-----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, RzjaHa79noZqrEWVJZ092pgBN/oLZZz2a4r/VxLZuH408gJDR4iqHsngmfCPQohU 4WlVGsHYZCSSUa3zO4kDEA== 0000891804-02-001310.txt : 20020703 0000891804-02-001310.hdr.sgml : 20020703 20020703104155 ACCESSION NUMBER: 0000891804-02-001310 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020430 FILED AS OF DATE: 20020703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN PREMIER MUNICIPAL INCOME FUND INC CENTRAL INDEX KEY: 0000880845 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06456 FILM NUMBER: 02695701 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 N-30D 1 nv26769.txt FSA-3-4-02 SEMIANNUAL REPORT April 30, 2002 Nuveen Municipal Closed-End Exchange-Traded Funds INVESTMENT QUALITY NQM SELECT QUALITY NQS QUALITY INCOME NQU PREMIER INCOME NPF logo: The Nuveen Investor See Page 9 Dependable, tax-free income because it's not what you earn, it's what you keep.(R) LOGO: NUVEEN Investments Photo: Boy playing violin and woman playing piano. Photo: Woman and girl playing checkers. RECEIVE YOUR NUVEEN FUND UPDATES FASTER THAN EVER! By registering for online access, you can view and save on your computer the Fund information you currently receive in the mail. This information then can be retrieved any time, and you can select only the specific pages you want to view or print. Once you sign up, 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 on the Internet address provided. You'll be saving time, as well as saving printing and distribution expenses for your Fund. Registering for electronic access is easy and only takes a few minutes. (see instructions at right) Your e-mail address 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. Logo: NUVEEN Investments SIGN UP TODAY -- HERE'S ALL YOU NEED TO DO... IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 G0 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 AND STATEMENTS 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: "I URGE YOU TO CONSIDER RECEIVING FUTURE FUND REPORTS AND OTHER INFORMATION ELECTRONICALLY...SEE THE INSIDE FRONT COVER OF THIS REPORT FOR DETAILED INSTRUCTIONS." Dear SHAREHOLDER I am pleased to report that during the period covered by this report, your Fund continued to meet its primary objective of providing attractive tax-free monthly income, while at the same time offering opportunities to reduce overall portfolio volatility. 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. I also urge you to consider receiving future Fund reports and other information electronically via the Internet and e-mail rather than in hard copy. Not only will you be able to receive the information faster, but this also may help lower Fund expenses. Sign up is quick and easy - see the inside front cover of this report for detailed instructions. 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 uncertain markets 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. Our mission continues to be to assist you and your financial advisor by offering the investment services and products that can help you meet your financial objectives. We thank you for continuing to choose Nuveen Investments as a partner as you work toward that goal. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board June 15, 2002 Nuveen 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 1990 and NPF since December 2001. Rick has managed NQS since 1998, while Bill has managed NQU since 1991. 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 April 30, 2002, were the general slowdown in economic growth and the Federal Reserve's aggressive easing of short-term interest rates. In addition, the U.S. Treasury's announcement that it would end 30-year Treasury bond issuance and the events of September 11, 2001, also have impacted the economy and the markets. In the municipal markets, the generally sluggish economic environment of the past twelve months helped many securities perform well. In addition, the trend toward increased issuance remained strong. Looking at the first four months of 2002, new issue supply reached $87 billion, up about 10% over January-April 2001. On the demand side, municipal bonds continued to be highly sought after by individual investors looking for diversification, tax-free income and an alternative to a volatile stock market. Institutional investors, especially traditional purchasers such as property/casualty insurance companies and pension plans, also have been active buyers in the new issue market. HOW DID THE NUVEEN FUNDS PERFORM OVER THE PAST TWELVE MONTHS? For the year ended April 30, 2002, the Nuveen Funds covered in this report produced total annual 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. TOTAL RETURN LEHMAN LIPPER MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 - ------------------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 4/30/02 EQUIVALENT3 4/30/02 4/30/02 4/30/02 - ------------------------------------------------------------------------- NQM 6.46% 9.23% 7.54% 7.00% 8.22% - ------------------------------------------------------------------------- NQS 6.52% 9.31% 7.16% 7.00% 8.22% - ------------------------------------------------------------------------- NQU 6.59% 9.41% 7.66% 7.00% 8.22% - ------------------------------------------------------------------------- NPF 6.74% 9.63% 8.07% 7.00% 8.22% - ------------------------------------------------------------------------- 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 policy to reduce short-term interest rates, combined with generally favorable market conditions, created a positive total return environment for municipal bonds. The Funds' participation in the market's gains is reflected, in part, in the total returns on NAV listed in the previous table. In addition, in a market characterized by rising bond values, funds with longer durations4 would typically be expected to perform well. As of April 30, 2002, the durations of these Funds ranged from 10.90 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 50 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%. 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. to 13.60, compared with 7.74 for the unleveraged Lehman Brothers Municipal Bond Index. 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, low 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 April 30, 2002, steady or falling short-term interest rates enabled us to implement dividend increases in all of these Funds. In coming months, the low rates now being offered by municipal securities with shorter maturities may continue to benefit these Funds by further reducing the amount paid to MuniPreferred(R) 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, the share prices of these Funds remained substantially unchanged (see the charts on the individual Performance Overview pages). Their prices are at modest discounts to their net asset values as of April 30, 2002. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NUVEEN FUNDS DURING THE YEAR ENDED APRIL 30, 2002? Two areas of emphasis during this reporting period were enhancing the dividend-paying capabilities of the Funds and improving their call protection. Given the current level of rates, our general approach was to assess potentially callable bonds on a case-by-case basis, sometimes holding these higher-yielding bonds for as long as practical and sometimes looking for more immediate replacement opportunities. When investing call proceeds, we often focused on essential services (such as water and sewer systems), some selected housing and utility issues, and certain general obligations bonds. When we were able to obtain attractive prices, we selectively sold some health care and multi-family housing bonds from the portfolios. We also were trying to shorten each of the Funds' duration modestly by focusing on the 20-year section of the yield curve. These bonds are less sensitive to interest rate changes than 30-year bonds, but can still provide yields similar to those longer maturity securities. While each of the Funds has some current call exposure, we believe that in each case the call positions are very manageable, and we foresee no problems reinvesting call proceeds. In view of investor concerns in the current market environment, we made an effort to maintain strong credit quality in each Fund. Each of these Funds had allocations of AAA and AA rated bonds ranging from 78% in NQS to 84% in NQM as of April 30, 2002. Each of these Funds also had a portion of its assets invested in BBB and non-rated bonds, which helped their dividend-paying capabilities. 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. We believe the U.S. economy is headed for recovery, but one that may take longer and see a slower pace of growth than some are now predicting. We believe inflation and interest rates should remain relatively low over the near term, and we think new municipal issuance should continue to be strong. We anticipate the demand for tax-exempt municipal bonds will remain firm as investors look for ways to rebalance their portfolios and reduce risk. We plan to remain focused on strategies that add value for our shareholders, provide support for the Funds' dividends, and fully utilize Nuveen's experience and research expertise. As noted, shareholders may see these Funds' durations shorten. Overall, we believe these Funds can continue to play an important role in investors' long-range financial programs, providing balance and diversification, dependable tax-free income, and a measure of security in uncertain times. We believe the Funds currently are well diversified and well positioned for the market environment ahead, and we will continue to closely monitor and respond to events as appropriate. Nuveen Investment Quality Municipal Fund, Inc. Performance OVERVIEW As of April 30, 2002 NQM [PIE CHART] AAA/U.S. GUARANTEED 75% AA 9% A 11% BBB 1% NR 3% OTHER 1% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.48 - -------------------------------------------------- Common Share Net Asset Value $15.23 - -------------------------------------------------- Market Yield 6.46% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.23% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $544,382 - -------------------------------------------------- Average Effective Maturity (Years) 20.55 - -------------------------------------------------- Leverage-Adjusted Duration 10.90 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 6/90) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 9.50% 7.54% - -------------------------------------------------- 5-Year 6.02% 6.30% - -------------------------------------------------- 10-Year 5.70% 6.87% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- U.S. Guaranteed 14% - -------------------------------------------------- Transportation 13% - -------------------------------------------------- Tax Obligation/General 12% - -------------------------------------------------- Healthcare 11% - -------------------------------------------------- Water and Sewer 9% - -------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/01 0.0695 6/01 0.0715 7/01 0.0715 8/01 0.0715 9/01 0.0735 10/01 0.0735 11/01 0.0735 12/01 0.0755 1/02 0.0755 2/02 0.0755 3/02 0.078 4/02 0.078 [LINE CHART] SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 5/01/01 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 14.78 14.9 15.03 14.72 14.53 14.63 14.35 14.2 14.03 14.27 14.25 14.6 14.86 14.85 14.89 14.93 14.61 14.67 14.84 14.65 14.32 14.25 14.41 14.29 14.32 14.49 4/30/02 14.52 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%. 2 The Fund also paid shareholders a capital gains and net ordinary income distribution in December 2001 of $0.0207 per share. Nuveen Select Quality Municipal Fund, Inc. Performance OVERVIEW As of April 30, 2002 NQS [PIE CHART] AAA/U.S. GUARANTEED 70% AA 8% A 13% BBB 5% NR 2% OTHER 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.27 - -------------------------------------------------- Common Share Net Asset Value $14.79 - -------------------------------------------------- Market Yield 6.52% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.31% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $501,119 - -------------------------------------------------- Average Effective Maturity (Years) 21.84 - -------------------------------------------------- Leverage-Adjusted Duration 11.86 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 3/91) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 9.04% 7.16% - -------------------------------------------------- 5-Year 5.62% 6.40% - -------------------------------------------------- 10-Year 6.69% 7.05% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Healthcare 15% - -------------------------------------------------- Transportation 12% - -------------------------------------------------- Utilities 12% - -------------------------------------------------- Tax Obligation/Limited 11% - -------------------------------------------------- Housing/Single Family 11% - -------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/01 0.072 6/01 0.072 7/01 0.072 8/01 0.072 9/01 0.074 10/01 0.074 11/01 0.074 12/01 0.076 1/02 0.076 2/02 0.076 3/02 0.0775 4/02 0.0775 [LINE CHART] SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 5/01/01 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 14.61 14.77 14.94 14.44 14.28 14.52 14.1 13.85 13.72 14.06 14.07 14.24 14.66 14.49 14.43 14.48 14.5 14.54 14.63 14.15 14.02 13.71 13.89 13.98 14.06 13.93 4/30/02 14.14 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%. 2 The Fund also paid shareholders a capital gains and net ordinary income distribution in December 2001 of $0.1582 per share. Nuveen Quality Income Municipal Fund, Inc. Performance OVERVIEW As of April 30, 2002 NQU [PIE CHART] AAA/U.S. GUARANTEED 68% AA 12% A 9% BBB 5% OTHER 6% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.03 - -------------------------------------------------- Common Share Net Asset Value $14.78 - -------------------------------------------------- Market Yield 6.59% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.41% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $800,887 - -------------------------------------------------- Average Effective Maturity (Years) 19.65 - -------------------------------------------------- Leverage-Adjusted Duration 12.98 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 6/91) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 3.66% 7.66% - -------------------------------------------------- 5-Year 5.11% 6.10% - -------------------------------------------------- 10-Year 6.57% 7.23% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 15% - -------------------------------------------------- U.S. Guaranteed 15% - -------------------------------------------------- Transportation 14% - -------------------------------------------------- Utilities 11% - -------------------------------------------------- Tax Obligation/Limited 9% - -------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/01 0.076 6/01 0.076 7/01 0.076 8/01 0.076 9/01 0.076 10/01 0.076 11/01 0.076 12/01 0.076 1/02 0.076 2/02 0.076 3/02 0.077 4/02 0.077 [LINE CHART] SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 5/01/01 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 14.42 14.71 14.92 14.36 14.26 14.61 13.95 13.68 13.76 13.89 14.11 14.33 14.5 14.25 14.48 14.53 14.28 14.56 14.59 13.95 13.73 13.63 13.81 13.88 13.99 13.82 4/30/02 13.89 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%. 