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:          11/30/11         
 
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, 2011  
     
Principal  
   
Optional Call  
   
Amount (000)  
 
Description (1)  
Provisions (2)  
Ratings (3)  
Value  
   
Consumer Staples – 3.8% (2.5% of Total Investments)  
     
$ 1,250  
 
Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds,  
6/18 at 100.00  
B2  
$ 1,122,075  
   
Series 2008A, 6.875%, 6/01/42  
     
   
Education and Civic Organizations – 10.5% (6.8% 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+  
180,608  
85  
 
Michigan Finance Authority, Public School Academy Limited Obligation Revenue and Refunding  
10/21 at 100.00  
BBB–  
85,000  
   
Bonds, Detroit Service Learning Academy Project, Series 2011, 7.000%, 10/01/31 (WI/DD,  
     
   
Settling 12/13/11)  
     
1,150  
 
Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds,  
3/12 at 100.00  
N/R  
1,042,544  
   
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  
217,250  
   
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  
1,572,405  
3,235  
 
Total Education and Civic Organizations  
   
3,097,807  
   
Health Care – 26.4% (17.2% of Total Investments)  
     
500  
 
Grand Traverse County Hospital Financial Authority, Michigan, Revenue Bonds, Munson  
7/21 at 100.00  
A1  
500,920  
   
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–  
90,340  
   
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  
509,325  
500  
 
5.000%, 1/15/42  
No Opt. Call  
AA  
497,270  
1,000  
 
Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011,  
No Opt. Call  
AA  
1,000,390  
   
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  
162,581  
475  
 
5.750%, 11/15/39  
11/19 at 100.00  
A1  
487,635  
775  
 
Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Oakwood Obligated Group,  
4/13 at 100.00  
A  
779,828  
   
Series 2002A, 5.750%, 4/01/32  
     
150  
 
Michigan State Hospital Finance Authority, Hospital Revenue Bonds, MidMichigan Obligated  
6/19 at 100.00  
AA–  
157,467  
   
Group, Series 2009A, 5.875%, 6/01/39 – AGC Insured  
     
80  
 
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, McLaren  
No Opt. Call  
Aa3  
79,955  
   
Healthcare Corporation, Series 1998A, 5.000%, 6/01/28  
     
915  
 
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health  
12/12 at 100.00  
AA  
921,469  
   
Credit Group, Series 2002C, 5.375%, 12/01/30  
     
   
Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital,  
     
   
Series 2005A:  
     
500  
 
5.000%, 5/15/26  
5/15 at 100.00  
Baa3  
469,580  
400  
 
5.000%, 5/15/34  
5/15 at 100.00  
Baa3  
350,104  
100  
 
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont  
9/18 at 100.00  
A1  
118,893  
   
Hospital, Refunding Series 2009V, 8.250%, 9/01/39  
     
1,700  
 
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont  
5/12 at 100.00  
A1  
1,699,966  
   
Hospital, Series 2001M, 5.250%, 11/15/31 – NPFG Insured  
     
7,835  
 
Total Health Care  
   
7,825,723  
   
Housing/Multifamily – 8.5% (5.6% of Total Investments)  
     
1,700  
 
Michigan Housing Development Authority, GNMA Collateralized Limited Obligation Multifamily  
8/12 at 102.00  
Aaa  
1,724,871  
   
Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31 (Alternative  
     
   
Minimum Tax)  
     
500  
 
Michigan Housing Development Authority, Multifamily Housing Revenue Bonds, Series 1988A,  
11/14 at 101.00  
AA  
500,500  
   
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  
202,090  
   
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  
104,533  
   
5.700%, 10/01/39  
     
2,500  
 
Total Housing/Multifamily  
   
2,531,994  
   
Housing/Single Family – 3.3% (2.1% of Total Investments)  
     
500  
 
Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series  
6/20 at 100.00  
AAA  
510,720  
   
2010C, 5.500%, 12/01/28 (Alternative Minimum Tax)  
     
