Unassociated Document



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 
Investment Company Act file number 811-10345
 
Nuveen Dividend Advantage Municipal Fund 3
(Exact name of registrant as specified in charter)
 
Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)
 

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            10/31          
 
Date of reporting period:         7/31/12         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.

 
 
 
 
 
Item 1. Schedule of Investments
 

           
   
Portfolio of Investments (Unaudited)
      
   
Nuveen Dividend Advantage Municipal Fund 3 (NZF)
      
   
July 31, 2012
      
           
Principal
    
Optional Call
    
Amount (000)
  
Description (1)
Provisions (2)
Ratings (3)
Value
   
Municipal Bonds – 139.2% (98.0% of Total Investments)
      
   
Alabama – 0.6% (0.4% of Total Investments)
      
$    3,500
  
Alabama Special Care Facilities Financing Authority, Revenue Bonds, Ascension Health, Series
11/16 at 100.00
AA+
$   3,712,240
   
2006C-2, 5.000%, 11/15/36 (UB)
      
   
Alaska – 0.1% (0.1% of Total Investments)
      
1,000
  
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds,
6/14 at 100.00
B+
788,880
   
Series 2006A, 5.000%, 6/01/46
      
   
Arizona – 1.9% (1.4% of Total Investments)
      
3,390
  
Arizona State Transportation Board, Highway Revenue Bonds, Series 2006, 13.377%, 7/01/16 (IF)
No Opt. Call
AAA
4,625,180
5,000
  
Phoenix Civic Improvement Corporation, Arizona, Subordinate Excise Tax Revenue Bonds, Civic
7/15 at 100.00
AA
5,439,900
   
Plaza Expansion Project, Series 2005A, 5.000%, 7/01/30 – FGIC Insured
      
2,200
  
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc
No Opt. Call
A–
2,287,010
   
Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37
      
10,590
  
Total Arizona
    
12,352,090
   
California – 16.5% (11.6% of Total Investments)
      
   
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist
      
   
Health System/West, Series 2003A:
      
2,220
  
5.000%, 3/01/28
3/13 at 100.00
A
2,236,250
140
  
5.000%, 3/01/33
3/13 at 100.00
A
140,935
1,670
  
California Health Facilities Financing Authority, Refunding Revenue Bonds, Stanford Hospital
11/21 at 100.00
AA–
1,906,372
   
and Clinics, Series 2008A-2. RMKT, 5.250%, 11/15/40
      
3,400
  
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services,
10/19 at 100.00
AA
3,888,920
   
Series 2009B, 5.500%, 10/01/39
      
2,900
  
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, 2007A, 5.000%,
11/16 at 100.00
AA–
3,046,334
   
11/15/42 (UB)
      
4,170
  
California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente,
4/22 at 100.00
A+
4,576,784
   
Series 2012A, 5.000%, 4/01/42
      
5,355
  
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender
No Opt. Call
AA–
7,512,690
   
Option Bond Trust 3175, 13.551%, 5/15/14 (IF)
      
20
  
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG
12/12 at 100.00
AA
20,034
   
Insured (Alternative Minimum Tax)
      
   
Ceres Unified School District, Stanislaus County, California, General Obligation Bonds,
      
   
Series 2002B:
      
2,180
  
0.000%, 8/01/31 – FGIC Insured
10/12 at 33.26
A+
716,893
3,300
  
0.000%, 8/01/32 – FGIC Insured
10/12 at 31.34
A+
1,022,274
615
  
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed
6/13 at 100.00
Aaa
644,495
   
Bonds, Series 2003A-1, 6.250%, 6/01/33 (Pre-refunded 6/01/13)
      
11,865
  
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed
6/17 at 100.00
BB–
9,073,996
   
Bonds, Series 2007A-1, 5.125%, 6/01/47
      
7,150
  
Grossmont Healthcare District, California, General Obligation Bonds, Series 2011B,
7/21 at 100.00
Aa2
8,790,353
   
6.125%, 7/15/40
      
10,000
  
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2011A,
1/21 at 100.00
AA
11,425,700
   
5.000%, 7/01/41
      
   
Los Angeles Regional Airports Improvement Corporation, California, Lease Revenue Refunding
      
   
Bonds, LAXFUEL Corporation at Los Angeles International Airport, Series 2001:
      
8,640
  
5.750%, 1/01/16 – AMBAC Insured (Alternative Minimum Tax)
1/13 at 100.00
A
8,664,624
5,000
  
5.375%, 1/01/21 – AMBAC Insured (Alternative Minimum Tax)
1/13 at 100.00
A
5,007,900
1,500
  
5.250%, 1/01/23 – AMBAC Insured (Alternative Minimum Tax)
1/13 at 100.00
A
1,501,830
10,000
  
5.500%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax)
1/13 at 100.00
A
10,008,700
12,000
  
Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital
8/30 at 100.00
A+
9,410,640
   
Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/40
      
3,850
  
Placentia-Yorba Linda Unified School District, Orange County, California, Certificates of
10/21 at 100.00
AA–
3,532,260
   
Participation, Series 2011, 0.000%, 10/01/28 – AGM Insured
      
3,550
  
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011,
12/21 at 100.00
BB
4,308,706
   
7.500%, 12/01/41
      
3,000
  
San Diego Community College District, California, General Obligation Bonds, Tender Option Bond
8/21 at 100.00
AA+
4,353,060
   
Trust 1005, 13.638%, 8/01/41 (IF)
      
10,000
  
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue
No Opt. Call
BBB
2,818,400
   
Refunding Bonds, Series 1997A, 0.000%, 1/15/35 – NPFG Insured
      
3,000
  
San Mateo County Community College District, California, General Obligation Bonds, Series
No Opt. Call
Aaa
1,371,870
   
2006C, 0.000%, 9/01/30 – NPFG Insured
      
115,525
  
Total California
    
105,980,020
   
Colorado – 4.9% (3.4% of Total Investments)
      
2,250
  
Canterberry Crossing Metropolitan District II, Parker, Colorado, Limited Tax General
12/12 at 100.00
N/R (4)
2,302,088
   
