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:         7/31/11         
 
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) 
      
   
July 31, 2011 
      
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Municipal Bonds – 138.9% (99.0% 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 
AA+ 
$ 3,523,205 
   
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) 
5,699,788 
   
5.250%, 10/01/26 (Pre-refunded 10/01/11) – AMBAC Insured (Alternative Minimum Tax) 
      
9,155 
  
Total Alabama 
    
9,222,993 
   
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 
663,350 
   
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, 13.455%, 7/01/16 (IF) 
7/18 at 100.00 
AAA 
3,838,395 
2,200 
  
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc 
No Opt. Call 
A 
1,977,338 
   
Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37 
      
5,590 
  
Total Arizona 
    
5,815,733 
   
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) 
1,846,984 
1,900 
  
5.500%, 11/01/14 (Pre-refunded 11/01/11) 
11/11 at 101.00 
N/R (4) 
1,944,194 
3,705 
  
Total Arkansas 
    
3,791,178 
   
California – 13.0% (9.3% of Total Investments) 
      
   
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist 
      
   
Health System/West, Series 2003A: 
      
2,220 
  
5.000%, 3/01/28 
3/13 at 100.00 
A 
2,209,988 
140 
  
5.000%, 3/01/33 
3/13 at 100.00 
A 
132,394 
1,670 
  
California Health Facilities Financing Authority, Refunding Revenue Bonds, Stanford Hospital 
No Opt. Call 
Aa3 
1,680,421 
   
and Clinics, Series 2008A-2. RMKT, 5.250%, 11/15/40 
      
3,400 
  
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, 
10/19 at 100.00 
AA 
3,489,692 
   
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– 
2,700,712 
   
5.000%, 11/15/42 (UB) 
      
5,355 
  
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender 
No Opt. Call 
AA– 
5,974,252 
   
Option Bond Trust 3175, 13.616%, 5/15/14 (IF) 
      
20 
  
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG 
12/11 at 100.00 
AA 
20,016 
   
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+ 
532,618 
3,300 
  
0.000%, 8/01/32 – FGIC Insured 
8/12 at 30.97 
A+ 
746,856 
11,865 
  
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed 
6/17 at 100.00 
Baa3 
7,995,705 
   
Bonds, Series 2007A-1, 5.125%, 6/01/47 
      
7,150 
  
Grossmont Healthcare District, California, General Obligation Bonds, Series 2011B, 
7/21 at 100.00 
Aa2 
7,786,636 
   
6.125%, 7/15/40 
      
   
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– 
10,622,562 
5,000 
  
5.375%, 1/01/21 – AMBAC Insured (Alternative Minimum Tax) 
1/12 at 100.00 
A– 
5,013,050 
1,500 
  
5.250%, 1/01/23 – AMBAC Insured (Alternative Minimum Tax) 
1/12 at 100.00 
A– 
1,500,525 
10,000 
  
5.500%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax) 
1/12 at 100.00 
A– 
9,309,700 
12,000 
  
Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital 
8/12 at 100.00 
AA 
6,957,120 
   
Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/40 
      
3,850 
  
Placentia-Yorba Linda Unified School District, Orange County, California, Certificates of 
10/21 at 100.00 
AA+ 
2,881,533 
   
Participation, Series 2011, 0.000%, 10/01/28 – AGM Insured 
      
3,000 
  
San Diego Community College District, California, General Obligation Bonds, Tender Option Bond 
8/21 at 100.00 
AA+ 
3,166,770 
   
Trust 1005, 7.796%, 8/01/41 (IF) 
      
10,000 
  
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue 
No Opt. Call 
Baa1 
1,282,000 
   
Refunding Bonds, Series 1997A, 0.000%, 1/15/35 – NPFG Insured 
      
3,000 
  
San Mateo County Community College District, California, General Obligation Bonds, Series 
No Opt. Call 
Aaa 
1,002,930 
   
2006C, 0.000%, 9/01/30 – NPFG Insured 
      
99,060 
  
Total California 
    
75,005,480 
   
Colorado – 5.9% (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) 
2,431,575 
   
Obligation Bonds, Series 2002, 7.375%, 12/01/32 (Pre-refunded 12/01/12) 
      
1,535 
  
Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Belle 
3/13 at 100.00 
N/R (4) 
1,691,846 
   
Creek Education Center, Series 2002A, 7.625%, 3/15/32 (Pre-refunded 3/15/13) 
      
3,090 
  
Colorado Educational and Cultural Facilities Authority, Revenue Bonds, Montessori Peaks 
5/16 at 102.00 
N/R 
2,624,090 
   
