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:         1/31/09         

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, 2009
Principal				Optional Call
Amount (000)		Description (1)		Provisions (2)		Ratings (3)		Value
		Municipal Bonds – 157.0% (99.8% of Total Investments)
		Alabama – 1.8% (1.1% of Total Investments)
$          3,500		Alabama Special Care Facilities Financing Authority, Revenue Bonds, Ascension Health, Series		11/16 at 100.00		Aa1	$	3,040,030
		2006, 5.000%, 11/15/36 (UB)
5,655		Alabama State Port Authority, Revenue Bonds, State Docks Department Facilities, Series 2001,		10/11 at 100.00		AA (4)		6,260,311
		5.250%, 10/01/26 (Pre-refunded 10/01/11) – AMBAC Insured (Alternative Minimum Tax)
9,155		Total Alabama						9,300,341
		Alaska – 0.1% (0.1% of Total Investments)
1,000		Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds,		6/14 at 100.00		Baa3		521,620
		Series 2006A, 5.000%, 6/01/46
		Arizona – 0.9% (0.6% of Total Investments)
3,390		Arizona State Transportation Board, Highway Revenue Bonds, Series 2006, Trust 3151, 13.019%,		7/18 at 100.00		AAA		3,333,997
		7/01/33 (IF)
2,200		Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Series 2007,		No Opt. Call		A		1,436,138
		5.000%, 12/01/37
5,590		Total Arizona						4,770,135
		Arkansas – 0.6% (0.4% of Total Investments)
		Sebastian County Health Facilities Board, Arkansas, Hospital Revenue Improvement Bonds, Sparks
		Regional Medical Center, Series 2001A:
1,805		5.500%, 11/01/13		11/11 at 101.00		Caa1		1,585,350
1,900		5.500%, 11/01/14		11/11 at 101.00		Caa1		1,611,808
3,705		Total Arkansas						3,197,158
		California – 12.9% (8.2% of Total Investments)
		California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist
		Health System/West, Series 2003A:
855		5.000%, 3/01/28		3/13 at 100.00		A		724,536
140		5.000%, 3/01/33		3/13 at 100.00		A		111,944
950		California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Tender Option		11/16 at 100.00		AA–		750,277
		Bond Trust 3175, 13.820%, 11/15/42 (IF)
5,000		California Infrastructure Economic Development Bank, Revenue Bonds, Kaiser Hospital Assistance		8/11 at 102.00		A+		4,521,600
		LLC, Series 2001A, 5.550%, 8/01/31
5,355		California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender		5/18 at 100.00		AA–		4,455,677
		Option Bond Trust 3175, 13.377%, 11/15/48 (IF)
18,850		California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – MBIA		6/09 at 100.00		AA		17,805,898
		Insured (Alternative Minimum Tax)
11,865		Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement		6/17 at 100.00		BBB		6,381,472
		Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47
		Los Angeles Regional Airports Improvement Corporation, California, Lease Revenue Refunding
		Bonds, LAXFUEL Corporation at Los Angeles International Airport, Series 2001:
13,955		5.750%, 1/01/16 – AMBAC Insured (Alternative Minimum Tax)		1/12 at 100.00		A		14,434,354
5,000		5.375%, 1/01/21 – AMBAC Insured (Alternative Minimum Tax)		1/12 at 100.00		A		4,785,550
1,500		5.250%, 1/01/23 – AMBAC Insured (Alternative Minimum Tax)		1/12 at 100.00		A		1,367,025
10,000		5.500%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax)		1/12 at 100.00		A		8,656,200
10,000		San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue		No Opt. Call		AA		1,250,100
		Refunding Bonds, Series 1997A, 0.000%, 1/15/35 – MBIA Insured
3,000		San Mateo County Community College District, California, General Obligation Bonds, Series		No Opt. Call		Aa1		813,330
		2006C, 0.000%, 9/01/30 – MBIA Insured
86,470		Total California						66,057,963
		Colorado – 5.8% (3.7% of Total Investments)
2,250		Canterberry Crossing Metropolitan District II, Parker, Colorado, Limited Tax General		12/12 at 100.00		N/R		2,659,140
		Obligation Bonds, Series 2002, 7.375%, 12/01/32
1,575		Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Belle		3/13 at 100.00		N/R (4)		1,893,008
		Creek Education Center, Series 2002A, 7.625%, 3/15/32 (Pre-refunded 3/15/13)
3,160		Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds,		3/10 at 102.00		N/R (4)		3,431,160
		Montessori Peaks Building Foundation, Series 2002A, 8.000%, 5/01/32 (Pre-refunded 3/01/10)
1,775		Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Weld		6/11 at 100.00		Ba1 (4)		2,018,086
		County School District 6 – Frontier Academy, Series 2001, 7.375%, 6/01/31
		(Pre-refunded 6/01/11)
3,465		Colorado Educational and Cultural Facilities Authority, Revenue Bonds, Montessori Peaks		5/16 at 102.00		N/R		2,330,906
		Academy, Series 2006, 5.400%, 5/01/26
3,380		Colorado Housing Finance Authority, Multifamily Project Bonds, Class I, Series 2001A-1,		10/11 at 100.00		AAA		3,138,837
		5.500%, 4/01/31 (Alternative Minimum Tax)
5,000		Compark Business Campus Metropolitan District, Colorado, General Obligation Limited Tax Bonds,		12/17 at 100.00		BBB+		4,034,850
		Series 2007, 5.600%, 12/01/34 – RAAI Insured
3,300		Denver City and County, Colorado, Airport Revenue Bonds, Series 2006, 5.000%, 11/15/24 –		11/16 at 100.00		AA		3,333,693
		FGIC Insured
2,000		Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A,		11/11 at 100.00		AA		2,048,140
		5.500%, 11/15/16 – FGIC Insured (Alternative Minimum Tax)
		Denver, Colorado, Airport Revenue Bonds, Trust 2365:
1,340		12.736%, 11/15/23 – FGIC Insured (IF)		11/16 at 100.00		AA–		1,367,095
1,085		12.728%, 11/15/25 – FGIC Insured (IF)		11/16 at 100.00		AA–		1,087,083
2,000		Maher Ranch Metropolitan District 4, Colorado, General Obligation Limited Tax Bonds, Series		12/17 at 100.00		A3		1,393,880
		2007, 5.250%, 12/01/36 – RAAI Insured
1,000		Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003,		6/14 at 101.00		N/R		848,820
		8.000%, 12/01/25
31,330		Total Colorado						29,584,698
		Delaware – 0.3% (0.2% of Total Investments)
1,595		Delaware Housing Authority, Multifamily Mortgage Revenue Bonds, Series 2001A, 5.400%, 7/01/24		7/12 at 100.00		Aa3		1,632,610
		District of Columbia – 0.9% (0.6% of Total Investments)
1,375		District of Columbia, Revenue Bonds, Catholic University of America, Series 1999, 5.625%,		10/09 at 101.00		A		1,383,498
		10/01/29 – AMBAC Insured
1,335		Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax		10/16 at 100.00		AAA		941,122
		Revenue Bonds, Series 2007, Residuals 1606, 11.765%, 10/01/30 – AMBAC Insured (IF)
3,335		Washington DC Convention Center Authority, Dedicated Tax Revenue Bonds, Residual Series		10/16 at 100.00		Aaa		2,351,042
		1730, 1731, 1736, 11.765%, 10/01/30 – AMBAC Insured (IF)
6,045		Total District of Columbia						4,675,662
		Florida – 2.3% (1.5% of Total Investments)
		Orange County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Oak Glen
		Apartments, Series 2001G:
1,105		5.400%, 12/01/32 – FSA Insured		12/11 at 100.00		AAA		1,004,511
2,195		5.450%, 12/01/41 – FSA Insured		12/11 at 100.00		AAA		1,948,304
4,175		Pace Property Finance Authority Inc., Florida, Utility System Improvement and Revenue		3/09 at 101.00		A		4,226,186
		Refunding Bonds, Series 1997, 5.250%, 9/01/17 – AMBAC Insured
5,455		South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System		8/17 at 100.00		AA–		4,208,151
		Obligation Group, Series 2007, 5.000%, 8/15/42 (UB)
1,000		Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007,		5/18 at 100.00		N/R		631,360
		6.650%, 5/01/40
13,930		Total Florida						12,018,512
		Georgia – 2.5% (1.6% of Total Investments)
5,000		Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 5.625%, 1/01/30 – FGIC Insured		1/10 at 101.00		AA		4,404,650
		(Alternative Minimum Tax)
2,700		Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, Series 2001, 7.900%,		12/11 at 101.00		AAA		3,227,364
		12/01/24 (Pre-refunded 12/01/11)
2,000		Fulton County Residential Care Facilities Authority, Georgia, Revenue Bonds, Elderly Care,		7/17 at 100.00		N/R		1,028,120
		Lenbrook Square Project, Series 2006A, 5.125%, 7/01/42
3,740		Gainesville and Hall County Hospital Authority, Georgia, Revenue Anticipation Certificates,		5/11 at 100.00		A– (4)		4,089,428
		Northeast Georgia Health Services Inc., Series 2001, 5.500%, 5/15/31 (Pre-refunded 5/15/11)
500		Gainesville Redevelopment Authority, Georgia, Educational Facilities Revenue Bonds, Riverside		3/17 at 100.00		N/R		256,835
		Military Academy Project, Series 2007, 5.125%, 3/01/37
13,940		Total Georgia						13,006,397
		Illinois – 16.5% (10.5% of Total Investments)
8,375		Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 5.500%, 1/01/19 – FSA Insured		1/11 at 101.00		AAA		8,455,400
		(Alternative Minimum Tax)
1,600		Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 5.250%, 1/01/28 – FGIC Insured		7/09 at 101.00		AAA		1,605,136
4,950		Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International		1/11 at 101.00		A1		4,156,515
		Airport, Series 2001A, 5.375%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax)
2,220		Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2001A, 5.500%,		No Opt. Call		AA		2,576,443
		1/01/16 – MBIA Insured
10,000		Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, 5.000%, 11/01/26		11/11 at 100.00		Aa3 (4)		11,044,100
		(Pre-refunded 11/01/11) – AMBAC Insured
1,665		Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport,		1/16 at 100.00		AA		1,432,266
		Series 2005A, 5.000%, 1/01/33 – FGIC Insured
2,415		Illinois Finance Authority, General Obligation Debt Certificates, Local Government Program –		12/14 at 100.00		A3		2,417,246
		Kankakee County, Series 2005B, 5.000%, 12/01/24 – AMBAC Insured
2,385		Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A, 5.500%, 8/01/37		8/17 at 100.00		Baa1		1,654,832
1,130		Illinois Health Facilities Authority, Revenue Bonds, Condell Medical Center, Series 2000,		5/10 at 101.00		Aaa		1,220,038
		6.500%, 5/15/30
9,000		Illinois Health Facilities Authority, Revenue Bonds, Covenant Retirement Communities Inc.,		12/11 at 101.00		BBB		7,323,930
		Series 2001, 5.875%, 12/01/31
15,000		Illinois Health Facilities Authority, Revenue Bonds, Loyola University Health System, Series		7/11 at 100.00		Baa2 (4)		16,489,500
		2001A, 6.125%, 7/01/31 (Pre-refunded 7/01/11)
5,000		Lake County School District 38, Big Hallow, Illinois, General Obligation Bonds, Series 2005,		No Opt. Call		Baa1		2,544,850
		0.000%, 2/01/22 – AMBAC Insured
7,000		Lombard Public Facilities Corporation, Illinois, First Tier Conference Center and Hotel		1/16 at 100.00		N/R		4,715,340
		Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36
16,900		Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion		12/09 at 101.00		AAA		16,992,780
