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 811-09453
 
Nuveen Michigan Dividend Advantage Municipal Fund
(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:             2/28          
 
Date of reporting period:          11/30/12         
 
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 Michigan Dividend Advantage Municipal Fund (NZW)
     
   
November 30, 2012
     
Principal
   
Optional Call
   
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
Value
   
Consumer Staples – 5.5% (3.7% of Total Investments)
     
$    1,750
 
Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds,
6/18 at 100.00
BB–
$   1,811,775
   
Series 2008A, 6.875%, 6/01/42
     
   
Education and Civic Organizations – 11.7% (7.8% of Total Investments)
     
250
 
Conner Creek Academy East, Michigan, Public School Revenue Bonds, Series 2007, 5.250%, 11/01/36
11/16 at 100.00
BB–
216,113
85
 
Michigan Finance Authority, Public School Academy Limited Obligation Revenue and Refunding
10/21 at 100.00
BBB–
98,597
   
Bonds, Detroit Service Learning Academy Project, Series 2011, 7.000%, 10/01/31
     
1,150
 
Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds,
3/13 at 100.00
N/R
1,150,207
   
Kettering University, Series 2001, 5.000%, 9/01/26 – AMBAC Insured
     
250
 
Michigan Public Educational Facilities Authority, Charter School Revenue Bonds, American
12/17 at 100.00
N/R
253,613
   
Montessori Academy, Series 2007, 6.500%, 12/01/37
     
1,500
 
Michigan State University, General Revenue Bonds, Refunding Series 2010C, 5.000%, 2/15/40
2/20 at 100.00
Aa1
1,712,415
350
 
Michigan Technological University, General Revenue and Refunding Bonds, Series 2012A,
10/21 at 100.00
Aa3
406,473
   
5.000%, 10/01/34
     
3,585
 
Total Education and Civic Organizations
   
3,837,418
   
Health Care – 14.7% (9.8% of Total Investments)
     
500
 
Grand Traverse County Hospital Financial Authority, Michigan, Revenue Bonds, Munson
7/21 at 100.00
AA–
569,705
   
Healthcare, Refunding Series 2011A, 5.000%, 7/01/29
     
90
 
Jackson County Hospital Finance Authority, Michigan, Hospital Revenue Bonds, Alligiance
6/20 at 100.00
AA–
100,444
   
Health, Refunding Series 2010A, 5.000%, 6/01/37 – AGM Insured
     
   
Kent Hospital Finance Authority, Michigan, Revenue Refunding Bonds, Spectrum Health System,
     
   
Refunding Series 2011C:
     
500
 
5.000%, 1/15/31
1/22 at 100.00
AA
580,375
500
 
5.000%, 1/15/42
1/22 at 100.00
AA
566,275
250
 
Michigan Finance Authority, Hospital Revenue Refunding Bonds, Crittenton Hospital Medical
No Opt. Call
A–
272,180
   
Center, Series 2012A, 5.000%, 6/01/39
     
   
Michigan Finance Authority, Revenue Bonds, Oakwood Obligated Group, Refunding Series 2012:
     
250
 
5.000%, 11/01/25
11/22 at 100.00
A
294,190
250
 
5.000%, 11/01/42
11/22 at 100.00
A
278,860
1,000
 
Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011,
12/21 at 100.00
AA
1,141,930
   
5.000%, 12/01/39
     
   
Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry Ford Health System,
     
   
Refunding Series 2009:
     
150
 
5.000%, 11/15/20
11/19 at 100.00
A1
178,323
475
 
5.750%, 11/15/39
11/19 at 100.00
A1
556,966
150
 
Michigan State Hospital Finance Authority, Hospital Revenue Bonds, MidMichigan Obligated Group,
6/19 at 100.00
AA–
173,208
   
Series 2009A, 5.875%, 6/01/39 – AGC Insured
     
100
 
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont
9/18 at 100.00
A1
130,470
   
Hospital, Refunding Series 2009V, 8.250%, 9/01/39
     
4,215
 
Total Health Care
   
4,842,926
   
Housing/Multifamily – 7.5% (5.0% of Total Investments)
     