Obligation Bonds, Series 2002, 7.375%, 12/01/32 (Pre-refunded 12/01/12)
      
1,495
  
Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Belle
3/13 at 100.00
N/R (4)
1,557,476
   
Creek Education Center, Series 2002A, 7.625%, 3/15/32 (Pre-refunded 3/15/13)
      
2,950
  
Colorado Educational and Cultural Facilities Authority, Revenue Bonds, Montessori Peaks
5/16 at 102.00
N/R
2,769,785
   
Academy, Series 2006A, 5.400%, 5/01/26
      
865
  
Colorado Housing Finance Authority, Multifamily Project Bonds, Class I, Series 2001A-1,
10/12 at 100.00
AAA
866,038
   
5.500%, 4/01/31 (Alternative Minimum Tax)
      
5,000
  
Compark Business Campus Metropolitan District, Colorado, General Obligation Limited Tax Bonds,
12/17 at 100.00
N/R
4,702,600
   
Series 2007A, 5.600%, 12/01/34 – RAAI Insured
      
   
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006:
      
5,365
  
5.000%, 11/15/23 – FGIC Insured
11/16 at 100.00
A+
6,129,781
3,300
  
5.000%, 11/15/24 – FGIC Insured
11/16 at 100.00
A+
3,746,919
4,335
  
5.000%, 11/15/25 – FGIC Insured
11/16 at 100.00
A+
4,922,089
   
Maher Ranch Metropolitan District 4, Colorado, General Obligation Limited Tax Bonds,
      
   
Series 2007:
      
950
  
5.125%, 12/01/27 – RAAI Insured
12/17 at 100.00
N/R
901,550
2,000
  
5.250%, 12/01/36 – RAAI Insured
12/17 at 100.00
N/R
1,804,420
1,000
  
Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003,
6/14 at 101.00
N/R
1,038,140
   
8.000%, 12/01/25
      
630
  
Regional Transportation District, Colorado, Certificates of Participation, Series 2010A,
6/20 at 100.00
Aa3
719,328
   
5.375%, 6/01/31
      
30,140
  
Total Colorado
    
31,460,214
   
Connecticut – 0.3% (0.2% of Total Investments)
      
1,500
  
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hartford Healthcare,
7/21 at 100.00
A
1,614,435
   
Series 2011A, 5.000%, 7/01/41
      
   
District of Columbia – 1.9% (1.3% of Total Investments)
      
10,000
  
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds,
10/16 at 100.00
AA+
10,508,900
   
Senior Lien Refunding Series 2007A, 4.500%, 10/01/30 – AMBAC Insured
      
1,335
  
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds,
10/16 at 100.00
AA+
1,538,788
   
Tender Option Bond Trust 1606, 11.436%, 10/01/30 – AMBAC Insured (IF)
      
11,335
  
Total District of Columbia
    
12,047,688
   
Florida – 4.4% (3.1% of Total Investments)
      
4,980
  
Broward County, Florida, Airport System Revenue Refunding Bonds, Series 2009O, 5.375%, 10/01/29
10/19 at 100.00
A+
5,725,307
6,850
  
Miami-Dade County, Florida, Transit System Sales Surtax Revenue Bonds, Series 2012, 5.000%,
7/22 at 100.00
AA
7,701,387
   
7/01/42 (WI/DD, Settling 8/01/12)
      
   
Orange County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Oak Glen
      
   
Apartments, Series 2001G:
      
1,105
  
5.400%, 12/01/32 – AGM Insured
12/12 at 100.00
AA–
1,106,260
2,195
  
5.450%, 12/01/41 – AGM Insured
12/12 at 100.00
AA–
2,197,063
5,000
  
Orlando-Orange County Expressway Authority, Florida, Expressway Revenue Bonds, Series 2003B,
7/13 at 100.00
A
5,138,050
   
5.000%, 7/01/30 – AMBAC Insured
      
5,455
  
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System
8/17 at 100.00
AA
5,841,650
   
Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) (5)
      
1,000
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007,
5/18 at 100.00
N/R
491,397
   
6.650%, 5/01/40 (6), (7)
      
26,585
  
Total Florida
    
28,201,114
   
Georgia – 4.3% (3.1% of Total Investments)
      
15,000
  
Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 2010C, 5.250%, 1/01/30
1/21 at 100.00
A1
17,378,699
3,000
  
Franklin County Industrial Building Authority, Georgia, Revenue Bonds, Ty Cobb Regional
12/20 at 100.00
N/R
3,327,780
   
Medical Center Project, Series 2010, 8.125%, 12/01/45
      
2,000
  
Fulton County Residential Care Facilities Authority, Georgia, Revenue Bonds, Elderly Care,
7/17 at 100.00
N/R
1,901,120
   
Lenbrook Square Project, Series 2006A, 5.125%, 7/01/42
      
5,000
  
Fulton County, Georgia, Water and Sewerage Revenue Bonds, Series 2004, 5.000%, 1/01/35 –
1/14 at 100.00
AA–
5,246,850
   
FGIC Insured
      
25,000
  
Total Georgia
    
27,854,449
   
Hawaii – 0.7% (0.5% of Total Investments)
      
4,295
  
Honolulu City and County, Hawaii, General Obligation Bonds, Series 2003A, 5.250%, 3/01/26
3/13 at 100.00
Aa1 (4)
4,422,261
   
(Pre-refunded 3/01/13) – AGM Insured
      
   
Illinois – 16.7% (11.8% of Total Investments)
      
3,200
  
Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Series 2011,
12/21 at 100.00
AA
3,657,536
   
5.250%, 12/01/40
      
8,375
  
Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 5.500%, 1/01/19 – AGM Insured
1/13 at 100.00
AA–
8,395,770
   
(Alternative Minimum Tax)
      
2,630
  
Chicago, Illinois, Sales Tax Revenue Bonds, Series 2011A, 5.000%, 1/01/41
1/22 at 100.00
AAA
2,960,933
4,950
  
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International
10/12 at 100.00
A+ (4)
4,957,772
   
Airport, Series 2001A, 5.375%, 1/01/32 (Pre-refunded 10/17/12) – AMBAC Insured
      
   
(Alternative Minimum Tax)
      
