-----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, BLCyolqQ/oK7yuxbVNtRMXRuCNhH/uCiyLlkW0inFcGa4bjTFP31mllMkfH1FEHt 4YW5DvdEDRVEitnA2T65ZA== 0000891804-02-000007.txt : 20020413 0000891804-02-000007.hdr.sgml : 20020413 ACCESSION NUMBER: 0000891804-02-000007 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011031 FILED AS OF DATE: 20020103 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: 1940 Act SEC FILE NUMBER: 811-06456 FILM NUMBER: 2501016 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 N-30D 1 nv25591.txt FAN-3-10-01 ANNUAL REPORT October 31, 2001 Logo: NUVEEN Investments 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 of: Woman and girl playing checkers. Photo of: Woman playing piano and boy playing violin. Less Mail, More Freedom with online fund reports photo: clouds photo: hand on PC mouse There is a new way to receive your Nuveen Fund updates faster than ever. Nuveen now can link you with electronic versions of the important financial information we send you by regular mail. By registering for online access via the internet, you will be able to view and save the Fund information you currently receive in the mail. This information can be stored on your computer and retrieved any time. In addition, you can select only the specific pages you want to view or print. With this new service, you'll receive an e-mail notice the moment Fund reports are ready. This notice will contain a link to the report - all you have to do is click your computer mouse on the internet address provided. You'll be saving time, as well as saving your Fund paper, printing and distribution expenses. Registering for electronic access is easy and only takes a few minutes. (see box at right) The e-mail address you provide is strictly confidential and will not be used for anything other than notifications of shareholder information. And if you decide you don't like receiving your reports electronically, it's a simple process to go back to regular mail delivery. SIGN UP TODAY -- Here's what you need to do... If your Nuveen Fund dividends are PAID TO YOUR BROKERAGE ACCOUNT, follow the steps outlined below: 1 Go to WWW.INVESTORDELIVERY.COM 2 Look at the address sheet that accompanied this report. Enter the personal 13-CHARACTER ENROLLMENT NUMBER imprinted near your name on the address sheet. 3 You'll be taken to a page with several options. Select the NEW ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g. yourID@providerID.com), and a personal, 4-digit PIN of your choice. (Pick a number that's easy to remember.) 4 Click Submit. Confirm the information you just entered is correct, then click Submit again. 5 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6 Use this same process if you need to change your registration information or cancel internet viewing. If your Nuveen Fund dividends COME DIRECTLY TO YOU FROM NUVEEN, follow the steps outlined below: 1 Go to WWW.NUVEEN.COM 2 Select the Access Account tab. Select the E-REPORT ENROLLMENT section. Click on Enrollment Page. 3 You'll be taken to a screen that asks for your social security number and e-mail address. Fill in this information, then click Enroll. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: "A diversified portfolio can leave you well positioned to reduce overall investment risk." Dear Shareholder In the aftermath of September 11, the financial markets have reacted with volatility and uncertainty as investors attempt to better understand how the U.S. and world economies are likely to perform in the months ahead. It's too soon to tell what the long-term impact will be on the markets or your Fund, but one thing that is increasingly clear to us is that a diversified portfolio that includes high quality municipal bonds can leave you well positioned to reduce overall investment volatility. For example, during the period covered by this report, all of these Nuveen Funds continued to meet their primary objectives of providing attractive monthly income from a portfolio of high quality municipal bonds. Detailed information on your Fund's performance can be found in the Portfolio Managers' Comments and Performance Overview sections of this report. I urge you to take the time to read them. In addition to providing you with steady tax-free income, your Nuveen Fund also features several characteristics that can help make it an essential part of your overall investment strategy. These include careful research, constant surveillance and judicious trading by Nuveen's seasoned portfolio management team, with every action designed to supplement income, improve Fund structure, better adapt to current market conditions or increase diversification. In turbulent times like these, prudent investors understand the importance of diversification, balance, and risk management, all attributes your Nuveen Fund can bring to your portfolio. For more than 100 years, Nuveen has specialized in offering quality investments such as these Nuveen Funds to those seeking to accumulate and preserve wealth and establish a lasting legacy. Our mission continues to be to assist you and your financial advisor by offering the investment services and products that can help you invest well and leave your mark for future generations. We thank you for continuing to choose Nuveen Investments as your partner as you work toward that goal. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board December 15, 2001 Sidebar text: "Today, perhaps more than ever, investors have the ability to make a lasting impact on their families and their world for generations to come." Nuveen National Municipal Closed-End Exchange-Traded Funds (NQM, NQS, NQU, NPF) Portfolio Managers' Comments Portfolio managers Tom Futrell, Rick Huber, and Bill Fitzgerald review economic and market conditions, key strategies, and recent Fund performance. Tom has managed NQM since its inception in 1990, and assumed management responsibility for NPF in 2001. Bill has managed NQU since its inception in 1991, while Rick assumed portfolio management responsibility for NQS in 1998. WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL MARKET DURING THIS REPORTING PERIOD? The two major forces at work during the twelve months ended October 31, 2001, were the continued slowdown in economic growth and the Federal Reserve's aggressive approach to easing short-term interest rates. While these two factors had a great impact over the entire period covered in this report, the tragic events of September 11 and its aftermath also have had a profound effect on the economy and the markets. In January 2001, the Fed embarked on a series of interest rate cuts designed to stimulate the sluggish U.S. economy. During the first ten months of the year, the Fed announced nine reductions totaling 400 basis points, bringing the federal funds rate to 2.50% as of October 31, 2001. (On November 6, 2001, following the end of the period covered in this report, the Fed reduced the fed funds rate to 2.00%, its lowest level since 1961.) The consensus among many market observers is that the Fed could decide to cut rates again if signs of a significant economic slowdown continue. In the municipal market, the general environment of the past twelve months has helped many fixed-income securities perform well. The interest rate cuts created favorable conditions for both new municipal bond issuance and refundings, which together totaled $223.4 billion nationwide through the first ten months of 2001, an increase of 36% over January-October 2000. On the demand side, municipal bonds continued to be highly sought after by individual investors looking for diversification, tax-free income, quality, and an alternative to a volatile stock market. Institutional investors, especially insurance companies, also have been active buyers in the new issue market. In general, strong demand has proven more powerful than increased supply, which has helped keep municipal bond prices higher than they were twelve months ago. HOW DID THE NUVEEN NATIONAL FUNDS PERFORM OVER THE PAST TWELVE MONTHS? For the year ended October 31, 2001, the Nuveen National Closed-End Exchange-Traded Funds covered in this report produced annual total returns on net asset value (NAV) as shown in the accompanying table. The annual returns for the Lehman Brothers Tax-Exempt Bond Index1 and relevant Lipper Peer Group2 are also presented. MARKET TOTAL RETURN LEHMAN LIPPER YIELD ON NAV TOTAL RETURN1 AVERAGE2 - ---------------------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 10/31/01 EQUIVALENT3 10/31/01 10/31/01 10/31/01 - ---------------------------------------------------------------------------- NQM 5.94% 8.55% 13.16% 10.51% 12.97% - ---------------------------------------------------------------------------- NQS 6.02% 8.66% 13.23% 10.51% 12.97% - ---------------------------------------------------------------------------- NQU 6.24% 8.98% 12.09% 10.51% 12.97% - ---------------------------------------------------------------------------- NPF 6.27% 9.02% 12.89% 10.51% 12.97% - ---------------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. Over the past twelve months, the Fed's change in policy from tightening to easing, combined with favorable market technicals, created a generally positive total return environment for municipal bonds. The Funds' participation in the market's gains is reflected in the total returns on NAV listed in the previous table. In a market characterized by rising bond values and falling yields, funds with longer durations would typically be expected to perform well. As of October 31, 2001, 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 Funds' total returns are compared with the average annualized return of the 52 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 30.5%. 4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate movements. Fund duration, also known as leverage-adjusted duration, takes into account the leveraging process for a Fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. Unless otherwise noted, references to duration in this commentary are intended to indicate Fund duration. durations4 of these Funds ranged from 10.00 to 10.79, compared with 7.77 for the unleveraged Lehman Brothers Municipal Bond Index. While duration was one driver of total return over the past twelve months, the relative performance of these Funds also was influenced by differences in structure and individual holdings. For example, NQU had a large weighting in escrowed bonds coming into this period. These bonds provided high levels of tax-free income, and they also had short maturities which provided some security for the principal value of the investments but also was a factor in causing the Fund's total return to trail the market. HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? With the Fed's move to a policy of interest rate easing as of January 2001, the dividend payment capabilities of these National Funds benefited from the use of leverage, a strategy that can potentially enhance the dividends paid to common shareholders. This benefit is tied in part to the short-term rates the Funds pay their MuniPreferred(R), shareholders. For example, declining short-term rates can enable the Funds to reduce the amount of income they pay preferred shareholders, which can leave more earnings to support common share dividends. During the year ended October 31, 2001, steady or falling short-term interest rates enabled us to implement dividend increases in NQM in both June and September 2001 and in NQS and NPF in September. Leverage also helped us maintain the dividend of NQU over the past 17 months. In coming months, the lower rates now being offered by municipal securities with shorter maturities may continue to benefit these Funds by further reducing the amount paid to MuniPreferred shareholders. However, this benefit could be offset to some degree by the effect of bond calls on higher-yielding securities, especially if refundings increase as the result of lower rates. The level of short-term rates, the number of bond calls, and the interest rates at which we can reinvest the proceeds of any calls will all influence the dividends of these Nuveen Funds over the next twelve months. Over the past year, as the stock market remained volatile and the bond market continued to perform well, many investors turned to tax-free fixed-income investments as a way to add balance to their portfolios and reduce overall risk. As a result, the share prices of these National Funds improved (see the charts on the individual Performance Overview pages). As investors recognized the opportunity offered by these Funds, increased demand caused their discounts (share price below NAV) to narrow over the past twelve months. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NUVEEN FUNDS DURING THE YEAR ENDED OCTOBER 31, 2001? One of our areas of emphasis during this period was improving overall call protection, using a variety of strategies to enhance each Fund's situation as attractive opportunities presented themselves. NQM now offers excellent levels of call protection over the next 26 months, with only 7% of its portfolio subject to calls between November 2001 and December 2003. NQS, NQU, and NPF all marked the 10-year anniversary of their inceptions in 2001, reaching a point often associated with an increase in call exposure. Over the next 26 months, these Funds could see bond calls affecting 16% to 31% of their portfolios. The number of actual calls experienced by these Funds will depend largely on market interest rates over this time. Given the current level of rates, our general approach has been to hold higher-yielding bonds as long as possible to help support the Funds' dividends, while we look for attractive replacement opportunities. Currently we have focused on the 20-year section of the yield curve, rather than the 30-year, since these shorter-maturity bonds offer lower durations and are therefore less sensitive to interest rate changes, while providing yields similar to those offered by longer bonds. In general, we believe the call positions of all these Funds are very manageable, especially given the timeframe, and we foresee no problems in working through them. In reinvesting new cash and bond call proceeds over the past twelve months, we found value in general obligation bonds at the state, county, and city level, single family and multifamily housing bonds, especially those backed by GNMA and FNMA, and in other sectors regarded as providers of essential services, such as healthcare and utilities. As of October 31, 2001, all of these Funds listed healthcare, education, water and sewer, and/or utilities among their top five sectors. The utilities sector, in particular, offered several attractive purchase opportunities, and NQS added bonds issued by utilities in Texas, where deregulation is scheduled to begin in early 2002. We believe these issues represented good value in today's market. Several of these bonds saw their creditworthiness improve as plants were completed. Another area that performed well and contributed to diversification was the tobacco sector, and we took advantage of several new offerings in the primary market, including those from Alaska, Washington, D.C., and California, to purchase tobacco settlement bonds at very attractive yields for NQM and NQS. The proceeds from these bonds, which are secured by each state's share of payments under the $250 billion master settlement agreement between four major tobacco companies and 46 states, are used for various purposes, including education and healthcare. If we continue to find attractive opportunities, we plan to add to our positions in these bonds. In view of recent events, shareholders should note that these Nuveen Funds continue to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 67% in NPF to 85% in NQM as of October 31, 2001. Each of these Funds also had a portion of its assets invested in BBB and non-rated bonds, which benefited from narrowing credit spreads during the first part of 2001. The allocations to this credit sector, which range from 4% in NQM to 19% in NPF, have for the most part declined over the past twelve months, as we shifted our emphasis to higher quality securities that should offer greater protection from the effects of any further deterioration in the economy. All of these Funds also had some exposure to New York City general obligation bonds, selected airport and airline issues, and - in NQM - insured bonds issued by the Port Authority of New York and New Jersey, the owner of the World Trade Center. Following a decline immediately after the terrorist attacks, many of these holdings have largely returned to their pre-September 11 valuations. As of October 31, 2001, credit ratings for New York City have not been downgraded, remaining at A2/A/A+. The city's recent issuance of $1 billion in one-year disaster recovery notes sold rapidly to both individual and institutional investors, demonstrating the general belief that New York City continues to represent a strong credit despite recent events. Although Standard & Poor's placed the Port Authority and all major air carriers and North American airports on credit watch following September 11, Moody's current median rating for airports is A2, which is solidly investment grade. In addition, the federal government's commitment to the air transportation sector was demonstrated by the approval of a $15 billion airline aid package of grants and loan guarantees. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THE NUVEEN FUNDS IN PARTICULAR? In general, our outlook for the fixed-income markets over the next twelve months remains positive. Although the long-term economic effects of September 11 are still being assessed, we believe the U.S. economy is headed for an eventual recovery, but one that may see a slower pace of growth, with inflation and interest rates remaining low over the near term. New municipal issuance should continue to be strong during the fourth quarter and into 2002, and municipal supply nationwide in 2001 is now expected to exceed $250 billion for the first time since 1998. At the same time, demand for tax-exempt municipal bonds is anticipated to remain firm, as investors look for ways to rebalance their portfolios and reduce risk. The federal government's recent decision to discontinue the 30-year Treasury bond removed one of the pricing benchmarks for the municipal market, which could result in some pricing uncertainty and create additional opportunities for value investing. Overall, we continue to watch the fixed-income markets carefully, especially those sectors that were directly impacted by the events of September 11 or that would be affected by any further deceleration in the economy. We believe the Nuveen Funds covered in this report are currently well diversified and well positioned for the market environment ahead, and we will continue to closely monitor and respond to events as appropriate. Over the next six months, we plan to remain focused on the strategies that add value for our shareholders, provide support for the Funds' dividends, and fully utilize Nuveen's research expertise to adjust to any shifts in market conditions. One of our priorities will be managing portfolio structure, including duration and credit quality, to strategically position the Funds for a potential economic recovery. Our emphasis will continue to be on essential services sectors. Tobacco settlement bonds also could continue to offer opportunities for diversification and enhanced yield. Overall, we believe the Nuveen National Funds will continue to play an important role in investors' long-range financial programs, providing balance and diversification, dependable tax-free income, quality investments, and a measure of security in uncertain times such as these. Nuveen Investment Quality Municipal Fund, Inc. Performance Overview As of October 31, 2001 NQM Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 70% AA 15% A 9% BBB 1% NR 3% Other 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.84 - -------------------------------------------------- Net Asset Value $15.71 - -------------------------------------------------- Market Yield 5.94% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.55% - -------------------------------------------------- Fund Net Assets ($000) $862,815 - -------------------------------------------------- Average Effective Maturity (Years) 21.00 - -------------------------------------------------- Leverage-Adjusted Duration 10.58 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 6/90) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 22.33% 13.16% - -------------------------------------------------- 5-Year 6.39% 6.67% - -------------------------------------------------- 10-Year 6.23% 7.33% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 15% - -------------------------------------------------- Transportation 14% - -------------------------------------------------- Healthcare 11% - -------------------------------------------------- U.S.Guaranteed 10% - -------------------------------------------------- Tax Obligation/Limited 9% - -------------------------------------------------- Bar Chart: 2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE 11/00 0.0715 12/00 0.0695 1/01 0.0695 2/01 0.0695 3/01 0.0695 4/01 0.0695 5/01 0.0695 6/01 0.0715 7/01 0.0715 8/01 0.0715 9/01 0.0735 10/01 0.0735 Line Chart: SHARE PRICE PERFORMANCE 11/1/00 12.81 12.75 12.63 12.75 12.75 12.94 13.25 13.44 14 14.06 14.31 14.38 14.41 14.33 14.2 14.05 14.19 14.14 13.85 13.95 13.97 14.01 14 14.05 14.06 14.05 13.96 13.92 13.64 13.87 14.01 14.06 14.32 14.37 14.38 14.37 14.37 14.38 14.45 14.64 14.61 14.68 14.75 14.98 14.96 13.92 14.78 14.84 14.55 14.65 10/31/01 14.78 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 30.5%. Nuveen Select Quality Municipal Fund, Inc. Performance Overview As of October 31, 2001 NQS Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 71% AA 8% A 14% BBB 3% NR 2% Other 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.75 - -------------------------------------------------- Net Asset Value $15.48 - -------------------------------------------------- Market Yield 6.02% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.66% - -------------------------------------------------- Fund Net Assets ($000) $803,597 - -------------------------------------------------- Average Effective Maturity (Years) 22.36 - -------------------------------------------------- Leverage-Adjusted Duration 10.00 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 3/91) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 20.09% 13.23% - -------------------------------------------------- 5-Year 6.12% 6.98% - -------------------------------------------------- 10-Year 6.86% 7.55% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Transportation 14% - -------------------------------------------------- Healthcare 12% - -------------------------------------------------- Tax Obligation/Limited 12% - -------------------------------------------------- Housing/Single Family 11% - -------------------------------------------------- Tax Obligation/General 11% - -------------------------------------------------- Line Chart: 2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 11/00 0.074 12/00 0.072 1/01 0.072 2/01 0.072 3/01 0.072 4/01 0.072 5/01 0.072 6/01 0.072 7/01 0.072 8/01 0.072 9/01 0.074 10/01 0.074 Line Chart: SHARE PRICE PERFORMANCE 11/1/00 13.19 12.56 12.56 12.88 12.94 12.81 13.13 13.5 14.13 14.19 14.25 14.13 14.26 14.2 14.16 14.05 14.2 14.19 14.06 13.95 14.03 13.99 14 14.06 14.07 14.14 14.17 13.9 13.61 13.8 13.97 14.03 14.3 14.35 14.27 14.25 14.26 14.24 14.4 14.66 14.54 14.57 14.59 14.6 14.62 13.36 14.45 14.67 14.51 14.4 10/31/01 14.61 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 30.5%. 2 The Fund also paid shareholders a net ordinary income distribution in December 2000 of $0.0013 per share. Nuveen Quality Income Municipal Fund, Inc. Performance Overview As of October 31, 2001 NQU Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 63% AA 10% A 12% BBB 6% NR 3% Other 6% Bar Chart: 2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 11/00 0.076 12/00 0.076 1/01 0.076 2/01 0.076 3/01 0.076 4/01 0.076 5/01 0.076 6/01 0.076 7/01 0.076 8/01 0.076 9/01 0.076 10/01 0.076 Line Chart: SHARE PRICE PERFORMANCE 11/1/00 13.13 13 13 13.06 13.13 13.44 13.63 13.75 14.63 14.44 14.81 14.81 14.82 14.8 14.67 14.55 14.72 14.75 14.36 14.19 14.01 14.12 14.44 14.38 14.45 14.68 14.53 14.35 14.07 14.26 14.31 14.2 14.54 14.82 14.6 14.45 14.45 14.48 14.64 14.93 14.93 14.94 14.99 14.98 14.91 13.9 14.45 14.6 14.46 14.28 10/31/01 14.42 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 30.5%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2000 of $0.0097 per share. Nuveen Premier Municipal Income Fund, Inc. Performance Overview As of October 31, 2001 NPF Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 57% AA 10% A 14% BBB 4% NR 15% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.84 - -------------------------------------------------- Net Asset Value $15.31 - -------------------------------------------------- Market Yield 6.27% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.02% - -------------------------------------------------- Fund Net Assets ($000) $472,496 - -------------------------------------------------- Average Effective Maturity (Years) 15.73 - -------------------------------------------------- Leverage-Adjusted Duration 10.68 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 12/91) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 15.93% 12.89% - -------------------------------------------------- 5-Year 6.28% 6.60% - -------------------------------------------------- Since Inception 6.71% 7.70% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- U.S.Guaranteed 26% - -------------------------------------------------- Tax Obligation/Limited 15% - -------------------------------------------------- Housing/Multifamily 14% - -------------------------------------------------- Tax Obligation/General 12% - -------------------------------------------------- Education and Civic Organizations 7% - -------------------------------------------------- Bar Chart: 2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE 11/00 0.0765 12/00 0.0765 1/01 0.0765 2/01 0.0765 3/01 0.0765 4/01 0.0765 5/01 0.0765 6/01 0.0765 7/01 0.0765 8/01 0.0765 9/01 0.0775 10/00 0.0775 Line Chart: SHARE PRICE PERFORMANCE 11/1/00 13.69 13.44 13.5 13.81 13.88 14 14.38 14.19 15 15.31 15.19 14.94 15.25 15.06 14.99 15.07 15.02 15.15 15.03 14.52 14.5 14.52 14.7 14.68 14.73 14.8 14.93 14.72 14.44 14.58 14.67 14.56 14.88 14.87 14.78 14.67 14.68 14.71 14.85 15.1 15.01 15.05 15.19 15.22 15.23 13.95 14.77 15.04 14.86 14.77 10/31/01 14.73 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 30.5%. Shareholder Meeting Report The annual shareholder meeting was held on August 1, 2001, at the Northern Trust Bank, Chicago, Illinois.