1,700
 
Michigan Housing Development Authority, GNMA Collateralized Limited Obligation Multifamily
8/14 at 100.00
Aaa
1,736,397
   
Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31 (Alternative
     
   
Minimum Tax)
     
370
 
Michigan Housing Development Authority, Multifamily Housing Revenue Bonds, Series 1988A,
11/14 at 101.00
AA
382,850
   
3.375%, 11/01/16 (Alternative Minimum Tax)
     
200
 
Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2006D, 5.125%,
7/15 at 100.00
AA
207,822
   
4/01/31 – AGM Insured (Alternative Minimum Tax)
     
100
 
Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2009A,
10/18 at 100.00
AA
110,683
   
5.700%, 10/01/39
     
45
 
Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2012D, 3.950%,
4/22 at 100.00
AA
45,830
   
10/01/37 (WI/DD, Settling 12/05/12)
     
2,415
 
Total Housing/Multifamily
   
2,483,582
   
Housing/Single Family – 2.9% (1.9% of Total Investments)
     
470
 
Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series
6/20 at 100.00
AA+
518,669
   
2010C, 5.500%, 12/01/28 (Alternative Minimum Tax)
     
375
 
Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series
6/21 at 100.00
AA+
420,034
   
2011A, 4.600%, 12/01/26
     
845
 
Total Housing/Single Family
   
938,703
   
Industrials – 1.6% (1.0% of Total Investments)
     
500
 
Michigan Strategic Fund, Limited Obligation Revenue Bonds, Republic Services Inc., Series
No Opt. Call
BBB
512,345
   
2001, 4.250%, 8/01/31 (Mandatory put 4/01/14) (Alternative Minimum Tax)
     
   
Tax Obligation/General – 38.4% (25.6% of Total Investments)
     
345
 
Ann Arbor Public School District, Washtenaw County, Michigan, General Obligation Bonds,
5/22 at 100.00
Aa2
427,931
   
Refunding Series 2012, 5.000%, 5/01/29
     
200
 
Ann Arbor, Michigan, General Obligation Bonds, Court & Police Facilities Capital Improvement
5/18 at 100.00
AA+
231,838
   
Series 2008, 5.000%, 5/01/38
     
500
 
Byron Center Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2012,
5/21 at 100.00
AA–
531,665
   
4.000%, 5/01/33
     
437
 
Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation
5/17 at 100.00
Aa2
529,998
   
Bonds, Tender Option Bond Trust 2008-1096, 8.012%, 5/01/32 – NPFG Insured (IF)
     
   
Comstock Park Public Schools, Kent County, Michigan, General Obligation Bonds, School Building
     
   
& Site, Series 2011B:
     
150
 
5.500%, 5/01/36
5/21 at 100.00
AA–
177,776
290
 
5.500%, 5/01/41
5/21 at 100.00
AA–
343,464
1,040
 
Detroit-Wayne County Stadium Authority, Michigan, Wayne County Limited Tax General Obligation
No Opt. Call
AA–
1,205,038
   
Bonds, Building Authority Stadium Refunding Series 2012, 5.000%, 10/01/19 – AGM Insured
     
300
 
Grand Rapids, Michigan, General Obligation Bonds, Capital Improvement Series 2007, 5.000%,
9/17 at 100.00
AA
345,084
   
9/01/27 – NPFG Insured
     
430
 
Lowell Area Schools, Kent and Ionia Counties, Michigan, General Obligation Bonds, Series 2007,
5/17 at 100.00
Aa2
484,821
   
5.000%, 5/01/37 – AGM Insured
     
100
 
Michigan Finance Authority, Revenue Bonds, Detroit City School District, Series 2012,
No Opt. Call
A+
116,932
   
5.000%, 6/01/20
     
500
 
Michigan State, General Obligation Bonds, Environmental Program, Refunding Series 2011A,
12/21 at 100.00
Aa2
640,225
   
5.000%, 12/01/22
     
100
 
Michigan State, General Obligation Bonds, Environmental Program, Series 2009A, 5.500%, 11/01/25
5/19 at 100.00
Aa2
122,199
1,410
 