2,220
  
Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2001A, 5.500%,
No Opt. Call
Aa3
2,555,131
   
1/01/16 – NPFG Insured
      
1,165
  
Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport,
1/16 at 100.00
A2
1,242,251
   
Series 2005A, 5.000%, 1/01/33 – FGIC Insured
      
7,500
  
Community Unit School District 308, Oswego, in the Counties of Kendall, Kane, and Will,
10/14 at 100.00
Aa2 (4)
8,315,325
   
Illinois, General Obligation Bonds, Series 2004, 5.375%, 10/01/17 (Pre-refunded 10/01/14) –
      
   
AGM Insured
      
8,875
  
Cook County, Illinois, General Obligation Bonds, Refunding Series 2010A, 5.250%, 11/15/33
11/20 at 100.00
AA
10,055,286
2,415
  
Illinois Finance Authority, General Obligation Debt Certificates, Local Government Program –
12/14 at 100.00
A2
2,516,189
   
Kankakee County, Series 2005B, 5.000%, 12/01/24 – AMBAC Insured
      
3,465
  
Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A,
8/17 at 100.00
BBB
3,736,691
   
5.500%, 8/01/37
      
4,125
  
Illinois Finance Authority, Revenue Bonds, The University of Chicago, Series 2012A,
10/21 at 100.00
Aa1
4,673,873
   
5.000%, 10/01/51
      
9,000
  
Illinois Health Facilities Authority, Revenue Bonds, Covenant Retirement Communities Inc.,
9/12 at 100.00
BBB+ (4)
9,099,810
   
Series 2001, 5.875%, 12/01/31 (Pre-refunded 9/24/12)
      
5,000
  
Lake County School District 38, Big Hallow, Illinois, General Obligation Bonds, Series 2005,
No Opt. Call
N/R
3,169,950
   
0.000%, 2/01/22 – AMBAC Insured
      
7,000
  
Lombard Public Facilities Corporation, Illinois, First Tier Conference Center and Hotel
1/16 at 100.00
N/R
4,881,800
   
Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36
      
12,000
  
Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project
6/20 at 100.00
AAA
13,458,599
   
Refunding Bonds, Series 2010A, 5.500%, 6/15/50
      
45,000
  
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion
No Opt. Call
AAA
9,577,800
   
Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/43 – AGM Insured
      
2,790
  
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place
No Opt. Call
AAA
3,391,133
   
Expansion Project, Series 1998A, 5.500%, 6/15/29 – FGIC Insured
      
10,000
  
Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.000%, 12/01/41 – AGM Insured
12/14 at 100.00
Aaa
10,765,200
139,710
  
Total Illinois
    
107,411,049
   
Indiana – 3.8% (2.7% of Total Investments)
      
4,230
  
Indiana Finance Authority, Educational Facilities Revenue Bonds, Tudor Park Foundation, Series
6/15 at 100.00
Aa3
4,509,476
   
2005B, 5.000%, 6/01/24
      
6,700
  
Indiana Finance Authority, Wastewater Utility Revenue Bonds, CWA Authority Project, Series
10/21 at 100.00
AA–
7,390,770
   
2011B, 5.000%, 10/01/41
      
2,600
  
Indiana Health Facility Financing Authority, Revenue Bonds, Community Hospitals of Indiana,
5/15 at 100.00
A+
2,669,290
   
Series 2005A, 5.000%, 5/01/35 – AMBAC Insured
      
3,500
  
University of Southern Indiana, Student Fee Revenue Bonds, Series 2001H, 5.000%, 10/01/21 –
10/12 at 100.00
A1
3,508,190
   
AMBAC Insured
      
   
Vigo County Hospital Authority, Indiana, Revenue Bonds, Union Hospital, Series 2007:
      
2,500
  
5.750%, 9/01/42
9/17 at 100.00
N/R
2,576,350
2,500
  
5.800%, 9/01/47
9/17 at 100.00
N/R
2,582,125
1,090
  
Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.500%,
1/13 at 101.00
A1 (4)
1,127,409
   
7/15/22 (Pre-refunded 1/15/13) – AMBAC Insured
      
23,120
  
Total Indiana
    
24,363,610
   
Iowa – 0.1% (0.1% of Total Investments)
      
1,000
  
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C,
6/15 at 100.00
B+
898,230
   
5.625%, 6/01/46
      
   
Kansas – 0.3% (0.2% of Total Investments)
      
   
Manhattan Health Care Facility Revenue Bonds, Kansas, Meadowlarks Hills Retirement,
      
   
Series 2007B:
      
1,000
  
5.125%, 5/15/37
5/14 at 103.00
N/R
998,950
1,000
  
5.125%, 5/15/42
5/14 at 103.00
N/R
995,830
2,000
  
Total Kansas
    
1,994,780
   
Kentucky – 1.3% (0.9% of Total Investments)
      
1,000
  
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds,
6/18 at 100.00
AA–
1,099,530
   
Louisville Arena Authority, Inc., Series 2008-A1, 6.000%, 12/01/42 – AGC Insured
      
5,400
  
Lexington-Fayette Urban County Government Public Facilities Corporation, Kentucky State Lease
6/21 at 100.00
Aa3
6,238,944
   
Revenue Bonds, Eastern State Hospital Project, Series 2011A, 5.250%, 6/01/29
      
645
  
Warren County, Kentucky, Hospital Revenue Bonds, Bowling Green-Warren County Community
10/22 at 100.00
A
651,153
   
Hospital Corporation, Series 2012A, 4.000%, 10/01/29 (WI/DD, Settling 8/01/12)
      
7,045
  
Total Kentucky
    
7,989,627
   
Louisiana – 7.4% (5.2% of Total Investments)
      
2,000
  
Jefferson Parish Hospital Service District 2, Louisiana, Hospital Revenue Bonds, East
7/21 at 100.00
Baa2
2,324,700
   
Jefferson General Hospital, Refunding Series 2011, 6.375%, 7/01/41
      
3,000
  
Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue
11/17 at 100.00
BBB–
3,377,880
   
Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
      
10,000
  
Louisiana Public Facilities Authority, Revenue Bonds, Loyola University Project, Refunding
10/21 at 100.00
A+
11,072,000
   
