nq2.htm



 
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:         1/31/11         
 
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)
      
   
January 31, 2011
      
Principal
    
Optional Call
    
Amount (000)
  
Description (1)
Provisions (2)
Ratings (3)
Value
   
Municipal Bonds – 150.6% (99.6% of Total Investments)
      
   
Alabama – 1.7% (1.1% of Total Investments)
      
$ 3,500
  
Alabama Special Care Facilities Financing Authority, Revenue Bonds, Ascension Health, Series
11/16 at 100.00
Aa1
$ 3,280,655
   
2006C-2, 5.000%, 11/15/36 (UB)
      
5,655
  
Alabama State Port Authority, Revenue Bonds, State Docks Department Facilities, Series 2001,
10/11 at 100.00
BBB (4)
5,821,314
   
5.250%, 10/01/26 (Pre-refunded 10/01/11) – AMBAC Insured (Alternative Minimum Tax)
      
9,155
  
Total Alabama
    
9,101,969
   
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
Baa3
589,340
   
Series 2006A, 5.000%, 6/01/46
      
   
Arizona – 0.9% (0.6% of Total Investments)
      
3,390
  
Arizona State Transportation Board, Highway Revenue Bonds, Series 2008, Trust 3151, 13.351%,
No Opt. Call
AAA
3,336,167
   
7/01/16 (IF)
      
2,200
  
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc
No Opt. Call
A
1,871,958
   
Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37
      
5,590
  
Total Arizona
    
5,208,125
   
Arkansas – 0.7% (0.5% of Total Investments)
      
   
Sebastian County Health Facilities Board, Arkansas, Hospital Revenue Improvement Bonds, Sparks
      
   
Regional Medical Center, Series 2001A:
      
1,805
  
5.500%, 11/01/13 (Pre-refunded 11/01/11)
11/11 at 101.00
N/R (4)
1,890,593
1,900
  
5.500%, 11/01/14 (Pre-refunded 11/01/11)
11/11 at 101.00
N/R (4)
1,990,098
3,705
  
Total Arkansas
    
3,880,691
   
California – 11.4% (7.6% of Total Investments)
      
   
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist
      
   
Health System/West, Series 2003A:
      
2,065
  
5.000%, 3/01/28
3/13 at 100.00
A
1,858,335
140
  
5.000%, 3/01/33
3/13 at 100.00
A
122,056
3,400
  
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services,
10/19 at 100.00
AA
3,281,000
   
Series 2009B, 5.500%, 10/01/39
      
2,900
  
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A,
11/16 at 100.00
AA–
2,419,035
   
5.000%, 11/15/42 (UB)
      
5,000
  
California Infrastructure Economic Development Bank, Revenue Bonds, Kaiser Hospital Assistance
8/11 at 102.00
A+
4,675,150
   
LLC, Series 2001A, 5.550%, 8/01/31
      
5,355
  
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender
No Opt. Call
AA–
4,174,330
   
Option Bond Trust 3175, 13.571%, 5/15/14 (IF)
      
2,575
  
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG
6/11 at 100.00
AA
2,575,077
   
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
8/12 at 32.87
A+
502,316
3,300
  
0.000%, 8/01/32 – FGIC Insured
8/12 at 30.97
A+
707,850
11,865
  
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed
6/17 at 100.00
Baa3
6,995,367
   
Bonds, Series 2007A-1, 5.125%, 6/01/47
      
   
Los Angeles Regional Airports Improvement Corporation, California, Lease Revenue Refunding
      
   
Bonds, LAXFUEL Corporation at Los Angeles International Airport, Series 2001:
      
10,510
  
5.750%, 1/01/16 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A–
10,727,347
5,000
  
5.375%, 1/01/21 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A–
5,018,350
1,500
  
5.250%, 1/01/23 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A–
1,488,795
10,000
  
5.500%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A–
9,312,400
12,000
  
Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital
8/30 at 100.00
A+
6,247,080
   
Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/40
      
10,000
  
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue
No Opt. Call
Baa1
1,213,700
   
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
918,900
   
2006C, 0.000%, 9/01/30 – NPFG Insured
      
90,790
  
Total California
    
62,237,088
   
Colorado – 6.4% (4.2% of Total Investments)
      
2,250
  
Canterberry Crossing Metropolitan District II, Parker, Colorado, Limited Tax General
12/12 at 100.00
N/R (4)
2,483,415
   
Obligation Bonds, Series 2002, 7.375%, 12/01/32 (Pre-refunded 12/01/12)
      
1,565
  
Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Belle
3/13 at 100.00
N/R (4)
1,752,471
   
Creek Education Center, Series 2002A, 7.625%, 3/15/32 (Pre-refunded 3/15/13)
      
1,775
  
Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Weld County
6/11 at 100.00
N/R (4)
1,815,683
   
School District 6 – Frontier Academy, Series 2001, 7.375%, 6/01/31 (Pre-refunded 6/01/11)
      
3,220
  
Colorado Educational and Cultural Facilities Authority, Revenue Bonds, Montessori Peaks
5/16 at 102.00
N/R
2,603,821
   
Academy, Series 2006A, 5.400%, 5/01/26
      
3,380
  
Colorado Housing Finance Authority, Multifamily Project Bonds, Class I, Series 2001A-1,
10/11 at 100.00
AAA
3,355,326
   
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
3,663,950
   
Series 2007, 5.600%, 12/01/34 – RAAI Insured
      
3,300
  
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006, 5.000%, 11/15/24 –
11/16 at 100.00
A+
3,348,279
   