2 The Fund also paid shareholders a capital gains distribution in December 2001 of $0.0907 per share. Nuveen Premier Municipal Income Fund, Inc. Performance OVERVIEW As of April 30, 2002 NPF [PIE CHART] AAA/U.S. GUARANTEED 72% AA 9% A 12% BBB 2% NR 5% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.25 - -------------------------------------------------- Common Share Net Asset Value $14.74 - -------------------------------------------------- Market Yield 6.74% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.63% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $296,087 - -------------------------------------------------- Average Effective Maturity (Years) 16.90 - -------------------------------------------------- Leverage-Adjusted Duration 13.44 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 12/91) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 3.34% 8.07% - -------------------------------------------------- 5-Year 4.86% 6.03% - -------------------------------------------------- 10-Year 7.08% 7.41% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- U.S. Guaranteed 20% - -------------------------------------------------- Tax Obligation/Limited 15% - -------------------------------------------------- Housing/Multifamily 14% - -------------------------------------------------- Tax Obligation/General 12% - -------------------------------------------------- Education and Civic Organizations 8% - -------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/01 0.0765 6/01 0.0765 7/01 0.0765 8/01 0.0765 9/01 0.0775 10/01 0.0775 11/01 0.0775 12/01 0.0785 1/02 0.0785 2/02 0.0785 3/02 0.08 4/02 0.08 [LINE CHART] SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 5/01/01 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 14.73 15.05 15.31 14.96 14.83 14.9 14.52 14.08 13.88 14.24 14.32 14.62 14.68 14.65 14.77 14.93 14.67 14.88 14.87 14.55 14.17 13.9 14.12 14.24 14.15 14.2 4/30/02 14.1 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%. 2 The Fund also paid shareholders a capital gains distribution in December 2001 of $0.0243 per share. THE NUVEEN INVESTOR PHOTO OF: 2 boys walking with baseball mitts and bat. Volume one 2002 INSIDE 9 Bond Surveillance - A High Priority at Nuveen 10 Is it Time to Rethink Your Bond Strategy? 11 Many Investors Continue to Find Solutions with Professional Advice 12 Fund Reports Available Online 12 ETFConnect: The Source for All Exchange-Traded Funds (C)2002 Nuveen Investments. All rights reserved. BOND SURVEILLANCE - A HIGH PRIORITY AT NUVEEN The Enron scandal has raised numerous questions about the real value of American securities. Investors want to know what safeguards are in place to inspire their trust and ensure their holdings are dependable. The Nuveen Investor recently spoke with David Blair, Assistant Vice President and Senior Analyst at Nuveen, about the research and surveillance processes used for Nuveen funds. HOW DO NUVEEN'S RESEARCH ANALYSTS EVALUATE BONDS PRIOR TO PURCHASE? We evaluate factors impacting market sectors, issuers and specific bonds and assign credit ratings to bonds we consider for purchase. We seek to purchase bonds with stable and improving credit characteristics, which have attractive prices and yields relative to other bonds in their sectors. HOW DO YOU CONDUCT YOUR RESEARCH? We conduct detailed analyses that often involve site visits and discussions with managers of the projects being financed. Since Nuveen is a major investor with large buying power, issuers and project managers are willing to listen to us and respond to our concerns. IS THE RESEARCH AND ANALYSIS PROCESS ANY DIFFERENT WHEN CONSIDERING HIGH-YIELD BONDS? Up to 20 percent of some funds can be invested in below investment grade bonds to help the fund attain a higher yield. This underscores the need for research. If one of our 16 analysts believes a high-yield bond should be purchased, a second analyst reviews the issue as well. HOW DO YOU MONITOR THE VARIOUS BONDS ONCE THEY'VE BEEN PURCHASED? We have a proprietary database with information and analysis on the bonds Nuveen holds in its funds. Among other things, we are able to evaluate risk exposure to sectors, issuers and specific bonds on an on-going basis. HOW DOES THE RESEARCH DEPARTMENT COMMUNICATE THE INFORMATION GATHERED? We conduct biweekly meetings within the research department and weekly meetings with portfolio managers. We also write-up our findings and distribute them with "buy," "hold" or "sell" recommendations to portfolio managers. (continued on page 11) Logo: NUVEEN Investments IS IT TIME TO RETHINK YOUR BOND STRATEGY? Significant stock market losses in recent history have sent many investors toward bonds as a way to potentially cut their losses and balance equity- dominated portfolios. While many consider bonds a set-and-forget investment, there are several circumstances that might prompt you to reassess -- and perhaps revamp -- your bond holdings. Tax bracket changes The Economic Growth and Tax Relief Reconciliation Act of 2001 has dropped tax brackets a percentage point this year, but a higher salary, large bonus, sale of assets or retirement may push you into a higher tax bracket for 2002. If you are in a higher tax bracket and want to generate an income stream without raising your tax burden, tax-free municipal bonds may be a prudent option. Even if you are in a lower tax bracket, municipal bonds could make sense. The question is whether municipal or taxable bonds will deliver a better taxable yield. Retirement plans change Whether you are near retirement or are currently enjoying it, you may want to consider rebalancing your retirement accounts with less stock and more bonds, to potentially reduce risk and try to preserve the assets that you have accumulated. If you are just entering retirement you may want to make tax-free municipal bonds a part of your portfolio to emphasize income generation and protection from taxation. Risk tolerance changes The recent market volatility and market downturn may have caused many investors to reevaluate their tolerance for risk. On the other hand, your portfolio might have performed well over the last few years and you may not need to take on extra risk to meet your long-term goals. In either situation you could take a look at your bond portfolio and determine whether you need to make changes to correspond with your tolerance for risk. Portfolio changes If you make significant changes to one or more of your investments, you'll want to look at your portfolio as a whole, particularly with regard to overall asset allocation. You may need to do some rebalancing to stay on track with your investment strategy. Your financial advisor can help. Regardless of how your circumstances change, he or she can provide up-to-date information on the bond market and various funds to help you decide how to maximize your returns consistent with your short- and long-term financial goals. No investment is risk free and some investments carry more risk than others. It is important to know what the risks are, to evaluate them against any potential rewards, and to determine your tolerance for risk when selecting an investment. Photo of: bridge to lighthouse Photo of: 2 toddlers playing The Nuveen Investor Vol 02.1 logo: Nuveen Investments MANY INVESTORS CONTINUE TO FIND SOLUTIONS WITH PROFESSIONAL ADVICE For many investors, current financial markets are confusing and frustrating. According to research conducted for the Forum for Investor Advice*, that's the number one reason many turn to a financial advisor. They want someone to suggest ideas and provide consultation, dialogue and professional advice. Investors say their advisors are helpful in other key ways, including... O Saving time. After consultation, investors note that the second most important reason for using an advisor is to have someone else monitor their portfolio, reducing the amount of time they spend on investing. O Help in sorting through information. Investors in the 21st century have more products from which to choose than in the past. For example, there are approximately 8,000 mutual funds today, up from 3,000 in 1990. O Assistance in setting financial goals. According to investors who use a financial advisor, they are more likely to have a plan for a specific financial goal than do-it-yourself investors. O Staying focused. Advisor-assisted investors are more likely than do-it-yourself investors to have developed a comprehensive investment program. O Peace of mind. Investors say their comfort level in all types of markets is higher when using an advisor for a "second opinion" on an investment decision. *The survey of 324 investors was conducted in December of 2000 by Market Facts and analyzed by New York based Neuwirth Research. Of the 324, 166 said they had an ongoing relationship with a financial advisor, while 157 described themselves as do-it-yourselfers. - -------------------------------------------------------------------------------- (continued from page 9) HOW ARE PROBLEM BONDS IDENTIFIED AND HANDLED? We conduct surveillance on our bonds on a regular basis to ensure, among other things, that deteriorating bonds are identified early. We then discuss any emerging problems and potential courses of action with the portfolio manager. HOW MANY ISSUES DOES THE RESEARCH DEPARTMENT FOLLOW? We follow 12 sectors and 1,500 uninsured bonds, worth about $18 billion of Nuveen's $45 billion in total municipal assets. The remaining $27 billion in municipal assets are insured or escrowed (backed by Treasury bonds). For the insured bonds, we monitor closely on a regular basis the insurers guaranteeing the bonds. WILL RESEARCH AND SURVEILLANCE CHANGE IN LIGHT OF PROBLEMS WITH ENRON SECURITIES? Overall, our investment process and surveillance have worked well and been effective. However, we meet as a group on a regular basis and are constantly evaluating ways to improve the process to respond to issues and the market environment. Photo of: Woman and girl looking at photo album. The Nuveen Investor Vol 02.1 logo: Nuveen Investments LOOK AHEAD... FUND REPORTS AVAILABLE ONLINE Nuveen Fund information is now available online. Once you register, you'll receive an e-mail notice with a link to your Fund's reports and other information just as soon as it is ready. Registering takes only a few minutes. If you receive statements from a brokerage firm or financial advisor, go to WWW.INVESTORDELIVERY.COM. Enter your personal 13-character enrollment number imprinted on the address sheet of this report near your name. From the options on the follow-up page, select the New Enrollment-Create screen. Once there, enter your e-mail address and a personal, four-digit PIN. Hit the Submit button. Confirm the information you entered is correct, then hit Submit again. [picture of InvestorDelivery.com website] If you receive statements directly from Nuveen, go to WWW.NUVEEN.COM. Select the Access Your Account tab, then select E-Report Enrollment. Finally, click on the Enrollment Page. Once there, you'll need to provide your social security number and e-mail address. Click on Enroll. [picture of nuveen.com website] After registering, you should receive a confirming e-mail within 24 hours. If not, repeat these steps to ensure all information is accurate. You can use this same process if you need to change your registration information or want to cancel Internet viewing. The e-mail address you provide is strictly confidential and will only be used to notify you of shareholder information. - -------------------------------------------------------------------------------- The information in this newsletter should not be construed as specific tax or investment advice. Contact your advisor for information about your particular situation. - -------------------------------------------------------------------------------- ETFCONNECT: THE SOURCE FOR ALL EXCHANGE-TRADED FUNDS Last fall, Nuveen launched ETFConnect, the industry's first website featuring all-encompassing information on exchanged-traded funds. Whatever you're looking for in the world of Index ETFs or Closed-End Exchange-Traded Funds - prices, NAVs, dividend information, performance histories, new developments - this is the place. Highlights include Quick Facts sheets for more than 500 funds, a multi-fund search capability, website links, a list of fund sponsors, tools for portfolio tracking, and a continually updated education center. Check out WWW.ETFCONNECT.COM. [picture of etfconnect.com website] The Nuveen Investor Vol 02.1 logo: Nuveen Investments Nuveen Investment Quality Municipal Fund, Inc. (NQM) Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 4.3% $ 22,225 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA $23,152,449 Warrants, Series 1999-A, 5.750%, 2/01/38 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.9% 10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 Aa3 10,338,600 Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.7% 4,165 Arkansas Development Finance Authority, Home Mortgage Revenue 7/08 at 101.50 AAA 4,245,093 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 100.00 Aaa 1,087,336 3,600 5.650%, 12/01/31 12/10 at 100.00 Aaa 3,711,384 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 12.6% 9,025 Alameda County Public Facilities Corporation, California, 9/06 at 102.00 AAA 10,371,350 Certificates of Participation (1991 Financing Project), 6.000%, 9/01/21 (Pre-refunded to 9/01/06) 5,925 State Public Works Board of the State of California, The Regents 6/03 at 102.00 Aa2 5,989,049 of 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 13,334,742 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 1,153,178 1999 Refunding General Obligation Bonds, 5.950%, 9/01/21 15,770 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 20,698,440 County, California, 1995 Revenue Refunding Bonds (Project No. 1), 7.400%, 8/01/25 13,145 City of Perris, California, Single Family Mortgage Revenue Bonds No Opt. Call AAA 17,284,755 (GNMA Mortgage-Backed Securities), 1988 Series B, 8.200%, 9/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.1% 725 Colorado Housing and Finance Authority, Single Family Program 5/06 at 105.00 Aa2 759,075 Senior Bonds, 1996 Series B, 7.450%, 11/01/27 12,450 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100.00 AAA 13,257,632 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 102.00 B+ 4,028,078 Revenue Bonds (United Air Lines Project), Series 1992A, 6.875%, 10/01/32 (Alternative Minimum Tax) 7,865 Colorado Springs School District No. 11, El Paso County, Colorado, 12/07 at 125.00 AA- 9,947,967 General Obligation Improvement Bonds, Series 1996, 7.125%, 12/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 4.0% 6,770 State of Connecticut, General Obligation Bonds, 2000 Series B, 6/10 at 100.00 AA*** 7,675,420 5.875%, 6/15/16 (Pre-refunded to 6/15/10) 8,185 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/07 at 102.00 AAA 8,349,519 Program Bonds, 1997 Series C, Subseries C-2, 5.850%, 11/15/28 (Alternative Minimum Tax) 5,425 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102.00 AAA 5,626,267 Program Bonds, 1996 Series D, Subseries D-2, 6.200%, 11/15/27 (Alternative Minimum Tax) Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 6.9% $ 3,000 Washington, District of Columbia, General Obligation Bonds, No Opt. Call AAA $ 3,380,160 Series 1998B, 6.000%, 6/01/16 15,950 District of Columbia, University Revenue Bonds, Georgetown 4/11 at 31.03 AAA 2,883,282 University Issue, Series 2001A, 0.000%, 4/01/31 6,000 District of Columbia Tobacco Settlement Financing Corporation, 5/11 at 101.00 A1 6,151,320 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 160.00 AAA 24,947,130 Revenue Bonds, Series 1998, 5.500%, 10/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 5.3% 17,500 City of Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 18,045,475 Series 2000A, 5.600%, 1/01/30 2,000 City of Dalton Development Authority, Georgia, Revenue Certificates No Opt. Call AAA 2,100,500 (Hamilton Healthcare System), Series 1996, 5.500%, 8/15/26 5,980 Fulton County Development Authority, Georgia, Revenue Bonds 9/11 at 102.00 AAA 6,222,788 (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 2,620,958 Bonds, Fourth Crossover Series, 6.500%, 1/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.9% 4,810 City of Boise, Idaho, Revenue Refunding Bonds, Series 2001A, 12/11 at 100.00 Aaa 4,881,765 5.375%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 11.0% 4,705 Village of Bourbonnais, Illinois, Industrial Project Revenue Bonds 3/10 at 101.00 AA 5,055,428 (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 N/R 4,780,620 Special Facility Revenue Bonds (United Air Lines Inc. Project), Series 2001A, 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 9,126,825 Certificates of Participation, 8.750%, 1/01/07 2,110 Illinois Development Finance Authority, Local Government Program 1/11 at 100.00 Aaa 2,296,271 Revenue Bonds (Elmhurst Community Unit School District Number 205 Project), Series 2000, 6.000%, 1/01/19 11,825 Elgin School District No. 46, Kane, Cook and DuPage Counties, No Opt. Call Aaa 14,948,810 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 