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
14 Nuveen Investments
NBJ Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund 2
as of August 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 32%
AA 20%
A 25%
BBB 18%
N/R 5%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BARCHART]
Sep 0.0545
Oct 0.0545
Nov 0.0545
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
May 0.058
Jun 0.058
Jul 0.058
Aug 0.058
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 12.4
12.33
12.17
11.7
11.1
10.6
7.66
9.64
9.92
10.47
10.9
10.87
9.8
11
9.6921
9.2
10.45
9.8
9.93
11.27
11.17
11.2
11.36
11.65
11.4326
11.15
11.58
11.13
10.93
11.04
11.35
11.51
11.45
11.39
11.54
11.85
11.91
11.99
12.13
12.3
12.22
12.1399
11.7654
11.84
11.97
12.14
12.1
12.12
12.63
12.91
12.83
12.83
12.811
8/31/09 12.83
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.83
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.00
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.36%
--------------------------------------------------------------------------------
Market Yield 5.42%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.96%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 43,712
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.22
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.04
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 13.95% 9.94%
--------------------------------------------------------------------------------
1-Year 9.70% 5.25%
--------------------------------------------------------------------------------
5-Year 1.76% 3.64%
--------------------------------------------------------------------------------
Since Inception 3.67% 5.29%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 29.8%
--------------------------------------------------------------------------------
Health Care 16.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 9.4%
--------------------------------------------------------------------------------
Utilities 8.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 8.0%
--------------------------------------------------------------------------------
Industrials 5.5%
--------------------------------------------------------------------------------
Other 8.7%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 15
NVJ Performance OVERVIEW| Nuveen Ohio Dividend Advantage Municipal Fund 3
as of August 31, 2009
FUND SNAPSHOT
Common Share Price $ 13.72
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.87
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.73%
--------------------------------------------------------------------------------
Market Yield 5.55%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.15%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 32,070
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.22
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.48
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 18.07% 9.23%
--------------------------------------------------------------------------------
1-Year 10.15% 7.63%
--------------------------------------------------------------------------------
5-Year 3.56% 4.60%
--------------------------------------------------------------------------------
Since Inception 4.44% 6.06%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 27.0%
--------------------------------------------------------------------------------
Tax Obligation/General 22.9%
--------------------------------------------------------------------------------
Health Care 13.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 9.3%
--------------------------------------------------------------------------------
Utilities 6.1%
--------------------------------------------------------------------------------
Consumer Staples 4.6%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.1%
--------------------------------------------------------------------------------
Other 12.1%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 47%
AA 16%
A 24%
BBB 9%
N/R 4%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Sep 0.057
Oct 0.057
Nov 0.057
Dec 0.057
Jan 0.057
Feb 0.057
Mar 0.059
Apr 0.059
May 0.0635
Jun 0.0635
Jul 0.0635
Aug 0.0635
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 13.17
13.12
12.85
12.24
11.96
11.8
8.5
10.37
11.15
12.1
11.34
11.35
11.7299
11.35
10.35
10.65
10.56
10.6
11
12.57
12.69
12.93
12.7499
12.418
12.23
11.75
11.95
11.5
11.95
12.5
12.33
12.16
12.25
12.39
12.95
12.86
12.89
12.94
12.94
13.4
13.27
13.3
13.63
13.72
13.4001
13.38
13.37
13.44
13.3599
13.68
13.6
13.84
13.69
8/31/09 13.7199
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
16 Nuveen Investments
NUM NMP NZW | Shareholder Meeting Report
The annual meeting of shareholders was held in the offices of Nuveen Investments
on November 18, 2008; at this meeting the shareholders were asked to vote on the
election of Board Members, the elimination of Fundamental Investment Policies
and the approval of new Fundamental Investment Policies. The meeting was
subsequently adjourned to January 13, 2009, and additionally adjourned to March
17, 2009.
NUM NMP NZW
----------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together as together as together as together as together as together as
a class a class a class a class a class a class
==================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICIES RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES
AND BELOW INVESTMENT GRADE SECURITIES.
For 5,462,543 2,645 3,873,336 1,182 923,937 108
Against 355,908 441 243,535 220 47,484 66
Abstain 212,692 74 159,615 50 37,167 7
Broker Non-Votes 1,490,540 -- 993,148 462 242,762 415
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,683 3,160 5,269,634 1,914 1,251,350 596
==================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES.
For 5,470,686 2,498 3,907,837 1,190 926,605 108
Against 344,384 610 220,629 200 47,832 65
Abstain 216,073 52 148,020 62 34,151 8
Broker Non-Votes 1,490,540 -- 993,148 462 242,762 415
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,683 3,160 5,269,634 1,914 1,251,350 596
==================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For 5,382,777 2,463 3,801,245 1,018 -- --
Against 393,055 622 274,363 372 -- --
Abstain 257,431 75 200,878 62 -- --
Broker Non-Votes 1,488,420 -- 993,148 462 -- --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,683 3,160 5,269,634 1,914 -- --
==================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 5,367,617 2,461 3,813,957 1,006 -- --
Against 384,124 625 260,868 384 -- --
Abstain 281,522 74 201,661 62 -- --
Broker Non-Votes 1,488,420 -- 993,148 462 -- --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,683 3,160 5,269,634 1,914 -- --
==================================================================================================================================
TO APPROVE THE ELIMINATION OF
THE FUNDAMENTAL POLICIES RELATING
TO DERIVATIVES AND SHORT SALES.
For 5,378,233 2,466 3,816,398 1,024 -- --
Against 377,934 620 262,935 366 -- --
Abstain 277,096 74 197,153 62 -- --
Broker Non-Votes 1,488,420 -- 993,148 462 -- --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,683 3,160 5,269,634 1,914 -- --
==================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICIES PROHIBITING
INVESTMENT IN OTHER
INVESTMENT COMPANIES.
For 5,382,613 2,480 3,833,738 1,035 -- --
Against 420,834 628 287,830 376 -- --
Abstain 229,816 52 154,918 41 -- --
Broker Non-Votes 1,488,420 -- 993,148 462 -- --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,683 3,160 5,269,634 1,914 -- --
==================================================================================================================================
Nuveen Investments 17
NUM NMP NZW | Shareholder Meeting Report (continued)
NUM NMP NZW
----------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together as together as together as together as together as together as
a class a class a class a class a class a class
==================================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
John P. Amboian
For 7,224,817 -- 5,036,628 -- 1,214,843 --
Withhold 296,531 -- 233,004 -- 36,505 --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,348 -- 5,269,632 -- 1,251,348 --
==================================================================================================================================
Robert P. Bremner
For 7,228,630 -- 5,033,542 -- -- --
Withhold 292,718 -- 236,090 -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,348 -- 5,269,632 -- -- --
==================================================================================================================================
Jack B. Evans
For 7,226,081 -- 5,037,725 -- -- --
Withhold 295,267 -- 231,907 -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,348 -- 5,269,632 -- -- --
==================================================================================================================================
William C. Hunter
For -- 2,890 -- 1,637 -- 520
Withhold -- 260 -- 275 -- 74
----------------------------------------------------------------------------------------------------------------------------------
Total -- 3,150 -- 1,912 -- 594
==================================================================================================================================
David J. Kundert
For 7,224,388 -- 5,030,233 -- 1,214,843 --
Withhold 296,960 -- 239,399 -- 36,505 --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,348 -- 5,269,632 -- 1,251,348 --
==================================================================================================================================
William J. Schneider
For -- 2,890 -- 1,609 -- 520
Withhold -- 260 -- 303 -- 74
----------------------------------------------------------------------------------------------------------------------------------
Total -- 3,150 -- 1,912 -- 594
==================================================================================================================================
Judith M. Stockdale
For 7,225,849 -- 5,028,946 -- -- --
Withhold 295,499 -- 240,686 -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,348 -- 5,269,632 -- -- --
==================================================================================================================================
Carole E. Stone
For 7,221,349 -- 5,028,559 -- -- --
Withhold 299,999 -- 241,073 -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,348 -- 5,269,632 -- -- --
==================================================================================================================================
Terence J. Toth
For 7,230,260 -- 5,035,998 -- 1,214,843 --
Withhold 291,088 -- 233,634 -- 36,505 --
----------------------------------------------------------------------------------------------------------------------------------
Total 7,521,348 -- 5,269,632 -- 1,251,348 --
==================================================================================================================================
18 Nuveen Investments
NUO NXI |
NUO NXI
--------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together as together as together as together as
a class a class a class a class
==========================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICIES RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES
AND BELOW INVESTMENT GRADE SECURITIES.
For 3,915,100 673 1,798,712 254
Against 278,909 43 97,204 15
Abstain 172,107 55 63,076 7
Broker Non-Votes 1,338,218 1,532 608,963 831
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,334 2,303 2,567,955 1,107
==========================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES.
For 3,912,016 678 1,830,063 254
Against 269,428 43 76,636 18
Abstain 184,672 50 52,293 4
Broker Non-Votes 1,338,218 1,532 608,963 831
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,334 2,303 2,567,955 1,107
==========================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For 3,883,579 680 -- --
Against 288,887 41 -- --
Abstain 193,650 50 -- --
Broker Non-Votes 1,338,218 1,532 -- --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,334 2,303 -- --
==========================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For 3,861,806 680 -- --
Against 302,534 38 -- --
Abstain 201,776 53 -- --
Broker Non-Votes 1,338,218 1,532 -- --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,334 2,303 -- --
==========================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICIES RELATING TO
DERIVATIVES AND SHORT SALES.
For 3,874,273 679 -- --
Against 303,150 42 -- --
Abstain 188,693 50 -- --
Broker Non-Votes 1,338,218 1,532 -- --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,334 2,303 -- --
==========================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICIES PROHIBITING
INVESTMENT IN OTHER INVESTMENT COMPANIES.
For 3,877,420 670 -- --
Against 316,004 51 -- --
Abstain 172,692 50 -- --
Broker Non-Votes 1,338,218 1,532 -- --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,334 2,303 -- --
==========================================================================================================================
Nuveen Investments 19
NUO NXI | Shareholder Meeting Report (continued)
NUO NXI
--------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together as together as together as together as
a class a class a class a class
==========================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED
AS FOLLOWS:
John P. Amboian
For 5,257,055 -- 2,428,887 --
Withhold 446,960 -- 139,049 --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,015 -- 2,567,936 --
==========================================================================================================================
Robert P. Bremner
For 5,248,106 -- -- --
Withhold 455,909 -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,015 -- -- --
==========================================================================================================================
Jack B. Evans
For 5,252,179 -- -- --
Withhold 451,836 -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,015 -- -- --
==========================================================================================================================
William C. Hunter
For -- 2,251 -- 1,044
Withhold -- 33 -- 43
--------------------------------------------------------------------------------------------------------------------------
Total -- 2,284 -- 1,087
==========================================================================================================================
David J. Kundert
For 5,244,902 2,251 2,428,887 --
Withhold 459,113 33 139,049 --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,015 2,284 2,567,936 --
==========================================================================================================================
William J. Schneider
For -- -- -- 1,044
Withhold -- -- -- 43
--------------------------------------------------------------------------------------------------------------------------
Total -- -- -- 1,087
==========================================================================================================================
Judith M. Stockdale
For 5,254,000 -- -- --
Withhold 450,015 -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,015 -- -- --
==========================================================================================================================
Carole E. Stone
For 5,248,897 -- -- --
Withhold 455,118 -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,015 -- -- --
==========================================================================================================================
Terence J. Toth
For 5,251,703 -- 2,428,887 --
Withhold 452,312 -- 139,049 --
--------------------------------------------------------------------------------------------------------------------------
Total 5,704,015 -- 2,567,936 --
==========================================================================================================================
20 Nuveen Investments
NBJ NVJ |
NBJ NVJ
--------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together as together as together as together as
a class a class a class a class
==========================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES
RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND
BELOW INVESTMENT GRADE SECURITIES.
For 1,368,131 119 1,036,011 113
Against 105,520 14 90,876 7
Abstain 60,844 34 101,545 1
Broker Non-Votes 456,632 587 309,103 482
--------------------------------------------------------------------------------------------------------------------------
Total 1,991,127 754 1,537,535 603
==========================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING
TO INVESTMENTS IN MUNICIPAL SECURITIES.
For 1,376,438 123 1,044,834 113
Against 91,319 9 87,592 7
Abstain 66,738 35 96,006 1
Broker Non-Votes 456,632 587 309,103 482
--------------------------------------------------------------------------------------------------------------------------
Total 1,991,127 754 1,537,535 603
==========================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES
RELATING TO DERIVATIVES AND SHORT SALES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES
PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================================================
Nuveen Investments 21
NBJ NVJ | Shareholder Meeting Report (continued)
NBJ NVJ
--------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together as together as together as together as
a class a class a class a class
==========================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED
AS FOLLOWS:
John P. Amboian
For 1,860,185 -- 1,378,669 --
Withhold 130,942 -- 158,861 --
--------------------------------------------------------------------------------------------------------------------------
Total 1,991,127 -- 1,537,530 --
==========================================================================================================================
Robert P. Bremner
For -- -- -- --
Withhold -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================================================
Jack B. Evans
For -- -- -- --
Withhold -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================================================
William C. Hunter
For -- 747 -- 592
Withhold -- 7 -- 6
--------------------------------------------------------------------------------------------------------------------------
Total -- 754 -- 598
==========================================================================================================================
David J. Kundert
For 1,860,185 -- 1,377,669 --
Withhold 130,942 -- 159,861 --
--------------------------------------------------------------------------------------------------------------------------
Total 1,991,127 -- 1,537,530 --
==========================================================================================================================
William J. Schneider
For -- 747 -- 592
Withhold -- 7 -- 6
--------------------------------------------------------------------------------------------------------------------------
Total -- 754 -- 598
==========================================================================================================================
Judith M. Stockdale
For -- -- -- --
Withhold -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================================================
Carole E. Stone
For -- -- -- --
Withhold -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================================================
Terence J. Toth
For 1,860,185 -- 1,375,669 --
Withhold 130,942 -- 161,861 --
--------------------------------------------------------------------------------------------------------------------------
Total 1,991,127 -- 1,537,530 --
==========================================================================================================================
22 Nuveen Investments
NUM | Nuveen Michigan Quality Income Municipal Fund, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.8% (1.2% OF TOTAL INVESTMENTS)
$ 3,500 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 $ 3,077,550
Settlement Asset-Backed Revenue Bonds, Series 2008A,
6.875%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.9% (3.9% OF TOTAL INVESTMENTS)
1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 N/R 1,797,760
Obligation Revenue Refunding Bonds, Kettering University,
Series 2001, 5.500%, 9/01/17 - AMBAC Insured
1,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AA 1,459,155
Bonds, Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured
(Alternative Minimum Tax)
1,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AA 973,880
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured
(Alternative Minimum Tax)
1,115 Michigan Technological University, General Revenue Bonds, 10/13 at 100.00 A1 1,123,541
Series 2004A, 5.000%, 10/01/22 - NPFG Insured
Wayne State University, Michigan, General Revenue Bonds,
Series 1999:
3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AA- 3,486,046
1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AA- 1,002,890
------------------------------------------------------------------------------------------------------------------------------------
9,730 Total Education and Civic Organizations 9,843,272
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.9% (7.1% OF TOTAL INVESTMENTS)
2,700 Michigan State Hospital Finance Authority, Hospital Revenue 2/10 at 100.00 BB- 1,721,088
Bonds, Detroit Medical Center Obligated Group, Series
1998A, 5.250%, 8/15/28
3,575 Michigan State Hospital Finance Authority, Hospital Revenue 4/13 at 100.00 A 3,167,164
Bonds, Oakwood Obligated Group, Series 2002A, 5.750%,
4/01/32
2,500 Michigan State Hospital Finance Authority, Hospital Revenue 6/19 at 100.00 AAA 2,578,525
Bonds, Mid-Michigan Obligated Group, Series 2009A, 5.875%,
6/01/39 - AGC Insured
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 Baa1 981,560
Refunding Bonds, Memorial Healthcare Center Obligated
Group, Series 1999, 5.875%, 11/15/21
Michigan State Hospital Finance Authority, Revenue Bonds,
Marquette General Hospital, Series 2005A:
1,500 5.000%, 5/15/26 5/15 at 100.00 Baa3 1,211,490
55 5.000%, 5/15/34 5/15 at 100.00 Baa3 39,466
1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,319,315
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 A1 5,009,510
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - NPFG Insured
2,195 University of Michigan, Medical Service Plan Revenue Bonds, No Opt. Call AA+ 2,162,690
Series 1991, 0.000%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
20,175 Total Health Care 18,190,808
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.7% (1.7% OF TOTAL INVESTMENTS)
2,675 Michigan Housing Development Authority, FNMA Limited 12/20 at 101.00 AAA 2,722,374
Obligation Multifamily Housing Revenue Bonds, Parkview
Place Apartments, Series 2002A, 5.550%, 12/01/34
(Alternative Minimum Tax)
215 Michigan Housing Development Authority, Rental Housing Revenue 10/09 at 101.00 AA 208,875
Bonds, Series 1999A, 5.300%, 10/01/37 - NPFG Insured
(Alternative Minimum Tax)
1,300 Michigan Housing Development Authority, Rental Housing Revenue 7/15 at 100.00 AAA 1,306,734
Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured
(Alternative Minimum Tax)
200 Michigan Housing Development Authority, Rental Housing Revenue 10/18 at 100.00 AA 203,822
Bonds, Series 2009A, 5.700%, 10/01/39
------------------------------------------------------------------------------------------------------------------------------------
4,390 Total Housing/Multifamily 4,441,805
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 711,570
Presbyterian Villages of Michigan Obligated Group, Series
2005, 5.250%, 11/15/25
200 Michigan Strategic Fund, Limited Obligation Revenue Refunding 1/10 at 100.00 BBB 173,012
Bonds, Porter Hills Presbyterian Village, Series 1998,
5.375%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
1,200 Total Long-Term Care 884,582
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 23
NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 1,250 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB $ 1,165,025
Pollution Control Revenue Bonds, International Paper
Company, Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 56.1% (36.9% OF TOTAL INVESTMENTS)
1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA- 1,012,120
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- 2,602,325
3,200 5.000%, 5/01/29 5/11 at 100.00 AA- 3,213,472
1,000 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ 1,029,700
Facilities Capital Improvement Series 2008, 5.000%, 5/01/38
1,320 Bridgeport Spaulding Community School District, Saginaw 5/12 at 100.00 AA- 1,452,013
County, Michigan, General Obligation Bonds, Series 2002,
5.500%, 5/01/16
2,110 Caledonia Community Schools, Kent, Allegan and Barry 5/13 at 100.00 AA- 2,275,108
Counties, Michigan, General Obligation Bonds, Series 2003,
5.250%, 5/01/20
1,000 Caledonia Community Schools, Kent, Allegan and Barry 5/15 at 100.00 AA- 1,039,760
Counties, Michigan, General Obligation Bonds, Series 2005,
5.000%, 5/01/25 - NPFG Insured
2,319 Caledonia Community Schools, Kent, Allegan and Barry 5/17 at 100.00 AA- 2,295,648
Counties, Michigan, General Obligation Bonds, Tender
Option Bond Trust 2008-1096, 7.559%, 5/01/32 - NPFG
Insured (IF)
2,000 Detroit City School District, Wayne County, Michigan, General No Opt. Call AA- 2,131,780
Obligation Bonds, Series 2002A, 6.000%, 5/01/19 - FGIC
Insured
700 Detroit-Wayne County Stadium Authority, Michigan, Limited Tax 2/10 at 100.00 A 700,119
General Obligation Building Authority Stadium Bonds,
Series 1997, 5.500%, 2/01/17 - FGIC Insured
285 East Grand Rapids Public Schools, County of Kent, State of 5/11 at 100.00 AA 287,086
Michigan, General Obligation Bonds, Series 2001,
Refunding, 5.125%, 5/01/29
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 4,190,120
3,000 0.000%, 12/01/26 No Opt. Call AAA 1,328,130
5,305 0.000%, 12/01/29 No Opt. Call AAA 1,933,832
1,700 Grand Rapids, Michigan, General Obligation Bonds, Series 9/17 at 100.00 AA 1,793,959
2007, 5.000%, 9/01/27 - NPFG Insured
2,000 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA- 2,011,460
Michigan, General Obligation Refunding Bonds, Series 2001,
5.125%, 5/01/29
1,400 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA- 1,476,300
Obligation Bonds, Series 2003, 5.000%, 5/01/21
1,065 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,115,225
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 2,037,536
Series 2006, 5.000%, 5/01/25 - FSA Insured
200 L'Anse Creuse Public Schools, Macomb County, Michigan, 5/15 at 100.00 AAA 201,754
General Obligation Bonds, Series 2005, 5.000%, 5/01/35 -