FGIC Insured
      
   
Denver, Colorado, Airport Revenue Bonds, Series 2006A:
      
5,365
  
5.000%, 11/15/23 – FGIC Insured (UB)
11/16 at 100.00
A+
5,479,435
4,335
  
5.000%, 11/15/25 – FGIC Insured (UB)
11/16 at 100.00
A+
4,369,333
2,000
  
Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A,
11/11 at 100.00
A+
2,060,380
   
5.500%, 11/15/16 – FGIC Insured (Alternative Minimum Tax)
      
   
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
768,265
2,000
  
5.250%, 12/01/36 – RAAI Insured
12/17 at 100.00
N/R
1,515,040
1,000
  
Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003,
6/14 at 101.00
N/R
973,830
   
8.000%, 12/01/25
      
630
  
Regional Transportation District, Colorado, Certificates of Participation, Series 2010A,
6/20 at 100.00
Aa3
616,984
   
5.375%, 6/01/31
      
36,770
  
Total Colorado
    
34,806,212
   
Delaware – 0.2% (0.1% of Total Investments)
      
1,055
  
Delaware State Housing Authority, Multifamily Mortgage Revenue Bonds, Series 2001A,
7/12 at 100.00
Aa3
1,088,032
   
5.400%, 7/01/24
      
   
District of Columbia – 0.6% (0.4% of Total Investments)
      
1,335
  
Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax Revenue
10/16 at 100.00
AA+
897,294
   
Bonds, Series 2007, Residuals 1606, 11.381%, 10/01/30 – AMBAC Insured (IF)
      
3,335
  
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds,
10/16 at 100.00
AA+
2,241,554
   
Tender Option Bond Trust 1730, 11.357%, 10/01/30 – AMBAC Insured (IF)
      
4,670
  
Total District of Columbia
    
3,138,848
   
Florida – 1.6% (1.0% of Total Investments)
      
   
Orange County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Oak Glen
      
   
Apartments, Series 2001G:
      
1,105
  
5.400%, 12/01/32 – AGM Insured
12/11 at 100.00
AA+
1,077,265
2,195
  
5.450%, 12/01/41 – AGM Insured
12/11 at 100.00
AA+
2,103,293
5,455
  
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System
8/17 at 100.00
AA
4,700,301
   
Obligation Group, Series 2007, 5.000%, 8/15/42 (UB)
      
1,000
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007,
5/18 at 100.00
N/R
666,140
   
6.650%, 5/01/40
      
9,755
  
Total Florida
    
8,546,999
   
Georgia – 5.6% (3.7% of Total Investments)
      
5,000
  
Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 5.625%, 1/01/30 – FGIC Insured
7/11 at 100.50
A+
4,869,250
   
(Alternative Minimum Tax)
      
15,000
  
Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 2010C, 5.250%, 1/01/30
1/21 at 100.00
A1
14,561,700
2,700
  
Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, Series 2001, 7.900%, 12/01/24
12/11 at 101.00
AAA
2,895,237
   
(Pre-refunded 12/01/11)
      
3,000
  
Franklin County Industrial Building Authority, Georgia, Revenue Bonds, Ty Cobb Regional
12/20 at 100.00
N/R
2,924,280
   
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
1,196,980
   
Lenbrook Square Project, Series 2006A, 5.125%, 7/01/42
      
3,740
  
Gainesville and Hall County Hospital Authority, Georgia, Revenue Anticipation Certificates,
5/11 at 100.00
N/R (4)
3,795,988
   
Northeast Georgia Health Services Inc., Series 2001, 5.500%, 5/15/31 (Pre-refunded 5/15/11)
      
500
  
Gainesville Redevelopment Authority, Georgia, Educational Facilities Revenue Bonds, Riverside
3/17 at 100.00
N/R
360,405
   
Military Academy Project, Series 2007, 5.125%, 3/01/37
      
31,940
  
Total Georgia
    
30,603,840
   
Illinois – 16.5% (10.9% of Total Investments)
      
8,375
  
Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 5.500%, 1/01/19 – AGM Insured
1/12 at 100.00
AA+
8,460,676
   
(Alternative Minimum Tax)
      
4,950
  
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International
7/11 at 101.00
A2
4,472,028
   
Airport, Series 2001A, 5.375%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax)
      
2,220
  
Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2001A, 5.500%,
No Opt. Call
Aa3
2,411,564
   
1/01/16 – NPFG Insured
      
10,000
  
Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, 5.000%, 11/01/26
11/11 at 100.00
Aa2 (4)
10,346,200
   
(Pre-refunded 11/01/11) – AMBAC Insured
      
1,165
  
Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport,
1/16 at 100.00
A1
1,029,091
   
Series 2005A, 5.000%, 1/01/33 – FGIC Insured
      
8,875
  
Cook County, Illinois, General Obligation Bonds, Refunding Series 2010A, 5.250%, 11/15/33
11/20 at 100.00
AA
8,510,149
2,415
  
Illinois Finance Authority, General Obligation Debt Certificates, Local Government Program –
12/14 at 100.00
A2
2,333,397
   
Kankakee County, Series 2005B, 5.000%, 12/01/24 – AMBAC Insured
      
3,385
  
Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A,
8/17 at 100.00
BBB
2,837,036
   
5.500%, 8/01/37
      
9,000
  
Illinois Health Facilities Authority, Revenue Bonds, Covenant Retirement Communities Inc.,
12/11 at 101.00
BBB–
8,134,290
   