Series 2011, 5.000%, 10/01/41
      
3,700
  
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project,
5/17 at 100.00
Baa1
3,861,098
   
Series 2007A, 5.500%, 5/15/47
      
4,425
  
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project,
5/21 at 100.00
Baa1
5,277,299
   
Series 2011, 6.750%, 5/15/41
      
20,890
  
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds,
11/12 at 100.00
A–
21,307,588
   
Series 2001B, 5.875%, 5/15/39
      
44,015
  
Total Louisiana
    
47,220,565
   
Maryland – 2.3% (1.6% of Total Investments)
      
1,000
  
Howard County, Maryland, Retirement Community Revenue Bonds, Vantage House, Series 2007B,
4/17 at 100.00
N/R
989,690
   
5.250%, 4/01/37
      
950
  
Maryland Community Development Administration, Insured Multifamily Housing Mortgage Loan
1/13 at 100.00
Aa2 (4)
951,634
   
Revenue Bonds, Series 2001B, 5.250%, 7/01/21 (Pre-refunded N/A) (Alternative Minimum Tax)
      
2,000
  
Maryland Economic Development Corporation, Revenue Bonds, Chesapeake Bay Hyatt Conference
12/16 at 100.00
N/R
1,368,920
   
Center, Series 2006A, 5.000%, 12/01/31
      
10,600
  
Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995,
9/12 at 100.00
N/R
10,662,540
   
7.400%, 9/01/19 (Alternative Minimum Tax)
      
555
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Ridge
7/17 at 100.00
A–
569,530
   
Retirement Community, Series 2007, 4.750%, 7/01/34
      
15,105
  
Total Maryland
    
14,542,314
   
Massachusetts – 6.1% (4.3% of Total Investments)
      
1,375
  
Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007,
10/12 at 102.00
N/R
1,390,386
   
5.250%, 10/01/26
      
1,000
  
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital
7/15 at 100.00
BB–
1,009,900
   
Project, Series 2005D, 5.250%, 7/01/30
      
1,600
  
Massachusetts Health and Educational Facilities Authority, Revenue Refunding Bonds, Suffolk
7/19 at 100.00
BBB
1,783,520
   
University Issue, Series 2009A, 5.750%, 7/01/39
      
400
  
Massachusetts Port Authority, Special Facilities Revenue Bonds, ConRac Project, Series 2011A,
7/21 at 100.00
A
445,676
   
5.125%, 7/01/41
      
5,000
  
Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series
1/13 at 100.00
N/R
4,999,800
   
2001A, 5.500%, 1/01/18 – AMBAC Insured (Alternative Minimum Tax)
      
3,465
  
Massachusetts Water Resources Authority, General Revenue Bonds, Series 2007A, 4.500%,
2/17 at 100.00
AA+
3,627,231
   
8/01/46 – AGM Insured (UB) (5)
      
5,000
  
Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2002C, 5.250%, 11/01/30
11/12 at 100.00
AA+ (4)
5,063,550
   
(Pre-refunded 11/01/12)
      
   
Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2002E:
      
2,255
  
5.250%, 1/01/22 (Pre-refunded 1/01/13) – FGIC Insured
1/13 at 100.00
AA+ (4)
2,302,535
7,495
  
5.250%, 1/01/22 (Pre-refunded 1/01/13) – FGIC Insured
1/13 at 100.00
AA+ (4)
7,652,995
7,165
  
Metropolitan Boston Transit Parking Corporation, Massachusetts, Systemwide Senior Lien Parking
7/21 at 100.00
A+
7,892,462
   
Revenue Bonds, Series 2011, 5.000%, 7/01/41
      
3,210
  
Worcester, Massachusetts, General Obligation Bonds, Series 2011, 3.000%, 8/15/12 – AGM Insured
No Opt. Call
AA–
3,213,531
37,965
  
Total Massachusetts
    
39,381,586
   
Michigan – 8.3% (5.8% of Total Investments)
      
15,000
  
Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site
No Opt. Call
Aa2
18,646,050
   
Improvement Bonds, Series 2001A, 6.000%, 5/01/29 – AGM Insured (UB)
      
690
  
Detroit Water and Sewerage Department, Michigan, Sewage Disposal System Revenue Bonds,
7/22 at 100.00
A+
729,026
   
Refunding Senior Lien Series 2012A, 5.250%, 7/01/39
      
2,000
  
Garden City Hospital Finance Authority, Michigan, Revenue Bonds, Garden City Hospital
8/17 at 100.00
N/R
1,764,400
   
Obligated Group, Series 2007A, 5.000%, 8/15/38
      
3,580
  
Lansing Board of Water and Light, Michigan, Utility System Revenue Bonds Series 2011A,
7/21 at 100.00
AA–
4,249,388
   
5.500%, 7/01/41
      
5,000
  
Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011,
12/21 at 100.00
AA
5,548,400
   
5.000%, 12/01/39
      
13,000
  
Michigan Finance Authority, Unemployment Obligation Assessment Revenue Bonds, Series 2012A,
No Opt. Call
AAA
14,157,649
   
5.000%, 7/01/14
      
2,250
  
Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series
10/21 at 100.00
Aa3
2,591,865
   
2011-I-A, 5.375%, 10/15/41
      
1,545
  
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sisters of Mercy
No Opt. Call
BBB (4)
1,610,292
   
Health Corporation, Series 1993P, 5.375%, 8/15/14 – NPFG Insured (ETM)
      
   
Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group,
      
   
Series 2006A:
      
2,865
  
5.000%, 12/01/31 (UB)
12/16 at 100.00
AA
3,088,241
635
  
5.000%, 12/01/31 (Pre-refunded 12/01/16) (UB)
12/16 at 100.00
N/R (4)
752,412
46,565
  
Total Michigan
    
53,137,723
   
Minnesota – 1.2% (0.8% of Total Investments)
      
2,170
  
Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily
10/12 at 104.00
Aaa
2,280,974
   
Housing Revenue Bonds, Rose Apartments Project, Series 2001, 6.350%, 10/20/37
      
   
(Alternative Minimum Tax)
      
