-----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, Kywe+pautcxsJyhbk75cmD2aV8p5wOvWbLePeB/70UepjSZxFuFwDzUSrundxEQb hr5Xxwp5e8/izX2JxFUoMQ== 0000891804-96-000205.txt : 19960702 0000891804-96-000205.hdr.sgml : 19960702 ACCESSION NUMBER: 0000891804-96-000205 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960430 FILED AS OF DATE: 19960701 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN PREMIER MUNICIPAL INCOME FUND INC CENTRAL INDEX KEY: 0000880845 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06456 FILM NUMBER: 96589263 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 N-30D 1 NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. (NPF) Nuveen Exchange-Traded Funds Providing tax-free income to help you live your dreams. INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) QUALITY INCOME (NQU) PREMIER INCOME (NPF) SEMIANNUAL REPORT/APRIL 30, 1996 Photographic image of man seating at table with woman behind him. CONTENTS 3 Dear shareholder 5 Answering your questions 10 Fund performance 12 Commonly used terms 14 Portfolio of investments 47 Statement of net assets 48 Statement of operations 49 Statement of changes in net assets 51 Notes to financial statements 60 Financial highlights Dear shareholder Photograpic image Richard Franke, Chairman of Nuveen. "Over time, municipal bonds have proven to be a valuable and dependable component of successful invest ment programs." The past 12 months provided a welcome rebound for investors in municipal bonds, reversing the declines of a year earlier. As long-term interest rates fell in the last half of 1995, the Nuveen funds continued to provide attractive levels of dividend income. Currently, we are experiencing a certain degree of uncertainty in the markets, as the economy continues to send mixed signals about the pace of growth and the potential for increased inflation. Although there is no solid evidence that inflation will reappear, the mere specter has been enough to keep some investors on the sidelines. The good news is that the Federal Reserve remains committed to a policy of low inflation and modest economic growth, which should bode well for the bond markets and bond investors. During the first part of 1996, investors found opportunities to purchase higher yielding bonds with strong credit quality. Tax-free securities--and the taxable-equivalent yields they offer--are bringing investors back to the bond market. Diminished concerns about a flat tax and other tax reform proposals that had potential implications for tax-free investments have also bolstered interest in municipal bonds and bond funds. Municipal bond funds continue to be a prudent way to invest for the long term, offering investors quality and an attractive source of tax-free income. As of April 30, 1996, the current annualized yield on share price for the exchange-traded funds covered in this report ranged from 6.87% to 6.96%. To match these yields, an investor in the 36% federal income tax bracket would have had to earn at least 10.73% on taxable alternatives. Without question, taxable yields at this level on investments of comparable quality can be difficult to achieve in today's markets. With the strength of the bond market last year, these funds enjoyed a recovery in share prices over the levels of April 30, 1995, as well as attractive total returns. The 12-month total returns on net asset value ranged from 6.56% to 9.13%, equivalent to taxable investments returning 10.59% to 13.11%. As you may know, on June 30, 1996, I will be retiring as chairman and chief executive officer of John Nuveen & Co. Incorporated and as chairman of the board of the Nuveen exchange-traded funds. As I look back over the 41 years I have spent at Nuveen, I'm proud to have been associated with a firm that holds integrity, honesty, and value as the cornerstones of its business. I'm confident that these traditions will continue to be the hallmarks of Nuveen. Over the past few years, I have been working closely with other Nuveen managers to ensure that the company and the funds continue to be guided by strong and talented management. Timothy R. Schwertfeger, who has been with Nuveen since 1977, will succeed me as chief executive officer and chairman of Nuveen. He currently serves as executive vice president of Nuveen and president of the board of directors for the Nuveen exchange-traded funds. I am very confident in his abilities and those of the entire Nuveen management team. The management transition has been well planned, and it will have no effect on portfolio management or the way dividends are set. Our focus will continue to be on building shareholder value, providing research-oriented management, and maintaining our leadership role in the municipal bond market. With this focus, we anticipate many more years of progress and accomplishment for our shareholders and our firm. As this will be the last letter for these funds in which I have the opportunity to address you, I'd like to take this occasion to thank you for selecting Nuveen exchange-traded funds. We appreciate your investment in Nuveen, and we look forward to reports of continued success in the months ahead. Sincerely, Richard J. Franke Chairman of the Board June 17, 1996 Answering your questions Tom Spalding, head of Nuveen's portfolio management team, discusses investment performance and recent factors affecting the municipal market. What are the best measures of fund performance? There are many ways to gauge fund performance, each of which provides certain insights. Total return is generally recognized as one comprehensive measure of performance. We use the term "total return" to refer to a share's appreciation plus reinvested dividend income and capital gain distributions, if applicable. In 1994, total returns for municipal bond funds--and the entire bond market--declined, in one of the most difficult periods for bonds in decades. This was immediately followed by 1995's exceptional market recovery, which resulted in a rebound in total returns. During the first part of 1996, municipal bond funds have continued to provide solid total returns, although at a slightly lower level than during 1995's bull market. The events of these past few years illustrate the importance of considering risk, or variability of returns, when comparing total returns. Nuveen's prudent approach to management protected investors from wide swings in performance by maintaining a higher level of value than peer group funds during 1994's bear market and participating only slightly less in 1995's recovery. Another important measure of fund performance involves assessing whether a fund has met its stated investment goals. At Nuveen, we continue to emphasize our funds' goals of providing dependable tax-free dividends and adhering to a value investing approach. In this regard, the steadiness of dividends over the long term is a good practical measure of success. Photographic image of Tom Spalding, Portfolio Manager of Nuveen. Tom Spalding, head of Nuveen's portfolio management team, answers investors' questions on developments in the municipal market. Some funds' discounts seem to have narrowed over the past few months. What caused this improvement? To understand the reasons for this improvement, it may be helpful to remember that each share has two prices: the net asset value (NAV), which represents the underlying value of the bonds, and the share price, which is the fund's price on the stock exchange. As with other securities, share prices for municipal bond funds change frequently, driven by investors' demand for shares. When a fund's NAV per share is higher than its share price, we say that the shares can be purchased at a discount. In 1995, the recovery of the bond market meant that the net asset values for some funds appreciated more quickly than their share prices, widening discounts for a while. This is not unusual, as the market often takes time to recognize underlying value balanced against the various factors that affect investor decisions, such as sentiment regarding future interest rates, inflation forecasts, the relative strength of the stock market, and legislative and tax outlooks. Over the past few months, investor worries about tax reform--and the potential effect of a flat tax proposal on tax-free investments--have waned somewhat. The combination of higher yields, concerns about the vulnerability of the stock market, and broker recommendations has prompted a greater demand for municipal bonds and bond funds. With increased demand, share prices have risen, resulting in narrower discounts. In fact, some exchange-traded funds are now trading at a premium, that is, their share prices are higher than their NAVs. What caused the dividends of some funds to decline recently? All Nuveen exchange-traded funds are structured to provide an attractive stream of tax-free income. Some of our funds, including the ones covered in this report, use leverage as an additional way to enhance that income stream. To achieve this, a leveraged fund issues preferred as well as common shares; the pre ferred shares pay lower short-term rates to investors looking for short-term liquidity. Proceeds from the sale of preferred shares are used to buy additional bonds, and common shareholders earn extra income from the difference between the long-term rates earned on the bonds in the portfolio and the short-term rates paid to preferred shareholders. As long as short-term rates are lower than those of the bonds in the portfolio, common shareholders receive more income than they would from an unleveraged fund. It is important to remember that leverage can increase NAV volatility as well as investment potential. Also, a sudden rise in interest rates, such as we experienced in 1994, can affect dividends. On average, short-term rates have been higher over the past two years than they were in the early 1990s. This has resulted in higher rates for the preferred shareholders and less income available for common share dividends. As we have seen recently, bond calls can also act to lower dividends. As the Federal Reserve Board made a succession of rate cuts between July 1995 and January 1996, long-term municipal bond yields reacted by declining almost 130 basis points from their position at the beginning of 1995. This lower long-term rate environment caused the call, or early redemption, of many bonds with higher yields. These older bonds have been replaced in some portfolios with the bonds available in the market today, most of which have lower yields. What has been Nuveen's investment approach during this period? Because we believe that a value approach offers investors greater price stability in uncertain markets, Nuveen continues to pursue value investing as the optimal way to meet our investors' objectives. We define value investing as a disciplined approach to security selection and portfolio construction designed to deliver above-market performance by identifying individual bonds with current yields, prices, credit quality, and future prospects that are exceptionally attractive in relation to other bonds in the market. This approach was rewarded over the past year, as we saw many of our portfolio holdings upgraded by the national rating agencies, indicating that our Research Department's judgments about credit quality were on target. As opportunity allowed, we moved to protect current income by investing a larger percentage of our portfolios in non-callable bonds. These bonds cannot be redeemed before maturity, so their yield is assured for the long term even if interest rates continue to decline. As another measure of income protection, we also purchased an increased number of bonds at discounts from their par value. Because these bonds have coupon rates slightly below market levels, they are less likely to be called from our portfolios, assuring more stable yields for our investors. NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. NQM Dividends of NQM have been consistently at an attractive level despite a modest reduction in November, reflecting the effects of bond calls. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 5/09/95 $0.0895 6/13/95 $0.0895 7/12/95 $0.0895 8/11/95 $0.0895 9/13/95 $0.0895 10/11/95 $0.0895 11/13/95 $0.0870 12/13/95 $0.0870 1/10/96 $0.0870 2/13/96 $0.0870 3/13/96 $0.0870 4/11/96 $0.0870 FUND HIGHLIGHTS 4/30/96 Yield 6.96% Taxable-equivalent yield 10.88% Annual total return on NAV 6.56% Taxable-equivalent total return 10.59% Share price $15.00 NAV $15.20 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. NQS Shareholders of NQS have consistently received an above market dividend level, despite the modest reduction in August, reflecting the effects of bond calls. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 5/09/95 $0.0870 6/13/95 $0.0870 7/12/95 $0.0870 8/11/95 $0.0845 9/13/95 $0.0845 10/11/95 $0.0845 11/13/95 $0.0845 12/13/95 $0.0845 1/10/96 $0.0845 2/13/96 $0.0845 3/13/96 $0.0845 4/11/96 $0.0845 FUND HIGHLIGHTS 4/30/96 Yield 6.93% Taxable-equivalent yield 10.83% Annual total return on NAV 7.85% Taxable-equivalent total return 11.86% Share price $14.625 NAV $14.90 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. NQU In line with the Fund's objective of providing attractive, dependable tax-free income, shareholders enjoyed 12 months of steady dividends. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 5/09/95 $0.0855 6/13/95 $0.0855 7/12/95 $0.0855 8/11/95 $0.0855 9/13/95 $0.0855 10/11/95 $0.0855 11/13/95 $0.0855 12/13/95 $0.0855 1/10/96 $0.0855 2/13/96 $0.0855 3/13/96 $0.0855 4/11/96 $0.0855 FUND HIGHLIGHTS 4/30/96 Yield 6.90% Taxable-equivalent yield 10.78% Annual total return on NAV 8.87% Taxable-equivalent total return 12.86% Share price $14.875 NAV $15.18 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. NPF In line with the Fund's objective of providing attractive, dependable tax-free income, shareholders enjoyed 12 months of steady dividends. Shareholders also received a capital gains distribution in December. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 5/09/95 $0.0845 6/13/95 $0.0845 7/12/95 $0.0845 8/11/95 $0.0845 9/13/95 $0.0845 10/11/95 $0.0845 11/13/95 $0.0845 12/13/95 $0.0845 $0.0603 1/10/96 $0.0845 2/13/96 $0.0845 3/13/96 $0.0845 4/11/96 $0.0845 FUND HIGHLIGHTS 4/30/96 Yield 6.87% Taxable-equivalent yield 10.73% Annual total return on NAV 9.13% Taxable-equivalent total return 13.11% Share price $14.75 NAV $15.06 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
Commonly used terms Yield An exchange-traded fund's annualized monthly dividend on a given date (in the case of this report, April 30, 1996) divided by its closing price per share on that date. Taxable equivalent yield The return an investor subject to a given federal income tax rate would need to obtain from a fully taxable investment to equal the fund's stated annualized yield on share price. In this report, this tax rate is assumed to be 36% for shareholders, based on incomes of $121,300-$263,750 for investors filing singly, and $147,700-$263,750 for those filing jointly. Net Asset Value (NAV) The market value of all securities and other assets held by an exchange-traded fund, minus any liabili ties. The NAV per share is the fund's net assets, less the value of its preferred shares, divided by its total number of common shares outstanding. Total return on NAV The percentage change in a fund's NAV per common share for a given period, assuming reinvestment of all dividends and capital gains distributions, if any. Taxable equivalent total return The total return an investor subject to a given federal income tax rate would need to obtain from a fully taxable investment to equal the Fund's stated total return on NAV. Leverage A fund structure that enhances the income produced for common shareholders by a long-term municipal bond fund through the issuance of short-term preferred shares. Preferred shareholders receive short-term tax-free income, while the proceeds can be used to purchase additional long-term bonds, thus increasing the portfolio's income for common shareholders. 