nq2.htm



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

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

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            10/31          
 
Date of reporting period:         1/31/14         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 
 
 
 
 
Item 1. Schedule of Investments
 

 
           
   
Portfolio of Investments (Unaudited)
      
           
   
Nuveen Dividend Advantage Municipal Fund 3 (NZF)
      
   
   January 31, 2014
      
 
 
Principal
    
Optional Call
    
Amount (000)
  
Description (1)
Provisions (2)
Ratings (3)
Value
   
LONG-TERM INVESTMENTS – 140.5% (97.8% of Total Investments)
      
   
MUNICIPAL BONDS – 139.9% (97.4% 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+
$ 3,546,515
   
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
B2
693,800
   
Series 2006A, 5.000%, 6/01/46
      
   
Arizona – 2.3% (1.6% of Total Investments)
      
3,390
  
Arizona State Transportation Board, Highway Revenue Bonds, Series 2006, 13.615%, 7/01/16 (IF)
No Opt. Call
AAA
4,246,687
5,000
  
Phoenix Civic Improvement Corporation, Arizona, Subordinate Excise Tax Revenue Bonds, Civic
7/15 at 100.00
AA
5,193,150
   
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–
3,847,462
   
Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37
      
12,190
  
Total Arizona
    
13,287,299
   
California – 14.0% (9.7% of Total Investments)
      
1,670
  
California Health Facilities Financing Authority, Refunding Revenue Bonds, Stanford Hospital
11/21 at 100.00
AA–
1,796,837
   
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
3,802,186
   
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–
2,923,432
   
11/15/42 (UB)
      
5,355
  
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender
No Opt. Call
AA–
6,651,874
   
Option Bond Trust 3175, 13.788%, 5/15/14 (IF)
      
20
  
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG
6/14 at 100.00
AA
20,028
   
Insured (Alternative Minimum Tax)
      
   
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding
      
   
Bonds, Series 2013A:
      
1,560
  
5.750%, 1/15/46
1/24 at 100.00
BBB–
1,567,816
1,560
  
6.000%, 1/15/49
1/24 at 100.00
BBB–
1,577,410
8,820
  
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement
6/15 at 100.00
AA–
8,757,202
   
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
691,479
11,865
  
5.125%, 6/01/47
6/17 at 100.00
B
8,595,837
7,150
  
Grossmont Healthcare District, California, General Obligation Bonds, Series 2011B, 6.125%, 7/15/40
7/21 at 100.00
Aa2
8,194,115
10,000
  
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2011A,
1/21 at 100.00
AA
10,552,300
   
5.000%, 7/01/41
      
2,750
  
Los Angeles Regional Airports Improvement Corporation, California, Lease Revenue Refunding
1/22 at 100.00
A
2,791,085
   
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+
8,980,800
   
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–
3,673,093
   
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–
210,871
   
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
3,982,177
   
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+
3,593,190
   
Trust 1005, 13.746%, 8/01/41 (IF) (4)
      
10,000
  
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue
No Opt. Call
A
2,630,600
   
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
1,491,210
   
2006C, 0.000%, 9/01/30 – NPFG Insured
      
93,555
  
Total California
    
82,483,542
   
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
2,522,705
   
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
4,712,500
   
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+
5,883,635
3,300
  
5.000%, 11/15/24 – FGIC Insured
11/16 at 100.00
A+
3,607,659
4,335
  
5.000%, 11/15/25 – FGIC Insured
11/16 at 100.00
A+
4,725,497
   
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
900,743
2,000
  
5.250%, 12/01/36 – RAAI Insured
12/17 at 100.00
N/R
1,762,740
1,000
  
Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003,
6/14 at 101.00
N/R (5)
1,036,220
   
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
677,641
   
5.375%, 6/01/31
      
25,385
  
Total Colorado
    
25,829,340
   
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
1,508,250
   
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+
10,156,400
   
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+
1,397,625
   
Tender Option Bond Trust 1606, 11.881%, 10/01/30 – BHAC Insured (IF) (4)
      
11,335
  
Total District of Columbia
    
11,554,025
   
Florida – 3.3% (2.3% 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+
5,502,004
1,950
  
