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:         7/31/13         
 
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, 2013
      
 
 
Principal
    
Optional Call
    
Amount (000)
  
Description (1)
Provisions (2)
Ratings (3)
Value
   
Long-Term Investments – 141.1% (98.7% of Total Investments)
      
           
   
Municipal Bonds – 140.5% (98.3% of Total Investments)
      
           
   
Alabama – 0.6% (0.4% of Total Investments)
      
$       3,500
  
Alabama Special Care Facilities Financing Authority, Revenue Bonds, Ascension Health, Series
11/16 at 100.00
AA+
$       3,505,005
   
2006C-2, 5.000%, 11/15/36 (UB)
      
   
Alaska – 0.1% (0.1% of Total Investments)
      
1,000
  
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds,
6/14 at 100.00
B+
733,070
   
Series 2006A, 5.000%, 6/01/46
      
   
Arizona – 2.2% (1.6% of Total Investments)
      
3,390
  
Arizona State Transportation Board, Highway Revenue Bonds, Series 2008, Trust 3141,
No Opt. Call
AAA
3,921,383
   
13.352%, 7/01/16 (IF)
      
5,000
  
Phoenix Civic Improvement Corporation, Arizona, Subordinate Excise Tax Revenue Bonds, Civic
7/15 at 100.00
AA
5,211,600
   
Plaza Expansion Project, Series 2005A, 5.000%, 7/01/30 – FGIC Insured
      
3,800
  
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc
No Opt. Call
A–
3,643,364
   
Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37
      
12,190
  
Total Arizona
    
12,776,347
   
California – 13.4% (9.3% of Total Investments)
      
1,670
  
California Health Facilities Financing Authority, Refunding Revenue Bonds, Stanford Hospital
11/21 at 100.00
AA–
1,724,809
   
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
3,662,616
   
Series 2009B, 5.500%, 10/01/39
      
2,900
  
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, 2007A, 5.000%,
11/16 at 100.00
AA–
2,847,278
   
11/15/42 (UB)
      
5,355
  
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender
No Opt. Call
AA–
6,315,633
   
Option Bond Trust 3175, 13.529%, 5/15/14 (IF)
      
20
  
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG
12/13 at 100.00
AA
20,024
   
Insured (Alternative Minimum Tax)
      
8,820
  
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement
6/15 at 100.00
AA–
8,546,315
   
Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 – AGC Insured
      
   
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed
      
   
Bonds, Series 2007A-1:
      
900
  
5.000%, 6/01/33
6/17 at 100.00
B
733,356
11,865
  
5.125%, 6/01/47
6/17 at 100.00
B
8,472,678
7,150
  
Grossmont Healthcare District, California, General Obligation Bonds, Series 2011B,
7/21 at 100.00
Aa2
8,058,336
   
6.125%, 7/15/40
      
10,000
  
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2011A,
1/21 at 100.00
AA
10,318,300
   
5.000%, 7/01/41
      
2,750
  
Los Angeles Regional Airports Improvement Corporation, California, Lease Revenue Refunding
1/22 at 100.00
A
2,661,038
   
Bonds, LAXFUEL Corporation at Los Angeles International Airport, Series 2012, 4.500%,
      
   
1/01/27 (Alternative Minimum Tax)
      
12,000
  
Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital
8/30 at 100.00
A+
8,265,360
   
Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/40
      
3,850
  
Placentia-Yorba Linda Unified School District, Orange County, California, Certificates of
10/25 at 100.00
AA–
3,468,273
   
Participation, Series 2011, 0.000%, 10/01/28 – AGM Insured
      
205
  
Riverside County Transportation Commission, California, Toll Revenue Senior Lien Bonds, Series
6/23 at 100.00
BBB–
204,100
   
2013A, 5.750%, 6/01/44
      
3,550
  
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011,
12/21 at 100.00
BB
3,992,650
   
7.500%, 12/01/41
      
3,000
  
San Diego Community College District, California, General Obligation Bonds, Tender Option Bond
8/21 at 100.00
AA+
3,336,240
   
Trust 1005, 13.936%, 8/01/41 (IF) (5)
      
10,000
  
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue
No Opt. Call
A
2,588,100
   
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
1,349,820
   
2006C, 0.000%, 9/01/30 – NPFG Insured
      
90,435
  
Total California
    
76,564,926
   
Colorado – 4.4% (3.1% of Total Investments)
      
2,805
  
Colorado Educational and Cultural Facilities Authority, Revenue Bonds, Montessori Peaks
5/16 at 102.00
N/R
2,473,365
   
Academy, Series 2006A, 5.400%, 5/01/26
      
5,000
  
Compark Business Campus Metropolitan District, Colorado, General Obligation Limited Tax Bonds,
12/17 at 100.00
N/R
4,324,000
   
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+
5,860,350
3,300
  
5.000%, 11/15/24 – FGIC Insured
11/16 at 100.00
A+
3,555,783
4,335
  
5.000%, 11/15/25 – FGIC Insured
11/16 at 100.00
A+
4,585,866
   
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
871,606
2,000
  
5.250%, 12/01/36 – RAAI Insured
12/17 at 100.00
N/R
1,693,200
1,000
  
Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003,
6/14 at 101.00
N/R (4)
1,074,230
   
8.000%, 12/01/25 (Pre-refunded 6/01/14)
      
630
  
Regional Transportation District, Colorado, Certificates of Participation, Series 2010A,
6/20 at 100.00
Aa3
662,269
   
5.375%, 6/01/31
      
25,385
  
Total Colorado
    
25,100,669
   
Connecticut – 0.3% (0.2% of Total Investments)
      
1,500
  
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hartford Healthcare,
7/21 at 100.00
A
1,474,440
   
Series 2011A, 5.000%, 7/01/41
      
   
District of Columbia – 2.0% (1.4% of Total Investments)
      