6,688,476 School Building Bonds, Series 1994, 5.850%, 2/01/13 3,585 City of Pekin, Illinois, Multifamily Housing Refunding Revenue Bonds 5/03 at 103.00 AAA 3,699,003 (FHA-Insured Mortgage Loan - Section 8 Assisted Project), Series 1992A, 6.875%, 5/01/22 635 City of Peoria, Peoria County, City of Pekin, Tazewell and Peoria 8/02 at 101.00 AA 645,090 Counties and City of Waukegan, Lake County, Illinois, Jointly, GNMA Collateralized Mortgage Revenue Bonds, Series 1990, 7.875%, 8/01/22 (Alternative Minimum Tax) 5,390 Cook, DuPage, Kane, Lake, McHenry and Will Counties Regional No Opt. Call AAA 6,711,035 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 1,070,777 Transportation Authority, Illinois, General Obligation Bonds, Series 1992B, 9.000%, 6/01/07 1,180 Channahon School District Number 17, Will County, Illinois, No Opt. Call Aaa 1,582,085 General 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 1,564,665 1,300 8.700%, 12/01/14 No Opt. Call AAA 1,791,400 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.5% 5,530 Allen County Jail Building Corporation, Indiana, First Mortgage 4/11 at 101.00 Aa3 5,862,077 Bonds, Series 2000, 5.750%, 4/01/20 1,880 City of Indianapolis, Indiana, Multifamily Housing Mortgage 7/10 at 102.00 Aaa 1,938,468 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 101.00 AAA 5,519,179 Corporation, Indiana, First Mortgage Bonds, Series 2000 (Non-Bank Qualified), 6.125%, 1/15/21 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA (continued) $ 2,495 City of Shelbyville, Indiana, Multifamily Housing Mortgage Revenue 7/10 at 102.00 Aaa $ 2,574,166 Bonds (Blueridge Terrace Project - GNMA Collateralized), Series 2000, 6.050%, 1/20/36 2,765 Wayne County Jail Holding Corporation, Indiana, First Mortgage 1/13 at 101.00 AAA 3,061,906 Bonds, Series 2001, 5.750%, 7/15/14 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.9% 5,290 Iowa Finance Authority, Abbey Healthcare Mortgage Revenue 11/10 at 103.50 Aaa 5,644,536 Bonds (GNMA Guaranteed), Series 2000A, 6.200%, 5/20/42 4,695 Iowa Finance Authority, Abbey Healthcare Mortgage Revenue 11/10 at 103.50 Aaa 4,735,565 Bonds (GNMA Collateralized Mortgage Loan - West Des Moines GEAC Project), Series 2001A, 6.000%, 5/20/43 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 2.0% 4,070 Sedgwick, Kansas and Shawnee Counties, Kansas, Single Family No Opt. Call Aaa 4,569,959 Mortgage Revenue Bonds (Mortgaged-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 100.00 AAA 6,136,983 (Sunwest Hotel Corporation Project), Series 1988, 9.500%, 10/01/16 (Alternative Minimum Tax) (Pre-refunded to 8/15/16) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 2.8% 2,000 Jefferson County, Kentucky, Health Facilities Revenue Refunding 1/07 at 102.00 AAA 2,058,880 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 102.00 AAA 12,974,500 (Louisville Gas and Electric Company Project), 1995 Series A, 5.900%, 4/15/23 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 8.4% 4,095 East Baton Rouge Mortgage Finance Authority, Louisiana, Single 10/07 at 102.00 Aaa 4,175,999 Family Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1997D, 5.900%, 10/01/30 (Alternative Minimum Tax) 2,845 Jefferson Parish Home Mortgage Authority, Louisiana, Single 12/09 at 103.00 Aaa 3,208,591 Family Mortgage Revenue Refunding Bonds, Series 2000A-2, 7.500%, 12/01/30 (Alternative Minimum Tax) Jefferson Parish Home Mortgage Authority, Louisiana, Single Family Mortgage Revenue Bonds, Series 2000G-2: 3,190 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 3,478,631 1,995 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 1,952,068 1,835 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 1,929,319 Revenue Bonds (Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/04 11,545 Orleans Parish School Board, Louisiana, Public School Refunding No Opt. Call AAA 15,037,824 Bonds, Series 1987, 9.000%, 2/01/09 17,810 Louisiana Tobacco Settlement Financing Corporation, Asset-Backed 5/11 at 101.00 A1 16,063,195 Bonds, Series 2001B, 5.875%, 5/15/39 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 5.1% 12,000 Commonwealth of Massachusetts, General Obligation Bonds, 10/10 at 100.00 AAA 13,520,160 Consolidated Loan Series 2000C, 5.750%, 10/01/19 (Pre-refunded to 10/01/10) 5,000 Commonwealth of Massachusetts, General Obligation Bonds, 9/09 at 101.00 Aa2*** 5,694,750 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 102.00 N/R 5,415,528 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 100.00 BBB 1,640,935 Bonds (University of Massachusetts Memorial Healthcare), Series 2001C, 6.500%, 7/01/21 2,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 1,577,800 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.0% 4,250 City of Detroit School District, Wayne County, Michigan, School 5/12 at 100.00 AAA 4,417,365 Building and Site Improvement Bonds (Unlimited Tax - General Obligation), Series 2001A, 5.500%, 5/01/20 Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN (continued) $ 10,000 City of Detroit, Michigan, Water Supply System Revenue and No Opt. Call AAA $11,844,000 Revenue Refunding Bonds, Series 1993, 6.500%, 7/01/15 5,100 City of Detroit, Michigan, Water Supply System Revenue Senior 7/11 at 101.00 AAA 5,382,846 Lien Bonds, 2001 Series A, 5.750%, 7/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 6.3% 5,000 Dakota and Washington Counties and City of Bloomington Housing No Opt. Call AAA 6,902,700 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 12/10 at 103.50 Aaa 3,534,090 Bonds (GNMA Collateralized Mortgage Loan - Lincoln Parc Project), Series 2000A-1, 6.550%, 12/20/30 2,860 City of Hopkins, Minnesota, Elderly Housing Revenue Refunding 3/04 at 102.00 AAA 3,116,285 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 101.00 A 20,825,600 Healthcare System Revenue Bonds (Fairview Health Services), Series 2000A, 6.375%, 11/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 2.0% 7,945 Kansas City Industrial Development Authority, Missouri, Multifamily 1/07 at 102.00 AAA 8,045,663 Housing Revenue Bonds (Royal Woods Apartments Project), Series 1997, 5.600%, 1/01/30 (Alternative Minimum Tax) (Mandatory put 1/01/10) 1,330 Missouri Housing Development Commission, Single Family 3/07 at 105.00 AAA 1,442,491 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 101.00 AAA 1,248,875 Bonds (SSM Healthcare), Series 2001A, 5.250%, 6/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 3.2% 3,300 Nebraska Higher Education Loan Program, Inc., Student Loan 3/04 at 102.00 AAA 3,415,467 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 101.50 AAA 13,760,826 Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 2.7% 14,530 Director of the State of Nevada, Department of Business 1/10 at 102.00 AAA 14,876,976 and Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier Series 2000, 5.625%, 1/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 12.7% 7,770 Metropolitan Transportation Authority, New York, Commuter 7/07 at 101.00 AAA 7,931,461 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 101.00 Aaa 109,502 9,905 6.000%, 10/15/26 10/07 at 101.00 A 10,397,675 7,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 7,585,970 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 101.00 AA*** 3,953,499 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 101.00 AA+ 5,161,100 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 14,396,710 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 No Opt. Call AAA 19,822,310 Bonds (JFK International Air Terminal LLC Project), Series 6, 7.000%, 12/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 5.7% 2,795 Charlotte, North Carolina, Mortgage Revenue Refunding Bonds 11/07 at 100.00 AAA 2,977,318 (FHA-Insured Mortgage - Double Oaks Apartments), 7.350%, 5/15/26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA (continued) $ 19,775 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102.00 AAA $20,876,468 Revenue Bonds, Refunding Series 1996B, 5.875%, 1/01/21 7,420 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA 7,341,125 Bonds (Mission-Saint Joseph Health System), Series 2001, 5.250%, 10/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.6% 8,650 Cuyahoga County, Ohio, Hospital Improvement Revenue Bonds 2/09 at 101.00 A- 8,843,933 (The Metrohealth System Project), Series 1999, 6.150%, 2/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.6% 3,300 Trustees of Tulsa Municipal Airport Trust, Oklahoma, Revenue 12/08 at 100.00 BB 3,042,897 Bonds, Refunding Series 2000B, 6.000%, 6/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.9% 5,000 City of Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100.00 AAA 5,111,800 Series 2000, 5.250%, 9/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 5.5% 4,710 Newport Housing Development Corporation, Rhode Island, 6/03 at 100.00 AAA 5,065,935 1995 Multifamily Mortgage Revenue Refunding Bonds (Broadway- West Broadway Apartments - FHA-Insured Mortgage Section 8 Assisted Project), Series A, 6.800%, 8/01/24 24,000 Rhode Island Health and Educational Building Corporation, Hospital 5/07 at 102.00 AAA 24,690,960 Financing Revenue Bonds, Lifespan Obligated Group Issue, Series 1996, 5.750%, 5/15/23 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.8% 10,000 Tobacco Settlement Revenue Management Authority, South 5/11 at 101.00 A1 10,051,100 Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 15.2% 3,135 Austin Housing Finance Corporation, Texas, Multifamily Housing 12/10 at 105.00 Aaa 3,541,296 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 100.00 N/R 13,383,920 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 100.00 N/R 2,996,640 Housing Revenue Bonds (American Opportunity for Housing), Series 2001B, 8.250%, 5/01/33 1,655 Cameron County Housing Finance Corporation, Texas, 9/02 at 101.00 AAA 1,685,038 GNMA Collateralized Mortgage Revenue Refunding Bonds, 1990 Series B, 7.850%, 3/01/24 18,710 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 19,142,388 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 8/02 at 100.00 Baa2 832,664 2,000 7.850%, 8/01/13 8/02 at 100.00 Baa2 2,006,340 Harris County Hospital District, Texas, Refunding Revenue Bonds, Series 1990: 5,535 7.400%, 2/15/10 No Opt. Call AAA 6,376,818 7,640 7.400%, 2/15/10 No Opt. Call AAA 8,905,948 5,000 Harris County Hospital District, Texas, Refunding Revenue Bonds, 8/10 at 100.00 AAA 5,447,050 Series 2000, 6.000%, 2/15/14 2,256 Heart of Texas Housing Finance Corporation, Multifamily Housing 6/10 at 105.00 AAA 2,542,625 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 100.00 AAA 4,048,070 Revenue Bonds, Series 2000, 5.500%, 9/01/30 6,865 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105.00 Aaa 8,079,075 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), Series 2000A-1, 7.500%, 12/20/22 3,965 Tyler Health Facilities Development Corporation, Texas, Hospital 11/07 at 102.00 AAA 4,011,192 Revenue Bonds (East Texas Medical Center), Series 1997C, 5.600%, 11/01/27 Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) CAPTION> PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.4% $ 2,000 City of Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 102.00 N/R $ 1,984,920 Residential Rental Housing Revenue Bonds (The Hamptons and Hampton Court Apartments Project), Series 1999, 7.500%, 10/01/39 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 11.3% 17,075 Port of Seattle, Washington, Limited Tax General Obligation Bonds, 12/10 at 100.00 AA+ 17,509,900 2000 Series B, 5.750%, 12/01/25 (Alternative Minimum Tax) 5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 5,184,350 5.625%, 4/01/17 (Alternative Minimum Tax) 16,750 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AAA 17,136,590 5.625%, 2/01/30 175 State of Washington, General Obligation Bonds, Series 1993A, 10/03 at 100.00 AA+*** 181,312 4.750%, 10/01/13 (Pre-refunded to 10/01/03) 16,060 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102.00 AAA 16,774,028 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15 4,500 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102.00 Aa1 4,566,329 Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.7% 4,850 State of Wisconsin, General Obligation Bonds, Series 2001-1 No Opt. Call AAA 5,313,611 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 101.00 AA 1,014,249 3,000 5.875%, 8/15/30 8/10 at 101.00 AA 3,041,309 - ------------------------------------------------------------------------------------------------------------------------------------ $ 789,711 Total Investments (cost $792,965,409) - 153.0% 832,853,825 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.3% 12,528,043 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.3)% (301,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $544,381,868 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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.
Nuveen Select Quality Municipal Fund, Inc. (NQS) Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 4.8% Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 1999-A: $ 8,000 5.375%, 2/01/36 2/09 at 101.00 AAA $ 8,000,960 5,000 5.750%, 2/01/38 2/09 at 101.00 AAA 5,208,650 10,000 Lauderdale County and the City of Florence Healthcare Authority, 7/10 at 102.00 AAA 10,596,400 Alabama, Revenue Bonds (Coffee Health Group), Series 2000A, 6.000%, 7/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.6% 3,250 Alaska Energy Authority, Power Revenue Refunding Bonds 7/09 at 101.00 AAA 3,177,265 (Bradley Lake Hydroelectric Project), Third Series, 5.000%, 7/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.3% 1,000 Arkansas Development Finance Authority, Tobacco Settlement 12/11 at 100.00 Aa2 1,022,150 Revenue Bonds (Biosciences Institute College), Series 2001, 5.500%, 12/01/16 4,500 City of Little Rock, Arkansas, Hotel and Restaurant Gross Receipts No Opt. Call A3 5,551,380 Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 0.1% 550 California Pollution Control Financing Authority, Pollution Control 4/11 at 102.00 AAA 562,766 Refunding Revenue Bonds (Pacific Gas and Electric Company), Series 1996A Remarketed, 5.350%, 12/01/16 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 10.2% 11,000 Colorado Department of Transportation, Transportation Revenue 6/10 at 100.50 AAA 12,249,270 Anticipation Notes, Series 2000, 6.000%, 6/15/15 9,250 Colorado Health Facilities Authority, Kaiser Permanente Revenue 7/06 at 102.00 A 9,169,988 Bonds, Series 1994A 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 102.00 Aaa 2,677,043 9,590 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102.00 A 9,949,817 14,000 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100.00 AAA 14,236,880 Refunding Bonds, Series 2000A, 5.625%, 11/15/23 (Alternative Minimum Tax) 180 Jefferson County, Colorado, Single Family Revenue Refunding 10/02 at 102.00 AAA 183,758 Bonds, Series 1991A, 8.875%, 10/01/13 12,355 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 40.52 AAA 2,894,406 Bonds, Senior Series 2001B, 0.000%, 6/15/26 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 1.7% 9,285 Connecticut Development Authority, Health Facility Refunding 8/04 at 102.00 N/R 8,647,585 Revenue Bonds (Alzheimer's Resource Center of Connecticut, Inc. Project), Series 1994A, 7.250%, 8/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 2.6% Washington, District of Columbia, General Obligation Bonds, Series 1998B: 5,000 6.000%, 6/01/19 No Opt. Call AAA 5,622,050 7,265 5.250%, 6/01/26 6/08 at 101.00 AAA 7,200,923 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 3.8% 5,665 Florida Housing Finance Corporation, Housing Revenue Bonds 7/10 at 100.00 AAA 5,806,512 (Park at Palm Bay), 2000 Series R-2, 5.875%, 7/01/32 (Alternative Minimum Tax) 4,550 JEA, Florida, Water and Sewer System Revenue Bonds, 4/07 at 100.00 AAA 4,555,642 Series 2002A, 5.375%, 10/01/30 Lee County, Florida, Airport Revenue Bonds, Series 2000A: 3,075 5.875%, 10/01/18 (Alternative Minimum Tax) 10/10 at 101.00 AAA 3,286,683 4,860 5.875%, 10/01/19 (Alternative Minimum Tax) 10/10 at 101.00 AAA 5,161,514 Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.8% $ 3,750 City of Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B,1/10 at 101.00 AAA $ 3,808,350 5.625%, 1/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 16.5% 5,000 City of Chicago, Illinois, General Obligation Bonds, Project and 1/06 at 102.00 AAA 