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:         7/31/10         
 
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, 2010
      
Principal
    
Optional Call
    
Amount (000)
  
Description (1)
Provisions (2)
Ratings (3)
Value
   
Municipal Bonds – 150.6% (99.6% of Total Investments)
      
   
Alabama – 1.6% (1.1% of Total Investments)
      
$      3,500 
  
Alabama Special Care Facilities Financing Authority, Revenue Bonds, Ascension Health, Series 
11/16 at 100.00 
Aa1 
$   3,565,905 
   
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 
A (4) 
5,951,718 
   
5.250%, 10/01/26 (Pre-refunded 10/01/11) – AMBAC Insured (Alternative Minimum Tax) 
      
9,155 
  
Total Alabama 
    
9,517,623 
   
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 
646,630 
   
Series 2006A, 5.000%, 6/01/46 
      
   
Arizona – 1.0% (0.7% of Total Investments)
      
3,390 
  
Arizona State Transportation Board, Highway Revenue Bonds, Series 2006, 13.143%, 7/01/16 (IF) 
No Opt. Call 
AAA 
3,989,623 
2,200 
  
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc 
No Opt. Call 
A 
1,961,344 
   
Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37 
      
5,590 
  
Total Arizona 
    
5,950,967 
   
Arkansas – 0.7% (0.4% 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 
11/11 at 101.00 
N/R 
1,937,649 
1,900 
  
5.500%, 11/01/14 
11/11 at 101.00 
N/R 
2,039,631 
3,705 
  
Total Arkansas 
    
3,977,280 
   
California – 13.5% (8.9% 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 
2,065,413 
140 
  
5.000%, 3/01/33 
3/13 at 100.00 
A 
135,395 
3,400 
  
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, 
10/19 at 100.00 
AA 
3,587,544 
   
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 
Aa3 
2,791,946 
   
5.000%, 11/15/42 (UB) 
      
5,000 
  
California Infrastructure Economic Development Bank, Revenue Bonds, Kaiser Hospital Assistance 
8/11 at 102.00 
A+ 
5,061,900 
   
LLC, Series 2001A, 5.550%, 8/01/31 
      
5,355 
  
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender 
No Opt. Call 
Aa3 
6,266,100 
   
Option Bond Trust 3175, 13.378%, 5/15/14 (IF) 
      
18,850 
  
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG 
12/10 at 100.00 
AA 
18,859,048 
   
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+ 
550,646 
3,300 
  
0.000%, 8/01/32 – FGIC Insured 
8/12 at 30.97 
A+ 
777,348 
11,865 
  
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed 
6/17 at 100.00 
BBB 
7,660,756 
   
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: 
      
12,280 
  
5.750%, 1/01/16 – AMBAC Insured (Alternative Minimum Tax) 
1/12 at 100.00 
A– 
12,736,816 
5,000 
  
5.375%, 1/01/21 – AMBAC Insured (Alternative Minimum Tax) 
1/12 at 100.00 
A– 
5,071,700 
1,500 
  
5.250%, 1/01/23 – AMBAC Insured (Alternative Minimum Tax) 
1/12 at 100.00 
A– 
1,512,990 
10,000 
  
5.500%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax) 
1/12 at 100.00 
A– 
10,037,400 
10,000 
  
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue 
No Opt. Call 
A 
1,405,700 
   
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 
983,910 
   
2006C, 0.000%, 9/01/30 – NPFG Insured 
      
96,835 
  
Total California 
    
79,504,612 
   
Colorado – 6.1% (4.0% of Total Investments)
      
2,250 
  
Canterberry Crossing Metropolitan District II, Parker, Colorado, Limited Tax General 
12/12 at 100.00 
N/R (4) 
2,552,558 
   
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) 
1,800,141 
   
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 
6/11 at 100.00 
Ba1 
1,878,465 
   
County 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 
2,830,348 
   
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 
3,400,990 
   
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 
3,957,850 
   
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+ 
3,503,445 
   
FGIC Insured 
      
   
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006: 
      
5,365 
  
5.000%, 11/15/23 – FGIC Insured (UB) 
11/16 at 100.00 
A+ 
5,727,567 
4,335 
  
5.000%, 11/15/25 – FGIC Insured (UB) 
11/16 at 100.00 
A+ 
4,572,558 
2,000 
  
Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A, 
11/11 at 100.00 
A+ 
2,097,680 
   