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 
3,381,589 
   
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 
3,992,350 
   
Series 2007A, 5.600%, 12/01/34 – RAAI Insured 
      
   
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006: 
      
5,365 
  
5.000%, 11/15/23 – FGIC Insured 
11/16 at 100.00 
A+ 
5,653,744 
3,300 
  
5.000%, 11/15/24 – FGIC Insured 
11/16 at 100.00 
A+ 
3,453,120 
4,335 
  
5.000%, 11/15/25 – FGIC Insured 
11/16 at 100.00 
A+ 
4,513,515 
2,000 
  
Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A, 
11/11 at 100.00 
A+ 
2,021,500 
   
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 
821,342 
2,000 
  
5.250%, 12/01/36 – RAAI Insured 
12/17 at 100.00 
N/R 
1,613,360 
1,000 
  
Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003, 
6/14 at 101.00 
N/R 
1,003,150 
   
8.000%, 12/01/25 
      
630 
  
Regional Transportation District, Colorado, Certificates of Participation, Series 2010A, 
6/20 at 100.00 
Aa3 
656,951 
   
5.375%, 6/01/31 
      
34,835 
  
Total Colorado 
    
33,858,132 
   
Delaware – 0.1% (0.1% of Total Investments) 
      
520 
  
Delaware State Housing Authority, Multifamily Mortgage Revenue Bonds, Series 2001A, 
7/12 at 100.00 
Aa3 
537,904 
   
5.400%, 7/01/24 
      
   
District of Columbia – 0.8% (0.6% of Total Investments) 
      
1,335 
  
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, 
10/16 at 100.00 
AA+ 
1,337,523 
   
Tender Option Bond Trust 1606, 11.736%, 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+ 
3,341,303 
   
Tender Option Bond Trust 1730, 11.711%, 10/01/30 – AMBAC Insured (IF) 
      
4,670 
  
Total District of Columbia 
    
4,678,826 
   
Florida – 1.6% (1.1% 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+ 
1,105,884 
2,195 
  
5.450%, 12/01/41 – AGM Insured 
12/11 at 100.00 
AA+ 
2,195,395 
5,455 
  
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System 
8/17 at 100.00 
AA 
5,279,513 
   
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 
610,610 
   
6.650%, 5/01/40 
      
9,755 
  
Total Florida 
    
9,191,402 
   
Georgia – 4.0% (2.9% of Total Investments) 
      
15,000 
  
Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 2010C, 5.250%, 1/01/30 
1/21 at 100.00 
A1 
15,534,900 
2,700 
  
Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, Series 2001, 7.900%, 
12/11 at 101.00 
AAA 
2,797,794 
   
12/01/24 (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 
3,026,370 
   
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 
1,315,060 
   
Lenbrook Square Project, Series 2006A, 5.125%, 7/01/42 
      
500 
  
Gainesville Redevelopment Authority, Georgia, Educational Facilities Revenue Bonds, Riverside 
3/17 at 100.00 
N/R 
364,805 
   
Military Academy Project, Series 2007, 5.125%, 3/01/37 
      
23,200 
  
Total Georgia 
    
23,038,929 
   
Illinois – 13.8% (9.8% 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+ 
8,434,798 
   
(Alternative Minimum Tax) 
      
4,950 
  
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International 
1/12 at 100.00 
A2 
4,847,684 
   
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 
2,497,633 
   
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) 
10,122,900 
   
(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 
1,146,150 
   
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 
9,235,148 
2,415 
  
Illinois Finance Authority, General Obligation Debt Certificates, Local Government Program – 
12/14 at 100.00 
A2 
2,448,907 
   
Kankakee County, Series 2005B, 5.000%, 12/01/24 – AMBAC Insured 
      
3,465 
  
Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A, 
8/17 at 100.00 
BBB 
3,225,395 
   
5.500%, 8/01/37 
      
9,000 
  
Illinois Health Facilities Authority, Revenue Bonds, Covenant Retirement Communities Inc., 
12/11 at 101.00 
BBB– 
8,920,170 
   
Series 2001, 5.875%, 12/01/31 
      
5,000 
  
Lake County School District 38, Big Hallow, Illinois, General Obligation Bonds, Series 2005, 
No Opt. Call 
N/R 
2,612,350 
   
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 
4,755,870 
   
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 
12,020,040 
   
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 
6,115,500 
   
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 
2,998,748 
   
Expansion Project, Series 1998A, 5.500%, 6/15/29 – FGIC Insured 
      
122,255 
  
Total Illinois 
    
79,381,293 
   
Indiana – 5.9% (4.2% 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) 
1,282,547 
1,000 
  
5.000%, 1/15/26 (Pre-refunded 1/15/12) – AMBAC Insured 
1/12 at 100.00 
AA+ (4) 
1,021,950 
   
