-----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, Qgq/UyV63IsRmAlJKLlZ3wgzca50ZsPlVbwFUmSJWDcFKOil7H3M/6gcKNhUszJN zjTbLA5qTJ9+PMy1ClXgHA== 0000891804-96-000416.txt : 19970102 0000891804-96-000416.hdr.sgml : 19970102 ACCESSION NUMBER: 0000891804-96-000416 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961031 FILED AS OF DATE: 19961231 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: 96688909 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) ANNUAL REPORT/OCTOBER 31, 1996 Photographic image of couple walking on beach. Photographic image of financial adviser reviewing financial statements/plans with older couple. Tax-informed investing An important part of any successful investment program is gauging how well your investments have performed and measuring your progress toward your long-term goals. Taxes dramatically alter the relative returns of the five asset classes shown at right. Graph showing after-tax returns, 1976-1996.
Municipals 8.26 Treasuries 5.62 Corporates 6.11 Stocks 10.51 Treasury Bills 3.87
Traditionally, the most common way to measure performance has been to compare pre-tax rates of return for different investments across similar time periods. The rationale behind this method is that each investor is taxed at a different rate, making pre-tax comparisons the seemingly logical way to ensure you are comparing apples to apples. This, however, is precisely the rationale that can make a pre-tax performance assessment misleading. When returns are presented on a pre-tax basis, you may lose sight of the major impact taxes can have on your earnings, and fail to get the complete picture of your progress toward your investment goals. At Nuveen, we've built our reputation help ing investors realize that it's not what you earn, it's what you keep. TAX-INFORMED INVESTING: THE KEY TO MEASURING LONG-TERM RESULTS The true measure of an investment is its performance on an after-tax basis. Analyzing after-tax returns gains added significance when you realize that the taxes you pay can never be regained. Once that money is "lost," it can't be put to work through compounding, earning additional dollars for you. To better illustrate the ways that taxes can affect the amount you keep versus the amount you earn, Nuveen Research recently studied 20 years of investment returns, both pre-tax and after-tax, to determine the impact of taxes on various asset classes. We were particularly interested in the results for municipal bonds, an asset class that is commonly excluded from the top performance rankings when only pre-tax returns are considered. MEASURING WHAT YOU KEEP The study showed that, once the impact of taxes was figured into the equation, municipal bonds offered a distinct advantage over other fixed income investments. Over the study period, municipal bonds outperformed both corporate and Treasury bonds (see accompanying tables), as high tax rates and the loss of compounding income took their toll on corporate and Treasury results. As investors are well aware, performance over the long term--and the purchasing power of their earnings--can be eroded by inflation as well as taxes. The study showed that, over the past 20 years, only municipal bonds and stocks provided significant after-tax gains over the Consumer Price Index, the most recognized measure of inflation. ABOUT THE STUDY The study, "Measuring What You Keep: Historical After-Tax Returns," compared pre-tax and after-tax total returns over the past 20 years for five asset classes: municipal bonds, Treasury bonds, Treasury bills, corporate bonds, and large company stocks. Returns for each asset class were represented by the returns on commonly used market indexes compiled by Lehman Brothers and Ibbotson Associates. A hypothetical investment of $100,000 was made in each of these asset classes at the beginning of 1976, with all dividends and interest reinvested through the end of 1995. In addition, the after-tax proceeds of an assumed annual 20% turnover rate were reinvested. The study assumed that taxes were paid annually at the applicable federal income tax rates for an investor earning the equivalent of $100,000 in 1995. Of course, this hypothetical investment performance neither reflects past performance nor predicts future results of any Nuveen investment. INCORPORATING TAX-INFORMED INVESTING IN YOUR PORTFOLIO The Nuveen study confirms what many investors have known for years: that municipal bonds can play a critical role in the long-term financial strategies of tax-informed investors. Balancing short-term and long-term investments Combining shorter- and longer-term tax-free investments may help you manage cumulative risk in your portfolio while still capturing the potential for attractive overall rates. Shorter-term investments can help reduce the current volatility of your portfolio and provide a source of investable funds to take advantage of additional investment opportunities as they arise. Longer-term leveraged exchange-traded funds have provided attractive yields and offer trading flexibility that allows quick and easy portfolio adjustments. Dividend reinvestment Studies indicate that weathering market cycles by maintaining an investment plan with long-term goals can help shield investors in the event of a declining market. The purchase of additional shares on a regular schedule, such as through dividend reinvestment, is another strategy for navigating market changes. Dividend reinvestment is an easy and convenient way to set aside dollars on a regular basis, helping you take advantage of dollar-cost averaging while gaining the benefits of tax-free compounding. CONSISTENT AFTER-TAX PERFORMANCE For the long-term investor, performance--even after the impact of taxes and inflation--is the true meas ure of an investment's merit. While most investors choose municipal bonds for their tax-free income advantage, the positive news about their after-tax returns reinforces their potential value as part of a tax-informed investment strategy designed to meet long-term objectives. Understanding the impact of taxes can mean that you keep more of what you earn, and municipal bonds can help you do just that. Only municipals and equities generated signif icant increases in purchasing power over the twenty-year period, with after-tax and inflation-adjusted returns in excess of 2.75% annually.
ANNUAL AFTER-TAX REAL RETURNS, 1976-1995 PERIOD MUNICIPALS TREASURIES CORPORATES STOCKS BILLS 1976-1985 .69% -3.32% -2.14% 2.75% -2.67% 1986-1995 5.15 4.21 3.91 7.31 0.13 1976-1995 2.88% 0.37% 0.84% 5.02% -1.30%
Photographic image of couple walking on beach. CONTENTS 6 Municipal market perspective 7 Dear shareholder 9 Answering your questions 13 Fund performance 15 Commonly used terms 17 Shareholder meeting report 18 Portfolio of investments 46 Statement of net assets 47 Statement of operations 48 Statement of changes in net assets 50 Notes to financial statements 56 Financial highlights 60 Report of independent auditors 61 Nuveen Exchange-Traded Funds dividend reinvestment program Municipal market perspective Over the past year the bond market has been relatively stable compared with recent years, despite some fluctuations. While 1994 represented the worst period in recent bond market history and 1995 the best in a decade, 1996 ended the year about where it began, rebounding from a mid-year decline. Following a strong start, a succession of mixed reports affecting interest rate and inflation forecasts caused investors to view the markets alternatively with enthusiasm, then uncertainty. In the third quarter, evidence of an economic slowdown, the strong U.S. dollar, and lack of inflationary pressures combined to allay investor fears, sparking a rally in bonds that continued through the post-election period. Throughout the year, the municipal market continued to reward investors with solid returns, dependable income, and opportunities to purchase bonds with strong credit quality. A look at the current economy shows a positive tone, reflecting a combination of factors that historically bode well for the bond market, especially long-term issues. Yields remain attractive, as inflation maintains the same modest pace that it has demonstrated over the past five years, giving every indication of being well under control. At the same time, the economy continues to moderate, as evidenced by the lack of price pressure at the consumer and producer levels, steady employment statistics, low labor costs, and a stable money supply. Photographic image of head shot of Chairman and Chief Executive Officer of Nuveen. "Municipal bonds continue to play an important role in meeting the investment goals of conservative investors." Dear shareholder As I begin my duties as the new chairman and chief executive officer of John Nuveen & Co. Incorporated and chairman of the board of the Nuveen exchange-traded funds, I am pleased to have this opportunity to report to you on the performance of your funds. My experience at Nuveen over the past 19 years has shaped my commitment to maintaining Nuveen's tradition of value investing and prudent management. We continue to focus on building shareholder value, providing research-oriented management, and delivering dependable performance, in the belief that this focus will contribute to many more years of investment success for our fund shareholders. Municipal bonds continue to play an important role in meeting the investment goals of conservative investors. The performance of the exchange-traded funds covered in this report demonstrates the ability of quality investments to provide extremely attractive tax-free income. As of October 31, 1996, the current annual yield on share price for these funds ranged from 6.70% to 6.76%. To match these yields, an investor in the 36% federal income tax bracket would have had to earn at least 10.47% on taxable alternatives. Without question, taxable yields at this level on investments of comparable quality can be difficult to obtain in today's markets. The net asset values of some funds declined slightly over the 12 months ended October 31, reflecting the mid-1996 uncertainty that drove prices lower and yields higher. Yet returns remained attractive. For the funds covered in this report, total returns, representing changes in net asset value and reinvestment of all dividends and capital gains, if any, ranged from 5.70% to 7.51%, equivalent to taxable investments with total returns of 9.53% to 11.36%. As concerns about the effects of a potential flat tax evaporated and the Federal Reserve continued to stand firm on interest rates, confidence in the bond market was restored in November following the fiscal year ends of these funds. I would like to take this opportunity to share with you the news of some recent developments that will give Nuveen the flexibility to meet expanded investor needs for capital preservation, current income, and future growth. In November, we introduced the Nuveen Growth and Income Stock Fund, the first of three Nuveen equity-based mutual funds designed to provide a high-quality complement to our current municipal bond funds. These new funds will be offered in affiliation with Institutional Capital Corporation (ICAP), an institutional equity management firm located in Chicago that shares Nuveen's values and investment management style. Tailor-made to address the needs of many Nuveen investors, these funds can play a critical role in achieving a balanced strategy for investors who expect their investments to provide a core element of their financial security. In another move that will increase the range of investment solutions for investors, Nuveen is acquiring Flagship Resources, Inc., a fixed income mutual fund specialist based in Dayton, Ohio. Flagship is a firm that shares our views on the importance of research and emphasizes a conservative, value- oriented approach to portfolio management. In January 1997, the tax-exempt mutual fund activities of Flagship and Nuveen will be merged, resulting in more than 40 municipal funds, the broadest selection available in the U.S. We are excited about these recent developments, and we are pleased to be bringing Nuveen investors expanded options for achieving wealth preservation, dependable income, and long-term asset growth. We thank you for your continued confidence in Nuveen. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board December 16, 1996 Answering your questions Photographic image of montage of letters received by Nuveen. Tom Spalding, head of Nuveen's portfolio management team, discusses the current environment in the municipal market and aspects of Nuveen's management approach Did the November elections have any impact on the municipal market? No. While both the stock and bond markets have enjoyed post-election rallies, the markets had substantially anticipated the outcome of the elections, that is, the re-election of a Democratic President and the continued Republican majority in Congress. Maintaining the status quo of the past four years should have little effect on the municipal market. What is the current mood of the municipal market? The overall tone of the municipal market today is very positive. Over the past year, we have seen municipals perform well in comparison to Treasuries. Adding to the general optimism is the fact that the election has ended all talk of a flat tax for now, eliminating one source of uncertainty regarding municipal value. Based on these factors, we expect market sentiment to stay on the positive side in the coming months. Are there areas of the market that look especially attractive? Regionally, the Midwest has turned in strong performance over the past year. This is due to the fact that the economies of Illinois, Michigan, and Ohio have done very well recently, with bonds from issuers in these states benefiting from price appreciation relative to the market. Photographic image of Tom Spalding, Portfolio Manager at Nuveen. Tom Spalding, head of Nuveen's portfolio management team, answers investors' questions on developments in the municipal market Do the Nuveen funds currently hold many bonds from Midwestern issuers? Historically, Nuveen's national funds have always been slightly overweighted in bonds from Midwestern issuers. Two main reasons account for this: o Because interest from Illinois-issued municipal bonds generally is not deductible when calculating state taxes, these bonds often provide more attractive yields and prices than bonds from other states. Therefore, at certain times, we tend to hold more bonds from this Midwestern state. o Because of our long history in Chicago, we are particularly well acquainted with credits in this part of the country. We believe that much of the recent relative price appreciation opportunity in Midwest bonds may have been realized, with many of these bonds now reaching what we would consider full value. Does the portfolio management approach differ between older and newer Nuveen funds? While all of our funds are managed using the same philosophy and approach to security selection and portfolio construction, each fund has a unique history and set of circumstances that create different opportunities. Adding to this diversity is the fact that each portfolio manager has an individual style. These differences manifest themselves in slight variations. For example, one manager might identify more frequent opportunities to change portfolio holdings over the course of a year, while another manager might choose to buy more of a certain issue or sell at a different time. However, all of our portfolio managers use the same fundamental value approach in the search for bonds that we believe are positioned to outperform their peers. This means that we generally focus on the same types of credits and same time horizons, and we try to maintain the same geographical and sector diversification. Our management approach involves a team atmosphere, even though each manager is overseeing separate portfolios. Can you comment on the overall credit quality of the Nuveen funds? Over the course of 1996, the market has seen more upgrades than downgrades in bond credit ratings, and our portfolios generally reflect this overall market trend. As opportunity allowed, Nuveen portfolio managers maintained or upgraded bonds in their portfolios to increase value and extend call protection. What is the status of bond calls in Nuveen's older portfolios? Our funds--especially the older state and national funds--have been dealing with the issue of bond calls and pre-refundings for years. Although this has put pressure on dividends, all of our funds have performed very well through this period. Generally, we don't expect bond calls and pre-refundings to play as major a role over the next few years as they have recently. While some of our funds still have pre-refunded and current call risk, others have restructured their portfolios and have virtually no call exposure. NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. NQM Dividends on NQM have been consistently at an attractive level despite a modest reduction in June. Dividends are adjusted periodically to reflect the current earnings of the portfolio. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 11/13/95 $0.0870 12/13/95 $0.0870 01/10/96 $0.0870 02/13/96 $0.0870 03/13/96 $0.0870 04/11/96 $0.0870 05/13/96 $0.0870 06/12/96 $0.0845 07/11/96 $0.0845 08/13/96 $0.0845 09/11/96 $0.0845 10/10/96 $0.0845 FUND HIGHLIGHTS 10/31/96 Yield 6.76% Taxable-equivalent yield 10.56% Annual total return on NAV 5.70% Taxable-equivalent total return 9.53% Share price $15.00 NAV $15.48 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. NQS In keeping with the Fund's goal 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 11/13/95 $0.0845 12/13/95 $0.0845 01/10/96 $0.0845 02/13/96 $0.0845 03/13/96 $0.0845 04/11/96 $0.0845 05/13/96 $0.0845 06/12/96 $0.0845 07/11/96 $0.0845 08/13/96 $0.0845 09/11/96 $0.0845 10/10/96 $0.0845 FUND HIGHLIGHTS 10/31/96 Yield 6.70% Taxable-equivalent yield 10.47% Annual total return on NAV 5.71% Taxable-equivalent total return 9.56% Share price $15.125 NAV $15.12 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. NQU In keeping with the Fund's goal of providing attractive, dependable tax-free income, share holders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 11/13/95 $0.0855 12/13/95 $0.0855 01/10/96 $0.0855 02/13/96 $0.0855 03/13/96 $0.0855 04/11/96 $0.0855 05/13/96 $0.0855 06/12/96 $0.0855 07/11/96 $0.0855 08/13/96 $0.0855 09/11/96 $0.0855 10/10/96 $0.0855 FUND HIGHLIGHTS 10/31/96 Yield 6.73% Taxable-equivalent yield 10.52% Annual total return on NAV 6.93% Taxable-equivalent total return 10.79% Share price $15.25 NAV $15.44 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. NPF In keeping with the Fund's goal of providing attractive, dependable tax-free income, share holders enjoyed 12 months of steady dividends. In addition, shareholders received a capital gains distribution in December 1995.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 11/13/95 $0.0845 12/13/95 $0.0845 $0.0603 01/10/96 $0.0845 02/13/96 $0.0845 03/13/96 $0.0845 04/11/96 $0.0845 05/13/96 $0.0845 06/12/96 $0.0845 07/11/96 $0.0845 08/13/96 $0.0845 09/11/96 $0.0845 10/10/96 $0.0845 FUND HIGHLIGHTS 10/31/96 Yield 6.70% Taxable-equivalent yield 10.47% Annual total return on NAV 7.51% Taxable-equivalent total return 11.36% Share price $15.125 NAV $15.38 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
Commonly used terms Yield An exchange-traded fund's annualized monthly dividend on a given date (in the case of this report, October 31, 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, the tax rate is assumed to be 36% for shareholders, based on incomes of $121,300-$263,750 for investors filing singly, $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 liabilities. The NAV per share is the fund's net assets, less the value of its preferred shares divided by the 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 technique used to enhance the income produced for common shareholders by a long-term municipal bond fund through the issuance of short-term preferred shares. The proceeds from the sale of the preferred shares can be used to purchase additional long-term bonds, thus increasing the portfolio's income stream. Changes in net asset value per share, both up and down, are also magnified by leverage. Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the 12-month period ended October 31, 1996. Any future repurchases will be reported to shareholders in the next annual or semiannual report.