FSA Insured
2,505 Lincoln Consolidated School District, Washtenaw and Wayne 5/16 at 100.00 AA- 2,619,879
Counties, Michigan, General Obligation Bonds, Series 2006,
5.000%, 5/01/25 - NPFG Insured
2,810 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AA- 3,008,527
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - NPFG
Insured
865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 872,621
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 AA- 1,535,385
Obligation Bonds, Series 2007, 5.000%, 5/01/30 - SYNCORA
GTY Insured
2,100 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 2,250,234
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- 4,169,160
Program, Series 2003A, 5.250%, 5/01/20
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 100 Michigan, General Obligation Bonds, Environmental Protection 5/19 at 100.00 AA- $ 106,151
Program, Series 2009A, 5.500%, 11/01/25
2,500 Montrose School District, Michigan, School Building and Site No Opt. Call A1 2,999,850
Bonds, Series 1997, 6.000%, 5/01/22 - NPFG Insured
1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AA- 1,118,029
Wastewater Management System 2 Revenue Bonds, Series 2002,
5.000%, 7/01/26 - FGIC Insured
1,000 Oakland County Building Authority, Michigan, General 9/11 at 100.00 AAA 1,033,080
Obligation Bonds, Series 2002, 5.125%, 9/01/22
2,250 Oakland Intermediate School District, Oakland County, 5/17 at 100.00 AAA 2,288,543
Michigan, 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 AA- 1,684,767
Obligation Bonds, Series 2005, 5.000%, 5/01/22 - NPFG
Insured
Ottawa County, Michigan, Water Supply System, General
Obligation Bonds, Series 2007:
4,330 5.000%, 8/01/26 - NPFG Insured (UB) 8/17 at 100.00 Aa1 4,591,056
1,120 5.000%, 8/01/30 - NPFG Insured (UB) 8/17 at 100.00 Aa1 1,156,154
1,245 Parchment School District, Kalamazoo County, Michigan, 5/17 at 100.00 AAA 1,179,812
General Obligation Bonds, Tender Option Bond Trust 2836,
10.521%, 5/01/36 - FSA Insured (IF)
4,340 Plymouth-Canton Community School District, Wayne and 5/14 at 100.00 AA- 4,472,500
Washtenaw Counties, Michigan, General Obligation Bonds,
Series 2004, 5.000%, 5/01/26 - FGIC Insured
1,000 Rockford Public Schools, Kent County, Michigan, General 5/18 at 100.00 AAA 1,015,400
Obligation Bonds, Series 2008, 5.000%, 5/01/33 - FSA
Insured
200 South Haven, Van Buren County, Michigan, General Obligation 12/19 at 100.00 AAA 206,508
Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 -
AGC Insured
3,175 South Redford School District, Wayne County, Michigan, 5/15 at 100.00 AA- 3,234,341
General Obligation Bonds, School Building and Site, Series
2005, 5.000%, 5/01/30 - NPFG Insured
1,655 Southfield Library Building Authority, Michigan, General 5/15 at 100.00 AA+ 1,729,541
Obligation Bonds, Series 2005, 5.000%, 5/01/26 - NPFG
Insured
2,200 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AA- 2,236,278
General Obligation Bonds, Series 2007, 5.000%, 5/01/32 -
NPFG Insured
2,000 Trenton Public Schools District, Michigan, General Obligation 5/18 at 100.00 AAA 2,026,540
Bonds, Series 2008, 5.000%, 5/01/34 - FSA Insured
2,275 Troy City School District, Oakland County, Michigan, General 5/16 at 100.00 Aa2 2,481,456
Obligation Bonds, Series 2006, 5.000%, 5/01/19 - NPFG
Insured
Van Dyke Public Schools, Macomb County, Michigan, General
Obligation Bonds, School Building and Site, Series 2008:
310 5.000%, 5/01/31 - FSA Insured 5/18 at 100.00 AAA 316,538
575 5.000%, 5/01/38 - FSA Insured 5/18 at 100.00 AAA 580,198
5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 A 5,076,899
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/21 - NPFG
Insured
3,350 Wayne Westland Community Schools, Michigan, General 11/14 at 100.00 AAA 3,756,054
Obligation Bonds, Series 2004, 5.000%, 5/01/17 - FSA
Insured
1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call A1 2,004,209
Tax General Obligation QSBLF Bonds, Series 1996, 5.500%,
5/01/25 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
99,764 Total Tax Obligation/General 93,877,157
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.1% (10.6% OF TOTAL INVESTMENTS)
1,000 Grand Rapids Building Authority, Kent County, Michigan, No Opt. Call AA 1,112,340
Limited Tax General Obligation Bonds, Series 1998, 5.000%,
4/01/16
1,345 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AA 1,377,885
Limited Tax General Obligation Bonds, Series 2001, 5.125%,
10/01/26 - NPFG Insured
Michigan Building Authority, Revenue Bonds, Series 2006IA:
7,000 0.000%, 10/15/27 - FGIC Insured 10/16 at 58.27 AAA 2,327,220
6,200 0.000%, 10/15/28 - FGIC Insured 10/16 at 55.35 AAA 1,920,388
4,440 5.000%, 10/15/36 - FGIC Insured 10/16 at 100.00 A+ 4,212,539
Nuveen Investments 25
NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 30 Michigan Municipal Bond Authority, Local Government Loan 11/09 at 100.00 Aa3 $ 30,138
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 A+ 2,056,688
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 - NPFG Insured 10/13 at 100.00 A+ 5,139,371
5,000 5.000%, 10/15/23 - NPFG Insured 10/13 at 100.00 A+ 5,018,199
3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,732,190
5.250%, 10/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
35,750 Total Tax Obligation/Limited 26,926,958
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,000 Capital Region Airport Authority, Michigan, Revenue Refunding 7/12 at 100.00 A 978,810
Bonds, Series 2002, 5.250%, 7/01/21 - NPFG Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 30.5% (20.0% OF TOTAL INVESTMENTS) (4)
1,200 Birmingham, Michigan, General Obligation Bonds, Series 2002, 10/12 at 100.50 AAA 1,345,140
5.000%, 10/01/20 (Pre-refunded 10/01/12)
935 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 1,054,764
Revenue 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 A+ (4) 3,696,922
770 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 822,807
730 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 786,560
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2003A:
4,025 5.000%, 7/01/24 (Pre-refunded 7/01/13) - NPFG Insured 7/13 at 100.00 A+ (4) 4,527,763
1,500 5.000%, 7/01/25 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 A+ (4) 1,687,365
1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 Aaa 1,028,040
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) 1,120,480
Counties, Michigan, General Obligation Bonds, Series 2000,
5.250%, 5/01/19 (Pre-refunded 5/01/10)
2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AA- (4) 2,205,400
General Obligation Bonds, Series 2002, 5.000%, 5/01/24
(Pre-refunded 5/01/12)
1,790 Lansing Building Authority, Michigan, General Obligation 6/13 at 100.00 AA+ (4) 2,022,825
Bonds, Series 2003A, 5.000%, 6/01/26 (Pre-refunded
6/01/13) - MBIA Insured
3,880 Mayville Community Schools, Tuscola County, Michigan, General 11/14 at 100.00 AA- (4) 4,479,693
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) 269,453
Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM)
Michigan State Hospital Finance Authority, Hospital Revenue
Bonds, Ascension Health Credit Group, Series 1999A:
1,000 6.125%, 11/15/23 (Pre-refunded 11/15/09) - NPFG Insured 11/09 at 101.00 AAA 1,021,810
500 6.125%, 11/15/26 (Pre-refunded 11/15/09) 11/09 at 101.00 AAA 510,905
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 3,064,140
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) 1,712,910
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17 (Pre-refunded 3/01/13)
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A (4) 1,021,640
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 11/09 at 100.50 Aaa 3,487,161
Refunding Bonds, St. John's Health System, Series 1998A,
5.000%, 5/15/28 - AMBAC Insured (ETM)
Michigan State Hospital Finance Authority, Revenue Bonds,
Chelsea Community Hospital, Series 2005:
1,025 5.000%, 5/15/30 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 1,187,001
500 5.000%, 5/15/37 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 579,025
1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 5.000%, 11/11 at 100.00 AAA 1,088,920
11/01/25 (Pre-refunded 11/01/11) - FSA Insured
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,000 Michigan, Certificates of Participation, Series 2000, 5.500%, 6/10 at 100.00 A2 (4) $ 2,075,600
6/01/27 (Pre-refunded 6/01/10) - AMBAC Insured
700 Muskegon Heights, Muskegon County, Michigan, Water Supply 11/10 at 100.00 N/R (4) 741,853
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) 1,186,751
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) 103,799
915 6.000%, 8/01/26 (ETM) No Opt. Call AAA 1,117,371
4,100 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 Aaa 4,955,383
Transportation 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 AA- (4) 1,035,270
Counties, Michigan, General Obligation Bonds, Series
2000I, 5.750%, 5/01/19 (Pre-refunded 5/01/10) - FGIC
Insured
1,050 Warren Consolidated School District, Macomb and Oakland 11/11 at 100.00 AAA 1,151,084
Counties, Michigan, General Obligation Bonds, Series 2001,
5.375%, 5/01/19 (Pre-refunded 11/01/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
46,525 Total U.S. Guaranteed 51,087,835
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.3% (10.1% OF TOTAL INVESTMENTS)
Lansing Board of Water and Light, Michigan, Steam and Electric
Utility System Revenue Bonds, Series 2008A:
215 5.000%, 7/01/28 7/18 at 100.00 AA- 223,546
5,000 5.000%, 7/01/32 7/18 at 100.00 AA- 5,092,599
3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 A2 3,049,710
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 3,379,736
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 A 975,250
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured
(Alternative Minimum Tax)
4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A2 3,971,120
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 2001C, 5.450%, 9/01/29
2,050 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Baa1 2,064,350
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 A2 4,140,051
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 Baa1 2,690,400
Bonds, Detroit Edison Company, Series 2002C, 5.450%,
12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
25,120 Total Utilities 25,586,762
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.1% (7.3% OF TOTAL INVESTMENTS)
5,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 5,415,023
Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call A 1,489,140
Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
565 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 580,820
Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured
1,500 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 A+ 1,383,975
Bonds, Series 2003A, 5.000%, 7/01/25 - NPFG Insured
675 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 1/18 at 100.00 AA+ 686,455
Series 2008, 5.000%, 1/01/38
2,030 Grand Rapids, Michigan, Water Supply System Revenue Bonds, 1/19 at 100.00 AAA 2,064,551
Series 2009, 5.100%, 1/01/39 - AGC Insured
4,210 Michigan Municipal Bond Authority, Clean Water Revolving Fund 10/14 at 100.00 AAA 4,629,148
Revenue Bonds, Series 2004, 5.000%, 10/01/19
1,150 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 1,205,511
Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23
Nuveen Investments 27
NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,000 Michigan Municipal Bond Authority, Water Revolving Fund 10/17 at 100.00 AAA $ 1,067,390
Revenue Bonds, Series 2007, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
18,130 Total Water and Sewer 18,522,013
------------------------------------------------------------------------------------------------------------------------------------
$ 266,534 Total Investments (cost $248,338,339) - 152.2% 254,582,577
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.2%) (3,630,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 3,684,824
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.2)% (5) (87,325,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 167,312,401
==================================================================================================================
(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.
(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 34.3%.
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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
28 Nuveen Investments
NMP | Nuveen Michigan Premium Income Municipal Fund, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.3% (0.9% OF TOTAL INVESTMENTS)
$ 1,650 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 $ 1,450,845
Settlement Asset-Backed Revenue Bonds, Series 2008A,
6.875%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.1% (3.4% OF TOTAL INVESTMENTS)
2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AA 1,947,760
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured
(Alternative Minimum Tax)
3,500 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AA- 3,510,115
Series 1999, 5.125%, 11/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,500 Total Education and Civic Organizations 5,457,875
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 6.8% (4.5% OF TOTAL INVESTMENTS)
2,600 Michigan State Hospital Finance Authority, Hospital Revenue 4/13 at 100.00 A 2,303,392
Bonds, Oakwood Obligated Group, Series 2002A, 5.750%,
4/01/32
1,350 Michigan State Hospital Finance Authority, Hospital Revenue 6/19 at 100.00 AAA 1,392,404
Bonds, Mid-Michigan Obligated Group, Series 2009A, 5.875%,
6/01/39 - AGC Insured
Michigan State Hospital Finance Authority, Revenue Bonds,
Marquette General Hospital, Series 2005A:
1,005 5.000%, 5/15/26 5/15 at 100.00 Baa3 811,698
200 5.000%, 5/15/34 5/15 at 100.00 Baa3 143,514
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 2/10 at 100.00 BB- 1,905,020
500 6.500%, 8/15/18 2/10 at 100.00 BB- 440,290
250 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 286,808
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
7,905 Total Health Care 7,283,126
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.8% (4.5% OF TOTAL INVESTMENTS)
885 Michigan Housing Development Authority, GNMA Collateralized 4/12 at 102.00 Aaa 888,531
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 10/09 at 100.00 AAA 1,501,740
Revenue Bonds, Breton Village Green Project, Series 1993,
5.625%, 10/15/18 - FSA Insured
2,070 Michigan Housing Development Authority, Limited Obligation 10/09 at 100.00 AAA 2,073,416
Revenue Bonds, Walled Lake Villa Project, Series 1993,
6.000%, 4/15/18 - FSA Insured
800 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA 804,144
Revenue Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured
(Alternative Minimum Tax)
25 Michigan Housing Development Authority, Rental Housing 10/18 at 100.00 AA 25,478
Revenue Bonds, Series 2009A, 5.700%, 10/01/39
Mt. Clemens Housing Corporation, Michigan, FHA-Insured Section
8 Assisted Multifamily Housing Revenue Refunding Bonds,
Clinton Place Project, Series 1992A:
480 6.600%, 6/01/13 12/09 at 100.00 AAA 481,301
1,500 6.600%, 6/01/22 12/09 at 100.00 AAA 1,502,190
------------------------------------------------------------------------------------------------------------------------------------
7,260 Total Housing/Multifamily 7,276,800
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.3% (0.2% OF TOTAL INVESTMENTS)
465 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 330,880
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 978,621
Pollution Control Revenue Bonds, International Paper
Company, Series 2004A, 4.800%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29
NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 55.3% (37.0% OF TOTAL INVESTMENTS)
$ 1,475 Anchor Bay School District, Macomb and St. Clair Counties, 11/13 at 100.00 AA- $ 1,555,388
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- 2,602,325
Michigan, Unlimited Tax General Obligation Refunding
Bonds, Series 2001, 5.000%, 5/01/21
1,000 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ 1,029,700
Facilities Capital Improvement Series 2008, 5.000%, 5/01/38
100 Battle Creek School District, Calhoun County, Michigan, 5/17 at 100.00 AAA 100,881
General Obligation Bonds, Series 2007, 5.000%, 5/01/37 -
FSA Insured
2,250 Caledonia Community Schools, Kent, Allegan and Barry 5/15 at 100.00 AA- 2,332,913
Counties, Michigan, General Obligation Bonds, Series 2005,
5.000%, 5/01/26 - NPFG Insured
1,501 Caledonia Community Schools, Kent, Allegan and Barry 5/17 at 100.00 AA- 1,485,885
Counties, Michigan, General Obligation Bonds, Tender
Option Bond Trust 2008-1096, 7.559%, 5/01/32 - NPFG
Insured (IF)
Detroit City School District, Wayne County, Michigan, General
Obligation Bonds, Series 2002A:
1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AA- 1,924,953
750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AA- 791,640
2,500 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AA 2,415,750
Obligation Bonds, Series 2003B, 5.000%, 5/01/23 - FGIC
Insured
Detroit-Wayne County Stadium Authority, Michigan, Limited Tax
General Obligation Building Authority Stadium Bonds, Series
1997:
770 5.500%, 2/01/17 - FGIC Insured 11/09 at 100.00 A 770,131
6,990 5.250%, 2/01/27 - FGIC Insured 2/10 at 100.00 A 6,990,139
860 Grand Rapids, Michigan, General Obligation Bonds, Series 9/17 at 100.00 AA 921,241
2007, 5.000%, 9/01/24 - NPFG Insured
1,500 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA- 1,508,595
Michigan, General Obligation Refunding Bonds, Series 2001,
5.125%, 5/01/29
1,650 Holly Area School District, Oakland County, Michigan, General 5/16 at 100.00 AA- 1,685,937
Obligation Bonds, Series 2006, 5.125%, 5/01/32 - NPFG
Insured
2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA- 2,094,100
Obligation Bonds, Series 2003, 5.000%, 5/01/22
1,250 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 1,316,238
Series 2006, 5.000%, 5/01/25 - FSA Insured
500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA- 523,580
Obligation Bonds, Series 2004, 5.000%, 5/01/22
1,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AA- 1,070,650
Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - NPFG
Insured
865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 872,621
General Obligation Bonds, Series 2007, 5.000%, 5/01/37 -
FSA Insured
425 Marshall Public Schools, Calhoun County, Michigan, General 5/17 at 100.00 AA- 435,026
Obligation Bonds, Series 2007, 5.000%, 5/01/30 - SYNCORA
GTY Insured
1,000 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 1,071,540
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- 1,042,290
2,000 5.250%, 5/01/21 5/13 at 100.00 AA- 2,074,480
800 Michigan, General Obligation Bonds, Environmental Protection 5/19 at 100.00 AA- 849,208
Program, Series 2009A, 5.500%, 11/01/25
1,450 Oakland Intermediate School District, Oakland County, 5/17 at 100.00 AAA 1,474,839
Michigan, 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 Aa1 3,612,980
Obligation Bonds, Series 2007, 5.000%, 8/01/30 - NPFG
Insured (UB)
1,100 Oxford Area Community Schools, Oakland and Lapeer Counties, 5/14 at 100.00 AAA 1,142,405
Michigan, General Obligation Bonds, Series 2004, 5.000%,
5/01/25 - FSA Insured
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 805 Parchment School District, Kalamazoo County, Michigan, 5/17 at 100.00 AAA $ 762,850
General Obligation Bonds, Tender Option Bond Trust 2836,
10.521%, 5/01/36 - FSA Insured (IF)
1,000 Rockford Public Schools, Kent County, Michigan, General 5/15 at 100.00 AAA 1,032,780
Obligation Bonds, Series 2005, 5.000%, 5/01/27 - FSA
Insured
1,000 Rockford Public Schools, Kent County, Michigan, General 5/18 at 100.00 AAA 1,015,400
Obligation Bonds, Series 2008, 5.000%, 5/01/33 - FSA
Insured
125 South Haven, Van Buren County, Michigan, General Obligation 12/19 at 100.00 AAA 129,068
Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 -
AGC Insured
1,100 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AA- 1,118,139
General Obligation Bonds, Series 2007, 5.000%, 5/01/32 -
NPFG Insured
1,500 Trenton Public Schools District, Michigan, General Obligation 5/18 at 100.00 AAA 1,519,905
Bonds, Series 2008, 5.000%, 5/01/34 - FSA Insured
1,350 Van Dyke Public Schools, Macomb County, Michigan, General 5/18 at 100.00 AAA 1,362,204
Obligation Bonds, School Building and Site, Series 2008,
5.000%, 5/01/38 - FSA Insured
2,830 Warren Consolidated School District, Macomb and Oakland 5/13 at 100.00 AA- 2,946,738
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 - NPFG Insured 12/11 at 101.00 A 1,559,895
4,435 5.000%, 12/01/30 - NPFG Insured 12/11 at 101.00 A 4,321,375
------------------------------------------------------------------------------------------------------------------------------------
58,196 Total Tax Obligation/General 59,463,789
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.0% (14.1% OF TOTAL INVESTMENTS)
2,880 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 A+ 2,732,458
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+ 2,636,023
6,500 5.000%, 10/15/24 10/11 at 100.00 A+ 6,547,709
1,600 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 A+ 1,587,536
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 - NPFG Insured 10/13 at 100.00 A+ 5,038,599
2,480 5.000%, 10/15/23 - NPFG Insured 10/13 at 100.00 A+ 2,489,027
1,500 Michigan, Comprehensive Transportation Revenue Refunding 11/11 at 100.00 AAA 1,582,230
Bonds, Series 2001A, 5.000%, 11/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,530 Total Tax Obligation/Limited 22,613,582
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.2% (0.1% OF TOTAL INVESTMENTS)
230 Kent County, Michigan, Airport Revenue Bonds, Gerald R. Ford 1/17 at 100.00 AAA 235,371
International Airport, Series 2007, 5.000%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.3% (12.9% OF TOTAL INVESTMENTS) (4)
915 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 A (4) 1,059,671
Revenue Bonds, Series 2005A, 5.000%, 7/01/30 (Pre-refunded
7/01/15) - MBIA Insured
1,385 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 A+ (4) 1,479,983
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 2,056,080
Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) -
FGIC Insured
500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA- (4) 571,825
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) 80,836
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) 1,580,595
Program, Series 2000I, 5.375%, 10/15/20 (Pre-refunded
10/15/10)
Nuveen Investments 31
NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,500 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA $ 2,554,525
Bonds, Ascension Health Credit Group, Series 1999A,
6.125%, 11/15/26 (Pre-refunded 11/15/09)
3,075 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 3,140,744
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) 1,712,910
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17 (Pre-refunded 3/01/13)
500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A+ (4) 556,080
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31 (Pre-refunded 11/15/11)
2,465 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 100.00 N/R (4) 2,471,606
Refunding Bonds, St. John's Hospital, Series 1993A,
6.000%, 5/15/13 - AMBAC Insured (ETM)
Michigan State Hospital Finance Authority, Revenue Bonds,
Chelsea Community Hospital, Series 2005:
425 5.000%, 5/15/25 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 492,171
150 5.000%, 5/15/30 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 173,708
1,000 Otsego Public Schools District, Allegan and Kalamazoo 5/14 at 100.00 AAA 1,143,650
Counties, Michigan, General Obligation Bonds, Series 2004,
5.000%, 5/01/25 (Pre-refunded 5/01/14) - FSA Insured
1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AA- (4) 1,645,590
Michigan, General Obligation Bonds, Series 2004, 5.250%,
5/01/20 (Pre-refunded 5/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,415 Total U.S. Guaranteed 20,719,974
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.2% (10.2% OF TOTAL INVESTMENTS)
Lansing Board of Water and Light, Michigan, Steam and Electric
Utility System Revenue Bonds, Series 2008A:
125 5.000%, 7/01/28 7/18 at 100.00 AA- 129,969
2,500 5.000%, 7/01/32 7/18 at 100.00 AA- 2,546,300
1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 A2 1,016,570
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 969,382
Revenue Bonds, Series 2000, 6.000%, 5/01/12
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 A 975,250
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured
(Alternative Minimum Tax)
5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A2 4,963,899
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 Baa1 3,021,000
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 Baa1 2,690,400
Bonds, Detroit Edison Company, Series 2002C, 5.450%,
12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
16,550 Total Utilities 16,312,770
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.4% (11.6% OF TOTAL INVESTMENTS)
3,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 3,445,925
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 A 992,992
Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - NPFG Insured
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call A 1,489,140
Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
1,120 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 1,151,360
Revenue 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 AA+ 1,359,593
Series 2005, 5.000%, 1/01/30 - NPFG Insured
450 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 1/18 at 100.00 AA+ 457,637
Series 2008, 5.000%, 1/01/38
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 425 Grand Rapids, Michigan, Water Supply System Revenue Bonds, 1/19 at 100.00 AAA $ 432,234
Series 2009, 5.100%, 1/01/39 - AGC Insured
1,000 Michigan Municipal Bond Authority, Water Revolving Fund 10/17 at 100.00 AAA 1,067,390
Revenue Bonds, Series 2007, 5.000%, 10/01/24
8,245 North Kent Sewer Authority, Michigan, Sewer Revenue Bonds, 11/16 at 100.00 A+ 8,288,776
Series 2006, 5.000%, 11/01/31 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
18,655 Total Water and Sewer 18,685,047
------------------------------------------------------------------------------------------------------------------------------------
$ 159,406 Total Investments (cost $159,346,389) - 149.6% 160,808,680
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.2)% (2,330,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 2,741,640
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (5) (53,700,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 107,520,320
==================================================================================================================
(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.