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) 
2,050,800 
2,750 
  
5.125%, 1/15/24 (Pre-refunded 1/15/12) – NPFG Insured 
1/12 at 100.00 
A+ (4) 
2,811,930 
1,250 
  
Hamilton Southeastern Cumberland Campus School Building Corporation, Indiana, First Mortgage 
1/12 at 100.00 
A (4) 
1,278,738 
   
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, 
2/12 at 100.00 
Baa1 
9,523,085 
   
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 
4,395,435 
   
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 
2,441,660 
   
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 
3,509,380 
   
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 
2,108,725 
2,500 
  
5.800%, 9/01/47 
9/17 at 100.00 
N/R 
2,110,425 
1,090 
  
Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.500%, 
1/13 at 101.00 
A1 (4) 
1,183,457 
   
7/15/22 (Pre-refunded 1/15/13) – AMBAC Insured 
      
34,175 
  
Total Indiana 
    
33,718,132 
   
Iowa – 0.5% (0.3% of Total Investments) 
      
2,000 
  
Iowa Finance Authority, Healthcare Revenue Bonds, Great River Medical Center, Series 2001, 
11/11 at 100.00 
Aa3 
1,981,620 
   
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 
748,840 
   
5.625%, 6/01/46 
      
3,000 
  
Total Iowa 
    
2,730,460 
   
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 
795,130 
1,000 
  
5.125%, 5/15/42 
5/14 at 103.00 
N/R 
779,400 
2,000 
  
Total Kansas 
    
1,574,530 
   
Kentucky – 4.4% (3.1% of Total Investments) 
      
1,000 
  
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds, 
6/18 at 100.00 
AA+ 
1,033,560 
   
Louisville Arena Authority, Inc., Series 2008-A1, 6.000%, 12/01/42 – AGC Insured 
      
5,400 
  
Lexington-Fayette Urban County Government Public Facilities Corporation, Kentucky State Lease 
6/21 at 100.00 
Aa3 
5,609,898 
   
Revenue Bonds, Eastern State Hospital Project, Series 2011A, 5.250%, 6/01/29 
      
18,500 
  
Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage 
11/11 at 101.00 
AA– 
18,739,760 
   
System Revenue Bonds, Series 2001A, 5.125%, 5/15/27 – NPFG Insured 
      
24,900 
  
Total Kentucky 
    
25,383,218 
   
Louisiana – 5.6% (4.0% of Total Investments) 
      
3,000 
  
Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue 
11/17 at 100.00 
BBB– 
3,141,000 
   
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 
3,442,295 
   
Series 2007A, 5.500%, 5/15/47 
      
4,425 
  
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, 
5/21 at 100.00 
Baa1 
4,718,245 
   
Series 2011, 6.750%, 5/15/41 
      
20,890 
  
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, 
11/11 at 101.00 
A– 
20,760,482 
   
Series 2001B, 5.875%, 5/15/39 
      
32,015 
  
Total Louisiana 
    
32,062,022 
   
Maine – 0.2% (0.1% of Total Investments) 
      
1,075 
  
Maine State Housing Authority, Single Family Mortgage Purchase Bonds, Series 2001B, 5.500%, 
11/11 at 100.00 
AA+ 
1,075,226 
   
11/15/32 (Alternative Minimum Tax) 
      
   
Maryland – 2.5% (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 
691,030 
   
5.250%, 4/01/37 
      
1,570 
  
Maryland Community Development Administration, Insured Multifamily Housing Mortgage Loan 
1/12 at 100.00 
Aa2 
1,571,083 
   
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 
1,226,400 
   
Center, Series 2006A, 5.000%, 12/01/31 
      
10,600 
  
Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995, 
10/11 at 100.00 
N/R 
10,623,002 
   
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– 
497,785 
   
Retirement Community, Series 2007, 4.750%, 7/01/34 
      
15,725 
  
Total Maryland 
    
14,609,300 
   
Massachusetts – 3.6% (2.6% of Total Investments) 
      
1,375 
  
Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007, 
10/12 at 102.00 
N/R 
1,148,744 
   
5.250%, 10/01/26 
      
1,000 
  
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital 
7/15 at 100.00 
BB– 
828,900 
   
Project, Series 2005D, 5.250%, 7/01/30 
      
1,600 
  
Massachusetts Health and Educational Facilities Authority, Revenue Refunding Bonds, Suffolk 
7/19 at 100.00 
BBB 
1,602,944 
   
University Issue, Series 2009A, 5.750%, 7/01/39 
      
1,505 
  
Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 2008, 
6/18 at 100.00 
AA 
1,808,258 
   