		Project, Series 1999A, 5.250%, 12/15/28 – FGIC Insured
2,000		Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place		No Opt. Call		AAA		2,137,380
		Expansion Project, Series 1998A, 5.500%, 6/15/29 – FGIC Insured
89,640		Total Illinois						84,765,756
		Indiana – 6.4% (4.1% of Total Investments)
		Clark-Pleasant Community School Building Corporation, Indiana, First Mortgage Bonds,
		Series 2001:
1,255		5.000%, 7/15/21 (Pre-refunded 1/15/12) – AMBAC Insured		1/12 at 100.00		A (4)		1,389,825
1,000		5.000%, 1/15/26 (Pre-refunded 1/15/12) – AMBAC Insured		1/12 at 100.00		A (4)		1,107,430
		Evansville Vanderburgh Public Library Lease Corporation, Indiana, First Mortgage Bonds,
		Series 2001:
2,000		5.750%, 7/15/18 (Pre-refunded 1/15/12) – MBIA Insured		1/12 at 100.00		AA (4)		2,258,260
2,750		5.125%, 1/15/24 (Pre-refunded 1/15/12) – MBIA Insured		1/12 at 100.00		AA (4)		3,055,388
1,250		Hamilton Southeastern Cumberland Campus School Building Corporation, Indiana, First Mortgage		1/12 at 100.00		A (4)		1,388,813
		Bonds, Series 2001, 5.125%, 1/15/23 (Pre-refunded 1/15/12) – AMBAC Insured
9,500		Indiana Educational Facilities Authority, Revenue Bonds, Butler University, Series 2001,		2/11 at 100.00		AA		9,500,000
		5.500%, 2/01/26 – MBIA Insured
4,230		Indiana Finance Authority, Educational Facilities Revenue Bonds, Tudor Park Foundation, Series		6/15 at 100.00		Aa3		4,170,061
		2005B, 5.000%, 6/01/24
2,800		Indiana Health Facility Financing Authority, Revenue Bonds, Community Hospitals of Indiana,		5/15 at 100.00		A		2,085,608
		Series 2005A, 5.000%, 5/01/35 – AMBAC Insured
3,500		University of Southern Indiana, Student Fee Bonds, Series 2001H, 5.000%, 10/01/21 –		10/11 at 100.00		A2		3,552,570
		AMBAC Insured
		Vigo County, Indiana, Hospital Authority, Union Hospital, Revenue Bonds, Series 2007:
2,500		5.750%, 9/01/42		9/17 at 100.00		N/R		1,494,900
2,500		5.800%, 9/01/47		9/17 at 100.00		N/R		1,485,450
1,090		Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.500%,		1/13 at 101.00		A (4)		1,271,300
		7/15/22 (Pre-refunded 1/15/13) – AMBAC Insured
34,375		Total Indiana						32,759,605
		Iowa – 7.2% (4.6% of Total Investments)
2,000		Iowa Finance Authority, Healthcare Revenue Bonds, Great River Medical Center, Series 2001,		5/11 at 100.00		Aa3		1,771,920
		5.250%, 5/15/31 – FSA Insured
1,000		Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C,		6/15 at 100.00		BBB		554,420
		5.625%, 6/01/46
		Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds,
		Series 2001B:
28,000		5.300%, 6/01/25 (Pre-refunded 6/01/11)		6/11 at 101.00		AAA		30,283,398
3,950		5.600%, 6/01/35 (Pre-refunded 6/01/11)		6/11 at 101.00		AAA		4,329,161
34,950		Total Iowa						36,938,899
		Kansas – 0.2% (0.1% 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		612,160
1,000		5.125%, 5/15/42		5/14 at 103.00		N/R		592,620
2,000		Total Kansas						1,204,780
		Kentucky – 3.8% (2.4% of Total Investments)
1,000		Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds,		6/18 at 100.00		AAA		993,450
		Louisville Arena Authority, Inc., Series 2008A-1, 6.000%, 12/01/42 – AGC Insured
18,500		Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage		11/11 at 101.00		AA		18,314,444
		System Revenue Bonds, Series 2001A, 5.125%, 5/15/27 – MBIA Insured
19,500		Total Kentucky						19,307,894
		Louisiana – 3.4% (2.2% of Total Investments)
3,000		Louisiana Local Government Envirnomental Facilities & Community Development Authority, Revenue		11/17 at 100.00		BB+		2,098,530
		Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
3,700		Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project,		5/17 at 100.00		A3		2,738,777
		Series 2007A, 5.500%, 5/15/47
19,890		Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds,		5/11 at 101.00		BBB		12,632,935
		Series 2001B, 5.875%, 5/15/39
26,590		Total Louisiana						17,470,242
		Maine – 1.2% (0.8% of Total Investments)
		Maine State Housing Authority, Single Family Mortgage Purchase Bonds, Series 2001B:
4,610		5.400%, 11/15/21 (Alternative Minimum Tax)		11/10 at 100.00		AA+		4,636,922
1,610		5.500%, 11/15/32 (Alternative Minimum Tax)		11/10 at 100.00		AA+		1,530,031
6,220		Total Maine						6,166,953
		Maryland – 2.2% (1.4% of Total Investments)
1,000		Howard County, Maryland, Retirement Community Revenue Bonds, Vantage House, Series 2007B,		4/17 at 100.00		N/R		536,890
		5.250%, 4/01/37
1,570		Maryland Community Development Administration, Insured Multifamily Housing Mortgage Loan		7/11 at 100.00		Aa2		1,578,415
		Revenue Bonds, Series 2001B, 5.250%, 7/01/21 (Alternative Minimum Tax)
2,000		Maryland Economic Development Corporation, Revenue Bonds, Chesapeake Bay Hyatt Conference		12/16 at 100.00		N/R		1,016,760
		Center, Series 2006A, 5.000%, 12/01/31
10,600		Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995,		3/09 at 100.00		N/R		7,549,956
		7.400%, 9/01/19 (Alternative Minimum Tax)
555		Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Ridge		7/17 at 100.00		A–		350,288
		Retirement Community, Series 2007, 4.750%, 7/01/34
15,725		Total Maryland						11,032,309
		Massachusetts – 2.3% (1.5% of Total Investments)
1,375		Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007,		10/12 at 102.00		BB–		840,111