10,000
  
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds,
10/16 at 100.00
AA+
10,028,700
   
Senior Lien Refunding Series 2007A, 4.500%, 10/01/30 – AMBAC Insured
      
1,335
  
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds,
10/16 at 100.00
AA+
1,346,481
   
Tender Option Bond Trust 1606, 11.776%, 10/01/30 – AMBAC Insured (IF) (5)
      
11,335
  
Total District of Columbia
    
11,375,181
   
Florida – 4.2% (3.0% of Total Investments)
      
4,980
  
Broward County, Florida, Airport System Revenue Refunding Bonds, Series 2009O, 5.375%, 10/01/29
10/19 at 100.00
A+
5,342,494
1,950
  
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Refunding
No Opt. Call
A
1,920,146
   
Series 2012A, 5.000%, 10/01/31 (Alternative Minimum Tax)
      
800
  
Miami-Dade County, Florida, Subordinate Special Obligation Refunding Bonds Series 2012B,
10/22 at 100.00
A+
786,720
   
5.000%, 10/01/37
      
6,850
  
Miami-Dade County, Florida, Transit System Sales Surtax Revenue Bonds, Series 2012,
7/22 at 100.00
AA
6,943,160
   
5.000%, 7/01/42
      
   
Orange County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Oak Glen
      
   
Apartments, Series 2001G:
      
1,105
  
5.400%, 12/01/32 – AGM Insured
12/13 at 100.00
AA–
1,105,586
2,195
  
5.450%, 12/01/41 – AGM Insured
12/13 at 100.00
AA–
2,195,724
5,455
  
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System
8/17 at 100.00
AA
5,430,016
   
Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) (5)
      
70
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Convertible,
5/17 at 100.00
N/R
51,867
   
Capital Appreciation, Series 2012A-2, 0.000%, 5/01/39
      
200
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Convertible,
5/19 at 100.00
N/R
120,914
   
Capital Appreciation, Series 2012A-3, 0.000%, 5/01/40
      
85
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Convertible,
5/22 at 100.00
N/R
38,111
   
Capital Appreciation, Series 2012A-4, 0.000%, 5/01/40
      
110
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Hope Note, Series
5/18 at 100.00
N/R
1
   
2007-3, 6.650%, 5/01/40 (6)
      
15
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Non Performing
5/18 at 100.00
N/R
11,085
   
ParcelSeries 2007-1. RMKT, 6.650%, 5/01/40 (6)
      
200
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Refunding Series
5/17 at 100.00
N/R
193,088
   
2012A-1, 6.650%, 5/01/40
      
475
  
Tolomato Community Development District, Florida, Special Assessment Bonds,
5/18 at 100.00
N/R
178,733
   
Southern/Forbearance Parcel Series 2007-2, 6.650%, 5/01/40 (6)
      
24,490
  
Total Florida
    
24,317,645
   
Georgia – 6.4% (4.5% of Total Investments)
      
15,205
  
Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 2010C, 5.250%, 1/01/30
1/21 at 100.00
A1
15,985,321
2,000
  
Atlanta, Georgia, Airport Passenger Facilities Charge Revenue Bonds, Series 2004J, 5.000%,
No Opt. Call
AA–
2,101,920
   
1/01/29 – AGM Insured
      
3,000
  
Franklin County Industrial Building Authority, Georgia, Revenue Bonds, Ty Cobb Regional
12/20 at 100.00
N/R
3,127,800
   
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
1,693,000
   
Lenbrook Square Project, Series 2006A, 5.125%, 7/01/42
      
5,000
  
Fulton County, Georgia, Water and Sewerage Revenue Bonds, Series 2004, 5.000%, 1/01/35
1/14 at 100.00
AA– (4)
5,100,650
   
(Pre-refunded 1/01/14) – FGIC Insured
      
8,150
  
Gwinnett County School District, Georgia, General Obligation Bonds, Series 2008,
2/18 at 100.00
AAA
8,626,042
   
5.000%, 2/01/36
      
35,355
  
Total Georgia
    
36,634,733
   
Illinois – 16.6% (11.6% of Total Investments)
      
3,200
  
Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Series 2011,
12/21 at 100.00
AA
3,266,880
   
5.250%, 12/01/40
      
8,375
  
Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 5.500%, 1/01/19 – AGM Insured
1/14 at 100.00
AA–
8,409,924
   
(Alternative Minimum Tax)
      
4,855
  
Chicago, Illinois, Sales Tax Revenue Bonds, Series 2011A, 5.000%, 1/01/41
1/22 at 100.00
AAA
4,918,018
2,220
  
Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2001A, 5.500%,
No Opt. Call
A+
2,465,266
   
1/01/16 – NPFG Insured
      
3,630
  
Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport,
1/16 at 100.00
A
3,654,793
   
Series 2005A, 5.000%, 1/01/33 – FGIC Insured
      
7,500
  
Community Unit School District 308, Oswego, in the Counties of Kendall, Kane, and Will,
10/14 at 100.00
Aa2 (4)
7,952,475
   
Illinois, General Obligation Bonds, Series 2004, 5.375%, 10/01/17 (Pre-refunded 10/01/14) –
      
   
AGM Insured
      
11,175
  
Cook County, Illinois, General Obligation Bonds, Refunding Series 2010A, 5.250%, 11/15/33
11/20 at 100.00
AA
11,501,198
2,415
  
Illinois Finance Authority, General Obligation Debt Certificates, Local Government Program –
12/14 at 100.00
A2 (4)
2,568,208
   
Kankakee County, Series 2005B, 5.000%, 12/01/24 (Pre-refunded 12/01/14) – AMBAC Insured
      
1,000
  
Illinois Finance Authority, Revenue Bonds, Advocate Health Care Network, Series 2012,
No Opt. Call
AA
983,430
   