Trust 3145, 15.435%, 6/01/16 (IF) 
      
400 
  
Massachusetts Port Authority, Special Facilities Revenue Bonds, ConRac Project, Series 2011A, 
7/21 at 100.00 
A 
394,560 
   
5.125%, 7/01/41 
      
5,000 
  
Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series 
1/12 at 100.00 
N/R 
4,638,950 
   
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+ 
3,288,458 
   
8/01/46 – AGM Insured (UB) (6) 
      
7,165 
  
Metropolitan Boston Transit Parking Corporation, Massachusetts, Systemwide Parking Revenue 
7/21 at 100.00 
A+ 
7,093,350 
   
Bonds, Senior Lien Series 2011, 5.000%, 7/01/41 
      
21,510 
  
Total Massachusetts 
    
20,804,164 
   
Michigan – 8.1% (5.7% of Total Investments) 
      
15,000 
  
Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site 
No Opt. Call 
AA+ 
15,852,300 
   
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 
1,404,980 
   
Obligated Group, Series 2007A, 5.000%, 8/15/38 
      
2,750 
  
Lansing Board of Water and Light, Michigan, Utility System Rvenue Bonds Series 2011A, 
7/21 at 100.00 
AA– 
2,919,400 
   
5.500%, 7/01/41 
      
1,165 
  
Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I, 
10/11 at 100.00 
Aa3 
1,174,250 
   
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) 
70,785 
   
10/15/18 (Pre-refunded 10/15/11) 
      
2,250 
  
Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 
No Opt. Call 
Aa3 
2,272,703 
   
2011-I-A, 5.375%, 10/15/41 
      
2,395 
  
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sisters of Mercy 
No Opt. Call 
AAA 
2,541,430 
   
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) 
1,435,546 
2,500 
  
5.625%, 11/15/31 (Pre-refunded 11/15/11) 
11/11 at 101.00 
A+ (4) 
2,564,375 
   
Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series 2006A: 
      
635 
  
5.000%, 12/01/31 (Pre-refunded 12/01/16) (UB) 
12/16 at 100.00 
N/R (4) 
756,152 
2,865 
  
5.000%, 12/01/31 (UB) 
12/16 at 100.00 
AA 
2,876,804 
12,640 
  
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont 
11/11 at 100.00 
A1 
12,499,064 
   
Hospital, Series 2001M, 5.250%, 11/15/31 – NPFG Insured 
      
45,670 
  
Total Michigan 
    
46,367,789 
   
Minnesota – 1.2% (0.9% of Total Investments) 
      
2,200 
  
Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily Housing 
10/11 at 105.00 
Aaa 
2,265,604 
   
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, 5.000%, 8/01/18 
No Opt. Call 
AAA 
3,612,120 
1,375 
  
Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, Regions Hospital Parking Ramp 
8/16 at 100.00 
N/R 
1,209,368 
   
Project, Series 2007-1, 5.000%, 8/01/36 
      
6,575 
  
Total Minnesota 
    
7,087,092 
   
Mississippi – 0.9% (0.6% of Total Investments) 
      
2,155 
  
Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage 
11/11 at 101.00 
AAA 
2,162,004 
   
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 
3,082,740 
   
Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB) 
      
5,155 
  
Total Mississippi 
    
5,244,744 
   
Missouri – 3.4% (2.4% of Total Investments) 
      
1,495 
  
Cape Girardeau County Industrial Development Authority, Missouri, Health Facilities Revenue 
6/17 at 100.00 
N/R 
1,294,446 
   
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 
794,000 
   
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) 
1,941,800 
   
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) 
3,391,695 
3,510 
  
5.250%, 12/01/20 (Pre-refunded 12/01/11) – NPFG Insured 
12/11 at 100.00 
AA– (4) 
3,569,670 
3,695 
  
5.250%, 12/01/21 (Pre-refunded 12/01/11) – NPFG Insured 
12/11 at 100.00 
AA– (4) 
3,757,815 
2,040 
  
5.250%, 12/01/22 (Pre-refunded 12/01/11) – NPFG Insured 
12/11 at 100.00 
AA– (4) 
2,074,680 
2,500 
  
Missouri Health and Educational Facilities Authority, Revenue Bonds, Washington University, 
11/21 at 100.00 
AAA 
2,634,600 
   
Series 2011B, 5.000%, 11/15/37 
      
19,400 
  
Total Missouri 
    
19,458,706 
   
Montana – 0.9% (0.6% of Total Investments) 
      
5,000 
  
Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company, Series 
7/12 at 100.00 
B+ 
5,020,200 
   
2000, 8.000%, 7/01/20 (Alternative Minimum Tax) 
      
