Investment Company Act file number 811-10345
Nuveen Dividend Advantage Municipal Fund 3
(Exact name of registrant as specified in charter)
333 West Wacker Drive, Chicago, Illinois, 60606
Address of principal executive offices) (Zip code)
Jessica R. Droeger—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: 7/31/04
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, 2004
| Principal |
Optional Call |
Market |
||||
|---|---|---|---|---|---|---|
| Amount (000) |
Description(1) |
Provisions* |
Ratings** |
Value |
||
Alabama - 1.0% |
||||||
|
||||||
| $ | 5,655 |
Alabama State Port Authority, Docks Facilities Revenue Bonds, Series 2001, 5.250%, 10/01/26 |
10/11 at 100.00 |
AAA |
$ 5,726,988 |
|
(Alternative Minimum Tax) - MBIA Insured |
||||||
Alaska - 0.7% |
||||||
|
||||||
4,000 |
Alaska Student Loan Corporation, Student Loan Revenue Bonds, Series 1998A, 5.250%, 7/01/14 |
7/08 at 100.00 |
AAA |
4,150,200 |
||
(Alternative Minimum Tax) - AMBAC Insured |
||||||
Arkansas - 0.9% |
||||||
|
||||||
Sebastian County Health Facilities Board, Arkansas, Hospital Revenue Improvement Bonds, Sparks |
||||||
Regional Medical Center, Series 2001A: |
||||||
1,805 |
5.500%, 11/01/13 |
11/11 at 101.00 |
Baa1 |
1,900,178 |
||
1,900 |
5.500%, 11/01/14 |
11/11 at 101.00 |
Baa1 |
1,977,387 |
||
1,555 |
5.250%, 11/01/21 |
11/11 at 101.00 |
Baa1 |
1,526,668 |
||
California - 10.6% |
||||||
|
||||||
5,000 |
California Infrastructure Economic Development Bank, Revenue Bonds, Kaiser Hospital Assistance LLC, |
8/11 at 102.00 |
A |
5,052,200 |
||
Series 2001A, 5.550%, 8/01/31 |
||||||
18,850 |
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 |
6/07 at 101.00 |
AAA |
19,124,268 |
||
(Alternative Minimum Tax) - MBIA Insured |
||||||
1,500 |
California Statewide Community Development Authority, Senior Lien Revenue Bonds, East Valley |
10/15 at 103.00 |
N/R |
1,627,485 |
||
Tourist Authority, Series 2003B, 9.250%, 10/01/20 |
||||||
5,000 |
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, |
No Opt. Call |
A |
4,938,050 |
||
Series 2004G, 2.300%, 4/01/34 (Mandatory put 5/01/07) |
||||||
Los Angeles Regional Airports Improvement Corporation, California, Lease Revenue Refunding Bonds, |
||||||
LAXFUEL Corporation at Los Angeles International Airport, Series 2001: |
||||||
13,955 |
5.750%, 1/01/16 (Alternative Minimum Tax) - AMBAC Insured |
1/12 at 100.00 |
AAA |
15,338,778 |
||
5,000 |
5.375%, 1/01/21 (Alternative Minimum Tax) - AMBAC Insured |
1/12 at 100.00 |
AAA |
5,128,200 |
||
1,500 |
5.250%, 1/01/23 (Alternative Minimum Tax) - AMBAC Insured |
1/12 at 100.00 |
AAA |
1,508,625 |
||
10,000 |
5.500%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured |
1/12 at 100.00 |
AAA |
10,093,400 |
||
Colorado - 8.4% |
||||||
|
||||||
2,250 |
Canterberry Crossing Metropolitan District II, Parker, Colorado, Limited Tax General Obligation |
12/12 at 100.00 |
N/R |
2,277,540 |
||
Bonds, Series 2002, 7.375%, 12/01/32 |
||||||
1,775 |
Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Weld County |
6/11 at 100.00 |
Ba1 |
1,847,101 |
||
School District 6 - Frontier Academy, Series 2001, 7.375%, 6/01/31 |
||||||
3,250 |
Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Montessori |
5/12 at 102.00 |
N/R |
3,377,238 |
||
Peaks Building Foundation, Series 2002A, 8.000%, 5/01/32 |
||||||
1,700 |
Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Belle Creek |
3/12 at 100.00 |
N/R |
1,712,019 |
||
Education Center, Series 2002A, 7.625%, 3/15/32 |
||||||
5,060 |
Colorado Housing and Finance Authority, Multifamily Project Bonds, Class I, Series 2001A-1, |
10/11 at 100.00 |
AAA |
5,154,015 |
||
5.500%, 4/01/31 (Alternative Minimum Tax) |
||||||
10,100 |
Colorado Springs, Colorado, Utilities System Improvement and Refunding Revenue Bonds, Series |
11/07 at 100.00 |
AA |
10,418,352 |
||
1997A, 5.375%, 11/15/26 |
||||||
2,000 |
Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A, 5.500%, |
11/11 at 100.00 |
AAA |
2,162,900 |
||
11/15/16 (Alternative Minimum Tax) - FGIC Insured |
||||||
Denver City and County, Colorado, Airport System Revenue Bonds, Series 1996A: |