5.000%, 6/01/42
      
3,630
  
Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A,
8/17 at 100.00
BBB
3,756,832
   
5.500%, 8/01/37
      
4,125
  
Illinois Finance Authority, Revenue Bonds, The University of Chicago, Series 2012A,
10/21 at 100.00
Aa1
4,083,049
   
5.000%, 10/01/51
      
560
  
Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Tender Option Bond Trust 4304,
No Opt. Call
AA–
591,842
   
18.067%, 1/01/21 (IF) (5)
      
5,000
  
Lake County School District 38, Big Hallow, Illinois, General Obligation Bonds, Series 2005,
No Opt. Call
N/R
3,295,050
   
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
4,307,170
   
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
12,239,760
   
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
7,497,450
   
Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/43 – AGM Insured
      
2,790
  
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place
No Opt. Call
AAA
3,065,178
   
Expansion Project, Series 1998A, 5.500%, 6/15/29 – FGIC Insured
      
10,000
  
Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.000%, 12/01/41 (Pre-refunded
12/14 at 100.00
AAA
10,630,200
   
12/01/14) – AGM Insured
      
134,475
  
Total Illinois
    
95,186,723
   
Indiana – 7.9% (5.5% of Total Investments)
      
4,230
  
Indiana Finance Authority, Educational Facilities Revenue Bonds, Tudor Park Foundation, Series
6/15 at 100.00
Aa3
4,347,594
   
2005B, 5.000%, 6/01/24
      
5,310
  
Indiana Finance Authority, Hospital Revenue Bonds, Community Health Network Project, Series
5/23 at 100.00
A
5,094,680
   
2012A, 5.000%, 5/01/42
      
5,370
  
Indiana Finance Authority, Private Activity Bonds, Ohio River Bridges East End Crossing
7/23 at 100.00
BBB
4,974,231
   
Project, Series 2013A, 5.250%, 1/01/51 (Alternative Minimum Tax)
      
6,700
  
Indiana Finance Authority, Wastewater Utility Revenue Bonds, CWA Authority Project, Series
10/21 at 100.00
AA–
6,717,353
   
2011B, 5.000%, 10/01/41
      
10,925
  
Indiana Health Facility Financing Authority, Revenue Bonds, Community Hospitals of Indiana,
5/15 at 100.00
A (4)
11,806,866
   
Series 2005A, 5.000%, 5/01/35 (Pre-refunded 5/01/15) – AMBAC Insured
      
7,000
  
Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series 2004A, 5.000%,
1/15 at 100.00
A+
7,215,460
   
1/01/32 – FGIC 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
2,475,450
2,500
  
5.800%, 9/01/47
9/17 at 100.00
N/R
2,480,700
44,535
  
Total Indiana
    
45,112,334
   
Iowa – 0.2% (0.1% of Total Investments)
      
   
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C:
      
525
  
5.500%, 6/01/42
6/15 at 100.00
B+
426,820
1,000
  
5.625%, 6/01/46
6/15 at 100.00
B+
821,800
1,525
  
Total Iowa
    
1,248,620
   
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
860,160
1,000
  
5.125%, 5/15/42
5/14 at 103.00
N/R
842,060
2,000
  
Total Kansas
    
1,702,220
   
Kentucky – 1.2% (0.8% of Total Investments)
      
1,000
  
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds,
6/18 at 100.00
AA–
1,031,140
   
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
5,682,744
   
Revenue Bonds, Eastern State Hospital Project, Series 2011A, 5.250%, 6/01/29
      
215
  
Warren County, Kentucky, Hospital Revenue Bonds, Bowling Green-Warren County Community
10/22 at 100.00
A
194,560
   
Hospital Corporation, Series 2012A, 4.000%, 10/01/29
      
6,615
  
Total Kentucky
    
6,908,444
   
Louisiana – 5.2% (3.7% of Total Investments)
      
2,000
  
Jefferson Parish Hospital Service District 2, Louisiana, Hospital Revenue Bonds, East
7/21 at 100.00
BBB–
2,107,700
   
Jefferson General Hospital, Refunding Series 2011, 6.375%, 7/01/41
      
3,000
  
Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue
11/17 at 100.00
BBB–
3,155,700
   
Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
      
10,000
  
Louisiana Public Facilities Authority, Revenue Bonds, Loyola University Project, Refunding
10/21 at 100.00
A+
10,180,500
   
Series 2011, 5.000%, 10/01/41
      
3,700
  
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project,
5/17 at 100.00
Baa1
3,762,197
   
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
4,896,528
   
Series 2011, 6.750%, 5/15/41
      
5,855
  
Louisiana Stadium and Exposition District, Revenue Refunding Bonds, Senior Lien Series 2013A,
7/23 at 100.00
A
5,859,274
   
5.000%, 7/01/36
      
28,980
  
Total Louisiana
    
29,961,899
   
Maryland – 0.7% (0.5% of Total Investments)
      
1,000
  
Howard County, Maryland, Retirement Community Revenue Bonds, Vantage House, Series 2007B,
4/17 at 100.00
N/R
854,740
   
5.250%, 4/01/37
      
2,000
  
Maryland Economic Development Corporation, Revenue Bonds, Chesapeake Bay Hyatt Conference
12/16 at 100.00
N/R
1,319,380
   
Center, Series 2006A, 5.000%, 12/01/31
      
555
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Ridge
7/17 at 100.00
A–
531,207
   
Retirement Community, Series 2007, 4.750%, 7/01/34
      
1,675
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, MedStar Health
8/23 at 100.00
A2
1,364,137
   
Issue, Series 2013A, 4.000%, 8/15/41
      
5,230
  
Total Maryland
    
4,069,464
   
Massachusetts – 3.5% (2.4% of Total Investments)
      
