nxe.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21157

Nuveen Arizona Dividend Advantage Municipal Fund 3
(Exact name of registrant as specified in charter)

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)

Registrant's telephone number, including area code: (312) 917-7700

Date of fiscal year end: February 28

Date of reporting period: August 31, 2011

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.


 
 
 


ITEM 1. REPORTS TO STOCKHOLDERS.
 
 
 
 
 
 
 
 

 
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Table of Contents
 
   
Chairman’s Letter to Shareholders 
4
Portfolio Managers’ Comments 
5
Common Share Dividend and Share Price Information 
12
Performance Overviews 
14
Portfolios of Investments 
19
Statement of Assets and Liabilities 
41
Statement of Operations 
42
Statement of Changes in Net Assets 
43
Statement of Cash Flows 
46
Financial Highlights 
48
Notes to Financial Statements 
57
Annual Investment Management Agreement Approval Process 
70
Reinvest Automatically, Easily and Conveniently 
78
Glossary of Terms Used in this Report 
80
Other Useful Information 
83
 
 
 
 
 
 
Chairman’s
Letter to Shareholders
 
 
 
Dear Shareholders,
 
The global economy continues to be weighed down by an unusual combination of pressures facing the larger developed economies. Japanese leaders continue to work through the economic aftereffects of the March 2011 earthquake and tsunami. Political leaders in Europe and the U.S. have resolved some of the near term fiscal problems, but the financial markets are not convinced that these leaders are able to address more complex longer term fiscal issues. Despite improved earnings and capital increases, the largest banks in these countries continue to be vulnerable to deteriorating mortgage portfolios and sovereign credit exposure, adding another source of uncertainty to the global financial system.
 
In the U.S., recent economic statistics indicate that the economic recovery may be losing momentum. Consumption, which represents about 70% of the gross domestic product, faces an array of challenges from seemingly intractable declines in housing values, increased energy costs and limited growth in the job market. The failure of Congress and the administration to agree on the debt ceiling increase on a timely basis and the deep divisions between the political parties over fashioning a balanced program to address growing fiscal imbalances that led to the recent S&P ratings downgrade add considerable uncertainty to the domestic economic picture.
 
On a more positive note, corporate earnings continue to hold up well and the municipal bond market is recovering from recent weakness as states and municipalities implement various programs to reduce their budgetary deficits. In addition, the Federal Reserve System has made it clear that it stands ready to take additional steps should the economic recovery falter. However, there are concerns that the Fed is approaching the limits of its resources to intervene in the economy.
 
These perplexing times highlight the importance of professional investment management. Your Nuveen investment team is working hard to develop an appropriate response to increased risk, and they continue to seek out opportunities created by stressful markets using proven investment disciplines designed to help your Fund achieve its investment objectives. On your behalf, we monitor their activities to assure that they maintain their investment disciplines.
 
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
 
Sincerely,
 
 
 
Robert P. Bremner
Chairman of the Board
October 21, 2011
 
 
4 Nuveen Investments
 
 
 
 
 
Portfolio Managers’ Comments
 
 
Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ)
Nuveen Arizona Dividend Advantage Municipal Fund (NFZ)
Nuveen Arizona Dividend Advantage Municipal Fund 2 (NKR)
Nuveen Arizona Dividend Advantage Municipal Fund 3 (NXE)
Nuveen Texas Quality Income Municipal Fund (NTX)
 
 
Portfolio managers Michael Hamilton and Daniel Close review key investment strategies and the six-month performance of these five Nuveen Funds. Michael, who has 22 years of investment experience, assumed portfolio management responsibility for the Arizona Funds in January 2011. An eleven-year veteran of Nuveen, Dan has managed NTX since 2007.
 
What key strategies were used to manage the Arizona and Texas Funds during the six-month reporting period ended August 31, 2011?
 
During this reporting period, municipal bond prices generally rallied as yields declined across the municipal curve. The relative decline in yields was attributable in part to the continued depressed level of municipal bond issuance. Tax-exempt volume, which had been limited in 2010 by issuers’ extensive use of taxable Build America Bonds (BABs), continued to drift lower in 2011. Even though BABs were no longer an option for issuers (the BAB program expired at the end of 2010), some borrowers had accelerated issuance into 2010 in order to take advantage of the program’s favorable terms before its termination, fulfilling their capital program borrowing needs well into 2012. This reduced the need for many borrowers to come to market with new issues during this period. For the six months ended August 31, 2011, national municipal issuance was down 34% compared with the same period in 2010, while municipal issuance in Arizona and Texas declined 60% and 27%, respectively.
 
Despite the constrained issuance on tax-exempt municipal bonds and relatively lower yields, we continued to take a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. During this period, NTX found value in water and sewer bonds, local general and limited tax obligation credits and Texas appropriations bonds. The Texas Fund also purchased gas prepayment bonds, which are used by municipal utilities to prepay for gas supplies to be delivered over a long period of time. In the Arizona Funds, our focus was on buying bonds with wider credit spreads where we believed we were being compensated for perceived risk. This included some AA rated, insured school district credits that offered higher yields due to the fact that this segment was out of favor with the market. For the most part, all of these Funds focused on purchasing longer bonds in order to take advantage of more attractive yields at the longer end of the municipal yield curve.
 
Cash for new purchases during this period was generated largely by the proceeds from bond calls and maturing bonds, which we worked to redeploy to keep the Funds fully invested. In addition, the Arizona Funds sold pre-refunded bonds and credits with shorter call dates to generate additional cash for funding new purchases. This was particularly true in NKR, where we worked to reduce the Fund’s overweighting in bonds with shorter maturities.
 
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
 
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
 
 
Nuveen Investments 5
 
 
 
 
 
As of August 31, 2011, all five of these Funds continued to use inverse floating rate securities. We employ inverse floaters as a form of leverage for a variety of reasons, including duration management, income enhancement and total return enhancement.
 
How did the Funds perform?
 
Individual results for these Nuveen Arizona and Texas Funds, as well as relevant index and peer group information, are presented in the accompanying table.
 
Average Annual Total Returns on Common Share Net Asset Value* 
      
For periods ended 8/31/11 
        
 
6-Month 
1-Year 
5-Year 
10-Year 
Arizona Funds 
        
NAZ 
8.30% 
2.35% 
4.47% 
4.87% 
NFZ 
9.58% 
2.61% 
4.06% 
5.41% 
NKR 
7.60% 
3.18% 
4.53% 
N/A 
NXE 
8.27% 
3.72% 
4.69% 
N/A 
Standard & Poor’s (S&P) Arizona Municipal Bond Index** 
6.15% 
2.52% 
4.82% 
4.96% 
Standard & Poor’s (S&P) National Municipal Bond Index** 
6.56% 
2.62% 
4.60% 
4.93% 
Lipper Other States Municipal Debt Classification Average** 
8.63% 
1.97% 
4.44% 
5.43% 
Texas Fund 
        
NTX 
8.04% 
2.48% 
5.00% 
5.48% 
Standard & Poor’s (S&P) Texas Municipal Bond Index** 
6.40% 
2.78% 
4.95% 
5.17% 
Standard & Poor’s (S&P) National Municipal Bond Index** 
6.56% 
2.62% 
4.60% 
4.93% 
Lipper Other States Municipal Debt Classification Average** 
8.63% 
1.97% 
4.44% 
5.43% 
 
 
For the six months ended August 31, 2011, the cumulative returns on common share net asset value (NAV) for all four Arizona Funds exceeded the return for the Standard & Poor’s (S&P) Arizona Municipal Bond Index and NTX outperformed the Standard & Poor’s (S&P) Texas Municipal Bond Index. All of the Funds also outperformed the Standard & Poor’s (S&P) National Municipal Bond Index. For the six-month period, NFZ exceeded the return for the Lipper Other States Municipal Debt Classification Average, while the remaining four Funds trailed the Lipper classification. Shareholders should note that the performance of the Lipper Other States classification represents the overall average of returns for funds from ten different states with a wide variety of municipal market conditions, which may make direct comparisons less meaningful.
 
Key management factors that influenced the Funds’ returns during this period included duration and yield curve positioning, credit exposure and sector allocation. In addition, the use of leverage was an important positive factor during this period. The impact of leverage is discussed in more detail later in this report.
 
 
During this period, as yields across the municipal yield curve declined, municipal bonds with longer maturities generally outperformed the shorter maturity categories,
 
 
 
 
  Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares.
 
  For additional information, see the individual Performance Overview for your Fund in this report.
 
* 6-month returns are cumulative; all other returns are annualized.
 