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 
831,374 
2,000 
  
5.250%, 12/01/36 – RAAI Insured 
12/17 at 100.00 
N/R 
1,664,700 
1,000 
  
Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003, 
6/14 at 101.00 
N/R 
1,042,720 
   
8.000%, 12/01/25 
      
36,140 
  
Total Colorado 
    
35,860,396 
   
Delaware – 0.2% (0.1% of Total Investments)
      
1,055 
  
Delaware Housing Authority, Multifamily Mortgage Revenue Bonds, Series 2001A, 5.400%, 7/01/24 
7/12 at 100.00 
Aa3 
1,092,009 
   
District of Columbia – 0.8% (0.5% of Total Investments)
      
1,335 
  
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, 
10/16 at 100.00 
AA+ 
1,351,901 
   
Tender Option Bond Trust 1606, 11.356%, 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+ 
3,377,221 
   
Tender Option Bond Trust 1730, 11.352%, 10/01/30 – AMBAC Insured (IF) 
      
4,670 
  
Total District of Columbia 
    
4,729,122 
   
Florida – 2.1% (1.4% 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 
AAA 
1,111,133 
2,195 
  
5.450%, 12/01/41 – AGM Insured 
12/11 at 100.00 
AAA 
2,205,756 
2,775 
  
Pace Property Finance Authority Inc., Florida, Utility System Improvement and Revenue 
9/10 at 100.00 
N/R 
2,777,165 
   
Refunding Bonds, Series 1997, 5.250%, 9/01/17 – AMBAC Insured 
      
5,455 
  
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System 
8/17 at 100.00 
AA– 
5,411,796 
   
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 
828,110 
   
6.650%, 5/01/40 
      
12,530 
  
Total Florida 
    
12,333,960 
   
Georgia – 2.3% (1.5% of Total Investments)
      
5,000 
  
Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 5.625%, 1/01/30 – FGIC Insured 
1/11 at 100.50 
A+ 
5,037,400 
   
(Alternative Minimum Tax) 
      
2,700 
  
Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, Series 2001, 7.900%, 
12/11 at 101.00 
AAA 
3,001,158 
   
12/01/24 (Pre-refunded 12/01/11) 
      
2,000 
  
Fulton County Residential Care Facilities Authority, Georgia, Revenue Bonds, Elderly Care, 
7/17 at 100.00 
N/R 
1,261,900 
   
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) 
3,888,590 
   
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 
340,980 
   
Military Academy Project, Series 2007, 5.125%, 3/01/37 
      
13,940 
  
Total Georgia 
    
13,530,028 
   
Illinois – 16.2% (10.7% of Total Investments)
      
8,375 
  
Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 5.500%, 1/01/19 – AGM Insured 
1/11 at 101.00 
AAA 
8,519,134 
   
(Alternative Minimum Tax) 
      
4,950 
  
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International 
1/11 at 101.00 
A2 
4,950,099 
   
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 
2,559,793 
   
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) 
10,588,300 
   
(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 
1,159,513 
   
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 
9,376,704 
2,415 
  
Illinois Finance Authority, General Obligation Debt Certificates, Local Government Program – 
12/14 at 100.00 
A1 
2,470,062 
   
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 
3,138,809 
   
5.500%, 8/01/37 
      
9,000 
  
Illinois Health Facilities Authority, Revenue Bonds, Covenant Retirement Communities Inc., 
12/11 at 101.00 
BBB– 
8,801,280 
   
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) 
15,777,900 
   
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 
2,807,150 
   
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 
5,705,350 
   
Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36 
      
16,900 
  
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion 
12/10 at 100.50 
AAA 
17,079,478 
   
Project, Series 1999A, 5.250%, 12/15/28 – FGIC Insured 
      
2,265 
  
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place 
No Opt. Call 
AAA 
2,589,348 
   
Expansion Project, Series 1998A, 5.500%, 6/15/29 – FGIC Insured 
      
96,550 
  
Total Illinois 
    
95,522,920 
   
Indiana – 5.9% (3.9% 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) 
1,340,829 
1,000 
  
5.000%, 1/15/26 (Pre-refunded 1/15/12) – AMBAC Insured 
1/12 at 100.00 
AA+ (4) 
1,068,390 
   
Evansville Vanderburgh Public Library Lease Corporation, Indiana, First Mortgage Bonds, 
      
