-----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, CVsxBYLtYtu2oQbXSyuCjCqfiMnMkpxUaEWok/2/pH5V4HWJDXay711B3P3LfFVF x+YTaYfnDxj2DS53jU8R7g== 0000891804-99-000011.txt : 19990105 0000891804-99-000011.hdr.sgml : 19990105 ACCESSION NUMBER: 0000891804-99-000011 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981031 FILED AS OF DATE: 19990104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN PREMIER MUNICIPAL INCOME FUND INC CENTRAL INDEX KEY: 0000880845 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06456 FILM NUMBER: 99500168 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 N-30D 1 NUVEEN PREMIER MUNI INCOME FUND INC(NPF) NUVEEN Exchange-Traded Funds October 31, 1998 Annual Report Dependable, tax-free income to help you keep more of what you earn. NQM Investment Quality NQS Select Quality NQU Quality Income NPF Premier Income Photo of: People looking into canyon. Highlights As of October 31, 1998 Contents 1 Dear Shareholder 3 Portfolio Manager Roundtable 5 NQM Performance Overview 6 NQS Performance Overview 7 NQU Performance Overview 8 NPF Performance Overview 9 Shareholder Meeting Report 13 Portfolio of Investments 39 Statement of Net Assets 40 Statement of Operations 41 Statement of Changes in Net Assets 42 Notes to Financial Statements 46 Financial Highlights 48 Report of Independent Auditors 49 Fund Information ================================================================================ Nuveen Investment Quality Municipal Fund, Inc. (NQM) o Graphic: 4 stars Four-star Morningstar Rating(TM)* o Competitive taxable-equivalent yield of 8.97% for investors in the 31% federal income tax bracket o One-year taxable-equivalent total return on share price of 8.89% for investors in the 31% federal income tax bracket Pie Chart: AAA/U.S. Guaranteed 70% AA 15% A 7% BBB/NR 8% Nuveen Select Quality Municipal Fund, Inc. (NQS) o Graphic: 4 stars Four-star Morningstar Rating(TM)* o Competitive taxable-equivalent yield of 8.54% for investors in the 31% federal income tax bracket o One-year taxable-equivalent total return on share price of 13.86% for investors in the 31% federal income tax bracket Pie Chart: AAA/U.S. Guaranteed 74% AA 6% A 9% BBB/NR 11% Nuveen Quality Income Municipal Fund, Inc. (NQU) o Graphic: 4 stars Four-star Morningstar Rating(TM)* o Competitive taxable-equivalent yield of 8.84% for investors in the 31% federal income tax bracket o One-year taxable-equivalent total return on share price of 12.54% for investors in the 31% federal income tax bracket Pie Chart: AAA/U.S. Guaranteed 59% AA 14% A 8% BBB/NR 19% Nuveen Premier Municipal Income Fund, Inc. (NPF) o Graphic: 4 stars Four-star Morningstar Rating(TM)* o Competitive taxable-equivalent yield of 8.17% for investors in the 31% federal income tax bracket o One-year taxable-equivalent total return on share price of 13.08% for investors in the 31% federal income tax bracket Pie Chart: AAA/U.S. Guaranteed 53% AA 14% A 15% BBB/NR 18% *Overall rating within the municipal bond category for the period ended October 31, 1998. Morningstar proprietary ratings reflect his torical risk-adjusted performance. The ratings are subject to change every month. Past performance is no guarantee of future results. Morningstar ratings are calculated from a fund's three-, five- and 10-year average annual returns (if applicable) in excess of 90-day Treasury bill returns with appropriate fee adjustments, and a risk factor that reflects fund performance below 90-day T-bill returns. NQS, NQU and NPF received 4 stars for the three- and five-year periods. NQM received 3 stars and 4 stars, for the three- and five- year periods, respectively. The top 10% of the funds in an investment class receive 5 stars, the next 22.5% receive 4 stars, and the next 35% receive 3 stars. The funds were rated among 195, 188, and 19 funds for the three-, five-, and 10-year periods, respectively. Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be preserved. Dear Shareholder I'm pleased to report that over the 12 months ended October 31, 1998, the Nuveen Exchange-Traded Funds covered in this report have continued to perform well, meeting their primary objective of providing you with attractive levels of tax-free income and after-tax total returns. The strong market for fixed-income securities, bolstered by investor demand for quality investments, benefited these funds and led to generally higher share prices than those posted a year ago. Attractive tax-free income, enhanced by strong share price performance, illustrates once again that Nuveen's Exchange-Traded Funds can provide an excellent investment option for income-oriented investors. The Year in Review Over the past year, the markets endured bouts of volatility, as the Asian financial crisis spilled over into emerging markets and affected economies around the globe. Investors responded by seeking a haven from the uncertainty in more conservative investments, such as municipal bond funds. As interest rates continued to trend downward, the competitive yields offered by our exchange-traded funds stimulated additional investor interest and demand, which led to improved share prices overall. In this environment, the market for exchange-traded municipal bond funds has been exceptionally strong. These funds continue to represent a bright spot among fixed-income investments, offering attractive income in a market that places a high premium on yield. In the coming months, we will continue to watch several key factors affecting the future of the economy, including corporate earnings reports, wage and employment figures, U.S. consumer confidence levels, the continuing impact of foreign financial turmoil, and any further interest rate indications from the Federal Reserve. These factors will influence the outlook for fixed-income markets into the coming year. Municipals Very Attractively Priced Over the past year, rising prices drove yields on 30-year Treasuries to their lowest levels since 1977. The story in the municipal market, however, was quite different. With yields