Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams
CONNECTICUT PREMIUM INCOME (NTC)
MASSACHUSETTS PREMIUM INCOME (NMT)
MISSOURI PREMIUM INCOME (NOM)
WASHINGTON PREMIUM INCOME (NPW)
ANNUAL REPORT/MAY 31, 1996
Photographic image of couple walking on beach.
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Photographic image of financial adviser reviewing financial statements/plans
with older couple.
Tax-informed investing
An important part of any successful investment program is gauging how well
your investments have performed and measuring your progress toward your
long-term goals.
<PAGE>
The imposition of taxes dramatically alters the relative returns of the five
asset classes.
Graph showing after-tax returns, 1976-1996.
Municipals 8.26
Treasuries 5.62
Corporates 6.11
Stocks 10.51
Treasury Bills 3.87
Traditionally, the most common way to measure performance has been to compare
pre-tax rates of return for your different investments across similar time
periods. The rationale behind this method is that each investor is taxed at a
different rate, making pre-tax comparisons the seemingly logical way to ensure
you are comparing apples to apples.
This, however, is precisely the rationale that can make a pre-tax
performance assessment misleading. When returns are presented on a pre-tax
basis, you may lose sight of the major impact taxes can have on your earnings,
and fail to get the complete picture of your progress toward your investment
goals. At Nuveen, we've built our reputation help ing investors realize that
it's not what you earn, it's what you keep.
TAX-INFORMED INVESTING: THE KEY TO MEASURING LONG-TERM RESULTS
The true measure of an investment is its performance on an after-tax basis.
Analyzing after-tax returns gains added significance when you realize that the
taxes you pay can never be regained. Once that money is "lost," it can't be
put to work through compounding, earning additional dollars for you.
To better illustrate the ways that taxes can affect the amount you keep
versus the amount you earn, Nuveen Research recently studied 20 years of
investment returns, both pre-tax and after-tax, to determine the impact of
taxes on various asset classes. We were particularly interested in the study
results for municipal bonds, an asset class that is commonly excluded from the
top performance rankings when only pre-tax returns are considered.
MEASURING WHAT YOU KEEP
The study showed that, once the impact of taxes was figured into the equation,
municipal bonds offered a distinct advantage over other fixed income
investments. Over the study period, municipal bonds outperformed both
corporate and Treasury bonds (see accompanying tables), as high tax rates and
the loss of compounding income took their toll on corporate and Treasury
results.
As investors are well aware, performance over the long term--and the
purchasing power of their earnings--can be eroded by inflation as well as
taxes. The study showed that, over the past 20 years, only municipal bonds and
stocks provided significant after-tax gains over the Consumer Price Index, the
most recognized measure of inflation.
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ABOUT THE STUDY
The study, "Measuring What You Keep: Historical After-Tax Returns," compared
pre-tax and after-tax total returns over the past 20 years for five asset
classes: municipal bonds, Treasury bonds, Treasury bills, corporate bonds,
and large company stocks. Returns for each asset class were represented by the
returns on commonly used market indexes compiled by Lehman Brothers and
Ibbotson & Associates.
A hypothetical investment of $100,000 was made in each of these asset
classes at the beginning of 1976, with all dividends and interest reinvested
through the end of 1995. In addition, the after-tax proceeds of an assumed
annual 20% turnover rate were reinvested. The study assumed that taxes were
paid annually at the applicable federal income tax rates for an investor
earning the equivalent of $100,000 in 1995. Of course, this hypothetical
investment performance neither reflects past performance nor predicts future
results of any Nuveen investment.
INCORPORATING TAX-INFORMED INVESTING IN YOUR PORTFOLIO
The Nuveen study confirms what many investors have known for years: that
municipal bonds can play a critical role in the long-term financial strategies
of tax-informed investors.
Balancing short-term and long-term investments
Combining shorter- and longer-term tax-free investments may help you manage
cumulative risk in your portfolio while still capturing the potential for
attractive overall rates. Shorter term investments can help reduce the current
volatility of your portfolio and provide a source of investable funds to take
advantage of additional investment opportunities as they arise. Longer-term
leveraged exchange-traded funds have provided attractive yields and offer
trading flexibility that allows quick and easy portfolio adjustments.
Dividend reinvestment
Studies indicate that weathering market cycles by maintaining an investment
plan with long-term goals can help shield investors in the event of a
declining market. The purchase of additional shares on a regular schedule,
such as through dividend reinvestment, is another strategy for navigating
market changes. Dividend reinvestment is an easy and convenient way to set
aside dollars on a regular basis, helping you take advantage of dollar-cost
averaging while gaining the benefits of tax-free compounding.
CONSISTENT AFTER-TAX PERFORMANCE
For the long-term investor, performance--even after the impact of taxes and
inflation--is the true meas ure of an investment's merit. While most investors
choose municipal bonds for their tax-free income advantage, the positive news
about their after-tax returns reinforces their potential value as part of a
tax-informed investment strategy designed to meet long-term objectives.
Understanding the impact of taxes can mean that you keep more of what you
earn, and municipal bonds can help you do just that.
Only municipals and equities generated significant increases in purchasing
power over the twenty-year period, with after-tax and inflation-adjusted
returns in excess of 2.75% annually.
<TABLE>
ANNUAL AFTER-TAX REAL RETURNS, 1976-1995
<CAPTION>
PERIOD MUNICIPALS TREASURIES CORPORATES STOCKS BILLS
<S> <C> <C> <C> <C> <C>
1976-1985 .69% -3.32% -2.14% 2.75% -2.67%
1986-1995 5.15 4.21 3.91 7.31 0.13
1976-1995 2.88% 0.37% 0.84% 5.02% -1.30%
</TABLE>
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Photographic image of couple walking on beach.
CONTENTS
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
13 Fund performance
15 Commonly used terms
17 Portfolio of investments
30 Statement of net assets
31 Statement of operations
32 Statement of changes in net assets
34 Notes to financial statements
42 Financial highlights
44 Report of independent auditors
45 Nuveen Exchange-Traded Funds dividend reinvestment program
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Municipal market perspective
Over the past 12 months, the bond market has continued to reward investors
with solid returns, a welcome relief from the declines experienced in 1994.
Although the beginning of 1996 saw the overall bond market soften somewhat
from 1995's bullish stance, municipal bonds have maintained their edge over
Treasuries in recent months. Investors are taking advantage of opportunities
to purchase higher yielding bonds with strong credit quality.
Currently, minor increases in consumer and producer prices, low wage pressure,
and a stable money supply all point to an economy that is growing moderately.
Despite these positive indicators, however, a degree of uncertainty persists,
as investors continue to worry about the pace of growth and the potential for
the reappearance of inflation.
Investors may draw some reassurance from the fact that the Federal Reserve
appears to remain committed to a policy of low inflation and modest economic
growth, which bodes well for the bond markets and bond investors.
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Dear shareholder
Photographic image of head shot of Chairman and Chief Executive Officer
of Nuveen.
"Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors."
As I begin my duties as the new chairman and chief executive officer of John
Nuveen & Co. Incorporated and chairman of the board of the Nuveen
exchange-traded funds, I am pleased to report to you on the performance of
your funds. My experience with Nuveen over 19 years has reinforced my
commitment to maintaining Nuveen's successful tradition of value investing and
prudent management, helping our shareholders meet their need for tax-free
investment income with a full range of investment choices. Our focus will
continue to be on building shareholder value, providing research-oriented
management, and delivering dependable performance. With this focus, we
anticipate many more years of progress and accomplishment for fund
shareholders and our firm.
Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors. The performance of the exchange-traded funds
covered in this report demonstrates how quality investments can provide
attractive tax-free income. As of May 31, 1996, the current annual yields on
share price for these funds ranged from 5.46% to 6.33%. To match these yields,
investors in the 36% federal income tax bracket would have had to earn at
least 8.53% on taxable alternatives. Without question, taxable yields at this
level on investments of comparable quality can be difficult to achieve in
today's markets. The exemption from state taxes further enhances the
advantages of these funds.
With the strength of the bond market last year, these funds enjoyed an
increase in share prices, further improving investors' overall experience for
the year ending May 31, 1996, as well as attractive returns. The changes in
net asset value, including the reinvestment of all dividends and capital
gains, if any, ranged from 3.09% to 4.55%, equivalent to taxable investments
with total returns of 6.53% to 9.15%.
The years ahead present opportunities as well as challenges for all of us. I
want to thank you for your continued confidence in Nuveen exchange-traded
funds, and I look forward to sharing reports of continued progress with you.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
July 15, 1996
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Answering your questions
Photographic image of montage of letters received by Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, discusses investment
performance and recent factors affecting the municipal market.
What has been Nuveen's investment approach during this period?