SHAREHOLDER MEETING REPORT On July 24, 1996, the following Nuveen Exchange-Traded Funds held an Annual Meeting of Shareholders. At the meeting, shareholders voted to elect directors of the Funds and to ratify selection of Ernst & Young L.L.P. as the auditors for the Funds. The directors elected at the meeting include: Lawrence H. Brown, Anthony T. Dean, Anne E. Impellizzeri, and Peter R. Sawers. NQM NQS NQU NPF APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS: Lawrence H. Brown For 31,680,110 30,529,261 47,835,317 17,900,681 Abstain 399,191 451,596 602,287 212,820 ---------- ---------- ---------- ---------- Total 32,079,301 30,980,857 48,437,604 18,113,501 ========== ========== ========== ========== Anthony T. Dean For 31,673,210 30,538,156 47,830,776 17,904,081 Abstain 406,091 442,701 606,828 209,420 ---------- ---------- ---------- ---------- Total 32,079,301 30,980,857 48,437,604 18,113,501 ========== ========== ========== ========== Anne E. Impellizzeri For 31,681,710 30,535,315 47,837,130 17,900,006 Abstain 397,591 445,542 600,474 213,495 ---------- ---------- ---------- ---------- Total 32,079,301 30,980,857 48,437,604 18,113,501 ========== ========== ========== ========== Peter R. Sawers For 31,680,110 30,536,461 47,833,592 17,902,086 Abstain 399,191 444,396 604,012 211,415 ---------- ---------- ---------- ---------- Total 32,079,301 30,980,857 48,437,604 18,113,501 ========== ========== ========== ========== APPROVAL TO UPDATE TERMS OF MUNIPREFERRED WAS REACHED AS FOLLOWS: For 18,214,149 17,169,469 26,816,693 N/A Against 374,223 426,145 538,383 N/A Abstain 1,158,766 1,185,141 1,796,558 N/A ---------- ---------- ---------- ---------- Total 19,747,138 18,780,755 29,151,634 N/A ========== ========== ========== ========== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 31,533,234 30,315,751 47,576,122 17,838,103 Against 143,494 140,024 220,873 76,773 Abstain 402,573 525,082 640,609 198,625 ---------- ---------- ---------- ---------- Total 32,079,301 30,980,857 48,437,604 18,113,501 ========== ========== ========== ==========
PORTFOLIO OF INVESTMENTS NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQM)
PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE ALASKA - 2.5% $14,850,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 1994 Series A, 5.400%, 12/01/13 Aa 6/04 at 102 $ 14,272,929 5,630,000 Alaska Housing Finance Corporation, Insured Mortgage Program Bonds, 1990 First Series, 7.800%, 12/01/30 Aa1 12/00 at 102 5,728,018 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 15.7% 22,400,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 AA 5/03 at 102 21,349,216 11,625,000 California Health Facilities Financing Authority, Hospital Revenue Bonds (Children's Hospital of Los Angeles), 1991 Series A, 7.125%, 6/01/21 (Pre-refunded to 6/01/01) Aaa 6/01 at 102 13,098,701 5,700,000 State Public Works Board of the State of California, Lease Revenue Refunding Bonds (The Regents of the University of California), 1993 Series A (Various University of California Projects), 5.500%, 6/01/21 A1 6/03 at 102 5,395,164 10,000,000 Certificates of Participation (1991 Financing Project), County of Alameda, California, Alameda County Public Facilities Corporation, 6.000%, 9/01/21 Aaa 9/06 at 102 10,317,400 9,740,000 Huntington Park Redevelopment Agency, Single Family Residential Mortgage Revenue Refunding Bonds, 1986 Series A, 8.000%, 12/01/19 Aaa No Opt. Call 12,924,590 6,640,000 Lancaster Redevelopment Agency, Combined Redevelopment Project Areas (Sheriff's Facility Project), Tax Allocation Bonds, Issue of 1993, 5.700%, 8/01/23 Aaa 8/03 at 102 6,589,802 4,000,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda University Medical Center Project), Series 1993-A, 6.500%, 12/01/18 BBB 12/03 at 102 4,090,480 10,325,000 City of Loma Linda, California, Hospital Revenue Refunding Bonds (Loma Linda University Medical Center Project), Series 1993-C, 5.000%, 12/01/22 Aaa 12/03 at 102 9,252,749 7,155,000 Department of Water and Power of The City of Los Angeles, Water Works Refunding Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/23 Aaa 5/03 at 102 5,932,211 15,770,000 Ontario Redevelopment Financing Authority (San Bernardino County California), 1995 Revenue Refunding Bonds (Ontario Redevelopment Project No. 1), 7.400%, 8/01/25 Aaa No Opt. Call 20,166,676 13,145,000 City of Perris, California, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities), 1988 Series B, 8.200%, 9/01/23 (Alternative Minimum Tax) Aaa No Opt. Call 16,793,263 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 1.5% 2,500,000 Colorado Housing Finance Authority, Single Family Program Senior and Subordinate Bonds, 1996 Series B, 7.450%, 11/01/27 Aa 5/06 at 105 2,791,050 4,940,000 Castle Pines Metropolitan District, Douglas County, Colorado, General Obligation Refunding and Improvement Bonds, Series 1990, 7.625%, 12/01/15 Aaa 12/00 at 102 5,569,356 3,085,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A, 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 3,462,789 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.9% 7,030,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1996 Series D, Subseries D-2, 6.200%, 11/15/27 (Alternative Minimum Tax) Aa 5/06 at 102 7,098,964 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.7% 5,215,000 District of Columbia Housing Finance Agency, Collateralized Single Family Mortgage Revenue Bonds, Series 1990A, 8.100%, 12/01/23 (Alternative Minimum Tax) AAA 12/00 at 102 5,504,798 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.2% 4,000,000 Hillsborough County Port District, Florida (Tampa Port Authority), Revenue Bonds, Series 1990, 8.250%, 6/01/09 Baa1 12/00 at 102 4,610,920 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE FLORIDA (CONTINUED) $ 20,000,000 Jacksonville Health Facilities Authority, Health Facilities Revenue Refunding Bonds, Daughters of Charity National Health System, Inc., St. Vincent's Medical Center Issue, Series 1990, 7.500%, 11/01/15 (Pre-refunded to 11/01/00) Aaa 11/00 at 102 $ 22,599,400 Orange County Housing Finance Authority, GNMA Collateralized Mortgage Revenue Refunding Bonds, 1990 Series A: 2,600,000 7.500%, 7/01/10 Aaa 7/00 at 103 2,764,294 11,035,000 7.600%, 1/01/24 Aaa 7/00 at 103 11,734,288 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 5.2% 5,990,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series Q, 8.375%, 1/01/16 A 1/98 at 102 6,383,603 5,000,000 Municipal Electric Authority of Georgia, General Power Revenue Bonds, 1987A Series, 8.375%, 1/01/20 A 1/97 at 102 5,132,600 5,250,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series O, 8.125%, 1/01/17 A 1/98 at 102 5,580,225 3,225,000 Urban Residential Finance Authority of the City of Atlanta, Georgia, Single Family Mortgage Revenue Bonds (GNMA Collateralized Home Mortgage Program), Series 1988, in cooperation with the Housing Authority of Fulton County, Georgia), 8.250%, 10/01/21 (Alternative Minimum Tax) AAA 10/98 at 103 3,375,285 10,000,000 Development Authority of Monroe County (Georgia), Pollution Control Revenue Bonds (Georgia Power Company Plant Scherer Project), Second Series 1994, 6.750%, 10/01/24 A1 10/99 at 102 10,438,400 2,250,000 Municipal Electric Authority of Georgia, Project One Special Obligation Bonds, Fourth Crossover Series, 6.500%, 1/01/20 A No Opt. Call 2,471,985 7,325,000 Wayne County Development Authority, Solid Waste Disposal Revenue Bonds (ITTRayonier, Inc. Project), Series 1990, 8.000%, 7/01/15 (Alternative Minimum Tax) BBB+ 1/00 at 102 7,878,917 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 5.5% 5,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1989B (ServantCor), 7.875%, 8/15/19 (Pre-refunded to 8/15/99) N/R 8/99 at 102 5,519,900 3,305,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1990 (Riverside Senior Living Center Project), 7.500%, 11/01/20 (Pre-refunded to 11/01/00) A 11/00 at 102 3,583,975 7,500,000 Community College District No. 508, Cook County, Illinois, Certificates of Participation, 8.750%, 1/01/07 Aaa No Opt. Call 9,567,300 5,900,000 Community Unit School District Number 7, Madison County, Illinois, School Building Bonds, Series 1994, 5.850%, 2/01/13 Aaa No Opt. Call 6,120,070 3,585,000 City of Pekin, Illinois, Multi-Family Housing Refunding Revenue Bonds, Series 1992A (FHA Insured Mortgage Loan - Section 8 Assisted Project), 6.875%, 5/01/22 AAA 5/03 at 103 3,780,454 2,795,000 City of Peoria, Peoria County, Illinois, City of Pekin, Tazewell and Peoria Counties, Illinois, and City of Waukegan, Lake County, Illinois, Jointly, GNMA Collateralized Mortgage Revenue Bonds, Series 1990, 7.875%, 8/01/22 (Alternative Minimum Tax) AAA 8/00 at 103 2,945,790 860,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992B, 9.000%, 6/01/07 Aaa No Opt. Call 1,133,721 5,390,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992A, 9.000%, 6/01/07 Aaa No Opt. Call 7,105,529 Southwestern Illinois Development Authority, Solid Waste Disposal Revenue Bonds (Leclede Steel Company Project), Series 1990: 740,000 8.375%, 8/01/08 (Alternative Minimum Tax) A- 8/00 at 103 817,367 2,910,000 8.500%, 8/01/20 (Alternative Minimum Tax) A- 8/00 at 103 3,226,288 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE INDIANA - 0.8% $ 6,000,000 Hospital Authority of Delaware County (Indiana), Hospital Revenue Bonds, Series 1991 (Ball Memorial Hospital), 6.625%, 8/01/16 Aaa 8/01 at 102 $ 6,468,960 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.9% 5,060,000 City of Topeka, Kansas, Variable Rate Demand Industrial Revenue Refunding Bonds, Series 1988 (Sunwest Hotel Corporation Project), 9.500%, 10/01/16 (Alternative Minimum Tax) (Pre-refunded to 8/15/16) AAA 8/16 at 100 6,834,289 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 2.2% Kentucky Development Finance Authority, Medical Center Revenue Refunding and Improvement Bonds (Ashland Hospital Corporation d/b/a King's Daughters' Hospital): 1,550,000 9.750%, 8/01/11 (Pre-refunded to 2/01/98) A 2/98 at 102 1,681,146 950,000 9.750%, 8/01/11 A 2/98 at 102 1,021,687 2,120,000 Kentucky Housing Corporation, Housing Revenue Bonds (FHA Insured/ VA Guaranteed), 1990 Series C Bonds, 8.100%, 1/01/22 (Alternative Minimum Tax) Aaa 7/00 at 102 2,238,868 12,500,000 County of Jefferson, Kentucky, Pollution Control Revenue Bonds, 1995 Series A (Louisville Gas and Electric Company Project), 5.900%, 4/15/23 AA 4/05 at 102 12,648,375 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 6.0% 15,660,000 Louisiana Public Facilities Authority, Fixed Rate Health and Education Capital Facilities Revenue Bonds (West Jefferson Medical Center), Series 1985D, 7.900%, 12/01/15 Aaa 12/98 at 102 17,069,243 2,550,000 Louisiana Public Facilities Authority (West Jefferson Medical Center), 7.900%, 12/01/15 (Pre-refunded to 12/01/98) Aaa 12/98 at 102 2,788,068 5,485,000 Louisiana Public Facilities Authority, Extended Care Facilities Revenue Bonds (Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/04 BBB No Opt. Call 6,719,619 5,460,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1990A, 7.875%, 8/01/23 (Alternative Minimum Tax) Aaa 8/00 at 102 5,767,671 11,545,000 Orleans Parish School Board, Public School Refunding Bonds, Series 1987 (Defeased), 9.000%, 2/01/09 Aaa No Opt. Call 15,425,159 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.7% 5,510,000 Maine State Housing Authority, Mortgage Purchase Bonds, 1994 Series C-2, 6.875%, 11/15/23 (Alternative Minimum Tax) AA- 10/04 at 102 5,736,681 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.3% 2,000,000 City of Gaithersburg (Maryland), First Mortgage Economic Development Revenue Bonds (Ashbury Methodist Home, Incorporated Facility), Series 1990, 7.850%, 1/01/20 (Pre-refunded to 1/01/00) N/R 1/00 at 102 2,244,160 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 6.5% 6,135,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Goddard Memorial Hospital Issue, Series B, 9.000%, 7/01/15 Baa 7/00 at 102 6,798,132 3,810,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Goddard Memorial Hospital Issue, Series B, 9.000%, 7/01/15 (Pre-refunded to 7/01/00) Baa 7/00 at 102 4,440,136 1,250,000 Massachusetts Housing Finance Agency, Residential Housing Revenue Bonds, 1988 Series B, 8.100%, 8/01/23 (Alternative Minimum Tax) BBB+ 8/99 at 102 1,312,650 Massachusetts Water Resources Authority, General Revenue Bonds, 1990 Series A: 15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 16,801,800 4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 4,464,760 16,250,000 City of Boston, Massachusetts, Revenue Bonds, Boston City Hospital (FHA Insured Mortgage), Series A, 7.625%, 2/15/21 (Pre-refunded to 8/15/00) Aaa 8/00 at 102 18,319,438 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE MINNESOTA - 2.7% $ 5,000,000 The Dakota County Housing and Redevelopment Authority, The Washington County Housing and Redevelopment Authority, and The City of Bloomington, Minnesota, Single Family Residential Mortgage Revenue Bonds (GNMA Mortgage-Backed Program), Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) Aaa No Opt. Call $ 6,323,200 2,860,000 City of Hopkins, Minnesota, Elderly Housing Revenue Refunding Bonds (St. Therese Southwest, Inc. Project), Series 1994A, 6.500%, 3/01/19 AA 3/04 at 102 2,952,521 1,165,000 Housing and Redevelopment Authority of the City of St. Paul, Minnesota, District Heating Revenue Bonds, Custodial Receipts, Series I, 9.250%, 12/01/97 A1 No Opt. Call 1,227,549 10,565,000 Housing and Redevelopment Authority of the City of St. Paul, Minnesota, District Heating Revenue Bonds, Custodial Receipts, Series II, 9.250%, 12/01/97 A1 No Opt. Call 11,132,235 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.6% 1,385,000 Mississippi Home Corporation, Single Family Senior Revenue Refunding Bonds, Series 1990A, 9.250%, 3/01/12 Aaa 9/00 at 103 1,495,592 2,800,000 Mississippi Housing Finance Corporation, Single Family Mortgage Purchase Revenue Bonds, Series 1989 (GNMA Mortgage-Backed Securities Program), 8.250%, 10/15/18 (Alternative Minimum Tax) Aaa 10/99 at 102 2,944,956 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.1% 3,300,000 Nebraska Higher Education Loan Program, Inc., Student Loan Program Revenue Bonds, 1993 Series B, 5.875%, 6/01/14 (Alternative Minimum Tax) A 6/04 at 102 3,211,725 13,330,000 Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 13,529,284 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 0.7% 5,400,000 State of Nevada, Colorado River Commission, General Obligation (Limited Tax) (Additionally Secured by Pledged Revenues), Hoover Uprating Refunding Bonds, 1992 Series, 8.000%, 10/01/15 (Pre-refunded to 10/01/97) Aaa 10/97 at 102 5,698,080 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.2% 9,400,000 Incorporated County of Los Alamos, New Mexico, Utility System Refunding Revenue Bonds, Series 1986A, 7.750%, 1/01/15 (Pre-refunded to 1/01/97) N/R 1/97 at 102 9,647,972 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 12.3% 5,890,000 Dormitory Authority of the State of New York, City University System Consolidated Second General Resolution Revenue Bonds, Series 1990C, 9.250%, 7/01/98 Baa1 No Opt. Call 6,345,120 14,235,000 Dormitory Authority of the State of New York, City University System Consolidated Second General Resolution Revenue Bonds, Series 1990D, 8.750%, 7/01/02 Baa1 No Opt. Call 16,744,915 10,000,000 Dormitory Authority of the State of New York, City University System Consolidated, Second General Resolution Revenue Bonds, Series 1990F, 7.875%, 7/01/17 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 11,345,400 Dormitory Authority of the State of New York, State University Educational Facilities, Revenue Bonds, Series 