		5.250%, 10/01/26
1,000		Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital		7/15 at 100.00		BBB–		630,150
		Project, Series 2005D, 5.250%, 7/01/30
4,860		Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 2008, Trust		6/18 at 100.00		Aa2		4,193,743
		3145, 14.886%, 6/01/39 (IF)
5,000		Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series		1/11 at 101.00		A		3,262,850
		2001A, 5.500%, 1/01/18 – AMBAC Insured (Alternative Minimum Tax)
3,465		Massachusetts Water Resources Authority, General Revenue Bonds, 4.500%, 8/01/46 –		2/17 at 100.00		AAA		2,940,053
		FSA Insured (UB)
15,700		Total Massachusetts						11,866,907
		Michigan – 10.4% (6.6% of Total Investments)
15,000		Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site		No Opt. Call		AAA		16,616,250
		Improvement Bonds, Series 2001A, 6.000%, 5/01/29 – FSA Insured (UB)
2,000		Garden City Hospital Finance Authority, Michigan, Revenue Bonds, Garden City Hospital		8/17 at 100.00		N/R		1,018,020
		Obligated Group, Series 2007A, 5.000%, 8/15/38
11,000		Kent Hospital Finance Authority, Michigan, Revenue Bonds, Spectrum Health, Series 2001A,		7/11 at 101.00		AA (4)		12,224,960
		5.500%, 1/15/31 (Pre-refunded 7/15/11)
1,235		Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I,		10/11 at 100.00		A+		1,326,723
		5.500%, 10/15/18
1,355		Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Detroit Medical Center		2/09 at 101.00		BB		865,533
		Obligated Group, Series 1998A, 5.250%, 8/15/23
3,485		Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sisters of Mercy		No Opt. Call		AA (4)		3,858,871
		Health Corporation, Series 1993P, 5.375%, 8/15/14 – MBIA Insured (ETM)
		Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sparrow Obligated
		Group, Series 2001:
1,400		5.500%, 11/15/21 (Pre-refunded 11/15/11)		11/11 at 101.00		A+ (4)		1,578,962
2,500		5.625%, 11/15/31 (Pre-refunded 11/15/11)		11/11 at 101.00		A+ (4)		2,828,125
3,500		Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series		12/16 at 100.00		Aa2		3,093,335
		2006, 5.000%, 12/01/31 (UB)
12,640		Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont		11/11 at 100.00		AA		10,088,742
		Hospital, Series 2001M, 5.250%, 11/15/31 – MBIA Insured
54,115		Total Michigan						53,499,521
		Minnesota – 0.6% (0.4% of Total Investments)
2,275		Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily		10/11 at 105.00		Aaa		2,184,956
		Housing Revenue Bonds, Rose Apartments Project, Series 2001, 6.350%, 10/20/37
		(Alternative Minimum Tax)
1,375		Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, Regions Hospital Parking Ramp		8/16 at 100.00		N/R		741,771
		Project, Series 2007-1, 5.000%, 8/01/36
3,650		Total Minnesota						2,926,727
		Mississippi – 1.0% (0.6% of Total Investments)
2,155		Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage		5/09 at 103.00		AAA		2,014,774
		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		2,912,940
		Healthcare, Series 2004, 5.000%, 9/01/24 (UB)
5,155		Total Mississippi						4,927,714
		Missouri – 3.3% (2.1% of Total Investments)
1,495		Cape Girardeau County Industrial Development Authority, Missouri, Health Facilities Revenue		6/17 at 100.00		N/R		1,055,844
		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		556,960
		Medical Center, Series 2007, 5.000%, 12/01/32
1,825		Fenton, Missouri, Tax Increment Refunding and Improvement Revenue Bonds, Gravois Bluffs		10/12 at 100.00		N/R (4)		2,109,280
		Redevelopment Project, Series 2002, 6.125%, 10/01/21 (Pre-refunded 10/01/12)
		Missouri Development Finance Board, Cultural Facilities Revenue Bonds, Nelson Gallery
		Foundation, Series 2001A:
3,335		5.250%, 12/01/19 – MBIA Insured		12/11 at 100.00		AA		3,531,832
3,510		5.250%, 12/01/20 – MBIA Insured		12/11 at 100.00		AA		3,717,160
3,695		5.250%, 12/01/21 – MBIA Insured		12/11 at 100.00		AA		3,892,091
2,040		5.250%, 12/01/22 – MBIA Insured		12/11 at 100.00		AA		2,111,482
16,900		Total Missouri						16,974,649
		Montana – 0.7% (0.4% of Total Investments)
5,000		Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company, Series		7/10 at 101.00		B–		3,361,650
		2000, 8.000%, 7/01/20 (Alternative Minimum Tax)
		Nebraska – 1.1% (0.7% of Total Investments)
		Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2001D:
1,910		5.250%, 9/01/21 (Alternative Minimum Tax)		9/11 at 100.00		AAA		1,884,330
2,550		5.375%, 9/01/32 (Alternative Minimum Tax)		9/11 at 100.00		AAA		2,400,927
1,005		Omaha Public Power District, Nebraska, Separate Electric System Revenue Bonds, Nebraska City		2/17 at 100.00		AAA		1,268,983
		2, Series 2006A, Trust 11673, 18.664%, 2/01/49 – AMBAC Insured (IF)
5,465		Total Nebraska						5,554,240
		Nevada – 1.3% (0.8% of Total Investments)
2,000		Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas		1/10 at 100.00		A		864,660
		Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured
4,000		Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas		1/10 at 102.00		N/R		600,360
		Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40
200		Nevada Housing Division, Single Family Mortgage Bonds, Senior Series 1998A-1, 5.300%, 4/01/18		4/09 at 100.75		Aaa		200,900
		(Alternative Minimum Tax)
