ANNUAL REPORT May 31, 2000
LOGO: NUVEEN Investments
EXCHANGE-TRADED Funds
Dependable, tax-free income to help
you keep more of what you earn.
CONNECTICUT
NTC
MASSACHUSETTS
NMT
MISSOURI
NOM
Invest well.
Look ahead.
LEAVE YOUR MARK.sm
PHOTO: WATER
PHOTO: THREE PEOPLE LOOKING AT SMALL OBJECT
<PAGE>
Credit Quality
HIGHLIGHTS As of May 31, 2000
Nuveen Connecticut Premium Income
Municipal Fund (NTC)
pie chart:
AAA/U.S. Guaranteed 72%
AA 22%
BBB/NR 6%
Nuveen Massachusetts Premium Income
Municipal Fund (NMT)
pie chart:
AAA/U.S. Guaranteed 60%
AA 20%
A 12%
BBB/NR 8%
Nuveen Missouri Premium Income
Municipal Fund (NOM)
pie chart:
AAA/U.S. Guaranteed 71%
AA 13%
BBB/NR 16%
CONTENTS
1 Dear Shareholder
3 NTC Portfolio Manager's Comments
6 NTC Performance Overview
7 NMT Portfolio Manager's Comments
10 NMT Performance Overview
11 NOM Portfolio Manager's Comments
14 NOM Performance Overview
15 Shareholder Meeting Report
16 Report of Independent Auditors
17 Portfolio of Investments
26 Statement of Net Assets
27 Statement of Operations
28 Statement of Changes
in Net Assets
29 Notes to Financial Statements
33 Financial Highlights
36 Build Your Wealth Automatically
37 Fund Information
<PAGE>
Dear SHAREHOLDER
PHOTO: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
sidebar:
"BUILDING
AND
SUSTAINING
WEALTH
REQUIRES
SOUND,
ONGOING
ADVICE."
The primary objective of your Nuveen Municipal Exchange-Traded Fund is to
provide dependable, attractive tax-free dividends. I am very happy to report
that your Fund continued to achieve this goal during the period covered by this
report. For more specifics on this performance, I encourage you to read the
Portfolio Manager's Comments and Performance Overview pages for your Fund that
follow this letter.
We believe that your Nuveen Exchange-Traded Fund, as an income-oriented
investment, is well positioned to be a core element of your long-term investment
program. With the help of your financial advisor, all of us at Nuveen
Investments are dedicated to providing the services, products, perspectives, and
solutions that you need to help you meet your personal and family goals.
NEW WAYS TO THINK ABOUT WEALTH
Over the past few years, much attention has been directed toward the ways
investors are accumulating wealth. At Nuveen, we believe it is equally important
for investors to focus on preserving that wealth, on the responsibilities that
accompany wealth, and on the legacies we will leave for future generations.
This long-term perspective is key to understanding our portfolio management
strategies, our insistence on quality, and our determination to provide
investments that can withstand the test of time. It is a philosophy that we
think is well encapsulated in our brand theme: Invest Well. Look Ahead. Leave
Your Mark.
INVEST WELL
Building and sustaining the wealth that can result in lasting legacies requires
a well-developed plan, sound ongoing advice, and the discipline to remain
focused on long-term results. With today's abundance of investment products and
offers, it also increasingly requires an experienced and trusted advisor who can
guide you through the opportunities and the pitfalls. With so much potentially
at stake, Nuveen Investments is dedicated to delivering quality products like
your Nuveen Fund through the financial advisors who assist you in making wise
investment choices and help you manage your most important financial assets.
<PAGE>
sidebar:
"WE BELIEVE
YOUR NUVEEN
EXCHANGE-
TRADED
FUND
IS WELL
POSITIONED
TO BE
A CORE
ELEMENT
OF YOUR
LONG-TERM
INVESTMENT
PROGRAM."
LOOK AHEAD
We urge all our investors to look ahead, not only toward their own goals and
futures, but those of future generations as well. We now stand on the threshold
of a new century, anticipating a time of change, discovery, and potential that
may one day make the year 2000 seem as archaic as the year 1900. While we cannot
know all that the future will bring, we do know that a well-diversified,
carefully monitored investment program that combines elements of growth, income,
and capital preservation forms a solid foundation that can help us meet whatever
opportunities and challenges the new century has to offer.
LEAVE YOUR MARK
With the enormous wealth creation of the past decade and the considerable
intergenerational transfer of wealth that is expected to occur over the next 20
years, investors today have a significant opportunity to shape the financial
future for themselves and their families. These opportunities may include
establishing trusts, endowments, or legacies that can directly affect our
families and communities for generations to come. We at Nuveen Investments are
committed to facilitating and raising the level of dialogue between investors
and their financial advisors in ways that help meet goals that extend far beyond
the boundaries of a single life span.
Since 1898, the name Nuveen has been synonymous with quality investments,
careful research and prudent management. Today, more than ever, the investments
and services we offer through financial advisors are designed to be well suited
to those who recognize and embrace the need for building and managing wealth. We
encourage you to speak with your financial advisor about how you can enhance
your investment program in ways that can help you Invest Well, Look Ahead, and
Leave Your Mark.
Sincerely,
/s/Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
July 17, 2000
<PAGE>
Nuveen Connecticut Premium Income Municipal Fund (NTC)
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan looks at the national and Connecticut economy,
municipal market and fund performance, and the outlook for the Nuveen
Connecticut Premium Income Municipal Fund (NTC). Paul began his investment
career at Flagship in 1991, joining Nuveen in 1997 following Nuveen's
acquisition of Flagship. He has managed NTC since August 1999.
WHAT FACTORS AFFECTED THE ECONOMY OVER THE PAST 12 MONTHS?
A look at the national economy will help us put the Connecticut economy in
better perspective. Over the past 12 months, the rapid pace of the country's
economic expansion has been of immense concern to the Federal Reserve, which has
been on alert for any signs of re-emerging inflation. Special areas of concern
included unabated consumer spending, the tightest labor markets in 30 years, and
rising commodity prices. In June 1999, this combination of factors prompted the
Federal Reserve to begin a series of six short-term interest rate increases that
eventually raised the federal funds rate by 1.75% to 6.50% in May 2000. As the
Fed acted and then left the door open for additional tightenings, investor
uncertainty grew, the equity markets became increasingly volatile, and bond
prices declined as yields moved higher. The Fed's rate hikes left the Treasury
yield curve inverted, with the yield on a two-year note about 60 basis points
higher than that of a 30-year bond as of the end of May.
In the past month, however, we have begun to see some tentative indications that
the Fed's tightening strategy may be having the desired effect, with demand
moderating to a more sustainable level. In coming months, investors most likely
will be closely watching economic reports for confirmation of this slowdown, in
hopes that the economy may truly be headed for a soft landing.
Economic growth in Connecticut has continued to be strong, with state residents
enjoying one of the highest per capita income levels in the country. During the
past two years, the strength of the state economy has enabled the Connecticut
legislature to enact significant tax cuts, with the 1999 sales tax rebate
program totaling almost $110 million. In May 2000, strong gains in the services
sector brought unemployment in the state to 2.3%, down from 3.4% in May 1999 and
below the national average of 4.1%. The scarcity of skilled workers in the
state's labor market, as well as the residual effect of manufacturing job
losses, is expected to cause growth to moderate somewhat in the near term.
The robust economy of the past decade benefited the balance sheets of many
municipalities, with Fitch, for instance, upgrading the city of Bridgeport to A-
from BBB- in January 2000. Connecticut itself continued to be rated Aa3 by
Moody's and AA by both Standard & Poor's and Fitch.
HOW HAVE THESE EVENTS IMPACTED THE MUNICIPAL MARKET?
The cumulative effects of the economic events of the past 12 months were
negative for the fixed-income markets, including municipal bonds. Once the Fed
began its series of interest rate hikes, the rise in municipal yields
accelerated. Over the 12 months ended May 2000, long-term municipal yields
nationally rose almost 75 basis points, compared with a gain of about 20 points
in 30-year Treasury yields. The Treasury market was affected during the period
by the announcement that the U.S. Treasury would be buying back a substantial
amount of U.S. Government debt and reduce additional new issuance of certain
maturities. The possibility of decreased supply helped support Treasury bond
prices. Municipals were unaffected by this repurchase policy
<PAGE>
and therefore were subject to the full effect of market forces. As a result, by
the end of May 2000, long-term municipal yields nationally were 103% of 30-year
Treasury yields, compared with the historical average of 86% for the period
1986-1999.
During the first five months of 2000, new municipal issuance nationwide declined
24% from the level of the first five months of 1999. In Connecticut, the drop
was even more severe, as issuance fell almost 35%. The problem of limited
issuance in the state was compounded by the lack of breadth. A geographically
small state, Connecticut has relatively fewer political subdivisions and,
therefore, relatively few borrowers, and most bonds are issued at the state
level. The decline in supply continued the trend begun last year, as the rising
interest rate environment deterred municipalities from issuing new bonds or
refinancing old debt. In addition, robust tax revenue collections have enabled
many issuing entities to use more pay-as-you- go financings rather than use
bonds to fund projects.
Overall, the decline in supply helped to offset some of the negative impact that
higher interest rates and equity market activity had on the demand for municipal
bonds and, ultimately, on bond prices. Over the past 12 months, demand from
individual investors, especially in a wealthy state such as Connecticut,
provided some support for a municipal market experiencing a decline in demand
from institutional investors, particularly mutual and money market funds.
WAS NTC'S DIVIDEND AFFECTED BY THIS ENVIRONMENT?
As of May 31, 2000, NTC had provided shareholders with 64 consecutive months of
steady or increasing dividends. Good call protection within NTC's portfolio
helped to maintain the dividend by reducing some of the forced turnover that
bond calls can generate. We continue to actively manage the Fund in an effort to
mitigate the longer-term effects of the bond call process, and our goal for NTC
will continue to be providing attractive income in the months ahead.
NTC is a leveraged fund. Leverage can enhance the dividends paid to common
shareholders, but the extent of the benefit is tied to some degree to the
short-term rates the Fund pays its MuniPreferred(R) shareholders. As short-term
rates rise, the income available for common shareholder dividends decreases. As
noted, the Federal Reserve raised short-term rates six times between June 1999
and May 2000, and these actions had a corresponding effect on short-term
municipal rates. This may exert an influence on the Fund's common share
dividends in the future if short-rates remain at high recent levels.
OVERALL, HOW DID NTC PERFORM OVER THE PAST YEAR?
For the 12 months ended May 31, 2000, NTC produced a total return on net asset
value (NAV) as shown in the accompanying table. For comparison purposes, the
annual returns for the Lehman Brothers Municipal Bond Index1 and appropriate
Lipper Peer Group2 are also presented.
LEHMAN
TOTAL LIPPER
MARKET YIELD TOTAL RETURN ON NAV RETURN(1) AVERAGE(2)
================================================================================
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED TAXABLE- ENDED ENDED
5/31/00 EQUIVALENT(3) 5/31/00 EQUIVALENT(3) 5/31/00 5/31/00
================================================================================
NTC 6.04% 9.15% -4.87% -1.88% -0.86% -6.34%
================================================================================
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for NTC in
this report.
The relative underperformance of NTC's total return on NAV compared with the
Lehman Brothers Municipal Bond Index can be attributed largely to the Fund's
duration(4), which is a measure of a Fund's NAV volatility in reaction to
interest rate movements. This is a leveraged Fund, and while leverage can
enhance the dividends paid to common shareholders, it also has the effect of
lengthening a Fund's duration. In addition, durations often are lengthened as we
look to maintain call protection within a portfolio. As of May 31, 2000, NTC's
duration was 13.44, compared with the unleveraged Lehman index's 7.46.