||||||
19,150 |
5.750%, 11/15/16 - MBIA Insured |
11/06 at 101.00 |
AAA |
20,613,443 |
||
1,105 |
5.500%, 11/15/25 - MBIA Insured |
11/06 at 101.00 |
AAA |
1,163,885 |
||
1,000 |
Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003, |
6/14 at 101.00 |
N/R |
1,027,900 |
||
8.000%, 12/01/25 |
||||||
Connecticut - 0.0% |
||||||
|
||||||
220 |
Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2001A-2, |
5/10 at 100.00 |
AAA |
226,296 |
||
5.350%, 11/15/22 (Alternative Minimum Tax) |
||||||
Delaware - 0.6% |
||||||
|
||||||
3,390 |
Delaware State Housing Authority, Multifamily Mortgage Revenue Bonds, Series 2001A, 5.400%, |
7/12 at 100.00 |
Aa3 |
3,474,750 |
||
7/01/24 |
||||||
District of Columbia - 1.1% |
||||||
|
||||||
6,000 |
District of Columbia, Revenue Bonds, The Catholic University of America Issue, Series 1999, |
10/09 at 101.00 |
AAA |
6,317,460 |
||
5.625%, 10/01/29 - AMBAC Insured |
||||||
Florida - 2.1% |
||||||
|
||||||
2,000 |
Dade County, Florida, Water and Sewer System Revenue Bonds, Series 1997, 5.375%, 10/01/16 - |
10/07 at 102.00 |
AAA |
2,171,520 |
||
FGIC Insured |
||||||
2,230 |
Florida, Full Faith and Credit, State Board of Education, Public Education Capital Outlay Refunding |
6/05 at 101.00 |
AA+ |
2,232,966 |
||
Bonds, Series 1995D, 4.750%, 6/01/22 |
||||||
Orange County, Florida, Housing Finance Authority, Multifamily Housing Revenue Bonds, Oak Glen |
||||||
Apartments, Series 2001G: |
||||||
1,105 |
5.400%, 12/01/32 - FSA Insured |
12/11 at 100.00 |
AAA |
1,120,746 |
||
2,195 |
5.450%, 12/01/41 - FSA Insured |
12/11 at 100.00 |
AAA |
2,224,874 |
||
4,175 |
Pace Property Finance Authority Inc., Florida, Utility System Improvement and Refunding Revenue |
9/07 at 102.00 |
AAA |
4,503,656 |
||
Bonds, Series 1997, 5.250%, 9/01/17 - AMBAC Insured |
||||||
Georgia - 2.3% |
||||||
|
||||||
5,000 |
Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 5.625%, 1/01/30 (Alternative |
1/10 at 101.00 |
AAA |
5,171,050 |
||
Minimum Tax) - FGIC Insured |
||||||
2,700 |
Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, Series 2001, 7.900%, 12/01/24 |
12/11 at 101.00 |
N/R |
2,813,940 |
||
3,600 |
Gainesville, Hall County Hospital Authority, Georgia, Revenue Anticipation Certificates, Northeast |
5/11 at 100.00 |
A- |
3,637,224 |
||
Georgia Health Services Inc. Project, Series 2001, 5.500%, 5/15/31 |
||||||
2,000 |
Henry County, Georgia, and Henry County Water and Sewerage Authority, Water and Sewerage Revenue |
2/10 at 101.00 |
AAA |
2,118,440 |
||
Bonds, Series 2000, 5.625%, 2/01/30 - FGIC Insured |
||||||
Hawaii - 0.9% |
||||||
|
||||||
5,125 |
Hawaii, Highway Revenue Bonds, Series 2001, 5.375%, 7/01/21 - FSA Insured |
7/11 at 100.00 |
AAA |
5,476,216 |
||
Illinois - 16.3% |
||||||
|
||||||
3,000 |
Chicago, Illinois, General Obligation Bonds, Neighborhoods Alive 21 Program, Series 2001A, 5.500%, |
1/11 at 100.00 |
AAA |
3,118,920 |
||
1/01/31 - FGIC Insured |
||||||
8,375 |
Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 5.500%, 1/01/19 (Alternative |
1/11 at 101.00 |
AAA |
8,876,830 |
||
Minimum Tax) - FSA Insured |
||||||
4,950 |
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O'Hare International |
1/11 at 101.00 |
AAA |
5,004,054 |
||
Airport, Series 2001A, 5.375%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured |
||||||
1,750 |
Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 5.250%, 1/01/28 - FGIC Insured |
7/08 at 102.00 |
AAA |
1,784,667 |
||
10,800 |
Chicago, Illinois, Sales Tax Revenue Bonds, Series 1999, 5.375%, 1/01/30 (Pre-refunded to 1/01/09) - |
1/09 at 101.00 |
AAA |
11,951,064 |
||
FGIC Insured |
||||||
Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2001A: |
||||||
2,220 |
5.500%, 1/01/16 - MBIA Insured |
No Opt. Call |
AAA |
2,489,219 |
||
8,610 |
5.500%, 1/01/26 (Pre-refunded to 1/01/11) - AMBAC Insured |
1/11 at 100.00 |
AAA |
9,626,238 |
||
10,000 |
Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, 5.000%, 11/01/26 (Pre-refunded to |
11/11 at 100.00 |
AAA |
10,032,400 |
||
11/01/11) - AMBAC Insured |
||||||
1,100 |