(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 33.4%.
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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 33
NZW | Nuveen Michigan Dividend Advantage Municipal Fund
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.2% (0.8% OF TOTAL INVESTMENTS)
$ 400 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 $ 351,720
Settlement Asset-Backed Revenue Bonds, Series 2008A,
6.875%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.9% (4.0% OF TOTAL INVESTMENTS)
500 Concord Academy, Boyne City, Michigan, Certificates of 11/17 at 100.00 N/R 378,365
Participation, Series 2007, 5.450%, 11/01/22
1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 N/R 1,142,192
Obligation Revenue Refunding Bonds, Kettering University,
Series 2001, 5.000%, 9/01/26 - AMBAC Insured
250 Michigan Public Educational Facilities Authority, Charter 12/17 at 100.00 N/R 183,235
School Revenue Bonds, American Montessori Academy, Series
2007, 6.500%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
1,900 Total Education and Civic Organizations 1,703,792
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.9% (9.3% OF TOTAL INVESTMENTS)
500 Garden City Hospital Finance Authority, Michigan, Revenue 8/17 at 100.00 N/R 259,720
Bonds, Garden City Hospital Obligated Group, Series 2007A,
5.000%, 8/15/38
725 Michigan State Hospital Finance Authority, Hospital Revenue 4/13 at 100.00 A 642,292
Bonds, Oakwood Obligated Group, Series 2002A, 5.750%,
4/01/32
150 Michigan State Hospital Finance Authority, Hospital Revenue 6/19 at 100.00 AAA 154,712
Bonds, Mid-Michigan Obligated Group, Series 2009A, 5.875%,
6/01/39 - AGC Insured
610 Michigan State Hospital Finance Authority, Hospital Revenue 1/10 at 100.00 BB 558,784
Refunding Bonds, Sinai Hospital, Series 1995, 6.625%,
1/01/16
Michigan State Hospital Finance Authority, Revenue Bonds,
Marquette General Hospital, Series 2005A:
400 5.000%, 5/15/26 5/15 at 100.00 Baa3 323,064
400 5.000%, 5/15/34 5/15 at 100.00 Baa3 287,028
100 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 114,723
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 A1 1,639,476
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
4,685 Total Health Care 3,979,799
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.0% (4.7% OF TOTAL INVESTMENTS)
1,700 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 1,709,520
Limited Obligation Multifamily Housing Revenue Bonds,
Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31
(Alternative Minimum Tax)
200 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA 201,036
Revenue Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured
(Alternative Minimum Tax)
100 Michigan Housing Development Authority, Rental Housing 10/18 at 100.00 AA 101,911
Revenue Bonds, Series 2009A, 5.700%, 10/01/39
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Housing/Multifamily 2,012,467
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.7% (1.1% OF TOTAL INVESTMENTS)
500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB 475,060
Republic Services Inc., Series 2001, 4.250%, 8/01/31
(Mandatory put 4/01/14) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.8% (0.6% OF TOTAL INVESTMENTS)
335 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 238,376
Presbyterian Villages of Michigan Obligated Group, Series
2005, 5.250%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 49.6% (33.1% OF TOTAL INVESTMENTS)
$ 200 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ $ 205,940
Facilities Capital Improvement Series 2008, 5.000%, 5/01/38
437 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/17 at 100.00 AA- 432,599
Michigan, General Obligation Bonds, Tender Option Bond
Trust 2008-1096, 7.559%, 5/01/32 - NPFG Insured (IF)
50 Detroit-Wayne County Stadium Authority, Michigan, Limited Tax 2/10 at 100.00 A 50,009
General Obligation Building Authority Stadium Bonds, Series
1997, 5.500%, 2/01/17 - FGIC Insured
300 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AA 316,581
5.000%, 9/01/27 - NPFG Insured
940 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA- 960,445
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 523,580
Obligation School Building and Site Bonds, Series 2004,
5.000%, 5/01/22 - FSA Insured
430 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 433,788
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 428,616
Detroit City School District, Series 2005, 5.000%, 6/01/18
- FSA Insured
100 Michigan, General Obligation Bonds, Environmental Protection 5/19 at 100.00 AA- 106,151
Program, Series 2009A, 5.500%, 11/01/25
1,150 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AA- 1,168,849
Wastewater Management System 2 Revenue Bonds, Series 2002,
5.000%, 7/01/26 - FGIC Insured
1,410 New Haven Community Schools, Macomb County, Michigan, General 5/16 at 100.00 AAA 1,474,663
Obligation Bonds, Series 2006, 5.000%, 5/01/25 - FSA
Insured
400 Oakland Intermediate School District, Oakland County, 5/17 at 100.00 AAA 406,852
Michigan, 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 Aa1 1,032,280
Obligation Bonds, Series 2007, 5.000%, 8/01/30 - NPFG
Insured (UB)
235 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 222,695
Obligation Bonds, Tender Option Bond Trust 2836, 10.521%,
5/01/36 - FSA Insured (IF)
750 Plainwell Community Schools, Allegan County, Michigan, General 5/18 at 100.00 AAA 780,443
Obligation Bonds, School Building & Site, Series 2008,
5.000%, 5/01/28 - AGC Insured
100 Rockford Public Schools, Kent County, Michigan, General 5/18 at 100.00 AAA 101,540
Obligation Bonds, Series 2008, 5.000%, 5/01/33 - FSA
Insured
25 South Haven, Van Buren County, Michigan, General Obligation 12/19 at 100.00 AAA 25,814
Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 -
AGC Insured
330 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AA- 335,442
General Obligation Bonds, Series 2007, 5.000%, 5/01/32 -
NPFG Insured
100 Trenton Public Schools District, Michigan, General Obligation 5/18 at 100.00 AAA 101,327
Bonds, Series 2008, 5.000%, 5/01/34 - FSA Insured
225 Van Dyke Public Schools, Macomb County, Michigan, General 5/18 at 100.00 AAA 227,034
Obligation Bonds, School Building and Site, Series 2008,
5.000%, 5/01/38 - FSA Insured
Washtenaw County, Michigan, Limited Tax General Obligation
Bonds, Sylvan Township Water and Wastewater System, Series
2001:
500 5.000%, 5/01/19 - NPFG Insured 11/09 at 100.50 AA+ 505,100
800 5.000%, 5/01/20 - NPFG Insured 11/09 at 100.50 AA+ 808,160
1,690 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 A 1,646,702
Hotel Revenue Bonds, Detroit Metropolitan Wayne County
Airport, Series 2001A, 5.000%, 12/01/30 - NPFG Insured
500 Wayne Westland Community Schools, Michigan, General Obligation 11/14 at 100.00 AAA 560,605
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- 1,353,209
General Obligation Bonds, Series 2001, 5.000%, 5/01/21
------------------------------------------------------------------------------------------------------------------------------------
13,872 Total Tax Obligation/General 14,208,424
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 35
NZW | Nuveen Michigan Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.8% (9.9% OF TOTAL INVESTMENTS)
$ 1,100 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AA $ 1,126,895
Limited Tax General Obligation Bonds, Series 2001, 5.125%,
10/01/26 - NPFG Insured
770 Kalkaska County Hospital Authority, Michigan, Hospital Revenue No Opt. Call N/R 754,485
Bonds, Series 2007, 5.125%, 5/01/14
Michigan Building Authority, Revenue Bonds, Series 2006IA:
1,520 0.000%, 10/15/28 - FGIC Insured 10/16 at 55.35 AAA 470,805
720 5.000%, 10/15/36 - FGIC Insured 10/16 at 100.00 A+ 683,114
1,205 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ 1,213,845
Program, Series 2001I, 5.000%, 10/15/24
------------------------------------------------------------------------------------------------------------------------------------
5,315 Total Tax Obligation/Limited 4,249,144
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.2% (14.2% OF TOTAL INVESTMENTS) (4)
1,000 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 1,112,720
Unlimited 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 7/13 at 100.00 AAA 812,225
Revenue 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) 1,070,230
Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26
(Pre-refunded 5/01/11)
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 1,088,770
Spectrum Health, Series 2001A, 5.250%, 1/15/21
(Pre-refunded 7/15/11)
Michigan State Hospital Finance Authority, Revenue Bonds,
Chelsea Community Hospital, Series 2005:
425 5.000%, 5/15/30 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 492,171
335 5.000%, 5/15/37 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 387,947
Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Bonds, Series 2002E:
85 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 103,799
615 6.000%, 8/01/26 (ETM) No Opt. Call AAA 751,020
250 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AA (4) 263,568
Obligation Bonds, Series 2001, 5.150%, 11/01/22
(Pre-refunded 11/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,430 Total U.S. Guaranteed 6,082,450
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 18.9% (12.6% OF TOTAL INVESTMENTS)
1,115 Lansing Board of Water and Light, Michigan, Steam and Electric 7/13 at 100.00 AAA 1,160,436
Utility System Revenue Bonds, Series 2003A, 5.000%, 7/01/21
- FSA Insured
Lansing Board of Water and Light, Michigan, Steam and Electric
Utility System Revenue Bonds, Series 2008A:
50 5.000%, 7/01/28 7/18 at 100.00 AA- 51,988
750 5.000%, 7/01/32 7/18 at 100.00 AA- 763,890
1,235 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 A2 1,241,360
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 A- 2,186,291
Pollution Control Revenue Refunding Bonds, Fixed Rate
Conversion, Detroit Edison Company, Series 1999C, 5.650%,
9/01/29 - SYNCORA GTY Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,365 Total Utilities 5,403,965
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.5% (9.7% OF TOTAL INVESTMENTS)
1,000 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 984,550
Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured
1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call A 992,760
Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
280 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 287,840
Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured
125 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 1/18 at 100.00 AA+ 127,121
Series 2008, 5.000%, 1/01/38
150 Grand Rapids, Michigan, Water Supply System Revenue Bonds, 1/19 at 100.00 AAA 152,553
Series 2009, 5.100%, 1/01/39 - AGCInsured
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,000 Michigan Municipal Bond Authority, Clean Water Revolving Fund 10/15 at 100.00 AAA $ 1,081,240
Revenue Bonds, Series 2005, 5.000%, 10/01/19
500 Michigan Municipal Bond Authority, Water Revolving Fund 10/17 at 100.00 AAA 536,300
Revenue Bonds, Series 2007, 5.000%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
4,055 Total Water and Sewer 4,162,364
------------------------------------------------------------------------------------------------------------------------------------
$ 43,857 Total Investments (cost $42,705,638) - 149.5% 42,867,561
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.3)% (665,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 747,932
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.8)% (5) (14,275,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 28,675,493
==================================================================================================================
(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.
(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 33.3%.
N/R Not rated.
(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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 37
NUO | Nuveen Ohio Quality Income Municipal Fund, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.7% (5.2% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
$ 4,735 5.875%, 6/01/30 6/17 at 100.00 BBB $ 4,014,380
1,650 5.750%, 6/01/34 6/17 at 100.00 BBB 1,310,001
8,450 5.875%, 6/01/47 6/17 at 100.00 BBB 6,232,804
120 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 114,953
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
14,955 Total Consumer Staples 11,672,138
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.1% (10.2% OF TOTAL INVESTMENTS)
1,650 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 1,621,488
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 1,839,933
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 836,270
Wittenberg University, Series 2005, 5.000%, 12/01/29
2,420 Ohio Higher Educational Facilities Commission, General 12/16 at 100.00 A 2,452,113
Revenue 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 1,475,548
Denison University, Series 2004, 5.000%, 11/01/21
1,320 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/14 at 100.00 A 1,338,757
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 1,003,890
Wittenberg University, Series 2001, 5.500%, 12/01/15
1,500 Ohio State Higher Education Facilities, Revenue Bonds, Case 12/16 at 100.00 AA- 1,530,045
Western Reserve University, Series 2006, 5.000%, 12/01/44
- NPFG Insured
1,200 Ohio State University, General Receipts Bonds, Series 2002A, 12/12 at 100.00 AA 1,214,760
5.125%, 12/01/31
3,000 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 3,207,870
5.250%, 6/01/22
1,510 University of Akron, Ohio, General Receipts Bonds, Series 1/13 at 100.00 A2 1,575,096
2003A, 5.000%, 1/01/21 - AMBAC Insured
850 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 A+ 872,687
Series 2003C, 5.000%, 6/01/22 - FGIC Insured
University of Cincinnati, Ohio, General Receipts Bonds,
Series 2004D:
1,200 5.000%, 6/01/19 - AMBAC Insured 6/14 at 100.00 A+ 1,258,200
2,605 5.000%, 6/01/25 - AMBAC Insured 6/14 at 100.00 A+ 2,658,845
------------------------------------------------------------------------------------------------------------------------------------
22,420 Total Education and Civic Organizations 22,885,502
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 20.2% (13.7% OF TOTAL INVESTMENTS)
2,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 1,880,060
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.375%, 11/15/24
3,405 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 2,877,770
Cincinnati Children's Medical Center Project, Series
2006K, 5.000%, 5/15/31 - FGIC Insured
1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/10 at 100.00 A 1,000,420
Improvement Bonds, MetroHealth System, Series 1997,
5.625%, 2/15/17 - NPFG Insured
2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 Aa2 2,097,940
Clinic Health System, Series 2003A, 6.000%, 1/01/32
4,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 3,834,360
Firelands Regional Medical Center, Series 2002A, 5.625%,
8/15/32
1,000 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 932,810
Children's Hospital Project, Series 2005, 5.000%, 11/01/40
2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital 5/14 at 100.00 A 2,518,830
Medical Center, Series 2004J, 5.250%, 5/15/16 - FGIC
Insured
785 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 727,200
Bonds, Upper Valley Medical Center Inc., Series 2006,
5.250%, 5/15/21
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
Montgomery County, Ohio, Revenue Bonds, Catholic Health
Initiatives, Series 2004A:
$ 1,500 5.000%, 5/01/30 5/14 at 100.00 AA $ 1,503,615
2,500 5.000%, 5/01/32 No Opt. Call AA 2,476,400
1,350 Montgomery County, Ohio, Revenue Bonds, Miami Valley 11/14 at 100.00 Aa3 1,385,951
Hospital, Series 2009A, 6.250%, 11/15/39
1,315 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 1,368,534
Cleveland Clinic Health System Obligated Group, Series
2008A, 5.000%, 1/01/25
1,000 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 1,039,020
Revenue Bonds, University Hospitals Health System, Series
2009, 6.750%, 1/15/39
2,700 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 AA- 2,809,188
Cleveland Clinic Health System Obligated Group, Tender
Option Bond Trust 3551, 19.787%, 1/01/39 (IF)
830 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 841,031
Improvement 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- 1,055,208
Health System Group, Series 2006, 5.250%, 11/15/36
600 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 608,100
Health System Series 2008, 5.750%, 12/01/35
1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 Baa1 1,706,125
Union Hospital Project, Series 2001, 5.750%, 10/01/21 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
31,845 Total Health Care 30,662,562
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.5% (4.4% OF TOTAL INVESTMENTS)
1,385 Clermont County, Ohio, GNMA Collateralized Mortgage Revenue 2/10 at 100.00 Aaa 1,385,970
Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30
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 2,514,724
2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,252,183
985 Franklin County, Ohio, FHA-Insured Multifamily Housing 1/10 at 100.00 Aa2 985,207
Mortgage 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 802,408
Revenue Bonds, Canterbury Court Project, Series 2007,
5.500%, 10/20/42 (Alternative Minimum Tax)
850 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 755,166
Mortgage Revenue Bonds, Madonna Homes, Series 2006M,
4.900%, 6/20/48 (Alternative Minimum Tax)
1,200 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 1,151,232
Revenue Bonds, Callis Tower Apartments Project, Series
2007, 5.250%, 9/20/47 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,945 Total Housing/Multifamily 9,846,890
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,240 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 9/09 at 101.00 Aaa 1,242,034
Program Residential Mortgage Revenue Bonds, Series 1997B,
5.400%, 9/01/29 (Alternative Minimum Tax)
745 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 9/09 at 100.75 Aaa 740,038
Program Residential Mortgage Revenue Bonds, Series
1998A-1, 5.300%, 9/01/19 - FSA Insured (Alternative
Minimum Tax)
1,995 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 1,900,377
Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,980 Total Housing/Single Family 3,882,449
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.2% (1.5% OF TOTAL INVESTMENTS)
840 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R 687,481
Revenue Bonds, Bond Fund Program - Columbia National Group
Project, Series 2005D, 5.000%, 5/15/20 (Alternative
Minimum Tax)
1,360 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/09 at 101.00 N/R 1,183,404
Revenue Bonds, Jergens Inc., Series 1998A, 5.375%, 5/15/18
(Alternative Minimum Tax)
1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/10 at 100.00 AA- 1,507,275
Emery Air Freight Corporation and Emery Worldwide Airlines
Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
3,700 Total Industrials 3,378,160
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 39
NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 2,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, No Opt. Call A $ 2,093,000
Cargill Inc., Series 2004B, 4.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 39.7% (26.8% OF TOTAL INVESTMENTS)
Butler County, Ohio, General Obligation Bonds, Series 2002:
1,345 5.000%, 12/01/21 - NPFG Insured 12/12 at 100.00 Aa2 1,454,147
1,200 5.000%, 12/01/22 - NPFG Insured 12/12 at 101.00 Aa2 1,270,452
1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aa2 1,562,190
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 1,109,620
Series 2004A, 5.000%, 12/01/15 - AMBAC Insured
2,600 Cincinnati City School District, Hamilton County, Ohio, 12/12 at 100.00 AAA 2,727,972
General 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 1,035,110
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+ 1,288,260
5.000%, 12/01/21
1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 5.250%, 6/14 at 100.00 AA- 1,102,130
12/01/19 - AMBAC Insured
1,000 Dublin City School District, Franklin, Delaware and Union 12/13 at 100.00 AAA 1,062,770
Counties, Ohio, General Obligation Bonds, Series 2003,
5.000%, 12/01/22 - FSA Insured
1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aaa 1,022,290
Bonds, Series 2000A, 5.000%, 12/01/20
1,195 Fairview Park City School District, Cuyahoga County, Ohio, 6/15 at 100.00 A2 1,233,443
General Obligation Bonds, Series 2005, 5.000%, 12/01/24 -
NPFG Insured
1,840 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,980,153
5.000%, 12/01/28
1,500 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 1,574,985
12/01/32
1,355 Grove City, Ohio, General Obligation Bonds, Construction & No Opt. Call Aa2 1,400,203
Improvement Series 2009, 5.125%, 12/01/36
7,020 Hamilton City School District, Ohio, General Obligation 6/17 at 100.00 AAA 7,279,596
Bonds, Series 2007, 5.000%, 12/01/34 - FSA Insured
1,850 Hilliard School District, Franklin County, Ohio, General 12/15 at 100.00 Aa2 1,943,999
Obligation Bonds, School Construction, Series 2005,
5.000%, 12/01/26 - NPFG Insured
3,000 Hilliard School District, Franklin County, Ohio, General 12/16 at 100.00 AA 3,189,150
Obligation Bonds, Series 2006A, 5.000%, 12/01/25 - NPFG
Insured
2,580 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 2,568,803
Counties, Ohio, School Facilities Improvement and
Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG
Insured
1,160 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aa3 1,220,587
Obligation Bonds, Series 2003, 5.000%, 12/01/22 - NPFG
Insured
800 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 852,280
Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC
Insured
2,000 Louisville City School District, Ohio, General Obligation 12/11 at 100.00 A3 1,974,780
Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured
505 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 530,119
General Obligation Bonds, Series 2006, 5.000%, 12/01/25 -
FSA Insured
500 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 523,500
Ohio, General Obligation Bonds, Series 2007, 5.000%,
12/01/31
1,515 Massillon City School District, Ohio, General Obligation 12/12 at 100.00 Baa1 1,644,108
Bonds, Series 2003, 5.250%, 12/01/21 - NPFG Insured
1,350 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 1,381,671
Obligation Bonds, Series 2008, 5.250%, 12/01/36
640 New Albany Plain Local School District, Franklin County, 6/12 at 100.00 Aa2 693,856
Ohio, 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 A 1,016,550
Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FGIC
Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 $ 1,020,580
Obligation School Facilities Construction and Improvement
Bonds, Series 2008, 5.000%, 11/01/36
3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, 2/13 at 100.00 AA+ 3,129,570