We continue to believe that NTC's longer duration and good call protection
should help to strengthen the relative stability of the Fund's common share
dividends over the long term and also position the Fund to benefit from any
market recovery.
1 NTC's performance is compared with that of the Lehman Brothers Municipal
Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 NTC's total return is compared with the average annualized return of the 19
funds in the Lipper Other States Municipal Debt Funds category. Fund and
Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield/ total return represents the yield/total
return that must be earned on a taxable investment in order to equal the
yield/total return of the Nuveen Fund on an after-tax basis. The
taxable-equivalent yield is based on the Fund's market yield on the
indicated date and a combined federal and state income tax rate of 34%,
while the taxable-equivalent total return is based on the annualized total
return as of the indicated date and the combined 34% federal and state
income tax rate.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Fund and therefore is generally longer than
the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
<PAGE>
WHAT ABOUT NTC'S SHARE PRICE PERFORMANCE?
Over the past 12 months, the uncertainty of the economic environment, coupled
with investors' focus on equity market performance, tended to dampen interest in
most fixed-income products. This lack of demand put pressure on the prices of
many municipal bond investments, including NTC. As shown in the chart on the
Performance Overview page for NTC, the Fund's share price declined over the past
year. Because this decline in share price was greater than the decline in the
Fund's NAV, the premium (share price above NAV) on NTC narrowed over the past 12
months. In our opinion, the fact that NTC continued to trade at a premium
despite the negative fixed-income environment illustrates the market's
recognition of the value of an investment in this Fund.
WHAT KEY STRATEGIES WERE USED TO MANAGE NTC
DURING THE 12 MONTHS ENDED MAY 31, 2000?
The past 12 months represented a challenging period for all fixed-income
investments. However, it also offered opportunities to provide additional
diversification, strengthen NTC's long-term dividend-paying capabilities, and
enhance tax efficiency by offsetting potential capital gains with capital
losses. During the past year, we focused on taking advantage of these
opportunities while continuing to manage the Fund toward its primary objective
of providing dependable tax-free dividends over the long term.
Although the Connecticut municipal market traditionally has limited supply, the
robust issuance seen during the fourth quarter of 1999 in advance of the
transition to the year 2000 enabled us to trade more actively, and we took
advantage of this anomaly. In many cases, we bought the entire amount of
selected maturities within the bond issues from less frequent borrowers, which
enabled us to add diversification to the Fund. Some of the new names in our
portfolio include the cities of Cheshire, Bridgeport, and Waterbury.
The higher interest rate environment of the past year also afforded us an
opportunity to execute a series of trades that added bonds with high current
yields to the portfolio while selling lower-yielding bonds that we had purchased
in 1998 and early 1999. These recent purchases should help us increase the
income generated by NTC's portfolio to support the Fund's dividend. We also sold
bonds in demand by individual investors at attractive prices, including bonds
with short call dates, and bought issues with longer maturities and/or extended
call protection.
On the sector front, we continued to closely watch the healthcare sector, which
has been under considerable pressure as hospitals adjust to deregulation and
tighter federal reimbursement guidelines. Over the past 12 months, we lightened
our exposure to this sector from 24% to 17%. At the same time, we increased our
allocation to general obligation bonds and the education sector and also added
some housing bonds to further diversify the Fund. Our experienced Research team
provided an advantage in this area, helping us identify attractive situations
and supplying the background we needed to evaluate issuers.
As of May 31, 2000, NTC offered excellent credit quality, with 94% of its assets
invested in bonds rated AAA/U.S. guaranteed or AA. The Fund also had a 6%
allocation of BBB/non-rated bonds, which generally provided higher yields,
especially as credit spreads widened in recent months.
WHAT IS YOUR OUTLOOK FOR NTC?
We believe the bonds we added to our portfolio during the fourth quarter of 1999
have the potential to further enhance the Fund's dividend-paying capabilities
and diversification. NTC currently offers excellent levels of call protection,
with only 4% of its portfolio subject to calls between now and the end of 2001.
We will continue to monitor bond call activity in an effort to take advantage of
opportunities to add bonds that extend call protection. Going forward, we plan
to focus on the same strategies that we have emphasized over the past year,
namely, improving diversification, enhancing call protection, and strengthening
dividend-payment capabilities.
The market should continue to work its way through a period of uncertainty that
may last beyond the fall elections. Opportunities do arise in these types of
markets, and we believe the Fund is well positioned to take advantage of any
developing situations.
<PAGE>
NTC
Nuveen Connecticut Premium Income Municipal Fund
Performance
OVERVIEW As of May 31, 2000
PORTFOLIO STATISTICS
===================================================
Inception Date 5/93
---------------------------------------------------
Share Price $13 1/2
---------------------------------------------------
Net Asset Value $12.92
---------------------------------------------------
Market Yield 6.04%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.75%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.15%
---------------------------------------------------
Fund Net Assets ($000) $105,879
---------------------------------------------------
Average Effective Maturity (Years) 18.24
---------------------------------------------------
Leverage-Adjusted Duration 13.44
===================================================
ANNUALIZED TOTAL RETURN
===================================================
ON SHARE PRICE ON NAV
===================================================
1-Year -14.85% -4.87%
---------------------------------------------------
5-Year 6.91% 5.36%
---------------------------------------------------
Since Inception 3.85% 4.45%
===================================================
TAXABLE-EQUIVALENT TOTAL RETURN2
===================================================
ON SHARE PRICE ON NAV
===================================================
1-Year -12.28% -1.88%
---------------------------------------------------
5-Year 9.77% 8.37%
---------------------------------------------------
Since Inception 6.61% 7.36%
===================================================
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
===================================================
Education and Civic Organizations 17%
---------------------------------------------------
Healthcare 17%
---------------------------------------------------
Tax Obligation/General 12%
---------------------------------------------------
U.S. Guaranteed 11%
---------------------------------------------------
Tax Obligation/Limited 7%
===================================================
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
bar chart:
0.068
0.068
0.068
0.068
0.068
0.068
0.068
0.068
0.068
0.068
0.068
0.068
SHARE PRICE PERFORMANCE
line chart:
16.75
16.06
16.31
16.25
16.44
16.5
16.5
16.5
16.25
16.38
16
15.88
15.88
15.88
15.44
15.19
15.19
15.06
15.06
15.06
15.4375
15.38
15.13
15.19
15.06
15.06
14.88
14.81
14.81
14.88
14.81
14.56
14.5
14.94
14.56
14.31
14.06
13.81
13.75
13.75
13.81
13.88
13.94
13.81
13.94
13.63
13.69
13.56
13.5
13.44
13.5
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
31%.The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a
combined federal and state income tax rate of 34%.
2 Taxable-equivalent total return is based on the annualized total return and
combined federal and state income tax rate of 34%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen Fund on
an after-tax basis.
<PAGE>
Nuveen Massachusetts Premium Income Municipal Fund (NMT)
Portfolio Manager's
COMMENTS
Portfolio manager Tom Futrell reviews national and state economic conditions,
their impact on the municipal market and fund performance, and the key
strategies used to manage the Nuveen Massachusetts Premium Income Municipal Fund
(NMT). Tom, who has more than 16 years of experience as an investment
professional at Nuveen, has managed NMT since 1998.
WHAT FACTORS AFFECTED THE ECONOMY OVER THE PAST 12 MONTHS?
First, let's take a look at the national economy to gain some perspective on
what's been happening in Massachusetts. The U.S. economy is now in its tenth
year of uninterrupted expansion, the longest continuous economic expansion in
the nation's history. Over the past 12 months, the rapid pace of this expansion
has been of immense concern to the Federal Reserve, which watched carefully for
any signs that the booming economy was about to trigger a resurgence of
inflation. To pre-empt this threat, the Fed in June 1999 began a series of six
short-term interest rate increases that eventually raised the federal funds rate
by 1.75% to 6.50%, the highest level in almost a decade. As the Fed acted and
then signaled its willingness to continue tightening, investor uncertainty grew,
the equity markets became increasingly volatile, and bond prices declined as
yields pushed higher. While many of the growth trends and the relatively benign
inflation that have been the hallmarks of this expansion remain in place, we
have recently seen some preliminary indications that the Fed's tightening
strategy may be having the desired effect of slowing the economy. Investors
continue to hope that the Fed proves to be right, successfully engineering a
soft landing for the U.S. economy.
The Massachusetts economy continued to perform well, with significant job growth
in the construction and business services sectors. The technology and research
and development industries, attracted by the high education levels in the
commonwealth, also continued to generate jobs, although the growth of these
sectors in Massachusetts lagged that of California's Silicon Valley. The
commonwealth's labor market continued to tighten, with an unemployment rate of
2.8% for May 2000, down from 3.2% in May 1999 and below the national average of
4.1%. Going forward, the tight job market, particularly the shortage of
engineers and skilled construction workers, is expected to cause a slowdown in
the commonwealth's employment growth.
HOW HAVE THESE EVENTS IMPACTED THE MUNICIPAL MARKET?
The cumulative effects of the economic events of the past 12 months were
negative for the fixed-income markets, including municipal bonds. Once the Fed
began its series of interest rate hikes, the rise in municipal yields
accelerated. Over the 12 months ended May 2000, long-term municipal yields
nationally rose almost 75 basis points, compared with a gain of about 20 points
in 30-year Treasury yields. The Treasury market was affected during the period
by the announcement that the U.S. Treasury would be buying back a substantial
amount of U.S. Government debt and reduce additional new issuance of certain
maturities. The possibility of decreased supply helped support Treasury bond
prices. Municipals were unaffected by this repurchase policy and therefore were
subject to the full effect of market forces. As a result, by the end of May
2000, long-term municipal yields nationally were 103% of 30-year Treasury
yields, compared with the historical average of 86% for the period 1986-1999.
During the first five months of 2000, new municipal issuance across the nation
declined 24% from the same period in 1999. In Massachusetts, supply also
dropped, falling 16.5% from 1999 levels. This continued the trend begun last
year, as the rising interest rate environment
<PAGE>
deterred municipalities from issuing new bonds or refinancing old debt. Overall,
the decline in supply helped to offset some of the negative impact that higher
interest rates and equity market activity had on the demand for municipal bonds
and, ultimately, on bond prices. Over the past 12 months, demand from individual
investors provided some support for a municipal market experiencing a decline in
demand from institutional investors, particularly mutual and money market funds.
Two notable events in the Massachusetts municipal market over the past 12 months
were the February announcement of a $1.4 billion cost overrun in the Central
Artery/Tunnel ("Big Dig") project and the placement of Harvard Pilgrim Health
Care (HPHC) into temporary receivership in January. In May, state lawmakers
approved a bailout plan for the Big Dig, which has become the most expensive
public works project in U.S. history, while the Securities and Exchange
Commission announced that it would investigate whether the overrun was
intentionally concealed in the 1999 bond offering. For HPHC, which serves more
than 1 million Massachusetts residents, recent improvements in its financial
position are expected to result in release from receivership under the active
oversight of the offices of the insurance commissioner and attorney general.
Overall, the economic prosperity of the past decade has benefited the balance
sheets of many municipalities. In February, Moody's upgraded the credit quality
rating for Massachusetts to Aa2 from Aa3, while Standard & Poor's revised its
outlook for the commonwealth to positive from stable and upgraded Boston to AA-
from A+. Pending a satisfactory resolution to the cost overruns on the Big Dig
project, S&P is also expected to raise the commonwealth's rating.
WAS NMT'S DIVIDEND AFFECTED BY THIS ENVIRONMENT?
NMT shareholders had enjoyed steady, unchanged dividends from early in 1997
through May 31, 2000, the ending date for the period covered by this report.
