Unassociated Document



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

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

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            10/31          
 
Date of reporting period:         1/31/10         
 
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, 2010      
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Municipal Bonds – 152.1% (99.3% of Total Investments)      
  Alabama – 1.7% (1.1% of Total Investments)      
$     3,500  Alabama Special Care Facilities Financing Authority, Revenue Bonds, Ascension Health, Series  11/16 at 100.00  AA  $    3,509,730 
  2006C-2, 5.000%, 11/15/36 (UB)       
5,655  Alabama State Port Authority, Revenue Bonds, State Docks Department Facilities, Series 2001,  10/11 at 100.00  A (4)  6,045,138 
  5.250%, 10/01/26 (Pre-refunded 10/01/11) – AMBAC Insured (Alternative Minimum Tax)       
9,155  Total Alabama      9,554,868 
  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  675,250 
  Series 2006A, 5.000%, 6/01/46       
  Arizona – 1.0% (0.7% of Total Investments)      
3,390  Arizona State Transportation Board, Highway Revenue Bonds, Series 2008, 13.526%, 7/01/33 (IF)  7/18 at 100.00  AAA  3,955,927 
2,200  Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Series 2007,  No Opt. Call  A  1,882,782 
  5.000%, 12/01/37       
5,590  Total Arizona      5,838,709 
  Arkansas – 0.7% (0.5% of Total Investments)      
  Sebastian County Health Facilities Board, Arkansas, Hospital Revenue Improvement Bonds, Sparks       
  Regional Medical Center, Series 2001A:       
1,805  5.500%, 11/01/13  11/11 at 101.00  N/R  1,972,215 
1,900  5.500%, 11/01/14  11/11 at 101.00  N/R  2,076,016 
3,705  Total Arkansas      4,048,231 
  California – 13.3% (8.7% of Total Investments)      
  California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist       
  Health System/West, Series 2003A:       
2,065  5.000%, 3/01/28  3/13 at 100.00  A  1,998,053 
140  5.000%, 3/01/33  3/13 at 100.00  A  131,599 
3,400  California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services,  10/19 at 100.00  AA  3,555,414 
  Series 2009B, 5.500%, 10/01/39       
2,900  California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A,  11/16 at 100.00  Aa3  2,660,112 
  5.000%, 11/15/42 (UB)       
5,000  California Infrastructure Economic Development Bank, Revenue Bonds, Kaiser Hospital Assistance  8/11 at 102.00  A+  5,025,250 
  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  Aa3  5,604,704 
  Option Bond Trust 3175, 13.716%, 11/15/48 (IF)       
18,850  California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG  6/10 at 100.00  AA–  18,848,680 
  Insured (Alternative Minimum Tax)       
11,865  Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement  6/17 at 100.00  BBB  8,195,511 
  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:       
12,280  5.750%, 1/01/16 – AMBAC Insured (Alternative Minimum Tax)  1/12 at 100.00  A–  12,625,191 
5,000  5.375%, 1/01/21 – AMBAC Insured (Alternative Minimum Tax)  1/12 at 100.00  A–  5,017,400 
1,500  5.250%, 1/01/23 – AMBAC Insured (Alternative Minimum Tax)  1/12 at 100.00  A–  1,475,085 
10,000  5.500%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax)  1/12 at 100.00  A–  9,641,900 
10,000  San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue  No Opt. Call  A  1,225,300 
  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  Aa1  873,780 
  2006C, 0.000%, 9/01/30 – NPFG Insured       
91,355  Total California      76,877,979 
  Colorado – 6.6% (4.3% of Total Investments)      
2,250  Canterberry Crossing Metropolitan District II, Parker, Colorado, Limited Tax General  12/12 at 100.00  N/R (4)  2,591,370 
  Obligation Bonds, Series 2002, 7.375%, 12/01/32 (Pre-refunded 12/01/12)       
1,565  Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Belle  3/13 at 100.00  N/R (4)  1,831,504 
  Creek Education Center, Series 2002A, 7.625%, 3/15/32 (Pre-refunded 3/15/13)       
3,085  Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds,  3/10 at 102.00  N/R (4)  3,165,920 
  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)  1,935,993 
  County School District 6 – Frontier Academy, Series 2001, 7.375%, 6/01/31       
  (Pre-refunded 6/01/11)       
3,345  Colorado Educational and Cultural Facilities Authority, Revenue Bonds, Montessori Peaks  5/16 at 102.00  N/R  2,795,684 
  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  3,397,914 
  5.500%, 4/01/31 (Alternative Minimum Tax)       