**Refer to the Glossary of Terms Used in this Report for definitions.
 
 
6 Nuveen Investments
 
 
 
 
 
 
with credits at the longest end of the yield curve posting the strongest returns. Overall, duration and yield curve positioning was a positive contributor to the performance of NAZ, NFZ, NKR, NXE and NTX. All five of these Funds were underweighted in the shorter parts of the yield curve that produced weaker returns and had correspondingly heavier exposures to the outperforming longer segments. Of the five, NFZ was the most advantageously positioned for the market environment of this period, with the longest duration.
 
Holdings that generally made positive contributions to the Funds’ returns during this period included zero coupon bonds and health care, transportation and education credits. The special tax, water and sewer, and industrial development revenue sectors also outperformed the municipal market as a whole, while general obligation (GO) and other tax-supported bonds generally performed in line with the market during this period. Although NTX’s transportation holdings were positive for performance, this was offset to some degree by negative performance from the Fund’s local GO allocations. In the Arizona Funds, our holdings of limited tax obligation bonds issued for the Maricopa County Stadium District, which owns Chase Field in Phoenix, performed poorly. These bonds are backed by revenues from a car rental surcharge, which were negatively impacted by the decline in Arizona tourism and the drop in business and convention travel. Holdings of the stadium bonds detracted from the performance of NAZ and NKR, while NFZ and NXE did not own any of these bonds. Overall, the Arizona Funds’ utilities holdings were helpful for performance, with NFZ, NAZ and NXE benefiting the most.
 
Pre-refunded bonds, which are often backed by U.S. Treasury securities, were among the poorest performing market segments during this period. The underperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. Among these five Funds, NFZ had the smallest allocation of pre-refunded bonds, which lessened the negative impact of these holdings, while an overweighting in pre-refunded bonds detracted from the performance of NTX.
 
Credit exposure played a smaller role in performance during these six months, as bonds rated BBB, A and AA typically outperformed those rated AAA. This outperformance was due in part to the higher yields they offered investors looking for income. In this environment, the Funds’ performance generally benefited from their allocations to lower quality credits.
 
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
 
One important factor impacting the returns of all these Funds relative to the comparative indexes was the Funds’ use of leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional
 
 
Nuveen Investments 7
 
 
 
 
 
income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when the prices of securities held by a Fund generally are rising. Leverage made a positive contribution to the performance of these Funds over this reporting period.
 
RECENT DEVELOPMENTS REGARDING THE FUNDS’ REDEMPTION OF AUCTION RATE PREFERRED SHARES
 
Shortly after their respective inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create structural leverage. As noted in past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely nonexistent since late February 2008. This means that these auctions have “failed to clear,” and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares continued to receive distributions at the “maximum rate” applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short term rates at multi-generational lows, those maximum rates also have been low.
 
One continuing implication for common shareholders from the auction failures is that each Fund’s cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund’s common share earnings likely have been incrementally lower at times than they otherwise might have been.
 
As noted in past shareholder reports, the Nuveen funds’ Board of Directors/Trustees authorized several methods that can be used separately or in combination to refinance a portion of the Nuveen funds’ outstanding ARPS. Some funds have utilized tender option bonds (TOBs), also known as inverse floating rate securities, for leverage purposes. The amount of TOBs that a fund may use varies according to the composition of each fund’s portfolio. Some funds have a greater ability to use TOBs than others. Some funds have issued Variable Rate Demand Preferred (VRDP) Shares or Variable MuniFund Term Preferred (VMTP) Shares, which are floating rate forms of preferred stock with a mandatory term redemption. Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form of preferred stock with a mandatory redemption period of three to five years.
 
 
8 Nuveen Investments
 
 
 
 
 
During 2010 and 2011, certain Nuveen leveraged closed-end funds (including NXE) received a demand letter from a law firm on behalf of purported holders of common shares of each such fund, alleging that Nuveen and the funds’ officers and Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of the funds’ ARPS. In response, the Board established an ad hoc Demand Committee consisting of certain of its disinterested and independent Board members to investigate the claims. The Demand Committee retained independent counsel to assist it in conducting an extensive investigation. Based upon its investigation, the Demand Committee found that it was not in the best interests of each fund or its shareholders to take the actions suggested in the demand letters, and recommended that the full Board reject the demands made in the demand letters. After reviewing the findings and recommendation of the Demand Committee, the full Board of each fund unanimously adopted the Demand Committee’s recommendation.
 
Subsequently, 33 of the funds that received demand letters (including NXE) were named in a consolidated complaint as nominal defendants in a putative shareholder derivative action captioned Martin Safier, et al. v. Nuveen Asset Management, et al. that was filed in the Circuit Court of Cook County, Illinois, Chancery Division (the “Cook County Chancery Court”) on February 18, 2011 (the “Complaint”). The Complaint, filed on behalf of purported holders of each fund’s common shares, also name Nuveen Fund Advisors, Inc. as a defendant, together with current and former Officers and interested Director/Trustees of each of the funds (together with the nominal defendants, collectively, the “Defendants”). The Complaint contains the same basic allegations contained in the demand letters. The suits seek a declaration that the Defendants have breached their fiduciary duties, an order directing the Defendants not to redeem any ARPS at their liquidation value using fund assets, indeterminate monetary damages in favor of the funds and an award of plaintiffs’ costs and disbursements in pursuing the action. The court has heard arguments on the funds’ motion to dismiss the suit and has taken the matter under advisement. Nuveen Fund Advisors, Inc. believes that the Complaint is without merit, and is defending vigorously against these charges.
 
As of August 31, 2011, each of the Funds has redeemed all of their outstanding ARPS at liquidation value.
 
As of August 31, 2011, the Funds have issued and outstanding MTP Shares and VMTP Shares as shown in the accompanying tables.
 
MTP Shares 
        
   
MTP Shares Issued 
Annual 
NYSE 
Fund 
Series 
at Liquidation Value 
Interest Rate 
Ticker 
NFZ 
2015 
$11,100,000 
2.05% 
NFZ PrC 
NKR 
2015 
$18,725,000 
2.05% 
NKR PrC 
NXE 
2016 
$20,846,000 
2.90% 
NXE PrC 
NTX 
2015 
$70,920,000 
2.30% 
NTX PrC 
 
 
Nuveen Investments 9
 
 
 
 

 
VMTP Shares 
    
 
VMTP 
VMTP Shares Issued 
Fund 
Series 
at Liquidation Value 
NAZ 
2014 
$28,000,000 
 
(Refer to Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies and Footnote 4 – Fund Shares for further details on MTP and VMTP Shares.)
 
As of October 5, 2010, after the close of this reporting period, all 84 of the Nuveen closed-end municipal funds that had issued ARPS, approximately $11.0 billion, have redeemed at liquidation value all of these shares.
 
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.
 
Regulatory Matters
 
During May 2011, Nuveen Securities, LLC, known as Nuveen Investments, LLC, prior to April 30, 2011, entered into a settlement with the Financial Industry Regulatory Authority (FINRA) with respect to certain allegations regarding Nuveen-sponsored closed-end fund ARPS marketing brochures. As part of this settlement, Nuveen Securities, LLC neither admitted to nor denied FINRA’s allegations. Nuveen Securities, LLC is the broker-dealer subsidiary of Nuveen Investments.
 
The settlement with FINRA concludes an investigation that followed the widespread failure of auctions for ARPS and other auction rate securities, which generally began in mid-February 2008. In the settlement, FINRA alleged that certain marketing materials provided by Nuveen Securities, LLC were false and misleading. Nuveen Securities, LLC agreed to a censure and the payment of a $3 million fine.
 
RISK CONSIDERATIONS
 
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:
 
Investment Risk. The possible loss of the entire principal amount that you invest.
 
Price Risk. Shares of closed-end investment companies like these Funds frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
 
 
10 Nuveen Investments
 
 
 
 
 
Leverage Risk. Each Fund’s use of leverage creates the possibility of higher volatility for the Fund’s per share NAV, market price, distributions and returns. There is no assurance that a Fund’s leveraging strategy will be successful.
 
Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.
 
Issuer Credit Risk. This is the risk that a security in a Fund’s portfolio will fail to make dividend or interest payments when due.
 
Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.
 
Reinvestment Risk. If market interest rates decline, income earned from a Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.
 
Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing a Fund to reinvest in lower-yielding securities.
 
 
Nuveen Investments 11
 
 
 
 
 
 
Common Share Dividend and Share Price Information
 
 
The monthly dividends of all five Funds in this report remained stable throughout the six-month reporting period ended August 31, 2011.
 
All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund’s past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund’s NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of August 31, 2011, all of the Funds in this report had a positive UNII balance, based upon our best estimate, for tax purposes and a positive UNII balance for financial reporting purposes.
 
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
 
As of August 31, 2011, and since the inception of the Funds’ repurchase programs, NFZ, NKR and NXE have cumulatively repurchased and retired their outstanding common shares as shown in the accompanying table. Since the inception of the Funds’ repurchase program, NAZ and NTX have not repurchased any of their outstanding common shares.
 