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Refunding
No Opt. Call
A
2,001,597
   
Series 2012A, 5.000%, 10/01/31 (Alternative Minimum Tax)
      
2,490
  
Miami-Dade County, Florida, Subordinate Special Obligation Refunding Bonds Series 2012B,
10/22 at 100.00
A+
2,539,850
   
5.000%, 10/01/37
      
3,345
  
Miami-Dade County, Florida, Transit System Sales Surtax Revenue Bonds, Series 2012,
7/22 at 100.00
AA
3,459,800
   
5.000%, 7/01/42
      
5,455
  
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System
8/17 at 100.00
AA
5,505,022
   
Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) (4)
      
70
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Convertible,
5/17 at 100.00
N/R
51,488
   
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
119,936
   
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
37,770
   
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)
      
10
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Non Performing
5/18 at 100.00
N/R
9,952
   
Parcel Series 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
200,008
   
2012A-1, 6.650%, 5/01/40
      
475
  
Tolomato Community Development District, Florida, Special Assessment Bonds,
5/18 at 100.00
N/R
266,960
   
Southern/Forbearance Parcel Series 2007-2, 6.650%, 5/01/40 (6)
      
19,370
  
Total Florida
    
19,694,388
   
Georgia – 5.6% (3.9% of Total Investments)
      
1,000
  
Atlanta, Georgia, Airport General Revenue Bonds, Series 2004G, 5.000%, 1/01/26 – AGM Insured
1/15 at 100.00
AA–
1,036,920
15,205
  
Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 2010C, 5.250%, 1/01/30
1/21 at 100.00
A1
16,385,820
2,000
  
Atlanta, Georgia, Airport Passenger Facilities Charge Revenue Bonds, Series 2004J, 5.000%,
No Opt. Call
AA–
2,069,720
   
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
3,122,670
   
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
1,629,540
   
Lenbrook Square Project, Series 2006A, 5.125%, 7/01/42
      
8,150
  
Gwinnett County School District, Georgia, General Obligation Bonds, Series 2008, 5.000%, 2/01/36
2/18 at 100.00
AAA
8,869,401
31,355
  
Total Georgia
    
33,114,071
   
Guam – 0.1% (0.1% of Total Investments)
      
810
  
Guam Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2013,
7/23 at 100.00
A–
818,262
   
5.500%, 7/01/43
      
   
Illinois – 15.3% (10.7% of Total Investments)
      
3,200
  
Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Series 2011,
12/21 at 100.00
AA
3,300,256
   
5.250%, 12/01/40
      
4,855
  
Chicago, Illinois, Sales Tax Revenue Bonds, Series 2011A, 5.000%, 1/01/41
1/22 at 100.00
AAA
4,980,842
2,220
  
Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2001A, 5.500%,
No Opt. Call
A+
2,406,280
   
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
3,671,818
   
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 (5)
7,761,525
   
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
11,676,422
2,415
  
Illinois Finance Authority, General Obligation Debt Certificates, Local Government Program –
12/14 at 100.00
Baa2 (5)
2,512,252
   
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
1,020,770
   
5.000%, 6/01/42
      
3,630
  
Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A,
8/17 at 100.00
BBB
3,817,453
   
5.500%, 8/01/37
      
4,125
  
Illinois Finance Authority, Revenue Bonds, The University of Chicago, Series 2012A,
10/21 at 100.00
Aa1
4,209,604
   
5.000%, 10/01/51
      
6,000
  
Illinois State, General Obligation Bonds, Series 2004A, 5.000%, 3/01/28
3/14 at 100.00
A–
6,012,000
560
  
Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Tender Option Bond Trust 4304,
No Opt. Call
AA–
629,014
   
18.345%, 1/01/21 (IF) (4)
      
7,000
  
Lombard Public Facilities Corporation, Illinois, First Tier Conference Center and Hotel
1/16 at 100.00
N/R
3,972,920
   
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
12,215,160
   
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
8,659,800
   
Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/43 – AGM Insured
      
2,790
  
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place
No Opt. Call
AAA
3,160,568
   