Series 2003F, 5.000%, 2/01/23
1,510 Painesville City School District, Ohio, General Obligation 12/14 at 100.00 A 1,586,829
Bonds, Series 2004, 5.000%, 12/01/22 - FGIC Insured
280 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aa2 298,542
Ohio, General Obligation Bonds, Series 2000, 6.000%,
12/01/20 - FGIC Insured
1,445 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA 1,470,129
5.000%, 12/01/27 - FGIC Insured
2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aa1 2,114,340
5.000%, 12/01/21 - FGIC Insured
70 Strongsville, Ohio, Limited Tax General Obligation Various 12/09 at 100.00 Aa1 70,284
Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21
100 Sylvania City School District, Ohio, General Obligation 6/17 at 100.00 AAA 103,203
School Improvement Bonds, Series 1995, 5.250%, 12/01/36 -
AGC Insured
650 Vandalia Butler City School District, Montgomery County, No Opt. Call AA 667,316
Ohio, General Obligation Bonds, School Improvement Series
2009, 5.125%, 12/01/37
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 AA 2,725,355
1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AA 1,238,983
1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aa1 1,018,690
Obligation Bonds, Series 2003, 5.000%, 12/01/28 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
57,395 Total Tax Obligation/General 60,086,545
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.0% (10.1% OF TOTAL INVESTMENTS)
1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 BBB+ 1,387,424
Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured
3,000 Franklin County, Ohio, Excise Tax and Lease Revenue 12/15 at 100.00 Aaa 3,167,670
Anticipation Bonds, Convention Facilities Authority,
Series 2005, 5.000%, 12/01/27 - AMBAC Insured
1,085 Hamilton County Convention Facilities Authority, Ohio, First 6/14 at 100.00 A+ 1,152,617
Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 - FGIC
Insured
4,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 4,613,523
Series 2006, 5.000%, 12/01/32 - AMBAC Insured
1,000 Hudson City School District, Ohio, Certificates of 6/14 at 100.00 A1 1,007,910
Participation, Series 2004, 5.000%, 6/01/26 - NPFG 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 A2 1,030,160
1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 A2 1,017,380
800 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 832,864
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
2,645 Ohio State Building Authority, State Facilities Bonds, Adult 4/14 at 100.00 AA 2,958,697
Correctional Building Fund Project, Series 2004A, 5.250%,
4/01/15 - NPFG Insured
1,000 Ohio, State Appropriation Lease Bonds, Mental Health Capital 6/13 at 100.00 AA 1,101,890
Facilities, Series 2003B-II, 5.000%, 6/01/16
23,215 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 4,450,779
Revenue Bonds, First Subordinate Series 2009A, 0.000%,
8/01/34
------------------------------------------------------------------------------------------------------------------------------------
40,725 Total Tax Obligation/Limited 22,720,914
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.3% (2.2% OF TOTAL INVESTMENTS)
3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 A- 2,598,060
International Airport, Series 2003C, 5.250%, 12/01/23 -
RAAI Insured (Alternative Minimum Tax)
2,000 Ohio Turnpike Commission, Revenue Refunding Bonds, Series No Opt. Call AA 2,334,360
1998A, 5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Transportation 4,932,420
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 41
NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 20.8% (14.1% OF TOTAL INVESTMENTS) (4)
$ 2,030 Butler County, Ohio, General Obligation Judgment Bonds, 12/12 at 101.00 Aa2 (4) $ 2,307,623
Series 2002, 5.250%, 12/01/21 (Pre-refunded 12/01/12)
1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox No Opt. Call A- (4) 1,154,600
International Airport, Series 2005B, 5.000%, 12/01/14 -
SYNCORA GTY Insured (ETM)
2,000 Garfield Heights City School District, Cuyahoga County, Ohio, 12/11 at 100.00 N/R (4) 2,186,860
General Obligation School Improvement Bonds, Series 2001,
5.000%, 12/15/26 (Pre-refunded 12/15/11) - MBIA Insured
1,500 Hamilton County, Ohio, Sewer System Revenue and Improvement 6/10 at 101.00 AA+ (4) 1,574,925
Bonds, Metropolitan Sewer District of Greater Cincinnati,
Series 2000A, 5.750%, 12/01/25 (Pre-refunded 6/01/10) -
MBIA Insured
1,000 Hilliard School District, Ohio, General Obligation School 12/10 at 101.00 AA (4) 1,074,980
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 Aa1 (4) 2,151,120
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 N/R (4) 865,336
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) 3,139,980
Kettering Medical Center, Series 1999, 6.750%, 4/01/18
(Pre-refunded 4/01/10)
1,260 Morgan Local School District, Morgan, Muskingum and 12/10 at 101.00 AA (4) 1,355,130
Washington Counties, Ohio, Unlimited Tax General
Obligation School Improvement Bonds, Series 2000, 5.750%,
12/01/22 (Pre-refunded 12/01/10)
460 New Albany Plain Local School District, Franklin County, 6/12 at 100.00 Aa2 (4) 514,832
Ohio, General Obligation Bonds, Series 2002, 5.500%,
12/01/17 (Pre-refunded 6/01/12) - FGIC Insured
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 AA+ (4) 1,514,341
3,380 5.250%, 12/01/24 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AA+ (4) 3,892,374
1,000 Princeton City School District, Butler County, Ohio, General 12/13 at 100.00 AAA 1,141,700
Obligation Bonds, Series 2003, 5.000%, 12/01/30
(Pre-refunded 12/01/13) - MBIA Insured
1,670 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- (4) 1,798,857
Improvement 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) 3,106,095
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 N/R (4) 1,595,670
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 6/11 at 100.00 AA- (4) 2,146,780
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,705 Total U.S. Guaranteed 31,521,203
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.3% (6.9% OF TOTAL INVESTMENTS)
2,500 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 2,478,125
Series 2008, 5.250%, 2/15/43
4,000 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 A2 4,079,839
System Improvement Revenue Bonds, Series 2002, 5.000%,
2/15/22 - NPFG Insured
Cleveland, Ohio, Public Power System Revenue Bonds, Series
2008B:
2,105 0.000%, 11/15/32 - NPFG Insured No Opt. Call A 601,441
2,155 0.000%, 11/15/34 - NPFG Insured No Opt. Call A 543,836
3,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG 10/09 at 100.00 N/R 2,571,600
Funding Limited Partnership Project, Series 1997, 5.625%,
1/01/23 - AMBAC Insured (Alternative Minimum Tax)
800 Ohio Municipal Electric Generation Agency, Beneficial No Opt. Call A1 252,216
Interest Certificates, Belleville Hydroelectric Project -
Joint Venture 5, Series 2001, 0.000%, 2/15/29 - NPFG
Insured
2,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 A1 1,992,700
Interest Certificates, Belleville Hydroelectric Project -
Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC
Insured
3,700 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 101.00 N/R 3,038,847
Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%,
9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
20,260 Total Utilities 15,558,604
------------------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.5% (2.3% OF TOTAL INVESTMENTS)
$ 430 City of Marysville, Ohio, Water System Mortgage Revenue 12/17 at 100.00 A3 $ 424,148
Bonds, Series 2007, 5.000%, 12/01/32 - AMBAC Insured
1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding No Opt. Call Aa2 1,133,600
and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 -
NPFG Insured
40 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding 1/10 at 100.00 Aa2 40,052
and Improvement Bonds, Series 1996H, 5.750%, 1/01/26 -
NPFG Insured
1,220 Hamilton, Ohio, Wastewater System Revenue Bonds, Series 2005, 10/15 at 100.00 Aa3 1,298,056
5.250%, 10/01/22 - FSA Insured
200 Marysville, Ohio, Wastewater Treatment System Revenue Bonds, 12/17 at 100.00 A- 186,812
Series 2007, 5.000%, 12/01/37 - SYNCORA GTY Insured
525 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 562,606
Water Assistance Fund, State Match, Series 2008, 5.000%,
6/01/28 - FSA Insured
1,500 Ohio Water Development Authority, Water Pollution Control 6/15 at 100.00 AAA 1,604,580
Loan Fund Revenue Bonds, Water Quality Project, Series
2005B, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
4,915 Total Water and Sewer 5,249,854
------------------------------------------------------------------------------------------------------------------------------------
$ 245,845 Total Investments (cost $220,429,924) - 148.3% 224,490,241
===============---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 3,886,950
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.9)% (5) (77,000,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 151,377,191
==================================================================================================================
(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.
(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 34.3%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
Nuveen Investments 43
NXI | Nuveen Ohio Dividend Advantage Municipal Fund
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.8% (4.0% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
$ 1,320 5.875%, 6/01/30 6/17 at 100.00 BBB $ 1,119,109
3,375 5.875%, 6/01/47 6/17 at 100.00 BBB 2,489,434
45 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 43,107
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
4,740 Total Consumer Staples 3,651,650
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.2% (6.2% OF TOTAL INVESTMENTS)
700 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 687,904
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 2,671,518
Ohio Northern University, Series 2002, 5.000%, 5/01/22
500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 441,770
Wittenberg University, Series 2005, 5.000%, 12/01/24
1,760 Ohio University at Athens, Subordinate Lien General Receipts 6/14 at 100.00 A+ 1,915,496
Bonds, Series 2004, 5.000%, 12/01/20 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
5,610 Total Education and Civic Organizations 5,716,688
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.6% (11.2% OF TOTAL INVESTMENTS)
1,385 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 1,170,547
Cincinnati 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 Aa2 1,153,867
Clinic Health System, Series 2003A, 6.000%, 1/01/32
500 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 466,405
Children's Hospital Project, Series 2005, 5.000%, 11/01/40
1,950 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 N/R 1,954,856
Healthcare Obligated Group, Series 1999, 5.375%, 11/15/29
- AMBAC Insured
330 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 305,702
Bonds, Upper Valley Medical Center Inc., Series 2006,
5.250%, 5/15/21
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 1,002,410
Initiatives, Series 2004A, 5.000%, 5/01/30
375 Montgomery County, Ohio, Revenue Bonds, Miami Valley 11/14 at 100.00 Aa3 384,986
Hospital, Series 2009A, 6.250%, 11/15/39
1,050 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 1,092,746
Cleveland Clinic Health System Obligated Group, Series
2008A, 5.000%, 1/01/25
250 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 259,755
Revenue Bonds, University Hospitals Health System, Series
2009, 6.750%, 1/15/39
1,350 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 AA- 1,404,594
Cleveland Clinic Health System Obligated Group, Tender
Option Bond Trust 3551, 19.787%, 1/01/39 (IF)
335 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 339,452
Improvement 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- 439,670
Health System Group, Series 2006, 5.250%, 11/15/36
375 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 380,063
Health System Series 2008, 5.750%, 12/01/35
------------------------------------------------------------------------------------------------------------------------------------
10,500 Total Health Care 10,355,053
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.0% (6.1% OF TOTAL INVESTMENTS)
1,165 Cleveland-Cuyahoga County Port Authority, Ohio, Lease Revenue 8/15 at 100.00 N/R 1,046,904
Bonds, Euclid Avenue Housing Corporation - Fenn Tower
Project, Series 2005, 5.000%, 8/01/23 - AMBAC Insured
350 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 351,054
Revenue Bonds, Canterbury Court Project, Series 2007,
5.500%, 10/20/42 (Alternative Minimum Tax)
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue 4/11 at 102.00 Aa2 $ 2,937,190
Bonds, Asbury Woods Project, Series 2001A, 5.450%, 4/01/26
340 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 302,066
Mortgage Revenue Bonds, Madonna Homes, Series 2006M,
4.900%, 6/20/48 (Alternative Minimum Tax)
1,000 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 959,360
Revenue Bonds, Callis Tower Apartments Project, Series
2007, 5.250%, 9/20/47 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,740 Total Housing/Multifamily 5,596,574
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.4% (1.6% OF TOTAL INVESTMENTS)
265 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 271,175
Program Residential Mortgage Revenue Bonds, Series 2000C,
6.050%, 3/01/32 (Alternative Minimum Tax)
680 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 680,088
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 45,477
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 476,285
Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,490 Total Housing/Single Family 1,473,025
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 7.0% (4.7% OF TOTAL INVESTMENTS)
1,500 Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond 5/12 at 102.00 N/R 1,309,770
Fund Revenue Bonds, Cleveland Christian Home Project,
Series 2002C, 5.950%, 5/15/22
350 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R 286,451
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 BBB 861,001
Bonds, Allied Waste Industries, Inc., Series 2007A,
5.150%, 7/15/15 (Alternative Minimum Tax)
1,300 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa3 1,401,530
Bonds, CSX Transportation Inc., Series 1992, 6.450%,
12/15/21
700 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 520,184
Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%,
7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,730 Total Industrials 4,378,936
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.1% (17.0% OF TOTAL INVESTMENTS)
1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aa2 1,562,190
General Obligation Bonds, Series 2005, 5.000%, 12/01/30 -
FSA Insured
400 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 159,244
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+ 536,775
5.000%, 12/01/21
1,355 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,467,153
5.000%, 12/01/27
470 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 493,495
12/01/32
2,550 Hamilton City School District, Ohio, General Obligation 6/17 at 100.00 AAA 2,644,299
Bonds, Series 2007, 5.000%, 12/01/34 - FSA Insured
2,000 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 1,991,320
Counties, Ohio, School Facilities Improvement and
Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG
Insured
430 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 442,857
Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC
Insured
1,005 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 1,054,989
General Obligation Bonds, Series 2006, 5.000%, 12/01/25 -
FSA Insured
200 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 209,400
Ohio, General Obligation Bonds, Series 2007, 5.000%,
12/01/31
50 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 51,173
Obligation Bonds, Series 2008, 5.250%, 12/01/36
750 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 765,435
Obligation School Facilities Construction and Improvement
Bonds, Series 2008, 5.000%, 11/01/36
Nuveen Investments 45
NXI | Nuveen Ohio Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 50 Sylvania City School District, Ohio, General Obligation 6/17 at 100.00 AAA $ 51,602
School Improvement Bonds, Series 1995, 5.250%, 12/01/36 -
AGC Insured
2,415 Troy City School District, Miami County, Ohio, General 12/14 at 100.00 Aa3 2,529,350
Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FSA
Insured
50 Vandalia Butler City School District, Montgomery County, No Opt. Call AA 51,332
Ohio, General Obligation Bonds, School Improvement Series
2009, 5.125%, 12/01/37
1,485 West Chester Township, Butler County, Ohio, Various Purpose 11/11 at 101.00 Aa1 1,632,297
Limited Tax General Obligation Refunding Bonds, Series
2001, 5.500%, 12/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,210 Total Tax Obligation/General 15,642,911
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.9% (10.8% OF TOTAL INVESTMENTS)
2,000 Franklin County, Ohio, Excise Tax and Lease Reve nue 12/15 at 100.00 Aaa 2,111,780
Anticipation Bonds, Convention Facilities Authority,
Series 2005, 5.000%, 12/01/27 - AMBAC Insured
1,415 Hamilton County Convention Facilities Authority, Ohio, First 6/14 at 100.00 A+ 1,473,468
Lien Revenue Bonds, Series 2004, 5.000%, 12/01/21 - FGIC
Insured
2,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 2,005,880
Series 2006, 5.000%, 12/01/32 - AMBAC Insured
500 New Albany Community Authority, Ohio, Community Facilities 4/12 at 100.00 A2 515,080
Revenue Refunding Bonds, Series 2001B, 5.500%, 10/01/15 -
AMBAC Insured
345 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 359,173
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 1,059,470
Correctional Building Fund Project, Series 2005A, 5.000%,
4/01/23 - FSA Insured
5,220 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 1,000,778
Revenue Bonds, First Subordinate Series 2009A, 0.000%,
8/01/34
1,400 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 1,429,316
Loan Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
13,880 Total Tax Obligation/Limited 9,954,945
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.4% (1.0% OF TOTAL INVESTMENTS)
865 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA 881,798
5.500%, 2/15/26
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 38.5% (26.1% OF TOTAL INVESTMENTS) (4)
1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 (4) 1,055,710
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25 (Pre-refunded 12/01/10)
1,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,177,290
Obligation Bonds, Series 2004, 5.500%, 12/01/15
(Pre-refunded 12/01/14) - FSA Insured
1,000 Lakewood City School District, Cuyahoga County, Ohio, General 12/14 at 100.00 AAA 1,168,680
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 6/11 at 100.00 Aa1 (4) 2,151,120
Tax General Obligation School Improvement and Refunding
Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded
6/01/11) - FGIC Insured
910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, Series 12/10 at 101.00 A2 (4) 975,402
2001, 5.500%, 12/01/18 (Pre-refunded 12/01/10) - AMBAC
Insured
1,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 Aa3 (4) 1,012,270
Tax 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 N/R (4) 1,138,600
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 12/10 at 101.00 AA (4) 1,071,250
Obligation 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) 2,206,040
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 N/R (4) 1,066,510
University of Dayton, Series 2000, 5.500%, 12/01/25
(Pre-refunded 12/01/10) - AMBAC Insured
1,135 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA (4) 1,213,156
5.500%, 2/15/26 (Pre-refunded 2/15/11)
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,000 Ohio, General Obligation Higher Education Capital Facilities 2/11 at 100.00 AA+ (4) $ 2,119,100
Bonds, Series 2001A, 5.000%, 2/01/20 (Pre-refunded 2/01/11)
1,900 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AA+ (4) 2,188,021
Counties, Ohio, General Obligation Bonds, Series 2004A,
5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured
665 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- (4) 716,311
Improvement 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 AA+ (4) 1,302,578
Unlimited Tax General Obligation School Improvement
Bonds, Series 1999, 5.000%, 12/01/23 (Pre-refunded
12/01/09) - NPFG Insured
2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 A+ (4) 3,049,386
Series 2002F, 5.375%, 6/01/19 (Pre-refunded 6/01/12)
400 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AA- (4) 429,356
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,020 Total U.S. Guaranteed 24,040,780
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.0% (8.1% OF TOTAL INVESTMENTS)
1,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 991,250
Series 2008, 5.250%, 2/15/43
1,440 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 A2 1,506,211
System Improvement Revenue Bonds, Series 2002, 5.250%,
2/15/17 - NPFG Insured
2,130 Cleveland, Ohio, Public Power System Revenue Bonds, Series No Opt. Call A 608,584
2008B, 0.000%, 11/15/32 - NPFG Insured
2,000 Ohio Air Quality Development Authority, Revenue Refunding 11/09 at 101.00 Baa1 1,894,840
Bonds, Ohio Power Company Project, Series 1999C, 5.150%,
5/01/26 - AMBAC Insured
1,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 A1 988,050
Interest Certificates, Belleville Hydroelectric Project -
Joint Venture 5, Series 2004, 5.000%, 2/15/21 - AMBAC
Insured
1,800 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 101.00 N/R 1,478,358
Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%,
9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,370 Total Utilities 7,467,293
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.7% (3.2% OF TOTAL INVESTMENTS)
175 City of Marysville, Ohio, Water System Mortgage Revenue 12/17 at 100.00 A3 172,618
Bonds, Series 2007, 5.000%, 12/01/32 - AMBAC Insured
325 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 348,280
Water Assistance Fund, State Match, Series 2008, 5.000%,
6/01/28 - FSA Insured
2,375 Ohio Water Development Authority, Revenue Bonds, Water 12/13 at 100.00 Aa2 2,383,835
Development Community Assistance Program, Series 2003,
5.000%, 12/01/23 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
2,875 Total Water and Sewer 2,904,733
------------------------------------------------------------------------------------------------------------------------------------
$ 97,030 Total Investments (cost $90,299,712) - 147.6% 92,064,386
===============---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,307,061
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (5) (31,000,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 62,371,447
==================================================================================================================
(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.