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 months ended April 30, 1996. Any future repur chases will be reported to shareholders in the next annual or semiannual report. PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQM)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE ALASKA - 2.5% $ 5,630,000 Alaska Housing Finance Corporation, Insured Mortgage Program, 7.800%, 12/01/30 12/00 at 102 Aa $ 5,786,401 14,850,000 Alaska Housing Finance Corporation, 5.400%, 12/01/13 6/04 at 102 Aa 13,935,240 - ---------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA - 14.6% 22,400,000 California Health Facilities Financing Authority (Kaiser Permanente), 5.600%, 5/01/33 5/03 at 102 Aa3 20,324,192 14,625,000 California Health Facilities Financing Authority (Children's Hospital of Los Angeles), 7.125%, 6/01/21 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 16,482,083 5,700,000 California Public Works Board (Regents of the University of California), 5.500%, 6/01/21 6/03 at 102 Con(A1) 5,191,845 9,740,000 Huntington Park Redevelopment Agency, Single Family Mortgage, 8.000%, 12/01/19 No Opt. Call Aaa 12,238,602 6,640,000 Lancaster Redevelopment Agency, Tax Allocation, 5.700%, 8/01/23 8/03 at 102 Aaa 6,412,447 Loma Linda (Loma Linda University Medical Center): 4,000,000 6.500%, 12/01/18 12/03 at 102 BBB 3,875,640 10,325,000 5.000%, 12/01/22 12/03 at 102 Aaa 8,833,347 7,155,000 Los Angeles Department of Water and Power, 4.500%, 5/15/23 5/03 at 102 Aaa 5,635,850 15,770,000 Ontario Redevelopment Authority, 7.400%, 8/01/25 No Opt. Call Aaa 19,262,582 13,145,000 Perris Single Family Mortgage, Alternative Minimum Tax, 8.200%, 9/01/23 No Opt. Call Aaa 16,709,135 - ---------------------------------------------------------------------------------------------------------------------------------- COLORADO - 1.1% 4,940,000 Castle Pines Metropolitan District, General Obligation, 7.625%, 12/01/15 12/00 at 102 Aaa 5,540,803 3,085,000 City and County of Denver Airport System, Alternative Minimum Tax, 8.000%, 11/15/25 11/01 at 100 Baa 3,435,795 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA - 0.7% 5,215,000 District of Columbia Housing Finance Agency, Alternative Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 5,478,670 - ---------------------------------------------------------------------------------------------------------------------------------- FLORIDA - 5.4% 4,000,000 Hillsborough County Port District (Tampa Port Authority), 8.250%, 6/01/09 12/00 at 102 Baa1 4,636,000 20,000,000 Jacksonville Health Facilities Authority (Daughters of Charity Health System-St. Vincent), 7.500%, 11/01/15 (Pre-refunded to 11/01/00) 11/00 at 102 Aaa 22,691,400 Orange County Housing Finance Authority: 2,955,000 7.500%, 7/01/10 7/00 at 103 Aaa 3,128,754 11,035,000 7.600%, 1/01/24 7/00 at 103 Aaa 11,681,541 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE GEORGIA - 5.3% Municipal Electric Authority of Georgia: $ 5,990,000 8.375%, 1/01/16 1/98 at 102 A $ 6,444,162 5,250,000 8.125%, 1/01/17 1/98 at 102 A 5,615,873 5,000,000 8.375%, 1/01/20 1/97 at 102 A 5,227,500 2,250,000 6.500%, 1/01/20 No Opt. Call A 2,374,830 3,460,000 Atlanta Urban Residential Finance Authority, Single Family Mortgage (GNMA), Alternative Minimum Tax, 8.250%, 10/01/21 10/98 at 103 AAA 3,609,334 10,000,000 Monroe County Development Authority, Pollution Control (Georgia Power Company), 6.750%, 10/01/24 10/99 at 102 A1 10,366,700 7,325,000 Wayne County Development Authority, Solid Waste Disposal (ITT Rayonier Inc.), Alternative Minimum Tax, 8.000%, 7/01/15 1/00 at 102 Baa2 7,785,743 - ---------------------------------------------------------------------------------------------------------------------------------- ILLINOIS - 5.5% 5,000,000 Illinois Health Facilities Authority (ServantCor), 7.875%, 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 BBB+ 5,558,550 3,305,000 Illinois Health Facilities Authority (Riverside Senior Living Center Project), 7.500%, 11/01/20 11/00 at 102 Baa1 3,410,991 7,500,000 Cook County Community College District No. 508, 8.750%, 1/01/07 No Opt. Call Aaa 9,510,975 5,900,000 Madison County Community Unit School District No. 7, General Obligation, 5.850%, 2/01/13 No Opt. Call Aaa 6,022,897 3,585,000 Pekin Multi-Family Housing, 6.875%, 5/01/22 5/03 at 103 AAA 3,730,874 3,010,000 Peoria, Pekin and Waukegan (GNMA), Alternative Minimum Tax, 7.875%, 8/01/22 8/00 at 103 AAA 3,154,691 6,250,000 Regional Transportation Authority, 9.000%, 6/01/07 No Opt. Call Aaa 8,216,000 Southwestern Illinois Development Authority (LaClede Steel Company), Alternative Minimum Tax: 775,000 8.375%, 8/01/08 8/00 at 103 A- 846,827 2,910,000 8.500%, 8/01/20 8/00 at 103 A- 3,193,609 - ---------------------------------------------------------------------------------------------------------------------------------- INDIANA - 0.8% 6,000,000 Delaware County Hospital Authority, 6.625%, 8/01/16 8/01 at 102 Aaa 6,287,160 - ---------------------------------------------------------------------------------------------------------------------------------- KANSAS - 0.9% 5,145,000 Topeka (Sunwest Hotel Corporation Project), Alternative Minimum Tax, 9.500%, 10/01/16 (Pre-refunded to 8/15/16) 8/16 at 100 AAA 6,927,640 - ---------------------------------------------------------------------------------------------------------------------------------- KENTUCKY - 2.2% Kentucky Development Finance Authority (Ashland Hospital Corporation): 1,550,000 9.750%, 8/01/11 (Pre-refunded to 2/01/98) 2/98 at 102 A 1,717,974 950,000 9.750%, 8/01/11 2/98 at 102 A 1,032,964 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE KENTUCKY (CONTINUED) $ 2,435,000 Kentucky Housing Corporation, Alternative Minimum Tax, 8.100%, 1/01/22 7/00 at 102 AAA $ 2,555,192 12,500,000 Jefferson County Pollution Control (Louisville Gas and Electric), 5.900%, 4/15/23 4/05 at 102 Aa2 12,216,125 - ---------------------------------------------------------------------------------------------------------------------------------- LOUISIANA - 6.1% Louisiana Public Facilities Authority (West Jefferson Medical Center): 2,550,000 7.900%, 12/01/15 (Pre-refunded to 12/01/98) 12/98 at 102 Aaa 2,823,615 15,660,000 7.900%, 12/01/15 12/98 at 102 Aaa 17,093,516 5,485,000 Louisiana Public Facilities Authority, Extended Care (Comm-Care Corporation), 11.000%, 2/01/04 No Opt. Call BBB 6,749,786 5,460,000 East Baton Rouge Mortgage Finance Authority, Alternative Minimum Tax, 7.875%, 8/01/23 8/00 at 102 Aaa 5,752,055 11,545,000 Orleans Parish School Board, 9.000%, 2/01/09 No Opt. Call Aaa 15,357,852 - ---------------------------------------------------------------------------------------------------------------------------------- MAINE - 0.7% 5,510,000 Maine Housing Authority, Alternative Minimum Tax, 6.875%, 11/15/23 10/04 at 102 AA- 5,626,702 - ---------------------------------------------------------------------------------------------------------------------------------- MARYLAND - 0.3% 2,000,000 Gaithersburg Economic Development (Asbury Methodist Home), 7.850%, 1/01/20 (Pre-refunded to 1/01/00) 1/00 at 102 N/R 2,257,720 - ---------------------------------------------------------------------------------------------------------------------------------- MASSACHUSETTS - 6.6% 10,125,000 Massachusetts Health and Educational Facilities Authority (Goddard Memorial Hospital), 9.000%, 7/01/15 7/00 at 102 Baa 11,193,998 1,250,000 Massachusetts Housing Finance Agency, Alternative Minimum Tax, 8.100%, 8/01/23 8/99 at 102 BBB+ 1,303,800 Massachusetts Water Resources Authority: 15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 16,892,400 4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 4,485,320 16,250,000 Boston City Hospital (FHA Insured Mortgage), 7.625%, 2/15/21 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 18,231,038 - ---------------------------------------------------------------------------------------------------------------------------------- MINNESOTA- 2.8% 5,000,000 Dakota and Washington Counties Anoka Housing Authority (GNMA), Alternative Minimum Tax, 8.450%, 9/01/19 No Opt. Call Aaa 6,362,650 2,860,000 Hopkins Elderly Housing (St. Therese Southwest, Inc.), 6.500%, 3/01/19 3/04 at 102 AA 2,913,739 11,730,000 St. Paul Housing and Redevelopment Authority, 9.250%, 12/01/97 No Opt. Call A1 12,574,442 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE MISSISSIPPI - 0.6% $ 1,545,000 Mississippi Home Corporation, 9.250%, 3/01/12 9/00 at 103 Aaa $ 1,677,824 2,990,000 Mississippi Housing Finance Corporation, Single Family Mortgage (GNMA), Alternative Minimum Tax, 8.250%, 10/15/18 10/99 at 102 Aaa 3,142,221 - ---------------------------------------------------------------------------------------------------------------------------------- NEBRASKA - 2.1% 3,300,000 Nebraska Higher Education Loan Program, Alternative Minimum Tax, 5.875%, 6/01/14 6/04 at 102 A 3,100,581 13,330,000 Nebraska Investment Finance Authority, Single Family Housing, Alternative Minimum Tax, 6.450%, 3/01/35 3/05 at 101 1/2 AAA 13,421,444 - ---------------------------------------------------------------------------------------------------------------------------------- NEVADA - 0.7% 5,400,000 Nevada General Obligation, Limited Tax, 8.000%, 10/01/15 (Pre-refunded to 10/01/97) 10/97 at 102 Aaa 5,809,644 - ---------------------------------------------------------------------------------------------------------------------------------- NEW MEXICO - 1.2% 9,400,000 Los Alamos County Utility System, 7.750%, 1/01/15 (Pre-refunded to 1/01/97) 1/97 at 102 Baa1 9,819,146 - ---------------------------------------------------------------------------------------------------------------------------------- NEW YORK - 12.6% 10,000,000 New York State Medical Care Facilities Finance Agency (Columbia-Presbyterian), 8.000% 2/15/25 (Pre-refunded to 8/15/97) 8/97 at 102 Aaa 10,716,400 5,000,000 New York State Medical Care Facilities Finance Agency (St. Luke's-Roosevelt Hospital Center), 7.450%, 2/15/29 (Pre-refunded to 2/15/00) 2/00 at 102 Aaa 5,591,950 3,500,000 New York State Mortgage Agency, Homeowner Mortgage, Alternative Minimum Tax, 7.950%, 4/01/22 6/00 at 102 Aa 3,687,145 Dormitory Authority of the State of New York (City University): 5,890,000 9.250%, 7/01/98 No Opt. Call Baa1 6,462,155 14,235,000 8.750%, 7/01/02 No Opt. Call Baa1 16,713,029 10,000,000 7.875%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,412,700 Dormitory Authority of the State of New York (State University): 7,935,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 8,842,129 1,025,000 7.250%, 5/15/15 5/00 at 102 AAA 1,142,178 6,655,000 New York City Municipal Assistance Corporation, 6.875%, 7/01/07 7/97 at 102 Aa 6,974,107 New York City Municipal Water Finance Authority: 10,200,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 11,464,902 6,395,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 A 6,738,539 5,105,000 6.000%, 6/15/20 6/00 at 100 A 5,031,029 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE NEW YORK (CONTINUED) $ 4,200,000 New York City Industrial Development Agency (American Airlines, Inc.), Alternative Minimum Tax, 8.000%, 7/01/20 1/99 at 102 Baa3 $ 4,457,166 - ---------------------------------------------------------------------------------------------------------------------------------- NORTH CAROLINA - 0.4% 2,795,000 Charlotte FHA-Insured (Double Oaks Apartments), 7.350%, 5/15/26 11/07 at 100 AAA 2,976,340 - ---------------------------------------------------------------------------------------------------------------------------------- OREGON - 1.2% 2,500,000 Oregon Department of General Services, Certificates of Participation, 7.500%, 9/01/15 (Pre-refunded to 9/01/00) 9/00 at 102 Aaa 2,825,525 7,240,000 Northern Wasco County People's Utility District (Bonneville Power Administration), 5.200%, 12/01/24 12/03 at 102 Aa 6,420,939 - ---------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA - 2.7% 8,905,000 Pennsylvania Housing Finance Agency, Single Family Mortgage, Alternative Minimum Tax, 7.650%, 10/01/23 10/00 at 102 AA+ 9,376,253 4,905,000 McKean County Hospital Authority (Bradford Hospital), 8.875%, 10/01/20 10/00 at 102 BBB- 5,737,428 7,040,000 Philadelphia Water and Wastewater System, 5.000%, 6/15/16 6/03 at 100 Aaa 6,257,082 - ---------------------------------------------------------------------------------------------------------------------------------- RHODE ISLAND - 2.0% 10,000,000 Rhode Island Housing and Mortgage Finance Corporation, Alternative Minimum Tax, 8.050%, 4/01/22 10/00 at 102 AA+ 10,469,500 5,000,000 Newport Housing Development Corporation (Broadway-West Broadway Apartments), 6.800%, 8/01/24 6/03 at 100 AAA 5,107,200 - ---------------------------------------------------------------------------------------------------------------------------------- SOUTH CAROLINA - 3.0% 3,475,000 South Carolina State Housing Finance Authority, Alternative Minimum Tax, 7.750%, 7/01/22 7/00 at 102 Aa 3,646,422 19,800,000 Piedmont Municipal Power Agency, 7.250%, 1/01/22 1/00 at 100 A 20,223,918 - ---------------------------------------------------------------------------------------------------------------------------------- TENNESSEE - 0.8% 2,575,000 Tennessee Housing Development Agency, Homeownership Program, Alternative Minimum Tax, 8.125%, 7/01/21 7/98 at 103 Aa 2,599,514 3,975,000 Tennessee Housing Development Agency, Alternative Minimum Tax, 7.825%, 7/01/15 7/12 at 100 Aa 4,062,013 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE TEXAS - 5.1% Brazos River Authority, Pollution Control (Texas Utilities Electric Company), Alternative Minimum Tax: $ 12,110,000 8.250%, 12/01/16 12/96 at 102 Baa2 $ 12,588,587 4,295,000 8.250%, 1/01/19 1/99 at 102 Baa2 4,641,950 2,000,000 8.125%, 2/01/20 2/00 at 102 Baa2 2,190,560 3,500,000 Brazos River Authority, Pollution Control (Texas Utilities Electric Company), 5.500%, 5/01/22 11/03 at 102 Aaa 3,281,950 2,270,000 Cameron County Housing Finance Corporation (GNMA), 7.850%, 3/01/24 9/00 at 103 Aaa 2,426,562 Dallas Housing Corporation (Section 8 Assisted Projects): 1,000,000 7.700%, 8/01/05 8/00 at 102 A 1,072,160 2,000,000 7.850%, 8/01/13 8/00 at 102 A 2,139,880 10,000,000 Harris County Hospital District, 7.400%, 2/15/10 No Opt. Call Aaa 11,792,000 - ---------------------------------------------------------------------------------------------------------------------------------- UTAH - 1.7% Intermountain Power Agency: 9,250,000 7.500%, 7/01/16 7/96 at 102 Aa 9,493,645 3,480,000 7.750%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 102 Aaa 3,573,228 - ---------------------------------------------------------------------------------------------------------------------------------- VERMONT - 0.5% 3,955,000 Vermont Housing Finance Agency, Alternative Minimum Tax, 8.150%, 5/01/25 11/00 at 102 A1 4,168,293 - ---------------------------------------------------------------------------------------------------------------------------------- WASHINGTON - 7.0% 11,320,000 Washington General Obligation, 4.750%, 10/01/13 10/03 at 100 Aa 9,875,228 3,000,000 Washington Health Care Facilities Authority (Franciscan Health System), 7.250%, 7/01/15 7/00 at 102 Aaa 3,267,150 Washington Public Power Supply System Nuclear Project No. 1: 1,745,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,931,192 1,460,000 7.500%, 7/01/15 7/99 at 102 Aa 1,576,055 2,000,000 8.000%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 2,291,920 5,650,000 Washington Public Power Supply System Nuclear Project No. 2, 7.000%, 7/01/12 7/00 at 102 Aa 6,006,854 Washington Public Power Supply System Nuclear Project No. 3: 13,900,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 15,387,161 15,850,000 5.600%, 7/01/15 7/03 at 102 Aaa 15,002,658 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE WISCONSIN - 0.4% $ 3,145,000 Wisconsin Housing and Economic Development Authority, Home Ownership, 7.600%, 3/01/15 9/99 at 102 Aa $ 3,311,212 - ---------------------------------------------------------------------------------------------------------------------------------- PUERTO RICO - 0.4% 3,450,000 Puerto Rico Highway and Transportation Authority, 5.500%, 7/01/19 7/03 at 101 1/2 A 3,168,686 - ---------------------------------------------------------------------------------------------------------------------------------- $721,420,000 Total Investments - (cost $725,084,406) - 97.9% 771,798,925 - ---------------------------------------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.5% $ 300,000 Chicago O'Hare International Airport (American Airlines, Inc.), Variable Rate Demand Bonds, 4.100%, 12/01/17+ P-1 300,000 2,000,000 Jackson County Pollution Control Refunding (Chevron USA Inc.), Series 1993, Variable Rate Demand Bonds, 4.000%, 6/01/23+ P-1 2,000,000 400,000 Massachusetts Dedicated Income Tax, Variable Rate Demand Bonds, 3.900%, 12/01/97+ VMIG-1 400,000 1,100,000 Metropolitan Nashville Airport Authority, Special Facilities (American Airlines), Variable Rate Demand Bonds, 4.050%, 10/01/12+ A-1+ 1,100,000 - ---------------------------------------------------------------------------------------------------------------------------------- $ 3,800,000 Total Temporary Investments - 0.5% 3,800,000 - ---------------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 12,652,234 - ---------------------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $788,251,159 - ------------------------------------------------------------------------------------------------------------------- NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 52 $420,449,783 54% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 138,301,286 18 PORTFOLIO OF A+ A1 4 32,301,280 4 INVESTMENTS A, A- A, A2, A3 15 67,928,532 9 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 17 110,560,324 14 TEMPORARY Non-rated Non-rated 1 2,257,720 1 INVESTMENTS): - ------------------------------------------------------------------------------------------------------------------- TOTAL 108 $771,798,925 100% * 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. N/R - Investment is not rated. Con. Rating is conditional. Bonds for which the security depends upon the completion of some act or the fulfillment of some condition are rated conditionally. These are bonds secured by (a) earnings by projects under construction, (b) earnings of projects unseasoned in operation experience, (c) rentals which begin when facilities are completed, or (d) payments to which some other limiting condition attaches. Parenthetical rating denotes probable credit stature upon completion of construction or elimination of basis of condition. + The 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.