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
10,402,700
   
12/01/14) – AGM Insured
      
127,100
  
Total Illinois
    
90,409,384
   
Indiana – 7.6% (5.3% of Total Investments)
      
4,230
  
Indiana Finance Authority, Educational Facilities Revenue Bonds, Tudor Park Foundation, Series
6/15 at 100.00
Aa3
4,333,424
   
2005B, 5.000%, 6/01/24
      
4,310
  
Indiana Finance Authority, Hospital Revenue Bonds, Community Health Network Project, Series
5/23 at 100.00
A
4,283,838
   
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
5,208,041
   
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–
6,886,327
   
2011B, 5.000%, 10/01/41
      
10,925
  
Indiana Health Facility Financing Authority, Revenue Bonds, Community Hospitals of Indiana,
5/15 at 100.00
N/R (5)
11,576,239
   
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+
7,187,390
   
1/01/32 – FGIC Insured
      
830
  
Valparaiso, Indiana, Exempt Facilities Revenue Bonds, Pratt Paper LLC Project, Series 2013,
1/24 at 100.00
N/R
870,438
   
7.000%, 1/01/44 (Alternative Minimum Tax)
      
   
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
2,324,900
2,500
  
5.800%, 9/01/47
9/17 at 100.00
N/R
2,322,150
44,365
  
Total Indiana
    
44,992,747
   
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+
406,586
1,000
  
5.625%, 6/01/46
6/15 at 100.00
B+
777,930
1,525
  
Total Iowa
    
1,184,516
   
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
892,890
1,000
  
5.125%, 5/15/42
5/14 at 103.00
N/R
873,810
2,000
  
Total Kansas
    
1,766,700
   
Kentucky – 2.2% (1.5% of Total Investments)
      
1,000
  
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds,
6/18 at 100.00
AA–
1,014,180
   
Louisville Arena Authority, Inc., Series 2008-A1, 6.000%, 12/01/42 – AGC Insured
      
   
Kentucky Public Transportation Infrastructure Authority, First Tier Toll Revenue Bonds,
      
   
Downtown Crossing Project, Convertible Capital Appreciation Series 2013C:
      
1,335
  
0.000%, 7/01/43
7/31 at 100.00
Baa3
753,314
2,295
  
0.000%, 7/01/46
7/31 at 100.00
Baa3
1,282,217
   
Kentucky Public Transportation Infrastructure Authority, First Tier Toll Revenue Bonds,
      
   
Downtown Crossing Project, Series 2013A:
      
3,080
  
5.750%, 7/01/49
7/23 at 100.00
Baa3
3,180,408
615
  
6.000%, 7/01/53
7/23 at 100.00
Baa3
640,719
5,400
  
Lexington-Fayette Urban County Government Public Facilities Corporation, Kentucky State Lease
6/21 at 100.00
Aa3
5,809,050
   
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
205,093
   
Hospital Corporation, Series 2012A, 4.000%, 10/01/29
      
13,940
  
Total Kentucky
    
12,884,981
   
Louisiana – 5.3% (3.7% of Total Investments)
      
2,000
  
Jefferson Parish Hospital Service District 2, Louisiana, Hospital Revenue Bonds, East
7/21 at 100.00
Baa3
2,101,560
   
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
3,205,200
   
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
10,336,900
   
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
3,744,733
   
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
4,944,274
   
Series 2011, 6.750%, 5/15/41
      
6,855
  
Louisiana Stadium and Exposition District, Revenue Refunding Bonds, Senior Lien Series 2013A,
7/23 at 100.00
A
7,080,941
   
5.000%, 7/01/36
      
29,980
  
Total Louisiana
    
31,413,608
   
Maryland – 0.6% (0.4% of Total Investments)
      
1,000
  
Howard County, Maryland, Retirement Community Revenue Bonds, Vantage House, Series 2007B,
4/17 at 100.00
N/R
827,950
   
5.250%, 4/01/37
      
2,000
  
Maryland Economic Development Corporation, Revenue Bonds, Chesapeake Bay Hyatt Conference
12/16 at 100.00
N/R
999,580
   
Center, Series 2006A, 5.000%, 12/01/31 (6)
      
555
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Ridge
7/17 at 100.00
A–
556,193
   