(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 33.7%.
N/R Not rated.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
Nuveen Investments 47
NBJ | Nuveen Ohio Dividend Advantage Municipal Fund 2
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.3% (2.9% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
$ 250 5.875%, 6/01/30 6/17 at 100.00 BBB $ 211,953
2,200 5.875%, 6/01/47 6/17 at 100.00 BBB 1,622,742
45 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 43,107
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
2,495 Total Consumer Staples 1,877,802
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.0% (8.0% OF TOTAL INVESTMENTS)
1,345 Bowling Green State University, Ohio, General Receipts Bonds, 6/13 at 100.00 A 1,446,077
Series 2003, 5.250%, 6/01/18 - AMBAC Insured
450 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 442,224
Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41
1,050 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa2 1,054,085
Wittenberg University, Series 2001, 5.500%, 12/01/15
1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 A+ 1,026,690
Series 2003C, 5.000%, 6/01/22 - FGIC Insured
1,245 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 A+ 1,305,383
Series 2004D, 5.000%, 6/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,090 Total Education and Civic Organizations 5,274,459
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 24.5% (16.4% OF TOTAL INVESTMENTS)
1,090 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 921,224
Cincinnati Children's Medical Center Project, Series
2006K, 5.000%, 5/15/31 - FGIC Insured
1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 933,190
Firelands Regional Medical Center, Series 2002A, 5.500%,
8/15/22
250 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 233,203
Children's Hospital Project, Series 2005, 5.000%, 11/01/40
1,850 Lorain County, Ohio, Hospital Revenue Refunding and 10/11 at 101.00 AA- 1,888,295
Improvement Bonds, Catholic Healthcare Partners, Series
2001A, 5.400%, 10/01/21
225 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 208,433
Bonds, Upper Valley Medical Center Inc., Series 2006,
5.250%, 5/15/21
700 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 701,687
Initiatives, Series 2004A, 5.000%, 5/01/30
90 Montgomery County, Ohio, Revenue Bonds, Miami Valley 11/14 at 100.00 Aa3 92,397
Hospital, Series 2009A, 6.250%, 11/15/39
35 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 36,425
Cleveland Clinic Health System Obligated Group, Series
2008A, 5.000%, 1/01/25
100 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 103,902
Revenue Bonds, University Hospitals Health System, Series
2009, 6.750%, 1/15/39
1,000 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 AA- 1,040,440
Cleveland Clinic Health System Obligated Group, Tender
Option Bond Trust 3551, 19.787%, 1/01/39 (IF)
665 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 673,838
Improvement 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- 307,769
Health System Group, Series 2006, 5.250%, 11/15/36
90 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 91,215
Health System Series 2008, 5.750%, 12/01/35
3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 Baa1 3,512,149
Union Hospital Project, Series 2001, 5.750%, 10/01/26 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
11,115 Total Health Care 10,744,167
------------------------------------------------------------------------------------------------------------------------------------
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.1% (3.4% OF TOTAL INVESTMENTS)
$ 1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa $ 1,034,410
Housing Mortgage Revenue Bonds, Agler Project, Series
2002A, 5.550%, 5/20/22 (Alternative Minimum Tax)
250 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 250,753
Revenue Bonds, Canterbury Court Project, Series 2007,
5.500%, 10/20/42 (Alternative Minimum Tax)
250 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 222,108
Mortgage Revenue Bonds, Madonna Homes, Series 2006M,
4.900%, 6/20/48 (Alternative Minimum Tax)
750 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 719,520
Revenue Bonds, Callis Tower Apartments Project, Series
2007, 5.250%, 9/20/47 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,250 Total Housing/Multifamily 2,226,791
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.2% (1.4% OF TOTAL INVESTMENTS)
995 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 947,807
Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 8.3% (5.5% OF TOTAL INVESTMENTS)
3,000 Ohio State Sewage and Solid Waste Disposal Facilities, 11/11 at 100.00 BBB+ 2,645,190
Revenue 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 BBB 626,182
Bonds, Allied Waste Industries, Inc., Series 2007A,
5.150%, 7/15/15 (Alternative Minimum Tax)
500 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 371,560
Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%,
7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,140 Total Industrials 3,642,932
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 44.8% (29.8% OF TOTAL INVESTMENTS)
1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation 11/11 at 101.00 A2 1,728,883
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 1,109,620
1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,035,110
300 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 119,433
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+ 429,420
5.000%, 12/01/21
1,000 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,082,770
5.000%, 12/01/27
400 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 419,996
12/01/32
1,905 Hamilton City School District, Ohio, General Obligation 6/17 at 100.00 AAA 1,975,447
Bonds, Series 2007, 5.000%, 12/01/34 - FSA Insured
1,000 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 995,660
Counties, Ohio, School Facilities Improvement and
Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG
Insured
345 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 355,316
Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC
Insured
2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aa3 2,584,971
Center Bonds, Series 2002, 5.500%, 12/01/22 - FGIC Insured
1,005 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 1,054,989
General Obligation Bonds, Series 2006, 5.000%, 12/01/25 -
FSA Insured
200 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 209,400
Ohio, General Obligation Bonds, Series 2007, 5.000%,
12/01/31
50 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 51,173
Obligation Bonds, Series 2008, 5.250%, 12/01/36
2,665 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 A 2,709,106
Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FGIC
Insured
400 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 408,232
Obligation School Facilities Construction and Improvement
Bonds, Series 2008, 5.000%, 11/01/36
Nuveen Investments 49
NBJ | Nuveen Ohio Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA $ 2,009,470
5.000%, 12/01/25 - FGIC Insured
1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/12 at 100.00 AA+ 1,039,660
12/01/25 - FGIC Insured
50 Sylvania City School District, Ohio, General Obligation 6/17 at 100.00 AAA 51,602
School Improvement Bonds, Series 1995, 5.250%, 12/01/36 -
AGC Insured
200 Vandalia Butler City School District, Montgomery County, No Opt. Call AA 205,328
Ohio, General Obligation Bonds, School Improvement Series
2009, 5.125%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
19,000 Total Tax Obligation/General 19,575,586
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.2% (9.4% OF TOTAL INVESTMENTS)
1,400 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 1,404,116
Series 2006, 5.000%, 12/01/32 - AMBAC Insured
250 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 260,270
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 1,059,470
Correctional Building Fund Project, Series 2005A, 5.000%,
4/01/23 - FSA Insured
500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AA 506,440
Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 -
NPFG Insured
1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,180,815
Capital Facilities, Series 2004A-II, 5.000%, 12/01/18
4,065 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 779,342
Revenue Bonds, First Subordinate Series 2009A, 0.000%,
8/01/34
1,000 Summit County Port Authority, Ohio, Revenue Bonds, Civic 12/11 at 100.00 N/R 1,009,160
Theatre Project, Series 2001, 5.500%, 12/01/26 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
9,310 Total Tax Obligation/Limited 6,199,613
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.2% (14.1% OF TOTAL INVESTMENTS) (4)
1,845 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 1,893,413
5.250%, 1/01/18 (Pre-refunded 1/01/10) - FSA Insured
605 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 712,260
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 Aa3 (4) 1,094,780
Obligation Capital Improvement Bonds, Series 2001A,
5.125%, 12/01/21 (Pre-refunded 12/01/11) - MBIA Insured
2,250 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 2,481,998
Obligation Bonds, Series 2001, 5.500%, 12/01/21
(Pre-refunded 12/01/11) - FSA Insured
1,000 Marysville Exempted Village School District, Ohio, 6/15 at 100.00 N/R (4) 1,176,150
Certificates of Participation, School Facilities Project,
Series 2005, 5.250%, 12/01/21 (Pre-refunded 6/01/15) -
MBIA Insured
1,050 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AA+ (4) 1,221,035
Counties, 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 11/10 at 101.00 A- (4) 683,997
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded
11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
8,385 Total U.S. Guaranteed 9,263,633
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.2% (8.1% OF TOTAL INVESTMENTS)
1,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 991,250
Series 2008, 5.250%, 2/15/43
1,065 Cleveland, Ohio, Public Power System Revenue Bonds, Series No Opt. Call A 304,292
2008B, 0.000%, 11/15/32 - NPFG Insured
2,500 Ohio Air Quality Development Authority, Revenue Refunding 11/09 at 101.00 Baa1 2,368,550
Bonds, Ohio Power Company Project, Series 1999C, 5.150%,
5/01/26 - AMBAC Insured
595 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 A1 592,828
Interest Certificates, Belleville Hydroelectric Project -
Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC
Insured
1,300 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 101.00 N/R 1,067,703
Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%,
9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,460 Total Utilities 5,324,623
------------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.5% (1.0% OF TOTAL INVESTMENTS)
$ 130 City of Marysville, Ohio, Water System Mortgage Revenue 12/17 at 100.00 A3 $ 128,231
Bonds, Series 2007, 5.000%, 12/01/32 - AMBAC Insured
210 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 225,042
Water Assistance Fund, State Match, Series 2008, 5.000%,
6/01/28 - FSA Insured
270 Ohio Water Development Authority, Revenue Bonds, Fresh Water 12/11 at 100.00 AAA 285,741
Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
610 Total Water and Sewer 639,014
------------------------------------------------------------------------------------------------------------------------------------
$ 69,850 Total Investments (cost $65,793,029) - 150.3% 65,716,427
===============---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 1,095,864
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.8)% (5) (23,100,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 43,712,291
==================================================================================================================
(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.
(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 35.2%.
N/R Not rated.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
Nuveen Investments 51
NVJ | Nuveen Ohio Dividend Advantage Municipal Fund 3
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.8% (4.6% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
$ 1,100 5.875%, 6/01/30 6/17 at 100.00 BBB $ 932,591
1,670 5.875%, 6/01/47 6/17 at 100.00 BBB 1,231,809
20 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 19,159
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
2,790 Total Consumer Staples 2,183,559
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.2% (4.1% OF TOTAL INVESTMENTS)
350 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 343,952
Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41
1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A3 1,183,568
Ohio Northern University, Series 2002, 5.750%, 5/01/16
500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 441,770
Wittenberg University, Series 2005, 5.000%, 12/01/24
------------------------------------------------------------------------------------------------------------------------------------
1,975 Total Education and Civic Organizations 1,969,290
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 20.8% (13.9% OF TOTAL INVESTMENTS)
695 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 587,386
Cincinnati Children's Medical Center Project, Series 2006K,
5.000%, 5/15/31 - FGIC Insured
1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,633,082
Firelands Regional Medical Center, Series 2002A, 5.500%,
8/15/22
250 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 233,203
Children's Hospital Project, Series 2005, 5.000%, 11/01/40
160 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 148,219
Bonds, 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 501,205
Initiatives, Series 2004A, 5.000%, 5/01/30
60 Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, 11/14 at 100.00 Aa3 61,598
Series 2009A, 6.250%, 11/15/39
600 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 624,426
Cleveland Clinic Health System Obligated Group, Series
2008A, 5.000%, 1/01/25
1,500 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 1,558,530
Revenue Bonds, University Hospitals Health System, Series
2009, 6.750%, 1/15/39
675 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 AA- 702,297
Cleveland Clinic Health System Obligated Group, Tender
Option Bond Trust 3551, 19.787%, 1/01/39 (IF)
335 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 339,452
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- 219,835
Health System Group, Series 2006, 5.250%, 11/15/36
60 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 60,810
Health System Series 2008, 5.750%, 12/01/35
------------------------------------------------------------------------------------------------------------------------------------
6,835 Total Health Care 6,670,043
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS)
200 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 200,602
Revenue Bonds, Canterbury Court Project, Series 2007,
5.500%, 10/20/42 (Alternative Minimum Tax)
200 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 177,686
Mortgage Revenue Bonds, Madonna Homes, Series 2006M,
4.900%, 6/20/48 (Alternative Minimum Tax)
750 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 719,520
Revenue Bonds, Callis Tower Apartments Project, Series
2007, 5.250%, 9/20/47 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,150 Total Housing/Multifamily 1,097,808
------------------------------------------------------------------------------------------------------------------------------------
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.3% (2.2% OF TOTAL INVESTMENTS)
$ 125 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa $ 127,913
Program Residential Mortgage Revenue Bonds, Series 2000C,
6.050%, 3/01/32 (Alternative Minimum Tax)
415 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 415,054
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 45,477
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 476,285
Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,085 Total Housing/Single Family 1,064,729
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.9% (2.6% OF TOTAL INVESTMENTS)
555 Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond 5/12 at 102.00 N/R 484,615
Fund Revenue Bonds, Cleveland Christian Home Project,
Series 2002C, 5.950%, 5/15/22
480 Ohio State Water Development Authority, Solid Waste Revenue 7/12 at 100.00 BBB 469,637
Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%,
7/15/15 (Alternative Minimum Tax)
400 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 297,248
Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%,
7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,435 Total Industrials 1,251,500
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 34.2% (22.9% OF TOTAL INVESTMENTS)
1,815 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 722,570
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+ 322,065
5.000%, 12/01/21
1,000 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,082,770
5.000%, 12/01/27
250 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 262,498
12/01/32
1,275 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA 1,322,150
Series 2007, 5.000%, 12/01/34 - FSA Insured
1,000 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 995,660
Counties, Ohio, School Facilities Improvement and Refunding
Bonds, Series 2007, 5.000%, 12/01/34 - NPFG Insured
1,000 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aa3 1,052,230
Obligation Bonds, Series 2003, 5.000%, 12/01/22 - NPFG
Insured
210 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 223,724
Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC
Insured
1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 5.125%, 12/12 at 100.00 Baa2 1,232,395
12/01/26 - AMBAC Insured
500 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 524,870
General Obligation Bonds, Series 2006, 5.000%, 12/01/25 -
FSA Insured
100 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 104,700
Ohio, General Obligation Bonds, Series 2007, 5.000%,
12/01/31
50 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 51,173
Obligation Bonds, Series 2008, 5.250%,12/01/36
150 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 153,087
Obligation School Facilities Construction and Improvement
Bonds, Series 2008, 5.000%, 11/01/36
1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,058,170
Bonds, Series 2001B, 5.000%, 9/15/20
1,130 Solon, Ohio, General Obligation Refunding and Improvement 12/12 at 100.00 AAA 1,228,604
Bonds, Series 2002, 5.000%, 12/01/18
500 Sylvania City School District, Ohio, General Obligation School 6/17 at 100.00 AAA 516,015
Improvement Bonds, Series 1995, 5.250%, 12/01/36 - AGC
Insured
100 Vandalia Butler City School District, Montgomery County, Ohio, No Opt. Call AA 102,664
General Obligation Bonds, School Improvement Series 2009,
5.125%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
11,650 Total Tax Obligation/General 10,955,345
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 53
NVJ | Nuveen Ohio Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.9% (9.3% OF TOTAL INVESTMENTS)
$ 1,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 $ 1,002,940
Series 2006, 5.000%, 12/01/32 - AMBAC Insured
1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 998,640
Certificates of Participation, Series 2003, 5.000%, 11/01/30
1,250 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,343,713
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 208,216
Administrative Building Fund Projects, Series 2005A,
5.000%, 4/01/25 - FSA Insured
500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AA 506,440
Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 -
NPFG Insured
2,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 383,440
Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34
------------------------------------------------------------------------------------------------------------------------------------
5,950 Total Tax Obligation/Limited 4,443,389
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.6% (3.8% OF TOTAL INVESTMENTS)
1,550 Ohio Turnpike Commission, Revenue Refunding Bonds, Series No Opt. Call AA 1,809,128
1998A, 5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 40.3% (27.0% OF TOTAL INVESTMENTS) (4)
725 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 A1 (4) 837,426
Obligation Bonds, Series 2002, 5.750%, 12/01/21
(Pre-refunded 12/01/12) - FGIC Insured
1,300 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa2 (4) 1,434,043
Obligation Bonds, Series 2001, 5.500%, 12/01/28
(Pre-refunded 12/01/11)
1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 5.375%, 12/12 at 100.00 AA (4) 1,133,520
12/01/22 (Pre-refunded 12/01/12)
500 Miami East Local School District, Miami County, Ohio, General 6/12 at 100.00 AAA 555,110
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) 1,046,660
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 Aa2 (4) 1,085,160
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 N/R (4) 2,260,499
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) 1,023,630
5.800%, 12/01/29 (Pre-refunded12/01/09)
1,000 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AA+ (4) 1,151,590
Counties, Ohio, General Obligation Bonds, Series 2004A,
5.250%, 12/01/21 (Pre-refunded 6/01/14) - FGIC Insured
1,535 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AA- (4) 1,683,664
Counties, Ohio, General Obligation Bonds, School Facilities
Construction and Improvement, Series 2001, 5.250%, 12/01/20
(Pre-refunded 12/01/11) - FGIC Insured
665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- (4) 716,311
Bonds, MedCentral Health System Obligated Group, Series
2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
11,725 Total U.S. Guaranteed 12,927,613
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.1% (6.1% OF TOTAL INVESTMENTS)
500 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 495,625
Series 2008, 5.250%, 2/15/43
1,500 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 A2 1,568,969
Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 -
NPFG Insured
1,595 Cleveland, Ohio, Public Power System Revenue Bonds, Series No Opt. Call A 455,723
2008B, 0.000%, 11/15/32 - NPFG Insured
500 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 101.00 N/R 410,655
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,095 Total Utilities 2,930,972
------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.8% (1.2% OF TOTAL INVESTMENTS)
$ 130 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 A3 $ 128,231
Series 2007, 5.000%, 12/01/32 - AMBAC Insured
160 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 171,461
Water Assistance Fund, State Match, Series 2008, 5.000%,
6/01/28 - FSA Insured
270 Ohio Water Development Authority, Revenue Bonds, Fresh Water 12/11 at 100.00 AAA 285,741
Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
560 Total Water and Sewer 585,433
------------------------------------------------------------------------------------------------------------------------------------
$ 50,800 Total Investments (cost $46,339,770) - 149.3% 47,888,809
===============---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 681,447
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.4)% (5) (16,500,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 32,070,256
==================================================================================================================
(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.
(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 34.5%.