   
Nebraska – 1.1% (0.8% of Total Investments) 
      
4,475 
  
Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2010A, 
9/20 at 100.00 
AAA 
4,775,183 
   
6.050%, 9/01/41 
      
1,005 
  
Omaha Public Power District, Nebraska, Separate Electric System Revenue Bonds, Nebraska 
2/17 at 100.00 
AA+ 
1,506,465 
   
City 2, Series 2006A, 20.264%, 8/01/40 – AMBAC Insured (IF) 
      
5,480 
  
Total Nebraska 
    
6,281,648 
   
Nevada – 3.7% (2.6% 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 
10,401,900 
6,000 
  
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran 
1/20 at 100.00 
Aa3 
5,922,900 
   
International Airport, Series 2010A, 5.250%, 7/01/42 
      
2,000 
  
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas 
1/12 at 100.00 
N/R 
479,940 
   
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 
6,400 
   
Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (5) 
      
145 
  
Nevada Housing Division, Single Family Mortgage Bonds, Senior Series 1998A-1, 5.300%, 4/01/18 
10/11 at 100.00 
Aaa 
148,551 
   
(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) 
4,382,578 
   
(Pre-refunded 1/01/12) – FGIC Insured 
      
26,435 
  
Total Nevada 
    
21,342,269 
   
New Hampshire – 0.4% (0.3% of Total Investments) 
      
2,000 
  
New Hampshire Health and Education Authority, Hospital Revenue Bonds, Concord Hospital, 
10/11 at 101.00 
Aa3 
2,025,720 
   
Series 2001, 5.500%, 10/01/21 – AGM Insured 
      
   
New Jersey – 4.9% (3.5% of Total Investments) 
      
10,000 
  
New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water 
11/12 at 101.00 
A2 
10,013,900 
   
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 
476,086 
   
Series 2003, 5.500%, 7/01/33 
      
4,125 
  
New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration 
No Opt. Call 
Aa3 
4,463,415 
   
Grants, Series 2002A, 5.500%, 9/15/13 – AMBAC Insured 
      
12,970 
  
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital 
No Opt. Call 
A+ 
3,293,472 
   
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+ 
5,032,600 
   
0.000%, 12/15/33 – AGM Insured 
      
7,045 
  
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, 
6/17 at 100.00 
Baa3 
4,860,205 
   
Series 2007-1A, 4.750%, 6/01/34 
      
54,760 
  
Total New Jersey 
    
28,139,678 
   
New York – 5.7% (4.0% of Total Investments) 
      
900 
  
Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter 
4/17 at 100.00 
N/R 
751,158 
   
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– 
1,305,077 
3,400 
  
0.000%, 7/15/44 
No Opt. Call 
BBB– 
405,042 
4,675 
  
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General 
3/21 at 100.00 
AAA 
4,835,446 
   
Purpose Series 2011C, 5.000%, 3/15/41 
      
1,780 
  
East Rochester Housing Authority, New York, GNMA Secured Revenue Bonds, Gates Senior Housing 
10/11 at 101.00 
N/R 
1,747,390 
   
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 
4,253,290 
   
2/15/47 – NPFG Insured 
      
750 
  
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2011A, 
11/21 at 100.00 
A 
743,580 
   
5.000%, 11/15/41 
      
4,155 
  
Monroe County Airport Authority, New York, Revenue Refunding Bonds, Greater Rochester 
No Opt. Call 
Baa1 
4,352,861 
   
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– 
8,270,560 
   
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+ 
3,321,094 
   
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 
949,585 
   
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) 
1,677,196 
   
(Pre-refunded 8/01/12) – NPFG Insured 
      
35,570 
  
Total New York 
    
32,612,279 
   
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– 
1,659,418 
   
Bonds, Series 2008, Trust 1149, 15.059%, 7/15/32 (IF) (6) 
      
1,200 
  
Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care System Revenue Bonds, 
1/17 at 100.00 
AA– 
1,218,876 
   
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 
1,994,948 
   
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 
NR (4) 
552,631 
   
1/01/13 (ETM) 
      
1,085 
  
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 
No Opt. Call 
A 
1,157,521 
   
5.500%, 1/01/13 
      
6,260 
  
Total North Carolina 
    
6,583,394 
   
Ohio – 1.8% (1.3% 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 
2,570,387 
710 
  
5.875%, 6/01/30 
6/17 at 100.00 
Baa3 
558,578 
685 
  
5.750%, 6/01/34 
6/17 at 100.00 
Baa3 
518,018 
1,570 
  
5.875%, 6/01/47 
6/17 at 100.00 
Baa3 
1,162,177 
5,800 
  
Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Series 2011A, 
11/21 at 100.00 
AA 
5,754,818 
   