3,000
  
Minnesota State, General Obligation Bonds, Various Purpose, Refunding Series 2010D,
No Opt. Call
AA+
3,712,710
   
5.000%, 8/01/18
      
1,375
  
Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, Regions Hospital Parking Ramp
8/16 at 100.00
N/R
1,397,646
   
Project, Series 2007-1, 5.000%, 8/01/36
      
6,545
  
Total Minnesota
    
7,391,330
   
Mississippi – 0.8% (0.6% of Total Investments)
      
2,155
  
Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage
11/12 at 100.00
AA+
2,158,060
   
Revenue Refunding Bonds, Aldersgate Retirement Community Inc. Project, Series 1999A,
      
   
5.450%, 5/20/34
      
3,000
  
Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds, Baptist Memorial
9/14 at 100.00
AA
3,137,880
   
Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB)
      
5,155
  
Total Mississippi
    
5,295,940
   
Missouri – 1.1% (0.8% of Total Investments)
      
1,495
  
Cape Girardeau County Industrial Development Authority, Missouri, Health Facilities Revenue
6/17 at 100.00
BBB+
1,520,236
   
Bonds, Southeast Missouri Hospital Association, Series 2007, 5.000%, 6/01/36
      
1,000
  
Clinton County Industrial Development Authority, Missouri, Revenue Bonds, Cameron Regional
12/17 at 100.00
N/R
1,010,420
   
Medical Center, Series 2007, 5.000%, 12/01/32
      
1,825
  
Fenton, Missouri, Tax Increment Refunding and Improvement Revenue Bonds, Gravois Bluffs
10/12 at 100.00
AAA
1,843,177
   
Redevelopment Project, Series 2002, 6.125%, 10/01/21 (Pre-refunded 10/01/12)
      
2,500
  
Missouri Health and Educational Facilities Authority, Revenue Bonds, Washington University,
11/21 at 100.00
AAA
2,968,375
   
Series 2011B, 5.000%, 11/15/37
      
6,820
  
Total Missouri
    
7,342,208
   
Montana – 0.8% (0.5% of Total Investments)
      
5,000
  
Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company, Series
1/13 at 100.00
B+
5,017,350
   
2000, 8.000%, 7/01/20 (Alternative Minimum Tax)
      
   
Nebraska – 0.8% (0.6% of Total Investments)
      
3,390
  
Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2010A,
9/12 at 100.00
AA+ (4)
3,606,757
   
6.050%, 9/01/41 (Pre-refunded 9/01/12)
      
1,005
  
Omaha Public Power District, Nebraska, Separate Electric System Revenue Bonds, Nebraska
2/17 at 100.00
AA+
1,749,333
   
City 2, Series 2006A, 20.031%, 8/01/40 – AMBAC Insured (IF)
      
4,395
  
Total Nebraska
    
5,356,090
   
Nevada – 5.4% (3.8% of Total Investments)
      
10,000
  
Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien Series 2010B, 5.750%, 7/01/42
1/20 at 100.00
A+
11,482,900
6,000
  
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran
1/20 at 100.00
A+
6,600,240
   
International Airport, Series 2010A, 5.250%, 7/01/42
      
4,000
  
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas
1/13 at 100.00
N/R
40
   
Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (6)
      
5,000
  
Henderson, Nevada, General Obligation Sewer Bonds, Series 2004, 5.000%, 6/01/34 (Pre-refunded
12/14 at 100.00
AA (4)
5,540,150
   
12/01/14) – FGIC Insured
      
10,000
  
Las Vegas Valley Water District, Nevada, Limited Tax General Obligation Bonds, Water &
6/21 at 100.00
AA+
11,288,900
   
Refunding Series 2011C, 5.000%, 6/01/38
      
35,000
  
Total Nevada
    
34,912,230
   
New Hampshire – 0.3% (0.2% of Total Investments)
      
2,000
  
New Hampshire Health and Education Authority, Hospital Revenue Bonds, Concord Hospital, Series
10/12 at 100.50
Aa3
2,027,160
   
2001, 5.500%, 10/01/21 – AGM Insured
      
   
New Jersey – 5.3% (3.7% of Total Investments)
      
10,000
  
New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water
11/12 at 101.00
A2
10,143,300
   
Company, Series 2002A, 5.250%, 11/01/32 – AMBAC Insured (Alternative Minimum Tax)
      
955
  
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center,
7/13 at 100.00
Ba2
960,291
   
Series 2003, 5.500%, 7/01/33
      
4,125
  
New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration
No Opt. Call
Aa3
4,345,399
   
Grants, Series 2002A, 5.500%, 9/15/13 – AMBAC Insured
      
12,970
  
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital
No Opt. Call
A+
4,953,243
   
Appreciation Series 2010A, 0.000%, 12/15/33
      
20,000
  
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C,
No Opt. Call
AA–
7,571,400
   
0.000%, 12/15/33 – AGM Insured
      
7,260
  
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
6/17 at 100.00
B2
5,846,188
   
Series 2007-1A, 4.750%, 6/01/34
      
55,310
  
Total New Jersey
    
33,819,821
   
New York – 8.6% (6.0% of Total Investments)
      
900
  
Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter
4/17 at 100.00
BBB–
888,840
   
Schools, Series 2007A, 5.000%, 4/01/32
      
   
Brooklyn Arena Local Development Corporation, New York, Payment in Lieu of Taxes Revenue
      
   
Bonds, Barclays Center Project, Series 2009:
      
1,275
  
6.000%, 7/15/30
1/20 at 100.00
BBB–
1,469,004
3,400
  
0.000%, 7/15/44
No Opt. Call
BBB–
639,030
4,675
  
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General
3/21 at 100.00
AAA
5,325,293
   
Purpose Series 2011C, 5.000%, 3/15/41
      
1,780
  
East Rochester Housing Authority, New York, GNMA Secured Revenue Bonds, Gates Senior Housing
9/12 at 101.00
N/R (4)
1,799,402
   
Inc., Series 2001, 5.300%, 4/20/31 (Pre-refunded 9/17/12)
      
2,100
  
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series
2/21 at 100.00
A
2,465,589
   