1,375
  
Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007,
10/13 at 102.00
N/R
1,308,340
   
5.250%, 10/01/26
      
1,000
  
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital
7/15 at 100.00
BB–
1,007,290
   
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
1,640,160
   
University Issue, Series 2009A, 5.750%, 7/01/39
      
400
  
Massachusetts Port Authority, Special Facilities Revenue Bonds, ConRac Project, Series 2011A,
7/21 at 100.00
A
406,880
   
5.125%, 7/01/41
      
5,000
  
Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series
1/14 at 100.00
N/R
5,003,650
   
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+
3,464,134
   
8/01/46 – AGM Insured (UB) (5)
      
7,165
  
Metropolitan Boston Transit Parking Corporation, Massachusetts, Systemwide Senior Lien Parking
7/21 at 100.00
A+
7,277,061
   
Revenue Bonds, Series 2011, 5.000%, 7/01/41
      
20,005
  
Total Massachusetts
    
20,107,515
   
Michigan – 8.2% (5.7% of Total Investments)
      
15,000
  
Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site
No Opt. Call
Aa2
15,649,800
   
Improvement Bonds, Series 2001A, 6.000%, 5/01/29 – AGM Insured (UB)
      
690
  
Detroit Water and Sewerage Department, Michigan, Sewage Disposal System Revenue Bonds,
7/22 at 100.00
BBB+
632,502
   
Refunding Senior Lien Series 2012A, 5.250%, 7/01/39
      
2,000
  
Garden City Hospital Finance Authority, Michigan, Revenue Bonds, Garden City Hospital
8/17 at 100.00
N/R
1,633,560
   
Obligated Group, Series 2007A, 5.000%, 8/15/38
      
3,580
  
Lansing Board of Water and Light, Michigan, Utility System Revenue Bonds, Series 2011A,
7/21 at 100.00
AA–
3,828,380
   
5.500%, 7/01/41
      
5,000
  
Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011,
12/21 at 100.00
AA
4,970,650
   
5.000%, 12/01/39
      
13,000
  
Michigan Finance Authority, Unemployment Obligation Assessment Revenue Bonds, Series 2012A,
No Opt. Call
AAA
13,574,210
   
5.000%, 7/01/14
      
2,250
  
Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series
10/21 at 100.00
Aa3
2,344,478
   
2011-I-A, 5.375%, 10/15/41
      
650
  
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sisters of Mercy
No Opt. Call
A (4)
663,566
   
Health Corporation, Series 1993P, 5.375%, 8/15/14 – NPFG Insured (ETM)
      
2,865
  
Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series
12/16 at 100.00
AA
2,891,931
   
2006A, 5.000%, 12/01/31 (UB)
      
635
  
Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series
12/16 at 100.00
N/R (4)
719,995
   
2006A, 5.000%, 12/01/31 (Pre-refunded 12/01/16) (UB)
      
45,670
  
Total Michigan
    
46,909,072
   
Minnesota – 1.2% (0.8% of Total Investments)
      
2,140
  
Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily
10/13 at 103.00
Aa1
2,204,970
   
Housing Revenue Bonds, Rose Apartments Project, Series 2001, 6.350%, 10/20/37 (Alternative
      
   
Minimum Tax)
      
3,000
  
Minnesota State, General Obligation Bonds, Various Purpose, Refunding Series 2010D,
No Opt. Call
AA+
3,537,810
   
5.000%, 8/01/18
      
1,375
  
Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, Regions Hospital Parking Ramp
8/16 at 100.00
N/R
1,261,563
   
Project, Series 2007-1, 5.000%, 8/01/36
      
6,515
  
Total Minnesota
    
7,004,343
   
Mississippi – 0.9% (0.6% of Total Investments)
      
2,155
  
Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage
11/13 at 100.00
AA+
2,155,517
   
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–
3,126,240
   
Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB)
      
5,155
  
Total Mississippi
    
5,281,757
   
Missouri – 0.9% (0.6% of Total Investments)
      
1,495
  
Cape Girardeau County Industrial Development Authority, Missouri, Health Facilities Revenue
6/17 at 100.00
BBB+
1,434,946
   
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
886,400
   
Medical Center, Series 2007, 5.000%, 12/01/32
      
2,500
  
Missouri Health and Educational Facilities Authority, Revenue Bonds, Washington University,
11/21 at 100.00
AAA
2,671,100
   
Series 2011B, 5.000%, 11/15/37
      
4,995
  
Total Missouri
    
4,992,446
   
Montana – 0.9% (0.6% of Total Investments)
      
5,000
  
Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company, Series
1/14 at 100.00
B+
5,013,050
   
2000, 8.000%, 7/01/20 (Alternative Minimum Tax)
      
   
Nebraska – 0.3% (0.2% of Total Investments)
      
1,005
  
Omaha Public Power District, Nebraska, Separate Electric System Revenue Bonds, Nebraska
2/17 at 100.00
AA+
1,506,736
   
City 2, Series 2008A, Trust 11673, 20.414%, 8/01/40 – AMBAC Insured (IF)
      
   
Nevada – 5.7% (4.0% of Total Investments)
      
10,000
  
Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien Series 2010B, 5.750%, 7/01/42
1/20 at 100.00
A+
10,882,300
6,000
  
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran
1/20 at 100.00
A+
6,197,520
   
International Airport, Series 2010A, 5.250%, 7/01/42
      
5,000
  
Henderson, Nevada, General Obligation Bonds, Sewer Series 2004, 5.000%, 6/01/34 (Pre-refunded
12/14 at 100.00
AA (4)
5,315,100
   
12/01/14) – FGIC Insured
      
10,000
  
Las Vegas Valley Water District, Nevada, Limited Tax General Obligation Bonds, Water &
6/21 at 100.00
AA+
10,194,100
   