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. (NQS)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE ALABAMA - 0.4% $ 2,900,000 Arab Water Works Board, 7.050%, 8/01/16 8/01 at 102 Aaa $ 3,195,568 - ---------------------------------------------------------------------------------------------------------------------------------- ARKANSAS - 1.5% 5,340,000 Arkansas Development Finance Authority, Single Family Housing, 8.000%, 8/15/11 8/01 at 103 Aa 5,750,753 4,500,000 Little Rock Hotel and Restaurant, Gross Receipts Tax, 7.375%, 8/01/15 No Opt. Call A 5,152,500 - ---------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA - 5.7% 3,200,000 California Department of Water Resources (Central Valley Project), 4.875%, 12/01/27 12/03 at 101 Aa 2,651,584 4,000,000 California Statewide Communities Development Authority (Sisters of Charity Leavenworth), Certificates of Participation, 5.000%, 12/01/23 12/03 at 102 Aa 3,362,320 7,000,000 Los Angeles Department of Water and Power, Electric Plant, 5.375%, 9/01/23 9/03 at 102 Aa 6,315,540 6,710,000 Los Angeles Department of Water and Power, Waterworks System, 4.500%, 5/15/11 5/03 at 102 Aa 5,772,546 21,800,000 Los Angeles County Transportation Commission, Sales Tax, 6.750%, 7/01/20 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 24,314,848 - ---------------------------------------------------------------------------------------------------------------------------------- COLORADO - 6.1% Denver City and County Airport System, Alternative Minimum Tax: 5,000,000 7.750%, 11/15/21 11/01 at 102 Baa 5,485,450 12,150,000 6.750%, 11/15/22 11/02 at 102 Baa 12,318,399 20,000,000 8.750%, 11/15/23 11/01 at 102 Baa 23,803,600 2,905,000 Jefferson County, Single Family Housing, 8.875%, 10/01/13 4/01 at 103 Aaa 3,129,673 - ---------------------------------------------------------------------------------------------------------------------------------- CONNECTICUT - 2.4% Connecticut Development Authority (Alzheimer's Resource Center): 7,500,000 10.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 103 N/R 9,306,075 7,885,000 7.250%, 8/15/21 8/04 at 102 N/R 8,073,136 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA - 0.2% 1,615,000 District of Columbia Housing Finance Agency, Alternative Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 1,696,654 - ---------------------------------------------------------------------------------------------------------------------------------- FLORIDA - 3.3% Jacksonville Electric Authority: 4,500,000 7.500%, 10/01/02 (Pre-refunded to 10/01/97) 10/97 at 101 1/2 Aaa 4,791,870 14,250,000 6.750%, 10/01/21 (Pre-refunded to 10/01/00) 10/00 at 101 1/2 Aaa 15,681,840 4,000,000 Orlando-Orange County Expressway, 5.125%, 7/01/20 7/03 at 102 Aaa 3,591,280 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE GEORGIA - 0.4% $ 2,690,000 Atlanta Urban Residential Finance Authority, Single Family Mortgage (GNMA), Alternative Minimum Tax, 8.250%, 10/01/21 10/98 at 103 AAA $ 2,806,100 - ---------------------------------------------------------------------------------------------------------------------------------- HAWAII - 2.5% 16,000,000 Hawaii Department of Budget and Finance (Kapiolani Health Care System), 7.650%, 7/01/19 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 18,399,680 - ---------------------------------------------------------------------------------------------------------------------------------- ILLINOIS - 5.2% Illinois Development Finance Authority, Multi-Family Housing: 775,000 7.650%, 7/01/07 1/02 at 105 AAA 858,522 6,780,000 7.650%, 12/31/31 1/02 at 105 AAA 7,388,776 10,875,000 Illinois Educational Facilities Authority (The University of Chicago), 5.700%, 12/01/25 12/03 at 102 Aaa 10,148,333 1,585,000 Illinois Housing Development Authority, Multi-Family Housing, 7.400%, 7/01/23 7/01 at 102 A1 1,647,132 Chicago General Obligation: 14,605,000 5.625%, 1/01/23 1/03 at 102 Aaa 13,759,371 5,000,000 5.125%, 1/01/25 1/06 at 102 Aaa 4,382,750 - ---------------------------------------------------------------------------------------------------------------------------------- INDIANA - 3.5% 5,060,000 Indiana Office Building Commission, 8.750%, 7/01/12 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 5,444,560 8,640,000 Avon Community School Building Corporation, 5.500%, 1/01/16 1/04 at 101 Aaa 8,130,067 5,345,000 Beacon Heights Housing Development Corporation, Multi-Family Housing, 7.625%, 2/01/21 6/01 at 100 AAA 5,634,485 5,770,000 Fremont Middle School Building Corporation, 5.250%, 1/15/13 1/04 at 101 Aaa 5,423,973 1,135,000 Michigan City Housing Development Corporation, Multi-Family Housing, 7.625%, 2/01/21 6/01 at 100 AAA 1,196,472 - ---------------------------------------------------------------------------------------------------------------------------------- KANSAS - 2.7% Merriam (Shawnee Mission Medical Center): 10,095,000 7.250%, 9/01/04 9/01 at 102 A- 10,638,111 8,800,000 7.250%, 9/01/21 9/01 at 102 A- 9,052,736 - ---------------------------------------------------------------------------------------------------------------------------------- KENTUCKY - 0.9% 3,015,000 Lakeland Wesley Village Mortgage, 7.500%, 11/01/21 11/01 at 103 Aa 3,184,262 3,500,000 Louisville-Jefferson County Regional Airport Authority, Alternative Minimum Tax, 5.500%, 7/01/23 7/03 at 102 Aaa 3,229,205 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE LOUISIANA - 0.3% $ 1,855,000 Calcasieu Parish Public Trust Authority, 7.750%, 6/01/12 6/01 at 103 A1 $ 1,991,843 - ---------------------------------------------------------------------------------------------------------------------------------- MASSACHUSETTS - 4.8% 2,000,000 Massachusetts Health and Educational Facilities Authority (Lowell General Hospital), 8.400%, 6/01/11 6/01 at 102 Baa1 2,179,260 Massachusetts Housing Finance Agency, Residential Housing, Alternative Minimum Tax: 2,100,000 8.400%, 8/01/21 8/98 at 102 A1 2,218,398 1,660,000 8.200%, 8/01/27 8/99 at 102 BBB+ 1,753,740 19,025,000 Massachusetts Water Resources Authority, 6.000%, 4/01/20 4/00 at 100 A 18,610,636 4,385,000 Boston Housing Development Corporation (FHA-Insured), 5.500%, 7/01/24 1/04 at 102 Aaa 4,038,190 6,300,000 Somerville Housing Authority (GNMA), 7.950%, 11/20/30 5/00 at 102 AAA 6,708,681 - ---------------------------------------------------------------------------------------------------------------------------------- MICHIGAN - 1.1% 7,890,000 Michigan State Hospital Finance Authority (Detroit Medical Center), 7.500%, 8/15/11 8/01 at 102 A 8,502,501 - ---------------------------------------------------------------------------------------------------------------------------------- MINNESOTA - 1.4% 4,431,644 Chisago County and Stearns County, South Central Multi-County Housing and Redevelopment Authority, Single Family Mortgage (FNMA), Alternative Minimum Tax, 7.050%, 9/01/27 3/04 at 102 27/32 AAA 4,675,650 Dakota, Washington and Stearns Counties, Single Family Mortgage (FNMA), Alternative Minimum Tax: 3,195,000 6.600%, 9/01/17 3/04 at 102 AAA 3,294,844 2,255,000 6.700%, 3/01/21 3/04 at 102 AAA 2,321,793 - ---------------------------------------------------------------------------------------------------------------------------------- MISSISSIPPI - 0.2% 1,485,000 Goodman Housing Development Corporation, Multi-Family Housing, 7.625%, 2/01/22 8/01 at 100 AAA 1,565,532 - ---------------------------------------------------------------------------------------------------------------------------------- NEBRASKA - 1.5% 10,550,000 Nebraska Investment Finance Authority, Single Family Housing, Alternative Minimum Tax, 6.800%, 3/01/35 3/05 at 101 1/2 AAA 10,816,915 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE NEW JERSEY - 2.6% $ 4,420,000 New Jersey Housing and Mortgage Finance Agency, 6.850%, 11/01/06 11/01 at 102 AA+ $ 4,709,156 15,335,000 Salem County Industrial Pollution Control Financing Authority (Public Service Electric and Gas Company), 5.550%, 11/01/33 11/03 at 102 Aaa 14,342,519 - ---------------------------------------------------------------------------------------------------------------------------------- NEW MEXICO - 2.3% 1,780,000 New Mexico Mortgage Finance Authority, Single Family Housing, Alternative Minimum Tax, 7.800%, 3/01/21 9/99 at 102 AA- 1,852,749 14,050,000 Farmington Pollution Control (Southern California Edison Company), 7.200%, 4/01/21 4/01 at 102 Aa3 15,286,681 - ---------------------------------------------------------------------------------------------------------------------------------- NEW YORK - 7.1% 6,000,000 New York State Local Government Assistance Corporation, 7.000%, 4/01/18 (Pre-refunded to 4/01/02) 4/02 at 102 Aaa 6,791,760 1,750,000 New York State Medical Care Facilities Finance Agency (Hospital and Nursing Home), 8.000%, 2/15/28 8/98 at 102 A 1,887,253 New York State Medical Care Facilities Finance Agency (Mental Health Services Facilities): 1,615,000 7.600%, 2/15/06 8/01 at 102 Baa1 1,764,856 1,590,000 7.600%, 8/15/06 8/01 at 102 Baa1 1,737,536 8,050,000 7.625%, 8/15/17 8/01 at 102 Baa1 8,904,910 5,425,000 7.400%, 2/15/18 2/02 at 102 Baa1 5,979,055 3,410,000 New York State Mortgage Agency, Alternative Minimum Tax, 8.000%, 10/01/02 7/97 at 102 Aa 3,559,767 6,000,000 New York State Urban Development Corporation Correctional Capital Facilities, 7.500%, 1/01/18 (Pre-refunded to 1/01/01) 1/01 at 102 Aaa 6,802,560 New York City General Obligation: 4,600,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Aaa 5,462,868 400,000 8.250%, 11/15/10 11/01 at 101 1/2 Baa1 446,108 7,130,000 8.250%, 11/15/15 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Aaa 8,448,194 620,000 8.250%, 11/15/15 11/01 at 101 1/2 Baa1 702,119 - ---------------------------------------------------------------------------------------------------------------------------------- NORTH CAROLINA - 2.3% 18,555,000 North Carolina Eastern Municipal Power Agency, 5.500%, 1/01/17 1/03 at 100 Aaa 17,306,805 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE OHIO - 0.8% Toledo-Lucas County Port Authority, Alternative Minimum Tax: $ 600,000 8.500%, 5/15/00 No Opt. Call N/R $ 615,012 3,450,000 8.500%, 11/15/00 11/96 at 102 N/R 3,586,655 1,410,000 8.400%, 11/15/09 11/00 at 102 N/R 1,459,167 - ---------------------------------------------------------------------------------------------------------------------------------- OKLAHOMA - 5.6% 17,750,000 Oklahoma County Home Finance Authority, Single Family Housing, 8.750%, 7/01/12 7/01 at 102 A1 18,689,330 21,025,000 Tulsa Municipal Airport (AMR Corporation), Alternative Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 22,535,226 - ---------------------------------------------------------------------------------------------------------------------------------- OREGON - 0.5% 3,750,000 Hillsboro Hospital Facility Authority (Tuality Healthcare), 5.750%, 10/01/12 10/04 at 102 BBB+ 3,529,688 - ---------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA - 1.9% 3,000,000 Pennsylvania Higher Education Assistance Agency, Student Loan, Alternative Minimum Tax, 7.150%, 9/01/21 9/01 at 102 Aaa 3,116,400 10,000,000 Philadelphia Water and Sewer, 7.000%, 8/01/18 (Pre-refunded to 8/01/01) 8/01 at 100 AAA 11,066,000 - ---------------------------------------------------------------------------------------------------------------------------------- RHODE ISLAND - 2.8% 4,650,000 Rhode Island Depositors Economic Protection Corporation, Special Obligation, 7.250%, 8/01/21 (Pre-refunded to 8/01/96) 8/96 at 102 Aaa 4,784,246 Rhode Island Housing and Mortgage Finance Corporation, Alternative Minimum Tax: 4,650,000 8.200%, 10/01/17 10/98 at 102 AA+ 4,897,520 10,210,000 8.250%, 10/01/22 10/98 at 102 AA+ 10,652,195 - ---------------------------------------------------------------------------------------------------------------------------------- SOUTH CAROLINA - 0.7% 5,000,000 Oconee County Pollution Control (Duke Power Company), 5.800%, 4/01/14 4/03 at 102 Aa2 4,962,900 - ---------------------------------------------------------------------------------------------------------------------------------- SOUTH DAKOTA - 1.4% 7,920,000 Sioux Falls (Great Plains Hotel Corporation), Alternative Minimum Tax, 8.500%, 11/01/16 (Pre-refunded to 10/15/14) (Mandatory put 10/15/14) 10/14 at 100 AAA 10,138,075 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE TENNESSEE - 2.4% $ 9,985,000 Tennessee Housing Development Agency, Homeownership Program, Alternative Minimum Tax, 7.650%, 7/01/22 7/01 at 102 Aa $ 10,466,377 7,220,000 Metropolitan Government, Nashville and Davidson County General Obligation, 6.150%, 5/15/25 5/02 at 102 Aa 7,327,073 - ---------------------------------------------------------------------------------------------------------------------------------- TEXAS - 8.0% 9,505,000 Austin Water, Sewer and Electric, 14.250%, 11/15/06 (Pre-refunded to 5/15/97) 5/97 at 100 Aaa 10,489,813 Brazos River Authority, Pollution Control (Texas Utilities Electric Company), Alternative Minimum Tax: 6,480,000 8.250%, 1/01/19 1/99 at 102 Baa2 7,003,454 8,580,000 8.125%, 2/01/20 2/00 at 102 Baa2 9,397,502 3,500,000 Comal County Health Facilities Development Corporation (McKenna Memorial Hospital), 7.375%, 1/15/21 1/01 at 102 AAA 3,690,575 14,190,000 El Paso Housing Finance Corporation, Single Family Housing, 8.750%, 10/01/11 4/01 at 103 A 15,400,975 3,385,000 Harrison County Housing Finance Corporation, Single Family Housing, 8.875%, 12/01/11 12/01 at 103 A 3,571,378 2,395,000 Panhandle Regional Housing Finance Corporation, Single Family Mortgage (GNMA), Alternative Minimum Tax, 7.500%, 5/01/24 5/01 at 100 AAA 2,480,023 7,020,000 Winter Garden Housing Finance Corporation (GNMA and FNMA), Alternative Minimum Tax, 6.950%, 10/01/27 4/04 at 103 AAA 7,274,896 - ---------------------------------------------------------------------------------------------------------------------------------- UTAH - 2.9% Intermountain Power Agency: 4,500,000 