Nuveen has continued to pursue its value investing strategy, a disciplined
approach to security selection and portfolio construction designed to deliver
above-market performance by identifying individual bonds with current yields,
prices, credit quality, and future prospects that are exceptionally attractive
in relation to other bonds in the market. This approach was rewarded over the
past year, as many of our portfolio holdings were upgraded by the national
rating agencies, indicating that our Research Department's judgments about
credit quality were on target.
As opportunity allowed, we moved to protect current income by investing a
larger percentage of our portfolios in non-callable bonds. Because these bonds
cannot be redeemed before maturity, their yields are assured for the long term
even if interest rates decline. We also purchased an increased number of bonds
at discounts from their par value. These bonds, which have coupon rates
slightly below market levels, are less likely to be called from our
portfolios, assuring more stable yields for our investors.
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Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
Some funds' discounts seem to have narrowed over the past few months. What
caused this improvement?
To understand the reasons for this improvement, it may be helpful to remember
that each share has two prices: the net asset value (NAV), which represents
the underlying value of the bonds, and the share price, which is the fund's
price on the stock exchange. As with other securities, share prices for
municipal bond funds change frequently, driven by investors' demand for shares
and the available supply. When a share's NAV is higher than its share price,
we say that the shares can be purchased at a discount.
In 1995, the recovery of the bond market meant that the net asset values for
some funds appreciated more quickly than their share prices, widening
discounts for a while. This is not unusual, as the market often takes time to
recognize underlying value balanced against the various factors that affect
investor decisions, such as the outlook for the direction of interest rates,
inflation forecasts, the relative strength of the stock market, and
legislative and tax outlooks. Over the past few months, investor worries about
tax reform--and the potential effect of a flat tax proposal on tax-free
investments--have waned somewhat, boosting the demand for tax-free products.
The combination of higher yields, concerns about the direction of the stock
market, and broker recommendations has also prompted a greater demand for
municipal bonds and bond funds. With increased demand, share prices have
risen, resulting in narrower discounts. In fact, some exchange-traded funds
are now trading at a premium, that is, their share prices are higher than
their NAVs.
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What caused the dividends of some funds to decline recently?
All Nuveen funds are structured to provide an attractive stream of tax-free
income. We realize that for many investors, stability of income is another
important objective. We set dividends on Nuveen funds conservatively, seeking
a level that we expect will be sustainable for at least several months. Many
of the funds that have had dividend reductions over the past year had
previously enjoyed prolonged periods without dividend changes. Still,
dividends ultimately depend on overall earnings of each fund, which can be
reduced by bond calls, changes in long- and short-term interest rates, and
other portfolio changes.
Many of our funds use leverage as an additional way to enhance income for
common shareholders. A sudden or prolonged rise in short-term interest rates
can affect dividends of leveraged funds. In fact, short-term rates on average
have been higher over the past two years than they were in the early 1990s.
This has resulted in higher rates for preferred shareholders and less income
available for common shareholders. It is important to remember that leverage
can increase NAV volatility as well as investment potential. Greater stability
in both long and short interest rates in 1996 has reduced some of the dividend
and NAV pressures for many leveraged funds.
Bond calls can also act to lower dividends. As the Federal Reserve Board cut
rates between July 1995 and January 1996, long-term municipal bond yields
reacted by declining almost 130 basis points from their levels at the
beginning of 1995. As called bonds have been replaced in some portfolios with
the bonds available in the market today, fund earnings are reduced.
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<TABLE>
NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND
NTC
Shareholders enjoyed an increase in the monthly tax-free dividend in
November, as common shareholders benefitted from the effects of leverage.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
06/13/95 $0.0600
07/12/95 $0.0600
08/11/95 $0.0600
09/13/95 $0.0600
10/11/95 $0.0600
11/13/95 $0.0620
12/13/95 $0.0620
01/10/96 $0.0620
02/13/96 $0.0620
03/13/96 $0.0620
04/11/96 $0.0620
05/13/96 $0.0620
<CAPTION>
FUND HIGHLIGHTS 5/31/96
<S> <C>
Yield 5.46%
Taxable-equivalent yield 8.95%
Annual total return on NAV 3.97%
Taxable-equivalent total return 7.62%
Share price $13.625
NAV $12.99
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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<TABLE>
NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND
NMT
Shareholders enjoyed an increase in the monthly tax-free dividend in February,
as common shareholders benefitted from the effects of leverage.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
06/13/95 $0.0660
07/12/95 $0.0660
08/11/95 $0.0660
09/13/95 $0.0660
10/11/95 $0.0660
11/13/95 $0.0660
12/13/95 $0.0660
01/10/96 $0.0660
02/13/96 $0.0680
03/13/96 $0.0680
04/11/96 $0.0680
05/13/96 $0.0680
<CAPTION>
FUND HIGHLIGHTS 5/31/96
<S> <C>
Yield 5.93%
Taxable-equivalent yield 10.50%
Annual total return on NAV 4.55%
Taxable-equivalent total return 9.15%
Share price $13.75
NAV $13.58
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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<TABLE>
NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND
NOM
Shareholders enjoyed an increase in the monthly tax-free dividend in February,
as common shareholders benefitted from the effects of leverage.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
06/13/95 $0.0550
07/12/95 $0.0550
08/11/95 $0.0550
09/13/95 $0.0550
10/11/95 $0.0550
11/13/95 $0.0550
12/13/95 $0.0550
01/10/96 $0.0550
02/13/96 $0.0585
03/13/96 $0.0585
04/11/96 $0.0585
05/13/96 $0.0585
<CAPTION>
FUND HIGHLIGHTS 5/31/96
<S> <C>
Yield 5.62%
Taxable-equivalent yield 9.37%
Annual total return on NAV 3.09%
Taxable-equivalent total return 6.53%
Share price $12.50
NAV $13.11
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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<TABLE>
NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND
NPW
In line with the Fund's goal of providing attractive, dependable tax-free
income, share holders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
06/13/95 $0.0620
07/12/95 $0.0620
08/11/95 $0.0620
09/13/95 $0.0620
10/11/95 $0.0620
11/13/95 $0.0620
12/13/95 $0.0620
01/10/96 $0.0620
02/13/96 $0.0620
03/13/96 $0.0620
04/11/96 $0.0620
05/13/96 $0.0620
<CAPTION>
FUND HIGHLIGHTS 5/31/96
<S> <C>
Yield 6.33%
Taxable-equivalent yield 9.89%
Annual total return on NAV 3.75%
Taxable-equivalent total return 6.88%
Share price $11.75
NAV $13.48
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, May 31, 1996) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given state and federal income tax rate
would need to obtain from a fully taxable investment to equal the fund's
stated annualized yield on share price. In this report, these tax rates are
assumed to be 39% for CT, 43.5% for MA, 40% for MO, and 36% for WA, based on
1996 incomes of $121,300-$263,750 for investors filing singly,
$147,700-$263,750 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by the total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
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Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value per share, both up and down, are also
magnified by leverage.
