-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VckyPw3fpRHRMj1riy35bcET+fFjjbIN2CwKz/1HcRFHQ7lznrd9LejKMj5do5l2 TKUW5qtJC3ca5ojSit39Dg== 0000891804-01-000017.txt : 20010122 0000891804-01-000017.hdr.sgml : 20010122 ACCESSION NUMBER: 0000891804-01-000017 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001031 FILED AS OF DATE: 20010104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN PREMIER MUNICIPAL INCOME FUND INC CENTRAL INDEX KEY: 0000880845 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06456 FILM NUMBER: 1501510 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 N-30D 1 0001.txt NUVEEN PREMIER MUNI INCOME FUND INC(NPF) LOGO: NUVEEN INVESTMENTS ANNUAL REPORT October 31, 2000 Municipal Closed-End Exchange-Traded Funds Dependable, tax-free income to help you keep more of what you earn. INVESTMENT QUALITY NQM SELECT QUALITY NQS QUALITY INCOME NQU PREMIER INCOME NPF INVEST WELL. LOOK AHEAD. LEAVE YOUR MARK.(SM) photo: people playing checkers photo: 2 people, playing piano & violin Credit Quality HIGHLIGHTS As of October 31, 2000 PIE CHART: Nuveen Investment Quality Municipal Fund, Inc. (NQM) AAA/U.S. Guaranteed 67% AA 18% A 9% BBB 5% NR 1% PIE CHART: Nuveen Select Quality Municipal Fund, Inc. (NQS) AAA/U.S. Guaranteed 74% AA 9% A 9% BBB 7% NR 1% PIECHART: Nuveen Quality Income Municipal Fund, Inc. (NQU) AAA/U.S. Guaranteed 62% AA 16% A 8% BBB 11% NR 2% Other 1% PIE CHART: Nuveen Premier Municipal Income Fund, Inc. (NPF) AAA/U.S. Guaranteed 67% AA 13% A 9% BBB 2% NR 9% CONTENTS 1 Dear Shareholder 3 Portfolio Managers' Comments 6 NQM Performance Overview 7 NQS Performance Overview 8 NQU Performance Overview 9 NPF Performance Overview 10 Shareholder Meeting Report 14 Report of Independent Auditors 15 Portfolio of Investments 42 Statement of Net Assets 43 Statement of Operations 44 Statement of Changes in Net Assets 46 Notes to Financial Statements 50 Financial Highlights 52 Build Your Wealth Automatically 53 Fund Information - -------------------------------------------------------------------------------- COMPOUND YOUR WEALTH - AUTOMATICALLY All Nuveen Municipal Closed-End ETFs let you reinvest dividends and capital gains directly into additional shares of your Fund. This is a great way to see your investment grow through the power of compounding. For more information about Dividend Reinvestment, see the last page of this report or speak with your financial advisor. - -------------------------------------------------------------------------------- Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: "A WELL-BALANCED PORTFOLIO CAN HELP YOU REDUCE YOUR INVESTMENT RISKS." Dear SHAREHOLDER One of the primary goals of your Nuveen Fund is to provide you with attractive, dependable tax-free income from a quality portfolio. I am pleased to report that over the past fiscal year your Fund has continued to meet these objectives. I urge you to read the Portfolio Managers' Comments and Performance Overview pages included in this report, which provide more details about Fund results, how they were achieved, and how the Funds are trying to position themselves for the future. The uncertain markets of this past reporting period also remind us of another important reason for investing in Nuveen Funds. In times such as these, your Nuveen Fund can help bring a measure of diversification to your overall portfolio and serve as a useful counterbalance to other holdings. A well-balanced portfolio can help you reduce your investment risks and provide one of the keys to strong long-term performance. Invest Well. Look Ahead. Leave Your Mark. At Nuveen, we believe that investors should focus not only on investments that can help them accumulate wealth, but also on the plans and services that can help preserve that wealth and pass it along to future generations. This long-term perspective is an integral part of our portfolio management strategies, our insistence on quality, and our desire to provide investments that can withstand the test of time. 1 In establishing a program tailored to your needs, the sound ongoing advice and disciplined focus provided by a trusted financial advisor can be an invaluable resource, enabling you to make wise investment decisions and build a program that can result in a lasting legacy. For more than a century, Nuveen has offered quality investments to those who recognize and embrace the need for building, preserving and managing wealth. All of us at Nuveen are dedicated to working with you and your financial advisor to provide the services, products, perspectives, and solutions that can help you meet your personal and family financial goals, now and for years to come. We thank you for your continued confidence. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board December 15, 2000 Sidebar text: "IN ESTABLISHING A PROGRAM TAILORED TO YOUR NEEDS, THE SOUND ONGOING ADVICE AND DISCIPLINED FOCUS PROVIDED BY A TRUSTED FINANCIAL ADVISOR CAN BE AN INVALUABLE RESOURCE." 2 Nuveen National Closed-End Exchange-Traded Funds (NQM, NQS, NQU, NPF) Portfolio Managers' COMMENTS Portfolio managers Tom Futrell, Rick Huber, Bill Fitzgerald, and Steve Peterson discuss the economic environment, key investment strategies, and the performance of these Nuveen National Closed-End Municipal Funds. Tom, Bill, and Steve have managed NQM, NQU, and NPF, respectively, since the inceptions of these Funds in the early 1990s, and Rick assumed portfolio management responsibility for NQS in 1998. WHAT MAJOR FACTORS AFFECTED THE U.S. ECONOMY AND THE MUNICIPAL MARKET OVER THE PAST FISCAL YEAR? The major news affecting the fixed-income markets over the past fiscal year has been the Federal Reserve's tightening policy. In an effort to keep inflation in check, the Fed continued to raise interest rates through May 2000, eventually bringing the federal funds target rate to 6.50%, the highest level in almost a decade. The Fed's policy has been to try to slow economic growth without causing a recession. Some recent evidence has suggested that the Fed effort may be having an impact. While the U.S. economic expansion has reached a record tenth year, several indicators point to slowing growth. As a result, the Fed now seems to have put additional rate increases on hold, with some anticipating that the current tightening cycle may have reached its end. Although the Fed rate hikes and hints of an economic slowdown have affected the municipal bond market, several supply and demand factors helped to prevent a major increase in rates or drop in value. New issue supply of municipal bonds during the first 10 months of 2000 totaled $154 billion nationwide, down 17.5% from 1999 levels. At this rate, the supply of municipal bonds could finish 2000 at its lowest level since 1995.The generally favorable economic conditions in many cities and states have enabled many issuers to use pay-as-you-go funding for necessary projects, holding the supply of new bonds in check. At the same time, demand from individual investors looking for diversification and income has remained strong. As a result, current municipal bond prices and yields are comparable to those of a year ago. HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST YEAR? For the fiscal year ended October 31, 2000, these Nuveen National Municipal Closed-End Funds produced total returns on net asset value (NAV) as shown in the accompanying table. The annual returns for the Lehman Brothers Municipal Bond Index1 and the Funds' Lipper Peer Group2 are also presented. Total Return Lehman Lipper Market Yield on NAV Total Return1 Average2 - -------------------------------------------------------------------------------- 1 Year 1 Year 1 Year Taxable- Ended Ended Ended 10/31/00 Equivalent3 10/31/00 10/31/00 10/31/00 - -------------------------------------------------------------------------------- NQM 6.66% 9.65% 11.38% 8.51% 9.47% - -------------------------------------------------------------------------------- NQS 6.80% 9.86% 10.02% 8.51% 9.47% - -------------------------------------------------------------------------------- NQU 6.95% 10.07% 8.37% 8.51% 9.47% - -------------------------------------------------------------------------------- NPF 6.74% 9.77% 8.22% 8.51% 9.47% - -------------------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. The Funds' participation in the recovery of the municipal market is reflected in the total returns on NAV listed above. They show dramatic improvement over the results shown in the Funds' semiannual report last spring. As of October 31, 2000, long-term municipal yields were more than 99% of 30-year Treasury yields, compared with the historical average of 86% for the period 1986-1999. WERE THE FUNDS' DIVIDENDS AFFECTED BY THE MARKET ENVIRONMENT? All four of these Funds use leverage as a way to potentially enhance the dividends paid to common shareholders. The extent of this benefit, however, is tied in part to the short-term rates that the Funds pay their MuniPreferred(R) shareholders. When short-term rates rise, the Funds must pay out more income to preferred shareholders, decreasing the amount of income available for common shareholders. As the 1 The Funds' performances are compared with that of the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The total returns of the Funds are compared with the average annualized return of the 53 funds in the Lipper General Leveraged Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of dividends. 3 The taxable-equivalent yield represents the yield that must be earned on a taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. The taxable-equivalent yield is based on the Fund's market yield on the indicated date and a federal income tax rate of 31%. 3 Federal Reserve raised short-term rates six times between June 1999 and May 2000, these increases had a corresponding impact on short-term municipal rates. This, plus some bond calls in several of the Funds, led to decreases in the common share dividends of each of these Funds over the past year. Despite these dividend adjustments, all of the Funds continued to provide competitive market yields, as shown in the accompanying tables. Recently, investor demand for municipal bonds with shorter maturities has caused the slope of the municipal yield curve to become very steep. The increased demand for short-maturity bonds could have beneficial effects on the dividend stability of these leveraged Funds going forward by holding short-term rates down and reducing the amount the Funds pay their MuniPreferred shareholders. WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE? During late 1999 and the first half of 2000, uncertainties about inflation and interest rates, coupled with investors' focus on equity market performance, tended to dampen interest in most fixed-income products. The lack of demand put pressure on the prices of many municipal bond investments, including these Nuveen Funds. In recent months, as the bond market began to show signs of recovery and the stock market continued to be volatile, we believe many investors are again consid ering tax-free fixed-income alternatives. However, investor interest in this opportunity continued to lag the rise in value of the bonds held by the Funds. Consequently, all of these Funds continued to trade at a discount (share price below NAV) over the past 12 months. With the market prices of these Funds lower than the actual value of the bonds in their portfolios, shareholders may want to consider taking advantage of this opportunity to add to their holdings of their Nuveen Funds. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE FISCAL YEAR ENDED OCTOBER 31, 2000? Despite a slow start, the past fiscal year turned out to be generally positive for the fixed-income markets, including municipal bonds. During this period, we focused on strengthening the Funds' long-term dividend-paying capabilities, enhancing call protection, and finding value in specific areas of the market, including healthcare, housing, and tobacco and industrial development bonds. For example, while the healthcare industry continued to face challenging times, we believed that there were selected areas of opportunity in this sector as hospitals became more efficient in managing revenue streams and improving cost structure and operating incomes. We took advantage of this investment opportunity to make purchases of healthcare bonds that we believed held the potential to add value for our shareholders. In NQM, we invested in bonds issued by the Minnesota Agricultural and Economic Development Board for Fairview Health Services. Since our purchase this spring, these bonds have performed well for the Fund. NPF also purchased a number of BBB-rated hospitals bonds over the past year that have helped increase Fund income. Tobacco bonds, which are secured by payments under the $250 billion master settlement agreement reached between four major tobacco companies and 46 states in 1998, were another area of the market that we believed offered value. During the past year, NQU purchased bonds issued by the Nassau County (New York) Tobacco Settlement Corporation. As of October 31, 2000, these bonds accounted for 2% of the Fund's assets. NQM also invested in tobacco bonds issued for Alaska by the Northern Tobacco Securitization Corporation. Since their purchase, both of these issues have provided attractive yields as well as good performance. 4 From a regional perspective, NQS was an active buyer in the Midwest, while selling bonds from California and Florida at attractive prices. In NQU, we concentrated heavily on bonds issued by New York and Illinois. In other management activity over the past fiscal year, we took advantage of bond calls in NQS to continue restructuring the Fund by purchasing attractively priced replacement bonds that provided good levels of income, quality, diversification, and price appreciation potential. Instead of simply replacing the called bonds with new long-term bonds, we chose to ladder the portfolio across the yield curve to spread out future call exposure. All four Funds continued to offer excellent credit quality, with between 78% and 85% of their portfolios invested in bonds rated AAA/U.S. guaranteed and AA as of October 31, 2000. The Funds also had allocations of BBB/non-rated bonds that ranged from 6% to 13%. These lower-rated bonds generally provided higher yields. Over the past fiscal year, NQM, NQS, and NQU saw their allocations of U.S. guaranteed bonds drop by 6% to 18%. Virtually all of these bonds were pre-refunded and were either called as expected or sold just prior to their call dates. We used this opportunity to enhance these Funds' diversification by reinvesting the proceeds across a variety of market sectors. In NQM, most of the proceeds were used to purchase general obligation bonds and transportation bonds, specifically those issued for the Atlanta airport, the Port of Seattle, the Port Authority of New York and New Jersey, and the Denver International Airport. NQS added to its holdings in limited tax obligation bonds and single-family housing credits. WHAT IS YOUR OUTLOOK FOR THESE NUVEEN NATIONAL FUNDS? In general, our outlook for the fixed-income markets over the next 12 months is positive. Current projections call for continued strong demand for municipal bonds, while new municipal issuance nationwide in 2001 is expected to stay under $200 billion. These supply-and-demand dynamics should continue to provide support for the municipal market and municipal bond prices. Looking specifically at these Nuveen Funds, NQM, which was established in June 1990, underwent a number of calls in 2000 and now once again offers excellent levels of call protection, with less than 7% of its portfolio subject to calls between now and the end of 2002. In 2001, NQS, NQU, and NPF will reach a period when the potential for bond calls normally increases. In 2001 and 2002, calls could affect as much as 25-40% of these three Funds' portfolios, depending upon market interest rates at the time. While we cannot control the direction of interest rates, we continue to work to reduce the Funds' call exposure and to actively manage the Funds to mitigate the longer-term effects of the bond call process. We plan to proactively manage through the upcoming period using strategies such as selling bonds with short calls as we find appropriate replacements in either the primary or secondary markets. In this way, we can capture the premium prices of the short-call bonds and still remain fully invested. In addition to bond calls, we plan to continue to focus on strengthening the Funds' dividend-payment capabilities, taking advantage of the wider credit spreads currently available in the marketplace. The high credit quality of these Funds gives us room to increase our allocations of lower-rated issues with the potential to enhance current portfolio yields and future capital appreciation. The anticipated portfolio turnover in NQS, NQU, and NPF due to bond calls also should provide us with opportunities to enhance their structure. As value-oriented investors, we will also continue to look for areas of the market that can add value for our shareholders, particularly healthcare, industrial development bonds, and transportation. We believe these Nuveen Funds will continue to serve as a dependable source of tax-free income and portfolio diversification, two essential elements of a comprehensive investment strategy. 5 Nuveen Investment Quality Municipal Fund, Inc. Performance OVERVIEW As of October 31, 2000 NQM PORTFOLIO STATISTICS - -------------------------------------------------- Inception Date 6/90 - -------------------------------------------------- Share Price $12 7/8 - -------------------------------------------------- Net Asset Value $14.67 - -------------------------------------------------- Market Yield 6.66% - -------------------------------------------------- Taxable-Equivalent Yield1 9.65% - -------------------------------------------------- Fund Net Assets ($000) $825,320 - -------------------------------------------------- Average Effective Maturity (Years) 21.45 - -------------------------------------------------- Leverage-Adjusted Duration 13.46 - -------------------------------------------------- ANNUALIZED TOTAL RETURN - -------------------------------------------------- On Share Price On NAV - -------------------------------------------------- 1-Year 3.70% 11.38% - -------------------------------------------------- 5-Year 3.41% 5.22% - -------------------------------------------------- 10-Year 6.08% 7.69% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- Transportation 14% - -------------------------------------------------- Healthcare 14% - -------------------------------------------------- Tax Obligation/General 14% - -------------------------------------------------- U.S.Guaranteed 11% - -------------------------------------------------- Water and Sewer 10% - -------------------------------------------------- BAR CHART: 1999-2000 Monthly Tax-Free Dividends Per Share2 11/99 0.08 12/99 0.077 1/00 0.077 2/00 0.077 3/00 0.0745 4/00 0.0745 5/00 0.0745 6/00 0.0715 7/00 0.0715 8/00 0.0715 9/00 0.0715 10/00 0.0715 LINE CHART: Share Price Performance 11/5/99 13.5 13 12.94 12.75 12.38 11.5 11.88 11.69 12.25 12.13 12.13 12.75 13.06 13.06 12.69 12.75 12.56 12.19 11.88 12.25 12.75 12.81 12.5 12.31 12.44 12.13 11.75 11.88 12.19 12.5 12.19 12.25 12.31 12.63 12.81 12.94 12.88 12.94 12.94 12.94 13.06 13.13 13.25 13.5 13.25 13.25 13.06 12.88 12.63 12.56 10/31/00 12.75 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 1999 of $0.0038 per share. 6 Nuveen Select Quality Municipal Fund, Inc. Performance OVERVIEW As of October 31, 2000 NQS PORTFOLIO STATISTICS - -------------------------------------------------- Inception Date 3/91 - -------------------------------------------------- Share Price $13 1/16 - -------------------------------------------------- Net Asset Value $14.48 - -------------------------------------------------- Market Yield 6.80% - -------------------------------------------------- Taxable-Equivalent Yield1 9.86% - -------------------------------------------------- Fund Net Assets ($000) $769,683 - -------------------------------------------------- Average Effective Maturity (Years) 19.43 - -------------------------------------------------- Leverage-Adjusted Duration 10.35 - -------------------------------------------------- ANNUALIZED TOTAL RETURN - -------------------------------------------------- On Share Price On NAV - -------------------------------------------------- 1-Year 6.85% 10.02% - -------------------------------------------------- 5-Year 4.22% 5.52% - -------------------------------------------------- Since Inception 5.44% 7.26% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- U.S. Guaranteed 19% - -------------------------------------------------- Tax Obligation/Limited 13% - -------------------------------------------------- Tax Obligation/General 12% - -------------------------------------------------- Housing Single Family 12% - -------------------------------------------------- Utilities 10% - -------------------------------------------------- BAR CHART: 1999-2000 Monthly Tax-Free Dividends Per Share2 11/99 0.0795 12/99 0.0795 1/00 0.0795 2/00 0.0795 3/00 0.077 4/00 0.077 5/00 0.077 6/00 0.074 7/00 0.074 8/00 0.074 9/00 0.074 10/00 0.074 LINE CHART: Share Price Performance 11/5/99 13.19 13.19 13.13 13 12.5 11.75 12 12.06 12.5 12.5 12.56 13.19 13.44 13.25 13.25 13.19 12.81 12.13 12.38 12.5 13 12.94 12.81 12.44 12.5 12.5 12.13 12.25 12.69 12.69 12.5 12.56 12.44 12.94 13.13 13.06 13.13 13.06 13 13.13 13.31 13.31 13.63 13.75 13.56 13.44 13.31 13.06 12.75 12.56 10/31/00 13 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 1999 of $0.0060 per share. 7 Nuveen Quality Income Municipal Fund, Inc. Performance OVERVIEW As of October 31, 2000 NQU PORTFOLIO STATISTICS - -------------------------------------------------- Inception Date 6/91 - -------------------------------------------------- Share Price $13 1/8 - -------------------------------------------------- Net Asset Value $14.53 - -------------------------------------------------- Market Yield 6.95% - -------------------------------------------------- Taxable-Equivalent Yield1 10.07% - -------------------------------------------------- Fund Net Assets ($000) $1,239,829 - -------------------------------------------------- Average Effective Maturity (Years) 17.25 - -------------------------------------------------- Leverage-Adjusted Duration 9.33 - -------------------------------------------------- ANNUALIZED TOTAL RETURN - -------------------------------------------------- On Share Price On NAV - -------------------------------------------------- 1-Year 0.73% 8.37% - -------------------------------------------------- 5-Year 4.38% 5.56% - -------------------------------------------------- Since Inception 5.44% 7.30% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- U.S. Guaranteed 29% - -------------------------------------------------- Transportation 13% - -------------------------------------------------- Tax Obligation/General 11% - -------------------------------------------------- Utilities 9% - -------------------------------------------------- Water and Sewer 8% - -------------------------------------------------- BAR CHART: 1999-2000 Monthly Tax-Free Dividends Per Share 11/99 0.0855 12/99 0.0825 1/00 0.0825 2/00 0.0825 3/00 0.08 4/00 0.08 5/00 0.08 6/00 0.076 7/00 0.076 8/00 0.076 9/00 0.076 10/00 0.076 LINE CHART: Share Price Performance 11/5/99 14 13.81 13.88 13.56 12.75 12.38 12.38 12.19 12.81 12.69 12.56 13.19 13.63 13.5 13.31 13.25 13.13 12.38 12.38 12.75 13.06 13.69 13.25 12.75 12.75 12.88 12.56 12.81 13.06 13.19 12.88 12.75 12.75 13.25 13.38 13.44 13.5 13.5 13.13 13.38 13.5 13.38 13.63 13.81 13.63 13.56 13.44 13.38 13.25 12.81 10/31/00 13.19 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. 8 Nuveen Premier Municipal Income Fund, Inc. Performance OVERVIEW As of October 31, 2000 NPF PORTFOLIO STATISTICS - -------------------------------------------------- Inception Date 12/91 - -------------------------------------------------- Share Price $13 5/8 - -------------------------------------------------- Net Asset Value $14.42 - -------------------------------------------------- Market Yield 6.74% - -------------------------------------------------- Taxable-Equivalent Yield1 9.77% - -------------------------------------------------- Fund Net Assets ($000) $454,103 - -------------------------------------------------- Average Effective Maturity (Years) 14.32 - -------------------------------------------------- Leverage-Adjusted Duration 11.28 - -------------------------------------------------- ANNUALIZED TOTAL RETURN - -------------------------------------------------- On Share Price On NAV - -------------------------------------------------- 1-Year 9.71% 8.22% - -------------------------------------------------- 5-Year 5.36% 5.56% - -------------------------------------------------- Since Inception 5.72% 7.13% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- U.S. Guaranteed 30% - -------------------------------------------------- Housing Multifamily 15% - -------------------------------------------------- Tax Obligation/Limited 12% - -------------------------------------------------- Tax Obligation/General 11% - -------------------------------------------------- Education and Civic Organizations 7% - -------------------------------------------------- BAR CHART: 1999-2000 Monthly Tax-Free Dividends Per Share 11/99 0.0805 12/99 0.0805 1/00 0.0805 2/00 0.0805 3/00 0.0805 4/00 0.0805 5/00 0.0805 6/00 0.0765 7/00 0.0765 8/00 0.0765 9/00 0.0765 10/00 0.0765 LINE CHART: Share Price Performance 11/5/99 14.25 13.94 13.81 13.56 13.75 12.38 12.75 12.56 13 13.38 13.5 13.63 14.06 14 13.81 13.75 13.75 13.38 13.44 13.44 13.56 13.88 13.75 13.5 13.5 13.25 13 12.75 13 13.06 13 12.88 12.81 13.13 13.5 13.5 13.38 13.31 13.25 13.75 13.94 13.94 14.13 14 13.69 13.69 13.88 13.44 13.56 13.13 10/31/00 13.38 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. 9 Shareholder MEETING REPORT The annual shareholder meeting was held on July 26, 2000, at the Northern Trust Bank, Chicago, Illinois.