1989B: 7,935,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 8,814,198 1,025,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) AAA 5/00 at 102 1,138,570 10,000,000 New York State Medical Care Facilities Finance Agency, Hospital Insured Mortgage Revenue Bonds, 1987 Series A Refunding, 8.000%, 2/15/25 (Pre-refunded to 8/15/97) Aaa 8/97 at 102 10,515,700 5,000,000 New York State Medical Care Facilities Finance Agency, St. Luke's-Roosevelt Hospital Center, FHA-Insured Mortgage Revenue Bonds, 1989 Series B, 7.450%, 2/15/29 (Pre-refunded to 2/15/00) Aaa 2/00 at 102 5,555,250 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE NEW YORK (CONTINUED) $ 3,500,000 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series HH-3, 7.950%, 4/01/22 (Alternative Minimum Tax) Aa 6/00 at 102 $ 3,720,115 6,655,000 Municipal Assistance Corporation for the City of New York (A Public Benefit Corporation of the State of New York), Series 61 Bonds, 6.875%, 7/01/07 Aa 7/97 at 102 6,911,683 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Fiscal 1991 Series A: 10,200,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) Aaa 6/00 at 101 1/2 11,390,748 6,395,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) A 6/00 at 100 6,717,372 5,105,000 6.000%, 6/15/20 A 6/00 at 100 5,130,066 4,200,000 New York City Industrial Development Agency, Special Facility Revenue Bonds (1990 American Airlines, Inc. Project), 8.000%, 7/01/20 (Alternative Minimum Tax) Baa2 1/99 at 102 4,446,666 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.4% 2,795,000 Charlotte Mortgage Revenue Refunding Bonds (FHA Insured Mortgage- Double Oaks Apartments), 7.350%, 5/15/26 AAA 11/07 at 100 3,011,976 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.4% 2,500,000 State of Oregon, Department of General Services, Certificates of Participation (1990 Real Property Financing Program), Series F, 7.500%, 9/01/15 (Pre-refunded to 9/01/00) Aaa 9/00 at 102 2,814,175 8,990,000 Northern Wasco County People's Utility District, Wasco County, Oregon, McNary Dam Fishway Hydroelectric Project Revenue Bonds, Series 1993 (Bonneville Power Administration), 5.200%, 12/01/24 Aa1 12/03 at 102 8,322,313 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.5% 7,565,000 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 1990-28, 7.650%, 10/01/23 (Alternative Minimum Tax) AA+ 10/00 at 102 7,967,231 4,905,000 McKean County Hospital Authority, Hospital Revenue Bonds, Series of 1990 (Bradford Hospital Project), 8.875%, 10/01/20 BBB- 10/00 at 102 5,703,583 7,040,000 City of Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 1993, 5.000%, 6/15/16 Aaa 6/03 at 100 6,489,261 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.0% 10,000,000 Rhode Island Housing and Mortgage Finance Corporation, Series 3-B Bonds, 8.050%, 4/01/22 (Alternative Minimum Tax) AA+ 10/00 at 102 10,525,800 4,890,000 Newport Housing Development Corporation, 1995 Multi-Family Mortgage Revenue Refunding Bonds (Broadway-West Broadway Apartments - FHA Insured Mortgage, Section 8 Assisted Project), Series A, 6.800%, 8/01/24 AAA 6/03 at 100 5,135,185 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 3.0% 3,475,000 South Carolina State Housing Finance and Development Authority, Homeownership Mortgage Purchase Bonds, 1990 Series C, 7.750%, 7/01/22 (Alternative Minimum Tax) Aa 7/00 at 102 3,660,357 19,800,000 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, 1986 Refunding Series A, 7.250%, 1/01/22 Baa1 1/97 at 101 1/2 20,208,672 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.5% 3,595,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue H, Series 1988, 7.825%, 7/01/15 (Alternative Minimum Tax) Aa 7/12 at 100 3,736,104 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 5.0% 2,000,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1990A, 8.125%, 2/01/20 (Alternative Minimum Tax) BBB+ 2/00 at 102 2,195,420 12,110,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1986, 8.250%, 12/01/16 (Alternative Minimum Tax) BBB+ 12/96 at 102 12,397,128 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE TEXAS (CONTINUED) $ 4,295,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1989A, 8.250%, 1/01/19 (Alternative Minimum Tax) BBB+ 1/99 at 102 $ 4,634,219 3,500,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Refunding Bonds (Texas Utilities Electric Company Project), Series 1993A, 5.500%, 5/01/22 Aaa 11/03 at 102 3,395,070 2,270,000 The Cameron County Housing Finance Corporation, GNMA Collateralized Mortgage Revenue Refunding Bonds, 1990 Series B, 7.850%, 3/01/24 Aaa 9/00 at 103 2,431,919 Dallas Housing Corporation Refunding and Capital Program Revenue Bonds (Section 8 Assisted Projects), Series 1990: 1,000,000 7.700%, 8/01/05 A 8/00 at 102 1,072,920 2,000,000 7.850%, 8/01/13 A 8/00 at 102 2,141,820 10,000,000 Harris County Hospital District Refunding Revenue Bonds, Texas, Series 1990, 7.400%, 2/15/10 Aaa No Opt. Call 11,920,300 - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.5% 3,955,000 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 1, 8.150%, 5/01/25 (Alternative Minimum Tax) A1 11/00 at 102 4,182,729 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 7.6% 11,320,000 State of Washington, General Obligation Bonds, Series 1994A, 4.750%, 10/01/13 Aa 10/03 at 100 10,190,377 3,000,000 Washington Health Care Facilities Authority Revenue Bonds, Series 1990 (Franciscan Health System/St. Francis Community Hospital of Federal Way), 7.250%, 7/01/15 Aaa 7/00 at 102 3,301,500 2,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1990C, 8.000%, 7/01/17 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 2,275,640 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue Bonds, Series 1989A: 1,745,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 1,916,916 1,460,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aa1 7/99 at 102 1,605,387 5,650,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00) Aa1 7/00 at 102 6,241,329 15,850,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15 Aaa 7/03 at 102 15,428,390 4,500,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15 Aa1 7/03 at 102 4,232,025 13,900,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 15,314,880 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.4% 3,145,000 Wisconsin Housing and Economic Development Authority, Home Ownership Revenue Bonds, 1989 Series B, 7.600%, 3/01/15 Aa 9/99 at 102 3,312,000 - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.4% 3,450,000 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds (Series X), 5.500%, 7/01/19 A 7/03 at 101 1/2 3,288,747 - ------------------------------------------------------------------------------------------------------------------------------------ $725,295,000 Total Investments - (cost $727,338,246) - 97.9% 781,881,599 ============------------------------------------------------------------------------------------------------------------------------ PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.4% $ 500,000 California Pollution Control Financing Authority, Pollution Control Revenue Bonds (Shell Oil Company Project), 1991 Series A, Variable Rate Demand Bonds, 3.500%, 10/01/08+ VMIG-1 $ 500,000 500,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility Revenue Bonds (American Airlines, Inc. Project), Series 1983B, Variable Rate Demand Bonds, 3.650%, 12/01/17+ P-1 500,000 500,000 New York City Municipal Water Finance, Water and Sewer System Revenue 1944 G, Variable Rate Demand Bonds, 3.600%, 6/15/24+ VMIG-1 500,000 1,300,000 North Central Texas Health Facilities Development Corporation, Hospital Revenue Bonds, Series 1985-B (Methodist Hospitals of Dallas), Variable Rate Demand Bonds, 3.650%, 10/01/15+ A-1 1,300,000 - ------------------------------------------------------------------------------------------------------------------------------------ $ 2,800,000 Total Temporary Investments - 0.4% 2,800,000 ===========------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 13,667,767 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $798,349,366 ==================================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 53 $425,640,123 55% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 20 143,002,475 18 PORTFOLIO OF A+ A1 5 32,376,077 4 INVESTMENTS A, A- A, A2, A3 15 51,461,526 7 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 16 111,989,366 14 TEMPORARY Non-rated Non-rated 3 17,412,032 2 INVESTMENTS): - ----------------------------------------------------------------------------------------------------------------------- TOTAL 112 $781,881,599 100% ======================================================================================================================= * Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. ** Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + 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.
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. (NQS)
PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE ALABAMA - 0.4% $ 2,900,000 The Water Works Board of the City of Arab (Alabama), Water Revenue Bonds, Series 1991, 7.050%, 8/01/16 Aaa 8/01 at 102 $ 3,247,188 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.4% 4,915,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Refunding Bonds, 1991 Series A (FHA Insured or VA Guaranteed Mortgage Loans), 8.000%, 8/15/11 AA 8/01 at 103 5,309,576 4,500,000 City of Little Rock, Arkansas, Hotel and Restaurant Gross Receipts Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15 A No Opt. Call 5,369,535 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 5.8% 4,000,000 Sisters of Charity of Leavenworth Health Services Corporation, Certificates of Participation, California Statewide Communities Development Authority, Sisters of Charity of Leavenworth Health Services Corporation, 5.000%, 12/01/23 Aa at 102 3,528,200 3,200,000 State of California, Department of Water Resources, Central Valley Project, Water System Revenue Bonds, Series M, 4.875%, 12/01/27 Aa 12/03 at 101 2,769,632 7,000,000 Department of Water and Power of The City of Los Angeles, Electric Plant Refunding Revenue Bonds, Issue of 1993, 5.375%, 9/01/23 Aa 9/03 at 102 6,556,480 6,710,000 Department of Water and Power of The City of Los Angeles, Water Works Refunding Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/11 Aa 5/03 at 102 5,966,935 21,800,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A Sales Tax Revenue Refunding Bonds, Series 1993-A, 6.750%, 7/01/20 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 24,367,822 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 6.0% 20,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A, 8.750%, 11/15/23 (Alternative Minimum Tax) Baa 11/01 at 102 23,679,600 5,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 5,540,700 12,150,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C, 6.750%, 11/15/22 (Alternative Minimum Tax) Baa 11/02 at 102 12,602,588 2,560,000 Jefferson County, Colorado, Single Family Revenue Refunding Bonds, Series 1991A, 8.875%, 10/01/13 Aaa 4/01 at 103 2,760,653 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 2.3% 7,500,000 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, 1991 Series A, 10.000%, 8/15/21 (Pre-refunded to 8/15/01) N/R 8/01 at 103 9,246,975 7,885,000 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, 1994 Series A, 7.250%, 8/15/21 N/R 8/04 at 102 8,184,709 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.2% 1,615,000 District of Columbia Housing Finance Agency, Collateralized Single Family Mortgage Revenue Bonds, Series 1990A, 8.100%, 12/01/23 (Alternative Minimum Tax) AAA 12/00 at 102 1,704,746 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 3.7% 4,500,000 Jacksonville Electric Authority (Jacksonville, Florida), Electric System Revenue Bonds, Series Two, 1987A-2, 7.500%, 10/01/02 (Pre-refunded to 10/01/97) Aaa 10/97 at 101 1/2 4,715,010 14,250,000 Jacksonville Electric Authority (Jacksonville, Florida), Bulk Power Supply System Revenue Bonds (Scherer 4 Project, Issue One, Series 1991A), 6.750%, 10/01/21 (Pre-refunded to 10/01/00) Aaa 10/00 at 101 1/2 15,652,058 7,400,000 State of Florida, Orlando-Orange County Expressway Authority, Junior Lien Revenue Refundings Bonds, Series of 1993A, 5.125%, 7/01/20 Aaa 7/03 at 102 6,872,972 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE GEORGIA - 0.4% $ 2,505,000 Urban Residential Finance Authority of the City of Atlanta, Georgia, Single Family Mortgage Revenue Bonds (GNMA Collateralized Home Mortgage Program), Series 1988, in cooperation with the Housing Authority of Fulton County, Georgia, 8.250%, 10/01/21 (Alternative Minimum Tax) AAA 10/98 at 103 $ 2,621,733 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 2.5% 16,000,000 Department of Budget and Finance of the State of Hawaii, Special Purpose Revenue Bonds, Kapiolani Health Care System Obligated Group (Pali Momi Medical Center Project), Series 1991, 7.650%, 7/01/19 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 18,347,840 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 5.3% Illinois Development Finance Authority, Multi-Family Housing Bonds, Series 1990 (Affordable Housing Preservation Foundation Project), Subseries A (FHA Insured Mortgage Loans-Lawless Gardens Project): 775,000 7.650%, 7/01/07 AAA 1/02 at 105 861,769 6,780,000 7.650%, 12/31/31 AAA 1/02 at 105 7,426,676 10,875,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue Bonds, The University of Chicago, Series 1985, Conversion To A Fixed Interest Rate, 5.700%, 12/01/25 Aa1 12/03 at 102 10,566,368 1,585,000 Illinois Housing Development Authority, Multi-Family Housing Bonds, 1991 Series C, 7.400%, 7/01/23 A1 7/01 at 102 1,670,606 14,605,000 City of Chicago, General Obligation Bonds (Emergency Telephone System), Series 1993, 5.625%, 1/01/23 Aaa 1/03 at 102 14,194,746 5,000,000 City of Chicago, General Obligation Bonds, Project and Refunding Series 1995B, 5.125%, 1/01/25 Aaa 1/06 at 102 4,582,450 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.5% 5,060,000 Indiana State Office Building Commission, Capital Complex Revenue Bonds, Series 1987 (State Office Building IIFacility), 8.750%, 7/01/12 (Pre-refunded to 7/01/97) Aaa 7/97 at 102 5,323,980 8,640,000 Avon Community School Building Corporation, First Mortgage Bonds, Series 1994 (Hendricks County, Indiana), 5.500%, 1/01/16 Aaa 1/04 at 101 8,356,262 5,310,000 Beacon Heights Housing Development Corporation, 1991 Multi-Family Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-Section 8 Assisted Project), Series A, 7.625%, 2/01/21 AAA 6/01 at 100 5,611,820 5,770,000 Fremont Middle School Building Corporation, First Mortgage Refunding Bonds, Series 1994 A, Steuben County, Indiana, 5.250%, 1/15/13 Aaa 1/04 at 101 5,547,336 1,125,000 Michigan City Housing Development Corporation, 1991 Multi-Family Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-Section 8 Assisted Project), Series A, 7.625%, 2/01/21 AAA 6/01 at 100 1,188,945 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 2.6% 9,405,000 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991C (Shawnee Mission Medical Center, Inc. Project), 7.250%, 9/01/04 A- 9/01 at 102 9,998,361 8,800,000 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991B (Shawnee Mission Medical Center, Inc. Project), 7.250%, 9/01/21 A- 9/01 at 102 9,319,816 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.9% 3,015,000 Lakeland Wesley Village, Inc., Mortgage Revenue Refunding Bonds (Lakeland Wesley Village I Elderly Section 8 Assisted Project/FHA Insured Mortgage), Series 1991, 7.500%, 11/01/21 Aa 11/01 at 103 3,201,176 3,500,000 Regional Airport Authority of Louisville