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, 1996. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
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<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND (NTC)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,400,000 Connecticut Development Authority, Water Facilities
Revenue Bonds, Bridgeport Hydraulic Company Project,
1993 B Series, 5.500%, 6/01/28 6/03 at 102 Aaa $ 1,315,076
1,130,000 Connecticut Development Authority, Water Facilities
Refunding Revenue Bonds (Stamford Water Company
Project-1993 Series), 5.300%, 9/01/28 9/03 at 102 A+ 1,003,756
2,795,000 Connecticut Development Authority, Water Facilities
Revenue Bonds, Bridgeport Hydraulic Company
Project, 1993 A Series, 5.600%, 6/01/28 (Alternative
Minimum Tax) 6/03 at 102 Aaa 2,586,521
2,000,000 Connecticut Development Authority, Solid Waste Disposal
Facilities Revenue Bonds, Pfizer Inc. Project, 1994 Series,
7.000%, 7/01/25 (Alternative Minimum Tax) 7/05 at 102 Aaa 2,227,100
Connecticut Development Authority, Health Facility
Refunding Revenue Bonds, Alzheimer's Resource Center
of Connecticut, Inc. Project, 1994 Series A:
1,500,000 6.875%, 8/15/04 No Opt. Call N/R 1,540,605
1,000,000 7.000%, 8/15/09 8/04 at 102 N/R 1,041,440
3,175,000 Connecticut Housing Finance Authority, Housing
Mortgage Finance Program Bonds, 1993 Series B,
6.200%, 5/15/12 5/03 at 102 Aa 3,216,180
2,465,000 Connecticut Housing Finance Authority, Housing
Mortgage Finance Program Bonds, 1992 Series A,
6.050%, 11/15/25 (Alternative Minimum Tax) 11/02 at 102 Aa 2,395,684
3,250,000 Connecticut Municipal Electric Energy Cooperative,
Power Supply System Revenue Bonds, 1993 Series A,
5.000%, 1/01/18 1/04 at 102 Aaa 2,900,853
2,200,000 Connecticut Resources Recovery Authority, Bridgeport
Resco Company, L.P. Project Bonds, Series A, Adjustable
Convertible Extendible Securities-Aces., 7.625%, 1/01/09 1/97 at 103 A 2,291,014
3,475,000 Connecticut Resources Recovery Authority, Resource
Recovery Revenue Bonds, American Ref-Fuel Company
of Southeastern Connecticut Project, 1989 Series A,
7.700%, 11/15/11 11/98 at 103 AA- 3,797,550
2,000,000 State of Connecticut, General Obligation Bonds, 1993
Series E, 6.000%, 3/15/12 No Opt. Call Aa 2,086,140
3,250,000 State of Connecticut, General Obligation Bonds, 1993
Series D, 5.100%, 8/01/11 8/03 at 101 1/2 Aa 3,056,008
3,525,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, University of Hartford Issue,
Series C, 8.000%, 7/01/18 (Pre-refunded to 7/01/03) 7/03 at 100 Aaa 3,941,796
1,000,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Newington Children's
Hospital, Series A, 6.050%, 7/01/10 7/04 at 102 Aaa 1,026,120
2,725,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Saint Francis Hospital and
Medical Center Issue, Series B, 6.200%, 7/01/22 7/02 at 102 Aaa 2,777,674
2,500,000 State of Connecticut, Health and Educational Facilities
Authority, Revenue Bonds, Middlesex Hospital Issue,
Series A, 6.250%, 7/01/22 7/02 at 102 Aaa 2,549,825
1,700,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Lawrence and Memorial
Hospital Issue, Series C, 6.250%, 7/01/22 (Pre-refunded
to 7/01/02) 7/02 at 102 Aaa 1,850,807
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,020,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Trinity College Issue,
Series C, 6.000%, 7/01/22 7/02 at 102 Aaa $ 2,032,080
State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, The Taft School Issue, Series B:
1,300,000 5.250%, 7/01/13 7/00 at 102 A 1,202,500
1,120,000 5.400%, 7/01/20 7/00 at 102 A 1,036,918
4,450,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Quinnipiac College Issue,
Series D, 6.000%, 7/01/23 7/03 at 102 BBB- 4,004,155
State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Fairfield University Issue,
Series B:
1,000,000 5.000%, 7/01/13 7/03 at 102 Aaa 905,400
975,000 5.000%, 7/01/18 7/03 at 102 Aaa 867,955
2,500,000 State of Connecticut, Health and Educational Facilities
Authority, Revenue Bonds, Saint Francis Hospital and
Medical Center Issue, Series C, 5.000%, 7/01/23 7/03 at 102 Aaa 2,165,750
State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Sacred Heart University Issue,
Series B:
2,600,000 5.700%, 7/01/16 7/03 at 102 Baa 2,264,704
1,000,000 5.800%, 7/01/23 7/03 at 102 Baa 871,930
State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Hospital of Saint Raphael
Issue, Series H:
2,585,000 5.100%, 7/01/07 No Opt. Call Aaa 2,523,994
2,000,000 5.200%, 7/01/08 No Opt. Call Aaa 1,950,880
1,500,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Lawrence and Memorial
Hospital Issue, Series D, 5.000%, 7/01/22 7/03 at 102 Aaa 1,304,295
1,250,000 State of Connecticut, Health and Educational Facilities
Authority, Revenue Bonds, Choate Rosemary Hall Issue,
Series A, 7.000%, 7/01/25 7/04 at 101 Aaa 1,367,463
2,000,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Nursing Home Program Issue,
Series 1994, AHF/Hartford, Inc. Project,
7.125%, 11/01/24 11/04 at 102 AA- 2,246,880
2,000,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Nursing Home Program Issue,
Series 1993, Mansfield Center for Nursing and
Rehabilitation Project, 5.875%, 11/01/12 11/03 at 102 Aaa 2,020,040
2,200,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Day Kimball Hospital Issue
Series A, 5.375%, 7/01/26 7/06 at 102 Aaa 2,016,542
1,575,000 State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Bridgeport Hospital Issue,
Series C, 5.375%, 7/01/25 7/06 at 102 AAA 1,427,249
1,800,000 State of Connecticut, Special Tax Obligation Bonds,
Transportation Infrastructure Purposes, 1991 Series B,
6.500%, 10/01/10 No Opt. Call AA- 1,968,282
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
State of Connecticut, Special Tax Obligation Refunding
Bonds, Transportation Infrastructure Purposes, 1993
Series A:
$ 750,000 5.250%, 9/01/06 9/03 at 102 AA- $ 747,877
1,000,000 5.400%, 9/01/09 9/03 at 102 AA- 984,400
1,000,000 State of Connecticut, Special Tax Obligation Refunding
Bonds, Transportation Infrastructure Purposes, 1993
Series B, 4.600%, 10/01/06 10/03 at 102 AA- 936,980
3,000,000 State of Connecticut, Airport Revenue Refunding Bonds,
Bradley International Airport, Series 1992,
7.650%, 10/01/12 10/04 at 100 Aaa 3,429,450
1,650,000 State of Connecticut, General Fund Obligation Bonds,
1994 Series A, Issued by Connecticut Development
Authority, 6.375%, 10/15/14 10/04 at 102 AA- 1,718,458
3,000,000 State of Connecticut, Clean Water Fund Subordinate
Revenue Refunding Bonds, 1996 Series, 5.250%, 7/01/10 1/05 at 101 Aaa 2,877,330
1,900,000 Capitol Region Education Council, Revenue Bonds,
6.700%, 10/15/10 10/05 at 102 BBB 1,898,936
City of New Haven, Connecticut, Air Rights Parking
Facility Revenue Bonds, Series 1991:
3,000,000 6.625%, 12/01/05 12/01 at 102 Aaa 3,251,220
1,500,000 6.500%, 12/01/15 12/01 at 102 Aaa 1,560,825
2,000,000 South Central Connecticut Regional Water Authority,
Water System Revenue Bonds, Eleventh Series,
5.750%, 8/01/12 8/03 at 102 Aaa 2,003,340
1,275,000 South Central Connecticut Regional Water Authority,
Water System Revenue Bonds, Twelfth Series,
5.125%, 8/01/07 8/03 at 102 Aaa 1,255,748
3,250,000 City of Waterbury Connecticut, General Obligation Tax
Revenue Intercept Refunding Bonds, 1993 Issue,
5.375%, 4/15/08 4/03 at 102 Aaa 3,220,295
1,580,000 Waterbury Nonprofit Housing Corporation, Connecticut
Taxable Mortgage Revenue Refunding Bonds, FHA
Insured Mortgage Loan-Fairmont Heights Section 8
Assisted Project, Series 1993A, 6.500%, 7/01/07 7/02 at 101 Aaa 1,696,146
1,930,000 Housing Authority of the City of Willimantic,
Multi-Family Housing Revenue Bonds, Series 1995A,
GNMA Collateralized Mortgage Loan-Village Heights
Apartments Project, 8.000%, 10/20/30 10/05 at 105 AAA 2,191,167
1,500,000 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority,
Hospital Revenue Refunding Bonds, 1995 Series A,
FHA Insured Mortgage-Doctor Pila Hospital Project,
6.125%, 8/01/25 8/05 at 101 1/2 AAA 1,503,344
$103,300,000 Total Investments - (cost $104,836,240) - 98.2% 103,056,682
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 300,000 Connecticut Development Authority Pollution Control
==========
Revenue Refunding Bonds (Connecticut Light and Power
Company Project-1993B Series), Variable Rate Demand
Bonds, 3.650%, 9/01/28+ VMIG-1 300,000
Other Assets Less Liabilities - 1.5% 1,571,006
Net Assets - 100% $104,927,688
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 30 $ 62,746,285 61%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 11 23,154,439 22
PORTFOLIO OF A+ A1 1 1,003,756 1
INVESTMENTS A, A- A, A2, A3 3 4,530,432 4
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 9,039,725 9
TEMPORARY Non-rated Non-rated 2 2,582,045 3
INVESTMENTS):
TOTAL 51 $103,056,682 100%
<FN>
* 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.
N/R - Investment is not rated.