NQM - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS 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 28,692,698 1,823 1,900 1,879 1,857 2,150 Withhold 272,547 2 9 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,965,245 1,825 1,909 1,879 1,857 2,150 ==================================================================================================================================== Lawrence H. Brown For 28,693,548 1,823 1,900 1,879 1,857 2,150 Withhold 271,697 2 9 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,965,245 1,825 1,909 1,879 1,857 2,150 ==================================================================================================================================== Anne E. Impellizzeri For 28,684,643 1,823 1,880 1,879 1,857 2,150 Withhold 280,602 2 29 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,965,245 1,825 1,909 1,879 1,857 2,150 ==================================================================================================================================== Peter R. Sawers For 28,688,129 1,823 1,880 1,879 1,857 2,150 Withhold 277,116 2 29 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,965,245 1,825 1,909 1,879 1,857 2,150 ==================================================================================================================================== William J. Schneider For -- 1,823 1,900 1,879 1,857 2,150 Withhold -- 2 9 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,825 1,909 1,879 1,857 2,150 ==================================================================================================================================== Judith M. Stockdale For 28,685,443 1,823 1,900 1,879 1,857 2,150 Withhold 279,802 2 9 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,965,245 1,825 1,909 1,879 1,857 2,150 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,823 1,900 1,879 1,857 2,150 Withhold -- 2 9 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,825 1,909 1,879 1,857 2,150 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 28,622,261 1,825 1,880 1,877 1,857 2,132 Against 156,353 -- 29 2 -- -- Abstain 186,631 -- -- -- -- 18 - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,965,245 1,825 1,909 1,879 1,857 2,150 ====================================================================================================================================
Shareholder Meeting Report (continued)
NQS - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS 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 27,979,325 1,879 1,892 1,978 1,221 2,580 Withhold 215,808 -- 3 38 4 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,195,133 1,879 1,895 2,016 1,225 2,580 ==================================================================================================================================== Lawrence H. Brown For 27,979,394 1,879 1,895 1,978 1,221 2,580 Withhold 215,739 -- -- 38 4 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,195,133 1,879 1,895 2,016 1,225 2,580 ==================================================================================================================================== Anne E. Impellizzeri For 27,965,770 1,879 1,858 1,978 1,221 2,580 Withhold 229,363 -- 37 38 4 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,195,133 1,879 1,895 2,016 1,225 2,580 ==================================================================================================================================== Peter R. Sawers For 27,971,229 1,879 1,861 2,014 1,221 2,580 Withhold 223,904 -- 34 2 4 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,195,133 1,879 1,895 2,016 1,225 2,580 ==================================================================================================================================== William J. Schneider For -- 1,879 1,891 2,014 1,221 2,580 Withhold -- -- 4 2 4 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,879 1,895 2,016 1,225 2,580 ==================================================================================================================================== Judith M. Stockdale For 27,975,322 1,879 1,892 1,978 1,221 2,580 Withhold 219,811 -- 3 38 4 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,195,133 1,879 1,895 2,016 1,225 2,580 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,879 1,892 2,014 1,221 2,580 Withhold -- -- 3 2 4 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,879 1,895 2,016 1,225 2,580 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 27,907,770 1,879 1,856 2,014 1,221 2,580 Against 115,591 -- 35 2 4 -- Abstain 171,772 -- 4 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 28,195,133 1,879 1,895 2,016 1,225 2,580 ====================================================================================================================================
NQU - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS 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 44,494,410 2,623 2,170 2,301 1,774 3,048 2,737 Withhold 407,161 -- -- 1 5 5 3 - ------------------------------------------------------------------------------------------------------------------------------------ Total 44,901,571 2,623 2,170 2,302 1,779 3,053 2,740 ==================================================================================================================================== Lawrence H. Brown For 44,490,409 2,623 2,170 2,301 1,774 3,048 2,737 Withhold 411,162 -- -- 1 5 5 3 - ------------------------------------------------------------------------------------------------------------------------------------ Total 44,901,571 2,623 2,170 2,302 1,779 3,053 2,740 ==================================================================================================================================== Anne E. Impellizzeri For 44,455,554 2,623 2,170 2,299 1,738 3,048 2,736 Withhold 446,017 -- -- 3 41 5 4 - ------------------------------------------------------------------------------------------------------------------------------------ Total 44,901,571 2,623 2,170 2,302 1,779 3,053 2,740 ==================================================================================================================================== Peter R. Sawers For 44,476,362 2,623 2,170 2,301 1,738 3,048 2,737 Withhold 425,209 -- -- 1 41 5 3 - ------------------------------------------------------------------------------------------------------------------------------------ Total 44,901,571 2,623 2,170 2,302 1,779 3,053 2,740 ==================================================================================================================================== William J. Schneider For -- 2,623 2,170 2,301 1,774 3,048 2,737 Withhold -- -- -- 1 5 5 3 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,623 2,170 2,302 1,779 3,053 2,740 ==================================================================================================================================== Judith M. Stockdale For 44,474,954 2,623 2,170 2,299 1,774 3,048 2,736 Withhold 426,617 -- -- 3 5 5 4 - ------------------------------------------------------------------------------------------------------------------------------------ Total 44,901,571 2,623 2,170 2,302 1,779 3,053 2,740 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,623 2,170 2,301 1,774 3,048 2,737 Withhold -- -- -- 1 5 5 3 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,623 2,170 2,302 1,779 3,053 2,740 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 44,454,739 2,621 2,170 2,302 1,740 3,052 2,738 Against 166,212 2 -- -- 36 -- 1 Abstain 280,620 -- -- -- 3 1 1 - ------------------------------------------------------------------------------------------------------------------------------------ Total 44,901,571 2,623 2,170 2,302 1,779 3,053 2,740 ====================================================================================================================================
Shareholder Meeting Report (continued)
NPF - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Preferred Preferred Preferred Common Shares Shares Shares Shares Series-M Series-T Series-TH ==================================================================================================================================== Robert P. Bremner For 15,677,467 959 2,423 2,118 Withhold 133,496 -- 1 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 15,810,963 959 2,424 2,123 ==================================================================================================================================== Lawrence H. Brown For 15,676,197 959 2,423 2,118 Withhold 134,766 -- 1 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 15,810,963 959 2,424 2,123 ==================================================================================================================================== Anne E. Impellizzeri For 15,674,795 959 2,423 2,118 Withhold 136,168 -- 1 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 15,810,963 959 2,424 2,123 ==================================================================================================================================== Peter R. Sawers For 15,675,892 959 2,423 2,118 Withhold 135,071 -- 1 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 15,810,963 959 2,424 2,123 ==================================================================================================================================== William J. Schneider For -- 959 2,423 2,118 Withhold -- -- 1 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 959 2,424 2,123 ==================================================================================================================================== Judith M. Stockdale For 15,679,787 959 2,423 2,118 Withhold 131,176 -- 1 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 15,810,963 959 2,424 2,123 ==================================================================================================================================== Timothy R. Schwertfeger For -- 959 2,423 2,118 Withhold -- -- 1 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 959 2,424 2,123 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 15,627,112 959 2,397 2,114 Against 54,358 -- 4 -- Abstain 129,493 -- 23 9 - ------------------------------------------------------------------------------------------------------------------------------------ Total 15,810,963 959 2,424 2,123 ====================================================================================================================================
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, 2001, 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, 2001, by correspondence with the custodian and brokers or alternative procedures when broker confirmations were not readily available. 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, 2001, 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 Chicago, Illinois December 10, 2001 Nuveen Investment Quality Municipal Fund, Inc. (NQM) Portfolio of Investments October 31, 2001
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 $ 23,597,616 Warrants, Series 1999-A, 5.750%, 2/01/38 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.7% 3,350 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 6/04 at 102 Aa2 3,473,213 1994 Series A, 5.400%, 12/01/13 10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100 Aa3 10,772,000 Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.1% 4,310 Arkansas Development Finance Authority, Home Mortgage Revenue 7/08 at 101 1/2 AAA 4,438,438 Bonds, 1998 Series A, 5.150%, 7/01/17 Van Buren County, Arkansas, Sales and Use Tax Revenue Bonds, Series 2000 Refunding and Construction: 1,055 5.600%, 12/01/25 12/10 at 100 Aaa 1,109,280 3,600 5.650%, 12/01/31 12/10 at 100 Aaa 3,799,116 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 8.2% 9,025 Alameda County Public Facilities Corporation, California, Certificates 9/06 at 102 AAA 10,353,119 of Participation (1991 Financing Project), 6.000%, 9/01/21 5,925 State Public Works Board of the State of California, Regents of 6/03 at 102 Aa2 6,072,533 the University of California, Lease Revenue Refunding Bonds (Various University of California Projects), 1993 Series A, 5.500%, 6/01/21 9,740 Huntington Park Redevelopment Agency, California, Single Family No Opt. Call AAA 13,648,272 Residential Mortgage Revenue Refunding Bonds, 1986 Series A, 8.000%, 12/01/19 1,030 Natomas Unified School District, Sacramento County, California, No Opt. Call AAA 1,204,379 1999 Refunding General Obligation Bonds, 5.950%, 9/01/21 15,770 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AAA 21,734,529 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 Bonds No Opt. Call AAA 17,721,695 (GNMA Mortgage-Backed Securities), 1988 Series B, 8.200%, 9/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 4.0% 1,025 Colorado Housing Finance Authority, Single Family Program Senior 5/06 at 105 Aa2 1,088,673 Bonds, 1996 Series B-2, 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) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 821,837 2,265 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 2,269,983 2,325 City and County of Denver, Colorado, Airport System Revenue Bonds, 11/08 at 101 AAA 2,291,357 Series 1998B, 5.000%, 11/15/25 12,450 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 13,397,819 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 BB- 4,267,274 Revenue Bonds (United Air Lines, Inc. 