NUVEEN
Exchange-Trade
Funds
May 31, 1999
Annual Report
Dependable, tax-free income to help you keep more of what you earn.
Highlights
As of May 31, 1999
NTC
Connecticut
NMT
Massachusetts
NOM
Missouri
NPW
Washington
Photo of: People reading
<PAGE>
Highlights
As of May 31, 1999
Credit Quality Performance Highlights
- --------------------------------------------------------------------------------
Nuveen Connecticut Premium Income Municipal Fund (NTC)
o Outperformed the one-year total return of its Lipper Peer Group
and the Lehman Brothers Municipal Bond Index *
o Has provided steady or increasing dividends for 52 consecutive
months
Pie Chart:
AAA/U.S. Guaranteed 77%
AA 15%
A 2%
BBB/NR 6%
Nuveen Massachusetts Premium Income Municipal Fund (NMT)
o Outperformed the one-year total return of its Lipper Peer Group *
o Has provided steady or increasing dividends for 67 consecutive
months
Pie Chart:
AAA/U.S. Guaranteed 62%
AA 16%
A 16%
BBB/NR 6%
Nuveen Missouri Premium Income Municipal Fund (NOM)
o Has provided steady or increasing dividends for 49 consecutive
months
o Taxable-equivalent yield of 8.40% **
Pie Chart:
AAA/U.S. Guaranteed 74%
AA 19%
A 3%
BBB/NR 4%
Nuveen Washington Premium Income Municipal Fund (NPW)
o Has provided steady or increasing dividends for 52 consecutive
months
o Taxable-equivalent yield of 8.41% **
Pie Chart:
AAA/U.S. Guaranteed 67%
AA 27%
A 3%
BBB/NR 3%
* The Lipper Peer Group return represents the average annualized returns of the
funds in the appropriate Lipper Municipal Debt category. The return assumes
reinvestment of dividends and does not reflect any applicable sales charge.
The Lehman Brothers Municipal Bond Index is an unleveraged index covering a
broad range of investment grade municipal bonds. The return for the index does
not reflect any initial or ongoing expenses.
**For investors in the combined 31% federal and applicable state income tax
bracket. See your fund's Performance Overview in this report for more
information.
Contents
1 Dear Shareholder
4 NTC's Portfolio Manager's Comments
and Performance Overview
7 NMT's Portfolio Manager's Comments
and Performance Overview
10 NOM's Portfolio Manager's Comments
and Performance Overview
13 NPW's Portfolio Manager's Comments
and Performance Overview
16 Shareholders Meeting Report
18 Report of Independent Auditors
19 Portfolio of Investments
31 Statement of Net Assets
32 Statement of Operations
33 Statement of Changes in Net Assets
34 Notes to Financial Statements
38 Financial Highlights
40 Build Your Wealth Automatically
41 Fund Information
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
Dear Shareholder
It's a pleasure to report to you on the performance of your Nuveen
Exchange-Traded Fund. This type of fund - with its exceptional history of stable
tax-free income and its competitive market yield - offers investors an ideal way
to achieve balance in their overall investment portfolio while fulfilling its
primary objective of providing stable tax-free income.
Over the period covered by this report, we have seen some shifts in U.S.
economic trends and the fixed-income market environment in which your Nuveen
fund operates. I appreciate the opportunity to discuss these changes with you.
In addition, I would like to inform shareholders of the Nuveen Washington
Premium Income Municipal Fund (NPW) about the purpose of the vote scheduled for
July 28, 1999. You should have already received a proxy detailing the proposed
merger of NPW into the Nuveen Premium Income Municipal Fund 4, Inc. (NPT). Due
to the fact that this vote will have occurred after the printing of this report,
I cannot comment on its outcome, but I would like to address why the vote took
place.
If approved, we expect the proposed merger to have four benefits for
share-holders: 1) a reduction in management fees per share, 2) lower
administrative expenses, 3) an increased efficiency and flexibility in portfolio
manage-ment, and 4) a more liquid trading market for common shares of the
combined Fund. Given the relative sizes of the Funds, NPW would significantly
benefit from the reorganization. The larger combined Fund would have a
significantly larger asset base than NPW currently has. Based on data presented
by management of the Funds, the Board believes that administrative expenses of a
larger combined Fund comprised of the assets of both Funds would be less than
the aggregate expenses of NPW, resulting in a lower expense ratio for the
combined Fund and corresponding higher earnings for its common shareholders.
If approved, the reorganization is expected to take effect on August 12, 1999.
A CHALLENGING INVESTMENT ENVIRONMENT
Over the past 12 months, the U.S. economy has continued to be characterized by
robust growth, generally low interest rates, and unemployment levels that remain
among the lowest in three decades. However, concerns about the continued
persistent pace of the economy's expansion have tested the new paradigm that
says improvements in productivity enable us to have both economic growth and low
inflation at the same time. With investors and the various markets watching -
and reacting to - every announcement concerning economic statistics, volatility
has increased, especially in the equity markets.
<PAGE>
While most current indicators continue pointing to a relatively strong economy,
we have entered a different environment from what we saw 12 months ago. It is a
more uncertain environment, where confidence in a continued positive economic
outlook is less assured. This shift has occurred primarily in response to two
factors: First, the Asian financial crisis of 1998 did not produce the slowdown
that was widely expected to keep economic growth from becoming too robust.
Second, evidence of accelerating prices, most obvious in the sudden spike in
April's Consumer Price Index, contributed to the reemergence of the spectre of
inflation, accompanied by the likelihood of higher interest rates. In fact, the
Fed raised interest rates by 0.25% on June 30, 1999 to combat the threat of
inflation. This adjustment to the federal funds rate, which is the rate that
banks charge each other on overnight loans, is a stark contrast to the three
reductions to interest rates made last fall. The fed funds rate now stands at
5%, as of this report.
MUNICIPAL BOND PERFORMANCE
Over the past year, our exchange-traded municipal bond funds continued to offer
attractive, stable income in a market that places a high premium on yield. At
the end of May 1999, the ratio between long-term municipal yields and 30-year
Treasury yields stood at 93%, compared with the historical average of 86%
between 1986-1999. For investors, this meant that quality long-term municipal
bonds offered yields comparable to those of long Treasury bonds - even before
the tax advantages of municipal bonds were taken into account. On an after-tax
basis, municipal bonds continued to present an exceptionally attractive
investment option relative to Treasuries.
In the coming months, we expect to see a healthy supply of new municipal bonds,
although total volume is expected to drop from the near-record levels of 1998.
This is due to the dramatic decrease in the refunding of existing bonds in the
wake of higher interest rates. To date, municipal supply has declined by
approximately 25% from the levels of a year ago. This, in turn, has enhanced the
attractiveness of the municipal bonds that are brought to market, as demand -
especially from individual investors - remains strong. We anticipate that this
demand will continue to strengthen as investors increasingly look at rebalancing
their portfolios. With the outlook for tighter supply and continued demand in
the months ahead, Nuveen's established market position as the leading sponsor of
exchange-traded municipal bond funds ensures that we will have exceptional
access to the bond offerings that have the potential to add value for our
shareholders.
A BALANCING ACT
Volatility and uncertain markets highlight the importance of maintaining balance
in your investment portfolio. With a properly balanced portfolio of equities,
bonds, and cash, your assets will be better positioned to weather the markets'
ups and downs. A balanced portfolio can also help you increase your
opportunities for capital growth while reducing risk. Your Nuveen
Exchange-Traded Fund, with its holdings of quality tax-free municipal bonds,
makes an excellent counterpart to your equity holdings and provides diversity in
your quest to achieving a balanced portfolio.
Volatility and uncertain
markets highlight the importance
of maintaining
balance in
your investment
portfolio."
<PAGE>
Like most investors in the marketplace today, your goal is to capture the
highest returns possible while minimizing risk. According to Nuveen research,
balanced portfolios that combine equities with municipal bonds are the most
successful in achieving that goal, providing both superior after-tax total
returns and lower levels of risk. Over the past 20 years, portfolios containing
both equities and municipal bonds produced better results with lower volatility
than similar blends of equities with either Treasury or corporate bonds.
Incorporating even a 20% allocation of municipal bonds into an all-equity
portfolio cuts risk substan-tially, with only a small reduction in return.
Purchasing shares of a Nuveen Exchange-Traded Fund provides an easy way to
incorporate the benefits of municipal bonds into a balanced portfolio.
NUVEEN FUNDS:
AN ANSWER TO YOUR INVESTMENT NEEDS
In light of the recent shifts in the economic environment, you may want to
discuss your current asset allocation with your financial adviser to determine
if adjustments are needed in your portfolio. As part of this process, your
financial adviser can set up a reinvestment plan designed to purchase additional
shares of your Nuveen Exchange-Traded Fund. Additionally, your financial adviser
can also help you invest in Nuveen Defined Portfolios to give you the proper
equity exposure needed to potentially enhance your opportunities for success. A
Nuveen Defined Portfolio is a fixed portfolio of securities designed to
accomplish a specific investment objective. Unlike a mutual fund which is
actively managed, the stocks or bonds in a defined portfolio do not change over
the life of the investment.
Nuveen's Defined Portfolios provide the benefits of an individual equity
security enhanced by diversification and professional selection. These
specialized equity portfolios concentrate on specific sectors of the market and
invest in stocks we consider to have the best potential for capital appreciation
within each sector. Whether the objective for your equity investment is growth,
aggressive growth, or growth and income, you'll find a Nuveen Defined Portfolio
designed to meet your needs. Our defined portfolios provide an excellent
complement to your Nuveen Exchange-Traded Fund in structuring a balanced
portfolio designed to build and sustain long-term financial security. For more
information on any of the Nuveen funds, contact your adviser for a prospectus,
or call Nuveen at (800) 621-7227. Please read the prospectus carefully before
you invest or send money.
Since 1898, Nuveen has been synonymous with investments that stand the test
of time. As we look ahead to a new millennium, we are committed to maintaining
that reputation and finding the best ways to serve your evolving investment
needs. Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
July 15, 1999
Volatility and uncertain
markets highlight the importance
of maintaining
balance in
your investment
portfolio."
<PAGE>
Nuveen Connecticut Premium Income Municipal Fund (NTC)
Portfolio Manager's Comments
Portfolio manager Rick Huber reviews the Connecticut municipal market, recent
fund performance, and the outlook for the Nuveen Connecticut Premium Income
Municipal Fund. Rick, who joined Nuveen in 1997 as part of the Nuveen-Flagship
merger, has worked in the industry since 1985. In addition to NTC, he also
manages a range of national and state specific Nuveen funds. He assumed
portfolio management responsibility for NTC in early 1999.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE CONNECTICUT MUNICIPAL MARKET
DURING THE PAST 12 MONTHS?
Although it continues to lag the nation in job growth, Connecticut's economy has
performed relatively well in recent months, helping to narrow the gap with the
national economy. The state has now reclaimed more than 80% of the jobs it lost
in the recession of the early 1990s. Once heavily reliant on the insurance,
defense manufacturing, finance, and real estate industries, Connecticut has
become more diversified, as it benefits from employment growth in the business
and personal services sector, healthcare, legal services, private education, and
gaming. In May 1999, unemployment figures for the state remained unchanged from
a year earlier at 3.4%, compared with 4.2% on the national level.
Since 1995, the state has experienced slow, steady population growth, although
population figures remain below those of the pre-recession 1980s. Connecticut
continues to rank first among the states in per capita personal income, with an
income growth rate that outpaced the national average for the third consecutive
year.
A notable event in the municipal market over the past year was Standard & Poor's
upgrade of Connecticut's general obligation debt rating to AA from AA-. S&P
cited the state's strengthened financial position, conservative budget and
financial practices, and steady economic growth. Moody's and Fitch have
maintained their ratings of Aa3 and AA, respectively.
For the 12 months ended May 31, 1999, municipal issuance in the state was down
from that of the previous year, continuing the tight supply situation in
Connecticut bonds and reflecting the national trend toward lower levels of
municipal issuance. Demand for municipal bonds in the state has been very high
relative to the supply.
HOW DID THE NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND (NTC) PERFORM IN
THIS ENVIRONMENT?
For the 12 months ended May 31, 1999, NTC produced a total return on net asset
value (NAV) of 5.22%, providing a taxable-equivalent total return(1) of 8.13%
for shareholders in the combined 34% federal and state income tax bracket. The
Fund's total return outperformed both the annual total return of 4.67% for NTC's
benchmark, the Lehman Brothers Municipal Bond Index(2), and the 4.33% average
total return for the Fund's Lipper peer group(3). The Lipper result placed the
Fund first among the peer group's 18 funds. This performance reflects the Fund's
excellent structure in terms of duration, maturity, and call features.
Over the past year, active demand for NTC - bolstered by the Fund's competitive
yield and outstanding dividend record - resulted in solid share price
performance. NTC's one-year total return on share price, as of May 31, 1999, was
13.50%, providing a taxable-equivalent total return of 16.22% for investors in
the combined federal and state income tax bracket of 34%. At the same time,
however, the Fund's NAV was lower than it was a year ago due to the prevailing
economic environment of relatively higher interest rates compared to May 1998.