Illinois Health Facilities Authority, Revenue Bonds, Condell Medical Center, Series 2000, 6.500%, |
5/10 at 101.00 |
Baa2 |
1,169,993 |
||
5/15/30 |
||||||
15,000 |
Illinois Health Facilities Authority, Revenue Bonds, Loyola University Health System, Series 2001A, |
7/11 at 100.00 |
Baa1 |
15,209,850 |
||
6.125%, 7/01/31 |
||||||
9,000 |
Illinois Health Facilities Authority, Revenue Bonds, Covenant Retirement Communities Inc., Series |
12/11 at 101.00 |
BBB+ |
8,520,120 |
||
2001, 5.875%, 12/01/31 |
||||||
2,000 |
Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Refunding |
No Opt. Call |
AAA |
2,178,920 |
||
Bonds, Series 1998A, 5.500%, 6/15/29 - FGIC Insured |
||||||
16,900 |
Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Bonds, |
12/09 at 101.00 |
AAA |
17,268,758 |
||
Series 1999A, 5.250%, 12/15/28 - FGIC Insured |
||||||
Indiana - 4.8% |
||||||
|
||||||
Clark-Pleasant Community School Building Corporation, Indiana, First Mortgage Bonds, Series 2001: |
||||||
1,255 |
5.000%, 7/15/21 - AMBAC Insured |
1/12 at 100.00 |
AAA |
1,287,555 |
||
1,000 |
5.000%, 1/15/26 - AMBAC Insured |
1/12 at 100.00 |
AAA |
1,002,750 |
||
Evansville-Vanderburgh Public Library Leasing Corporation, Indiana, First Mortgage Bonds, Series |
||||||
2001: |
||||||
2,000 |
5.750%, 7/15/18 - MBIA Insured |
7/12 at 100.00 |
AAA |
2,190,000 |
||
2,750 |
5.125%, 1/15/24 - MBIA Insured |
1/12 at 100.00 |
AAA |
2,793,368 |
||
3,465 |
Gary, Indiana, GNMA/FHA Mortgage Revenue Bonds, Windsor Square Project, Series 2001A, 5.375%, |
11/11 at 102.00 |
AAA |
3,487,245 |
||
10/20/41 (Alternative Minimum Tax) |
||||||
1,250 |
Hamilton Southeastern Cumberland Campus School Building Corporation, Indiana, First Mortgage Bonds, |
1/12 at 100.00 |
AAA |
1,284,413 |
||
Series 2001, 5.125%, 1/15/23 - AMBAC Insured |
||||||
9,500 |
Indiana Educational Facilities Authority, Educational Facilities Revenue Bonds, Butler University |
2/11 at 100.00 |
AAA |
9,945,930 |
||
Project, Series 2001, 5.500%, 2/01/26 - MBIA Insured |
||||||
2,650 |
Indianapolis Airport Authority, Indiana, Specialty Facility Revenue Bonds, United Air Lines Inc., |
11/05 at 102.00 |
N/R |
493,578 |
||
Indianapolis Maintenance Center Project, Series 1995A, 6.500%, 11/15/31 (Alternative Minimum Tax)# |
||||||
3,500 |
University of Southern Indiana, Student Fee Bonds, Series 2001H, 5.000%, 10/01/21 - AMBAC Insured |
10/11 at 100.00 |
Aaa |
3,589,845 |
||
Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, Series 2001: |
||||||
1,150 |
5.625%, 7/15/18 - AMBAC Insured |
1/13 at 101.00 |
AAA |
1,271,555 |
||
1,090 |
5.500%, 7/15/22 - AMBAC Insured |
1/13 at 101.00 |
AAA |
1,177,832 |
||
Iowa - 4.6% |
||||||
|
||||||
2,000 |
Iowa Finance Authority, Health Care Facilities Revenue Bonds, Great River Medical Center, Series |
5/11 at 100.00 |
AAA |
2,016,880 |
||
2001, 5.250%, 5/15/31 - FSA Insured |
||||||
Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B: |
||||||
28,000 |
5.300%, 6/01/25 |
6/11 at 101.00 |
BBB |
22,596,280 |
||
3,950 |
5.600%, 6/01/35 |
6/11 at 101.00 |
BBB |
3,019,933 |
||
Kentucky - 3.2% |
||||||
|
||||||
18,500 |
Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage System |
11/11 at 101.00 |
AAA |
18,896,455 |
||
Revenue Bonds, Series 2001A, 5.125%, 5/15/27 - MBIA Insured |
||||||
Louisiana - 3.8% |
||||||
|
||||||
19,890 |
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series |
5/11 at 101.00 |
BBB |
16,251,323 |
||
2001B, 5.875%, 5/15/39 |
||||||
6,000 |
West Feliciana Parish, Louisiana, Remarketed Pollution Control Revenue Bonds, Gulf States Utilities |
11/04 at 101.00 |
BB+ |
6,126,120 |
||
Company, Series 1985A, 7.500%, 5/01/15 |
||||||
Maine - 1.2% |
||||||
|
||||||
Maine State Housing Authority, Mortgage Purchase Bonds, Series 2001B: |
||||||
4,610 |
5.400%, 11/15/21 (Alternative Minimum Tax) |
11/10 at 100.00 |
AA+ |
4,746,963 |
||
2,430 |
5.500%, 11/15/32 (Alternative Minimum Tax) |
11/10 at 100.00 |
AA+ |
2,470,435 |
||
Maryland - 2.3% |
||||||
|
||||||
Maryland Community Development Administration, Multifamily Housing Insured Mortgage Loans, Series |