   
Series 2001: 
      
2,000 
  
5.750%, 7/15/18 (Pre-refunded 1/15/12) – MBIA Insured 
1/12 at 100.00 
A+ (4) 
2,158,580 
2,750 
  
5.125%, 1/15/24 (Pre-refunded 1/15/12) – MBIA Insured 
1/12 at 100.00 
A+ (4) 
2,943,050 
1,250 
  
Hamilton Southeastern Cumberland Campus School Building Corporation, Indiana, First Mortgage 
1/12 at 100.00 
A (4) 
1,337,750 
   
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 
A 
9,634,805 
   
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 
4,444,461 
   
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 
2,479,152 
   
Series 2005A, 5.000%, 5/01/35 – AMBAC Insured 
      
3,500 
  
University of Southern Indiana, Student Fee Bonds, Series 2001H, 5.000%, 10/01/21 – 
10/11 at 100.00 
A1 
3,560,690 
   
AMBAC Insured 
      
   
Vigo County, Indiana, Hospital Authority, Union Hospital, Revenue Bonds, Series 2007: 
      
2,500 
  
5.750%, 9/01/42 
9/17 at 100.00 
N/R 
2,314,625 
2,500 
  
5.800%, 9/01/47 
9/17 at 100.00 
N/R 
2,307,950 
1,090 
  
Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.500%, 
1/13 at 101.00 
A1 (4) 
1,230,076 
   
7/15/22 (Pre-refunded 1/15/13) – AMBAC Insured 
      
34,175 
  
Total Indiana 
    
34,820,358 
   
Iowa – 5.4% (3.5% of Total Investments)
      
2,000 
  
Iowa Finance Authority, Healthcare Revenue Bonds, Great River Medical Center, Series 2001, 
5/11 at 100.00 
Aa3 
2,004,600 
   
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 
723,530 
   
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 
24,738,918 
3,950 
  
5.600%, 6/01/35 (Pre-refunded 6/01/11) 
6/11 at 101.00 
AAA 
4,163,221 
30,615 
  
Total Iowa 
    
31,630,269 
   
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 
799,810 
1,000 
  
5.125%, 5/15/42 
5/14 at 103.00 
N/R 
782,970 
2,000 
  
Total Kansas 
    
1,582,780 
   
Kentucky – 3.4% (2.2% of Total Investments)
      
1,000 
  
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds, 
6/18 at 100.00 
AAA 
1,091,510 
   
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– 
18,938,820 
   
System Revenue Bonds, Series 2001A, 5.125%, 5/15/27 – NPFG Insured 
      
19,500 
  
Total Kentucky 
    
20,030,330 
   
Louisiana – 4.4% (2.9% of Total Investments)
      
3,000 
  
Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue 
11/17 at 100.00 
BB+ 
3,113,430 
   
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 
3,490,469 
   
Series 2007A, 5.500%, 5/15/47 
      
19,890 
  
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, 
5/11 at 101.00 
BBB 
19,602,788 
   
Series 2001B, 5.875%, 5/15/39 
      
26,590 
  
Total Louisiana 
    
26,206,687 
   
Maine – 1.1% (0.7% of Total Investments)
      
   
Maine State Housing Authority, Single Family Mortgage Purchase Bonds, Series 2001B: 
      
4,610 
  
5.400%, 11/15/21 (Alternative Minimum Tax) 
11/10 at 100.00 
AA+ 
4,621,709 
1,610 
  
5.500%, 11/15/32 (Alternative Minimum Tax) 
11/10 at 100.00 
AA+ 
1,612,238 
6,220 
  
Total Maine 
    
6,233,947 
   
Maryland – 2.5% (1.7% of Total Investments)
      
1,000 
  
Howard County, Maryland, Retirement Community Revenue Bonds, Vantage House, Series 2007B, 
4/17 at 100.00 
N/R 
766,280 
   
5.250%, 4/01/37 
      
1,570 
  
Maryland Community Development Administration, Insured Multifamily Housing Mortgage Loan 
7/11 at 100.00 
Aa2 
1,582,042 
   
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 
1,474,580 
   
Center, Series 2006A, 5.000%, 12/01/31 
      
10,600 
  
Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995, 
9/10 at 100.00 
N/R 
10,604,770 
   