4,881,750 Refunding Series 1996B, 5.125%, 1/01/25 5,865 City of Chicago, Illinois, General Obligation Bonds (Neighborhoods 7/10 at 101.00 AAA 6,922,518 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 102.00 AAA 4,201,440 10,000 5.750%, 12/01/27 12/07 at 102.00 AAA 10,386,300 12,555 Chicago School Reform Board of Trustees of the Board of 12/07 at 102.00 AAA 12,401,201 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1997A, 5.250%, 12/01/27 30,000 Chicago School Reform Board of Trustees of the Board of Education No Opt. Call AAA 7,744,200 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 N/R 2,655,900 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 101.00 AAA 14,650,950 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 101.00 AAA 3,573,809 5,360 5.250%, 1/01/32 (Alternative Minimum Tax) 1/11 at 101.00 AAA 5,138,203 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 7/02 at 105.00 AAA 814,603 6,780 7.650%, 12/31/31 7/02 at 105.00 AAA 7,127,339 2,000 Illinois Health Facilities Authority, Revenue Bonds (Midwest Care 2/11 at 102.00 Aaa 2,041,680 Center Inc), Series 2001, 5.950%, 2/20/36 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 6.6% 8,640 Avon Community School Building Corporation, Hendricks County, 7/04 at 101.00 AAA 8,909,914 Indiana, First Mortgage Bonds, Series 1994, 5.500%, 1/01/16 4,795 Beacon Heights Housing Development Corporation, Indiana, 1991 6/02 at 100.00 AAA 4,802,097 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Project), Series A, 7.625%, 2/01/21 6,665 Indiana Housing Finance Authority, Single Family Mortgage Revenue 1/10 at 100.00 Aaa 6,820,761 Bonds, 2000 Series D-3, 5.950%, 7/01/26 (Alternative Minimum Tax) 5,450 City of Indianapolis, Indiana, Economic Development Revenue Bonds 7/06 at 102.00 BB 3,732,814 (Willowbrook Apartments Project), Senior Series 1996A, 6.500%, 7/01/26# 1,015 Michigan City Housing Development Corporation, Indiana, 1991 6/02 at 100.00 AAA 1,016,563 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage - Section 8 Assisted Project), Series A, 7.625%, 2/01/21 7,660 St. Joseph County Hospital Authority, Indiana, Health System 2/11 at 100.00 AAA 7,775,972 Revenue Bonds (Memorial Health System), Series 2000, 5.625%, 8/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.3% 7,500 Tobacco Settlement Authority, Iowa, Tobacco Settlement 6/11 at 101.00 A1 6,509,175 Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.6% 3,015 Lakeland Wesley Village, Inc., Kentucky, Mortgage Revenue 5/02 at 103.00 N/R 3,037,522 Refunding Bonds (Lakeland Wesley Village I Elderly Section 8 Assisted Project - FHA-Insured Mortgage), Series 1991, 7.500%, 11/01/21 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.0% $ 475 Calcasieu Parish Public Trust Authority, Louisiana, Mortgage 6/02 at 102.00 A1 $ 486,277 Revenue Refunding Bonds, 1991 Series A, 7.750%, 6/01/12 5,000 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 A1 4,577,400 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.7% 7,500 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 AA*** 8,576,175 Revenue Bonds, The Johns Hopkins University Issue, Series 1999, 6.000%, 7/01/39 (Pre-refunded to 7/01/09) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.2% 7,375 Boston Housing Development Corporation, Massachusetts, 1/04 at 102.00 AAA 7,382,891 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 12/09 at 101.00 AAA 2,150,300 Revenue Refunding Bonds, Issue G, Series 2000A, 5.700%, 12/01/11 (Alternative Minimum Tax) 6,300 Somerville Housing Authority, Massachusetts, Mortgage Revenue 5/02 at 100.00 AAA 6,313,419 Bonds (GNMA Collateralized - Clarendon Hill Towers Project), Series 1990, 7.950%, 11/20/30 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 7.4% 10,000 City of Detroit, Michigan, Sewage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 11,236,800 Series 1999-A, 5.750%, 7/01/26 (Pre-refunded to 1/01/10) 3,625 Fowlerville Community Schools, Livingston, Ingham and Shiawassee 5/07 at 100.00 AAA 3,991,161 Counties, Michigan, 1996 School Building and Site Bonds, 5.600%, 5/01/26 (Pre-refunded to 5/01/07) 3,275 Michigan Hospital Finance Authority, Revenue Refunding Bonds 8/03 at 102.00 BBB- 3,194,402 (Detroit Medical Center Obligated Group), Series 1993A, 6.500%, 8/15/18 6,525 Michigan Hospital Finance Authority, Revenue Bonds (Ascension 11/09 at 101.00 AAA 6,772,102 Health Credit Group), Series 1999A, 5.750%, 11/15/16 6,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/11 at 100.00 A- 5,887,260 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 100.00 AAA 5,865,600 Revenue Bonds (William Beaumont Hospital), Series 2001M, 5.250%, 11/15/35 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 3.3% 2,100 Chisago, Southcentral Minnesota Multi-County and Stearns 3/04 at 102.85 AAA 2,190,741 Counties Housing and Redevelopment Authorities, Minnesota, 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 100.00 AAA 7,001,890 Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32 7,230 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 7,427,524 Bonds, 2000 Series C, 6.100%, 7/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.3% 1,345 Goodman Housing Development Corporation, Mississippi, 1991 8/02 at 100.00 AAA 1,350,905 Multifamily Mortgage Revenue Refunding Bonds (Goodhaven Manor - FHA-Insured Mortgage Section 8 Assisted Project), Series A, 7.625%, 2/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.2% 10,550 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101.50 AAA 10,876,312 Revenue Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 8.6% 4,885 Clark County, Nevada, General Obligation Limited Tax Bond Bank 7/10 at 100.00 AA 5,088,363 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 101.00 AAA 8,593,200 Bonds, Series 1999A, 6.000%, 7/01/29 (Pre-refunded to 7/01/10) Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA (continued) $ 10,000 Clark County School District, Nevada, General Obligation Limited 6/06 at 101.00 AAA $11,179,800 Tax School Improvement Bonds, Series 1996, 6.000%, 6/15/15 (Pre-refunded to 6/15/06) 1,500 Director of the State of Nevada, Department of Business and 1/10 at 102.00 AAA 1,538,100 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 100.00 AAA 9,866,200 Bonds, Series 2001A, 5.250%, 7/01/34 6,000 Reno-Sparks Convention and Visitors Authority, Washoe County, 1/10 at 100.00 AAA 6,934,920 Nevada, General Obligation Limited Tax and Revenue Bonds, Series 1999A, 6.375%, 7/01/23 (Pre-refunded to 1/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 4.2% 3,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 3,016,440 Housing Revenue Bonds, 1997 Series A, 5.550%, 5/01/27 (Alternative Minimum Tax) 17,670 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 AAA 18,057,503 Revenue Bonds, 2000 Series CC, 5.850%, 10/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 4.5% 8,500 City of Farmington, New Mexico, Pollution Control Revenue 4/06 at 101.00 BBB- 8,290,900 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 101.00 A1 7,931,840 6,200 5.500%, 8/01/30 8/11 at 101.00 A1 6,090,384 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 12.6% 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 101.00 Aaa 103,739 9,200 6.000%, 10/15/26 10/07 at 101.00 A 9,657,608 5,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 4,830,500 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, Water 6/09 at 101.00 AAA 6,135,600 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 101.00 AAA 2,406,130 Authority, Triborough Bridge and Tunnel Authority, New York, Certificates of Participation, Series 2000A, 5.750%, 1/01/20 9,750 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AA+ 10,511,475 Tax Secured Bonds, Fiscal 2000 Series B, 6.000%, 11/15/29 10,000 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101.00 A 10,656,800 Lease Revenue Bonds, City of New York Issue, Series 1999, 6.000%, 5/15/39 5,650 Dormitory Authority of the State of New York, Mental Health 8/09 at 101.00 AAA 5,676,329 Services Facilities Improvement Revenue Bonds, Series 1999D, 5.250%, 8/15/24 5,710 Mortgage Agency of the State of New York, Homeowner Mortgage 3/09 at 101.00 Aa1 5,656,383 Revenue Bonds, 1999 Series 79, 5.300%, 4/01/29 (Alternative Minimum Tax) 10 Medical Care Facilities Finance Agency of the State of New York, 8/02 at 102.00 AA- 10,241 Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series D, 7.400%, 2/15/18 7,545 Urban Development Corporation of the State of New York, 1996 7/06 at 102.00 AAA 7,712,499 Corporate Purpose Senior Lien Bonds, 5.500%, 7/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.7% 18,555 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 100.00 AAA 18,625,509 Revenue Bonds, Refunding Series 1993B, 5.500%, 1/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 2.0% 10,000 City of Grand Forks, North Dakota, Sales Tax Revenue Bonds 12/07 at 100.00 AAA 10,221,400 (The Aurora Project), Series 1997A, 5.625%, 12/15/29 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.5% $ 5,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds 4/10 at 101.00 BBB+ $ 5,239,950 (Kettering Medical Center Network Obligated Group), Series 1999, 6.750%, 4/01/22 1,515 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100.00 Aaa 1,559,405 Bonds (Mortgage-Backed Securities Program), 2000 Series C, 6.050%, 3/01/32 (Alternative Minimum Tax) 890 Toledo-Lucas County Port Authority, Ohio, Development Revenue 5/02 at 101.00 N/R 893,177 Bonds (Northwest Ohio Bond Fund), Series 1989C, 8.400%, 11/15/09 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.9% 495 Oklahoma County Home Finance Authority, Oklahoma, Single 7/02 at 101.00 Aaa 502,890 Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 10,000 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, 12/08 at 100.00 BB 9,017,700 Revenue 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 100.00 AAA 103,234 Revenue Bonds, Series 1999, 5.750%, 1/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 8.7% 10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 10,556,100 Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/21 5,000 Oconee County, South Carolina, Pollution Control Facilities Revenue 4/03 at 102.00 Aa2 5,188,500 Refunding Bonds (Duke Power Company Project), Series 1993, 5.800%, 4/01/14 3,750 Piedmont Municipal Power Agency, South Carolina, Electric Revenue 1/09 at 101.00 BBB- 3,434,400 Bonds, 1999A Refunding Series, 5.250%, 1/01/21 3,415 South Carolina Housing Finance and Development Authority, 6/10 at 100.00 Aaa 3,621,266 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 101.00 A1 13,564,907 4,000 6.375%, 5/15/28 5/11 at 101.00 A1 4,020,440 3,000 6.375%, 5/15/30 No Opt. Call A1 3,023,400 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 3.3% 2,500 South Dakota Education Loans Incorporated, Tax-Exempt Fixed Rate 6/08 at 102.00 A2 2,509,525 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 100.00 AAA 8,918,842 Bonds (Great Plains Hotel Corporation Project), Series 1989, 8.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded to 10/15/14) 4,785 South Dakota Housing Development Authority, Homeownership 11/06 at 102.00 AAA 4,979,702 Mortgage Bonds, 1996 Series D, 6.300%, 5/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 4.4% 5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa2 5,011,450 Tennessee, Hospital Facilities Revenue Bonds (Baptist Health System of East Tennessee), Series 2002, 6.500%, 4/15/31 12,500 Metropolitan Government of Nashville and Davidson County 11/09 at 101.00 AAA 13,045,875 Health and Educational Facilities Board, 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 1,878,641 2,145 6.000%, 7/01/13 (Alternative Minimum Tax) 7/10 at 101.00 AAA 2,270,311 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 12.6% 10,000 Brazos River Authority, Texas, Pollution Control Revenue Refunding No Opt. Call BBB+ 10,050,800 Bonds (TXU Electric Company Project), Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) 6,000 Brazos River Authority, Texas, Revenue Refunding Bonds 11/08 at 102.00 AAA 5,943,420 (Houston Industries Incorporated Project), Series 1998C, 5.125%, 11/01/20 (Optional put 11/01/08) Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 2,705 Comal County Health Facilities Development Corporation, Texas, 7/02 at 101.50 AAA $ 2,750,228 Hospital Revenue Refunding Bonds (McKenna Memorial Hospital FHA-Insured Project), Series 1991, 7.375%, 1/15/21 5,500 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 5,188,150 Bonds, Series 2001A, 5.000%, 12/01/31 1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101.00 BBB 1,617,921 Revenue Bonds (Valero Energy Corporation Project), Series 2001, 6.650%, 4/01/32 (Alternative Minimum Tax) 1,145 Harrison County Finance Corporation, Texas, Single Family Mortgage 6/02 at 103.00 A1 1,171,507 Revenue Refunding Bonds, Series 1991, 8.875%, 12/01/11 4,590 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 4,628,464 Bonds, Series 2000A, 5.625%, 7/01/30 (Alternative Minimum Tax) 3,500 City of Houston, Texas, Water and Sewer System Junior Lien 12/12 at 100.00 AAA 3,309,250 Revenue Refunding Bonds, Series 2002A, 5.000%, 12/01/30 9,000 Matagorda County Navigation District Number One, Texas, No Opt. Call AAA 8,565,750 Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1997, 5.125%, 11/01/28 (Alternative Minimum Tax) 1,355 Panhandle Regional Housing Finance Corporation, Texas, Single 5/02 at 100.00 AAA 1,362,927 Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1991A, 7.500%, 5/01/24 (Alternative Minimum Tax) 4,100 Port of Corpus Christi Industrial Development Corporation, 4/08 at 102.00 BBB 3,822,594 Texas, 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 100.00 AAA 5,271,970 Unlimited Tax Schoolhouse Bonds, Series 2001, 5.000%, 8/15/26 4,520 State of Texas, General Obligation Water Financial Assistance 8/09 at 100.00 Aa1 4,580,794 Bonds (State Participation Program), Series 1999C, 5.500%, 8/01/35 4,560 Winter Garden Housing Finance Corporation, Texas, Single Family 4/04 at 103.00 AAA 4,718,369 Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1994, 6.950%, 10/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 5.9% Utah Intermountain Power Agency, Power Supply Revenue Refunding Bonds, 1993 Series A: 5,015 5.500%, 7/01/20 7/03 at 102.00 AAA 5,079,242 8,635 5.500%, 7/01/20 7/03 at 102.00 AAA 8,745,873 16,050 Utah County, Utah, Hospital Revenue Bonds (IHC Health Services, 8/07 at 101.00 AAA 15,855,474 Inc.), Series 1997, 5.250%, 8/15/26 - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 2.6% 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 101.00 AAA 4,108,814 4,265 6.250%, 12/01/16 12/10 at 101.00 AAA 4,728,947 4,140 Vermont Housing Finance Agency, Single Family Housing Notes, 11/09 at 100.00 AAA 4,232,860 Series 13A, 5.950%, 11/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 5.2% 8,810 Public Utility District No. 1, Chelan County, Washington, 7/11 at 101.00 AAA 8,856,693 Chelan Hydro-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 101.00 AAA 7,674,395 (Terminal 18 Project), Series 1999B, 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 102.00 AAA 3,031,142 2,490 5.450%, 1/01/19 1/03 at 102.00 AAA 2,513,331 1,800 5.450%, 1/01/20 1/03 at 102.00 AAA 1,814,292 2,130 Washington Public Power Supply System, Nuclear Project No. 2 7/02 at 102.00 Aa1 2,186,807 Refunding Revenue Bonds, Series 1992A, 6.250%, 7/01/12 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.6% $ 5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- $ 4,953,899 Bonds (Madison Gas and Electric Company), Series 2002A, 5.875%, 10/01/34 (Alternative Minimum Tax) 2,905 Wisconsin Housing and Economic Development Authority, 3/10 at 100.00 AA 2,966,672 Homeownership Revenue Bonds, 2000 Series G, 5.950%, 3/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $ 786,375 Total Investments (cost $743,913,658) - 153.3% 767,858,025 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.4% 12,261,474 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.7)% (279,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $501,119,499 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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. # Subsequent to April 30, 2002, this security was non-income producing. 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. See accompanying notes to financial statements.