4,290		University of Nevada, Revenue Bonds, Community College System, Series 2001A, 5.250%, 7/01/26		1/12 at 100.00		AA– (4)		4,775,800
		(Pre-refunded 1/01/12) – FGIC Insured
10,490		Total Nevada						6,441,720
		New Hampshire – 0.4% (0.2% of Total Investments)
2,000		New Hampshire Health and Education Authority, Hospital Revenue Bonds, Concord Hospital, Series		10/11 at 101.00		Aa3		2,051,660
		2001, 5.500%, 10/01/21 – FSA Insured
		New Jersey – 3.8% (2.4% of Total Investments)
10,000		New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water		11/12 at 101.00		Baa1		8,006,100
		Company, Series 2002A, 5.250%, 11/01/32 – AMBAC Insured (Alternative Minimum Tax)
495		New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center,		7/13 at 100.00		Ba2		251,341
		Series 2003, 5.500%, 7/01/33
4,125		New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration		No Opt. Call		A1		4,586,670
		Grants, Series 2002A, 5.500%, 9/15/13 – AMBAC Insured
20,000		New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C,		No Opt. Call		AA–		5,751,400
		0.000%, 12/15/28 – AMBAC Insured
2,000		Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,		6/17 at 100.00		BBB		1,067,180
		Series 2007-1A, 4.750%, 6/01/34
36,620		Total New Jersey						19,662,691
		New York – 4.0% (2.6% of Total Investments)
900		Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter		4/17 at 100.00		N/R		556,434
		Schools, Series 2007A, 5.000%, 4/01/32
1,780		East Rochester Housing Authority, New York, GNMA Secured Revenue Bonds, Gates Senior Housing		10/11 at 101.00		AAA		1,741,196
		Inc., Series 2001, 5.300%, 4/20/31
5,010		Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%,		2/17 at 100.00		AA		3,710,807
		2/15/47 – MBIA Insured
4,155		Monroe County Airport Authority, New York, Revenue Refunding Bonds, Greater Rochester		No Opt. Call		AA		4,353,235
		International Airport, Series 1999, 5.750%, 1/01/13 – MBIA Insured (Alternative Minimum Tax)
8,000		New York City Industrial Development Agency, New York, American Airlines-JFK International		8/16 at 101.00		B–		5,580,640
		Airport Special Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31 (Alternative
		Minimum Tax)
1,715		New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20 –		8/12 at 100.00		AA		1,791,729
		MBIA Insured
785		New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20		8/12 at 100.00		Aa3 (4)		904,532
		(Pre-refunded 8/01/12) – MBIA Insured
2,000		New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and		6/11 at 100.00		AA–		2,063,900
		State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
24,345		Total New York						20,702,473
		North Carolina – 1.3% (0.8% of Total Investments)
2,475		Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue		1/18 at 100.00		AA–		1,724,060
		Bonds, Series 2008, Trust 1149, 9.412%, 1/15/47 (IF)
1,200		Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care System Revenue Bonds,		1/17 at 100.00		AA–		1,097,604
		Carolinas Health Care, Series 2007A, 5.000%, 1/15/31
1,750		Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA		1/15 at 100.00		AA– (4)		2,044,980
		Carolinas Healthcare System, Series 2005A, 4.875%, 1/15/32 (Pre-refunded 1/15/15)
1,600		North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A,		No Opt. Call		A2		1,761,136
		5.500%, 1/01/13
7,025		Total North Carolina						6,627,780
		Ohio – 2.2% (1.4% of Total Investments)
		Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue
		Bonds, Senior Lien, Series 2007A-2:
3,400		5.125%, 6/01/24		6/17 at 100.00		BBB		2,494,002
710		5.875%, 6/01/30		6/17 at 100.00		BBB		453,967
685		5.750%, 6/01/34		6/17 at 100.00		BBB		408,459
1,570		5.875%, 6/01/47		6/17 at 100.00		BBB		888,400
1,505		Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program Residential Mortgage		3/09 at 100.75		Aaa		1,489,679
		Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 – FSA Insured (Alternative Minimum Tax)
6,900		Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, Bay Shore Power, Series		9/09 at 102.00		N/R		5,706,921
		1998B, 6.625%, 9/01/20 (Alternative Minimum Tax)
14,770		Total Ohio						11,441,428
		Oklahoma – 2.5% (1.6% of Total Investments)
		Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007:
4,930		5.000%, 2/15/37		2/17 at 100.00		AA–		4,185,324
955		5.000%, 2/15/42		2/17 at 100.00		AA–		791,838
2,500		Oklahoma Development Finance Authority, Revenue Refunding Bonds, Hillcrest Healthcare System,		8/09 at 101.00		AAA		2,587,500
		Series 1999A, 5.625%, 8/15/29 (Pre-refunded 8/15/09)
6,305		Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health		12/16 at 100.00		AA		5,188,574
		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		59,640
		System, Series 2006, Trust 3500, 8.406%, 12/15/36 (IF)
14,778		Total Oklahoma						12,812,876
		Oregon – 2.8% (1.8% of Total Investments)
4,700		Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds,		11/11 at 101.00		AA–		4,815,714
		PeaceHealth Project, Series 2001, 5.250%, 11/15/21 – AMBAC Insured
10,000		Oregon Housing and Community Services Department, Multifamily Housing Revenue Bonds, Series		7/10 at 100.00		Aaa		9,639,000
		2000A, 6.050%, 7/01/42 (Alternative Minimum Tax)
14,700		Total Oregon						14,454,714
		Pennsylvania – 2.2% (1.4% of Total Investments)
		Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, West Penn