As a result of these factors, NTC saw its premium (share price over NAV) widen
by almost 9% over the past 12 months.
HOW WAS THE FUND'S DIVIDEND AFFECTED?
Good call protection helped support the dividend of NTC and shield the income of
this fund from erosion. In addition, excellent dividend management strategies
over this period, including the prudent use of leverage, enabled us to increase
the dividend effective May 1999, enhancing the competitiveness of the Fund's
market yield.
<PAGE>
As a leveraged fund, NTC issues preferred shares that pay short-term rates to
investors seeking short-term liquidity. The proceeds from the preferred shares
are used to buy additional long-term bonds for the Fund's portfolio. When
short-term interest rates remain below long-term interest rates, common
shareholders have the potential to earn extra income from the difference between
the rate earned on the Fund's long-term portfolio and the short-term rate paid
to preferred shareholders.
Not only did NTC have a dividend increase in May, but the Fund had also provided
shareholders with stable or increasing dividends for 52 consecutive months. As
of May 31, 1999, the market yield for the Fund was 4.87%, equivalent to a
taxable yield(4) of 7.38% for investors in the combined 34% federal and state
income tax bracket.
WHAT KEY STRATEGIES WERE USED TO MANAGE NTC DURING THE PAST 12 MONTHS?
NTC is a fund that has been well structured for the long term. The focus of our
management strategies over the past year was on maintaining the income level of
the Fund. To that end, we carried out relatively little trading, as the majority
of the bonds in this portfolio were purchased during prior periods of higher
interest rates. As a result, these bonds carry high embedded yields. If we had
attempted to trade these bonds, we would have faced replacing them with the
lower-yielding issues currently available in the marketplace. This, in turn,
could have negatively affected the monthly dividend.
Overall, the Fund continues to offer excellent credit quality. At the end of May
1999, NTC had 92% of its portfolio invested in bonds rated AAA and AA, with a 6%
allocation of BBB and non-rated bonds, which generally provide higher yields. A
number of pre-refundings of BBB/non-rated bonds in 1998 served to decrease the
Fund's investment in that sector by half, while further increasing its AAA
allocation. In the area of bond calls, the Fund currently provides good levels
of call protection, with only 14% of its portfolio subject to calls prior to
2003. This should offer some protection for the Fund's dividend over this
period. To minimize the impact of any future calls, we are already at work on
strategies for managing through this period.
WHAT IS NUVEEN'S OUTLOOK FOR NTC?
Looking ahead for NTC, our focus will remain on supporting the income stream of
this fund at the highest level consistent with capital preservation. As part of
our strategies for achieving this goal, we will continue searching for
investments that capture incremental yield. We plan to keep the Fund's duration
neutral to provide protection against interest rate volatility. As opportunities
arise and credit risk allows, we will also consider investing in additional
lower-rated investment-grade securities, again with the goal of adding yield.
Connecticut is known for its education bonds, especially for universities and
private colleges, and we will continue monitoring the market for unique issues
that can enhance the Fund's holdings. These strategies demonstrate the value
that can be added by an active bond manager such as Nuveen. As an experienced
investment manager knowledgeable about the unique aspects of the Connecticut
municipal market, we are in the marketplace every day, monitoring market
dynamics, looking for opportunities, and capitalizing on them to the benefit of
shareholders.
1 Taxable-equivalent total return is based on the annualized total return and
a 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.
2 NTC is compared with the Lehman Brothers Municipal Bond Index, an
unleveraged index comprising a broad range of investment-grade municipal
bonds. The return for the Lehman index does not reflect any initial or
ongoing expenses.
3 The Lipper Peer Group return represents the average annualized total return
of the 18 funds in the Lipper Other States Municipal Debt category. The
return assumes reinvestment of dividends and does not reflect any
applicable sales charges.
4 Taxable-equivalent yield repre-sents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
rate is based on a combined federal and state income tax rate of 34%.
<PAGE>
Nuveen Connecticut Premium Income Municipal Fund
Performance Overview
As of May 31, 1999
NTC
Portfolio Statistics
- --------------------------------------------------
Inception Date 5/93
Share Price $16 3/4
Net Asset Value $14.44
Market Yield 4.87%
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 7.06%
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 7.38%
Fund Net Assets ($000) $113,465
Effective Maturity (Years) 17.89
Leverage-Adjusted Duration 10.01
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
1-Year 13.50% 5.22%
5-Year 10.87% 8.99%
Since Inception 7.34% 6.09%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 16.22% 8.13%
5-Year 13.81% 12.02%
Since Inception 10.13% 8.98%
- --------------------------------------------------
Top Five Sectors (as of % of total investments)
Healthcare 24%
Education and Civic Organizations 15%
U.S. Guaranteed 12%
Tax Obligation/General 9%
Utilities 8%
- --------------------------------------------------
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. The
federal only rate is based on 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
a 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.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
6/98 0.0665
7/98 0.0665
8/98 0.0665
9/98 0.0665
10/98 0.0665
11/98 0.0665
12/98 0.0665
1/99 0.0665
2/99 0.0665
3/99 0.0665
4/99 0.0665
5/99 0.068
Share Price Performance
6/5/98 15.875
16.125
16.125
15.688
15.938
16.313
15.625
15.875
15.875
15.813
15.875
16
15.875
15.938
15.813
15.938
16.063
16.875
16.875
16.75
16.5
16.63
16.69
16.38
16.31
16.44
16.5
16.5
16.44
16.06
15.56
15.56
15.69
16.06
16.19
16.25
16.13
16.38
16.5
16.44
16.63
16.5
16.56
16.81
16.75
16.81
16.69
16.75
5/31/99 16.75
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Massachusetts Premium Income Municipal Fund (NMT)
Portfolio Manager's Comments
Portfolio manager Tom Futrell describes the Massachusetts municipal market, fund
performance, and management strategies for the Nuveen Massachusetts Premium
Income Municipal Fund. A 16-year veteran of Nuveen, Tom assumed portfolio
management responsibility for NMT in July 1998.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE MASSACHUSETTS MUNICIPAL
MARKET DURING THE PAST 12 MONTHS?
The economy of Massachusetts has fully recovered from the recession of the early
1990s and continues to grow at a healthy pace. Unemployment figures show a
tightening labor market in the common-wealth, with a rate of 3.2% in May 1999.
This is down from the 3.5% posted in May 1998 and well below the current
national average of 4.2%. Continued job losses in the manufacturing sector are
being offset by gains in the services and construction sectors. The growth in
construction jobs is being largely driven by major public works projects in
Boston, such as the Central Artery project and the $3.7 billion Boston Harbor
clean-up, which is nearing completion. The harbor project, which was started in
1988 to bring the city into EPA compliance, involved building a waste water
treatment facility on Deer Island to serve 43 communities in the Boston
metropolitan area. This facility, the second largest in the U.S., is now the
world's most technologically advanced water treatment plant. In terms of
personal wealth, Massachusetts ranks third in the nation, with per capita income
levels well above the national average. The growth rate for per capita income
also continues to outpace national figures.
For the 12 months ended May 1999, issuance of Massachusetts bonds totaled $9.7
billion, down 8% from the previous 12-month period. Over the past six months
(December 1998-May 1999), the decline in the commonwealth's issuance, in keeping
with national trends, was even more evident, falling 14% from June-November 1998
levels. Demand for Massachusetts bonds has remained relatively strong, enhanced
by the attractive yields currently available in the commonwealth's municipal
market.
HOW DID THE NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND (NMT) PERFORM IN
THIS ENVIRONMENT?
For the 12 months ended May 31, 1999, NMT produced a total return on net
asset value (NAV) of 4.47%, providing a taxable-equivalent total return(1) of
7.61% for shareholders 35% federal and state income tax bracket. The Fund's
total return outperformed the 4.33% average total return for the Fund's Lipper
peer group(2), while falling short of the annual total return of 4.67% for NMT's
benchmark, the Lehman Brothers Municipal Bond Index(3).
Over the past year, NMT saw its share price and NAV fall from a year ago due to
the prevailing economic environment of relatively higher interest rates compared
to May 1998. As a result of these factors, NMT's premium (share price over NAV)
narrowed by approximately 1.5% over the past 12 months. As of May 31, 1999, NMT
was trading at a premium of 9.12%, and the Fund's total return on share price
was 2.48%, providing a taxable-equivalent total return of 5.31% for investors in
the combined federal and state income tax bracket of 35%.
HOW WAS THE FUND'S DIVIDEND AFFECTED?
Good call protection and the prudent use of leverage helped support the dividend
of NMT and shield the income of this fund from erosion. As a leveraged fund, NMT
issues preferred shares that pay short-term rates to investors seeking
short-term liquidity. The proceeds from the preferred shares are used to buy
additional long-term bonds for the Fund's portfolio. When short-term interest
rates remain below long-term interest rates, common shareholders have the
potential to earn extra income from the difference between the rate earned on
the Fund's long-term portfolio and the short-term rate paid to preferred
shareholders.
As of the end of May 1999, NMT had provided shareholders with steady or
increasing dividends for 67 consecutive months. On May 31, 1999, the market
yield for the Fund was a competitive 5.27%, equivalent to a taxable yield(4) of
8.11% for investors in the combined 35% federal and state income tax bracket.
WHAT KEY STRATEGIES WERE USED TO MANAGE NMT DURING THE PAST 12 MONTHS?
The focus of our management strategies for the Fund over the past year was on
purchasing bonds that captured substantial incremental yield and enhanced the
structure of the portfolio. An example of these purchases involved industrial
development bonds issued to finance pollution control facilities, such as the
Massachusetts Industrial Finance Agency resource recovery bonds for the Ogden
Haverhill project. These BBB rated bonds offered an incremental yield of 45
basis points over high-grade market levels. In addition, because these bonds
mature in 20 years rather than 30, we were able to increase the yield with
minimal interest rate risk.
Overall, the Fund continues to offer excellent credit quality. At the end of May
1999, NMT had 78% of its portfolio invested in bonds rated AAA and AA, with a 6%
allocation of BBB and non-rated bonds, which generally provide a higher level of
yield. In the area of bond calls, the Fund currently offers good levels of call
protection, with only 11% of its portfolio subject to calls prior to 2002. This
should provide some protection for the Fund's dividend over this period. To
minimize the impact of future calls, we are already at work on strategies for
managing through this period.
WHAT IS NUVEEN'S OUTLOOK FOR NMT?
In the coming months, our focus will remain on supporting the income stream of
this fund at the highest level consistent with capital preservation. As part of
our strategies for achieving this goal, we will continue searching for
attractive bonds that have the best potential to benefit the shareholders of
NMT. In July, a small segment of hospital bonds is scheduled to be called from
the portfolio. We plan to actively manage through that call by reinvesting the
proceeds in ways that further enhance the structure of the portfolio. These
strategies demonstrate the value that can be added by an active bond manager
such as Nuveen. As an experienced investment manager knowledgeable about the
unique aspects of the Massachusetts municipal market, we are in the marketplace
every day, monitoring market dynamics, looking for opportunities, and
capitalizing on them to the benefit of shareholders.
1 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.
2 The Lipper Peer Group return represents the average annualized total return
of the 18 funds in the Lipper Other States Municipal Debt category. The
return assumes reinvestment of dividends and does not reflect any
applicable sales charges.
3 NMT is compared with the Lehman Brothers Municipal Bond Index, an
unleveraged index comprising a broad range of investment-grade municipal
bonds. The return for the Lehman index does not reflect any initial or
ongoing expenses.
4 Taxable-equivalent yield repre-sents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
rate is based on a combined federal and state income tax rate of 35%.
<PAGE>
Nuveen Massachusetts Premium Income Municipal Fund
Performance Overview
As of May 31, 1999
NMT
Portfolio Statistics
- --------------------------------------------------
Inception Date 3/93
Share Price $16 1/16
Net Asset Value $14.72
Market Yield 5.27%
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 7.64%
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 8.11%
Fund Net Assets ($000) $102,288
Effective Maturity (Years) 17.19
Leverage-Adjusted Duration 9.47
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 2.48% 4.47%
5-Year 11.33% 8.88%
Since Inception 6.78% 6.55%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 5.31% 7.61%
5-Year 14.55% 12.16%
Since Inception 9.80% 9.65%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 21%
Education and Civic Organizations 20%
Healthcare 18%
Housing/Multifamily 13%
Tax Obligation/General 8%
- --------------------------------------------------
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. The
federal only rate is based on 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.