Refunding Series 2011C, 5.000%, 6/01/38
      
31,000
  
Total Nevada
    
32,589,020
   
New Jersey – 5.5% (3.9% of Total Investments)
      
2,850
  
New Jersey Economic Development Authority, Cigarette Tax Revenue Bonds, Series 2004, 5.500%,
6/14 at 100.00
Aaa
2,981,186
   
6/15/31 (Pre-refunded 6/15/14)
      
   
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center,
      
   
Series 2003:
      
200
  
5.500%, 7/01/23
1/14 at 100.00
Ba2
200,180
955
  
5.500%, 7/01/33
1/14 at 100.00
Ba2
955,497
4,125
  
New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration
No Opt. Call
A1
4,151,194
   
Grants, Series 2002A, 5.500%, 9/15/13 – AMBAC Insured
      
12,970
  
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital
No Opt. Call
A+
4,201,761
   
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–
6,428,000
   
0.000%, 12/15/33 – AGM Insured
      
7,000
  
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2012AA,
No Opt. Call
A+
7,135,240
   
5.000%, 6/15/38
      
7,670
  
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
6/17 at 100.00
B2
5,598,103
   
Series 2007-1A, 4.750%, 6/01/34
      
55,770
  
Total New Jersey
    
31,651,161
   
New York – 8.0% (5.6% of Total Investments)
      
900
  
Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter
4/17 at 100.00
BB+
811,836
   
Schools, Series 2007A, 5.000%, 4/01/32
      
   
Brooklyn Arena Local Development Corporation, New York, Payment in Lieu of Taxes Revenue
      
   
Bonds, Barclays Center Project, Series 2009:
      
1,275
  
6.000%, 7/15/30
1/20 at 100.00
BBB–
1,413,440
3,400
  
0.000%, 7/15/44
No Opt. Call
BBB–
542,130
4,675
  
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General
3/21 at 100.00
AAA
4,824,179
   
Purpose Series 2011C, 5.000%, 3/15/41
      
2,100
  
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series
2/21 at 100.00
A
2,233,686
   
2011A, 5.750%, 2/15/47
      
4,945
  
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%,
2/17 at 100.00
A
4,484,373
   
2/15/47 – NPFG Insured
      
1,200
  
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2011A, 5.000%,
5/21 at 100.00
AA–
1,216,848
   
5/01/36 – AGM Insured
      
5,000
  
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2012A,
9/22 at 100.00
A
4,969,450
   
5.000%, 9/01/42
      
750
  
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2011A,
11/21 at 100.00
A
753,990
   
5.000%, 11/15/41
      
8,000
  
New York City Industrial Development Agency, New York, American Airlines-JFK International
8/16 at 101.00
N/R
8,794,000
   
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+
3,312,875
   
Bonds, Second Generation Resolution, Fiscal 2011 Series EE, 5.375%, 6/15/43
      
8,000
  
New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local
10/14 at 100.00
AAA
8,424,480
   
Government Assistance Corporation, Series 2004A, 5.000%, 10/15/21 – NPFG Insured
      
60
  
New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20 –
8/14 at 100.00
AA
60,220
   
NPFG Insured
      
3,000
  
New York State Power Authority, General Revenue Bonds, Series 2011A, 5.000%, 11/15/38
11/21 at 100.00
Aa2
3,149,220
585
  
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Refunding
No Opt. Call
A+
628,044
   
Subordinate Lien Series 2013A, 5.000%, 11/15/28
      
47,015
  
Total New York
    
45,618,771
   
North Carolina – 0.8% (0.6% of Total Investments)
      
1,710
  
Charlotte-Mecklenburg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue
1/18 at 100.00
AA–
1,638,146
   
Bonds, Series 2008, Trust 1149, 15.159%, 7/15/32 (IF) (5)
      
1,200
  
Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care System Revenue Bonds,
1/17 at 100.00
AA–
1,212,852
   
Carolinas Health Care, Series 2007A, 5.000%, 1/15/31
      
1,750
  
Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA
1/15 at 100.00
AA+ (4)
1,864,625
   
Carolinas Healthcare System, Series 2005A, 4.875%, 1/15/32 (Pre-refunded 1/15/15)
      
4,660
  
Total North Carolina
    
4,715,623
   
Ohio – 3.3% (2.3% of Total Investments)
      
   
Allen County, Ohio, Hospital Facilities Revenue Bonds, Catholic Health Partners, Refunding and
      
   
Improvement Series 2012A:
      
650
  
5.000%, 5/01/33
5/22 at 100.00
AA–
655,454
970
  
4.000%, 5/01/33
5/22 at 100.00
AA–
832,677
800
  
5.000%, 5/01/42
5/22 at 100.00
AA–
784,392
   
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue
      
   
Bonds, Senior Lien, Series 2007A-2:
      
4,735
  
5.125%, 6/01/24
6/17 at 100.00
B–
3,950,693
710
  
5.875%, 6/01/30
6/17 at 100.00
B
567,226
3,705
  
5.750%, 6/01/34
6/17 at 100.00
B
2,820,061
1,670
  
5.875%, 6/01/47
6/17 at 100.00
B
1,249,811
1,915
  
Chagrin Falls Exempt Village School District, Ohio, General Obligation Bonds, Refunding Series
12/14 at 100.00
Aa1 (4)
2,043,879
   
2005, 5.250%, 12/01/19 (Pre-refunded 12/01/14) – NPFG Insured
      
5,800
  
Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Series 2011A,
11/21 at 100.00
AA+
5,773,435
   
5.000%,11/15/41
      
20,955
  
Total Ohio
    
18,677,628
   
Oklahoma – 2.1% (1.5% of Total Investments)
      
   
Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007:
      