455  
 
Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series  
6/21 at 100.00  
AAA  
469,574  
   
2011A, 4.600%, 12/01/26  
     
955  
 
Total Housing/Single Family  
   
980,294  
   
Industrials – 1.7% (1.1% of Total Investments)  
     
500  
 
Michigan Strategic Fund, Limited Obligation Revenue Bonds, Republic Services Inc., Series  
No Opt. Call  
BBB  
509,675  
   
2001, 4.250%, 8/01/31 (Mandatory put 4/01/14) (Alternative Minimum Tax)  
     
   
Tax Obligation/General – 35.8% (23.2% of Total Investments)  
     
200  
 
Ann Arbor, Michigan, General Obligation Bonds, Court & Police Facilities Capital Improvement  
5/18 at 100.00  
AA+  
209,546  
   
Series 2008, 5.000%, 5/01/38  
     
437  
 
Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation  
5/17 at 100.00  
Aa2  
445,478  
   
Bonds, Tender Option Bond Trust 2008-1096, 7.950%, 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–  
159,807  
290  
 
5.500%, 5/01/41  
5/21 at 100.00  
AA–  
308,276  
50  
 
Detroit-Wayne County Stadium Authority, Michigan, Limited Tax General Obligation Building  
2/12 at 100.00  
A3  
50,112  
   
Authority Stadium Bonds, Series 1997, 5.500%, 2/01/17 – FGIC Insured  
     
300  
 
Grand Rapids, Michigan, General Obligation Bonds, Capital Improvement Series 2007, 5.000%,  
9/17 at 100.00  
AA  
318,189  
   
9/01/27 – NPFG Insured  
     
500  
 
Jackson Public Schools, Jackson County, Michigan, General Obligation School Building and Site  
5/14 at 100.00  
Aa2  
537,400  
   
Bonds, Series 2004, 5.000%, 5/01/22 – AGM Insured  
     
430  
 
Lowell Area Schools, Counties of Ionia and Kent, Michigan, General Obligation Bonds, Series  
5/17 at 100.00  
Aa2  
439,494  
   
2007, 5.000%, 5/01/37 – AGM Insured  
     
400  
 
Michigan Municipal Bond Authority, General Obligation Bonds, Detroit City School District,  
6/15 at 100.00  
AA–  
418,596  
   
Series 2005, 5.000%, 6/01/18 – AGM Insured  
     
500  
 
Michigan State, General Obligation Bonds, Environmental Program, Refunding Series 2011A,  
12/21 at 100.00  
Aa2  
584,075  
   
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  
113,491  
1,410  
 
New Haven Community Schools, Macomb County, Michigan, General Obligation Bonds, Series 2006,  
5/16 at 100.00  
Aa2  
1,494,797  
   
5.000%, 5/01/25 – AGM Insured  
     
420  
 
Oakland Intermediate School District, Oakland County, Michigan, General Obligation Bonds,  
5/17 at 100.00  
Aaa  
432,529  
   
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  
1,046,870  
   
8/01/30 – NPFG Insured (UB)  
     
235  
 
Parchment School District, Kalamazoo County, Michigan, General Obligation Bonds, Tender Option  
No Opt. Call  
Aa2  
236,241  
   
Bond Trust 2836, 11.227%, 5/01/15 – AGM Insured (IF)  
     
750  
 
Plainwell Community Schools, Allegan County, Michigan, General Obligation Bonds, School  
5/18 at 100.00  
Aa2  
790,980  
   
Building & Site, Series 2008, 5.000%, 5/01/28 – AGC Insured  
     
100  
 
Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2008, 5.000%,  
5/18 at 100.00  
Aa2  
103,462  
   
5/01/33 – AGM Insured  
     
25  
 
South Haven, Van Buren County, Michigan, General Obligation Bonds, Capital Improvement Series  
12/19 at 100.00  
AA–  
27,079  
   