NQM - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS: Preferred Preferred Preferred Preferred Preferred Common Shares Shares Shares Shares Shares Shares Series-M Series-T Series-W Series-TH Series-F ==================================================================================================================================== Robert P. Bremner For 31,739,709 2,003 2,088 1,896 1,770 2,140 Withhold 382,651 23 3 -- 16 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,122,360 2,026 2,091 1,896 1,786 2,140 ==================================================================================================================================== Lawrence H. Brown For 31,736,713 2,003 2,088 1,896 1,786 2,140 Withhold 385,647 23 3 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,122,360 2,026 2,091 1,896 1,786 2,140 ==================================================================================================================================== Anne E. Impellizzeri For 31,710,771 2,003 2,088 1,896 1,770 2,140 Withhold 411,589 23 3 -- 16 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,122,360 2,026 2,091 1,896 1,786 2,140 ==================================================================================================================================== Peter R. Sawers For 31,742,456 2,003 2,088 1,896 1,786 2,140 Withhold 379,904 23 3 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,122,360 2,026 2,091 1,896 1,786 2,140 ==================================================================================================================================== Judith M. Stockdale For 31,724,278 2,003 2,088 1,896 1,780 2,140 Withhold 398,082 23 3 -- 6 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,122,360 2,026 2,091 1,896 1,786 2,140 ==================================================================================================================================== William J. Schneider For -- 2,003 2,088 1,896 1,786 2,140 Withhold -- 23 3 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,026 2,091 1,896 1,786 2,140 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,003 2,088 1,896 1,786 2,140 Withhold -- 23 3 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,026 2,091 1,896 1,786 2,140 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 31,703,008 2,026 2,089 1,896 1,786 2,110 Against 148,341 -- 2 -- -- -- Abstain 271,011 -- -- -- -- 30 - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,122,360 2,026 2,091 1,896 1,786 2,140 ====================================================================================================================================
10
NQS - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS: Preferred Preferred Preferred Preferred Preferred Common Shares Shares Shares Shares Shares Shares Series-M Series-T Series-W Series-TH Series-F ==================================================================================================================================== Robert P. Bremner For 30,613,090 1,795 1,907 2,409 1,510 2,574 Withhold 420,329 20 -- 6 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,033,419 1,815 1,907 2,415 1,512 2,574 ==================================================================================================================================== Lawrence H. Brown For 30,616,968 1,795 1,907 2,409 1,510 2,574 Withhold 416,451 20 -- 6 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,033,419 1,815 1,907 2,415 1,512 2,574 ==================================================================================================================================== Anne E. Impellizzeri For 30,590,789 1,795 1,907 2,409 1,510 2,574 Withhold 442,630 20 -- 6 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,033,419 1,815 1,907 2,415 1,512 2,574 ==================================================================================================================================== Peter R. Sawers For 30,603,434 1,795 1,907 2,409 1,510 2,570 Withhold 429,985 20 -- 6 2 4 - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,033,419 1,815 1,907 2,415 1,512 2,574 ==================================================================================================================================== Judith M. Stockdale For 30,599,263 1,795 1,907 2,409 1,510 2,570 Withhold 434,156 20 -- 6 2 4 - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,033,419 1,815 1,907 2,415 1,512 2,574 ==================================================================================================================================== William J. Schneider For -- 1,795 1,907 2,409 1,510 2,574 Withhold -- 20 -- 6 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,815 1,907 2,415 1,512 2,574 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,795 1,907 2,409 1,510 2,574 Withhold -- 20 -- 6 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,815 1,907 2,415 1,512 2,574 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 30,618,473 1,803 1,907 2,415 1,510 2,574 Against 159,504 -- -- -- -- -- Abstain 255,442 12 -- -- 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,033,419 1,815 1,907 2,415 1,512 2,574 ====================================================================================================================================
11 Shareholder MEETING REPORT (continued) The annual shareholder meeting was held on July 26, 2000, at the Northern Trust Bank, Chicago, Illinois.
NQU - ------------------------------------------------------------------------------------------------------------------------------------ Approval of the Directors was reached as follows: Preferred Preferred Preferred Preferred Preferred Preferred Common Shares Shares Shares Shares Shares Shares Shares Series-M Series-T Series-W Series-W2 Series-TH Series-F ==================================================================================================================================== Robert P. Bremner For 48,570,296 2,749 2,648 2,447 1,784 3,318 2,576 Withhold 726,510 1 6 -- 20 29 9 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585 ==================================================================================================================================== Lawrence H. Brown For 48,562,773 2,749 2,648 2,447 1,784 3,317 2,576 Withhold 734,033 1 6 -- 20 30 9 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585 ==================================================================================================================================== Anne E. Impellizzeri For 48,530,141 2,749 2,648 2,447 1,784 3,318 2,576 Withhold 766,665 1 6 -- 20 29 9 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585 ==================================================================================================================================== Peter R. Sawers For 48,565,742 2,749 2,648 2,447 1,784 3,317 2,576 Withhold 731,064 1 6 -- 20 30 9 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585 ==================================================================================================================================== Judith M. Stockdale For 48,546,514 2,749 2,648 2,446 1,784 3,314 2,568 Withhold 750,292 1 6 1 20 33 17 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585 ==================================================================================================================================== William J. Schneider For -- 2,749 2,648 2,447 1,784 3,318 2,576 Withhold -- 1 6 -- 20 29 9 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,750 2,654 2,447 1,804 3,347 2,585 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,749 2,648 2,447 1,784 3,318 2,576 Withhold -- 1 6 -- 20 29 9 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,750 2,654 2,447 1,804 3,347 2,585 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 48,680,223 2,747 2,631 2,447 1,784 3,314 2,580 Against 174,374 2 -- -- -- 4 -- Abstain 442,209 1 23 -- 20 29 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585 ====================================================================================================================================
12
NPF - ------------------------------------------------------------------------------------------------------------------------------------ Approval of the Directors was reached as follows: Preferred Preferred Preferred Common Shares Shares Shares Shares Series-M Series-T Series-TH ==================================================================================================================================== Robert P. Bremner For 17,842,160 990 2,520 2,035 Withhold 415,270 -- 41 7 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,257,430 990 2,561 2,042 ==================================================================================================================================== Lawrence H. Brown For 17,837,992 990 2,520 2,035 Withhold 419,438 -- 41 7 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,257,430 990 2,561 2,042 ==================================================================================================================================== Anne E. Impellizzeri For 17,827,823 990 2,520 2,035 Withhold 429,607 -- 41 7 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,257,430 990 2,561 2,042 ==================================================================================================================================== Peter R. Sawers For 17,837,894 990 2,520 2,035 Withhold 419,536 -- 41 7 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,257,430 990 2,561 2,042 ==================================================================================================================================== Judith M. Stockdale For 17,836,115 990 2,520 2,035 Withhold 421,315 -- 41 7 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,257,430 990 2,561 2,042 ==================================================================================================================================== William J. Schneider For -- 990 2,520 2,035 Withhold -- -- 41 7 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 990 2,561 2,042 ==================================================================================================================================== Timothy R. Schwertfeger For -- 990 2,520 2,035 Withhold -- -- 41 7 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 990 2,561 2,042 ==================================================================================================================================== Ratification of auditors was reached as follows: For 17,897,865 989 2,502 2,039 Against 77,432 -- -- -- Abstain 282,133 1 59 3 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,257,430 990 2,561 2,042 ====================================================================================================================================
13 Report of INDEPENDENT AUDITORS THE BOARD OF DIRECTORS AND SHAREHOLDERS NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. We have audited the accompanying statements of net assets, including the portfolios of investments, of Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income Municipal Fund, Inc. and Nuveen Premier Municipal Income Fund, Inc. as of October 31, 2000, and the related statements of operations, changes in net assets and the financial highlights for the years indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of October 31, 2000, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income Municipal Fund, Inc. and Nuveen Premier Municipal Income Fund, Inc. at October 31, 2000, and the results of their operations, changes in their net assets and financial highlights for the years indicated therein in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP Ernst & Young LLP Chicago, Illinois December 12, 2000 14 Nuveen Investment Quality Municipal Fund, Inc. (NQM) Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 2.7% $ 22,225 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA $ 22,282,563 Warrants, Series 1999-A, 5.750%, 2/01/38 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 3.0% 14,850 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 6/04 at 102 Aa2 14,987,363 1994 Series A, 5.400%, 12/01/13 10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100 Aa3 9,927,000 Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.6% 5,255 Arkansas Development Finance Authority, Home Mortgage Revenue 7/08 at 101 1/2 AAA 5,095,668 Bonds, 1998 Series A, 5.150%, 7/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 11.8% 9,245 Alameda County Public Facilities Corporation, California, Certificates 9/06 at 102 AAA 9,770,948 of Participation (1991 Financing Project), 6.000%, 9/01/21 22,400 California Health Facilities Financing Authority, Kaiser Permanente, 5/03 at 102 A 21,592,928 Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 5,925 State Public Works Board of the State of California, Lease Revenue 6/03 at 102 Aa2 5,949,648 Refunding Bonds (The Regents of the University of California), 1993 Series A (Various University of California Projects), 5.500%, 6/01/21 9,740 Huntington Park Redevelopment Agency, Single Family Residential No Opt. Call AAA 13,050,821 Mortgage Revenue Refunding Bonds, 1986 Series A, 8.000%, 12/01/19 4,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma 12/03 at 102 N/R 3,607,200 Linda University Medical Center Project), Series 1993-A, 6.500%, 12/01/18 5,000 Department of Water and Power of the City of Los Angeles, 5/03 at 102 AAA 4,297,750 California, Water Works Refunding Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/23 1,030 Natomas Unified School District, County of Sacramento, No Opt. Call AAA 1,123,483 California, 1999 Refunding General Obligation Bonds, 5.950%, 9/01/21 15,770 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 20,167,307 County, California, 1995 Revenue Refunding Bonds (Ontario Redevelopment Project No.1), 7.400%, 8/01/25 13,145 City of Perris, California, Single Family Mortgage Revenue No Opt. Call AAA 17,066,285 Bonds (GNMA Mortgage-Backed Securities), 1988 Series B, 8.200%, 9/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 7.9% 4,940 Castle Pines Metropolitan District, Douglas County, Colorado, 12/00 at 102 AAA 5,051,595 General Obligation Refunding and Improvement Bonds, Series 1990, 7.625%, 12/01/15 (Pre-refunded to 12/01/00) 1,595 Colorado Housing Finance Authority, Single Family Program Senior 5/06 at 105 Aa2 1,685,437 Bonds, 1996 Series B, 7.450%, 11/01/27 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 820 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Aaa 849,553 (Pre-refunded to 11/15/01) 2,265 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 2,327,514 28,875 City and County of Denver, Colorado, Airport System Revenue 11/08 at 101 AAA 26,249,974 Bonds, Series 1998B, 5.000%, 11/15/25 12,450 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 12,823,251 Refunding Bonds, Series 2000A, 6.000%, 11/15/19 (Alternative Minimum Tax) 6,200 City and County of Denver, Colorado, Special Facilities Airport 10/02 at 102 Baa3 6,249,476 Revenue Bonds (United Air Lines Project), Series 1992A, 6.875%, 10/01/32 (Alternative Minimum Tax) 7,865 Colorado Springs School District No. 11, El Paso County, Colorado, 12/07 at 125 AA- 9,529,549 General Obligation Improvement Bonds, Series 1996, 7.125%, 12/01/21 15 Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 2.7% $ 6,770 State of Connecticut, General Obligation Bonds, 2000 Series B, 6/10 at 100 