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
1,419,295
   
Issue, Series 2013A, 4.000%, 8/15/41
      
5,230
  
Total Maryland
    
3,803,018
   
Massachusetts – 4.0% (2.8% of Total Investments)
      
1,375
  
Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007,
4/14 at 102.00
N/R
1,318,405
   
5.250%, 10/01/26
      
1,000
  
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital
7/15 at 100.00
BB+
994,520
   
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
1,678,272
   
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
412,672
   
5.125%, 7/01/41
      
5,000
  
Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series
7/14 at 100.00
N/R
5,001,300
   
2001A, 5.500%, 1/01/18 – AMBAC Insured (Alternative Minimum Tax)
      
3,000
  
Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2005A,
8/15 at 100.00
Aa2 (5)
3,220,320
   
5.000%, 8/15/30 (Pre-refunded 8/15/15)
      
3,465
  
Massachusetts Water Resources Authority, General Revenue Bonds, Series 2007A, 4.500%,
2/17 at 100.00
AA+
3,508,139
   
8/01/46 – AGM Insured (UB) (4)
      
7,165
  
Metropolitan Boston Transit Parking Corporation, Massachusetts, Systemwide Senior Lien Parking
7/21 at 100.00
A+
7,459,553
   
Revenue Bonds, Series 2011, 5.000%, 7/01/41
      
23,005
  
Total Massachusetts
    
23,593,181
   
Michigan – 8.0% (5.6% of Total Investments)
      
15,000
  
Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site
No Opt. Call
Aa2
16,019,250
   
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+
638,885
   
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
1,683,880
   
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–
3,905,959
   
5.500%, 7/01/41
      
5,000
  
Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011,
12/21 at 100.00
Aa2
5,098,650
   
5.000%, 12/01/39
      
13,000
  
Michigan Finance Authority, Unemployment Obligation Assessment Revenue Bonds, Series 2012A,
No Opt. Call
AAA
13,265,590
   
5.000%, 7/01/14
      
2,250
  
Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series
10/21 at 100.00
Aa3
2,410,875
   
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 (5)
668,252
   
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
2,922,787
   
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 (5)
714,261
   
2006A, 5.000%, 12/01/31 (Pre-refunded 12/01/16) (UB)
      
45,670
  
Total Michigan
    
47,328,389
   
Minnesota – 1.4% (1.0% of Total Investments)
      
1,200
  
Cambridge Independent School District 911, Isanti County, Minnesota, General Obligation Bonds,
No Opt. Call
Aa2
1,209,732
   
Refunding Series 2005C, 5.000%, 4/01/14 – NPFG Insured
      
2,120
  
Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily Housing
4/14 at 103.00
Aa1
2,185,890
   
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+
3,528,630
   
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
1,297,024
   
Project, Series 2007-1, 5.000%, 8/01/36
      
7,695
  
Total Minnesota
    
8,221,276
   
Mississippi – 0.9% (0.6% of Total Investments)
      
2,135
  
Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage
5/14 at 100.00
AA+
2,136,495
   
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–
3,067,080
   
Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB)
      
5,135
  
Total Mississippi
    
5,203,575
   
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+
1,497,168
   
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
950,170
   
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
2,729,550
   
Series 2011B, 5.000%, 11/15/37
      
4,995
  
Total Missouri
    
5,176,888
   
Montana – 0.8% (0.6% of Total Investments)
      
5,000
  
Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company, Series
4/14 at 100.00
B+
5,013,200
   
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 City 2,
2/17 at 100.00
AA+
1,555,127
   
Tender Option Bond Trust 11673, 20.138%, 8/01/40 – AMBAC Insured (IF)
      
   
Nevada – 5.6% (3.9% of Total Investments)
      
10,000
  
Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien Series 2010B, 5.750%, 7/01/42
1/20 at 100.00
A+
11,128,300
6,000
  
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran
1/20 at 100.00
A+
6,195,060
   
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 (5)
5,200,600
   
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+
10,496,700
   
Refunding Series 2011C, 5.000%, 6/01/38
      
31,000
  
Total Nevada
    
33,020,660
   
New Jersey – 4.9% (3.4% of Total Investments)
      