5,000  Compark Business Campus Metropolitan District, Colorado, General Obligation Limited Tax Bonds,  12/17 at 100.00  N/R  3,831,100 
  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  A+  3,414,972 
  FGIC Insured       
2,000  Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A,  11/11 at 100.00  A+  2,085,520 
  5.500%, 11/15/16 – FGIC Insured (Alternative Minimum Tax)       
  Denver, Colorado, Airport Revenue Bonds Series 2006:       
5,365  5.000%, 11/15/23 – FGIC Insured (UB)  11/16 at 100.00  A+  5,584,214 
4,335  5.000%, 11/15/25 – FGIC Insured (UB)  11/16 at 100.00  A+  4,462,926 
  Maher Ranch Metropolitan District 4, Colorado, General Obligation Limited Tax Bonds,       
  Series 2007:       
450  5.125%, 12/01/27 – RAAI Insured  12/17 at 100.00  N/R  382,644 
2,000  5.250%, 12/01/36 – RAAI Insured  12/17 at 100.00  N/R  1,594,900 
1,000  Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003,  6/14 at 101.00  N/R  990,990 
  8.000%, 12/01/25       
38,850  Total Colorado      38,065,651 
  Delaware – 0.3% (0.2% of Total Investments)      
1,535  Delaware Housing Authority, Multifamily Mortgage Revenue Bonds, Series 2001A,  7/12 at 100.00  Aa3  1,585,056 
  5.400%, 7/01/24       
  District of Columbia – 1.0% (0.6% of Total Investments)      
1,375  District of Columbia, Revenue Bonds, Catholic University of America, Series 1999, 5.625%,  4/10 at 101.00  A  1,389,493 
  10/01/29 – AMBAC Insured       
1,335  Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax  10/16 at 100.00  AA+  1,260,787 
  Revenue Bonds, Series 2007, Residuals 1606, 11.602%, 10/01/30 – AMBAC Insured (IF)       
3,335  Washington DC Convention Center Authority, Dedicated Tax Revenue Bonds, Residual Series  10/16 at 100.00  AA+  3,149,607 
  1730, 1731, 1736, 11.558%, 10/01/30 – AMBAC Insured (IF)       
6,045  Total District of Columbia      5,799,887 
  Florida – 2.0% (1.4% of Total Investments)      
  Orange County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Oak Glen       
  Apartments, Series 2001G:       
1,105  5.400%, 12/01/32 – AGM Insured  12/11 at 100.00  AAA  1,109,133 
2,195  5.450%, 12/01/41 – AGM Insured  12/11 at 100.00  AAA  2,199,390 
2,775  Pace Property Finance Authority Inc., Florida, Utility System Improvement and Revenue  3/10 at 100.00  N/R  2,775,805 
  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–  5,226,817 
  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  805,130 
  6.650%, 5/01/40       
12,530  Total Florida      12,116,275 
  Georgia – 2.4% (1.5% of Total Investments)      
5,000  Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 5.625%, 1/01/30 – FGIC Insured  7/10 at 101.00  A+  5,010,100 
  (Alternative Minimum Tax)       
2,700  Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, Series 2001, 7.900%,  12/11 at 101.00  AAA  3,085,992 
  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  1,325,000 
  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  N/R (4)  3,972,441 
  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  310,010 
  Military Academy Project, Series 2007, 5.125%, 3/01/37       
13,940  Total Georgia      13,703,543 
  Illinois – 15.0% (9.8% of Total Investments)      
8,375  Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 5.500%, 1/01/19 – AGM Insured  1/11 at 101.00  AAA  8,519,553 
  (Alternative Minimum Tax)       
4,950  Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International  1/11 at 101.00  A1  4,761,801 
  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  A+  2,539,747 
  1/01/16 – NPFG Insured       
10,000  Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, 5.000%, 11/01/26  11/11 at 100.00  Aa3 (4)  10,761,800 
  (Pre-refunded 11/01/11) – AMBAC Insured       
1,165  Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport,  1/16 at 100.00  A1  1,152,418 
  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  2,440,671 
  Kankakee County, Series 2005B, 5.000%, 12/01/24 – AMBAC Insured       
3,385  Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A,  8/17 at 100.00  BBB  2,985,198 
  5.500%, 8/01/37       
1,130  Illinois Health Facilities Authority, Revenue Bonds, Condell Medical Center, Series 2000,  5/10 at 101.00  Aaa  1,161,934 
  6.500%, 5/15/30 (Pre-refunded 5/15/10)       
9,000  Illinois Health Facilities Authority, Revenue Bonds, Covenant Retirement Communities Inc.,  12/11 at 101.00  BBB–  8,397,360 
  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  Baa3 (4)  16,146,150 
  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  N/R  2,686,100 
  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  5,626,670 
  Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36       
16,900  Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion  6/10 at 101.00  AAA  17,080,661 
  Project, Series 1999A, 5.250%, 12/15/28 – FGIC Insured       
2,265  Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place  No Opt. Call  AAA  2,524,750 
  Expansion Project, Series 1998A, 5.500%, 6/15/29 – FGIC Insured       
88,805  Total Illinois      86,784,813 
  Indiana – 6.0% (3.9% of Total Investments)      
  Clark-Pleasant Community School Building Corporation, Indiana, First Mortgage Bonds,       
  Series 2001:       
1,255  5.000%, 7/15/21 (Pre-refunded 1/15/12) – AMBAC Insured  1/12 at 100.00  AA+ (4)  1,362,139 
1,000  5.000%, 1/15/26 (Pre-refunded 1/15/12) – AMBAC Insured  1/12 at 100.00  AA+ (4)  1,085,370 
  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  A+ (4)  2,199,920 
2,750  5.125%, 1/15/24 (Pre-refunded 1/15/12) – MBIA Insured  1/12 at 100.00  A+ (4)  2,991,450 
1,250  Hamilton Southeastern Cumberland Campus School Building Corporation, Indiana, First Mortgage  1/12 at 100.00  A (4)  1,359,750 
  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  A  9,658,745 
  5.500%, 2/01/26 – NPFG Insured       
4,230  Indiana Finance Authority, Educational Facilities Revenue Bonds, Tudor Park Foundation, Series  6/15 at 100.00  Aa3  4,375,808 
  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  2,491,132 
  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  3,561,565 
  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  2,065,275 
2,500  5.800%, 9/01/47  9/17 at 100.00  N/R  2,053,200 
1,090  Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.500%,  1/13 at 101.00  A3 (4)  1,242,447 
  7/15/22 (Pre-refunded 1/15/13) – AMBAC Insured       
34,375  Total Indiana      34,446,801 
  Iowa – 6.1% (4.0% of Total Investments)      
2,000  Iowa Finance Authority, Healthcare Revenue Bonds, Great River Medical Center, Series 2001,  5/11 at 100.00  Aa3  2,001,080 
  5.250%, 5/15/31 – AGM Insured       
1,000  Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C,  6/15 at 100.00  BBB  742,050 
  5.625%, 6/01/46       
  Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B:       
26,855  5.300%, 6/01/25 (Pre-refunded 6/01/11)  6/11 at 101.00  AAA  28,486,170 
3,950  5.600%, 6/01/35 (Pre-refunded 6/01/11)  6/11 at 101.00  AAA  4,247,396 
33,805  Total Iowa      35,476,696 
  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  747,800 
1,000  5.125%, 5/15/42  5/14 at 103.00  N/R  730,400 
2,000  Total Kansas      1,478,200 
  Kentucky – 3.5% (2.3% of Total Investments)      
1,000  Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds,  6/18 at 100.00  AAA  1,076,610 
  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–  18,937,524 
  System Revenue Bonds, Series 2001A, 5.125%, 5/15/27 – NPFG Insured       
19,500  Total Kentucky      20,014,134 
  Louisiana – 4.4% (2.8% of Total Investments)      
3,000  Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue  11/17 at 100.00  BB  3,104,850 
  Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32       
3,700  Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project,  5/17 at 100.00  Baa1  3,386,018 
  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  18,738,766 
  Series 2001B, 5.875%, 5/15/39       
26,590  Total Louisiana      25,229,634 
  Maine – 1.1% (0.7% 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+  4,637,015 
1,610  5.500%, 11/15/32 (Alternative Minimum Tax)  11/10 at 100.00  AA+  1,613,816 
6,220  Total Maine      6,250,831 
  Maryland – 2.6% (1.7% of Total Investments)      
1,000  Howard County, Maryland, Retirement Community Revenue Bonds, Vantage House, Series 2007B,  4/17 at 100.00  N/R  726,070 
  5.250%, 4/01/37       
1,570  Maryland Community Development Administration, Insured Multifamily Housing Mortgage Loan  7/11 at 100.00  AA2  1,585,119 
  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  1,439,940 
  Center, Series 2006A, 5.000%, 12/01/31       
10,600  Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995,  3/10 at 100.00  N/R  10,602,968 
  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–  491,253 
  Retirement Community, Series 2007, 4.750%, 7/01/34       
15,725  Total Maryland      14,845,350 
  Massachusetts – 2.8% (1.8% of Total Investments)      
1,375  Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007,  10/12 at 102.00  N/R  1,106,696 
  5.250%, 10/01/26       
1,000  Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital  7/15 at 100.00  BB–  666,710 
  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  1,624,320 