Series 2001, 5.875%, 12/01/31
      
15,000
  
Illinois Health Facilities Authority, Revenue Bonds, Loyola University Health System, Series
7/11 at 100.00
Baa3 (4)
15,347,100
   
2001A, 6.125%, 7/01/31 (Pre-refunded 7/01/11)
      
5,000
  
Lake County School District 38, Big Hallow, Illinois, General Obligation Bonds, Series 2005,
No Opt. Call
N/R
2,410,000
   
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
4,674,740
   
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
10,970,880
   
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
4,974,750
   
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
2,792,037
   
Expansion Project, Series 1998A, 5.500%, 6/15/29 – FGIC Insured
      
137,175
  
Total Illinois
    
89,703,938
   
Indiana – 6.2% (4.1% of Total Investments)
      
   
Clark-Pleasant Community School Building Corporation, Indiana, First Mortgage Bonds, Series 2001:
      
1,255
  
5.000%, 7/15/21 (Pre-refunded 1/15/12) – AMBAC Insured
1/12 at 100.00
AA+ (4)
1,308,363
1,000
  
5.000%, 1/15/26 (Pre-refunded 1/15/12) – AMBAC Insured
1/12 at 100.00
AA+ (4)
1,042,520
   
Evansville Vanderburgh Public Library Lease Corporation, Indiana, First Mortgage Bonds, Series 2001:
      
2,000
  
5.750%, 7/15/18 (Pre-refunded 1/15/12) – NPFG Insured
1/12 at 100.00
A+ (4)
2,101,280
2,750
  
5.125%, 1/15/24 (Pre-refunded 1/15/12) – NPFG Insured
1/12 at 100.00
A+ (4)
2,872,898
1,250
  
Hamilton Southeastern Cumberland Campus School Building Corporation, Indiana, First Mortgage
1/12 at 100.00
A (4)
1,305,863
   
Bonds, Series 2001, 5.125%, 1/15/23 (Pre-refunded 1/15/12) – AMBAC Insured
      
9,500
  
Indiana Educational Facilities Authority, Revenue Bonds, Butler University, Series 2001,
2/11 at 100.00
Baa1
9,499,620
   
5.500%, 2/01/26 – NPFG Insured
      
4,230
  
Indiana Finance Authority, Educational Facilities Revenue Bonds, Tudor Park Foundation, Series
6/15 at 100.00
Aa3
4,283,425
   
2005B, 5.000%, 6/01/24
      
2,600
  
Indiana Health Facility Financing Authority, Revenue Bonds, Community Hospitals of Indiana,
5/15 at 100.00
A
2,260,804
   
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 –
10/11 at 100.00
A1
3,517,850
   
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
2,052,925
2,500
  
5.800%, 9/01/47
9/17 at 100.00
N/R
2,037,300
1,090
  
Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.500%,
1/13 at 101.00
A1 (4)
1,200,831
   
7/15/22 (Pre-refunded 1/15/13) – AMBAC Insured
      
34,175
  
Total Indiana
    
33,483,679
   
Iowa – 5.7% (3.8% of Total Investments)
      
2,000
  
Iowa Finance Authority, Healthcare Revenue Bonds, Great River Medical Center, Series 2001,
5/11 at 100.00
Aa3
1,870,740
   
5.250%, 5/15/31 – AGM Insured
      
1,000
  
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C,
6/15 at 100.00
BBB
657,030
   
5.625%, 6/01/46
      
   
Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B:
      
23,665
  
5.300%, 6/01/25 (Pre-refunded 6/01/11)
6/11 at 101.00
AAA
24,259,228
3,950
  
5.600%, 6/01/35 (Pre-refunded 6/01/11)
6/11 at 101.00
AAA
4,057,480
30,615
  
Total Iowa
    
30,844,478
   
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
744,860
1,000
  
5.125%, 5/15/42
5/14 at 103.00
N/R
728,330
2,000
  
Total Kansas
    
1,473,190
   
Kentucky – 3.6% (2.4% of Total Investments)
      
1,000
  
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds,
6/18 at 100.00
AA+
1,015,650
   
Louisville Arena Authority, Inc., Series 2008-A1, 6.000%, 12/01/42 – AGC Insured
      
18,500
  
Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage
11/11 at 101.00
AA–
18,620,250
   
System Revenue Bonds, Series 2001A, 5.125%, 5/15/27 – NPFG Insured
      
19,500
  
Total Kentucky
    
19,635,900
   
Louisiana – 4.6% (3.0% of Total Investments)
      
3,000
  
Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue
11/17 at 100.00
BBB–
3,030,600
   
Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
      
3,700
  
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project,
5/17 at 100.00
Baa1
2,966,771
   
Series 2007A, 5.500%, 5/15/47
      
20,890
  
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds,
5/11 at 101.00
A–
19,057,529
   
Series 2001B, 5.875%, 5/15/39
      
27,590
  
Total Louisiana
    
25,054,900
   
Maine – 0.3% (0.2% of Total Investments)
      
1,440
  
Maine State Housing Authority, Single Family Mortgage Purchase Bonds, Series 2001B, 5.500%,
5/11 at 100.00
AA+
1,421,870
   
11/15/32 (Alternative Minimum Tax)
      
   
Maryland – 2.7% (1.8% of Total Investments)
      