||||||
2001B: |
||||||
1,175 |
5.250%, 5/15/21 (Alternative Minimum Tax) |
5/11 at 100.00 |
Aa2 |
1,207,653 |
||
1,570 |
5.250%, 7/01/21 (Alternative Minimum Tax) |
7/11 at 100.00 |
Aa2 |
1,617,163 |
||
10,600 |
Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995, |
9/05 at 102.00 |
N/R |
10,838,606 |
||
7.400%, 9/01/19 (Alternative Minimum Tax) |
||||||
Massachusetts - 0.9% |
||||||
|
||||||
5,000 |
Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc. Project, |
1/11 at 101.00 |
AAA |
5,101,900 |
||
Series 2001A, 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured |
||||||
405 |
Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 71, 5.650%, |
6/09 at 100.00 |
AAA |
410,257 |
||
6/01/31 (Alternative Minimum Tax) - FSA Insured |
||||||
Michigan - 8.7% |
||||||
|
||||||
15,000 |
Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site |
No Opt. Call |
AAA |
17,457,150 |
||
Improvement Bonds, Series 2001A, 6.000%, 5/01/29 - FSA Insured |
||||||
11,000 |
Kent Hospital Finance Authority, Michigan, Revenue Bonds, Spectrum Health, Series 2001A, 5.500%, |
7/11 at 101.00 |
AA |
11,216,150 |
||
1/15/31 |
||||||
3,485 |
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sisters of Mercy |
No Opt. Call |
AAA |
3,836,811 |
||
Health Corporation, Series 1993P, 5.375%, 8/15/14 - MBIA Insured |
||||||
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sparrow Obligated |
||||||
Group, Series 2001: |
||||||
1,400 |
5.500%, 11/15/21 |
11/11 at 101.00 |
A1 |
1,441,664 |
||
2,500 |
5.625%, 11/15/31 |
11/11 at 101.00 |
A1 |
2,527,825 |
||
12,640 |
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, |
11/11 at 100.00 |
AAA |
12,776,259 |
||
Series 2001M, 5.250%, 11/15/31 - MBIA Insured |
||||||
2,395 |
Ypsilanti Community Utilities Authority, County of Washtenaw, Michigan, Sanitary Sewer System |
5/11 at 100.00 |
AAA |
2,413,992 |
||
No. 3 Bonds, Series 2001, 5.100%, 5/01/31 - FGIC Insured |
||||||
Minnesota - 0.4% |
||||||
|
||||||
2,380 |
Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily Housing |
10/11 at 105.00 |
Aaa |
2,413,463 |
||
Revenue Bonds, Rose Apartments Project, Series 2001, 6.350%, 10/20/37 (Alternative Minimum Tax) |
||||||
Mississippi - 1.5% |
||||||
|
||||||
2,155 |
Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage Revenue |
5/09 at 103.00 |
AAA |
2,190,127 |
||
Refunding Bonds, Aldersgate Retirement Community Inc. Project, Series 1999A, 5.450%, 5/20/34 |
||||||
6,420 |
Mississippi, Highway Revenue Bonds, Series 1999, 5.250%, 6/01/05 |
No Opt. Call |
AAA |
6,621,588 |
||
Missouri - 2.6% |
||||||
|
||||||
2,000 |
Fenton, Missouri, Tax Increment Refunding and Improvement Bonds, Gravois Bluffs Project, Series |
10/12 at 100.00 |
N/R |
2,038,360 |
||
2002, 6.125%, 10/01/21 |
||||||
Missouri Development Finance Board, Cultural Facilities Revenue Bonds, Nelson Gallery Foundation, |
||||||
Series 2001A: |
||||||
3,335 |
5.250%, 12/01/19 - MBIA Insured |
12/11 at 100.00 |
AAA |
3,564,348 |
||
3,510 |
5.250%, 12/01/20 - MBIA Insured |
12/11 at 100.00 |
AAA |
3,732,674 |
||
3,695 |
5.250%, 12/01/21 - MBIA Insured |
12/11 at 100.00 |
AAA |
3,911,490 |
||
2,040 |
5.250%, 12/01/22 - MBIA Insured |
12/11 at 100.00 |
AAA |
2,131,331 |
||
Montana - 0.9% |
||||||
|
||||||
5,000 |
Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company Project, |
7/10 at 101.00 |
B1 |
5,154,300 |
||
Series 2000, 8.000%, 7/01/20 (Alternative Minimum Tax) |
||||||
Nebraska - 1.3% |
||||||
|
||||||
Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2001D: |
||||||
3,365 |
5.250%, 9/01/21 (Alternative Minimum Tax) |
9/11 at 100.00 |
AAA |
3,441,722 |
||
4,545 |
5.375%, 9/01/32 (Alternative Minimum Tax) |
9/11 at 100.00 |
AAA |
4,586,041 |
||
Nevada - 7.7% |
||||||
|
||||||
35,000 |
Clark County, Nevada, General Obligation Limited Tax Bond Bank Bonds, Series 2000, 5.500%, 7/01/30 - |
7/10 at 100.00 |
AAA |
36,520,750 |
||
MBIA Insured |
||||||
4,000 |
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail |
1/10 at 102.00 |
N/R |
3,882,480 |
||
Project, Second Tier, Series 2000, 7.375%, 1/01/40 |