7.500%, 7/01/16 7/96 at 102 Aa 4,618,530 16,145,000 7.200%, 7/01/19 7/97 at 102 Aa 16,847,792 - ---------------------------------------------------------------------------------------------------------------------------------- WASHINGTON - 10.6% Washington Public Power Supply System Nuclear Project No. 1: 4,000,000 7.400%, 7/01/09 1/00 at 102 Aa 4,366,920 5,000,000 8.000%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 5,729,800 Washington Public Power Supply System, Nuclear Project No. 2: 5,000,000 5.375%, 7/01/11 7/04 at 102 Aa 4,613,900 2,000,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 2,243,340 5,000,000 7.000%, 7/01/12 7/00 at 102 Aa 5,315,800 10,010,000 6.250%, 7/01/12 7/02 at 102 Aa 10,050,140 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE WASHINGTON (CONTINUED) Washington Public Power Supply System, Nuclear Project No. 3: $ 24,060,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00 1/00 at 102 Aaa $ 26,634,179 3,935,000 5.375%, 7/01/15 7/03 at 102 Aa 3,534,811 7,560,000 5.500%, 7/01/17 1/00 at 100 Aa 6,861,607 Seattle Metropolitan Municipality Sewer System: 2,160,000 5.450%, 1/01/16 1/03 at 102 Aaa 2,031,998 3,095,000 5.450%, 1/01/17 1/03 at 102 Aaa 2,906,793 2,490,000 5.450%, 1/01/19 1/03 at 102 Aaa 2,316,920 1,800,000 5.450%, 1/01/20 1/03 at 102 Aaa 1,672,343 - ---------------------------------------------------------------------------------------------------------------------------------- WISCONSIN - 1.7% 11,080,000 Wisconsin Center District, Junior Dedicated Tax, 5.750%, 12/15/27 12/06 at 101 A 10,681,008 2,100,000 Wisconsin Health and Educational Facilities Authority (Wausau Hospitals), 6.700%, 8/15/20 2/01 at 102 Aaa 2,193,240 - ---------------------------------------------------------------------------------------------------------------------------------- $688,396,644 Total Investments - (cost $681,007,027) - 97.7% 720,134,651 - ---------------------------------------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.8% $ 1,700,000 California Statewide Communities Development Authority (St. Joseph Health System), Certificates of Participation, Variable Rate Demand Bonds, 3.450%, 7/01/24+ VMIG-1 1,700,000 1,000,000 Massachusetts Dedicated Income Tax, Series 1990E, Variable Rate Demand Bonds, 3.900%, 12/01/97+ VMIG-1 1,000,000 1,900,000 Metropolitan Nashville Airport Authority, Special Facilities (American Airlines), Variable Rate Demand Bonds, 4.050%, 10/01/12+ A-1+ 1,900,000 50,000 New York City Municipal Water Finance Water and Sewer System Revenue, 1994 G, Variable Rate Demand Bonds, 4.100%, 6/15/24+ VMIG-1 50,000 500,000 North Carolina Medical Care Commission Hospital Pooled Financing (Duke University Hospital), Variable Rate Demand Bonds, 4.150%, 10/01/20+ VMIG-1 500,000 500,000 University of Florida Stadium Capital Improvement, Variable Rate Demand Bonds, 4.150%, 2/01/20+ VMIG-1 500,000 - ---------------------------------------------------------------------------------------------------------------------------------- $ 5,650,000 Total Temporary Investments - 0.8% 5,650,000 - ---------------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 11,446,503 - ---------------------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $737,231,154 - ---------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 49 $334,548,979 47% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 23 146,960,923 20 PORTFOLIO OF A+ A1 4 24,546,703 3 INVESTMENTS A, A- A, A2, A3 9 83,497,098 12 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 15 107,540,903 15 TEMPORARY Non-rated Non-rated 5 23,040,045 3 INVESTMENTS): - ------------------------------------------------------------------------------------------------------------------- TOTAL 105 $720,134,651 100% - ------------------------------------------------------------------------------------------------------------------- * 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. N/R - Investment is not rated. + The 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.
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. (NQU)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE ALASKA - 0.8% $ 2,265,000 Alaska Housing Finance Corporation (Veterans Mortgage Program), 7.125%, 12/01/30 6/01 at 102 Aaa $ 2,348,080 6,750,000 Alaska State Housing Finance Corporation, 6.600%, 12/01/23 (Pre-refunded to 12/01/02) 12/02 at 102 Aa 7,207,515 - ---------------------------------------------------------------------------------------------------------------------------------- ARIZONA - 0.8% 2,510,000 Maricopa County Industrial Development Authority, Single Family Mortgage, 7.500%, 8/01/12 8/01 at 102 Aa 2,626,414 5,715,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 A- 6,366,853 - ---------------------------------------------------------------------------------------------------------------------------------- ARKANSAS - 1.0% 4,825,000 Arkansas Development Finance Authority, Single Family Mortgage, 8.000%, 8/15/11 8/01 at 103 Aa 5,196,139 6,500,000 Arkansas Development Finance Authority, Single Family Mortgage, Alternative Minimum Tax, 6.700%, 7/01/27 7/05 at 102 AAA 6,638,580 - ---------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA - 8.4% 3,000,000 California Health Facilities Financing Authority (Kaiser Permanente), 5.600%, 5/01/33 5/03 at 102 Aa3 2,721,990 4,310,000 California Housing Finance Agency, Home Mortgage, Alternative Minimum Tax, 7.050%, 8/01/27 8/01 at 102 Aa 4,429,732 3,500,000 California Public Works Board (California State University), 6.625%, 10/01/10 10/02 at 102 A 3,719,905 17,000,000 California State Public Works Board, Department of Corrections (California State Prison of Monterey County-Soledad II), 7.000%, 11/01/19 11/04 at 102 A 18,533,230 Brea Public Financing Authority, Tax Allocation: 10,580,000 7.000%, 8/01/15 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 11,926,517 4,420,000 7.000%, 8/01/15 8/01 at 102 Aaa 4,804,982 5,000,000 Los Angeles Community Redevelopment Agency, Tax Allocation (Central Business District), 6.750%, 7/01/10 7/96 at 102 A- 5,076,250 Los Angeles Department of Water and Power: 7,550,000 5.400%, 11/15/31 11/03 at 102 Aa 6,790,772 5,000,000 6.500%, 4/15/32 4/02 at 102 Aa 5,160,950 12,305,000 Northern California Power Agency, 7.150%, 7/01/24 7/98 at 102 A 13,119,099 2,000,000 Redwood City Public Finance Authority, 7.250%, 7/15/11 7/01 at 102 A- 2,154,000 10,000,000 San Diego (San Diego Gas and Electric Company), 5.900%, 9/01/18 9/03 at 102 Aaa 9,870,800 9,190,000 San Jose Financing Authority (Convention Center), 6.400%, 9/01/22 9/01 at 102 A1 9,287,965 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE CALIFORNIA (CONTINUED) $ 3,375,000 Southern California Home Financing Authority, Single Family Mortgage (GNMA and FNMA), Alternative Minimum Tax, 7.350%, 9/01/24 3/01 at 102 AAA $ 3,504,533 - ---------------------------------------------------------------------------------------------------------------------------------- COLORADO - 6.3% 4,690,000 Colorado Housing Finance Authority, Multi-Family Insured Mortgage, 6.900%, 10/01/21 5/96 at 100 Aa 4,692,814 City and County of Denver Airport System, Alternative Minimum Tax: 4,000,000 7.300%, 11/15/00 No Opt. Call Baa 4,346,720 1,500,000 6.350%, 11/15/01 No Opt. Call Baa 1,575,030 4,000,000 7.750%, 11/15/21 11/01 at 102 Baa 4,388,360 12,910,000 8.750%, 11/15/23 11/01 at 102 Baa 15,365,224 9,535,000 8.500%, 11/15/23 11/00 at 102 Baa 10,992,234 17,350,000 8.000%, 11/15/25 11/00 at 102 Baa 19,316,970 4,140,000 8.000%, 11/15/25 11/01 at 100 Baa 4,610,759 4,850,000 7.000%, 11/15/25 11/01 at 100 Baa 4,930,753 5,110,000 Pueblo County (Parkview Episcopal Medical Center), 8.300%, 9/01/11 (Pre-refunded to 9/01/01) 9/01 at 100 Baa1 5,972,772 - ---------------------------------------------------------------------------------------------------------------------------------- FLORIDA - 3.2% 5,250,000 Dade County Industrial Development Authority, Solid Waste (Florida Power and Light Company), Alternative Minimum Tax, 7.150%, 2/01/23 2/01 at 102 A2 5,655,983 Palm Beach County Health Facilities Authority (JFK Medical Center): 8,195,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 BBB 9,205,525 5,675,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 N/R 6,374,784 8,485,000 St. Lucie County, Solid Waste Disposal (Florida Power and Light Company), Alternative Minimum Tax, 7.150%, 2/01/23 2/01 at 102 A2 9,159,642 Tampa Capital Improvement Program: 1,665,000 8.000%, 10/01/02 10/98 at 100 Aa 1,787,611 5,830,000 8.250%, 10/01/18 10/98 at 100 AA 6,222,825 - ---------------------------------------------------------------------------------------------------------------------------------- GEORGIA - 3.2% 9,000,000 Georgia Municipal Electric Authority, 8.125%, 1/01/17 1/98 at 102 A 9,627,210 Clayton County Hospital Authority (Southern Regional Medical Center): 2,900,000 6.500%, 8/01/10 8/01 at 102 Aaa 3,109,119 4,500,000 7.000%, 8/01/13 8/01 at 102 Aaa 4,876,875 3,000,000 Clayton County Housing Authority, 8.125%, 12/01/05 (Mandatory put 12/01/97) No Opt. Call Baa1 3,081,150 15,900,000 Fulton-DeKalb Hospital Authority, 6.900%, 1/01/20 (Pre-refunded to 1/01/01) 1/01 at 102 Aaa 17,650,590 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE ILLINOIS - 7.8% $ 6,635,000 Illinois Development Finance Authority, Multi-Family Housing (Town and Garden Apartments Project), Alternative Minimum Tax, 7.800%, 3/01/06 3/02 at 102 BBB+ $ 6,954,077 14,500,000 Illinois Health Facilities Authority (Northwestern Memorial Hospital), 6.750%, 8/15/11 8/01 at 102 Aa 15,137,275 3,000,000 Illinois Health Facilities Authority (Sherman Hospital), 6.750%, 8/01/21 8/01 at 102 Aaa 3,140,250 5,265,000 Illinois Health Facilities Authority (Rockford Memorial Hospital), 6.000%, 8/15/21 8/01 at 100 Aaa 5,186,973 2,840,000 Illinois Housing Development Authority (Garden House of Maywood), 7.000%, 9/01/18 9/02 at 102 A 2,953,998 Central Lake County Joint Action Water Agency: 6,000,000 7.000%, 5/01/19 5/00 at 102 Aaa 6,629,160 10,000,000 7.000%, 5/01/20 5/01 at 102 Aaa 11,175,700 Chicago O'Hare International Airport (United Airlines): 6,665,000 8.850%, 5/01/18 11/00 at 103 Baa2 7,551,845 7,610,000 8.200%, 5/01/18 5/99 at 103 Baa2 8,250,153 24,430,000 Cook County General Obligation, 6.750%, 11/01/18 (Pre-refunded to 11/01/01) 11/01 at 102 Aaa 27,243,603 - ---------------------------------------------------------------------------------------------------------------------------------- INDIANA - 1.3% 5,905,000 Indiana Health Facilities Financing Authority (Community Hospitals of Indiana), 7.000%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 6,618,619 4,000,000 Indianapolis Local Public Improvement Bond Bank, 6.500%, 2/01/22 2/98 at 100 A+ 4,039,920 5,125,000 Petersburg Pollution Control (Indianapolis Power and Light Company), 6.625%, 12/01/24 12/04 at 102 Aa2 5,463,199 - ---------------------------------------------------------------------------------------------------------------------------------- IOWA - 0.4% 4,500,000 Polk County Insured Health Facilities (Mercy Health Center of Central Iowa), 6.750%, 11/01/15 11/01 at 101 Aaa 4,820,580 - ---------------------------------------------------------------------------------------------------------------------------------- KANSAS - 1.5% Merriam (Shawnee Mission Medical Center): 7,380,000 7.250%, 9/01/11 9/01 at 102 A- 7,713,281 10,000,000 7.250%, 9/01/21 9/01 at 102 A- 10,287,200 - ---------------------------------------------------------------------------------------------------------------------------------- KENTUCKY - 4.4% 3,000,000 Kentucky Development Finance Authority (St. Claire Medical Center), 7.125%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 N/R 3,341,940 10,225,000 Kentucky Housing Corporation, Alternative Minimum Tax, 6.625%, 7/01/26 1/05 at 102 Aaa 10,423,467 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE KENTUCKY (CONTINUED) $ 6,000,000 Boone County Collateralized Pollution Control (Dayton Power and Light Company), 6.500%, 11/15/22 11/02 at 102 Aa3 $ 6,336,600 10,000,000 Danville Multi-City Lease (Louisville and Jefferson County Metropolitan Sewer), 6.800%, 3/01/19 (Pre-refunded to 3/01/02) 3/02 at 102 Aaa 11,186,000 2,965,000 Greater Kentucky Housing Assistance Corporation (FHA-Insured), 7.625%, 1/01/25 1/00 at 102 Aaa 3,140,765 9,100,000 Jefferson County Multi-Family Housing (Cantor Chase Project), 6.750%, 10/01/21 (Mandatory put 10/01/98) 10/96 at 100 Baa1 9,154,600 9,030,000 Owensboro Water System, 6.250%, 9/15/17 9/02 at 100 Aaa 9,269,837 - ---------------------------------------------------------------------------------------------------------------------------------- MARYLAND - 1.8% Maryland Community Development Administration, Department of Housing and Community Development, Alternative Minimum Tax: 13,235,000 7.450%, 4/01/20 4/01 at 102 Aa 13,838,913 4,320,000 7.450%, 4/01/32 4/01 at 102 Aa 4,506,408 3,385,000 Maryland Community Development Administration, Multi-Family Housing, 7.100%, 5/15/28 5/01 at 102 Aa 3,498,161 - ---------------------------------------------------------------------------------------------------------------------------------- MASSACHUSETTS - 4.4% Massachusetts Bay Transportation Authority: 10,225,000 7.000%, 3/01/11 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 11,420,200 19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 21,891,044 15,000,000 Massachusetts Industrial Finance Agency, Resource Recovery (SEMASS Project), 9.000%, 7/01/15 7/01 at 103 N/R 16,267,950 3,300,000 Massachusetts Industrial Finance Agency, Resource Recovery (SEMASS Project), Alternative Minimum Tax, 9.250%, 7/01/15 7/01 at 103 N/R 3,594,426 - ---------------------------------------------------------------------------------------------------------------------------------- MICHIGAN - 3.4% 5,000,000 Michigan Hospital Finance Authority (Detroit Medical Center), 7.500%, 8/15/11 8/01 at 102 A 5,388,150 17,875,000 Michigan Strategic