+ The 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.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND (NMT)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Massachusetts Health and Educational, Facilities Authority,
Revenue Refunding Bonds, Youville Hospital Issue
(FHA Insured Project), Series B:
$ 3,030,000 6.125%, 2/15/15 2/04 at 102 Aa $ 3,038,242
1,000,000 6.000%, 2/15/25 2/04 at 102 Aa 989,090
2,250,000 Massachusetts Bay Transportation Authority, General
Transportation System Bonds, 1990 Series A,
7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 2,517,638
1,000,000 Massachusetts Educational Financing Authority, Education
Loan Revenue Bonds, Issue E, Series 1995,
6.150%, 7/01/10 (Alternative Minimum Tax) 7/04 at 102 Aaa 1,031,770
3,310,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, New England Deaconess Hospital Issue,
Series D, 6.625%, 4/01/12 4/02 at 102 A 3,421,779
1,600,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Children's Hospital Issue, Series E,
5.500%, 10/01/19 10/02 at 102 Aa 1,485,883
3,000,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Lahey Clinic Medical Center Issue,
Series B, 5.625%, 7/01/15 7/03 at 102 Aaa 2,864,820
2,000,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Massachusetts General Hospital Issue,
Series G, 5.375%, 7/01/11 7/00 at 100 Aaa 1,938,640
2,000,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds (Daughters of Charity National Health
System-The Carney Hospital), Series D, 6.100%, 7/01/14 7/04 at 102 Aa 2,012,580
3,800,000 Massachusetts Housing Finance Agency, Housing Project
Revenue Bonds, 6.300%, 10/01/13 4/03 at 102 A1 3,817,442
645,000 Massachusetts Housing Finance Agency, Housing
Development Revenue, Series 1986-A, 7.500%, 12/01/06
(Alternative Minimum Tax) 12/96 at 102 Aaa 663,828
2,450,000 Massachusetts Housing Finance Agency, Single Family
Housing Revenue Bonds, Series 9, 8.100%, 12/01/21
(Alternative Minimum Tax) 12/98 at 102 Aa 2,540,136
2,500,000 Massachusetts Housing Finance Agency, Insured Rental
Housing Bonds, 1994 Series A, 6.650%, 7/01/19
(Alternative Minimum Tax) 7/04 at 102 Aaa 2,571,925
3,850,000 Massachusetts Industrial Finance Agency, Pollution
Control Revenue Bonds, 1993 Series (Eastern Edison
Company Project), 5.875%, 8/01/08 8/03 at 102 BBB 3,694,653
3.175,000 Massachusetts Industrial Finance Agency, Resource
Recovery Revenue Bonds, Semass Project Series 1991B,
9.250%, 7/01/15 (Alternative Minimum Tax) 7/01 at 103 N/R 3,452,432
1,125,000 Massachusetts Industrial Financial Agency, Revenue
Bonds, Heights Crossing Limited Partnership Issue
(FHA Insured Project), Series 1995, 6.000%, 2/01/15
(Alternative Minimum Tax) 2/06 at 102 AAA 1,108,755
2,500,000 Massachusetts Industrial Finance Agency, Revenue
Refunding Bonds, College of the Holy Cross - 1992
Issue II, 6.375%, 11/01/15 (Pre-refunded to 11/01/02) 11/02 at 102 A1 2,744,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,400,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Merrimack College Issue, Series 1992, 7.125%, 7/01/12 7/02 at 102 BBB- $ 1,486,282
1,175,000 Massachusetts Industrial Finance Agency, Revenue Bonds
(Brooks School Issue), Series 1993, 5.950%, 7/01/23 7/03 at 102 A 1,158,597
3,500,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Phillips Academy Issue, Series 1993, 5.375%, 9/01/23 9/08 at 102 Aa1 3,218,845
2,645,000 Massachusetts Industrial Finance Agency, Revenue Bonds
(Whitehead Institute for Biomedical Research - 1993
Issue), 5.125%, 7/01/26 7/03 at 102 Aa 2,309,402
3,000,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Harvard Community Health Plan, Inc., Issue 1988
Series 3 (Refunding Bonds), 8.125%, 10/01/17 10/98 at 102 A 3,236,010
1,420,000 Massachusetts Municipal Wholesale Electric Company,
Power Supply System Revenue Bonds, 1994 Series B,
5.000%, 7/01/17 7/04 at 102 Aaa 1,252,085
2,000,000 Massachusetts Municipal Wholesale Electric Company,
A Public Corporation of The Commonwealth of
Massachusetts, Power Supply System Revenue Bonds,
6.000%, 7/01/18 7/02 at 100 Aaa 2,003,400
1,000,000 Massachusetts Port Authority, Revenue Bonds, Series 1982,
13.000%, 7/01/13 No Opt. Call Aaa 1,652,260
4,750,000 Massachusetts Port Authority, Revenue Refunding
Bonds, Series 1993-B, 5.000%, 7/01/18 (Alternative
Minimum Tax) 7/03 at 100 Aa 4,133,403
2,090,000 Massachusetts Water Pollution Abatement Trust, Water
Pollution Abatement Revenue Bonds (Pool Loan
Program), Series 1, 5.600%, 8/01/13 8/03 at 102 Aa 2,039,213
3,000,000 Massachusetts Water Resources Authority, General
Revenue Refunding Bonds, 1993 Series B,
5.000%, 3/01/22 3/03 at 100 A 2,561,790
3,000,000 Massachusetts Water Resources Authority, General
Revenue Bonds, 1991 Series A, 5.750%, 12/01/21 12/01 at 100 A 2,841,000
Town of Barnstable, Massachusetts, General Obligation
Bonds:
1,020,000 5.750%, 9/15/10 9/04 at 102 Aa 1,030,557
1,020,000 5.750%, 9/15/11 9/04 at 102 Aa 1,026,589
965,000 5.750%, 9/15/12 9/04 at 102 Aa 967,509
1,420,000 City of Boston, Massachusetts, Revenue Refunding Bonds,
Boston City Hospital (FHA Insured Mortgage), Series B,
5.750%, 2/15/23 8/00 at 102 Aa 1,344,925
2,500,000 Boston Water and Sewer Commission, General Revenue
Bonds, 1993 Series A (Senior Series), 5.250%, 11/01/11 11/01 at 102 Aaa 2,369,525
1,000,000 City of Chelsea, Massachusetts, General Obligation Bonds,
School Project Loan, Act of 1948, 7.000%, 6/15/03 No Opt. Call Aaa 1,114,600
1,600,000 City of Chicopee, Massachusetts, Electric System Revenue
Bonds, Series of 1983, 9.125%, 1/01/17 No Opt. Call Aaa 2,178,848
4,875,000 City of Lowell, Massachusetts, General Obligation State
Qualified Bonds, 5.600%, 11/01/12 11/03 at 102 Aaa 4,757,269
1,765,000 The New England Education Loan Marketing Corporation,
Student Loan Revenue Bonds, 1992 Subordinated
Issue C, 6.750%, 9/01/02 (Alternative Minimum Tax) No Opt. Call A1 1,898,487
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 4,000,000 The New England Loan Marketing Corporation, Student
Loan Revenue Bonds, 1992 Subordinated Issue H,
6.900%, 11/01/09 (Alternative Minimum Tax) No Opt. Call A1 $ 4,307,200
1,750,000 Puerto Rico Aqueduct and Sewer Authority, Revenue
Bonds, Series 1988A, 7.875%, 7/01/17 (Pre-refunded
to 7/01/98) 7/98 at 102 AAA 1,912,698
3,000,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series P, 7.000%, 7/01/21 (Pre-refunded
to 7/01/01) 7/01 at 102 Aaa 3,359,641
$93,130,000 Total Investments - (cost $93,265,262) - 97.7% 94,053,748
===========
Other Assets Less Liabilities - 2.3% 2,249,353
Net Assets - 100% $96,303,101
===========
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 16 $33,297,702 35%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 26,136,374 28
PORTFOLIO OF A+ A1 4 12,767,129 14
INVESTMENTS: A, A- A, A2, A3 5 13,219,176 14
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 5,180,935 5
Non-rated Non-rated 1 3,452,432 4
TOTAL 41 $94,053,748 100%
<FN>
* 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.