AA $ 7,156,702 5.875%, 6/15/16 9,070 Connecticut Housing Finance Authority, Housing Mortgage 11/07 at 102 AA 9,057,302 Finance Program Bonds, 1997 Series C, 5.850%, 11/15/28 (Alternative Minimum Tax) 6,280 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AA 6,427,580 Program Bonds, 1996 Series D, Subseries D-2, 6.200%, 11/15/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 3.7% 2,500 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 2,674,300 6.000%, 6/01/16 4,600 District of Columbia Housing Finance Agency, Collateralized 12/00 at 102 AAA 4,698,486 Single Family Mortgage Revenue Bonds, Series 1990A, 8.100%, 12/01/23 (Alternative Minimum Tax) 23,645 District of Columbia Water and Sewer Authority, Public Utility 4/09 at 160 AAA 23,567,444 Revenue Bonds, Series 1998, 5.500%, 10/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.2% 4,000 Hillsborough County Port District, Florida (Tampa Port Authority), 12/00 at 102 Baa1*** 4,092,040 Revenue Bonds, Series 1990, 8.250%, 6/01/09 (Pre-refunded to 12/01/00) 7,500 City of Miami Beach Health Facilities Authority, Hospital 11/08 at 101 BBB- 5,830,800 Revenue Bonds, Series 1998 (Mount Sinai Medical Center of Florida Project), 5.375%, 11/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.6% 17,500 City of Atlanta, Georgia, Airport General Revenue and Refunding 1/10 at 101 AAA 17,505,775 Bonds, Series 2000A, 5.600%, 1/01/30 2,250 Municipal Electric Authority of Georgia, Project One Special No Opt. Call A 2,504,295 Obligation Bonds, Fourth Crossover Series, 6.500%, 1/01/20 10,000 Development Authority of Monroe County (Georgia), Pollution 4/01 at 101 A+ 10,109,500 Control Revenue Bonds (Georgia Power Company Plant Scherer Project), Second Series 1994, 6.750%, 10/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 6.0% 4,705 Village of Bourbonnais, Illinois, Industrial Project Revenue Bonds 3/10 at 101 AA 4,913,902 (Olivet Nazarene University Project), Series 2000, 6.250%, 3/01/20 7,500 Community College District No. 508, Cook County, Illinois, No Opt. Call AAA 9,081,300 Certificates of Participation, 8.750%, 1/01/07 2,110 Illinois Development Finance Authority, Local Government 1/11 at 100 Aaa 2,212,082 Program Revenue Bonds, Series 2000 (Elmhurst Community Unit School District Number 205 Project), 6.000%, 1/01/19 11,825 School District Number 46, Kane, Cook and DuPage Counties, No Opt. Call Aaa 14,590,631 Illinois (Elgin School District Number U-46), School Bonds, Series 1997, 7.800%, 1/01/12 5,900 Community Unit School District Number 7, Madison County, No Opt. Call AAA 6,340,730 Illinois, School Building Bonds, Series 1994, 5.850%, 2/01/13 3,585 City of Pekin, Illinois, Multifamily Housing Refunding Revenue 5/03 at 103 AAA 3,697,999 Bonds, Series 1992A (FHA-Insured Mortgage Loan - Section 8 Assisted Project), 6.875%, 5/01/22 1,140 City of Peoria, Peoria County, City of Pekin, Tazewell and Peoria 2/01 at 103 AA 1,171,806 Counties and City of Waukegan, Lake County (Illinois) Jointly, GNMA Collateralized Mortgage Revenue Bonds, Series 1990, 7.875%, 8/01/22 (Alternative Minimum Tax) 5,390 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 6,687,265 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992A, 9.000%, 6/01/07 860 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 1,066,985 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992B, 9.000%, 6/01/07 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 2.1% 5,530 Allen County Jail Building Corporation, Indiana, First Mortgage 4/11 at 101 Aa3 5,629,319 Bonds, Series 2000, 5.750%, 4/01/20 6,000 Hospital Authority of Delaware County (Indiana), Hospital 8/01 at 102 AAA 6,214,980 Revenue Bonds, Series 1991 (Ball Memorial Hospital), 6.625%, 8/01/16 (Pre-refunded to 8/01/01) 5,065 Metropolitan School District of Steuben County K-5 Building 7/10 at 101 AAA 5,332,736 Corporation, First Mortgage Bonds, Indiana, Series 2000 Bonds, 6.125%, 1/15/21 16 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.6% $ 5,290 Iowa Finance Authority, Abbey Healthcare Mortgage Revenue 11/10 at 103 1/2 Aaa $ 5,309,467 Bonds, Series 2000A, GNMA Guaranteed, 6.200%, 5/20/42 (WI, settling 12/22/00) - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.3% 4,070 Sedgwick County, Kansas and Shawnee County, Kansas, Single No Opt. Call Aaa 4,659,702 Family Mortgage Revenue Bonds (Mortgaged-Backed Securities Program), 1997 Series A-1, 6.950%, 6/01/29 (Alternative Minimum Tax) 4,640 City of Topeka, Kansas, Variable Rate Demand Industrial Revenue 8/16 at 100 AAA 6,215,373 Refunding Bonds, Series 1988 (Sunwest Hotel Corporation Project), 9.500%, 10/01/16 (Alternative Minimum Tax) (Pre-refunded to 8/15/16) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 2.2% 2,000 Jefferson County, Kentucky, Health Facilities Revenue 1/07 at 102 AAA 2,003,060 Refunding Bonds (Jewiah Hospital Healthcare Services Inc.), Series 1996, 5.700%, 1/01/21 12,500 County of Jefferson, Kentucky, Pollution Control Revenue Bonds, 4/05 at 102 AAA 12,671,375 1995 Series A (Louisville Gas and Electric Company Project), 5.900%, 4/15/23 3,700 County of Warren, Kentucky, Hospital Revenue Bonds, 4/08 at 101 AAA 3,196,689 Series 1998 (Bowling Green-Warren County Community Hospital Corporation), 4.875%, 4/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.2% 4,095 East Baton Rouge Mortgage Finance Authority, Single Family 10/07 at 102 Aaa 4,102,617 Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1997D, 5.900%, 10/01/30 (Alternative Minimum Tax) 3,200 Home Mortgage Authority, Parish of Jefferson, Louisiana, 12/09 at 103 Aaa 3,556,672 Single Family Mortgage Revenue Refunding Bonds, Series 2000A-2, 7.500%, 12/01/30 (Alternative Minimum Tax) 3,320 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 3,608,143 Revenue Bonds (Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/04 11,545 Orleans Parish School Board, Public School Refunding Bonds, No Opt. Call AAA 14,883,352 Series 1987, 9.000%, 2/01/09 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.4% 2,985 Maine State Housing Authority, Mortgage Purchase Bonds, 10/04 at 102 AA 3,101,415 1994 Series C-2, 6.875%, 11/15/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.9% 12,500 The Commonwealth of Massachusetts, General Obligation 10/10 at 100 Aa2 12,827,000 Bonds, Consolidated Loan Series 2000C, 5.750%, 10/01/19 (WI, settling 11/02/00) 5,000 The Commonwealth of Massachusetts, General Obligation Bonds, 9/09 at 101 Aa2 5,248,050 Series C, Consolidated Loan of 1999, 5.875%, 9/01/17 5,375 Massachusetts Development Finance Agency, Assisted Living 12/09 at 102 N/R 5,403,326 Revenue Bonds (Prospect House Apartments), Series 1999, 7.000%, 12/01/31 (Alternative Minimum Tax) 5,160 Massachusetts Health and Educational Facilities Authority, 1/01 at 102 BBB 5,267,483 Revenue Bonds, Goddard Memorial Hospital Issue, Series B, 9.000%, 7/01/15 4,000 Massachusetts Water Resources Authority, General Revenue 3/03 at 100 AAA 3,728,960 Refunding Bonds, 1993 Series B, 5.000%, 3/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.4% 10,000 City of Detroit, Michigan, Water Supply System Revenue and No Opt. Call AAA 11,393,600 Revenue Refunding Bonds, Series 1993, 6.500%, 7/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 4.1% 5,000 The County Housing and Redevelopment Authorities of Dakota No Opt. Call AAA 6,738,200 and Washington and the City of Bloomington, Minnesota, Single Family Residential Mortgage Revenue Bonds (Mortgage-Backed Program), Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) 3,355 City of Eden Prairie, Minnesota, Multifamily Housing Revenue 11/10 at 103 1/2 Aaa 3,490,542 Bonds, Series 2000 (GNMA Collateralized Mortgage Loan - Lincoln Park Project), Series 2000A-1, 6.550%, 11/20/30 (WI, settling 11/17/00) 17 Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA (continued) $ 2,860 City of Hopkins, Minnesota, Elderly Housing Revenue Refunding 3/04 at 102 AAA $ 3,073,699 Bonds (St. Therese Southwest, Inc. Project), Series 1994A, 6.500%, 3/01/19 (Pre-refunded to 3/01/04) 20,000 Minnesota Agricultural and Economic Development Board, 11/10 at 101 A 20,284,000 Health Care System Revenue Bonds, Series 2000A (Fairview Health Services), 6.375%, 11/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.2% 1,305 Mississippi Housing Finance Corporation, Single Family Mortgage 4/01 at 101 AAA 1,319,890 Purchase Revenue Bonds, Series 1989 (GNMA Mortgage-Backed Securities Program), 8.250%, 10/15/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.2% 8,075 The Industrial Development Authority of Kansas City, Missouri, 1/07 at 102 AAA 8,100,517 Multifamily Housing Revenue Bonds, Series 1997 (Royal Woods Apartments Project), 5.600%, 1/01/30 (Alternative Minimum Tax) (Mandatory put 1/01/10) 1,865 Missouri Housing Development Commission, Single Family 3/07 at 105 AAA 2,051,015 Mortgage Revenue Bonds (Homeownership Loan Program), 1997 Series A-2, 7.300%, 3/01/28 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.1% 3,300 Nebraska Higher Education Loan Program, Inc., Student Loan 3/04 at 102 AAA 3,388,869 Program Revenue Bonds, 1993 Series B, 5.875%, 6/01/14 (Alternative Minimum Tax) 13,330 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 13,680,312 Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.7% 14,530 Director of the State of Nevada, Department of Business and 1/10 at 102 AAA 14,377,871 Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier Series 2000, 5.625%, 1/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 8.3% 7,770 Metropolitan Transportation Authority, New York, Commuter 7/07 at 101 AAA 7,507,918 Facilities Revenue Bonds, Series 1997C, 5.375%, 7/01/27 The City of New York, New York, General Obligation Bonds, Fiscal 1997 Series G: 95 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A*** 103,619 9,905 6.000%, 10/15/26 10/07 at 101 A 10,184,222 7,000 New York City Municipal Water Finance Authority, Water and 6/06 at 101 AAA 7,062,720 Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 3,300 New York City Municipal Water Finance Authority, Water and 6/10 at 101 AA 3,630,924 Sewer System Revenue Bonds, Fiscal 2000 Series B, 6.500%, 6/15/31 5,000 New York City Transitional Finance Authority, Future Tax 5/10 at 101 AA 4,937,700 Secured Bonds, Fiscal 2000 Series C, 5.500%, 11/01/24 14,235 Dormitory Authority of the State of New York, City University No Opt. Call Baa1 15,151,307 System Consolidated Second General Resolution Revenue Bonds, Series 1990D, 8.750%, 7/01/02 16,445 The Port Authority of New York and New Jersey, Special No Opt. Call AAA 19,359,054 Project Bonds, Series 6 (JFK International Air Terminal LLC Project), 7.000%, 12/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.6% 2,795 Charlotte Mortgage Revenue Refunding Bonds (FHA-Insured 11/07 at 100 AAA 2,984,194 Mortgage - Double Oaks Apartments), 7.350%, 5/15/26 18,200 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102 AAA 18,648,630 Revenue Bonds, Refunding Series 1996B, 5.875%, 1/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.2% 2,000 City of Bismarck, North Dakota, Health Care Revenue Bonds, 7/08 at 102 AAA 1,761,980 Series 1998A (St. Alexius Medical Center), 5.000%, 7/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.0% 8,650 County of Cuyahoga, Ohio, Hospital Improvement Revenue 2/09 at 101 A- 8,495,425 Bonds, Series 1999 (The Metrohealth System Project), 6.150%, 2/15/29 18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.0% $ 8,990 Northern Wasco County Peoples Utility District, Oregon, McNary 12/03 at 102 Aa1 $ 8,614,578 Dam Fishway Hydroelectric Project Revenue Bonds, Series 1993 (Bonneville Power Administration), 5.200%, 12/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.8% 6,790 City of Philadelphia, Pennsylvania, Water and Wastewater 6/03 at 100 AAA 6,543,591 Revenue Bonds, Series 1993, 5.000%, 6/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 3.5% 4,765 Newport Housing Development Corporation, 1995 Multifamily 6/03 at 100 AAA 5,007,443 Mortgage Revenue Refunding Bonds (Broadway-West Apartments - FHA-Insured Mortgage Section 8 Assisted Project), Series A, 6.800%, 8/01/24 24,000 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 24,023,280 Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue, Series 1996, 5.750%, 5/15/23 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.7% 3,135 Austin Housing Finance Corporation (Texas), Multifamily 12/10 at 105 Aaa 3,516,216 Housing Revenue Bonds, Series 2000A (GNMA Collateralized Mortgage Loan - Santa Maria Village Project), 7.375%, 6/20/35 (Alternative Minimum Tax) 1,875 The Cameron County Housing Finance Corporation, 3/01 at 103 AAA 1,932,544 GNMA Collateralized Mortgage Revenue Refunding Bonds, 1990 Series B, 7.850%, 3/01/24 18,710 Clear Creek Independent School District, Galveston and Harris 2/10 at 100 AAA 18,557,701 Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000, 5.500%, 2/15/22 Dallas Housing Corporation, Refunding and Capital Program Revenue Bonds (Section 8 Assisted Projects), Series 1990: 1,000 7.700%, 8/01/05 2/01 at 102 Baa2 1,020,870 2,000 7.850%, 8/01/13 2/01 at 102 Baa2 2,041,720 13,175 Harris County Hospital District, Texas, Refunding Revenue No Opt. Call AAA 14,971,915 Bonds, Series 1990, 7.400%, 2/15/10 2,256 Heart of Texas Housing Finance Corporation, Multifamily Housing 6/10 at 105 AAA 2,527,126 Revenue Bonds, Series 2000A (GNMA Collateralized Mortgage Loan - Robinson Garden Project), 7.375%, 6/20/35 (Alternative Minimum Tax) 3,500 Richardson Hospital Authority, Texas, Hospital Revenue 12/08 at 101 BBB+ 2,817,920 Refunding and Improvement Bonds (Baylor/Richardson Medical Center Project), Series 1998, 5.625%, 12/01/28 3,960 Economic Development Corporation, Stafford, Texas, Sales Tax 9/15 at 100 AAA 3,882,859 Revenue Bonds, Series 2000, 5.500%, 9/01/30 4,000 Texas Health Facilities Development Corporation, Hospital 11/07 at 102 AAA 3,879,320 Revenue Bonds (East Texas Medical Center), Series 1997C, 5.600%, 11/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.2% 2,000 City of Virginia Beach Development Authority, Multifamily 10/14 at 102 N/R 1,974,940 Housing Revenue Bonds (Residential Rental Hamptons Project), Series 1999, 7.500%, 10/01/39 19 Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued) Portfolio of INVESTMENTS October 31, 200000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 8.1% $ 17,075 Port of Seattle, Washington, Limited Tax - General Obligation 12/10 at 100 AA+ $ 16,928,497 Bonds, 2000 Series B, 5.750%, 12/01/25 (Alternative Minimum Tax) 16,750 Port of Seattle, Washington, Revenue Bonds, 8/10 at 100 AAA 16,653,185 Series 2000A, 5.625%, 2/01/30 11,320 State of Washington, General Obligation Bonds, Series 1994A, 10/03 at 100 AA+ 10,829,278 4.750%, 10/01/13 1,000 Washington Health Care Facilities Authority, Revenue Bonds, 12/09 at 101 AAA 957,400 Series 1999 (Providence Services), 5.500%, 12/01/26 16,060 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 16,261,553 No. 3 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15 4,500 Washington Public Power Supply System, Nuclear Project 7/03 at 102 Aa1 4,477,092 No. 3 Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ $ 792,576 Total Investments (cost $797,300,725) - 100.0% 825,177,192 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.0% 142,989 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 825,320,181 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements.