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- 10,204,680 General Obligation Improvement Bonds, Series 1996, 7.125%, 12/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 2.6% 6,770 State of Connecticut, General Obligation Bonds, 2000 Series B, 6/10 at 100 AA 7,554,305 5.875%, 6/15/16 8,675 Connecticut Housing Finance Authority, Housing Mortgage 11/07 at 102 AA 8,979,232 Finance Program Bonds, 1997 Series C, Subseries C-2, 5.850%, 11/15/28 (Alternative Minimum Tax) 5,910 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AAA 6,205,205 Program Bonds, 1996 Series D, Subseries D-2, 6.200%, 11/15/27 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 4.4% $ 2,500 District of Columbia, Washington, D.C., General Obligation Bonds, No Opt. Call AAA $ 2,893,375 Series 1998B, 6.000%, 6/01/16 15,950 District of Columbia, University Revenue Bonds, Georgetown 4/11 at 31 1/32 AAA 2,973,559 University Issue, Series 2001A, 0.000%, 4/01/31 6,000 District of Columbia Tobacco Settlement Financing Corporation, 5/11 at 101 A1 6,640,680 Tobacco Settlement Asset-Backed Bonds, Series 2001, 6.750%, 5/15/40 23,645 District of Columbia Water and Sewer Authority, Public Utility 4/09 at 160 AAA 25,721,031 Revenue Bonds, Series 1998, 5.500%, 10/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.4% 17,500 City of Atlanta, Georgia, Airport General Revenue and Refunding 1/10 at 101 AAA 18,431,700 Bonds, Series 2000A, 5.600%, 1/01/30 2,000 City of Dalton Development Authority, Georgia, Revenue Certificates No Opt. Call AAA 2,175,520 (Hamilton Healthcare System), Series 1996, 5.500%, 8/15/26 5,980 Fulton County Development Authority, Georgia, Revenue Bonds 9/11 at 102 AAA 6,334,734 (TUFF/Atlanta Housing, LLC Project at Georgia State University), Series 2001A, 5.500%, 9/01/22 2,250 Georgia Municipal Electric Authority, Project One Special Obligation No Opt. Call A 2,678,085 Bonds, Fourth Crossover Series, 6.500%, 1/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 7.3% 4,705 Village of Bourbonnais, Illinois, Industrial Project Revenue Bonds 3/10 at 101 AA 5,151,128 (Olivet Nazarene University Project), Series 2000, 6.250%, 3/01/20 9,000 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call B2 6,338,700 Special Facility Revenue Bonds (United Air Lines, Inc. Project), Series 2001A-2, 6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13) 7,500 Community College District No. 508, Cook County, Illinois, No Opt. Call AAA 9,296,400 Certificates of Participation, 8.750%, 1/01/07 2,110 Illinois Development Finance Authority, Local Government Program 1/11 at 100 Aaa 2,336,255 Revenue Bonds (Elmhurst Community Unit School District Number 205 Project), Series 2000, 6.000%, 1/01/19 11,825 School District No. 46, Elgin, Counties of Kane, Cook and DuPage, No Opt. Call Aaa 15,293,273 Illinois, School Bonds, Series 1997, 7.800%, 1/01/12 5,900 Community Unit School District Number 7, Madison County, Illinois, No Opt. Call AAA 6,802,523 School Building Bonds, Series 1994, 5.850%, 2/01/13 3,585 City of Pekin, Illinois, Multifamily Housing Refunding Revenue Bonds 5/03 at 103 AAA 3,742,561 (FHA-Insured Mortgage Loan - Section 8 Assisted Project), Series 1992A, 6.875%, 5/01/22 905 City of Peoria, Peoria County, City of Pekin, Tazewell and Peoria 2/02 at 102 AA 924,059 Counties and City of Waukegan, Lake County, Jointly, Illinois, GNMA Collateralized Mortgage Revenue Bonds, Series 1990, 7.875%, 8/01/22 (Alternative Minimum Tax) 5,390 DuPage, Kane, Lake, McHenry and Will Counties Regional No Opt. Call AAA 6,860,985 Transportation Authority, Illinois, General Obligation Bonds, Series 1992A, 9.000%, 6/01/07 860 Cook, DuPage, Kane, Lake, McHenry and Will Counties Regional No Opt. Call AAA 1,094,703 Transportation Authority, Illinois, General Obligation Bonds, Series 1992B, 9.000%, 6/01/07 1,180 Channahon School District Number 17, Will County, Illinois, General No Opt. Call Aaa 1,622,016 Obligation School Building Bonds, Series 2001, 8.400%, 12/01/13 Joliet High School District Number 204, Illinois, General Obligation Bonds, Series 2001: 1,145 8.700%, 12/01/13 No Opt. Call AAA 1,605,874 1,300 8.700%, 12/01/14 No Opt. Call AAA 1,839,409 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.9% 5,530 Allen County Jail Building Corporation, Indiana, First Mortgage 4/11 at 101 Aa3 5,982,354 Bonds, Series 2000, 5.750%, 4/01/20 1,880 City of Indianapolis, Indiana, Multifamily Housing Mortgage 7/10 at 102 Aaa 1,964,487 Revenue Bonds (GNMA Collateralized Cloverleaf Phase I Apartments Project), Series 2000, 6.000%, 1/20/31 5,065 Metropolitan School District of Steuben County K-5 Building 7/10 at 101 AAA 5,630,305 Corporation, Indiana, First Mortgage Bonds, Series 2000, 6.125%, 1/15/21 2,495 City of Shelbyville, Indiana, Multifamily Housing Mortgage Revenue 7/10 at 102 Aaa 2,603,757 Bonds (GNMA Collateralized Blueridge Terrace Project), Series 2000, 6.050%, 1/20/36 Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued) Portfolio of Investments October 31, 2001 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.2% $ 5,290 Iowa Finance Authority, Abbey Healthcare Mortgage Revenue Bonds 11/10 at 103 1/2 Aaa $ 5,783,028 (GNMA Guaranteed), Series 2000A, 6.200%, 5/20/42 4,695 Iowa Finance Authority, Abbey Healthcare Mortgage Revenue Bonds 11/10 at 103 1/2 Aaa 4,916,416 (GNMA Collateralized Mortgage Loan - West Des Moines GEAC Project), Series 2001A, 6.000%, 5/20/43 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.3% 4,070 Sedgwick County and Shawnee County, Kansas, Single Family No Opt. Call Aaa 4,645,905 Mortgage Revenue Bonds (Mortgage-Backed Securities Program), 1997 Series A-1, 6.950%, 6/01/29 (Alternative Minimum Tax) 4,510 City of Topeka, Kansas, Industrial Revenue Refunding Bonds 8/16 at 100 AAA 6,278,732 (Sunwest Hotel Corporation Project), Series 1988, 9.500%, 10/01/16 (Alternative Minimum Tax) (Pre-refunded to 8/15/16) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.8% 2,000 Jefferson County, Kentucky, Health Facilities Revenue Refunding 1/07 at 102 AAA 2,092,500 Bonds (Jewiah Hospital Healthcare Services Inc.), Series 1996, 5.700%, 1/01/21 12,500 Jefferson County, Kentucky, Pollution Control Revenue Bonds 4/05 at 102 AAA 13,135,500 (Louisville Gas and Electric Company Project), 1995 Series A, 5.900%, 4/15/23 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.6% 4,095 East Baton Rouge Mortgage Finance Authority, Louisiana, Single 10/07 at 102 Aaa 4,243,403 Family Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1997D, 5.900%, 10/01/30 (Alternative Minimum Tax) 2,915 Parish of Jefferson Home Mortgage Authority, Louisiana, Single 12/09 at 103 Aaa 3,339,686 Family Mortgage Revenue Refunding Bonds, Series 2000A-2, 7.500%, 12/01/30 (Alternative Minimum Tax) Parish of Jefferson Home Mortgage Authority, Louisiana, Single Family Mortgage Revenue Bonds, Series 2000G-2: 2,000 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102 Aaa 2,020,680 3,200 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 105 Aaa 3,528,576 2,620 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 2,797,086 Revenue Bonds (Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/04 11,545 Parish of Orleans School Board, Louisiana, Public School Refunding No Opt. Call AAA 15,330,028 Bonds, Series 1987, 9.000%, 2/01/09 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.1% 1,020 Maine State Housing Authority, Mortgage Purchase Bonds, 10/04 at 102 AA+ 1,071,653 1994 Series C-2, 6.875%, 11/15/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.2% 12,000 Commonwealth of Massachusetts, General Obligation Bonds 10/10 at 100 Aa2 12,958,560 (Consolidated Loan), Series 2000C, 5.750%, 10/01/19 5,000 Commonwealth of Massachusetts, General Obligation Bonds 9/09 at 101 Aa2*** 5,780,150 (Consolidated Loan), Series 1999C, 5.875%, 9/01/17 (Pre-refunded to 9/01/09) 5,375 Massachusetts Development Finance Agency, Assisted Living 12/09 at 102 N/R 5,487,445 Revenue Bonds (Prospect House Apartments), Series 1999, 7.000%, 12/01/31 (Alternative Minimum Tax) 1,640 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 100 BBB 1,689,610 Bonds (University of Massachusetts Memorial Healthcare), Series 2001C, 6.500%, 7/01/21 2,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB 1,916,580 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.6% 4,250 City of Detroit School District, Wayne County, Michigan, School 5/12 at 100 AAA 4,473,423 Building and Site Improvement Bonds (Unlimited Tax - General Obligation), Series 2001A, 5.500%, 5/01/20 10,000 City of Detroit, Michigan, Water Supply System Revenue and No Opt. Call AAA 12,121,700 Revenue Refunding Bonds, Series 1993, 6.500%, 7/01/15 5,100 City of Detroit, Michigan, Water Supply System Revenue Senior 7/11 at 101 AAA 5,519,985 Lien Bonds, 2001 Series A, 5.750%, 7/01/28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 4.1% $ 5,000 Dakota County, Washington County and City of Bloomington , No Opt. Call AAA $ 7,073,800 Housing and Redevelopment Authority 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 Bonds 12/10 at 103 1/2 Aaa 3,605,853 (GNMA Collateralized Mortgage Loan - Lincoln Park Project), Series 2000A-1, 6.550%, 12/20/30 2,860 City of Hopkins, Minnesota, Elderly Housing Revenue Refunding 3/04 at 102 AAA 3,161,759 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 21,343,600 Healthcare System Revenue Bonds (Fairview Health Services), Series 2000A, 6.375%, 11/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.1% 1,180 Mississippi Housing Finance Corporation, Single Family Mortgage 4/02 at 100 AAA 1,182,785 Purchase Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1989, 8.250%, 10/15/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.3% 7,990 Kansas City Industrial Development Authority, Missouri, Multifamily 1/07 at 102 AAA 8,226,664 Housing Revenue Bonds (Royal Woods Apartments Project), Series 1997, 5.600%, 1/01/30 (Alternative Minimum Tax) (Mandatory put 1/01/10) 1,545 Missouri Housing Development Commission, Single Family 3/07 at 105 AAA 1,747,704 Mortgage Revenue Bonds (Homeownership Loan Program), 1997 Series A-2, 7.300%, 3/01/28 (Alternative Minimum Tax) 1,250 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101 AAA 1,270,350 Bonds (SSM Healthcare), Series 2001A, 5.250%, 6/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.0% 3,300 Nebraska Higher Education Loan Program, Inc., Student Loan 3/04 at 102 AAA 3,432,495 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 13,886,394 Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.8% 14,530 Director of the State of Nevada, Department of Business and 1/10 at 102 AAA 15,287,304 Industry, Las Vegas, Monorail Project Revenue Bonds, 1st Tier Series 2000, 5.625%, 1/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 8.2% 7,770 Metropolitan Transportation Authority, New York, Commuter 7/07 at 101 AAA 8,027,032 Facilities Revenue Bonds, Series 1997C, 5.375%, 7/01/27 New York City, 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 Aaa 110,695 9,905 6.000%, 10/15/26 10/07 at 101 A 10,533,274 7,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101 AAA 7,686,770 Water and Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 3,300 New York City Municipal Water Finance Authority, New York, 6/10 at 101 AA*** 4,048,737 Water and Sewer System Revenue Bonds, Fiscal 2000 Series B, 6.500%, 6/15/31 (Pre-refunded to 6/15/10) 5,000 New York City Transitional Finance Authority, New York, Future 5/10 at 101 AA+ 5,245,000 Tax 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 A3 14,820,059 System Consolidated Second General Resolution Revenue Bonds, Series 1990D, 8.750%, 7/01/02 16,445 Port Authority of New York and New Jersey, Special Project Bonds No Opt. Call AAA 20,154,828 (JFK International Air Terminal LLC Project), Series 6, 7.000%, 12/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.7% 2,795 Charlotte, North Carolina, Mortgage Revenue Refunding Bonds 11/07 at 100 AAA 3,030,730 (FHA-Insured Mortgage - Double Oaks Apartments), 7.350%, 5/15/26 19,775 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102 AAA 21,144,221 Revenue Bonds, Refunding Series 1996B, 5.875%, 1/01/21 7,420 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101 AA 7,363,608 Bonds (Mission-Saint Joseph Health System), Series 2001, 5.250%, 10/01/26 Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued) Portfolio of Investments October 31, 2001 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.0% $ 8,650 Cuyahoga County, Ohio, Hospital Improvement Revenue Bonds 2/09 at 101 A- $ 8,992,194 (Metrohealth System Project), Series 1999, 6.150%, 2/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.4% 3,300 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, Revenue No Opt. Call BB 3,028,146 Bonds, Refunding Series 2000B, 6.000%, 6/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.6% 5,000 City of Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100 AAA 5,173,650 Series 2000, 5.250%, 9/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 3.5% 4,725 Newport Housing Development Corporation, Rhode Island, 6/03 at 100 AAA 5,240,498 1995 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Broadway-West Broadway Apartments Project), Series A, 6.800%, 8/01/24 24,000 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 25,156,800 Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue, Series 1996, 5.750%, 5/15/23 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.2% 10,000 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101 A1 10,696,700 Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 9.9% 3,135 Austin Housing Finance Corporation, Texas, Multifamily Housing 12/10 at 105 Aaa 3,613,182 Revenue Bonds (GNMA Collateralized Mortgage Loan - Santa Maria Village Project), Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax) 13,400 Bexar County Housing Finance Corporation, Texas, Multifamily 5/16 at 100 N/R 13,601,402 Housing Revenue Bonds (American Opportunity for Housing), Series 2001A, 7.500%, 5/01/33 3,000 Bexar County Housing Finance Corporation, Texas, Multifamily 5/16 at 100 N/R 3,043,110 Housing Revenue Bonds (American Opportunity for Housing), Series 2001B, 8.250%, 5/01/33 1,875 Cameron County Housing Finance Corporation, Texas, GNMA 3/02 at 102 AAA 1,914,675 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 19,485,155 Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000, 5.500%, 2/15/22 Dallas Housing Corporation, Texas, Refunding and Capital Program Revenue Bonds (Section 8 Assisted Projects), Series 1990: 830 7.700%, 8/01/05 2/02 at 101 Baa2 839,221 2,000 7.850%, 8/01/13 2/02 at 101 Baa2 2,022,220 Harris County Hospital District, Texas, Refunding Revenue Bonds, Series 1990: 5,535 7.400%, 2/15/10 No Opt. Call AAA 6,483,865 7,640 7.400%, 2/15/10 No Opt. Call AAA 9,104,970 5,000 Harris County Hospital District, Texas, Refunding Revenue Bonds, 8/10 at 100 AAA 5,575,600 Series 2000, 6.000%, 2/15/14 2,256 Heart of Texas Housing Finance Corporation, Multifamily Housing 6/10 at 105 AAA 2,592,798 Revenue Bonds (GNMA Collateralized Mortgage Loan - Robinson Garden Project), Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax) 3,960 Stafford Economic Development Corporation, Texas, Sales Tax 9/15 at 100 AAA 4,178,038 Revenue Bonds, Series 2000, 5.500%, 9/01/30 6,865 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105 Aaa 8,292,302 Mortgage Revenue Bonds (GNMA Collateralized Mortgage Loan - Eastview Nursing Home, Ebony Lake Nursing Center, Ft. Stockton Nursing Center, Lynnhaven Nursing Center and Mission Oaks Manor), 2000A-1, 7.500%, 12/20/22 3,965 Tyler Health Facilities Development Corporation, Texas, Hospital 11/07 at 102 AAA 4,080,540 Revenue Bonds (East Texas Medical Center), Series 1997C, 5.600%, 11/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.2% 2,000 City of Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 102 N/R 2,021,300 Residential Rental Housing Revenue Bonds (Hamptons and Hampton Court Apartments Project), Series 1999, 7.500%, 10/01/39 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 7.8% $ 17,075 Port of Seattle, Washington, Limited Tax General Obligation Bonds, 12/10 at 100 AA+ $ 17,929,945 Series 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax) 5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100 AAA 5,247,350 5.625%, 4/01/17 (Alternative Minimum Tax) 16,750 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100 AAA 17,561,873 5.625%, 2/01/30 State of Washington, General Obligation Bonds, Series 1993A: 175 4.750%, 10/01/13 (Pre-refunded to 10/01/03) 10/03 at 100 AA+*** 183,227 5,000 4.750%, 10/01/13 10/03 at 100 AA+ 5,040,350 16,060 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102 AAA 16,736,767 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15 4,500 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102 Aa1 4,664,609 Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.1% 4,850 State of Wisconsin, General Obligation Bonds, Series 2001-1 No Opt. Call AAA 5,441,602 Refunding, 5.500%, 5/01/13 Wisconsin Health and Educational Facilities Authority, Revenue Bonds (Eagle River Memorial Hospital, Incorporated Project), Series 2000: 1,000 5.750%, 8/15/20 8/10 at 101 AA 1,025,369 3,000 5.875%, 8/15/30 8/10 at 101 AA 3,094,049 - ------------------------------------------------------------------------------------------------------------------------------------ $ 782,841 Total Investments (cost $785,143,274) - 98.0% 845,517,843 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.2% $ 2,000 Fulton County Residential Care Facilities Elderly Authority, Georgia, A-1+ 2,000,000 ============= Revenue Refunding Bonds (Lenbrook Square Foundation), Variable Rate Demand Bonds, 2.000%, 1/01/18+ -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.8% 15,296,729 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 862,814,572 ==================================================================================================================== * 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.