5.000%, 11/15/41 
      
11,900 
  
Total Ohio 
    
10,563,978 
   
Oklahoma – 2.0% (1.4% of Total Investments) 
      
   
Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007: 
      
4,370 
  
5.000%, 2/15/37 
2/17 at 100.00 
A 
4,363,620 
955 
  
5.000%, 2/15/42 
2/17 at 100.00 
A 
944,648 
6,305 
  
Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health 
12/16 at 100.00 
AA+ 
6,319,375 
   
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+ 
88,364 
   
System, Series 2008, Trust 3500, 8.489%, 6/15/30 (IF) 
      
11,718 
  
Total Oklahoma 
    
11,716,007 
   
Oregon – 0.8% (0.6% of Total Investments) 
      
4,700 
  
Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds, 
11/11 at 101.00 
A+ 
4,768,573 
   
PeaceHealth Project, Series 2001, 5.250%, 11/15/21 – AMBAC Insured 
      
   
Pennsylvania – 1.2% (0.9% of Total Investments) 
      
500 
  
Bucks County Industrial Development Authority, Pennsylvania, Charter School Revenue Bonds, 
3/17 at 100.00 
BBB 
410,730 
   
School Lane Charter School, Series 2007A, 5.000%, 3/15/37 
      
3,500 
  
Pennsylvania Economic Development Financing Authority, Senior Lien Resource Recovery Revenue 
1/12 at 100.00 
CC 
1,966,510 
   
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– 
1,357,006 
   
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) 
3,378,967 
   
8/01/16 (Pre-refunded 8/01/12) – FGIC Insured 
      
8,605 
  
Total Pennsylvania 
    
7,113,213 
   
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 
2,506,250 
   
5.250%, 8/01/57 
      
   
Tennessee – 0.3% (0.2% of Total Investments) 
      
3,680 
  
Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue 
1/17 at 30.07 
A– 
546,517 
   
Refunding Bonds, Covenant Health, Series 2006, 0.000%, 1/01/41 
      
275 
  
Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds, 
9/16 at 100.00 
BBB+ 
249,068 
   
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 (5), (7) 
11/17 at 100.00 
N/R 
59,912 
2,800 
  
5.500%, 11/01/46 (5), (7) 
11/17 at 100.00 
N/R 
209,692 
680 
  
Tennessee Housing Development Agency, Homeownership Program Bonds, Series 2001-3A, 5.200%, 
10/11 at 100.00 
AA+ 
680,367 
   
7/01/22 (Alternative Minimum Tax) 
      
8,235 
  
Total Tennessee 
    
1,745,556 
   
Texas – 19.5% (13.9% of Total Investments) 
      
5,445 
  
Board of Regents, University of Texas System, Financing System Revenue Bonds, Series 2006F, 
2/17 at 100.00 
AAA 
5,285,462 
   
4.250%, 8/15/36 (UB) 
      
2,700 
  
Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011, 6.250%, 1/01/46 
1/21 at 100.00 
BBB– 
2,704,590 
4,500 
  
Colorado River Municipal Water District, Texas, Water System Revenue Bonds, Series 2011, 
1/21 at 100.00 
AA– 
4,541,895 
   
5.000%, 1/01/36 (WI/DD, Settling 8/16/11) 
      
3,850 
  
Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds, 
11/11 at 100.00 
A+ 
3,806,457 
   
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 
5,009,150 
   
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 
4,048,726 
   
(Pre-refunded 8/15/11) 
      
10,000 
  
Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2011D, 5.000%, 11/15/40 
11/21 at 100.00 
AA 
10,131,900 
6,000 
  
Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2001B, 
No Opt. Call 
AA+ 
7,407,540 
   
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 
A2 
7,022,330 
   
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 
2,571,864 
2,905 
  
5.500%, 7/01/14 – FGIC Insured (Alternative Minimum Tax) 
1/12 at 100.00 
A 
2,958,917 
14,200 
  
Hutto Independent School District, Williamson County, Texas, General Obligation Bonds, Series 
8/16 at 100.00 
AAA 
14,240,754 
   
2007A, 4.750%, 8/01/43 (UB) 
      
8,000 
  
Lower Colorado River Authority, Texas, Transmission Contract Refunding Revenue Bonds, LCRA 
5/20 at 100.00 
A 
8,013,520 
   
Transmission Services Corporation Project, Refunding & Improvement Series 2010, 5.000%, 5/15/40 
      
1,750 
  
Martin County Hospital District, Texas, Combination Limited Tax and Revenue Bonds, Series 
4/21 at 100.00 
N/R 
1,794,940 
   