20 Nuveen Select Quality Municipal Fund, Inc. (NQS) Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 2.0% $ 2,900 The Water Works Board of the City of Arab (Alabama), Water 8/01 at 102 AAA $ 3,005,647 Revenue Bonds, Series 1991, 7.050%, 8/01/16 Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 1999-A: 8,000 5.375%, 2/01/36 2/09 at 101 AAA 7,602,560 5,000 5.750%, 2/01/38 2/09 at 101 AAA 5,012,950 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.0% 8,600 Alaska Energy Authority, Power Revenue Refunding Bonds, 7/09 at 101 AAA 7,896,262 Third Series (Bradley Lake Hydroelectric Project), 5.000%, 7/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.0% 2,045 Arkansas Development Finance Authority, Single Family 8/01 at 103 AA 2,122,669 Mortgage Revenue Refunding Bonds, 1991 Series A (FHA-Insured or VA Guaranteed Mortgage Loans), 8.000%, 8/15/11 4,500 City of Little Rock, Arkansas, Hotel and Restaurant Gross No Opt. Call A 5,347,440 Receipts Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 0.4% 3,000 California Health Facilities Financing Authority, Kaiser 10/08 at 101 A 2,730,120 Permanente, Revenue Bonds, Series 1998B, 5.000%, 10/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 7.6% 11,000 Colorado Department of Transportation, Transportation Revenue 6/10 at 100 1/2 AAA 11,774,290 Anticipation Notes, Series 2000, 6.000%, 6/15/15 9,250 Colorado Health Facilities Authority, Revenue Bonds, 7/06 at 102 A 8,460,143 1994 Series A, Kaiser Permanente, Remarketed, 5.350%, 11/01/16 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C: 2,560 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 Aaa 2,717,978 (Pre-refunded to 11/15/02) 9,590 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 10,009,467 5,305 City and County of Denver, Colorado, Airport System Revenue 11/01 at 102 Aaa 5,636,297 Bonds, Series 1991A, 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 1,040 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Aaa 1,094,746 (Pre-refunded to 11/15/01) 3,960 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 4,136,022 14,000 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 13,783,000 Refunding Bonds, Series 2000A, 5.625%, 11/15/23 (Alternative Minimum Tax) 605 Jefferson County, Colorado, Single Family Revenue Refunding 4/01 at 103 AAA 625,631 Bonds, Series 1991A, 8.875%, 10/01/13 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 3.2% 7,195 City of Bridgeport, Connecticut, General Obligation Bonds, 7/10 at 101 AAA 7,669,582 2000 Series A, 6.000%, 7/15/16 7,145 Connecticut Development Authority, Health Facility Refunding 8/01 at 103 N/R*** 7,651,652 Revenue Bonds, Alzheimers Resource Center of Connecticut, Inc. Project, Series 1991A, 10.000%, 8/15/21 (Pre-refunded to 8/15/01) 9,785 Connecticut Development Authority, Health Facility Refunding 8/04 at 102 N/R 8,990,164 Revenue Bonds, Alzheimers Resource Center of Connecticut, Inc. Project, Series 1994A, 7.250%, 8/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.8% District of Columbia, Washington D.C., General Obligation Bonds, Series 1998B: 5,000 6.000%, 6/01/19 No Opt. Call AAA 5,321,550 7,265 5.250%, 6/01/26 6/08 at 101 AAA 6,831,933 1,425 District of Columbia Housing Finance Agency, Collateralized 12/00 at 102 AAA 1,455,509 Single Family Mortgage Revenue Bonds, Series 1990A, 8.100%, 12/01/23 (Alternative Minimum Tax) 21 Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.1% Lee County, Florida, Airport Revenue Bonds, Series 2000A: $ 3,075 5.875%, 10/01/18 (Alternative Minimum Tax) 10/10 at 101 AAA $ 3,187,699 4,860 5.875%, 10/01/19 (Alternative Minimum Tax) 10/10 at 101 AAA 5,021,935 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 2.2% 16,000 Department of Budget and Finance of the State of Hawaii, 7/01 at 102 AAA 16,655,520 Special Purpose Revenue Bonds, Kapiolani Health Care System Obligated Group (Pali Momi Medical Center Project), Series 1991, 7.650%, 7/01/19 (Pre-refunded to 7/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 9.4% 5,000 City of Chicago (Illinois), General Obligation Bonds, Project 1/06 at 102 AAA 4,652,750 and Refunding Series 1995B, 5.125%, 1/01/25 5,865 City of Chicago (Illinois), General Obligation Bonds 7/10 at 101 AAA 6,399,888 (Neighborhoods Alive 21 Program), Series 2000A, 6.500%, 1/01/35 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1997: 4,000 5.750%, 12/01/20 12/07 at 102 AAA 4,066,240 10,000 5.750%, 12/01/27 12/07 at 102 AAA 10,052,800 12,555 Chicago School Reform Board of Trustees of the Board of 12/07 at 102 AAA 11,822,290 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1997A, 5.250%, 12/01/27 30,000 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 6,918,300 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A, 0.000%, 12/01/25 Illinois Development Finance Authority, Multifamily Housing Bonds, Series 1990 (Affordable Housing Preservation Foundation Project), Subseries A (FHA-Insured Mortgage Loans - Lawless Gardens Project): 775 7.650%, 7/01/07 1/02 at 105 AAA 824,817 6,780 7.650%, 12/31/31 1/02 at 105 AAA 7,226,192 1,585 Illinois Housing Development Authority, Multifamily Housing 7/01 at 102 A+ 1,633,343 Bonds, 1991 Series C, 7.400%, 7/01/23 The County of St. Clair, Illinois, General Obligation Bonds (Alternate Revenue Source), Series 1999: 3,240 5.625%, 10/01/12 10/09 at 102 AAA 3,393,349 4,410 5.625%, 10/01/13 10/09 at 102 AAA 4,592,398 5,285 5.500%, 10/01/14 10/09 at 102 AAA 5,408,933 5,930 5.500%, 10/01/15 10/09 at 102 AAA 6,039,349 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 2.6% 8,640 Avon Community School Building Corporation, First Mortgage 7/04 at 101 AAA 8,655,120 Bonds, Series 1994 (Hendricks County), 5.500%, 1/01/16 4,955 Beacon Heights Housing Development Corporation, 6/01 at 100 AAA 5,002,370 1991 Multifamily Mortgage Revenue Refunding Bonds, (FHA-Insured Mortgage - Section 8 Assisted Project), Series A, 7.625%, 2/01/21 5,450 City of Indianapolis, Economic Development Revenue 7/06 at 102 BBB 5,207,639 Bonds (Willowbrook Apartments Project), Senior Series 1996A, 6.500%, 7/01/26 1,050 Michigan City Housing Development Corporation, 6/01 at 100 AAA 1,060,038 1991 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Project), Series A, 7.625%, 2/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.2% 8,800 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, 9/01 at 102 AAA 9,166,696 Series 1991B (Shawnee Mission Medical Center, Inc. Project), 7.250%, 9/01/21 (Pre-refunded to 9/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.4% 3,015 Lakeland Wesley Village, Inc., Mortgage Revenue Refunding 11/01 at 103 Aa 3,089,380 Bonds (Lakeland Wesley Village I Elderly Section 8 Assisted Project/FHA-Insured Mortgage), Series 1991, 7.500%, 11/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.1% 810 Calcasieu Parish Public Trust Authority (Louisiana), Mortgage 6/01 at 103 A1 836,106 Revenue Refunding Bonds, 1991 Series A, 7.750%, 6/01/12 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.0% $ 7,500 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101 AA $ 7,894,725 Revenue Bonds, The Johns Hopkins University Issue, Series 1999, 6.000%, 7/01/39 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.8% 7,375 Boston Housing Development Corporation, Mortgage Revenue 1/04 at 102 AAA 7,064,070 Refunding Bonds, Series 1994A (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), 5.500%, 7/01/24 4,250 Massachusetts Bay Transportation Authority, General 3/07 at 101 AA 3,828,655 Transportation System Bonds, 1998 Series B, 5.000%, 3/01/28 2,000 Massachusetts Educational Financing Authority, Education 12/10 at 101 AAA 2,073,000 Loan Revenue and Refunding Bonds, Issue G, Series 2000A, 5.700%, 12/01/11 (Alternative Minimum Tax) 2,000 Massachusetts Health and Educational Facilities Authority, 6/01 at 102 A3*** 2,084,000 Revenue Bonds, Lowell General Hospital Issue, Series A, 8.400%, 6/01/11 (Pre-refunded to 6/01/01) 6,300 Somerville Housing Authority (Massachusetts), Mortgage 11/00 at 102 AAA 6,432,804 Revenue Bonds, Series 1990 (GNMA Collateralized - Clarendon Hill Towers Project), 7.950%, 11/20/30 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.7% 10,000 City of Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101 AAA 10,126,600 Bonds, Series 1999-A, 5.750%, 7/01/26 3,625 Fowlerville Community Schools, Counties of Livingston, 5/07 at 100 AAA 3,821,475 Ingham, and Shiawassee, State of Michigan, 1996 School Building and Site Bonds, 5.600%, 5/01/26 (Pre-refunded to 5/01/07) 7,890 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 8,234,399 Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) 6,525 Michigan State Hospital Finance Authority, Revenue Bonds 11/00 at 100 AAA 6,601,669 (Ascension Health Credit Group), Series 1999A, 5.750%, 11/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.6% 3,465 Chisago County, Southcentral Minnesota Multi-County, and 3/04 at 102 17/20 AAA 3,628,998 Stearns County Housing and Redevelopment Authorities, Single Family Mortgage Revenue Refunding Bonds (Fannie Mae Mortgage-Backed Securities Program), Series 1994B, 7.050%, 9/01/27 (Alternative Minimum Tax) The Dakota, Washington, and Stearns Counties Housing and Redevelopment Authorities, Single Family Mortgage Revenue Refunding Bonds (Fannie Mae Mortgage-Backed Securities Program), Series 1994A: 580 6.600%, 9/01/17 (Alternative Minimum Tax) 3/04 at 102 AAA 590,863 385 6.700%, 3/01/21 (Alternative Minimum Tax) 3/04 at 102 AAA 392,538 7,230 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100 AA+ 7,350,307 Bonds, 2000 Series C, 6.100%, 7/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.2% 1,385 Goodman Housing Development Corporation, 1991 Multifamily 8/01 at 100 AAA 1,401,883 Mortgage Revenue Refunding Bonds, (Goodhaven Manor - FHA-Insured Mortgage, Section 8 Assisted Project), Series A, 7.625%, 2/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.4% 10,550 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 10,837,382 Revenue Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 3.0% 4,885 Clark County, Nevada, General Obligation Bond Bank Bonds 7/10 at 100 AA 4,900,925 (Limited Tax), Series 2000 (Additionally Secured by Pledged Revenues), 5.500%, 7/01/18 7,500 Clark County, Nevada, Airport System Subordinate Lien 7/10 at 101 AAA 7,795,875 Revenue Bonds, Series 1999A, 6.000%, 7/01/29 10,000 Clark County School District, Nevada, General Obligation 6/06 at 101 AAA 10,766,100 School Improvement Bonds (Limited Tax), Series 1996, 6.000%, 6/15/15 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.9% 4,420 New Jersey Housing and Mortgage Finance Agency, 11/01 at 102 AA- 4,563,208 Section 8 Bonds, 1991 Series A, 6.850%, 11/01/06 17,670 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100 AAA 17,708,521 Home Buyer Revenue Bonds, 2000 Series CC, 5.850% 10/01/25 (Alternative Minimum Tax) 23 Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.0% $ 8,500 City of Farmington, New Mexico, Pollution Control Revenue 4/06 at 101 Baa3 $ 7,783,705 Refunding Bonds, Series 1997B (Public Service Company of New Mexico - San Juan Project), 5.800%, 4/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 11.8% The City of New York, New York, General Obligation Bonds, Fiscal 1991 Series F: 5,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 AAA 5,274,550 7,750 8.250%, 11/15/15 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 AAA 8,175,552 The City of New York, New York, General Obligation Bonds, Fiscal 1997 Series G: 90 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A*** 98,166 9,200 6.000%, 10/15/26 10/07 at 101 A 9,459,348 5,000 New York City Health and Hospitals Corporation, Health System 2/09 at 101 AAA 4,645,700 Bonds, 1999 Series A, 5.000%, 2/15/20 6,000 New York City Municipal Water Finance Authority, Water and 6/09 at 101 AAA 5,893,680 Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.500%, 6/15/32 2,255 New York City Transit Authority, Metropolitan Transportation 1/10 at 101 AAA 2,306,189 Authority, Triborough Bridge and Tunnel Authority, Certificates of Participation, Series 2000A, 5.750%, 1/01/20 9,750 New York City Transitional Finance Authority, Future Tax 5/10 at 101 AA 10,174,905 Secured Bonds, Fiscal 2000 Series B, 6.000%, 11/15/29 10,000 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101 A 10,289,200 Lease Revenue Bonds (The City of New York Issue), Series 1999, 6.000%, 5/15/39 5,650 Dormitory Authority of the State of New York, Mental Health 8/09 at 101 AAA 5,394,846 Services Facilities Improvement Revenue Bonds, Series 1999D, 5.250%, 8/15/24 5,000 New York Local Government Assistance Corporation 4/02 at 102 AAA 5,280,000 (A Public Benefit Corporation of the State of New York), Series 1991D Bonds, 7.000%, 4/01/18 (Pre-refunded to 4/01/02) New York State Medical Care Facilities Finance Agency, Mental Health Service Facilities Improvement Revenue Bonds, 1991 Series B: 1,020 7.600%, 2/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A*** 1,065,788 595 7.600%, 2/15/06 8/01 at 102 A 619,276 1,010 7.600%, 8/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A*** 1,055,339 580 7.600%, 8/15/06 8/01 at 102 A 603,664 5,970 7.625%, 8/15/17 (Pre-refunded to 8/15/01) 8/01 at 102 A*** 6,239,128 1,980 7.625%, 8/15/17 8/01 at 102 A 2,058,725 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series D: 5,380 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A*** 5,686,552 40 7.400%, 2/15/18 2/02 at 102 A 41,851 7,545 New York State Urban Development Corporation, 1996 Corporate 7/06 at 102 AAA 7,457,478 Purpose Senior Lien Bonds, 5.500%, 7/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.4% 18,555 North Carolina Eastern Municipal Power Agency, Power 1/03 at 100 AAA 18,566,504 System Revenue Bonds, Refunding Series 1993B, 5.500%, 1/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 1.3% 10,000 City of Grand Forks, North Dakota, Sales Tax Revenue Bonds 12/07 at 100 AAA 9,999,300 (The Aurora Project), Series 1997A, 5.625%, 12/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.6% 5,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/09 at 101 Baa1 4,170,150 Hospital Facilities Revenue Bonds, Series 1998A (Summa Health System Project), 5.375%, 11/15/18 5,475 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 5,544,368 Bonds, 2000 Series C, Mortgage-Backed Securities Program, 6.050%, 3/01/32 (Alternative Minimum Tax) 1,000 State of Ohio, Turnpike Revenue Bonds, 1998 Series A, Issued No Opt. Call AAA 1,009,760 by the Ohio Turnpike Commission, 5.500%, 2/15/24 1,080 Toledo-Lucas County Port Authority, Development Revenue 11/00 at 102 N/R 1,095,876 Bonds (Northwest Ohio Bond Fund), Series 1989C, 8.400%, 11/15/09 (Alternative Minimum Tax) 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OHIO (continued) $ 805 Toledo-Lucas County Port Authority, Development Revenue No Opt. Call N/R $ 805,773 Bonds (Northwest Ohio Bond Fund), Series 1989D, 8.500%, 11/15/00 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 3.2% 3,275 Oklahoma County Home Finance Authority (Oklahoma), 7/01 at 102 Aaa 3,364,440 Single Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 21,025 Trustees of the Tulsa Municipal Airport Trust, Revenue 6/01 at 102 Baa1 21,592,675 Bonds, Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.1% 95 Delaware River Port Authority (New Jersey and Pennsylvania), 1/10 at 100 AAA 99,434 Revenue Bonds, Series of 1999, 5.750%, 1/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.7% 5,000 Puerto Rico Municipal Finance Agency, 1999 Series A Bonds, 8/09 at 101 AAA 5,399,500 6.000%, 8/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.9% 5,000 Oconee County, South Carolina, Pollution Control Facilities 4/03 at 102 Aa2 5,079,950 Revenue Refunding Bonds, Series 1993, (Duke Power Company Project), 5.800%, 4/01/14 5,000 Piedmont Municipal Power Agency (South Carolina), Electric 1/09 at 101 BBB- 4,233,200 Revenue Bonds, 1999A Refunding Series, 5.250%, 1/01/21 5,000 South Carolina State Housing Finance and Development 6/10 at 100 Aaa 5,135,650 Authority, Mortgage Revenue Bonds, Series 2000 A-2, 6.000%, 7/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.8% 7,125 City of Sioux Falls, South Dakota, Variable Rate Demand 10/14 at 100 AAA 9,008,921 Industrial Revenue Refunding Bonds, Series 1989 (Great Plains Hotel Corporation Project), 8.