N/R - Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND (NOM)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Health Facilities Revenue Bonds (Barnes-Jewish, Inc./
Christian Health Services), Series 1993, 5.150%, 5/15/10 No Opt. Call Aa $ 937,910
1,000,000 Health and Educational Facilities Authority, of the State
of Missouri, Health Facilities Revenue Bonds (BJC
Health System), Series 1994A, 6.750%, 5/15/12 No Opt. Call Aa 1,100,170
1,000,000 Health and Educational Facilities Authority of the State of
Missouri, Health Facilities Refunding Revenue Bonds
(SSM Health Care), Series 1992AA, 6.250%, 6/01/07 6/02 at 102 Aaa 1,066,320
2,000,000 Health and Educational Facilities Authority of the State of
Missouri, Health Facilities Revenue Bonds (Saint Luke's
Health System), Series 1993, 5.125%, 11/15/19 11/03 at 102 Aaa 1,773,140
1,290,000 Health and Educational Facilities Authority of the State of
Missouri, Health Facilities Revenue Bonds (SSM Health
Care Obligated Group Projects), Series 1990B,
7.000%, 6/01/15 No Opt. Call Aaa 1,495,433
1,000,000 Health and Educational Facilities Authority of the State of
Missouri, Educational Facilities Revenue Bonds (Saint
Louis University), Series 1996, 5.000%, 10/01/10 10/06 at 102 Aaa 935,240
585,000 Missouri Housing Development Commission, Mortgage
Purchase Bonds, Series May 15, 1979 (FHA Insured or
VAGuaranteed Mortgage Loans), 6.600%, 11/15/10 11/96 at 101 5/16 AA+ 593,518
2,270,000 Missouri Housing Development Commission, Single
Family Mortgage Revenue Bonds, Series 1991-A (GNMA
Mortgage-Backed Securities Program), 7.375%, 8/01/23
(Alternative Minimum Tax) 2/01 at 102 AAA 2,395,213
1,835,000 Missouri Housing Development Commission, Single
Family Mortgage Revenue Bonds (Homeownership Loan
Program), 1995 Series C, 7.250%, 9/01/26 (Alternative
Minimum Tax) 3/06 at 105 AAA 1,985,323
1,000,000 Regional Convention and Sports Complex Authority,
Convention and Sports Facility Project and Refunding
Bonds, Series A 1993, (State of Missouri Sponsor),
5.500%, 8/15/13 8/03 at 102 A1 954,440
1,225,000 State Environmental Improvement and Energy Resources
Authority State of Missouri, Water Pollution Control
Revenue Bonds (State Revolving Fund Program-City of
Kansas City Project), Series 1995B, 7.750%, 1/01/08 1/05 at 102 Aa1 1,463,740
1,000,000 State Environmental Improvement and Energy Resources
Authority (State of Missouri), Water Pollution Control
Revenue Bonds (State Revolving Fund Program-City of
Branson Project), Series 1995A, 6.050%, 7/01/16 7/04 at 102 Aaa 1,013,110
1,400,000 Boone County, Missouri, Hospital Revenue Bonds, Series
1993, 5.500%, 8/01/09 8/02 at 102 A 1,367,240
1,000,000 City of Cape Girardeau, Missouri, Waterworks System
Refunding Revenue Bonds, Series 1995,
5.200%, 3/01/09 3/06 at 100 Aaa 968,850
1,000,000 Union Reorganized School District No. R-XI of Franklin
County, Missouri, General Obligation School Building
and Refunding Bonds, Series 1993, 5.750%, 3/01/13 3/03 at 100 Aaa 1,006,840
2,785,000 Greene County, Missouri, Single Family Mortgage
Revenue Bonds, Series 1984, 0.000%, 3/01/16 No Opt. Call Aaa 854,911
1,000,000 Consolidated School District No. 2 (Raytown) of Jackson
County, Missouri, General Obligation Refunding Bonds,
Series 1993, 5.250%, 3/15/11 3/03 at 102 Aaa 965,510
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,550,000 Jackson County, Missouri, Single Family Mortgage
Revenue Bonds, Series 1983, 0.000%, 3/01/15 No Opt. Call Aaa $ 502,386
1,140,000 City of Kansas City, Missouri, General Improvement
Airport Refunding Revenue Bonds, Series 1995,
6.750%, 9/01/09 9/05 at 101 Aaa 1,252,062
1,500,000 City of Kansas City, Missouri, General Improvement
Airport Revenue Bonds, Series 1994 A, 6.900%, 9/01/11
(Alternative Minimum Tax) 9/04 at 101 Aaa 1,630,035
1,000,000 Land Clearance For Redevelopment Authority of Kansas
City, Missouri, Lease Revenue Bonds (Municipal
Auditorium and Muehlebach Hotel Redevelopment
Projects), Series 1995A, 5.900%, 12/01/18 12/05 at 102 Aaa 984,710
2,000,000 School District of Kansas City, Missouri, Building
Corporation, Insured Leasehold Revenue Bonds, Series
1993 (The School District of Kansas City, Missouri,
Capital Improvements Project), 5.000%, 2/01/14 2/04 at102 Aaa 1,819,300
2,020,000 Ritenour School District of St. Louis County, Missouri,
General Obligation School Bonds, Series 1995,
7.375%, 2/01/12 No Opt. Call Aaa 2,396,387
1,500,000 Francis Howell School District, St. Charles County,
Missouri, General Obligation Refunding Bonds, Series
1994A, 7.800%, 3/01/08 No Opt. Call Aaa 1,823,955
1,400,000 School District of the City of St. Charles, Missouri,
General Obligation Bonds (Missouri Direct Deposit
Program), Series 1996A, 5.625%, 3/01/14 (WI) 3/06 at 100 Aa 1,391,936
1,500,000 Certificates of Receipt, Series 1993, St. Louis County,
Missouri, GNMA Collateralized Mortgage Revenue
Bonds, Series 1989A, 5.650%, 7/01/20 (Alternative
Minimum Tax) No Opt. Call AAA 1,480,485
1,395,000 The Board of Education of the City of St. Louis (Missouri),
General Obligation School Refunding Bonds, Series
1993A, 8.500%, 4/01/07 No Opt. Call Aaa 1,767,814
500,000 St. Louis Municipal Finance Corporation, Leasehold
Revenue Refunding Bonds, 5.850%, 7/15/09 7/03 at 102 Aa3 492,545
1,275,000 St. Louis Municipal Finance Corporation, Leasehold
Revenue Improvement and Refunding Bonds, Series
1992 (City of St. Louis, Missouri, Lessee),
6.250%, 2/15/12 2/03 at 102 Aaa 1,316,731
500,000 City of Sikeston, Missouri, Electric System Revenue
Refunding Bonds, 1996 Series, 6.000%, 6/01/16 No Opt. Call Aaa 515,645
1,000,000 The School District of Springfield R-12, Springfield,
Missouri, General Obligation Refunding Bonds,
Series A 1993, 5.250%, 3/01/11 3/03 at 100 Aaa 965,570
625,000 Reorganized School District No. R-IV of Stone County,
Missouri (Reeds Spring, Missouri), General Obligation
School Building Refunding and Improvement Bonds,
Series 1995, 7.600%, 3/01/10 No Opt. Call Aaa 752,075
1,250,000 The Industrial Development Authority of the City of
University City, Missouri, Multifamily Housing Revenue
Refunding Bonds, (GNMA Collateralized-Canterbury
Gardens Project), Series 1995A, 5.900%, 12/20/20 12/05 at 102 AAA 1,235,574
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,075,000 University Development Foundation, Power Plant
Equipment Leasehold Revenue Refunding Bonds, Series
1993 (The Curators of the University of Missouri, Lessee),
5.750%, 5/01/18 5/03 at 102 A $ 1,004,577
700,000 Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series U, 6.000%, 7/01/14 7/04 at 102 Aaa 707,077
$44,320,000 Total Investments - (cost $42,207,106) - 97.5% 42,915,772
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.1%
$ 500,000 Health and Educational Facilities Authority of the State
==========
of Missouri, Educational Facilities Adjustable Demand
Revenue Bonds, St. Louis University, Series 1985,
Variable Rate Demand Bonds, 3.750%, 12/01/05+ VMIG-1 500,000
Other Assets Less Liabilities - 1.4% 598,201
Net Assets - 100% $44,013,973
===========
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 26 $33,609,696 78%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 6 5,979,819 14
PORTFOLIO OF A+ A1 1 954,440 2
INVESTMENTS A, A- A, A2, A3 2 2,371,817 6
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 35 $42,915,772 100%
<FN>
* 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.
(WI) Security purchased on a when-issued basis (note 1).