3 The fund also paid shareholders net ordinary income distributions in
December of $0.0051 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
6/98 0.0705
7/98 0.0705
8/98 0.0705
9/98 0.0705
10/98 0.0705
11/98 0.0705
12/98 0.0705
1/99 0.0705
2/99 0.0705
3/99 0.0705
4/99 0.0705
5/99 0.0705
Line Chart:
Share Price Performance
6/5/98 16.375
16.375
16.625
16.25
16.875
16.688
16.625
16.313
16.375
16.5
16.375
16.563
16.688
16.75
16.438
16.563
16.75
17.5
16.875
16.75
16.75
16.69
16.88
16.56
16.44
16.69
16.75
16.75
16.81
16.44
16.25
16
16
16.63
16.81
16.88
16.81
17
16.94
16.94
16.94
16.94
16.75
16.75
16.5
16.38
16.06
15.94
5/31/99 16.06
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Missouri Premium Income Municipal Fund (NOM)
Portfolio Manager's Comments
Portfolio manager Mike Davern discusses the Missouri municipal market, recent
fund performance, and key strategies for the Nuveen Missouri Premium Income
Municipal Fund. Mike, who has been with Nuveen since 1991, assumed portfolio
management responsibility for NOM in July 1998.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE MISSOURI MUNICIPAL MARKET
DURING THE PAST 12 MONTHS?
The Missouri economy continues to see strong growth in the wholesale and retail
trade sector (Walmart stores, for example). This sector accounts for
approximately 24% of employment in the state. This represents an increase of 11%
over the past decade. Other major employers in the state include the services
sector, with 30% of the workforce; the government, at 16%; and manufacturing,
with 15%. While manufacturing jobs have declined somewhat from previous years,
they remain an important factor in the state's economy, with Boeing and several
automakers providing the majority of jobs in this sector. As of May 1999,
unemployment in the state totaled 3.5%, down from 4.5% in May 1998, and below
the national average of 4.2%. Since 1990, population growth in Missouri has been
fairly stable.
Missouri's financial picture is very strong, and its conservative approach to
fiscal management is reflected in the state's rating of AAA/Aaa/AAA by the three
major rating agencies. For the 12 months ended May 31, 1999, issuance in the
Missouri municipal market countered the national trend toward a decline in new
issuance and remained relatively flat compared to the prior 12-month period.
Overall, however, Missouri ranks among the smaller states in terms of municipal
issuance, and supply remains tight. Given this scenario, demand for Missouri
paper is very strong, especially from individual investors.
HOW DID THE NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND (NOM) PERFORM IN THIS
ENVIRONMENT?
For the 12 months ended May 31, 1999, NOM produced a total return on net
asset value (NAV) of 3.64%, providing a taxable-equivalent total return(1) of
6.52% for shareholders in the combined 35% federal and state income tax bracket.
The Fund's total return trailed both the 4.33% average total return for the
Fund's Lipper peer group(2), and the annual total return of 4.67% for NOM's
benchmark, the Lehman Brothers Municipal Bond Index(3).
The major factor in the Fund's performance over the past 12 months was the tight
supply of Missouri bonds, which limited trading opportunities for the Fund. As
mentioned earlier, Missouri's new issuance is among the lowest in the nation,
making it a challenge to actively buy and sell the bonds needed to implement new
strategies designed to add value. This was especially true over the past year,
when we found few attractive bonds that offered the structure we favor for our
exchange-traded funds.
Over the past year, NOM's share price remained unchanged, while the Fund's NAV
was lower than it was a year ago due to the prevailing economic environment of
relatively higher interest rates. As a result of these factors, NOM saw its
discount (share price under NAV) narrow by more than 1.6% over the past 12
months. As of May 31, 1999, NOM was trading at a discount of 0.09%, and the
Fund's total return on share price was 5.24%, providing a taxable-equivalent
total return of 8.18% for investors in the combined federal and state income tax
bracket of 35%.
HOW WAS THE FUND'S DIVIDEND AFFECTED?
Good call protection helped support the dividend of NOM and shield the income of
this fund from erosion. In addition, excellent dividend manage-ment strategies
over this period, including the prudent use of leverage, enabled us to make two
increases to the Fund's dividend over the past 12 months, effective in August
1998 and May 1999. As a leveraged fund, NOM issues preferred shares that pay
short-term rates to investors seeking short-term liquidity. The proceeds from
the preferred shares are used to buy additional long-term bonds for the Fund's
portfolio. When short-term interest rates remain below long-term interest rates,
common shareholders have the potential to earn extra income from the difference
between the rate earned on the Fund's long-term portfolio and the short-term
rate paid to preferred shareholders.
As of the end of May 1999, NOM had provided shareholders with steady or
increasing income for 49 consecutive months. The market yield for the Fund was a
competitive 5.46%, equivalent to a taxable yield(4) of 8.40% for investors in
the combined 35% federal and state income tax bracket.
WHAT KEY STRATEGIES WERE USED TO MANAGE NOM DURING THE PAST 12 MONTHS?
NOM is an income-oriented fund and, over the past year, the focus of our
management strategies was on supporting and enhancing the dividend. As part of
these strategies, we made the decision to hold bonds purchased during prior
periods of higher interest rates. If we had sold these bonds in an effort to
capture slightly higher total returns, we would have been faced with replacing
the sold bonds with the lower-yielding issues currently available in the
marketplace. This, in turn, would have negatively affected the monthly dividend.
Despite the tight supply in the Missouri municipal market, we were able to make
a few purchases that have the potential to enhance the Fund's performance and
benefit shareholders. One of these involved the purchase of $1 million of
Missouri State Development Finance Board bonds, which are being used to finance
a solid waste disposal project for Procter & Gamble. This illustrates Nuveen's
ability to find good quality bonds offering above-market yields, even in a
less-than-favorable supply environment.
Overall, the Fund continues to offer excellent credit quality. At the end of May
1999, NOM had 93% of its portfolio invested in bonds rated AAA and AA, with a 4%
allocation of BBB and non-rated bonds, which generally provide higher levels of
yield. In the area of bond calls, the Fund currently offers good levels of call
protection, with less than 7% of its portfolio subject to calls prior to 2004.
This should provide some protection for the Fund's dividend over this period. To
minimize the impact of future calls, we are already at work on strategies for
managing through this period.
WHAT IS NUVEEN'S OUTLOOK FOR NOM?
Looking ahead for NOM, our focus will remain on supporting the Fund's income
stream as the major component of its total return. With the increase in market
opportunities in recent months due to rising interest rates, we are continuing
to search for opportunities to capture incremental yield. Given current market
conditions, we plan to remain conservative in our approach to duration,
maturity, and interest rate risk. These decisions demonstrate the value that can
be added by an active bond manager such as Nuveen. As an experienced investment
manager knowledgeable about the unique aspects of the Missouri municipal market,
we are in the marketplace every day, monitoring market dynamics and looking for
opportunities that will benefit our shareholders. Although municipal supply has
declined over the past 12 months, we have confidence in our ability to find
attractive values in the market, when they arise.
1 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.
2 The Lipper Peer Group return represents the average annualized total return
of the 18 funds in the Lipper Other States Municipal Debt category. The
return assumes reinvestment of dividends and does not reflect any
applicable sales charges.
3 NOM is compared with the Lehman Brothers Municipal Bond Index, an
unleveraged index comprising a broad range of investment-grade municipal
bonds. The return for the Lehman index does not reflect any initial or
ongoing expenses.
4 Taxable-equivalent yield repre-sents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
rate is based on a combined federal and state income tax rate of 35%.
<PAGE>
Nuveen Missouri Premium Income Municipal Fund
Performance Overview
As of May 31, 1999
NOM
Portfolio Statistics
- --------------------------------------------------
Inception Date 5/93
Share Price $14 3/16
Net Asset Value $14.20
Market Yield 5.46%
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 7.91%
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 8.40%
Fund Net Assets ($000) $46,603
Effective Maturity (Years) 17.34
Leverage-Adjusted Duration 10.83
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 5.24% 3.64%
5-Year 9.22% 8.46%
Since Inception 4.45% 5.51%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 8.18% 6.52%
5-Year 12.34% 11.43%
Since Inception 7.39% 8.35%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 17%
Tax Obligation/Limited 15%
Housing/Multifamily 14%
U.S. Guaranteed 11%
Water and Sewer 11%
- --------------------------------------------------
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. The
federal only rate is based on 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.
3 The fund also paid shareholders net ordinary income distributions in
December of $0.0095 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
6/98 0.062
7/98 0.062
8/98 0.063
9/98 0.063
10/98 0.063
11/98 0.063
12/98 0.063
1/99 0.063
2/99 0.063
3/99 0.063
4/99 0.063
5/99 0.0645
Line Chart:
Share Price Performance
6/5/98 14.75
14.25
14.375
14.25
14.5
14.25
14.75
14.75
14.688
16.625
14.75
14.75
14.625
14.688
15
15
15.063
15.125
15.25
15.375
15.13
15.06
15.5
15.19
15.38
15.38
15.13
15.31
15.56
15.31
15
14.88
14.5
15.06
14.94
15.13
15.06
15.25
15
15.13
15.13
15.375
15.5
15.38
15.13
14.81
14.88
14.38
5/31/99 14.19
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Washington Premium Income Municipal Fund (NPW)
Portfolio Manager's Comments
Portfolio manager Mike Davern talks about the Washington municipal market, fund
performance, and the outlook for the Nuveen Washington Premium Income Municipal
Fund. An eight-year veteran of Nuveen, Mike assumed portfolio management
responsibility for NPW in July 1998.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE WASHINGTON STATE MUNICIPAL
MARKET DURING THE PAST 12 MONTHS?
Washington's economy continues to diversify away from heavy reliance on the
manufacturing sector, with substantial growth in the services, high-tech,
construction, and retail trade sectors. This has helped to compensate the state
for the loss of manufacturing jobs, where Boeing provides the primary example.
Thirty years ago, Boeing, the Seattle-based leader in aerospace technology,
accounted for 10% of the jobs in Washington state; today, that number has fallen
to 4%, still a significant amount of the workforce. Washington's export
industry, which declined slightly in the aftermath of the Asian financial crisis
of 1998, has recovered somewhat in recent months, as the crisis failed to have
the far-reaching impact originally expected. As of May 1999, the state's
unemployment level was 4.7%, slightly above the national average of 4.2%.
The state's economy remains strong, as evidenced by ratings of Aa1/AA+/AA+ from
the three major rating agencies. For the 12 months ended May 1999, municipal
issuance in the state declined 8% from the levels of the previous year, in line
with the national trend toward lower issuance. Demand for Washington state
municipal issues remains strong, as the tax situation in the state (i.e., the
lack of a state income tax) means that these bonds are attractively priced for
use in other specialty state municipal bond portfolios, especially those with
high state income tax rates.
HOW DID THE NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND (NPW) PERFORM IN
THIS ENVIRONMENT?
For the 12 months ended May 31, 1999, NPW produced a total return on net
asset value (NAV) of 3.97%, providing a taxable-equivalent total return(1) of
6.34% for shareholders in the 31% federal income tax bracket. The Fund's total
return trailed both the 4.33% average total return for the Fund's Lipper peer
group(2) and the annual total return of 4.67% for NPW's benchmark, the Lehman
Brothers Municipal Bond Index(3).
Over the past year, NPW's share price declined, and the fund's NAV was lower
than it was a year ago. This is due to the prevailing economic environment of
relatively higher interest rates compared to May 1998. As a result of these
factors, NPW saw its discount (share price under NAV) widen slightly over the
past 12 months. As of May 31, 1999, NPW was trading at a discount of 9.69%, and
the Fund's total return on share price was 4.10%, providing a taxable-equivalent
total return of 6.72% for investors in the 31% federal income tax bracket.
HOW WAS THE FUND'S DIVIDEND AFFECTED?
Good call protection helped support the dividend of NPW and shield the income of
this fund from erosion. In addition, excellent dividend manage-ment strategies
over this period, including the prudent use of leverage, enabled us to increase
the dividend in August 1998, enhancing the competitiveness of the Fund's market
yield. As a leveraged fund, NPW issues preferred shares that pay short-term
rates to investors seeking short-term liquidity. The proceeds from the preferred
shares are used to buy additional long-term bonds for the Fund's portfolio. When
short-term interest rates remain below long-term interest rates, common
shareholders have the potential to earn extra income from the difference between
the rate earned on the Fund's long-term portfolio and the short-term rate paid
to preferred shareholders.
As of the end of May 1999, NPW had provided shareholders with steady or
increasing income for 52 consecutive months. The market yield for the Fund was a
competitive 5.80%, equivalent to a taxable yield(4) of 8.41% for investors in
the 31% federal income tax bracket.
WHAT KEY STRATEGIES WERE USED TO MANAGE NPW DURING THE PAST 12 MONTHS?
Over the past year, our management strategies focused on maintaining and
enhancing the income level of the Fund. As part of these strategies, we made the
decision to hold bonds purchased during prior periods of higher interest rates.
If we had sold these bonds in an effort to capture slightly higher total
returns, we would have faced replacing the sold bonds with lower-yielding issues
currently available in the marketplace. This, in turn, would have negatively
affected the monthly dividend.