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded to 10/15/14) 4,970 South Dakota Housing Development Authority, Homeownership 11/06 at 102 AAA 5,108,067 Mortgage Bonds, 1996 Series D, 6.300%, 5/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 3.2% 7,220 The Metropolitan Government of Nashville and Davidson 5/02 at 102 AAA 7,545,839 County (Tennessee), General Obligation Multi-Purpose Improvement Bonds, Series 1994, 6.150%, 5/15/25 (Pre-refunded to 5/15/02) 12,500 The Health and Educational Facilities Board of the Metropolitan 11/09 at 101 AAA 12,613,750 Government of Nashville and Davidson County, Tennessee, Revenue Bonds (Ascension Health Credit Group), Series 1999A, 5.875%, 11/15/28 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue 2000-1: 1,785 5.750%, 7/01/10 (Alternative Minimum Tax) No Opt. Call AA 1,860,095 2,145 6.000%, 7/01/13 (Alternative Minimum Tax) 7/10 at 101 AAA 2,232,237 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.2% 6,000 Brazos River Authority (Texas), Revenue Refunding Bonds 11/08 at 102 AAA 5,635,680 (Houston Industries Incorporated Project), Series 1998C, 5.125%, 11/01/20 (Optional put 11/01/08) 3,155 Comal County Health Facilities Development Corporation, 1/01 at 102 AAA 3,228,417 Hospital Revenue Refunding Bonds (McKenna Memorial Hospital - FHA-Insured Project), Series 1991, 7.375%, 1/15/21 6,340 El Paso Housing Finance Corporation, Single Family Mortgage 4/01 at 103 A2 6,615,727 Revenue Refunding Bonds, Series 1991A, 8.750%, 10/01/11 1,640 The Harrison County Finance Corporation, Single Family 12/01 at 103 A1 1,685,936 Mortgage Revenue Refunding Bonds, Series 1991, 8.875%, 12/01/11 4,500 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/08 at 100 AAA 3,990,105 Bonds, Series 1998B, 5.000%, 7/01/25 (Alternative Minimum Tax) 9,000 Matagorda County Navigation District Number One (Texas), No Opt. Call AAA 8,183,520 Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1997, 5.125%, 11/01/28 (Alternative Minimum Tax) 7,500 Matagorda County Navigation District Number One (Texas), 5/09 at 101 Baa1 6,820,650 Revenue Refunding Bonds (Reliant Energy, Incorporated Project), Series 1999B, 5.950%, 5/01/30 25 Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 2,120 Panhandle Regional Housing Finance Corporation, Single Family 5/01 at 100 AAA $ 2,130,070 Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1991A, 7.500%, 5/01/24 (Alternative Minimum Tax) 4,520 State of Texas, General Obligation Water Financial Assistance 8/09 at 100 Aa1 4,428,334 Bonds, Series 1999C (State Participation Program), 5.500%, 8/01/35 4,560 Winter Garden Housing Finance Corporation, Single Family 4/04 at 103 AAA 4,704,461 Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1994, 6.950%, 10/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 3.8% 13,650 Intermountain Power Agency (Utah), Power Supply Revenue 7/03 at 102 AAA 13,609,505 Refunding Bonds, 1993 Series A, 5.500%, 7/01/20 16,550 Utah County, Utah, Hospital Revenue Bonds, Series 1997 8/07 at 101 AAA 15,390,507 (IHC Health Services, Inc.), 5.250%, 8/15/26 - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 1.6% Vermont Educational and Health Buildings Financing Agency, Hospital Revenue Bonds (Fletcher Allen Health Care Project), Series 2000A: 3,720 6.125%, 12/01/15 12/10 at 100 AAA 3,960,126 4,265 6.250%, 12/01/16 12/10 at 101 AAA 4,562,313 4,140 Vermont Housing Finance Agency, Single Family Housing Notes, 11/09 at 100 AAA 4,154,283 Series 13A, 5.950%, 11/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.5% 7,225 Port of Seattle (Washington), Special Facility Revenue Bonds 3/10 at 101 AAA 7,400,351 (Terminal 18 Project), Series 1999C, 6.000%, 9/01/20 (Alternative Minimum Tax) Municipality of Metropolitan Seattle, Washington, Sewer Refunding Revenue Bonds, Series Z: 2,160 5.450%, 1/01/16 1/03 at 102 AAA 2,165,486 3,095 5.450%, 1/01/17 1/03 at 102 AAA 3,096,919 2,490 5.450%, 1/01/19 1/03 at 102 AAA 2,460,120 1,800 5.450%, 1/01/20 1/03 at 102 AAA 1,771,470 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue Bonds, Series 1992A: 7,880 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 8,254,536 2,130 6.250%, 7/01/12 7/02 at 102 Aa1 2,213,901 4,895 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue Bonds, Series 1994A, 7/04 at 102 Aa1 4,970,970 5.375%, 7/01/11 1,935 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993C, 7/03 at 102 Aa1 1,925,151 5.375%, 7/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.5% 11,080 Wisconsin Center District, Junior Dedicated Tax Revenue Bonds, 12/06 at 101 AAA 11,839,421 Series 1996B, 5.750%, 12/15/27 (Pre-refunded to 12/15/06) - ------------------------------------------------------------------------------------------------------------------------------------ $ 763,505 Total Investments (cost $729,819,913) - 97.2% 748,153,851 =============----------------------------------------------------------------------------------------------------------------------- 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.9% $ 2,300 Louisiana Offshore Terminal Authority, Deepwater Port Refunding VMIG-1 $ 2,300,000 Revenue Bonds (Loop Inc. Project), First Stage Series 1992A, Variable Rate Demand Bonds, 4.600%, 9/01/08+ 2,600 Missouri Health and Educational Facilities Authority VMIG-1 2,600,000 (St. Louis University) Series 1998B, Variable Rate Demand Bonds, 4.650%, 10/01/24+ 2,100 Power County, Idaho (FMC Corporation Project), 1985 Series, VMIG-1 2,100,000 Variable Rate Demand Bonds, 4.650%, 12/01/10+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 7,000 Total Short-Term Investments (cost $7,000,000) 7,000,000 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 14,528,891 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $769,682,742 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
27 Nuveen Quality Income Municipal Fund, Inc. (NQU) Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 2.5% $ 5,180 Alabama Drinking Water Finance Authority, Revolving Fund Loan 9/08 at 100 AAA $ 4,618,125 Bonds, Series 1998A, 4.850%, 8/15/22 3,500 The Governmental Utility Services Corporation of the City of 6/08 at 102 AAA 3,311,210 Bessemer (Alabama), Water Supply Revenue Bonds, Series 1998, 5.200%, 6/01/24 17,000 The Industrial Development Board of the Town of Courtland 6/05 at 102 Baa1 16,776,790 (Alabama), Pollution Control Refunding Revenue Bonds (Champion International Corporation Project), Series 1995, 6.150%, 6/01/19 6,480 The Industrial Development Board of the Town of Courtland 10/08 at 102 Baa1 5,808,154 (Alabama), Solid Waste Disposal Revenue Bonds (Champion International Corporation Project), Refunding Series 1998A, 5.700%, 10/01/28 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.5% 6,750 Alaska Housing Finance Corporation, General Housing Purpose 12/02 at 102 Aa2*** 6,983,010 Bonds, 1992 Series A, 6.600%, 12/01/23 (Pre-refunded to 12/01/02) 11,590 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102 AAA 11,590,695 Bonds, 1995 Series A, 5.875%, 12/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.8% 5,000 The Industrial Development Authority of the County of Maricopa, 3/10 at 103 AAA 4,992,100 Arizona, Multifamily Housing Revenue Bonds, Bay Club at Mesa Cove Project, Series 2000A, 5.800%, 9/01/35 5,105 Yuma Regional Medical Center on behalf of Hospital District No. 1 8/02 at 101 1/2 N/R*** 5,482,157 of Yuma County, Arizona, Hospital Revenue Improvement and Refunding Bonds (Yuma Regional Medical Center Project), Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.6% 1,835 Arkansas Development Finance Authority, Single Family 8/01 at 103 AA 1,904,693 Mortgage Revenue Refunding Bonds, 1991 Series A (FHA-Insured or VA Guaranteed Mortgage Loans), 8.000%, 8/15/11 5,915 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102 AAA 6,086,831 Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program), 6.700%, 7/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 8.5% Brea Public Financing Authority (Orange County, California), 1991 Tax Allocation Revenue Bonds, Series A (Redevelopment Project AB): 10,580 7.000%, 8/01/15 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 11,041,923 4,420 7.000%, 8/01/15 8/01 at 102 AAA 4,589,109 2,585 California Housing Finance Agency, Home Mortgage Revenue 8/01 at 102 Aa2 2,642,051 Bonds, 1991 Series G, 7.050%, 8/01/27 (Alternative Minimum Tax) 3,000 California Health Facilities Financing Authority, Kaiser 5/03 at 102 A 2,891,910 Permanente, Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 13,750 State of California, General Obligation Bonds, 4.500%, 12/01/18 12/08 at 101 AA 12,250,288 State of California, General Obligation Veterans Welfare Bonds, Series 1997BH: 4,100 5.300%, 12/01/12 (Alternative Minimum Tax) 12/08 at 101 AA 4,194,464 5,000 5.600%, 12/01/32 (Alternative Minimum Tax) 12/03 at 102 AA 4,927,900 10,250 State of California, General Obligation Refunding Bonds, 2/08 at 101 AA 9,778,295 5.000%, 2/01/21 20,000 State of California, Various Purpose General Obligation Bonds, 4/09 at 101 AA 17,659,800 4.750%, 4/01/29 3,500 State Public Works Board of the State of California, 10/02 at 102 Aaa 3,735,655 Lease Revenue Bonds (The Trustees of the California State University), 1992 Series A (Various California State University Projects), 6.625%, 10/01/10 (Pre-refunded to 10/01/02) 17,000 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa 19,101,030 Revenue Bonds (Department of Corrections), 1994 Series A (California State Prison, Monterey County (Soledad II)), 7.000%, 11/01/19 (Pre-refunded to 11/01/04) 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100 AAA $ 7,856,295 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 2,500 The Community Redevelopment Agency of the City of Los Angeles, 1/01 at 100 BBB*** 2,513,450 California, Central Business District Redevelopment Project, Tax Allocation Refunding Bonds, Series G, 6.750%, 7/01/10 1,740 Southern California Home Financing Authority, Single Family 3/01 at 102 AAA 1,779,968 Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program), 1991 Issue A, 7.350%, 9/01/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 3.5% City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 3,425 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 3,638,891 3,040 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 3,123,904 8,765 City and County of Denver, Colorado, Airport System Revenue 11/00 at 102 A 8,953,185 Bonds, Series 1990A, 8.500%, 11/15/23 (Alternative Minimum Tax) City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 3,165 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 3,305,684 3,825 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 3,889,949 10,000 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 9,845,000 Refunding Bonds, Series 2000A, 5.625%, 11/15/23 (Alternative Minimum Tax) 14,400 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 65 5/8 AAA 5,354,640 Series 2000A and 2000B, 0.000%, 9/01/17 5,110 County of Pueblo, Colorado, Hospital Refunding and Improvement 9/01 at 100 N/R*** 5,265,242 Revenue Bonds (Parkview Episcopal Medical Center, Inc. Project), Series 1991B, 8.300%, 9/01/11 (Pre-refunded to 9/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.8% 5,250 Dade County Industrial Development Authority, Solid Waste 2/01 at 102 AA- 5,379,728 Disposal Revenue Bonds (Florida Power and Light Company Project), Series 1991, 7.150%, 2/01/23 (Alternative Minimum Tax) 5,000 Health Facilities Authority of Orange County, Florida, Hospital 11/10 at 101 A- 4,963,900 Revenue Bonds, Series 2000, Adventist Health System/Sunbelt Obligated Group, 6.500%, 11/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.9% Clayton County Hospital Authority, Georgia, Revenue Anticipation Certificates (Southern Regional Medical Center Project), Series 1991: 2,900 6.500%, 8/01/10 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 3,001,964 4,500 7.000%, 8/01/13 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 4,674,645 15,900 The Fulton-De Kalb Hospital Authority, Georgia, Revenue 1/01 at 102 AAA 16,281,123 Certificates, Series 1991 (Grady Memorial Hospital), 6.900%, 1/01/20 (Pre-refunded to 1/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.8% 10,000 State of Hawaii, Airports System Revenue Bonds, 7/10 at 101 AAA 10,162,500 Refunding Series 2000B, 5.750%, 7/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.3% 10,000 Central Lake County Joint Action Water Agency, Lake County, 5/01 at 102 AAA 10,328,200 Illinois, Water Revenue Bonds, Series 1991, 7.000%, 5/01/20 (Pre-refunded to 5/01/01) 32,670 City of Chicago (Illinois), General Obligation Bonds (City Colleges No Opt. Call AAA 5,367,028 of Chicago Capital Improvement Project), Series 1999, 0.000%, 1/01/32 5,000 City of Chicago (Illinois), General Obligation Bonds (Neighborhoods 7/10 at 101 AAA 5,184,950 Alive 21 Program), Series 2000A, 6.000%, 1/01/28 Chicago School Reform Board of Trustees of the Board of Education of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A: 9,400 0.000%, 12/01/14 No Opt. Call AAA 4,330,204 4,400 0.000%, 12/01/15 No Opt. Call AAA 1,899,876 6,100 City of Chicago, Chicago-O'Hare International Airport, Special 11/00 at 103 Baa2 6,386,273 Facility Revenue Bonds (United Air Lines, Inc. Project), Series 1984B, 8.850%, 5/01/18 City of Chicago (Illinois), Second Lien Wastewater Transmission Revenue Bonds, Series 2000: 8,000 5.750%, 1/01/25 1/10 at 101 AAA 8,063,600 7,750 6.000%, 1/01/30 1/10 at 101 AAA 8,020,553 29 Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 24,430 The County of Cook, Illinois, General Obligation Bonds, 11/01 at 102 AAA $ 25,468,764 Series 1991, 6.750%, 11/01/18 (Pre-refunded to 11/01/01) Illinois Development Finance Authority, Multifamily Housing Revenue Bonds, Series 1992 (Town and Garden Apartments Project): 4,420 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 N/R 4,602,811 1,150 7.200%, 9/01/08 (Alternative Minimum Tax) 3/02 at 102 N/R 1,188,859 11,000 Illinois Health Facilities Authority, Hospital Revenue Bonds, 11/03 at 102 AAA 11,929,170 Series 1993-A (Hinsdale Hospital), 7.000%, 11/15/19 10,000 Illinois Health Facilities Authority, Revenue Bonds, 2/10 at 101 AAA 10,037,300 Series 2000 (Iowa Health System), 5.875%, 2/15/30 2,720 Illinois Housing Development Authority, Section 8 Elderly 9/02 at 102 A 2,788,272 Housing Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 14,500 Illinois Health Facilities Authority, Revenue Bonds, 8/01 at 102 AA+ 15,017,070 Series 1991 (Northwestern Memorial Hospital), 6.750%, 8/15/11 3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 8/01 at 102 AAA 3,110,880 Series 1991 (Sherman Hospital Project), 6.750%, 8/01/21 (Pre-refunded to 8/01/01) 3,545 Joliet Regional Port District Airport Facilities, Revenue Bonds, 7/07 at 103 N/R 3,458,502 Lewis University Airport, Series 1997A, 7.250%, 7/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 0.9% 5,905 Indiana Health Facility Financing Authority, Hospital Revenue 7/01 at 102 AAA 6,122,009 Bonds, Series 1992 (Community Hospitals Projects), 7.000%, 7/01/11 (Pre-refunded to 7/01/01) 5,125 City of Petersburg, Indiana, Pollution Control Refunding 12/04 at 102 Aa2 5,353,473 Revenue Bonds, Series 1995A (Indianapolis Power and Light Company Project), 6.625%, 12/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.0% 8,585 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102 AAA 7,786,767 Series 1998A (Iowa Health System), 5.125%, 1/01/28 4,500 Polk County, Iowa, Health Facilities Revenue Bonds, 11/01 at 101 AAA 4,648,230 Catholic Health Corporation (Mercy Health Center of Central Iowa Project), Series 1991, 6.750%, 11/01/15 (Pre-refunded to 11/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.8% 4,585 Unified School District No. 232, DeSoto, Johnson County, 9/10 at 100 Aaa 4,202,107 Kansas, General Obligation Bonds, Series 2000, 4.750%, 9/01/19 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991B (Shawnee Mission Medical Center, Inc. Project): 7,380 7.250%, 9/01/11 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 7,687,525 10,000 7.250%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 10,416,700 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.9% 10,000 City of Danville, Kentucky, Multi-City Lease Revenue Bonds 3/02 at 102 AAA 10,498,500 (Louisville and Jefferson County Metropolitan Sewer District - Sewer and Drainage System Revenue Project), Series 1991-G, 6.800%, 3/01/19 (Pre-refunded to 3/01/02) 3,000 Kentucky Development Finance Authority, Hospital Facilities 9/01 at 102 N/R*** 3,120,450 Revenue Bonds, Series 1991 (St. Claire Medical Center, Inc. Project), 7.125%, 9/01/21 (Pre-refunded to 9/01/01) 9,260 Kentucky Housing Corporation, Housing Revenue Bonds 1/05 at 102 AAA 9,515,298 (Federally Insured or Guaranteed Mortgage Loans), 1995 Series B, 6.625%, 7/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.3% 3,385 Community Development Administration, Department of 5/01 at 102 Aa2 3,470,641 Housing and Community Development, State of Maryland, Multifamily Housing Revenue Bonds (Insured Mortgage Loans), 1991 Series E, 7.100%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 6.6% 8,185 Boston Water and Sewer Commission, General Revenue Bonds 11/08 at 101 AAA 7,184,384 (Senior), 1998 Series D, 4.750%, 11/01/22 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS (continued) $ 19,600 Massachusetts Bay Transportation Authority, General 3/01 at 102 Aaa $ 20,160,364 Transportation System Bonds, 1991 Series A, 7.000%, 3/01/22 (Pre-refunded to 3/01/01) 15,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 15,725,850 Revenue Bonds (Semass Project), Series 1991A, 9.000%, 7/01/15 3,245 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,401,928 Revenue Bonds (Semass Project), Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 6,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB 5,271,180 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) 13,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101 AAA 11,949,795 System Revenue Bonds, 1999 Series A (Subordinated), 5.000%, 1/01/39 7,675 Massachusetts Water Pollution Abatement Trust, Water 8/09 at 101 AA+ 7,751,213 Pollution Abatement Revenue Bonds (MWRA Program), Subordinate