  University Issue, Series A (2009) Series B (2009) (Federally Taxable), 5.750%, 7/01/39       
4,860  Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 2008, Trust  6/18 at 100.00  AA  5,211,913 
  3145, 15.387%, 6/01/39 (IF)       
5,000  Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series  1/11 at 101.00  N/R  4,487,900 
  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  3,242,166 
  AGM Insured (UB)       
17,300  Total Massachusetts      16,339,705 
  Michigan – 9.6% (6.3% of Total Investments)      
15,000  Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site  No Opt. Call  AAA  16,544,250 
  Improvement Bonds, Series 2001A, 6.000%, 5/01/29 – AGM Insured (UB)       
2,000  Garden City Hospital Finance Authority, Michigan, Revenue Bonds, Garden City Hospital  8/17 at 100.00  N/R  1,318,600 
  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)  11,893,310 
  5.500%, 1/15/31 (Pre-refunded 7/15/11)       
1,165  Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I,  10/11 at 100.00  A+  1,227,199 
  5.500%, 10/15/18       
70  Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I, 5.500%,  10/11 at 100.00  A+ (4)  75,803 
  10/15/18 (Pre-refunded 10/15/11)       
1,355  Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Detroit Medical Center  2/10 at 100.00  Ba3  1,146,438 
  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  A (4)  3,814,123 
  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)  1,531,978 
2,500  5.625%, 11/15/31 (Pre-refunded 11/15/11)  11/11 at 101.00  A+ (4)  2,741,225 
3,500  Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series  12/16 at 100.00  Aa2  3,431,400 
  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  A1  11,609,461 
  Hospital, Series 2001M, 5.250%, 11/15/31 – NPFG Insured       
54,115  Total Michigan      55,333,787 
  Minnesota – 0.6% (0.4% of Total Investments)      
2,245  Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily  10/11 at 105.00  Aaa  2,320,275 
  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  1,086,938 
  Project, Series 2007-1, 5.000%, 8/01/36       
3,620  Total Minnesota      3,407,213 
  Mississippi – 0.9% (0.6% of Total Investments)      
2,155  Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage  5/10 at 102.00  AAA  2,168,727 
  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  3,081,480 
  Healthcare, Series 2004, 5.000%, 9/01/24 (UB)       
5,155  Total Mississippi      5,250,207 
  Missouri – 3.0% (2.0% of Total Investments)      
1,495  Cape Girardeau County Industrial Development Authority, Missouri, Health Facilities Revenue  6/17 at 100.00  N/R  1,289,408 
  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  740,780 
  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)  2,058,837 
  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 – NPFG Insured  12/11 at 100.00  AA–  3,554,877 
3,510  5.250%, 12/01/20 – NPFG Insured  12/11 at 100.00  AA–  3,741,414 
3,695  5.250%, 12/01/21 – NPFG Insured  12/11 at 100.00  AA–  3,938,611 
2,040  5.250%, 12/01/22 – NPFG Insured  12/11 at 100.00  AA–  2,153,363 
16,900  Total Missouri      17,477,290 
  Montana – 0.6% (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  3,714,200 
  2000, 8.000%, 7/01/20 (Alternative Minimum Tax)       
  Nebraska – 0.8% (0.5% of Total Investments)      
  Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2001D:       
1,290  5.250%, 9/01/21 (Alternative Minimum Tax)  9/11 at 100.00  AAA  1,290,116 
1,710  5.375%, 9/01/32 (Alternative Minimum Tax)  9/11 at 100.00  AAA  1,750,271 
1,005  Omaha Public Power District, Nebraska, Separate Electric System Revenue Bonds, Nebraska City  2/17 at 100.00  AA+  1,519,319 
  2, Series 2006A, 19.774%, 2/01/49 – AMBAC Insured (IF)       
4,005  Total Nebraska      4,559,706 
  Nevada – 2.8% (1.8% of Total Investments)      
10,000  Clark County, Nevada, Airport Revenue Bonds, Subordinte Lien Series 2010B, 5.750%, 7/01/42  1/20 at 100.00  Aa3  10,304,400 
  (WI/DD, Settling 2/03/10)       
2,000  Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas  7/10 at 100.00  Caa2  833,340 
  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  1/12 at 100.00  N/R  220,000 
  Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (5)       
170  Nevada Housing Division, Single Family Mortgage Bonds, Senior Series 1998A-1, 5.300%, 4/01/18  4/10 at 100.00  Aaa  173,924 
  (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)  4,670,223 
  (Pre-refunded 1/01/12) – FGIC Insured       
20,460  Total Nevada      16,201,887 
  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  2,045,320 