		Allegheny Health System, Series 2000B:
2,000		9.250%, 11/15/22 (Pre-refunded 11/15/10)		11/10 at 102.00		AAA		2,321,860
2,000		9.250%, 11/15/30 (Pre-refunded 11/15/10)		11/10 at 102.00		AAA		2,321,860
500		Bucks County Industrial Development Authority, Pennsylvania, Charter School Revenue Bonds,		3/17 at 100.00		BBB		301,995
		School Lane Charter School, Series 2007A, 5.000%, 3/15/37
3,500		Pennsylvania Economic Development Financing Authority, Senior Lien Resource Recovery Revenue		7/09 at 100.00		B–		2,577,435
		Bonds, Northampton Generating Project, Series 1994A, 6.600%, 1/01/19 (Alternative Minimum Tax)
3,205		Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002B, 5.625%,		8/12 at 100.00		Aa3 (4)		3,675,174
		8/01/16 (Pre-refunded 8/01/12) – FGIC Insured
11,205		Total Pennsylvania						11,198,324
		Puerto Rico – 0.4% (0.2% of Total Investments)
2,500		Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A,		8/17 at 100.00		A+		2,050,075
		5.250%, 8/01/57
		South Carolina – 1.5% (0.9% of Total Investments)
6,850		South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series 2001A, 5.500%,		10/11 at 100.00		A1 (4)		7,605,144
		10/01/22 (Pre-refunded 10/01/11) – AMBAC Insured
		Tennessee – 1.8% (1.1% of Total Investments)
3,680		Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue		1/17 at 30.07		A–		245,603
		Refunding Bonds, Covenant Health, Series 2006, 0.000%, 1/01/41
5,210		Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue Bonds, Series 2001A,		3/11 at 100.00		AAA		5,367,238
		5.500%, 3/01/14 – FSA Insured (Alternative Minimum Tax)
275		Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds,		9/16 at 100.00		BBB+		161,543
		Wellmont Health System, Series 2006C, 5.250%, 9/01/36
		Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding
		Bonds, Sumner Regional Health System Inc., Series 2007:
800		5.500%, 11/01/37		11/17 at 100.00		N/R		396,856
2,800		5.500%, 11/01/46		11/17 at 100.00		N/R		1,349,712
745		Tennessee Housing Development Agency, Homeownership Program Bonds, Series 1998-2, 5.350%,		7/09 at 101.00		AA		739,055
		7/01/23 (Alternative Minimum Tax)
760		Tennessee Housing Development Agency, Homeownership Program Bonds, Series 2001-3A, 5.200%,		7/11 at 100.00		AA		750,576
		7/01/22 (Alternative Minimum Tax)
14,270		Total Tennessee						9,010,583
		Texas – 20.8% (13.2% of Total Investments)
5,445		Board of Regents, University of Texas System, Financing System Revenue Bonds, Series 2006F,		2/17 at 100.00		AAA		4,612,623
		4.250%, 8/15/36 (UB)
1,125		Brushy Creek Municipal Utility District, Williamson County, Texas, Combination Unlimited Tax		6/09 at 100.00		Aa3		1,125,821
		and Revenue Refunding Bonds, Series 2001, 5.125%, 6/01/26 – FSA Insured
		Collins and Denton Counties, Frisco, Texas, General Obligation Bonds, Series 2001:
1,910		5.000%, 2/15/20 – FGIC Insured		2/11 at 100.00		AA		1,983,535
2,005		5.000%, 2/15/21 – FGIC Insured		2/11 at 100.00		AA		2,060,980
3,850		Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds,		11/11 at 100.00		AA		3,312,271
		Series 2001A, 5.500%, 11/01/35 – FGIC Insured (Alternative Minimum Tax)
5,000		Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional Health System, Series 2004A,		9/14 at 100.00		N/R		3,926,000
		7.000%, 9/01/25
4,040		Harris County, Texas, Tax and Revenue Certificates of Obligation, Series 2001, 5.000%, 8/15/27		8/11 at 100.00		AAA		4,069,573
6,000		Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2001B,		No Opt. Call		AA (4)		6,957,720
		5.500%, 12/01/29 – MBIA Insured (ETM)
7,000		Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 1998B, 5.250%, 7/01/14 –		7/09 at 100.00		AA		7,020,160
		FGIC Insured (Alternative Minimum Tax)
		Houston, Texas, Subordinate Lien Airport System Revenue Refunding Bonds, Series 2001A:
2,525		5.500%, 7/01/13 – FGIC Insured (Alternative Minimum Tax)		1/12 at 100.00		AA		2,608,603
2,905		5.500%, 7/01/14 – FGIC Insured (Alternative Minimum Tax)		1/12 at 100.00		AA		2,981,140
14,200		Hutto Independent School District, Williamson County, Texas, General Obligation Bonds, Series		8/16 at 100.00		AAA		13,180,156
		2007A, 4.750%, 8/01/43
		Jefferson County Health Facilities Development Corporation, Texas, FHA-Insured Mortgage
		Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001:
8,500		5.400%, 8/15/31 – AMBAC Insured		8/11 at 100.00		A		7,483,400
8,500		5.500%, 8/15/41 – AMBAC Insured		8/11 at 100.00		A		7,242,340
10,700		Laredo Independent School District, Webb County, Texas, General Obligation Refunding Bonds,		8/11 at 100.00		AAA		10,846,483
		Series 2001, 5.000%, 8/01/25
2,500		Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston		No Opt. Call		A		1,893,975
		Light and Power Company, Series 1997, 5.125%, 11/01/28 – AMBAC Insured (Alternative
		Minimum Tax)
3,150		North Texas Thruway Authority, Second Tier System Revenue Refunding Bonds, Series 2008,		1/18 at 100.00		A3		2,780,474
		5.750%, 1/01/38
3,045		Port of Houston Authority, Harris County, Texas, General Obligation Port Improvement Bonds,		10/11 at 100.00		AAA		3,085,042
		Series 2001B, 5.500%, 10/01/17 – FGIC Insured (Alternative Minimum Tax)
7,700		Tarrant County, Texas, Cultural & Educational Facilities Financing Corporation, Texas, Revenue		2/17 at 100.00		AA–		6,352,346