1,000
  
Howard County, Maryland, Retirement Community Revenue Bonds, Vantage House, Series 2007B,
4/17 at 100.00
N/R
704,430
   
5.250%, 4/01/37
      
1,570
  
Maryland Community Development Administration, Insured Multifamily Housing Mortgage Loan
7/11 at 100.00
Aa2
1,573,234
   
Revenue Bonds, Series 2001B, 5.250%, 7/01/21 (Alternative Minimum Tax)
      
2,000
  
Maryland Economic Development Corporation, Revenue Bonds, Chesapeake Bay Hyatt Conference
12/16 at 100.00
N/R
1,252,880
   
Center, Series 2006A, 5.000%, 12/01/31
      
10,600
  
Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995,
3/11 at 100.00
N/R
10,598,092
   
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–
485,336
   
Retirement Community, Series 2007, 4.750%, 7/01/34
      
15,725
  
Total Maryland
    
14,613,972
   
Massachusetts – 2.9% (1.9% of Total Investments)
      
1,375
  
Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007,
10/12 at 102.00
N/R
1,098,446
   
5.250%, 10/01/26
      
1,000
  
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital
7/15 at 100.00
BB–
713,470
   
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
1,542,496
   
University Issue, Series 2009A, 5.750%, 7/01/39
      
4,860
  
Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 2008, Trust
No Opt. Call
AA
4,794,244
   
3145, 15.199%, 6/01/16 (IF)
      
5,000
  
Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series
7/11 at 101.00
N/R
4,517,600
   
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+
3,039,117
   
8/01/46 – AGM Insured (UB) (5)
      
17,300
  
Total Massachusetts
    
15,705,373
   
Michigan – 9.4% (6.2% of Total Investments)
      
15,000
  
Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site
No Opt. Call
AA+
14,889,900
   
Improvement Bonds, Series 2001A, 6.000%, 5/01/29 – AGM Insured (UB)
      
2,000
  
Garden City Hospital Finance Authority, Michigan, Revenue Bonds, Garden City Hospital
8/17 at 100.00
N/R
1,247,960
   
Obligated Group, Series 2007A, 5.000%, 8/15/38
      
11,000
  
Kent Hospital Finance Authority, Michigan, Revenue Bonds, Spectrum Health, Series 2001A,
7/11 at 101.00
AA (4)
11,363,440
   
5.500%, 1/15/31 (Pre-refunded 7/15/11)
      
1,165
  
Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I,
10/11 at 100.00
Aa3
1,193,368
   
5.500%, 10/15/18
      
70
  
Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I, 5.500%,
10/11 at 100.00
A+ (4)
72,471
   
10/15/18 (Pre-refunded 10/15/11)
      
3,210
  
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sisters of Mercy
No Opt. Call
AAA
3,437,910
   
Health Corporation, Series 1993P, 5.375%, 8/15/14 – NPFG Insured (ETM)
      
   
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sparrow Obligated
      
   
Group, Series 2001:
      
1,400
  
5.500%, 11/15/21 (Pre-refunded 11/15/11)
11/11 at 101.00
A+ (4)
1,469,034
2,500
  
5.625%, 11/15/31 (Pre-refunded 11/15/11)
11/11 at 101.00
A+ (4)
2,625,725
3,500
  
Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series
12/16 at 100.00
AA
3,199,210
   
2006A, 5.000%, 12/01/31 (UB)
      
12,640
  
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont
11/11 at 100.00
A1
11,355,144
   
Hospital, Series 2001M, 5.250%, 11/15/31 – NPFG Insured
      
52,485
  
Total Michigan
    
50,854,162
   
Minnesota – 1.3% (0.8% of Total Investments)
      
2,215
  
Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily Housing
10/11 at 105.00
Aaa
2,236,884
   
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
AAA
3,482,640
   
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
1,118,329
   
Project, Series 2007-1, 5.000%, 8/01/36
      
6,590
  
Total Minnesota
    
6,837,853
   
Mississippi – 0.9% (0.6% of Total Investments)
      
2,155
  
Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage
5/11 at 101.00
AAA
2,095,263
   
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
3,012,570
   
Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB)
      
5,155
  
Total Mississippi
    
5,107,833
   
Missouri – 3.1% (2.1% of Total Investments)
      
1,495
  
Cape Girardeau County Industrial Development Authority, Missouri, Health Facilities Revenue
6/17 at 100.00
N/R
1,230,908
   
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
689,420
   
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
N/R (4)
1,979,651
   
Redevelopment Project, Series 2002, 6.125%, 10/01/21 (Pre-refunded 10/01/12)
      
   
Missouri Development Finance Board, Cultural Facilities Revenue Bonds, Nelson Gallery
      
   
Foundation, Series 2001A:
      
3,335
  
5.250%, 12/01/19 (Pre-refunded 12/01/11) – NPFG Insured
12/11 at 100.00
AA– (4)
3,470,034
3,510
  
5.250%, 12/01/20 (Pre-refunded 12/01/11) – NPFG Insured
12/11 at 100.00
AA– (4)
3,652,120
3,695
  
5.250%, 12/01/21 (Pre-refunded 12/01/11) – NPFG Insured
12/11 at 100.00
AA– (4)
3,844,611
2,040
  
5.250%, 12/01/22 (Pre-refunded 12/01/11) – NPFG Insured
12/11 at 100.00
AA– (4)
2,122,600
16,900
  
Total Missouri
    
16,989,344
   
Montana – 0.9% (0.6% of Total Investments)
      
5,000
  
Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company, Series
7/11 at 100.50
B+
5,003,600
   