Fund (The Detroit Edison Company), 6.875%, 12/01/21 12/01 at 102 Aaa 19,274,970 8,500,000 Michigan Strategic Fund (Waste Management, Inc.), Alternative Minimum Tax, 6.625%, 12/01/12 12/02 at 102 A1 9,023,345 7,000,000 Grand Rapids Water Supply System, 6.250%, 1/01/11 1/01 at 102 Aaa 7,251,650 - ---------------------------------------------------------------------------------------------------------------------------------- MINNESOTA - 1.0% 4,935,000 Minnesota Housing Finance Agency, Single Family Mortgage, Alternative Minimum Tax, 6.950%, 7/01/26 1/04 at 102 AA+ 5,102,691 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE MINNESOTA (CONTINUED) $ 3,655,000 Dakota and Washington Counties and Anoka Housing Authority (GNMA), Alternative Minimum Tax, 8.450%, 9/01/19 No Opt. Call Aaa $ 4,651,097 2,470,000 Washington County Housing and Redevelopment Authority, Multi-Family Housing (FHA-Insured), Alternative Minimum Tax, 7.650%, 8/01/32 8/01 at 102 AAA 2,630,772 - ---------------------------------------------------------------------------------------------------------------------------------- MISSISSIPPI - 0.6% 3,420,000 Canton Housing Development Corporation (Canton Estates), Multi-Family Mortgage, 7.750%, 8/01/24 No Opt. Call AAA 4,070,176 1,250,000 Charter Mortgage Corporation (Church Garden Project), Multi-Family Mortgage, 7.750%, 8/01/21 8/01 at 100 AAA 1,466,788 1,370,000 Pearl Housing Development Corporation (Rose Garden Project), Multi-Family Mortgage, 7.750%, 8/01/22 2/01 at 100 AAA 1,433,006 - ---------------------------------------------------------------------------------------------------------------------------------- MISSOURI - 1.9% Missouri Health and Educational Facilities Authority (Heartland Health Systems): 3,070,000 7.625%, 10/01/00 10/99 at 102 1/2 BBB+ 3,404,569 6,500,000 8.125%, 10/01/10 10/99 at 102 1/2 BBB+ 7,309,705 Jackson County Industrial Development Authority (Saint Joseph Health Center): 5,730,000 6.500%, 7/01/12 7/02 at 102 Baa1 5,812,627 5,605,000 7.000%, 7/01/22 7/02 at 102 Baa1 5,747,703 - ---------------------------------------------------------------------------------------------------------------------------------- MONTANA - 0.6% 7,000,000 Forsyth Pollution Control (Puget Sound Power and Light Company), 7.050%, 8/01/21 8/01 at 102 Aaa 7,699,860 - ---------------------------------------------------------------------------------------------------------------------------------- NEBRASKA - 1.6% Nebraska Investment Finance Authority, Single Family Mortgage, Alternative Minimum Tax: 11,000,000 6.800%, 3/01/35 3/05 at 101 1/2 AAA 11,278,300 8,000,000 6.450%, 3/01/35 3/05 at 101 1/2 AAA 8,054,880 - ---------------------------------------------------------------------------------------------------------------------------------- NEW HAMPSHIRE - 0.6% 2,625,000 New Hampshire Housing Finance Authority, Single Family Mortgage, Alternative Minimum Tax, 8.500%, 7/01/14 7/98 at 103 Aa 2,770,950 4,660,000 New Hampshire Housing Finance Authority, Single Family Mortgage, 7.100%, 1/01/23 7/01 at 102 Aa 4,863,689 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE NEW JERSEY - 1.1% $ 13,000,000 Camden County Pollution Control Finance Authority (Solid Waste Disposal and Resource Recovery System), 7.250%, 12/01/10 12/01 at 102 BBB+ $ 13,355,030 - ------------------------------------------------------------------------------------------------------------------- NEW YORK - 12.5% 21,075,000 New York Local Government Assistance Corporation, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 24,059,220 4,400,000 New York State Medical Care Finance Agency, 6.200%, 8/15/15 8/05 at 102 Aa 4,377,472 4,250,000 New York State Medical Care Facilities Finance Agency (St. Charles Hospital), 6.300%, 8/15/25 8/05 at 102 Aa 4,285,360 8,000,000 New York State Medical Care Facilities Finance Agency (New York Hospital) (FHA-Insured), 6.500%, 8/15/29 2/05 at 102 Aaa 8,331,600 5,000,000 New York State Medical Care Facilities Finance Agency (Brookdale Hospital Medical Center), 6.850%, 2/15/17 2/05 at 102 Baa 5,160,950 8,000,000 New York State Thruway Authority, 6.000%, 1/01/25 1/05 at 102 Aaa 7,993,760 11,750,000 Dormitory Authority of the State of New York (State University), 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 13,307,815 13,000,000 Dormitory Authority of the State of New York, Educational Facilities (State University), 7.400%, 5/15/01 5/00 at 102 Baa1 14,050,530 8,325,000 Dormitory Authority of the State of New York (Menorah Campus), 7.400%, 2/01/31 8/01 at 102 AA 9,144,347 2,190,000 Niagara Falls Housing and Commercial Rehabilitation Corporation (FHA-Insured), Assisted Project, 7.350%, 8/01/23 8/03 at 100 AA 2,441,084 New York City General Obligation: 5,500,000 3.000%, 8/15/02 No Opt. Call Baa1 4,702,720 14,270,000 6.400%, 8/01/03 8/02 at 101 1/2 Baa1 14,726,925 6,000,000 6.750%, 10/01/17 10/02 at 101 1/2 Baa1 6,093,720 2,090,000 7.000%, 2/01/18 2/02 at 101 1/2 Baa1 2,179,013 5,500,000 7.250%, 8/15/19 8/04 at 101 Baa1 5,885,825 6,750,000 6.625%, 2/15/25 2/05 at 101 Baa1 6,780,105 14,190,000 New York City Municipal Water Finance Authority, 5.875%, 6/15/25 6/05 at 101 Aaa 14,013,335 3,435,000 Penfield-Crown Oak Housing Development Corporation, FHA Insured (Crown-Oak Estates), 7.350%, 8/01/23 2/03 at 100 AAA 3,613,105 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE NORTH CAROLINA - 0.9% $ 10,500,000 North Carolina Eastern Municipal Power Agency, 6.250%, 1/01/03 1/02 at 102 A $ 10,618,545 - ---------------------------------------------------------------------------------------------------------------------------------- OHIO - 1.0% 6,945,000 Ohio Housing Finance Agency, Residential Mortgage, Alternative Minimum Tax, 6.625%, 3/01/26 3/05 at 102 AAA 7,059,593 4,800,000 Butler County Hospital Facilities (Fort Hamilton- Hughes Memorial Hospital), 7.500%, 1/01/10 1/02 at 102 Baa 5,089,584 - ---------------------------------------------------------------------------------------------------------------------------------- OKLAHOMA - 5.2% 17,970,000 Oklahoma County Home Finance Authority, Single Family Mortgage, 8.750%, 7/01/12 7/01 at 102 A1 18,920,972 17,510,000 Pottawatomie County Home Finance Authority, Single Family Mortgage, 8.625%, 7/01/10 No Opt. Call Aaa 22,875,239 10,000,000 Tulsa Municipal Airport Trust (American Airlines), 7.375%, 12/01/20 12/00 at 102 Baa2 10,585,700 10,100,000 Tulsa Municipal Airport (AMRCorporation), Alternative Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 10,825,483 - ---------------------------------------------------------------------------------------------------------------------------------- OREGON - 0.6% 8,125,000 Hillsboro Hospital Facility Authority (Quality Healthcare), 5.750%, 10/01/12 10/04 at 102 BBB+ 7,647,656 - ---------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA - 0.6% Falls Township Hospital Authority (Delaware Valley Medical Center): 4,525,000 6.900%, 8/01/11 8/02 at 102 AAA 4,642,922 3,000,000 7.000%, 8/01/22 8/02 at 102 AAA 3,114,570 - ---------------------------------------------------------------------------------------------------------------------------------- RHODE ISLAND - 0.5% 5,260,000 Rhode Island Housing and Mortgage Finance Corporation, 8.250%, 10/01/08 4/98 at 102 A1 5,557,243 - ---------------------------------------------------------------------------------------------------------------------------------- SOUTH CAROLINA - 0.6% 6,500,000 Lexington County Health Service District, 6.750%, 10/01/18 10/01 at 102 Aaa 6,909,890 - ---------------------------------------------------------------------------------------------------------------------------------- TENNESSEE - 1.3% 4,645,000 Metropolitan Government, Nashville and Davidson County, Water and Sewer System, 7.000%, 1/01/14 5/96 at 102 A1 4,747,980 10,300,000 Metropolitan Nashville Airport Authority, 6.625%, 7/01/07 7/01 at 102 Aaa 11,195,688 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE TEXAS - 6.3% $ 14,360,000 Alliance Airport Authority (American Airlines), Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 $ 15,271,573 Arlington Independent School District, General Obligation: 11,635,000 0.000%, 2/15/11 2/05 at 71 15/16 Aaa 4,756,970 13,985,000 0.000%, 2/15/14 2/05 at 58 11/16 Aaa 4,643,160 5,000,000 Brazos River Authority (Houston Lighting and Power Project), 7.750%, 10/01/15 10/98 at 102 A3 5,362,300 5,600,000 Dallas-Fort Worth International Airport (American Airlines, Inc.), Alternative Minimum Tax, 7.500%, 11/01/25 11/00 at 102 Baa2 5,952,072 12,000,000 Fort Worth Housing Finance Corporation, 8.500%, 10/01/11 10/01 at 103 Aa 13,027,200 7,765,000 Houston Airport System, Subordinate Lien, 6.625%, 7/01/22 7/01 at 102 Aaa 8,308,084 18,500,000 Houston Water and Sewer System, Junior Lien, 6.375%, 12/01/17 12/01 at 102 Aaa 19,126,965 - ---------------------------------------------------------------------------------------------------------------------------------- UTAH - 0.2% 2,065,000 Intermountain Power Agency, 7.000%, 7/01/21 7/99 at 102 Aa 2,193,195 - ---------------------------------------------------------------------------------------------------------------------------------- VERMONT - 0.7% Vermont Housing Finance Agency, Single Family Mortgage, Alternative Minimum Tax: 6,405,000 7.300%, 5/01/25 11/01 at 102 A1 6,625,332 1,595,000 6.875%, 5/01/25 11/01 at 102 A1 1,623,455 - ---------------------------------------------------------------------------------------------------------------------------------- VIRGINIA - 1.3% 10,500,000 Virginia Housing Development Authority, 7.150%, 1/01/33 1/02 at 102 Aa1 11,021,955 3,860,000 Roanoke Industrial Development Authority (Roanoke Memorial Hospitals), 6.500%, 7/01/25 (Pre-refunded to 7/01/00) 7/00 at 100 Aaa 4,141,857 - ---------------------------------------------------------------------------------------------------------------------------------- WASHINGTON - 8.4% 4,750,000 Washington Health Care Facilities Authority (Yakima Valley Memorial Hospital), 7.250%, 1/01/21 (Pre-refunded to 1/01/01) 1/01 at 102 A 5,323,278 Washington Public Power Supply System, Nuclear Project No. 2: 4,000,000 5.375%, 7/01/11 7/04 at 102 Aa 3,691,120 17,100,000 7.000%, 7/01/12 7/00 at 102 Aa 18,180,036 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE WASHINGTON (CONTINUED) $ 14,500,000 Washington Public Power Supply System, Nuclear Project No. 3, 7.400%, 7/01/09 1/00 at 102 Aa $ 15,830,085 10,705,000 Chelan County Public Utility District No. 1 (Columbia River-Rock Island Hydroelectric System), 6.375%, 6/01/29 6/96 at 102 A1 10,737,436 3,010,000 Camas School District No. 117, General Obligation, 6.000%, 12/01/14 12/05 at 100 Aaa 3,050,304 4,185,000 Douglas County Public Utility District No. 1, Wells Hydroelectric Project, 8.750%, 9/01/18 9/06 at 106 A+ 5,279,001 12,415,000 King County School District No. 210, Federal Way, General Obligation, 6.950%, 12/01/11 12/03 at 100 A 14,001,512 Municipality of Metropolitan Seattle, Limited Sales Tax, General Obligation: 9,810,000 6.625%, 1/01/11 1/97 at 102 Aa 10,069,474 10,310,000 6.875%, 1/01/20 1/97 at 102 Aa 10,582,905 4,000,000 North Thurston School District No. 3, General Obligation, 6.500%, 12/01/09 12/02 at 100 A 4,239,760 - ---------------------------------------------------------------------------------------------------------------------------------- WISCONSIN - 1.6% 10,820,000 Wisconsin Health and Educational Facilities Authority (Novus Health Group), 6.750%, 12/15/20 12/01 at 102 Aaa 11,380,691 7,000,000 Wisconsin Housing and Economic Development Authority, 6.850%, 11/01/12 1/02 at 102 A1 7,282,240 - ---------------------------------------------------------------------------------------------------------------------------------- WYOMING - 0.6% 2,390,000 Wyoming Community Development Authority, Single Family Mortgage, 7.400%, 6/01/31 6/01 at 102 Aa 2,518,701 4,500,000 Wyoming Community Development Authority, Single Family Mortgage, Alternative Minimum Tax, 7.250%, 6/01/21 11/01 at 103 Aa 4,693,634 - ---------------------------------------------------------------------------------------------------------------------------------- $1,126,855,000 Total Investments - (cost $1,113,605,765) - 98.4% 1,185,905,604 - ---------------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 19,845,794 - ---------------------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $1,205,751,398 - ---------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 51 $ 447,212,541 38% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 33 220,411,216 19 PORTFOLIO OF A+ A1 11 83,124,889 7 INVESTMENTS: A, A- A, A2, A3 18 139,300,196 12 BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 34 266,277,662 22 Non-rated Non-rated 4 29,579,100 2 - ------------------------------------------------------------------------------------------------------------------- TOTAL 151 $1,185,905,604 100% - ------------------------------------------------------------------------------------------------------------------- * 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. N/R - Investment is not rated. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. (NPF)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE ALABAMA - 1.0% $ 4,360,000 Alabama Higher Education Loan Corporation, Student Loan, Alternative Minimum Tax, 5.850%, 9/01/04 No Opt. Call Aaa $ 4,487,007 - ---------------------------------------------------------------------------------------------------------------------------------- ALASKA - 0.5% 1,875,000 Anchorage Home Mortgage, 8.000%, 3/01/09 3/02 at 102 AAA 2,028,038 - ---------------------------------------------------------------------------------------------------------------------------------- ARIZONA - 5.4% 5,500,000 Arizona Educational Loan Marketing Corporation, Alternative Minimum Tax, 6.950%, 3/01/01 No Opt. Call A 5,930,705 3,650,000 Maricopa County Unified School District No. 41, General Obligation, 6.100%, 7/01/14 (Pre-refunded to 7/01/04) 7/04 at 100 Aaa 3,925,137 12,255,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 A- 13,652,805 - ---------------------------------------------------------------------------------------------------------------------------------- ARKANSAS - 1.4% 2,000,000 Arkansas Development Finance Authority, Single Family Housing, Alternative Minimum Tax, 6.550%, 7/01/18 7/05 at 102 AAA 2,039,440 1,400,000 Arkansas Development Finance Authority, Single Family Housing, 6.600%, 7/01/17 7/05 at 102 AAA 1,446,774 448,822 Drew County Public Facilities Board, Single Family Housing, 7.900%, 8/01/11 8/03 at 103 Aaa 487,138 1,310,000 Greene County Residential Housing Board, 7.250%, 1/01/10 1/02 at 103 Aa 1,384,382 618,038 Stuttgart Public Facilities Board, Single Family Housing, 7.900%, 9/01/11 9/03 at 103 Aaa 672,017 - ---------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA - 1.9% 33,000,000 Foothill/Eastern Transportation Corridor Agency, 0.000%, 1/01/17 No Opt. Call BBB- 8,234,820 - ---------------------------------------------------------------------------------------------------------------------------------- COLORADO - 1.4% Colorado Health Facilities Authority (National Jewish Center): 1,500,000 6.600%, 2/15/02 No Opt. Call BBB- 1,492,695 1,250,000 6.875%, 2/15/12 2/02 at 102 BBB- 1,239,150 3,000,000 7.100%, 2/15/22 2/02 at 102 BBB- 2,920,110 550,000 Denver Airport System, Alternative Minimum Tax, 8.100%, 11/15/00 No Opt. Call Baa 614,405 - ---------------------------------------------------------------------------------------------------------------------------------- CONNECTICUT - 0.6% 2,275,000 Connecticut Housing Finance Authority, Alternative Minimum Tax, 6.900%, 5/15/20 5/04 at 102 Aa 2,344,638 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE DISTRICT OF COLUMBIA - 3.1% $ 6,250,000 District of Columbia (National Rehabilitation Hospital), 7.125%, 11/01/19 (Pre-refunded to 11/01/99) 11/99 at 102 Aaa $ 6,890,688 2,000,000 District of Columbia (Washington Hospital Center), 7.000%, 8/15/05 8/02 at 102 Baa1 2,076,020 District of Columbia Housing Finance Agency (FHA-Insured): 920,000 7.200%, 9/01/12 9/02 at 102 Aa 972,946 3,505,000 7.250%, 3/01/24 9/02 at 102 Aa 3,676,289 - ---------------------------------------------------------------------------------------------------------------------------------- FLORIDA - 1.4% 1,880,000 Florida State Board of Education, 6.700%, 6/01/22 (Pre-refunded to 6/01/01) 6/01 at 101 Aaa 2,071,252 4,000,000 Dade County Aviation, 5.750%, 10/01/18 10/06 at 102 Aaa 3,908,680 - ---------------------------------------------------------------------------------------------------------------------------------- GEORGIA - 0.6% 2,000,000 Georgia Municipal Electric Authority, 7.250%, 1/01/24 No Opt. Call Aaa 2,408,040 - ---------------------------------------------------------------------------------------------------------------------------------- ILLINOIS - 17.2% Illinois Development Finance Authority, Multi-Family Housing: 600,000 7.650%, 7/01/07 1/02 at 105 AAA 664,662 5,270,000 7.650%, 12/31/31 1/02 at 105 AAA 5,743,193 9,035,000 Illinois Development Finance Authority, Multi-Family Housing (Town and Garden Apartments Project), Alternative Minimum Tax, 7.800%, 3/01/06 3/02 at 102 BBB+ 9,469,493 865,000 Illinois Health Facilities Authority (Evangelical Hospitals), 6.750%, 4/15/12 4/02 at 102 AA- 889,851 7,400,000 Illinois Health Facilities Authority, 7.000%, 7/01/12 7/02 at 102 Baa 7,352,344 4,810,000 Illinois Housing Development Authority (Garden House of Maywood), 7.000%, 9/01/18 9/02 at 102 A 5,003,073 865,000 Illinois Housing Development Authority, Elderly Housing (Morningstar North), 6.600%, 1/01/07 1/03 at 102 A 904,928 Illinois Sales Tax: 2,000,000 6.800%, 6/15/10 6/99 at 102 AAA 2,106,420 6,390,000 6.800%, 6/15/12 (Pre-refunded to 6/15/00) 6/00 at 102 AAA 7,031,173 4,500,000 Chicago General Obligation (Central Public Library Project), 6.850%, 1/01/17 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 5,047,065 4,900,000 Chicago Tax Increment (Stockyards Industrial Redevelopment), 9.250%, 1/01/14 No Opt. Call N/R 5,398,624 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE ILLINOIS (CONTINUED) $ 8,075,000 Cicero General Obligation, Tax Increment, 8.125%, 12/01/12 12/04 at 102 N/R $ 8,758,387 2,000,000 Onterie Center Housing Finance Corporation (FHA-Insured), 7.050%, 7/01/27 7/02 at 102 Aaa 2,103,800 2,835,000 Sugar Grove Village Waterworks and Sewerage System, 7.500%, 5/01/17 5/02 at 102 N/R 2,942,673 Wood River Township Hospital General Obligation: 6,000,000 6.625%, 2/01/14 2/04 at 102 BBB 6,124,380 5,945,000 6.500%, 2/01/14 2/04 at 102 BBB 6,014,794 - ---------------------------------------------------------------------------------------------------------------------------------- INDIANA - 1.2% 2,000,000 Indianapolis Exempt Facility (Mid-America Energy Resources, Inc.), Alternative Minimum Tax, 7.250%, 12/01/11 6/99 at 102 AA- 2,068,980 2,860,000 PHM Elementary/Middle School Building Corporation, 6.300%, 1/15/09 No Opt. Call A 3,044,012 - ---------------------------------------------------------------------------------------------------------------------------------- IOWA - 0.4% 1,655,000 Iowa Student Loan Liquidity Corporation, Alternative Minimum Tax, 5.750%, 12/01/06 12/02 at 102 Aaa 1,650,366 - ---------------------------------------------------------------------------------------------------------------------------------- KANSAS - 1.0% 4,000,000 Hutchinson Single Family Housing, 8.875%, 12/01/12 6/02 at 103 A 4,306,760 - ---------------------------------------------------------------------------------------------------------------------------------- KENTUCKY - 1.2% 5,000,000 Kentucky Rural Economic Development Authority (Donnelly Corporation), Alternative Minimum Tax, 8.125%, 7/01/12 7/02 at 102 N/R 5,117,150 - ---------------------------------------------------------------------------------------------------------------------------------- LOUISIANA - 0.3% 1,310,000 Louisiana Housing Finance Agency (St. Dominic Assisted Care Facility), 6.850%, 9/01/25 9/05 at 103 AAA 1,384,840 - ---------------------------------------------------------------------------------------------------------------------------------- MAINE - 2.0% 8,470,000 Maine Educational Loan Marketing Corporation, Alternative Minimum Tax, 6.250%, 11/01/06 No Opt. Call A 8,827,519 - ---------------------------------------------------------------------------------------------------------------------------------- MARYLAND - 1.4% 6,000,000 Anne Arundel County, Multi-Family Housing (Woodside Project), Alternative Minimum Tax, 7.450%, 12/01/24 (Mandatory put 12/01/03) No Opt. Call BBB+ 6,270,960 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE MASSACHUSETTS - 6.4% $ 2,450,000 Massachusetts Health and Educational Facilities Authority (New England Deaconess Hospital), 6.875%, 4/01/22 4/02 at 102 A $ 2,560,667 3,875,000 Massachusetts Health and Educational Facilities Authority (Youville Hospital), 6.000%, 2/15/25 2/04 at 102 Aa 3,843,109 9,070,000 Massachusetts Industrial Finance Agency, Resource Recovery (SEMASS Project), Alternative Minimum Tax, 9.250%, 7/01/15 7/01 at 103 N/R 9,879,225 Massachusetts Municipal Wholesale Electric Company: 945,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 1,016,820 45,000 8.750%, 7/01/18 7/97 at 102 A 51,909 9,780,000 Massachusetts Water Resources Authority, 6.750%, 7/15/12 (Pre-refunded to 7/15/02) 7/02 at 102 Aaa 10,969,150 - ---------------------------------------------------------------------------------------------------------------------------------- MICHIGAN - 1.1% 2,000,000 Jackson County Hospital Finance Authority (W. A. Foote Memorial Hospital), 5.250%, 6/01/23 6/03 at 102 Aaa 1,789,280 2,500,000 Wayne County Building Authority, Limited Tax, 8.000%, 3/01/17 (Pre-refunded to 3/01/02) 3/02 at 102 Baa 2,924,600 - ---------------------------------------------------------------------------------------------------------------------------------- MINNESOTA - 2.7% 11,180,000 Northwest Minnesota Multi-County Housing and Redevelopment Authority, 8.125%, 10/01/26 10/04 at 102 N/R 11,620,604 - ---------------------------------------------------------------------------------------------------------------------------------- MISSISSIPPI - 0.5% 8,610,000 Mississippi Home Corporation, 0.000%, 9/15/16 3/04 at 41 21/32 A 2,063,387 - ---------------------------------------------------------------------------------------------------------------------------------- NEBRASKA - 4.2% 2,350,000 Nebraska Higher Education Loan Program, Alternative Minimum Tax, 6.250%, 6/01/18 No Opt. Call Aa 2,312,541 4,145,000 Grand Island Electric System, 6.100%, 9/01/12 9/96 at 101 A1 4,146,409 10,935,000 Omaha Public Power District, 6.500%, 2/01/17 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 AAA 12,003,896 - ---------------------------------------------------------------------------------------------------------------------------------- NEVADA - 0.2% 745,000 Nevada Housing Division, Alternative Minimum Tax, 8.050%, 10/01/19 No Opt. Call AA 753,970 - ---------------------------------------------------------------------------------------------------------------------------------- NEW HAMPSHIRE - 2.5% 9,200,000 New Hampshire Industrial Development Authority, Resource Recovery (SES Concord Project), 8.500%, 1/01/09 1/98 at 102 A+ 9,810,328 1,440,000 New Hampshire Municipal Bond Bank (Coe-Brown Northwood Academy), 7.250%, 5/01/09 No Opt. Call N/R 1,473,494 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE NEW JERSEY - 0.7% $ 3,000,000 New Jersey Economic Development Authority (Bridgewater Resources, Inc.), Alternative Minimum Tax, 8.375%, 11/01/04 No Opt. Call N/R $ 3,110,460 - ---------------------------------------------------------------------------------------------------------------------------------- NEW YORK - 11.2% 5,000,000 New York Local Government Assistance Corporation, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 5,708,000 6,000,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home, FHA-Insured, 6.200%, 8/15/22 8/02 at 102 AAA 6,020,520 8,450,000 New York State Urban Development Corporation, State Facilities, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 9,626,494 6,500,000 Dormitory Authority of the State of New York (City University), 7.625%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 7,354,490 New York City General Obligation: 3,500,000 7.500%, 2/01/01 No Opt. Call Baa1 3,810,940 4,000,000 9.500%, 8/01/02 8/01 at 101 1/2 Baa1 4,717,680 1,550,000 6.500%, 8/01/02 No Opt. Call Baa1 1,630,073 1,000,000 7.000%, 8/01/04 No Opt. Call Baa1 1,083,150 3,080,000 6.600%, 8/01/04 No Opt. Call Baa1 3,249,770 2,075,000 8.400%, 11/15/05 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Aaa 2,479,293 925,000 8.400%, 11/15/05 11/01 at 101 1/2 A- 1,035,760 2,000,000 6.625%, 8/01/12 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 2,230,480 - ---------------------------------------------------------------------------------------------------------------------------------- NORTH CAROLINA - 0.5% 2,130,000 North Carolina Housing Finance Agency, Multi- Family Housing, 6.900%, 7/01/24 7/02 at 102 Aa 2,207,639 - ---------------------------------------------------------------------------------------------------------------------------------- OHIO - 5.9% 14,570,000 Ohio Housing Finance Agency, Single Family Housing (GNMA), Alternative Minimum Tax, 7.650%, 3/01/29 9/99 at 102 AAA 15,298,791 8,500,000 Akron-Bath-Copley Joint Township Hospital District (Akron City Hospital), 8.875%, 11/15/07 (Pre-refunded to 11/15/97) 11/97 at 102 Aaa 9,288,970 985,000 Toledo-Lucas County Port Authority, Alternative Minimum Tax, 7.750%, 5/15/07 5/00 at 102 N/R 1,022,558 - ---------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA - 4.4% 2,000,000 Falls Township Hospital Authority (Delaware Valley Medical Center), 7.000%, 8/01/22 8/02 at 102 AAA 2,076,380 1,365,000 Northampton County Hospital Authority (Eastern Hospital), 6.900%, 1/01/02 No Opt. Call BBB 1,410,591 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE PENNSYLVANIA (CONTINUED) $ 7,690,000 Philadelphia Water and Sewer System, 7.350%, 9/01/04 No Opt. Call AAA $ 8,522,904 Philadelphia Hospital and Higher Educational Facilities Authority (Children's Seashore House): 2,500,000 7.000%, 8/15/12 8/02 at 102 A- 2,613,825 4,450,000 7.000%, 8/15/22 8/00 at 100 A- 4,626,398 - ---------------------------------------------------------------------------------------------------------------------------------- SOUTH DAKOTA - 1.9% 8,000,000 South Dakota Student Loan Assistance Corporation, Alternative Minimum Tax, 7.400%, 8/01/99 No Opt. Call A 8,320,640 - ---------------------------------------------------------------------------------------------------------------------------------- TEXAS - 3.8% 4,402,241 Texas General Services Commission, 7.500%, 9/01/22 9/97 at 102 A 4,290,733 9,500,000 Harris County Health Facilities Development Corporation, 7.375%, 12/01/25 (Mandatory put 12/01/98) 11/96 at 100 1/2 Aa2 9,631,670 2,345,000 Victoria Housing Finance Corporation, Single Family Housing, 8.125%, 1/01/11 No Opt. Call Aaa 2,492,407 - ---------------------------------------------------------------------------------------------------------------------------------- UTAH - 0.4% 1,500,000 Intermountain Power Agency, 7.750%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 102 Aaa 1,540,185 - ---------------------------------------------------------------------------------------------------------------------------------- VIRGINIA - 2.0% 5,000,000 Virginia Housing Development Authority, 7.100%, 1/01/22 1/02 at 102 AA+ 5,264,550 3,200,000 Suffolk Redevelopment Authority, Multi-Family Housing (Chase Heritage Project), 7.000%, 7/01/24 (Mandatory put 7/01/04) 7/02 at 104 Baa3 3,353,440 - ---------------------------------------------------------------------------------------------------------------------------------- WASHINGTON - 4.2% 9,500,000 Washington General Obligation, 6.250%, 2/01/11 No Opt. Call Aa 10,138,115 2,500,000 Washington Health Care Facilities Authority (Sacred Heart Medical Center Spokane), 6.875%, 2/15/12 2/02 at 102 AA- 2,620,800 3,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7.500%, 7/01/07 7/99 at 102 Aa 3,239,370 2,000,000 Washington Public Power Supply System, Nuclear Project No. 3, 7.375%, 7/01/04 7/00 at 102 Aa 2,182,240 - ---------------------------------------------------------------------------------------------------------------------------------- WEST VIRGINIA - 0.5% 2,000,000 West Virginia Housing Development Fund, Alternative Minimum Tax, 7.200%, 11/01/20 5/02 at 102 Aa1 2,083,760 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE WISCONSIN - 2.1% $ 5,950,000 Wisconsin Housing and Economic Development Authority, 6.850%, 11/01/12 1/02 at 102 A1 $ 6,189,904 2,985,000 Silver Lake Sanitary District Sewer System, 8.000%, 10/01/18 10/02 at 100 N/R 3,114,310 - --------------------------------------------------------------------------------------------------------------------------------- WYOMING - 1.0% 4,000,000 Wyoming Community Development Authority, Alternative Minimum Tax, 7.750%, 6/01/09 11/99 at 103 Aa 4,200,800 - --------------------------------------------------------------------------------------------------------------------------------- $434,754,101 Total Investments - (cost $407,264,594) - 98.2% 428,136,102 - --------------------------------------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.2% $ 400,000 Massachusetts Dedicated Income Tax, Variable Rate Demand Bonds, 3.900%, 12/01/97+ VMIG-1 400,000 600,000 New Jersey Economic Development Authority (Bayonne/IMTT Project), Variable Rate Demand Bonds, 3.750%, 12/01/27+ VMIG-1 600,000 - --------------------------------------------------------------------------------------------------------------------------------- $ 1,000,000 Total Temporary Investments - 0.2% 1,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 6,696,433 - --------------------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $435,832,535 - --------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 35 $154,513,790 36% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 18 59,815,650 14 PORTFOLIO OF A+ A1 3 20,146,641 5 INVESTMENTS A, A- A, A2, A3 15 67,233,121 16 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 19 73,989,415 17 TEMPORARY Non-rated Non-rated 10 52,437,485 12 INVESTMENTS): - ------------------------------------------------------------------------------------------------------------------- TOTAL 100 $428,136,102 100% - ------------------------------------------------------------------------------------------------------------------- * 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. N/R - Investment is not rated. + The 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 NET ASSETS (Unaudited)
NQM NQS NQU NPF ASSETS Investments in municipal securities, at market value (note 1) $ 771,798,925 $ 720,134,651 $1,185,905,604 $ 428,136,102 Temporary investments in short-term municipal securities, at amortized cost (note 1) 3,800,000 5,650,000 -- 1,000,000 Cash 64,201 176,125 1,095,875 211,728 Receivables: Interest 16,220,963 14,323,702 24,333,007 8,293,661 Investments sold 152,481 389,090 265,000 180,000 Other assets 90,503 50,681 96,884 95,395 -------------- -------------- -------------- -------------- Total assets 792,127,073 740,724,249 1,211,696,370 437,916,886 -------------- -------------- -------------- -------------- LIABILITIES Accrued expenses: Management fees (note 6) 405,370 379,350 612,653 227,289 Other 89,592 191,721 324,381 103,001 Preferred share dividends payable 300,760 101,480 469,784 93,888 Common share dividends payable 3,080,192 2,820,544 4,538,154 1,660,173 -------------- -------------- -------------- -------------- Total liabilities 3,875,914 3,493,095 5,944,972 2,084,351 -------------- -------------- -------------- -------------- Net assets (note 7) $ 788,251,159 $ 737,231,154 $1,205,751,398 $ 435,832,535 ============== ============== ============== ============== Preferred shares, at liquidation value $ 250,000,000 $ 240,000,000 $ 400,000,000 $ 140,000,000 ============== ============== ============== ============== Preferred shares outstanding 10,000 9,600 16,000 5,600 ============== ============== ============== ============== Common shares outstanding 35,404,502 33,379,223 53,077,819 19,647,018 ============== ============== ============== ============== Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 15.20 $ 14.90 $ 15.18 $ 15.06 ============== ============== ============== ============== See accompanying notes to financial statements.
STATEMENT OF OPERATIONS Six months ended April 30, 1996 (Unaudited)
NQM NQS NQU NPF INVESTMENT INCOME Tax-exempt interest income (note 1) $ 26,009,007 $ 24,176,806 $ 39,181,884 $ 14,219,228 ------------ ------------ ------------ ------------ Expenses: Management fees (note 6) 2,507,564 2,341,337 3,770,015 1,399,478 Preferred shares--auction fees 325,521 317,787 520,833 189,583 Preferred shares--dividend disbursing agent fees 25,000 22,692 32,500 10,000 Shareholders' servicing agent fees and expenses 48,210 44,379 72,487 25,644 Custodian's fees and expenses 55,362 52,618 75,601 37,338 Directors' fees and expenses (note 6) 3,187 3,654 6,014 2,560 Professional fees 33,089 12,541 16,714 12,430 Shareholders' reports--printing and mailing expenses 73,191 49,764 91,719 45,239 Stock exchange listing fees 25,946 14,123 19,171 20,380 Investor relations expense 26,158 23,759 39,187 14,214 Other expenses 24,712 18,463 38,110 9,478 ------------ ------------ ------------ ------------ Total expenses 3,147,940 2,901,117 4,682,351 1,766,344 ------------ ------------ ------------ ------------ Net investment income 22,861,067 21,275,689 34,499,533 12,452,884 ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) (140,045) (468,722) 37,105 1,025,934 Net change in unrealized appreciation or depreciation of investments (15,500,507) (12,411,637) (12,910,549) (5,047,449) ------------ ------------ ------------ ------------ Net gain (loss) from investments (15,640,552) (12,880,359) (12,873,444) (4,021,515) ------------ ------------ ------------ ------------ Net increase in net assets from operations $ 7,220,515 $ 8,395,330 $ 21,626,089 $ 8,431,369 ============ ============ ============ ============ See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
NQM NQS - ---------------------------------------------------------------------------------------------------------------------------------- 6 months ended Year ended 6 months ended Year ended 4/30/96 10/31/95 4/30/96 10/31/95 - ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 22,861,067 $ 46,997,092 $ 21,275,689 $ 43,187,088 Net realized gain (loss) from investment transactions, net of taxes, if applicable (140,045) (315,370) (468,722) (424,861) Net change in unrealized appreciation or depreciation of investments (15,500,507) 37,219,824 (12,411,637) 43,774,909 ------------ ------------ ------------ ------------ Net increase in net assets from operations 7,220,515 83,901,546 8,395,330 86,537,136 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (18,481,154) (38,289,980) (16,911,193) (34,858,659) Preferred shareholders (4,709,360) (10,113,285) (4,568,568) (9,685,635) From accumulated net realized gains from investment transactions: Common shareholders -- -- -- -- Preferred shareholders -- -- -- -- ------------ ------------ ------------ ------------ Decrease in net assets from distributions to shareholders (23,190,514) (48,403,265) (21,479,761) (44,544,294) ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 432,469 502,250 ------------ ------------ ------------ ------------ Net increase in net assets derived from capital share transactions -- -- 432,469 502,250 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (15,969,999) 35,498,281 (12,651,962) 42,495,092 Net assets at beginning of period 804,221,158 768,722,877 749,883,116 707,388,024 ------------ ------------ ------------ ------------ Net assets at end of period $788,251,159 $804,221,158 $737,231,154 $749,883,116 ============ ============ ============ ============ Balance of undistributed net investment income at end of period $ 833,936 $ 1,163,384 $ 834,094 $ 1,038,166 ============ ============ ============ ============ See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
NQU NPF - ---------------------------------------------------------------------------------------------------------------------------------- 6 months ended Year ended 6 months ended Year ended 4/30/96 10/31/95 4/30/96 10/31/95 - ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 34,499,533 $ 69,562,345 $ 12,452,884 $ 25,047,650 Net realized gain (loss) from investment transactions, net of taxes, if applicable 37,105 (757,201) 1,025,934 10,181 Net change in unrealized appreciation or depreciation of investments (12,910,549) 67,418,921 (5,047,449) 26,319,291 -------------- -------------- ------------ ------------ Net increase in net assets from operations 21,626,089 136,224,065 8,431,369 51,377,122 -------------- -------------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (27,228,929) (54,776,337) (9,961,617) (19,804,205) Preferred shareholders (7,550,583) (16,271,551) (2,505,612) (5,394,964) From accumulated net realized gains from investment transactions: Common shareholders -- -- (1,184,250) (1,104,163) Preferred shareholders -- -- (328,412) (259,084) -------------- -------------- ------------ ------------ Decrease in net assets from distributions to shareholders (34,779,512) (71,047,888) (13,979,891) (26,562,416) -------------- -------------- ------------ ------------ CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- -------------- -------------- ------------ ------------ Net increase in net assets derived from capital share transactions -- -- -- -- -------------- -------------- ------------ ------------ Net increase (decrease) in net assets (13,153,423) 65,176,177 (5,548,522) 24,814,706 Net assets at beginning of period 1,218,904,821 1,153,728,644 441,381,057 416,566,351 -------------- -------------- ------------ ------------ Net assets at end of period $1,205,751,398 $1,218,904,821 $435,832,535 $441,381,057 ============== ============== ============ ============ Balance of undistributed net investment income at end of period $ 1,754,658 $ 2,034,636 $ 1,380,627 $ 1,394,972 ============== ============== ============ ============ See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES At April 30, 1996, 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). 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 generally accepted accounting principles. Securities Valuation Portfolio securities for which market quotations are readily available are valued at the mean between the quoted bid and asked prices or the yield equivalent. Portfolio securities for which market quotations are not readily available are valued at fair value by consistent application of methods determined in good faith by the Board of Directors. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are traded and valued at amortized cost. 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 be settled a month or more after the transaction date. 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 their purchase commitments. At April 30, 1996, there were no such purchase commitments in any of the Funds. Interest Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securities when required for federal income tax purposes. Federal Income Taxes The Funds intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing to shareholders all of the Funds' tax-exempt net investment income, in addition to any significant amounts of net realized capital gains from investments and/or market discount realized upon the sale of securities. The Funds currently consider significant net realized capital gains and/or market discount as amounts in excess of $.01 per Common share. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. Dividends and Distributions to Shareholders Net investment income is declared as a dividend monthly and payment is made or reinvestment is credited to shareholder accounts after month-end. Net realized capital gains from securities transactions are distributed to shareholders not less frequently than annually only to the extent they exceed available capital loss carryovers. Distributions to shareholders of net investment income and net realized capital gains are recorded on the ex-dividend date. The amount and timing of such distributions are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. Accordingly, temporary over-distributions as a result of these differences may result and will be classified as either distributions in excess of net investment income or distributions in excess of net realized gains, if applicable. Preferred Shares The following 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, except for those Series which have lengthened their current dividend periods from seven days to three years (as indicated below). The number of shares outstanding, by Series and in total, for each Fund is as follows:
NQM NQS NQU NPF - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- Number of shares: Series M 2,500 2,000 3,000 -- Series T 2,500 2,000 3,000 2,800* Series W 2,500 2,800 3,000 -- Series Th -- -- 4,000* 2,800 Series F 2,500* 2,800 3,000 -- ------ ----- ------ ----- Total 10,000 9,600 16,000 5,600 ====== ===== ====== ===== *Three year period Derivative Financial Instruments In October 1994, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 119 Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments which prescribes disclosure requirements for transactions in certain derivative financial instruments including future, 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, 1996.