2,850
  
New Jersey Economic Development Authority, Cigarette Tax Revenue Bonds, Series 2004, 5.500%,
6/14 at 100.00
Aaa
2,907,114
   
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
4/14 at 100.00
Ba2
200,064
1,125
  
5.500%, 7/01/33
4/14 at 100.00
Ba2
1,125,011
12,970
  
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital
No Opt. Call
A+
4,551,173
   
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–
6,990,800
   
0.000%, 12/15/33 – AGM Insured
      
7,000
  
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2012AA,
No Opt. Call
A+
7,278,670
   
5.000%, 6/15/38
      
7,670
  
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
6/17 at 100.00
B2
5,670,278
   
Series 2007-1A, 4.750%, 6/01/34
      
51,815
  
Total New Jersey
    
28,723,110
   
New York – 8.0% (5.6% of Total Investments)
      
900
  
Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter Schools,
4/17 at 100.00
BB+
814,104
   
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–
1,364,977
3,400
  
0.000%, 7/15/44
No Opt. Call
BBB–
543,796
4,675
  
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General
3/21 at 100.00
AAA
4,927,964
   
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
2,272,536
   
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
4,905,984
   
2/15/47 – NPFG Insured
      
1,000
  
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2003B,
No Opt. Call
A– (5)
1,017,060
   
5.250%, 6/01/14 (ETM)
      
1,200
  
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2011A, 5.000%,
5/21 at 100.00
AA–
1,248,360
   
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–
5,142,100
   
5.000%, 9/01/42
      
750
  
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2011A,
11/21 at 100.00
A
772,125
   
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
8,786,480
   
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+
3,356,531
   
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
8,267,360
   
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
60,266
   
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
3,229,050
585
  
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Refunding
No Opt. Call
A+
645,986
   
Subordinate Lien Series 2013A, 5.000%, 11/15/28
      
48,015
  
Total New York
    
47,354,679
   
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–
1,762,565
   
Bonds, Series 2008, Trust 1149, 15.412%, 7/15/32 (IF) (4)
      
1,200
  
Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care System Revenue Bonds,
1/17 at 100.00
AA–
1,226,568
   
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+ (5)
1,827,193
   
Carolinas Healthcare System, Series 2005A, 4.875%, 1/15/32 (Pre-refunded 1/15/15)
      
4,660
  
Total North Carolina
    
4,816,326
   
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–
681,512
970
  
4.000%, 5/01/33
5/22 at 100.00
AA–
906,145
800
  
5.000%, 5/01/42
5/22 at 100.00
AA–
824,200
   
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–
3,992,599
710
  
5.875%, 6/01/30
6/17 at 100.00
B
572,530
3,705
  
5.750%, 6/01/34
6/17 at 100.00
B
2,885,009
1,670
  
5.875%, 6/01/47
6/17 at 100.00
B
1,333,996
1,915
  
Chagrin Falls Exempt Village School District, Ohio, General Obligation Bonds, Refunding Series
12/14 at 100.00
Aa1 (5)
1,996,751
   
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+
5,986,470
   
5.000%, 11/15/41
      
20,955
  
Total Ohio
    
19,179,212
   
Oklahoma – 2.1% (1.4% 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+
4,609,601
1,145
  
5.000%, 2/15/42
2/17 at 100.00
A+
1,162,209
6,305
  
Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health
12/16 at 100.00
AA+
6,384,506
   
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+
90,017
   
System, Series 2008, Trust 3500, 8.577%, 6/15/30 (IF)
      
12,073
  
Total Oklahoma
    
12,246,333
   
Oregon – 1.1% (0.7% of Total Investments)
      
4,700
  
Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds,
5/14 at 100.00
AA–
4,715,980
   
PeaceHealth Project, Series 2001, 5.250%, 11/15/21 – AMBAC Insured
      
1,435
  
Oregon State Department of Transportation, Highway User Tax Revenue Bonds, Series 2004B,
11/14 at 100.00
AAA
1,492,874
   
5.250%, 11/15/16 (Pre-refunded 11/15/14)
      