||||||
1,000 |
Nevada Housing Division, Single Family Mortgage Senior Bonds, Series 1998A-1, 5.300%, 4/01/18 |
4/08 at 101.50 |
Aaa |
1,030,440 |
||
(Alternative Minimum Tax) |
||||||
4,290 |
University of Nevada, Universities Revenue Bonds, Community College System Project, Series 2001A, |
1/12 at 100.00 |
AAA |
4,405,101 |
||
5.250%, 7/01/26 - FGIC Insured |
||||||
New Hampshire - 0.4% |
||||||
|
||||||
2,000 |
New Hampshire Health and Education Authority, Hospital Revenue Bonds, Concord Hospital Issue, |
10/11 at 101.00 |
Aaa |
2,128,220 |
||
Series 2001, 5.500%, 10/01/21 - FSA Insured |
||||||
New Jersey - 2.5% |
||||||
|
||||||
10,000 |
New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water Company, |
11/12 at 101.00 |
Aaa |
10,107,300 |
||
Series 2002A, 5.250%, 11/01/32 (Alternative Minimum Tax) - AMBAC Insured |
||||||
4,125 |
New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration |
No Opt. Call |
AAA |
4,613,359 |
||
Grants, Series 2002A, 5.500%, 9/15/13 - AMBAC Insured |
||||||
New York - 5.3% |
||||||
|
||||||
1,780 |
East Rochester Housing Authority, New York, GNMA Secured Revenue Bonds, Gates Senior Housing Inc. |
10/11 at 101.00 |
AAA |
1,822,364 |
||
Project, Series 2001, 5.300%, 4/20/31 |
||||||
5,350 |
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2001A, 5.000%, |
11/11 at 100.00 |
AAA |
5,357,704 |
||
11/15/31 - FGIC Insured |
||||||
4,155 |
Monroe County Airport Authority, New York, Greater Rochester International Airport Revenue |
No Opt. Call |
AAA |
4,621,607 |
||
Refunding Bonds, Series 1999, 5.750%, 1/01/13 (Alternative Minimum Tax) - MBIA Insured |
||||||
2,500 |
New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20 - |
8/12 at 100.00 |
AAA |
2,761,650 |
||
MBIA Insured |
||||||
New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue Bonds, |
||||||
Fiscal Series 2001A: |
||||||
8,610 |
5.500%, 6/15/33 - MBIA Insured |
6/10 at 101.00 |
AAA |
8,992,198 |
||
5,710 |
5.500%, 6/15/33 - FGIC Insured |
6/10 at 101.00 |
AAA |
5,963,467 |
||
2,000 |
New York Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State |
6/11 at 100.00 |
AA- |
2,146,240 |
||
Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16 |
||||||
North Carolina - 0.3% |
||||||
|
||||||
1,800 |
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.500%, |
No Opt. Call |
BBB+ |
1,959,786 |
||
1/01/13 |
||||||
Ohio - 3.0% |
||||||
|
||||||
6,000 |
Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds, GNMA Mortgage-Backed |
3/08 at 101.50 |
AAA |
6,162,060 |
||
Securities Program, Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum Tax) - FSA Insured |
||||||
7,900 |
Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, Bay Shore Power, Series |
9/09 at 102.00 |
N/R |
7,945,899 |
||
1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) |
||||||
Portage County, Ohio, General Obligation Bonds, Series 2001: |
||||||
1,870 |
5.000%, 12/01/21 - FGIC Insured |
12/11 at 100.00 |
AAA |
1,930,700 |
||
1,775 |
5.000%, 12/01/23 - FGIC Insured |
12/11 at 100.00 |
AAA |
1,812,577 |
||
Oklahoma - 0.6% |
||||||
|
||||||
Oklahoma Development Finance Authority, Revenue Refunding Bonds, Hillcrest Healthcare System, |
||||||
Series 1999A: |
||||||
1,000 |
5.125%, 8/15/10 |
8/09 at 101.00 |
B1 |
987,470 |
||
2,500 |
5.625%, 8/15/29 |
8/09 at 101.00 |
B1 |
2,529,300 |
||
Oregon - 2.5% |
||||||
|
||||||
4,700 |
Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds, Peacehealth |
11/11 at 101.00 |
AAA |
4,898,434 |
||
Issue, Series 2001, 5.250%, 11/15/21 - AMBAC Insured |
||||||
10,000 |
Oregon, Housing and Community Services Department, Multifamily Housing Revenue Bonds, |
7/10 at 100.00 |
Aa2 |
10,258,400 |
||
Series 2000A, 6.050%, 7/01/42 (Alternative Minimum Tax) |
||||||
Pennsylvania - 1.9% |
||||||
|
||||||
Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, West Penn Allegheny |
||||||
Health System, Series 2000B: |
||||||
2,000 |
9.250%, 11/15/22 |
11/10 at 102.00 |
B |
2,244,260 |
||
2,000 |
9.250%, 11/15/30 |
11/10 at 102.00 |
B |
2,244,260 |
||
3,500 |