However, on June 1 the Fund announced a dividend decrease, largely as a result
of higher short-term interest rates.
NMT is a leveraged fund. Leverage can enhance the dividends paid to common
shareholders, but the extent of the benefit is tied to some degree to the
short-term rates the Fund pays its MuniPreferred shareholders. As short-term
rates rise, the income available for common shareholder dividends decreases. As
noted, the Federal Reserve has raised short-term rates six times between June
1999 and May 2000, and these actions have had a corresponding effect on
short-term municipal rates. This may continue to exert an influence on the
Fund's common share dividends in the future if short-term rates remain at recent
high levels.
OVERALL, HOW DID NMT PERFORM OVER THE PAST YEAR?
For the 12 months ended May 31, 2000, NMT produced a total return on net asset
value (NAV) as shown in the accompanying table. For comparison purposes, the
annual returns for the Lehman Brothers Municipal Bond Index1 and appropriate
Lipper Peer Group2 are also presented.
LEHMAN
TOTAL LIPPER
MARKET YIELD TOTAL RETURN ON NAV RETURN(1) AVERAGE(2)
================================================================================
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED TAXABLE- ENDED ENDED
5/31/00 EQUIVALENT(3) 5/31/00 EQUIVALENT(3) 5/31/00 5/31/00
================================================================================
NMT 6.04% 9.29% -4.79% -1.60% -0.86% -6.34%
================================================================================
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for NMT in
this report.
The relative underperformance of NMT's total return on NAV compared with the
Lehman Brothers Municipal Bond Index can be attributed largely to the Fund's
duration4, which is a measure of a Fund's NAV volatility in reaction to interest
rate movements. This is a leveraged Fund, and while leverage can enhance the
dividends paid to common shareholders, it also has the effect of lengthening a
Fund's duration. In addition, durations often are lengthened as we look to
maintain call protection within a portfolio. As of May 31, 2000, NMT's duration
was 11.67, compared with the unleveraged Lehman index's 7.46.
We believe that NMT's longer duration and good call protection should help
to strengthen the relative stability of the Fund's common share dividends over
the long term and position the Fund to benefit from any market recovery.
1 NMT's performance is compared with that of the Lehman Brothers Municipal
Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 NMT's total return is compared with the average annualized return of the 19
funds in the Lipper Other States Municipal Debt Funds category. Fund and
Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield/total return represents the yield/total
return that must be earned on a taxable investment in order to equal the
yield/total return of the Nuveen Fund on an after-tax basis. The
taxable-equivalent yield is based on the Fund's market yield on the
indicated date and a combined federal and commonwealth income tax rate of
35%, while the taxable-equivalent total return is based on the annualized
total return as of the indicated date and the combined 35% federal and
commonwealth income tax rate.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Fund and therefore is generally longer than
the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
<PAGE>
WHAT ABOUT NMT'S SHARE PRICE PERFORMANCE?
Over the past 12 months, the uncertainty of the economic environment, coupled
with investors' focus on equity market performance, tended to dampen interest in
most fixed-income products. This lack of demand put pressure on the prices of
many municipal bond investments, including NMT. As shown in the chart on NMT's
Performance Overview page, the Fund's share price gradually declined over the
past year. This decline in share price was greater than the decline in the
Fund's NAV. As a result, over the past year, the premium (share price above NAV)
on NMT narrowed. In our opinion, the fact that NMT continued to trade at a
premium despite the negative fixed-income environment illustrates the market's
perception of the value of an investment in this Fund.
WHAT KEY STRATEGIES WERE USED TO MANAGE NMT
DURING THE 12 MONTHS ENDED MAY 31, 2000?
All fixed-income investments faced a challenging period over the past 12 months.
However, this period also offered opportunities to improve NMT's structure,
provide additional diversification, strengthen the Fund's long-term
dividend-paying capabilities, and enhance tax efficiency by offsetting potential
capital gains with capital losses.
During the past year, we focused on judicious trading, as we looked for
opportunities to add income. One example of this involved our purchase of
non-insured resource recovery bonds issued for the Ogden Haverhill Project,
which provided 60 basis points of incremental yield compared with insured bonds.
The maturities of these BBB rated bonds also make them attractive in the retail
market, and we believe that they will prove to be a strong credit over the long
term.
We continued to watch the healthcare sector carefully, which has been under
considerable pressure as hospitals adjust to deregulation and tighter federal
reimbursement guidelines. Some would regard healthcare in Massachusetts as
overregulated and overbedded. In our opinion, this situation resulted in bonds
from a number of strong issuers that carried what we considered to be very
attractive prices relative to their underlying value. Our experienced Research
team provided an advantage in this area, helping us identify attractive
situations and supplying the background we needed to understand the industry as
well as individual issuers. The majority of healthcare bonds held in NMT's
port-folio were insured, including those issued by Harvard Pilgrim Health Care.
Overall, we reduced our healthcare exposure from 18% a year ago to 14% as of May
2000.
As of May 31, 2000, NMT offered excellent credit quality, with 80% of its
assets invested in bonds rated AAA/U.S. guaranteed or AA. The Fund also had an
8% allocation of BBB/non-rated bonds that generally provided higher yields,
especially as credit spreads widened in recent months.
WHAT IS YOUR OUTLOOK FOR NMT?
NMT currently offers good levels of call protection, with 2% of the portfolio
callable in 2000 and 10% of the portfolio in 2001. We believe this can be easily
managed, and we will continue to closely monitor call activity in an effort to
take advantage of opportunities to add bonds that extend call protection.
Overall, we plan to focus on the same strategies that we have emphasized over
the past year, including improving fund structure and strengthening
dividend-payment capabilities. We expect the market to continue to work its way
through a period of uncertainty that may last beyond the fall elections.
Opportunities do arise in these types of markets, and we believe we are ready to
take advantage of developing situations.
We believe that NMT continues to provide an attractive investment option for
Massachusetts residents, benefiting investors with its excellent structure,
attractive yields, and solid credit quality. In our opinion, the Fund is well
positioned both for the short term, offering dependable income and a measure of
portfolio diversification, and for any potential recovery of the bond market in
the long term.
<PAGE>
NMT
Nuveen Massachusetts Premium Income Municipal Fund
Performance
OVERVIEW As of May 31, 2000
PORTFOLIO STATISTICS
======================================================
Inception Date 3/93
------------------------------------------------------
Share Price $14
------------------------------------------------------
Net Asset Value $13.17
------------------------------------------------------
Market Yield 6.04%
------------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.75%
------------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.29%
------------------------------------------------------
Fund Net Assets ($000) $95,323
------------------------------------------------------
Average Effective Maturity (Years) 16.68
------------------------------------------------------
Leverage-Adjusted Duration 11.67
======================================================
ANNUALIZED TOTAL RETURN
======================================================
ON SHARE PRICE ON NAV
======================================================
1-Year -7.66% -4.79%
------------------------------------------------------
5-Year 6.74% 5.12%
------------------------------------------------------
Since Inception 4.64% 4.90%
======================================================
TAXABLE-EQUIVALENT TOTAL RETURN2
======================================================
ON SHARE PRICE ON NAV
======================================================
1-Year -4.75% -1.60%
------------------------------------------------------
5-Year 9.85% 8.37%
------------------------------------------------------
Since Inception 7.65% 8.01%
======================================================
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
======================================================
U. S. Guaranteed 23%
------------------------------------------------------
Education and Civic Organizations 19%
------------------------------------------------------
Healthcare 14%
------------------------------------------------------
Housing Multifamily 12%
------------------------------------------------------
Tax Obligation/General 11%
======================================================
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
bar chart:
0.0705
0.0705
0.0705
0.0705
0.0705
0.0705
0.0705
0.0705
0.0705
0.0705
0.0705
0.0705
SHARE PRICE PERFORMANCE
line chart:
16.19
15.88
16.06
16.13
16.31
16.38
16.5
16.44
16.31
16.25
16
15.94
16.06
15.88
15.38
15
15.06
15.13
15
15
15
15.13
14.88
14.88
14.88
14.63
14.56
14.44
14
14
13.75
13.63
13.81
14.19
14.19
13.94
13.88
13.81
13.63
13.56
13.38
13.69
13.63
13.69
13.69
13.81
13.94
13.63
13.69
13.94
14
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 35%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 35%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
Fund on an after-tax basis.
<PAGE>
Nuveen Missouri Premium Income Municipal Fund (NOM)
Portfolio Manager's
COMMENTS
Portfolio manager Mike Davern discusses the impact of the economy on the
municipal market, recent fund performance, and the outlook for the Nuveen
Missouri Premium Income Municipal Fund (NOM). Mike, an investment professional
at Nuveen since 1991, has managed NOM since 1998.
WHAT FACTORS AFFECTED THE ECONOMY OVER THE PAST 12 MONTHS?
To understand what's happening in the Missouri economy, we first need to take a
look at the economy at the national level. While the growth trends and
relatively benign inflation that have been the hallmarks of this country's
decade-long economic expansion remain largely in place, robust consumer
spending, tight labor markets, and rising commodity prices have kept the Federal
Reserve on guard for the possibility that the pace of growth could eventually
trigger a resurgence of inflation. In June 1999, all of this prompted the Fed to
begin a series of six short-term interest rate increases that eventually pushed
the federal funds rate up by 1.75% to 6.50%, the highest level in more than nine
years. As the Fed continued to leave the door open for additional tightenings,
investor uncertainty grew, the equity markets became increasingly volatile, and
bond prices declined as yields moved higher. Recently, how ever, we have begun
to see some preliminary signs that the Fed's tightenings are having the desired
effect of slowing the economy. Investors continue to hope that the Fed is
successful in counterbalancing some of the current pressures in the economy
without jeopardizing the expansion, engineering a soft landing for the economy.
In Missouri, economic expansion has been more moderate than that of the nation
as a whole, constrained by a decline in manufacturing jobs in urban areas as
well as a poor farm economy. However, job gains in the construction,
telecommunications, and business services sectors have helped to offset some of
the manufacturing losses. The continued tightness of Missouri's general job
market is reflected in the state's unemployment rate of 2.4%, down from 3.5% a
year earlier and below the national average of 4.1% for May 2000. Near term, the
Missouri economy is expected to continue to face a number of challenges. The
state's largest metropolitan areas, St. Louis and Kansas City, have been
experiencing economic slowdowns due to corporate mergers and layoffs in the
manufacturing sector by firms such as Boeing and Monsanto. This has been
compounded by the weakness in U.S. agricultural markets that has impacted the
state's rural areas. Overall, the strength of the state's balance sheet is
reflected in continued ratings of Aaa/AAA/AAA by the three major rating
agencies.
HOW HAVE THESE EVENTS IMPACTED THE MUNICIPAL MARKET?
The cumulative effects of the economic events of the past 12 months were
negative for the fixed-income markets, including municipal bonds. Once the Fed
began its series of interest rate hikes, the rise in municipal yields
accelerated. Over the 12 months ended May 2000, long-term municipal yields
nationally rose almost 75 basis points, compared with a gain of about 20 points
in 30-year Treasury yields. The Treasury market was affected during the period
by the announcement that the U.S. Treasury would be buying back a substantial
amount of U.S. Government debt and reduce additional new issuance of certain
maturities. The possibility of decreased supply helped support Treasury bond
prices. Municipals were unaffected by this repurchase policy and therefore were
subject to the full effect of market forces. As a result, by the end of May
2000, long-term
<PAGE>
municipal yields nationally were 103% of 30-year Treasury yields, compared with
the historical average of 86% for the period 1986-1999.