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– 
518,137 
   
Retirement Community, Series 2007, 4.750%, 7/01/34 
      
15,725 
  
Total Maryland 
    
14,945,809 
   
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 
1,173,755 
   
5.250%, 10/01/26 
      
1,000 
  
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital 
7/15 at 100.00 
BB– 
778,590 
   
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 
1,655,744 
   
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 
5,400,189 
   
3145, 15.134%, 6/01/16 (IF) 
      
5,000 
  
Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series 
1/11 at 101.00 
N/R 
4,695,050 
   
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 
AAA 
3,439,324 
   
8/01/46 – AGM Insured (UB) 
      
17,300 
  
Total Massachusetts 
    
17,142,652 
   
Michigan – 9.5% (6.3% of Total Investments)
      
15,000 
  
Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site 
No Opt. Call 
AAA 
16,829,850 
   
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 
1,360,960 
   
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) 
11,653,510 
   
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 
1,212,975 
   
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) 
74,402 
   
10/15/18 (Pre-refunded 10/15/11) 
      
1,355 
  
Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Detroit Medical Center 
8/10 at 100.00 
Ba3 
1,308,076 
   
Obligated Group, Series 1998A, 5.250%, 8/15/23 
      
3,210 
  
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sisters of Mercy 
No Opt. Call 
A (4) 
3,424,717 
   
Health Corporation, Series 1993P, 5.375%, 8/15/14 – MBIA 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) 
1,505,434 
2,500 
  
5.625%, 11/15/31 (Pre-refunded 11/15/11) 
11/11 at 101.00 
A+ (4) 
2,692,300 
3,500 
  
Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series 
12/16 at 100.00 
AA 
3,501,645 
   
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 
12,307,189 
   
Hospital, Series 2001M, 5.250%, 11/15/31 – NPFG Insured 
      
53,840 
  
Total Michigan 
    
55,871,058 
   
Minnesota – 0.6% (0.4% of Total Investments)
      
2,230 
  
Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily 
10/11 at 105.00 
Aaa 
2,330,885 
   
Housing Revenue Bonds, Rose Apartments Project, Series 2001, 6.350%, 10/20/37 
      
   
(Alternative Minimum Tax) 
      
1,375 
  
Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, Regions Hospital Parking Ramp 
8/16 at 100.00 
N/R 
1,223,173 
   
Project, Series 2007-1, 5.000%, 8/01/36 
      
3,605 
  
Total Minnesota 
    
3,554,058 
   
Mississippi – 0.9% (0.6% of Total Investments)
      
2,155 
  
Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage 
11/10 at 102.00 
AAA 
2,176,550 
   
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 
3,093,690 
   
Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB) 
      
5,155 
  
Total Mississippi 
    
5,270,240 
   
Missouri – 3.0% (2.0% of Total Investments)
      
1,495 
  
Cape Girardeau County Industrial Development Authority, Missouri, Health Facilities Revenue 
6/17 at 100.00 
N/R 
1,333,914 
   
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 
767,300 
   
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) 
2,031,681 
   
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) 
3,554,543 
3,510 
  
5.250%, 12/01/20 (Pre-refunded 12/01/11) – NPFG Insured 
12/11 at 100.00 
AA– (4) 
3,741,063 
3,695 
  
5.250%, 12/01/21 (Pre-refunded 12/01/11) – NPFG Insured 
12/11 at 100.00 
AA– (4) 
3,938,242 
2,040 
  
5.250%, 12/01/22 (Pre-refunded 12/01/11) – NPFG Insured 
12/11 at 100.00 
AA– (4) 
2,174,293 
16,900 
  
Total Missouri 
    
17,541,036 
   
Montana – 0.8% (0.5% of Total Investments)
      
5,000 
  
Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company, Series 
7/11 at 100.50 
B 
4,646,250 
   
2000, 8.000%, 7/01/20 (Alternative Minimum Tax) 
      
   
Nebraska – 0.7% (0.5% of Total Investments)
      
   
Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2001D: 
      
1,055 
  
5.250%, 9/01/21 (Alternative Minimum Tax) 
9/11 at 100.00 
AAA 
1,075,657 
1,390 
  
5.375%, 9/01/32 (Alternative Minimum Tax) 
9/11 at 100.00 
AAA 
1,436,635 
1,005 
  
Omaha Public Power District, Nebraska, Separate Electric System Revenue Bonds, Nebraska 
2/17 at 100.00 
AA+ 
1,592,423 
   