+ The 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.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND (NPW)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 State of Washington, General Obligation Bonds, Series
1994B, 6.000%, 5/01/19 5/04 at 100 Aa $ 2,005,500
1,250,000 Washington Health Care Facilities Authority, Revenue
Bonds, Refunding Series 1992 (Franciscan Health
System/Saint Clare Hospital, Tacoma), 6.625%, 7/01/20 7/02 at 102 Aaa 1,306,288
2,000,000 Washington Health Care Facilities Authority, Revenue
Bonds, Series 1992 (The Children's Hospital and Medical
Center, Seattle), 6.125%, 10/01/13 10/02 at 102 Aaa 2,027,120
2,400,000 Washington Health Care Facilities Authority, Revenue
Bonds, Series 1992 (Swedish Hospital Medical Center,
Seattle), 6.300%, 11/15/22 11/02 at 102 Aaa 2,432,040
650,000 Washington Health Care Facilities Authority, Revenue
Bonds, Series 1993 (Empire Health Services, Spokane),
5.625%, 11/01/19 11/03 at 102 Aaa 609,057
1,000,000 Washington Health Care Facilities Authority, Revenue
Bonds, Series 1993A (The Heart Institute of Spokane),
5.800%, 8/15/18 8/04 at 102 AA- 934,330
1,000,000 Washington Public Power Supply System, Nuclear Project
No. 1 Refunding Revenue Bonds, Series 1993A,
5.700%, 7/01/17 7/03 at 102 Aaa 961,430
1,000,000 Washington Public Power Supply System, Nuclear Project
No. 3 Refunding Revenue Bonds, Series 1993B,
7.000%, 7/01/09 No Opt. Call Aa 1,090,640
980,000 Washington State Housing Finance Commission,
Multifamily Mortgage Revenue Bonds (GNMA
Mortgage Backed Securities Program), Series 1989A,
7.700%, 7/01/32 (Alternative Minimum Tax) 1/00 at 103 AAA 1,032,244
1,610,000 Washington State Housing Finance Commission,
Single-Family Mortgage Revenue Bonds (Mortgage
Backed Securities Program), Series 1992D-1,
6.150%, 1/01/26 (Alternative Minimum Tax) No Opt. Call AAA 1,588,297
1,400,000 Washington State University, Housing and Dining System
Revenue and Refunding Bonds, Series 1994,
6.375%, 10/01/18 10/04 at 101 Aaa 1,442,574
1,050,000 City of Bellevue, King County, Washington, Water and
Sewer Revenue Refunding Bonds, 1994,
5.875%, 7/01/09 7/04 at 100 Aa 1,066,800
1,000,000 Public Utility District No. 1 of Benton County,
Washington, Electric Revenue Bonds, Series B 1982,
13.500%, 11/01/02 (Pre-refunded to 11/01/97) 11/97 at 100 Aaa 1,127,470
1,895,000 Public Utility District No. 1 of Chelan County,
Washington, Columbia River-Rock Island
Hydro-Electric System Revenue Bonds, Series of 1976,
6.375%, 6/01/29 6/96 at 102 A1 1,906,749
1,035,000 Covington Water District, Water Revenue Bonds,
Refunding Series 1995, 6.050%, 3/01/20 3/05 at 100 Aaa 1,041,521
2,000,000 Housing Authority of the County of King Washington,
Housing Revenue Bonds, 1995 (Woodridge Park Project),
6.350%, 5/01/25 (Alternative Minimum Tax) 5/05 at 100 AA+ 2,006,600
1,000,000 Federal Way School District No. 210, King County,
Washington, Unlimited Tax General Obligation and
Refunding Bonds, 1993, 5.750%, 12/01/12 No Opt. Call Aaa 1,001,590
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,600,000 Public Utility District No. 1 of Klickitat County,
Washington, Electric Revenue Bonds, 1995,
5.650%, 10/01/15 10/05 at 101 Aaa $ 1,556,784
1,000,000 Public Utility District No. 1 of Lewis County,
Washington, Cowlitz Falls Hydroelectric Project,
Revenue Refunding Bonds, Series 1993,
5.500%, 10/01/09 10/03 at 102 Aa 978,220
1,000,000 Peninsula School District No. 401, Pierce County,
Washington, Unlimited Tax General Obligation
Refunding Bonds, 1993, 5.500%, 12/01/08 No Opt. Call Aaa 1,000,450
1,000,000 Port of Seattle, Washington, Revenue Bonds, Series
1990A, 6.000%, 12/01/14 12/00 at 100 AA- 986,280
1,000,000 Port of Seattle, Washington, Revenue Bonds, Series
1996A, 5.500%, 9/01/21 9/06 at 102 Aaa 942,100
1,000,000 Port of Vancouver, Clark County, Washington, Limited
Tax General Obligation Bonds, 1994 Series B,
6.000%, 12/01/04 (Alternative Minimum Tax) No Opt. Call Aaa 1,063,930
1,160,000 City of Richland, Washington, Water and Sewer
Improvement Revenue Bonds, 1993, 5.625%, 4/01/12 4/03 at 100 Aaa 1,146,741
Seattle Indian Services Commission, Special Obligation
Bonds, 1994:
1,525,000 6.000%, 11/01/16 11/04 at 100 Aa1 1,534,409
750,000 6.150%, 11/01/24 11/04 at 100 Aa1 756,563
1,500,000 The City of Seattle, Washington, Drainage and
Wastewater Utility Revenue Bonds, 1992,
5.750%, 12/01/22 12/02 at 101 Aa 1,406,250
500,000 The City of Seattle, Washington, Municipal Light and
Power Revenue Bonds, 1992A, 5.750%, 8/01/12 8/02 at 102 Aa 490,930
1,000,000 Municipality of Metropolitan Seattle (Seattle,
Washington), Sewer Refunding Revenue Bonds, Series
Z, 5.450%, 1/01/19 1/03 at 102 Aaa 930,650
500,000 The City of Seattle, Washington, Water System and
Refunding Revenue Bonds, 1993, 5.250%, 12/01/23 6/03 at 101 Aa 441,745
1,640,000 Housing Authority of Skagit County, Low-Income
Housing Assistance Revenue Bonds, 1993 (GNMA
Collateralized Mortgage Loan-Sea Mar Project),
7.000%, 6/20/35 11/04 at 104 AAA 1,746,649
1,385,000 Public Utility District No. 1 of Snohomish County,
Washington, Generation System Revenue Bonds, Series
1993B, 5.750%, 1/01/09 (Alternative Minimum Tax) 1/04 at 102 A1 1,359,419
1,500,000 Mukilteo School District No. 6, Snohomish County,
Washington, Unlimited Tax General Obligation and
Refunding Bonds, 1993, 5.700%, 12/01/12 No Opt. Call Aaa 1,499,205
500,000 Edmonds School District No. 15, Snohomish County,
Washington, Unlimited Tax General Obligation Bonds,
Series 1994, 6.500%, 12/01/08 No Opt. Call AA- 541,940
1,000,000 University of Washington, Housing and Dining System
Revenue Refunding Bonds, Junior Lien Series 1996,
5.125%, 12/01/15 12/06 at 102 Aaa 910,370
1,910,000 Housing Authority of the City of Vancouver Revenue
Bonds, 1993, Series B (Fishers Mill Project) (Junior Lien
Bonds), 6.000%, 3/01/23 3/03 at 100 Aa 1,860,205
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 Western Washington University, Housing and Dining
System, Revenue Bonds, Series 1992, 6.375%, 10/01/22 10/02 at 101 Aaa $ 1,536,810
1,000,000 Yakima-Tieton Irrigation District, Yakima County,
Washington, Refunding Revenue Bonds, 1992,
6.125%, 6/01/13 6/03 at 102 Aaa 1,023,590
$47,240,000 Total Investments - (cost $47,425,545) - 98.0% 47,293,490
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.6%
$ 300,000 Washington Health Care Facilities Authority, Variable
==========
Rate Demand Revenue Bonds (Sisters of Providence),
Series 1985E, Variable Rate Demand Bonds,
3.700%, 10/01/05+ VMIG-1 300,000
Other Assets Less Liabilities - 1.4% 672,565
Net Assets - 100% $48,266,055
===========
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALU PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 22 $27,926,910 59%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 16,100,412 34
PORTFOLIO OF A+ A1 2 3,266,168 7
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 38 $47,293,490 100%
<FN>
* 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.