During the first five months of 2000, Missouri issued $1.2 billion of new
municipal debt, up 9% over the same period in 1999. This is in sharp contrast to
new municipal issuance nationwide, which declined 24% from the level of the
first five months of 1999. Demand for Missouri bonds has held up well, even
given the recent increase in supply. Individual investors, especially, provided
support for a municipal market experiencing a decline in demand from
institutional investors, particularly mutual and money market funds. Overall,
this helped to offset some of the negative impact that higher interest rates and
equity market activity had on municipal bonds and, ultimately, bond prices.
WAS NOM'S DIVIDEND AFFECTED BY THIS ENVIRONMENT?
NOM raised its dividend in May 1999, and maintained that dividend through May
31, 2000, the ending point for the period covered by this report. However, on
June 1 the Fund announced a dividend decrease, largely as a result of higher
short-term interest rates.
NOM is a leveraged fund. Leverage can enhance the dividends paid to common
shareholders, but the extent of the benefit is tied to some degree to the
short-term rates the Fund pays its MuniPreferred(R) shareholders. As short-term
rates rise, the income available for common shareholder dividends decreases. As
noted, the Federal Reserve has raised short-term rates six times between June
1999 and May 2000, and these actions have had a corresponding effect on
short-term municipal rates. This may continue to exert an influence on the
Fund's common share dividends in the future if short-rates remain at high recent
levels.
OVERALL, HOW DID NOM PERFORM OVER THE PAST YEAR?
For the 12 months ended May 31, 2000, NOM produced a total return on net asset
value (NAV) as shown in the accompanying table. For comparison purposes, the
annual returns for the Lehman Brothers Municipal Bond Index1 and appropriate
Lipper Peer Group2 are also presented.
LEHMAN
TOTAL LIPPER
MARKET YIELD TOTAL RETURN ON NAV RETURN(1) AVERAGE(2)
================================================================================
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED TAXABLE- ENDED ENDED
5/31/00 EQUIVALENT(3) 5/31/00 EQUIVALENT(3) 5/31/00 5/31/00
================================================================================
NOM 6.04% 9.29% -4.63% -1.61% -0.86% -6.34%
================================================================================
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for NOM in
this report.
The relative underperformance of NOM's total return on NAV compared with the
Lehman Brothers Municipal Bond Index can be attributed largely to the Fund's
duration4, which is a measure of a fund's NAV volatility in reaction to interest
rate movements. This is a leveraged Fund, and while leverage can enhance the
dividends paid to common shareholders, it also has the effect of lengthening a
Fund's duration. In addition, durations often are lengthened as we look to
maintain call protec tion within a portfolio. As of May 31, 2000, NOM's duration
was 12.62, compared with the unleveraged Lehman index's 7.46.
We continue to believe that NOM's longer duration and good call protection
should help to strengthen the relative stability of the Fund's common share
dividends over the long term and position the Fund to benefit from any market
recovery.
WHAT ABOUT NOM'S SHARE PRICE PERFORMANCE?
Over the past year, rising interest rates and inflation worries created an
uncertain economic environment. These factors, coupled with investors' focus on
equity market performance, tended to dampen interest in most fixed-income
products. The lack of demand put pressure on the prices of many municipal bond
investments, including NOM. As shown in the chart on the Performance Overview
page for NOM, the Fund's share price declined over the past year. Overall,
however, this decline was
1 NOM's performance is compared with that of the Lehman Brothers Municipal
Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 NOM's total return is compared with the average annualized return of the 19
funds in the Lipper Other States Municipal Debt Funds category. Fund and
Lipper returns assume reinvest ment of dividends.
3 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the
yield/total return of the Nuveen Fund on an after-tax basis. The
taxable-equivalent yield is based on the Fund's market yield on the
indicated date and a combined federal and state income tax rate of 35%,
while the taxable-equiv alent total return is based on the annualized total
return as of the indicated date and the combined 35% federal and state
income tax rate.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Fund and there fore is generally longer than
the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
<PAGE>
less than the decline in the Fund's NAV. As a result, over the past 12 months,
NOM moved from trading at a slight discount (share price below NAV) to a slight
premium (share price above NAV). We believe the fact that NOM moved to a premium
despite the negative fixed-income environment illustrates the value the
marketplace puts on an investment in this Fund.
WHAT KEY STRATEGIES WERE USED TO MANAGE NOM DURING THE 12 MONTHS ENDED MAY 31,
2000?
The past 12 months represented a challenging period for all fixed-income
investments. However, it also offered opportunities to improve the Fund's
structure, provide additional diversification, strengthen the Fund's long-term
dividend-paying capabilities, and enhance tax efficiency by offsetting potential
capital gains with capital losses.
The increase in Missouri issuance during the first five months of 2000,
especially in what is traditionally a very tight supply state, provided us with
additional opportunities to implement such strategies.
During the past six months, approximately half of our purchases focused on
non-insured bonds issued by the education sector, where our allocation rose to
14% from 6% a year earlier. Each of these purchases came with a yield premium
over a similar purchase of insured bonds. In February, we bought a large block
of non-rated securities for the construction and equipping of a student housing
facility scheduled to open in fall 2000 at Mineral Area Junior College. With the
help of Nuveen Research, we determined that these bonds were of investment-grade
quality and offered substan tially higher yields than similarly structured
insured bonds. During this time, we also added Baa1/non-rated bonds issued by
the Missouri Health and Educational Facilities Authority for Maryville
University of St. Louis and another group of MHEFA bonds for Washington
University, which were rated Aa1/AA+.
To fund these purchases, we sold bonds in demand by individual investors at
attractive prices, including bonds with short call dates. As a result of these
sales, the Fund has 6% of its portfolio callable through the end of 2001 and
only 8% over the following three years. Since bonds with short calls have
limited upside potential, the strategy of selling such bonds also puts the Fund
in a better position to participate in any future bond market rally.
As of May 31, 2000, NOM offered excellent credit
quality, with 84% of its assets invested in bonds rated AAA/U.S. guaranteed or
AA. This was balanced by a 16% allocation of BBB/non-rated bonds, up from 4% at
the end of May 1999. This increase reflects our efforts to provide support for
the Fund's dividend-paying capa bilities, as lower-rated bonds generally
provided higher yields in recent months as credit spreads widened.
WHAT IS YOUR OUTLOOK FOR NOM?
Given the Fund's high credit quality profile, we plan to continue to use Nuveen
Research to find opportunities to diversify into higher-yielding, lower-rated
credits at attractive prices. The excellent relationships we established with
underwriters, contractors, and builders as part of the Mineral Area Junior
College purchase, for example, should also help us find similar offerings that
can benefit shareholders over the long term.
Overall, we plan to focus on the same strategies that we have emphasized during
the past 12 months, including improving fund structure, enhancing call
protection, and strengthening dividend-payment capabilities. We expect the
market to continue to work its way through the current period of uncertainty,
which may last beyond the fall elections. This type of market often presents
opportunities, and we are ready to take advantage of any developing situations.
We believe NOM continues to be well structured for the current market as well as
any potential market recovery.
<PAGE>
NOM
Nuveen Missouri Premium Income Municipal Fund
Performance
OVERVIEW As of May 31, 2000
PORTFOLIO STATISTICS
====================================================
Inception Date 5/93
----------------------------------------------------
Share Price $12 13/16
----------------------------------------------------
Net Asset Value $12.77
----------------------------------------------------
Market Yield 6.04%
----------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.75%
----------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.29%
----------------------------------------------------
Fund Net Assets ($000) $43,701
----------------------------------------------------
Average Effective Maturity (Years) 17.65
----------------------------------------------------
Leverage-Adjusted Duration 12.62
====================================================
ANNUALIZED TOTAL RETURN
====================================================
ON SHARE PRICE ON NAV
====================================================
1-Year -4.35% -4.63%
----------------------------------------------------
5-Year 7.00% 4.54%
----------------------------------------------------
Since Inception 3.14% 4.00%
====================================================
TAXABLE-EQUIVALENT TOTAL RETURN2
====================================================
ON SHARE PRICE ON NAV
====================================================
1-Year -1.34% -1.61%
----------------------------------------------------
5-Year 10.08% 7.49%
----------------------------------------------------
Since Inception 6.09% 6.87%
====================================================
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
====================================================
Tax Obligation/General 19%
----------------------------------------------------
Education and Civic Organizations 14%
----------------------------------------------------
Tax Obligation/Limited 12%
----------------------------------------------------
Housing Multifamily 10%
----------------------------------------------------
U.S. Guaranteed 10%
====================================================
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
bar chart:
0.0645
0.0645
0.0645
0.0645
0.0645
0.0645
0.0645
0.0645
0.0645
0.0645
0.0645
0.0645
SHARE PRICE PERFORMANCE
line chart:
14.25
14.06
14.13
14
14
14
14.06
14.13
14.13
14.06
13.81
13.75
13.69
13.63
13.44
13.5
13.75
13.88
13.5
12.88
13.19
13
13.13
13.13
12.88
13.13
13.19
13.31
13.81
13.88
13.94
13.88
13.63
13.44
13.25
13.25
13.44
13.31
13.13
13.13
13.13
13.38
13.44
13.31
13.38
13.31
13.13
13
12.88
12.81
12.8125
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 35%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 35%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
Fund on an after-tax basis.
<PAGE>
Shareholder
MEETING REPORT
The annual shareholder meeting was held in Chicago, Illinois on October 13,
1999.