and Jefferson County, Kentucky, Airport System Revenue Bonds, 1993 Series C, 5.500%, 7/01/23 (Alternative Minimum Tax) Aaa 7/03 at 102 3,351,215 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.2% 1,655,000 Calcasieu Parish Public Trust Authority, Mortgage Revenue Refunding Bonds, 1991 Series A, 7.750%, 6/01/12 A1 6/01 at 103 1,781,608 PRINCIPAL RAT- OPT.CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE MASSACHUSETTS - 4.8% $ 2,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lowell General Hospital Issue, Series A, 8.400%, 6/01/11 Baa1 6/01 at 102 $ 2,183,860 2,100,000 Massachusetts Housing Finance Agency, Residential Housing Revenue Bonds, 1988 Series A, 8.400%, 8/01/21 (Alternative Minimum Tax) BBB+ 8/98 at 102 2,208,633 1,660,000 Massachusetts Housing Finance Agency, Residential Housing Revenue Bonds, 1989 Series A, 8.200%, 8/01/27 (Alternative Minimum Tax) BBB+ 8/99 at 102 1,752,877 19,025,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1990 Series A, 6.000%, 4/01/20 A 4/00 at 100 19,079,031 4,385,000 Boston Housing Development Corporation, Mortgage Revenue Refunding Bonds, Series 1994A (FHA Insured Mortgage Loans-Section 8 Assisted Projects), 5.500%, 7/01/24 Aaa 1/04 at 102 4,187,017 6,300,000 Somerville Housing Authority, Mortgage Revenue Bonds, Series 1990 (GNMA Collateralized - Clarendon Hill Towers Project), 7.950%, 11/20/30 AAA 5/00 at 102 6,714,603 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.2% 7,890,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 A 8/01 at 102 8,651,464 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.4% 4,431,644 The Chisago County Housing and Redevelopment Authority, The Southcentral Multi-County Housing and Redevelopment Authority, The Stearns County Housing and Redevelopment Authority, Single Family Mortgage Revenue Bonds, FNMA, Series 1994B, 7.050%, 9/01/27 (Alternative Minimum Tax) AAA3/04 at 102 27/32 4,718,105 The Dakota Washington, and Stearns Counties Housing and Redevelopment Authority, Single Family Mortgage Revenue Refunding Bonds (Fannie Mae Mortgage-Backed Securities Program), Series 1994A: 3,195,000 6.600%, 9/01/17 (Alternative Minimum Tax) AAA 3/04 at 102 3,330,149 2,255,000 6.700%, 3/01/21 (Alternative Minimum Tax) AAA 3/04 at 102 2,359,767 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.2% 1,475,000 Goodman Housing Development Corporation, 1991 Multi-Family Mortgage Revenue Refunding Bonds (Goodhaven Manor-FHA Insured Mortgage, Section 8 Assisted Project), Series A, 7.625%, 2/01/22 AAA 8/01 at 100 1,559,518 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.5% 10,550,000 Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 10,977,486 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.4% 10,000,000 Clark County School District, Nevada, General Obligation (Limited Tax), School Improvement Bonds, Series 1996, 6.000%, 6/15/15 Aaa 6/06 at 101 10,271,900 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 3.1% 4,420,000 New Jersey Housing and Mortgage Finance Agency, Section 8 Bonds, 1991 Series A, 6.850%, 11/01/06 AA+ 11/01 at 102 4,757,246 18,835,000 The Pollution Control Financing Authority of Salem County, Pollution Control Revenue Refunding Bonds, 1993 Series C (Public Service Electric & Gas Company Project), 5.550%, 11/01/33 Aaa 11/03 at 102 18,246,218 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 2.3% 1,690,000 New Mexico Mortgage Finance Authority, Single Family Mortgage Program Senior Bonds, 1989 Series A (Federally Insured or Guaranteed Mortgage Loans), 7.800%, 3/01/21 (Alternative Minimum Tax) AA- 9/99 at 102 1,765,543 14,050,000 City of Farmington, New Mexico, Pollution Control Refunding Revenue Bonds (Southern California Edison Company Four Corners Project), 1991 Series A, 7.200%, 4/01/21 A+ 4/01 at 102 15,296,657 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE NEW YORK - 7.1% $ 6,000,000 New York Local Government Assistance Corporation (A Public Benefit Corporation of the State of New York), Series 1991D Bonds, 7.000%, 4/01/18 (Pre-refunded to 4/01/02) Aaa 4/02 at 102 $ 6,797,100 1,750,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home, FHA Insured Mortgage Revenue Bonds, 1988, 8.000%, 2/15/28 (Pre-refunded to 8/15/98) AAA 8/98 at 102 1,899,713 New York State Medical Care Facilities Finance Agency, Mental Health Service Facilities Improvement Revenue Bonds, 1991 Series B: 1,615,000 7.600%, 2/15/06 Baa1 8/01 at 102 1,771,849 1,590,000 7.600%, 8/15/06 Baa1 8/01 at 102 1,744,421 8,050,000 7.625%, 8/15/17 Baa1 8/01 at 102 9,024,131 5,425,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series D, 7.400%, 2/15/18 Baa1 2/02 at 102 6,016,868 6,000,000 New York State Urban Development Corporation, Correctional Capital Facilities Revenue Bonds, Series 2, 7.500%, 1/01/18 (Pre-refunded to 1/01/01) Aaa 1/01 at 102 6,792,060 3,410,000 State of New York Mortgage Agency, Mortgage Revenue Bonds, Ninth Series B, 8.000%, 10/01/02 (Alternative Minimum Tax) Aa 7/97 at 102 3,519,870 The City of New York General Obligation Bonds, Fiscal 1991 Series F, Tax-Exempt Bonds: 4,600,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) Aaa 11/01 at 101 1/2 5,432,554 400,000 8.250%, 11/15/10 Baa1 11/01 at 101 1/2 450,228 7,130,000 8.250%, 11/15/15 (Pre-refunded to 11/15/01) Aaa 11/01 at 101 1/2 8,420,459 620,000 8.250%, 11/15/15 Baa1 11/01 at 101 1/2 708,114 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.4% 18,555,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Refunding Series 1993 B, 5.500%, 1/01/17 Aaa 1/03 at 100 18,036,202 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.7% 2,865,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest Ohio Bond Fund), Series 1989D, 8.500%, 11/15/00 (Alternative Minimum Tax) N/R 11/97 at 101 2,931,697 1,355,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest Ohio Bond Fund), Series 1989C, 8.400%, 11/15/09 (Alternative Minimum Tax) N/R 11/00 at 102 1,412,086 535,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest Ohio Bond Fund), Series 1990D, 8.500%, 5/15/00 (Alternative Minimum Tax) N/R No Opt. Call 600,559 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 5.3% 16,090,000 Oklahoma County Home Finance Authority (Oklahoma County, Oklahoma), Single Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 A1 7/01 at 102 17,036,414 21,025,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) Baa2 6/01 at 102 22,648,551 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.5% 3,750,000 Hospital Facility Authority of Hillsboro, Oregon, Hospital Revenue and Advance Refunding Bonds, Series 1993 (Tuality Healthcare), 5.750%, 10/01/12 BBB+ 10/04 at 102 3,583,500 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.9% 3,000,000 Pennsylvania Higher Education Assistance Agency Student Loan Revenue Bonds, Fixed Rate Bonds, 1991 Series C, 7.150%, 9/01/21 (Alternative Minimum Tax) Aaa 9/01 at 102 3,201,330 10,000,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue Bonds, Sixteenth Series, 7.000%, 8/01/18 (Pre-refunded to 8/01/01) AAA 8/01 at 100 11,059,800 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE RHODE ISLAND - 1.1% Rhode Island Housing and Mortgage Finance Corporation, Homeownership Opportunity Bonds: $ 4,650,000 8.200%, 10/01/17 (Alternative Minimum Tax) AA+ 10/98 at 102 $ 4,882,733 3,535,000 8.250%, 10/01/22 (Alternative Minimum Tax) AA+ 10/98 at 102 3,683,647 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 0.7% 5,000,000 Oconee County, South Carolina, Pollution Control Facilities Revenue Refunding Bonds, Series 1993 (Duke Power Company Project), 5.800%, 4/01/14 Aa2 4/03 at 102 5,099,700 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.3% 7,790,000 City of Sioux Falls, South Dakota, Variable Rate Demand Industrial Revenue Refunding Bonds, Series 1989 (Great Plains Hotel Corporation Project), 8.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded to 10/15/14) AAA 10/14 at 100 9,975,329 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.4% 9,810,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue V, 7.650%, 7/01/22 (Alternative Minimum Tax) Aa 7/01 at 102 10,274,209 7,220,000 The Metropolitan Government of Nashville and Davidson County (Tennessee), General Obligation Multi-Purpose Improvement Bonds, Series 1994, 6.150%, 5/15/25 Aa 5/02 at 102 7,436,672 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 7.6% 9,505,000 City of Austin, Texas, Water, Sewer and Electric Refunding Revenue Bonds, Series 1982, 14.250%, 11/15/06 (Pre-refunded to 5/15/97) Aaa 5/97 at 100 10,032,337 8,580,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1990A, 8.125%, 2/01/20 (Alternative Minimum Tax) BBB+ 2/00 at 102 9,418,352 6,480,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1989A, 8.250%, 1/01/19 (Alternative Minimum Tax) BBB+ 1/99 at 102 6,991,790 3,500,000 Comal County Health Facilities Development Corporation, Hospital Revenue Refunding Bonds (McKenna Memorial Hospital FHA Insured Project), Series 1991, 7.375%, 1/15/21 AAA 1/01 at 102 3,668,735 13,310,000 El Paso Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1991A, 8.750%, 10/01/11 A 4/01 at 103 14,415,396 3,225,000 The Harrison County Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1991, 8.875%, 12/01/11 A 12/01 at 103 3,430,626 2,195,000 Panhandle Regional Housing Finance Corporation, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1991A, 6.500%, 5/01/24 (Alternative Minimum Tax) AAA 5/01 at 100 2,285,258 7,020,000 Winter Garden Housing Finance Corporation, Single Family Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1994, 6.950%, 10/01/27 (Alternative Minimum Tax) AAA 4/04 at 103 7,386,093 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 2.3% 16,145,000 Intermountain Power Agency (Utah), Power Supply Revenue Bonds, Series 1987B, 7.200%, 7/01/19 Aa 7/97 at 102 16,775,624 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 10.6% 5,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1990C, 8.000%, 7/01/17 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 5,689,100 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1989B, 7.400%, 7/01/09 (Pre-refunded to 1/01/00) Aa1 1/00 at 102 4,429,760 2,000,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue Bonds, Series 1990A, 7.375%, 7/01/12 (Pre-refunded to 7/01/00) AAA 7/00 at 102 2,227,980 5,000,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00) Aa1 7/00 at 102 5,523,300 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE WASHINGTON (CONTINUED) $ 10,010,000 Washington Public Power Supply System Nuclear Project No. 2 Refunding Revenue Bonds, Series 1992A, 6.250%, 7/01/12 Aa1 7/02 at 102 $ 10,225,615 5,000,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/11 Aa1 7/04 at 102 4,793,950 7,560,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1989B, 5.500%, 7/01/17 Aa1 1/00 at 100 7,136,338 3,935,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993C 5.375%, 7/01/15 Aa1 7/03 at 102 3,700,671 24,060,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 26,509,067 Municipality of Metropolitan Seattle, (Seattle, Washington), Sewer Refunding Revenue Bonds, Series Z: 2,160,000 5.450%, 1/01/16 Aaa 1/03 at 102 2,076,667 3,095,000 5.450%, 1/01/17 Aaa 1/03 at 102 2,972,252 2,490,000 5.450%, 1/01/19 Aaa 1/03 at 102 2,365,474 1,800,000 5.450%, 1/01/20 Aaa 1/03 at 102 1,708,037 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.8% 11,080,000 Wisconsin Center District, Junior Dedicated Tax Revenue Bonds, Series 1996B, 5.750%, 12/15/27 A 12/06 at 101 11,023,491 2,100,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds (Wausau Hospitals, Inc. Project), Series 1991B, 6.700%, 8/15/20 Aaa 2/01 at 102 2,259,494 - ------------------------------------------------------------------------------------------------------------------------------------ $683,571,644 Total Investments - (cost $674,808,932) - 96.8% 721,573,363 ============------------------------------------------------------------------------------------------------------------------------ TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.6% $ 1,500,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility Revenue Bonds (American Airlines, Inc. Project), Series 1983B, Variable Rate Demand Bonds, 3.650%, 12/01/17+ P-1 1,500,000 1,900,000 The Metropolitan Nashville Airport Authority, Special Facility Revenue Bonds (American Airlines, Inc. Project), Series B, Variable Rate Demand Bonds, 3.650%, 10/01/12+ A-1+ 1,900,000 1,000,000 Parish of West Feliciana, State of Louisiana, Multiple Rate Demand Pollution Control Revenue Bonds (Gulf States Utilities Company Project), Series 1986, Variable Rate Demand Bonds, 3.650%, 4/01/16+ VMIG-1 1,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ $ 4,400,000 Total Temporary Investments - 0.6% 4,400,000 ===========------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.6% 19,085,426 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $745,058,789 ==================================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 49 $339,895,025 48% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 22 131,903,245 18 PORTFOLIO OF A+ A1 4 35,785,285 5 INVESTMENTS A, A- A, A2, A3 8 81,287,720 11 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 16 110,326,062 15 TEMPORARY Non-rated Non-rated 5 22,376,026 3 INVESTMENTS): - ----------------------------------------------------------------------------------------------------------------------- TOTAL 104 $721,573,363 100% ======================================================================================================================= * Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. ** Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + 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 NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. (NQU) PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE ALASKA - 2.0% $ 2,100,000 Alaska Housing Finance Corporation, Collateralized Bonds, 1991 First Series (Veterans Mortgage Program) Issue A-1, 7.125%, 12/01/30 Aaa 6/01 at 102 $ 2,195,487 6,750,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 1992 Series A, 6.600%, 12/01/23 (Pre-refunded to 12/01/02) Aa 12/02 at 102 7,515,923 14,590,000 Alaska State Housing Finance Corporation, Governmental Purpose Bonds, 1995 Series A, 5.875%, 12/01/30 Aaa 12/05 at 102 14,535,871 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.7% 2,215,000 The Industrial Development Authority of the County of Maricopa (Arizona), Single Family Mortgage Revenue Refunding Bonds, 1991 Series A, 7.500%, 8/01/12 Aa 8/01 at 102 2,442,702 5,610,000 Yuma Regional Medical Center on behalf of Hospital District No. 1 of Yuma County, Arizona, Hospital Revenue Improvement and Refunding Bond (Yuma Regional Medical Center Project) Series 1992, 8.000%, 8/01/17 A 8/02 at 101 1/2 6,379,524 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.9% 4,445,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Refunding Bonds, 1991 Series A (FHA Insured or VA Guaranteed Mortgage Loans), 8.000%, 8/15/11 AA 8/01 at 103 4,801,845 6,500,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program), 6.700%, 7/01/27 (Alternative Minimum Tax) AAA 7/05 at 102 6,720,935 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 7.7% 3,000,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 AA 5/03 at 102 2,859,270 4,310,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1991 Series G, 7.050%, 8/01/27 (Alternative Minimum Tax) Aa 8/01 at 102 4,508,993 3,500,000 State Public Works Board of the State of California, Lease Revenue Bonds (The Trustees of The California State University), 1992 Series A (Various California State University Projects), 6.625%, 10/01/10 A 10/02 at 102 3,783,150 17,000,000 State Public Works Board of the State of California Lease Revenue Bonds (Department of Corrections), 1994 Series A (California State of Prison- Monterey County (Soledad II)), 7.000%, 11/01/19 (Pre-refunded to 11/01/04) A 11/04 at 102 19,885,240 Brea Public Financing Authority (Orange County, California), 1991 Tax Allocation Revenue Bonds, Series A (Redevelopment Project AB): 10,580,000 7.000%, 8/01/15 (Pre-refunded to 8/01/01) Aaa 8/01 at 102 11,955,188 4,420,000 7.000%, 8/01/15 Aaa 8/01 at 102 4,901,780 5,000,000 The Community Redevelopment Agency of the City of Los Angeles, California, Central Business District Redevelopment Project Tax Allocation Refunding Bonds, Series G, 6.750%, 7/01/10 BBB 7/97 at 102 5,105,500 5,000,000 Department of Water and Power of the City of Los Angeles, California, ` Water Works Revenue Bonds, Issue of 1992, 6.500%, 4/15/32 Aa 4/02 at 102 5,275,700 7,210,000 Northern California Power Agency, Hydroelectric Project Number One Revenue Bonds, Refunding Series E, 7.150%, 7/01/24 A 7/98 at 102 7,573,817 3,000,000 County of Orange, California, 1996 Recovery Certificates of Participation, Series A, 6.000%, 7/01/26 Aaa 7/06 at 102 3,084,660 2,000,000 City of Redwood City Public Financing Authority, 1991 Local Agency Revenue Bonds, Series B, 7.250%, 7/15/11 A- 7/01 at 102 2,185,900 10,000,000 The City of San Diego, Industrial Development Revenue Refunding Bonds (San Diego Gas & Electric Company) 1993 Series C, 5.900%, 9/01/18 Aaa 9/03 at 102 10,098,400 9,190,000 City of San Jose Financing Authority (Santa Clara County, California) 1993 Revenue Bonds, Series C (Convention Center Refunding Project), 6.400%, 9/01/22 A1 9/01 at 102 9,457,429 3,375,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program), 1991 Issue A, 7.350%, 9/01/24 (Alternative Minimum Tax) AAA 3/01 at 102 3,539,396
PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE COLORADO - 6.3% $ 4,690,000 Colorado Housing Finance Authority, Multi-Family Housing Insured Mortgage Revenue Bonds, 1979 Series A, 6.900%, 10/01/21 Aa 10/97 at 100 $ 4,700,271 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1990A: 9,535,000 8.500%, 11/15/23 (Alternative Minimum Tax) Baa 11/00 at 102 10,926,157 17,350,000 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/00 at 102 19,512,678 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 12,910,000 8.750%, 11/15/23 (Alternative Minimum Tax) Baa 11/01 at 102 15,285,182 4,140,000 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 4,646,984 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 4,000,000 7.300%, 11/15/00 (Alternative Minimum Tax) Baa No Opt. Call 4,340,960 4,000,000 7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 4,432,560 4,850,000 7.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 5,093,470 1,500,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C, 6.350%, 11/15/01 (Alternative Minimum Tax) Baa No Opt. Call 1,583,040 5,110,000 County of Pueblo, Colorado, Hospital Refunding and Improvement Revenue Bonds (Parkview Episcopal Medical Center, Inc. Project), Series 1991B, 8.300%, 9/01/11 (Pre-refunded to 9/01/01) BBB 9/01 at 100 5,937,820 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 3.8% 7,725,000 Charlotte County, Florida, Utility System Refunding Revenue Bonds, Series 1996A, 6.200%, 10/01/23 Aaa 10/97 at 100 7,775,367 5,250,000 Dade County Industrial Development Authority, Solid Waste Disposal Revenue Bonds (Florida Power and Light Company Project), Series 1991, 7.150%, 2/01/23 (Alternative Minimum Tax) AA- 2/01 at 102 5,706,068 13,870,000 Palm Beach County Health Facilities Authority, Hospital Revenue Refunding Bonds, Series 1988 (JFK Medical Center, Inc. Projects), 8.875%, 12/01/18 (Pre-refunded to 12/01/98) N/R 12/98 at 102 15,351,732 8,485,000 St. Lucie County, Florida, Solid Waste Disposal Revenue Bonds (Florida Power and Light Company Project), Series 1991, 7.150%, 2/01/23 (Alternative Minimum Tax) AA- 2/01 at 102 9,239,062 City of Tampa, Florida, Capital Improvement Program Revenue Bonds, Series 1988A: 1,665,000 8.000%, 10/01/02 AA 10/98 at 100 1,778,670 5,830,000 8.250%, 10/01/18 AA 10/98 at 100 6,211,923 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.1% 9,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series O, 8.125%, 1/01/17 A 1/98 at 102 9,566,100 Clayton County Hospital Authority Revenue Anticipation Certificates (Southern Regional Medical Center Project), Georgia, Series 1991: 2,900,000 6.500%, 8/01/10 Aaa 8/01 at 102 3,111,555 4,500,000 7.000%, 8/01/13 Aaa 8/01 at 102 4,968,225 3,000,000 Clayton County Housing Authority, Multi-Family Housing Revenue Bonds, Spring Lake Apartments Project, 8.125%, 12/01/05 (Mandatory put 12/01/97) Baa1 No Opt. Call 3,056,850 15,900,000 The Fulton-DeKalb Hospital Authority, Georgia, Revenue Certificates, Series 1991 (Grady Memorial Hospital), 6.900%, 1/01/20 (Pre-refunded to 1/01/01) Aaa 1/01 at 102 17,601,300 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 7.8% 6,460,000 Illinois Development Finance Authority, Multi-Family Housing Revenue Bonds, Series 1992 (Town and Garden Apartments Project), 7.800%, 3/01/06 (Alternative Minimum Tax) BBB+ 3/02 at 102 6,823,504 14,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1991 (Northwestern Memorial Hospital), 6.750%, 8/15/11 Aa 8/01 at 102 15,416,110 3,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1991 (Sherman Hospital Project), 6.750%, 8/01/21 Aaa 8/01 at 102 3,252,750 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE ILLINOIS (CONTINUED) $ 5,265,000 Illinois Health Facilities Authority (Rockford Memorial Hospital), Revenue Refunding Bonds, Series 1991A, 6.000%, 8/15/21 Aaa 8/01 at 100 $ 5,278,531 2,835,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 A 9/02 at 102 2,980,889 6,000,000 Central Lake County Joint Action Water Agency, Lake County, Illinois, Water Revenue Bonds, Series 1990A, 7.000%, 5/01/19 (Pre-refunded to 5/01/00) Aaa 5/00 at 102 6,596,820 10,000,000 Central Lake County Joint Action Water Agency, Lake County, Illinois, Water Revenue Bonds, Series 1991, 7.000%, 5/01/20 (Pre-refunded to 5/01/01) Aaa 5/01 at 102 11,161,100 7,610,000 City of Chicago, Chicago O'Hare International Airport, Special Facility Revenue Bonds (United Air Lines, Inc. Project), Series 1984C, 8.200%, 5/01/18 Baa2 5/99 at 103 8,274,810 6,665,000 City of Chicago, Chicago O'Hare International Airport, Special Facility Revenue Bonds (United Air Lines, Inc. Project), Series 1984B, 8.850%, 5/01/18 Baa2 11/00 at 103 7,606,298 24,430,000 The County of Cook, Illinois, General Obligation Bonds, Series 1991, 6.750%, 11/01/18 (Pre-refunded to 11/01/01) Aaa 11/01 at 102 27,228,701 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.3% 5,905,000 Indiana Health Facility Finance Authority, Hospital Revenue Bonds, Series 1992 (Community Hospitals Projects), 7.000%, 7/01/11 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 6,611,651 4,000,000 The Indianapolis Local Public Improvement Bond Bank, Series 1992 D Bonds, 6.500%, 2/01/22 A+ 2/98 at 100 4,054,240 5,125,000 City of Petersburg, Indiana, Pollution Control Refunding Revenue Bonds, Series 1995A (Indianapolis Power and Light Company Project) 6.625%, 12/01/24 Aa2 12/04 at 102 5,507,684 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.4% 4,500,000 Polk County, Iowa, Health Facilities Revenue Bonds, Catholic Health Corporation (Mercy Health Center of Central Iowa Project), Series 1991, 6.750%, 11/01/15 Aaa 11/01 at 101 4,882,860 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.5% City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991B (Shawnee Mission Medical Center, Inc. Project): 7,380,000 7.250%, 9/01/11 A- 9/01 at 102 7,896,231 10,000,000 7.250%, 9/01/21 A- 9/01 at 102 10,590,700 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 3.3% 3,000,000 Kentucky Development Finance Authority, Hospital Facilities Revenue Bonds, Series 1991 (St. Claire Medical Center, Inc. Project), 7.125%, 9/01/21 (Pre-refunded to 9/01/01) N/R 9/01 at 102 3,348,600 10,225,000 Kentucky Housing Corporation, Housing Revenue Bonds (Federally Insured or Guaranteed Mortgage Loans), 1995 Series B, 6.625%, 7/01/26 (Alternative Minimum Tax) Aaa 1/05 at 102 10,594,838 10,000,000 City of Danville, Kentucky, Multi-City Lease Revenue Bonds (Louisville and Jefferson County Metropolitan Sewer District Sewer and Drainage System Revenue Project), Fixed Rate Series 1991-G, 6.800%, 3/01/19 (Pre-refunded to 3/01/02) Aaa 3/02 at 102 11,178,600 2,950,000 Greater Kentucky Housing Assistance Corporation, Mortgage Revenue Refunding Bonds, Series 1992B (FHA Insured Mortgage Loans-Section 8 Assisted Projects), 7.625%, 1/01/25 Aaa 1/00 at 102 3,126,204 9,100,000 Jefferson County, Kentucky, Multi-Family Housing Revenue Refunding Bonds (Canter Chase Project), Series 1991, 6.750%, 10/01/21 (Mandatory put 10/01/98) Baa1 10/97 at 100 9,110,829 3,030,000 City of Owensboro, Kentucky, Water Revenue Improvement and Refunding Bonds, Series 1992, 6.250%, 9/15/17 Aaa 9/02 at 100 3,166,411 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE MARYLAND - 1.8% Community Development Administration, Department of Housing and Community Development, State of Maryland, Single Family Program Bonds, 1991 Fourth Series: $ 13,235,000 7.450%, 4/01/20 (Alternative Minimum Tax) Aa 4/01 at 102 $ 13,930,367 3,990,000 7.450%, 4/01/32 (Alternative Minimum Tax) Aa 4/01 at 102 4,190,258 3,385,000 Community Development Administration, Department of Housing and Community Development, State of Maryland, Multi-Family Housing Revenue Bonds (Insured Mortgage Loans), 1991 Series E, 7.100%, 5/15/28 Aa 5/01 at 102 3,550,323 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.9% Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1991 Series A: 10,225,000 7.000%, 3/01/11 (Pre-refunded to 3/01/01) Aaa 3/01 at 102 11,408,339 19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) Aaa 3/01 at 102 21,868,308 5,100,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Medical Center Hospitals Issue, Series F, 6.625%, 7/01/25 Aaa 7/02 at 102 5,527,227 15,000,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 N/R 7/01 at 103 16,721,850 3,300,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds, SEMASS Projects, Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) N/R 7/01 at 103 3,690,192 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.7% 5,000,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 A 8/01 at 102 5,482,550 17,875,000 Michigan Strategic Fund Limited Obligation Refunding Revenue Bonds (The Detroit Edison Company Pollution Control Bonds Project), Collateralized Series 1991DD, 6.875%, 12/01/21 Aaa 12/01 at 102 19,754,914 8,500,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) A1 12/02 at 102 9,179,235 7,000,000 City of Grand Rapids, Michigan, Water Supply System Refunding Revenue Bonds Series 1991, 6.250%, 1/01/11 Aaa 1/01 at 102 7,362,180 3,275,000 Whitehall District Schools General Obligation, 6.150%, 5/01/18 AA 5/02 at 102 3,383,075 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.0% 4,900,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1994 Series J, 6.950%, 7/01/26 (Alternative Minimum Tax) AA+ 1/04 at 102 5,136,033 3,655,000 The Dakota County Housing and Redevelopment Authority, The Washington County Housing and Redevelopment Authority, and The City of Bloomington, Minnesota, Single Family Residential Mortgage Revenue Bonds (GNMA Mortgage-Backed Program), Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) Aaa No Opt. Call 4,622,259 2,465,000 Washington County Housing and Redevelopment Authority, Multi- Family Housing Revenue Bonds (FHA Insured Mortgage Loan- Cottages Phase III Project), Series 1991, 7.650%, 8/01/32 (Alternative Minimum Tax) AAA 8/01 at 102 2,635,110 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.6% 3,405,000 Canton Housing Development Corporation, 1990 Multi-Family Mortgage Revenue Refunding Bonds (Canton Estates Apartments Project - FHA Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/24 AAA No Opt. Call 4,156,994 1,245,000 Charter Mortgage Corporation, 1990 Multi-Family Mortgage Revenue Refunding Bonds (Church Garden Apartments - FHA Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/21 AAA 8/01 at 100 1,496,390 1,365,000 Pearl Housing Development Corporation, 1990 Multi-Family Mortgage Revenue Refunding Bonds (Rose Garden Apartments Project - FHA Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/22 AAA 2/01 at 100 1,430,684 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE MISSOURI - 1.8% Health and Educational Facilities Authority of the State of Missouri, Health Facilities Refunding and Improvement Revenue Bonds (Heartland Health System's Project), Series 1989: $ 3,070,000 7.625%, 10/01/00 BBB+ 10/99 at 102 1/2 $ 3,388,727 6,500,000 8.125%, 10/01/10 BBB+ 10/99 at 102 1/2 7,262,580 The Industrial Development Authority of the County of Jackson, State of Missouri, Health Care System Revenue Bonds, St. Mary's Hospital of Blue Springs Issue, Series 1994: 5,730,000 6.500%, 7/01/12 Baa1 7/02 at 102 5,794,061 5,605,000 7.000%, 7/01/22 Baa1 7/02 at 102 5,835,870 - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.6% 7,000,000 City of Forsyth, Rosebud County, Montana, Pollution Control Revenue Refunding Bonds (Puget Sound Power and Light Company Colstrip Project), Series 1992, 7.050%, 8/01/21 Aaa 8/01 at 102 7,838,040 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.6% 11,000,000 Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 11,445,720 8,000,000 Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 AAA 3/05 at 101 1/2 8,119,600 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.6% 2,570,000 New Hampshire Housing Finance Authority, Single Family Residential Mortgage Bonds, 1988 Series A, 8.500%, 7/01/14 (Alternative Minimum Tax) Aa 7/98 at 103 2,705,902 4,515,000 New Hampshire Housing Finance Authority, Single Family Residential Mortgage Bonds, 1991 Series C, 7.100%, 1/01/23 Aa 7/01 at 102 4,748,696 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.1% 13,000,000 Pollution Control Financing Authority of Camden County (Camden County, New Jersey), Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991 D, 7.250%, 12/01/10 BBB+ 12/01 at 102 13,391,820 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 12.2% Dormitory Authority of the State of New York, State University Educational Facilities, Revenue Bonds, Series 1990A: 13,000,000 7.400%, 5/15/01 Baa1 5/00 at 102 14,107,990 11,750,000 7.400%, 5/15/12 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 13,223,568 8,325,000 Dormitory Authority of the State of New York, Menorah Campus, Inc., FHA-Insured Mortgage Revenue Bonds, Series 1991, 7.400%, 2/01/31 AA 8/01 at 102 9,229,678 21,075,000 New York Local Government Assistance Corporation, New York, Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) Aaa 4/01 at 102 23,986,301 New York State Medical Care Facilities Finance Agency, FHA-Insured Mortgage Project Revenue Bonds, 1995 Series F: 4,400,000 6.200%, 8/15/15 Aa 8/05 at 102 4,555,276 4,250,000 6.300%, 8/15/25 Aa 8/05 at 102 4,378,648 8,000,000 New York State Medical Care Facilities Finance Agency, New York Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A (AMBAC Insured Series), 6.500%, 8/15/29 Aaa 2/05 at 102 8,611,600 5,000,000 New York State Medical Care Facilities Finance Agency, Brookdale Hospital Medical Center Secured Hospital Revenue Bonds, 1995 Series A, 6.850%, 2/15/17 Baa 2/05 at 102 5,232,250 8,025,000 New York State Thruway Authority, General Revenue Bonds, Series C, 6.000%, 1/01/25 Aaa 1/05 at 102 8,236,138 2,185,000 N.F. Housing and Commercial Rehabilitation Corporation, 1992 Multi- Family Mortgage