Nuveen Select Quality Municipal Fund, Inc. (NQS) Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.0% Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 1999-A: $ 8,000 5.375%, 2/01/36 2/09 at 101 AAA $ 8,218,160 5,000 5.750%, 2/01/38 2/09 at 101 AAA 5,308,800 10,000 Lauderdale County and the City of Florence Healthcare Authority, 7/10 at 102 AAA 10,940,800 Alabama, Revenue Bonds (Coffee Health Group), Series 2000A, 6.000%, 7/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.4% 3,250 Alaska Energy Authority, Power Revenue Refunding Bonds (Bradley 7/09 at 101 AAA 3,227,673 Lake Hydro-Electric Project), Third Series, 5.000%, 7/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.7% 4,500 City of Little Rock, Arkansas, Hotel and Restaurant Gross Receipts No Opt. Call A3 5,670,720 Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 0.6% 550 California Pollution Control Financing Authority, Pollution Control 4/11 at 102 AAA 572,396 Refunding Revenue Bonds (Pacific Gas and Electric Company), Series 1996A Remarketed, 5.350%, 12/01/16 (Alternative Minimum Tax)# 4,330 Tobacco Securitization Authority of Northern California, Tobacco 6/11 at 100 A1 4,331,429 Settlement Asset-Backed Bonds, Series 2001B, 5.000%, 6/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 7.8% 11,000 Colorado Department of Transportation, Transportation Revenue 6/10 at 100 1/2 AAA 12,513,270 Anticipation Notes, Series 2000, 6.000%, 6/15/15 9,250 Colorado Health Facilities Authority, Kaiser Permanente Revenue 7/06 at 102 A 9,371,545 Bonds, 1994 Series A 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) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,730,266 9,590 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 10,127,136 5,305 City and County of Denver, Colorado, Airport System Revenue Bonds, 11/01 at 102 Aaa 5,424,416 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) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,063,026 3,960 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 A*** 4,047,476 14,000 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 14,570,920 Refunding Bonds, Series 2000A, 5.625%, 11/15/23 (Alternative Minimum Tax) 320 Jefferson County, Colorado, Single Family Revenue Refunding 4/02 at 102 AAA 329,939 Bonds, Series 1991A, 8.875%, 10/01/13 12,355 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 40 17/32 AAA 2,898,483 Bonds, Senior Series 2001B, 0.000%, 6/15/26 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 1.1% 9,285 Connecticut Development Authority, Health Facility Refunding 8/04 at 102 N/R 8,763,833 Revenue Bonds (Alzheimer's Resource Center of Connecticut, Inc. Project), Series 1994A, 7.250%, 8/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.6% District of Columbia, Washington, D.C., General Obligation Bonds, Series 1998B: 5,000 6.000%, 6/01/19 No Opt. Call AAA 5,755,400 7,265 5.250%, 6/01/26 6/08 at 101 AAA 7,357,266 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.8% 5,665 Florida Housing Finance Corporation, Housing Revenue Bonds 7/10 at 100 AAA 5,892,506 (The Park at Palm Bay), 2000 Series R-1, 5.875%, 1/01/33 (Alternative Minimum Tax) Lee County, Florida, Airport Revenue Bonds, Series 2000A: 3,075 5.875%, 10/01/18 (Alternative Minimum Tax) 10/10 at 101 AAA 3,294,155 4,860 5.875%, 10/01/19 (Alternative Minimum Tax) 10/10 at 101 AAA 5,194,562 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.5% $ 3,750 City of Atlanta, Georgia, Airport General Revenue Bonds, 1/10 at 101 AAA $ 3,910,613 Series 2000B, 5.625%, 1/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.9% 5,000 City of Chicago, Illinois, General Obligation Bonds, Project and 1/06 at 102 AAA 5,023,500 Refunding Series 1995B, 5.125%, 1/01/25 5,865 City of Chicago, Illinois, General Obligation Bonds (Neighborhoods 7/10 at 101 AAA 7,079,055 Alive 21 Program), Series 2000A, 6.500%, 1/01/35 (Pre-refunded to 7/01/10) 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 4,283,400 10,000 5.750%, 12/01/27 12/07 at 102 AAA 10,633,300 12,555 Chicago School Reform Board of Trustees of the Board of Education 12/07 at 102 AAA 12,744,329 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 Education No Opt. Call AAA 8,310,000 of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A, 0.000%, 12/01/25 5,000 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call B2 3,521,500 Special Facility Revenue Bonds (United Air Lines, Inc. Project), Series 2001A, 6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13) 15,000 City of Chicago, Illinois, Chicago O'Hare International Airport, 1/11 at 101 AAA 15,195,900 Second Lien Passenger Facility Charge Revenue Bonds, Series 2001A, 5.375%, 1/01/32 City of Chicago, Illinois, Chicago O'Hare International Airport, Second Lien Passenger Facility Charge Revenue Bonds, Series 2001C: 3,770 5.100%, 1/01/26 (Alternative Minimum Tax) 1/11 at 101 AAA 3,705,458 5,360 5.250%, 1/01/32 (Alternative Minimum Tax) 1/11 at 101 AAA 5,361,662 Illinois Development Finance Authority, Multifamily Housing Bonds (Affordable Housing Preservation Foundation Project), Series 1990, Subseries A (FHA-Insured Mortgage Loans - Lawless Gardens Project): 775 7.650%, 7/01/07 1/02 at 105 AAA 815,843 6,780 7.650%, 12/31/31 1/02 at 105 AAA 7,139,001 2,000 Illinois Health Facilities Authority, Revenue Bonds (Midwest Care 2/11 at 101 Aaa 2,092,660 Center Inc.), Series 2001, 5.950%, 2/20/36 1,585 Illinois Housing Development Authority, Multifamily Housing 1/02 at 102 A+ 1,619,268 Bonds, 1991 Series C, 7.400%, 7/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 4.5% 8,640 Avon Community School Building Corporation, Hendricks County, 7/04 at 101 AAA 9,130,838 Indiana, First Mortgage Bonds, Series 1994, 5.500%, 1/01/16 4,850 Beacon Heights Housing Development Corporation, Indiana, 12/01 at 100 AAA 4,858,051 1991 Multifamily Mortgage Revenue Refunding Bonds (FHA- Insured Mortgage - Section 8 Assisted Project), Series A, 7.625%, 2/01/21 7,500 Indiana Housing Finance Authority, Single Family Mortgage 1/10 at 100 Aaa 7,795,950 Revenue Bonds, 2000 Series D-3, 5.950%, 7/01/26 (Alternative Minimum Tax) 5,450 City of Indianapolis, Indiana, Economic Development Revenue 7/06 at 102 BBB 5,217,503 Bonds (Willowbrook Apartments Project), Senior Series 1996A, 6.500%, 7/01/26 1,030 Michigan City Housing Development Corporation, Indiana, 12/01 at 100 AAA 1,031,648 1991 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Project), Series A, 7.500%, 2/01/21 7,660 St. Joseph County Hospital Authority, Indiana, Health System 2/11 at 100 AAA 7,939,590 Revenue Bonds (Memorial Health System), Series 2000, 5.625%, 8/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.9% 7,500 Tobacco Settlement Authority, Iowa, Tobacco Settlement 6/11 at 101 A1 7,288,575 Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.4% 3,015 Lakeland Wesley Village, Inc., Kentucky, Mortgage Revenue 11/01 at 103 N/R 3,067,039 Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Lakeland Wesley Village I Elderly Project), Series 1991, 7.500%, 11/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.1% 605 Calcasieu Parish Public Trust Authority, Louisiana, Mortgage 12/01 at 103 A1 623,701 Revenue Refunding Bonds, 1991 Series A, 7.750%, 6/01/12 Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued) Portfolio of Investments October 31, 2001 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.1% $ 7,500 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101 AA*** $ 8,690,325 Revenue Bonds, Johns Hopkins University Issue, Series 1999, 6.000%, 7/01/39 (Pre-refunded to 7/01/09) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.0% 7,375 Boston Housing Development Corporation, Massachusetts, 1/04 at 102 AAA 7,428,911 Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), Series 1994A, 5.500%, 7/01/24 2,000 Massachusetts Educational Financing Authority, Education Loan 12/10 at 101 AAA 2,193,380 Revenue and Refunding Bonds, Issue G, Series 2000A, 5.700%, 12/01/11 (Alternative Minimum Tax) 6,300 Somerville Housing Authority, Massachusetts, Mortgage 11/01 at 101 AAA 6,377,805 Revenue Bonds (GNMA Collateralized - Clarendon Hill Towers Project), Series 1990, 7.950%, 11/20/30 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.7% 10,000 City of Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101 AAA 11,295,700 Bonds, Series 1999-A, 5.750%, 7/01/26 3,625 Fowlerville Community Schools, Livingston, Ingham and 5/07 at 100 AAA 4,026,795 Shiawassee Counties, Michigan, 1996 School Building and Site Bonds, 5.600%, 5/01/26 (Pre-refunded to 5/01/07) 6,525 Michigan Hospital Finance Authority, Revenue Bonds (Ascension 11/09 at 101 AAA 6,889,356 Health Credit Group), Series 1999A, 5.750%, 11/15/16 9,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/11 at 100 A- 9,132,840 Bonds (Detroit Edison Company Pollution Control Project), Collateralized Series 1999C, Fixed Rate Conversion, 5.650%, 9/01/29 (Alternative Minimum Tax) 6,000 City of Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100 AAA 6,034,740 Revenue Bonds (William Beaumont Hospital), Series 2001M, 5.250%, 11/15/35 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 2.2% 3,225 Chisago County, South-Central Minnesota Multi-County and 3/04 at 102 27/32 AAA 3,394,474 Stearns County, Minnesota, 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) 7,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100 AAA 7,103,810 Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32 7,230 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100 AA+ 7,521,586 Bonds, 2000 Series C, 6.100%, 7/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.2% 1,360 Goodman Housing Development Corporation, Mississippi, 2/02 at 100 AAA 1,366,310 1991 Multifamily Mortgage Revenue Refunding Bonds (FHA Insured Mortgage - Section 8 Assisted Goodhaven Manor 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 10,995,316 Revenue Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 5.5% 4,885 Clark County, Nevada, General Obligation Limited Tax Bond 7/10 at 100 AA 5,144,247 Bank Bonds (Additionally Secured by Pledged Revenues), Series 2000, 5.500%, 7/01/18 7,500 Clark County, Nevada, Airport System Subordinate Lien Revenue 7/10 at 101 AAA 8,759,325 Bonds, Series 1999A, 6.000%, 7/01/29 10,000 Clark County School District, Nevada, General Obligation 6/06 at 101 AAA 11,328,600 Limited Tax School Improvement Bonds, Series 1996, 6.000%, 6/15/15 1,500 Director of the State of Nevada, Department of Business and 1/10 at 102 AAA 1,578,180 Industry, Las Vegas, Monorail Project Revenue Bonds, 1st Tier Series 2000, 5.625%, 1/01/32 10,000 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100 AAA 10,183,700 Bonds, Series 2001A, 5.250%, 7/01/34 6,000 Reno-Sparks Convention and Visitors Authority, Washoe 1/10 at 100 AAA 7,073,340 County, Nevada, General Obligation Limited Tax Revenue Bonds, Series 1999A, 6.375%, 7/01/23 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.7% $ 3,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101 1/2 AAA $ 3,071,160 Housing Revenue Bonds, 1997 Series A, 5.550%, 5/01/27 (Alternative Minimum Tax) 17,670 New Jersey Housing and Mortgage Finance Agency, Revenue 10/10 at 100 AAA 18,393,410 Bonds (Home Buyer), 2000 Series CC, 5.850%, 10/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 2.8% 8,500 City of Farmington, New Mexico, Pollution Control Revenue 4/06 at 101 Baa3 8,419,250 Refunding Bonds (Public Service Company of New Mexico San Juan Project), Series 1997B, 5.800%, 4/01/22 New Mexico Hospital Equipment Loan Council, Hospital Revenue Bonds (Presbyterian Healthcare Services), Series 2001A: 8,000 5.500%, 8/01/25 8/11 at 101 A1 8,125,840 6,200 5.500%, 8/01/30 8/11 at 101 A1 6,277,252 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 9.4% New York City, 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 Aaa 104,869 9,200 6.000%, 10/15/26 10/07 at 101 A 9,783,556 5,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101 AAA 4,959,000 Water and Sewer System Revenue Bonds, Fiscal 1999 Series B, 5.000%, 6/15/29 6,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101 AAA 6,246,060 Water and 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 2,438,083 Authority, New York, Triborough Bridge and Tunnel Authority, Certificates of Participation, Series 2000A, 5.750%, 1/01/20 9,750 New York City Transitional Finance Authority, New York, 5/10 at 101 AA+ 10,716,420 Future Tax Secured Bonds, Fiscal 2000 Series B, 6.000%, 11/15/29 10,000 New York State Dormitory Authority, Court Facilities Lease Revenue 5/10 at 101 A 10,799,800 Bonds, City of New York Issue, Series 1999, 6.000%, 5/15/39 5,650 New York State Dormitory Authority, Mental Health Services 8/09 at 101 AAA 5,746,898 Facilities Improvement Revenue Bonds, Series 1999D, 5.250%, 8/15/24 5,000 New York Local Government Assistance Corporation (A Public 4/02 at 102 AAA 5,203,650 Benefit Corporation of the State of New York), Revenue Bonds, Series 1991D, 7.000%, 4/01/18 (Pre-refunded to 4/01/02) 5,720 New York State Mortgage Agency, Homeowner Mortgage Revenue 3/09 at 101 Aa1 5,773,253 Bonds, 1999 Series 79, 5.300%, 4/01/29 (Alternative Minimum Tax) 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 AA-*** 5,570,344 40 7.400%, 2/15/18 2/02 at 102 AA- 41,338 7,545 New York State Urban Development Corporation, 1996 Corporate 7/06 at 102 AAA 7,792,778 Purpose Senior Lien Bonds, 5.500%, 7/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.3% 18,555 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 100 AAA 18,710,862 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 10,397,600 (Aurora Project), Series 1997A, 5.625%, 12/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.7% 2,985 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 3,130,459 Bonds (Mortgage-Backed Securities Program), 2000 Series C, 6.050%, 3/01/32 (Alternative Minimum Tax) 1,500 Ohio Water Development Authority, Water Development Revenue 12/11 at 100 AAA 1,506,420 Bonds (Fresh Water), Series 2001A, 5.000%, 12/01/21 890 Toledo-Lucas County Port Authority, Ohio, Development Revenue 11/01 at 101 N/R 898,126 Bonds (Northwest Ohio Bond Fund), Series 1989C, 8.400%, 11/15/09 (Alternative Minimum Tax) Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued) Portfolio of Investments October 31, 2001 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.3% $ 1,575 Oklahoma County Home Finance Authority, Oklahoma, Single Family 1/02 at 101 1/2 Aaa $ 1,608,311 Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 10,000 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, Revenue No Opt. Call BB 8,986,700 Bonds (American Airlines Inc.), Refunding Series 2001B, 5.650%, 12/01/35 (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.0% 95 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100 AAA 105,327 Revenue Bonds, Series 1999, 5.750%, 1/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 4.5% 5,000 Oconee County, South Carolina, Pollution Control Facilities 4/03 at 102 Aa2 5,221,000 Revenue Refunding Bonds (Duke Power Company Project), Series 1993, 5.800%, 4/01/14 5,000 Piedmont Municipal Power Agency, South Carolina, Electric 1/09 at 101 BBB- 4,602,550 Revenue Bonds, 1999A Refunding Series, 5.250%, 1/01/21 4,115 South Carolina Housing Finance and Development Authority, 6/10 at 100 Aaa 4,418,152 Mortgage Revenue Bonds, Series 2000A-2, 6.000%, 7/01/20 (Alternative Minimum Tax) Tobacco Settlement Revenue Management Authority, South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B: 13,530 6.000%, 5/15/22 5/11 at 101 A1 14,136,821 4,000 6.375%, 5/15/28 5/11 at 101 A1 4,278,680 3,000 6.375%, 5/15/30 No Opt. Call A1 3,359,340 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 2.1% 2,500 Education Loans Incorporated, South Dakota, Tax-Exempt Fixed 6/08 at 102 A2 2,521,900 Rate Student Loan Asset-Backed Callable Notes, Subordinate Series 1998-1K, 5.600%, 6/01/20 6,920 City of Sioux Falls, South Dakota, Industrial Revenue Refunding 10/14 at 100 AAA 9,121,944 Bonds (Great Plains Hotel Corporation Project), Series 1989, 8.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded to 10/15/14) 4,880 South Dakota Housing Development Authority, Homeownership 11/06 at 102 AAA 5,149,474 Mortgage Bonds, 1996 Series D, 6.300%, 5/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.2% 12,500 Health and Educational Facilities Board of the Metropolitan 11/09 at 101 AAA 13,368,000 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 1,956,967 2,145 6.000%, 7/01/13 (Alternative Minimum Tax) 7/10 at 101 AAA 2,347,788 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 7.9% 6,000 Brazos River Authority, Texas, Revenue Refunding Bonds (Houston 11/08 at 102 AAA 6,043,860 Industries Incorporated Project), Series 1998C, 5.125%, 11/01/20 (Optional put 11/01/08) 2,865 Comal County Health Facilities Development Corporation, Texas, 1/02 at 101 1/2 AAA 2,927,772 Hospital Revenue Refunding Bonds (FHA-Insured - McKenna Memorial Hospital Project), Series 1991, 7.375%, 1/15/21 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue Bonds, Series 2001A: 2,700 5.000%, 12/01/26 12/11 at 100 AAA 2,675,106 10,500 5.000%, 12/01/31 12/11 at 100 AAA 10,362,765 1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101 BBB- 1,628,089 Revenue Bonds (Valero Energy Corporation Project), Series 2001, 6.650%, 4/01/32 (Alternative Minimum Tax) 1,335 Harrison County Finance Corporation, Texas, Single Family 12/01 at 103 A1 1,375,904 Mortgage Revenue Refunding Bonds, Series 1991, 8.875%, 12/01/11 4,590 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100 AAA 4,738,257 Bonds, Series 2000A, 5.625%, 7/01/30 (Alternative Minimum Tax) 3,400 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/08 at 100 AAA 3,283,108 Bonds, Series 1998B, 5.000%, 7/01/25 (Alternative Minimum Tax) 9,000 Matagorda County Navigation District Number One, Texas, No Opt. Call AAA 8,897,490 Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1997, 5.125%, 11/01/28 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 2,120 Panhandle Regional Housing Finance Corporation, Texas, Single 11/01 at 100 AAA $ 2,134,925 Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1991A, 7.500%, 5/01/24 (Alternative Minimum Tax) 5,000 Port of Corpus Christi Industrial Development Corporation, Texas, 4/08 at 102 BBB- 4,711,650 Revenue Refunding Bonds (Valero Refining and Marketing Company Project), 5.450%, 4/01/27 5,500 Spring Independent School District, Harris County, Texas, 8/11 at 100 AAA 5,449,400 Unlimited Tax Schoolhouse Bonds, Series 2001, 5.000%, 8/15/26 4,520 State of Texas, General Obligation Water Financial Assistance 8/09 at 100 Aa1 4,683,036 Bonds (State Participation Program), Series 1999C, 5.500%, 8/01/35 4,560 Winter Garden Housing Finance Corporation, Texas, Single Family 4/04 at 103 AAA 4,785,401 Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1994, 6.950%, 10/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 3.7% Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds, 1993 Series A: 5,015 5.500%, 7/01/20 7/03 at 102 AAA 5,122,070 8,635 5.500%, 7/01/20 7/03 at 102 AAA 8,848,544 16,050 Utah County, Utah, Hospital Revenue Bonds (IHC Health 8/07 at 101 AAA 16,153,362 Services, Inc.), Series 1997, 5.250%, 8/15/26 - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 1.7% Vermont Educational and Health Buildings Financing Agency, Hospital Revenue Bonds (Fletcher Allen Healthcare Project), Series 2000A: 3,720 6.125%, 12/01/15 12/10 at 100 AAA 4,204,679 4,265 6.250%, 12/01/16 12/10 at 101 AAA 4,832,799 4,140 Vermont Housing Finance Agency, Single Family Housing Notes, 11/09 at 100 AAA 4,298,314 Series 13A, 5.950%, 11/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.3% 8,810 Public Utility District No. 1, Chelan County, Washington, 7/11 at 101 AAA 9,121,345 Hyrdo-Consolidated System Revenue Bonds, Series 2001A, 5.600%, 1/01/36 (Alternative Minimum Tax) 7,225 Port of Seattle, Washington, Special Facility Revenue Bonds 3/10 at 101 AAA 7,839,486 (Terminal 18 Project), Series 1999C, 6.000%, 9/01/20 (Alternative Minimum Tax) Municipality of Metropolitan Seattle, Washington, Sewer Refunding Revenue Bonds, Series Z: 2,990 5.450%, 1/01/17 1/03 at 102 AAA 3,051,445 2,490 5.450%, 1/01/19 1/03 at 102 AAA 2,527,873 1,800 5.450%, 1/01/20 1/03 at 102 AAA 1,829,052 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 8,256,190 2,130 6.250%, 7/01/12 7/02 at 102 Aa1 2,223,847 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.5% 3,795 Wisconsin Housing and Economic Development Authority, 3/10 at 100 AA 3,939,437 Homeownership Revenue Bonds, 2000 Series G, 5.950%, 3/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $ 793,985 Total Investments (cost $750,146,866) - 98.8% 793,745,889 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.2% 9,851,127 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 803,597,016 ==================================================================================================================== * 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. # On April 6, 2001, the Pacific Gas & Electric Company (PG&E) filed for bankruptcy protection. The utility has stated that it intends to pay interest on its senior bonds through the bankruptcy and pay the principal after its reorganization is completed. However, the company's ability to make these payments will depend on its cash flow, which will be affected by the bankruptcy court decisions. N/R Investment is not rated. See accompanying notes to financial statements.