 
Common Shares
    
% of Outstanding
  
Fund 
Repurchased and Retired
    
Common Shares
  
NAZ 
   —       —  
NFZ 
   2,500       0.2 % 
NKR 
   800       0.0 %* 
NXE 
   1,600       0.1 % 
NTX 
   —       —  
* Rounds to less than 0.1%. 
              
 
During the six-month reporting period, NFZ, NKR and NXE did not repurchase any of their outstanding common shares.
 
 
12 Nuveen Investments
 
 
 
 
 
As of August 31, 2011, the Funds’ common share prices were trading at (+)premiums or (-)discounts to their common share NAVs as shown in the accompanying table.
 
 
8/31/11 
Six-Month Average 
Fund 
(+)Premium/(-)Discount 
(+)Premium/(-)Discount 
NAZ 
(-)7.02% 
(-) 8.17% 
NFZ 
(-)8.32% 
(-)8.63% 
NKR 
(-)8.25% 
(-)9.83% 
NXE 
(-)8.96% 
(-)10.33% 
NTX 
(+)7.77% 
(+)4.64% 
 
 
Nuveen Investments 13
 
 
 
 

 
     
 
NAZ 
Nuveen Arizona 
   
Premium Income 
 
Performance 
Municipal Fund, Inc. 
 
OVERVIEW 
  
   
             as of August 31, 2011 
 
 
Credit Quality (as a % of total investments)2,3
 
 
 
 
 
Fund Snapshot 
    
Common Share Price 
  
$12.98 
Common Share Net Asset Value (NAV) 
$13.96 
Premium/(Discount) to NAV 
  
-7.02% 
Market Yield 
  
5.78% 
Taxable-Equivalent Yield1 
  
8.41% 
Net Assets Applicable to Common Shares ($000) 
$62,427 
 
Leverage 
    
Structural Leverage 
  
30.96% 
Effective Leverage 
  
32.56% 
 
Average Annual Total Return 
    
(Inception 11/19/92) 
    
 
On Share Price 
On NAV 
6-Month (Cumulative) 
8.50% 
8.30% 
1-Year 
0.38% 
2.35% 
5-Year 
4.17% 
4.47% 
10-Year 
2.97% 
4.87% 
 
Portfolio Composition3 
    
(as a % of total investments) 
    
Tax Obligation/Limited 
  
25.7% 
Utilities 
  
17.4% 
Health Care 
  
15.9% 
Water and Sewer 
  
14.9% 
Education and Civic Organizations 
  
11.5% 
Tax Obligation/General 
  
8.3% 
U.S. Guaranteed 
  
5.5% 
Other 
  
0.8% 
 
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1     
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.3%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2     
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3     
Holdings are subject to change.
 
14 Nuveen Investments
 
 
 
 

 
   
NFZ
Nuveen Arizona
Dividend Advantage
 
Performance
Municipal Fund
OVERVIEW 
  
 
             as of August 31, 2011 
 
 
 
Fund Snapshot 
    
Common Share Price 
  
$13.01 
Common Share Net Asset Value (NAV) 
$14.19 
Premium/(Discount) to NAV 
  
-8.32% 
Market Yield 
  
5.95% 
Taxable-Equivalent Yield1 
  
8.66% 
Net Assets Applicable to Common Shares ($000) 
$21,974 
 
Leverage 
    
Structural Leverage 
  
33.56% 
Effective Leverage 
  
36.77% 
 
Average Annual Total Return 
    
(Inception 1/30/01) 
    
 
On Share Price 
On NAV 
6-Month (Cumulative) 
10.46% 
9.58% 
1-Year 
-0.05% 
2.61% 
5-Year 
1.28% 
4.06% 
10-Year 
3.81% 
5.41% 
 
Portfolio Composition3 
    
(as a % of total investments) 
    
Tax Obligation/Limited 
  
31.4% 
Utilities 
  
20.4% 
Health Care 
  
14.1% 
Tax Obligation/General 
  
12.9% 
Water and Sewer 
  
9.2% 
Education and Civic Organizations 
  
8.2% 
Other 
  
3.8% 
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1     
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.3%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2     
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3     
Holdings are subject to change.
 
Nuveen Investments 15
 
 
 
 
 

     
 
NKR 
Nuveen Arizona 
   
Dividend Advantage 
 
Performance 
Municipal Fund 2 
 
OVERVIEW 
  
   
             as of August 31, 2011 
 
 
 
 
Fund Snapshot 
    
Common Share Price 
  
$13.35 
Common Share Net Asset Value (NAV) 
$14.55 
Premium/(Discount) to NAV 
  
-8.25% 
Market Yield 
  
6.02% 
Taxable-Equivalent Yield1 
  
8.76% 
Net Assets Applicable to Common Shares ($000) 
$35,500 
 
Leverage 
    
Structural Leverage 
  
34.53% 
Effective Leverage 
  
36.12% 
 
Average Annual Total Return 
    
(Inception 3/25/02) 
    
 
On Share Price 
On NAV 
6-Month (Cumulative) 
8.75% 
7.60% 
1-Year 
0.47% 
3.18% 
5-Year 
2.48% 
4.53% 
Since Inception 
4.62% 
5.93% 
 
Portfolio Composition3 
    
(as a % of total investments) 
    
Tax Obligation/Limited 
  
32.4% 
Health Care 
  
21.0% 
Tax Obligation/General 
  
20.2% 
Water and Sewer 
  
9.0% 
Education and Civic Organizations 
  
6.9% 
Utilities 
  
5.6% 
Other 
  
4.9% 
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1     
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.3%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2     
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3     
Holdings are subject to change.
 
16 Nuveen Investments
 
 
 
 

 
   
NXE
Nuveen Arizona
Dividend Advantage
 
Performance
Municipal Fund 3
OVERVIEW 
  
 
             as of August 31, 2011 
 
 
 
 
Fund Snapshot 
    
Common Share Price 
  
$12.91 
Common Share Net Asset Value (NAV) 
$14.18 
Premium/(Discount) to NAV 
  
-8.96% 
Market Yield 
  
5.86% 
Taxable-Equivalent Yield1 
  
8.53% 
Net Assets Applicable to Common Shares ($000) 
$43,474 
 
Leverage 
    
Structural Leverage 
  
32.41% 
Effective Leverage 
  
34.77% 
 
Average Annual Total Return 
    
(Inception 9/25/02) 
    
 
On Share Price 
On NAV 
6-Month (Cumulative) 
8.68% 
8.27% 
1-Year 
1.10% 
3.72% 
5-Year 
4.29% 
4.69% 
Since Inception 
3.85% 
5.21% 
 
Portfolio Composition3 
    
(as a % of total investments) 
    
Tax Obligation/Limited 
  
25.9% 
Health Care 
  
23.2% 
Education and Civic Organizations 
  
12.9% 
Utilities 
  
11.1% 
Water and Sewer 
  
10.9% 
Tax Obligation/General 
  
7.6% 
Other 
  
8.4% 
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1     
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.3%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2     
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3     
Holdings are subject to change.
 
Nuveen Investments 17
 
 
 
 
 
 
     
 
NTX 
Nuveen Texas 
   
Quality Income 
 
Performance 
Municipal Fund 
 
OVERVIEW 
  
   
             as of August 31, 2011 
 
 
 
     
Fund Snapshot 
    
Common Share Price 
  
$15.96 
Common Share Net Asset Value (NAV) 
$14.81 
Premium/(Discount) to NAV 
  
7.77% 
Market Yield 
  
5.38% 
Taxable-Equivalent Yield1 
  
7.47% 
Net Assets Applicable to Common Shares ($000) 
$141,765 
 
Leverage 
    
Structural Leverage 
  
33.35% 
Effective Leverage 
  
34.56% 
 
Average Annual Total Return 
    
(Inception 10/17/91) 
    
 
On Share Price 
On NAV 
6-Month (Cumulative) 
8.15% 
8.04% 
1-Year 
1.11% 
2.48% 
5-Year 
7.26% 
5.00% 
10-Year 
6.71% 
5.48% 
 
Portfolio Composition4 
    
(as a % of total investments) 
    
Tax Obligation/General 
  
28.5% 
Utilities 
  
11.1% 
U.S. Guaranteed 
  
10.9% 
Water and Sewer 
  
10.4% 
Health Care 
  
9.4% 
Transportation 
  
8.1% 
Tax Obligation/Limited 
  
7.6% 
Education and Civic Organizations 
  
6.7% 
Other 
  
7.3% 
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1     
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to invest- ments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2     
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3     
The Fund paid shareholders capital gains and net ordinary income distributions in December 2010 of $0.0067 per share.
4     
Holdings are subject to change.
 