  2001, 5.500%, 10/01/21 – AGM Insured       
  New Jersey – 4.4% (2.9% of Total Investments)      
10,000  New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water  11/12 at 101.00  A2  9,417,200 
  Company, Series 2002A, 5.250%, 11/01/32 – AMBAC Insured (Alternative Minimum Tax)       
575  New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center,  7/13 at 100.00  Ba2  430,687 
  Series 2003, 5.500%, 7/01/33       
4,125  New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration  No Opt. Call  A1  4,631,220 
  Grants, Series 2002A, 5.500%, 9/15/13 – AMBAC Insured       
12,970  New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital  No Opt. Call  AA–  3,161,438 
  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–  6,587,800 
  0.000%, 12/15/28 – AMBAC Insured       
2,045  Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,  6/17 at 100.00  BBB  1,440,927 
  Series 2007-1A, 4.750%, 6/01/34       
49,715  Total New Jersey      25,669,272 
  New York – 4.5% (2.9% of Total Investments)      
900  Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter  4/17 at 100.00  N/R  726,300 
  Schools, Series 2007A, 5.000%, 4/01/32       
  Brooklyn Areba Local Development Corporation, New York, Payment in Lieu of Taxes Revenue       
  Bonds, Barclays Center Project, Series 2009:       
1,275  6.000%, 7/15/30  1/20 at 100.00  BBB–  1,305,677 
3,400  0.000%, 7/15/44  No Opt. Call  BBB–  290,224 
1,780  East Rochester Housing Authority, New York, GNMA Secured Revenue Bonds, Gates Senior Housing  10/11 at 101.00  AAA  1,802,624 
  Inc., Series 2001, 5.300%, 4/20/31       
5,010  Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%,  2/17 at 100.00  A  4,567,367 
  2/15/47 – NPFG Insured       
4,155  Monroe County Airport Authority, New York, Revenue Refunding Bonds, Greater Rochester  No Opt. Call  A  4,435,047 
  International Airport, Series 1999, 5.750%, 1/01/13 – NPFG Insured (Alternative Minimum Tax)       
8,000  New York City Industrial Development Agency, New York, American Airlines-JFK International  8/16 at 101.00  B–  7,969,280 
  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  1,794,765 
  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)  881,382 
  (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–  2,101,440 
  State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16       
29,020  Total New York      25,874,106 
  North Carolina – 1.2% (0.8% of Total Investments)      
1,710  Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue  1/18 at 100.00  AA–  1,696,867 
  Bonds, Series 2008, Trust 1149, 15.172%, 1/15/47 (IF)       
1,200  Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care System Revenue Bonds,  1/17 at 100.00  AA–  1,215,456 
  Carolinas Health Care, Series 2007A, 5.000%, 1/15/31       
1,750  Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA  1/15 at 100.00  AAA  2,021,740 
  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  A  1,775,008 
  5.500%, 1/01/13       
6,260  Total North Carolina      6,709,071 
  Ohio – 1.1% (0.7% of Total Investments)      
  Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue       
  Bonds, Senior Lien, Series 2007A-2:       
3,165  5.125%, 6/01/24  6/17 at 100.00  BBB  2,941,171 
710  5.875%, 6/01/30  6/17 at 100.00  BBB  612,964 
685  5.750%, 6/01/34  6/17 at 100.00  BBB  569,598 
1,570  5.875%, 6/01/47  6/17 at 100.00  BBB  1,204,598 
1,235  Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program Residential Mortgage  3/10 at 100.00  Aaa  1,259,663 
  Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 – AGM Insured (Alternative Minimum Tax)       
7,365  Total Ohio      6,587,994 
  Oklahoma – 1.9% (1.3% of Total Investments)      
  Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007:       
4,370  5.000%, 2/15/37  2/17 at 100.00  A  4,052,607 
955  5.000%, 2/15/42  2/17 at 100.00  A  872,727 
6,305  Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health  12/16 at 100.00  AA  6,240,248 
  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  86,361 
  System, Series 2006, Trust 3500, 8.479%, 12/15/36 (IF)       
11,718  Total Oklahoma      11,251,943 
  Oregon – 2.6% (1.7% of Total Investments)      
10,000  Oregon Housing and Community Services Department, Multifamily Housing Revenue Bonds, Series  7/10 at 100.00  AAA  10,025,800 
  2000, 6.050%, 7/01/42 (Alternative Minimum Tax) (UB)       
4,700  Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds,  11/11 at 101.00  AA–  4,814,821 
  PeaceHealth Project, Series 2001, 5.250%, 11/15/21 – AMBAC Insured       