2009, 5.125%, 12/01/33 – AGC Insured  
     
330  
 
Thornapple Kellogg School District, Barry County, Michigan, General Obligation Bonds, Series  
5/17 at 100.00  
Aa2  
339,844  
   
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  
103,236  
   
5/01/34 – AGM Insured  
     
225  
 
Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building  
5/18 at 100.00  
Aa2  
230,636  
   
and Site, Series 2008, 5.000%, 5/01/38 – AGM Insured  
     
25  
 
Wayne Charter County, Michigan, General Obligation Bonds, Building Improvements, Series 2009A,  
12/19 at 100.00  
A3  
27,027  
   
6.750%, 11/01/39  
     
1,690  
 
Wayne County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds, Detroit  
12/12 at 100.00  
BBB+  
1,638,590  
   
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  
545,745  
   
5/01/17 – AGM Insured  
     
10,167  
 
Total Tax Obligation/General  
   
10,601,500  
   
Tax Obligation/Limited – 15.4% (10.0% of Total Investments)  
     
150  
 
Atlanta, Georgia, Tax Allocation Bonds, Eastside Project, Series 2005A, 5.625%, 1/01/16  
No Opt. Call  
A–  
156,939  
   
(Alternative Minimum Tax)  
     
265  
 
Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 (WI/DD,  
1/22 at 100.00  
A  
269,585  
   
Settling 12/01/11)  
     
   
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  
590,453  
500  
 
5.000%, 10/01/30  
10/21 at 100.00  
AA  
520,270  
500  
 
5.000%, 10/01/31  
10/21 at 100.00  
AA  
517,050  
485  
 
Kalkaska County Hospital Authority, Michigan, Hospital Revenue Bonds, Series 2007,  
No Opt. Call  
N/R  
500,986  
   
5.125%, 5/01/14  
     
   
Michigan State Building Authority, Revenue Bonds, Refunding Series 2006IA:  
     
1,520  
 
0.000%, 10/15/28 – AGM Insured  
10/16 at 55.35  
AA–  
637,397  
720  
 
5.000%, 10/15/36 – FGIC Insured  
10/16 at 100.00  
Aa3  
729,115  
700  
 
Virgin Islands Public Finance Authority, Revenue Bonds, Senior Lien Matching Fund Loan Notes,  
10/19 at 100.00  
BBB  
647,087  
   
Series 2009A-1, 5.000%, 10/01/39  
     
5,400  
 
Total Tax Obligation/Limited  
   
4,568,882  
   
Transportation – 2.7% (1.7% of Total Investments)  
     
250  
 
Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Airport,  
No Opt. Call  
A  
259,458  
   
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  
530,845  
   
Refunding Series 2011A, 5.000%, 12/01/21 (Alternative Minimum Tax)  
     
750  
 
Total Transportation  
   
790,303  
   
U.S. Guaranteed – 16.6% (10.8% of Total Investments) (4)  
     
1,000  
 
Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site  
5/12 at 100.00  
Aa2 (4)  
1,022,200  
   
Improvement Bonds, Series 2001A, 5.500%, 5/01/21 (Pre-refunded 5/01/12) – AGM Insured  
     
720  
 
Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2003A, 5.000%,  
7/13 at 100.00  
AA– (4)  
770,825  
   
7/01/17 (Pre-refunded 7/01/13) – AGM Insured  
     
1,235  
 
Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 Project, Series 2001A,  
1/12 at 100.00  
A2 (4)  
1,240,385  
   
5.250%, 1/01/24 (Pre-refunded 1/01/12) – AMBAC Insured  
     
85  
 
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health  
12/12 at 100.00  
N/R (4)  
89,338  
   
Credit Group, Series 2002C, 5.375%, 12/01/30 (Pre-refunded 12/01/12)  
     
   
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)  
484,296  
335  
 
5.000%, 5/15/37 (Pre-refunded 5/15/15)  
5/15 at 100.00  
AA+ (4)  
381,739  
   
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E:  
     