18 Nuveen Investments
 
 
 
 
 
           
 
Nuveen Arizona Premium Income Municipal Fund, Inc. 
      
NAZ 
Portfolio of Investments 
      
   
August 31, 2011 (Unaudited) 
  
 
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Consumer Staples – 1.1% (0.8% of Total Investments) 
      
$ 750 
  
Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, 
5/12 at 100.00 
BBB 
$ 699,480 
   
Series 2002, 5.375%, 5/15/33 
      
   
Education and Civic Organizations – 16.1% (11.5% of Total Investments) 
      
2,500 
  
Arizona Higher Education Loan Authority, Student Loan Revenue Bonds, Series 2007B, Auction 
3/12 at 100.00 
A
1,924,925 
   
Rate Securities, 0.508%, 11/01/41 (Alternative Minimum Tax) (4) 
      
1,000 
  
Arizona State University, System Revenue Bonds, Series 2002, 5.000%, 7/01/25 – FGIC Insured 
7/12 at 100.00 
AA 
1,030,590 
   
Arizona State University, System Revenue Bonds, Series 2005: 
      
1,455 
  
5.000%, 7/01/20 – AMBAC Insured 
7/15 at 100.00 
Aa3 
1,550,885 
750 
  
5.000%, 7/01/21 – AMBAC Insured 
7/15 at 100.00 
Aa3 
793,583 
755 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, 
5/22 at 100.00 
A– 
760,549 
   
Refunding Series 2007, 5.000%, 5/15/31 
      
1,600 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, 
5/20 at 100.00 
A– 
1,563,424 
   
Refunding Series 2010, 5.125%, 5/15/40 
      
200 
  
Pima County Industrial Development Authority, Arizona, Education Revenue Bonds, Paradise 
6/19 at 100.00 
BBB– 
174,250 
   
Education Center Project, Series 2010, 6.100%, 6/01/45 
      
1,500 
  
Tempe Industrial Development Authority, Arizona, Lease Revenue Bonds, Arizona State University 
7/13 at 100.00 
N/R 
1,404,885 
   
Foundation Project, Series 2003, 5.000%, 7/01/34 – AMBAC Insured 
      
825 
  
Yavapai County Industrial Development Authority, Arizona, Charter School Revenue Bonds, 
3/21 at 100.00 
BB+ 
852,143 
   
Arizona Agribusiness and Equine Center Charter School, Series 2011, 7.875%, 3/01/42 
      
10,585 
  
Total Education and Civic Organizations 
    
10,055,234 
   
Health Care – 22.3% (15.9% of Total Investments) 
      
1,430 
  
Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 
1/17 at 100.00 
AA– 
1,474,416 
   
2007A, 5.000%, 1/01/25 
      
885 
  
Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 
1/17 at 100.00 
AA– 
616,518 
   
2007B, 1.059%, 1/02/37 
      
3,470 
  
Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 
1/18 at 100.00 
AA– 
3,572,434 
   
2008D, 5.500%, 1/01/38 
      
675 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health 
12/15 at 100.00 
BBB 
579,926 
   
Network, Series 2005B, 5.000%, 12/01/37 
      
1,110 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health 
12/17 at 100.00 
BBB 
932,256 
   
Network, Series 2007, 5.000%, 12/01/42 
      
2,150 
  
Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds, 
7/14 at 100.00 
A
2,216,693 
   
Catholic Healthcare West, Series 2004A, 5.375%, 7/01/23 
      
2,900 
  
Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds, 
7/17 at 100.00 
A
2,917,139 
   
Catholic Healthcare West, Series 2007A, 5.250%, 7/01/32 
      
210 
  
Maricopa County Industrial Development Authority, Arizona, Hospital Revenue Bonds, Mayo Clinic 
11/11 at 100.00 
AA 
210,097 
   
Hospital, Series 1998, 5.250%, 11/15/37 
      
515 
  
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities 
11/11 at 100.00 
AA+ 
520,114 
   
Financing Authority, Hospital Revenue Bonds, Hospital de la Concepcion, Series 2000A, 
      
   
6.375%, 11/15/15 
      
   
Show Low Industrial Development Authority, Arizona, Hospital Revenue Bonds, Navapache Regional 
      
   
Medical Center, Series 2005: 
      
525 
  
5.000%, 12/01/25 – RAAI Insured 
12/15 at 100.00 
BBB+ 
497,963 
435 
  
5.000%, 12/01/30 – RAAI Insured 
12/15 at 100.00 
BBB+ 
398,221 
14,305 
  
Total Health Care 
    
13,935,777 
 
 
Nuveen Investments 19
 
 
 
 

   
 
Nuveen Arizona Premium Income Municipal Fund, Inc. (continued) 
NAZ 
Portfolio of Investments August 31, 2011 (Unaudited) 
 
           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Tax Obligation/General – 11.7% (8.3% of Total Investments) 
      
$ 1,265 
  
Gila County Unified School District 10 Payson, Arizona, School Improvement Bonds, Project 
7/18 at 100.00 
Aa3 
$ 1,385,453 
   
2006, Series 2008B, 5.750%, 7/01/28 
      
1,200 
  
Maricopa County Unified School District 95 Queen Creek, Arizona, General Obligation Bonds, 
7/18 at 100.00 
Aa3 
1,267,764 
   
Series 2008, 5.000%, 7/01/27 – AGM Insured 
      
515 
  
Pima County Continental Elementary School District 39, Arizona, General Obligation Bonds, 
7/21 at 100.00 
AA+ 
559,388 
   
Series 2011A, 2.000%, 7/01/30 – AGM Insured 
      
3,530 
  
Pinal County Unified School District 1, Florence, Arizona, General Obligation Bonds, Series 
7/18 at 100.00 
A
3,762,027 
   
2008C, 5.250%, 7/01/28 
      
330 
  
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2002A, 5.375%, 7/01/28 
11/11 at 100.00 
Baa1 
329,987 
6,840 
  
Total Tax Obligation/General 
    
7,304,619 
   
Tax Obligation/Limited – 36.2% (25.7% of Total Investments) 
      
327 
  
Estrella Mountain Ranch Community Facilities District, Goodyear, Arizona, Special Assessment 
7/12 at 100.00 
N/R 
330,103 
   
Lien Bonds, Series 2001A, 7.875%, 7/01/25 
      
3,000 
  
Glendale Western Loop 101 Public Facilities Corporation, Arizona, Third Lien Excise Tax 
1/14 at 100.00 
AA 
3,105,090 
   
Revenue Bonds, Series 2008B, 6.250%, 7/01/38 
      
1,280 
  
Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006-1, 5.000%, 
8/16 at 100.00 
AA– 
1,353,139 
   
8/01/22 – NPFG Insured 
      
740 
  
Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006A, 5.000%, 
8/16 at 100.00 
AA– 
776,682 
   
8/01/23 – NPFG Insured 
      
1,125 
  
Marana Municipal Property Corporation, Arizona, Municipal Facilities Revenue Bonds, Series 
1/12 at 100.00 
AA 
1,127,891 
   
2008B, 5.125%, 7/01/28 
      
575 
  
Marana Municipal Property Corporation, Arizona, Revenue Bonds, Series 2003, 5.000%, 7/01/28 – 
7/13 at 100.00 
AA 
586,621 
   
AMBAC Insured 
      
1,426 
  
Marana, Arizona, Tangerine Farms Road Improvement District Revenue Bonds, Series 2006, 
7/16 at 100.00 
A2 
1,443,297 
   
4.600%, 1/01/26 
      
3,400 
  
Maricopa County Stadium District, Arizona, Revenue Refunding Bonds, Series 2002, 5.375%, 
6/12 at 100.00 
N/R 
3,151,732 
   
6/01/18 – AMBAC Insured 
      
3,400 
  
Mesa, Arizona, Street and Highway User Tax Revenue Bonds, Series 2005, 5.000%, 7/01/24 – 
7/15 at 100.00 
AA+ 
3,575,066 
   
AGM Insured 
      
1,140 
  
Pinetop Fire District of Navajo County, Arizona, Certificates of Participation, Series 2008, 
6/16 at 102.00 
A3 
1,170,689 
   
7.750%, 6/15/29 
      
265 
  
Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding 
7/12 at 100.00 
Baa1 
265,003 
   
Bonds, Series 2002D, 5.125%, 7/01/24 
      
1,610 
  
San Luis Civic Improvement Corporation, Arizona, Municipal Facilities Excise Tax Revenue 
7/15 at 100.00 
A+ 
1,665,448 
   
Bonds, Series 2005, 5.000%, 7/01/25 – SYNCORA GTY Insured 
      
1,000 
  
Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Refunding Series 
No Opt. Call 
AAA 
1,202,220 
   
2006, 5.000%, 7/01/24 
      
2,000 
  
Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Water & Sewer 
No Opt. Call 
AAA 
2,129,860 
   