2011A, 7.250%, 4/01/36 
      
2,500 
  
Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston 
No Opt. Call 
A3 
2,526,975 
   
Light and Power Company, Series 1997, 5.125%, 11/01/28 – AMBAC Insured (Alternative 
      
   
Minimum Tax) 
      
3,150 
  
North Texas Tollway Authority, Second Tier System Revenue Refunding Bonds, Series 2008F, 
1/18 at 100.00 
A3 
3,163,230 
   
5.750%, 1/01/38 
      
   
North Texas Tollway Authority, Special Projects System Revenue Bonds, Series 2011A: 
      
4,370 
  
0.000%, 9/01/43 
9/31 at 100.00 
AA 
2,260,994 
9,130 
  
0.000%, 9/01/45 
9/31 at 100.00 
AA 
5,282,070 
3,045 
  
Port of Houston Authority, Harris County, Texas, General Obligation Port Improvement Bonds, 
10/11 at 100.00 
AAA 
3,061,656 
   
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– 
3,562,930 
   
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– 
7,539,917 
   
Texas Health Resources, Series 2007A, 5.000%, 2/15/36 (UB) 
      
   
White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds, 
      
   
Series 2006: 
      
9,110 
  
0.000%, 8/15/37 
8/15 at 31.98 
AAA 
2,297,360 
9,110 
  
0.000%, 8/15/40 
8/15 at 27.11 
AAA 
1,934,417 
7,110 
  
0.000%, 8/15/44 
8/15 at 21.88 
AAA 
1,192,845 
136,640 
  
Total Texas 
    
112,360,439 
   
Utah – 0.4% (0.3% of Total Investments) 
      
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E: 
      
630 
  
5.200%, 1/01/18 (Alternative Minimum Tax) 
1/12 at 100.00 
AA– 
631,638 
240 
  
5.500%, 1/01/23 (Alternative Minimum Tax) 
1/12 at 100.00 
Aaa 
249,257 
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1: 
      
965 
  
4.950%, 7/01/18 (Alternative Minimum Tax) 
1/12 at 100.00 
AA– 
982,978 
355 
  
5.300%, 7/01/23 (Alternative Minimum Tax) 
1/12 at 100.00 
Aaa 
366,211 
2,190 
  
Total Utah 
    
2,230,084 
   
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 
862,460 
   
Village, Series 2005, 5.375%, 12/01/28 
      
   
Washington – 13.1% (9.4% 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 
Aaa 
1,004,690 
2,000 
  
5.600%, 12/01/36 – NPFG Insured 
12/11 at 100.00 
Aaa 
2,006,320 
2,500 
  
King County, Washington, Sewer Revenue Bonds, Series 2009, 5.250%, 1/01/42 
1/19 at 100.00 
AA+ 
2,611,500 
   
Port of Seattle, Washington, Revenue Bonds, Series 2001B: 
      
2,535 
  
5.625%, 4/01/18 – FGIC Insured (Alternative Minimum Tax) 
10/11 at 100.00 
Aa2 
2,552,796 
16,000 
  
5.100%, 4/01/24 – FGIC Insured (Alternative Minimum Tax) (UB) 
10/11 at 100.00 
AA 
16,006,880 
1,440 
  
Public Utility District 1, Benton County, Washington, Electric Revenue Refunding Bonds, Series 
11/11 at 100.00 
AA+ (4) 
1,459,858 
   
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+ 
657,742 
   
2001A, 5.625%, 11/01/15 – 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) 
4,607,010 
   
(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) 
3,752,513 
   
Regional Medical Center, Series 2001, 5.375%, 10/01/18 (Pre-refunded 10/01/11) – AMBAC Insured 
      
3,410 
  
Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer 
1/21 at 100.00 
A 
3,403,214 
   
Research Center, Series 2011A, 5.625%, 1/01/35 
      
   
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) 
5,583,846 
25,435 
  
5.625%, 10/01/31 (Pre-refunded 10/01/11) – RAAI Insured 
10/11 at 101.00 
BBB– (4) 
25,922,326 
   
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 
3,047,220 
2,915 
  
5.375%, 12/01/18 – AMBAC Insured 
12/11 at 101.00 
BBB 
2,952,982 
74,620 
  
Total Washington 
    
75,568,897 
   
Wisconsin – 2.3% (1.7% 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) 
3,786,102 
1,850 
  
5.000%, 1/01/21 (Pre-refunded 1/01/12) – FGIC Insured 
1/12 at 100.00 
N/R (4) 
1,887,574 
1,000 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Franciscan Sisters of 
9/17 at 100.00 
BBB+ 
901,030 
   
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– 
352,363 
   
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) 
3,719,277 
   
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+ 
2,508,700 
   
   Series 2001B, 6.000%, 2/15/25 
      
330 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan 
8/13 at 100.00 
BBB+ 
291,634 
   
   Services Inc., Series 2003A, 5.125%, 8/15/33 
      
13,385 
  
Total Wisconsin 
    
13,446,680 
$ 935,943 
  
Total Municipal Bonds (cost $805,644,038) 
    
$ 800,187,928 
 
Shares 
  
Description (1) 
    
Value 
   
Investment Companies – 0.6% (0.4% of Total Investments) 
      
6,266 
  
BlackRock MuniHoldings Fund Inc. 
    