4,535
  
5.000%, 2/15/37
2/17 at 100.00
A+
4,597,220
1,145
  
5.000%, 2/15/42
2/17 at 100.00
A+
1,158,099
6,305
  
Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health
12/16 at 100.00
AA+
6,314,331
   
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+
88,237
   
System, Series 2008, Trust 3500, 8.530%, 6/15/30 (IF)
      
12,073
  
Total Oklahoma
    
12,157,887
   
Oregon – 0.8% (0.6% of Total Investments)
      
4,700
  
Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds,
11/13 at 100.00
AA–
4,716,027
   
PeaceHealth Project, Series 2001, 5.250%, 11/15/21 – AMBAC Insured
      
   
Pennsylvania – 1.4% (1.0% of Total Investments)
      
500
  
Bucks County Industrial Development Authority, Pennsylvania, Charter School Revenue Bonds,
3/17 at 100.00
BBB
457,265
   
School Lane Charter School, Series 2007A, 5.000%, 3/15/37
      
2,451
  
Northampton County Industrial Development Authority, Pennsylvania, Recovery Revenue Bonds,
10/13 at 100.00
N/R
2,079,755
   
Northampton Generating Project, Senior Lien Series 2013A0 & AE2, 5.000%, 12/01/23
      
5,605
  
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Senior Lien Series 2012A,
12/22 at 100.00
A+
5,688,178
   
5.000%, 12/01/42
      
8,556
  
Total Pennsylvania
    
8,225,198
   
Puerto Rico – 0.4% (0.3% of Total Investments)
      
2,500
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A,
8/17 at 100.00
AA–
2,364,100
   
5.250%, 8/01/57
      
   
Rhode Island – 1.5% (1.1% of Total Investments)
      
   
Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds,
      
   
Series 2002A:
      
25
  
6.000%, 6/01/23
5/14 at 100.00
Baa1
25,022
8,730
  
6.250%, 6/01/42
6/14 at 100.00
BBB–
8,737,682
8,755
  
Total Rhode Island
    
8,762,704
   
South Carolina – 1.7% (1.2% of Total Investments)
      
8,600
  
Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series
12/16 at 100.00
AA
9,601,728
   
2006, 5.000%, 12/01/24
      
   
Tennessee – 0.5% (0.3% of Total Investments)
      
1,595
  
Harpeth Valley Utilities District, Davidson and Williamson Counties, Tennessee, Utilities
9/22 at 100.00
AA
1,435,723
   
Revenue Bonds, Series 2012A, 4.000%, 9/01/42
      
3,680
  
Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue
1/17 at 30.07
A
741,373
   
Refunding Bonds, Covenant Health, Series 2006, 0.000%, 1/01/41
      
415
  
Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds,
9/16 at 100.00
BBB+
413,058
   
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
1,992
2,800
  
5.500%, 11/01/46 (6)
11/17 at 100.00
N/R
6,972
9,290
  
Total Tennessee
    
2,599,118
   
Texas – 18.8% (13.2% of Total Investments)
      
5,445
  
Board of Regents, University of Texas System, Financing System Revenue Bonds, Series 2006F,
2/17 at 100.00
AAA
5,350,638
   
4.250%, 8/15/36 (UB)
      
2,700
  
Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2011,
1/21 at 100.00
Baa2
2,903,418
   
6.250%, 1/01/46
      
4,500
  
Colorado River Municipal Water District, Texas, Water System Revenue Bonds, Series 2011,
1/21 at 100.00
AA–
4,617,540
   
5.000%, 1/01/36
      
5,000
  
Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional Health System, Series 2004A,
9/14 at 100.00
N/R
5,179,350
   
7.000%, 9/01/25
      
1,140
  
Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, Tender Option Bond
10/23 at 100.00
AA
1,009,493
   
Trust 2013-9A, 18.033%, 4/01/53 (WI/DD, Settling 8/01/13) (IF)
      
10,000
  
Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2011D,
11/21 at 100.00
AA
10,272,400
   
5.000%, 11/15/40
      
4,965
  
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment
9/16 at 100.00
A2
5,295,917
   
Facilities Department, Refunding Series 2011B, 5.250%, 9/01/27
      
6,000
  
Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2001B,
No Opt. Call
AA+ (4)
7,277,580
   
5.500%, 12/01/29 – NPFG Insured (ETM)
      
14,200
  
Hutto Independent School District, Williamson County, Texas, General Obligation Bonds, Series
8/16 at 100.00
AAA
13,998,786
   
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+
8,095,838
   
Transmission Services Corporation Project, Refunding & Improvement Series 2010,
      
   
5.000%, 5/15/40
      
1,750
  
Martin County Hospital District, Texas, Combination Limited Tax and Revenue Bonds, Series
4/21 at 100.00
BBB
1,838,270
   
2011A, 7.250%, 4/01/36
      
2,500
  
Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston
No Opt. Call
A
2,606,250
   
Light and Power Company, Series 1997, 5.125%, 11/01/28 – AMBAC Insured (Alternative
      
   
Minimum Tax)
      
3,500
  
North Texas Municipal Water District, Water System Revenue Bonds, Series 2004, 5.000%, 9/01/24
9/14 at 100.00
AAA
3,682,035
   
(Pre-refunded 9/01/14) – NPFG Insured
      
5,935
  
North Texas Tollway Authority, Second Tier System Revenue Refunding Bonds, Series 2008F,
1/18 at 100.00
A3
6,238,635
   
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
2,909,721
9,130
  
0.000%, 9/01/45
9/31 at 100.00
AA
6,682,430
3,500
  
Southwest Higher Education Authority Inc, Texas, Revenue Bonds, Southern Methodist University,
10/20 at 100.00
AA–
3,667,125
   
Series 2010, 5.000%, 10/01/41
      
7,700
  
Tarrant County Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, Texas
2/17 at 100.00
AA–
7,712,166
   