2000, 8.000%, 7/01/20 (Alternative Minimum Tax)
      
   
Nebraska – 1.6% (1.0% of Total Investments)
      
   
Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2001D:
      
1,000
  
5.250%, 9/01/21 (Pre-refunded 3/01/11) (Alternative Minimum Tax)
3/11 at 100.00
AAA
1,002,130
1,315
  
5.375%, 9/01/32 (Pre-refunded 3/01/11) (Alternative Minimum Tax)
3/11 at 100.00
AAA
1,341,063
5,000
  
Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2010A,
9/20 at 100.00
AAA
5,043,100
   
6.050%, 9/01/41
      
1,005
  
Omaha Public Power District, Nebraska, Separate Electric System Revenue Bonds, Nebraska
2/17 at 100.00
AA+
1,154,232
   
City 2, Series 2006A, 19.388%, 8/01/40 – AMBAC Insured (IF)
      
8,320
  
Total Nebraska
    
8,540,525
   
Nevada – 3.8% (2.5% of Total Investments)
      
10,000
  
Clark County, Nevada, Airport Revenue Bonds, Subordinte Lien Series 2010B, 5.750%, 7/01/42
1/20 at 100.00
Aa3
9,913,200
6,000
  
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran
1/20 at 100.00
Aa3
5,437,140
   
International Airport, Series 2010A, 5.250%, 7/01/42
      
2,000
  
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas
7/11 at 100.00
N/R
447,540
   
Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured (6)
      
4,000
  
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas
1/12 at 100.00
N/R
8,000
   
Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (6)
      
155
  
Nevada Housing Division, Single Family Mortgage Bonds, Senior Series 1998A-1, 5.300%, 4/01/18
4/11 at 100.00
Aaa
158,061
   
(Alternative Minimum Tax)
      
4,290
  
University of Nevada, Revenue Bonds, Community College System, Series 2001A, 5.250%, 7/01/26
1/12 at 100.00
Aa2 (4)
4,479,146
   
(Pre-refunded 1/01/12) – FGIC Insured
      
26,445
  
Total Nevada
    
20,443,087
   
New Hampshire – 0.4% (0.2% of Total Investments)
      
2,000
  
New Hampshire Health and Education Authority, Hospital Revenue Bonds, Concord Hospital, Series
10/11 at 101.00
Aa3
2,028,940
   
2001, 5.500%, 10/01/21 – AGM Insured
      
   
New Jersey – 5.1% (3.4% of Total Investments)
      
10,000
  
New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water
11/12 at 101.00
A2
9,289,300
   
Company, Series 2002A, 5.250%, 11/01/32 – AMBAC Insured (Alternative Minimum Tax)
      
620
  
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center,
7/13 at 100.00
Ba2
464,244
   
Series 2003, 5.500%, 7/01/33
      
4,125
  
New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration
No Opt. Call
Aa3
4,456,403
   
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
Aa3
2,828,757
   
Appreciation Series 2010A, 0.000%, 12/15/33
      
20,000
  
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C,
No Opt. Call
Aa3
6,277,400
   
0.000%, 12/15/28 – AMBAC Insured
      
7,045
  
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
6/17 at 100.00
Baa3
4,208,401
   
Series 2007-1A, 4.750%, 6/01/34
      
54,760
  
Total New Jersey
    
27,524,505
   
New York – 5.2% (3.5% of Total Investments)
      
900
  
Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter
4/17 at 100.00
N/R
689,652
   
Schools, Series 2007A, 5.000%, 4/01/32
      
   
Brooklyn Areba 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–
1,242,156
3,400
  
0.000%, 7/15/44
No Opt. Call
BBB–
313,854
1,780
  
East Rochester Housing Authority, New York, GNMA Secured Revenue Bonds, Gates Senior Housing
10/11 at 101.00
N/R
1,772,204
   
Inc., Series 2001, 5.300%, 4/20/31
      
5,010
  
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%,
2/17 at 100.00
A
3,799,835
   
2/15/47 – NPFG Insured
      
4,155
  
Monroe County Airport Authority, New York, Revenue Refunding Bonds, Greater Rochester
No Opt. Call
Baa1
4,363,373
   
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
B–
8,343,360
   
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+
3,141,438
   
Bonds, Second Generation Resolution, Fiscal 2011 Series EE, 5.375%, 6/15/43
      
910
  
New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20 –
8/12 at 100.00
AA
962,480
   
NPFG Insured
      
1,590
  
New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20
8/12 at 100.00
AA (4)
1,711,094
   
(Pre-refunded 8/01/12) – NPFG Insured
      
2,000
  
New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and
6/11 at 100.00
AA–
2,026,720
   
State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
      
32,145
  
Total New York
    
28,366,166
   
North Carolina – 1.1% (0.7% of Total Investments)
      
1,710
  
Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue
1/18 at 100.00
AA–
1,092,810
   
Bonds, Series 2008, Trust 1149, 14.813%, 7/15/32 (IF)
      
1,200
  
Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care System Revenue Bonds,
1/17 at 100.00
AA–
1,105,980
   
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
AAA
1,976,853
   
Carolinas Healthcare System, Series 2005A, 4.875%, 1/15/32 (Pre-refunded 1/15/15)
      
515
  
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A,
No Opt. Call
N/R (4)
560,892
   
5.500%, 1/01/13 (ETM)
      