14,700  Total Oregon      14,840,621 
  Pennsylvania – 1.8% (1.2% 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  2,181,740 
2,000  9.250%, 11/15/30 (Pre-refunded 11/15/10)  11/10 at 102.00  AAA  2,181,740 
500  Bucks County Industrial Development Authority, Pennsylvania, Charter School Revenue Bonds,  3/17 at 100.00  BBB  417,095 
  School Lane Charter School, Series 2007A, 5.000%, 3/15/37       
3,500  Pennsylvania Economic Development Financing Authority, Senior Lien Resource Recovery Revenue  7/10 at 100.00  CC  1,929,340 
  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)  3,585,722 
  8/01/16 (Pre-refunded 8/01/12) – FGIC Insured       
11,205  Total Pennsylvania      10,295,637 
  Puerto Rico – 0.4% (0.3% of Total Investments)      
2,500  Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A,  8/17 at 100.00  AA–  2,465,125 
  5.250%, 8/01/57       
  South Carolina – 1.3% (0.8% of Total Investments)      
6,850  South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series 2001A, 5.500%,  10/11 at 100.00  A1 (4)  7,409,371 
  10/01/22 (Pre-refunded 10/01/11) – AMBAC Insured       
  Tennessee – 1.7% (1.1% of Total Investments)      
3,680  Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue  1/17 at 30.07  A–  508,834 
  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  5,384,118 
  5.500%, 3/01/14 – AGM Insured (Alternative Minimum Tax)       
275  Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds,  9/16 at 100.00  BBB+  244,420 
  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  464,000 
2,800  5.500%, 11/01/46  11/17 at 100.00  N/R  1,624,000 
745  Tennessee Housing Development Agency, Homeownership Program Bonds, Series 1998-2, 5.350%,  7/10 at 100.00  AA+  745,335 
  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+  765,974 
  7/01/22 (Alternative Minimum Tax)       
14,270  Total Tennessee      9,736,681 
  Texas – 20.1% (13.1% of Total Investments)      
5,445  Board of Regents, University of Texas System, Financing System Revenue Bonds, Series 2006F,  2/17 at 100.00  AAA  5,296,950 
  4.250%, 8/15/36 (UB)       
595  Brushy Creek Municipal Utility District, Williamson County, Texas, Combination Unlimited Tax  6/10 at 100.00  Aa3  595,452 
  and Revenue Refunding Bonds, Series 2001, 5.125%, 6/01/26 – AGM 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  1,979,295 
2,005  5.000%, 2/15/21 – FGIC Insured  2/11 at 100.00  AA  2,077,741 
3,850  Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds,  11/11 at 100.00  A+  3,864,322 
  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  4,948,250 
  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  4,310,963 
6,000  Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2001B,  No Opt. Call  AA (4)  7,267,680 
  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 –  7/10 at 100.00  A  7,014,140 
  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  A  2,678,040 
2,905  5.500%, 7/01/14 – FGIC Insured (Alternative Minimum Tax)  1/12 at 100.00  A  3,057,483 
14,200  Hutto Independent School District, Williamson County, Texas, General Obligation Bonds, Series  8/16 at 100.00  AAA  14,235,358 
  2007A, 4.750%, 8/01/43 (UB)       
  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  N/R  8,620,275 
8,500  5.500%, 8/15/41 – AMBAC Insured  8/11 at 100.00  N/R  8,424,265 
10,700  Laredo Independent School District, Webb County, Texas, General Obligation Refunding Bonds,  8/11 at 100.00  AAA  11,198,192 
  Series 2001, 5.000%, 8/01/25       
2,500  Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston  No Opt. Call  BBB+  2,346,425 
  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  3,193,817 
  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  3,122,708 
  Series 2001B, 5.500%, 10/01/17 – FGIC Insured (Alternative Minimum Tax)       
7,700  Tarrant County, Texas, Cultural & Educational Facilities Financing Corporation, Revenue Bonds,  2/17 at 100.00  AA–  7,622,384 
  Series 2007A, 5.000%, 2/15/36 (UB)       
9,605  Texas Department of Housing and Community Affairs, Residential Mortgage Revenue Bonds, Series  7/11 at 100.00  AAA  9,464,575 
  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  2,110,787 
9,110  0.000%, 8/15/40  8/15 at 27.11  AAA  1,773,444 
7,110  0.000%, 8/15/44  8/15 at 21.88  AAA  1,091,101 
134,505  Total Texas      116,293,647 
  Utah – 0.5% (0.3% of Total Investments)      
  Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E:       
840  5.200%, 1/01/18 (Alternative Minimum Tax)  7/11 at 100.00  AA–  850,685 