<TABLE>
<CAPTION>
NTC NMT NOM
-------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Common Shares Common Shares
Shares Series-TH Shares Series - TH Shares Series - TH
=========================================================================================================================
Robert P. Bremner
<S> <C> <C> <C> <C> <C> <C>
For 4,674,951 1,532 4,381,344 1,340 1,794,415 597
Withhold 47,163 -- 49,883 19 179,769 21
-------------------------------------------------------------------------------------------------------------------------
Total 4,722,114 1,532 4,431,227 1,359 1,974,184 618
=========================================================================================================================
Lawrence H. Brown
For 4,674,951 1,532 4,381,344 1,340 1,789,815 597
Withhold 47,163 -- 49,883 19 184,369 21
-------------------------------------------------------------------------------------------------------------------------
Total 4,722,114 1,532 4,431,227 1,359 1,974,184 618
=========================================================================================================================
Anne E. Impellizzeri
For 4,674,285 1,532 4,375,306 1,334 1,780,332 597
Withhold 47,829 -- 55,921 25 193,852 21
-------------------------------------------------------------------------------------------------------------------------
Total 4,722,114 1,532 4,431,227 1,359 1,974,184 618
=========================================================================================================================
Peter R. Sawers
For 4,674,951 1,532 4,380,763 1,340 1,793,365 597
Withhold 47,163 -- 50,464 19 180,819 21
-------------------------------------------------------------------------------------------------------------------------
Total 4,722,114 1,532 4,431,227 1,359 1,974,184 618
=========================================================================================================================
Judith M. Stockdale
For 4,674,951 1,532 4,379,220 1,334 1,785,582 597
Withhold 47,163 -- 52,007 25 188,602 21
-------------------------------------------------------------------------------------------------------------------------
Total 4,722,114 1,532 4,431,227 1,359 1,974,184 618
=========================================================================================================================
William J. Schneider
For -- 1,532 -- 1,340 -- 597
Withhold -- -- -- 19 -- 21
-------------------------------------------------------------------------------------------------------------------------
Total -- 1,532 -- 1,359 -- 618
=========================================================================================================================
Timothy R. Schwertfeger
For -- 1,532 -- 1,340 -- 597
Withhold -- -- -- 19 -- 21
-------------------------------------------------------------------------------------------------------------------------
Total -- 1,532 -- 1,359 -- 618
=========================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 4,644,153 1,532 4,356,587 1,340 1,788,937 618
Against 22,032 -- 38,279 18 170,901 --
Abstain 55,929 -- 36,361 1 14,346 --
-------------------------------------------------------------------------------------------------------------------------
Total 4,722,114 1,532 4,431,227 1,359 1,974,184 618
=========================================================================================================================
</TABLE>
<PAGE>
Report of
INDEPENDENT AUDITORS
THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND
NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND
NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Connecticut Premium Income Municipal Fund,
Nuveen Massachusetts Premium Income Municipal Fund and Nuveen Missouri Premium
Income Municipal Fund as of May 31 2000, and the related statements of
operations, changes in net assets and the financial highlights for the years
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of May
31, 2000, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Connecticut Premium Income Municipal Fund, Nuveen Massachusetts Premium
Income Municipal Fund and Nuveen Missouri Premium Income Municipal Fund at May
31 2000, and the results of their operations, changes in their net assets and
financial highlights for the years indicated therein in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
July 20, 2000
<PAGE>
Nuveen Connecticut Premium Income Municipal Fund (NTC)
Portfolio of
INVESTMENTS May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 17.1%
Connecticut Higher Education Supplemental Loan Authority,
Revenue Bonds (Family Education Loan Program), 1996 Series A:
$ 1,420 5.800%, 11/15/14 (Alternative Minimum Tax) 11/06 at 102 AAA $ 1,415,144
910 5.875%, 11/15/17 (Alternative Minimum Tax) 11/06 at 102 AAA 899,217
900 6.000%, 11/15/18 11/09 at 102 AAA 901,080
1,540 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102 BBB- 1,403,233
Revenue Bonds, Quinnipiac College Issue, Series D,
6.000%, 7/01/23
2,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102 AAA 1,963,260
Revenue Bonds, Trinity College Issue, Series E, 5.875%, 7/01/26
2,040 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102 AAA1 1,952,810
Revenue Bonds, The Loomis Chaffee School Issue, Series C,
5.500%, 7/01/16
2,250 State of Connecticut Health and Educational Facilities Authority, 7/08 at 102 AAA 1,944,248
Revenue Bonds, Fairfield University Issue, Series H,
5.000%, 7/01/23
2,920 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102 AA 2,775,226
Revenue Bonds, Connecticut College Issue, Series C-1,
5.500%, 7/01/20
1,250 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101 AAA 1,119,488
Revenue Bonds, Fairfield University, Series I, 5.250%, 7/01/25
750 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101 Aaa 708,045
Revenue Bonds, The Horace Bushnell Memorial Hall Issue, Series A,
5.625%, 7/01/29
3,810 The University of Connecticut, Student Fee Revenue Bonds 1998, 11/08 at 101 AAA 3,126,943
Series A, 4.750%, 11/15/27
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.7%
1,000 State of Connecticut Health and Educational Facilities Authority, 7/04 at 102 AAA 1,026,240
Revenue Bonds, Newington Children's Hospital, Series A,
6.050%, 7/01/10
1,500 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102 AAA 1,277,790
Revenue Bonds, Lawrence and Memorial Hospital Issue, Series D,
5.000%, 7/01/22
1,000 State of Connecticut Health and Educational Facilities Authority, No Opt. Call AAA 991,960
Revenue Bonds, Hospital of Saint Raphael Issue, Series H,
5.200%, 7/01/08
1,625 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 1,631,565
Revenue Bonds, Saint Francis Hospital and Medical Center Issue,
Series B, 6.200%, 7/01/22
2,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101 Aaa 1,707,300
Revenue Bonds, Stamford Hospital Issue, Series G,
5.000%, 7/01/24
2,200 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102 AAA 1,986,336
Revenue Bonds, Day Kimball Hospital Issue, Series A,
5.375%, 7/01/26
1,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102 AAA 959,580
Revenue Bonds, The William W. Backus Hospital Issue, Series D,
5.750%, 7/01/27
3,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 101 Aaa 2,587,980
Revenue Bonds, Middlesex Health Services Issue, Series I,
5.125%, 7/01/27
2,000 State of Connecticut Health and Educational Facilities Authority, 7/10 at 101 AA 1,933,280
Revenue Bonds, Eastern Connecticut Health Network Issue, Series A,
6.000%, 7/01/25
2,000 Connecticut Development Authority, Solid Waste Disposal Facilities 7/05 at 102 AAA 2,152,000
Revenue Bonds, Pfizer, Inc. Project, 1994 Series,
7.000%,7/01/25 (Alternative Minimum Tax)
1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 8/05 at 101 1/2 AAA 1,507,170
Environmental Control Facilities Financing Authority,
Hospital Revenue Refunding Bonds 1995 Series A
(FHA-Insured Mortgage - Pila Hospital Project),
6.125%, 8/01/25
<PAGE>
Nuveen Connecticut Premium Income Municipal Fund (NTC) (continued)
Portfolio of INVESTMENTS May 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/MULTIFAMILY - 6.7%
$ 1,000 Connecticut Housing Finance Agency, Housing Mortgage Finance 12/09 at 100 AA $ 973,840
Program Bonds, 1999 Series D, 6.200%, 11/15/41
(Alternative Minimum Tax)
3,000 Housing Authority of the City of Waterbury (Connecticut), Mortgage 1/02 at 100 AAA 2,735,850
Refunding Revenue Bonds, Series 1998C (FHA-Insured Mortgage Loan -
Waterbury NSA-II Section 8 Assisted Project), 5.450%, 7/01/23
1,205 Waterbury Nonprofit Housing Corporation, Connecticut, Taxable 7/02 at 101 AAA 1,240,776
Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage Loan -
Fairmont Heights Section 8 Assisted Project), Series 1993A,
6.500%, 7/01/07
1,930 Housing Authority of the City of Willimantic, Multifamily Housing 10/05 at 105 AAA 2,111,188
Revenue Bonds, Series 1995A (GNMA Collateralized Mortgage Loan -
Village Heights Apartments Project), 8.000%, 10/20/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.4%
3,175 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/03 at 102 AA 3,216,656
Program Bonds, Series B, 6.200%, 5/15/12
2,260 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/06 at 102 AA 2,221,693
Program Bonds, 1996 Subseries E-2, 6.150%, 11/15/27
(Alternative Minimum Tax)
250 Connecticut Housing Finance Agency, Housing Mortgage Finance 5/10 at 100 AA 245,640
Program Bonds, 2000 Series A, 6.000%, 11/15/28
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.2%
1,300 State of Connecticut Health and Educational Facilities Authority, 8/08 at 102 AAA 1,109,433
Revenue Bonds, Hebrew Home and Hospital Issue, Series B
(FHA-Insured Mortgage), 5.200%, 8/01/38
2,000 State of Connecticut Health and Educational Facilities Authority, 11/03 at 102 AAA 2,019,240
Revenue Bonds, Nursing Home Program Issue, Series 1993, Mansfield
Center for Nursing and Rehabilitation Project, 5.875%, 11/01/12
615 Connecticut Development Authority, First Mortgage Gross Revenue 9/09 at 102 AA 574,299
Health Care Project Refunding Bonds (Connecticut Baptist Homes,
Inc. Project - 1999 Series), 5.500%, 9/01/15
Connecticut Development Authority, Revenue Refunding Bonds
(Duncaster, Inc. Project), Series 1999A:
1,000 5.250%, 8/01/19 2/10 at 102 AA 878,450
1,000 5.375%, 8/01/24 2/10 at 102 AA 897,840
Connecticut Development Authority, Health Facility Refunding
Revenue Bonds, Alzheimers Resource Center of Connecticut, Inc.
Project, Series 1994A:
1,100 6.875%, 8/15/04 No Opt. Call N/R 1,097,591
1,000 7.000%, 8/15/09 8/04 at 102 N/R 997,040
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.9%
1,500 City of Bridgeport, General Obligation Bonds, 2000 Series A, 7/10 at 101 AAA 1,504,365
6.000%, 7/15/19
Town of Cheshire, General Obligation Bonds, Issue of 1999:
660 5.625%, 10/15/16 10/09 at 101 Aa3 650,932
660 5.625%, 10/15/17 10/09 at 101 Aa3 647,057
1,000 State of Connecticut, General Obligation Bonds, 1999 Series B, 11/09 at 101 AA 966,820
5.500%, 11/01/18
2,000 State of Connecticut, General Obligation Bonds, 1993 Series E, No Opt. Call AA 2,099,000
6.000%, 3/15/12
1,650 State of Connecticut, General Fund Obligation Bonds, 1994 10/04 at 102 AA 1,709,120
Series A, Issued By Connecticut Development Authority,
6.375%, 10/15/14
3,500 Commonwealth of Puerto Rico, Public Improvement Bonds of 1998 7/08 at 101 AAA 2,985,990
(General Obligation Bonds), 4.875%, 7/01/23
Regional School District No. 16 (Towns of Beacon Falls and
Prospect), General Obligation Bonds, Issue of 2000:
350 5.500%, 3/15/18 3/10 at 101 Aaa 343,546
350 5.625%, 3/15/19 3/10 at 101 Aaa 346,763
350 5.700%, 3/15/20 3/10 at 101 Aaa 348,117
965 City of Waterbury, General Obligation Tax Revenue Intercept Bonds, 2/09 at 101 AA 951,596
2000 Issue, 6.000%, 2/01/19
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/LIMITED - 7.3%
$ 1,900 Capitol Region Education Council Bonds, 6.700%, 10/15/10 10/05 at 102 BBB $ 1,942,959
2,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 102 AAA 1,898,600
Revenue Bonds, Child Care Facilities Program, Series C,
5.625%, 7/01/29
1,000 State of Connecticut, Special Tax Obligation Bonds, Transportation 12/09 at 101 AAA 968,950
Infrastructure Purposes, 1999 Series A, 5.625%, 12/01/19
1,800 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AA- 1,955,808
Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10
1,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101 BB 999,280
Islands Gross Receipts Taxes Loan Note), Series 1999A,
6.500%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.6%
3,000 State of Connecticut, Airport Revenue Refunding Bonds, Bradley 10/04 at 100 AAA 3,283,410