Nuveen Quality Income Municipal Fund, Inc. (NQU) Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.7% $ 4,985 Alabama Drinking Water Finance Authority, Revolving Fund Loan 9/08 at 100 AAA $ 4,877,922 Bonds, Series 1998A, 4.850%, 8/15/22 3,500 City of Bessemer Governmental Utility Services Corporation, 6/08 at 102 AAA 3,553,830 Alabama, Water Supply Revenue Bonds, Series 1998, 5.200%, 6/01/24 17,000 Town of Courtland Industrial Development Board, Alabama, 6/05 at 102 Baa2 17,271,150 Pollution Control Refunding Revenue Bonds (Champion International Corporation), Series 1995, 6.150%, 6/01/19 20,785 Jefferson County, Alabama, Sewer Revenue Capitol Improvement 2/11 at 101 AAA 21,685,198 Warrants, Series 2001A, 5.500%, 2/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.0% 6,750 Alaska Housing Finance Corporation, General Housing Purpose 12/02 at 102 Aa2*** 6,979,973 Bonds, 1992 Series A, 6.600%, 12/01/23 (Pre-refunded to 12/01/02) 5,835 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102 AAA 5,973,756 Bonds, 1995 Series A, 5.875%, 12/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.6% 5,000 Maricopa County Industrial Development Authority, Arizona, 3/10 at 103 AAA 5,260,450 Multifamily Housing Revenue Bonds (Bay Club at Mesa Cove Project), Series 2000A, 5.800%, 9/01/35 9,080 Pima County Industrial Development Authority, Arizona, 12/10 at 103 Aaa 9,716,690 Multifamily Housing Revenue Bonds (FHA-Insured Mortgage Loan - Fountain Village Apartments Project), Series 2000, 6.100%, 12/20/35 4,955 Yuma Regional Medical Center on behalf of Hospital District No. 1 8/02 at 101 1/2 N/R*** 5,246,453 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 - 0.5% 5,620 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102 AAA 5,979,062 Revenue Bonds (Mortgage-Backed Securities Program), 1995 Series B, 6.700%, 7/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.2% 3,000 California Health Facilities Financing Authority, Kaiser Permanente 5/03 at 102 A 3,022,410 Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 State of California, General Obligation Veterans Welfare Bonds, Series 1997BL: 4,100 5.300%, 12/01/12 (Alternative Minimum Tax) 12/08 at 101 AA- 4,322,589 5,000 5.600%, 12/01/32 (Alternative Minimum Tax) 12/03 at 102 AA- 5,062,950 10,000 State of California, Various Purpose General Obligation Bonds, 4/09 at 101 AAA 9,767,300 4.750%, 4/01/29 3,500 State Public Works Board of the State of California (The Trustees 10/02 at 102 Aaa 3,715,460 of The California State University), Lease Revenue Bonds (Various California State University Projects), 1992 Series A, 6.625%, 10/01/10 (Pre-refunded to 10/01/02) 17,000 State Public Works Board of the State of California, Department 11/04 at 102 Aaa 19,715,410 of Corrections, Lease Revenue Bonds (California State Prison, Monterey County (Soledad II)), 1994 Series A, 7.000%, 11/01/19 (Pre-refunded to 11/01/04) 10,000 Eastern Municipal Water District, California, Water and Sewer 7/11 at 100 AAA 10,094,800 Revenue Certificates of Participation, Series 2001B, 5.000%, 7/01/30 8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100 AAA 8,557,205 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 2,500 Los Angeles Community Redevelopment Agency, California, 1/02 at 100 BBB*** 2,528,375 Tax Allocation Refunding Bonds (Central Business District Redevelopment Project), Series G, 6.750%, 7/01/10 12,605 Los Angeles County Metropolitan Transportation Authority, 7/11 at 101 AAA 12,733,949 California, Proposition A First Tier Senior Sales Tax Revenue Bonds, Series 2001A, 5.000%, 7/01/31 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 3.8% 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 $ 3,502,097 3,040 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 3,046,688 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 3,165 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 A*** 3,234,915 3,825 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 A*** 3,832,000 10,000 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 10,407,800 Refunding Bonds, Series 2000A, 5.625%, 11/15/23 (Alternative Minimum Tax) 10,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/07 at 101 AAA 9,573,400 Series 1997A, 4.750%, 9/01/23 14,400 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 65 5/8 AAA 6,077,808 Series 2000B, 0.000%, 9/01/17 8,740 Poudre School District R-1, Larimer County, Colorado, General 12/10 at 100 AAA 8,905,973 Obligation Bonds, Series 2000, 5.125%, 12/15/19 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.4% 5,000 Orange County Health Facilities Authority, Florida, Hospital Revenue 11/10 at 101 A- 5,358,850 Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2000, 6.500%, 11/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.8% 10,000 State of Hawaii, Airports System Revenue Bonds, Refunding 7/10 at 101 AAA 10,739,100 Series 2000B, 5.750%, 7/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 8.4% 32,670 City of Chicago, Illinois, General Obligation Bonds (City Colleges No Opt. Call AAA 6,547,395 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 5,510,200 Alive 21 Program), Series 2000A, 6.000%, 1/01/28 5,045 City of Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101 AAA 5,390,885 Series 2000D, 5.750%, 1/01/30 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: 9,400 0.000%, 12/01/14 No Opt. Call AAA 5,066,694 4,400 0.000%, 12/01/15 No Opt. Call AAA 2,225,168 12,750 City of Chicago, Illinois, Chicago Midway Airport Revenue Bonds, 1/09 at 101 AAA 12,460,703 Series 1998A, 5.125%, 1/01/35 (Alternative Minimum Tax) 15,000 City of Chicago, Illinois, Chicago O'Hare International Airport, 1/11 at 101 AAA 15,004,650 Second Lien Passenger Facility Charge Revenue Bonds, Series 2001C, 5.250%, 1/01/32 (Alternative Minimum Tax) City of Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2000: 8,000 5.750%, 1/01/25 1/10 at 101 AAA 8,554,640 7,750 6.000%, 1/01/30 1/10 at 101 AAA 8,504,075 Illinois Development Finance Authority, Multifamily Housing Revenue Bonds (Town and Garden Apartments Project), Series 1992: 3,745 7.800%, 3/01/06 (Alternative Minimum Tax) (Pre-refunded to 3/01/02) 3/02 at 102 N/R*** 3,887,647 1,150 7.200%, 9/01/08 (Alternative Minimum Tax) (Pre-refunded to 3/01/02) 3/02 at 102 N/R*** 1,191,630 11,000 Illinois Health Facilities Authority, Hospital Revenue Bonds 11/03 at 102 AAA 12,075,800 (Hindsdale Hospital), Series 1993-A, 7.000%, 11/15/19 10,000 Illinois Health Facilities Authority, Revenue Bonds (Iowa Health 2/10 at 101 AAA 10,616,300 System), Series 2000, 5.875%, 2/15/30 2,670 Illinois Housing Development Authority, Section 8 Elderly Housing 9/02 at 102 A 2,746,763 Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 5,000 State of Illinois, General Obligation Bonds (Illinois FIRST), Series 12/10 at 100 AAA 5,213,950 of December 2000, 5.450%, 12/01/21 3,495 Joliet Regional Port District Airport Facilities, Illinois, Revenue 7/07 at 103 N/R 3,279,813 Bonds (Lewis University Airport), Series 1997A, 7.250%, 7/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 0.8% 5,125 City of Petersburg, Indiana, Pollution Control Refunding Revenue 12/04 at 102 A3 5,377,048 Bonds (Indianapolis Power and Light Company Project), Series 1995A, 6.625%, 12/01/24 5,000 St. Joseph County Hospital Authority, Indiana, Health System 2/08 at 101 AAA 4,552,250 Bonds (Memorial Health System), Series 1998A, 4.625%, 8/15/28 Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of Investments October 31, 2001 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.7% $ 8,585 Iowa Finance Authority, Hospital Facilities Revenue Bonds (Iowa 7/08 at 102 AAA $ 8,559,846 Health System), Series 1998A, 5.125%, 1/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% 4,585 Unified School District No. 232, DeSoto, Johnson County, 9/10 at 100 Aaa 4,516,959 Kansas, General Obligation Bonds, Series 2000, 4.750%, 9/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.4% 10,000 City of Danville, Kentucky, Multi-City Lease Revenue Bonds 3/02 at 102 AAA 10,357,400 (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) 7,630 Kentucky Housing Corporation, Housing Revenue Bonds (Federally 1/05 at 102 AAA 8,038,358 Insured or Guaranteed Mortgage Loans), 1995 Series B, 6.625%, 7/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.9% 10,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds No Opt. Call AAA 11,011,000 (Franciscan Missionaries of Our Lady Health System Project), Series 1998A, 5.750%, 7/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.4% 3,385 Maryland Community Development Administration, Department 11/01 at 102 Aa2 3,456,424 of Housing and Community Development, Multifamily Housing Revenue Bonds (Insured Mortgage Loans), 1991 Series E, 7.100%, 5/15/28 1,000 Maryland Community Development Administration, Department 9/10 at 100 Aa2 1,001,040 of Housing and Community Development, Residential Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax) 1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100 AA- 996,890 Revenue Bonds, Johns Hopkins Hospital Issue, Series 2001, 5.000%, 5/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 5.4% 15,000 Massachusetts Industrial Finance Agency, Resource Recovery 1/02 at 103 N/R 15,484,950 Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 3,180 Massachusetts Industrial Finance Agency, Resource Recovery 1/02 at 103 N/R 3,282,746 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 5,749,740 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) 8,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102 AAA 8,327,025 Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 13,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 101 AAA 13,198,005 Revenue Bonds, Subordinated Series 1999A, 5.000%, 1/01/39 6,425 Massachusetts Water Pollution Abatement Trust, Water Pollution 8/09 at 101 Aaa 6,891,969 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 10,751,600 Bonds, Series 2000A, 5.750%, 8/01/39 5,380 University of Massachusetts Building Authority, Project Revenue 11/10 at 100 AAA 5,529,510 Bonds, Senior Series 2000-2, 5.250%, 11/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.9% 1,000 City of Detroit, Michigan, Water Supply System Revenue 7/11 at 101 AAA 1,082,350 Senior Lien Bonds, 2001 Series A, 5.750%, 7/01/28 7,425 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101 A+ 7,837,607 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 8,800,900 (Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) 16,875 Michigan Strategic Fund, Limited Obligation Refunding Revenue 12/01 at 102 AAA 17,279,663 Bonds (Detroit Edison Company Pollution Control Project), Collateralized Series 1991DD, 6.875%, 12/01/21 (Pre-refunded to 12/01/01) 2,300 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/11 at 100 A- 2,333,948 Bonds (Detroit Edison Company Pollution Control Project), Collateralized Series 1999C, Fixed Rate Conversion, 5.650%, 9/01/29 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.6% City of Chaska, Minnesota, Electric Revenue Bonds (Generating Facilities), Series 2000A: $ 1,930 6.000%, 10/01/20 10/10 at 100 A3 $ 2,053,829 2,685 6.000%, 10/01/25 10/10 at 100 A3 2,847,389 3,655 Dakota County, Washington County and City of Bloomington No Opt. Call AAA 5,170,948 Housing and Redevelopment Authority, Minnesota, Single Family Residential Mortgage Revenue Bonds (Mortgage-Backed Program), Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) 5,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/08 at 101 AAA 4,929,000 Minnesota, Airport Revenue Bonds, Series 1998A, 5.000%, 1/01/30 3,080 Minnesota Housing Finance Agency, Single Family Mortgage 1/04 at 102 AA+ 3,207,142 Bonds, 1994 Series J, 6.950%, 7/01/26 (Alternative Minimum Tax) 2,380 Washington County Housing and Redevelopment Authority, 2/02 at 102 AAA 2,431,360 Minnesota, Multifamily Housing Revenue Bonds (FHA-Insured Mortgage Loan - Cottages Phase III Project), Series 1991, 7.650%, 8/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.7% 3,190 Canton Housing Development Corporation, Mississippi, No Opt. Call AAA 3,932,632 1990 Multifamily Mortgage Revenue Refunding Bonds (FHA- Insured Mortgage - Section 8 Assisted Canton Estates Apartments Project), Series A, 7.750%, 8/01/24 1,140 Charter Mortgage Corporation, Mississippi, 1990 Multifamily No Opt. Call AAA 1,386,970 Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Church Garden Apartments Project), Series A, 7.750%, 2/01/22 2,500 Mississippi Hospital Equipment and Facilities Authority, Revenue 1/11 at 101 Aaa 2,583,400 Bonds (Forrest County General Hospital Project), Series 2000, 5.500%, 1/01/27 1,260 Pearl Housing Development Corporation, Mississippi, 1990 12/01 at 100 AAA 1,261,701 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Rose Garden Apartments Project), Series A, 7.750%, 8/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.1% Jackson County Industrial Development Authority, Missouri, Healthcare System Revenue Bonds, St. Mary's Hospital of Blue Springs Issue, Series 1994: 4,890 6.500%, 7/01/12 7/02 at 102 Baa1 4,966,920 5,605 7.000%, 7/01/22 7/02 at 102 Baa1 5,736,437 15,350 City of Springfield Public Building Corporation, Missouri, No Opt. Call AAA 3,282,444 Leasehold Revenue Bonds (Jordan Valley Park Projects), Series 2000A, 0.000%, 6/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.6% 7,000 City of Forsyth, Rosebud County, Montana, Pollution Control 2/02 at 102 AAA 7,166,810 Revenue Refunding Bonds (Puget Sound Power and Light Company Colstrip Project), Series 1992, 7.050%, 8/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.5% 11,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 11,464,310 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 8,333,920 Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.2% 2,205 New Hampshire Housing Finance Authority, Single Family 1/02 at 102 Aa3 2,253,135 Residential Mortgage Bonds, 1991 Series C, 7.100%, 1/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 0.9% 11,785 Camden County Pollution Control Financing Authority, 12/01 at 102 B2 11,727,607 New Jersey, Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991D, 7.250%, 12/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.5% 5,925 New Mexico Hospital Equipment Loan Council, Hospital 8/11 at 101 A1 6,032,776 Revenue Bonds (Presbyterian