85  
 
6.000%, 8/01/26 (ETM)  
No Opt. Call  
Baa2 (4)  
113,456  
615  
 
6.000%, 8/01/26 (ETM)  
No Opt. Call  
AA+ (4)  
820,890  
4,500  
 
Total U.S. Guaranteed  
   
4,923,129  
   
Utilities – 11.0% (7.1% 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–  
1,165,253  
   
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–  
52,794  
750  
 
5.000%, 7/01/32  
7/18 at 100.00  
AA–  
776,543  
   
Lansing Board of Water and Light, Michigan, Utility System Revenue Bonds, Tender Option Bond  
     
   
Trust 4700:  
     
100  
 
17.770%, 7/01/37 (IF) (5)  
7/21 at 100.00  
AA–  
120,988  
250  
 
17.924%, 7/01/37 (IF) (5)  
7/21 at 100.00  
AA–  
302,470  
   
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–  
533,245  
290  
 
5.000%, 1/01/27 – AGM Insured  
No Opt. Call  
AA–  
308,151  
3,055  
 
Total Utilities  
   
3,259,444  
   
Water and Sewer – 18.3% (11.9% of Total Investments)  
     
1,000  
 
Detroit Water Supply System, Michigan, Water Supply System Revenue Bonds, Series 2006A,  
7/16 at 100.00  
AA–  
1,007,080  
   
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  
1,061,010  
   
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–  
289,926  
   
7/01/17 – AGM Insured  
     
125  
 
Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 2008, 5.000%, 1/01/38  
1/18 at 100.00  
AA+  
128,525  
150  
 
Grand Rapids, Michigan, Water Supply System Revenue Bonds, Series 2009, 5.100%, 1/01/39 –  
1/19 at 100.00  
Aa1  
158,241  
   
AGC Insured  
     
1,000  
 
Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue Bonds, Series 2005,  
10/15 at 100.00  
AAA  
1,132,460  
   
5.000%, 10/01/19  
     
500  
 
Michigan Municipal Bond Authority, Water Revolving Fund Revenue Bonds, Series 2007,  
10/17 at 100.00  
AAA  
558,629  
   
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  
510,559  
500  
 
Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A,  
7/18 at 100.00  
Baa2  
517,394  
   
6.000%, 7/01/44  
     
50  
 
Saginaw, Michigan, Water Supply System Revenue Bonds, Series 2008, 5.250%, 7/01/22 –  
7/18 at 100.00  
A  
53,750  
   
NPFG Insured  
     
5,105  
 
Total Water and Sewer  
   
5,417,574  
$ 45,252  
 
Total Investments (cost $44,092,536) – 154.0%  
   
45,628,400  
   
Floating Rate Obligations – (2.2)%  
   
(665,000)
   
MuniFund Term Preferred Shares, at Liquidation Value – (55.0)% (6)  
   
(16,313,000)
   
Other Assets Less Liabilities – 3.2%  
   
984,856  
   
Net Assets Applicable to Common Shares – 100%  
   
$ 29,635,256  
 
 
 
 

 
 

 
Fair Value Measurements
 
Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is 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 methodologies 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 November 30, 2011:
         
 
Level 1  
Level 2  
Level 3  
Total  
Investments:  
       
Municipal Bonds  
$ —  
$45,628,400  
$ —  
$45,628,400  
 
During the period ended November 30, 2011, the Fund recognized no significant transfers to or from Level 1, Level 2 or Level 3.
 
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, 2011, the cost of investments was $43,456,845.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2011, were as follows:
   
Gross unrealized:  
 
Appreciation  
$1,760,001  
Depreciation  
(253,379)
Net unrealized appreciation (depreciation) of investments  
$1,506,622  
 
 
     
(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 35.8%.  
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 Michigan Dividend Advantage Municipal Fund 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date          January 27, 2012        
 
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 27, 2012        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date          January 27, 2012        
 

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