International Airport, Series 1992, 7.650%, 10/01/12
1,500 City of New Haven, Air Rights Parking Facility Revenue Bonds, 12/01 at 102 AAA 1,560,315
Series 1991, 6.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.7%
2,600 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102 Baa3*** 2,685,748
Revenue Bonds, Sacred Heart University Issue, Series B, 5.700%,
7/01/16 (Pre-refunded to 7/01/03)
2,020 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 2,098,901
Revenue Bonds, Trinity College Issue, Series C, 6.000%, 7/01/22
(Pre-refunded to 7/01/02)
2,910 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102 BBB-*** 3,030,561
Revenue Bonds, Quinnipiac College Issue, Series D, 6.000%,
7/01/23 (Pre-refunded to 7/01/03)
2,000 State of Connecticut Health and Educational Facilities Authority, 11/04 at 102 AA-*** 2,185,700
Revenue Bonds, Nursing Home Program Issue, Series 1994,
AHF/Hartford, Inc. Project, 7.125%, 11/01/24
(Pre-refunded to 11/01/04)
1,250 State of Connecticut Health and Educational Facilities Authority, 7/04 at 101 AAA 1,348,338
Revenue Bonds, Choate Rosemary Hall Issue, Series A, 7.000%,
7/01/25 (Pre-refunded to 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.5%
3,250 Connecticut Municipal Electric Energy Cooperative, Power Supply 1/04 at 102 AAA 2,901,340
System Revenue Bonds, 1993 Series A, 5.000%, 1/01/18
2,955 Connecticut Resources Recovery Authority, Resource Recovery 11/00 at 102 1/2 AA 2,962,506
Revenue Bonds, American Ref-Fuel Company of Southeastern
Connecticut Project, 1989 Series A, 7.700%, 11/15/11
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.4%
2,545 Connecticut Development Authority, Water Facilities Revenue Bonds, 6/03 at 102 AAA 2,351,197
Bridgeport Hydraulic Company Project, 1993 A Series, 5.600%,
6/01/28 (Alternative Minimum Tax)
1,400 Connecticut Development Authority, Water Facilities Refunding 6/03 at 102 AAA 1,307,600
Revenue Bonds, Bridgeport Hydraulic Company Project, 1993B Series,
5.500%, 6/01/28
2,000 South Central Regional Water Authority, Water System Revenue Bonds, 8/03 at 102 AAA 2,016,240
Eleventh Series, 5.750%, 8/01/12
------------------------------------------------------------------------------------------------------------------------------------
$ 107,565 Total Investments (cost $106,813,882) - 98.5% 104,340,190
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 1,539,206
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $105,879,396
====================================================================================================================
</TABLE>
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
<PAGE>
Nuveen Massachusetts Premium Income Municipal Fund (NMT)
Portfolio of
INVESTMENTS May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 19.1%
$ 720 Massachusetts Educational Financing Authority, Education Loan 7/04 at 102 AAA $ 732,096
Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10
(Alternative Minimum Tax)
1,970 Massachusetts Health and Educational Facilities Authority, Revenue 6/03 at 102 AAA 1,763,288
Bonds, Boston College Issue, Series K, 5.250%, 6/01/23
1,500 Massachusetts Industrial Finance Agency, Revenue Bonds (College 3/06 at 102 AAA 1,414,560
of the Holy Cross - 1996 Issue), 5.500%, 3/01/20
2,645 Massachusetts Industrial Finance Agency, Revenue Bonds (Whitehead 7/03 at 102 Aa1 2,293,585
Institute for Biomedical Research - 1993 Issue), 5.125%, 7/01/26
3,500 Massachusetts Industrial Finance Agency, Revenue Bonds, Phillips 9/08 at 102 AAA 3,196,655
Academy Issue, Series 1993, 5.375%, 9/01/23
3,300 Massachusetts Industrial Finance Agency, Education Revenue Bonds 9/08 at 101 A 2,771,802
(Belmont Hill School Issue - Series 1998), 5.250%, 9/01/28
1,765 The New England Education Loan Marketing Corporation, Student Loan No Opt. Call AA 1,814,473
Revenue Bonds, 1992 Subordinate Issue C, 6.750%, 9/01/02
(Alternative Minimum Tax)
4,000 The New England Loan Marketing Corporation, Student Loan Revenue No Opt. Call AA 4,244,320
Bonds, 1992 Subordinated Issue H, 6.900%, 11/01/09 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 13.4%
4,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/04 at 102 AAA 3,560,160
Bonds, New England Medical Center Hospitals Issue, Series G-1,
5.375%, 7/01/24
3,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/03 at 102 AAA 2,907,990
Bonds, Lahey Clinic Medical Center Issue, Series B, 5.625%, 7/01/15
200 Massachusetts Health and Educational Facilities Authority, Revenue No Opt. Call N/R 200,214
Refunding Bonds (Cardinal Cushing General Hospital), Series
1989-A, 8.500%, 7/01/00
Massachusetts Health and Educational Facilities Authority,
Revenue Refunding Bonds, Youville Hospital Issue (FHA-Insured
Project), Series B:
2,095 6.125%, 2/15/15 2/04 at 102 Aa2 2,064,874
1,000 6.000%, 2/15/25 2/04 at 102 Aa2 942,890
2,805 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 102 AAA 2,334,349
Bonds, Caregroup Issue, Series A, 5.000%, 7/01/25
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 101 AAA 788,900
Bonds, Harvard Pilgrim Health Care Issue, Series A, 4.750%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.7%
3,000 Massachusetts Development Finance Agency, Assisted Living Facility 9/10 at 105 AAA 3,301,590
Revenue Bonds (The Monastery at West Springfield Project) (GNMA
Collateralized), Series 1999A, 7.625%, 3/20/41 (Alternative
Minimum Tax)
2,000 Massachusetts Development Finance Agency, Assisted Living Facility 12/09 at 102 N/R 1,974,960
Revenue Bonds (Prospect House Apartments), Series 1999,
7.000%, 12/01/31 (Alternative Minimum Tax)
3,800 Massachusetts Housing Finance Agency, Housing Project Revenue Bonds, 4/03 at 102 A+ 3,865,930
6.300%, 10/01/13
1,910 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/05 at 102 AAA 2,012,376
Revenue Bonds, 1995 Series A (FHA-Insured Mortgage Loans),
7.350%, 1/01/35 (Alternative Minimum Tax)
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM CARE - 5.4%
$ 1,270 City of Boston, Revenue Bonds (Deutsches Altenheim, Incorporated 10/08 at 105 AAA $ 1,206,144
Project, FHA-Insured Mortgage), Series 1998A, 6.125%, 10/01/31
2,000 Massachusetts Development Finance Agency, Revenue Bonds, Northern 8/09 at 101 A 1,906,100
Berkshire Community Services, Inc. Issue, 1999 Series A,
6.250%, 8/15/25
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 2/07 at 102 Aa2 958,220
Refunding Bonds, Youville Hospital Issue (FHA-Insured Project),
Series A, 6.250%, 2/15/41
1,060 Massachusetts Industrial Financial Agency, Revenue Bonds, Heights 2/06 at 102 AAA 1,049,718
Crossing Limited Partnership Issue (FHA-Insured Project), Series
1995, 6.000%, 2/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.9%
Town of Barnstable, General Obligation Bonds:
1,020 5.750%, 9/15/10 9/04 at 102 AA 1,043,368
1,020 5.750%, 9/15/11 9/04 at 102 AA 1,039,003
4,375 City of Lowell, General Obligation State Qualified Bonds, 11/03 at 102 AAA 4,383,881
5.600%, 11/01/12
2,500 Massachusetts Bay Transportation Authority, General Transportation No Opt. Call Aa2 2,823,725
System Bonds, 1991 Series A, 7.000%, 3/01/21
1,000 Narragansett Regional School District, General Obligation Bonds, 6/10 at 101 Aaa 1,060,940
Series 2000, 6.500%, 6/01/16 (WI)
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.5%
1,300 Massachusetts Development Finance Agency, Revenue Bonds, Worcester 6/09 at 101 AA 1,327,027
Redevelopment Authority Issue, Series 1999, 6.000%, 6/01/24
4,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 9/06 at 102 AAA 3,919,000
(US Air Project), Series 1996-A, 5.750%, 9/01/16 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.8%
2,500 Massachusetts Health and Educational Facilities Authority, Revenue No Opt. Call AAA 2,327,775
Bonds, Malden Hospital Issue (FHA-Insured Project), Series A,
5.000%, 8/01/16
2,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/06 at 100 Aaa 2,091,160
Bonds (Daughters of Charity National Health System - The Carney
Hospital), Series D, 6.100%, 7/01/14 (Pre-refunded to 7/01/06)
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, New England Deaconess Hospital Issue, Series D:
3,310 6.625%, 4/01/12 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 3,465,967
1,000 6.875%, 4/01/22 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 1,051,360
1,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, 7/00 at 100 AAA 1,512,830
13.000%, 7/01/13
2,500 Massachusetts Industrial Finance Agency, Revenue Refunding Bonds, 11/02 at 102 AA-*** 2,623,625
College of the Holy Cross - 1992 Issue II, 6.375%, 11/01/15
(Pre-refunded to 11/01/02)
1,250 Massachusetts Industrial Finance Agency, Revenue Bonds, Merrimack 7/02 at 102 AAA 1,326,088
College Issue, Series 1992, 7.125%, 7/01/12
(Pre-refunded to 7/01/02)
1,175 Massachusetts Industrial Finance Agency, Revenue Bonds (Brooks 7/03 at 102 A3*** 1,223,398
School Issue), Series 1993, 5.950%, 7/01/23
(Pre-refunded to 7/01/03)
3,000 Massachusetts Water Resources Authority, General Revenue Bonds, 12/01 at 100 Aaa 3,040,830
1991 Series A, 5.750%, 12/01/21 (Pre-refunded to 12/01/01)
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/01 at 102 AAA 3,138,240
Series P, 7.000%, 7/01/21 (Pre-refunded to 7/01/01)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.5%
2,000 Massachusetts Municipal Wholesale Electric Company, Power Supply 7/02 at 100 AAA 2,003,940
System Revenue Bonds, 1992 Series A, 6.000%, 7/01/18
3,215 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 7/01 at 103 N/R 3,398,995
Bonds, Semass Project, Series 1991B, 9.250%, 7/01/15 (Alternative
Minimum Tax)
2,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 12/08 at 102 BBB 1,714,020
Refunding Bonds (Ogden Haverhill Project), Series 1998A,
5.600%, 12/01/19 (Alternative Minimum Tax)
<PAGE>
Nuveen Massachusetts Premium Income Municipal Fund (NMT) (continued)
Portfolio of INVESTMENTS May 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER - 2.7%
$ 3,000 Massachusetts Water Resources Authority, General Revenue Refunding 3/03 at 100 A+ $ 2,568,150
Bonds, 1993 Series B, 5.000%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 95,705 Total Investments (cost $95,011,894) - 99.0% 94,388,516
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.1%
$ 2,000 Massachusetts Industrial Finance Agency (Showa Womens Institute VMIG-1 2,000,000
============= Boston, Inc. 1994 Project), Variable Rate Demand Bonds,
4.450%, 3/15/04+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.1)% (1,065,239)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 95,323,277
====================================================================================================================
</TABLE>
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
<PAGE>
Nuveen Missouri Premium Income Municipal Fund (NOM)
Portfolio of
INVESTMENTS May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONSUMER STAPLES - 2.0%
$ 1,000 Missouri State Development Finance Board, Solid Waste Disposal No Opt. Call AA $ 873,530
Revenue Bonds (Procter & Gamble Paper Products Company Project),
Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.9%
1,875 The Junior College District of Mineral Area (Mineral Area College), 9/10 at 102 N/R 1,903,219
Student Housing System Revenue Bonds, Series 2000, 7.200%, 9/01/20
1,665 Health and Educational Facilities Authority of the State of 11/08 at 101 AA+ 1,362,320
Missouri, Educational Facilities Revenue Bonds (The Washington
University), Series 1998A, 5.000%, 11/15/37
825 Health and Educational Facilities Authority of the State of 3/10 at 101 AA+ 818,681
Missouri, Educational Facilities Revenue Bonds (The Washington
University), Series 2000A, 6.000%, 3/01/30
2,000 Health and Educational Facilities Authority of the State of 6/10 at 100 Baa1 1,991,000
Missouri, Educational Facilities Revenue Bonds (Maryville
University of Saint Louis Project), Series 2000, 6.750%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.4%
1,000 Health and Educational Facilities Authority of the State of 6/02 at 102 AAA 1,030,830
Missouri, Health Facilities Refunding Revenue Bonds (SSM Health
Care), Series 1992AA, 6.250%, 6/01/07
1,000 Health and Educational Facilities Authority of the State of No Opt. Call Aa2 1,105,190
Missouri, Health Facilities Revenue Bonds (BJC Health System),
Series 1994A, 6.750%, 5/15/12
425 Health and Educational Facilities Authority of the State of 2/06 at 102 BBB+ 391,676
Missouri, Health Facilities Revenue Bonds (Lake of the Ozarks
General Hospital, Inc.), Series 1996, 6.500%, 2/15/21
400 Health and Educational Facilities Authority of the State of 5/08 at 101 AA 328,640
Missouri, Health Facilities Revenue Bonds (BJC Health System),
Series 1998, 5.000%, 5/15/28