Revenue Refunding Bonds (FHA Insured Mortgage, Section 8 Assisted Project), 7.350%, 8/01/23 AA 8/03 at 100 2,498,242 5,500,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series A, 3.000%, 8/15/02 Baa1 No Opt. Call 4,868,545 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE NEW YORK (CONTINUED) $ 2,090,000 The City of New York (New York), General Obligation Bonds, Fiscal 1992 Series H, 7.000%, 2/01/18 Baa1 2/02 at 101 1/2 $ 2,233,416 6,000,000 The City of New York (New York), General Obligation Bonds, Fiscal 1993 Series B, 6.750%, 10/01/17 Baa1 10/02 at 101 1/2 6,235,860 5,500,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series B, 7.250%, 8/15/19 Baa1 8/04 at 101 6,041,365 6,750,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series F, 6.625%, 2/15/25 Baa1 2/05 at 101 6,983,145 11,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series J (Subseries J-1), 6.000%, 2/15/24 Baa1 2/06 at 101 1/2 10,675,830 14,190,000 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Fiscal 1996 Series A, 5.875%, 6/15/25 Aaa 6/05 at 101 14,322,818 3,415,000 Penfield-Crown Oak Housing Development Corporation, 1991 Multi- Family Mortgage Revenue Refunding Bonds (Crown Oak Estates - FHA Insured Mortgage, Section 8 Assisted Project), Series A, 7.350%, 8/01/23 AAA 2/03 at 100 3,613,651 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.9% 10,500,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Refunding Series 1991 A, 6.250%, 1/01/03 Baa1 1/02 at 102 10,973,130 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.0% 6,945,000 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax) AAA 3/05 at 102 7,172,310 4,800,000 County of Butler, Ohio, Hospital Facilities Revenue Refunding and Improvement Bonds, Series 1991 (Fort Hamilton-Hughes Memorial Hospital Center), 7.500%, 1/01/10 Baa 1/02 at 102 5,116,032 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 5.1% 16,295,000 Oklahoma County Home Finance Authority (Oklahoma County, Oklahoma), Single Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 A1 7/01 at 102 17,253,472 17,510,000 Pottawatomie County Home Finance Authority (Oklahoma), Municipal Refunding, Collateralized Mortgage Obligations (MR CMO) Series 1991 A, 8.625%, 7/01/10 Aaa No Opt. Call 23,128,609 10,000,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable Rate Revenue Obligations, 7.375%, 12/01/20 (Alternative Minimum Tax) Baa2 12/00 at 102 10,636,600 10,100,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) Baa2 6/01 at 102 10,879,922 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.6% 8,125,000 Hospital Facility Authority of Hillsboro, Oregon, Hospital Revenue and Advance Refunding Bonds,Series 1993 (Tuality Healthcare), 5.750%, 10/01/12 BBB+ 10/04 at 102 7,764,250 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.6% Falls Township Hospital Authority, Refunding Revenue Bonds, The Delaware Valley Medical Center Project (FHA Insured Mortgage) Series 1992: 4,525,000 6.900%, 8/01/11 AAA 8/02 at 102 4,726,906 3,000,000 7.000%, 8/01/22 AAA 8/02 at 102 3,133,350 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.5% 5,260,000 Rhode Island Housing and Mortgage Finance Corporation, Mortgage Finance Revenue Bonds, 1988 Series A (Corporation Supplemental Insurance Program), 8.250%, 10/01/08 A1 4/98 at 102 5,522,106 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 0.6% 6,500,000 Lexington County Health Services District, Inc., South Carolina, Hospital Revenue Bonds, Series 1991, 6.750%, 10/01/18 Aaa 10/01 at 102 7,066,800 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE TENNESSEE - 1.1% $ 2,020,000 Metropolitan Government Nashville and Davidson County Water and Sewer System, 7.000%, 1/01/14 A1 11/96 at 102 $ 2,065,511 10,300,000 Metropolitan Nashville Airport Authority (Tennessee), Airport Improvement Revenue Bonds, Refunding Series 1991C, 6.625%, 7/01/07 Aaa 7/01 at 102 11,335,047 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.3% 14,360,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) Baa2 12/00 at 102 15,306,037 Arlington Independent School District (Tarrant County, Texas), Unlimited Tax Refunding and Improvement Bonds, Series 1995: 11,635,000 0.000%, 2/15/11 Aaa 2/05 at 71 15/16 5,129,988 13,985,000 0.000%, 2/15/14 Aaa 2/05 at 58 11/16 4,970,828 5,000,000 Brazos River Authority (Texas), Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1988D, 7.750%, 10/01/15 A2 10/98 at 102 5,344,250 5,600,000 Dallas-Fort Worth International Airport Facility Improvement Corporation, American Airlines, Inc. Revenue Bonds, Series 1990, 7.500%, 11/01/25 (Alternative Minimum Tax) Baa2 11/00 at 102 5,964,112 10,960,000 Fort Worth Housing Finance Corporation, Home Mortgage Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11 Aa 10/01 at 103 11,987,500 7,765,000 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, Series 1991B, 6.625%, 7/01/22 Aaa 7/01 at 102 8,418,891 18,500,000 City of Houston, Texas, Water and Sewer System, Junior Lien Revenue Refunding Bonds, Series 1991C, 6.375%, 12/01/17 Aaa 12/01 at 102 19,610,370 - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.7% Vermont Housing Finance Agency, Single Family Housing Bonds, Series 2: 6,405,000 7.300%, 5/01/25 (Alternative Minimum Tax) A1 11/01 at 102 6,682,593 1,595,000 6.875%, 5/01/25 (Alternative Minimum Tax) A1 11/01 at 102 1,641,734 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.7% 1,000,000 Virginia College Building Authority, Educational Facilities Revenue Bonds (University of Richmond Project), Series of 1991, 6.400%, 11/01/22 (Mandatory put 11/01/01) Aa 11/99 at 102 1,055,180 10,500,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 Series A, 7.150%, 1/01/33 Aa1 1/02 at 102 11,050,305 4,000,000 Prince Edward County School Board (Prince Edward County, Virginia School Construction Project), Certificates of Participation, Series 1996, 5.400%, 1/15/99 N/R 7/97 at 100 4,026,640 3,860,000 Industrial Development Authority of the City of Roanoke, Virginia, Hospital Revenue Bonds (Roanoke Memorial Hospitals, Community Hospital of Roanoke Valley and Franklin Memorial Hospital Project), Series 1990, 6.500%, 7/01/25 (Pre-refunded to 7/01/00) Aaa 7/00 at 100 4,132,091 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 8.4% 4,750,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1991 (Yakima Valley Memorial Hospital Association, Yakima), 7.250%, 1/01/21 (Pre-refunded to 1/01/01) A 1/01 at 102 5,311,118 15,100,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00) Aa1 7/00 at 102 16,680,366 4,000,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/11 Aa1 7/04 at 102 3,835,160 14,500,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1989B, 7.400%, 7/01/09 (Pre-refunded to 1/01/00) Aa1 1/00 at 102 16,057,880 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE WASHINGTON (CONTINUED) $ 12,445,000 Public Utility District No. 1 of Chelan County, Washington, Columbia- River Rock Island Hydro-Electric System Revenue Bonds, Series of 1976, 6.375%, 6/01/29 A1 12/96 at 102 $ 12,550,657 3,010,000 Camas School District No. 117, Clark County, Washington, Unlimited Tax General Obligation Bonds, 1995, 6.000%, 12/01/14 Aaa 12/05 at 100 3,091,420 4,185,000 Douglas County Public Utility District No. 1 Wells Hydroelectric Project, 8.750%, 9/01/18 A+ 9/06 at 106 5,382,495 12,415,000 Federal Way School District No. 210, King County, Washington, Unlimited Tax General Obligation Bonds, 1991, 6.950%, 12/01/11 (Pre-refunded to 12/01/03) A1 12/03 at 100 14,028,950 Municipality of Metropolitan Seattle (Seattle, Washington), Limited Sales Tax General Obligation Bonds, Series 1991 (Refunding): 9,810,000 6.625%, 1/01/11 Aa 1/97 at 102 10,041,612 10,310,000 6.875%, 1/01/20 Aa 1/97 at 102 10,558,161 4,000,000 North Thurston School District No. 3, Thurston County, Washington, Unlimited Tax General Obligation Bonds, 1992, 6.500%, 12/01/09 A 12/02 at 100 4,284,120 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.6% 10,820,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Series 1991-B (Novus Health Group), 6.750%, 12/15/20 Aaa 12/01 at 102 11,779,733 7,000,000 Wisconsin Housing and Economic Development Authority, Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 A1 1/02 at 102 7,333,410 - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.6% 2,390,000 Wyoming Community Development Authority, Single Family Mortgage Bonds, 1991 Series B, 7.400%, 6/01/31 Aa 6/01 at 102 2,532,970 4,500,000 Wyoming Community Development Authority, Single Family Mortgage Bonds 1988 Series G (Federally Insured or Guaranteed Mortgage Loans), 7.250%, 6/01/21 (Alternative Minimum Tax) Aa 11/01 at 103 4,739,624 - ------------------------------------------------------------------------------------------------------------------------------------ $1,128,230,000 Total Investments - (cost $1,113,125,203) - 98.4% 1,199,714,910 ==============---------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 19,947,925 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $1,219,662,835 ==================================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 55 $476,922,814 40% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 34 222,809,477 18 PORTFOLIO OF A+ A1 12 95,151,832 8 INVESTMENTS: A, A- A, A2, A3 13 91,263,589 8 BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 35 270,428,184 22 Non-rated Non-rated 5 43,139,014 4 - ---------------------------------------------------------------------------------------------------------------------- TOTAL 154 $1,199,714,910 100% ====================================================================================================================== * Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. ** Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. (NPF)
PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE ALABAMA - 1.0% $ 4,360,000 Alabama Higher Education Loan Corporation, Student Loan Revenue Refunding Bonds, Series 1994-D, 5.850%, 9/01/04 (Alternative Minimum Tax) Aaa No Opt. Call $ 4,540,678 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.4% 1,695,000 Municipality of Anchorage, Alaska, Home Mortgage Revenue Bonds (Mortgage-Backed Securities Program), 1992, 8.000%, 3/01/09 AAA 3/02 at 102 1,832,007 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 5.3% 5,500,000 Arizona Educational Loan Marketing Corporation, 1992 Educational Loan Revenue Bonds, Series B, 6.950%, 3/01/01 (Alternative Minimum Tax) A No Opt. Call 5,930,925 3,650,000 Gilbert Unified School District No. 41 of Maricopa County, Arizona, School Improvement Bonds, Project of 193, Series C (1994), 6.100%, 7/01/14 (Pre-refunded to 7/01/04) Aaa 7/04 at 100 3,958,133 12,035,000 Yuma Regional Medical Center on behalf of Hospital District No. 1 of Yuma County, Arizona, Hospital Revenue Improvement and Refunding Bond (Yuma Regional Medical Center Project), Series 1992, 8.000%, 8/01/17 A 8/02 at 101 1/2 13,685,841 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.4% 2,000,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program), 6.550%, 7/01/18 (Alternative Minimum Tax) AAA 7/05 at 102 2,074,360 1,400,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1994 Series C (Mortgage-Backed Securities Program), 6.600%, 7/01/17 AAA 7/05 at 102 1,472,086 412,111 Drew County (Arkansas) Public Facilities Board, Single Family Mortgage Revenue Refunding Bond, Series 1993A, 7.900%, 8/01/11 Aaa 8/03 at 103 444,112 1,310,000 Residential Housing Facilities Board of Greene County, Arkansas, Subordinated Mortgage Revenue Bonds, Series 1991-1, 7.250%, 1/01/10 Aa 1/02 at 103 1,396,512 568,322 Public Facilities Board of Stuttgart, Arkansas, Single Family Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11 Aaa 9/03 at 103 621,107 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 2.1% 33,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds Series 1995A, 0.000%, 1/01/17 Baa No Opt. Call 9,227,130 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 1.4% Colorado Health Facilities Authority, Hospital Refunding Revenue Bonds (National Jewish Center For Immunology and Respiratory Medicine Project), Series 1992: 1,500,000 6.600%, 2/15/02 BBB- No Opt. Call 1,483,395 1,250,000 6.875%, 2/15/12 BBB- 2/02 at 102 1,258,213 3,000,000 7.100%, 2/15/22 BBB- 2/02 at 102 3,011,040 550,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1990A, 8.100%, 11/15/00 (Alternative Minimum Tax) Baa No Opt. Call 612,002 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 1.0% 2,275,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1994 Series D, Subseries D-2, 6.900%, 5/15/20 (Alternative Minimum Tax) Aa 5/04 at 102 2,396,667 2,000,000 Connecticut Housing Finance Authority Housing Mortgage Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18 Aa 5/06 at 102 2,039,480 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 3.1% 6,250,000 District of Columbia (Washington, D.C.), Hospital Revenue Bonds (National Rehabilitation Hospital, Inc. Issue), Series 1989A, Medlantic Healthcare Group, 7.125%, 11/01/19 (Pre-refunded to 11/01/99) Aaa 11/99 at 102 6,851,125 2,000,000 District of Columbia, Hospital Revenue Refunding Bonds (Washington Hospital Center Issue), Series 1992A, 7.000%, 8/15/05 Baa1 8/02 at 102 2,109,140 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE DISTRICT OF COLUMBIA (CONTINUED) District of Columbia Housing Finance Agency, Multi-Family Housing Refunding Revenue Bonds, Series 1992B (FHA Insured Mortgage Loan-Section 8 Assisted Project): $ 920,000 7.200%, 9/01/12 Aa 9/02 at 102 $ 980,968 3,505,000 7.250%, 3/01/24 Aa 9/02 at 102 3,710,183 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.4% 1,880,000 State of Florida, Full Faith and Credit, State Board of Education, Public Education Capital Outlay Bonds, Series 1991-B, 6.700%, 6/01/22 (Pre-refunded to 6/01/01) Aaa 6/01 at 101 2,070,312 4,000,000 Dade County, Florida, Aviation Bonds, Series 1996A, 5.750%, 10/01/18 (Alternative Minimum Tax) Aaa 10/06 at 102 3,967,800 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.6% 2,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series EE, 7.250%, 1/01/24 Aaa No Opt. Call 2,502,040 - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.3% 1,500,000 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 1996 Series E, 6.350%, 7/01/14 (Alternative Minimum Tax) Aa 7/06 at 102 1,523,310 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 17.4% Illinois Development Finance Authority, Multi-Family Housing Bonds, Series 1990 (Affordable Housing Preservation Foundation Project), Subseries B (FHA Insured Mortgage Loans Lawless Gardens Project): 600,000 7.650%, 7/01/07 AAA 1/02 at 105 667,176 5,270,000 7.650%, 12/31/31 AAA 1/02 at 105 5,772,653 8,800,000 Illinois Development Finance Authority, Multi-Family Housing Revenue Bonds, Series 1992 (Town and Garden Apartments Project), 7.800%, 3/01/06 (Alternative Minimum Tax) BBB+ 3/02 at 102 9,295,176 865,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1992A (Evangelical Hospitals Corporation), 6.750%, 4/15/12 AA- 4/02 at 102 911,200 7,400,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 (Trinity Medical Center), 7.000%, 7/01/12 Baa 7/02 at 102 7,570,496 4,790,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 A 9/02 at 102 5,036,493 865,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds (Morningside North Development), Series 1992D, 6.600%, 1/01/07 A 1/03 at 102 914,227 State of Illinois, Build Illinois Bonds (Sales Tax Revenue Bonds), Series S: 2,000,000 6.800%, 6/15/10 AAA 6/99 at 102 2,109,740 6,390,000 6.800%, 6/15/12 (Pre-refunded to 6/15/00) Aaa 6/00 at 102 7,008,233 4,500,000 City of Chicago (Illinois), General Obligation Adjustable Rate Bonds, Central Public