N/R Not rated.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
Nuveen Investments 55
| Statement of
| Assets & Liabilities August 31, 2009 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-----------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $248,338,339, $159,346,389
and $42,705,638, respectively) $ 254,582,577 $ 160,808,680 $ 42,867,561
Cash 673,918 623,471 262,503
Receivables:
Interest 3,795,757 2,584,612 628,397
Investments sold -- 9,921 --
Other assets 57,605 49,606 6,442
-----------------------------------------------------------------------------------------------------------------
Total assets 259,109,857 164,076,290 43,764,903
-----------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 3,630,000 2,330,000 665,000
Payables:
Common share dividends 608,078 380,133 113,518
Preferred share dividends 4,130 3,849 1,011
Accrued expenses:
Management fees 138,441 88,104 18,103
Other 91,807 53,884 16,778
-----------------------------------------------------------------------------------------------------------------
Total liabilities 4,472,456 2,855,970 814,410
-----------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 87,325,000 53,700,000 14,275,000
-----------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 167,312,401 $ 107,520,320 $ 28,675,493
=================================================================================================================
Common shares outstanding 11,638,753 7,682,048 2,066,086
=================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.38 $ 14.00 $ 13.88
================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 116,388 $ 76,820 $ 20,661
Paid-in surplus 163,157,246 107,676,970 29,267,145
Undistributed (Over-distribution of) net investment income 1,315,593 824,977 201,528
Accumulated net realized gain (loss) from investments (3,521,064) (2,520,738) (975,764)
Net unrealized appreciation (depreciation) of investments 6,244,238 1,462,291 161,923
----------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 167,312,401 $ 107,520,320 $ 28,675,493
================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
================================================================================================================
See accompanying notes to financial statements.
56 Nuveen Investments
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
-----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $220,429,924, $90,299,712,
$65,793,029 and $46,339,770, respectively) $ 224,490,241 $ 92,064,386 $ 65,716,427 $ 47,888,809
Cash 1,375,144 230,253 256,276 140,904
Receivables:
Interest 2,867,232 1,233,578 953,889 651,318
Investments sold 345,000 150,000 100,000 30,000
Other assets 41,325 15,899 8,830 31,612
-----------------------------------------------------------------------------------------------------------------------------
Total assets 229,118,942 93,694,116 67,035,422 48,742,643
-----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations -- -- -- --
Payables:
Common share dividends 541,296 248,456 171,591 132,064
Preferred share dividends 4,936 2,196 307 1,465
Accrued expenses:
Management fees 122,102 42,627 27,665 20,125
Other 73,417 29,390 23,568 18,733
-----------------------------------------------------------------------------------------------------------------------------
Total liabilities 741,751 322,669 223,131 172,387
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 77,000,000 31,000,000 23,100,000 16,500,000
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 151,377,191 $ 62,371,447 $ 43,712,291 $ 32,070,256
=============================================================================================================================
Common shares outstanding 9,746,032 4,243,493 3,121,477 2,156,758
=============================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.53 $ 14.70 $ 14.00 $ 14.87
=============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 97,460 $ 42,435 $ 31,215 $ 21,568
Paid-in surplus 147,811,461 60,261,755 44,255,705 30,521,415
Undistributed (Over-distribution of) net investment income 1,308,079 630,639 362,152 292,385
Accumulated net realized gain (loss) from investments (1,900,126) (328,056) (860,179) (314,151)
Net unrealized appreciation (depreciation) of investments 4,060,317 1,764,674 (76,602) 1,549,039
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 151,377,191 $ 62,371,447 $ 43,712,291 $ 32,070,256
=============================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
=============================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 57
| Statement of
| Operations Six Months ended August 31, 2009 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,422,505 $ 4,137,904 $ 1,107,283
------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 812,235 517,809 137,373
Preferred shares - auction fees 82,652 50,854 13,533
Preferred shares - dividend disbursing agent fees 10,082 10,082 5,041
Shareholders' servicing agent fees and expenses 9,274 7,116 325
Interest expense on floating rate obligations 18,958 12,169 3,473
Custodian's fees and expenses 25,795 17,791 7,098
Directors'/Trustees' fees and expenses 4,181 2,657 697
Professional fees 13,082 10,208 5,264
Shareholders' reports - printing and mailing expenses 26,590 18,405 6,623
Stock exchange listing fees 4,647 4,647 147
Investor relations expense 8,186 5,467 1,507
Other expenses 15,262 10,874 7,413
------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,030,944 668,079 188,494
Custodian fee credit (39) (35) (8)
Expense reimbursement -- -- (31,808)
------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,030,905 668,044 156,678
------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,391,600 3,469,860 950,605
------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (1,186,661) (833,619) (377,811)
Change in net unrealized appreciation (depreciation) of investments 9,463,463 5,600,130 2,608,478
------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 8,276,802 4,766,511 2,230,667
------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (267,696) (165,751) (36,365)
------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions
to Preferred Shareholders (267,696) (165,751) (36,365)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 13,400,706 $ 8,070,620 $ 3,144,907
==============================================================================================================================
58 Nuveen Investments
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,722,444 $ 2,334,790 $ 1,657,452 $ 1,227,340
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 717,727 296,516 211,594 154,326
Preferred shares - auction fees 71,726 28,877 21,518 15,370
Preferred shares - dividend disbursing agent fees 15,123 5,041 5,041 5,041
Shareholders' servicing agent fees and expenses 10,193 542 579 430
Interest expense on floating rate obligations -- -- -- --
Custodian's fees and expenses 23,324 11,458 8,931 7,436
Directors'/Trustees' fees and expenses 3,726 1,526 1,089 793
Professional fees 12,090 6,835 6,018 5,523
Shareholders' reports - printing and mailing expenses 24,487 10,089 8,563 7,194
Stock exchange listing fees 4,647 302 222 154
Investor relations expense 7,545 2,847 2,186 1,622
Other expenses 10,848 8,174 8,790 8,467
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 901,436 372,207 274,531 206,356
Custodian fee credit (77) (12) (9) (18)
Expense reimbursement -- (49,557) (48,992) (37,702)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 901,359 322,638 225,530 168,636
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,821,085 2,012,152 1,431,922 1,058,704
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (147,282) (127,634) (128,359) (261,621)
Change in net unrealized appreciation (depreciation) of investments 8,689,154 3,426,682 2,789,125 1,999,426
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 8,541,872 3,299,048 2,660,766 1,737,805
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (233,280) (95,716) (70,473) (51,207)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred Shareholders (233,280) (95,716) (70,473) (51,207)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 13,129,677 $ 5,215,484 $ 4,022,215 $ 2,745,302
===================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 59
| Statement of
| Changes in Net Assets (Unaudited)
MICHIGAN MICHIGAN
QUALITY INCOME (NUM) PREMIUM INCOME (NMP)
--------------------------------------------- ---------------------------------------------
SIX MONTHS SEVEN SIX MONTHS SEVEN
ENDED MONTHS ENDED YEAR ENDED ENDED MONTHS ENDED YEAR ENDED
8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,391,600 $ 6,297,863 $ 10,847,892 $ 3,469,860 $ 4,032,688 $ 6,913,995
Net realized gain (loss) from:
Investments (1,186,661) (1,757,557) (263,137) (833,619) (1,285,668) (512,989)
Forward swaps -- -- -- -- 69,797 (6,970)
Futures contracts -- -- -- -- 41,405 --
Change in net unrealized
appreciation (depreciation) of:
Investments 9,463,463 (5,268,940) (7,931,308) 5,600,130 (3,725,846) (5,009,333)
Forward swaps -- -- -- -- (71,362) 207,726
Futures contracts -- -- -- -- (13,813) 13,813
Distributions to Preferred
Shareholders:
From net investment income (267,696) (1,528,357) (2,850,189) (165,751) (911,943) (1,775,079)
From accumulated net realized
gains -- -- (431,262) -- -- (187,020)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 13,400,706 (2,256,991) (628,004) 8,070,620 (1,864,742) (355,857)
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment income (4,019,135) (4,551,261) (7,897,051) (2,552,632) (2,906,120) (5,138,948)
From accumulated net realized
gains -- -- (1,193,754) -- -- (574,353)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
Shareholders (4,019,135) (4,551,261) (9,090,805) (2,552,632) (2,906,120) (5,713,301)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares
issued to shareholders due
to reinvestment of
distributions -- -- -- -- -- --
Repurchased (785,670) -- -- (432,115) (283,094) --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions (785,670) -- -- (432,115) (283,094) --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares 8,595,901 (6,808,252) (9,718,809) 5,085,873 (5,053,956) (6,069,158)
Net assets applicable to Common
shares at the beginning of
period 158,716,500 165,524,752 175,243,561 102,434,447 107,488,403 113,557,561
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 167,312,401 $ 158,716,500 $ 165,524,752 $ 107,520,320 $ 102,434,447 $ 107,488,403
=================================================================================================================================
Undistributed (Over-distribution
of) net investment income at
the end of period $ 1,315,593 $ 210,824 $ (7,421) $ 824,977 $ 73,500 $ (141,120)
=================================================================================================================================
60 Nuveen Investments
MICHIGAN OHIO
DIVIDEND ADVANTAGE (NZW) QUALITY INCOME (NUO)
--------------------------------------------- ---------------------------------------------
SIX MONTHS SEVEN SIX MONTHS SEVEN
ENDED MONTHS ENDED YEAR ENDED ENDED MONTHS ENDED YEAR ENDED
8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 950,605 $ 1,113,258 $ 1,952,639 $ 4,821,085 $ 5,455,829 $ 9,258,185
Net realized gain (loss) from:
Investments (377,811) (206,695) (97,468) (147,282) (963,174) (894,117)
Forward swaps -- -- -- -- -- (113,636)
Futures contracts -- -- -- -- 348,303 (8,573)
Change in net unrealized
appreciation (depreciation) of:
Investments 2,608,478 (1,840,743) (1,870,613) 8,689,154 (4,408,974) (6,068,561)
Forward swaps -- -- -- -- -- 141,307
Futures contracts -- -- -- -- (101,622) 101,622
Distributions to Preferred
Shareholders: From net
investment income (36,365) (265,934) (491,691) (233,280) (1,253,559) (2,439,092)
From accumulated net realized
gains -- (8,429) (48,339) -- -- (235,804)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 3,144,907 (1,208,543) (555,472) 13,129,677 (923,197) (258,669)
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment income (696,291) (815,426) (1,457,223) (3,635,271) (3,810,698) (6,520,095)
From accumulated net realized
gains -- (24,804) (150,270) -- -- (656,883)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
Shareholders (696,291) (840,230) (1,607,493) (3,635,271) (3,810,698) (7,176,978)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares
issued to shareholders due
to reinvestment of
distributions -- -- 8,680 -- -- --
Repurchased (9,059) -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from
capital share transactions (9,059) -- 8,680 -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares 2,439,557 (2,048,773) (2,154,285) 9,494,406 (4,733,895) (7,435,647)
Net assets applicable to Common
shares at the beginning of
period 26,235,936 28,284,709 30,438,994 141,882,785 146,616,680 154,052,327
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 28,675,493 $ 26,235,936 $ 28,284,709 $ 151,377,191 $ 141,882,785 $ 146,616,680
=================================================================================================================================
Undistributed (Over-distribution
of) net investment income at
the end of period $ 201,528 $ (16,421) $ (48,259) $ 1,308,079 $ 355,545 $ 3,336
=================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 61
| Statement of
| Changes in Net Assets (Unaudited) (continued)
OHIO OHIO
DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ)
------------------------------------------- --------------------------------------------
SIX MONTHS SEVEN SIX MONTHS SEVEN
ENDED MONTHS ENDED YEAR ENDED ENDED MONTHS ENDED YEAR ENDED
8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,012,152 $ 2,294,907 $ 3,959,340 $ 1,431,922 $ 1,675,202 $ 2,890,350
Net realized gain (loss) from:
Investments (127,634) (160,768) (240,447) (128,359) (424,412) (326,158)
Forward swaps -- 104,696 (31,726) -- -- (45,455)
Futures contracts -- 276,060 (8,580) -- 64,124 --
Change in net unrealized
appreciation (depreciation) of:
Investments 3,426,682 (2,005,025) (2,295,579) 2,789,125 (2,249,194) (1,953,136)
Forward swaps -- (107,042) 220,088 -- -- 56,523
Futures contracts -- (41,291) 41,291 -- (19,976) 19,976
Distributions to Preferred
Shareholders:
From net investment income (95,716) (507,674) (974,550) (70,473) (391,035) (790,428)
From accumulated net realized
gains -- -- (133,387) -- -- (67,354)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations 5,215,484 (146,137) 536,450 4,022,215 (1,345,291) (215,682)
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,536,145) (1,629,732) (2,775,637) (1,064,424) (1,186,161) (2,007,110)
From accumulated net realized gains -- -- (399,794) -- -- (185,104)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common Shareholders (1,536,145) (1,629,732) (3,175,431) (1,064,424) (1,186,161) (2,192,214)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- -- -- -- -- --
Repurchased -- (6,912) -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- (6,912) -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 3,679,339 (1,782,781) (2,638,981) 2,957,791 (2,531,452) (2,407,896)
Net assets applicable to Common shares
at the beginning of period 58,692,108 60,474,889 63,113,870 40,754,500 43,285,952 45,693,848
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of period $ 62,371,447 $ 58,692,108 $ 60,474,889 $ 43,712,291 $ 40,754,500 $ 43,285,952
=================================================================================================================================
Undistributed (Over-distribution
of)net investment income at the end
of period $ 630,639 $ 250,348 $ 108,618 $ 362,152 $ 65,127 $ (32,879)
=================================================================================================================================
62 Nuveen Investments
OHIO
DIVIDEND ADVANTAGE 3 (NVJ)
------------------------------------------------------
SIX MONTHS SEVEN
ENDED MONTHS ENDED YEAR ENDED
8/31/09 2/28/09 7/31/08
--------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,058,704 $ 1,194,279 $ 2,053,018
Net realized gain (loss) from:
Investments (261,621) (55,182) (272,641)
Forward swaps -- 104,696 --
Futures contracts -- 173,467 23,859
Change in net unrealized appreciation
(depreciation) of:
Investments 1,999,426 (958,880) (1,043,820)
Forward swaps -- (107,042) 107,042
Futures contracts -- (21,252) 9,550
Distributions to Preferred Shareholders:
From net investment income (51,207) (265,893) (496,884)
From accumulated net realized gains -- -- (45,494)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 2,745,302 64,193 334,630
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (802,314) (857,987) (1,454,801)
From accumulated net realized gains -- -- (132,313)
--------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common Shareholders (802,314) (857,987) (1,587,114)
--------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued
to shareholders due to
reinvestment of distributions -- -- --
Repurchased -- (20,129) --
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- (20,129) --
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,942,988 (813,923) (1,252,484)
Net assets applicable to Common
shares at the beginning of period 30,127,268 30,941,191 32,193,675
--------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 32,070,256 $ 30,127,268 $ 30,941,191
==================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 292,385 $ 87,202 $ 24,308
==================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 63
| Notes to
| Financial Statements (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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) (collectively, the "Funds"). 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 NYSE
Amex. 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 portfolio of municipal
obligations issued by state and local government authorities within a single
state or certain U.S. territories.
During the prior fiscal period, the Board of Directors/Trustees of the Funds
approved a change in the Funds' fiscal and tax year end from July 31 to February
28/29.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
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. 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. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors/Trustees of the
Fund, or its designee, may establish fair value using a wide variety of market
data including yields or prices of investments of comparable quality, type of
issue, coupon, maturity and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor's
credit characteristics considered relevant. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
investments are valued at amortized cost, which approximates 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 August 31, 2009, there
were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its 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.
64 Nuveen Investments
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is 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 at least 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 US
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. As
of August 31, 2009, 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 -- 805 --
Series W -- -- 571
Series TH 2,972 1,343 --
Series F 521 -- --
--------------------------------------------------------------------------------
Total 3,493 2,148 571
================================================================================
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 -- -- 924 --
--------------------------------------------------------------------------------
Total 3,080 1,240 924 660
================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments have generally not affected the portfolio management or
investment policies of the Funds. However, one continuing implication of these
auction failures for Common shareholders is that the Funds' cost of leverage
likely has been incrementally higher at times, than it otherwise might have been
had the auctions continued to be successful. As a result, the Funds' future
Common share earnings may likely have been incrementally lower than they
otherwise might have been. As of August 31, 2009, the aggregate amount of
outstanding Preferred shares redeemed by each Fund is as follows:
Nuveen Investments 65
| Notes to
| Financial Statements (Unaudited) (continued)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Preferred shares redeemed, at
liquidation value $ 6,675,000 $ 2,300,000 $ 1,725,000
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Preferred shares redeemed, at
liquidation value $ -- $ -- $ 900,000 $ --
================================================================================
Effective May 1, 2009, auction participation fees with respect to auctions that
have failed have been reduced from 25 bps (annualized) to 15 bps (annualized).
All auction participants have signed new agreements incorporating this change.
Inverse Floating Rate Securities
Each Fund is authorized to 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"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) 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 "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (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
"(UB) - 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 recognizes the related interest paid to the holders of the
short-term floating rate certificates as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the six months ended August 31, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") 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 issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At August 31 2009, the Funds were not invested in externally-deposited Recourse
Trusts.
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)
-------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse
Trusts $ -- $ -- $ -- $ -- $ -- $ -- $ --
===============================================================================================================================
66 Nuveen Investments
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended August 31, 2009, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-------------------------------------------------------------------------------
Average floating rate obligations $ 3,274,891 $ 2,102,065 $ 599,946
Average annual interest
rate and fees 1.15% 1.15% 1.15%
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO)* (NXI)* (NBJ)* (NVJ)*
--------------------------------------------------------------------------------
Average floating rate
obligations $ -- $ -- $ -- $ --
Average annual interest
rate and fees -- -- -- --
================================================================================
* Fund did not invest in self-deposited inverse floaters during the six
months ended August 31, 2009.
Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. 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 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.
Forward interest rate swap contracts are valued daily. The net amount recorded
on these transactions for each counterparty is recognized on the Statement of
Assets and Liabilities as "Unrealized appreciation or depreciation on forward
swaps" with the change during the fiscal period recognized on the Statement of
Operations as "Change in net unrealized appreciation (depreciation) of forward
swaps."
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. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." 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. The Funds did not invest in forward interest rate swap transactions
during the six months ended August 31, 2009.
Futures Contracts
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives and is authorized to invest in futures contracts in order
to gain exposure to, or hedge against changes in interest rates. 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." Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized as
"Deposits with brokers for open futures contracts" on the Statement of Assets
and Liabilities. Subsequent payments ("variation margin") are made or received
by a Fund each day, depending on the daily fluctuation of the value of the
contract. Variation margin is recognized as a receivable or payable for
"Variation margin on futures contracts" on the Statement of Assets and
Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the
contract are recorded as an unrealized gain or loss by "marking-to-market" on a
daily basis to reflect the changes in market value of the contract and is
recognized as "Change in net unrealized appreciation (depreciation) of futures
contracts" on the Statement of Operations. 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 and is recognized as "Net realized gain (loss) from
futures contracts" on the Statement of Operations. The Funds did not invest in
futures contracts during the six months ended August 31, 2009.
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.
Nuveen Investments 67
| Notes to
| Financial Statements (Unaudited) (continued)
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions. The extent of each Fund's exposure to counterparty credit
risk in respect to these financial assets approximates their carrying value as
recorded on the Statement of Assets and Liabilities. Futures contracts expose a
Fund to minimal counterparty credit risk as they are exchange traded and the
exchange's clearinghouse, which is counterparty to all exchange traded futures,
guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties Nuveen Asset Management (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments, Inc. ("Nuveen"), believes have the financial
resources to honor their obligations and by having the Adviser monitor the
financial stability of the counterparties. Additionally, counterparties may be
required to pledge collateral daily (based on the daily valuation of the
financial asset) on behalf of each Fund with a value approximately equal to the
amount of any unrealized gain above a pre-determined threshold. Reciprocally,
when each Fund has an unrealized loss, 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 valuations
fluctuate, either up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to 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 Portfolios 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.
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 US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. FAIR VALUE MEASUREMENTS
In determining the value of each Fund's investments various inputs are used.
These inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of August 31, 2009:
MICHIGAN QUALITY INCOME (NUM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $254,582,577 $ -- $254,582,577
===============================================================================================
MICHIGAN PREMIUM INCOME (NMP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $160,808,680 $ -- $160,808,680
===============================================================================================
68 Nuveen Investments
MICHIGAN DIVIDEND ADVANTAGE (NZW) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 42,867,561 $ -- $ 42,867,561
===============================================================================================
OHIO QUALITY INCOME (NUO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $224,490,241 $ -- $224,490,241
===============================================================================================
OHIO DIVIDEND ADVANTAGE (NXI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 92,064,386 $ -- $ 92,064,386
===============================================================================================
OHIO DIVIDEND ADVANTAGE 2 (NBJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 65,716,427 $ -- $ 65,716,427
===============================================================================================
OHIO DIVIDEND ADVANTAGE 3 (NVJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 47,888,809 $ -- $ 47,888,809
===============================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 161 (SFAS No. 161) "Disclosures about
Derivative Instruments and Hedging Activities." This standard is intended to
enhance financial statement disclosures for derivative instruments and hedging
activities and enable investors to better understand: a) how and why a fund uses
derivative instruments; b) how derivative instruments are accounted for; and c)
how derivative instruments affect a fund's financial position, results of
operations and cash flows, if any. The Funds record derivative instruments at
fair value with changes in fair value recognized on the Statement of Operations,
when applicable. Even though the Funds' investments in derivatives may represent
economic hedges, they are considered to be non-hedge transactions for SFAS No.
161 disclosure purposes. The Funds did not invest in derivative instruments
during the six months ended August 31, 2009.
4. FUND SHARES
Common Shares
Transactions in Common shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM
INCOME (NUM) INCOME (NMP)
-------------------------------------- -------------------------------------
SIX MONTHS SEVEN MONTHS YEAR SIX MONTHS SEVEN MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08
----------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- -- -- -- --
Repurchased (76,200) -- -- (42,300) (26,700) --
----------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $ 10.29 -- -- $ 10.20 $ 10.58 --
Discount per share repurchased 23.56% -- -- 22.70% 20.80% --
================================================================================================================
MICHIGAN DIVIDEND OHIO QUALITY
ADVANTAGE (NZW) INCOME (NUO)
-------------------------------------- -------------------------------------
SIX MONTHS SEVEN MONTHS YEAR SIX MONTHS SEVEN MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08
----------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- 595 -- -- --
Repurchased (900) -- -- -- -- --
----------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $ 10.05 -- -- -- -- --
Discount per share repurchased 20.27% -- -- -- -- --
================================================================================================================
Nuveen Investments 69
| Notes to
| Financial Statements (Unaudited) (continued)
OHIO DIVIDEND OHIO DIVIDEND
ADVANTAGE (NXI) ADVANTAGE 2 (NBJ)
-------------------------------------- -------------------------------------
SIX MONTHS SEVEN MONTHS YEAR SIX MONTHS SEVEN MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08
----------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- -- -- -- --
Repurchased -- (600) -- -- -- --
----------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- $ 11.50 -- -- -- --
Discount per share repurchased -- 17.21% -- -- -- --
================================================================================================================
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
--------------------------------------------------------------------------------
SIX MONTHS SEVEN MONTHS YEAR
ENDED ENDED ENDED
8/31/09 2/28/09 7/31/08
--------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- --
Repurchased -- (1,700) --
--------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- $ 11.82 --
Discount per share repurchased -- 16.10% --
================================================================================
Preferred Shares
Transactions in Preferred shares were as follows:
MICHIGAN QUALITY INCOME (NUM)
-----------------------------------------------------------------------------
SIX MONTHS SEVEN MONTHS YEAR
ENDED ENDED ENDED
8/31/09 2/28/09 7/31/08
-----------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series TH 122 $3,050,000 106 $2,650,000 -- $ --
Series F 21 525,000 18 450,000 -- --
----------------------------------------------------------------------------------------------------------------
Total 143 $3,575,000 124 $3,100,000 -- $ --
================================================================================================================
MICHIGAN PREMIUM INCOME (NMP)
-----------------------------------------------------------------------------
SIX MONTHS SEVEN MONTHS YEAR
ENDED ENDED ENDED
8/31/09 2/28/09 7/31/08
-----------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M 35 $ 875,000 -- $ -- -- $ --
Series TH 57 1,425,000 -- -- -- --
----------------------------------------------------------------------------------------------------------------
Total 92 $2,300,000 -- $ -- -- $ --
================================================================================================================
70 Nuveen Investments
MICHIGAN DIVIDEND ADVANTAGE (NZW)
-----------------------------------------------------------------------------
SIX MONTHS SEVEN MONTHS YEAR
ENDED ENDED ENDED
8/31/09 2/28/09 7/31/08
-----------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series W 26 $ 650,000 43 $1,075,000 -- $ --
================================================================================================================
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
-----------------------------------------------------------------------------
SIX MONTHS SEVEN MONTHS YEAR
ENDED ENDED ENDED
8/31/09 2/28/09 7/31/08
-----------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series F -- $ -- 36 $900,000 -- $ --
================================================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended August 31, 2009, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Purchases $ 12,650,755 $8,219,206 $1,752,253
Sales and maturities 11,863,116 7,725,501 1,588,154
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------
Purchases $ 9,790,609 $ 2,847,854 $ 1,996,102 $ 3,049,436
Sales and maturities 6,680,919 2,611,664 1,494,852 2,869,968
================================================================================================
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing 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, if any. 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 August 31, 2009, the cost of investments was as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-------------------------------------------------------------------------------
Cost of investments $244,791,385 $156,989,829 $ 42,029,578
===============================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------
Cost of investments $ 220,299,619 $ 90,226,921 $ 65,765,415 $ 46,317,426
================================================================================================
Nuveen Investments 71
| Notes to
| Financial Statements (Unaudited) (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2009, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $10,912,835 $ 3,693,034 $ 1,294,053
Depreciation (4,751,173) (2,203,837) (1,120,902)
-------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 6,161,662 $ 1,489,197 $ 173,151
=======================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 9,379,935 $ 3,770,950 $ 1,860,407 $ 2,550,334
Depreciation (5,189,313) (1,933,485) (1,909,395) (978,951)
--------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 4,190,622 $ 1,837,465 $ (48,988) $ 1,571,383
==========================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at February 28, 2009, 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 * $ 791,183 $ 464,129 $ 99,521
Undistributed net ordinary income ** -- -- --
Undistributed net long-term capital gains -- -- --
=========================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 822,568 $ 378,027 $ 214,793 $ 200,792
Undistributed net ordinary income ** 1,478 52,302 -- --
Undistributed net long-term capital gains -- -- -- --
=========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on February 3, 2009, paid on March 2, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax years ended
February 28, 2009, and July 31, 2008, was designated for purposes of the
dividends paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
SEVEN MONTHS ENDED FEBRUARY 28, 2009 (NUM) (NMP) (NZW)
--------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 6,134,177 $ 3,859,940 $ 1,079,536
Distributions from net ordinary income ** -- -- --
Distributions from net long-term capital gains -- -- 33,173
============================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
SEVEN MONTHS ENDED FEBRUARY 28, 2009 (NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 5,095,614 $ 2,133,665 $ 1,578,459 $ 1,122,076
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- -- -- --
==============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
72 Nuveen Investments
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
2008 (NUM) (NMP) (NZW)
-------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 10,748,540 $ 6,922,965 $ 1,960,679
Distributions from net ordinary income ** 68,426 12,818 --
Distributions from net long-term capital gains 1,574,122 748,463 198,609
=================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2008 (NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 8,988,444 $ 3,778,712 $ 2,803,986 $ 1,968,527
Distributions from net ordinary income ** 10,212 -- 3,297 --
Distributions from net long-term capital gains 882,398 532,929 248,931 177,807
==================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At February 28, 2009, the Funds' last tax year end, the Funds had unused capital
loss carryforwards available for federal income tax purposes to be applied
against future capital gains, if any. If not applied, the carryforwards will
expire as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Expiration:
February 28, 2016 $ -- $ 34,858 $ --
February 28, 2017 337,855 336,297 457,422
--------------------------------------------------------------------------------
Total $ 337,855 $ 371,155 $ 457,422
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------------------------
Expiration:
February 28, 2016 $ -- $ -- $ 14,045 $ --
February 28, 2017 1,309,059 40,911 522,972 52,530
-------------------------------------------------------------------------------------------------
Total $ 1,309,059 $ 40,911 $ 537,017 $ 52,530
=================================================================================================
The Funds have elected to defer net realized losses from investments incurred
from November 1, 2008 through February 28, 2009, the Funds' last tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the current
fiscal year:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Post-October capital losses $ 1,819,630 $ 1,315,963 $ 140,530
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
----------------------------------------------------------------------------------------------
Post-October capital losses $ 444,066 $ 161,562 $ 194,805 $ --
==============================================================================================
7. 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 the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
Nuveen Investments 73
| Notes to
| Financial Statements (Unaudited) (continued)
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
MICHIGAN QUALITY INCOME (NUM)
MICHIGAN PREMIUM INCOME (NMP)
OHIO QUALITY INCOME (NUO)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
-------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
===============================================================================
MICHIGAN DIVIDEND ADVANTAGE (NZW)
OHIO DIVIDEND ADVANTAGE (NXI)
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
OHIO DIVIDEND ADVANTAGE 3 (NVJ)
AVERAGE DAILY NET ASSETS (1) 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 net assets managed as stated in the following
table. As of August 31, 2009, the complex-level fee rate was .1936%. The
complex-level fee schedule is as follows:
COMPLEX-LEVEL NET ASSETS EFFECTIVE RATE AT BREAKPOINT LEVEL
BREAKPOINT LEVEL (1)
-------------------------------------------------------------------------------
$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
===============================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets include assets managed by the
Adviser that are attributable to financial leverage. For these purposes,
financial leverage includes the funds use of preferred stock and
borrowings and investments in the residual interest certificates (also
called inverse floating rate securities) in tender option bond (TOB)
trusts, including the portion of assets held by the TOB trust that has
been effectively financed by the trust's issuance of floating rate
securities, subject to an agreement by the Adviser to limit the amount of
such assets for determining managed net assets in certain circumstances.
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.
74 Nuveen Investments
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, 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, for fees and expenses in the amounts and for the time
periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Michigan Dividend Advantage (NZW) and
Ohio Dividend Advantage 2 (NBJ) for any portion of their fees and expenses
beyond September 30, 2011. For the first ten years of Ohio Dividend Advantage
3's (NVJ) operations, the Adviser has agreed to reimburse the Fund, as a
percentage of average daily net assets, 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.
8. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 166 (SFAS No. 166)
During June 2009, the Financial Accounting Standards Board issued SFAS No. 166,
"Accounting for Transfers of Financial Assets - an amendment of SFAS No. 140."
The objective of SFAS No. 166 is to improve the relevance, representational
faithfulness, and comparability of the information that a reporting entity
provides in its financial statements about a transfer of financial assets; the
effects of a transfer on its financial position, financial performance, and cash
flows; and a transferor's continuing involvement, if any, in transferred
financial assets.
SFAS No. 166 is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of SFAS No. 166 must be applied to transfers occurring on
or after the effective date. Additionally, the disclosure provisions of SFAS No.
166 should be applied to transfers that occurred both before and after the
effective date of SFAS No. 166. At this time, management is evaluating the
implications of SFAS No. 166 and the impact it will have on the financial
statement amounts and disclosures, if any.
Nuveen Investments 75
| Notes to
| Financial Statements (Unaudited) (continued)
9. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on October 1, 2009, to shareholders of record
on September 15, 2009, as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Dividend per share $.0620 $.0610 $. 0620
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Dividend per share $.0680 $.0640 $.0630 $.0670
================================================================================
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 165 (SFAS No. 165)
In May 2009, the Financial Accounting Standards Board issued SFAS No. 165
"Subsequent Events." SFAS No. 165 requires an entity to recognize in the
financial statements the effects of all subsequent events that provide
additional evidence about conditions that existed at the date of the balance
sheet. SFAS No. 165 is intended to establish general standards of accounting and
for disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. SFAS No. 165
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date - that is, whether that date
represents the date the financial statements were issued or were available to be
issued. SFAS No. 165 is effective for interim and annual periods ending after
June 15, 2009. The Funds have performed an evaluation of subsequent events
through October 27, 2009, which is the date the financial statements were
issued.
Preferred Shares
On October 1, 2009, Ohio Quality Income (NUO), noticed for redemption $4.0
million of its outstanding Preferred shares, at liquidation value. The Fund will
be using tender option bonds (TOBs) to finance the partial redemption of its
Preferred shares.
76 Nuveen Investments
| Financial
| Highlights(Unaudited)
Nuveen Investments 77
| Financial
| Highlights(Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
--------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
----------------------------------------------------------------------------------------------------------------------
MICHIGAN QUALITY INCOME (NUM)
----------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 13.55 $ .46 $ .74 $ (.02) $ -- $ 1.18
2009(b) 14.13 .54 (.60) (.13) -- (.19)
Year Ended 7/31:
2008 14.96 .93 (.71) (.24) (.04) (.06)
2007 15.17 .94 (.10) (.25) (.02) .57
2006 15.88 .96 (.52) (.21) (.02) .21
2005 15.51 .98 .57 (.13) (.01) 1.41
2004 15.14 1.01 .49 (.06) (.01) 1.43
MICHIGAN PREMIUM INCOME (NMP)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 13.26 .45 .64 (.02) -- 1.07
2009(b) 13.87 .52 (.63) (.12) -- (.23)
Year Ended 7/31:
2008 14.65 .89 (.69) (.23) (.02) (.05)
2007 14.92 .90 (.12) (.23) (.02) .53
2006 15.55 .91 (.40) (.18) (.02) .31
2005 15.19 .93 .50 (.11) -- 1.32
2004 15.24 .97 .38 (.04) (.03) 1.28
=======================================================================================================================
LESS DISTRIBUTIONS
--------------------------------------------
NET OFFERING
INVESTMENT CAPITAL COSTS AND ENDING
INCOME TO GAINS TO PREFERRED COMMON
COMMON COMMON SHARE SHARE ENDING
SHARE- SHARE- UNDERWRITING NET ASSET MARKET
HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE
---------------------------------------------------------------------------------------------------------------------
MICHIGAN QUALITY INCOME (NUM)
---------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ (.35) $ -- $ (.35) $ -- $ 14.38 $ 12.68
2009(b) (.39) -- (.39) -- 13.55 10.61
Year Ended 7/31:
2008 (.67) (.10) (.77) -- 14.13 12.32
2007 (.71) (.07) (.78) -- 14.96 14.16
2006 (.81) (.11) (.92) -- 15.17 14.41
2005 (.93) (.11) (1.04) -- 15.88 15.67
2004 (.95) (.11) (1.06) -- 15.51 15.20
MICHIGAN PREMIUM INCOME (NMP)
---------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) (.33) -- (.33) -- 14.00 12.26
2009(b) (.38) -- (.38) -- 13.26 10.44
Year Ended 7/31:
2008 (.66) (.07) (.73) -- 13.87 12.38
2007 (.71) (.09) (.80) -- 14.65 13.80
2006 (.79) (.15) (.94) -- 14.92 14.27
2005 (.91) (.05) (.96) -- 15.55 15.68
2004 (.94) (.39) (1.33) -- 15.19 14.37
=====================================================================================================================
PREFERRED SHARES AT END OF PERIOD
--------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
--------------------------------------------------------------------------------
MICHIGAN QUALITY INCOME (NUM)
--------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $87,325 $25,000 $72,899
2009(b) 90,900 25,000 68,651
Year Ended 7/31:
2008 94,000 25,000 69,023
2007 94,000 25,000 71,607
2006 94,000 25,000 72,270
2005 94,000 25,000 74,441
2004 94,000 25,000 73,169
MICHIGAN PREMIUM INCOME (NMP)
--------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 53,700 25,000 75,056
2009(b) 56,000 25,000 70,730
Year Ended 7/31:
2008 56,000 25,000 72,986
2007 56,000 25,000 75,695
2006 56,000 25,000 76,612
2005 56,000 25,000 78,783
2004 56,000 25,000 77,468
================================================================================
78 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
---------------------------- -------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN QUALITY INCOME (NUM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 23.08% 8.78% $167,312 1.27%*** 1.25%*** 6.64%***
2009(b) (10.68) (1.27) 158,717 1.33*** 1.33*** 6.92***
Year Ended 7/31:
2008 (7.77) (.43) 165,525 1.29 1.25 6.28
2007 3.64 3.77 175,244 1.26 1.22 6.12
2006 (2.28) 1.41 177,734 1.23 1.23 6.17
2005 9.94 9.28 185,900 1.22 1.22 6.13
2004 5.17 9.52 181,114 1.22 1.22 6.44
MICHIGAN PREMIUM INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 20.92 8.19 107,520 1.28*** 1.25*** 6.63***
2009(b) (12.57) (1.62) 102,434 1.32*** 1.32*** 6.83***
Year Ended 7/31:
2008 (5.09) (.36) 107,488 1.38 1.23 6.16
2007 2.16 3.59 113,558 1.38 1.22 5.97
2006 (3.12) 2.06 115,611 1.20 1.20 6.03
2005 16.03 8.80 120,475 1.19 1.19 5.97
2004 5.46 8.56 117,529 1.20 1.20 6.28
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
---------------------------------------------------------------------------------------------------
MICHIGAN QUALITY INCOME (NUM)
---------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.27%*** 1.25%*** 6.64%*** 5%
2009(b) 1.33*** 1.33*** 6.93*** 3
Year Ended 7/31:
2008 1.28 1.24 6.29 18
2007 1.24 1.20 6.14 13
2006 1.22 1.22 6.19 18
2005 1.21 1.21 6.14 8
2004 1.22 1.22 6.45 15
MICHIGAN PREMIUM INCOME (NMP)
---------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.28*** 1.25*** 6.63*** 5
2009(b) 1.31*** 1.31*** 6.83*** 3
Year Ended 7/31:
2008 1.36 1.22 6.18 20
2007 1.37 1.21 5.98 15
2006 1.19 1.19 6.03 6
2005 1.17 1.17 5.98 11
2004 1.19 1.19 6.30 28
===================================================================================================
* Total Return Based 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 Based 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; Net Investment Income ratios reflect income earned and
expenses incurred 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 seven months ended February 28, 2009.
(c) For the six months ended August 31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 79
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
-----------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN DIVIDEND ADVANTAGE (NZW)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 12.69 $ .46 $ 1.09 $ (.02) $ -- $1.53
2009(b) 13.68 .54 (1.00) (.13) --*** (.59)
Year Ended 7/31:
2008 14.73 .94 (.95) (.24) (.02) (.27)
2007 14.94 .95 (.14) (.24) --*** .57
2006 15.44 .97 (.40) (.20) -- .37
2005 14.82 .98 .63 (.11) -- 1.50
2004 14.30 .99 .47 (.05) -- 1.41
===================================================================================================================================
LESS DISTRIBUTIONS
--------------------------------------
NET OFFERING
INVESTMENT CAPITAL COSTS AND ENDING
INCOME TO GAINS TO PREFERRED COMMON
COMMON COMMON SHARE SHARE ENDING
SHARE- SHARE- UNDERWRITING NET ASSET MARKET
HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE
-----------------------------------------------------------------------------------------------------------------------
MICHIGAN DIVIDEND ADVANTAGE (NZW)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ (.34) $ -- $ (.34) $ -- $ 13.88 $ 12.22
2009(b) (.39) (.01) (.40) -- 12.69 10.77
Year Ended 7/31:
2008 (.71) (.07) (.78) -- 13.68 13.10
2007 (.77) (.01) (.78) -- 14.73 15.10
2006 (.87) -- (.87) -- 14.94 15.81
2005 (.89) -- (.89) .01 15.44 16.79
2004 (.89) -- (.89) -- 14.82 14.65
=======================================================================================================================
PREFERRED SHARES AT END OF PERIOD
------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
--------------------------------------------------------------------------------
MICHIGAN DIVIDEND ADVANTAGE (NZW)
--------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $14,275 $25,000 $75,220
2009(b) 14,925 25,000 68,946
Year Ended 7/31:
2008 16,000 25,000 69,195
2007 16,000 25,000 72,561
2006 16,000 25,000 73,161
2005 16,000 25,000 74,720
2004 16,000 25,000 72,716
================================================================================
80 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
----------------------- --------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
-----------------------------------------------------------------------------------------------------------------------------
MICHIGAN DIVIDEND ADVANTAGE (NZW)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 16.89% 12.18% $ 28,675 1.37%**** 1.34%**** 6.67%****
2009(b) (14.48) (4.20) 26,236 1.48**** 1.48**** 7.03****
Year Ended 7/31:
2008 (8.10) (1.95) 28,285 1.39 1.34 6.23
2007 .46 3.79 30,439 1.38 1.35 5.89
2006 (.47) 2.46 30,823 1.31 1.31 5.92
2005 21.34 10.41 31,821 1.27 1.27 5.93
2004 2.99 10.00 30,538 1.28 1.28 6.13
=============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
----------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
----------------------------------------------------------------------------------------------------
MICHIGAN DIVIDEND ADVANTAGE (NZW)
----------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.14%**** 1.11%**** 6.91%**** 4%
2009(b) 1.20**** 1.20**** 7.31**** 4
Year Ended 7/31:
2008 1.05 1.01 6.57 18
2007 .96 .93 6.31 19
2006 .83 .83 6.40 8
2005 .81 .81 6.39 8
2004 .81 .81 6.60 9
====================================================================================================
* Total Return Based 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 Based 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.