1,000 Ray County, Hospital Revenue Bonds (Ray County Memorial Hospital), 5/05 at 101 1/2 N/R 878,650
Series 1997, 5.750%, 11/15/12
500 The Industrial Development Authority of the City of West Plains, 11/07 at 101 N/R 394,040
Hospital Facilities Revenue Bonds (Ozark Medical Center),
Series 1997, 5.600%, 11/15/17
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.2%
1,550 Missouri Housing Development Commission, Multifamily Housing 12/06 at 102 AAA 1,511,979
Revenue Bonds (Brookstone Village Apartments Project), 1996
Series A, 6.100%, 12/01/21 (Alternative Minimum Tax)
1,250 The Industrial Development Authority of St. Charles County, 4/08 at 102 AAA 1,131,275
Multifamily Housing Revenue Bonds (Ashwood Apartments Project),
Series 1998A, 5.600%, 4/01/30 (Alternative Minimum Tax)
545 The Industrial Development Authority of the County of St. Louis, 4/07 at 102 AAA 538,673
Multifamily Housing Revenue Refunding Bonds (GNMA
Collateralized - South Summit Apartments Project),
Series 1997A, 5.950%, 4/20/17
600 The Industrial Development Authority of the County of St. Louis, 4/07 at 102 AAA 594,606
Multifamily Housing Revenue Refunding Bonds (GNMA
Collateralized - South Summit Apartments Project),
Series 1997B, 6.000%, 10/20/15
(Alternative Minimum Tax)
750 The Industrial Development Authority of the County of St. Louis, 8/08 at 102 AAA 668,970
Multifamily Housing Revenue Bonds, Series 1999B (GNMA
Collateralized - Glen Trails West Apartments Project),
5.700%, 8/20/39 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.7%
1,425 Missouri Housing Development Commission, Single Family Mortgage 3/06 at 105 AAA 1,500,582
Revenue Bonds (Homeownership Loan Program), 1995 Series C,
7.250%, 9/01/26 (Alternative Minimum Tax)
1,410 Missouri Housing Development Commission, Single Family Mortgage 2/01 at 102 AAA 1,438,553
Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1991
Series A, 7.375%, 8/01/23 (Alternative Minimum Tax)
<PAGE>
Nuveen Missouri Premium Income Municipal Fund (NOM) (continued)
Portfolio of INVESTMENTS May 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL - 19.2%
$ 2,020 Ritenour School District of St. Louis County, General Obligation No Opt. Call AAA $ 2,321,990
School Bonds, Series 1995, 7.375%, 2/01/12
1,500 Francis Howell School District, St. Charles County, General No Opt. Call AAA 1,697,445
Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08
1,000 School District of the City of St. Charles, General Obligation 3/06 at 100 AA+ 1,002,330
Bonds (Missouri Direct Deposit Program), Series 1996A,
5.625%, 3/01/14
1,000 Pattonville R-3 School District, Saint Louis County, General 3/10 at 101 AAA 995,110
Obligation Bonds, Series 2000, 5.750%, 3/01/17 (WI)
1,395 The Board of Education of the City of St. Louis, General No Opt. Call AAA 1,646,644
Obligation School Refunding Bonds, Series 1993A, 8.500%, 4/01/07
625 Reorganized School District No. R-IV of Stone County (Reeds No Opt. Call AAA 725,619
Spring), General Obligation School Building Refunding and
Improvement Bonds, Series 1995, 7.600%, 3/01/10
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.5%
1,000 Land Clearance for Redevelopment Authority of Kansas City, Lease 12/05 at 102 AAA 1,001,370
Revenue Bonds (Municipal Auditorium and Muehlebach Hotel
Redevelopment Project), Series 1995A, 5.900%, 12/01/18
2,000 Missouri Development Finance Board, Infrastructure Facilities 4/10 at 100 AAA 1,950,080
Revenue Bonds (Kansas City Midtown Redevelopment Projects),
Series 2000A, 5.750%, 4/01/22
450 Monarch - Chesterfield Levee District (St. Louis County), Levee 3/10 at 101 AAA 443,111
District Improvement Bonds, Series 1999, 5.750%, 3/01/19
1,600 St. Louis Municipal Finance Corporation, City Justice Center, 2/06 at 102 AAA 1,625,200
Leasehold Revenue Improvement Bonds, Series 1996A (City of St.
Louis, Lessee), 5.750%, 2/15/11
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.3%
1,500 Kansas City, Missouri, General Improvement Airport Revenue Bonds, 9/04 at 101 AAA 1,588,035
Series 1994 A, 6.900%, 9/01/11 (Alternative Minimum Tax)
1,000 The City of St. Louis, Airport Revenue Bonds, Series 1997B (1997 No Opt. Call AAA 1,028,090
Capital Improvement Program), Lambert - St. Louis International
Airport, 6.000%, 7/01/12 (Alternative Minimum Tax)
1,000 Land Clearance for Redevelopment Authority of the City of St. 9/09 at 102 N/R 1,000,230
Louis, Tax Exempt Parking Facility Revenue Refunding and
Improvement Bonds, Series of 1999C (LCRA Parking
Facilities Project), 7.000%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 9.9%
675 Health and Educational Facilities Authority of the State of 2/06 at 102 BBB+*** 722,486
Missouri, Health Facilities Revenue Bonds (Lake of the Ozarks
General Hospital, Inc.), Series 1996, 6.500%, 2/15/21
(Pre-refunded to 2/15/06)
1,290 Health and Educational Facilities Authority of the State of 6/00 at 102 AAA 1,320,68
Missouri, Health Facilities Revenue Bonds (SSM Health Care
Obligated Group Projects), Series 1990B, 7.000%, 6/01/15
1,000 Certificates of Receipt, Series 1993, St. Louis County, GNMA No Opt. Call AAA 963,350
Collateralized Mortgage Revenue Bonds, Series 1989A (Escrowed
with United States Governmental Obligations), 5.650%, 7/01/20
(Alternative Minimum Tax)
1,275 St. Louis Municipal Finance Corporation, Leasehold Revenue 2/05 at 100 AAA 1,335,269
Improvement and Refunding Bonds, Series 1992 (City of St.
Louis, Lessee), 6.250%, 2/15/12 (Pre-refunded to 2/15/05)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.1%
1,225 State Environmental Improvement and Energy Resources Authority, 1/05 at 102 Aaa 1,362,261
Water Pollution Control Revenue Bonds (State Revolving Fund
Program - City of Kansas City Project), Series 1995B,
7.750%, 1/01/08
1,000 State Environmental Improvement and Energy Resources Authority, 7/04 at 102 AAA 1,013,880
Water Pollution Control Revenue Bonds (State Revolving Fund
Program - City of Branson Project), Series 1995A,
6.050%, 7/01/16
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER (continued)
$ 750 State Environmental Improvement and Energy Resources Authority, 1/06 at 101 Aaa $ 757,718
Water Pollution Control Revenue Bonds (State Revolving Fund
Program - Multiple Participant Series), Series 1996D,
5.875%, 1/01/15
350 State Environmental Improvement and Energy Resources Authority, No Opt. Call Aaa 389,155
Water Pollution Control Revenue Bonds (State Revolving Fund
Program - Kansas City Project), Series 1997C,
6.750%, 1/01/12
------------------------------------------------------------------------------------------------------------------------------------
$ 42,875 Total Investments (cost $43,791,554) - 99.2% 43,352,476
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 348,137
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 43,700,613
====================================================================================================================
</TABLE>
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
<PAGE>
Statement of
NET ASSETS May 31, 2000
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS MISSOURI
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value $104,340,190 $94,388,516 $43,352,476
Temporary investments in short-term municipal securities,
at amortized cost, which approximates market value -- 2,000,000 --
Cash 104,462 -- 802,581
Receivables:
Interest 1,884,642 1,799,893 727,687
Investments sold 25,162 50,000 10,181
Other assets 5,122 15,518 2,517
------------------------------------------------------------------------------------------------------------------------------------
Total assets 106,359,578 98,253,927 44,895,442
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 1,446,719 --
Payable for investments purchased -- 1,053,164 980,709
Accrued expenses:
Management fees 57,991 52,259 23,983
Other 47,662 33,623 37,718
Preferred share dividends payable 18,883 16,763 12,490
Common share dividends payable 355,646 328,122 139,929
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 480,182 2,930,650 1,194,829
------------------------------------------------------------------------------------------------------------------------------------
Net assets $105,879,396 $95,323,277 $43,700,613
====================================================================================================================================
Preferred shares, at liquidation value $ 38,300,000 $34,000,000 $16,000,000
====================================================================================================================================
Preferred shares outstanding 1,532 1,360 640
====================================================================================================================================
Common shares outstanding 5,230,985 4,655,001 2,169,931
====================================================================================================================================
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by Common shares
outstanding) $ 12.92 $ 13.17 $ 12.77
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of
OPERATIONS Year Ended May 31, 2000
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS MISSOURI
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME $ 6,427,162 $ 5,717,568 $ 2,557,947
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 701,467 632,284 289,264
Preferred shares - auction fees 96,013 85,234 40,110
Preferred shares - dividend disbursing agent fees 10,028 10,028 10,028
Shareholders' servicing agent fees and expenses 18,087 8,925 6,066
Custodian's fees and expenses 55,899 47,618 30,861
Trustees' fees and expenses 2,145 1,988 1,316
Professional fees 12,608 14,496 13,841
Shareholders' reports - printing and mailing expenses 13,104 3,836 14,919
Stock exchange listing fees 16,326 13,694 1,001
Investor relations expense 9,436 8,321 3,924
Other expenses 10,871 10,505 10,324
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 945,984 836,929 421,654
Custodian fee credit (24,350) (9,714) (3,935)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 921,634 827,215 417,719
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,505,528 4,890,353 2,140,228
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions (176,786) (952,042) (203,419)
Change in net unrealized appreciation (depreciation) of investments (7,898,353) (6,202,081) (2,806,168)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (8,075,139) (7,154,123) (3,009,587)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $(2,569,611) $(2,263,770) $ (869,359)
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Statement of
CHANGES IN NET ASSETS
CONNECTICUT MASSACHUSETTS MISSOURI
-------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 5,505,528 $ 5,211,308 $ 4,890,353 $ 4,778,515 $ 2,140,228 $ 2,097,882
Net realized gain (loss)from
investment transactions (176,786) 179,160 (952,042) 62,570 (203,419) 144,162
Change in net unrealized
appreciation (depreciation)
of investments (7,898,353) (546,826) (6,202,081) (862,463) (2,806,168) (635,348)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)in net
assets from operations (2,569,611) 4,843,642 (2,263,770) 3,978,622 (869,359) 1,606,696
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net
investment income:
Common shareholders (4,258,822) (4,152,776) (3,932,098) (3,943,214) (1,673,291) (1,643,003)
Preferred shareholders (1,140,890) (1,019,710) (994,318) (935,926) (570,470) (477,251)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (5,399,712) (5,172,486) (4,926,416) (4,879,140) (2,243,761) (2,120,254)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due
to reinvestment of distributions 383,940 409,551 225,388 252,623 211,128 180,843
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets (7,585,383) 80,707 (6,964,798) (647,895) (2,901,992) (332,715)
Net assets at the beginning
of year 113,464,779 113,384,072 102,288,075 102,935,970 46,602,605 46,935,320
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $105,879,396 $113,464,779 $ 95,323,277 $102,288,075 $43,700,613 $46,602,605
====================================================================================================================================
Balance of undistributed net
investment income at the
end of year $ 428,741 $ 322,925 $ 77,540 $ 113,603 $ 30,977 $ 134,510
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
stock exchange symbols are Nuveen Connecticut Premium Income Municipal Fund
(NTC), Nuveen Massachusetts Premium Income Municipal Fund (NMT) and Nuveen
Missouri Premium Income Municipal Fund (NOM). Connecticut and Massachusetts are
traded on the New York Stock Exchange while Missouri is traded on the American
Stock Exchange.