Providing stable tax-free income is NPW's main goal. In a market where municipal
supply is down, like our current period, finding municipal issues that can add
value can be challenging. However, by working in tandem with Nuveen's research
department, we were able to add a bond to NPW's portfolio that we feel has the
potential to provide incremental yield to the Fund. This issue was very
research-intensive in terms of structure and credit quality and serves as an
example of the high-quality, lower-rated credits that we purchase as part of our
focus on income. The Spokane Downtown Foundation planned to issue parking
revenue bonds to finance the renovation and expansion of a parking garage in
River Park Square. However, the plan sparked controversy, and eventually a legal
challenge, over the city council's authority to pledge parking meter revenues
for this project. The challenge was ultimately resolved in the issuer's favor
but impacted the pricing of the issue. The significant time we spent researching
this offering resulted in good value for our share-holders, as we were able to
purchase these BBB- bonds in September 1998 for attractive prices while
capturing incremental yield for the Fund.
Overall, the Fund continues to offer excellent credit quality. At the end of May
1999, NPW had 94% of its portfolio invested in bonds rated AAA and AA, with a 3%
allocation of BBB and non-rated bonds, which generally provide higher levels of
yield. In the area of bond calls, the Fund currently offers good levels of call
protection, with only 4% of its portfolio subject to calls prior to 2002. This
should provide some protection for the Fund's dividend over this period. To
minimize the impact of any future calls, we are already at work on strategies
for managing through this period.
WHAT IS NUVEEN'S OUTLOOK FOR NPW?
Pending approval of the shareholder vote scheduled for July 28, 1999, which Mr.
Schwertfeger discussed in his letter to shareholders on page 1
of this report, our focus will remain on supporting NPW's income stream as the
major component of its total return. If the vote to have NPW merge into the
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) is successful, the
reorganization of those two funds is scheduled to take place August 12, 1999.
The combined fund will continue to pursue the same investment objective as NPW
currently does, which is to provide shareholders with dependable levels of
tax-free income and attractive after-tax total returns. Whether or not the vote
is successful, we will remain conservative in our approach to duration,
maturity, and interest rate risk. As an experienced investment manager
knowledgeable about the unique aspects of the municipal market, we are in the
marketplace every day, monitoring market dynamics, looking for opportunities,
and capitalizing on them to the benefit of shareholders.
1 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 31%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
2 The Lipper Peer Group return represents the average annualized total return
of the 18 funds in the Lipper Other States Municipal Debt category. The
return assumes reinvestment of dividends and does not reflect any
applicable sales charges.
3 NPW is compared with the Lehman Brothers Municipal Bond Index, an
unleveraged index comprising a broad range of investment-grade municipal
bonds. The return for the Lehman index does not reflect any initial or
ongoing expenses.
4 Taxable-equivalent yield repre-sents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
rate is based on the federal income tax rate of 31%.
<PAGE>
Nuveen Washington Premium Income Municipal Fund
Performance Overview
As of May 31, 1999
NPW
Portfolio Statistics
- --------------------------------------------------
Inception Date 3/93
Share Price $13 7/16
Net Asset Value $14.88
Market Yield 5.80%
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 8.41%
Fund Net Assets ($000) $51,524
Effective Maturity (Years) 17.27
Leverage-Adjusted Duration 9.79
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 4.10% 3.97%
5-Year 7.87% 8.49%
Since Inception 3.99% 6.37%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 6.72% 6.34%
5-Year 10.71% 11.01%
Since Inception 6.64% 8.80%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 22%
Utilities 14%
Healthcare 12%
Water and Sewer 12%
U.S. Guaranteed 10%
- --------------------------------------------------
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. The
rate is based on the current market yield and a federal income tax rate of
31%.
2 Taxable-equivalent total return is based on the annualized total return
and a combined federal and state income tax rate of 31%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
6/98 0.063
7/98 0.063
8/98 0.065
9/98 0.065
10/98 0.065
11/98 0.065
12/98 0.065
1/99 0.065
2/99 0.065
3/99 0.065
4/99 0.065
5/99 0.065
Line Chart:
Share Price Performance
6/5/98 13.625
15.563
13.563
13.688
13.875
13.813
13.938
13.75
13.625
14.125
14.063
14
14.25
14.188
14.125
14.25
14.25
14.5
14.375
14.25
14.44
14.44
14.31
14.75
14.88
14.75
14.75
14.88
14.81
14.63
14.31
14.25
14.31
14.75
14.5
14.38
14.38
14.38
14.63
14.63
14.5
14.625
14.31
14.38
14.5
14.25
14.19
13.31
5/31/99 13.44
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Shareholder Meeting Report
The Shareholder Meeting was held November 18, 1998 in Chicago at Nuveen's
headquarters.
<TABLE>
<CAPTION>
NTC NMT
- ------------------------------------------------------------------------------------------------------------------------------------
Approval of the Trustees was reached as follows:
Preferred Preferred
Common Shares Common Shares
Shares Series-TH Shares Series-TH
====================================================================================================================================
<S> <C> <C> <C> <C>
Robert P. Bremner
For 4,710,576 1,532 4,375,512 1,336
Withhold 31,294 -- 35,943 13
- ------------------------------------------------------------------------------------------------------------------------------------
Total 4,741,870 1,532 4,411,455 1,349
====================================================================================================================================
Lawrence H. Brown
For 4,710,576 1,532 4,395,512 1,336
Withhold 31,294 -- 15,943 13
- ------------------------------------------------------------------------------------------------------------------------------------
Total 4,741,870 1,532 4,411,455 1,349
====================================================================================================================================
Anthony T. Dean*
For 4,710,576 1,532 4,375,512 1,336
Withhold 31,294 -- 35,943 13
- ------------------------------------------------------------------------------------------------------------------------------------
Total 4,741,870 1,532 4,411,455 1,349
====================================================================================================================================
Anne E. Impellizzeri
For 4,711,126 1,532 4,392,213 1,336
Withhold 30,744 -- 19,242 13
- ------------------------------------------------------------------------------------------------------------------------------------
Total 4,741,870 1,532 4,411,455 1,349
====================================================================================================================================
Peter R. Sawers
For 4,710,576 1,532 4,395,512 1,336
Withhold 31,294 -- 15,943 13
- ------------------------------------------------------------------------------------------------------------------------------------
Total 4,741,870 1,532 4,411,455 1,349
====================================================================================================================================
William J. Schneider
For -- 1,532 -- 1,336
Withhold -- -- -- 13
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,532 -- 1,349
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,532 -- 1,336
Withhold -- -- -- 13
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,532 -- 1,349
====================================================================================================================================
Judith M. Stockdale
For 4,710,926 1,532 4,396,145 1,336
Withhold 30,944 -- 15,310 13
- ------------------------------------------------------------------------------------------------------------------------------------
Total 4,741,870 1,532 4,411,455 1,349
====================================================================================================================================
Ratification of auditors was reached as follows:
For 4,710,190 1,532 4,401,758 1,332
Against 6,321 -- 943 16
Abstain 25,359 -- 8,754 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 4,741,870 1,532 4,411,455 1,349
====================================================================================================================================
*Mr. Dean retired from the Board, effective May 1, 1999.
<PAGE>
<CAPTION>
Shareholder Meeting Report
NOM NPW
- ------------------------------------------------------------------------------------------------------------------------------------
Approval of the Trustees was reached as follows:
Preferred Preferred
Common Shares Common Shares
Shares Series-TH Shares Series-TH
====================================================================================================================================
<S> <C> <C> <C> <C>
Robert P. Bremner
For 1,772,247 561 2,153,405 680
Withhold 162,743 -- 6,734 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,934,990 561 2,160,139 680
====================================================================================================================================
Lawrence H. Brown
For 1,772,447 561 2,153,405 680
Withhold 162,543 -- 6,734 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,934,990 561 2,160,139 680
====================================================================================================================================
Anthony T. Dean*
For 1,772,447 561 2,152,805 680
Withhold 162,543 -- 7,334 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,934,990 561 2,160,139 680
====================================================================================================================================
Anne E. Impellizzeri
For 1,772,147 561 2,152,805 680
Withhold 162,843 -- 7,334 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,934,990 561 2,160,139 680
====================================================================================================================================
Peter R. Sawers
For 1,772,147 561 2,153,405 680
Withhold 162,843 -- 6,734 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,934,990 561 2,160,139 680
====================================================================================================================================
William J. Schneider
For -- 561 -- 680
Withhold -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 561 -- 680
====================================================================================================================================
Timothy R. Schwertfeger
For -- 561 -- 680
Withhold -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 561 -- 680
====================================================================================================================================
Judith M. Stockdale
For 1,772,447 561 2,153,405 680
Withhold 162,543 -- 6,734 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,934,990 561 2,160,139 680
====================================================================================================================================
Ratification of auditors was reached as follows:
For 1,769,746 561 2,145,980 680
Against 158,681 -- -- --
Abstain 6,563 -- 14,159 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,934,990 561 2,160,139 680
====================================================================================================================================
*Mr. Dean retired from the Board, effective May 1, 1999.
</TABLE>
<PAGE>
Report of Independent Auditors
To the Board 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, 1999, and the related statements of operations, changes in net assets
and the financial highlights for the periods 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 the 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, 1999, 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, as of May 31, 1999, the results of
their operations, changes in their net assets and financial highlights for the
periods indicated therein in conformity with generally accepted accounting
principles.
/s/ Ernst & Young LLP
Chicago, Illinois
July 16, 1999
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Connecticut Premium Income Municipal Fund (NTC)
May 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 15.0%
Connecticut Higher Education Supplemental Loan Authority,
Revenue Bonds (Family Education Loan Program), 1996 Series A:
$ 1,520,000 5.800%, 11/15/14 (Alternative Minimum Tax) 11/06 at 102 AAA $1,611,474
965,000 5.875%, 11/15/17 (Alternative Minimum Tax) 11/06 at 102 AAA 990,322
1,540,000 State of Connecticut, Health and Educational Facilities Authority, 7/03 at 102 BBB- 1,580,502
Revenue Bonds, Quinnipiac College Issue Series D,
6.000%, 7/01/23
2,000,000 State of Connecticut, Health and Educational Facilities Authority, 7/06 at 102 AAA 2,113,620
Revenue Bonds, Trinity College Issue, Series E, 5.875%, 7/01/26
2,040,000 State of Connecticut, Health and Educational Facilities Authority, 7/06 at 102 AAA 2,087,491
Revenue Bonds, The Loomis Chaffee School Issue, Series C,
5.500%, 7/01/16
2,250,000 State of Connecticut, Health and Educational Facilities 7/08 at 102 AAA 2,193,008
Authority, Revenue Bonds, Fairfield University Issue, Series H,
5.000%, 7/01/23
2,920,000 State of Connecticut, Health and Educational Facilities 7/07 at 102 AAA 3,021,587
Authority, Revenue Bonds, Connecticut College Issue, Series C-1,
5.500%, 7/01/20
3,810,000 The University of Connecticut, Student Fee Revenue Bonds, 11/08 at 101 AAA 3,538,042
1998 Series A, 4.750%, 11/15/27
- ---------------------------------------------------------------------------------------------------------------------------------
Health Care - 23.5%
1,000,000 State of Connecticut Health and Educational Facilities Authority, 7/04 at 102 AAA 1,087,160
Revenue Bonds, Newington Children's Hospital, Series A,
6.050%, 7/01/10
1,500,000 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102 AAA 1,445,220
Revenue Bonds, Lawrence and Memorial Hospital Issue,
Series D, 5.000%, 7/01/22
2,000,000 State of Connecticut Health and Educational Facilities Authority, No Opt. Call AAA 2,104,200
Revenue Bonds, Hospital of Saint Raphael Issue, Series H,
5.200%, 7/01/08
2,725,000 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 2,931,337
Revenue Bonds, Saint Francis Hospital and Medical Center Issue,
Series B, 6.200%, 7/01/22
5,000,000 State of Connecticut Health and Educational Facilities Authority 7/09 at 101 Aaa 4,823,150
Revenue Bonds, Stamford Hospital Issue, Series G,
5.000%, 7/01/24
2,200,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102 AAA 2,212,452
Revenue Bonds, Day Kimball Hospital Issue Series A,
5.375%, 7/01/26
4,160,000 State of Connecticut, Health and Educational Facilities Authority, 7/06 at 102 AAA 4,306,390
Revenue Bonds, Yale-New Haven Hospital Issue, Series H,
5.625%, 7/01/16
1,000,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102 AAA 1,046,310
Revenue Bonds, The William W. Backus Hospital Issue, Series D,
5.750%, 7/01/27
3,000,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 101 Aaa 2,925,720
Revenue Bonds, Middlesex Health Services Issue, Series I,
5.125%, 7/01/27
2,000,000 Connecticut Development Authority, Solid Waste Disposal 7/05 at 102 AAA 2,295,960
Facilities Revenue Bonds, Pfizer Inc. Project, 1994 Series,
7.000%, 7/01/25 (Alternative Minimum Tax)
1,500,000 Puerto Rico Industrial, Tourist, Educational, Medical and 8/05 at 101 1/2 AAA 1,629,765
Environmental Control Facilities Financing Authority, Hospital
Revenue Refunding Bonds 1995, Series A, FHA Insured Mortgage
(Pila Hospital Project), 6.125%, 8/01/25
- ---------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 5.8%
3,000,000 Housing Authority of the City of Waterbury, Connecticut, Mortgage 1/02 at 100 AAA 3,014,910
Refunding Revenue Bonds, Series 1998C (FHA Insured Mortgage
Loan Waterbury NSA-II Section 8 Assisted Project),
5.450%, 7/01/23
1,310,000 Waterbury Nonprofit Housing Corporation, Connecticut, Taxable 7/02 at 101 AAA 1,388,390
Mortgage Revenue Refunding Bonds, FHA Insured Mortgage Loan -
Fairmont Height Section 8 Assisted Project, Series 1993A,
6.500%, 7/01/07
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Multifamily (continued)
$ 1,930,000 Housing Authority of the City of Willimantic, Multifamily Housing 10/05 at 105 AAA $2,205,160
Revenue Bonds, Series 1995A, GNMA Collateralized Mortgage
Loan (Village Heights Apartments Project), 8.000%, 10/20/30
- ---------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 5.2%
3,175,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/03 at 102 AA 3,359,087
Program, Series B, 6.200%, 5/15/12
2,345,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/06 at 102 AA 2,488,209
Program Bonds, 1996 Subseries E-2, 6.150%, 11/15/27
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 5.2%
1,300,000 State of Connecticut Health and Educational Facilities Authority, 8/08 at 102 AAA 1,254,643
Revenue Bonds, Hebrew Home and Hospital Issue, Series B
(FHA Insured Mortgage), 5.200%, 8/01/38
2,000,000 State of Connecticut Health and Educational Facilities Authority, 11/03 at 102 AAA 2,156,660
Revenue Bonds, Nursing Home Program Issue, Series 1993,
Mansfield Center for Nursing and Rehabilitation Project,
5.875%, 11/01/12
Connecticut Development Authority, Health Facility Refunding
Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc.