Healthcare Services), Series 2001A, 5.500%, 8/01/21 Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of Investments October 31, 2001 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 14.9% $ 25,000 Erie Tobacco Asset Securitization Corporation, Erie County, 7/10 at 101 A1 $ 26,498,250 New York, Tobacco Settlement Asset-Backed Bonds, Senior Series 2000, 6.125%, 7/15/30 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A: 1,130 5.375%, 9/01/25 9/11 at 100 A- 1,150,645 2,715 5.250%, 9/01/28 9/11 at 100 AAA 2,767,019 15,000 Metropolitan Transportation Authority, New York, Dedicated Tax 4/10 at 100 AAA 16,522,650 Fund Bonds, Series 2000A, 6.000%, 4/01/30 2,100 Niagara Falls Housing and Commercial Rehabilitation Corporation, No Opt. Call AA 2,455,803 New York, 1992 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Project), 7.350%, 8/01/23 16,000 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101 A- 17,126,720 Tobacco Settlement Asset-Backed Bonds, Series A, 6.400%, 7/15/33 6,000 City of New York, New York, General Obligation Bonds, 8/07 at 101 A 6,407,760 Fiscal 1997 Series H, 6.125%, 8/01/25 10,000 City of New York, New York, General Obligation Bonds, 5/10 at 101 A 10,343,400 Fiscal 2000 Series A, 5.500%, 5/15/24 5,475 City of New York, New York, General Obligation Bonds, 8/04 at 101 Aaa 6,258,144 Fiscal 1995 Series B1, 7.250%, 8/15/19 (Pre-refunded to 8/15/04) 14,800 City of New York, New York, General Obligation Bonds, 6/07 at 101 AAA 15,559,832 Fiscal 1997 Series M, 5.500%, 6/01/17 6,700 City of New York, New York, General Obligation Bonds, 2/05 at 101 Aaa 7,623,126 Fiscal 1995 Series F, 6.625%, 2/15/25 (Pre-refunded to 2/15/05) 5,660 City of New York, New York, General Obligation Bonds, 10/02 at 101 1/2 Aaa 5,987,035 Fiscal 1993 Series B, 6.750%, 10/01/17 (Pre-refunded to 10/01/02) 4,190 City of New York Municipal Water Finance Authority, New York, 6/05 at 101 AAA 4,711,068 Water and Sewer System Revenue Bonds, Fiscal 1996 Series A, 5.875%, 6/15/25 (Pre-refunded to 6/15/05) 10,100 City of New York Transitional Finance Authority, New York, 5/10 at 101 AA+ 10,969,711 Future Tax Secured Bonds, Fiscal 2000 Series B, 5.750%, 11/15/19 5,000 New York State Dormitory Authority, Mental Health Services 2/07 at 102 AA- 5,224,450 Facilities Improvement Revenue Bonds, Series 1997A, 5.750%, 2/15/27 10,000 New York State Dormitory Authority, Mental Health Services 2/10 at 100 AAA 10,872,400 Facilities Improvement Revenue Bonds, Series 2000B, 6.000%, 2/15/30 New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds (New York City Municipal Water Finance Authority Projects), Series 2001C, Second Resolution Bonds: 6,035 5.000%, 6/15/20 6/11 at 100 Aaa 6,096,678 6,575 5.000%, 6/15/22 6/11 at 100 Aaa 6,622,077 8,000 New York State Medical Care Facilities Finance Agency, New York 2/05 at 102 AAA 9,152,720 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, Brookdale 2/05 at 102 AAA 5,774,000 Hospital Medical Center, Secured Hospital Revenue Bonds, 1995 Series A, 6.850%, 2/15/17 (Pre-refunded to 2/15/05) New York State Medical Care Facilities Finance Agency, FHA-Insured Mortgage Project Revenue Bonds, 1995 Series F: 3,860 6.200%, 8/15/15 (Pre-refunded to 8/15/05) 8/05 at 102 AA*** 4,439,502 4,250 6.300%, 8/15/25 8/05 at 102 AA 4,903,353 3,170 Penfield-Crown Oak Housing Development Corporation, New York, 2/03 at 100 AAA 3,234,922 1991 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Crown Oak Estates Project), Series A, 7.350%, 8/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.4% 10,500 North Carolina Eastern Municipal Power Agency, Power System 1/02 at 102 BBB 10,765,545 Revenue Bonds, Refunding Series 1991A, 6.250%, 1/01/03 13,720 North Carolina Medical Care Commission, Hospital Revenue 12/08 at 101 AAA 13,010,813 Bonds (Pitt County Memorial Hospital), Series 1998A, 4.750%, 12/01/28 City of Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Series 2001: 3,660 4.750%, 3/01/21 3/11 at 100 AAA 3,580,468 3,035 4.750%, 3/01/26 3/11 at 100 AAA 2,943,222 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.8% $ 4,800 Butler County, Ohio, Hospital Facilities Revenue Refunding and 1/02 at 102 Baa1*** $ 4,936,560 Improvement Bonds (Fort Hamilton-Hughes Memorial Hospital Center), Series 1991, 7.500%, 1/01/10 (Pre-refunded to 1/01/02) 5,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102 Aaa 5,367,300 Bonds (GNMA Mortgage-Backed Securities Program), 1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 4.5% 1,595 Oklahoma County Home Finance Authority, Oklahoma, Single 1/02 at 101 1/2 Aaa 1,628,734 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 23,531,164 Municipal Refunding Collateralized Mortgage Obligations, Series 1991A, 8.625%, 7/01/10 12,750 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, No Opt. Call BB 11,699,655 Revenue Bonds, Refunding Series 2000B, 6.000%, 6/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08) 23,005 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, Revenue No Opt. Call BB 20,673,903 Bonds (American Airlines Inc.), Refunding Series 2001B, 5.650%, 12/01/35 (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.4% 6,975 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 7,460,111 Resource Recovery Revenue Refunding Bonds (Panther Creek Partners Project), 2000 Series, 6.650%, 5/01/10 (Alternative Minimum Tax) Falls Township Hospital Authority, Pennsylvania, Refunding Revenue Bonds (FHA-Insured Mortgage - Delaware Valley Medical Center Project), Series 1992: 455 6.900%, 8/01/11 8/02 at 102 AAA 455,910 3,000 7.000%, 8/01/22 8/02 at 102 AAA 3,105,390 7,000 Commonwealth of Pennsylvania, General Obligation Bonds, 9/11 at 101 AA 7,364,210 Second Series 2001, 5.000%, 9/15/15 - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.2% 1,500 Commonwealth of Puerto Rico, Public Improvement General No Opt. Call A 1,617,540 Obligation Bonds of 2002, Series A, 5.500%, 7/01/29 1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 1,061,160 Bonds, 2000 Series A, 5.500%, 10/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.1% 4,000 Town of Lexington, South Carolina, Combined Waterworks and 4/10 at 101 Aaa 3,990,680 Sewer System Revenue Refunding and Improvement Bonds, Series 2001A, 5.000%, 4/01/27 10,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101 A1 10,696,700 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.8% 10,000 Tennessee Housing Development Agency, Homeownership 7/10 at 100 AA 10,601,400 Program Bonds, Issue 2000-2B, 6.350%, 1/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 13.5% 14,360 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue 12/01 at 101 BB 13,998,128 Bonds (American Airlines, Inc. Project), Series 1990, 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 2,122,179 4,105 0.000%, 2/15/14 2/05 at 58 25/32 Aaa 2,059,971 6,500 Bell County Health Facilities Development Corporation, Texas, 11/08 at 101 A- 6,268,600 Retirement Facility Revenue Bonds (Buckner Retirement Services, Inc. Obligated Group Project), Series 1998, 5.250%, 11/15/19 14,375 Dallas-Fort Worth International Airport Facilities Improvement No Opt. Call BB 13,470,813 Corporation, Texas, Revenue Refunding Bonds (American Airlines, Inc.), Series 2000C, 6.150%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/07) 3,695 Fort Worth Housing Finance Corporation, Texas, Home Mortgage 4/02 at 103 Aa2 3,809,915 Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11 8,235 Grand Prairie Housing Finance Corporation, Texas, Multifamily 9/10 at 105 AAA 9,086,417 Housing Revenue Bonds (Landings at Carrier Project), Series 2000A, 6.875%, 9/20/42 Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of Investments October 31, 2001 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 11,000 Harris County Health Facilities Development Corporation, Texas, 10/09 at 101 AA $ 10,801,890 Hospital Revenue Bonds (Texas Children's Hospital Project), Series 1999A, 5.250%, 10/01/29 13,175 Houston Independent School District, Texas, Limited Tax 2/09 at 100 AAA 12,527,185 Schoolhouse and Refunding Bonds, Series 1999A, 4.750%, 2/15/26 36,735 City of Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA 8,653,664 Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/28 22,500 City of Houston, Texas, Water and Sewer System Junior Lien 12/10 at 100 AAA 22,848,075 Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30 16,270 City of Houston, Texas, Water and Sewer System Junior Lien 12/01 at 102 AAA 16,653,484 Revenue Refunding Bonds, Series 1991C, 6.375%, 12/01/17 17,655 Matagorda County Navigation District Number One, Texas, 11/08 at 100 AAA 17,784,058 Revenue Refunding Bonds (Houston Industries Incorporated Project), Series 1998B, 5.150%, 11/01/29 7,650 Port of Corpus Christi Authority, Nueces County, Texas, Revenue 5/06 at 101 BBB- 7,426,850 Refunding Bonds (Union Pacific Corporation Project), Series 1992, 5.350%, 11/01/10 14,680 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100 AAA 16,732,704 Unlimited Tax School Building Bonds, Series 1999, 5.800%, 8/15/29 (Pre-refunded to 8/15/09) 3,750 Spring Branch Independent School District, Harris County, 2/11 at 100 AAA 3,777,450 Texas, Limited Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/23 5,000 City of Wichita Falls, Texas, Wichita County, Water and Sewer 8/11 at 100 AAA 4,983,600 System Priority Lien Revenue Bonds, Series 2001, 5.000%, 8/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.5% 5,800 Carbon County, Utah, Solid Waste Disposal Refunding Revenue 2/05 at 102 BB- 5,947,610 Bonds (Laidlaw/ECDC Project - Guaranteed by Allied Waste Industries), Series 1995, 7.500%, 2/01/10 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.9% 1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101 Aaa 1,036,200 Revenue Bonds (National Wildlife Federation Project), Series 1999, 5.375%, 9/01/29 7,000 Norfolk Airport Authority, Virginia, Airport Revenue Refunding 7/11 at 100 AAA 6,999,510 Bonds, Series 2001B, 5.125%, 7/01/31 (Alternative Minimum Tax) City of Norfolk, Virginia, Water Revenue and Refunding Bonds, Series 2001: 1,450 5.000%, 11/01/23 11/11 at 100 AAA 1,457,366 1,525 5.000%, 11/01/24 11/11 at 100 AAA 1,531,558 2,000 Powhatan County, Virginia, General Obligation Bonds, Series 2001, 1/11 at 101 AAA 2,006,200 5.000%, 1/15/27 (WI, settling 11/07/01) 1,000 Spotsylvania County, Virginia, Water and Sewer System Revenue 6/11 at 100 AAA 999,200 Bonds, Series 2001, 5.000%, 6/01/30 (WI, settling 11/08/01) 11,040 Suffolk Redevelopment and Housing Authority, Virginia, Multifamily No Opt. Call Aaa 11,524,435 Housing Revenue Refunding Bonds (Windsor at Potomac Vista Limited Partnership Project), Series 2001, 4.850%, 7/01/31 (Mandatory put 7/01/11) 2,000 Virginia College Building Authority, Educational Facilities Revenue 9/11 at 100 Aa1 2,005,720 Bonds (Public Higher Education Financing Program), Series 2001A, 5.000%, 9/01/26 8,320 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ 8,505,619 Bonds, 1992 Series A, 7.150%, 1/01/33 665 Virginia Housing Development Authority, Rental Housing Bonds, 5/09 at 101 AA+ 674,037 1999 Series F, 5.000%, 5/01/15 750 Virginia Resource Authority, Water and Sewer System Revenue 5/11 at 101 AA 744,225 Bonds (Caroline County Public Improvements Project), Series 2001, 5.000%, 5/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 7.9% 13,550 Central Puget Sound Regional Transit Authority, Washington, 2/09 at 101 AAA 12,792,149 Sales Tax and Motor Vehicle Excise Tax Bonds, Series 1999, 4.750%, 2/01/28 4,185 Public Utility District No. 1, Douglas County, Washington, 9/06 at 106 AA- 5,354,122 Wells Hydro-Electric Revenue Bonds, Series 1986, 8.750%, 9/01/18 11,950 Public Hospital District No. 2, King County, Washington, Limited 12/08 at 101 AAA 11,682,440 Tax General Obligation Bonds (Evergreen Community Healthcare), Series 1998, 5.000%, 12/01/28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 12,415 Federal Way School District No. 210, King County, Washington, 12/03 at 100 A1*** $ 13,597,653 Unlimited Tax General Obligation Bonds, Series 1991, 6.950%, 12/01/11 (Pre-refunded to 12/01/03) 6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100 AAA 7,245,723 5.625%, 2/01/24 (Alternative Minimum Tax) 13,400 City of Seattle, Washington, Municipal Light and Power Revenue 12/10 at 100 Aa3 13,672,154 Bonds, Series 2000, 5.400%, 12/01/25 1,675 Spokane Downtown Foundation, Washington, Parking Revenue 8/08 at 102 D 1,038,499 Bonds (River Park Square Project), Series 1998, 5.600%, 8/01/19# 9,440 City of Tacoma, Washington, Electric System Revenue Bonds, 1/11 at 101 AAA 10,250,706 Series 2001A Refunding, 5.750%, 1/01/18 4,000 North Thurston School District No. 3, Thurston County, 12/02 at 100 A 4,185,479 Washington, Unlimited Tax General Obligation Bonds, Series 1992, 6.500%, 12/01/09 18,000 Washington Healthcare Facilities Authority, Revenue Bonds 8/13 at 102 AAA 17,478,719 (Harrison Memorial Hospital), Series 1998, 5.000%, 8/15/28 4,175 Washington State University, Recreation Center Revenue Bonds, 4/08 at 101 AAA 4,119,973 Series 1998, 5.000%, 4/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.4% 7,000 Wisconsin Housing and Economic Development Authority, 1/02 at 102 AA 7,162,329 Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 10,820 Wisconsin Health and Educational Facilities Authority, Revenue 12/01 at 102 AAA 11,097,424 Bonds (Novus Health Group), Series 1991-B, 6.750%, 12/15/20 (Pre-refunded to 12/15/01) - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.0% 365 Wyoming Community Development Authority, Single Family 11/01 at 103 AA 376,270 Mortgage Bonds (Federally Insured or Guaranteed Mortgage Loans), Series 1988G, 7.250%, 6/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,307,195 Total Investments (cost $1,198,519,270) - 98.7% 1,265,887,867 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 16,748,526 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $1,282,636,393 ==================================================================================================================== * 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. # Non-income producing security, in the case of a bond, generally denotes that issuer has defaulted on the payment of principal or interest or has filed for bankruptcy. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements.