6,135
  
Total Oregon
    
6,208,854
   
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
455,905
   
School Lane Charter School, Series 2007A, 5.000%, 3/15/37
      
2,451
  
Northampton County Industrial Development Authority, Pennsylvania, Recovery Revenue Bonds,
4/14 at 100.00
N/R
2,078,088
   
Northampton Generating Project, Senior Lien Series 2013A0 & AE2, 5.000%, 12/01/23
      
32
  
Northampton County Industrial Development Authority, Pennsylvania, Recovery Revenue Bonds,
4/14 at 100.00
N/R
26,842
   
Northampton Generating Project, Senior Lien Taxable Series 2013B, 5.000%, 12/31/23
      
   
(Alternative Minimum Tax)
      
5,605
  
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Senior Lien Series 2012A,
12/22 at 100.00
A+
5,780,268
   
5.000%, 12/01/42
      
8,588
  
Total Pennsylvania
    
8,341,103
   
Puerto Rico – 0.3% (0.2% of Total Investments)
      
60
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series
8/19 at 100.00
A+
45,271
   
2009A, 6.000%, 8/01/42
      
2,500
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A,
8/17 at 100.00
AA–
1,906,350
   
5.250%, 8/01/57
      
2,560
  
Total Puerto Rico
    
1,951,621
   
Rhode Island – 1.5% (1.0% of Total Investments)
      
   
Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds,
      
   
Series 2002A:
      
25
  
6.000%, 6/01/23
4/14 at 100.00
Baa1
25,002
8,730
  
6.250%, 6/01/42
4/14 at 100.00
BBB–
8,590,145
8,755
  
Total Rhode Island
    
8,615,147
   
South Carolina – 2.0% (1.4% of Total Investments)
      
10,600
  
Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series
12/16 at 100.00
AA
11,601,912
   
2006, 5.000%, 12/01/24
      
   
Tennessee – 1.3% (0.9% of Total Investments)
      
4,885
  
Chattanooga Health, Educational and Housing Facility Board, Tennessee, Hospital Revenue Bonds,
1/23 at 100.00
A+
5,003,559
   
Catholic Health Initiatives, Series 2013A, 5.250%, 1/01/45
      
1,595
  
Harpeth Valley Utilities District, Davidson and Williamson Counties, Tennessee, Utilities
9/22 at 100.00
AA
1,589,832
   
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
714,362
   
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+
415,477
   
Wellmont Health System, Series 2006C, 5.250%, 9/01/36
      
10,575
  
Total Tennessee
    
7,723,230
   
Texas – 18.9% (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
5,490,466
   
4.250%, 8/15/36 (UB)
      
2,700
  
Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2011, 6.250%, 1/01/46
1/21 at 100.00
Baa2
2,833,245
4,500
  
Colorado River Municipal Water District, Texas, Water System Revenue Bonds, Series 2011,
1/21 at 100.00
AA–
4,723,650
   
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
5,113,450
   
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+
1,197,285
   
Trust 2013- 9A, 18.365%, 4/01/53 (IF)
      
10,000
  
Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2011D, 5.000%, 11/15/40
11/21 at 100.00
AA
10,604,591
4,965
  
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment
9/16 at 100.00
A2
5,322,579
   
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+ (5)
7,664,580
   
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
14,442,536
   
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+
8,135,360
   
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
1,858,448
   
2011A, 7.250%, 4/01/36
      
2,500
  
Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston
No Opt. Call
A1
2,675,300
   
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
3,599,400
   
(Pre-refunded 9/01/14) – NPFG Insured
      
6,390
  
North Texas Tollway Authority, Second Tier System Revenue Refunding Bonds, Series 2008F,
1/18 at 100.00
A3
6,766,499
   
5.750%, 1/01/38
      
   
North Texas Tollway Authority, Special Projects System Revenue Bonds, Series 2011A:
      
4,370
  
0.000%, 9/01/43
9/31 at 100.00
AA+
3,162,001
9,130
  
0.000%, 9/01/45
9/31 at 100.00
AA+
7,265,471
3,500
  
Southwest Higher Education Authority Inc, Texas, Revenue Bonds, Southern Methodist University,
10/20 at 100.00
AA–
3,887,345
   