255  5.500%, 1/01/23 (Alternative Minimum Tax)  7/11 at 100.00  Aaa  257,379 
  Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1:       
1,245  4.950%, 7/01/18 (Alternative Minimum Tax)  7/11 at 100.00  AA–  1,261,882 
370  5.300%, 7/01/23 (Alternative Minimum Tax)  7/11 at 100.00  Aaa  370,163 
2,710  Total Utah      2,740,109 
  Virginia – 0.2% (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  902,800 
  Village, Series 2005, 5.375%, 12/01/28       
  Washington – 16.3% (10.6% of Total Investments)      
  Bellingham Housing Authority, Washington, Housing Revenue Bonds, Varsity Village Project,       
  Series 2001A:       
1,000  5.500%, 12/01/27 – NPFG Insured  12/11 at 100.00  A1  1,017,570 
2,000  5.600%, 12/01/36 – NPFG Insured  12/11 at 100.00  A1  2,017,880 
2,500  King County, Washington, Sewer Revenue Bonds, Series 2009, 5.250%, 1/01/42  1/19 at 100.00  AA+  2,628,000 
12,955  Port of Seattle, Washington, Passenger Facility Charge Revenue Bonds, Series 1998A, 5.300%,  6/10 at 100.50  A  13,033,507 
  12/01/16 – AMBAC Insured (Alternative Minimum Tax)       
  Port of Seattle, Washington, Revenue Bonds, Series 2001:       
2,535  5.625%, 4/01/18 – FGIC Insured (Alternative Minimum Tax) (UB)  10/11 at 100.00  Aa2  2,587,855 
16,000  5.100%, 4/01/24 – FGIC Insured (Alternative Minimum Tax) (UB)  4/10 at 100.00  Aa2  16,000,160 
2,090  Public Utility District 1, Benton County, Washington, Electric Revenue Refunding Bonds, Series  11/11 at 100.00  AAA  2,257,116 
  2001A, 5.625%, 11/01/15 – AGM Insured       
5,680  Seattle, Washington, Municipal Light and Power Revenue Refunding and Improvement Bonds,  3/11 at 100.00  AAA  5,922,877 
  Series 2001, 5.500%, 3/01/18 – AGM Insured       
4,530  Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, Series 2001, 5.250%, 12/01/21  12/11 at 100.00  AA (4)  4,914,189 
  (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)  4,016,038 
  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)  5,968,213 
25,435  5.625%, 10/01/31 (Pre-refunded 10/01/11) – RAAI Insured  10/11 at 101.00  BBB– (4)  27,753,908 
  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  BBB+  3,056,536 
2,915  5.375%, 12/01/18 – AMBAC Insured  12/11 at 101.00  BBB+  2,952,604 
89,845  Total Washington      94,126,453 
  Wisconsin – 4.5% (3.0% 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)  4,039,969 
1,850  5.000%, 1/01/21 (Pre-refunded 1/01/12) – FGIC Insured  1/12 at 100.00  N/R (4)  2,004,031 
12,250  La Crosse, Wisconsin, Pollution Control Revenue Refunding Bonds, Dairyland Power Cooperative,  12/10 at 100.00  A3  12,540,938 
  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+  874,600 
  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–  356,195 
  Health Obligated Group, Series 2001, 5.375%, 10/01/30       
3,650  Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Froedtert and Community  10/11 at 101.00  AA– (4)  3,961,199 
  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+  2,516,500 
  Series 2001B, 6.000%, 2/15/25       
50  Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan  8/13 at 100.00  BBB+  43,555 
  Services Inc., Series 2003A, 5.125%, 8/15/33       
25,355  Total Wisconsin      26,336,987 
$ 946,298  Total Municipal Bonds (cost $879,538,683)      878,361,040 
Shares Description (1)     Value
  Investment Companies – 0.6% (0.4% of Total Investments)      
10,766  BlackRock MuniHoldings Fund Inc.      $ 159,014 
26,880  Dreyfus Strategic Municipal Fund      228,480 
131,278  DWS Municipal Income Trust      1,547,768 
43,420  PIMCO Municipal Income Fund II      478,488 
43,020  Van Kampen Investment Grade Municipal Trust      603,571 
30,000  Van Kampen Municipal Opportunity Trust      411,900 
  Total Investment Companies (cost $3,388,285)      3,429,221 
  Total Long-Term Investments (cost $882,926,968) – 152.7%      881,790,261 
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Short-Term Investments – 0.4% (0.3% of Total Investments)      
$     2,325  Maryland Transportation Authority, Revenue Bonds, Transportation Facilities Projects, Variable  7/17 at 100.00  A-1  $ 2,325,000 
  Rate Demand Obligations, Series 2008, Trust R-11436, 0.200%, 7/01/34 – FSA Insured (6)       
  Total Short-Term Investments (cost $2,325,000)      2,325,000 
  Total Investments (cost $885,251,968) – 153.1%      884,115,261 
  Floating Rate Obligations – (13.1)%      (75,908,650)
  Other Assets Less Liabilities – 1.0%      6,382,991 
  Auction Rate Preferred Shares, at Liquidation Value – (41.0)% (7)      (236,950,000)
  Net Assets Applicable to Common Shares – 100%      $ 577,639,602 