Pennsylvania Economic Development Financing Authority, Resource Recovery Revenue Bonds, Northampton |
1/05 at 101.00 |
BBB- |
3,528,875 |
||
Generating Project, Senior Lien, Series 1994A, 6.600%, 1/01/19 (Alternative Minimum Tax) |
||||||
3,205 |
Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002B, 5.625%, |
8/12 at 100.00 |
AAA |
3,516,109 |
||
8/01/16 - FGIC Insured |
||||||
South Carolina - 1.7% |
||||||
|
||||||
2,185 |
Greenville County, South Carolina, Special Source Revenue Bonds, Road Improvement Project, |
4/11 at 101.00 |
AAA |
2,343,413 |
||
Series 2001, 5.500%, 4/01/21 - AMBAC Insured |
||||||
6,850 |
South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series 2001A, 5.500%, 10/01/22 |
10/11 at 100.00 |
Aaa |
7,738,582 |
||
(Pre-refunded to 10/01/11) - AMBAC Insured |
||||||
Tennessee - 1.6% |
||||||
|
||||||
5,210 |
Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue Bonds, Series 2001A, 5.500%, |
3/11 at 100.00 |
AAA |
5,577,722 |
||
3/01/14 (Alternative Minimum Tax) - FSA Insured |
||||||
2,025 |
Tennessee Housing Development Agency, Homeownership Program Bonds, Series 1998-2, 5.350%, 7/01/23 |
1/09 at 101.00 |
AA |
2,065,217 |
||
(Alternative Minimum Tax) |
||||||
1,970 |
Tennessee Housing Development Agency, Homeownership Program Bonds, Series 2001-3A, 5.200%, |
7/11 at 100.00 |
AA |
2,008,533 |
||
7/01/22 (Alternative Minimum Tax) |
||||||
Texas - 17.8% |
||||||
|
||||||
1,125 |
Brushy Creek Municipal Utility District, Williamson County, Texas, Combination Unlimited Tax Revenue |
6/09 at 100.00 |
Aaa |
1,135,609 |
||
Refunding Bonds, Series 2001, 5.125%, 6/01/26 - FSA Insured |
||||||
3,850 |
Dallas-Fort Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds, |
11/11 at 100.00 |
AAA |
3,929,657 |
||
Series 2001A, 5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured |
||||||
Frisco, Texas, Collins and Denton Counties, General Obligation Bonds, Series 2001: |
||||||
1,910 |
5.000%, 2/15/20 - FGIC Insured |
2/11 at 100.00 |
AAA |
1,967,930 |
||
2,005 |
5.000%, 2/15/21 - FGIC Insured |
2/11 at 100.00 |
AAA |
2,050,393 |
||
4,040 |
Harris County, Texas, Tax and Revenue Certificates of Obligation, Series 2001, 5.000%, 8/15/27 |
8/11 at 100.00 |
AA+ |
4,050,140 |
||
7,000 |
Houston, Texas, Airport System Subordinate Lien Revenue Bonds, Series 1998B, 5.250%, 7/01/14 |
7/08 at 101.00 |
AAA |
7,337,050 |
||
(Alternative Minimum Tax) - FGIC Insured |
||||||
Houston, Texas, Airport System Subordinate Lien Revenue Refunding Bonds, Series 2001A: |
||||||
2,525 |
5.500%, 7/01/13 (Alternative Minimum Tax) - FGIC Insured |
1/12 at 100.00 |
AAA |
2,724,778 |
||
2,905 |
5.500%, 7/01/14 (Alternative Minimum Tax) - FGIC Insured |
1/12 at 100.00 |
AAA |
3,150,240 |
||
6,000 |
Houston, Texas, Water and Sewer System, Junior Lien Revenue Refunding Bonds, Series 2001B, 5.500%, |
No Opt. Call |
AAA |
6,505,020 |
||
12/01/29 - MBIA Insured |
||||||
Jefferson County, Texas, Health Facilities Development Corporation, FHA-Insured Mortgage Revenue |
||||||
Bonds, Baptist Hospital of Southeast Texas, Series 2001: |
||||||
8,500 |
5.400%, 8/15/31 - AMBAC Insured |
8/11 at 100.00 |
AAA |
8,670,170 |
||
8,500 |
5.500%, 8/15/41 - AMBAC Insured |
8/11 at 100.00 |
AAA |
8,688,700 |
||
10,700 |
Laredo Independent School District, Webb County, Texas, General Obligation Refunding Bonds, Series |
8/11 at 100.00 |
AAA |
10,784,851 |
||
2001, 5.000%, 8/01/25 |
||||||
2,500 |
Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston |
No Opt. Call |
AAA |
2,511,225 |
||
Light and Power Company, Series 1997, 5.125%, 11/01/28 (Alternative Minimum Tax) - AMBAC Insured |
||||||
1,540 |
Medina Valley Independent School District, Medina County, Texas, General Obligation Bonds, Series |
2/11 at 100.00 |
Aaa |
1,576,313 |
||
2001, 5.250%, 2/15/26 |
||||||
5,430 |
Mineral Wells Independent School District, Pale Pinto and Parker Counties, Texas, Unlimited School |
2/08 at 100.00 |
Aaa |
5,432,498 |
||
Tax Building and Refunding Bonds, Series 1998, 4.750%, 2/15/22 |
||||||
3,000 |
North Central Texas Health Facilities Development Corporation, Revenue Bonds, Texas Health |