Nuveen Premier Municipal Income Fund, Inc. (NPF) Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.7% $ 3,310 Alabama Higher Education Loan Corporation, Student Loan Revenue No Opt. Call AAA $ 3,521,575 Refunding Bonds, Series 1994-D, 5.850%, 9/01/04 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.5% 2,000 Alaska Housing Finance Corporation, General Mortgage Revenue 6/09 at 101 AAA 2,061,920 Bonds, 1999 Series A, 6.000%, 6/01/49 415 Municipality of Anchorage, Alaska, Home Mortgage Revenue Bonds 3/02 at 102 AAA 425,363 (Mortgage-Backed Securities Program), Series 1992, 8.000%, 3/01/09 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 3.2% 3,650 Gilbert Unified School District No. 41, Maricopa County, Arizona, 7/04 at 100 AAA 3,981,347 School Improvement Bonds (Project of 1993), Series 1994C, 6.100%, 7/01/14 (Pre-refunded to 7/01/04) 10,635 Yuma Regional Medical Center on behalf of Hospital District No. 1, 8/02 at 101 1/2 N/R*** 11,260,551 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 - 1.7% 5,070 Arkansas Development Finance Authority, Single Family Mortgage 1/11 at 100 AAA 5,079,836 Revenue Bonds (Mortgage-Backed Securities Program), 2001 Series I, 5.300%, 7/01/33 (Alternative Minimum Tax) 1,020 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102 AAA 1,092,910 Revenue Bonds (Mortgage-Backed Securities Program), 1994 Series C, 6.600%, 7/01/17 1,245 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102 AAA 1,299,182 Revenue Bonds (Mortgage-Backed Securities Program), 1995 Series B, 6.550%, 7/01/18 (Alternative Minimum Tax) 157 Drew County Public Facilities Board, Arkansas, Single Family 8/03 at 103 Aaa 166,019 Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 8/01/11 105 Greene County Residential Housing Facilities Board, Arkansas, 1/02 at 103 Aa2 108,325 Subordinated Mortgage Revenue Bonds, Series 1991-1, 7.250%, 1/01/10 185 Stuttgart Public Facilities Board, Arkansas, Single Family 9/03 at 103 Aaa 195,271 Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 4.1% Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A: 33,000 0.000%, 1/01/17 No Opt. Call AAA 15,918,540 10,000 0.000%, 1/01/22 No Opt. Call AAA 3,561,800 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 1.3% Colorado Health Facilities Authority, Hospital Refunding Revenue Bonds (National Jewish Center for Immunology and Respiratory Medicine Project), Series 1992: 410 6.600%, 2/15/02 No Opt. Call N/R*** 414,736 1,250 6.875%, 2/15/12 (Pre-refunded to 2/15/02) 2/02 at 102 N/R*** 1,291,450 3,040 7.100%, 2/15/22 (Pre-refunded to 2/15/02) 2/02 at 102 N/R*** 3,142,691 1,000 Colorado Health Facilities Authority, Hospital Revenue Bonds 12/09 at 101 Aaa 1,065,820 (Poudre Valley Healthcare, Inc.), Series 1999A, 5.750%, 12/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 1.6% 2,000 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102 BBB 2,046,880 Refunding Bonds (Connecticut Light and Power Company), Series 1993A, 5.850%, 9/01/28 4,110 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 Aaa 4,329,227 Program Bonds, 1997 Series A, Subseries A-4, 6.200%, 11/15/22 (Alternative Minimum Tax) 1,300 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AAA 1,387,646 Program Bonds, 1996 Series C-2, 6.250%, 11/15/18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 2.5% $ 1,175 District of Columbia, Hospital Revenue Refunding Bonds, Washington 8/02 at 102 A3*** $ 1,225,173 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 (FHA-Insured Mortgage Loans - Section 8 Assisted Project), Series 1992B: 920 7.200%, 9/01/12 9/02 at 102 A3 954,353 3,505 7.250%, 3/01/24 9/02 at 102 A3 3,622,943 District of Columbia, University Revenue Bonds, Georgetown University Issue, Series 2001A: 14,105 0.000%, 4/01/24 4/11 at 47 21/32 AAA 4,052,367 7,625 0.000%, 4/01/25 4/11 at 44 13/16 AAA 2,059,513 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.9% 4,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102 AAA 4,179,360 5.750%, 10/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.8% 8,000 George L. Smith II World Congress Center Authority, Georgia, 7/10 at 101 AAA 8,306,160 Refunding Revenue Bonds (Domed Stadium Project), Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.5% 2,250 Department of Budget and Finance of the State of Hawaii, Special 1/09 at 101 AAA 2,441,070 Purpose Revenue Bonds (Hawaii Electric Company, Inc. and Subsidiaries Project), Series 1999D, 6.150%, 1/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.2% 995 Idaho Housing and Finance Association, Single Family Mortgage 7/06 at 102 Aa1 1,089,963 Bonds, 1996 Series E, 6.350%, 7/01/14 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 21.1% 3,000 City of Chicago, Illinois, General Obligation Bonds (Central Public 7/02 at 101 1/2 AAA 3,140,280 Library Project), Series 1988C, 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 2,689,954 16,670 0.000%, 1/01/26 No Opt. Call AAA 4,631,926 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 2,373,900 10,000 0.000%, 12/01/20 No Opt. Call AAA 3,682,500 9,900 0.000%, 12/01/24 No Opt. Call AAA 2,899,017 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 5,195,100 10,000 0.000%, 12/01/23 No Opt. Call AAA 3,096,300 1,055 Chicago Public Building Commission, Illinois, Building Revenue No Opt. Call AAA 1,244,974 Bonds (Board of Education of the City of Chicago), Series 1990B, 7.000%, 1/01/15 13,000 City of Chicago, Illinois, Wastewater Transmission Revenue 1/06 at 102 AAA 13,006,500 Bonds, Series 1995, 5.125%, 1/01/25 7,450 Town of Cicero, Cook County, Illinois, General Obligation Tax 12/04 at 102 N/R*** 8,575,695 Increment Bonds, Series 1995A, 8.125%, 12/01/12 (Pre-refunded to 12/01/04) 5,270 Illinois Development Finance Authority, Multifamily Housing 3/02 at 102 N/R*** 5,470,734 Revenue Bonds (Town and Garden Apartments Project), Series 1992, 7.800%, 3/01/06 (Alternative Minimum Tax) (Pre-refunded to 3/01/02) Illinois Development Finance Authority, Multifamily Housing Bonds (Affordable Housing Preservation Foundation Project), Series 1990, Subseries B (FHA-Insured Mortgage Loans - Lawless Gardens Project): 600 7.650%, 7/01/07 1/02 at 105 AAA 631,620 5,270 7.650%, 12/31/31 1/02 at 105 AAA 5,549,047 7,400 Illinois Health Facilities Authority, Revenue Bonds (Trinity Medical 7/02 at 102 Baa2*** 7,778,584 Center), Series 1992, 7.000%, 7/01/12 (Pre-refunded to 7/01/02) Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued) Portfolio of Investments October 31, 2001 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 125 Illinois Health Facilities Authority, Revenue Refunding Bonds 4/02 at 102 AA-*** $ 130,134 (Evangelical Hospitals Corporation), Series 1992A, 6.750%, 4/15/12 (Pre-refunded to 4/15/02) 4,505 Illinois Housing Development Authority, Section 8 Elderly Housing 9/02 at 102 A 4,634,519 Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 545 Illinois Housing Development Authority, Section 8 Elderly Housing 1/03 at 102 A*** 582,120 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 3,970,744 9,400 0.000%, 12/15/18 No Opt. Call AAA 3,942,266 10,775 0.000%, 12/15/24 No Opt. Call AAA 3,178,625 2,000 Onterie Center Housing Finance Corporation (An Illinois Not For 7/02 at 102 AAA 2,086,060 Profit Corporation), Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage Loan - Onterie Center Project), Series 1992A, 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*** 1,459,630 1,440 7.500%, 5/01/17 5/02 at 102 N/R 1,483,747 4,725 Town of Wood River Township Hospital, Madison County, Illinois, 2/04 at 102 N/R 3,892,219 General Obligation Bonds (Alternate Revenue Source), Series 1993, 6.625%, 2/01/14 4,900 Town of Wood River Township Hospital, Madison County, Illinois, 2/04 at 102 N/R 3,991,589 General Obligation Tort Immunity Bonds, Series 1993, 6.500%, 2/01/14 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 4.1% Crown Point Multi-School Building Corporation, Indiana, First Mortgage Bonds (Crown Point Community School Corporation), Series 2000: 7,480 0.000%, 1/15/21 No Opt. Call AAA 2,728,779 7,980 0.000%, 1/15/22 No Opt. Call AAA 2,751,424 6,180 0.000%, 1/15/23 No Opt. Call AAA 2,017,214 29,255 Indianapolis Local Public Improvement Bond Bank, Indiana, General No Opt. Call AAA 8,514,083 Obligation Bonds, Series 1999E, 0.000%, 2/01/25 2,860 PHM Elementary/Middle School Building Corporation, St. Joseph No Opt. Call A 3,245,271 County, Indiana, First Mortgage Bonds, Series 1994, 6.300%, 1/15/09 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.4% 1,655 Iowa Student Loan Liquidity Corporation, Student Loan Revenue 12/02 at 102 Aaa 1,721,018 Bonds, Senior Series B, 5.750%, 12/01/06 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.8% 1,295 City of Hutchinson, Kansas, Single Family Mortgage Revenue 6/02 at 103 Aa3 1,343,705 Refunding Bonds, Series 1992, 8.875%, 12/01/12 6,440 Unified Government of Wyandotte County/Kansas City, Kansas, No Opt. Call AAA 2,385,698 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 5,114,450 Development Project Revenue Bonds (Donnelly Corporation Project), Series 1992, 8.125%, 7/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.3% 1,310 Louisiana Housing Finance Agency, Mortgage Revenue Bonds 9/05 at 103 AAA 1,420,957 (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 A2 8,487,584 Student Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.3% $ 6,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB- $ 6,278,580 Bonds (Woodside Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.7% Massachusetts Municipal Wholesale Electric Company, Power Supply System Revenue Bonds, 1987 Series A: 5 8.750%, 7/01/18 1/02 at 100 BBB+ 5,061 5 8.750%, 7/01/18 1/03 at 100 BBB+ 5,370 5 8.750%, 7/01/18 1/04 at 100 BBB+ 5,635 5 8.750%, 7/01/18 7/04 at 100 BBB+ 5,775 5 8.750%, 7/01/18 1/05 at 100 BBB+ 5,868 3,875 Massachusetts Health and Educational Facilities Authority, 2/04 at 102 Aa2 4,180,815 Revenue Refunding Bonds (FHA-Insured Project), Youville Hospital Issue, Series B, 6.000%, 2/15/25 8,780 Massachusetts Industrial Finance Agency, Resource Recovery 1/02 at 103 N/R 9,063,682 Revenue Bonds (SEMASS Project), Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 2,000 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/07 at 101 AAA 2,023,520 Revenue Bonds, 1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax) 6,780 Massachusetts Water Resources Authority, General Revenue 7/02 at 102 AAA 7,139,204 Bonds, 1992 Series A, 6.750%, 7/15/12 (Pre-refunded to 7/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.9% 1,975 Charter Township of Clinton, Macomb County, Michigan, 4/09 at 101 AAA 1,750,443 1998 General Obligation Unlimited Tax Police Building Bonds, 4.000%, 4/01/18 2,500 Wayne County Building Authority, Michigan, General Obligation 3/02 at 102 A-*** 2,598,375 Limited Tax Capital Improvement Bonds, Series 1992A, 8.000%, 3/01/17 (Pre-refunded to 3/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 3.6% 7,990 City of Eden Prairie, Minnesota, Multifamily Housing Revenue 12/10 at 103 1/2 Aaa 8,584,057 Bonds (GNMA Collateralized Mortgage Loan - Lincoln Park Project), Series 2000A-1, 6.650%, 6/20/42 10,780 Northwest Minnesota Multi-County Housing and Redevelopment 10/04 at 102 N/R 8,606,536 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 3,325,182 Appreciation Bonds, Series 1992-I, 0.000%, 9/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.3% 1,590 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101 AAA 1,615,885 Bonds (SSM Healthcare), Series 2001A, 5.250%, 6/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 3.6% 2,830 City of Grand Island, Nebraska, Electric System Revenue Bonds, 3/02 at 100 A+*** 3,110,623 1977 Series, 6.100%, 9/01/12 2,350 Nebraska Higher Education Loan Program Inc., Senior Subordinate No Opt. Call AAA 2,585,940 Bonds, Series A-5B, 6.250%, 6/01/18 (Alternative Minimum Tax) 10,935 Omaha Public Power District, Nebraska, Electric System Revenue 2/02 at 101 1/2 AAA 11,220,185 Bonds, 1992 Series A, 6.500%, 2/01/17 (Pre-refunded to 2/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 1.3% 790 New Hampshire Municipal Bond Bank, Educational Institutions No Opt. Call N/R 820,281 Division Revenue Bonds (1994 Coe-Brown Northwood Academy Project), 7.250%, 5/01/09 5,000 New Hampshire Housing Finance Authority, Multifamily Housing 7/10 at 101 Aaa 5,218,550 Revenue Bonds (Countryside Limited Partnership - Countryside Project), 1994 Issue Remarketing, 6.100%, 7/01/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 7.7% 1,000 City of New York, New York, General Obligation Bonds, No Opt. Call A 1,103,510 Fiscal 1995 Series A, 7.000%, 8/01/04 4,000 City of New York, New York, General Obligation Bonds, 2/06 at 101 1/2 A 4,207,960 Fiscal 1996 Series J, 5.875%, 2/15/19 Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued) Portfolio of Investments October 31, 2001 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 80 City of New York, New York, General Obligation Bonds, 2/02 at 101 1/2 A $ 82,590 Fiscal 1991 Series D, 9.500%, 8/01/02 City of New York, New York, General Obligation Bonds, Fiscal 1995 Series E: 450 6.500%, 8/01/02 No Opt. Call Aaa 465,206 1,100 6.500%, 8/01/02 No Opt. Call A 1,134,089 4,480 City of New York Transitional Finance Authority, New York, 8/07 at 101 AA+ 4,519,738 Future Tax Secured Bonds, Fiscal 1998 Series A, 5.125%, 8/15/21 10,000 New York State Dormitory Authority, State University Educational 5/10 at 101 AAA 10,484,100 Facilities Revenue Bonds (1999 Resolution), Series 2000B, 5.500%, 5/15/30 5,060 New York State Medical Care Facilities Finance Agency, Hospital 8/02 at 102 AAA 5,220,503 and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22 4,525 New York State Medical Care Facilities Finance Agency, 8/03 at 102 AAA 4,863,289 St. Luke's-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, Hospital 2/04 at 102 AAA 4,079,880 Insured Mortgage Revenue Bonds, 1994 Series A Refunding, 5.500%, 8/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.0% 10,300 North Carolina Eastern Municipal Power Agency, Power System No Opt. Call AAA 11,805,036 Revenue Bonds, Refunding Series 1993B, 6.000%, 1/01/22 2,130 North Carolina Housing Finance Agency, Multifamily Revenue 7/02 at 102 Aa2 2,216,755 Refunding Bonds (1992 Refunding Bond Resolution), Series B, 6.900%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.6% 2,110 Cleveland-Rock Glen Housing Assistance Corporation, Ohio, 7/04 at 103 AAA 2,228,793 Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), Series 1994A, 6.750%, 1/15/25 595 Toledo-Lucas County Port Authority, Development Revenue 11/01 at 101 N/R 598,463 Bonds (Northwest Ohio Bond Fund), Series 1992A, 7.750%, 5/15/07 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.6% 2,000 Falls Township Hospital Authority, Pennsylvania, Refunding 8/02 at 102 AAA 2,070,260 Revenue Bonds (FHA-Insured Mortgage - Delaware Valley Medical Center Project), Series 1992, 7.000%, 8/01/22 270 Northampton County Hospital Authority, Pennsylvania, Hospital No Opt. Call BBB- 270,208 Revenue Bonds (Easton Hospital), Series 1992A, 6.900%, 1/01/02 6,670 City of Philadelphia, Pennsylvania, Water and Sewer Revenue No Opt. Call AAA 7,324,527 Bonds, Tenth Series, 7.350%, 9/01/04 2,500 Philadelphia Hospitals and Higher Education Facilities Authority, 8/02 at 102 A+ 2,623,325 Pennsylvania, Hospital Revenue Bonds (Children's Seashore House), Series 1992A, 7.000%, 8/15/12 4,450 Philadelphia Hospitals and Higher Education Facilities Authority, 8/02 at 102 A+ 4,669,519 Pennsylvania, Hospital Revenue Bonds (Children's Seashore House), Series 1992B, 7.000%, 8/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 3.3% 14,800 Tobacco Settlement Revenue Management Authority, 5/11 at 101 A1 15,463,780 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.4% 2,060 Johnson City Health and Educational Facilities Board, 7/23 at 100 AAA 2,084,555 Tennessee, Hospital Revenue Refunding and Improvement Bonds (Johnson City Medical Center Hospital), Series 1998C, 5.125%, 7/01/25 (Pre-refunded to 7/01/23) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 5.1% 6,415 Edgewood Independent School District, Bexar County, Texas, 8/11 at 100 Aaa 6,419,875 General Obligation Refunding Bonds, Series 2001, 5.125%, 8/15/31 27,355 City of Houston, Texas, Hotel Occupancy Tax and Special No Opt. Call AAA 6,900,846 Revenue Bonds (Convention Project), Series 2001B, 0.000%, 9/01/27 2,000 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100 AAA 2,048,300 General Obligation Bonds, Series 2001, 5.375%, 2/15/26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 4,007 General Services Commission (an Agency of the State of Texas) 9/03 at 100 1/2 A $ 4,052,867 (as Lessee), Participation Interests, 7.500%, 9/01/22 720 Victoria Housing Finance Corporation, Texas, Single Family No Opt. Call Aaa 729,367 Mortgage Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11 Weatherford Independent School District, Parker County, Texas, Unlimited Tax School Building and Refunding Bonds, Series 2001: 6,945 0.000%, 2/15/23 2/11 at 50 1/4 AAA 2,101,974 6,945 0.000%, 2/15/24 2/11 at 47 7/16 AAA 1,981,200 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.7% 1,000 Utah Housing Corporation, Single Family Mortgage Bonds, 7/11 at 100 Aa2 1,013,460 2001 Series D, 5.500%, 1/01/21 (Alternative Minimum Tax) 475 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/07 at 102 AA 495,363 1996 Series C, 6.450%, 7/01/14 (Alternative Minimum Tax) 1,625 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101 1/2 AA 1,713,514 1997 Series F, 5.750%, 7/01/15 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.8% 3,200 Suffolk Redevelopment and Housing Authority, Virginia, 7/02 at 104 Baa2 3,345,440 Multifamily Housing Revenue Refunding Bonds (Chase Heritage at Dulles Project), Series 1994, 7.000%, 7/01/24 (Mandatory put 7/01/04) 5,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ 5,111,900 Mortgage Bonds, 1992 Series A, 7.100%, 1/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.2% 6,160 Public Hospital District No. 2, King County, Washington, Limited 6/11 at 101 AAA 6,242,113 Tax General Obligation Bonds (Evergreen Healthcare), Series 2001A, 5.250%, 12/01/24 9,500 State of Washington, General Obligation and General Obligation No Opt. Call AA+ 10,993,495 Refunding Bonds, Series 1992A and AT-6, 6.250%, 2/01/11 2,500 Washington Healthcare Facilities Authority, Revenue Bonds 2/02 at 102 AA-*** 2,583,424 (Sacred Heart Medical Center, Spokane), Series 1992, 6.875%, 2/15/12 (Pre-refunded to 2/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.2% 850 West Virginia Housing Development Fund, Housing Finance 5/02 at 102 AAA 885,716 Bonds, 1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.1% 2,985 Silver Lake Sanitary District, Waushara County, Wisconsin, 10/02 at 100 N/R*** 3,144,697 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 6,087,980 Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 5,000 Wisconsin Health and Educational Facilities Authority, 2/10 at 101 AA 5,429,599 Revenue Bonds (Marshfield Clinic), Series 1999, 6.250%, 2/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ $ 634,344 Total Investments (cost $439,805,931) - 98.7% 466,276,741 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 6,219,013 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 472,495,754 ==================================================================================================================== * 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.