Project, Series 1994A:
1,300,000 6.875%, 8/15/04 No Opt. Call N/R 1,369,589
1,000,000 7.000%, 8/15/09 8/04 at 102 N/R 1,068,890
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 9.3%
1,750,000 State of Connecticut, General Obligation Bonds, 1993 Series D, 8/03 at 101 1/2 AA 1,785,613
5.100%, 8/01/11
2,000,000 State of Connecticut, General Obligation Bonds, 1993 Series E, No Opt. Call AA 2,238,540
6.000%, 3/15/12
1,650,000 State of Connecticut, General Fund Obligation Bonds, 10/04 at 102 AA- 1,828,530
1994 Series A, Issued by Connecticut Development Authority,
6.375%, 10/15/14
3,500,000 Commonwealth of Puerto Rico, Public Improvement Bonds 7/08 at 101 AAA 3,360,840
of 1998 (General Obligation Bonds), 4.875%, 7/01/23
1,250,000 City of Waterbury Connecticut, General Obligation Tax Revenue 4/03 at 102 AAA 1,299,025
Intercept Refunding Bonds, 1993 Issue, 5.375%, 4/15/08
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 3.7%
1,900,000 Capitol Region Education Council, Connecticut, Bonds, 10/05 at 102 BBB 2,072,197
6.700%, 10/15/10
1,800,000 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AA- 2,087,010
Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10
- ---------------------------------------------------------------------------------------------------------------------------------
Transportation - 4.5%
3,000,000 State of Connecticut, Airport Revenue Refunding Bonds, Bradley 10/04 at 100 AAA 3,461,700
International Airport, Series 1992, 7.650%, 10/01/12
1,500,000 City of New Haven, Connecticut, Air Rights Parking Facility 12/01 at 102 AAA 1,616,895
Revenue Bonds, Series 1991, 6.500%, 12/01/15
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 11.4%
State of Connecticut Health and Educational Facilities
Authority, Revenue Bonds, Sacred Heart University Issue, Series
B:
2,600,000 5.700%, 7/01/16 (Pre-refunded to 7/01/03) 7/03 at 102 BBB-*** 2,802,748
1,000,000 5.800%, 7/01/23 (Pre-refunded to 7/01/03) 7/03 at 102 BBB-*** 1,081,720
2,020,000 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 2,184,670
Revenue Bonds, Trinity College Issue, Series C, 6.000%, 7/01/22
(Pre-refunded to 7/01/02)
2,910,000 State of Connecticut, Health and Educational Facilities Authority, 7/03 at 102 BBB-*** 3,169,543
Revenue Bonds, Quinnipiac College Issue Series D,
6.000%, 7/01/23 (Pre-refunded to 7/01/03)
2,000,000 State of Connecticut Health and Educational Facilities Authority, 11/04 at 102 AA-*** 2,318,840
Revenue Bonds, Nursing Home Program Issue, Series 1994,
AHF/Hartford, Inc. Project, 7.125%, 11/01/24
(Pre-refunded to 11/01/04)
1,250,000 State of Connecticut, Health and Educational Facilities Authority, 7/04 at 101 AAA 1,428,575
Revenue Bonds, Choate Rosemary Hall Issue, Series A,
7.000%, 7/01/25 (Pre-refunded to 7/01/04)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities - 7.7%
$ 3,250,000 Connecticut Municipal Electric Energy Cooperative, Power Supply 1/04 at 102 AAA $3,178,663
System Revenue Bonds, 1993 Series A, 5.000%, 1/01/18
2,200,000 Connecticut Resources Recovery Authority, Bridgeport Resco 7/99 at 102 A 2,280,740
Company, L.P. Project Bonds, Series A, 7.625%, 1/01/09
3,100,000 Connecticut Resources Recovery Authority, Resource Recovery 11/99 at 103 AA 3,226,604
Revenue Bonds, American Ref-Fuel Company of Southeastern
Connecticut Project 1989 Series A, 7.700%, 11/15/11
- ---------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 6.6%
2,795,000 Connecticut Development Authority, Water Facilities Revenue 6/03 at 102 AAA 2,851,319
Bonds, Bridgeport Hydraulic Company Project, Series 1993A,
5.600%, 6/01/28 (Alternative Minimum Tax)
1,400,000 Connecticut Development Authority, Water Facilities Refunding 6/03 at 102 AAA 1,429,750
Revenue Bonds, Bridgeport Hydraulic Company Project,
1993B Series, 5.500%, 6/01/28
1,000,000 State of Connecticut, Clean Water Fund, Subordinate Revenue 1/05 at 101 AAA 1,037,690
Refunding Bonds, 1996 Series, 5.250%, 7/01/10
2,000,000 South Central Connecticut Regional Water Authority, Water 8/03 at 102 AAA 2,137,159
System Revenue Bonds, Eleventh Series, 5.750%, 8/01/12
- ---------------------------------------------------------------------------------------------------------------------------------
$ 106,365,000 Total Investments - (cost $105,702,958) - 97.9% 111,127,619
=============
Other Assets Less Liabilities - 2.1% 2,337,160
-----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $113,464,779
=================================================================================================================
* 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.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Massachusetts Premium Income Municipal Fund (NMT)
May 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 19.5%
$ 795,000 Massachusetts Educational Financing Authority, Education Loan 7/04 at 102 AAA $ 831,029
Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10
(Alternative Minimum Tax)
1,970,000 Massachusetts Health and Educational Facilities Authority, 6/03 at 102 AAA 1,970,493
Revenue Bonds, Boston College Issue, Series K,
5.250%, 6/01/23
1,500,000 Massachusetts Industrial Finance Agency, Revenue Bonds 3/06 at 102 AAA 1,543,425
(College of the Holy Cross - 1996 Issue), 5.500%, 3/01/20
2,645,000 Massachusetts Industrial Finance Agency, Revenue Bonds 7/03 at 102 Aa1 2,536,529
(Whitehead Institute for Biomedical Research - 1993 Issue),
5.125%, 7/01/26
3,500,000 Massachusetts Industrial Finance Agency, Revenue Bonds, 9/08 at 102 AA+ 3,558,870
Phillips Academy Issue, Series 1993, 5.375%, 9/01/23
3,300,000 Massachusetts Industrial Finance Agency, Education 9/08 at 101 A 3,187,338
Revenue Bonds (Belmont Hill School Issue - Series 1998),
5.250%, 9/01/28
1,765,000 The New England Education Loan Marketing Corporation, No Opt. Call A3 1,881,190
Student Loan Revenue Bonds, 1992 Subordinated Issue C,
6.750%, 9/01/02 (Alternative Minimum Tax)
4,000,000 The New England Loan Marketing Corporation, Student Loan No Opt. Call A3 4,483,520
Revenue Bonds, 1992 Subordinated Issue H, 6.900%, 11/01/09
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
Health Care - 17.3%
4,000,000 Massachusetts Health and Educational Facilities Authority, 7/04 at 102 AAA 4,002,120
Revenue Bonds, New England Medical Center Hospitals Issue,
Series G-1, 5.375%, 7/01/24
2,000,000 Massachusetts Health and Educational Facilities Authority, 7/04 at 102 AA+ 2,135,820
Revenue Bonds (Daughters of Charity National Health
System - The Carney Hospital), Series D, 6.100%, 7/01/14
1,000,000 Massachusetts Health and Educational Facilities Authority, 7/00 at 100 AAA 1,040,720
Revenue Bonds, Massachusetts General Hospital Issue,
Series G, 5.375%, 7/01/11
3,000,000 Massachusetts Health and Educational Facilities Authority, 7/03 at 102 AAA 3,079,050
Revenue Bonds, Lahey Clinic Medical Center Issue, Series B,
5.625%, 7/01/15
400,000 Massachusetts Health and Educational, Facilities Authority, 7/99 at 102 1/2 N/R 407,776
Revenue 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:
2,340,000 6.125%, 2/15/15 2/04 at 102 Aa 2,431,705
1,000,000 6.000%, 2/15/25 2/04 at 102 Aa 1,026,580
2,805,000 Massachusetts Health and Educational Facilities Authority, 7/08 at 102 AAA 2,655,185
Revenue Bonds, Caregroup Issue, Series A, 5.000%, 7/01/25
1,000,000 Massachusetts Health and Educational Facilities Authority, 7/08 at 101 AAA 916,600
Revenue Bonds, Harvard Pilgrim Health Care Issue, Series A,
4.750%, 7/01/22
- ---------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 12.3%
3,800,000 Massachusetts Housing Finance Agency, Housing Project Revenue 4/03 at 102 A+ 4,045,670
Bonds, 6.300%, 10/01/13
3,000,000 Massachusetts Housing Finance Agency, Housing Development 6/08 at 101 AAA 3,073,920
Bonds, 1998 Series A, 5.375%, 6/01/16 (Alternative Minimum Tax)
3,315,000 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/07 at 101 AAA 3,387,797
Revenue Bonds, 1997 Series C, 5.625%, 7/01/40
(Alternative Minimum Tax)
1,925,000 Massachusetts Housing Finance Agency, Rental Housing 1/05 at 102 AAA 2,106,143
Mortgage Revenue Bonds, 1995 Series A (FHA Insured
Mortgage Loans), 7.350%, 1/01/35 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Long-Term Care - 4.0%
$ 1,270,000 City of Boston, Massachusetts, Revenue Bonds (Deutsches 10/08 at 105 AAA $1,348,575
Altenheim, Incorporated Project - FHA Insured Mortgage),
Series 1998A, 6.125%, 10/01/31
1,000,000 Massachusetts Health and Educational Facilities Authority 2/07 at 102 Aa2 1,065,440
Revenue Refunding Bonds, Youville Hospital Issue
(FHA Insured Project), Series A, 6.250%, 2/15/41
1,125,000 Massachusetts Industrial Financial Agency, Revenue Bonds, 2/06 at 102 AAA 1,176,716
Heights Crossing Limited Partnership Issue (FHA Insured Project),
Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax)
500,000 Massachusetts Industrial Finance Agency, Revenue Bonds, 8/07 at 105 AAA 538,890
Briscoe House Assisted Living Issue (FHA Insured Project),
6.050%, 2/01/17 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 7.7%
Town of Barnstable, Massachusetts, General Obligation Bonds:
1,020,000 5.750%, 9/15/10 9/04 at 102 AA 1,102,069
1,020,000 5.750%, 9/15/11 9/04 at 102 AA 1,104,599
965,000 5.750%, 9/15/12 9/04 at 102 AA 1,027,744
4,375,000 City of Lowell, Massachusetts, General Obligation State 11/03 at 102 AAA 4,631,856
Qualified Bonds, 5.600%, 11/01/12
- ---------------------------------------------------------------------------------------------------------------------------------
Transportation - 6.6%
4,000,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 9/06 at 102 AAA 4,193,240
(US Air Project), Series 1996-A, 5.750%, 9/01/16
(Alternative Minimum Tax)
2,500,000 Massachusetts Industrial Finance Agency, Parking Facility 4/03 at 102 AAA 2,519,725
Revenue Bonds (Avon Associates LLC Project), Series 1998A,
5.375%, 4/01/20
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 20.3%
2,500,000 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 2,501,250
Revenue Bonds, Malden Hospital Issue (FHA Insured Project),
Series A, 5.000%, 8/01/16
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, New England Deaconess Hospital Issue, Series D:
3,310,000 6.625%, 4/01/12 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 3,612,799
1,000,000 6.875%, 4/01/22 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 1,098,140
1,000,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, No Opt. Call AAA 1,644,540
13.000%, 7/01/13
2,500,000 Massachusetts Industrial Finance Agency, Revenue Refunding 11/02 at 102 AA-*** 2,743,275
Bonds, College of the Holy Cross - 1992 Issue II,
6.375%, 11/01/15 (Pre-refunded to 11/01/02)
1,300,000 Massachusetts Industrial Finance Agency, Revenue Bonds, 7/02 at 102 AAA 1,446,627
Merrimack College Issue, Series 1992, 7.125%, 7/01/12
(Pre-refunded to 7/01/02)
1,175,000 Massachusetts Industrial Finance Agency, Revenue Bonds 7/03 at 102 A3*** 1,278,999
(Brooks School Issue), Series 1993, 5.950%, 7/01/23
(Pre-refunded to 7/01/03)
3,000,000 Massachusetts Water Resources Authority, General Revenue 12/01 at 100 Aaa 3,148,590
Bonds, 1991 Series A, 5.750%, 12/01/21 (Pre-refunded to 12/01/01)
3,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/01 at 102 Aaa 3,259,620
Series P, 7.000%, 7/01/21 (Pre-refunded to 7/01/01)
- ---------------------------------------------------------------------------------------------------------------------------------
Utilities - 7.5%
2,000,000 Massachusetts Municipal Wholesale Electric Company, 7/02 at 100 AAA 2,100,600
Power Supply System Revenue Bonds, 1992 Series A,
6.000%, 7/01/18
3,275,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,607,740
Revenue Bonds, Semass Project, Series 1991B, 9.250%, 7/01/15
(Alternative Minimum Tax)
2,000,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB 1,974,800
Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A,
5.600%, 12/01/19 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer - 2.8%
$ 3,000,000 Massachusetts Water Resources Authority, General Revenue 3/03 at 100 A+ $2,860,620
Refunding Bonds, 1993 Series B, 5.000%, 3/01/22
- ---------------------------------------------------------------------------------------------------------------------------------