2/08 at 102.00 |
AAA |
3,055,260 |
||
Resources System, Series 1997B, 5.375%, 2/15/26 - MBIA Insured |
||||||
3,045 |
Port of Houston Authority, Harris County, Texas, General Obligation Port Improvement Bonds, |
10/11 at 100.00 |
AAA |
3,268,199 |
||
Series 2001B, 5.500%, 10/01/17 (Alternative Minimum Tax) - FGIC Insured |
||||||
11,985 |
Texas Department of Housing and Community Affairs, Residential Mortgage Revenue Bonds, Series |
7/11 at 100.00 |
AAA |
12,089,869 |
||
2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) |
||||||
15,700 |
Texas Water Development Board, State Revolving Fund Revenue Bonds, Senior Lien, Series 1996B, |
1/07 at 100.00 |
AAA |
16,511,376 |
||
5.125%, 7/15/18 |
||||||
Utah - 1.1% |
||||||
|
||||||
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E: |
||||||
2,235 |
5.200%, 1/01/18 (Alternative Minimum Tax) |
7/11 at 100.00 |
AA- |
2,298,541 |
||
695 |
5.500%, 1/01/23 (Alternative Minimum Tax) |
7/11 at 100.00 |
Aa2 |
706,752 |
||
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1: |
||||||
2,765 |
4.950%, 7/01/18 (Alternative Minimum Tax) |
7/11 at 100.00 |
Aa2 |
2,846,789 |
||
690 |
5.300%, 7/01/23 (Alternative Minimum Tax) |
7/11 at 100.00 |
AA- |
707,836 |
||
Virginia - 1.4% |
||||||
|
||||||
7,000 |
Pocahontas Parkway Association, Virginia, Route 895 Connector Toll Road Senior Lien Revenue Bonds, |
8/08 at 77.58 |
BB |
3,544,450 |
||
Series 1998B, 0.000%, 8/15/13 |
||||||
4,945 |
Virginia Housing Development Authority, Commonwealth Mortgage Bonds, Series 2001J-1, 5.200%, |
7/11 at 100.00 |
AAA |
5,061,257 |
||
7/01/19 - MBIA Insured |
||||||
Washington - 16.4% |
||||||
|
||||||
Bellingham Housing Authority, Washington, Housing Revenue Bonds, Varsity Village Project, Series |
||||||
2001A: |
||||||
1,000 |
5.500%, 12/01/27 - MBIA Insured |
12/11 at 100.00 |
Aaa |
1,045,620 |
||
2,000 |
5.600%, 12/01/36 - MBIA Insured |
12/11 at 100.00 |
Aaa |
2,106,540 |
||
2,090 |
Public Utility District No. 1 of Benton County, Washington, Electric Revenue Refunding Bonds, |
11/11 at 100.00 |
AAA |
2,318,500 |
||
Series 2001A, 5.625%, 11/01/15 - FSA Insured |
||||||
1,500 |
Public Utility District No. 1 of Grays Harbor County, Washington, Electric Revenue Bonds, Series |
1/11 at 100.00 |
AAA |
1,542,195 |
||
2001, 5.125%, 1/01/22 - AMBAC Insured |
||||||
2,475 |
Public Utility District No. 1 of Klickitat County, Washington, Electric Revenue Bonds, Series |
12/11 at 100.00 |
AAA |
2,480,099 |
||
2001B, 5.000%, 12/01/26 - AMBAC Insured |
||||||
12,955 |
Port of Seattle, Washington, Passenger Facility Charge Revenue Bonds, Series 1998B, 5.300%, |
12/08 at 101.00 |
AAA |
13,713,904 |
||
12/01/16 (Alternative Minimum Tax) - AMBAC Insured |
||||||
Port of Seattle, Washington, Revenue Bonds, Series 2001B: |
||||||
2,535 |
5.625%, 4/01/18 (Alternative Minimum Tax) - FGIC Insured |
10/11 at 100.00 |
AAA |
2,733,541 |
||
16,000 |
5.100%, 4/01/24 (Alternative Minimum Tax) - FGIC Insured |
10/08 at 100.00 |
AAA |
16,018,400 |
||
5,680 |
Seattle, Washington, Municipal Light and Power Revenue Refunding and Improvement Bonds, Series |
3/11 at 100.00 |
AAA |
6,179,102 |
||
2001, 5.500%, 3/01/18 - FSA Insured |
||||||
4,530 |
Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, Series 2001, 5.250%, 12/01/21 - |
12/11 at 100.00 |
AAA |
4,746,353 |
||
AMBAC Insured |
||||||
2,250 |
Washington, Certificates of Participation, Washington State Convention and Trade Center, Series |
7/09 at 100.00 |
AAA |
2,433,128 |
||
1999, 5.250%, 7/01/14 - MBIA Insured |
||||||
Washington State Healthcare Facilities Authority, Revenue Bonds, Group Health Cooperative of Puget |
||||||
Sound, Series 2001: |
||||||
3,005 |
5.375%, 12/01/17 - AMBAC Insured |
12/11 at 101.00 |
AAA |
3,218,265 |
||
2,915 |
5.375%, 12/01/18 - AMBAC Insured |
12/11 at 101.00 |
AAA |
3,109,256 |
||
3,720 |
Washington State Healthcare Facilities Authority, Revenue Bonds, Children's Hospital and Regional |
10/11 at 100.00 |
Aaa |
3,954,360 |
||
Medical Center, Series 2001, 5.375%, 10/01/18 - AMBAC Insured |
||||||