Library Project, Series C of 1988, 6.850%, 1/01/17 (Pre-refunded to 7/01/02) Aaa 7/02 at 101 1/2 5,045,850 4,900,000 City of Chicago, Illinois, Tax Increment Allocation Revenue Bonds (Stockyards Southeast Quadrant Industrial Redevelopment Project), Series 1994 B, 9.250%, 1/01/14 N/R No Opt. Call 5,414,255 8,075,000 Town of Cicero, Cook County, Illinois, General Obligation Tax Increment Bonds, Series 1995A, 8.125%, 12/01/12 (Pre-refunded to 12/01/04) N/R 12/04 at 102 9,699,367 2,000,000 Onterie Center Housing Finance Corporation (An Illinois Not For Profit Corporation), Mortgage Revenue Refunding Bonds, Series 1992A (FHA Insured Mortgage Loan-Onterie Center Project), 7.050%, 7/01/27 Aaa 7/02 at 102 2,118,100 2,835,000 Village of Sugar Grove, Kane County, Illinois, Waterworks and Sewerage Refunding Revenue Bonds, Series 1992, 7.500%, 5/01/17 N/R 5/02 at 102 3,030,728 6,000,000 Town of Wood River, Wood River Township Hospital, Madison County, Illinois, General Obligation Bonds (Alternate Revenue Source), Series 1993, 6.625%, 2/01/14 BBB 2/04 at 102 6,352,020 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE ILLINOIS (CONTINUED) $ 5,945,000 Town of Wood River, Wood River Township Hospital, Madison County, Illinois, General Obligation Tort Immunity Bonds, Series 1993, 6.500%, 2/01/14 BBB 2/04 at 102 $ 6,236,840 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.2% 2,000,000 City of Indianapolis, Indiana, Exempt Facility Revenue Bonds, Series 1991 (Mid America Energy Resources, Inc. Project), 7.250%, 12/01/11 (Alternative Minimum Tax) A+ 6/99 at 102 2,089,040 2,860,000 PHM Elementary/Middle School Building Corporation (St. Joseph County, Indiana), First Mortgage Bonds, Series 1994, 6.300%, 1/15/09 A No Opt. Call 3,057,226 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.4% 1,655,000 Iowa Student Loan Liquidity Corporation, Student Loan Revenue Bonds, Senior Series B, 5.750%, 12/01/06 (Alternative Minimum Tax) Aaa 12/02 at 102 1,667,131 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.0% 4,000,000 City of Hutchinson, Kansas, Single Family Mortgage Revenue Refunding Bonds, Series 1992, 8.875%, 12/01/12 A 6/02 at 103 4,316,560 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.2% 5,000,000 Kentucky Rural Economic Development Authority, Economic Development Project Revenue Bonds, Series 1992 (Donnelly Corporation Project), 8.125%, 7/01/12 (Alternative Minimum Tax) N/R 7/02 at 102 5,167,750 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.3% 1,310,000 Louisiana Housing Finance Agency, Mortgage Revenue Bonds (GNMA Collateralized Mortgage Loan-St. Dominic Assisted Care Facility), Series 1995, 6.850%, 9/01/25 AAA 9/05 at 103 1,409,914 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 2.0% 8,470,000 Maine Educational Loan Marketing Corporation, Subordinate Student Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06 (Alternative Minimum Tax) A No Opt. Call 8,973,711 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.4% 6,000,000 Anne Arundel County, Maryland, Multi-Family Housing Revenue Bonds (Woodside Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03) BBB+ No Opt. Call 6,319,020 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 6.5% 3,875,000 Massachusetts Health and Educational, Facilities Authority, Revenue Refunding Bonds, Youville Hospital Issue (FHA Insured Project), Series B, 6.000%, 2/15/25 Aa 2/04 at 102 3,923,554 2,450,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Deaconess Hospital Issue, Series D, 6.875%, 4/01/22 A 4/02 at 102 2,602,978 9,070,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds, SEMASS Project, Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) N/R 7/01 at 103 10,142,437 Massachusetts Municipal Wholesale Electric Company, Power Supply System Revenue Bonds, 1987 Series A: 945,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) Aaa 7/97 at 102 994,433 45,000 8.750%, 7/01/18 BBB+ 7/97 at 102 51,893 9,780,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1992 Series A, 6.750%, 7/15/12 (Pre-refunded to 7/15/02) Aaa 7/02 at 102 11,003,674 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.7% 2,500,000 Wayne County Building Authority (State of Michigan), Building Authority (Capital Improvement), Bonds, Series 1992A (Limited Tax General Obligation), 8.000%, 3/01/17 (Pre-refunded to 3/01/02) Baa 3/02 at 102 2,919,475 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE MINNESOTA - 2.6% $ 11,180,000 Northwest Minnesota Multi-County, Housing and Redevelopment Authority, Governmental Housing Revenue Bonds (Pooled Housing Program), Series 1994A, 8.125%, 10/01/26 N/R 10/04 at 102 $ 11,496,394 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.6% 8,610,000 Mississippi Home Corporation, Residual Revenue Capital Appreciation Bonds, Series 1992-I, 0.000%, 9/15/16 Aaa 3/04 at 41 21/32 2,481,144 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 4.2% 2,350,000 Nebraska Higher Education Loan Program Inc., Senior Subordinate Bonds, Series A-5B, 6.250%, 6/01/18 (Alternative Minimum Tax) Aa No Opt. Call 2,393,264 4,145,000 City of Grand Island, Nebraska, Electric System Revenue Bonds, 1977 Series, 6.100%, 9/01/12 A1 9/97 at 100 4,152,088 10,935,000 Omaha Public Power District (Nebraska), Electric System Revenue Bonds, 1992, Series A, 6.500%, 2/01/17 (Pre-refunded to 2/01/02) AAA 2/02 at 101 1/2 12,041,294 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 0.1% 325,000 Nevada Housing Division, Single Family Program Senior Bonds, 1988 Issue B (Federally Insured or Guaranteed Mortgage Loans), 8.050%, 10/01/19 (Alternative Minimum Tax) AA No Opt. Call 330,957 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 2.5% 1,440,000 New Hampshire Municipal Bond Bank, Educational Institutions Division Revenue Bonds (1994 Coe-Brown Northwood Academy Project), 7.250%, 5/01/09 N/R No Opt. Call 1,496,074 9,200,000 The Industrial Development Authority of the State of New Hampshire, Resource Recovery Revenue Bonds, Series 1987 (SES Concord Project), 8.500%, 1/01/09 A+ 1/98 at 102 9,724,032 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 0.7% 3,000,000 New Jersey Economic Development Authority, Economic Development Bonds (Bridgewater Resources Inc. Project), 1994 Series A, 8.375%, 11/01/04 (Alternative Minimum Tax) N/R No Opt. Call 3,140,580 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 11.8% 6,500,000 Dormitory Authority of the State of New York, City University System Consolidated Revenue Bonds, Series 1990A, 7.625%, 7/01/20 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 7,321,210 5,000,000 New York Local Government Assistance Corporation, New York, Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) Aaa 4/01 at 102 5,690,700 6,000,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22 AAA 8/02 at 102 6,184,080 8,450,000 New York State Urban Development Corporation, State Facilities Revenue Bonds, Series 1991, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) Aaa 4/01 at 102 9,617,283 3,500,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series B, 7.500%, 2/01/01 Baa1 No Opt. Call 3,799,565 The City of New York, General Obligation Bonds, Fiscal 1995 Series E: 1,550,000 6.500%, 8/01/02 Baa1 No Opt. Call 1,637,064 3,080,000 6.600%, 8/01/04 Baa1 No Opt. Call 3,285,128 1,000,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series A, 7.000%, 8/01/04 Baa1 No Opt. Call 1,091,530 2,075,000 The City of New York, General Obligation Bonds, Fiscal 1990 Series F, 8.400%, 11/15/05 (Pre-refunded to 11/15/01) Aaa 11/01 at 101 1/2 2,464,249 2,000,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series C, Fixed Rate Bonds, Subseries C-1, 6.625%, 8/01/12 (Pre-refunded to 8/01/02) Aaa 8/02 at 101 1/2 2,230,880 4,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series J (Subseries J-1), 5.875%, 2/15/19 Baa1 2/06 at 101 1/2 3,846,000 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE NEW YORK (CONTINUED) The City of New York, General Obligation Bonds, Fiscal 1991 Series D: $ 1,915,000 9.500%, 8/01/02 (Pre-refunded to 8/01/01) Baa1 8/01 at 101 1/2 $ 2,329,617 2,085,000 9.500%, 8/01/02 Baa1 8/01 at 101 1/2 2,468,723 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.5% 2,130,000 North Carolina Housing Finance Agency, Multi-Family Revenue Refunding Bonds (1992 Refunding Bond Resolution), Series B, 6.900%, 7/01/24 Aa 7/02 at 102 2,232,879 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 5.7% 14,055,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1989 Series A, 7.650%, 3/01/29 (Alternative Minimum Tax) AAA 9/99 at 102 14,891,975 8,500,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital Facilities Revenue Bonds, Series 1987 (Akron City Hospital Project), 8.875%, 11/15/07 (Pre-refunded to 11/15/97) Aaa 11/97 at 102 9,093,725 955,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest Ohio Bond Fund), Series 1992A, 7.750%, 5/15/07 (Alternative Minimum Tax) N/R 5/00 at 102 1,004,144 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.4% 2,000,000 Falls Township Hospital Authority, Refunding Revenue Bonds, The Delaware Valley Medical Center Project (FHA Insured Mortgage), Series 1992, 7.000%, 8/01/22 AAA 8/02 at 102 2,088,900 1,365,000 Northampton County Hospital Authority (Pennsylvania), Hospital Revenue Bonds (Easton Hospital), Series A of 1992, 6.900%, 1/01/02 BBB No Opt. Call 1,420,460 7,660,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue Bonds, Tenth Series, 7.350%, 9/01/04 Aaa No Opt. Call 8,711,029 2,500,000 The Hospitals and Higher Education Facilities Authority of Philadelphia Hospital Revenue Bonds (Children's Seashore House), Series 1992A, 7.000%, 8/15/12 A- 8/02 at 102 2,660,625 4,450,000 The Hospitals and Higher Education Facilities Authority of Philadelphia, Hospital Revenue Bonds (Children's Seashore House), Series 1992B, 7.000%, 8/15/22 A- 8/00 at 100 4,733,065 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.5% 6,510,000 South Dakota Student Loan Assistance Corporation, Student Loan Revenue Bonds, Series 1989-B, 7.400%, 8/01/99 (Alternative Minimum Tax) A No Opt. Call 6,800,476 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 3.7% 4,347,931 General Services Commission (an Agency of the State of Texas), as Lessee, Participation Interests, 7.500%, 9/01/22 A 9/97 at 102 4,404,585 9,500,000 Harris County Health Facilities Development Corporation, Adjustable Convertible Extendable Securities (Greater Houston Pooled Health Care Loan Program), Series 1985B, 7.375%, 12/01/25 (Mandatory put 12/01/98) Aa3 11/96 at 100 1/2 9,576,950 2,345,000 Victoria Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11 Aaa No Opt. Call 2,534,640 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.3% 1,250,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1996 Series C, 6.450%, 7/01/14 (Alternative Minimum Tax) Aa 1/07 at 102 1,266,688 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.0% 5,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 Series A, 7.100%, 1/01/22 Aa1 1/02 at 102 5,252,200 3,200,000 Suffolk Redevelopment and Housing Authority, Multi-Family Housing Revenue Refunding Bonds, Series 1994 (Chase Heritage at Dulles Project), 7.000%, 7/01/24 (Mandatory put 7/01/04) Baa3 7/02 at 104 3,386,944 PRINCIPAL RAT- OPT. CALL MARKET AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE WASHINGTON - 4.2% $ 9,500,000 State of Washington, General Obligation and General Obligation Refunding Bonds, Series 1992A and AT-6, 6.250%, 2/01/11 Aa No Opt. Call $ 10,398,795 2,500,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12 AA- 2/02 at 102 2,699,750 3,000,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue Bonds, Series 1989A, 7.500%, 7/01/07 (Pre-refunded to 7/01/99) Aa1 7/99 at 102 3,298,740 2,000,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1990B, 7.375%, 7/01/04 Aa1 7/00 at 102 2,197,600 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.5% 2,000,000 West Virginia Housing Development Fund, Housing Finance Bonds, 1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax) Aa1 5/02 at 102 2,111,160 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.1% 5,950,000 Wisconsin Housing and Economic Development Authority, Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 A1 1/02 at 102 6,233,399 2,985,000 Silver Lake Sanitary District, Waushara County, Wisconsin, Sewer System Mortgage Revenue Bonds, 8.000%, 10/01/18 N/R 10/02 at 100 3,163,533 - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.9% 4,000,000 Wyoming Community Development Authority, Single Family Mortgage Bonds (Federally Insured or Guaranteed Mortgage Loans), 1988 Series E, 7.750%, 6/01/09 (Alternative Minimum Tax) Aa 11/99 at 103 4,196,715 - ------------------------------------------------------------------------------------------------------------------------------------ $435,798,364 Total Investments - (cost $407,786,328) - 98.4% 435,100,749 ============------------------------------------------------------------------------------------------------------------------------ TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.2% $ 800,000 The Port Authority of New York and New Jersey, Versatile Structure =========== Obligations, Series 2, Variable Rate Demand Bonds, 3.550%, 5/01/19+ A-1+ 800,000 - ------------------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.4% 6,252,390 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $442,153,139 ==================================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 34 $153,481,773 36% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 20 62,837,572 14 PORTFOLIO OF A+ A1 4 22,198,559 5 INVESTMENTS A, A- A, A2, A3 12 63,116,712 15 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 22 79,710,871 18 TEMPORARY Non-rated Non-rated 10 53,755,262 12 INVESTMENTS): - ---------------------------------------------------------------------------------------------------------------------- TOTAL 102 $435,100,749 100% ====================================================================================================================== * Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. ** Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + 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
NQM NQS NQU NPF ASSETS Investments in municipal securities, at market value (note 1) $781,881,599 $721,573,363 $1,199,714,910 $435,100,749 Temporary investments in short-term municipal securities, at amortized cost (note 1) 2,800,000 4,400,000 -- 800,000 Cash 269,211 170,485 1,339,412 67,633 Receivables: Interest 16,068,981 14,465,009 24,334,432 8,239,817 Investments sold 132,344 7,930,577 -- 30,000 Other assets 926,098 51,428 31,594 16,539 ----------- ----------- ------------- ----------- Total assets 802,078,233 748,590,862 1,225,420,348 444,254,738 ----------- ----------- ------------- ----------- LIABILITIES Accrued expenses: Management fees (note 6) 421,521 394,808 638,167 237,416 Other 259,381 259,821 451,475 146,234 Preferred share dividends payable 53,774 55,114 129,717 57,776 Common share dividends payable 2,994,191 2,822,330 4,538,154 1,660,173 ----------- ----------- ------------- ----------- Total liabilities 3,728,867 3,532,073 5,757,513 2,101,599 ----------- ----------- ------------- ----------- Net assets (note 7) $798,349,366 $745,058,789 $1,219,662,835 $442,153,139 ============ ============ ============== ============ 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 35,434,213 33,400,359 53,077,819 19,647,018 ============ ============ ============== ============ Netasset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 15.48 $ 15.12 $ 15.44 $ 15.38 ============ ============ ============== ============ See accompanying notes to financial statements.