$ 95,895,000 Total Investments - (cost $94,709,231) - 98.0% 100,287,934
=============
Other Assets Less Liabilities - 2.0% 2,000,141
-----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $102,288,075
=================================================================================================================
* 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.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Missouri Premium Income Municipal Fund (NOM)
May 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Consumer Staples - 2.1%
$ 1,000,000 Missouri State Development Finance Board, Solid Waste Disposal No Opt. Call AA $ 981,350
Revenue Bonds (Procter and Gamble Paper Products Company
Project), Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.5%
500,000 The Industrial Development Authority of the City of Kansas City, 4/07 at 100 AAA 519,645
Missouri (Ewing Marion Kauffman Foundation Project),
Fixed Rate Revenue Bonds, Series 1997B, 5.700%, 4/01/27
2,165,000 Health and Educational Facilities Authority of the State of 11/08 at 101 AA+ 2,043,587
Missouri, Educational Facilities Revenue Bonds (The Washington
University), Series 1998A, 5.000%, 11/15/37
- ---------------------------------------------------------------------------------------------------------------------------------
Health Care - 9.6%
1,000,000 Health and Educational Facilities Authority of the State of Missouri, 6/02 at 102 AAA 1,080,040
Health Facilities Refunding Revenue Bonds (SSM Health Care),
Series 1992A, 6.250%, 6/01/07
1,000,000 Health and Educational Facilities Authority, of the State of Missouri, No Opt. Call AA 1,181,780
Health Facilities Revenue Bonds (BJC Health System),
Series 1994A, 6.750%, 5/15/12
325,000 Health and Educational Facilities Authority of the State of Missouri, 2/06 at 102 BBB+ 344,689
Health Facilities Revenue Bonds (Lake of the Ozarks General
Hospital Inc.), Series 1996, 6.500%, 2/15/21
400,000 Health and Educational Facilities Authority of the State of Missouri, 5/08 at 101 AA 376,972
Health Facilities Revenue Bonds (BJC Health System),
Series 1998, 5.000%, 5/15/28
1,000,000 Ray County, Missouri Hospital Revenue Bonds (Ray County 5/05 at 101 1/2 N/R 999,420
Memorial Hospital), Series 1997, 5.750%, 11/15/12
500,000 The Industrial Development Authority of the City of West Plains, 11/07 at 101 BBB- 493,760
Missouri Hospital Facilities Revenue Bonds (Ozark Medical Center),
Series 1997, 5.600%, 11/15/17
- ---------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 14.2%
650,000 The Industrial Development Authority of the City of Kansas City, 2/08 at 102 AAA 659,887
Missouri, Multifamily Housing Revenue Refunding Bonds
(President Gardens Apartment Project), Series 1997A,
5.550%, 8/01/25
1,550,000 Missouri Housing Development Commission, Multifamily Housing 12/06 at 102 AAA 1,632,212
Revenue Bonds (Brookstone Village Apartments Project),
1996 Series A, 6.100%, 12/01/21 (Alternative Minimum Tax)
1,250,000 The Industrial Development Authority of St. Charles County, 4/08 at 102 AAA 1,276,388
Missouri Multifamily Housing Revenue Bonds (Ashwood
Apartments Project), Series 1998A, 5.600%, 4/01/30
(Alternative Minimum Tax)
1,045,000 The Industrial Development Authority of the County of St. Louis, 4/07 at 102 AAA 1,110,783
Missouri, Multifamily Housing Revenue Refunding Bonds
(GNMA Collateralized - South Summit Apartments Project),
Series 1997A, 5.950%, 4/20/17
600,000 Multifamily Housing Revenue Refunding Bonds (GNMA 4/07 at 102 AAA 632,454
Collateralized - South Summit Apartments Project),
Series 1997B, 6.000%, 10/20/15 (Alternative Minimum Tax)
1,250,000 The Industrial Development Authority of The City of University 12/05 at 102 AAA 1,299,288
City, Missouri, Multifamily Housing Revenue Refunding Bonds
(GNMA Collateralized - Canterbury Gardens Project), Series 1995A,
5.900%, 12/20/20
- ---------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 8.0%
1,610,000 Missouri Housing Development Commission, Single Family 3/06 at 105 AAA 1,804,874
Mortgage Revenue Bonds (Homeownership Loan Program),
1995 Series C, 7.250%, 9/01/26 (Alternative Minimum Tax)
1,835,000 Missouri Housing Development Commission, Single Family 2/01 at 102 AAA 1,917,832
Mortgage Revenue Bonds (GNMA Mortgage-Back Securities
Program), 1991 Series A, 7.375%, 8/01/23 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/General - 16.9%
$ 2,020,000 Ritenour School District of St. Louis County, Missouri, General No Opt. Call AAA $2,485,267
Obligation School Bonds, Series 1995, 7.375%, 2/01/12
1,500,000 Francis Howell School District, St. Charles County, Missouri, No Opt. Call AAA 1,819,605
General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08
1,000,000 School District of the City of St. Charles, Missouri, General 3/06 at 100 AA 1,050,470
Obligation Bonds (Missouri Direct Deposit Program), Series 1996A,
5.625%, 3/01/14
1,395,000 The Board of Education of the City of St. Louis, Missouri, No Opt. Call AAA 1,760,141
General Obligation School Refunding Bonds, Series 1993A,
8.500%, 4/01/07
625,000 Reorganized School District No. R-IV of Stone County, Reeds No Opt. Call AAA 785,200
Spring, Missouri, General Obligation School Building Refunding
and Improvement Bonds, Series 1995, 7.600%, 3/01/10
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 14.3%
1,000,000 Fort Zumwalt School District Improvement Corporation, Leasehold 3/07 at 100 Aaa 1,034,400
Revenue Bonds, Fort Zumwalt S.D., St. Charles County, Series 1997,
5.600%, 3/01/17
1,000,000 Land Clearance for Redevelopment Authority, of Kansas City, Missouri, 12/05 at 102 AAA 1,063,690
Lease Revenue Bonds (Municipal Auditorium and Muehlebach
Hotel Redevelopment Project), Series 1995A, 5.900%, 12/01/18
1,000,000 Kansas City Municipal Assistance Corporation, Leasehold Revenue 1/06 at 101 AAA 1,056,610
Capital Improvement Bonds, Kansas City, Missouri, Lessee,
Series 1996B, 5.700%, 1/15/13
1,500,000 St. Louis Municipal Finance Corporation, Leasehold Revenue 7/03 at 102 A1 1,563,300
Refunding Bonds, 5.850%, 7/15/09
1,800,000 St. Louis Municipal Finance Corporation City of St. Louis, 2/06 at 102 AAA 1,926,414
Missouri, City Justice Center, Leasehold Revenue Improvement
Bonds, Series 1996A, 5.750%, 2/15/11
- ---------------------------------------------------------------------------------------------------------------------------------
Transportation - 6.0%
1,500,000 City of Kansas City, Missouri, General Improvement Airport 9/04 at 101 AAA 1,676,400
Revenue Bonds, Series 1994A, 6.900%, 9/01/11
(Alternative Minimum Tax)
1,000,000 The City of St. Louis, Missouri, Airport Revenue Bonds No Opt. Call AAA 1,099,730
Series 1997B (1997 Capital Improvement Program), Lambert-
St. Louis International Airport, 6.000%, 7/01/12
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 11.0%
675,000 Health and Educational Facilities Authority of the State of 2/06 at 102 BBB+*** 765,173
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)
1,290,000 Health and Educational Facilities Authority of the State of 6/00 at 102 AAA 1,363,272
Missouri, Health Facilities Revenue Bonds (SSM Health Care
Obligated Group Projects), Series 1990B, 7.000%, 6/01/15
1,500,000 Certificates of Receipt, Series 1993, St. Louis County, No Opt. Call AAA 1,582,800
Missouri, GNMA Collateralized Mortgage Revenue Bonds,
Series 1989A (Escrowed with United States Governmental
Obligations), 5.650%, 7/01/20 (Alternative Minimum Tax)
1,275,000 St. Louis Municipal Finance Corporation, City of St. Louis, 2/05 at 100 AAA 1,406,797
Missouri, Leasehold Revenue Improvement and Refunding Bonds,
Series 1992, 6.250%, 2/15/12 (Pre-refunded to 2/15/05)
- ---------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 10.6%
1,225,000 State Environmental Improvement and Energy Resources 1/05 at 102 Aa1 1,442,928
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
1,000,000 State Environmental Improvement and Energy Resources 7/04 at 102 AAA 1,070,360
Authority (State of Missouri), Water Pollution Control Revenue
Bonds (State Revolving Fund Program - City of Branson Project),
Series 1995A, 6.050%, 7/01/16
1,000,000 State Environmental Improvement and Energy Resources 1/06 at 101 Aa1 1,057,229
Authority (State of Missouri), Water Pollution Control
Revenue Bonds (State Revolving Fund Program - Multiple
Participant Series), Series 1996D, 5.875%, 1/01/15
350,000 State Environmental Improvement and Energy Resources No Opt. Call Aa1 413,370
Authority (State of Missouri), Water Pollution Control Revenue
Bonds (State Revolving Fund Program - City of Kansas City Project),
Series 1997C, 6.750%, 1/01/12
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer (continued)
$ 1,000,000 Public Water Supply District No. 2 of St. Charles County, 12/09 at 100 Aaa $ 976,559
Missouri, Insured Certificates of Participation, Series 1999B,
5.100%, 12/01/25
- ---------------------------------------------------------------------------------------------------------------------------------
$ 42,335,000 Total Investments - (cost $43,387,586) - 98.2% 45,754,676
=============
Other Assets Less Liabilities - 1.8% 847,929
-----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $46,602,605
=================================================================================================================
* 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.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Washington Premium Income Municipal Fund (NPW)
May 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 5.0%
$ 1,000,000 University of Washington, Housing and Dining System Revenue 12/06 at 102 AAA $ 998,890
Refunding Bonds, Junior Lien Series 1996, 5.125%, 12/01/15
1,400,000 Washington State University, Housing and Dining System Revenue 10/04 at 101 AAA 1,535,044
and Refunding Bonds, Series 1994, 6.375%, 10/01/18
65,000 Western Washington University, Housing and Dining System 10/02 at 101 AAA 69,874
Revenue Bonds, Series 1992, 6.375%, 10/01/22
- ---------------------------------------------------------------------------------------------------------------------------------
Health Care - 11.7%
1,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/04 at 102 AA- 1,026,250
Series 1993A (The Heart Institute of Spokane), 5.800%, 8/15/18
2,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 10/02 at 102 AAA 2,174,180
Series 1992 (The Children's Hospital and Medical Center, Seattle),
6.125%, 10/01/13
2,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/08 at 102 AA 1,876,140
Series 1998 (Highline Community Hospital), 5.000%, 8/15/21
1,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA 940,760
Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28
- ---------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 6.0%
2,000,000 Housing Authority of the County of King Washington, Housing 5/05 at 100 AA+ 2,086,920
Revenue Bonds, Series 1995 (Woodridge Park Project),
6.350%, 5/01/25 (Alternative Minimum Tax)
960,000 Washington State Housing Finance Commission, Multifamily 1/00 at 102 AAA 990,538
Mortgage Revenue Bonds (GNMA Mortgage Backed Securities
Program), Series 1989A, 7.700%, 7/01/32
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.3%
1,565,000 Washington State Housing Finance Commission, Single-Family No Opt. Call AAA 1,709,403
Mortgage Revenue Bonds (Mortgage Backed Securities Program),
Series 1992D-1, 6.150%, 1/01/26 (Alternative Minimum Tax)
470,000 Washington State Housing Finance Commission, Single Family 6/07 at 102 Aaa 493,383
Program Bonds, 1997 Series 2A, 6.050%, 12/01/16
- ---------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.5%
1,640,000 Housing Authority of Skagit County, Low-Income Housing 11/04 at 104 AAA 1,788,748
Assistance Revenue Bonds, Series 1993 (GNMA Collateralized
Mortgage Loan - Sea Mar Project), 7.000%, 6/20/35
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 21.6%
1,655,000 City of Everett, Washington, Limited Tax General Obligation 9/07 at 100 Aaa 1,641,313
Bonds, Series 1997, 5.125%, 9/01/17
1,000,000 Federal Way School District No. 210, King County, Washington, No Opt. Call AAA 1,092,070
Unlimited Tax General Obligation and Refunding Bonds,
Series 1993, 5.750%, 12/01/12
1,360,000 Tacoma School District No. 409, King County, Washington, No Opt. Call Aaa 1,516,414