Nuveen Quality Income Municipal Fund, Inc. (NQU) Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.1% $ 3,500 City of Bessemer Governmental Utility Services Corporation, 6/08 at 102.00 AAA $ 3,503,255 Alabama, Water Supply Revenue Bonds, Series 1998, 5.200%, 6/01/24 20,785 Jefferson County, Alabama, Sewer Revenue Capitol Improvement 2/11 at 101.00 AAA 21,167,860 Warrants, Series 2001A, 5.500%, 2/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.6% 6,750 Alaska Housing Finance Corporation, General Housing Purpose 12/02 at 102.00 Aa2*** 6,926,108 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 102.00 AAA 5,917,682 Bonds, 1995 Series A, 5.875%, 12/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 4.1% 5,000 Maricopa County Industrial Development Authority, Arizona, 9/10 at 103.00 AAA 5,169,650 Multifamily Housing Revenue Bonds (Bay Club at Mesa Cove Project), Series 2000A, 5.800%, 9/01/35 3,000 City of Mesa, Arizona, Utility System Revenue Refunding No Opt. Call AAA 3,175,680 Bonds, Series 2002, 5.250%, 7/01/17 9,080 Pima County Industrial Development Authority, Arizona, Multifamily 12/10 at 103.00 Aaa 9,611,180 Housing Revenue Bonds (FHA-Insured Mortgage Loan - Fountain Village Apartments Project), Series 2000, 6.100%, 12/20/35 10,010 Salt River Project Agricultural Improvement and Power District, 1/12 at 101.00 AA 10,017,407 Arizona, Electric System Refunding Revenue Bonds (Salt River Project), 2002 Series A, 5.125%, 1/01/27 4,955 Yuma Regional Medical Center on behalf of Hospital District No. 1, 8/02 at 101.50 N/R*** 5,108,952 Yuma County, Arizona, Hospital Revenue Improvement and Refunding Bonds (Yuma Regional Medical Center Project), Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.7% 5,285 Arkansas Development Finance Authority, Single Family 7/05 at 102.00 AAA 5,590,473 Mortgage Revenue Bonds (Mortgage-Backed Securities Program), 1995 Series B, 6.700%, 7/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 7.0% 3,000 California Health Facilities Financing Authority, Kaiser Permanente 5/03 at 102.00 A 2,995,170 Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 5,000 State of California, General Obligation Veterans Welfare Bonds, 12/03 at 102.00 AA- 5,005,650 Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax) 4,100 State of California, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AA- 4,269,863 Series 1997BL, 5.300%, 12/01/12 (Alternative Minimum Tax) 10,000 State of California, Various Purpose General Obligation 4/09 at 101.00 AAA 9,276,400 Bonds, 4.750%, 4/01/29 3,500 State Public Works Board of the State of California (The Trustees 10/02 at 102.00 A*** 3,645,355 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 102.00 Aaa 19,348,720 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) 1,000 Eastern Municipal Water District, California, Water and Sewer 7/11 at 100.00 AAA 969,800 Revenue Certificates of Participation, Series 2001B, 5.000%, 7/01/30 8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,190,940 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 2,500 City of Los Angeles Community Redevelopment Agency, California, 7/02 at 100.00 BBB*** 2,528,100 Tax Allocation Refunding Bonds (Central Business District Redevelopment Project), Series G, 6.750%, 7/01/10 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 4.3% $ 10,000 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100.00 AAA $10,169,200 Refunding Bonds, Series 2000A, 5.625%, 11/15/23 (Alternative Minimum Tax) 10,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/07 at 101.00 AAA 9,417,200 Bonds, Series 1997A, 4.750%, 9/01/23 14,400 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 65.63 AAA 6,116,256 2000 Series B, 0.000%, 9/01/17 8,740 Poudre School District R-1, Larimer County, Colorado, General 12/10 at 100.00 AAA 8,843,394 Obligation Bonds, Series 2000, 5.125%, 12/15/19 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 2.8% City of Bridgeport, Connecticut, General Obligation Bonds, Series C: 4,395 5.375%, 8/15/17 8/11 at 100.00 AAA 4,597,434 3,510 5.375%, 8/15/18 8/11 at 100.00 AAA 3,650,260 1,000 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,039,050 5.375%, 4/15/19 (WI, settling 5/01/02) 2,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 1,969,060 Program Bonds, 2001 Series D, Subseries D-2, 5.150%, 11/15/22 (Alternative Minimum Tax) 2,000 Connecticut Health and Educational Facilities Authority, Revenue 7/11 at 101.00 A2 1,992,440 Bonds (Loomis Chaffee School), Series D, 5.250%, 7/01/31 1,000 Connecticut Health and Educational Facilities Authority, Revenue 3/11 at 101.00 AAA 977,640 Bonds (Greenwich Academy), Series 2001B, 5.000%, 3/01/32 2,595 Connecticut Health and Educational Facilities Authority, Revenue 11/11 at 100.00 AAA 2,599,853 Bonds (Connecticut State University System), 2002 Series D-2, 5.000%, 11/01/21 750 East Hartford, Connecticut, General Obligation Bonds, Series 2002, 5/10 at 100.00 Aaa 744,405 4.875%, 5/01/20 (WI, settling 5/01/02) 1,450 Farmington, Connecticut, General Obligation Bonds, Series 2002, 9/12 at 101.00 Aa1 1,457,236 5.000%, 9/15/20 1,390 Towns of Andover, Hebron and Marlborough Regional School 5/11 at 101.00 Aaa 1,395,977 District No. 008, Tolland County, Connecticut, General Obligation Bonds, Series 2002, 5.000%, 5/01/20 (WI, settling 5/02/02) 2,000 The University of Connecticut, Student Fee Revenue Refunding 11/12 at 101.00 AAA 1,948,880 Bonds, Series 2002A, 5.000%, 11/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.7% 5,000 Orange County Health Facilities Authority, Florida, Hospital Revenue 11/10 at 101.00 A- 5,248,150 Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2000, 6.500%, 11/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ GUAM - 0.2% 1,650 Guam Power Authority, Revenue Bonds, 1999 Series A, 10/09 at 101.00 AAA 1,647,509 5.125%, 10/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 1.3% 10,000 State of Hawaii, Airports System Revenue Bonds, Refunding 7/10 at 101.00 AAA 10,564,300 Series 2000B, 5.750%, 7/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 12.0% 32,670 City of Chicago, Illinois, General Obligation Bonds (City Colleges No Opt. Call AAA 5,955,741 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 101.00 AAA 5,352,350 Alive 21 Program), Series 2000A, 6.000%, 1/01/28 5,045 City of Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 5,248,768 Series 2000D, 5.750%, 1/01/30 City of Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Revenues), Series 2001C: 1,000 5.500%, 12/01/18 12/11 at 100.00 AAA 1,041,920 3,690 5.000%, 12/01/19 12/11 at 100.00 AAA 3,645,203 3,000 5.000%, 12/01/20 12/11 at 100.00 AAA 2,944,680 2,000 5.000%, 12/01/21 12/11 at 100.00 AAA 1,954,740 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 4,993,280 4,400 0.000%, 12/01/15 No Opt. Call AAA 2,184,776 Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 12,750 City of Chicago, Illinois, Chicago Midway Airport Revenue Bonds, 1/09 at 101.00 AAA $11,921,378 Series 1998A, 5.125%, 1/01/35 (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 101.00 AAA 8,362,880 7,750 6.000%, 1/01/30 (Pre-refunded to 1/01/10) 1/10 at 101.00 AAA 8,841,045 11,000 Illinois Health Facilities Authority, Hospital Revenue Bonds 11/03 at 102.00 AAA 11,984,280 (Hindsdale Hospital), Series 1993-A, 7.000%, 11/15/19 10,000 Illinois Health Facilities Authority, Revenue Bonds (Iowa 2/10 at 101.00 AAA 10,395,500 Health System), Series 2000, 5.875%, 2/15/30 2,670 Illinois Housing Development Authority, Section 8 Elderly 9/02 at 102.00 A 2,728,553 Housing Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 5,000 State of Illinois, General Obligation Bonds (Illinois FIRST), 12/10 at 100.00 AAA 5,127,550 Series 2000, 5.450%, 12/01/21 3,465 Joliet Regional Port District Airport Facilities, Illinois, Revenue 7/07 at 103.00 N/R 3,178,237 Bonds (Lewis University Airport), Series 1997A, 7.250%, 7/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.8% 4,500 Indiana Educational Facilities Authority, Educational Facilities 2/11 at 100.00 AAA 4,582,485 Revenue Bonds (Butler University Project), Series 2001, 5.500%, 2/01/26 5,125 City of Petersburg, Indiana, Pollution Control Refunding Revenue 12/04 at 102.00 A3 5,175,686 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 101.00 AAA 4,363,250 Bonds (Memorial Health System), Series 1998A, 4.625%, 8/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.0% 8,585 Iowa Finance Authority, Hospital Facilities Revenue Bonds 7/08 at 102.00 AAA 8,322,213 (Iowa Health System), Series 1998A, 5.125%, 1/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.6% 4,585 DeSoto Unified School District No. 232, Johnson County, Kansas, 9/10 at 100.00 Aaa 4,455,428 General Obligation Bonds, Series 2000, 4.750%, 9/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.1% 6,335 Kentucky Housing Corporation, Housing Revenue Bonds 1/05 at 102.00 AAA 6,597,966 (Federally Insured or Guaranteed Mortgage Loans), 1995 Series B, 6.625%, 7/01/26 (Alternative Minimum Tax) 2,500 Commonwealth of Kentucky, State Property and Buildings 2/12 at 100.00 AAA 2,591,975 Commission Revenue Bonds (Project No. 74), Refunding Series 2002, 5.375%, 2/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.1% 10,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds No Opt. Call AAA 10,727,900 (Franciscan Missionaries of Our Lady Health System Project), Series 1998A, 5.750%, 7/01/25 6,500 Louisiana Public Facilities Authority, Revenue Bonds (Tulane 7/12 at 100.00 AAA 6,240,585 University), Series 2002A, 5.000%, 7/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.1% 1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 977,050 Revenue Bonds, Johns Hopkins Hospital Issue, Series 2001, 5.000%, 5/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 7.0% 7,405 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 7,843,894 Revenue Bonds (Massachusetts Institute of Technology), 2002 Series K, 5.500%, 7/01/32 6,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 4,733,400 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 102.00 AAA 7,962,715 Revenue Bonds, Senior 1997 Series A, 5.000%, 1/01/37 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS (continued) $ 13,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 101.00 AAA $12,630,465 Revenue Bonds, Subordinated 1999 Series A, 5.000%, 1/01/39 6,425 Massachusetts Water Pollution Abatement Trust, Water Pollution 8/09 at 101.00 Aaa 6,735,970 Abatement Revenue Bonds (MWRA Program), Subordinate Series 1999A, 5.750%, 8/01/29 10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AAA 10,488,200 Bonds, 2000 Series A, 5.750%, 8/01/39 5,380 University of Massachusetts Building Authority, Project Revenue 11/10 at 100.00 AAA 5,459,194 Bonds, Senior Series 2000-2, 5.250%, 11/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.5% 1,000 City of Detroit, Michigan, Water Supply System Revenue Senior 7/11 at 101.00 AAA 1,055,460 Lien Bonds, 2001 Series A, 5.750%, 7/01/28 7,425 Michigan Hospital Finance Authority, Hospital Revenue Bonds 11/09 at 101.00 A1 7,633,717 (Henry Ford Health System), Series 1999A, 6.000%, 11/15/24 8,500 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102.00 BBB 8,685,810 (Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) 2,300 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/11 at 100.00 A- 2,256,783 Bonds (Detroit Edison Company Pollution Control Project), Collateralized Series 1999C, Fixed Rate Conversion, 5.650%, 9/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 2.2% City of Chaska, Minnesota, Electric Revenue Bonds (Generating Facilities), Series 2000A: 1,930 6.000%, 10/01/20 10/10 at 100.00 A3 2,009,400 2,685 6.000%, 10/01/25 10/10 at 100.00 A3 2,782,600 3,655 Dakota County, Washington County and City of Bloomington No Opt. Call AAA 5,045,874 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 101.00 AAA 4,828,900 Minnesota, Airport Revenue Bonds, Series 1998A, 5.000%, 1/01/30 2,555 Minnesota Housing Finance Agency, Single Family Mortgage 1/04 at 102.00 AA+ 2,631,906 Bonds, 1994 Series J, 6.950%, 7/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.1% 3,165 Canton Housing Development Corporation, Mississippi, 1990 No Opt. Call AAA 3,782,745 Multifamily Mortgage Revenue Refunding Bonds (Canton Estates Apartments Project - FHA-Insured Mortgage Section 8 Assisted Project), Series A, 7.750%, 8/01/24 1,130 Charter Mortgage Corporation, Mississippi, 1990 Multifamily No Opt. Call AAA 1,335,084 Mortgage Revenue Refunding Bonds (Church Garden Apartments - FHA-Insured Mortgage Section 8 Assisted Project), Series A, 7.750%, 8/01/21 2,500 Mississippi Hospital Equipment and Facilities Authority, Revenue 1/11 at 101.00 Aaa 2,525,000 Bonds (Forrest County General Hospital Project), Series 2000, 5.500%, 1/01/27 1,250 Pearl Housing Development Corporation, Mississippi, 1990 6/02 at 100.00 AAA 1,251,463 Multifamily Mortgage Revenue Refunding Bonds (Rose Garden Apartments Project - FHA-Insured Mortgage Section 8 Assisted Project), Series A, 7.750%, 8/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.7% Jackson County Industrial Development Authority, Missouri, Healthcare System Revenue Bonds (Saint Joseph Health Center), Series 1992: 4,890 6.500%, 7/01/12 7/02 at 102.00 Baa1 4,947,898 5,605 7.000%, 7/01/22 7/02 at 102.00 Baa1 5,698,604 15,350 City of Springfield Public Building Corporation, Missouri, No Opt. Call AAA 3,081,052 Leasehold Revenue Bonds (Jordan Valley Park Projects), Series 2000A, 0.000%, 6/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.9% 7,000 City of Forsyth, Rosebud County, Montana, Pollution Control 8/02 at 101.00 AAA 7,165,410 Revenue Refunding Bonds (Puget Sound Power and Light Company Colstrip Project), Series 1992, 7.050%, 8/01/21 Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.4% $ 11,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101.50 AAA $11,340,230 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 101.50 AAA 8,258,560 Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.2% 1,635 New Hampshire Housing Finance Authority, Single Family Residential 7/02 at 102.00 Aa3 1,664,659 Mortgage Bonds, 1991 Series C, 7.100%, 1/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.0% 5,675 Camden County Pollution Control Financing Authority, New Jersey, 6/02 at 102.00 B2 5,664,842 Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991D, 7.250%, 12/01/10 2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,242,526 System Bonds, 2001 Series B, 6.000%, 12/15/19 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.7% 5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 A1 5,893,124 Bonds (Presbyterian Healthcare Services), Series 2001A, 5.500%, 8/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 24.1% 25,000 Erie Tobacco Asset Securitization Corporation, Erie County, 7/10 at 101.00 A1 25,526,000 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 100.00 A- 1,134,848 2,715 5.250%, 9/01/28 9/11 at 100.00 AAA 2,715,787 15,000 Metropolitan Transportation Authority, New York, Dedicated Tax 4/10 at 100.00 AAA 16,240,350 Fund Bonds, Series 2000A, 6.000%, 4/01/30 2,095 Niagara Falls Housing and Commercial Rehabilitation Corporation, No Opt. Call AA 2,377,155 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 101.00 A- 16,591,840 Tobacco Settlement Asset-Backed Bonds, Series A, 6.400%, 7/15/33 6,000 City of New York, New York, General Obligation Bonds, Fiscal 1997 8/07 at 101.00 A 6,326,040 Series H, 6.125%, 8/01/25 5,475 City of New York, New York, General Obligation Bonds, Fiscal 1995 8/04 at 101.00 Aaa 6,138,789 Series B1, 7.250%, 8/15/19 (Pre-refunded to 8/15/04) 14,800 City of New York, New York, General Obligation Bonds, Fiscal 1997 6/07 at 101.00 AAA 15,395,256 Series M, 5.500%, 6/01/17 6,700 City of New York, New York, General Obligation Bonds, Fiscal 1995 2/05 at 101.00 Aaa 7,495,223 Series F, 6.625%, 2/15/25 (Pre-refunded to 2/15/05) 5,660 City of New York, New York, General Obligation Bonds, Fiscal 1993 10/02 at 101.50 Aaa 5,868,401 Series B, 6.750%, 10/01/17 (Pre-refunded to 10/01/02) 3,250 City of New York, New York, General Obligation Bonds, Fiscal 2002 3/12 at 100.00 AAA 3,206,710 Series C, 5.125%, 3/15/25 4,190 City of New York Municipal Water Finance Authority, New York, 6/05 at 101.00 AAA 4,647,841 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, Future 5/10 at 101.00 AA+ 10,869,115 Tax Secured Bonds, Fiscal 2000 Series B, 5.750%, 11/15/19 4,250 New York State Dormitory Authority, Mount Sinai School of No Opt. Call AAA 4,280,515 Medicine Insured Revenue Bonds, Series 1994A, 5.150%, 7/01/24 5,000 