		Bonds, Series 2007A, 5.000%, 2/15/36 (UB)
9,840		Texas Department of Housing and Community Affairs, Residential Mortgage Revenue Bonds, Series		7/11 at 100.00		AAA		9,230,904
		2001A, 5.350%, 7/01/33 (Alternative Minimum Tax)
		White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds,
		Series 2006:
9,110		0.000%, 8/15/37		8/15 at 31.98		AAA		1,680,795
9,110		0.000%, 8/15/40		8/15 at 27.11		AAA		1,411,595
7,110		0.000%, 8/15/44		8/15 at 21.88		AAA		861,874
135,270		Total Texas						106,707,810
		Utah – 0.6% (0.4% of Total Investments)
		Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E:
1,030		5.200%, 1/01/18 (Alternative Minimum Tax)		7/11 at 100.00		AA–		995,938
275		5.500%, 1/01/23 (Alternative Minimum Tax)		7/11 at 100.00		Aaa		274,992
		Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1:
1,465		4.950%, 7/01/18 (Alternative Minimum Tax)		7/11 at 100.00		AA–		1,458,071
385		5.300%, 7/01/23 (Alternative Minimum Tax)		7/11 at 100.00		Aaa		380,969
3,155		Total Utah						3,109,970
		Virginia – 0.1% (0.1% of Total Investments)
1,000		Chesterfield County Health Center Commission, Virginia, Mortgage Revenue Bonds, Lucy Corr		12/15 at 100.00		N/R		624,060
		Village, Series 2005, 5.375%, 12/01/28
		Washington – 17.8% (11.3% of Total Investments)
		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		A1		1,017,830
2,000		5.600%, 12/01/36 – MBIA Insured		12/11 at 100.00		A1		2,013,360
12,955		Port of Seattle, Washington, Passenger Facility Charge Revenue Bonds, Series 1998B, 5.300%,		6/09 at 101.00		A		13,047,887
		12/01/16 – AMBAC Insured (Alternative Minimum Tax)
		Port of Seattle, Washington, Revenue Bonds, Series 2001B:
2,535		5.625%, 4/01/18 – FGIC Insured (Alternative Minimum Tax)		10/11 at 100.00		AA		2,582,176
16,000		5.100%, 4/01/24 – FGIC Insured (Alternative Minimum Tax)		4/09 at 100.00		AA		14,488,800
2,090		Public Utility District 1, Benton County, Washington, Electric Revenue Refunding Bonds, Series		11/11 at 100.00		AAA		2,275,885
		2001A, 5.625%, 11/01/15 – FSA Insured
5,680		Seattle, Washington, Municipal Light and Power Revenue Refunding and Improvement Bonds, Series		3/11 at 100.00		AAA		5,983,766
		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		AA (4)		5,039,308
		(Pre-refunded 12/01/11) – AMBAC Insured
3,720		Washington State Healthcare Facilities Authority, Revenue Bonds, Children’s Hospital and		10/11 at 100.00		Aa3 (4)		4,134,557
		Regional Medical Center, Series 2001, 5.375%, 10/01/18 (Pre-refunded 10/01/11) –
		AMBAC Insured
		Washington State Healthcare Facilities Authority, Revenue Bonds, Good Samaritan Hospital,
		Series 2001:
5,480		5.500%, 10/01/21 (Pre-refunded 10/01/11) – RAAI Insured		10/11 at 101.00		BBB+ (4)		6,161,822
25,435		5.625%, 10/01/31 (Pre-refunded 10/01/11) – RAAI Insured		10/11 at 101.00		BBB+ (4)		28,683,049
		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		AA		3,030,963
2,915		5.375%, 12/01/18 – AMBAC Insured		12/11 at 101.00		AA		2,917,973
87,345		Total Washington						91,377,376
		Wisconsin – 5.1% (3.2% of Total Investments)
		Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, Series 2001:
3,705		5.375%, 1/01/20 (Pre-refunded 1/01/12) – FGIC Insured		1/12 at 100.00		N/R (4)		4,137,781
1,850		5.000%, 1/01/21 (Pre-refunded 1/01/12) – FGIC Insured		1/12 at 100.00		N/R (4)		2,046,285
12,250		La Crosse, Wisconsin, Pollution Control Revenue Refunding Bonds, Dairyland Power Cooperative,		12/09 at 101.00		A2		12,607,210
		Series 1997B, 5.550%, 2/01/15 – AMBAC Insured
1,000		Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Franciscan Sisters of		9/17 at 100.00		BBB+		718,960
		Christian Charity HealthCare Ministry, Series 2007, 5.000%, 9/01/33
350		Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Froedtert and Community		10/11 at 101.00		AA–		329,083
		Health Obligated Group, Series 2001, 5.375%, 10/01/30
3,650		Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Froedtert and Community		10/11 at 101.00		AA– (4)		4,092,160
		Health Obligated Group, Series 2001, 5.375%, 10/01/30 (Pre-refunded 10/01/11)
2,500		Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic,		2/12 at 100.00		BBB+		2,026,349
		Series 2001B, 6.000%, 2/15/25
50		Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan		8/13 at 100.00		BBB+		26,154
		Services Inc., Series 2003A, 5.125%, 8/15/33
25,355		Total Wisconsin						25,983,982
$   919,423		Total Municipal Bonds (cost $866,942,461)						805,385,608
Shares		Description (1)						Value
		Investment Companies – 0.3% (0.2% of Total Investments)
29,401		BlackRock MuniHoldings Fund Inc.					$	344,580
26,880		Dreyfus Strategic Municipal Fund						175,795
27,920		PIMCO Municipal Income Fund II						220,847
42,020		Van Kampen Investment Grade Municipal Trusst						453,816
19,260		Van Kampen Municipal Trust						226,498
		Total Investment Companies (cost $1,846,128)						1,421,536
		Total Investments (cost $868,788,589) – 157.3%						806,807,144
		Floating Rate Obligations – (6.8)%						(34,902,000)
		Other Assets Less Liabilities – 2.3%						11,928,713
		Auction Rate Preferred Shares, at Liquidation Value – (52.8)% (5)						(270,775,000)
		Net Assets Applicable to Common Shares – 100%					$	513,058,857