STATEMENT OF OPERATIONS Year ended October 31, 1996
NQM NQS NQU NPF INVESTMENT INCOME Tax-exempt interest income (note 1) $51,750,523 $48,176,865 $78,301,721 $28,453,942 ----------- ----------- ----------- ----------- Expenses: Management fees (note 6) 4,993,582 4,671,075 7,531,213 2,798,986 Preferred shares--auction fees 643,375 616,831 1,026,230 371,957 Preferred shares--dividend disbursing agent fees 52,650 52,841 68,443 22,150 Shareholders' servicing agent fees and expenses 100,344 91,854 150,242 54,483 Custodian's fees and expenses 108,875 103,850 149,025 74,755 Directors' fees and expenses (note 6) 4,371 5,516 13,656 5,609 Professional fees 19,555 21,953 26,816 21,397 Shareholders' reports--printing and mailing expenses 188,489 142,413 242,879 116,428 Stock exchange listing fees 22,421 30,670 43,479 32,511 Investor relations expense 46,462 43,116 71,331 27,812 Other expenses 44,826 39,823 66,575 21,751 ----------- ----------- ----------- ----------- Total expenses 6,224,950 5,819,942 9,389,889 3,547,839 ----------- ----------- ----------- ----------- Net investment income 45,525,573 42,356,923 68,911,832 24,906,103 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) 1,504,856 (606,382) (491,071) 959,626 Net change in unrealized appreciation or depreciation of investments (7,671,673) (4,774,830) 1,379,318 1,395,464 ----------- ----------- ----------- ----------- Net gain (loss) from investments (6,166,817) (5,381,212) 888,247 2,355,090 ----------- ----------- ----------- ----------- Net increase in net assets from operations $39,358,756 $36,975,711 $69,800,079 $27,261,193 ============ ============ ============ ============ See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
NQM NQS Year ended Year ended Year ended Year ended 10/31/96 10/31/95 10/31/96 10/31/95 - ----------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 45,525,573 $ 46,997,092 $ 42,356,923 $ 43,187,088 Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) 1,504,856 (315,370) (606,382) (424,861) Net change in unrealized appreciation or depreciation of investments (7,671,673) 37,219,824 (4,774,830) 43,774,909 ------------ ------------ ------------ ------------ Net increase in net assets from operations 39,358,756 83,901,546 36,975,711 86,537,136 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (36,524,778) (38,289,980) (33,838,039) (34,858,659) Preferred shareholders (9,160,050) (10,113,285) (8,711,507) (9,685,635) From accumulated net realized gains from investment transactions: Common shareholders -- -- -- -- Preferred shareholders -- -- -- -- ------------ ------------ ------------ ------------ Decrease in net assets from distributions to shareholders (45,684,828) (48,403,265) (42,549,546) (44,544,294) ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 454,280 -- 749,508 502,250 ------------ ------------ ------------ ------------ Net increase in net assets derived from capital share transactions 454,280 -- 749,508 502,250 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (5,871,792) 35,498,281 (4,824,327) 42,495,092 Net assets at beginning of year 804,221,158 768,722,877 749,883,116 707,388,024 ------------ ------------ ------------ ------------ Net assets at end of year $798,349,366 $804,221,158 $745,058,789 $749,883,116 ============ ============ ============ ============ Balance of undistributed net investment income at end of year $ 1,004,129 $ 1,163,384 $ 845,543 $ 1,038,166 ============ ============ ============ ============ See accompanying notes to financial statements.
NQU NPF Year ended Year ended Year ended Year ended 10/31/96 10/31/95 10/31/96 10/31/95 - ------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 68,911,832 $ 69,562,345 $ 24,906,103 $ 25,047,650 Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) (491,071) (757,201) 959,626 10,181 Net change in unrealized appreciation or depreciation of investments 1,379,318 67,418,921 1,395,464 26,319,291 -------------- -------------- ------------ ------------ Net increase in net assets from operations 69,800,079 136,224,065 27,261,193 51,377,122 -------------- -------------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (54,457,859) (54,776,337) (19,922,661) (19,804,205) Preferred shareholders (14,584,206) (16,271,551) (5,053,788) (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 (69,042,065) (71,047,888) (26,489,111) (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 758,014 65,176,177 772,082 24,814,706 Net assets at beginning of year 1,218,904,821 1,153,728,644 441,381,057 416,566,351 -------------- -------------- ------------ ------------ Net assets at end of year $1,219,662,835 $1,218,904,821 $442,153,139 $441,381,057 ============== ============== ============ ============ Balance of undistributed net investment income at end of year $ 1,904,403 $ 2,034,636 $ 1,324,626 $ 1,394,972 ============== ============== ============ ============ See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES At October 31, 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). Each Fund invests primarily in a diversified portfolio of municipal obligations issued by state and local government authorities. The Funds are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with 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 October 31, 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 their tax-exempt net investment income, in addition to any significant amounts of net realized capital gains and/or market discount realized from investment transactions. The Funds currently consider significant net realized capital gains and/or market discount as amounts in excess of $.01 per Common share. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. All regular monthly income dividends paid during the year ended October 31, 1996, have been designated Exempt Interest Dividends which are exempt from regular federal personal income tax. Net realized capital gain and market discount distributions are subject to federal taxation. Dividends and Tax-exempt net investment income is declared as a Distributions to dividend monthly and payment is made or reinvestment Shareholders is credited to shareholder accounts after month-end. Net realized capital gains and/or market discount from investment transactions are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryovers. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount are recorded on the ex-dividend date. The amount and timing of 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 occur and will be classified as either distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in more than one Series. The dividend rate on each Series may change every seven days, as set by the auction agent. The number of shares outstanding, by Series and in total, for each Fund is as follows:
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 ====== ===== ====== =====
Derivative Financial In October 1994, the Financial Accounting Standards Instruments 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 futures, forward, swap, and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the year ended October 31, 1996. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. 2. FUND SHARES Transactions in Common shares were as follows:
NQM NQS - ----------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended 10/31/96 10/31/95 10/31/96 10/31/95 - ----------------------------------------------------------------------------------------------------------------------------- Common Shares: Shares issued to shareholders due to reinvestment of distributions 29,711 -- 49,729 34,939 ====== ====== ====== ====== NQU NPF - ----------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended 10/31/96 10/31/95 10/31/96 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 year ended October 31, 1996, were as follows:
NQM NQS NQU NPF - ------------------------------------------------------------------------------------------------------------------------------ PURCHASES Investments in municipal securities $71,936,839 $94,679,230 $127,508,823 $33,849,475 Temporary municipal investments 64,380,000 70,060,000 38,400,000 47,400,000 SALES AND MATURITIES Investments in municipal securities 62,814,120 94,483,838 125,830,076 35,054,338 Temporary municipal investments 71,280,000 75,460,000 40,300,000 46,600,000 =========== =========== ============ ===========
At October 31, 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, 1996, 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 $1,088,991 $ -- $ -- 2002 -- 6,626,291 5,529,513 2003 315,370 424,861 757,201 2004 -- 606,382 486,077 ---------- ---------- ---------- Total $1,404,361 $7,657,534 $6,772,791 ========== ========== ==========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS On November 1, 1996, the Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid December 2, 1996, to shareholders of record on November 15, 1996, as follows:
NQM NQS NQU NPF - --------------------------------------------------------------------------------------------------------------------------- Dividend per share $.0845 $.0845 $.0855 $.0860 ====== ====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at October 31, 1996, were as follows:
NQM NQS NQU NPF - ------------------------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $56,267,652 $48,782,679 $86,859,306 $27,315,910 Depreciation (1,724,299) (2,018,248) (269,599) (1,489) ----------- ----------- ----------- ----------- Net unrealized appreciation $54,543,353 $46,764,431 $86,589,707 $27,314,421 ===+===+=== ===+===+=== ===+===+=== ===+===+===
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 October 31, 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 354,342 334,004 530,778 196,470 Paid-in surplus 493,851,903 464,772,345 737,410,738 272,359,877 Balance of undistributed net investment income 1,004,129 845,543 1,904,403 1,324,626 Accumulated net realized gain (loss) from investment transactions (1,404,361) (7,657,534) (6,772,791) 957,745 Net unrealized appreciation of investments 54,543,353 46,764,431 86,589,707 27,314,421 ----------- ----------- ------------- ----------- Net assets $798,349,366 $745,058,789 $1,219,662,835 $442,153,139 ============ ============ ============== ============ 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 October 31, 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% 21% 22% 28% Health Care Facilities 12 7 11 13 Pollution Control Facilities 9 11 11 3 Electric Utilities 7 9 4 2 Transportation 1 7 8 3 Educational Facilities 4 2 2 7 Water / Sewer Facilities 2 6 5 1 Lease Rental Facilities 3 -- 1 1 Other 8 2 6 6 General Obligation Bonds 3 10 5 10 Escrowed Bonds 33 25 25 26 ----- ----- ----- ----- 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 (54% for NQM, 41% for NQS, 42% for NQU and 29% 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 SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Dividends from tax-exempt Operating performance net investment income Net realized and Net asset unrealized value Net gain (loss) beginning investment from To Common To Preferred of period income investments** shareholders shareholders++ NQM Year ended 10/31, 1996 $15.650 $1.286 $ (.165) $(1.032) $(.259) 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 Year ended 10/31, 1996 15.290 1.269 (.164) (1.014) (.261) 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 Organization Per and offering Common costs and share Preferred share Net asset market To Common To Preferred underwriting value end value end shareholders shareholders++ discounts of period of period NQM Year ended 10/31, 1996 $ -- $ -- $ -- $15.480 $15.000 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 Year ended 10/31, 1996 -- -- -- 15.120 15.125 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 Ratio Total of net investment Total Ratio of investment return return Net assets expenses to income Portfolio on market on net asset end of period average net to average turnover value+ value+ (in thousands) assets+++ net assets+++ rate NQM Year ended 10/31, 1996 6.13% 5.70% $798,349 .78% 5.71% 8% 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 Year ended 10/31, 1996 9.71 5.71 745,059 .78 5.69 13 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 58.
FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Dividends from tax-exempt Operating performance net investment income Net realized and Net asset unrealized value Net gain (loss) beginning investment from To Common To Preferred of period income investments** shareholders shareholders++ NQU Year ended 10/31, 1996 $15.430 $1.299 $ .012 $(1.026) $(.275) 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 Year ended 10/31, 1996 15.340 1.267 .121 (1.014) (.257) 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 Organization Per and offering Common costs and share Preferred share Net asset market To Common To Preferred underwriting value end value end shareholders shareholders++ discounts of period of period NQU Year ended 10/31, 1996 $ -- $ -- $ -- $15.440 $15.250 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 Year ended 10/31, 1996 (.060) (.017) -- 15.380 15.125 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 Ratio Total of net investment Total Ratio of investment return return Net assets expenses to income Portfolio on market on net asset end of period average net to average turnover value+ value+ (in thousands) assets+++ net assets+++ rate NQU Year ended 10/31, 1996 10.61% 6.93% $1,219,663 .77% 5.67% 11% 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 Year ended 10/31, 1996 11.00 7.51 442,153 .81 5.66 8 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.
REPORT OF INDEPENDENT AUDITORS The Board of Directors and Shareholders Nuveen Investment Quality Municipal Fund, Inc. Nuveen Select Quality Municipal Fund, Inc. Nuveen Quality Income Municipal Fund, Inc. Nuveen Premier Municipal Income Fund, Inc. We have audited the accompanying statements of net assets, including the portfolios of investments, of Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income Municipal Fund, Inc. and Nuveen Premier Municipal Income Fund, Inc. as of October 31, 1996, and the related statements of operations and changes in net assets and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of October 31, 1996, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income Municipal Fund, Inc. and Nuveen Premier Municipal Income Fund, Inc. at October 31, 1996, and the results of their operations, changes in their net assets and financial highlights for the periods indicated therein in conformity with generally accepted accounting principles. ERNST & YOUNG LLP Chicago, Illinois December 13, 1996 Build your wealth automatically Photographic image of Customer Service Rep at Nuveen. Managing your portfolio takes skill, experience, and informed judgment, but our efforts to help you build your wealth don't stop there. At Nuveen, we offer a number of convenient ways to add to your tax-free portfolio and earn the tax-free income you need to achieve your financial goals. NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. If you do not elect to reinvest distributions, all distributions are paid by check, or can be deposited directly your bank or brokerage account. By choosing to reinvest, you'll be able to set aside money regularly and automatically, and watch your investment grow through the power of tax-free compounding. You'll also benefit from dollar-cost averaging, a technique of investing at regular intervals, which allows you to build a high-quality, tax-free portfolio conveniently and cost effectively over time. All reinvestments are invested in full and fractional shares and are kept in non-certificated form by the Plan Agent, Chase Manhattan Bank. To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. Income or capital gains taxes may be payable on dividends or distributions that are reinvested. The shares you acquire by reinvesting will either be purchased on the open market or be newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will be invested within 30 days of the dividend payment date; no interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. You may, of course, change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You also can reinvest if your shares are registered in the name of a brokerage firm, bank, or other nominee. Just ask your investment adviser if the firm will participate on your behalf. If not, it's easy to have the shares registered in your name and to apply for a reinvestment account directly. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial adviser or call us toll-free at 1.800.257.8787. Photographic image of Customer Service Rep at Nuveen. "When it comes to financial planning, your investment adviser knows your situation best. Nuveen is pleased to provide the account information you and your adviser need to plan effectively." Photographic image of Customer Service Rep at Nuveen. "At Nuveen, we make reinvesting easy. A phone call is all it takes to set up your reinvestment account." Photographic image of Customer Service Rep at Nuveen. "When questions come up about your investment, we're happy to provide the up-to-date information you and your adviser need." More than just a number If you've ever called our toll-free customer service line, you've spoken with one of Nuveen's customer service representatives. These reps are ready to assist you with answers to your questions about current account balances, yields, and previous transactions on your accounts. They can also supply additional information about any of Nuveen's tax-free unit trusts and mutual funds. If you have a question about your account, or whenever you need help, just call 800.257.8787. Our customer service reps are available Monday through Friday from 8:00 a.m. to 8:00 p.m. Eastern time. Photographic image of woman seated and man standing behind her representing Nuveen investors. 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 FAN-3-10.96 -----END PRIVACY-ENHANCED MESSAGE-----