$         92,737 
26,880 
  
Dreyfus Strategic Municipal Fund 
    
213,696 
131,278 
  
DWS Municipal Income Trust 
    
1,559,583 
43,020 
  
Invesco Van Kampen Investment Grade Municipal Trust 
    
574,747 
30,000 
  
Invesco Van Kampen Municipal Opportunity Trust 
    
390,000 
43,420 
  
PIMCO Municipal Income Fund II 
    
446,792 
   
Total Investment Companies (cost $3,325,133) 
    
3,277,555 
   
Short-Term Investments – 0.8% (0.6% of Total Investments) 
      
   
South Carolina – 0.8% (0.6% of Total Investments) 
      
$    4,730 
  
South Carolina Educational Facilities Authority, Charleston Southern University Education Facilities 
9/11 at 100.00 
VMIG-1 
4,730,000 
   
Revenue Bond, Variable Rate Demand Series 2003, 0.240%, 4/01/28 (8) 
      
$    4,730 
  
Total Short-Term Investments (cost $4,730,000) 
    
4,730,000 
   
Total Investments (cost $813,699,171) – 140.3% 
    
808,195,483 
   
Floating Rate Obligations – (10.3)% 
    
(59,362,000)
   
MuniTerm Preferred Shares, at Liquidation Value – (12.2)% (9) 
    
(70,000,000)
   
Other Assets Less Liabilities – 11.4% 
    
65,460,694 
   
Auction Rate Preferred Shares, at Liquidation Value – (29.2)% (9) 
    
(168,400,000)
   
Net Assets Applicable to Common Shares – 100% 
    
$ 575,894,177 
 
 
 
 
 
 
 
Fair Value Measurements
 
Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is 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, 2011:
 
         
 
Level 1 
Level 2 
Level 3 
Total 
Investments: 
        
Municipal Bonds 
$           — 
$799,918,324 
$269,604 
$800,187,928 
Investment Companies 
3,277,555 
—
—
3,277,555 
Short-Term Investments 
—
4,730,000 
—
4,730,000 
Total 
$3,277,555 
$804,648,324 
$269,604 
$808,195,483 
 
 
During the period ended July 31, 2011, the Fund recognized no significant transfers to or from Level 1, Level 2 or Level 3.
 
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 
$187,350 
Gains (losses): 
  
  Net realized gains (losses) 
(17,141)
  Net change in unrealized appreciation (depreciation) 
99,395 
Purchases at cost 
— 
Sales at proceeds 
— 
Net discounts (premiums) 
— 
Transfers in to 
— 
Transfers out of 
— 
Balance at the end of period 
$269,604 
 
During the period ended July 31, 2011, the Fund recognized no significant transfers to or 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 July 31, 2011, the cost of investments was $757,234,579.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 2011, were as follows:
 
   
Gross unrealized: 
  
Appreciation 
$ 22,050,817 
Depreciation 
(30,395,987)
Net unrealized appreciation (depreciation) of investments 
$ (8,345,170)
 
 
     
(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) 
  
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income 
   
producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the 
   
payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the 
   
Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations 
   
and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. 
(6) 
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations of 
   
investments in inverse floating rate transactions. 
(7)    For fair value measurement disclosure purposes, investment categorized as Level 3.
(8) 
  
Investment has a maturity of more than one year, but has a variable rate and demand features which 
   
qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. 
   
This rate changes periodically based on market conditions or a specified market index. 
(9) 
  
MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage 
   
of Total Investments are 8.7% and 20.8%, respectively. 
N/R 
  
Not rated. 
WI/DD 
  
Purchased on a when-issued or delayed delivery basis. 
(ETM) 
  
Escrowed to maturity. 
(IF) 
  
Inverse floating rate investment. 
(UB) 
  
Underlying bond of an inverse floating rate trust reflected as a financing transaction. 
 
 
 
 
 
 
Item 2. Controls and Procedures.

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

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

 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
(Registrant)  Nuveen Dividend Advantage Municipal Fund 3 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         September 29, 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         September 29, 2011        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         September 29, 2011