1,085
  
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A,
No Opt. Call
A
1,171,409
   
5.500%, 1/01/13
      
6,260
  
Total North Carolina
    
5,907,944
   
Ohio – 0.8% (0.5% of Total Investments)
      
   
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue
      
   
Bonds, Senior Lien, Series 2007A-2:
      
3,135
  
5.125%, 6/01/24
6/17 at 100.00
Baa3
2,363,759
710
  
5.875%, 6/01/30
6/17 at 100.00
Baa3
495,452
685
  
5.750%, 6/01/34
6/17 at 100.00
Baa3
454,306
1,570
  
5.875%, 6/01/47
6/17 at 100.00
Baa3
1,034,159
6,100
  
Total Ohio
    
4,347,676
   
Oklahoma – 2.0% (1.3% 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
3,985,003
955
  
5.000%, 2/15/42
2/17 at 100.00
A
858,192
6,305
  
Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health
12/16 at 100.00
AA+
5,896,940
   
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+
77,634
   
System, Series 2006, Trust 3500, 8.331%, 6/15/30 (IF)
      
11,718
  
Total Oklahoma
    
10,817,769
   
Oregon – 0.9% (0.6% of Total Investments)
      
4,700
  
Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds,
11/11 at 101.00
A+
4,749,115
   
PeaceHealth Project, Series 2001, 5.250%, 11/15/21 – AMBAC Insured
      
   
Pennsylvania – 1.3% (0.9% of Total Investments)
      
500
  
Bucks County Industrial Development Authority, Pennsylvania, Charter School Revenue Bonds,
3/17 at 100.00
BBB
383,220
   
School Lane Charter School, Series 2007A, 5.000%, 3/15/37
      
3,500
  
Pennsylvania Economic Development Financing Authority, Senior Lien Resource Recovery Revenue
7/11 at 100.00
CC
1,912,750
   
Bonds, Northampton Generating Project, Series 1994A, 6.600%, 1/01/19 (Alternative Minimum Tax)
      
1,400
  
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, St. Joseph’s University,
11/20 at 100.00
A–
1,282,666
   
Series 2010A, 5.000%, 11/01/40
      
3,205
  
Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002B, 5.625%,
8/12 at 100.00
Aa2 (4)
3,447,394
   
8/01/16 (Pre-refunded 8/01/12) – FGIC Insured
      
8,605
  
Total Pennsylvania
    
7,026,030
   
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
Aa2
2,405,200
   
5.250%, 8/01/57
      
   
Tennessee – 1.3% (0.8% of Total Investments)
      
3,680
  
Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue
1/17 at 30.07
A–
508,245
   
Refunding Bonds, Covenant Health, Series 2006A, 0.000%, 1/01/41
      
5,210
  
Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue Bonds, Series 2001A,
3/11 at 100.00
AA+
5,225,161
   
5.500%, 3/01/14 – AGM Insured (Alternative Minimum Tax)
      
275
  
Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds,
9/16 at 100.00
BBB+
233,299
   
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:
      
100
  
5.500%, 11/01/37 (6), (7)
11/17 at 100.00
N/R
40,000
350
  
5.500%, 11/01/46 (6), (7)
11/17 at 100.00
N/R
140,000
760
  
Tennessee Housing Development Agency, Homeownership Program Bonds, Series 2001-3A, 5.200%,
7/11 at 100.00
AA+
760,927
   
7/01/22 (Alternative Minimum Tax)
      
10,375
  
Total Tennessee
    
6,907,632
   
Texas – 21.7% (14.4% of Total Investments)
      
5,445
  
Board of Regents, University of Texas System, Financing System Revenue Bonds, Series 2006F,
2/17 at 100.00
AAA
4,892,115
   
4.250%, 8/15/36 (UB)
      
3,850
  
Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds,
11/11 at 100.00
A+
3,662,505
   
Series 2001A, 5.500%, 11/01/35 – NPFG 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
4,848,900
   
7.000%, 9/01/25
      
4,040
  
Harris County, Texas, Tax and Revenue Certificates of Obligation, Series 2001, 5.000%, 8/15/27
8/11 at 100.00
AAA
4,141,929
   
(Pre-refunded 8/15/11)
      
6,000
  
Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2001B,
No Opt. Call
N/R (4)
6,626,100
   
5.500%, 12/01/29 – NPFG Insured (ETM)
      
7,000
  
Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 1998B, 5.250%, 7/01/14 –
7/11 at 100.00
A
7,015,820
   
NPFG Insured (Alternative Minimum Tax)
      
   
Houston, Texas, Subordinate Lien Airport System Revenue Refunding Bonds, Series 2001A:
      
2,525
  
5.500%, 7/01/13 – FGIC Insured (Alternative Minimum Tax)
1/12 at 100.00
A
2,617,289
2,905
  
5.500%, 7/01/14 – FGIC Insured (Alternative Minimum Tax)
1/12 at 100.00
A
3,011,178
14,200
  
Hutto Independent School District, Williamson County, Texas, General Obligation Bonds, Series
8/16 at 100.00
AAA
13,382,932
   
2007A, 4.750%, 8/01/43 (UB)
      
   
Jefferson County Health Facilities Development Corporation, Texas, FHA-Insured Mortgage
      
   
Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001:
      
8,500
  
5.400%, 8/15/31 (Pre-refunded 8/15/11) – AMBAC Insured
8/11 at 100.00
N/R (4)
8,707,910
8,500
  
5.500%, 8/15/41 (Pre-refunded 8/15/11) – AMBAC Insured
8/11 at 100.00
N/R (4)
8,712,500
3,090
  