+ The 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.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
NTC NMT NOM NPW
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value
(note 1) $103,056,682 $ 94,053,748 $ 42,915,772 $ 47,293,490
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 300,000 -- 500,000 300,000
Cash 19,982 846,457 47,197 53,961
Receivables:
Interest 1,976,735 1,830,685 715,508 853,144
Investments sold -- -- 1,377,504 --
Other assets 16,340 13,363 6,785 3,392
------------ ------------ ------------ ------------
Total assets 105,369,739 96,744,253 45,562,766 48,503,987
------------ ------------ ------------ ------------
LIABILITIES
Payable for investments purchased -- -- 1,369,156 --
Accrued expenses:
Management fees (note 6) 57,831 53,126 24,267 26,631
Other 63,175 73,947 29,200 65,711
Preferred share dividends payable 3,147 2,050 1,183 1,747
Common share dividends payable 317,898 312,029 124,987 143,843
------------ ------------ ------------ ------------
Total liabilities 442,051 441,152 1,548,793 237,932
------------ ------------ ------------ ------------
Net assets (note 7) $104,927,688 $ 96,303,101 $ 44,013,973 $ 48,266,055
============ ============ ============ ============
Preferred shares, at liquidation value $ 38,300,000 $ 34,000,000 $ 16,000,000 $ 17,000,000
============ ============ ============ ============
Preferred shares outstanding 1,532 1,360 640 680
============ ============ ============ ============
Common shares outstanding 5,127,384 4,588,661 2,136,537 2,320,051
============ ============ ============ ============
Net asset value per Common share outstanding (net
assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 12.99 $ 13.58 $ 13.11 $ 13.48
============ ============ ============ ============
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended May 31, 1996
<CAPTION>
NTC NMT NOM NPW
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 5,965,455 $ 5,670,600 $ 2,492,297 $ 2,817,930
----------- ----------- ----------- -----------
Expenses:
Management fees (note 6) 691,606 632,818 290,371 318,581
Preferred shares--auction fees 95,881 85,115 40,055 42,559
Preferred shares--dividend disbursing agent fees 16,695 15,020 15,021 12,740
Shareholders' servicing agent fees and expenses 17,992 2,151 7,224 3,200
Custodian's fees and expenses 41,213 41,933 37,244 35,676
Trustees' fees and expenses (note 6) 1,828 1,635 1,536 1,439
Professional fees 18,653 17,557 16,146 15,268
Shareholders' reports--printing and mailing expenses 29,394 18,218 23,715 16,064
Stock exchange listing fees 19,333 16,552 1,998 1,149
Investor relations expense 7,429 5,741 3,301 3,433
Other expenses 11,158 16,854 13,076 9,963
----------- ----------- ----------- -----------
Total expenses 951,182 853,594 449,687 460,072
----------- ----------- ----------- -----------
Net investment income 5,014,273 4,817,006 2,042,610 2,357,858
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(note 3) (521,214) (356,375) (126,266) 43,444
Net change in unrealized appreciation (depreciation)
of investments (534,565) (520,768) (499,333) (580,097)
----------- ----------- ----------- -----------
Net gain (loss) from investments (1,055,779) (877,143) (625,599) (536,653)
----------- ----------- ----------- -----------
Net increase in net assets from operations $ 3,958,494 $ 3,939,863 $ 1,417,011 $ 1,821,205
=========== =========== =========== ===========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NTC NMT
Year ended Year ended Year ended Year ended
5/31/96 5/31/95 5/31/96 5/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 5,014,273 $ 4,985,001 $ 4,817,006 $ 4,749,143
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (521,214) (1,734,762) (356,375) (1,683,784)
Net change in unrealized appreciation (depreciation)
of investments (534,565) 5,546,402 (520,768) 5,569,783
------------- ------------- ------------- -------------
Net increase in net assets from operations 3,958,494 8,796,641 3,939,863 8,635,142
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (3,758,689) (3,756,444) (3,669,476) (3,574,337)
Preferred shareholders (1,262,953) (1,174,880) (1,099,146) (1,107,248)
------------- ------------- ------------- -------------
Decrease in net assets from distributions to
shareholders (5,021,642) (4,931,324) (4,768,622) (4,681,585)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 140,264 390,670 61,212 38,944
------------- ------------- ------------- -------------
Net increase in net assets derived from capital
share transactions 140,264 390,670 61,212 38,944
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (922,884) 4,255,987 (767,547) 3,992,501
Net assets at beginning of year 105,850,572 101,594,585 97,070,648 93,078,147
------------- ------------- ------------- -------------
Net assets at end of year $ 104,927,688 $ 105,850,572 $ 96,303,101 $ 97,070,648
============= ============= ============= =============
Balance of undistributed net investment income
at end of year $ 228,874 $ 236,243 $ 295,314 $ 246,930
============= ============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NOM NPW
Year ended Year ended Year ended Year ended
5/31/96 5/31/95 5/31/96 5/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,042,610 $ 2,023,496 $ 2,357,858 $ 2,333,554
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (126,266) (780,117) 43,444 (381,623)
Net change in unrealized appreciation (depreciation)
of investments (499,333) 2,955,027 (580,097) 2,157,234
------------ ------------ ------------ ------------
Net increase in net assets from operations 1,417,011 4,198,406 1,821,205 4,109,165
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (1,440,028) (1,479,743) (1,726,118) (1,774,839)
Preferred shareholders (528,534) (549,597) (641,034) (616,848)
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (1,968,562) (2,029,340) (2,367,152) (2,391,687)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- 53,910 -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions -- 53,910 -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (551,551) 2,222,976 (545,947) 1,717,478
Net assets at beginning of year 44,565,524 42,342,548 48,812,002 47,094,524
------------ ------------ ------------ ------------
Net assets at end of year $ 44,013,973 $ 44,565,524 $ 48,266,055 $ 48,812,002
============ ============ ============ ============
Balance of undistributed net investment income
at end of year $ 131,343 $ 57,295 $ 60,836 $ 70,130
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At May 31, 1996, 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), Nuveen Missouri Premium Income Municipal Fund (NOM) and Nuveen
Washington Premium Income Municipal Fund (NPW). NTC and NMT are traded on the
New York Stock Exchange while NOM and NPW are 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
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Trustees. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
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 be settled a month or more after the transaction date. 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 their purchase
commitments. At May 31, 1996, NOM had outstanding purchase commitments of
$1,369,156. There were no such purchase commitments in the other Funds.
<PAGE>
Interest 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
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing to shareholders
all of their tax-exempt net investment income, in addition to any significant
amounts of net realized capital gains from investments and/or market discount
realized upon the sale of securities. 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 personal income taxes, if applicable, to retain
such tax-exempt status when distributed to shareholders of the Funds. All
income dividends paid during the year ended May 31, 1996, have been designated
Exempt Interest Dividends which are entirely exempt from federal and
designated state personal income taxes, if applicable.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
capital gains from investment transactions are distributed to shareholders not
less frequently than annually only to the extent they exceed available capital
loss carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of net realized gains from
investment transactions, if applicable.
<PAGE>
<TABLE>
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 may change every seven days, as set by the Auction Agent. The number of
shares outstanding at May 31, 1996, for each Fund is as follows:
<CAPTION>
NTC NMT NOM NPW
<S> <C> <C> <C> <C>
Number of shares:
Series Th 1,532 1,360 640 680
===== ===== ==== ====
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments which
prescribes disclosure requirements for 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 year ended May
31, 1996.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period.
</TABLE>
<PAGE>
<TABLE>
2. FUND SHARES
Transactions in Common shares were as follows:
<CAPTION>
NTC NMT
Year ended Year ended Year ended Year ended
5/31/96 5/31/95 5/31/96 5/31/95
<S> <C> <C> <C> <C>
Shares issued to shareholders due to reinvestment
of distributions 10,325 31,483 4,528 3,350
====== ====== ===== =====
<CAPTION>
NOM NPW
Year ended Year ended Year ended Year ended
5/31/96 5/31/95 5/31/96 5/31/95
<S> <C> <C> <C> <C>
Shares issued to shareholders due to reinvestment
of distributions -- 4,393 -- --
===== ====== ===== =====
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the year ended May 31,
1996, were as follows:
<CAPTION>
NTC NMT NOM NPW
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $16,155,976 $16,768,141 $14,886,970 $10,016,012
Temporary municipal investments 6,900,000 7,100,000 11,000,000 7,700,000
SALES AND MATURITIES
Investments in municipal securities 15,815,297 17,095,321 15,182,271 9,850,345
Temporary municipal investments 6,600,000 7,250,000 10,500,000 7,700,000
=========== =========== =========== ===========
At May 31, 1996, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for
each Fund.
At May 31, 1996, the Funds had unused capital loss carryovers available for
federal income tax purposes to be applied against future capital gains, if
any. If not applied, the carryovers will expire as follows:
<CAPTION>
NTC NMT NOM NPW
<S> <C> <C> <C> <C>
Expiration year:
2002 $ 9,146 $ -- $ -- $ --
2003 1,272,842 1,247,263 1,427,894 580,800
2004 1,105,901 945,779 708,417 70,082
---------- ---------- ---------- ----------
Total $2,387,889 $2,193,042 $2,136,311 $ 650,882
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On June 3, 1996, the Funds declared Common share dividend distributions from
their ordinary income which were paid July 1, 1996, to shareholders of record
on June 15, 1996, as follows:
<CAPTION>
NTC NMT NOM NPW
<S> <C> <C> <C> <C>
Dividend per share $.0620 $.0680 $.0585 $.0620
====== ====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 1996, were as follows:
<CAPTION>
NTC NMT NOM NPW
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $ 1,450,345 $ 1,950,691 $ 998,374 $ 458,983
Depreciation (3,229,903) (1,162,205) (289,708) (591,038)
----------- ----------- ----------- -----------
Net unrealized appreciation (depreciation) $(1,779,558) $ 788,486 $ 708,666 $ (132,055)
=========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
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 to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund.