New Haven Community Schools, Macomb County, Michigan, General Obligation Bonds, Series 2006,
5/16 at 100.00
Aa2
1,581,400
   
5.000%, 5/01/25 – AGM Insured
     
420
 
Oakland Intermediate School District, Oakland County, Michigan, General Obligation Bonds,
5/17 at 100.00
Aaa
475,486
   
Series 2007, 5.000%, 5/01/36 – AGM Insured
     
1,000
 
Ottawa County, Michigan, Water Supply System, General Obligation Bonds, Series 2007, 5.000%,
8/17 at 100.00
Aaa
1,135,760
   
8/01/30 – NPFG Insured (UB)
     
235
 
Parchment School District, Kalamazoo County, Michigan, General Obligation Bonds, Tender Option
No Opt. Call
Aa2
299,162
   
Bond Trust 2836, 11.153%, 5/01/15 – AGM Insured (IF)
     
750
 
Plainwell Community Schools, Allegan County, Michigan, General Obligation Bonds, School
5/18 at 100.00
Aa2
862,305
   
Building & Site, Series 2008, 5.000%, 5/01/28 – AGC Insured
     
200
 
Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Refunding Series
No Opt. Call
AA–
246,472
   
2012, 5.000%, 5/01/19
     
100
 
Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2008, 5.000%,
5/18 at 100.00
Aa2
114,604
   
5/01/33 – AGM Insured
     
25
 
South Haven, Van Buren County, Michigan, General Obligation Bonds, Capital Improvement Series
12/19 at 100.00
AA–
29,288
   
2009, 5.125%, 12/01/33 – AGC Insured
     
35
 
Thornapple Kellogg School District, Barry County, Michigan, General Obligation Bonds, Series
5/17 at 100.00
Aa2
39,529
   
2007, 5.000%, 5/01/32 – NPFG Insured
     
100
 
Trenton Public Schools District, Michigan, General Obligation Bonds, Series 2008, 5.000%,
5/18 at 100.00
Aa2
114,120
   
5/01/34 – AGM Insured
     
225
 
Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building
5/18 at 100.00
Aa2
254,009
   
and Site, Series 2008, 5.000%, 5/01/38 – AGM Insured
     
65
 
Wayne Charter County, Michigan, General Obligation Bonds, Building Improvements, Series 2009A,
12/19 at 100.00
BBB+
76,627
   
6.750%, 11/01/39
     
1,690
 
Wayne Charter County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds,
12/12 at 100.00
BBB+
1,690,828
   
Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 – NPFG Insured
     
500
 
Wayne Westland Community Schools, Michigan, General Obligation Bonds, Series 2004, 5.000%,
11/14 at 100.00
Aa2
541,590
   
5/01/17 – AGM Insured
     
11,147
 
Total Tax Obligation/General
   
12,618,151
   
Tax Obligation/Limited – 20.3% (13.6% of Total Investments)
     
265
 
Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42
1/22 at 100.00
A
303,028
   
Grand Rapids Building Authority, Kent County, Michigan, General Obligation Bonds, Refunding
     
   
Series 2011:
     
560
 
5.000%, 10/01/28
10/21 at 100.00
AA
653,682
500
 
5.000%, 10/01/30
10/21 at 100.00
AA
580,255
500
 
5.000%, 10/01/31
10/21 at 100.00
AA
578,985
330
 
Kalkaska County Hospital Authority, Michigan, Hospital Revenue Bonds, Series 2007,
No Opt. Call
A–
338,369
   
5.125%, 5/01/14
     
420
 
Michigan Finance Authority, Unemployment Obligation Assessment Revenue Bonds, Series 2012B,
7/16 at 100.00
AAA
479,942
   
5.000%, 7/01/22
     
   
Michigan State Building Authority, Revenue Bonds, Refunding Series 2006IA:
     
1,520
 
0.000%, 10/15/28 – AGM Insured
10/16 at 55.35
AA
748,083
720
 
5.000%, 10/15/36 – FGIC Insured
10/16 at 100.00
Aa3
803,304
   
Michigan State Trunk Line Fund Refunding Bonds, Series 2009:
     