City 2, Series 2006A, 19.811%, 8/01/40 – AMBAC Insured (IF) 
      
3,450 
  
Total Nebraska 
    
4,104,715 
   
Nevada – 2.7% (1.8% 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 
10,693,100 
2,000 
  
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas 
1/11 at 100.00 
N/R 
479,420 
   
Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured (5) 
      
4,000 
  
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas 
1/12 at 100.00 
N/R 
8,800 
   
Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (5) 
      
165 
  
Nevada Housing Division, Single Family Mortgage Bonds, Senior Series 1998A-1, 5.300%, 4/01/18 
10/10 at 100.00 
Aaa 
170,191 
   
(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) 
4,590,858 
   
(Pre-refunded 1/01/12) – FGIC Insured 
      
20,455 
  
Total Nevada 
    
15,942,369 
   
New Hampshire – 0.3% (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 
2,051,260 
   
2001, 5.500%, 10/01/21 – AGM Insured 
      
   
New Jersey – 4.6% (3.0% of Total Investments)
      
10,000 
  
New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water 
11/12 at 101.00 
A2 
10,002,100 
   
Company, Series 2002A, 5.250%, 11/01/32 – AMBAC Insured (Alternative Minimum Tax) 
      
610 
  
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center, 
7/13 at 100.00 
Ba2 
503,848 
   
Series 2003, 5.500%, 7/01/33 
      
4,125 
  
New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration 
No Opt. Call 
Aa3 
4,558,826 
   
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 
AA– 
3,431,473 
   
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– 
7,197,400 
   
0.000%, 12/15/28 – AMBAC Insured 
      
2,045 
  
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, 
6/17 at 100.00 
BBB 
1,449,107 
   
Series 2007-1A, 4.750%, 6/01/34 
      
49,750 
  
Total New Jersey 
    
27,142,754 
   
New York – 4.5% (3.0% of Total Investments)
      
900 
  
Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter 
4/17 at 100.00 
N/R 
787,635 
   
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– 
1,307,028 
3,400 
  
0.000%, 7/15/44 
No Opt. Call 
BBB– 
315,486 
1,780 
  
East Rochester Housing Authority, New York, GNMA Secured Revenue Bonds, Gates Senior Housing 
10/11 at 101.00 
AAA 
1,809,441 
   
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 
4,620,422 
   
2/15/47 – NPFG Insured 
      
4,155 
  
Monroe County Airport Authority, New York, Revenue Refunding Bonds, Greater Rochester 
No Opt. Call 
A 
4,437,706 
   
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– 
8,321,040 
   
Airport Special Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax) 
      
1,715 
  
New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20 – 
8/12 at 100.00 
AA 
1,857,156 
   
MBIA Insured 
      
785 
  
New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20 
8/12 at 100.00 
AA (4) 
868,705 
   
(Pre-refunded 8/01/12) – MBIA Insured 
      
2,000 
  
New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and 
6/11 at 100.00 
AA– 
2,067,380 
   
State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16 
      
29,020 
  
Total New York 
    
26,391,999 
   
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– 
1,773,561 
   
Bonds, Series 2008, Trust 1149, 14.719%, 7/15/32 (IF) 
      
1,200 
  
Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care System Revenue Bonds, 
1/17 at 100.00 
AA– 
1,227,876 
   
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 
2,031,838 
   
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, 5.500%, 
No Opt. Call 
A (4) 
574,395 
   
1/01/13 (ETM) 
      
1,085 
  
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 
No Opt. Call 
A 
1,201,963 
   
5.500%, 1/01/13 
      
6,260 
  
Total North Carolina 
    
6,809,633 
   
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: 
      
3,140 
  
5.125%, 6/01/24 
6/17 at 100.00 
BBB 
2,633,078 
710 
  
5.875%, 6/01/30 
6/17 at 100.00 
BBB 
560,517 
685 
  
5.750%, 6/01/34 
6/17 at 100.00 
BBB 
512,668 
1,570 
  
5.875%, 6/01/47 
6/17 at 100.00 
BBB 
1,112,738 
6,105 
  
Total Ohio 
    
4,819,001 
   
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 
4,288,019 
955 
  
5.000%, 2/15/42 
2/17 at 100.00 
A 
925,519 
6,305 
  
Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health 
12/16 at 100.00 
AA 
6,338,795 
   