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(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 higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service,
		Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be
		below investment grade.
		The Portfolio of Investments may reflect the ratings on certain bonds insured by ACA, AGC, AMBAC,
		CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of January 31, 2009. Subsequent to January 31, 2009,
		and during the period this Portfolio of Investments was prepared, there may have been reductions to the
		ratings of certain bonds resulting from changes to the ratings of the underlying insurers both during the
		period and after period end. Such reductions would likely reduce the effective rating of many of the
		bonds insured by that insurer or insurers presented at period end.
(4)		Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities
		which ensure the timely payment of principal and interest. Such investments are normally considered to
		be equivalent to AAA rated securities.
(5)		Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.6%.
N/R		Not rated.
(ETM)		Escrowed to maturity.
(IF)		Inverse floating rate investment.
(UB)		Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the
		provisions of SFAS No. 140.

Fair Value Measurements

During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157 (SFAS No.157) “Fair Value Measurements.” SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:

Level 1 – Quoted prices in active markets for identical securities.

Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates,

prepayment speeds, credit risk, etc.).

Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair

value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the Fund’s fair value measurements as of January 31, 2009:

		Level 1		Level 2		Level 3		Total
Investments		$1,421,536		$805,385,608		$ —		$806,807,144

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 transactions subject to SFAS No. 140. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

At January 31, 2009, the cost of investments was $833,899,079.

Gross unrealized appreciation and gross unrealized depreciation of investments at January 31, 2009, were as follows:

Gross unrealized:
Appreciation		$ 28,345,438
Depreciation		(90,294,635)
Net unrealized appreciation (depreciation) of investments		$(61,949,197)

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Item 2. Controls and Procedures.

1. 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)).
2. 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, 2009        

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, 2009        

By (Signature and Title)         /s/ Stephen D. Foy                              
                                                 Stephen D. Foy
                                                 Vice President and Controller (principal financial officer) 

Date        April 1, 2009