Improvements Project, Series 2010, 5.000%, 7/01/36 
      
645 
  
Vistancia Community Facilities District, Arizona, Restricted General Obligation Bonds, Series 
7/15 at 100.00 
A1 
681,294 
   
2005, 5.750%, 7/15/24 
      
21,933 
  
Total Tax Obligation/Limited 
    
22,564,135 
   
U.S. Guaranteed – 7.8% (5.5% of Total Investments) (5) 
      
1,250 
  
Maricopa County Industrial Development Authority, Arizona, Hospital Revenue Refunding Bonds, 
No Opt. Call 
N/R (5) 
1,503,575 
   
Samaritan Health Services, Series 1990A, 7.000%, 12/01/16 – NPFG Insured (ETM) 
      
385 
  
Maricopa County, Arizona, Hospital Revenue Bonds, Sun Health Corporation, Series 2005, 5.000%, 
4/15 at 100.00 
N/R (5) 
444,590 
   
4/01/16 (Pre-refunded 4/01/15) 
      
1,200 
  
Prescott Valley Municipal Property Corporation, Arizona, Municipal Facilities Revenue Bonds, 
1/13 at 100.00 
AA– (5) 
1,275,072 
   
Series 2003, 5.000%, 1/01/27 (Pre-refunded 1/01/13) – FGIC Insured 
      
 
 
20 Nuveen Investments
 
 
 
 
 
 
           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
U.S. Guaranteed (5) (continued) 
      
$ 735 
  
Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding 
7/12 at 100.00 
Baa1 (5) 
$ 763,827 
   
Bonds, Series 2002D, 5.125%, 7/01/24 (Pre-refunded 7/01/12) 
      
530 
  
Salt River Project Agricultural Improvement and Power District, Arizona, Electric System 
1/13 at 100.00 
Aa1 (5) 
563,523 
   
Revenue Bonds, Series 2002B, 5.000%, 1/01/22 (Pre-refunded 1/01/13) 
      
310 
  
Salt River Project Agricultural Improvement and Power District, Arizona, Electric System 
1/12 at 101.00 
N/R (5) 
318,252 
   
Revenue Refunding Bonds, Series 2002A, 5.125%, 1/01/27 (Pre-refunded 1/01/12) 
      
4,410 
  
Total U.S. Guaranteed 
    
4,868,839 
   
Utilities – 24.4% (17.4% of Total Investments) 
      
1,000 
  
Arizona Power Authority, Special Obligation Power Resource Revenue Refunding Crossover Bonds, 
No Opt. Call 
AA 
1,171,590 
   
Hoover Project, Series 2001, 5.250%, 10/01/15 
      
1,600 
  
Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Refunding 
6/20 at 100.00 
A1 
1,648,464 
   
Bonds, Southern California Edison Company, Series 2000A, 5.000%, 6/01/35 
      
1,340 
  
Pima County Industrial Development Authority, Arizona, Revenue Bonds, Tucson Electric Power 
1/15 at 100.00 
BBB– 
1,357,849 
   
Company, Refunding Series 2008, 5.750%, 9/01/29 
      
2,170 
  
Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/27 – 
7/15 at 100.00 
A3 
2,172,474 
   
SYNCORA GTY Insured 
      
715 
  
Salt River Project Agricultural Improvement and Power District, Arizona, Electric System 
1/18 at 100.00 
Aa1 
840,096 
   
Revenue Bonds, Tender Option Bond Trust 09-9W, 17.121%, 1/01/38 (IF) (6) 
      
660 
  
Salt River Project Agricultural Improvement and Power District, Arizona, Electric System 
1/12 at 101.00 
Aa1 
675,048 
   
Revenue Refunding Bonds, Series 2002A, 5.125%, 1/01/27 
      
   
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc 
      
   
Prepay Contract Obligations, Series 2007: 
      
4,500 
  
5.500%, 12/01/29 
No Opt. Call 
A
4,331,066 
3,500 
  
5.000%, 12/01/37 
No Opt. Call 
A
3,024,560 
15,485 
  
Total Utilities 
    
15,221,147 
   
Water and Sewer – 21.0% (14.9% of Total Investments) 
      
1,005 
  
Cottonwood, Arizona, Senior Lien Water System Revenue Bonds, Municipal Property Corporation, 
7/14 at 100.00 
A
1,016,829 
   
Series 2004, 5.000%, 7/01/24 – SYNCORA GTY Insured 
      
3,500 
  
Glendale, Arizona, Water and Sewer Revenue Bonds, Subordinate Lien, Series 2003, 5.000%, 
7/13 at 100.00 
AA 
3,660,860 
   
7/01/28 – AMBAC Insured 
      
1,425 
  
Goodyear, Arizona, Water and Sewer Revenue Obligations, Series 2010, 5.625%, 7/01/39 
7/20 at 100.00 
A+ 
1,456,208 
600 
  
Oro Valley Municipal Property Corporation, Arizona, Senior Lien Water Revenue Bonds, Series 
7/13 at 100.00 
AA– 
616,518 
   
2003, 5.000%, 7/01/23 – NPFG Insured 
      
1,000 
  
Phoenix Civic Improvement Corporation, Arizona, Junior Lien Wastewater System Revenue Bonds, 
7/14 at 100.00 
AA+ 
1,079,390 
   
Series 2004, 5.000%, 7/01/24 – NPFG Insured 
      
1,500 
  
Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Bonds, Series 
7/12 at 100.00 
AAA 
1,535,775 
   
2002, 5.000%, 7/01/26 – FGIC Insured 
      
1,250 
  
Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Refunding 
No Opt. Call 
AAA 
1,563,938 
   
Bonds, Series 2001, 5.500%, 7/01/21 – FGIC Insured 
      
 
 
Nuveen Investments 21
 
 
 
 

 
   
 
Nuveen Arizona Premium Income Municipal Fund, Inc. (continued) 
NAZ 
Portfolio of Investments August 31, 2011 (Unaudited) 
 
           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Water and Sewer (continued) 
      
   
Surprise Municipal Property Corporation, Arizona, Wastewater System Revenue Bonds, Series 2007: 
      
$ 600 
  
4.700%, 4/01/22 
4/14 at 100.00 
N/R 
$ 605,220 
810 
  
4.900%, 4/01/32 
4/17 at 100.00 
N/R 
751,275 
905 
  
Yuma County Industrial Development Authority, Arizona, Exempt Revenue Bonds, Far West Water & 
12/17 at 100.00 
N/R 
809,007 
   
Sewer Inc. Refunding, Series 2007A, 6.375%, 12/01/37 (Alternative Minimum Tax) 
      
12,595 
  
Total Water and Sewer 
    
13,095,020 
$ 86,903 
  
Total Investments (cost $83,837,864) – 140.6% 
    
87,744,251 
   
Variable MuniFund Term Preferred shares, at Liquidation Value – (44.9)% (7) 
    
(28,000,000) 
   
Other Assets Less Liabilities – 4.3% 
    
2,682,407 
   
Net Assets Applicable to Common Shares – 100% 
    
$ 62,426,658 
 
 
(1)
  
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
  
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
  
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
  
Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Directors. For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(5)
  
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(6)
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. 
(7)   Variable MuniFund Term Preferred shares, at Liquidation Value as a percentage of Total Investments is 31.9%.
N/R
  
Not rated.
(ETM)
  
Escrowed to maturity.
(IF)
  
Inverse floating rate investment.
 
See accompanying notes to financial statements.
 