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .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 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.
7. COMPOSITION OF NET ASSETS
At May 31, 1996, net assets consisted of:
<CAPTION>
NTC NMT NOM NPW
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $ 38,300,000 $ 34,000,000 $ 16,000,000 $ 17,000,000
Common shares, $.01 par value per share 51,274 45,887 21,365 23,201
Paid-in surplus 70,819,727 63,462,435 29,327,360 31,971,263
Balance of undistributed net investment income 228,874 295,314 131,343 60,836
Accumulated net realized gain (loss) from investment
transactions (2,692,629) (2,289,021) (2,174,761) (657,190)
Net unrealized appreciation (depreciation)
of investments (1,779,558) 788,486 708,666 (132,055)
------------- ------------- ------------- -------------
Net assets $ 104,927,688 $ 96,303,101 $ 44,013,973 $ 48,266,055
============= ============= ============= =============
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
============= ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At May 31, 1996, the revenue sources by municipal
purpose for these investments, expressed as a percent of total investments,
were as follows:
<CAPTION>
NTC NMT NOM NPW
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 10% 22% 14% 17%
Health Care Facilities 20 17 15 16
Electric Utilities 3 3 3 18
Educational Facilities 14 16 4 8
Water / Sewer Facilities 6 10 8 15
Lease Rental Facilities -- -- 12 --
Transportation 8 4 7 6
Pollution Control Facilities 7 4 -- --
Other 10 4 1 --
General Obligation Bonds 16 10 26 18
Escrowed Bonds 6 10 10 2
--- --- --- ---
100% 100% 100% 100%
=== === === ===
Certain long-term and intermediate-term investments owned by the Funds are
either covered by insurance issued by several private insurers or are backed
by an escrow or trust containing U.S. Government or U.S. Government agency
securities, both of which ensure the timely payment of principal and interest
in the event of default (57% for NTC, 32% for NMT, 65% for NOM and 50% for
NPW). Such insurance or escrow, however, does not guarantee the market value
of the municipal securities or the value of any of the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments++ shareholders shareholders+
NTC
<S> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 $13.200 $ .979 $ (.208) $(.734) $(.247)
1995 12.450 .977 .739 (.736) (.230)
1994 13.960 .768 (1.400) (.605) (.129)
5/20/93 to
5/31/93 14.050 .002 .001 -- --
<CAPTION>
NMT
<S> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 13.760 1.050 (.190) (.800) (.240)
1995 12.900 1.036 .846 (.780) (.242)
1994 14.080 .872 (1.020) (.738) (.149)
3/18/93 to
5/31/93 14.050 .054 .056 -- --
<CAPTION>
NOM
<S> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 13.370 .956 (.295) (.674) (.247)
1995 12.350 .948 1.022 (.693) (.257)
1994 13.900 .759 (1.397) (.594) (.136)
5/20/93 to
5/31/93 14.050 .001 (.001) -- --
<CAPTION>
NPW
<S> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 13.710 1.016 (.226) (.744) (.276)
1995 12.970 1.006 .765 (.765) (.266)
1994 14.090 .906 (.923) (.762) (.155)
3/18/93 to
5/31/93 14.050 .066 .088 -- --
<PAGE>
<CAPTION>
Distributions from capital gains
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholders+ discounts of period of period
NTC
<S> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 $ -- $ -- $ -- $12.990 $13.625
1995 -- -- -- 13.200 12.625
1994 -- -- (.144) 12.450 13.125
5/20/93 to
5/31/93 -- -- (.093) 13.960 15.000
<CAPTION>
NMT
<S> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 -- -- -- 13.580 13.750
1995 -- -- -- 13.760 13.375
1994 -- -- (.145) 12.900 12.500
3/18/93 to
5/31/93 -- -- (.080) 14.080 15.250
<CAPTION>
NOM
<S> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 -- -- -- 13.110 12.500
1995 -- -- -- 13.370 12.000
1994 -- -- (.182) 12.350 12.000
5/20/93 to
5/31/93 -- -- (.150) 13.900 15.125
<CAPTION>
NPW
<S> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 -- -- -- 13.480 11.750
1995 -- -- -- 13.710 11.625
1994 (.014) (.003) (.169) 12.970 12.375
3/18/93 to
5/31/93 -- -- (.114) 14.090 15.750
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
value** value** (in thousands) assets@ net assets@ rate
NTC
<S> <C> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 14.06% 3.97% $104,928 .89% 4.71% 15%
1995 2.22 12.74 105,851 .92 4.99 18
1994 (8.73) (6.74) 101,595 .95 3.95 9
5/20/93 to
5/31/93 -- (.64) 67,533 1.04* 1.17* --
<CAPTION>
NMT
<S> <C> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 8.99 4.55 96,303 .88 4.95 18
1995 14.12 13.58 97,071 .94 5.20 29
1994 (13.64) (3.38) 93,078 .97 4.26 33
3/18/93 to
5/31/93 1.67 .21 64,377 .93* 2.17* --
<CAPTION>
NOM
<S> <C> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 10.07 3.09 44,014 1.01 4.57 34
1995 6.13 14.74 44,566 1.08 4.86 34
1994 (17.26) (7.16) 42,343 1.05 3.92 39
5/20/93 to
5/31/93 .83 (1.07) 29,296 1.34* .69* --
<CAPTION>
NPW
<S> <C> <C> <C> <C> <C> <C>
Year ended 5/31,
1996 7.44 3.75 48,266 .94 4.81 20
1995 .41 12.36 48,812 1.04 5.04 16
1994 (16.88) (2.73) 47,095 1.08 4.42 29
3/18/93 to
5/31/93 5.00 .28 32,653 1.02* 2.63* --
<FN>
* Annualized.
** 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.
+ The amounts shown are based on Common share equivalents.
++ Net of taxes, if applicable.
@ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Boards of Trustees and Shareholders
Nuveen Connecticut Premium Income Municipal Fund
Nuveen Massachusetts Premium Income Municipal Fund
Nuveen Missouri Premium Income Municipal Fund
Nuveen Washington 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, Nuveen Missouri
Premium Income Municipal Fund and Nuveen Washington Premium Income Municipal
Fund as of May 31, 1996, and the related statements of operations, changes in
net assets and financial highlights for the periods then ended. 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, 1996, 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 position of
Nuveen Connecticut Premium Income Municipal Fund, Nuveen Massachusetts Premium
Income Municipal Fund, Nuveen Missouri Premium Income Municipal Fund and
Nuveen Washington Premium Income Municipal Fund at May 31, 1996, and the
results of their operations, changes in their net assets and financial
highlights for the periods then ended in conformity with generally accepted
accounting principles.
Ernst & Young LLP
Chicago, Illinois
July 12, 1996
<PAGE>
Build your wealth automatically
Photographic image of Customer Service Rep at Nuveen.
Managing your portfolio takes skill, experience, and informed judgment, but
our efforts to help you build your wealth don't stop there. At Nuveen, we
offer a number of convenient ways to add to your tax-free portfolio and earn
the tax-free income you need to achieve your financial goals.
NUVEEN EXCHANGE-TRADED FUND 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 set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also 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. All
reinvestments are invested in full and fractional shares and are kept in
non-certificated form by the Plan Agent, Chase Manhattan Bank.
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.
<PAGE>
The shares you acquire by reinvesting will either be purchased on the open
market or be 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 be invested within 30 days of 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.
You may, of course, change your distribution option or withdraw from the
Plan at any time, should your needs or situation change. Should you withdraw,
you can receive a certificate for all whole shares credited to your
reinvestment account and cash payment for fractional shares, or cash payment
for all reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You also can 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
toll-free at 1.800.257.8787.
Photographic image of Customer Service Rep at Nuveen.
"When it comes to financial planning, your investment adviser knows your
situation best. Nuveen is pleased to provide the account information you and
your adviser need to plan effectively."
Photographic image of Customer Service Rep at Nuveen.
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set
up your reinvestment account."
<PAGE>
Photographic image of Customer Service Rep at Nuveen.
"When questions come up about your investment, we're happy to provide the
up-to-date information you and your adviser need."
More than just a number
If you've ever called our toll-free customer service line, you've spoken with
one of Nuveen's customer service representatives. These reps are ready to
assist you with answers to your questions about current account balances,
yields, and previous transactions on your accounts. They can also supply
additional information about any of Nuveen's tax-free unit trusts and mutual
funds.
If you have a question about your account, or whenever you need help, just
call 800.257.8787. Our customer service reps are available Monday through
Friday from 8:00 a.m. to 8:00 p.m. Eastern time.
Photographic image of woman seated and man standing behind her representing
Nuveen investors.
<PAGE>
Your investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the ey to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF3-JULY 96