2. FUND SHARES Transactions in Common shares were as follows:
NQM NQS 6 months ended Year ended 6 months ended Year ended 4/30/96 10/31/95 4/30/96 10/31/95 Common shares: Shares issued to shareholders due to reinvestment of distributions -- -- 28,593 34,939 ====== ====== ====== ====== NQU NPF 6 months ended Year ended 6 months ended Year ended 4/30/96 10/31/95 4/30/96 10/31/95 Common shares: Shares issued to shareholders due to reinvestment of distributions -- -- -- -- ====== ====== ====== ======
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the six months ended April 30, 1996, were as follows:
NQM NQS NQU NPF - ------------------------------------------------------------------------------------------------------------------- PURCHASES Investments in municipal securities $46,585,909 $78,160,342 $73,721,500 $25,414,875 Temporary municipal investments 28,800,000 46,660,000 22,700,000 27,800,000 SALES AND MATURITIES Investments in municipal securities 40,289,480 72,575,843 72,324,471 27,381,861 Temporary municipal investments 34,700,000 50,810,000 24,600,000 26,800,000 =========== =========== =========== =========== At April 30, 1996, the identified cost of investments owned for federal income tax purposes was the same as the cost for financial reporting purposes for each Fund. At October 31, 1995, the Funds' last fiscal year end, the following Funds had unused capital loss carryovers available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryovers will expire as follows: NQM NQS NQU - ------------------------------------------------------------------------------------------------------------------- Expiration year: 2001 $2,593,847 $ -- $ -- 2002 -- 6,626,291 5,529,513 2003 315,370 424,861 757,201 ---------- ---------- ---------- Total $2,909,217 $7,051,152 $6,286,714 ========== ========== ==========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS On May 1, 1996, the Funds declared Common share dividend distributions from their ordinary income which were paid June 3, 1996, to shareholders of record on May 15, 1996, as follows:
NQM NQS NQU NPF - ------------------------------------------------------------------------------------------------------------------- Dividend per share $.0870 $.0845 $.0855 $.0845 ====== ====== ====== ====== 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at April 30, 1996, were as follows: NQM NQS NQU NPF - ---------------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $51,598,596 $44,597,191 $73,867,433 $21,210,869 Depreciation (4,884,077) (5,469,567) (1,567,594) (339,361) ------------ ------------ ------------ ------------ Net unrealized appreciation $46,714,519 $39,127,624 $72,299,839 $20,871,508 ============ =========== =========== ============
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 to the Adviser an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net asset value of each Fund:
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE - ------------------------------------------------------------------------------------------------------------------- For the first $125,000,000 .65 of 1% For the next $125,000,000 .6375 of 1 For the next $250,000,000 .625 of 1 For the next $500,000,000 .6125 of 1 For the next $1,000,000,000 .6 of 1 For net assets over $2,000,000,000 .5875 of 1 The fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those Directors who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS At April 30, 1996, net assets consisted of:
NQM NQS NQU NPF - -------------------------------------------------------------------------------------------------------------------------------- Preferred shares, $25,000 stated value per share, at liquidation value $250,000,000 $240,000,000 $ 400,000,000 $140,000,000 Common shares, $.01 par value per share 354,045 333,792 530,778 196,470 Paid-in surplus 493,397,921 464,455,518 737,410,738 272,358,652 Balance of undistributed net investment income 833,936 834,094 1,754,658 1,380,627 Accumulated net realized gain (loss) from investment transactions (3,049,262) (7,519,874) (6,244,615) 1,025,278 Net unrealized appreciation or depreciation of investments 46,714,519 39,127,624 72,299,839 20,871,508 ------------ ------------ -------------- ------------ Net assets $788,251,159 $737,231,154 $1,205,751,398 $435,832,535 ============ ============ ============== ============ Authorized shares: Common 200,000,000 200,000,000 200,000,000 200,000,000 Preferred 1,000,000 1,000,000 1,000,000 1,000,000 ============ ============ ============== ============
8. INVESTMENT COMPOSITION Each Fund invests in municipal securities which include general obligation, escrowed and revenue bonds. At April 30, 1996, the revenue sources by municipal purpose for these investments, expressed as a percent of total investments, were as follows:
NQM NQS NQU NPF - ------------------------------------------------------------------------------------------------------------------- Revenue Bonds: Housing Facilities 18% 22% 21% 27% Health Care Facilities 13 7 10 13 Pollution Control Facilities 9 11 12 3 Electric Utilities 9 11 8 3 Transportation 1 7 8 3 Educational Facilities 4 2 2 8 Water / Sewer Facilities 2 5 5 1 Lease Rental Facilities 1 -- 2 1 Other 8 2 6 6 General Obligation Bonds 3 8 6 12 Escrowed Bonds 32 25 20 23 ----- ----- ----- ----- 100% 100% 100% 100% ===== ===== ===== ===== Certain long-term and intermediate-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 (50% for NQM, 38% for NQS, 34% for NQU and 26% for NPF). Such insurance or escrow, however, does not guarantee the market value of the municipal securities or the value of any of the Funds' shares. All of the temporary investments in short-term municipal securities have credit enhancements (letters of credit, guarantees or insurance) issued by third party domestic or foreign banks or other institutions. For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund.
FINANCIAL HIGHLIGHTS (Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS: Operating performance Dividends from net investment income Net realized & Net asset unrealized value Net gain (loss) To To beginning investment from invest- Common Preferred of period income ments** shareholders shareholders++ NQM 6 mos. ended 4/30/96 $15.650 $ .646 $ (.441) $ (.522) $(.133) Year ended 10/31, 1995 14.650 1.328 1.040 (1.082) (.286) 1994 16.450 1.322 (1.761) (1.118) (.243) 1993 15.340 1.395 1.196 (1.230) (.214) 1992 15.130 1.441 .169 (1.157) (.243) 1991 13.930 1.457 1.185 (1.092) (.350) 6/21/90 to 10/31/90 14.050 .318 (.027) (.178) (.034) NQS 6 mos. ended 4/30/96 15.290 .638 (.384) (.507) (.137) Year ended 10/31, 1995 14.030 1.296 1.301 (1.046) (.291) 1994 16.130 1.311 (2.058) (1.083) (.250) 1993 14.920 1.348 1.304 (1.218) (.224) 1992 14.640 1.379 .197 (1.053) (.243) 3/21/91 to 10/31/91 14.050 .653 .671 (.425) (.124) Distributions from capital gains Per Organization Common and offering share costs and market To To Preferred Share Net asset value Common Preferred underwriting value end end of shareholders shareholders++ discounts of period period NQM 6 mos. ended 4/30/96 $ -- $ -- $ -- $15.200 $15.000 Year ended 10/31, 1995 -- -- -- 15.650 15.125 1994 -- -- -- 14.650 13.375 1993 (.031) (.006) -- 16.450 17.500 1992 -- -- -- 15.340 15.750 1991 -- -- -- 15.130 16.000 6/21/90 to 10/31/90 -- -- (.199) 13.930 14.250 NQS 6 mos. ended 4/30/96 -- -- -- 14.900 14.625 Year ended 10/31, 1995 -- -- -- 15.290 14.750 1994 (.017) (.003) -- 14.030 13.125 1993 -- -- -- 16.130 16.500 1992 -- -- -- 14.920 14.750 3/21/91 to 10/31/91 -- -- (.185) 14.640 15.000 Ratios/Supplemental data Total Ratio of investment net return Total Net assets Ratio of investment on return on end of expenses income Portfolio market net asset period (in to average to average turnover value+ value+ thousands) net assets@ net assets@ rate NQM 6 mos. ended 4/30/96 2.62% .40% $788,251 .79%* 5.71%* 5% Year ended 10/31, 1995 21.89 14.71 804,221 .78 5.97 11 1994 (17.87) (4.32) 768,723 .79 5.83 7 1993 19.75 16.01 828,931 .77 6.02 14 1992 5.67 9.29 783,237 .74 6.37 5 1991 20.66 17.08 769,837 .75 6.67 3 6/21/90 to 10/31/90 (3.80) .42 724,011 .72* 6.06* -- NQS 6 mos. ended 4/30/96 2.56 .72 737,231 .78* 5.70%* 10 Year ended 10/31, 1995 21.03 17.03 749,883 .79 5.91 7 1994 (14.45) (6.43) 707,388 .80 5.89 11 1993 20.73 16.87 773,423 .81 5.87 8 1992 5.41 9.32 727,874 .79 6.18 5 3/21/91 to 10/31/91 2.91 7.33 713,377 .79* 5.81* 1 See notes on page 62.
FINANCIAL HIGHLIGHTS (Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS: Operating performance Dividends from net investment income Net realized & Net asset unrealized value Net gain (loss) To To beginning investment from invest- Common Preferred of period income ments** shareholders shareholders++ NQU 6 mos. ended 4/30/96 $15.430 $ .650 $ (.245) $ (.513) $(.142) Year ended 10/31, 1995 14.200 1.311 1.258 (1.032) (.307) 1994 16.400 1.319 (2.143) (1.095) (.256) 1993 14.620 1.341 1.824 (1.151) (.234) 1992 14.290 1.325 .276 (1.019) (.252) 6/19/91 to 10/31/91 14.050 .276 .329 (.168) (.021) NPF 6 mos. ended 4/30/96 15.340 .634 (.202) (.507) (.128) Year ended 10/31, 1995 14.080 1.275 1.337 (1.008) (.275) 1994 15.980 1.255 (1.864) (1.040) (.238) 1993 14.070 1.248 1.850 (.972) (.186) 12/19/91 to 10/31/92 14.050 .741 .191 (.640) (.090) Distributions from capital gains Per Organization Common and offering share costs and market To To Preferred Share Net asset value Common Preferred underwriting value end end of shareholders shareholders++ discounts of period period NQU 6 mos. ended 4/30/96 $ -- $ -- $ -- $15.180 $14.875 Year ended 10/31, 1995 -- -- -- 15.430 14.750 1994 (.021) (.004) -- 14.200 12.875 1993 -- -- -- 16.400 16.375 1992 -- -- -- 14.620 14.250 6/19/91 to 10/31/91 -- -- (.176) 14.290 14.625 NPF 6 mos. ended 4/30/96 (.060) (.017) -- 15.060 14.750 Year ended 10/31, 1995 (.056) (.013) -- 15.340 14.625 1994 (.011) (.002) -- 14.080 12.750 1993 (.026) (.004) -- 15.980 15.250 12/19/91 to 10/31/92 -- -- (.182) 14.070 14.000 Ratios/Supplemental data Total Ratio of investment net return Total Net assets Ratio of investment on return on end of expenses income Portfolio market net asset period (in to average to average turnover value+ value+ thousands) net assets@ net assets@ rate NQU 6 mos. ended 4/30/96 4.31% 1.67% $1,205,751 .77%* 5.67%* 6% Year ended 10/31, 1995 23.26 16.51 1,218,905 .78 5.86 17 1994 (15.32) (6.86) 1,153,729 .79 5.78 12 1993 23.62 20.73 1,269,375 .80 5.78 7 1992 4.35 9.64 1,170,752 .78 5.95 8 6/19/91 to 10/31/91 (1.39) 2.91 1,146,962 .74* 5.13* -- NPF 6 mos. ended 4/30/96 4.69 1.84 435,833 .80* 5.66* 6 Year ended 10/31, 1995 23.92 17.15 441,381 .80 5.84 22 1994 (10.05) (5.51) 416,566 .81 5.66 31 1993 16.68 21.31 453,895 .82 5.59 12 12/19/91 to 10/31/92 (2.47) 4.73 415,743 .79* 4.91* 14 * Annualized. ** Net of taxes, if applicable. + Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. ++ The amounts shown are based on Common share equivalents. @ Ratios do not reflect the effect of dividend payments to Preferred shareholders.
Your investment partner Photographic image of John Nuveen, Sr., founder of Nuveen. For nearly 100 years, Nuveen has earned its reputation as a tax-free income specialist by focusing on municipal bonds. Since 1898, John Nuveen & Co. Incorporated has worked to bring together the various participants in the municipal bond industry and build strong partnerships that benefit all concerned. Investors, financial advisers, municipal officials, investment bankers--Nuveen believes that forging relationships with these groups based on trust and value is the key to successful investing. As the oldest and largest municipal bond specialist in the United States, Nuveen's investment bankers work with issuers to understand and meet their needs in structuring and selling their bond issues. Nuveen also works closely with financial advisers around the country, including brokerage firms, banks, insurance companies, and independent financial planners, to bring the benefits of tax-free investing to you. These advisers are experts at identifying your needs and recommending the best solutions for your situation. Together we make a powerful team, helping you create a successful investment plan that meets your needs today and in the future. John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, Illinois 60606-1286 ETF3-JUN 96 -----END PRIVACY-ENHANCED MESSAGE-----