 
22 Nuveen Investments
 
 
 
 

 
           
 
Nuveen Arizona Dividend Advantage Municipal Fund 
      
NFZ 
Portfolio of Investments 
      
   
August 31, 2011 (Unaudited) 
  
 
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Education and Civic Organizations – 12.1% (8.2% of Total Investments) 
      
$ 280 
  
Arizona Higher Education Loan Authority, Student Loan Revenue Bonds, Series 2007B, Auction 
3/12 at 100.00 
A
$ 215,592 
   
Rate Securities, 0.508%, 11/01/41 (Alternative Minimum Tax) (4) 
      
275 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, 
5/22 at 100.00 
A– 
277,021 
   
Refunding Series 2007, 5.000%, 5/15/31 
      
500 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, 
5/20 at 100.00 
A– 
488,570 
   
Refunding Series 2010, 5.125%, 5/15/40 
      
220 
  
Pima County Industrial Development Authority, Arizona, Educational Revenue Bonds, Valley 
7/18 at 100.00 
Baa3 
204,239 
   
Academy Charter School Project, Series 2008, 6.500%, 7/01/38 
      
1,000 
  
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities 
2/12 at 100.00 
BBB– 
920,810 
   
Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, 
      
   
Series 1999, 5.375%, 2/01/29 
      
300 
  
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities 
3/12 at 100.00 
BBB 
300,159 
   
Financing Authority, Higher Education Revenue Bonds, University of the Sacred Heart, 
      
   
Series 2001, 5.250%, 9/01/21 
      
305 
  
Tucson Industrial Development Authority, Arizona, Charter School Revenue Bonds, Arizona 
9/14 at 100.00 
BB+ 
257,902 
   
Agribusiness and Equine Center Charter School, Series 2004A, 6.125%, 9/01/34 
      
2,880 
  
Total Education and Civic Organizations 
    
2,664,293 
   
Health Care – 21.0% (14.1% of Total Investments) 
      
565 
  
Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 
1/17 at 100.00 
AA– 
582,549 
   
2007A, 5.000%, 1/01/25 
      
325 
  
Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 
1/17 at 100.00 
AA– 
226,405 
   
2007B, 1.059%, 1/02/37 
      
720 
  
Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 
1/18 at 100.00 
AA– 
741,254 
   
2008D, 5.500%, 1/01/38 
      
10 
  
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist 
3/13 at 100.00 
A
10,004 
   
Health System/West, Series 2003A, 5.000%, 3/01/28 
      
250 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health 
12/15 at 100.00 
BBB 
214,788 
   
Network, Series 2005B, 5.000%, 12/01/37 
      
415 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health 
12/17 at 100.00 
BBB 
348,546 
   
Network, Series 2007, 5.000%, 12/01/42 
      
750 
  
Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds, 
7/14 at 100.00 
A
773,265 
   
Catholic Healthcare West, Series 2004A, 5.375%, 7/01/23 
      
1,025 
  
Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds, 
7/17 at 100.00 
A
1,031,058 
   
Catholic Healthcare West, Series 2007A, 5.250%, 7/01/32 
      
   
Show Low Industrial Development Authority, Arizona, Hospital Revenue Bonds, Navapache Regional 
      
   
Medical Center, Series 2005: 
      
200 
  
5.000%, 12/01/25 – RAAI Insured 
12/15 at 100.00 
BBB+ 
189,700 
150 
  
5.000%, 12/01/30 – RAAI Insured 
12/15 at 100.00 
BBB+ 
137,318 
350 
  
University Medical Center Corporation, Tucson, Arizona, Hospital Revenue Bonds, Series 2011, 
7/21 at 100.00 
BBB+ 
351,253 
   
6.000%, 7/01/39 
      
4,760 
  
Total Health Care 
    
4,606,140 
   
Housing/Multifamily – 3.6% (2.4% of Total Investments) 
      
1,000 
  
Maricopa County Industrial Development Authority, Arizona, Multifamily Housing Revenue Bonds, 
10/11 at 100.00 
Baa1 
785,510 
   
Whispering Palms Apartments, Series 1999A, 5.900%, 7/01/29 – NPFG Insured 
      
 
 
Nuveen Investments 23
 
 
 
 

 
   
 
Nuveen Arizona Dividend Advantage Municipal Fund (continued) 
NFZ 
Portfolio of Investments August 31, 2011 (Unaudited) 
 
           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Tax Obligation/General – 19.1% (12.9% of Total Investments) 
      
$ 1,000 
  
Maricopa County Unified School District 11, Peoria, Arizona, General Obligation Bonds, Second 
7/15 at 100.00 
Aa2 
$ 1,115,630 
   
Series 2005, 5.000%, 7/01/20 – FGIC Insured 
      
180 
  
Pima County Continental Elementary School District 39, Arizona, General Obligation Bonds, 
7/21 at 100.00 
AA+ 
195,514 
   
Series 2011A, 2.000%, 7/01/30 – AGM Insured 
      
1,310 
  
Scottsdale, Arizona, General Obligation Bonds, Preserve Acquisition Series 1999, 
7/21 at 100.00 
AAA 
1,441,865 
   
5.000%, 7/01/32 
      
1,340 
  
Yuma & La Paz Counties Community College District, Arizona, General Obligation Bonds, Series 
7/16 at 100.00 
Aa2 
1,447,790 
   
2006, 5.000%, 7/01/21 – NPFG Insured 
      
3,830 
  
Total Tax Obligation/General 
    
4,200,799 
   
Tax Obligation/Limited – 46.5% (31.4% of Total Investments) 
      
1,220 
  
Arizona Tourism and Sports Authority, Tax Revenue Bonds, Multipurpose Stadium Facility 
7/13 at 100.00 
A1 
1,131,526 
   
Project, Series 2003A, 5.000%, 7/01/31 – NPFG Insured 
      
85 
  
Centerra Community Facilities District, Goodyear, Arizona, General Obligation Bonds, Series 
7/15 at 100.00 
N/R 
69,706 
   
2005, 5.500%, 7/15/29 
      
205 
  
Estrella Mountain Ranch Community Facilities District, Arizona, Special Assessment Bonds, 
1/17 at 100.00 
N/R 
177,421 
   
Montecito Assessment District, Series 2007, 5.700%, 7/01/27 
      
127 
  
Estrella Mountain Ranch Community Facilities District, Goodyear, Arizona, Special Assessment 
7/12 at 100.00 
N/R 
128,205 
   
Lien Bonds, Series 2001A, 7.875%, 7/01/25 
      
1,000 
  
Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006-1, 5.000%, 
8/16 at 100.00 
AA– 
1,057,140 
   
8/01/22 – NPFG Insured 
      
275 
  
Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006A, 5.000%, 
8/16 at 100.00 
AA– 
288,632 
   
8/01/23 – NPFG Insured 
      
1,180 
  
Marana Municipal Property Corporation, Arizona, Revenue Bonds, Series 2003, 5.000%, 7/01/23 – 
7/13 at 100.00 
AA 
1,247,661 
   
AMBAC Insured 
      
498 
  
Marana, Arizona, Tangerine Farms Road Improvement District Revenue Bonds, Series 2006, 
7/16 at 100.00 
A2 
504,041 
   
4.600%, 1/01/26 
      
150 
  
Marley Park Community Facilities District, City of Surprise, Arizona, Limited Tax General 
7/17 at 100.00 
N/R 
129,986 
   
Obligation Bonds, Series 2008 (Bank Qualified), 6.100%, 7/15/32 
      
255 
  
Merrill Ranch Community Facilities District 1, Florence, Arizona, General Obligation Bonds, 
7/18 at 100.00 
N/R 
254,312 
   
Series 2008A, 7.400%, 7/15/33 
      
330 
  
Palm Valley Community Facility District 3, Goodyear, Arizona, General Obligation Bonds, Series 
7/16 at 100.00 
N/R 
261,307 
   
2006, 5.300%, 7/15/31 
      
225 
  
Palm Valley Community Facility District 3, Goodyear, Arizona, Limited Tax General Obligation 
7/17 at 100.00 
N/R 
187,837 
   
Bonds, Series 2007, 5.800%, 7/15/32 
      
100 
  
Parkway Community Facilities District 1, Prescott Valley, Arizona, General Obligation Bonds, 
7/16 at 100.00 
N/R 
79,704 
   
Series 2006, 5.350%, 7/15/31 
      
900 
  
Phoenix Industrial Development Authority, Arizona, Government Bonds, Capitol Mall LLC II, 
3/12 at 100.00 
A1 
918,396 
   
Series 2001, 5.250%, 9/15/16 – AMBAC Insured 
      
680 
  
Pinal County Industrial Development Authority, Arizona, Correctional Facilities Contract 
No Opt. Call 
BBB– 
681,108 
   
Revenue Bonds, Florence West Prison LLC, Series 2002A, 5.000%, 10/01/18 – ACA Insured 
      
600 
  
San Luis Civic Improvement Corporation, Arizona, Municipal Facilities Excise Tax Revenue 
7/15 at 100.00 
A+ 
620,664 
   
Bonds, Series 2005, 5.000%, 7/01/25 – SYNCORA GTY Insured 
      
1,000 
  
Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Refunding Series 
No Opt. Call 
AAA 
1,202,220 
   
2006, 5.000%, 7/01/24 
      
 
 
24 Nuveen Investments
 
 
 
 
 

           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Tax Obligation/Limited (continued) 
      
$ 350 
  
Tartesso West Community Facility District, Buckeye, Arizona, Limited Tax General Obligation 
7/17 at 100.00 
N/R 
$ 295,894 
   
Bonds, Series 2007, 5.900%, 7/15/32 
      
500 
  
Vistancia Community Facilities District, Arizona, Restricted General Obligation Bonds, Series 
7/15 at 100.00 
A1 
528,135 
   
2005, 5.750%, 7/15/24 
      
340 
  
Watson Road Community Facilities District, Arizona, Special Assessment Revenue Bonds, Series 
7/16 at 100.00 
N/R 
279,776 
   