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 
88,858 
   
System, Series 2008, Trust 3500, 8.350%, 6/15/30 (IF) 
      
11,718 
  
Total Oklahoma 
    
11,641,191 
   
Oregon – 2.5% (1.7% of Total Investments)
      
4,700 
  
Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds, 
11/11 at 101.00 
AA– 
4,817,594 
   
PeaceHealth Project, Series 2001, 5.250%, 11/15/21 – AMBAC Insured 
      
10,000 
  
Oregon Housing and Community Services Department, Multifamily Housing Revenue Bonds, Series 
1/11 at 100.00 
Aaa 
10,006,600 
   
2000A, 6.050%, 7/01/42 (Alternative Minimum Tax) (UB) 
      
14,700 
  
Total Oregon 
    
14,824,194 
   
Pennsylvania – 1.7% (1.1% of Total Investments)
      
   
Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, West Penn 
      
   
Allegheny Health System, Series 2000B: 
      
2,000 
  
9.250%, 11/15/22 (Pre-refunded 11/15/10) 
11/10 at 102.00 
AAA 
2,092,040 
2,000 
  
9.250%, 11/15/30 (Pre-refunded 11/15/10) 
11/10 at 102.00 
AAA 
2,092,040 
500 
  
Bucks County Industrial Development Authority, Pennsylvania, Charter School Revenue Bonds, 
3/17 at 100.00 
BBB 
441,130 
   
School Lane Charter School, Series 2007A, 5.000%, 3/15/37 
      
3,500 
  
Pennsylvania Economic Development Financing Authority, Senior Lien Resource Recovery Revenue 
1/11 at 100.00 
CC 
1,974,735 
   
Bonds, Northampton Generating Project, Series 1994A, 6.600%, 1/01/19 (Alternative 
      
   
Minimum Tax) 
      
3,205 
  
Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002B, 5.625%, 
8/12 at 100.00 
Aa2 (4) 
3,542,198 
   
8/01/16 (Pre-refunded 8/01/12) – FGIC Insured 
      
11,205 
  
Total Pennsylvania 
    
10,142,143 
   
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 
2,523,900 
   
5.250%, 8/01/57 
      
   
Tennessee – 1.8% (1.2% of Total Investments)
      
3,680 
  
Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue 
1/17 at 30.07 
A– 
580,851 
   
Refunding Bonds, Covenant Health, Series 2006, 0.000%, 1/01/41 
      
5,210 
  
Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue Bonds, Series 2001A, 
3/11 at 100.00 
AAA 
5,324,881 
   
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+ 
257,227 
   
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 
688,560 
2,800 
  
5.500%, 11/01/46 (6) 
11/17 at 100.00 
N/R 
2,409,960 
745 
  
Tennessee Housing Development Agency, Homeownership Program Bonds, Series 1998-2, 5.350%, 
1/11 at 100.00 
AA+ 
745,440 
   
7/01/23 (Alternative Minimum Tax) 
      
760 
  
Tennessee Housing Development Agency, Homeownership Program Bonds, Series 2001-3A, 5.200%, 
7/11 at 100.00 
AA+ 
764,917 
   
7/01/22 (Alternative Minimum Tax) 
      
14,270 
  
Total Tennessee 
    
10,771,836 
   
Texas – 21.3% (14.1% of Total Investments)
      
5,445 
  
Board of Regents, University of Texas System, Financing System Revenue Bonds, Series 2006F, 
2/17 at 100.00 
AAA 
5,415,161 
   
4.250%, 8/15/36 (UB) 
      
595 
  
Brushy Creek Municipal Utility District, Williamson County, Texas, Combination Unlimited Tax 
12/10 at 100.00 
Aa3 
597,398 
   
and Revenue Refunding Bonds, Series 2001, 5.125%, 6/01/26 – AGM Insured 
      
   
Collins and Denton Counties, Frisco, Texas, General Obligation Bonds, Series 2001: 
      
1,910 
  
5.000%, 2/15/20 – FGIC Insured 
2/11 at 100.00 
Aa1 
1,959,335 
2,005 
  
5.000%, 2/15/21 – FGIC Insured 
2/11 at 100.00 
Aa1 
2,056,789 
3,850 
  
Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds, 
11/11 at 100.00 
A+ 
3,871,830 
   