Series 1999A, 5.750%, 8/01/29 10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101 AAA 10,066,100 Bonds, 2000 Series A, 5.750%, 8/01/39 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.7% 7,000 City of Grand Rapids, Michigan, Water Supply System Refunding 1/01 at 102 AAA 7,156,940 Revenue Bonds, Series 1991, 6.250%, 1/01/11 5,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 5,218,250 Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) 7,425 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101 AA- 7,336,346 Bonds (Henry Ford Health System), Series 1999A, 6.000%, 11/15/24 8,500 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102 BBB 8,515,895 (Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) 16,875 Michigan Strategic Fund, Limited Obligation Refunding 12/01 at 102 AAA 17,542,744 Revenue Bonds (The Detroit Edison Company Pollution Control Bonds Project), Collateralized Series 1991DD, 6.875%, 12/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.3% City of Chaska, Minnesota, Electric Revenue Bonds (Generating Facilities), Series 2000A: 1,930 6.000%, 10/01/20 10/10 at 100 A3 1,953,604 2,685 6.000%, 10/01/25 10/10 at 100 A3 2,703,768 3,655 The Dakota County Housing and Redevelopment Authority, No Opt. Call AAA 4,925,624 The Washington County Housing and Redevelopment Authority and The City of Bloomington, Minnesota, Single Family Residential Mortgage Revenue Bonds (Mortgage Backed Program), Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) 3,345 Minnesota Housing Finance Agency, Single Family Mortgage 1/04 at 102 AA+ 3,448,126 Bonds, 1994 Series J, 6.950%, 7/01/26 (Alternative Minimum Tax) 2,400 Washington County Housing and Redevelopment Authority, 8/01 at 102 AAA 2,475,648 Multifamily Housing Revenue Bonds (FHA- Insured Mortgage Loan - Cottages Phase III Project), Series 1991, 7.650%, 8/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.5% 3,240 Canton Housing Development Corporation, 1990 Multifamily No Opt. Call AAA 3,796,438 Mortgage Revenue Refunding Bonds (Canton Estates Apartments Project - FHA-Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/24 1,165 Charter Mortgage Corporation, 1990 Multifamily Mortgage 8/01 at 100 AAA 1,352,961 Revenue Refunding Bonds (Church Garden Apartments - FHA-Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/21 1,285 Pearl Housing Development Corporation, 1990 Multifamily 12/00 at 100 AAA 1,286,221 Mortgage Revenue Refunding Bonds (Rose Garden Apartments Project - FHA-Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.1% The Industrial Development Authority of the County of Jackson, State of Missouri, Health Care System Revenue Bonds, St. Mary's Hospital of Blue Springs Issue, Series 1994: 5,185 6.500%, 7/01/12 7/02 at 102 Baa1 5,138,491 5,605 7.000%, 7/01/22 at 102 Baa1 5,638,294 15,350 The Public Building Corporation of the City of Springfield, No Opt. Call AAA 2,639,893 Missouri, Leasehold Revenue Bonds, Series 2000A (Jordan Valley Park Projects), 0.000%, 6/01/30 31 Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.6% $ 7,000 City of Forsyth, Rosebud County, Montana, Pollution Control 8/01 at 102 AAA $ 7,242,340 Revenue Refunding Bonds (Puget Sound Power and Light Company Colstrip Project), Series 1992, 7.050%, 8/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.6% 11,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 11,299,640 Revenue Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) 8,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 8,210,240 Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.2% 2,680 New Hampshire Housing Finance Authority, Single Family 7/01 at 102 Aa3 2,772,916 Residential Mortgage Bonds, 1991 Series C, 7.100%, 1/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 0.9% 11,785 Pollution Control Financing Authority of Camden County 12/01 at 102 B2 11,182,315 (New Jersey), Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991D, 7.250%, 12/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 16.4% 25,000 Erie Tobacco Asset Securitization Corporation, Erie County, 7/10 at 101 Aa3 24,495,000 New York, Tobacco Settlement Asset- Backed Bonds (Senior), Series 2000, 6.125%, 7/15/30 15,000 Metropolitan Transportation Authority, New York, Dedicated 4/10 at 100 AAA 15,595,050 Tax Fund Bonds, Series 2000A, 6.000%, 4/01/30 2,120 Niagara Falls Housing and Commercial Rehabilitation Corporation, No Opt. Call AA 2,356,592 1992 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Project), 7.350%, 8/01/23 25,000 Nassau County Tobacco Settlement Corporation (New York), 7/09 at 101 A- 25,041,750 Tobacco Settlement Asset-Backed Bonds, Series A, 6.400%, 7/15/33 6,000 The City of New York, New York, General Obligation Bonds, 8/07 at 101 A 6,224,280 Fiscal 1997 Series H, 6.125%, 8/01/25 10,000 The City of New York, New York, General Obligation Bonds, 5/10 at 101 A 9,837,700 Fiscal 2000 Series A, 5.500%, 5/15/24 5,475 The City of New York, New York, General Obligation Bonds, 8/04 at 101 Aaa 6,059,018 Fiscal 1995 Series B1, 7.250%, 8/15/19 (Pre-refunded to 8/15/04) 14,800 The City of New York, New York, General Obligation Bonds, 6/07 at 102 AAA 14,914,996 Fiscal 1997 Series M, 5.500%, 6/01/17 6,700 The City of New York, New York, General Obligation Bonds, 2/05 at 101 A*** 7,305,881 Fiscal 1995 Series F, 6.625%, 2/15/25 (Pre-refunded to 2/15/05) 5,660 The City of New York, New York, General Obligation Bonds, 10/02 at 101 1/2 A*** 5,991,053 Fiscal 1993 Series B, 6.750%, 10/01/17 (Pre-refunded to 10/01/02) 4,190 New York City Municipal Water Finance Authority, Water 6/05 at 101 AAA 4,258,507 and Sewer System Revenue Bonds, Fiscal 1996 Series A, 5.875%, 6/15/25 10,100 New York City Transitional Finance Authority, Future Tax 5/10 at 101 AA 10,369,771 Secured Bonds, Fiscal 2000 Series B, 5.750%, 11/15/19 8,325 Dormitory Authority of the State of New York, Menorah 8/01 at 102 AA*** 8,678,480 Campus, Inc., FHA-Insured Mortgage Revenue Bonds, Series 1991, 7.400%, 2/01/31 (Pre-refunded to 8/01/01) 5,000 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 A 5,004,050 Services Facilities Improvement Revenue Bonds, Series 1997A, 5.750%, 2/15/27 10,000 Dormitory Authority of the State of New York, Mental 2/10 at 100 AAA 10,369,900 Health Services Facilities Improvement Revenue Bonds, Series 2000B, 6.000%, 2/15/30 21,075 New York Local Government Assistance Corporation, 4/01 at 102 AAA 21,774,058 Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) 8,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 8,769,040 New York Hospital FHA-Insured Mortgage Revenue Bonds, Series 1994A, 6.500%, 8/15/29 (Pre-refunded to 2/15/05) 5,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 5,547,450 Brookdale Hospital Medical Center Secured Hospital Revenue Bonds, 1995 Series A, 6.850%, 2/15/17 (Pre-refunded to 2/15/05) 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) New York State Medical Care Facilities Finance Agency, FHA-Insured Mortgage Project Revenue Bonds, 1995 Series F: $ 4,050 6.200%, 8/15/15 (Pre-refunded to 8/15/05) 8/05 at 102 AA*** $ 4,418,874 4,250 6.300%, 8/15/25 8/05 at 102 AA 4,655,238 3,225 Penfield-Crown Oak Housing Development Corporation, 2/03 at 100 AAA 3,308,818 1991 Multifamily Mortgage Revenue Refunding Bonds (Crown Oak Estates - FHA-Insured Mortgage Section 8 Assisted Project), Series A, 7.350%, 8/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.9% 10,500 North Carolina Eastern Municipal Power Agency, Power 1/02 at 102 BBB 10,748,115 System Revenue Bonds, Refunding Series 1991A, 6.250%, 1/01/03 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.9% 4,800 County of Butler, Ohio, Hospital Facilities Revenue Refunding 1/02 at 102 Baa1 4,932,288 and Improvement Bonds, Series 1991 (Fort Hamilton-Hughes Memorial Hospital Center), 7.500%, 1/01/10 5,630 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102 Aaa 5,862,125 Bonds (GNMA Mortgage-Backed Securities Program), 1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 3.8% 3,310 Oklahoma County Home Finance Authority (Oklahoma), 7/01 at 102 Aaa 3,400,396 Single Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 17,510 Pottawatomie County Home Finance Authority (Oklahoma), No Opt. Call AAA 22,568,814 Municipal Refunding Collateralized Mortgage Obligations, Series 1991A, 8.625%, 7/01/10 10,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable 12/00 at 102 Baa1 10,207,000 Rate Revenue Obligations, 7.375%, 12/01/20 (Alternative Minimum Tax) 10,100 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, 6/01 at 102 Baa1 10,372,700 Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.9% 7,000 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 7,125,650 Resource Recovery Revenue Refunding Bonds, 2000 Series (Panther Creek Partners Project), 6.650%, 5/01/10 (Alternative Minimum Tax) Falls Township Hospital Authority, Refunding Revenue Bonds, The Delaware Valley Medical Center Project (FHA-Insured Mortgage), Series 1992: 955 6.900%, 8/01/11 8/02 at 102 AAA 960,014 3,000 7.000%, 8/01/22 8/02 at 102 AAA 3,151,230 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 0.5% 6,500 Lexington County Health Services District, Inc., South Carolina, 10/01 at 102 AAA 6,766,045 Hospital Revenue Bonds, Series 1991, 6.750%, 10/01/18 (Pre-refunded to 10/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.7% 10,300 Metropolitan Nashville Airport Authority (Tennessee), Airport 7/01 at 102 AAA 10,641,960 Improvement Revenue Bonds, Refunding Series 1991C, 6.625%, 7/01/07 10,000 Tennessee Housing Development Agency, Homeownership 7/10 at 100 AA 10,272,800 Program Bonds, Issue 2000-2B, 6.350%, 1/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 11.3% 14,360 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa1 14,661,560 Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) Arlington Independent School District (Tarrant County, Texas), Unlimited Tax Refunding and Improvement Bonds, Series 1995: 3,410 0.000%, 2/15/11 2/05 at 71 15/16 Aaa 1,957,170 4,105 0.000%, 2/15/14 2/05 at 58 25/32 Aaa 1,900,779 6,500 Bell County Health Facilities Development Corporation, 11/08 at 101 A- 5,572,125 Retirement Facility Revenue Bonds (Buckner Retirement Services, Inc. Obligated Group Project), Series 1998, 5.250%, 11/15/19 14,375 Dallas-Fort Worth, Texas, International Airport Facilities No Opt. Call Baa1 14,521,338 Improvement Corporation, Revenue Refunding Bonds (American Airlines), Series 2000C, 6.150%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/07) 33 Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 4,815 Fort Worth Housing Finance Corporation, Home Mortgage 10/01 at 103 Aa $ 5,004,759 Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11 11,000 Harris County Health Facilities Development Corporation (Texas), 10/09 at 101 AA 9,956,760 Texas Children's Hospital Project, Series 1999A Hospital Revenue Bonds, 5.250%, 10/01/29 7,815 City of Houston, Texas, Airport System Subordinate Lien 7/01 at 102 AAA 8,084,774 Revenue Bonds, Series 1991B, 6.625%, 7/01/22 (Pre-refunded to 7/01/01) 13,175 Houston Independent School District (Texas), Limited Tax 2/09 at 100 AAA 11,462,118 Schoolhouse and Refunding Bonds, Series 1999A, 4.750%, 2/15/26 36,735 City of Houston, Texas, Water and Sewer System, No Opt. Call AAA 7,215,489 Junior Lien Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/28 22,500 City of Houston, Texas, Water and Sewer System 12/10 at 100 AAA 21,250,575 Junior Lien Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30 16,270 City of Houston, Texas, Water and Sewer System 12/01 at 102 AAA 16,881,589 Junior Lien Revenue Refunding Bonds, Series 1991C, 6.375%, 12/01/17 7,650 Port Authority of Corpus Christi, Nueces County, Texas, 5/06 at 101 BBB- 7,031,574 Revenue Refunding Bonds, Series 1992 (Union Pacific Corporation Project), 5.350%, 11/01/10 14,680 San Antonio Independent School District (Bexar County, Texas), 8/09 at 100 AAA 14,891,392 Unlimited Tax School Building Bonds, Series 1999, 5.800%, 8/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.5% 5,800 Carbon County, Utah, Solid Waste Disposal Refunding 2/05 at 102 BB- 5,742,058 Revenue Bonds, Series 1995, Laidlaw/ECDC Project, Guaranteed by Allied Waste Industries, 7.500%, 2/01/10 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.7% 8,320 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ 8,575,840 Mortgage Bonds, 1992 Series A, 7.150%, 1/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 3.5% 4,185 Public Utility District No. 1 of Douglas County, Washington, 9/06 at 106 AA- 5,147,424 Wells Hydro-Electric Revenue Bonds, Series of 1986, 8.750%, 9/01/18 12,415 Federal Way School District No. 210, King County, Washington, 12/03 at 100 A1*** 13,279,829 Unlimited Tax General Obligation Bonds, Series 1991, 6.950%, 12/01/11 (Pre-refunded to 12/01/03) 1,675 Spokane Downtown Foundation, Parking Revenue Bonds, 8/08 at 102 N/R 1,225,762 Series 1998 (River Park Square Project), 5.600%, 8/01/19 4,000 North Thurston School District No. 3, Thurston County, 12/02 at 100 A 4,136,280 Washington, Unlimited Tax General Obligation Bonds, Series 1992, 6.500%, 12/01/09 18,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA 15,789,420 Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28 4,175 Washington State University, Recreation Center Revenue 4/08 at 101 AAA 3,773,490 Bonds, Series 1998, 5.000%, 4/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.5% 7,000 Wisconsin Housing and Economic Development Authority, 1/02 at 102 AA 7,267,610 Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 10,820 Wisconsin Health and Educational Facilities Authority, 12/01 at 102 AAA 11,304,082 Revenue Bonds, Series 1991-B (Novus Health Group), 6.750%, 12/15/20 (Pre-refunded to 12/15/01) 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.1% $ 1,025 Wyoming Community Development Authority, Single Family 11/01 at 103 AA $ 1,059,040 Mortgage Bonds, Series 1988G (Federally Insured or Guaranteed Mortgage Loans), 7.250%, 6/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,268,065 Total Investments (cost $1,161,333,016) - 96.3% 1,193,385,258 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.7% 46,443,886 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $1,239,829,144 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
35 Nuveen Premier Municipal Income Fund, Inc. (NPF) Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.0% $ 4,360 Alabama Higher Education Loan Corporation, Student Loan No Opt. Call AAA $ 4,498,997 Revenue Refunding Bonds, Series 1994-D, 5.850%, 9/01/04 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.1% 565 Municipality of Anchorage, Alaska, Home Mortgage Revenue 3/02 at 102 AAA 584,572 Bonds (Mortgage-Backed Securities Program), Series 1992, 8.000%, 3/01/09 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 4.7% 5,500 Arizona Educational Loan Marketing Corporation, 1992 Educational No Opt. Call Aa2 5,540,095 Loan Revenue Bonds, Series B, 6.950%, 3/01/01 (Alternative Minimum Tax) 3,650 Gilbert Unified School District No. 41 of Maricopa County, 7/04 at 100 AAA 3,849,509 Arizona, School Improvement Bonds, Project of 1993, Series C (1994), 6.100%, 7/01/14 (Pre-refunded to 7/01/04) 10,960 Yuma Regional Medical Center on behalf of Hospital District 8/02 at 101 1/2 N/R*** 11,769,725 No. 1 of Yuma County, Arizona, Hospital Revenue Improvement and Refunding Bonds (Yuma Regional Medical Center Project), Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.7% 1,105 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 1,136,725 Mortgage Revenue Bonds, 1994 Series C (Mortgage-Backed Securities Program), 6.600%, 7/01/17 1,385 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 1,418,572 Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program), 6.550%, 7/01/18 (Alternative Minimum Tax) 184 Drew County (Arkansas), Public Facilities Board, Single Family 8/03 at 103 Aaa 191,000 Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 8/01/11 275 Residential Housing Facilities Board of Greene County, 1/02 at 103 Aa 283,649 Arkansas, Subordinated Mortgage Revenue Bonds, Series 1991-1, 7.250%, 1/01/10 245 Public Facilities Board of Stuttgart, Arkansas, Single Family 9/03 at 103 Aaa 258,514 Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 3.7% Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A: 33,000 0.000%, 1/01/17 No Opt. Call AAA 13,802,580 10,000 0.000%, 1/01/22 No Opt. Call AAA 3,071,700 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 1.4% Colorado Health Facilities Authority, Hospital Refunding Revenue Bonds (National Jewish Center For Immunology and Respiratory Medicine Project), Series 1992: 795 6.600%, 2/15/02 No Opt. Call N/R*** 806,066 1,250 6.875%, 2/15/12 (Pre-refunded to 2/15/02) 2/02 at 102 N/R*** 1,308,413 3,040 7.100%, 2/15/22 (Pre-refunded to 2/15/02) 2/02 at 102 N/R*** 3,190,328 1,000 Colorado Health Facilities Authority, Hospital Revenue 12/09 at 101 Aaa 1,006,410 Bonds (Poudre Valley Health Care, Inc.), Series 1999A, 5.750%, 12/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 1.3% 4,490 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102 AA 4,605,977 Finance Program Bonds, 1997 Series A, Subseries A-4, 6.200%, 11/15/22 (Alternative Minimum Tax) 1,300 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102 