Series 2010, 5.000%, 10/01/41
      
7,700
  
Tarrant County Cultural Education Facilities Finance Corporation, Texas Health Resources,
2/17 at 100.00
AA–
7,806,953
   
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
436,831
   
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–
1,669,412
   
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
430,682
1,445
  
0.000%, 8/15/40
8/15 at 27.11
AAA
364,819
1,125
  
0.000%, 8/15/44
8/15 at 21.88
AAA
228,825
   
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 (5)
2,437,087
7,665
  
0.000%, 8/15/40 (Pre-refunded 8/15/15)
8/15 at 27.11
N/R (5)
2,065,947
5,985
  
0.000%, 8/15/44 (Pre-refunded 8/15/15)
8/15 at 21.88
N/R (5)
1,301,678
128,220
  
Total Texas
    
111,484,440
   
Utah – 1.1% (0.8% of Total Investments)
      
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E:
      
345
  
5.200%, 1/01/18 (Alternative Minimum Tax)
7/14 at 100.00
AA–
345,925
160
  
5.500%, 1/01/23 (Alternative Minimum Tax)
7/14 at 100.00
Aaa
163,486
   
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1:
      
540
  
4.950%, 7/01/18 (Alternative Minimum Tax)
7/14 at 100.00
AA–
541,091
215
  
5.300%, 7/01/23 (Alternative Minimum Tax)
7/14 at 100.00
Aaa
219,272
4,935
  
Utah Transit Authority, Sales Tax Revenue and Refunding Bonds, Series 2012, 5.000%, 6/15/42
6/22 at 100.00
A1
5,096,621
6,195
  
Total Utah
    
6,366,395
   
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
9,424,980
   
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
708,460
   
Village, Series 2005, 5.375%, 12/01/28
      
1,000
  
Virginia Commonwealth University Health System Authority, General Revenue Bonds, Series 2011,
7/21 at 100.00
AA–
1,012,750
   
4.750%, 7/01/41
      
2,000
  
Total Virginia
    
1,721,210
   
Washington – 5.0% (3.5% of Total Investments)
      
2,500
  
King County, Washington, Sewer Revenue Bonds, Series 2009, 5.250%, 1/01/42
1/19 at 100.00
AA+
2,756,975
1,820
  
Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Refunding Series 2012A,
8/22 at 100.00
A+
1,976,684
   
5.000%, 8/01/30
      
5,205
  
Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Series 2005A, 5.000%, 3/01/35 –
3/15 at 100.00
A+
5,243,257
   
NPFG Insured
      
10,000
  
Washington Health Care Facilities Authority, Revenue Bonds, Catholic Health, Series 2011A,
2/21 at 100.00
A+
10,082,200
   
5.000%, 2/01/41
      
3,410
  
Washington Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research
1/21 at 100.00
A
3,551,379
   
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
4/14 at 100.00
BBB–
3,009,628
2,915
  
5.375%, 12/01/18 – AMBAC Insured
4/14 at 100.00
BBB–
2,918,790
28,855
  
Total Washington
    
29,538,913
   
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+
1,001,910
   
Christian Charity HealthCare Ministry, Series 2007, 5.000%, 9/01/33
      
$ 907,646
  
Total Municipal Bonds (cost $804,592,593)
    
824,396,117
 
 
             
Principal
            
Amount (000)
  
Description (1)
Coupon
Maturity
Ratings (3)
Value
   
CORPORATE BONDS – 0.0% (0.0% of Total Investments)
        
   
Transportation – 0.0% (0.0% of Total Investments)
        
$ 43
  
Las Vegas Monorail Company, Senior Interest Bonds (7), (8)
5.500%
7/15/19
N/R
$            7,700
12
  
Las Vegas Monorail Company, Senior Interest Bonds (7), (8)
3.000%
7/15/55
N/R
1,607
$ 55
  
Total Corporate Bonds (cost $2,725)
      
9,307
 
Shares
  
Description (1), (9)
      
Value
   
INVESTMENT COMPANIES – 0.6% (0.4% of Total Investments)
        
6,266
  
BlackRock MuniHoldings Fund Inc.
      