New York State Dormitory Authority, Mental Health Services 2/07 at 102.00 AA- 5,158,950 Facilities Improvement Revenue Bonds, Series 1997A, 5.750%, 2/15/27 10,000 New York State Dormitory Authority, Mental Health Services 2/10 at 100.00 AAA 10,647,900 Facilities Improvement Revenue Bonds, Series 2000B, 6.000%, 2/15/30 5,000 New York State Energy Research and Development Authority, 11/08 at 102.00 AAA 4,956,250 Pollution Control Revenue Refunding Bonds (Niagara Mohawk Power Corporation Project), Series 1998A, 5.150%, 11/01/25 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds (New York City Municipal Water Finance Authority Projects - Second Resolution), Series 2001C: $ 6,035 5.000%, 6/15/20 6/11 at 100.00 AAA $ 6,041,216 6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,529,304 8,000 New York State Medical Care Facilities Finance Agency, New York 2/05 at 102.00 AAA 9,001,920 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 102.00 AAA 5,673,100 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: 3,760 6.200%, 8/15/15 (Pre-refunded to 8/15/05) 8/05 at 102.00 AA*** 4,259,666 4,250 6.300%, 8/15/25 (Pre-refunded to 8/15/05) 8/05 at 102.00 AA*** 4,828,128 5,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 4,916,200 Fund Bonds, Series 2002A, 5.000%, 4/01/22 3,140 Penfield-Crown Oak Housing Development Corporation, New York, 2/03 at 100.00 AAA 3,173,315 1991 Multifamily Mortgage Revenue Refunding Bonds (Crown Oak Estates - FHA-Insured Mortgage Section 8 Assisted Project), Series A, 7.350%, 8/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.3% 10,500 North Carolina Eastern Municipal Power Agency, Power System 7/02 at 102.00 BBB 10,741,290 Revenue Bonds, Refunding Series 1991A, 6.250%, 1/01/03 13,720 North Carolina Medical Care Commission, Hospital Revenue Bonds 12/08 at 101.00 AAA 12,520,735 (Pitt County Memorial Hospital), Series 1998A, 4.750%, 12/01/28 3,035 City of Raleigh, North Carolina, Combined Enterprise System 3/11 at 100.00 AAA 2,855,328 Revenue Bonds, Series 2001, 4.750%, 3/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.6% 4,550 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102.00 Aaa 4,851,392 Bonds (GNMA Mortgage-Backed Securities Program), 1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 7.0% 495 Oklahoma County Home Finance Authority, Oklahoma, Single 7/02 at 101.00 Aaa 502,890 Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 17,510 Pottawatomie County Home Finance Authority, Oklahoma, Municipal No Opt. Call AAA 22,978,898 Refunding Collateralized Mortgage Obligations, Series 1991A, 8.625%, 7/01/10 12,750 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, Revenue 12/08 at 100.00 BB 11,756,648 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 12/08 at 100.00 BB 20,745,219 Bonds (American Airlines Inc.), Refunding Series 2001B, 5.650%, 12/01/35 (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.4% 3,000 Bend-La Pine Administrative School District No. 1, Deschutes 6/11 at 100.00 Aaa 3,150,120 County, Oregon, General Obligation Bonds, Series 2001A, 5.500%, 6/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.2% 6,880 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 7,336,282 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 (Delaware Valley Medical Center Project - FHA-Insured Mortgage), Series 1992: 185 6.900%, 8/01/11 8/02 at 102.00 AAA 185,712 3,000 7.000%, 8/01/22 8/02 at 102.00 AAA 3,213,300 7,000 Commonwealth of Pennsylvania, General Obligation Bonds, 9/11 at 101.00 AA 7,223,510 Second Series 2001, 5.000%, 9/15/15 Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.6% $ 1,500 Commonwealth of Puerto Rico, Public Improvement General No Opt. Call A $ 1,546,110 Obligation Bonds, 2002 Series A, 5.500%, 7/01/29 1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,039,280 Bonds, 2000 Series A, 5.500%, 10/01/32 1,500 Puerto Rico Public Buildings Authority, Government Facilities 7/12 at 100.00 A 1,504,605 Revenue Refunding Bonds, Series D, Guaranteed by the Commonwealth of Puerto Rico, 5.125%, 7/01/20 750 Puerto Rico Public Finance Corporation, Commonwealth Appropriation No Opt. Call AAA 804,060 Bonds, 2002 Series E, 5.500%, 8/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 7.9% 24,725 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 24,588,024 Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22 Horry County School District, South Carolina, General Obligation Bonds, Series 2001A: 5,840 5.000%, 3/01/20 3/12 at 100.00 AA+ 5,788,608 5,140 5.000%, 3/01/21 3/12 at 100.00 AA+ 5,074,825 4,000 Town of Lexington, South Carolina, Combined Waterworks and 4/10 at 101.00 Aaa 3,882,800 Sewer System Revenue Refunding and Improvement Bonds, Series 2001A, 5.000%, 4/01/27 13,615 South Carolina Transportation Infrastructure Bank, Junior Lien 10/11 at 100.00 Aaa 13,654,756 Revenue Bonds, Series 2001B, 5.125%, 10/01/21 10,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 A1 10,051,100 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.7% 3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa2 3,001,050 Tennessee, Hospital Facilities Revenue Bonds (Baptist Health System of East Tennessee), Series 2002, 6.375%, 4/15/22 10,000 Tennessee Housing Development Agency, Homeownership 7/10 at 100.00 AA 10,470,700 Program Bonds, Issue 2000-2B, 6.350%, 1/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 24.1% 14,360 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue 6/02 at 101.00 BB 13,384,094 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 71.95 Aaa 2,155,086 4,105 0.000%, 2/15/14 2/05 at 58.79 Aaa 2,102,047 6,500 Bell County Health Facilities Development Corporation, Texas, 11/08 at 101.00 A- 6,147,115 Retirement Facility Revenue Bonds (Buckner Retirement Services, Inc. Obligated Group Project), Series 1998, 5.250%, 11/15/19 14,200 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call BBB+ 14,272,136 Refunding Bonds (TXU Electric Company Project), Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) 14,375 Dallas-Fort Worth International Airport Facilities Improvement 11/07 at 100.00 BB 13,408,856 Corporation, Texas, Revenue Refunding Bonds (American Airlines), Series 2000C, 6.150%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/07) 5,000 Cities of Dallas and Fort Worth, Texas, Dallas-Fort Worth 11/11 at 100.00 AAA 5,091,700 International Airport, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.625%, 11/01/21 (Alternative Minimum Tax) 2,965 Fort Worth Housing Finance Corporation, Texas, Home Mortgage 10/02 at 102.00 Aa2 3,056,500 Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11 8,235 Grand Prairie Housing Finance Corporation, Texas, Multifamily 9/10 at 105.00 AAA 8,887,047 Housing Revenue Bonds (Landings at Carrier Project), Series 2000A, 6.875%, 9/20/42 2,700 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,650,968 Revenue Bonds, Series 2001G, 5.250%, 11/15/30 5,000 Harris County Health Facilities Development Corporation, Texas, 10/09 at 101.00 AA 4,759,350 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 100.00 AAA 12,042,741 Schoolhouse and Refunding Bonds, Series 1999A, 4.750%, 2/15/26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 36,735 City of Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA $ 7,971,862 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 100.00 AAA 22,090,500 Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30 Lubbock Health Facilities Development Corporation, Texas, Revenue Bonds (St. Joseph Health System), Series 1998: 4,900 5.250%, 7/01/15 7/08 at 101.00 AA- 4,969,482 8,495 5.250%, 7/01/16 7/08 at 101.00 AA- 8,564,489 17,655 Matagorda County Navigation District Number One, Texas, 11/08 at 102.00 AAA 17,112,462 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 101.00 BBB- 7,457,450 Refunding Bonds (Union Pacific Corporation Project), Series 1992, 5.350%, 11/01/10 11,300 City of San Antonio, Texas, Electric and Gas Systems Revenue 2/03 at 100.00 AAA 11,626,683 Refunding Bonds, New Series 1992, 5.000%, 2/01/17 14,680 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 16,498,852 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, Texas, 2/11 at 100.00 AAA 3,693,188 Limited Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/23 5,000 City of Wichita Falls, Wichita County, Texas, Water and Sewer 8/11 at 100.00 AAA 4,866,150 System Priority Lien Revenue Bonds, Series 2001, 5.000%, 8/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.7% 5,800 Carbon County, Utah, Solid Waste Disposal Refunding Revenue 2/05 at 102.00 BB- 5,854,172 Bonds (Laidlaw/ECDC Project - Guaranteed by Allied Waste Industries), Series 1995, 7.500%, 2/01/10 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.1% 4,000 Norfolk Airport Authority, Virginia, Airport Revenue Refunding 7/11 at 100.00 AAA 3,887,680 Bonds, Series 2001B, 5.125%, 7/01/31 (Alternative Minimum Tax) 11,040 Suffolk Redevelopment and Housing Authority, Virginia, No Opt. Call Aaa 11,264,664 Multifamily Housing Revenue Refunding Bonds (Windsor at Potomac Vista Limited Partnership Project), Series 2001, 4.850%, 7/01/31 (Mandatory put 7/01/11) 665 Virginia Housing Development Authority, Rental Housing Bonds, 5/09 at 101.00 AA+ 662,486 1999 Series F, 5.000%, 5/01/15 Virginia Resources Authority, Water Revenue Refunding Bonds, Series 2002: 500 5.000%, 4/01/18 4/12 at 102.00 AA 507,955 500 5.000%, 4/01/19 4/12 at 102.00 AA 504,250 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 14.9% 13,550 Central Puget Sound Regional Transit Authority, Washington, 2/09 at 101.00 AAA 12,258,143 Sales Tax and Motor Vehicle Excise Tax Bonds, Series 1999, 4.750%, 2/01/28 4,185 Douglas County Public Utility District No. 1, Washington, Wells 9/06 at 106.00 AA- 5,198,565 Hydroelectric Revenue Bonds, Series 1986, 8.750%, 9/01/18 12,415 Federal Way School District No. 210, King County, Washington, 12/03 at 100.00 A1*** 13,320,302 Unlimited Tax General Obligation Bonds, Series 1991, 6.950%, 12/01/11 (Pre-refunded to 12/01/03) 2,500 King County, Washington, Sewer Revenue Bonds, Series 2001, 1/12 at 100.00 AAA 2,416,975 5.000%, 1/01/23 6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AAA 7,063,980 5.625%, 2/01/24 (Alternative Minimum Tax) 13,400 City of Seattle, Washington, Municipal Light and Power Revenue 12/10 at 100.00 Aa3 13,346,131 Bonds, Series 2000, 5.400%, 12/01/25 1,675 Spokane Downtown Foundation, Washington, Parking Revenue 8/08 at 102.00 D 975,687 Bonds (River Park Square Project), 1998 Series, 5.600%, 8/01/19 9,440 City of Tacoma, Washington, Electric System Revenue Bonds, 1/11 at 101.00 AAA 10,092,681 Series 2001A Refunding, 5.750%, 1/01/18 4,000 North Thurston School District No. 3, Thurston County, Washington, 12/02 at 100.00 A*** 4,111,319 Unlimited Tax General Obligation Bonds, Series 1992, 6.500%, 12/01/09 (Pre-refunded to 12/01/02) Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 18,145 State of Washington, Various Purpose General Obligation Bonds, 7/11 at 100.00 AAA $17,692,644 2001 Series 02A, 5.000%, 7/01/23 State of Washington, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2002C: 7,940 5.000%, 1/01/21 1/12 at 100.00 AAA 7,811,689 17,885 5.000%, 1/01/22 1/12 at 100.00 AAA 17,521,934 3,525 Washington Healthcare Facilities Authority, Revenue Bonds 10/11 at 100.00 Aaa 3,407,934 (Children's Hospital and Regional Medical Center), Series 2001, 5.000%, 10/01/21 4,175 Washington State University, Recreation Center Revenue Bonds, 4/08 at 101.00 AAA 3,967,836 Series 1998, 5.000%, 4/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.9% 7,545 City of La Crosse, Wisconsin, Pollution Control Refunding 12/08 at 102.00 AAA 7,930,624 Revenue Bonds (Dairyland Power Cooperative Project), Series 1997A, 5.450%, 9/01/14 7,000 Wisconsin Housing and Economic Development Authority, 7/02 at 102.00 AA 7,149,519 Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,313,410 Total Investments (cost $1,208,486,033) - 155.7% 1,247,550,382 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.7% 5,336,816 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (56.4)% (452,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $800,887,198 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements.
Nuveen Premier Municipal Income Fund, Inc. (NPF) Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.0% $ 2,745 Alabama Higher Education Loan Corporation, Student Loan Revenue No Opt. Call AAA $ 2,907,147 Refunding Bonds, Series 1994-D, 5.850%, 9/01/04 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.7% 2,000 Alaska Housing Finance Corporation, General Mortgage Revenue 6/09 at 101.00 AAA 2,050,940 Bonds, 1999 Series A, 6.000%, 6/01/49 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 7.2% 3,650 Gilbert Unified School District No. 41, Maricopa County, Arizona, 7/04 at 100.00 AAA 3,930,065 School Improvement Bonds (Project of 1993), Series 1994C, 6.100%, 7/01/14 (Pre-refunded to 7/01/04) 6,000 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 AA 6,343,680 District, Arizona, Electric System Refunding Revenue Bonds (Salt River Project), 2002 Series A, 5.250%, 1/01/15 10,635 Yuma Regional Medical Center on behalf of Hospital District No. 1, 8/02 at 101.50 N/R*** 10,965,429 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 - 2.5% 5,070 Arkansas Development Finance Authority, Single Family Mortgage 1/11 at 100.00 AAA 4,868,163 Revenue Bonds (Mortgage-Backed Securities Program), 2001 Series I, 5.300%, 7/01/33 (Alternative Minimum Tax) 910 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102.00 AAA 964,227 Revenue Bonds (Mortgage-Backed Securities Program), 1994 Series C, 6.600%, 7/01/17 1,170 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102.00 AAA 1,203,860 Revenue Bonds (Mortgage-Backed Securities Program), 1995 Series B, 6.550%, 7/01/18 (Alternative Minimum Tax) 143 Drew County Public Facilities Board, Arkansas, Single Family 8/03 at 103.00 Aaa 149,181 Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 8/01/11 10 Greene County Residential Housing Facilities Board, Arkansas, 7/02 at 103.00 Aa2 10,262 Subordinated Mortgage Revenue Bonds, Series 1991-1, 7.250%, 1/01/10 151 Stuttgart Public Facilities Board, Arkansas, Single Family Mortgage 9/03 at 103.00 Aaa 157,523 Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 8.3% 5,690 California Department of Veterans Affairs, Home Purchase Revenue 6/12 at 101.00 AAA 5,725,278 Bonds, Series 2002A, 5.300%, 12/01/21 Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A: 33,000 0.000%, 1/01/17 No Opt. Call AAA 15,529,470 10,000 0.000%, 1/01/22 No Opt. Call AAA 3,410,200 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 0.4% 1,000 Colorado Health Facilities Authority, Hospital Revenue Bonds 12/09 at 101.00 Aaa 1,042,220 (Poudre Valley Healthcare, Inc.), Series 1999A, 5.750%, 12/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 2.4% 2,000 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 2,025,560 Refunding Bonds (Connecticut Light and Power Company), Series 1993A, 5.850%, 9/01/28 3,460 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 Aaa 3,600,995 Finance Program Bonds, 1997 Series A, Subseries A-4, 6.200%, 11/15/22 (Alternative Minimum Tax) 1,300 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA 1,374,919 Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18 Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 4.0% $ 1,175 District of Columbia, Hospital Revenue Refunding Bonds, Washington 8/02 at 102.00 A3*** $ 1,216,889 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 102.00 A3 943,994 3,505 7.250%, 3/01/24 9/02 at 102.00 A3 3,591,679 District of Columbia, University Revenue Bonds, Georgetown University Issue, Series 2001A: 14,105 0.000%, 4/01/24 4/11 at 47.66 AAA 3,945,169 7,625 0.000%, 4/01/25 4/11 at 44.82 AAA 2,002,935 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.4% 4,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 4,141,720 5.750%, 10/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.7% 8,000 George L. Smith II World Congress Center Authority, Georgia, 7/10 at 101.00 AAA 8,140,560 Refunding Revenue Bonds (Domed Stadium Project), Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.8% 2,250 Hawaii Department of Budget and Finance, Special Purpose 1/09 at 101.00 AAA 2,400,660 Revenue Bonds (Hawaii Electric Company, Inc. and Subsidiaries Project), Series 1999D, 6.150%, 1/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.3% 905 Idaho Housing and Finance Association, Single Family Mortgage 7/06 at 102.00 Aa1 982,902 Bonds, 1996 Series E, 6.350%, 7/01/14 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 