1,160
 
4.000%, 11/15/32
11/21 at 100.00
AA+
1,276,847
150
 
5.000%, 11/15/36
11/21 at 100.00
AA+
178,538
700
 
Virgin Islands Public Finance Authority, Revenue Bonds, Senior Lien Matching Fund Loan
10/19 at 100.00
BBB+
748,160
   
Notes, Series 2009A-1, 5.000%, 10/01/39
     
6,825
 
Total Tax Obligation/Limited
   
6,689,193
   
Transportation – 2.6% (1.7% of Total Investments)
     
250
 
Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Airport,
No Opt. Call
A2
250,033
   
Refunding Series 2007, 5.000%, 12/01/12 – FGIC Insured
     
500
 
Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Airport,
No Opt. Call
A
600,970
   
Refunding Series 2011A, 5.000%, 12/01/21 (Alternative Minimum Tax)
     
750
 
Total Transportation
   
851,003
   
U.S. Guaranteed – 12.6% (8.4% of Total Investments) (4)
     
720
 
Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2003A, 5.000%,
7/13 at 100.00
AA– (4)
739,994
   
7/01/17 (Pre-refunded 7/01/13) – AGM Insured
     
525
 
Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Oakwood Obligated Group,
4/13 at 100.00
AA+ (4)
534,555
   
Series 2002A, 5.750%, 4/01/32 (Pre-refunded 4/01/13)
     
   
Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital,
     
   
Series 2005:
     
425
 
5.000%, 5/15/30 (Pre-refunded 5/15/15)
5/15 at 100.00
AA+ (4)
471,890
335
 
5.000%, 5/15/37 (Pre-refunded 5/15/15)
5/15 at 100.00
AA+ (4)
371,961
   
Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital,
     
   
Series 2005A:
     
500
 
5.000%, 5/15/26 (Pre-refunded 5/15/15)
5/15 at 100.00
Baa3 (4)
554,385
400
 
5.000%, 5/15/34 (Pre-refunded 5/15/15)
5/15 at 100.00
Baa3 (4)
443,508
   
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E:
     
85
 
6.000%, 8/01/26 (ETM)
No Opt. Call
BBB– (4)
125,691
615
 
6.000%, 8/01/26 (ETM)
No Opt. Call
AA+ (4)
909,413
3,605
 
Total U.S. Guaranteed
   
4,151,397
   
Utilities – 11.7% (7.8% of Total Investments)
     
1,115
 
Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds,
7/13 at 100.00
AA–
1,144,726
   
Series 2003A, 5.000%, 7/01/21 – AGM Insured
     
   
Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds,
     
   
Series 2008A:
     
50
 
5.000%, 7/01/28
7/18 at 100.00
AA–
56,465
750
 
5.000%, 7/01/32
7/18 at 100.00
AA–
846,713
   
Lansing Board of Water and Light, Michigan, Utility System Revenue Bonds, Tender Option Bond
     
   
Trust 4700:
     
100
 
17.800%, 7/01/37 (IF) (5)
7/21 at 100.00
AA–
168,904
250
 
17.954%, 7/01/37 (IF) (5)
7/21 at 100.00
AA–
422,260
250
 
Michigan Public Power Agency, AFEC Project Revenue Bonds, Series 2012A, 5.000%,
1/22 at 100.00
A2
274,373
   
1/01/43 – AGM Insured
     
   
Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 Project, Series 2011:
     
500
 
5.000%, 1/01/26 – AGM Insured
1/21 at 100.00
AA–
587,195
290
 
5.000%, 1/01/27 – AGM Insured
1/21 at 100.00
AA–
338,271
3,305
 
Total Utilities
   
3,838,907
   
Water and Sewer – 20.5% (13.7% of Total Investments)
     
250
 
Detroit Water and Sewerage Department, Michigan, Sewage Disposal System Revenue Bonds,
7/22 at 100.00
AA–
275,703
   