$         96,434
26,880
  
Dreyfus Strategic Municipal Fund
      
216,115
131,278
  
DWS Municipal Income Trust
      
1,668,543
43,020
  
Invesco VK Investment Grade Municipal Trust
      
549,365
30,000
  
Invesco VK Municipal Opportunity Trust
      
363,900
43,420
  
PIMCO Municipal Income Fund II
      
509,317
   
Total Investment Companies (cost $3,325,133)
      
3,403,674
   
Total Long-Term Investments (cost $807,920,451)
      
827,809,098
 
Principal
      
Optional Call
    
Amount (000)
  
Description (1)
  
Provisions (2)
Ratings (3)
Value
   
SHORT-TERM INVESTMENTS – 3.2% (2.2% of Total Investments)
        
   
MUNICIPAL BONDS – 3.2% (2.2% 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, 0.090%, 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
No Opt. Call
A–1
1,500,000
   
Option Bond Trust 13B-A REG D, 0.060%, 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, 0.120%, 6/01/26 (10)
        
6,000
  
Total Iowa
      
6,000,000
   
New York – 1.3% (0.9% of Total Investments)
        
7,914
  
Liberty Development Corporation, New York, Goldman Sachs Headquarter Revenue Bonds, Variable
No Opt. Call
VMIG–3
7,914,000
   
Rate Demand Obligations, Tender Option Bond Trust 1251, 0.360%, 10/01/35 (10)
        
$ 18,914
  
Total Short-Term Investments (cost $18,914,000)
      
18,914,000
   
Total Investments (cost $826,834,451) – 143.7%
      
846,723,098
   
Floating Rate Obligations – (7.5)%
      
(44,412,000)
   
MuniFund Term Preferred Shares, at Liquidation Value – (11.9)% (11)
      
(70,000,000)
   
Variable Rate MuniFund Term Preferred Shares, at Liquidation Value – (28.7)% (11)
      
(169,200,000)
   
Other Assets Less Liabilities – 4.4%
      
25,920,038
   
Net Assets Applicable to Common Shares – 100%
      
$ 589,031,136
 
 
 
 
 
 
Fair Value Measurements
 
Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
 
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
 
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
 
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund's fair value measurements as of the end of the reporting period:
         
 
Level 1
Level 2
Level 3
Total
Long-Term Investments:
        
Municipal Bonds
$           —
$824,396,117
$     —
$824,396,117
Corporate Bonds
—
—
9,307
9,307
Investment Companies
3,403,674
—
—
3,403,674
Short-Term Investments:
        
Municipal Bonds
—
18,914,000
—
18,914,000
Total
$3,403,674
$843,310,117
$9,307
$846,723,098
 
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 January 31, 2014, the cost of investments was $783,284,921.
 
Gross unrealized appreciation and gross unrealized depreciation of investments as of January 31, 2014, were as follows:
   
Gross unrealized:
  
   Appreciation
$  39,493,729
   Depreciation
(20,409,442)
Net unrealized appreciation (depreciation) of investments
$ 19,084,287
 
 
     
(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)
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for
   
investments in inverse floating rate transactions.
(5)
  
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.
(6)
  
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income
   
producing security, in the case of a 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 categorized 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 one year, but has variable rate and demand features which qualify
   
it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This
   
rate changes periodically based on market conditions or a specified market index.
(11)
  
MuniFund Term Preferred Shares and Variable Rate MuniFund Term Preferred Shares, at Liquidation Value
   
as a percentage of Total Investments are 8.3% and 20.0%, respectively.
(ETM)
  
Escrowed to maturity.
(IF)
  
Inverse floating rate investment.
(UB)
  
Underlying bond of an inverse floating rate trust reflected as a financing transaction.
 
 
 
 
 
 
Item 2. Controls and Procedures.

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

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

 
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
(Registrant)  Nuveen Dividend Advantage Municipal Fund 3 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date:         April 1, 2014        
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
By (Signature and Title)     /s/ Gifford R. Zimmerman                    
                                                    Gifford R. Zimmerman
                                                  Chief Administrative Officer (principal executive officer) 
 
Date:         April 1, 2014        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date:         April 1, 2014