2005, 6.000%, 7/01/30 
      
225 
  
Westpark Community Facilities District, Buckeye, Arizona, General Obligation Tax Increment 
7/16 at 100.00 
N/R 
176,994 
   
Bonds Series 2006, 5.250%, 7/15/31 
      
10,245 
  
Total Tax Obligation/Limited 
    
10,220,665 
   
U.S. Guaranteed – 2.0% (1.4% of Total Investments) (5) 
      
240 
  
Maricopa County Union High School District 210 Phoenix, Arizona, General Obligation Bonds, 
7/16 at 100.00 
AA (5) 
287,254 
   
Series 2006C, 5.000%, 7/01/24 (Pre-refunded 7/01/16) – NPFG Insured 
      
140 
  
Maricopa County, Arizona, Hospital Revenue Bonds, Sun Health Corporation, Series 2005, 5.000%, 
4/15 at 100.00 
N/R (5) 
161,669 
   
4/01/16 (Pre-refunded 4/01/15) 
      
380 
  
Total U.S. Guaranteed 
    
448,923 
   
Utilities – 30.2% (20.4% of Total Investments) 
      
1,500 
  
Arizona Power Authority, Special Obligation Power Resource Revenue Refunding Crossover Bonds, 
No Opt. Call 
AA 
1,807,931 
   
Hoover Project, Series 2001, 5.250%, 10/01/17 
      
600 
  
Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Refunding 
6/20 at 100.00 
A1 
618,174 
   
Bonds, Southern California Edison Company, Series 2000A, 5.000%, 6/01/35 
      
1,000 
  
Mesa, Arizona, Utility System Revenue Refunding Bonds, Series 2002, 5.250%, 7/01/17 – 
No Opt. Call 
Aa2 
1,187,770 
   
FGIC Insured 
      
665 
  
Pima County Industrial Development Authority, Arizona, Revenue Bonds, Tucson Electric Power 
1/15 at 100.00 
BBB– 
673,858 
   
Company, Refunding Series 2008, 5.750%, 9/01/29 
      
1,000 
  
Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/26 – 
7/15 at 100.00 
A3 
1,003,910 
   
SYNCORA GTY Insured 
      
560 
  
Salt River Project Agricultural Improvement and Power District, Arizona, Electric System 
1/18 at 100.00 
Aa1 
657,978 
   
Revenue Bonds, Tender Option Bond Trust 09-9W, 17.121%, 1/01/38 (IF) (6) 
      
660 
  
Salt River Project Agricultural Improvement and Power District, Arizona, Electric System 
1/12 at 101.00 
Aa1 
676,104 
   
Revenue Refunding Bonds, Series 2002A, 5.250%, 1/01/18 
      
5,985 
  
Total Utilities 
    
6,625,725 
   
Water and Sewer – 13.7% (9.2% of Total Investments) 
      
475 
  
Goodyear, Arizona, Water and Sewer Revenue Obligations, Series 2010, 5.625%, 7/01/39 
7/20 at 100.00 
A+ 
485,403 
225 
  
Oro Valley Municipal Property Corporation, Arizona, Senior Lien Water Revenue Bonds, Series 
7/13 at 100.00 
AA– 
231,194 
   
2003, 5.000%, 7/01/23 – NPFG Insured 
      
1,500 
  
Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Bonds, Series 
7/12 at 100.00 
AAA 
1,535,775 
   
2002, 5.000%, 7/01/26 – FGIC Insured 
      
 
 
Nuveen Investments 25
 
 
 
 

   
 
Nuveen Arizona Dividend Advantage Municipal Fund (continued) 
NFZ 
Portfolio of Investments August 31, 2011 (Unaudited) 
 
           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Water and Sewer (continued) 
      
   
Surprise Municipal Property Corporation, Arizona, Wastewater System Revenue Bonds, Series 2007: 
      
$ 225 
  
4.700%, 4/01/22 
4/14 at 100.00 
N/R 
$ 226,958 
260 
  
4.900%, 4/01/32 
4/17 at 100.00 
N/R 
241,150 
325 
  
Yuma County Industrial Development Authority, Arizona, Exempt Revenue Bonds, Far West Water & 
12/17 at 100.00 
N/R 
290,527 
   
Sewer Inc. Refunding, Series 2007A, 6.375%, 12/01/37 (Alternative Minimum Tax) 
      
3,010 
  
Total Water and Sewer 
    
3,011,007 
$ 32,090 
  
Total Investments (cost $31,983,575) – 148.2% 
    
32,563,062 
   
MuniFund Term Preferred Shares, at Liquidation Value – (50.5)% (7) 
    
(11,100,000) 
   
Other Assets Less Liabilities – 2.3% 
    
511,206 
   
Net Assets Applicable to Common Shares – 100% 
    
$ 21,974,268 
 
 
(1)
  
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
  
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
  
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
  
Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Trustees. For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(5)
  
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(6)
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
(7)
  
MuniFund Term Preferred shares, at Liquidation Value as a percentage of Total Investments is 34.1%.
N/R
  
Not rated.
(IF)
  
Inverse floating rate investment.
See accompanying notes to financial statements.
 
 
26 Nuveen Investments
 
 
 
 
 

           
 
Nuveen Arizona Dividend Advantage Municipal Fund 2 
    
NKR 
Portfolio of Investments 
      
   
August 31, 2011 (Unaudited) 
  
 
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Education and Civic Organizations – 10.4% (6.9% of Total Investments) 
      
$ 1,130 
  
Arizona Higher Education Loan Authority, Student Loan Revenue Bonds, Series 2007B, Auction 
3/12 at 100.00 
A
$ 870,066 
   
Rate Securities, 0.508%, 11/01/41 (Alternative Minimum Tax) (4) 
      
450 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, 
5/22 at 100.00 
A– 
453,308 
   
Refunding Series 2007, 5.000%, 5/15/31 
      
775 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, 
5/20 at 100.00 
A– 
757,284 
   
Refunding Series 2010, 5.125%, 5/15/40 
      
485 
  
Pima County Industrial Development Authority, Arizona, Charter School Revenue Bonds, Noah 
12/14 at 100.00 
BBB– 
469,858 
   
Webster Basic Schools Inc., Series 2004, 6.000%, 12/15/24 
      
365 
  
Pima County Industrial Development Authority, Arizona, Educational Revenue Bonds, Valley 
7/18 at 100.00 
Baa3 
338,851 
   
Academy Charter School Project, Series 2008, 6.500%, 7/01/38 
      
290 
  
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities 
2/12 at 100.00 
BBB– 
290,073 
   
Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, 
      
   
Series 1999, 5.375%, 2/01/19 
      
480 
  
Tucson Industrial Development Authority, Arizona, Charter School Revenue Bonds, Arizona 
9/14 at 100.00 
BB+ 
405,878 
   
Agribusiness and Equine Center Charter School, Series 2004A, 6.125%, 9/01/34 
      
   
University of Arizona, Certificates of Participation, Series 2002A: 
      
65 
  
5.500%, 6/01/18 – AMBAC Insured 
6/12 at 100.00 
AA– 
67,047 
40 
  
5.125%, 6/01/22 – AMBAC Insured 
6/12 at 100.00 
AA– 
40,951 
4,080 
  
Total Education and Civic Organizations 
    
3,693,316 
   
Health Care – 31.6% (21.0% of Total Investments) 
      
845 
  
Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 
1/17 at 100.00 
AA– 
871,246 
   
2007A, 5.000%, 1/01/25 
      
520 
  
Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 
1/17 at 100.00 
AA– 
362,248 
   
2007B, 1.059%, 1/02/37 
      
1,150 
  
Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 
1/18 at 100.00 
AA– 
1,183,948 
   
2008D, 5.500%, 1/01/38 
      
600 
  
Arizona Health Facilities Authority, Revenue Bonds, Blood Systems Inc., Series 2004, 
4/14 at 100.00 
A
620,904 
   
5.000%, 4/01/20 
      
400 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health 
12/15 at 100.00 
BBB 
343,660 
   
Network, Series 2005B, 5.000%, 12/01/37 
      
655 
  
Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health 
12/17 at 100.00 
BBB 
550,115 
   
Network, Series 2007, 5.000%, 12/01/42 
      
1,375 
  
Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds, 
7/14 at 100.00 
A
1,417,652 
   
Catholic Healthcare West, Series 2004A, 5.375%, 7/01/23 
      
1,650 
  
Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds, 
7/17 at 100.00 
A
1,659,751 
   
Catholic Healthcare West, Series 2007A, 5.250%, 7/01/32 
      
500 
  
Maricopa County Industrial Development Authority, Arizona, Hospital Revenue Bonds, Mayo Clinic 
11/11 at 100.00 
AA 
500,230 
   