2011A, 5.750%, 2/15/47
      
5,010
  
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%,
2/17 at 100.00
A
5,155,941
   
2/15/47 – NPFG Insured
      
1,200
  
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2011A, 5.000%,
5/21 at 100.00
AA–
1,347,576
   
5/01/36 – AGM Insured
      
5,555
  
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2012A,
9/22 at 100.00
A
6,225,044
   
5.000%, 9/01/42
      
750
  
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2011A,
11/21 at 100.00
A
838,208
   
5.000%, 11/15/41
      
4,155
  
Monroe County Airport Authority, New York, Revenue Refunding Bonds, Greater Rochester
No Opt. Call
BBB
4,219,486
   
International Airport, Series 1999, 5.750%, 1/01/13 – NPFG Insured (Alternative Minimum Tax)
      
8,000
  
New York City Industrial Development Agency, New York, American Airlines-JFK International
8/16 at 101.00
N/R
8,531,680
   
Airport Special Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax)
      
3,125
  
New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue
12/20 at 100.00
AA+
3,682,156
   
Bonds, Second Generation Resolution, Fiscal 2011 Series EE, 5.375%, 6/15/43
      
8,000
  
New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local
10/14 at 100.00
AAA
8,795,680
   
Government Assistance Corporation, Series 2004A, 5.000%, 10/15/21 – NPFG Insured
      
60
  
New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20 –
8/13 at 100.00
AA
60,259
   
NPFG Insured
      
3,000
  
New York State Power Authority, General Revenue Bonds, Series 2011A, 5.000%, 11/15/38
11/21 at 100.00
Aa2
3,489,750
52,985
  
Total New York
    
54,932,938
   
North Carolina – 1.1% (0.8% of Total Investments)
      
1,710
  
Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue
1/18 at 100.00
AA–
2,031,360
   
Bonds, Series 2008, Trust 1149, 14.819%, 7/15/32 (IF) (5)
      
1,200
  
Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care System Revenue Bonds,
1/17 at 100.00
AA–
1,289,268
   
Carolinas Health Care, Series 2007A, 5.000%, 1/15/31
      
1,750
  
Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA
1/15 at 100.00
AA+ (4)
1,942,220
   
Carolinas Healthcare System, Series 2005A, 4.875%, 1/15/32 (Pre-refunded 1/15/15)
      
520
  
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A,
No Opt. Call
N/R (4)
531,596
   
5.500%, 1/01/13 (ETM)
      
1,085
  
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A,
No Opt. Call
A
1,108,501
   
5.500%, 1/01/13
      
6,265
  
Total North Carolina
    
6,902,945
   
Ohio – 2.4% (1.7% of Total Investments)
      
   
Allen County, Ohio, Hospital Facilities Revenue Bonds, Catholic Health Partners, Refunding and
      
   
Improvement Series 2012A:
      
650
  
5.000%, 5/01/33
5/22 at 100.00
AA–
727,922
970
  
4.000%, 5/01/33
5/22 at 100.00
AA–
981,291
800
  
5.000%, 5/01/42
5/22 at 100.00
AA–
874,496
   
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue
      
   
Bonds, Senior Lien, Series 2007A-2:
      
4,735
  
5.125%, 6/01/24
6/17 at 100.00
B
3,974,133
710
  
5.875%, 6/01/30
6/17 at 100.00
B+
589,563
685
  
5.750%, 6/01/34
6/17 at 100.00
BB
557,741
1,570
  
5.875%, 6/01/47
6/17 at 100.00
BB
1,275,295
5,800
  
Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Series 2011A,
11/21 at 100.00
AA+
6,385,452
   
5.000%, 11/15/41
      
15,920
  
Total Ohio
    
15,365,893
   
Oklahoma – 1.9% (1.4% of Total Investments)
      
   
Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007:
      
4,370
  
5.000%, 2/15/37
2/17 at 100.00
A
4,582,032
955
  
5.000%, 2/15/42
2/17 at 100.00
A
997,287
6,305
  
Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health
12/16 at 100.00
AA+
6,691,686
   
System, Series 2006, 5.000%, 12/15/36 (UB)
      
88
  
Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health
12/16 at 100.00
AA+
97,812
   
System, Series 2008, Trust 3500, 8.391%, 6/15/30 (IF)
      
11,718
  
Total Oklahoma
    
12,368,817
   
Oregon – 0.7% (0.5% of Total Investments)
      
4,700
  
Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds,
11/12 at 100.00
AA–
4,738,211
   
PeaceHealth Project, Series 2001, 5.250%, 11/15/21 – AMBAC Insured
      
   
Pennsylvania – 3.5% (2.4% of Total Investments)
      
500
  
Bucks County Industrial Development Authority, Pennsylvania, Charter School Revenue Bonds,
3/17 at 100.00
BBB
494,385
   
School Lane Charter School, Series 2007A, 5.000%, 3/15/37
      
3,500
  
Pennsylvania Economic Development Financing Authority, Senior Lien Resource Recovery Revenue
1/13 at 100.00
D
2,241,680
   
Bonds, Northampton Generating Project, Series 1994A, 6.600%, 1/01/19 (Alternative
      
   
Minimum Tax) (6)
      
5,605
  
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Senior Lien Series 2012A,
12/22 at 100.00
Aa3
6,409,542
   
5.000%, 12/01/42
      
12,500
  
State Public School Building Authority, Pennsylvania, Lease Revenue Bonds, Philadelphia School
6/13 at 100.00
AA+ (4)
12,992,374
   
District, Series 2003, 5.000%, 6/01/33 (Pre-refunded 6/01/13) – AGM Insured
      
22,105
  
Total Pennsylvania
    
22,137,981
   
Puerto Rico – 0.4% (0.3% of Total Investments)
      
2,500
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A,
8/17 at 100.00
AA–
2,658,875
   
5.250%, 8/01/57
      
   
Tennessee – 0.5% (0.3% of Total Investments)
      
1,595
  
Harpeth Valley Utilities District, Davidson and Williamson Counties, Tennessee, Utilities
9/22 at 100.00
AA
1,618,128
   