Laredo Independent School District, Webb County, Texas, General Obligation Refunding Bonds,
8/11 at 100.00
AAA
3,125,473
   
Series 2001, 5.000%, 8/01/25
      
7,610
  
Laredo Independent School District, Webb County, Texas, General Obligation Refunding Bonds,
8/11 at 100.00
Aaa
7,788,226
   
Series 2001, 5.000%, 8/01/25 (Pre-refunded 8/01/11)
      
8,000
  
Lower Colorado River Authority, Texas, Transmission Contract Refunding Revenue Bonds, LCRA
5/20 at 100.00
A
7,442,480
   
Transmission Services Corporation Project, Refunding & Improvement Series 2010, 5.000%, 5/15/40
      
2,500
  
Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston
No Opt. Call
A3
2,176,475
   
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
2,942,006
   
5.750%, 1/01/38
      
3,045
  
Port of Houston Authority, Harris County, Texas, General Obligation Port Improvement Bonds,
10/11 at 100.00
AAA
3,090,249
   
Series 2001B, 5.500%, 10/01/17 – FGIC Insured (Alternative Minimum Tax)
      
3,500
  
Southwest Higher Education Authority Inc, Texas, Revenue Bonds, Southern Methodist University,
No Opt. Call
AA–
3,323,705
   
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–
7,189,644
   
Texas Health Resources, Series 2007A, 5.000%, 2/15/36 (UB)
      
8,980
  
Texas Department of Housing and Community Affairs, Residential Mortgage Revenue Bonds, Series
7/11 at 100.00
AAA
8,609,755
   
2001A, 5.350%, 7/01/33 (Alternative Minimum Tax)
      
   
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
2,034,172
9,110
  
0.000%, 8/15/40
8/15 at 27.11
AAA
1,698,833
7,110
  
0.000%, 8/15/44
8/15 at 21.88
AAA
1,036,069
140,870
  
Total Texas
    
118,076,265
   
Utah – 0.4% (0.3% of Total Investments)
      
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E:
      
665
  
5.200%, 1/01/18 (Alternative Minimum Tax)
7/11 at 100.00
AA–
669,223
240
  
5.500%, 1/01/23 (Alternative Minimum Tax)
7/11 at 100.00
Aaa
242,801
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1:
      
1,075
  
4.950%, 7/01/18 (Alternative Minimum Tax)
7/11 at 100.00
AA–
1,088,545
360
  
5.300%, 7/01/23 (Alternative Minimum Tax)
7/11 at 100.00
Aaa
361,440
2,340
  
Total Utah
    
2,362,009
   
Virginia – 0.1% (0.1% of Total Investments)
      
1,000
  
Chesterfield County Health Center Commission, Virginia, Mortgage Revenue Bonds, Lucy Corr
12/15 at 100.00
N/R
845,710
   
Village, Series 2005, 5.375%, 12/01/28
      
   
Washington – 14.4% (9.6% of Total Investments)
      
   
Bellingham Housing Authority, Washington, Housing Revenue Bonds, Varsity Village Project,
      
   
Series 2001A:
      
1,000
  
5.500%, 12/01/27 – NPFG Insured
12/11 at 100.00
Aa3
1,005,500
2,000
  
5.600%, 12/01/36 – NPFG Insured
12/11 at 100.00
Aa3
2,005,640
2,500
  
King County, Washington, Sewer Revenue Bonds, Series 2009, 5.250%, 1/01/42
1/19 at 100.00
AA+
2,510,325
   
Port of Seattle, Washington, Revenue Bonds, Series 2001B:
      
2,535
  
5.625%, 4/01/18 – FGIC Insured (Alternative Minimum Tax) (UB)
10/11 at 100.00
Aa2
2,600,302
16,000
  
5.100%, 4/01/24 – FGIC Insured (Alternative Minimum Tax) (UB)
4/11 at 100.00
Aa2
15,653,760
1,440
  
Public Utility District 1, Benton County, Washington, Electric Revenue Refunding Bonds, Series
11/11 at 100.00
AA+ (4)
1,496,174
   
2001A, 5.625%, 11/01/15 (Pre-refunded 11/01/11) – AGM Insured
      
650
  
Public Utility District 1, Benton County, Washington, Electric Revenue Refunding Bonds, Series
11/11 at 100.00
AA+
671,515
   
2001A, 5.625%, 11/01/15 – AGM Insured
      
4,235
  
Seattle, Washington, Municipal Light and Power Revenue Refunding and Improvement Bonds, Series
3/11 at 100.00
AA+ (4)
4,253,380
   
2001, 5.500%, 3/01/18 (Pre-refunded 3/01/11) – AGM Insured
      
1,445
  
Seattle, Washington, Municipal Light and Power Revenue Refunding and Improvement Bonds, Series
3/11 at 100.00
AA+ (4)
1,453,135
   
2001, 5.500%, 3/01/18 (Pre-refunded 3/10/11) – AGM Insured
      
4,530
  
Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, Series 2001, 5.250%, 12/01/21
12/11 at 100.00
AA (4)
4,711,698
   
(Pre-refunded 12/01/11) – AMBAC Insured
      
3,720
  
Washington State Health Care Facilities Authority, Revenue Bonds, Children’s Hospital and
10/11 at 100.00
Aa3 (4)
3,841,160
   