Health Resources, Series 2007A, 5.000%, 2/15/36 (UB)
      
435
  
Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, Series
No Opt. Call
A3
412,706
   
2012, 5.000%, 12/15/32
      
1,665
  
Texas Transportation Commission, Central Texas Turnpike System Revenue Bonds, First Tier
8/22 at 100.00
A–
1,601,847
   
Refunding Series 2012A, 5.000%, 8/15/41
      
   
White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds,
      
   
Series 2006:
      
1,445
  
0.000%, 8/15/37
8/15 at 31.98
AAA
369,862
1,445
  
0.000%, 8/15/40
8/15 at 27.11
AAA
307,944
1,125
  
0.000%, 8/15/44
8/15 at 21.88
AAA
179,033
   
White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds,
      
   
Series 2006:
      
7,665
  
0.000%, 8/15/37 (Pre-refunded 8/15/15)
8/15 at 31.98
N/R (4)
2,413,325
7,665
  
0.000%, 8/15/40 (Pre-refunded 8/15/15)
8/15 at 27.11
N/R (4)
2,045,789
5,985
  
0.000%, 8/15/44 (Pre-refunded 8/15/15)
8/15 at 21.88
N/R (4)
1,288,989
127,765
  
Total Texas
    
107,957,087
   
Utah – 1.1% (0.8% of Total Investments)
      
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E:
      
415
  
5.200%, 1/01/18 (Alternative Minimum Tax)
1/14 at 100.00
AA–
416,145
175
  
5.500%, 1/01/23 (Alternative Minimum Tax)
1/14 at 100.00
Aaa
179,664
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1:
      
685
  
4.950%, 7/01/18 (Alternative Minimum Tax)
1/14 at 100.00
AA–
686,199
280
  
5.300%, 7/01/23 (Alternative Minimum Tax)
1/14 at 100.00
Aaa
286,731
4,935
  
Utah Transit Authority, Sales Tax Revenue and Refunding Bonds, Series 2012, 5.000%, 6/15/42
6/22 at 100.00
A1
5,012,478
6,490
  
Total Utah
    
6,581,217
   
Vermont – 1.6% (1.1% of Total Investments)
      
9,000
  
University of Vermont and State Agricultural College, Revenue Bonds, Series 2005, 5.000%,
10/15 at 100.00
Aa3
9,235,710
   
10/01/35 – NPFG Insured
      
   
Virginia – 0.3% (0.2% of Total Investments)
      
1,000
  
Chesterfield County Health Center Commission, Virginia, Mortgage Revenue Bonds, Lucy Corr
12/15 at 100.00
N/R
704,430
   
Village, Series 2005, 5.375%, 12/01/28
      
1,000
  
Virginia Commonwealth University Health System Authority, General Revenue Bonds, Series 2011,
7/21 at 100.00
AA–
965,470
   
4.750%, 7/01/41
      
2,000
  
Total Virginia
    
1,669,900
   
Washington – 5.2% (3.6% of Total Investments)
      
2,500
  
King County, Washington, Sewer Revenue Bonds, Series 2009, 5.250%, 1/01/42
1/19 at 100.00
AA+
2,665,050
1,820
  
Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Refunding Series 2012A,
8/22 at 100.00
Aa3
1,896,313
   
5.000%, 8/01/30
      
5,205
  
Port of Seattle, Washington, Revenue Bonds, Series 2005A, 5.000%, 3/01/35 – NPFG Insured
3/15 at 100.00
Aa3
5,275,632
10,000
  
Washington Health Care Facilities Authority, Revenue Bonds, Catholic Health, Series 2011A,
2/21 at 100.00
AA–
9,896,800
   
5.000%, 2/01/41
      
3,410
  
Washington Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research
1/21 at 100.00
A
3,494,909
   
Center, Series 2011A, 5.625%, 1/01/35
      
   
Washington State Health Care Facilities Authority, Revenue Bonds, Group Health Cooperative of
      
   
Puget Sound, Series 2001:
      
3,005
  
5.375%, 12/01/17 – AMBAC Insured
12/13 at 100.00
BBB–
3,008,576
2,915
  
5.375%, 12/01/18 – AMBAC Insured
12/13 at 100.00
BBB–
2,918,032
   
Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds,
      
   
Series 2002:
      
205
  
6.500%, 6/01/26
6/14 at 100.00
A3
207,224
335
  
6.625%, 6/01/32
6/14 at 100.00
Baa1
339,077
29,395
  
Total Washington
    
29,701,613
   
Wisconsin – 0.2% (0.1% of Total Investments)
      
1,000
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Franciscan Sisters of
9/17 at 100.00
BBB+
962,550
   
Christian Charity HealthCare Ministry, Series 2007, 5.000%, 9/01/33
      
$ 906,419
  
Total Municipal Bonds (cost $801,248,021)
    
805,273,681
 
 
             
Principal
            
Amount (000)
  
Description (1)
Coupon
Maturity
Ratings (3)
Value
   
Corporate Bonds – 0.0% (0.0% of Total Investments)
        
             
   
Nevada – 0.0% (0.0% of Total Investments)
        
$ 42
  
Las Vegas Monorail Company, Senior Interest Bonds (7), (8)
5.500%
7/15/19
N/R
$ 10,406
12
  
Las Vegas Monorail Company, Senior Interest Bonds (7), (8)
3.000%
7/15/55
N/R
2,403
$ 54
  
Total Corporate Bonds (cost $1,573)
      
12,809
 
Shares
  
Description (1), (9)
      
Value
   
Investment Companies – 0.6% (0.4% of Total Investments)
        
6,266
  
BlackRock MuniHoldings Fund Inc.
      