Revenue Bonds, Series 2012A, 4.000%, 9/01/42
      
3,680
  
Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue
1/17 at 30.07
A
894,939
   
Refunding Bonds, Covenant Health, Series 2006, 0.000%, 1/01/41
      
275
  
Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds,
9/16 at 100.00
BBB+
287,348
   
Wellmont Health System, Series 2006C, 5.250%, 9/01/36
      
   
Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding
      
   
Bonds, Sumner Regional Health System Inc., Series 2007:
      
800
  
5.500%, 11/01/37 (6)
11/17 at 100.00
N/R
15,992
2,800
  
5.500%, 11/01/46 (6)
11/17 at 100.00
N/R
55,972
9,150
  
Total Tennessee
    
2,872,379
   
Texas – 16.7% (11.8% of Total Investments)
      
5,445
  
Board of Regents, University of Texas System, Financing System Revenue Bonds, Series 2006F,
2/17 at 100.00
AAA
5,716,433
   
4.250%, 8/15/36 (UB)
      
2,700
  
Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011,
1/21 at 100.00
BBB–
3,138,804
   
6.250%, 1/01/46
      
4,500
  
Colorado River Municipal Water District, Texas, Water System Revenue Bonds, Series 2011,
1/21 at 100.00
AA–
5,052,825
   
5.000%, 1/01/36
      
1,455
  
Dallas-Fort Worth International Airport, Texas, Joint Revenue Bonds, Refunding and Improvement
11/13 at 100.00
A+
1,456,833
   
Bonds, Series 2001A, 5.500%, 11/01/35 – FGIC Insured (Alternative Minimum Tax)
      
5,000
  
Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional Health System, Series 2004A,
9/14 at 100.00
N/R
5,365,150
   
7.000%, 9/01/25
      
10,000
  
Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2011D,
11/21 at 100.00
AA
11,553,500
   
5.000%, 11/15/40
      
4,965
  
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment
9/16 at 100.00
A2
5,587,959
   
Facilities Department, Refunding Series 2011B, 5.250%, 9/01/27
      
6,000
  
Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2001B,
No Opt. Call
AA+ (4)
8,640,540
   
5.500%, 12/01/29 – NPFG Insured (ETM)
      
14,200
  
Hutto Independent School District, Williamson County, Texas, General Obligation Bonds, Series
8/16 at 100.00
AAA
15,083,382
   
2007A, 4.750%, 8/01/43 (UB)
      
8,000
  
Lower Colorado River Authority, Texas, Transmission Contract Refunding Revenue Bonds, LCRA
5/20 at 100.00
A+
8,866,160
   
Transmission Services Corporation Project, Refunding & Improvement Series 2010,
      
   
5.000%, 5/15/40
      
1,750
  
Martin County Hospital District, Texas, Combination Limited Tax and Revenue Bonds, Series
4/21 at 100.00
BBB
1,952,300
   
2011A, 7.250%, 4/01/36
      
2,500
  
Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston
No Opt. Call
A
2,848,700
   
Light and Power Company, Series 1997, 5.125%, 11/01/28 – AMBAC Insured (Alternative
      
   
Minimum Tax)
      
3,150
  
North Texas Tollway Authority, Second Tier System Revenue Refunding Bonds, Series 2008F,
1/18 at 100.00
A3
3,463,425
   
5.750%, 1/01/38
      
   
North Texas Tollway Authority, Special Projects System Revenue Bonds, Series 2011A:
      
4,370
  
0.000%, 9/01/43
9/31 at 100.00
AA
3,090,508
9,130
  
0.000%, 9/01/45
9/31 at 100.00
AA
7,115,922
3,500
  
Southwest Higher Education Authority Inc, Texas, Revenue Bonds, Southern Methodist University,
10/20 at 100.00
AA–
3,972,360
   
Series 2010, 5.000%, 10/01/41
      
7,700
  
Tarrant County Cultural & Educational Facilities Financing Corporation, Texas, Revenue Bonds,
2/17 at 100.00
AA–
8,279,425
   
Texas Health Resources, Series 2007A, 5.000%, 2/15/36 (UB)
      
   
White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds,
      
   
Series 2006:
      
9,110
  
0.000%, 8/15/37
8/15 at 31.98
AAA
2,613,477
9,110
  
0.000%, 8/15/40
8/15 at 27.11
AAA
2,198,699
7,110
  
0.000%, 8/15/44
8/15 at 21.88
AAA
1,380,407
119,695
  
Total Texas
    
107,376,809
   
Utah – 0.3% (0.2% of Total Investments)
      
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E:
      
505
  
5.200%, 1/01/18 (Alternative Minimum Tax)
1/13 at 100.00
AA–
506,661
225
  
5.500%, 1/01/23 (Alternative Minimum Tax)
1/13 at 100.00
Aaa
233,746
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1:
      
805
  
4.950%, 7/01/18 (Alternative Minimum Tax)
1/13 at 100.00
AA–
813,396
340
  
5.300%, 7/01/23 (Alternative Minimum Tax)
1/13 at 100.00
Aaa
351,873
1,875
  
Total Utah
    
1,905,676
   
Virginia – 0.3% (0.2% of Total Investments)
      
1,000
  
Chesterfield County Health Center Commission, Virginia, Mortgage Revenue Bonds, Lucy Corr
12/15 at 100.00
N/R
1,013,760
   
Village, Series 2005, 5.375%, 12/01/28
      
1,000
  
Virginia Commonwealth University Health System Authority, General Revenue Bonds, Series 2011,
7/21 at 100.00
AA–
1,104,280
   
4.750%, 7/01/41
      
2,000
  
Total Virginia
    
2,118,040
   
Washington – 4.9% (3.5% of Total Investments)
      
2,500
  
King County, Washington, Sewer Revenue Bonds, Series 2009, 5.250%, 1/01/42
1/19 at 100.00
AA+
2,963,975
1,820
  
Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Refunding Series 2012A,
8/22 at 100.00
Aa3
2,157,537
   
5.000%, 8/01/30
      
5,205
  
Port of Seattle, Washington, Revenue Bonds, Series 2005A, 5.000%, 3/01/35 – NPFG Insured
3/15 at 100.00
Aa3
5,632,435
10,000
  