AA 1,350,544 Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.4% $ 1,600 District of Columbia, Hospital Revenue Refunding Bonds, 8/02 at 102 A3*** $ 1,670,752 Washington Hospital Center Medlantic Issue, Series 1992A, 7.000%, 8/15/05 (Pre-refunded to 8/15/02) District of Columbia Housing Finance Agency, Multifamily Housing Refunding Revenue Bonds, Series 1992B (FHA-Insured Mortgage Loans - Section 8 Assisted Project): 920 7.200%, 9/01/12 9/02 at 102 Aa 953,516 3,505 7.250%, 3/01/24 9/02 at 102 Aa 3,638,155 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.9% 4,000 Dade County, Florida, Aviation Bonds, Series 1996A, 10/06 at 102 AAA 4,054,320 5.750%, 10/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.5% 8,000 George L. Smith II World Congress Center Authority, 7/10 at 101 AAA 7,873,760 Refunding Revenue Bonds (Domed Stadium Project), Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax) 10,000 State of Georgia, General Obligation Bonds, Series 2000C, 7/10 at 100 AAA 8,205,100 4.000%, 7/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.5% 2,250 Department of Budget and Finance of the State of Hawaii, 1/09 at 101 AAA 2,332,508 Special Purpose Revenue Bonds (Hawaii Electric Company, Inc. and Subsidiaries Project), Series 1999D, 6.150%, 1/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.3% 1,140 Idaho Housing and Finance Association, Single Family 7/06 at 102 Aa1 1,182,670 Mortgage Bonds, 1996 Series E, 6.350%, 7/01/14 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 21.3% 4,500 City of Chicago (Illinois), General Obligation Adjustable 7/02 at 101 1/2 AAA 4,737,780 Rate Bonds, Central Public Library Project, Series C of 1988, 6.850%, 1/01/17 (Pre-refunded to 7/01/02) City of Chicago (Illinois), General Obligation Bonds (City Colleges of Chicago Capital Improvement Project), Series 1999: 8,670 0.000%, 1/01/24 No Opt. Call AAA 2,284,892 16,670 0.000%, 1/01/26 No Opt. Call AAA 3,905,948 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A: 5,000 0.000%, 12/01/16 No Opt. Call AAA 2,036,950 10,000 0.000%, 12/01/20 No Opt. Call AAA 3,148,400 9,900 0.000%, 12/01/24 No Opt. Call AAA 2,426,193 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1999A: 15,000 0.000%, 12/01/21 No Opt. Call AAA 4,441,200 10,000 0.000%, 12/01/23 No Opt. Call AAA 2,609,700 1,100 Public Building Commission of Chicago (Illinois), Building No Opt. Call AAA 1,236,158 Revenue Bonds, Series B of 1990 (Board of Education of the City of Chicago), 7.000%, 1/01/15 13,000 City of Chicago (Illinois), Wastewater Transmission Revenue 1/06 at 102 AAA 12,048,790 Bonds, Series 1995, 5.125%, 1/01/25 7,450 Town of Cicero, Cook County, Illinois, General Obligation 12/04 at 102 N/R*** 8,318,894 Tax Increment Bonds, Series 1995A, 8.125%, 12/01/12 (Pre-refunded to 12/01/04) 6,210 Illinois Development Finance Authority, Multifamily Housing 3/02 at 102 N/R 6,466,846 Revenue Bonds, Series 1992 (Town and Garden Apartments Project), 7.800%, 3/01/06 (Alternative Minimum Tax) Illinois Development Finance Authority, Multifamily Housing Bonds, Series 1990 (Affordable Housing Preservation Foundation Project), Subseries B (FHA-Insured Mortgage Loans - Lawless Gardens Project): 600 7.650%, 7/01/07 1/02 at 105 AAA 638,568 5,270 7.650%, 12/31/31 1/02 at 105 AAA 5,616,819 7,400 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 7/02 at 102 Baa2*** 7,814,104 (Trinity Medical Center), 7.000%, 7/01/12 (Pre-refunded to 7/01/02) 125 Illinois Health Facilities Authority, Revenue Refunding Bonds, 4/02 at 102 AA-*** 131,341 Series 1992A (Evangelical Hospitals Corporation), 6.750%, 4/15/12 (Pre-refunded to 4/15/02) 37 Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 4,590 Illinois Housing Development Authority, Section 8 Elderly 9/02 at 102 A $ 4,705,209 Housing Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 620 Illinois Housing Development Authority, Section 8 Elderly 1/03 at 102 A*** 655,755 Housing Revenue Bonds (Morningside North Development), Series 1992D, 6.600%, 1/01/07 (Pre-refunded to 1/01/03) Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Refunding Bonds, Series 1996A: 8,330 0.000%, 12/15/16 No Opt. Call AAA 3,440,790 9,400 0.000%, 12/15/18 No Opt. Call AAA 3,412,576 10,775 0.000%, 12/15/24 No Opt. Call AAA 2,687,608 2,000 Onterie Center Housing Finance Corporation (An Illinois 7/02 at 102 AAA 2,086,700 Not For Profit Corporation), Mortgage Revenue Refunding Bonds, Series 1992A (FHA-Insured Mortgage Loan - Onterie Center Project), 7.050%, 7/01/27 Village of Sugar Grove, Kane County, Illinois, Waterworks and Sewerage Refunding Revenue Bonds, Series 1992: 1,395 7.500%, 5/01/17 (Pre-refunded to 5/01/02) 5/02 at 102 N/R*** 1,480,834 1,440 7.500%, 5/01/17 5/02 at 102 N/R 1,500,811 5,190 Town of Wood River, Wood River Township Hospital, 2/04 at 102 N/R 4,333,910 Madison County, Illinois, General Obligation Bonds (Alternate Revenue Source), Series 1993, 6.625%, 2/01/14 5,135 Town of Wood River, Wood River Township Hospital, 2/04 at 102 N/R 4,238,224 Madison County, Illinois, General Obligation Tort Immunity Bonds, Series 1993, 6.500%, 2/01/14 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.7% Crown Point Multi-School Building Corporation, Indiana, First Mortgage Bonds, Series 2000 (Crown Point Community School Corporation): 7,480 0.000%, 1/15/21 No Opt. Call AAA 2,356,050 7,980 0.000%, 1/15/22 No Opt. Call AAA 2,359,207 6,180 0.000%, 1/15/23 No Opt. Call AAA 1,717,607 29,255 The Indianapolis Local Public Improvement Bond Bank, No Opt. Call AAA 7,192,634 Indiana, Series 1999E, 0.000%, 2/01/25 2,860 PHM Elementary/Middle School Building Corporation, St. Joseph No Opt. Call A 3,101,470 County, Indiana, First Mortgage Bonds, Series 1994, 6.300%, 1/15/09 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.4% 1,655 Iowa Student Loan Liquidity Corporation, Student Loan 12/02 at 102 Aaa 1,704,865 Revenue Bonds, Senior Series B, 5.750%, 12/01/06 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.8% 1,675 City of Hutchinson, Kansas, Single Family Mortgage Revenue 6/02 at 103 A 1,746,941 Refunding Bonds, Series 1992, 8.875%, 12/01/12 6,440 The Unified Government of Wyandotte County, Kansas City, No Opt. Call AAA 2,052,686 Kansas, Sales Tax Special Obligation Revenue Bonds (Kansas International Speedway Corporation Project), Series 1999, 0.000%, 12/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.1% 5,000 Kentucky Rural Economic Development Authority, Economic 7/02 at 102 N/R 5,129,800 Development Project Revenue Bonds, Series 1992 (Donnelly Corporation Project), 8.125%, 7/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.3% 1,310 Louisiana Housing Finance Agency, Mortgage Revenue 9/05 at 103 AAA 1,328,746 Bonds (GNMA Collateralized Mortgage Loan - St. Dominic Assisted Care Facility), Series 1995, 6.850%, 9/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 1.8% 7,965 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A 8,126,291 Student Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.4% 6,000 Anne Arundel County, Maryland, Multifamily Housing No Opt. Call BBB 6,270,300 Revenue Bonds (Woodside Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03) 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 7.5% $ 30 Massachusetts Municipal Wholesale Electric Company, No Opt. Call BBB+ $ 32,831 Power Supply System Revenue Bonds, 1987 Series A, 8.750%, 7/01/18 2,450 Massachusetts Health and Educational Facilities Authority, 4/02 at 102 AAA 2,579,385 Revenue Bonds, New England Deaconess Hospital Issue, Series D, 6.875%, 4/01/22 (Pre-refunded to 4/01/02) 3,875 Massachusetts Health and Educational Facilities Authority, 2/04 at 102 Aa2 3,970,325 Revenue Refunding Bonds, Youville Hospital Issue (FHA-Insured Project), Series B, 6.000%, 2/15/25 6,585 Massachusetts Health and Educational Facilities Authority, 5/08 at 102 AAA 5,690,955 Catholic Health East Issue, Series 1998B, 5.000%, 11/15/28 8,960 Massachusetts Industrial Finance Agency, Resource 7/01 at 103 N/R 9,393,306 Recovery Revenue Bonds (Semass Project), Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 2,000 Massachusetts Housing Finance Agency, Rental Housing 7/07 at 101 AAA 1,910,000 Mortgage Revenue Bonds, 1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax) 9,780 Massachusetts Water Resources Authority, General Revenue 7/02 at 102 AAA 10,345,284 Bonds, 1992 Series A, 6.750%, 7/15/12 (Pre-refunded to 7/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.9% 1,975 Charter Township of Clinton, County of Macomb, State 4/09 at 101 AAA 1,615,748 of Michigan, 1998 General Obligation Unlimited Tax Police Building Bonds, 4.000%, 4/01/18 2,500 Wayne County Building Authority, State of Michigan, Building 3/02 at 102 A-*** 2,660,850 Authority Bonds (Capital Improvement), Series 1992A (Limited Tax - General Obligation), 8.000%, 3/01/17 (Pre-refunded to 3/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 3.7% 7,990 City of Eden Prairie, Minnesota, Multifamily Housing Revenue 11/10 at 103 1/2 Aaa 8,314,873 Bonds, Series 2000 (GNMA Collateralized Mortgage Loan - Lincoln Park Project), Series 2000A-1, 6.650%, 5/20/42 (WI, settling 11/17/00) 10,780 Northwest Minnesota Multi-County, Housing and 10/04 at 102 N/R 8,648,147 Redevelopment Authority, Governmental Housing Revenue Bonds (Pooled Housing Program), Series 1994A, 8.125%, 10/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.7% 8,610 Mississippi Home Corporation, Residual Revenue Capital 3/04 at 41 21/32 Aaa 3,023,315 Appreciation Bonds, Series 1992-I, 0.000%, 9/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 3.7% 2,830 City of Grand Island, Nebraska, Electric System Revenue Bonds, 3/01 at 100 A+*** 3,054,815 1977 Series, 6.100%, 9/01/12 2,350 Nebraska Higher Education Loan Program Inc., Senior No Opt. Call AAA 2,509,800 Subordinate Bonds, Series A-5B, 6.250%, 6/01/18 (Alternative Minimum Tax) 10,935 Omaha Public Power District (Nebraska), Electric System 2/02 at 101 1/2 AAA 11,367,370 Revenue Bonds, 1992 Series A, 6.500%, 2/01/17 (Pre-refunded to 2/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 1.3% 890 New Hampshire Municipal Bond Bank, Educational Institutions No Opt. Call N/R 919,646 Division Revenue Bonds (1994 Coe-Brown Northwood Academy Project), 7.250%, 5/01/09 5,000 New Hampshire Housing Finance Authority, Multifamily 7/10 at 101 Aaa 5,049,400 Housing Revenue Bonds, 1994 Issue Remarketing (Countryside Limited Partnership - Countryside Project), 6.100%, 7/01/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 13.5% 1,000 The City of New York, New York, General Obligation Bonds, No Opt. Call A 1,081,890 Fiscal 1995 Series A, 7.000%, 8/01/04 2,075 The City of New York, New York, General Obligation Bonds, 11/01 at 101 1/2 AAA 2,191,968 Fiscal 1991 Series F, 8.400%, 11/15/05 (Pre-refunded to 11/15/01) 2,000 The City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 2,106,480 Fiscal 1992 Series C, 6.625%, 8/01/12 (Pre-refunded to 8/01/02) 4,000 The City of New York, New York, General Obligation Bonds, 2/06 at 101 1/2 A 4,077,880 Fiscal 1996 Series J1, 5.875%, 2/15/19 The City of New York, New York, General Obligation Bonds, Fiscal 1991 Series D: 3,920 9.500%, 8/01/02 (Pre-refunded to 8/01/01) 8/01 at 101 1/2 Aaa 4,127,486 80 9.500%, 8/01/02 8/01 at 101 1/2 A 84,040 39 Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) The City of New York, New York, General Obligation Bonds, Fiscal 1995 Series E: $ 450 6.500%, 8/01/02 No Opt. Call Aaa $ 466,749 1,100 6.500%, 8/01/02 No Opt. Call A 1,137,565 3,080 6.600%, 8/01/04 No Opt. Call A 3,294,614 4,480 New York City Transitional Finance Authority, Future Tax 8/07 at 101 AA 4,233,286 Secured Bonds, Fiscal 1998 Series A, 5.125%, 8/15/21 10,000 Dormitory Authority of the State of New York, State University 5/10 at 101 AAA 9,849,000 Educational Facilities Revenue Bonds, Series 2000B, 1999 Resolution, 5.500%, 5/15/30 5,000 New York Local Government Assistance Corporation, 4/01 at 102 AAA 5,165,850 Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) 5,550 New York State Medical Care Facilities Finance Agency, 8/02 at 102 AAA 5,679,759 Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22 4,650 New York State Medical Care Facilities Finance Agency, 8/03 at 102 AAA 4,755,416 St. Lukes-Roosevelt Hospital Center FHA-Insured Mortgage Revenue Bonds, 1993 Series A, 5.600%, 8/15/13 4,000 New York State Medical Care Facilities Finance Agency, 2/04 at 102 AAA 3,913,960 Hospital Insured Mortgage Revenue Bonds, 1994 Series A Refunding, 5.500%, 8/15/24 8,450 New York State Urban Development Corporation, State 4/01 at 102 Aaa 8,730,287 Facilities Revenue Bonds, Series 1991, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.9% 10,300 North Carolina Eastern Municipal Power Agency, Power No Opt. Call AAA 10,985,362 System Revenue Bonds, Refunding Series 1993B, 6.000%, 1/01/22 2,130 North Carolina Housing Finance Agency, Multifamily Revenue 7/02 at 102 Aa2 2,218,693 Refunding Bonds (1992 Refunding Bond Resolution), Series B, 6.900%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.6% 2,110 Cleveland-Rock Glen Housing Assistance Corporation, 7/04 at 103 AAA 2,197,249 Mortgage Revenue Refunding Bonds, Series 1994A (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), 6.750%, 1/15/25 675 Toledo-Lucas County Port Authority, Development Revenue 11/00 at 102 N/R 684,545 Bonds (Northwest Ohio Bond Fund), Series 1992A, 7.750%, 5/15/07 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.8% 2,000 Falls Township Hospital Authority, Refunding Revenue Bonds, 8/02 at 102 AAA 2,100,820 The Delaware Valley Medical Center Project (FHA-Insured Mortgage), Series 1992, 7.000%, 8/01/22 520 Northampton County Hospital Authority (Pennsylvania), No Opt. Call BBB- 521,659 Hospital Revenue Bonds (Easton Hospital), Series A of 1992, 6.900%, 1/01/02 7,110 City of Philadelphia, Pennsylvania, Water and Sewer No Opt. Call AAA 7,575,705 Revenue Bonds, Tenth Series, 7.350%, 9/01/04 2,500 The Hospitals and Higher Education Facilities Authority 8/02 at 102 A+ 2,612,725 of Philadelphia, Hospital Revenue Bonds (Children's Seashore House), Series 1992A, 7.000%, 8/15/12 4,450 The Hospitals and Higher Education Facilities Authority 8/02 at 102 A+ 4,650,651 of Philadelphia, Hospital Revenue Bonds (Children's Seashore House), Series 1992B, 7.000%, 8/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.8% The Health and Educational Facilities Board of the City of Johnson, Tennessee, Hospital Revenue Refunding and Improvement Bonds, Series 1998C (Johnson City Medical Center Hospital): 2,060 5.125%, 7/01/25 (Pre-refunded to 7/01/23) 7/23 at 100 AAA 1,933,825 1,590 5.125%, 7/01/25 1/09 at 101 AAA 1,484,519 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 1.1% 4,084 General Services Commission (an Agency of the State 9/01 at 101 A 4,211,440 of Texas), as Lessee, Participation Interests, 7.500%, 9/01/22 880 Victoria Housing Finance Corporation, Single Family Mortgage No Opt. Call Aaa 909,269 Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11 40 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.5% $ 585 Utah Housing Finance Agency, Single Family Mortgage 1/07 at 102 AA $ 593,447 Bonds, 1996 Series C, 6.450%, 7/01/14 (Alternative Minimum Tax) 1,875 Utah Housing Finance Agency, Single Family Mortgage 7/07 at 101 1/2 AA 1,897,781 Bonds, 1997 Series F, 5.750%, 7/01/15 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.9% 3,200 Suffolk Redevelopment and Housing Authority, Multifamily 7/02 at 104 Baa2 3,348,480 Housing Revenue Refunding Bonds, Series 1994 (Chase Heritage at Dulles Project), 7.000%, 7/01/24 (Mandatory put 7/01/04) 5,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ 5,156,700 Mortgage Bonds, 1992 Series A, 7.100%, 1/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 3.3% 9,500 State of Washington, General Obligation and General No Opt. Call AA+ 10,476,980 Obligation Refunding Bonds, Series 1992A and AT-6, 6.250%, 2/01/11 2,500 Washington Health Care Facilities Authority, Revenue Bonds, 2/02 at 102 AA-*** 2,618,425 Series 1992 (Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12 (Pre-refunded to 2/15/02) 2,000 Washington Public Power Supply System, Nuclear Project 1/01 at 102 Aa1 2,048,200 No. 3 Refunding Revenue Bonds, Series 1990B, 7.375%, 7/01/04 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.3% 1,220 West Virginia Housing Development Fund, Housing Finance 5/02 at 102 AAA 1,249,792 Bonds, 1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.2% 2,985 Silver Lake Sanitary District, Waushara County, Wisconsin, 10/02 at 100 N/R*** 3,180,577 Sewer System Mortgage Revenue Bonds, 8.000%, 10/01/18 (Pre-refunded to 10/01/02) 5,950 Wisconsin Housing and Economic Development Authority, 1/02 at 102 AA 6,177,463 Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 5,000 Wisconsin Health and Educational Facilities Authority, 2/10 at 101 AA 5,150,500 Revenue Bonds, Series 1999 (Marshfield Clinic), 6.250%, 2/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ $ 595,688 Total Investments (cost $442,116,279) - 100.0% 454,042,841 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.0% 60,501 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 454,103,342 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements.