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 
5,034,750 
   
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 
4,240,142 
6,000 
  
Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2001B, 
No Opt. Call 
N/R (4) 
7,365,180 
   
5.500%, 12/01/29 – MBIA Insured (ETM) 
      
7,000 
  
Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 1998B, 5.250%, 7/01/14 – 
1/11 at 100.00 
A 
7,017,220 
   
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 
2,674,758 
2,905 
  
5.500%, 7/01/14 – FGIC Insured (Alternative Minimum Tax) 
1/12 at 100.00 
A 
3,077,296 
14,200 
  
Hutto Independent School District, Williamson County, Texas, General Obligation Bonds, Series 
8/16 at 100.00 
AAA 
14,478,462 
   
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 – AMBAC Insured 
8/11 at 100.00 
N/R 
8,595,795 
8,500 
  
5.500%, 8/15/41 – AMBAC Insured 
8/11 at 100.00 
N/R 
8,515,895 
3,090 
  
Laredo Independent School District, Webb County, Texas, General Obligation Refunding Bonds, 
8/11 at 100.00 
AAA 
3,198,366 
   
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 
N/R (4) 
7,975,584 
   
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 
8,227,200 
   
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 
2,449,025 
   
Light and Power Company, Series 1997, 5.125%, 11/01/28 – AMBAC Insured (Alternative 
      
   
Minimum Tax) 
      
3,150 
  
North Texas Thruway Authority, Second Tier System Revenue Refunding Bonds, Series 2008, 
1/18 at 100.00 
A3 
3,303,752 
   
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 
3,127,611 
   
Series 2001B, 5.500%, 10/01/17 – FGIC Insured (Alternative Minimum Tax) 
      
7,700 
  
Tarrant County Cultural & Educational Facilities Financing Corporation, Texas, Revenue Bonds, 
2/17 at 100.00 
AA– 
7,742,504 
   
Texas Health Resources, Series 2007A, 5.000%, 2/15/36 (UB) 
      
9,135 
  
Texas Department of Housing and Community Affairs, Residential Mortgage Revenue Bonds, Series 
7/11 at 100.00 
AAA 
9,136,005 
   
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 
2,257,731 
9,110 
  
0.000%, 8/15/40 
8/15 at 27.11 
AAA 
1,905,448 
7,110 
  
0.000%, 8/15/44 
8/15 at 21.88 
AAA 
1,196,542 
142,035 
  
Total Texas 
    
125,419,779 
   
Utah – 0.4% (0.3% of Total Investments)
      
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E: 
      
750 
  
5.200%, 1/01/18 (Alternative Minimum Tax) 
7/11 at 100.00 
AA– 
758,753 
245 
  
5.500%, 1/01/23 (Alternative Minimum Tax) 
7/11 at 100.00 
Aaa 
252,397 
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1: 
      
1,155 
  
4.950%, 7/01/18 (Alternative Minimum Tax) 
7/11 at 100.00 
AA– 
1,181,669 
365 
  
5.300%, 7/01/23 (Alternative Minimum Tax) 
7/11 at 100.00 
Aaa 
372,902 
2,515 
  
Total Utah 
    
2,565,721 
   
Virginia – 0.2% (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 
928,880 
   
Village, Series 2005, 5.375%, 12/01/28 
      
   
Washington – 15.8% (10.5% 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 
1,016,140 
2,000 
  
5.600%, 12/01/36 – NPFG Insured 
12/11 at 100.00 
Aa3 
2,018,520 
2,500 
  
King County, Washington, Sewer Revenue Bonds, Series 2009, 5.250%, 1/01/42 
1/19 at 100.00 
AA+ 
2,705,650 
12,955 
  
Port of Seattle, Washington, Passenger Facility Charge Revenue Bonds, Series 1998A, 5.300%, 
12/10 at 100.00 
A 
13,040,114 
   
12/01/16 – AMBAC Insured (Alternative Minimum Tax) 
      
   
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 
2,650,571 
16,000 
  
5.100%, 4/01/24 – FGIC Insured (Alternative Minimum Tax) (UB) 
10/10 at 100.00 
Aa2 
16,005,280 
1,440 
  
Public Utility District 1, Benton County, Washington, Electric Revenue Refunding Bonds, Series 
11/11 at 100.00 
N/R (4) 
1,535,256 
   