 
 
 
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, 2010:
 
  Level 1 Level 2 Level 3 Total
Investments:         
Municipal Bonds  $            —  $878,361,040  $ —  $878,361,040 
Investment Companies  3,429,221  —  —  3,429,221 
Short-Term Investments  —  2,325,000  —  2,325,000 
Total  $3,429,221  $880,686,040  $ —  $884,115,261 

Income Tax Information
 
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
 
At January 31, 2010, the cost of investments was $812,490,021.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at January 31, 2010, were as follows:
 
Gross unrealized:   
  Appreciation  $ 32,128,688 
  Depreciation  (36,353,547)
Net unrealized appreciation (depreciation) of investments  $ (4,224,859) 

(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. 
(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)  The Fund’s Adviser has concluded this issue is not likely to meet its future interest payment obligations 
  and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. 
(6)  Investment 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. 
(7)  Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 26.8%. 
N/R  Not rated. 
WI/DD  Purchased on a when-issued or delayed delivery basis. 
(ETM)  Escrowed to maturity. 
(IF)  Inverse floating rate investment. 
(UB)  Underlying bond of an inverse floating rate trust reflected as a financing transaction. 

 
Item 2. Controls and Procedures.

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

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

 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
(Registrant)  Nuveen Dividend Advantage Municipal Fund 3 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         April 1, 2010        
 
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, 2010        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date        April 1, 2010