Refunding Senior Lien Series 2012A, 5.000%, 7/01/39 – AGM Insured
     
1,000
 
Detroit Water Supply System, Michigan, Water Supply System Revenue Senior Lien Bonds, Series
7/16 at 100.00
AA–
1,060,670
   
2006A, 5.000%, 7/01/34 – AGM Insured
     
1,000
 
Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2001B, 5.500%,
No Opt. Call
A
1,219,930
   
7/01/29 – FGIC Insured
     
280
 
Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2003A, 5.000%,
7/13 at 100.00
AA
285,130
   
7/01/17 – AGM Insured
     
490
 
Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien Series 2011A, 5.250%, 7/01/41
7/21 at 100.00
A+
533,193
125
 
Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 2008, 5.000%, 1/01/38
1/18 at 100.00
AA+
143,732
150
 
Grand Rapids, Michigan, Water Supply System Revenue Bonds, Series 2009, 5.100%,
1/19 at 100.00
AA
175,441
   
1/01/39 – AGC Insured
     
140
 
Michigan Finance Authority, State Revolving Fund Revenue Bonds, Clean Water Series 2012,
10/22 at 100.00
AAA
173,309
   
5.000%, 10/01/32
     
1,000
 
Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue Bonds, Series 2005,
10/15 at 100.00
AAA
1,125,559
   
5.000%, 10/01/19
     
500
 
Michigan Municipal Bond Authority, Water Revolving Fund Revenue Bonds, Series 2007,
10/17 at 100.00
AAA
591,329
   
5.000%, 10/01/23
     
500
 
Port Huron, Michigan, Water Supply System Revenue Bonds, Series 2011, 5.250%, 10/01/31
10/21 at 100.00
A
571,089
500
 
Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A,
7/18 at 100.00
Baa2
529,699
   
6.000%, 7/01/44
     
50
 
Saginaw, Michigan, Water Supply System Revenue Bonds, Series 2008, 5.250%,
7/18 at 100.00
A
56,513
   
7/01/22 – NPFG Insured
     
5,985
 
Total Water and Sewer
   
6,741,297
$ 44,927
 
Total Investments (cost $44,170,028) – 150.0%
   
49,316,697
   
Floating Rate Obligations – (2.0)%
   
(665,000)
   
MuniFund Term Preferred Shares, at Liquidation Value – (49.6)% (6)
   
(16,313,000)
   
Other Assets Less Liabilities – 1.6%
   
546,785
   
Net Assets Applicable to Common Shares – 100%
   
$ 32,885,482
 
 
 
 
 

 
 
 
Fair Value Measurements
 
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
 
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
 
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
 
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:
 
         
 
Level 1
Level 2
Level 3
Total
Long-Term Investments*:
       
Municipal Bonds
$ —
$49,316,697
$ —
$49,316,697
* Refer to the Fund’s Portfolio of Investments for industry classifications.
       
 
 
The Nuveen funds’ Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds’ pricing policies, and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
 
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
 
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.
 
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 November 30, 2012, the cost of investments was $43,525,657.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2012, were as follows:
 
   
Gross unrealized:
 
Appreciation
$5,182,199
Depreciation
(55,966)
Net unrealized appreciation (depreciation) of investments
$5,126,233
 
 
     
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common
   
shares unless otherwise noted.
(2)
 
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption.
   
There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities
   
may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service,
   
Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s
   
or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by
   
any of these national rating agencies.
(4)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities,
   
which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or
   
agency securities are regarded as having an implied rating equal to the rating of such securities.
(5)
 
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for
   
investments in inverse floating rate transactions.
(6)
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.1%.
N/R
 
Not rated.
WI/DD
 
Investment, or portion of investment, purchased on a when-issued or delayed delivery basis.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction.
 
 
 
 
 

 
 
Item 2. Controls and Procedures.

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

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

 
 
 

 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
(Registrant)   Nuveen Michigan Dividend Advantage Municipal Fund 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date:          January 29, 2013        
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
By (Signature and Title)     /s/ Gifford R. Zimmerman                    
                                                    Gifford R. Zimmerman
                                                  Chief Administrative Officer (principal executive officer) 
 
Date:          January 29, 2013        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date:          January 29, 2013        
 

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