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities within a single state. The
Funds are registered under the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities 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 Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers and general market
conditions. Temporary investments in securities that have variable rate and
demand features qualifying them as short-term securities are valued at amortized
cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At May
31, 2000, Massachusetts and Missouri had outstanding when-issued purchase
commitments of $1,053,164 and $980,709, respectively. There were no such
outstanding purchase commitments in Connecticut.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common share. 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, if any, to retain such tax-exempt status when distributed to shareholders
of the Funds. All monthly tax-exempt income dividends paid during the fiscal
year ended May 31, 2000, have been designated Exempt Interest Dividends. Net
realized capital gain and market discount distributions are subject to federal
taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount 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 accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one Series. The dividend rate on each
Series may change every seven days, as set by the auction agent. The number of
shares outstanding for each Fund is as follows:
CONNECTICUT MASSACHUSETTS MISSOURI
--------------------------------------------------------------------------------
Number of Shares:
Series Th 1,532 1,360 640
================================================================================
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the fiscal year ended May 31, 2000.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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 from operations during the reporting period. Actual
results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
CONNECTICUT MASSACHUSETTS
-----------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/00 5/31/99 5/31/00 5/31/99
--------------------------------------------------------------------------------
Shares issued to
shareholders
due to reinvestment
of distributions 25,420 25,373 15,214 15,263
================================================================================
MISSOURI
----------------------------
YEAR ENDED YEAR ENDED
5/31/00 5/31/99
--------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of
distributions 15,542 11,929
================================================================================
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on July 3, 2000, to shareholders of record on
June 15, 2000, as follows:
CONNECTICUT MASSACHUSETTS MISSOURI
--------------------------------------------------------------------------------
Dividend per share $.0680 $.0680 $.0615
================================================================================
<PAGE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the fiscal year ended May 31,
2000, were as follows:
CONNECTICUT MASSACHUSETTS MISSOURI
--------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $21,141,405 $12,481,403 $10,956,006
Short-term municipal securities 4,400,000 2,000,000 11,100,000
Sales and maturities:
Long-term municipal securities 19,953,097 11,081,457 10,224,478
Short-term municipal securities 4,400,000 -- 11,100,000
================================================================================
At May 31, 2000, the identified cost of investments owned for federal income tax
purposes were as follows:
CONNECTICUT MASSACHUSETTS MISSOURI
--------------------------------------------------------------------------------
$106,983,387 $97,752,946 $43,937,541
================================================================================
At May 31, 2000, 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:
CONNECTICUT MASSACHUSETTS MISSOURI
--------------------------------------------------------------------------------
Expiration year:
2003 $ 715,734 $ 552,941 $ 804,913
2004 1,105,901 945,779 708,417
2005 847,914 195,761 --
2008 7,281 210,989 57,432
--------------------------------------------------------------------------------
Total $2,676,830 $1,905,470 $1,570,762
================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 2000, were as follows:
Gross unrealized:
appreciation $ 1,552,670 $ 1,719,178 $ 608,223
depreciation (4,195,867) (3,083,608) (1,193,288)
--------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) $(2,643,197) $(1,364,430) $ (585,065)
================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
================================================================================
The 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 Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
7. COMPOSITION OF NET ASSETS
At May 31, 2000, net assets consisted of:
CONNECTICUT MASSACHUSETTS MISSOURI
--------------------------------------------------------------------------------
Preferred shares, $25,000
stated value per share,
at liquidation value $ 38,300,000 $34,000,000 $16,000,000
Common shares, $.01 par
value per share 52,310 46,550 21,699
Paid-in surplus 72,418,372 64,469,088 29,803,764
Balance of undistributed net
investment income 428,741 77,540 30,977
Accumulated net realized gain
(loss) from investment
transactions (2,846,335) (2,646,523) (1,716,749)
Net unrealized appreciation
(depreciation) of investments (2,473,692) (623,378) (439,078)
--------------------------------------------------------------------------------
Net assets $105,879,396 $95,323,277 $43,700,613
================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
================================================================================
<PAGE>
Financial
HIGHLIGHTS
<PAGE>
Financial
HIGHLIGHTS
Selected data for a share outstanding throughout each year:
<TABLE>
<CAPTION>
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------------------------------------------------------------------------------------------------
NET NET NET
REALIZED/ INVESTMENT INVESTMENT CAPITAL CAPITAL ENDING
BEGINNING NET UNREALIZED INCOME INCOME GAINS GAINS NET ENDING
NET ASSET INVESTMENT INVESTMENT TO COMMON TO PREFERRED TO COMMON TO PREFERRED ASSET MARKET
VALUE INCOME GAIN (LOSS) TOTAL SHAREHOLDERS SHAREHOLDERS+ SHAREHOLDERS SHAREHOLDERS+ TOTAL VALUE VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT
Year Ended 5/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $14.44 $1.06 $(1.54) $ (.48) $(.82) $(.22) $-- $-- $(1.04) $12.92 $13.5000
1999 14.49 1.00 (.05) .95 (.80) (.20) -- -- (1.00) 14.44 16.7500
1998 13.63 1.00 .89 1.89 (.80) (.23) -- -- (1.03) 14.49 15.5000
1997 12.99 1.00 .60 1.60 (.76) (.20) -- -- (.96) 13.63 14.1250
1996 13.20 .98 (.21) .77 (.73) (.25) -- -- (.98) 12.99 13.6250
MASSACHUSETTS
Year Ended 5/31:
2000 14.72 1.05 (1.54) (.49) (.85) (.21) -- -- (1.06) 13.17 14.0000
1999 14.91 1.02 (.16) .86 (.85) (.20) -- -- (1.05) 14.72 16.0625
1998 14.11 1.06 .83 1.89 (.85) (.24) -- -- (1.09) 14.91 16.5000
1997 13.58 1.06 .53 1.59 (.84) (.22) -- -- (1.06) 14.11 14.7500
1996 13.76 1.05 (.19) .86 (.80) (.24) -- -- (1.04) 13.58 13.7500
MISSOURI
Year Ended 5/31:
2000 14.20 .99 (1.39) (.40) (.77) (.26) -- -- (1.03) 12.77 12.8125
1999 14.44 .97 (.22) .75 (.77) (.22) -- -- (.99) 14.20 14.1875
1998 13.68 .99 .78 1.77 (.76) (.25) -- -- (1.01) 14.44 14.1875
1997 13.11 1.00 .55 1.55 (.73) (.25) -- -- (.98) 13.68 13.0625
1996 13.37 .96 (.30) .66 (.67) (.25) -- -- (.92) 13.11 12.5000
====================================================================================================================================
</TABLE>
* Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per share. Total
returns are not annualized.
** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
<PAGE>
<TABLE>
<CAPTION>
TOTAL RETURNS RATIOS/SUPPLEMENTAL DATA
--------------- -------------------------------------------------------------------------------------------------------------------
BEFORE CREDIT AFTER CREDIT**
-------------------------------------------------- ------------------------------------------------
RATIO OF NET RATIO OF NET RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT RATIO OF INVESTMENT RATIO OF INVESTMENT
EXPENSES INCOME TO EXPENSES INCOME TO EXPENSES INCOME TO EXPENSES INCOME TO
BASED TO AVERAGE AVERAGE TO AVERAGE AVERAGE TO AVERAGE AVERAGE TO AVERAGE AVERAGE
BASED ON ENDING NET ASSETS NET ASSETS TOTAL TOTAL NET ASSETS NET ASSETS TOTAL TOTAL
ON NET NET APPLICABLE APPLICABLE NET ASSETS NET ASSETS APPLICABLE APPLICABLE NET ASSETS NET ASSETS PORTFOLIO
MARKET ASSET ASSETS TO COMMON TO COMMON INCLUDING INCLUDING TO COMMON TO COMMON INCLUDING INCLUDING TURNOVER
VALUE* VALUE* (000) SHARES++ SHARES++ PREFERRED++ PREFERRED++ SHARES++ SHARES++ PREFERRED++ PREFERRED++ RATE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT
Year Ended 5/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(14.85)%(4.87)% $105,879 1.36% 7.87% .88% 5.08% 1.32% 7.91% .85% 5.10% 19%
13.50 5.22 113,465 1.32 6.83 .88 4.54 1.30 6.84 .87 4.55 7
15.61 12.39 113,384 1.33 7.02 .88 4.61 1.33 7.02 .88 4.61 13
9.58 11.01 108,524 1.38 7.46 .89 4.79 1.38 7.46 .89 4.79 18
14.06 3.97 104,928 1.40 7.37 .89 4.71 1.40 7.37 .89 4.71 15
MASSACHUSETTS
Year Ended 5/31:
(7.66) (4.79) 95,323 1.32 7.71 .86 5.02 1.31 7.73 .85 5.03 11
2.48 4.47 102,288 1.30 6.87 .88 4.61 1.30 6.88 .87 4.62 11
18.08 11.91 102,936 1.31 7.22 .88 4.81 1.31 7.22 .88 4.81 17
13.76 10.28 99,006 1.34 7.63 .88 4.99 1.34 7.63 .88 4.99 22
8.99 4.55 96,303 1.35 7.61 .88 4.95 1.35 7.61 .88 4.95 18
MISSOURI
Year Ended 5/31:
(4.35) (4.63) 43,701 1.48 7.49 .95 4.80 1.47 7.51 .94 4.81 23
5.24 3.64 46,603 1.44 6.72 .95 4.44 1.43 6.72 .95 4.44 10
14.53 11.31 46,935 1.47 7.03 .97 4.60 1.47 7.03 .97 4.60 25
10.53 10.09 45,224 1.54 7.38 .99 4.74 1.54 7.38 .99 4.74 36
10.07 3.09 44,014 1.57 7.13 1.01 4.57 1.57 7.13 1.01 4.57 34
====================================================================================================================================
</TABLE>
<PAGE>
sidebar:
NUVEEN OFFERS A NUMBER OF CONVENIENT WAYS TO ADD TO YOUR PORTFOLIO AND EARN THE
TAX-FREE INCOME YOU NEED TO ACHIEVE YOUR FINANCIAL GOALS.
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
Build Your Wealth
AUTOMATICALLY
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
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. You'll also potentially benefit from dollar-cost averaging, a
technique of investing at regular intervals, which allows you to build a
high-quality, tax-free portfolio conveniently and cost effectively over time.
Dollar-cost averaging does not ensure a profit, nor does it protect you against
loss in a declining market. Because such a plan involves continuous investment
regardless of fluctuating prices, investors should consider their financial
ability to continue purchases through periods of low price levels.
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.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you with draw, 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 also
reinvest if your shares are registered in the name of a brokerage firm, bank, or
other nominee. Just ask your investment adviser if the firm will participate on
your behalf. If not, it's easy to have the shares registered in your name and to
apply for a reinvestment account directly. 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.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
<PAGE>
Fund
INFORMATION
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended May 31, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors
FOR GENERATIONS
PHOTO: John Nuveen, Sr.
John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products services can help you
preserve your financial security, and talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
LOGO: NUVEEN
INVEST WELL.
LOOK AHEAD.
LEAVE YOUR MARK.SM
John Nuveen & Co. Incorporated o 333 West Wacker Drive FAN-3-5-00
Chicago, IL 60606 o www.nuveen.com