Unlimited Tax General Obligation Improvement and Refunding
Bonds, Series 1997, 6.000%, 12/01/10
1,000,000 Peninsula School District No. 401, Pierce County, Washington, No Opt. Call AAA 1,070,670
Unlimited Tax General Obligation Refunding Bonds, Series 1993,
5.500%, 12/01/08
1,000,000 The City of Renton, Washington, Limited Tax General Obligation 6/07 at 100 AAA 1,049,330
Bonds, General Purpose/Public Improvement Bonds,
Series 1997B, 5.750%, 12/01/17
1,500,000 Mukilteo School District No. 6, Snohomish County, Washington, No Opt. Call AAA 1,635,390
Unlimited Tax General Obligation and Refunding Bonds,
Series 1993, 5.700%, 12/01/12
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/General (continued)
$ 500,000 Edmonds School District No. 15, Snohomish County, Washington, No Opt. Call AA- $ 572,710
Unlimited Tax General Obligation Bonds, Series 1994,
6.500%, 12/01/08
980,000 Central Valley School District No.356, Spokane County, Washington, No Opt. Call AAA 419,254
Unlimited Tax Deferred Interest General Obligation Bonds,
Series 1998B, 0.000%, 12/01/15
2,000,000 State of Washington, General Obligation Bonds, Series 1994B, 5/04 at 100 AA+ 2,119,800
6.000%, 5/01/19
- ---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 3.6%
Seattle Indian Services Commission, Special Obligation Bonds,
Series 1994:
1,000,000 6.000%, 11/01/16 11/04 at 100 AA+ 1,067,740
750,000 6.150%, 11/01/24 11/04 at 100 AA+ 808,688
- ---------------------------------------------------------------------------------------------------------------------------------
Transportation - 7.9%
1,300,000 Port of Seattle, Washington, Revenue Bonds, Series 1996A, 9/06 at 101 AAA 1,324,492
5.500%, 9/01/21
1,000,000 Port of Vancouver, Clark County, Washington, Limited Tax General No Opt. Call AAA 1,090,520
Obligation Bonds, 1994 Series B, 6.000%, 12/01/04
(Alternative Minimum Tax)
1,675,000 Spokane Downtown Foundation, Parking Revenue Bonds, 8/08 at 102 BBB- 1,646,056
Series 1998 (River Park Square Project), 5.600%, 8/01/19
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 9.5%
1,000,000 Port of Seattle, Washington, Revenue Bonds, Series 1990A, 12/00 at 100 AA-*** 1,037,100
6.000%, 12/01/14 (Pre-refunded to 12/01/00)
900,000 City of Richland, Washington, Water and Sewer Improvement 4/03 at 101 AAA 960,444
Revenue Bonds, Series 1993, 5.625%, 4/01/12
(Pre-refunded to 4/01/03)
1,250,000 Washington Health Care Facilities Authority, Revenue Refunding 7/02 at 102 AAA 1,371,013
Bonds, Series 1992 (Franciscan Health System/Saint Clare
Hospital, Tacoma), 6.625%, 7/01/20 (Pre-refunded to 7/01/02)
1,400,000 Washington Health Care Facilities Authority, Revenue Bonds, 11/02 at 102 AAA 1,533,070
Series 1992 (Swedish Hospital Medical Center, Seattle),
6.300%, 11/15/22 (Pre-refunded to 11/15/02)
- ---------------------------------------------------------------------------------------------------------------------------------
Utilities - 14.3%
1,100,000 Public Utility District No. 1 of Klickitat County, Washington, 10/05 at 101 AAA 1,144,847
Electric Revenue Bonds, Series 1995, 5.650%, 10/01/15
1,000,000 Lewis County Public Utility District, Cowlitz Falls Hydroelectric 10/03 at 102 Aa1 1,016,220
Project, Revenue Refunding Bonds, Series 1993, 5.500%, 10/01/22
1,000,000 City of Seattle, Washington, Municipal Light and Power Revenue 10/06 at 102 AAA 1,032,180
Bonds, 5.625%, 10/01/21
500,000 The City of Seattle, Washington, Municipal Light and Power 8/02 at 102 AA 529,160
Revenue Bonds, Series 1992A, 5.750%, 8/01/12
1,385,000 Public Utility District No. 1 of Snohomish County, Washington, 1/04 at 102 A+ 1,451,757
Generation System Revenue Bonds, Series 1993B,
5.750%, 1/01/09 (Alternative Minimum Tax)
1,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/03 at 102 AAA 1,030,870
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17
1,000,000 Washington Public Power Supply System, Nuclear Project No. 3, No Opt. Call Aa1 1,170,350
Refunding Revenue Bonds, Series 1993B, 7.000%, 7/01/09
- ---------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 11.4%
1,050,000 City of Bellevue, King County, Washington, Water and Sewer 7/04 at 100 Aa2 1,122,377
Revenue Refunding Bonds, 1994, 5.875%, 7/01/09
1,035,000 Covington Water District, King County, Washington, Water 3/05 at 100 AAA 1,104,852
Improvement and Refunding Revenue Bonds, 1995,
6.050%, 3/01/20
800,000 Kitsap County, Washington, Sewer Revenue Bonds, Series 1996, 7/06 at 100 AAA 846,912
5.750%, 7/01/16
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer (continued)
$ 1,200,000 Sammamish Plateau Water and Sewer District, King County, 12/06 at 100 AAA $1,223,255
Washington, Water and Sewer Revenue Refunding Bonds, 1996,
5.500%, 12/01/16
500,000 The City of Seattle, Washington, Water System and Refunding 6/03 at 101 AA 492,879
Revenue Bonds, Series 1993, 5.250%, 12/01/23
1,000,000 Yakima-Tieton Irrigation District, Yakima County, Washington, 6/03 at 102 AAA 1,085,519
Refunding Revenue Bonds, Series 1992, 6.125%, 6/01/13
- ---------------------------------------------------------------------------------------------------------------------------------
$ 48,940,000 Total Investments - (cost $48,065,509) - 98.8% 50,897,382
=============
Other Assets Less Liabilities - 1.2% 626,923
-----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $51,524,305
=================================================================================================================
* 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.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
May 31, 1999
<CAPTION>
Connecticut Massachusetts Missouri Washington
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in municipal securities, at market value
(note 1) $111,127,619 $100,287,934 $45,754,676 $50,897,382
Cash 853,586 631,067 277,558 --
Receivables:
Interest 1,893,636 1,804,246 776,635 912,759
Investments sold 70,359 10,000 10,181 5,000
Other assets 14,539 12,848 2,846 1,282
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 113,959,739 102,746,095 46,821,896 51,816,423
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- -- -- 40,535
Accrued expenses:
Management fees (note 6) 62,893 56,675 25,833 28,568
Other 69,755 66,837 49,260 66,064
Preferred share dividends payable 8,395 7,453 5,258 6,148
Common share dividends payable 353,917 327,055 138,940 150,803
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 494,960 458,020 219,291 292,118
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $113,464,779 $102,288,075 $46,602,605 $51,524,305
====================================================================================================================================
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 5,205,565 4,639,787 2,154,389 2,320,051
====================================================================================================================================
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation value, divided by
Common shares outstanding) $ 14.44 $ 14.72 $ 14.20 $ 14.88
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year Ended May 31, 1999
<CAPTION>
Connecticut Massachusetts Missouri Washington
<S> <C> <C> <C> <C>
Investment Income (note 1) $6,204,897 $5,682,192 $2,545,658 $2,831,835
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 744,188 672,793 306,951 339,676
Preferred shares - auction fees 95,750 85,001 40,000 42,501
Preferred shares - dividend disbursing agent fees 10,001 10,001 10,001 10,001
Shareholders' servicing agent fees and expenses 15,999 8,218 7,125 2,955
Custodian's fees and expenses 51,174 41,803 33,998 33,877
Trustees' fees and expenses (note 6) 1,069 971 445 489
Professional fees 17,272 17,247 17,093 17,108
Shareholders' reports - printing and mailing expenses 34,932 38,078 21,390 20,824
Stock exchange listing fees 16,250 16,217 1,997 2,168
Investor relations expense 10,129 8,661 4,387 4,190
Other expenses 9,346 8,986 6,614 6,719
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,006,110 907,976 450,001 480,508
Custodian fee credit (note 1) (12,521) (4,299) (2,225) (1,279)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 993,589 903,677 447,776 479,229
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,211,308 4,778,515 2,097,882 2,352,606
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain from investment transactions
(notes 1 and 4) 179,160 62,570 144,162 147,567
Net change in unrealized appreciation or
depreciation of investments (546,826) (862,463) (635,348) (556,144)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (367,666) (799,893) (491,186) (408,577)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $4,843,642 $3,978,622 $1,606,696 $1,944,029
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
Connecticut Massachusetts
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/99 5/31/98 5/31/99 5/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 5,211,308 $ 5,159,370 $ 4,778,515 $ 4,891,388
Net realized gain from investment transactions
(notes 1 and 4) 179,160 422,013 62,570 671,439
Net change in unrealized appreciation or
depreciation of investments (546,826) 4,143,106 (862,463) 3,102,632
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 4,843,642 9,724,489 3,978,622 8,665,459
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (4,152,776) (4,108,452) (3,943,214) (3,905,877)
Preferred shareholders (1,019,710) (1,169,485) (935,926) (1,096,311)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (5,172,486) (5,277,937) (4,879,140) (5,002,188)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to shareholders due
to reinvestment of distributions 409,551 413,844 252,623 266,611
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 80,707 4,860,396 (647,895) 3,929,882
Net assets at the beginning of year 113,384,072 108,523,676 102,935,970 99,006,088
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $113,464,779 $113,384,072 $102,288,075 $102,935,970
===================================================================================================================================
Balance of undistributed net investment income
at the end of year $ 322,925 $ 284,103 $ 113,603 $ 214,228
===================================================================================================================================
<CAPTION>
Missouri Washington
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/99 5/31/98 5/31/99 5/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 2,097,882 $ 2,134,126 $ 2,352,606 $ 2,368,345
Net realized gain from investment transactions
(notes 1 and 4) 144,162 380,799 147,567 94,941
Net change in unrealized appreciation or
depreciation of investments (635,348) 1,267,040 (556,144) 2,195,317
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 1,606,696 3,781,965 1,944,029 4,658,603
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (1,643,003) (1,629,870) (1,800,360) (1,753,958)
Preferred shareholders (477,251) (526,508) (567,459) (596,423)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (2,120,254) (2,156,378) (2,367,819) (2,350,381)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to shareholders due
to reinvestment of distributions 180,843 85,411 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (332,715) 1,710,998 (423,790) 2,308,222
Net assets at the beginning of year 46,935,320 45,224,322 51,948,095 49,639,873
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $46,602,605 $46,935,320 $51,524,305 $51,948,095
- -----------------------------------------------------------------------------------------------------------------------------------
Balance of undistributed net investment income
at the end of year $ 134,510 $ 156,882 $ 90,415 $ 105,628
- -----------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<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), Nuveen Missouri
Premium Income Municipal Fund (NOM) and Nuveen Washington Premium Income
Municipal Fund (NPW). Connecticut and Massachusetts are traded on the New York
Stock Exchange while Missouri and Washington 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
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, 1999, there were no such outstanding purchase commitments in any of the
Funds.