on the long Treasury bond pushing below 5% at times, the yield on the Bond Buyer 40, an unmanaged index of long-term municipal bonds, fell just 27 basis points - from 5.40% to 5.13% - compared with the 100-basis point drop in Treasury yields over the past 12 months. As of October 31, 1998, the ratio of municipal yields to Treasury yields stood at 98.8%, compared with the more typical range of 86-87%. Over the past few months, this ratio has ranged as high as 100.6%. For investors, this means that quality municipal bonds currently offer about the same yield as Treasury bonds with comparable maturities - even before the tax advantages of municipal bonds are taken into account. On an after-tax basis in today's market, municipal bonds present an exceptionally attractive investment option relative to Treasuries. One of the main factors in the steep decline in Treasury yields during the past year was the strong interest in these investments by international investors. As the financial turmoil in Asia continued to spread to economies worldwide and the dollar strengthened against foreign currencies, the demand for U.S. dollar-denominated Treasury securities increased. In the municipal market, where foreign demand was limited by an inability to benefit from the tax advantages of munis, low interest rates and a strong economy combined to generate high levels of new issuance and a dramatic increase in the refinancing of existing bonds. The first ten months of 1998 saw $234 billion of municipal issuance, up 32% over the same period in 1997. In terms of total municipal issuance, this puts 1998 on pace to be the second largest year on record. In addition, the continued strength of the U.S. economy has brought about improvements in the fundamental financial health of many municipalities and boosted the overall credit quality of municipal bonds. In the third quarter of 1998, upgraded issues by the two major rating agencies outnumbered downgrades by a margin of 7 to 2. Nuveen Expertise Is Key The key to taking advantage of the exceptional values currently available in the municipal market is the expertise of a proven investment manager. At Nuveen, we recognize the value of time-tested expertise. The high level of recent municipal issuance, for example, highlights the value of Nuveen's in-depth knowledge of the municipal market, as our portfolio management teams carefully analyze the flood of issues to select those securities best suited to help the funds achieve their investment objectives. As a further enhancement to our manage ment capabilities, Nuveen has assembled a strong core of Premier Advisers(SM), managers who are experts in their particular area of the market who can provide time-tested experience and insight. In addition to Nuveen Advisory Corp., our Premier Adviser for tax-free investing, you can rely on other Nuveen Premier AdvisersSM to share their wisdom on the equity market, including Institutional Capital Corporation for equity value investing and Rittenhouse Financial Services for equity growth investing. For more information about our funds, including charges and expenses, contact your financial adviser for a prospectus, or call Nuveen at (800) 621-7227. Please read the prospectus carefully before you invest or send money. We encourage you to talk with your financial adviser about the ways Nuveen's expanding selection of investments can assist you in establishing a diversified portfolio designed to help you build and sustain long-term financial security. For more than 100 years, investors have known they can count on Nuveen. We are grateful for the confidence you have shown in us, and we intend to continue earning your trust in the years ahead. Sincerely, Timothy R. Schwertfeger Chairman of the Board December 15, 1998 Sidebar text: "The key to taking advantage of the exceptional values currently available in the municipal market is the expertise of a proven investment manager." Nuveen Exchange-Traded Fund Portfolio Manager Roundtable Portfolio managers Tom Futrell, Rick Huber, Bill Fitzgerald, and Steve Peterson discuss the municipal market environment, fund performance, and the outlook for the Nuveen national exchange-traded funds. The most recent addition to this team, Rick assumed management responsibility for the Select Quality fund on July 1, 1998, as part of Nuveen's efforts to maximize the efficient use of staff resources and portfolio manager expertise. What outside factors influenced the municipal bond market the most over the past year? The third quarter of 1998 saw an acceleration of trends that has been apparent in the fixed-income markets over the past 12 months: declining interest rates and the increased ratio of municipal to Treasury yields. The cause in both cases was heightened concern about the condition of the global financial system. While the U.S. economy exhibited continued growth, the impact of the financial turmoil in Southeast Asia, Russia, and other emerging markets was felt in the U.S. equity market. A desire to cushion this impact and avert a domestic credit crunch prompted the Federal Reserve to ease short-term interest rates in late September, the first rate cut in almost three years. In response to concerns that the initial quarter-point cut might not be sufficient, the Fed reduced rates again in October and November, bringing the federal funds rate to 4.75%. The Fed indicated that this accommodative stance was intended to sustain U.S. economic growth going forward, while also adding some stability to global markets. How have these outside factors affected municipal bond issuance? In response to an environment of low interest rates and continued economic growth, municipal bond issuance over the past year has been among the heaviest in years. As of the end of October, total municipal issuance in 1998 - both new deals and refundings - was on pace to become the second largest year on record. Another point concerns the level of insured bonds that have been brought to market. For the month of September, insured bonds made