Washington Health Care Facilities Authority, Revenue Bonds, Catholic Health, Series 2011A,
2/21 at 100.00
AA
11,036,600
   
5.000%, 2/01/41
      
3,410
  
Washington Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research
1/21 at 100.00
A
3,780,735
   
Center, Series 2011A, 5.625%, 1/01/35
      
   
Washington State Health Care Facilities Authority, Revenue Bonds, Group Health Cooperative of
      
   
Puget Sound, Series 2001:
      
3,005
  
5.375%, 12/01/17 – AMBAC Insured
12/12 at 100.00
BBB–
3,025,164
2,915
  
5.375%, 12/01/18 – AMBAC Insured
12/12 at 100.00
BBB–
2,933,598
28,855
  
Total Washington
    
31,530,044
   
Wisconsin – 0.3% (0.2% of Total Investments)
      
1,000
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Franciscan Sisters of
9/17 at 100.00
BBB+
1,037,400
   
Christian Charity HealthCare Ministry, Series 2007, 5.000%, 9/01/33
      
350
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Froedtert and Community
10/12 at 100.00
AA–
351,257
   
Health Obligated Group, Series 2001, 5.375%, 10/01/30
      
330
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan
8/13 at 100.00
A–
333,650
   
Services Inc., Series 2003A, 5.125%, 8/15/33
      
1,680
  
Total Wisconsin
    
1,722,307
$ 945,668
  
Total Municipal Bonds (cost $828,435,868)
    
893,165,919
Shares
  
Description (1)
    
Value
   
Investment Companies – 0.6% (0.5% of Total Investments)
      
6,266
  
BlackRock MuniHoldings Fund Inc.
    
$ 117,174
26,880
  
Dreyfus Strategic Municipal Fund
    
263,155
131,278
  
DWS Municipal Income Trust
    
2,011,179
43,020
  
Invesco VK Investment Grade Municipal Trust
    
675,845
30,000
  
Invesco VK Municipal Opportunity Trust
    
462,000
43,420
  
PIMCO Municipal Income Fund II
    
575,315
   
Total Investment Companies (cost $3,325,133)
    
4,104,668
Principal
    
Optional Call
    
Amount (000)
  
Description (1)
Provisions (2)
Ratings (3)
Value
   
Short-Term Investments – 2.2% (1.5% of Total Investments)
      
   
Iowa – 1.3% (0.9% of Total Investments)
      
$ 8,500
  
Iowa State, Special Obligation Bonds, I-Jobs Program, Tender Option Bond Trust 13B-B REG D,
6/19 at 100.00
AA
$ 8,500,000
   
Variable Rate Demand Series, 0.150%, 6/01/26 (8)
      
   
Washington – 0.9% (0.6% of Total Investments)
      
5,480
  
Bellingham, Washington, Water and Sewer Revenue Bonds, Tender Option Bond Trust 11981X,
No Opt. Call
Aa2
5,480,000
   
Variable Rate Demand Series, 0.180%, 8/01/19 (8)
      
$ 13,980
  
Total Short-Term Investments (cost $13,980,000)
    
13,980,000
   
Total Investments (cost $845,741,001) – 142.0%
    
911,250,587
   
Floating Rate Obligations – (6.9)%
    
(44,412,000)
   
MuniFund Rate Term Preferred Shares, at Liquidation Value – (10.9)% (9)
    
(70,000,000)
   
Variable Rate MuniFund Term Preferred Shares, at Liquidation Value – (26.4)% (9)
    
(169,200,000)
   
Other Assets Less Liabilities – 2.2%
    
13,974,871
   
Net Assets Applicable to Common Shares – 100%
    
$ 641,613,458
 

 
 
 
 
Fair Value Measurements
 
 
Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
 
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 – Prices are determined using significant unobservable inputs (including management's assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund's fair value measurements as of the end of the reporting period:
 
                         
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Long-Term Investments:
                        
Municipal Bonds
   $ —     $ 892,674,522     $ 491,397     $ 893,165,919  
Investment Companies
     4,104,668       —       —       4,104,668  
Short-Term Investments:
                                
Municipal Bonds
     —       13,980,000       —       13,980,000  
Total
   $ 4,104,668     $ 906,654,522     $ 491,397     $ 911,250,587  
 
The Nuveen funds’ Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds’ pricing policies, and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
 
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
 
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.
 
Income Tax Information
 
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
 
At July 31, 2012, the cost of investments was $803,922,125.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 2012, were as follows:
 
       
Gross unrealized:
      
Appreciation
   $ 77,664,104  
Depreciation
     (14,685,956 )
Net unrealized appreciation (depreciation) of investments
   $ 62,978,148  
 
 
     
(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 Investors 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)
  
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. Certain bonds backed by U.S.
   
Government or agency securities are regarded as having an implied rating equal to the rating of
   
such securities.
(5)
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations
   
for investments in inverse floating rate transactions.
(6)
  
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income
   
producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the
   
payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the
   
Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations
   
and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(7)
  
For fair value measurement disclosure purposes, investment categorized as Level 3.
(8)
  
Investment has a maturity of more than one year, but has variable rate and demand features which
   
qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting
   
period. This rate changes periodically based on market conditions or a specified market index.
(9)
  
MuniFund Term Preferred Shares and Variable Rate MuniFund Preferred Shares, at Liquidation Value as
   
a percentage of Total Investments are 7.7% and 18.6%, respectively.
N/R
  
Not rated.
WI/DD
  
Investment, or portion of investment, purchased on a when-issued or delayed delivery basis.
(ETM)
  
Escrowed to maturity.
(IF)
  
Inverse floating rate investment.
(UB)
  
Underlying bond of an inverse floating rate trust reflected as a financing transaction.
 
 
 
 
 
 
Item 2. Controls and Procedures.

a.  
The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
 
b.  
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.

 
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
(Registrant)  Nuveen Dividend Advantage Municipal Fund 3 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date:         September 28, 2012        
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
By (Signature and Title)     /s/ Gifford R. Zimmerman                    
                                                    Gifford R. Zimmerman
                                                  Chief Administrative Officer (principal executive officer) 
 
Date:         September 28, 2012        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date:         September 28, 2012