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, 1999, 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 generally accepted accounting
principles. 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.
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 Washington
- --------------------------------------------------------------------------------
Number of Shares:
Series Th 1,532 1,360 640 680
================================================================================
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, 1999.
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. Actual results may differ
from those estimates.
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.
2. Fund Shares
Transactions in Common shares were as follows:
Connecticut Massachusetts
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/99 5/31/98 5/31/99 5/31/98
================================================================================
Shares issued to shareholders
due to reinvestment of
distributions 25,373 27,446 15,263 17,254
- --------------------------------------------------------------------------------
Missouri Washington
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
5/31/99 5/31/98 5/31/99 5/31/98
- --------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of
distributions 11,929 5,923 -- --
================================================================================
3. Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on July 1, 1999, to shareholders of record on
June 15, 1999, as follows:
Connecticut Massachusetts Missouri Washington
- --------------------------------------------------------------------------------
Dividend per share $.0680 $.0705 $.0645 $.0650
================================================================================
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,
1999, were as follows:
<TABLE>
<CAPTION>
Connecticut Massachusetts Missouri Washington
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $ 8,421,473 $11,751,705 $ 4,975,969 $ 3,051,276
Short-term municipal securities 6,500,000 14,350,000 3,300,000 300,000
Sales and Maturities:
Long-term municipal securities 8,747,905 11,250,590 4,544,519 2,759,045
Short-term municipal securities 6,500,000 14,650,000 3,600,000 500,000
==========================================================================================
</TABLE>
At May 31, 1999, 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, 1999, 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 Washington
- --------------------------------------------------------------------------------
Expiration year:
2003 $ 715,734 $ 552,941 $ 804,913 $322,363
2004 1,105,901 945,779 708,417 70,082
2005 847,914 195,761 -- --
- --------------------------------------------------------------------------------
Total $2,669,549 $1,694,481 $1,513,330 $392,445
================================================================================
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 1999, were as follows:
Connecticut Massachusetts Missouri Washington
- --------------------------------------------------------------------------------
Gross unrealized:
appreciation $5,674,457 $5,740,011 $2,471,155 $2,929,111
depreciation (249,796) (161,308) (104,065) (97,238)
- --------------------------------------------------------------------------------
Net unrealized appreciation $5,424,661 $5,578,703 $2,367,090 $2,831,873
================================================================================
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.
<TABLE>
7. Composition of Net Assets
At May 31, 1999, net assets consisted of:
<CAPTION>
Connecticut Massachusetts Missouri Washington
- -----------------------------------------------------------------------------------------------------------------------------------
<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 52,056 46,398 21,544 23,201
Paid-in surplus 72,034,686 64,243,852 29,592,791 31,971,261
Balance of undistributed net investment income 322,925 113,603 134,510 90,415
Accumulated net realized gain (loss) from investment transactions (2,669,549) (1,694,481) (1,513,330) (392,445)
Net unrealized appreciation of investments 5,424,661 5,578,703 2,367,090 2,831,873
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets $113,464,779 $102,288,075 $ 46,602,605 $ 51,524,305
===================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
===================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
Selected data for a Common share outstanding throughout each
year is as follows:
<CAPTION>
Investment Operations
------------------------------------------------
Net
Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
<S> <C> <C> <C> <C>
Connecticut
Year Ended 5/31:
1999 $14.49 $1.00 $ (.05) $ .95
1998 13.63 1.00 .89 1.89
1997 12.99 1.00 .60 1.60
1996 13.20 .98 (.21) .77
1995 12.45 .98 .74 1.72
<CAPTION>
Massachusetts
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.91 1.02 (.16) .86
1998 14.11 1.06 .83 1.89
1997 13.58 1.06 .53 1.59
1996 13.76 1.05 (.19) .86
1995 12.90 1.04 .84 1.88
<CAPTION>
Missouri
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.44 .97 (.22) .75
1998 13.68 .99 .78 1.77
1997 13.11 1.00 .55 1.55
1996 13.37 .96 (.30) .66
1995 12.35 .95 1.02 1.97
<CAPTION>
Washington
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 15.06 1.01 (.17) .84
1998 14.07 1.02 .99 2.01
1997 13.48 1.02 .58 1.60
1996 13.71 1.02 (.23) .79
1995 12.97 1.01 .77 1.78
<PAGE>
<CAPTION>
Less Distributions
----------------------------------------------------------------------------------------
Net Net
Investment Investment Capital Capital
Income Income Gains Gains
To Common To Preferred To Common To Preferred
Shareholders Shareholders+ Shareholders Shareholders+ Total
Connecticut
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 $(.80) $(.20) $-- $-- $(1.00)
1998 (.80) (.23) -- -- (1.03)
1997 (.76) (.20) -- -- (.96)
1996 (.73) (.25) -- -- (.98)
1995 (.74) (.23) -- -- (.97)
<CAPTION>
Massachusetts
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (.85) (.20) -- -- (1.05)
1998 (.85) (.24) -- -- (1.09)
1997 (.84) (.22) -- -- (1.06)
1996 (.80) (.24) -- -- (1.04)
1995 (.78) (.24) -- -- (1.02)
<CAPTION>
Missouri
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (.77) (.22) -- -- (.99)
1998 (.76) (.25) -- -- (1.01)
1997 (.73) (.25) -- -- (.98)
1996 (.67) (.25) -- -- (.92)
1995 (.69) (.26) -- -- (.95)
<CAPTION>
Washington
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (.78) (.24) -- -- (1.02)
1998 (.76) (.26) -- -- (1.02)
1997 (.75) (.26) -- -- (1.01)
1996 (.74) (.28) -- -- (1.02)
1995 (.77) (.27) -- -- (1.04)
<PAGE>
<CAPTION>
Total Returns
--------------------------
Based
Ending Based on
Net Ending on Net
Asset Market Market Asset
Value Value Value* Value*
<S> <C> <C> <C> <C>
Connecticut
Year Ended 5/31:
1999 $14.44 $16.7500 13.50% 5.22%
1998 14.49 15.5000 15.61 12.39
1997 13.63 14.1250 9.58 11.01
1996 12.99 13.6250 14.06 3.97
1995 13.20 12.6250 2.22 12.74
<CAPTION>
Massachusetts
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.72 16.0625 2.48 4.47
1998 14.91 16.5000 18.08 11.91
1997 14.11 14.7500 13.76 10.28
1996 13.58 13.7500 8.99 4.55
1995 13.76 13.3750 14.12 13.58
<CAPTION>
Missouri
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.20 14.1875 5.24 3.64
1998 14.44 14.1875 14.53 11.31
1997 13.68 13.0625 10.53 10.09
1996 13.11 12.5000 10.07 3.09
1995 13.37 12.0000 6.13 14.74
<CAPTION>
Washington
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.88 13.4375 4.10 3.97
1998 15.06 13.6250 15.26 12.64
1997 14.07 12.5000 12.94 10.16
1996 13.48 11.7500 7.44 3.75
1995 13.71 11.6250 .41 12.36
<PAGE>
<CAPTION>
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------
Before Credit
---------------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
<S> <C> <C> <C> <C> <C>
Connecticut
Year Ended 5/31:
1999 $113,465 1.32% 6.82% .88% 4.54%
1998 113,384 1.33 7.02 .88 4.61
1997 108,524 1.38 7.46 .89 4.79
1996 104,928 1.40 7.37 .89 4.71
1995 105,851 1.49 8.09 .92 4.99
<CAPTION>
Massachusetts
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 102,288 1.31 6.87 .88 4.61
1998 102,936 1.31 7.22 .88 4.81
1997 99,006 1.34 7.63 .88 4.99
1996 96,303 1.35 7.61 .88 4.95
1995 97,071 1.49 8.28 .94 5.20
<CAPTION>
Missouri
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 46,603 1.44 6.71 .95 4.44
1998 46,935 1.47 7.03 .97 4.60
1997 45,224 1.54 7.38 .99 4.74
1996 44,014 1.57 7.13 1.01 4.57
1995 44,566 1.75 7.88 1.08 4.86
<CAPTION>
Washington
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 51,524 1.36 6.67 .92 4.50
1998 51,948 1.36 6.92 .91 4.62
1997 49,640 1.43 7.38 .94 4.83
1996 48,266 1.44 7.37 .94 4.81
1995 48,812 1.64 7.97 1.04 5.04
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
After Credit**
-------------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total
Applicable Applicable Net Assets Net Assets Portfolio
to Common to Common Including Including Turnover
Shares++ Shares++ Preferred++ Preferred++ Rate
<S> <C> <C> <C> <C> <C>
Connecticut
Year Ended 5/31:
1999 1.30% 6.84% .87% 4.55% 7%
1998 1.33 7.02 .88 4.61 13
1997 1.38 7.46 .89 4.79 18
1996 1.40 7.37 .89 4.71 15
1995 1.49 8.09 .92 4.99 18
<CAPTION>
Massachusetts
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 1.30 6.88 .87 4.62 11
1998 1.31 7.22 .88 4.81 17
1997 1.34 7.63 .88 4.99 22
1996 1.35 7.61 .88 4.95 18
1995 1.49 8.28 .94 5.20 29
<CAPTION>
Missouri
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 1.43 6.72 .95 4.44 10
1998 1.47 7.03 .97 4.60 25
1997 1.54 7.38 .99 4.74 36
1996 1.57 7.13 1.01 4.57 34
1995 1.75 7.88 1.08 4.86 34
<CAPTION>
Washington
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 1.36 6.67 .92 4.50 5
1998 1.36 6.92 .91 4.62 10
1997 1.43 7.38 .94 4.83 11
1996 1.44 7.37 .94 4.81 20
1995 1.64 7.97 1.04 5.04 16
* Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gain 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 gain
distributions, if any, and changes in net asset value per share. Total
returns are not annualized.
** After custodian fee credit, where applicable (note 1).
+ 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.
</TABLE>
<PAGE>
Build Your Wealth Automatically
Sidebar text: 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.
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to
set up your reinvestment account.
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 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.
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 withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can 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
Year 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to thoroughly review all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the millennium.
Over the last 10 years, we have updated or replaced our trading, fund
management, and pricing systems at Nuveen - systems that directly affect our
investors and their financial advisers - to address Year 2000 concerns.
We continue to work closely with our transfer agent, custodian, firms through
whom we buy and sell portfolio securities, and other service partners to monitor
the Year 2000 readiness of their systems, while addressing other remaining
systems issues.
In addition, the Funds hold securities of issuers whose business operations
leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's
Year 2000 readiness as part of our initial and ongoing research of these
issuers. This is only one of the many factors considered in determining whether
to buy, sell, or continue holding a particular security.
We anticipate that all significant components of our Year 2000 review, repair,
and testing program will be complete by mid-1999. This includes appropriate
industry-wide testing of critical systems and receipt of satisfactory assurances
from critical service providers, vendors, and issuers regarding their Year 2000
readiness. We are also making Year 2000 contingency plans to guide recovery
efforts in the event that, despite our remediation attempts, Year 2000 issues
adversely affect the Funds. Although we cannot give complete assurance at this
time that the steps we take will be sufficient to prevent any problems that
would impact the Nuveen Exchange-Traded Funds, we can assure you that we will
take all reasonable steps to prevent disruption of the services provided by your
Fund.
The Board of Trustees of your Fund recently modified certain investment policies
of the Fund.
The Fund was formerly not permitted to invest more than 5% of its total assets
in Municipal Leases that contain "non-appropriation" clauses. In addition, your
Fund was not permitted to invest more than 10% of its total assets in Municipal
Leases and securities that are unmarketable, illiquid or not readily marketable.
The Municipal Lease market has matured since the Fund's inception, and
non-appropriation leases have become more liquid and widely accepted. The Nuveen
Exchange-Traded Fund Board has eliminated the restrictions noted above,
replacing them with requirements that the Funds limit investments in
non-appropriation Municipal Leases to those that meet one or more of six
criteria that indicate that the issuer will be motivated to continue to
appropriate monies to make the payments under the Municipal Lease.
The Board also eliminated the Fund's policy not to invest more than 5% of its
total assets in unsecured obligations of issuers which, together with their
predecessors, have been in operation for less than three years.
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, 1999. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors for Generations
Photo of: John Nuveen, Sr.
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and tax-free income funds, along with our defined portfolios and
private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
LOGO:
NUVEEN
helping investors sustain the wealth of a lifetime(tm).
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FAN-3-5-99