*** Rounds to less than $.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; Net Investment Income ratios reflect income earned and
expenses incurred 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 seven months ended February 28, 2009.
(c) For the six months ended August 31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 81
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
----------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
-----------------------------------------------------------------------------------------------------------------------------
OHIO QUALITY INCOME (NUO)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 14.56 $ .49 $ .87 $(.02) $ -- $1.34
2009(b) 15.04 .56 (.52) (.13) -- (.09)
Year Ended 7/31:
2008 15.81 .95 (.71) (.25) (.02) (.03)
2007 16.01 .96 (.12) (.26) (.01) .57
2006 16.58 .98 (.42) (.22) (.01) .33
2005 16.21 1.02 .49 (.12) -- 1.39
2004 16.17 1.07 .25 (.06) (.01) 1.25
OHIO DIVIDEND ADVANTAGE (NXI)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 13.83 .47 .78 (.02) -- 1.23
2009(b) 14.25 .54 (.46) (.12) -- (.04)
Year Ended 7/31:
2008 14.87 .93 (.55) (.23) (.03) .12
2007 15.02 .94 (.09) (.24) (.01) .60
2006 15.55 .96 (.40) (.21) -- .35
2005 15.05 1.00 .57 (.11) -- 1.46
2004 14.66 1.04 .40 (.06) -- 1.38
=============================================================================================================================
LESS DISTRIBUTIONS
----------------------------------------
NET OFFERING
INVESTMENT CAPITAL COSTS AND ENDING
INCOME TO GAINS TO PREFERRED COMMON
COMMON COMMON SHARE SHARE ENDING
SHARE- SHARE- UNDERWRITING NET ASSET MARKET
HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE
----------------------------------------------------------------------------------------------------------------------------
OHIO QUALITY INCOME (NUO)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ (.37) $ -- $ (.37) $ -- $ 15.53 $ 14.56
2009(b) (.39) -- (.39) -- 14.56 12.90
Year Ended 7/31:
2008 (.67) (.07) (.74) -- 15.04 13.40
2007 (.73) (.04) (.77) -- 15.81 14.43
2006 (.85) (.05) (.90) -- 16.01 15.83
2005 (.98) (.04) (1.02) -- 16.58 16.96
2004 (1.00) (.21) (1.21) -- 16.21 16.30
OHIO DIVIDEND ADVANTAGE (NXI)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) (.36) -- (.36) -- 14.70 13.65
2009(b) (.38) -- (.38) -- 13.83 12.10
Year Ended 7/31:
2008 (.65) (.09) (.74) -- 14.25 12.77
2007 (.72) (.03) (.75) -- 14.87 14.39
2006 (.85) (.03) (.88) -- 15.02 15.05
2005 (.96) -- (.96) -- 15.55 17.00
2004 (.97) (.02) (.99) -- 15.05 14.80
==================================================================================================================================
PREFERRED SHARES AT END OF PERIOD
-------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
--------------------------------------------------------------------------------
OHIO QUALITY INCOME (NUO)
--------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 77,000 $ 25,000 $ 74,148
2009(b) 77,000 25,000 71,066
Year Ended 7/31:
2008 77,000 25,000 72,603
2007 77,000 25,000 75,017
2006 77,000 25,000 75,658
2005 77,000 25,000 77,267
2004 77,000 25,000 75,855
OHIO DIVIDEND ADVANTAGE (NXI)
--------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 31,000 25,000 75,300
2009(b) 31,000 25,000 72,332
Year Ended 7/31:
2008 31,000 25,000 73,770
2007 31,000 25,000 75,898
2006 31,000 25,000 76,400
2005 31,000 25,000 78,123
2004 31,000 25,000 76,324
================================================================================
82 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
-------------------- --------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES(000) INTEREST++(a) INTEREST++(a) INCOME++
----------------------------------------------------------------------------------------------------------------------------------
OHIO QUALITY INCOME (NUO)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(C) 15.96% 9.35% $151,377 1.24%*** 1.24%*** 6.61%***
2009(b) (0.71) (0.49) 141,883 1.35*** 1.31*** 6.77***
Year Ended 7/31:
2008 (2.18) (.26) 146,617 1.42 1.26 6.08
2007 (4.25) 3.56 154,052 1.29 1.19 5.94
2006 (1.36) 2.10 156,026 1.20 1.20 6.05
2005 10.25 8.70 160,982 1.19 1.19 6.16
2004 2.59 7.87 156,634 1.20 1.20 6.46
OHIO DIVIDEND ADVANTAGE (NXI)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(C) 16.03 9.03 62,371 1.23*** 1.23*** 6.51***
2009(b) (2.08) (0.15) 58,692 1.35*** 1.31*** 6.64***
Year Ended 7/31:
2008 (6.21) .83 60,475 1.39 1.24 6.06
2007 .52 4.02 63,114 1.32 1.22 5.85
2006 (6.53) 2.32 63,735 1.21 1.21 5.85
2005 21.79 9.87 65,873 1.21 1.21 6.00
2004 10.70 9.54 63,642 1.20 1.20 6.41
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
------------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
----------------------------------------------------------------------------------------------
OHIO QUALITY INCOME (NUO)
----------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.24%*** 1.24%*** 6.61%*** 3%
2009(b) 1.34*** 1.30*** 6.78*** 10
Year Ended 7/31:
2008 1.41 1.25 6.09 14
2007 1.27 1.17 5.95 15
2006 1.19 1.19 6.06 9
2005 1.18 1.18 6.17 14
2004 1.19 1.19 6.47 31
OHIO DIVIDEND ADVANTAGE (NXI)
----------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.07*** 1.07*** 6.67*** 3
2009(b) 1.11*** 1.08*** 6.88*** 10
Year Ended 7/31:
2008 1.11 .96 6.34 17
2007 .96 .86 6.21 14
2006 .76 .76 6.30 6
2005 .76 .76 6.46 14
2004 .75 .75 6.86 10
==============================================================================================
* Total Return Based 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 Based 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; Net Investment Income ratios reflect income earned and
expenses incurred 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 seven months ended February 28, 2009.
(c) For the six months ended August 31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 83
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
-------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------------
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 13.06 $ .46 $ .84 $ (.02) $ -- $ 1.28
2009(b) 13.87 .54 (.84) (.13) -- (.43)
Year Ended 7/31:
2008 14.64 .93 (.73) (.25) (.02) (.07)
2007 14.81 .92 (.10) (.25) (.01) .56
2006 15.37 .93 (.41) (.22) (.01) .29
2005 14.85 .95 .61 (.12) -- 1.44
2004 14.31 .99 .53 (.06) -- 1.46
OHIO DIVIDEND ADVANTAGE 3 (NVJ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 13.97 .49 .80 (.02) -- 1.27
2009(b) 14.33 .55 (.39) (.12) -- .04
Year Ended 7/31:
2008 14.92 .95 (.56) (.23) (.02) .14
2007 15.06 .96 (.08) (.25) (.01) .62
2006 15.57 .95 (.45) (.22) -- .28
2005 14.93 .95 .69 (.11) -- 1.53
2004 14.48 .96 .51 (.06) (.01) 1.40
========================================================================================================================
LESS DISTRIBUTIONS
-------------------------------------
NET OFFERING
INVESTMENT CAPITAL COSTS AND ENDING
INCOME TO GAINS TO PREFERRED COMMON
COMMON COMMON SHARE SHARE ENDING
SHARE- SHARE- UNDERWRITING NET ASSET MARKET
HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE
------------------------------------------------------------------------------------------------------------------------
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ (.34) $ -- $ (.34) $ -- $ 14.00 $ 12.83
2009(b) (.38) -- (.38) -- 13.06 11.58
Year Ended 7/31:
2008 (.64) (.06) (.70) -- 13.87 12.37
2007 (.69) (.04) (.73) -- 14.64 13.80
2006 (.80) (.05) (.85) -- 14.81 14.70
2005 (.90) (.02) (.92) -- 15.37 15.48
2004 (.92) -- (.92) -- 14.85 14.70
OHIO DIVIDEND ADVANTAGE 3 (NVJ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) (.37) -- (.37) -- 14.87 13.72
2009(b) (.40) -- (.40) -- 13.97 11.95
Year Ended 7/31:
2008 (.67) (.06) (.73) -- 14.33 12.91
2007 (.72) (.04) (.76) -- 14.92 14.35
2006 (.79) -- (.79) -- 15.06 14.75
2005 (.87) (.02) (.89) -- 15.57 15.90
2004 (.88) (.07) (.95) -- 14.93 14.30
========================================================================================================================
PREFERRED SHARES AT END OF PERIOD
---------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
--------------------------------------------------------------------------------
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
--------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $23,100 $25,000 $72,308
2009(b) 23,100 25,000 69,107
Year Ended 7/31:
2008 24,000 25,000 70,090
2007 24,000 25,000 72,598
2006 24,000 25,000 73,169
2005 24,000 25,000 74,935
2004 24,000 25,000 73,196
OHIO DIVIDEND ADVANTAGE 3 (NVJ)
--------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 16,500 25,000 73,591
2009(b) 16,500 25,000 70,647
Year Ended 7/31:
2008 16,500 25,000 71,881
2007 16,500 25,000 73,778
2006 16,500 25,000 74,252
2005 16,500 25,000 75,918
2004 16,500 25,000 73,800
================================================================================
84 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
-------------------- -----------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(A) INTEREST++(A) INCOME++
-------------------------------------------------------------------------------------------------------------------------------
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 13.95% 9.94% $ 43,712 1.31%*** 1.31%*** 6.58%***
2009(b) (3.09) (3.01) 40,755 1.46*** 1.42*** 6.91***
Year Ended 7/31:
2008 (5.46) (.51) 43,286 1.46 1.30 6.10
2007 (1.26) 3.80 45,694 1.41 1.31 5.76
2006 .35 1.96 46,242 1.27 1.27 5.71
2005 11.63 9.90 47,937 1.23 1.23 5.71
2004 9.60 10.33 46,268 1.25 1.25 6.13
OHIO DIVIDEND ADVANTAGE 3 (NVJ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 18.07 9.23 32,070 1.33*** 1.33*** 6.58***
2009(b) (4.29) .36 30,127 1.46*** 1.42*** 6.63***
Year Ended 7/31:
2008 (5.13) .95 30,941 1.47 1.32 6.05
2007 2.32 4.06 32,194 1.41 1.31 5.85
2006 (2.33) 1.87 32,506 1.28 1.28 5.76
2005 17.60 10.40 33,606 1.27 1.27 5.68
2004 5.86 9.72 32,208 1.28 1.28 5.87
===============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
-----------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
----------------------------------------------------------------------------------------------------------
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
----------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.07%*** 1.07%*** 6.81%*** 2%
2009(b) 1.19*** 1.15*** 7.18*** 5
Year Ended 7/31:
2008 1.12 .96 6.43 16
2007 1.00 .90 6.17 14
2006 .78 .78 6.19 8
2005 .77 .77 6.17 14
2004 .79 .79 6.60 15
OHIO DIVIDEND ADVANTAGE 3 (NVJ)
----------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.09*** 1.09*** 6.82*** 6
2009(b) 1.14*** 1.11*** 6.94*** 9
Year Ended 7/31:
2008 1.10 .95 6.43 19
2007 .96 .86 6.30 19
2006 .81 .81 6.23 2
2005 .81 .81 6.14 3
2004 .81 .81 6.34 8
==========================================================================================================
* Total Return Based 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 Based 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; Net Investment Income ratios reflect income earned and
expenses incurred 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 seven months ended February 28, 2009.
(c) For the six months ended August 31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 85
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be) (each a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreements (each an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board
Members reviewed a broad range of information relating to the Funds and NAM,
including absolute performance, fee and expense information for the Funds as
well as comparative performance, fee and expense information for a comparable
peer group of funds, the performance information of recognized and/or customized
benchmarks (as applicable) of the Funds, the profitability of Nuveen for its
advisory activities (which includes its wholly owned subsidiaries other than
Winslow Capital Management, Inc. ("Winslow Capital"), which was recently
acquired in December 2008), and other information regarding the organization,
personnel, and services provided by NAM. The Independent Board Members also met
quarterly as well as at other times as the need arose during the year and took
into account the information provided at such meetings and the knowledge gained
therefrom. Prior to approving the renewal of the Advisory Agreements, the
Independent Board Members reviewed the foregoing information with their
independent legal counsel and with management, reviewed materials from
independent legal counsel describing applicable law and their duties in
reviewing advisory contracts, and met with independent legal counsel in private
sessions without management present. The Independent Board Members considered
the legal advice provided by independent legal counsel and relied upon their
knowledge of NAM, its services and the Funds resulting from their meetings and
other interactions throughout the year and their own business judgment in
determining the factors to be considered in evaluating
86 Nuveen Investments
the Advisory Agreements. Each Board Member may have accorded different weight to
the various factors in reaching his or her conclusions with respect to a Fund's
Advisory Agreement. The Independent Board Members did not identify any single
factor as all-important or controlling. The Independent Board Members'
considerations were instead based on a comprehensive consideration of all the
information presented. The principal factors considered by the Board and its
conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line.
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Nuveen funds' investment strategies and mandates in
seeking to continue to refine and improve the investment process for the funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPs") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refinancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial advisers.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a
Nuveen Investments 87
Annual Investment Management Agreement Approval Process (continued)
variety of programs designed to raise investor and analyst awareness and
understanding of closed-end funds. These efforts include maintaining an investor
relations program to provide timely information and education to financial
advisers and investors; providing advertising and marketing for the closed-end
funds; maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods (as applicable) ending December 31, 2008 and for the same
periods (as applicable) ending March 31, 2009. The Independent Board Members
also reviewed performance information of the Nuveen municipal funds managed by
NAM in the aggregate ranked by peer group and the performance of such funds, in
the aggregate, relative to their benchmark. This information supplemented the
Fund performance information provided to the Board at each of its quarterly
meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile
88 Nuveen Investments
market conditions during the past year, and their impact on various asset
classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to the
fee and expenses of a comparable universe of unaffiliated funds based on
data provided by an independent fund data provider (the "Peer Universe")
and in certain cases, to a more focused subset of funds in the Peer
Universe (the "Peer Group").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such as
the asset level of a fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members also considered, among other things, the
differences in the use and type of leverage compared to the peers. The
Independent Board Members also considered the differences in the states
reflected in the respective Peer Group. In reviewing the fee schedule for a
Fund, the Independent Board Members also considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain closed-end funds launched since 1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among other
things, because of the different services involved and the additional
regulatory and compliance requirements associated with registered
investment companies, such as the Funds. Accordingly, the Independent Board
Members considered the differences in the product types, including, but not
limited
Nuveen Investments 89
Annual Investment Management Agreement Approval Process (continued)
to, the services provided, the structure and operations, product
distribution and costs thereof, portfolio investment policies, investor
profiles, account sizes and regulatory requirements. The Independent Board
Members noted, in particular, that the range of services provided to the
Funds (as discussed above) is much more extensive than that provided to
separately managed accounts. Given the inherent differences in the
products, particularly the extensive services provided to the Funds, the
Independent Board Members believe such facts justify the different levels
of fees.
3. Profitability of Nuveen
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than
Winslow Capital) and its financial condition. The Independent Board Members
reviewed the revenues and expenses of Nuveen's advisory activities for the
last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes in
revenues and expenses that impacted profitability in 2008. In addition, the
Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as changes
in fee waivers and expense reimbursement commitments). In this regard, the
Independent Board Members noted that they had also appointed an Independent
Board Member as a point person to review and keep them apprised of changes
to the profitability analysis and/or methodologies during the year. The
Independent Board Members also considered Nuveen's revenues for advisory
activities, expenses, and profit margin compared to that of various
unaffiliated management firms with similar amounts of assets under
management and relatively comparable asset composition prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making comparisons
as the profitability of other advisers generally is not publicly available
and the profitability information that is available for certain advisers or
management firms may not be representative of the industry and may be
affected by, among other things, the adviser's particular business mix,
capital costs, types of funds managed and expense allocations.
Notwithstanding the foregoing, the Independent Board Members reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In reviewing profitability, the
Independent Board Members recognized Nuveen's investment in its fund
business.
Based on their review, the Independent Board Members concluded that
Nuveen's level of profitability for its advisory activities was reasonable
in light of the services provided.
90 Nuveen Investments
In evaluating the reasonableness of the compensation, the Independent Board
Members also considered other amounts paid to NAM by the Funds as well as
any indirect benefits (such as soft dollar arrangements, if any) NAM and
its affiliates receive, or are expected to receive, that are directly
attributable to the management of the Funds, if any. See Section E below
for additional information on indirect benefits NAM may receive as a result
of its relationship with the Funds. Based on their review of the overall
fee arrangements of each Fund, the Independent Board Members determined
that the advisory fees and expenses of the respective Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share offerings,
the growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio. While economies of scale result when costs can be
spread over a larger asset base, the Independent Board Members also recognized
that the asset levels generally declined in 2008 due to, among other things, the
market downturn. Accordingly, for funds with a reduction in assets under
management, advisory fee levels may have increased as breakpoints in the fee
schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Generally, the complex-wide pricing reduces
Nuveen's revenue because total complex fund assets have consistently grown in
prior years. As noted, however, total fund assets declined in 2008 resulting in
a smaller downward adjustment of revenues due to complex-wide pricing compared
to the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
Nuveen Investments 91
Annual Investment Management Agreement Approval Process (continued)
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
92 Nuveen Investments
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
Nuveen Investments 93
Reinvest Automatically Easily and Conveniently (continued)
per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution
had been paid in shares issued by the Fund. A pro rata portion of any
applicable brokerage commissions on open market purchases will be paid by
Plan participants. These commissions usually will be lower than those
charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any
time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment
account and cash payment for fractional shares, or cash payment for all
reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You can reinvest whether your shares are registered in your name, or in
the name of a brokerage firm, bank, or other nominee. Ask your investment
advisor if his or her firm will participate on your behalf. Participants
whose shares are registered in the name of one firm may not be able to
transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although the Fund reserves the right to amend the Plan to include a
service charge payable by the participants, there is no direct service
charge to participants in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to
enroll in or withdraw from the Plan, speak with your financial advisor or
call us at (800) 257-8787.
94 Nuveen Investments
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the
bond. Auctions that fail to attract enough buyers for all the shares
offered for sale are deemed to have "failed," with current holders
receiving a formula-based interest rate until the next scheduled
auction.
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, also known as
inverse floaters, 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.
Nuveen Investments 95
Glossary of Terms Used in this Report (continued)
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 NAV per common share is calculated
by subtracting the liabilities of the Fund (including any Preferred
shares issued in order to leverage the Fund) from its total assets
and then dividing the remainder by the number of common 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.
96 Nuveen Investments
Other Useful Information
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
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
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's 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, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
NUM 76,200 143
NMP 42,300 92
NZW 900 26
NUO -- --
NXI -- --
NBJ -- --
NVJ -- --
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 97
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.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $128 billion of
assets on June 30, 2009.
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/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC It's not what you earn
333 West Wacker Drive it's what you keep(R)
Chicago, IL 60606
www.nuveen.com
ESA-C 0809D
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.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
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.
Period* (a) (b) (c) (d)*
TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR
SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF
UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET
PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR
UNIT) PROGRAMS PROGRAMS
MARCH 1-31, 2009 65,400 $10.17 65,400 1,104,600
APRIL 1-30, 2009 9,200 $10.96 9,200 1,095,400
MAY 1-31, 2009 0 0 1,095,400
JUNE 1-30, 2009 600 $11.40 600 1,094,800
JULY 1-31, 2009 1,000 $11.63 1,000 1,093,800
AUGUST 1-31, 2008 0 0 1,093,800
TOTAL 76,200
* The registrant's repurchase program, which authorized the repurchase of
1,170,000 shares, was announced August 7, 2008. Any repurchases made by the
registrant pursuant to the program were made through open-market
transactions.
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 of Directors or Trustees
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: See
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: See 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: November 6, 2009
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: November 6, 2009
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By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: November 6, 2009
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