Statement of Net Assets October 31, 2001
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments in municipal securities, at market value $845,517,843 $793,745,889 $1,265,887,867 $466,276,741 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value 2,000,000 -- -- -- Cash 2,239,882 -- -- -- Receivables: Interest 15,442,049 14,401,895 23,310,261 7,155,811 Investments sold 950,669 390,039 4,545,000 2,299,083 Other assets 35,724 57,537 48,523 27,078 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 866,186,167 808,595,360 1,293,791,651 475,758,713 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- 1,884,259 2,242,435 1,304,080 Payable for investments purchased -- -- 3,721,940 -- Accrued expenses: Management fees 457,547 426,190 670,860 254,042 Other 228,600 180,222 306,404 121,016 Preferred share dividends payable 56,763 -- 94,078 26,767 Common share dividends payable 2,628,685 2,507,673 4,119,541 1,557,054 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 3,371,595 4,998,344 11,155,258 3,262,959 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets $862,814,572 $803,597,016 $1,282,636,393 $472,495,754 ==================================================================================================================================== 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 35,764,425 33,887,474 54,204,488 20,091,018 ==================================================================================================================================== Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 15.71 $ 15.48 $ 15.32 $ 15.31 ==================================================================================================================================== See accompanying notes to financial statements.
Statement of Operations Year Ended October 31, 2001
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $48,258,111 $46,621,865 $ 75,341,559 $28,538,198 - ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 5,315,600 4,948,118 7,826,819 2,951,142 Preferred shares - auction fees 752,500 697,500 1,130,000 412,500 Preferred shares - dividend disbursing agent fees 50,000 50,000 60,000 30,000 Shareholders' servicing agent fees and expenses 113,169 93,185 130,783 57,917 Custodian's fees and expenses 237,032 222,928 275,368 112,374 Directors' fees and expenses 12,651 11,944 11,313 6,914 Professional fees 21,616 17,765 66,302 72,157 Shareholders' reports - printing and mailing expenses 85,372 86,843 106,784 56,147 Stock exchange listing fees 30,775 31,499 45,371 33,218 Investor relations expense 111,359 108,185 159,608 65,785 Other expenses 49,304 50,740 59,592 27,552 - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit 6,779,378 6,318,707 9,871,940 3,825,706 Custodian fee credit (38,567) (29,698) (68,043) (50,027) - ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 6,740,811 6,289,009 9,803,897 3,775,679 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 41,517,300 40,332,856 65,537,662 24,762,519 - ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN FROM INVESTMENTS Net realized gain from investment transactions 3,148,534 6,782,374 6,316,890 2,200,363 Change in net unrealized appreciation (depreciation) of investments 32,498,102 25,265,085 35,316,355 14,544,248 - ----------------------------------------------------------------------------------------------------------------------------------- Net gain from investments 35,646,636 32,047,459 41,633,245 16,744,611 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $77,163,936 $72,380,315 $107,170,907 $41,507,130 =================================================================================================================================== See accompanying notes to financial statements.
Statement of Changes in Net Assets INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) --------------------------------- --------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/01 10/31/00 10/31/01 10/31/00 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 41,517,300 $ 43,376,250 $ 40,332,856 $ 41,509,119 Net realized gain (loss) from investment transactions 3,148,534 (2,187,570) 6,782,374 429,356 Change in net unrealized appreciation (depreciation) of investments 32,498,102 25,862,636 25,265,085 15,449,974 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 77,163,936 67,051,316 72,380,315 57,388,449 - ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From undistributed net investment income: Common shareholders (30,391,113) (31,909,307) (29,529,048) (31,279,754) Preferred shareholders (9,512,019) (12,163,240) (8,728,935) (11,427,939) From and in excess of net realized gains from investment transactions: Common shareholders -- (129,711) -- (78,386) Preferred shareholders -- (37,355) (208,058) (21,716) - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (39,903,132) (44,239,613) (38,466,041) (42,807,795) - ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 233,587 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets 37,494,391 22,811,703 33,914,274 14,580,654 Net assets at the beginning of year 825,320,181 802,508,478 769,682,742 755,102,088 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of year $862,814,572 $825,320,181 $803,597,016 $769,682,742 =================================================================================================================================== Balance of undistributed net investment income at the end of year $ 1,692,284 $ 78,116 $ 2,296,205 $ 218,441 =================================================================================================================================== See accompanying notes to financial statements.
Statement of Changes in Net Assets (continued)
QUALITY INCOME (NQU) PREMIER INCOME (NPF) ----------------------------------- -------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/01 10/31/00 10/31/01 10/31/00 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 65,537,662 $ 69,253,953 $ 24,762,519 $ 25,182,883 Net realized gain (loss) from investment transactions 6,316,890 1,262,287 2,200,363 (1,476,362) Change in net unrealized appreciation (depreciation) of investments 35,316,355 10,564,892 14,544,248 5,658,575 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 107,170,907 81,081,132 41,507,130 29,365,096 - ----------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders From undistributed net investment income: Common shareholders (49,551,179) (51,692,078) (18,468,147) (18,975,126) Preferred shareholders (14,251,122) (18,405,376) (5,227,454) (6,795,906) From and in excess of net realized gains from investment transactions: Common shareholders (412,608) -- -- -- Preferred shareholders (148,749) -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (64,363,658) (70,097,454) (23,695,601) (25,771,032) - ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 580,883 -- - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets 42,807,249 10,983,678 18,392,412 3,594,064 Net assets at the beginning of year 1,239,829,144 1,228,845,466 454,103,342 450,509,278 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of year $1,282,636,393 $1,239,829,144 $472,495,754 $454,103,342 =================================================================================================================================== Balance of undistributed net investment income at the end of year $ 1,873,911 $ 135,043 $ 1,130,168 $ 63,250 =================================================================================================================================== See accompanying notes to financial statements.
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 seeks to provide current income exempt from regular federal income tax by investing 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. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Directors of the Funds may establish a fair value for the security. 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, 2001, Quality Income (NQU) had outstanding when-issued purchase commitments of $2,974,211. There were no such outstanding purchase commitments in any of the other Funds. 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. 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 net investment income to its shareholders. Therefore, no federal income tax provision is required. 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 monthly tax-exempt income dividends paid during the fiscal year ended October 31, 2001, have been designated Exempt Interest Dividends. 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. 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 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, 2001. 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. 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. Audit Guide In November 2000, the American Institute of Certified Public Accountants (AICPA) issued a revised version of the AICPA Audit and Accounting Guide for Investment Companies (the "Guide"). The Guide is effective for annual financial statements issued for fiscal years beginning after December 15, 2000. It is not anticipated that the adoption of the Guide will have a significant effect on the financial statements. 2. FUND SHARES During the fiscal year ended October 31, 2001, Investment Quality (NQM) and Premier Income (NPF) had 15,466 and 39,069, respectively, shares issued to shareholders due to reinvestment of distributions. There were no share transactions for any of the other Funds during the fiscal year ended October 31, 2001. There were no share transactions during the fiscal year ended October 31, 2000, for any of the Funds. 3. DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 3, 2001, to shareholders of record on November 15, 2001, as follows: Investment Select Quality Premier Quality Quality Income Income (NQM) (NQS) (NQU) (NPF) - -------------------------------------------------------------------------------- Dividend per share $.0735 $.0740 $.0760 $.0775 ================================================================================ Notes to Financial Statements (continued) 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, 2001, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - --------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $141,022,706 $230,677,007 $401,658,945 $62,594,591 Short-term municipal securities 13,000,000 32,600,000 54,300,000 12,000,000 Sales and maturities: Long-term municipal securities 155,164,205 217,811,500 372,433,308 71,454,923 Short-term municipal securities 11,000,000 39,600,000 54,300,000 12,000,000 =======================================================================================
At October 31, 2001, the cost of investments owned for federal income tax purposes were as follows: INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - -------------------------------------------------------------------------------- $787,143,274 $750,146,866 $1,198,933,570 $439,805,931 ================================================================================ 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments for federal income tax purposes at October 31, 2001, were as follows: INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ------------------------------------------------------------------------------- Gross unrealized: appreciation $65,084,616 $47,259,926 $72,918,631 $30,601,481 depreciation (4,710,047) (3,660,903) (5,964,334) (4,130,671) - ------------------------------------------------------------------------------- Net unrealized appreciation $60,374,569 $43,599,023 $66,954,297 $26,470,810 =============================================================================== 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 For the next $3 billion .5875 of 1 For net assets over $5 billion .5750 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, 2001, 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 357,644 338,875 542,045 200,910 Paid-in surplus 498,425,357 471,802,724 754,951,768 279,070,598 Balance of undistributed net investment income 1,692,284 2,296,205 1,873,911 1,130,168 Accumulated net realized gain from investment transactions 964,718 6,560,189 5,900,072 623,268 Net unrealized appreciation of investments 60,374,569 43,599,023 67,368,597 26,470,810 - -------------------------------------------------------------------------------------------------------------- Net assets $862,814,572 $803,597,016 $1,282,636,393 $472,495,754 ============================================================================================================== 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, 2001, 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 3% 4% 4% 3% Education and Civic Organizations 5 1 1 7 Healthcare 11 12 10 6 Housing/Multifamily 7 7 5 14 Housing/Single Family 7 11 6 5 Long-Term Care 3 1 1 2 Tax Obligation/General 15 11 10 12 Tax Obligation/Limited 9 12 7 15 Transportation 14 14 15 1 U.S. Guaranteed 10 9 17 26 Utilities 7 10 5 Water and Sewer 9 7 12 3 Other - 1 2 1 - -------------------------------------------------------------------------------- 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 (58% for Investment Quality (NQM), 64% for Select Quality (NQS), 57% 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. 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: 2001 $14.67 $1.16 $ 1.00 $2.16 $ (.85) $(.27) $-- $-- $(1.12) 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) SELECT QUALITY (NQS) - ---------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001 14.48 1.19 .95 2.14 (.87) (.26) -- (.01) (1.14) 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) QUALITY INCOME (NQU) - ---------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001 14.53 1.21 .76 1.97 (.91) (.26) (.01) -- (1.18) 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) - ---------------------------------------------------------------------------------------------------------------------------- PREMIER INCOME (NPF) Year Ended 10/31: 2001 14.42 1.23 .84 2.07 (.92) (.26) -- -- (1.18) 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) ============================================================================================================================ Total Returns ---------------- 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: 2001 $ -- $15.71 $14.8400 22.33% 13.16% 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 SELECT QUALITY (NQS) - --------------------------------------------------------------------------------- Year Ended 10/31: 2001 -- 15.48 14.7500 20.09 13.23 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 QUALITY INCOME (NQU) - --------------------------------------------------------------------------------- Year Ended 10/31: 2001 -- 15.32 14.6200 18.72 12.09 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 PREMIER INCOME (NPF) - --------------------------------------------------------------------------------- Year Ended 10/31: 2001 -- 15.31 14.8400 15.93 12.89 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 ================================================================================= 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: 2001 $862,815 1.24% 7.56% .80% 4.88% 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 SELECT QUALITY (NQS) - ------------------------------------------------------------------------------------------- Year Ended 10/31: 2001 803,597 1.24 7.89 .80 5.10 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 QUALITY INCOME (NQU) - ------------------------------------------------------------------------------------------- Year Ended 10/31: 2001 1,282,636 1.21 8.05 .78 5.17 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 PREMIER INCOME (NPF) - ------------------------------------------------------------------------------------------- Year Ended 10/31: 2001 472,496 1.28 8.25 .82 5.32 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 =========================================================================================== 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: 2001 1.23% 7.56% .79% 4.89% 17% $301,000 $25,000 $71,662 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 SELECT QUALITY (NQS) - ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001 1.23 7.89 .80 5.11 28 279,000 25,000 72,007 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 QUALITY INCOME (NQU) - ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001 1.21 8.06 .77 5.18 30 452,000 25,000 70,942 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 PREMIER INCOME (NPF) - ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001 1.26 8.26 .81 5.33 14 165,000 25,000 71,590 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 ================================================================================================================================== * 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. See accompanying notes to financial statements.
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 reinvestment 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 advisor or call us at (800) 257-8787. 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 JPMorgan Chase 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 twelve-month period ended October 31, 2001. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 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 Chicago, IL 60606 o www.nuveen.com FAN-3-10-01 -----END PRIVACY-ENHANCED MESSAGE-----