41 Statement of NET ASSETS October 31, 2000
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ------------------------------------------------------------------------------------------------------------------------------------ Assets Investments in municipal securities, at market value $825,177,192 $748,153,851 $1,193,385,258 $454,042,841 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value -- 7,000,000 -- -- Cash -- 2,035,541 11,396,914 2,831,077 Receivables: Interest 16,175,725 14,566,991 23,458,077 6,848,026 Investments sold 19,221,465 1,073,891 32,166,567 496,849 Other assets 20,339 20,201 30,681 14,811 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 860,594,721 772,850,475 1,260,437,497 464,233,604 - ------------------------------------------------------------------------------------------------------------------------------------ Liabilities Cash overdraft 10,458,613 -- -- -- Payable for investments purchased 21,481,982 -- 15,221,052 8,037,230 Accrued expenses: Management fees 435,098 407,240 648,267 243,772 Other 200,953 122,027 391,277 217,532 Preferred share dividends payable 141,842 130,819 228,261 97,814 Common share dividends payable 2,556,052 2,507,647 4,119,496 1,533,914 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 35,274,540 3,167,733 20,608,353 10,130,262 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets $825,320,181 $769,682,742 $1,239,829,144 $454,103,342 ==================================================================================================================================== Preferred shares, at liquidation value $301,000,000 $279,000,000 $ 452,000,000 $165,000,000 ==================================================================================================================================== Preferred shares outstanding 12,040 11,160 18,080 6,600 ==================================================================================================================================== Common shares outstanding 35,748,959 33,887,474 54,204,488 20,051,949 ==================================================================================================================================== Netasset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 14.67 $ 14.48 $ 14.53 $ 14.42 ====================================================================================================================================
See accompanying notes to financial statements. 42 Statement of OPERATIONS Year Ended October 31, 2000
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - --------------------------------------------------------------------------------------------------------------------------------- Investment Income $49,555,392 $47,306,859 $78,569,996 $28,756,930 - --------------------------------------------------------------------------------------------------------------------------------- Expenses Management fees 5,045,678 4,745,799 7,586,054 2,856,170 Preferred shares - auction fees 733,252 683,117 1,111,370 403,186 Preferred shares - dividend disbursing agent fees 50,138 58,138 60,163 30,082 Shareholders' servicing agent fees and expenses 63,211 45,305 95,338 29,771 Custodian's fees and expenses 119,836 105,492 176,730 86,289 Directors' fees and expenses 13,884 13,146 20,250 8,389 Professional fees 6,336 12,284 8,066 32,412 Shareholders' reports - printing and mailing expenses 41,082 41,539 102,292 45,729 Stock exchange listing fees 32,807 33,183 51,130 30,753 Investor relations expense 85,977 63,866 104,912 38,201 Other expenses 62,634 42,666 59,656 52,391 - --------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit 6,254,835 5,844,535 9,375,961 3,613,373 Custodian fee credit (75,693) (46,795) (59,918) (39,326) - --------------------------------------------------------------------------------------------------------------------------------- Net expenses 6,179,142 5,797,740 9,316,043 3,574,047 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 43,376,250 41,509,119 69,253,953 25,182,883 - --------------------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Investments Net realized gain (loss) from investment transactions (2,187,570) 429,356 1,262,287 (1,476,362) Change in net unrealized appreciation (depreciation) of investments 25,862,636 15,449,974 10,564,892 5,658,575 - --------------------------------------------------------------------------------------------------------------------------------- Net gain from investments 23,675,066 15,879,330 11,827,179 4,182,213 - --------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $67,051,316 $57,388,449 $81,081,132 $29,365,096 =================================================================================================================================
See accompanying notes to financial statements. 43 Statement of CHANGES IN NET ASSETS
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) ----------------------------------- --------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00 10/31/99 - ---------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 43,376,250 $ 43,074,759 $ 41,509,119 $ 41,453,626 Net realized gain (loss) from investment transactions (2,187,570) 338,511 429,356 5,858,883 Change in net unrealized appreciation (depreciation) of investments 25,862,636 (70,205,721) 15,449,974 (61,475,965) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 67,051,316 (26,792,451) 57,388,449 (14,163,456) - ---------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders From undistributed net investment income: Common shareholders (31,909,307) (34,265,653) (31,279,754) (32,426,412) Preferred shareholders (12,163,240) (8,670,344) (11,427,939) (8,276,367) From and in excess of net realized gains from investment transactions: Common shareholders (129,711) -- (78,386) -- Preferred shareholders (37,355) -- (21,716) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (44,239,613) (42,935,997) (42,807,795) (40,702,779) - ---------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 1,719,616 -- 1,695,759 Net proceeds from sale of Preferred shares -- 50,366,822 -- 38,498,158 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from capital share transactions -- 52,086,438 -- 40,193,917 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 22,811,703 (17,642,010) 14,580,654 (14,672,318) Net assets at the beginning of year 802,508,478 820,150,488 755,102,088 769,774,406 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets at the end of year $825,320,181 $802,508,478 $769,682,742 $755,102,088 ================================================================================================================================== Balance of undistributed net investment income at the end of year $ 78,116 $ 759,320 $ 218,441 $ 1,404,794 ==================================================================================================================================
See accompanying notes to financial statements. 44
QUALITY INCOME (NQU) PREMIER INCOME (NPF) ---------------------------------------- ---------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00 10/31/99 - ---------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 69,253,953 $ 68,385,627 $ 25,182,883 $ 24,338,021 Net realized gain (loss) from investment transactions 1,262,287 1,695,294 (1,476,362) (103,628) Change in net unrealized appreciation (depreciation) of investments 10,564,892 (81,930,200) 5,658,575 (30,317,584) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 81,081,132 (11,849,279) 29,365,096 (6,083,191) - ---------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders From undistributed net investment income: Common shareholders (51,692,078) (55,411,229) (18,975,126) (19,324,413) Preferred shareholders (18,405,376) (13,547,036) (6,795,906) (4,817,350) From and in excess of net realized gains from investment transactions: Common shareholders -- -- -- (45,889) Preferred shareholders -- -- -- (11,424) - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (70,097,454) (68,958,265) (25,771,032) (24,199,076) - ---------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 6,887,216 -- 2,004,966 Net proceeds from sale of Preferred shares -- 51,357,544 -- 24,638,050 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from capital share transactions -- 58,244,760 -- 26,643,016 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 10,983,678 (22,562,784) 3,594,064 (3,639,251) Net assets at the beginning of year 1,228,845,466 1,251,408,250 450,509,278 454,148,529 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of year $1,239,829,144 $1,228,845,466 $454,103,342 $450,509,278 ================================================================================================================================== Balance of undistributed net investment income at the end of year $ 135,043 $ 943,351 $ 63,250 $ 645,422 ==================================================================================================================================
See accompanying notes to financial statements. 45 Notes to FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The National Funds (the "Funds") covered in this report and their corresponding New York Stock Exchange symbols are Nuveen Investment Quality Municipal Fund, Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality Income Municipal Fund, Inc.(NQU) and Nuveen Premier Municipal Income Fund, Inc. (NPF). Each Fund invests primarily in a diversified portfolio of municipal obligations issued by state and local government authorities. The Funds are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers and general market conditions. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At October 31, 2000, Investment Quality (NQM) and Premier Income (NPF) had outstanding when-issued purchase commitments of $21,481,982 and $8,037,230, respectively. There were no such outstanding purchase commitments in either Select Quality (NQS) or Quality Income (NQU). Investment Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securities when required for federal income tax purposes. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its tax-exempt net investment income, in addition to any significant amounts of net realized capital gains and/or market discount realized from investment transactions. The Funds currently consider significant net realized capital gains and/or market discount as amounts in excess of $.01 per Common share. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. All income dividends paid during the fiscal year ended October 31, 2000, have been designated Exempt Interest Dividends. Net realized capital gain and market discount distributions are subject to federal taxation. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Accordingly, temporary over-distributions as a result of these differences may occur and will be classified as either distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. 46 Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in more than one Series. The dividend rate on each Series may change every seven days, as set by the auction agent. The number of shares outstanding, by Series and in total, for each Fund is as follows: INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ------------------------------------------------------------------------------- Number of shares: Series M 2,500 2,000 3,000 1,000 Series T 2,500 2,000 3,000 2,800 Series W 2,500 2,800 3,000 -- Series W2 -- -- 2,080 -- Series Th 2,040 1,560 4,000 2,800 Series F 2,500 2,800 3,000 -- - ------------------------------------------------------------------------------- Total 12,040 11,160 18,080 6,600 =============================================================================== Derivative Financial Instruments The Funds may invest in transactions in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended October 31, 2000. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Organization and Offering Costs Costs incurred by the Funds in connection with their organization and offering of Preferred shares were recorded as a reduction of the proceeds from the sale of the shares. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common and Preferred shares were as follows:
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) ---------------------------- --------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00 10/31/99 - ------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- 110,452 -- 106,069 ============================================================================================================ Preferred shares sold -- 2,040 -- 1,560 ============================================================================================================ QUALITY INCOME (NQU) PREMIER INCOME (NPF) -------------------------- --------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00 10/31/99 - ------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- 427,864 -- 124,386 ============================================================================================================ Preferred shares sold -- 2,080 -- 1,000 ============================================================================================================
47 Notes to FINANCIAL STATEMENTS (continued) 3. DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 1, 2000, to shareholders of record on November 15, 2000, as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - --------------------------------------------------------------------------------------------------------- Dividend per share $.0715 $.0740 $.0760 $.0765 =========================================================================================================
4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term municipal securities for the fiscal year ended October 31, 2000, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ---------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $283,564,094 $221,200,614 $277,980,040 $55,931,044 Short-term municipal securities 56,440,000 96,580,000 35,700,000 48,610,000 Sales and maturities: Long-term municipal securities 275,366,891 232,194,608 306,870,391 40,020,217 Short-term municipal securities 56,440,000 115,980,000 35,700,000 68,200,000 ==========================================================================================================
At October 31, 2000, the identified cost of investments owned for federal income tax purposes were as follows: INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ------------------------------------------------------------------------------ $797,300,725 $736,819,913 $1,161,747,316 $442,116,279 ============================================================================== At October 31, 2000, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: INVESTMENT SELECT PREMIER QUALITY QUALITY INCOME (NQM) (NQS) (NPF) - ----------------------------------------------------------------------------- Expiration year: 2005 $ -- $13,683 $ -- 2006 -- -- -- 2007 -- -- 103,628 2008 2,187,570 -- 1,473,467 - ---------------------------------------------------------------------------- Total $2,187,570 $13,683 $1,577,095 ============================================================================ 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments for federal income tax purposes at October 31, 2000, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ---------------------------------------------------------------------------------------------------------- Gross unrealized: appreciation $33,017,624 $25,763,965 $44,167,321 $20,052,869 depreciation (5,141,157) (7,430,027) (12,529,379) (8,126,307) - ---------------------------------------------------------------------------------------------------------- Net unrealized appreciation $27,876,467 $18,333,938 $31,637,942 $11,926,562 =========================================================================================================
48 6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' investment management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets of each Fund as follows: AVERAGE DAILY NET ASSETS MANAGEMENT FEE - ---------------------------------------------------------------------------- For the first $125 million .6500 of 1% For the next $125 million .6375 of 1 For the next $250 million .6250 of 1 For the next $500 million .6125 of 1 For the next $1 billion .6000 of 1 ============================================================================ The fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser. 7. COMPOSITION OF NET ASSETS At October 31, 2000, net assets consisted of:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ----------------------------------------------------------------------------------------------------------------------- Preferred shares, $25,000 stated value per share, at liquidation value $301,000,000 $279,000,000 $ 452,000,000 $165,000,000 Common shares, $.01 par value per share 357,490 338,875 542,045 200,519 Paid-in surplus 498,195,678 471,805,615 754,955,275 278,490,106 Balance of undistributed net investment income 78,116 218,441 135,043 63,250 Accumulated net realized gain (loss) from investment transactions (2,187,570) (14,127) 144,539 (1,577,095) Net unrealized appreciation of investments 27,876,467 18,333,938 32,052,242 11,926,562 - ----------------------------------------------------------------------------------------------------------------------- Net assets $825,320,181 $769,682,742 $1,239,829,144 $454,103,342 ======================================================================================================================= Authorized shares: Common 200,000,000 200,000,000 200,000,000 200,000,000 Preferred 1,000,000 1,000,000 1,000,000 1,000,000 =======================================================================================================================
8. INVESTMENT COMPOSITION At October 31, 2000, the revenue sources by municipal purpose, expressed as a percent of long-term investments, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ------------------------------------------------------------------------------------------------- Consumer Staples 1% --% 4% --% Education and Civic Organizations 4 1 -- 7 Healthcare 14 9 8 7 Housing/Multifamily 5 7 3 15 Housing/Single Family 9 12 8 5 Tax Obligation/General 14 12 11 11 Tax Obligation/Limited 8 13 4 12 Transportation 14 10 1 U.S. Guaranteed 11 19 29 30 Utilities 9 10 9 5 Water and Sewer 10 6 8 3 Other 1 1 3 4 - ------------------------------------------------------------------------------------------------ 100% 100% 100% 100% ================================================================================================
Certain long-term investments owned by the Funds are either covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest in the event of default (56% for Investment Quality (NQM), 65% for Select Quality (NQS), 53% for Quality Income (NQU) and 57% for Premier Income (NPF)) . For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. 49 Financial HIGHLIGHTS Selected data for a Common share outstanding throughout each year ended October 31:
Investment Operations Less Distributions ---------------------------------------- ------------------------------------------------------------ From From and In and In Net Net Excess of Excess of Net Investment Investment Capital Capital Realized/ Income to Income to Gains to Gains to Beginning Net Unrealized Common Preferred Common Preferred Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) Total holders holders+ holders holders+ Total ============================================================================================================================== INVESTMENT QUALITY (NQM) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2000 $14.03 $1.21 $.66 $1.87 $(.89) $(.34) $ -- $ -- $(1.23) 1999 16.00 1.21 (1.96) (.75) (.96) (.24) -- -- (1.20) 1998 15.77 1.22 .25 1.47 (.98) (.25) (.01) -- (1.24) 1997 15.48 1.25 .30 1.55 (1.01) (.25) -- -- (1.26) 1996 15.65 1.29 (.17) 1.12 (1.03) (.26) -- -- (1.29) SELECT QUALITY (NQS) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2000 14.05 1.22 .47 1.69 (.92) (.34) -- -- (1.26) 1999 15.68 1.22 (1.64) (.42) (.96) (.24) -- -- (1.20) 1998 15.48 1.23 .19 1.42 (.97) (.25) -- -- (1.22) 1997 15.12 1.25 .37 1.62 (1.01) (.25) -- -- (1.26) 1996 15.29 1.27 (.17) 1.10 (1.01) (.26) -- -- (1.27) QUALITY INCOME (NQU) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2000 14.33 1.28 .21 1.49 (.95) (.34) -- -- (1.29) 1999 15.83 1.27 (1.48) (.21) (1.03) (.25) -- -- (1.28) 1998 15.73 1.27 .12 1.39 (1.03) (.26) -- -- (1.29) 1997 15.44 1.29 .29 1.58 (1.03) (.26) -- -- (1.29) 1996 15.43 1.30 .02 1.32 (1.03) (.28) -- -- (1.31) PREMIER INCOME (NPF) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2000 14.24 1.26 .21 1.47 (.95) (.34) -- -- (1.29) 1999 15.76 1.22 (1.51) (.29) (.97) (.24) -- -- (1.21) 1998 15.62 1.22 .17 1.39 (1.00) (.25) -- -- (1.25) 1997 15.38 1.25 .31 1.56 (1.03) (.24) (.04) (.01) (1.32) 1996 15.34 1.27 .12 1.39 (1.01) (.26) (.06) (.02) (1.35) ==============================================================================================================================
Total Returns ------------------- Organization and Offering Costs and Based Preferred Ending Based on Share Net Ending on Net Underwriting Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================ INVESTMENT QUALITY (NQM) Year Ended 10/31: 2000 $-- $14.67 $12.8750 3.70% 11.38% 1999 (.02) 14.03 13.3125 (8.51) (6.64) 1998 -- 16.00 15.5000 5.97 7.97 1997 -- 15.77 15.5625 10.82 8.68 1996 -- 15.48 15.0000 6.13 5.70 SELECT QUALITY (NQS) - -------------------------------------------------------------------------------- Year Ended 10/31: 2000 -- 14.48 13.0625 6.85 10.02 1999 (.01) 14.05 13.1250 (13.63) (4.55) 1998 -- 15.68 16.1875 10.96 7.77 1997 -- 15.48 15.5000 9.43 9.35 1996 -- 15.12 15.1250 9.71 5.71 QUALITY INCOME (NQU) - -------------------------------------------------------------------------------- Year Ended 10/31: 2000 -- 14.53 13.1250 .73 8.37 1999 (.01) 14.33 14.0000 (11.17) (3.20) 1998 -- 15.83 16.8125 9.64 7.37 1997 -- 15.73 16.3125 14.22 8.81 1996 -- 15.44 15.2500 10.61 6.93 PREMIER INCOME (NPF) - -------------------------------------------------------------------------------- Year Ended 10/31: 2000 -- 14.42 13.6250 9.71 8.22 1999 (.02) 14.24 13.3125 (17.25) (3.71) 1998 -- 15.76 17.1250 10.29 7.49 1997 -- 15.62 16.5000 16.81 8.85 1996 -- 15.38 15.1250 11.00 7.51 ================================================================================
Ratios/Supplemental Data - -------------------------------------------------------------------------------------------- Before Credit -------------------------------------------------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Expenses Income to Expenses Income to to Average Average to Average Average Ending Net Assets Net Assets Total Total Net Applicable Applicable Net Assets Net Assets Assets to Common to Common Including Including (000) Shares++ Shares++ Preferred++ Preferred++ - -------------------------------------------------------------------------------------------- INVESTMENT QUALITY (NQM) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2000 $825,320 1.24% 8.57% .78% 5.37% 1999 802,508 1.17 7.85 .78 5.24 1998 820,150 1.12 7.66 .78 5.31 1997 809,337 1.13 8.08 .78 5.56 1996 798,349 1.14 8.32 .78 5.71 SELECT QUALITY (NQS) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2000 769,683 1.22 8.67 .77 5.48 1999 755,102 1.17 8.07 .78 5.38 1998 769,774 1.14 7.87 .78 5.40 1997 759,770 1.15 8.22 .78 5.59 1996 745,059 1.15 8.39 .78 5.69 QUALITY INCOME (NQU) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2000 1,239,829 1.21 8.95 .77 5.65 1999 1,228,845 1.17 8.27 .77 5.46 1998 1,251,408 1.13 8.08 .77 5.49 1997 1,238,536 1.15 8.35 .77 5.62 1996 1,219,663 1.15 8.44 .77 5.67 PREMIER INCOME (NPF) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2000 454,103 1.27 8.84 .80 5.59 1999 450,509 1.19 7.98 .80 5.35 1998 454,149 1.15 7.80 .79 5.38 1997 448,807 1.17 8.14 .80 5.57 1996 442,153 1.18 8.29 .81 5.66 ============================================================================================
Ratios/Supplemental Data ------------------------------------------------------------------------------ Municipal Auction Rate Cumulative After Credit** Preferred Stock at End of Year ---------------------------------------------------------------- ------------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Expenses Income to Expenses Income to to Average Average to Average Average Net Assets Net Assets Total Total Aggregate Liquidation Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset to Common to Common Including Including Turnover Outstanding Value Per Coverage Shares++ Shares++ Preferred++ Preferred++ Rate (000) Share Per Share ==================================================================================================================================== INVESTMENT QUALITY (NQM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2000 1.22% 8.59% .77% 5.38% 35% $ 301,000 $ 25,000 $68,548 1999 1.16 7.86 .77 5.24 16 301,000 25,000 66,654 1998 1.12 7.66 .78 5.31 7 250,000 25,000 82,015 1997 1.13 8.08 .78 5.56 14 250,000 25,000 80,934 1996 1.14 8.32 .78 5.71 8 250,000 25,000 79,835 SELECT QUALITY (NQS) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2000 1.21 8.68 .77 5.48 30 279,000 25,000 68,968 1999 1.16 8.08 .78 5.39 27 279,000 25,000 67,661 1998 1.14 7.87 .78 5.40 7 240,000 25,000 80,185 1997 1.15 8.22 .78 5.59 10 240,000 25,000 79,143 1996 1.15 8.39 .78 5.69 13 240,000 25,000 77,610 QUALITY INCOME (NQU) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2000 1.20 8.95 .76 5.65 23 452,000 25,000 68,575 1999 1.16 8.27 .77 5.47 13 452,000 25,000 67,967 1998 1.13 8.08 .77 5.49 19 400,000 25,000 78,213 1997 1.15 8.35 .77 5.62 9 400,000 25,000 77,408 1996 1.15 8.44 .77 5.67 11 400,000 25,000 76,229 PREMIER INCOME (NPF) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2000 1.26 8.85 .79 5.60 9 165,000 25,000 68,804 1999 1.18 7.99 .79 5.35 11 165,000 25,000 68,259 1998 1.15 7.80 .79 5.38 19 140,000 25,000 81,098 1997 1.17 8.14 .80 5.57 5 140,000 25,000 80,144 1996 1.18 8.29 .81 5.66 8 140,000 25,000 78,956 ==================================================================================================================================== * Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. Total returns are not annualized. ** After custodian fee credit, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares.
50-51 Build Your Wealth AUTOMATICALLY SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvest ment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBILITY You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial adviser or call us at (800) 257-8787. 52 Fund INFORMATION BOARD OF DIRECTORS Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN, TRANSFER AGENT AND SHAREHOLDER SERVICES The Chase Manhattan Bank 4 New York Plaza New York, NY 10004-2413 (800) 257-8787 LEGAL COUNSEL Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the 12-month period ended October 31, 2000. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 53 Serving Investors FOR GENERATIONS PHOTO OF: John Nuveen, Sr. For over a century, generations of Americans have relied on Nuveen Investments to help them grow and keep the money they've earned. Financial advisors, investors and their families have associated Nuveen Investments with quality, expertise and dependability since 1898. That is why financial advisors have entrusted the assets of more than 1.3 million investors to Nuveen. With the know-how that comes from a century of experience, Nuveen continues to build upon its reputation for quality. Now, financial advisors and investors can count on Nuveen Investments to help them design customized solutions that meet the far-reaching financial goals unique to family wealth strategies - solutions that can translate into legacies. To find out more about how Nuveen Investments' products and services can help you preserve your financial security, talk with your financial advisor, or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before you invest. Invest well. Look ahead. LEAVE YOUR MARK.(SM) LOGO: NUVEEN Investments Nuveen Investments o 333 West Wacker Drive FAN-3-10-00 Chicago, IL 60606 o www.nuveen.com -----END PRIVACY-ENHANCED MESSAGE-----