Regional Medical Center, Series 2001, 5.375%, 10/01/18 (Pre-refunded 10/01/11) –
      
   
AMBAC Insured
      
   
Washington State Health Care Facilities Authority, Revenue Bonds, Good Samaritan Hospital,
      
   
Series 2001:
      
5,480
  
5.500%, 10/01/21 (Pre-refunded 10/01/11) – RAAI Insured
10/11 at 101.00
BBB– (4)
5,717,668
25,435
  
5.625%, 10/01/31 (Pre-refunded 10/01/11) – RAAI Insured
10/11 at 101.00
BBB– (4)
26,559,227
   
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
12/11 at 101.00
BBB
3,040,068
2,915
  
5.375%, 12/01/18 – AMBAC Insured
12/11 at 101.00
BBB
2,939,282
76,890
  
Total Washington
    
78,458,834
   
Wisconsin – 2.5% (1.6% of Total Investments)
      
   
Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, Series 2001:
      
3,705
  
5.375%, 1/01/20 (Pre-refunded 1/01/12) – FGIC Insured
1/12 at 100.00
N/R (4)
3,870,834
1,850
  
5.000%, 1/01/21 (Pre-refunded 1/01/12) – FGIC Insured
1/12 at 100.00
N/R (4)
1,926,477
1,000
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Franciscan Sisters of
9/17 at 100.00
BBB+
830,810
   
Christian Charity HealthCare Ministry, Series 2007, 5.000%, 9/01/33
      
350
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Froedtert and Community
10/11 at 101.00
AA–
342,696
   
Health Obligated Group, Series 2001, 5.375%, 10/01/30
      
3,650
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Froedtert and Community
10/11 at 101.00
AA– (4)
3,805,271
   
Health Obligated Group, Series 2001, 5.375%, 10/01/30 (Pre-refunded 10/01/11)
      
2,500
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic,
2/12 at 100.00
BBB+
2,500,375
   
Series 2001B, 6.000%, 2/15/25
      
330
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan
8/13 at 100.00
BBB+
274,989
   
Services Inc., Series 2003A, 5.125%, 8/15/33
      
13,385
  
Total Wisconsin
    
13,551,452
$ 974,493
  
Total Municipal Bonds (cost $856,804,878)
    
818,290,095
 
Shares
  
Description (1)
Value
   
Investment Companies – 0.6% (0.4% of Total Investments)
  
6,266
  
BlackRock MuniHoldings Fund Inc.
$          92,486
26,880
  
Dreyfus Strategic Municipal Fund
202,406
131,278
  
DWS Municipal Income Trust
1,446,684
43,020
  
Invesco Van Kampen Investment Grade Municipal Trust
562,272
30,000
  
Invesco Van Kampen Municipal Opportunity Trust
379,200
43,420
  
PIMCO Municipal Income Fund II
432,029
   
Total Investment Companies (cost $3,325,133)
3,115,077
   
Total Investments (cost $860,130,011) – 151.2%
821,405,172
   
Floating Rate Obligations – (12.6)%
(68,408,650)
   
MuniFund Term Preferred Shares, at Liquidation Value – (12.9)% (8)
(70,000,000)
   
Other Assets Less Liabilities – 5.3%
28,671,276
   
Auction Rate Preferred Shares, at Liquidation Value – (31.0)% (8)
(168,400,000)
   
Net Assets Applicable to Common Shares – 100%
$   543,267,798
 
 
 
 
 
Fair Value Measurements
 
In determining the fair value of the Fund’s investments, various inputs are used. These inputs are summarized in the three broad levels listed below:
 
Level 1 – Quoted prices in active markets for identical securities.
 
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
 
Level 3 – 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 risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of January 31, 2011:
 
 
Level 1
    
Level 2
    
Level 3
    
Total
  
Investments:
                      
Municipal Bonds
 $ —     $ 818,110,095     $ 180,000     $ 818,290,095  
Investment Companies
   3,115,077       —       —       3,115,077  
Total
 $ 3,115,077     $ 818,110,095     $ 180,000     $ 821,405,172  
 
The following is a reconciliation of the Fund’s Level 3 investments held at the beginning and end of the measurement period:
 
 
Level 3
  
 
Municipal Bonds
  
Balance at the beginning of period
 $ 187,349  
   Gains (losses):
      
   Net realized gains (losses)
   —  
   Net change in unrealized appreciation (depreciation)
   (7,349 )
   Purchases at cost
   —  
   Sales at proceeds
   —  
   Net discounts (premiums)
   —  
   Transfers into
   —  
   Transfers out of
   —  
Balance at the end of period
 $ 180,000  
During the period ended January 31, 2011, the Fund recognized no significant transfers to/from Level 1,
      
Level 2 or Level 3.
      
 
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 January 31, 2011, the cost of investments was $794,633,839.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at January 31, 2011, were as follows:
     
Gross unrealized:
    
   Appreciation
 $ 15,088,807  
   Depreciation
   (56,674,565 )
Net unrealized appreciation (depreciation) of investments
 $ (41,585,758 )
 

(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)
  
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. Such investments are normally considered to be equivalent to AAA rated securities.
(5)
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for inverse floating rate transactions.
(6)
  
The Fund’s Adviser has concluded this 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)
  
Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Directors/Trustees. For fair value measurement disclosure purposes, investment categorized as Level 3.
(8)
  
MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 8.5% and 20.5%, respectively.
N/R
  
Not rated.
(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         April 1, 2011        
 
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         April 1, 2011        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         April 1, 2011