$ 97,687
26,880
  
Dreyfus Strategic Municipal Fund
      
214,502
131,278
  
DWS Municipal Income Trust
      
1,592,402
43,020
  
Invesco VK Investment Grade Municipal Trust
      
531,727
30,000
  
Invesco VK Municipal Opportunity Trust
      
351,300
43,420
  
PIMCO Municipal Income Fund II
      
491,949
   
Total Investment Companies (cost $3,325,133)
      
3,279,567
   
Total Long-Term Investments (cost $804,574,727)
      
808,566,057
 
Principal
      
Optional Call
    
Amount (000)
  
Description (1)
  
Provisions (2)
Ratings (3)
Value
   
Short-Term Investments – 1.9% (1.3% of Total Investments)
        
             
   
Arizona – 0.9% (0.6% of total Investments)
        
$ 5,000
  
Arizona School Facilities Board, Certificates of Participation, Variable Rate Demand Obligations,
  
No Opt. Call
A-1
$ 5,000,000
   
Tender Option Bond Trust 3199X, 0.110%, 9/01/21 – AGC Insured (10)
        
   
Iowa – 1.0% (0.7% of Total Investments)
        
1,500
  
Iowa State, Special Obligation Bonds, I-Jobs Program, Variable Rate Demand Obligations, Tender
6/19 at 100.00
A-1
1,500,000
   
Option Bond Trust 13B-A REG D, 0.080%, 6/01/25 (10)
        
4,500
  
Iowa State, Special Obligation Bonds, I-Jobs Program, Variable Rate Demand Obligations, Tender
6/19 at 100.00
A-1
4,500,000
   
Option Bond Trust 13B-B REG D, 0.080%, 6/01/26 (10)
        
6,000
  
Total Iowa
      
6,000,000
$ 11,000
  
Total Short-Term Investments (cost $11,000,000)
      
11,000,000
   
Total Investments (cost $815,574,727) – 143.0%
      
819,566,057
   
Floating Rate Obligations – (7.8)%
      
(44,412,000)
   
MuniFund Term Preferred Shares, at Liquidation Value – (12.2)% (11)
      
(70,000,000)
   
Variable Rate MuniFund Term Preferred Shares, at Liquidation Value – (29.5)% (11)
      
(169,200,000)
   
Other Assets Less Liabilities – 6.5%
      
37,082,584
   
Net Assets Applicable to Common Shares – 100%
      
$ 573,036,641
 
 
 
 
 
 
 
Fair Value Measurements
 
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
 
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
 
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
 
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities.
 
The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:
 
         
 
Level 1
Level 2
Level 3
Total
Long-Term Investments:
        
Municipal Bonds
$           —
$805,273,681
$      —
$805,273,681
Corporate Bonds
—
—
12,809
12,809
Investments Companies
3,279,567
—
—
3,279,567
Short-Term Investments:
        
   Municipal Bonds
—
11,000,000
—
11,000,000
Total
$3,279,567
$816,273,681
$12,809
$819,566,057
 
 
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.
 
As of July 31, 2013, the cost of investments was $772,197,987.
 
Gross unrealized appreciation and gross unrealized depreciation of investments as of July 31, 2013, were as follows:
 
   
Gross unrealized:
  
   Appreciation
$  28,425,246
   Depreciation
(25,412,682)
Net unrealized appreciation (depreciation) of investments
$   3,012,564
 
 
     
(1)
  
All percentages shown in the Portfolio of Investments are based on net assets applicable to common
   
shares unless otherwise noted.
(2)
  
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption.
   
There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities
   
may be subject to periodic principal paydowns.
(3)
  
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service,
   
Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s
   
or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by
   
any of these national rating agencies.
(4)
  
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities,
   
which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or
   
agency securities are regarded as having an implied rating equal to the rating of such securities.
(5)
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for
   
investments in inverse floating rate transactions.
(6)
  
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income
   
producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on
   
the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the
   
Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations
   
and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(7)
  
Investment valued at fair value using methods determined in good faith by, or at the discretion of, the
   
Board of Trustees. For fair value measurement disclosure purposes, investment classified as Level 3.
(8)
  
During January 2010, Las Vegas Monorail Company (“Las Vegas Monorail”) filed for federal bankruptcy
   
protection. During March 2012, Las Vegas Monorail emerged from federal bankruptcy with the acceptance
   
of a reorganization plan assigned by the Federal Bankruptcy Court. Under the reorganization plan, the
   
Fund surrendered its Las Vegas Monorail Project Revenue Bonds, First Tier, Series 2000 and in turn received
   
two senior interest corporate bonds: the first with an annual coupon rate of 5.500% maturing on July 15,
   
2019 and the second with an annual coupon rate of 3.000% (5.500% after December 31, 2015) maturing on
   
July 15, 2055. The Fund’s custodian is not accruing income on the Fund’s records for either senior interest
   
corporate bond.
(9)
  
A copy of the most recent financial statements for the investment companies in which the Fund invests
   
can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov.
(10)
  
Investment has a maturity of more than a year, but has variable rate and demand features which qualify
   
it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This
   
rate changes periodically based on market conditions or a specified market index.
(11)
  
MuniFund Term Preferred Shares and Variable Rate MuniFund Term Preferred Shares, at Liquidation Value
   
as a percentage of Total Investments are 8.5% and 20.6%, respectively.
WI/DD
  
Investment, or portion of investment, purchased on a when-issued or delayed delivery basis.
(ETM)
  
Escrowed to maturity.
(IF)
  
Inverse floating rate investment.
(UB)
  
Underlying bond of an inverse floating rate trust reflected as a financing transaction.
 
 
 
 
 
 
Item 2. Controls and Procedures.

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

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

 
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
(Registrant)  Nuveen Dividend Advantage Municipal Fund 3 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date:         September 27, 2013        
 
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 27, 2013        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date:         September 27, 2013