Washington State Healthcare Facilities Authority, Revenue Bonds, Good Samaritan Hospital, Series |
||||||
2001: |
||||||
5,480 |
5.500%, 10/01/21 - RAAI Insured |
10/11 at 101.00 |
AA |
5,740,081 |
||
25,435 |
5.625%, 10/01/31 - RAAI Insured |
10/11 at 101.00 |
AA |
26,333,364 |
||
Wisconsin - 5.2% |
||||||
|
||||||
Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, Series 2001: |
||||||
3,705 |
5.375%, 1/01/20 - FGIC Insured |
1/12 at 100.00 |
Aaa |
3,961,645 |
||
1,850 |
5.000%, 1/01/21 - FGIC Insured |
1/12 at 100.00 |
Aaa |
1,905,963 |
||
1,735 |
Evansville Community School District, Dane, Green and Rock Counties, Wisconsin, General Obligation |
4/11 at 100.00 |
AAA |
1,889,745 |
||
Refunding Bonds, Series 2001, 5.500%, 4/01/20 - FGIC Insured |
||||||
12,250 |
La Crosse, Wisconsin, Pollution Control Refunding Revenue Bonds, Dairyland Power |
12/08 at 102.00 |
AAA |
13,312,933 |
||
Cooperative Project, Series 1997B, 5.550%, 2/01/15 - AMBAC Insured |
||||||
3,180 |
Wisconsin, Clean Water Revenue Bonds, Series 1999-1, 5.500%, 6/01/17 |
6/09 at 100.00 |
AA+ |
3,459,808 |
||
4,000 |
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Froedtert and Community |
10/11 at 101.00 |
A+ |
3,977,440 |
||
Health Obligated Group, Series 2001, 5.375%, 10/01/30 |
||||||
2,500 |
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic, Series |
2/12 at 100.00 |
BBB+ |
2,527,820 |
||
2001B, 6.000%, 2/15/25 |
||||||
| $ | 877,550 |
Total Long-Term Investments (cost $878,584,401) - 150.5% |
895,263,767 |
|||
Short-Term Investments - 0.5% |
||||||
|
||||||
3,000 |
New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue Bonds, |
A-1+ |
3,000,000 |
|||
Variable Rate Demand Obligations, Fiscal Series 1993C, 1.070%, 6/15/22 - FGIC Insured† |
||||||
| $ | 3,000 |
Total Short-Term Investments (cost $3,000,000) |
3,000,000 |
|||
Total Investments (cost $878,664,147) - 151.0% |
898,263,767 |
|||||
Other Assets Less Liabilities - 1.4% |
8,649,282 |
|||||
Preferred Shares, at Liquidation Value - (52.4)% |
(312,000,000) |
|||||
Net Assets Applicable to Common Shares - 100% |
$594,913,049 |
|||||
(1) |
All percentages shown in the Portfolio of Investments are based on net assets applicable to |
||
Common shares. |
|||
* |
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. |
|||
** |
Ratings: Using the higher of Standard & Poor's or Moody's rating. |
||
# |
On December 9, 2002, UAL Corporation, the holding company of United Air Lines, Inc. filed for federal |
||
bankruptcy protection. The Adviser determined that it was likely United would not remain current on their |
|||
interest payment obligations with respect to these bonds and thus has stopped accruing interest. |
|||
N/R |
Investment is not rated. |
||
† |
Security has a maturity of more than one year, but has variable rate and demand features |
||
which qualify it as a short-term security. The rate disclosed is that currently in effect. |
|||
This rate changes periodically based on market conditions or a specified market index. |
|||
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 income |
|||
on taxable market discount securities and timing differences in recognizing certain gains and losses on |
|||
security transactions. |
|||
At July 31, 2004, the cost of investments was $881,584,397. |
|||
Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 2004 were as follows: |
|||
Gross unrealized: |
|||
Appreciation |
$ 27,580,548 |
||
Depreciation |
(10,901,178) |
||
Net unrealized appreciation of investments |
$ 16,679,370 |
||
Item 2. Controls and Procedures.
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 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.
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/ Jessica R. Droeger--Vice President and Secretary
Date 09/29/04
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--Chief Administrative Officer (Principal Executive Officer)
Date 09/29/04
By (Signature and Title)* /s/ Stephen D. Foy--Vice President and Controller (Principal Financial Officer)
Date 09/29/04
* Print the name and title of each signing officer under his or her signature.