34.9% 3,000 City of Chicago, Illinois, General Obligation Bonds (Central Public 7/02 at 101.50 AAA 3,071,580 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 2,548,893 16,670 0.000%, 1/01/26 No Opt. Call AAA 4,337,201 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 2,314,150 10,000 0.000%, 12/01/20 No Opt. Call AAA 3,545,200 9,900 0.000%, 12/01/24 No Opt. Call AAA 2,718,540 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 5,000,550 10,000 0.000%, 12/01/23 No Opt. Call AAA 2,930,300 1,010 Chicago Public Building Commission, Illinois, Building Revenue No Opt. Call AAA 1,180,357 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 102.00 AAA 12,625,730 Bonds, Series 1995, 5.125%, 1/01/25 12,130 City of Chicago, Illinois, Senior Lien Water Revenue Bonds, No Opt. Call AAA 13,163,597 Series 2001, 5.750%, 11/01/30 7,065 Town of Cicero, Cook County, Illinois, General Obligation Tax 12/04 at 102.00 N/R*** 7,977,798 Increment Bonds, Series 1995A, 8.125%, 12/01/12 (Pre-refunded to 12/01/04) 600 Illinois Development Finance Authority, Multifamily Housing Bonds 7/02 at 105.00 AAA 630,660 (FHA-Insured Mortgage Loans - Affordable Housing Preservation Foundation Project), Series 1992B-1, 7.650%, 7/01/07 5,270 Illinois Development Finance Authority, Multifamily Housing Bonds 7/02 at 105.00 AAA 5,539,982 (FHA-Insured Mortgage Loans - Affordable Housing Preservation Foundation Project), Series 1992B-2, 7.650%, 12/31/31 7,400 Illinois Health Facilities Authority, Revenue Bonds (Trinity 7/02 at 102.00 Baa2*** 7,612,232 Medical Center), Series 1992, 7.000%, 7/01/12 (Pre-refunded to 7/01/02) 4,505 Illinois Housing Development Authority, Section 8 Elderly Housing 9/02 at 102.00 A 4,603,795 Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 470 Illinois Housing Development Authority, Section 8 Elderly Housing 1/03 at 102.00 A*** $ 493,909 Revenue Bonds (Morningside North Development), Series 1992D, 6.600%, 1/01/07 (Pre-refunded to 1/01/03) 1,500 State of Illinois, General Obligation Bonds (Illinois FIRST Program), 2/12 at 100.00 AAA 1,580,295 Series 2002, 5.500%, 2/01/17 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 3,881,613 9,400 0.000%, 12/15/18 No Opt. Call AAA 3,838,772 10,775 0.000%, 12/15/24 No Opt. Call AAA 3,001,269 2,000 Onterie Center Housing Finance Corporation (An Illinois Not For 7/02 at 102.00 AAA 2,050,760 Profit Corporation), Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage Loan - Onterie Center Project), Series 1992A, 7.050%, 7/01/27 1,440 Village of Sugar Grove, Kane County, Illinois, Waterworks and 5/02 at 102.00 N/R 1,468,872 Sewerage Refunding Revenue Bonds, Series 1992, 7.500%, 5/01/17 4,475 Town of Wood River, Madison County, Illinois, Wood River 2/04 at 102.00 N/R 3,670,753 Township Hospital General Obligation Bonds (Alternate Revenue Source), Series 1993, 6.625%, 2/01/14 4,650 Town of Wood River, Madison County, Illinois, Wood River Township 2/04 at 102.00 N/R 3,773,010 Hospital General Obligation Tort Immunity Bonds, Series 1993, 6.500%, 2/01/14 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 6.3% 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 2,666,545 7,980 0.000%, 1/15/22 No Opt. Call AAA 2,671,624 6,180 0.000%, 1/15/23 No Opt. Call AAA 1,945,464 29,255 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA 8,108,023 General Obligation Bonds, Series 1999E, 0.000%, 2/01/25 2,860 PHM Elementary/Middle School Building Corporation, No Opt. Call A 3,188,271 St. Joseph County, Indiana, First Mortgage Bonds, Series 1994, 6.300%, 1/15/09 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.6% 1,655 Iowa Student Loan Liquidity Corporation, Student Loan Revenue 12/02 at 102.00 Aaa 1,706,603 Bonds, Senior Series B, 5.750%, 12/01/06 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.2% 1,110 City of Hutchinson, Kansas, Single Family Mortgage Revenue 6/02 at 103.00 Aa3 1,144,099 Refunding Bonds, Series 1992, 8.875%, 12/01/12 6,440 Wyandotte County/Kansas City Unified Government, Kansas, No Opt. Call AAA 2,381,319 Sales Tax Special Obligation Revenue Bonds (Kansas International Speedway Corporation Project), Series 1999, 0.000%, 12/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.7% 5,000 Kentucky Rural Economic Development Authority, Economic 7/02 at 102.00 N/R 5,070,800 Development Project Revenue Bonds (Donnelly Corporation Project), Series 1992, 8.125%, 7/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.5% 1,310 Louisiana Housing Finance Agency, Mortgage Revenue Bonds 9/05 at 103.00 AAA 1,399,853 (GNMA Collateralized Mortgage Loan - St. Dominic Assisted Care Facility), Series 1995, 6.850%, 9/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 2.9% 7,965 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A2 8,475,079 Student Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 2.1% 6,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB- 6,195,240 Bonds (Woodside Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03) Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.5% Massachusetts Municipal Wholesale Electric Company, Power Supply System Revenue Bonds, 1987 Series A: $ 5 8.750%, 7/01/18 (Pre-refunded to 1/01/03) 1/03 at 100.00 Aaa $ 5,231 5 8.750%, 7/01/18 (Pre-refunded to 1/01/04) 1/04 at 100.00 Aaa 5,509 5 8.750%, 7/01/18 (Pre-refunded to 7/01/04) 7/04 at 100.00 Aaa 5,656 5 8.750%, 7/01/18 (Pre-refunded to 7/01/05) 7/05 at 100.00 Aaa 5,747 3,875 Massachusetts Health and Educational Facilities Authority, 2/04 at 102.00 Aa2*** 4,189,456 Revenue Refunding Bonds (FHA-Insured Project), Youville Hospital Issue, Series B, 6.000%, 2/15/25 (Pre-refunded to 2/15/04) 2,000 Massachusetts Housing Finance Agency, Rental Housing 7/07 at 101.00 AAA 1,985,820 Mortgage Revenue Bonds, 1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax) 6,780 Massachusetts Water Resources Authority, General Revenue 7/02 at 102.00 AAA 6,988,485 Bonds, 1992 Series A, 6.750%, 7/15/12 (Pre-refunded to 7/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.6% 1,975 Charter Township of Clinton, Macomb County, Michigan, 1998 4/09 at 101.00 AAA 1,731,186 General Obligation Unlimited Tax Police Building Bonds, 4.000%, 4/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 5.7% 7,990 City of Eden Prairie, Minnesota, Multifamily Housing Revenue 12/10 at 103.50 Aaa 8,414,029 Bonds (GNMA Collateralized Mortgage Loan - Lincoln Parc Project), Series 2000A-1, 6.650%, 6/20/42 10,780 Northwest Minnesota Multi-County Housing and Redevelopment 10/04 at 102.00 N/R 8,432,332 Authority, Governmental Housing Revenue Bonds (Pooled Housing Program), Series 1994A, 8.125%, 10/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.1% 8,610 Mississippi Home Corporation, Residual Revenue Capital 3/04 at 41.66 Aaa 3,352,217 Appreciation Bonds, Series 1992-I, 0.000%, 9/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.5% 1,590 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 1,588,569 Bonds (SSM Healthcare), Series 2001A, 5.250%, 6/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.9% 2,830 City of Grand Island, Nebraska, Electric System Revenue Bonds, 9/02 at 100.00 A+*** 3,073,663 1977 Series, 6.100%, 9/01/12 2,350 Nebraska Higher Education Loan Program Inc., Senior Subordinate No Opt. Call AAA 2,560,137 Bonds, Series A-5B, 6.250%, 6/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 2.0% 690 New Hampshire Municipal Bond Bank, Educational Institutions No Opt. Call N/R 705,842 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 101.00 Aaa 5,148,400 Revenue Bonds (Countryside Limited Partnership - Countryside Project), 1994 Issue Remarketed, 6.100%, 7/01/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 11.8% 1,000 City of New York, New York, General Obligation Bonds, No Opt. Call A 1,089,600 Fiscal 1995 Series A, 7.000%, 8/01/04 4,000 City of New York, New York, General Obligation Bonds, 2/06 at 101.50 A 4,152,400 Fiscal 1996 Series J1, 5.875%, 2/15/19 80 City of New York, New York, General Obligation Bonds, No Opt. Call A 81,490 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 455,679 1,100 6.500%, 8/01/02 No Opt. Call A 1,112,551 4,480 City of New York Transitional Finance Authority, New York, Future 8/07 at 101.00 AA+ 4,474,221 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 101.00 AAA 10,283,300 Facilities Revenue Bonds (1999 Resolution), Series 2000B, 5.500%, 5/15/30 4,805 New York State Medical Care Facilities Finance Agency, 8/02 at 102.00 AAA 4,919,936 Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 4,445 New York State Medical Care Facilities Finance Agency, St. Luke's- 8/03 at 102.00 AAA $ 4,725,391 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 102.00 AAA 4,049,400 Insured Mortgage Revenue Bonds, 1994 Series A Refunding, 5.500%, 8/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 4.6% 10,300 North Carolina Eastern Municipal Power Agency, Power System No Opt. Call AAA 11,489,650 Revenue Bonds, Refunding Series 1993B, 6.000%, 1/01/22 2,130 North Carolina Housing Finance Agency, Multifamily Revenue 7/02 at 102.00 Aa2 2,182,675 Refunding Bonds (1992 Refunding Bond Resolution), Series B, 6.900%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.7% 2,110 Cleveland-Rock Glen Housing Assistance Corporation, Ohio, 7/04 at 103.00 AAA 2,199,717 Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), Series 1994A, 6.750%, 1/15/25 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 5.6% 2,000 Falls Township Hospital Authority, Pennsylvania, Refunding 8/02 at 102.00 AAA 2,142,200 Revenue Bonds (FHA-Insured Mortgage - Delaware Valley Medical Center Project), Series 1992, 7.000%, 8/01/22 6,670 City of Philadelphia, Pennsylvania, Water and Sewer Revenue No Opt. Call AAA 7,167,315 Bonds, Tenth Series, 7.350%, 9/01/04 2,500 Philadelphia Hospitals and Higher Education Facilities Authority, 8/02 at 102.00 A+ 2,580,550 Pennsylvania, Hospital Revenue Bonds (Children's Seashore House), Series 1992A, 7.000%, 8/15/12 4,450 Philadelphia Hospitals and Higher Education Facilities 8/02 at 102.00 A+ 4,593,379 Authority, Pennsylvania, Hospital Revenue Bonds (Children's Seashore House), Series 1992B, 7.000%, 8/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 5.0% 14,800 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 A1 14,838,184 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.7% 2,060 Johnson City Health and Educational Facilities Board, Tennessee, 7/23 at 100.00 AAA 2,036,248 Hospital Revenue Refunding Improvement Bonds (Johnson City Medical Center Hospital), Series 1998C, 5.125%, 7/01/25 (Pre-refunded to 7/01/23) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 10.6% 6,415 Edgewood Independent School District, Bexar County, Texas, 8/11 at 100.00 Aaa 6,170,075 General Obligation Refunding Bonds, Series 2001, 5.125%, 8/15/31 27,355 City of Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 6,389,307 Bonds (Convention Project), Series 2001B, 0.000%, 9/01/27 7,500 City of Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA 8,182,800 Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 2,000 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 1,997,160 General Obligation Bonds, Series 2001, 5.375%, 2/15/26 4,007 General Services Commission (an Agency of the State of Texas), 9/03 at 100.50 A 4,068,894 as Lessee, Participation Interests, 7.500%, 9/01/22 560 Victoria Housing Finance Corporation, Texas, Single Family No Opt. Call Aaa 565,538 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 50.24 AAA 2,085,722 6,945 0.000%, 2/15/24 2/11 at 47.44 AAA 1,955,990 Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.0% $ 1,000 Utah Housing Corporation, Single Family Mortgage Bonds, 2001 7/11 at 100.00 Aa2 $ 1,000,270 Series D, 5.500%, 1/01/21 (Alternative Minimum Tax) 415 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/07 at 102.00 AA 429,840 1996 Series C, 6.450%, 7/01/14 (Alternative Minimum Tax) 1,570 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AA 1,619,110 1997 Series F, 5.750%, 7/01/15 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.1% 3,200 Suffolk Redevelopment and Housing Authority, Virginia, 7/02 at 104.00 Baa2 3,305,824 Multifamily Housing Revenue Refunding Bonds (Chase Heritage at Dulles Project), Series 1994, 7.000%, 7/01/24 (Mandatory put 7/01/04) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 7.5% 6,160 Public Hospital District No. 2, King County, Washington, 6/11 at 101.00 AAA 6,123,410 Limited Tax General Obligation Bonds (Evergreen Healthcare), Series 2001A, 5.250%, 12/01/24 5,000 City of Seattle, Washington, Municipal Light and Power 3/11 at 100.00 AAA 5,412,050 Improvements and Refunding Revenue Bonds, Series 2001, 5.500%, 3/01/12 9,500 State of Washington, General Obligation and General Obligation No Opt. Call AA+ 10,770,435 Refunding Bonds, Series 1992A and AT-6, 6.250%, 2/01/11 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 4.9% 2,985 Silver Lake Sanitary District, Waushara County, Wisconsin, 10/02 at 100.00 N/R*** 3,064,908 Sewer System Mortgage Revenue Bonds, 8.000%, 10/01/18 (Pre-refunded to 10/01/02) 5,950 Wisconsin Housing and Economic Development Authority, 7/02 at 102.00 AA 6,077,092 Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 5,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101.00 AA 5,377,500 Bonds (Marshfield Clinic), Series 1999, 6.250%, 2/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ $ 625,291 Total Investments (cost $436,016,711) - 151.7% 449,500,455 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.4% $ 4,000 Nebraska Educational Finance Authority, Revenue Refunding Bonds VMIG-1 4,000,000 ============= (Creighton University), Variable Rate Demand Bonds, Series 2001, 1.650%, 8/01/31+ -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.6% 7,586,210 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.7)% (165,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $296,086,665 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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.
Statement of ASSETS AND LIABILITIES April 30, 2002 (Unaudited)
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments in municipal securities, at market value $832,853,825 $767,858,025 $1,247,550,382 $449,500,455 Temporary investments in short-term securities, at amortized cost, which approximates market value -- -- -- 4,000,000 Cash 46,373 -- -- 1,237,469 Receivables: Interest 15,622,302 13,877,640 21,395,449 6,697,008 Investments sold 382,069 3,463,848 2,560,244 1,585,119 Other assets 31,097 36,763 41,684 8,248 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 848,935,666 785,236,276 1,271,547,759 463,028,299 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- 1,820,159 10,197,937 -- Payable for investments purchased -- -- 3,169,588 -- Accrued expenses: Management fees 432,522 400,008 634,514 239,485 Other 280,948 220,615 403,931 58,588 Preferred share dividends payable 51,910 49,717 80,833 36,280 Common share dividends payable 2,788,418 2,626,278 4,173,758 1,607,281 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 3,553,798 5,116,777 18,660,561 1,941,634 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value $301,000,000 $279,000,000 $ 452,000,000 $165,000,000 ==================================================================================================================================== Net assets applicable to Common shares $544,381,868 $501,119,499 $ 800,887,198 $296,086,665 ==================================================================================================================================== Common shares outstanding 35,748,959 33,887,474 54,204,488 20,091,018 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.23 $ 14.79 $ 14.78 $ 14.74 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 357,490 $ 338,875 $ 542,045 $ 200,910 Paid-in surplus 498,183,617 471,802,955 754,952,000 279,070,829 Balance of undistributed net investment income 4,971,317 4,834,128 5,418,699 2,538,545 Accumulated net realized gain from investment transactions 981,028 199,174 910,105 792,637 Net unrealized appreciation of investments 39,888,416 23,944,367 39,064,349 13,483,744 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $544,381,868 $501,119,499 $ 800,887,198 $296,086,665 ==================================================================================================================================== 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 ==================================================================================================================================== See accompanying notes to financial statements.