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 
Aa3 
686,634 
   
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 
AAA 
4,365,777 
   
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 
AAA 
1,481,255 
   
2001, 5.500%, 3/01/18 – 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) 
4,825,492 
   
(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) 
3,936,355 
   
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) 
5,861,244 
25,435 
  
5.625%, 10/01/31 (Pre-refunded 10/01/11) – RAAI Insured 
10/11 at 101.00 
BBB– (4) 
27,241,648 
   
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+ 
3,077,090 
2,915 
  
5.375%, 12/01/18 – AMBAC Insured 
12/11 at 101.00 
BBB+ 
2,974,670 
89,845 
  
Total Washington 
    
93,421,696 
   
Wisconsin – 4.5% (3.0% 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) 
3,969,758 
1,850 
  
5.000%, 1/01/21 (Pre-refunded 1/01/12) – FGIC Insured 
1/12 at 100.00 
N/R (4) 
1,972,377 
12,250 
  
La Crosse, Wisconsin, Pollution Control Revenue Refunding Bonds, Dairyland Power Cooperative, 
12/10 at 100.00 
A 
12,411,822 
   
Series 1997B, 5.550%, 2/01/15 – AMBAC Insured 
      
1,000 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Franciscan Sisters of 
9/17 at 100.00 
BBB+ 
903,569 
   
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– 
356,166 
   
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) 
3,902,214 
   
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+ 
2,530,599 
   
   Series 2001B, 6.000%, 2/15/25 
      
330 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan 
8/13 at 100.00 
BBB+ 
297,610 
   
Services Inc., Series 2003A, 5.125%, 8/15/33 
      
25,635 
  
Total Wisconsin 
    
26,344,115 
$ 950,258 
  
Total Municipal Bonds (cost $879,930,284) 
    
887,986,207 
           
Shares
  
Description (1)
    
Value
   
Investment Companies – 0.6% (0.4% of Total Investments)
      
6,266 
  
BlackRock MuniHoldings Fund Inc. 
    
$       100,632 
26,880 
  
Dreyfus Strategic Municipal Fund 
    
231,168 
131,278 
  
DWS Municipal Income Trust 
    
1,658,041 
43,020 
  
Invesco VK Investment Grade Municipal Trust 
    
643,149 
30,000 
  
Invesco VK Municipal Opportunity Trust 
    
436,800 
43,420 
  
PIMCO Municipal Income Fund II 
    
504,106 
   
Total Investment Companies (cost $3,325,133) 
    
3,573,896 
   
Total Investments (cost $883,255,417) – 151.2% 
    
891,560,103 
   
Floating Rate Obligations – (12.9)% 
    
(75,908,650)
   
Other Assets Less Liabilities – 1.9% 
    
10,927,634 
   
Auction Rate Preferred Shares, at Liquidation Value – (40.2)% (7) 
    
(236,950,000)
   
Net Assets Applicable to Common Shares – 100% 
    
$ 589,629,087 


 
 
 
 
Fair Value Measurements
 
 
In determining the 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 July 31, 2010:
 
         
 
Level 1
Level 2
Level 3
Total
Investments: 
        
Municipal Bonds 
$           — 
$884,887,687 
$3,098,520 
$887,986,207 
Investment Companies 
3,573,896 
— 
— 
3,573,896 
Total 
$3,573,896 
$884,887,687 
$3,098,520 
$891,560,103 

 
The following is a reconciliation of the Fund’s Level 3 investments held at the beginning and end of the measurement period:
 
   
 
Level 3
 
Investments
Balance at the beginning of period 
$           — 
Gains (losses): 
— 
Net realized gains (losses) 
— 
Net change in unrealized appreciation (depreciation) 
— 
Net purchases at cost (sales at proceeds) 
— 
Net discounts (premiums) 
— 
Net transfers in to (out of) at end of period fair value 
3,098,520 
Balance at the end of period 
$3,098,520 

 
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, 2010, the cost of investments was $810,441,978.
 
 
Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 2010, were as follows:
 
   
Gross unrealized: 
  
Appreciation 
$ 32,855,340 
Depreciation 
(27,587,240)
Net unrealized appreciation (depreciation) of investments 
$   5,268,100 

   
(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. 
(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) 
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. 
(6) 
For fair value measurement disclosure purposes, investment categorized as Level 3. 
(7) 
Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 26.6%. 
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         September 29, 2010        
 
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 29, 2010        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         September 29, 2010