Hospital, Series 1998, 5.250%, 11/15/37 
      
1,120 
  
Scottsdale Industrial Development Authority, Arizona, Hospital Revenue Bonds, Scottsdale 
9/20 at 100.00 
AA+ 
1,116,125 
   
Healthcare, Series 2006C. Re-offering, 5.000%, 9/01/35 – AGC Insured 
      
   
Show Low Industrial Development Authority, Arizona, Hospital Revenue Bonds, Navapache Regional 
      
   
Medical Center, Series 2005: 
      
315 
  
5.000%, 12/01/25 – RAAI Insured 
12/15 at 100.00 
BBB+ 
298,778 
260 
  
5.000%, 12/01/30 – RAAI Insured 
12/15 at 100.00 
BBB+ 
238,017 
1,050 
  
University Medical Center Corporation, Tucson, Arizona, Hospital Revenue Bonds, Series 2011, 
7/21 at 100.00 
BBB+ 
1,053,759 
   
6.000%, 7/01/39 
      
1,000 
  
Yavapai County Industrial Development Authority, Arizona, Hospital Revenue Bonds, Yavapai 
8/13 at 100.00 
Baa2 
1,001,730 
   
Regional Medical Center, Series 2003A, 6.000%, 8/01/33 
      
11,440 
  
Total Health Care 
    
11,218,163 
 
 
Nuveen Investments 27
 
 
 
 

   
 
Nuveen Arizona Dividend Advantage Municipal Fund 2 (continued) 
NKR 
Portfolio of Investments August 31, 2011 (Unaudited) 
 
           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Housing/Multifamily – 0.7% (0.5% of Total Investments) 
      
$ 245 
  
Maricopa County Industrial Development Authority, Arizona, GNMA Collateralized Multifamily 
10/11 at 105.00 
AAA 
$ 257,512 
   
Housing Revenue Refunding Bonds, Pine Ridge, Cambridge Court, Cove on 44th and Fountain 
      
   
Place Apartments, Series 2001A-1, 6.000%, 10/20/31 
      
   
Tax Obligation/General – 30.5% (20.2% of Total Investments) 
      
1,000 
  
Maricopa County Elementary School District 83 Cartwright, Arizona, General Obligation Bonds, 
7/21 at 100.00 
AA+ 
1,058,650 
   
School Improvement, Project 2010, Series 2011A, 5.375%, 7/01/30 – AGM Insured 
      
1,000 
  
Maricopa County School District 6, Arizona, General Obligation Refunding Bonds, Washington 
No Opt. Call 
AA+ 
1,191,060 
   
Elementary School, Series 2002A, 5.375%, 7/01/16 – AGM Insured 
      
775 
  
Maricopa County School District 79 Litchfield Elementary, Arizona, General Obligation Bonds, 
7/21 at 100.00 
Aa2 
898,954 
   
Series 2011, 5.000%, 7/01/23 
      
1,165 
  
Maricopa County Unified School District 69, Paradise Valley, Arizona, General Obligation 
No Opt. Call 
Aa2 
1,302,435 
   
Refunding Bonds, Series 2002A, 5.250%, 7/01/14 – FGIC Insured 
      
1,405 
  
Mesa, Arizona, General Obligation Bonds, Series 2002, 5.375%, 7/01/15 – FGIC Insured 
No Opt. Call 
AA 
1,641,657 
   
Phoenix, Arizona, Various Purpose General Obligation Bonds, Series 2002B: 
      
985 
  
5.000%, 7/01/22 
7/12 at 100.00 
AAA 
1,015,299 
290 
  
5.000%, 7/01/27 
7/12 at 100.00 
AAA 
299,413 
310 
  
Pima County Continental Elementary School District 39, Arizona, General Obligation Bonds, 
7/21 at 100.00 
AA+ 
336,719 
   
Series 2011A, 2.000%, 7/01/30 – AGM Insured 
      
500 
  
Pima County Unified School District 08 Flowing Wells, Arizona, General Obligation Bonds, 
7/21 at 100.00 
A+ 
530,140 
   
Series 2011B, 5.375%, 7/01/29 
      
1,000 
  
Pima County Unified School District 6, Marana, Arizona, General Obligation Bonds, School 
7/21 at 100.00 
A+ 
1,052,720 
   
Improvement Project 2010 Series 2011A, 5.000%, 7/01/25 
      
1,360 
  
Scottsdale, Arizona, General Obligation Bonds, Preserve Acquisition Series 1999, 
7/21 at 100.00 
AAA 
1,489,879 
   
5.000%, 7/01/33 
      
9,790 
  
Total Tax Obligation/General 
    
10,816,926 
   
Tax Obligation/Limited – 48.9% (32.4% of Total Investments) 
      
   
Arizona State, Certificates of Participation, Series 2002A: 
      
750 
  
5.000%, 11/01/17 – NPFG Insured 
5/12 at 100.00 
A+ 
760,298 
1,000 
  
5.000%, 11/01/18 – NPFG Insured 
5/12 at 100.00 
A+ 
1,012,470 
500 
  
5.000%, 11/01/20 – NPFG Insured 
5/12 at 100.00 
A+ 
504,935 
120 
  
Centerra Community Facilities District, Goodyear, Arizona, General Obligation Bonds, Series 
7/15 at 100.00 
N/R 
98,408 
   
2005, 5.500%, 7/15/29 
      
337 
  
Estrella Mountain Ranch Community Facilities District, Arizona, Special Assessment Bonds, 
1/17 at 100.00 
N/R 
281,378 
   
Montecito Assessment District, Series 2007, 5.800%, 7/01/32 
      
200 
  
Estrella Mountain Ranch Community Facilities District, Goodyear, Arizona, Special Assessment 
7/12 at 100.00 
N/R 
201,898 
   
Lien Bonds, Series 2001A, 7.875%, 7/01/25 
      
990 
  
Marana Municipal Property Corporation, Arizona, Municipal Facilities Revenue Bonds, Series 
1/12 at 100.00 
AA 
992,544 
   
2008B, 5.125%, 7/01/28 
      
834 
  
Marana, Arizona, Tangerine Farms Road Improvement District Revenue Bonds, Series 2006, 
7/16 at 100.00 
A2 
844,116 
   
4.600%, 1/01/26 
      
   
Maricopa County Stadium District, Arizona, Revenue Refunding Bonds, Series 2002: 
      
840 
  
5.375%, 6/01/18 – AMBAC Insured 
6/12 at 100.00 
BBB– 
778,663 
2,645 
  
5.375%, 6/01/19 – AMBAC Insured 
6/12 at 100.00 
BBB– 
2,494,498 
240 
  
Marley Park Community Facilities District, City of Surprise, Arizona, Limited Tax General 
7/17 at 100.00 
N/R 
207,977 
   
Obligation Bonds, Series 2008 (Bank Qualified), 6.100%, 7/15/32 
      
415 
  
Merrill Ranch Community Facilities District 1, Florence, Arizona, General Obligation Bonds, 
7/18 at 100.00 
N/R 
413,880 
   
Series 2008A, 7.400%, 7/15/33 
      
530 
  
Palm Valley Community Facility District 3, Goodyear, Arizona, General Obligation Bonds, Series 
7/16 at 100.00 
N/R 
419,675 
   
2006, 5.300%, 7/15/31 
      
350 
  
Palm Valley Community Facility District 3, Goodyear, Arizona, Limited Tax General Obligation 
7/17 at 100.00 
N/R 
292,191 
   
Bonds, Series 2007, 5.800%, 7/15/32 
      
 
 
28 Nuveen Investments
 
 
 
 
 
           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Tax Obligation/Limited (continued) 
      
$ 140 
  
Parkway Community Facilities District 1, Prescott Valley, Arizona, General Obligation Bonds, 
7/16 at 100.00 
N/R 
$ 111,586 
   
Series 2006, 5.350%, 7/15/31 
      
1,000 
  
Phoenix Industrial Development Authority, Arizona, Government Bonds, Capitol Mall LLC II, 
3/12 at 100.00 
A1 
1,020,440 
   
Series 2001, 5.250%, 9/15/16 – AMBAC Insured 
      
1,070 
  
Pinal County Industrial Development Authority, Arizona, Correctional Facilities Contract 
No Opt. Call 
BBB– 
1,071,744 
   
Revenue Bonds, Florence West Prison LLC, Series 2002A, 5.000%, 10/01/18 – ACA Insured 
      
270 
  
Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding 
7/12 at 100.00 
Baa1 
270,003 
   
Bonds, Series 2002D, 5.125%, 7/01/24 
      
250 
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 
2/20 at 100.00 
A+ 
252,178 
   
2010A, 5.375%, 8/01/39 
      
960 
  
San Luis Civic Improvement Corporation, Arizona, Municipal Facilities Excise Tax Revenue 
7/15 at 100.00