Statement of OPERATIONS Six Months Ended April 30, 2002 (Unaudited)
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 24,105,931 $ 22,262,255 $ 35,507,975 $ 13,806,817 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 2,627,248 2,435,722 3,854,896 1,459,650 Preferred shares - auction fees 373,157 345,884 560,356 204,555 Preferred shares - dividend disbursing agent fees 24,795 24,795 29,753 14,876 Shareholders' servicing agent fees and expenses 35,427 31,016 50,523 18,518 Custodian's fees and expenses 99,674 96,097 185,986 71,276 Directors' fees and expenses 3,548 3,332 5,401 2,232 Professional fees 16,068 12,458 16,449 20,196 Shareholders' reports - printing and mailing expenses 47,644 44,381 67,441 29,621 Stock exchange listing fees 16,089 16,194 24,006 16,592 Investor relations expense 60,444 57,092 92,576 34,741 Other expenses 23,823 23,439 34,498 15,415 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit 3,327,917 3,090,410 4,921,885 1,887,672 Custodian fee credit (12,290) (14,618) (54,213) (23,794) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 3,315,627 3,075,792 4,867,672 1,863,878 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 20,790,304 19,186,463 30,640,303 11,942,939 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain from investment transactions 978,812 200,838 1,327,303 794,521 Change in net unrealized appreciation (depreciation) of investments (19,692,167) (19,474,762) (28,257,039) (12,912,271) - ------------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) from investments (18,713,355) (19,273,924) (26,929,736) (12,117,750) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From undistributed net investment income (2,001,078) (1,210,224) (2,315,052) (1,106,303) From accumulated net realized gains from investment transactions (228,928) (1,332,496) (1,401,793) (136,932) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (2,230,006) (2,542,720) (3,716,845) (1,243,235) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ (153,057) $ (2,630,181) $ (6,278) $ (1,418,046) ==================================================================================================================================== See accompanying notes to financial statements.
Statement of CHANGES IN NET ASSETS (Unaudited) INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) ------------------------------------- ------------------------------------ SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 4/30/02 10/31/01 4/30/02 10/31/01 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 20,790,304 $ 41,517,300 $ 19,186,463 $ 40,332,856 Net realized gain from investment transactions 978,812 3,148,534 200,838 6,782,374 Change in net unrealized appreciation (depreciation) of investments (19,692,167) 32,498,102 (19,474,762) 25,265,085 Distributions to Preferred Shareholders: From undistributed net investment income (2,001,078) (9,512,019) (1,210,224) (8,728,935) From accumulated net realized gains from investment transactions (228,928) -- (1,332,496) (208,058) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (153,057) 67,651,917 (2,630,181) 63,443,322 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From undistributed net investment income (16,303,946) (30,394,622) (15,617,979) (29,529,048) From accumulated net realized gains from investment transactions (738,605) -- (5,229,357) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (17,042,551) (30,394,622) (20,847,336) (29,529,048) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (17,195,608) 37,257,295 (23,477,517) 33,914,274 Net assets applicable to Common shares at the beginning of period 561,577,476 524,320,181 524,597,016 490,682,742 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $544,381,868 $561,577,476 $501,119,499 $524,597,016 ==================================================================================================================================== Balance of undistributed net investment income at the end of period $ 4,971,317 $ 1,692,282 $ 4,834,128 $ 2,296,205 ==================================================================================================================================== See accompanying notes to financial statements.
Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
QUALITY INCOME (NQU) PREMIER INCOME (NPF) ------------------------------------- ------------------------------------ SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 4/30/02 10/31/01 4/30/02 10/31/01 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 30,640,303 $ 65,537,662 $ 11,942,939 $ 24,762,519 Net realized gain from investment transactions 1,327,303 6,316,890 794,521 2,200,363 Change in net unrealized appreciation (depreciation) of investments (28,257,039) 35,316,355 (12,912,271) 14,544,248 Distributions to Preferred Shareholders: From undistributed net investment income (2,315,052) (14,251,122) (1,106,303) (5,227,454) From accumulated net realized gains from investment transactions (1,401,793) (148,749) (136,932) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (6,278) 92,771,036 (1,418,046) 36,279,676 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From undistributed net investment income (24,827,440) (49,551,179) (9,502,823) (18,468,147) From accumulated net realized gains from investment transactions (4,915,477) (412,608) (488,220) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (29,742,917) (49,963,787) (9,991,043) (18,468,147) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- 580,883 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (29,749,195) 42,807,249 (11,409,089) 18,392,412 Net assets applicable to Common shares at the beginning of period 830,636,393 787,829,144 307,495,754 289,103,342 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $800,887,198 $830,636,393 $296,086,665 $307,495,754 ==================================================================================================================================== Balance of undistributed net investment income at the end of period $ 5,418,699 $ 1,873,911 $ 2,538,545 $ 1,130,168 ==================================================================================================================================== See accompanying notes to financial statements.
Notes to FINANCIAL STATEMENTS (Unaudited) 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 April 30, 2002, Quality Income (NQU) had outstanding when-issued purchase commitments of $3,169,588. 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 for financial reporting purposes. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its 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. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend. Generally, 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. Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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 six months ended April 30, 2002. 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 applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. Change in Accounting Policy As required, effective November 1, 2001, the Funds have adopted the provisions of the new AICPA Audit and Accounting Guide for Investment Companies and began accreting taxable market discount on debt securities. Prior to November 1, 2001, the Funds did not accrete taxable market discount on debt securities until they were sold. The cumulative effect of this accounting change had no impact on the total net assets applicable to Common shares or the Common shares net asset values of the Funds, but resulted in an increase in the cost of securities and a corresponding decrease in net unrealized appreciation based on securities held by the Funds on November 1, 2001, as follows: INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - -------------------------------------------------------------------------------- $793,986 $179,894 $47,209 $74,795 ================================================================================ The effect of this change for the six months ended April 30, 2002, was to increase investment income with a corresponding decrease in net unrealized appreciation as follows: INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - -------------------------------------------------------------------------------- $75,660 $59,501 $43,539 $10,036 ================================================================================ The Statement of Changes in Net Assets and Financial Highlights for the prior periods have not been restated to reflect this change in presentation. Classification and Measurement of Redeemable Securities Effective November 1, 2001, the Funds have adopted the classification requirement of EITF D-98, Classification and Measurement of Redeemable Securities. EITFD-98 requires that Preferred shares, at liquidation value, be presented separately in the Statement of Assets and Liabilities. Accordingly, certain reclassifications have been made to the financial statements and financial highlights for all prior periods presented. The adoption of EITF D-98 had no impact on the Funds' Common share net asset values. 2. FUND SHARES There were no share transactions for any of the Funds during the six months ended April 30, 2002. During the fiscal year ended October 31, 2001, Premier Income (NPF) had 39,069 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. 3. DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on June 3, 2002, to shareholders of record on May 15, 2002, as follows: INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - -------------------------------------------------------------------------------- Dividend per share $.0780 $.0775 $.0770 $.0800 ================================================================================ 4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term securities for the six months ended April 30, 2002, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ---------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $26,915,643 $70,864,144 $258,949,630 $40,600,256 Short-term securities 3,000,000 14,000,000 34,200,000 30,265,000 Sales and maturities: Long-term municipal securities 20,252,356 77,808,898 251,168,199 47,718,428 Short-term securities 5,000,000 14,000,000 34,200,000 26,265,000 ========================================================================================
At April 30, 2002, 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) - -------------------------------------------------------------------------------- $792,328,195 $743,679,188 $1,208,809,585 $439,931,880 ================================================================================ 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments for federal income tax purposes at April 30, 2002, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - ------------------------------------------------------------------------------------------------ Gross unrealized: appreciation $48,855,346 $33,228,135 $ 49,134,711 $20,226,985 depreciation (8,329,716) (9,049,298) (10,393,914) (6,658,410) - ------------------------------------------------------------------------------------------------ Net unrealized appreciation $40,525,630 $24,178,837 $ 38,740,797 $13,568,575 ================================================================================================
Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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 (including net assets attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) 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 management 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. INVESTMENT COMPOSITION At April 30, 2002, the revenue sources by municipal purpose, expressed as a percent of total investments, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME (NQM) (NQS) (NQU) (NPF) - --------------------------------------------------------------------------------------------------------- Consumer Staples 5% 4% 4% 3% Education and Civic Organizations 5 1 3 8 Healthcare 11 15 9 5 Housing/Multifamily 7 7 5 14 Housing/Single Family 6 11 5 5 Tax Obligation/General 12 9 15 12 Tax Obligation/Limited 9 11 9 15 Transportation 13 12 14 1 U.S. Guaranteed 14 10 15 20 Utilities 7 12 11 6 Water and Sewer 6 9 8 Other 2 2 1 3 - -------------------------------------------------------------------------------------------------------- 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 (61% for Investment Quality (NQM), 60% for Select Quality (NQS), 58% for Quality Income (NQU) and 58% for Premier Income (NPF)). For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. Financial HIGHLIGHTS (Unaudited) Financial Highlights (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------------------------------------- ------------------------------- Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== INVESTMENT QUALITY (NQM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2002(a) $15.71 $ .58 $ (.51) $(.06) $(.01) $ -- $ (.46) $(.02) $ (.48) 2001 14.67 1.16 1.00 (.27) -- 1.89 (.85) -- (.85) 2000 14.03 1.21 .66 (.34) -- 1.53 (.89) -- (.89) 1999 16.00 1.21 (1.96) (.24) -- (.99) (.96) -- (.96) 1998 15.77 1.22 .25 (.25) -- 1.22 (.98) (.01) (.99) 1997 15.48 1.25 .30 (.25) -- 1.30 (1.01) -- (1.01) SELECT QUALITY (NQS) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2002(a) 15.48 .57 (.57) (.04) (.04) (.08) (.46) (.15) (.61) 2001 14.48 1.19 .95 (.26) (.01) 1.87 (.87) -- (.87) 2000 14.05 1.22 .47 (.34) -- 1.35 (.92) -- (.92) 1999 15.68 1.22 (1.64) (.24) -- (.66) (.96) -- (.96) 1998 15.48 1.23 .19 (.25) -- 1.17 (.97) -- (.97) 1997 15.12 1.25 .37 (.25) -- 1.37 (1.01) -- (1.01) QUALITY INCOME (NQU) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2002(a) 15.32 .57 (.49) (.04) (.03) .01 (.46) (.09) (.55) 2001 14.53 1.21 .76 (.26) -- 1.71 (.91) (.01) (.92) 2000 14.33 1.28 .21 (.34) -- 1.15 (.95) -- (.95) 1999 15.83 1.27 (1.48) (.25) -- (.46) (1.03) -- (1.03) 1998 15.73 1.27 .12 (.26) -- 1.13 (1.03) -- (1.03) 1997 15.44 1.29 .29 (.26) -- 1.32 (1.03) -- (1.03) PREMIER INCOME (NPF) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2002(a) 15.31 .59 (.60) (.06) (.01) (.08) (.47) (.02) (.49) 2001 14.42 1.23 .84 (.26) -- 1.81 (.92) -- (.92) 2000 14.24 1.26 .21 (.34) -- 1.13 (.95) -- (.95) 1999 15.76 1.22 (1.51) (.24) -- (.53) (.97) -- (.97) 1998 15.62 1.22 .17 (.25) -- 1.14 (1.00) -- (1.00) 1997 15.38 1.25 .31 (.24) (.01) 1.31 (1.03) (.04) (1.07) ==================================================================================================================================== Total Returns ------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ================================================================================ INVESTMENT QUALITY (NQM) - -------------------------------------------------------------------------------- Year Ended 10/31: 2002(a) $ -- $15.23 $14.4800 .81% .02% 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: 2002(a) -- 14.79 14.2700 .99 (.42) 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: 2002(a) -- 14.78 14.0300 (.28) .11 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: 2002(a) -- 14.74 14.2500 (.64) (.44) 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 After Credit*** ------------------------ ------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ==================================================================================================== INVESTMENT QUALITY (NQM) - ---------------------------------------------------------------------------------------------------- Year Ended 10/31: 2002(a) $544,382 1.23%* 7.67%* 1.22%* 7.68%* 2% 2001 561,577 1.24 7.56 1.23 7.56 17 2000 524,320 1.24 8.57 1.22 8.59 35 1999 501,508 1.17 7.85 1.16 7.86 16 1998 570,150 1.12 7.66 1.12 7.66 7 1997 559,337 1.13 8.08 1.13 8.08 14 SELECT QUALITY (NQS) - ---------------------------------------------------------------------------------------------------- Year Ended 10/31: 2002(a) 501,119 1.23* 7.66* 1.23* 7.66* 9 2001 524,597 1.24 7.89 1.23 7.89 28 2000 490,683 1.22 8.67 1.21 8.68 30 1999 476,102 1.17 8.07 1.16 8.08 27 1998 529,774 1.14 7.87 1.14 7.87 7 1997 519,770 1.15 8.22 1.15 8.22 10 QUALITY INCOME (NQU) - ---------------------------------------------------------------------------------------------------- Year Ended 10/31: 2002(a) 800,887 1.23* 7.67* 1.22* 7.68* 20 2001 830,636 1.21 8.05 1.21 8.06 30 2000 787,829 1.21 8.95 1.20 8.95 23 1999 776,845 1.17 8.27 1.16 8.27 13 1998 851,408 1.13 8.08 1.13 8.08 19 1997 838,536 1.15 8.35 1.15 8.35 9 PREMIER INCOME (NPF) - ---------------------------------------------------------------------------------------------------- Year Ended 10/31: 2002(a) 296,087 1.28* 8.06* 1.26* 8.07* 9 2001 307,496 1.28 8.25 1.26 8.26 14 2000 289,103 1.27 8.84 1.26 8.85 9 1999 285,509 1.19 7.98 1.18 7.99 11 1998 314,149 1.15 7.80 1.15 7.80 19 1997 308,807 1.17 8.14 1.17 8.14 5 ==================================================================================================== Municipal Auction Rate Cumulative Preferred Stock at End of Period --------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ======================================================== INVESTMENT QUALITY (NQM) - -------------------------------------------------------- Year Ended 10/31: 2002(a) $301,000 $25,000 $70,214 2001 301,000 25,000 71,643 2000 301,000 25,000 68,548 1999 301,000 25,000 66,654 1998 250,000 25,000 82,015 1997 250,000 25,000 80,934 SELECT QUALITY (NQS) - -------------------------------------------------------- Year Ended 10/31: 2002(a) 279,000 25,000 69,903 2001 279,000 25,000 72,007 2000 279,000 25,000 68,968 1999 279,000 25,000 67,661 1998 240,000 25,000 80,185 1997 240,000 25,000 79,143 QUALITY INCOME (NQU) - -------------------------------------------------------- Year Ended 10/31: 2002(a) 452,000 25,000 69,297 2001 452,000 25,000 70,942 2000 452,000 25,000 68,575 1999 452,000 25,000 67,967 1998 400,000 25,000 78,213 1997 400,000 25,000 77,408 PREMIER INCOME (NPF) - -------------------------------------------------------- Year Ended 10/31: 2002(a) 165,000 25,000 69,862 2001 165,000 25,000 71,590 2000 165,000 25,000 68,804 1999 165,000 25,000 68,259 1998 140,000 25,000 81,098 1997 140,000 25,000 80,144 ======================================================== * Annualized. ** 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 Common share Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in Common share 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. (a) For the six months ended April 30, 2002. 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 P.O. Box 660086 Dallas, TX 75266-0086 (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 six-month period ended April 30, 2002. 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. Logo: NUVEEN Investments Nuveen Investments o 333 West Wacker Drive Chicago, IL 60606 o www.nuveen.com FSA-3-4-02 -----END PRIVACY-ENHANCED MESSAGE-----