up 56% of all issuance. Most notable among the flood of new bonds was the $7 billion Long Island Power Authority (LIPA) offering. The first part of the LIPA issuance, which exceeded $3.5 billion, the largest issuance in municipal bond history, came to market in May, and another segment was brought out in October. Increased municipal supply has been met with strong investor demand, due in part to recent volatility in the equity markets. Demand from institutional buyers such as insurance companies has also increased, as these investors recognize the exceptionally attractive values currently offered by municipal bonds. What were the funds' total returns for the past year? For the fiscal year ended October 31, 1998, the Nuveen Exchange-Traded Funds covered in this report produced the following total returns on net asset value, compared to the total return of the Lehman Brothers Municipal Bond Index *: Lehman Brothers Total Taxable-Equivalent Municipal Bond Index Fund Return Total Return Total Return - ------------------------------------------------------------ NQM 7.97% 10.85% 8.02% - ------------------------------------------------------------ NQS 7.77% 10.67% 8.02% - ------------------------------------------------------------ NQU 7.37% 10.39% 8.02% - ------------------------------------------------------------ NPF 7.49% 10.45% 8.02% - ------------------------------------------------------------ What were the funds' durations, and what role does duration play regarding investment risk? The following chart illustrates the funds' durations compared to that of the Lehman index, as of October 31, 1998: Fund Fund Duration * Lehman Brothers Duration - --------------------------------------------------- NQM 7.98 years 7.30 years - --------------------------------------------------- NQS 6.92 years 7.30 years - --------------------------------------------------- NQU 6.60 years 7.30 years - --------------------------------------------------- NPF 7.94 years 7.30 years - --------------------------------------------------- Fund duration measures a bond fund's price volatility, or reaction to interest rate movements. The longer the duration, the more sensitive the fund is to changes in interest rates. During a period of falling interest rates, longer duration enables a fund to participate more fully in market gains. However, when rates rise, longer duration can make the fund more vulnerable to potential price declines. As interest rates trended downward over the past year, funds with durations longer than that of the index generally tended to outperform the market. Can you explain how duration affected each of these funds differently? For NQS and NQU, which had durations shorter than that of the Lehman index, we held bonds purchased during higher interest rate environments rather than sell them in an attempt to lengthen duration and capture slightly higher total returns. In the current interest rate environment, any bonds we would have sold would have been replaced with issues offering lower yields, which could have impacted the monthly dividend. In NQM and NPF, which have begun to face bond calls, market anticipation of the effect of these calls may have contributed to this year's slight underperformance. In keeping with the funds' objectives, our focus in all four funds will continue to be on maintaining the attractiveness and stability of the funds' dividends as long as possible. How have the dividends been affected? In this low interest rate environment, good call protection helped support the dividend of NQU and protect the income of this fund from erosion. As of October 31, 1998, NQU has provided shareholders with 45 consecutive months of steady income. However, declining interest rates worked to reduce the income levels of the other three funds, as proceeds from higher-yielding bonds that matured or were called were reinvested in bonds paying relatively lower current interest rates. The high level of single-family mortgage revenue bonds (9-16%) in these portfolios also contributed to the number of calls when interest rates fell, and bonds were prepaid. Over the past year, the change in income level earned by NQM, NQS, and NPF necessitated dividend reductions. Despite these adjustments, the Nuveen national funds continue to provide very competitive current market yields. The following chart highlights the four funds' market yields and their taxable-equivalent yields at the 31% federal income tax bracket, as of October 31, 1998: Fund Market Yield Taxable-Equivalent Yield - ------------------------------------------------------ NQM 6.19% 8.97% - ------------------------------------------------------ NQS 5.89% 8.54% - ------------------------------------------------------ NQU 6.10% 8.84% - ------------------------------------------------------ NPF 5.64% 8.17% - ------------------------------------------------------ What effect was there to the funds' share price performance? As Tim mentioned in his letter to shareholders, share price performance among many of the Nuveen Exchange-Traded Funds has been strong over the past 12 months. As interest rates fell, active demand for these funds generally benefited share prices. As of October 31, 1998, NQS, NQU, and NPF were trading at premiums to their net asset values. Over the past year, NQM saw a slight decline in share price, while strong bond market performance boosted the fund's net asset value. This increased the spread between the fund's NAV and share price, causing NQM to continue trading at a discount. The other funds in this report also saw their NAVs increase from where they were October 31, 1997. The accompanying chart highlights the funds' market prices and net asset values, as of October 31, 1998: Premium (+) Fund Market Price Net Asset Value Discount (-) - --------------------------------------------------------- NQM $15.50 $16.00 -3.13% - --------------------------------------------------------- NQS $16.1875 $15.68 +3.24% - --------------------------------------------------------- NQU $16.8125 $15.83 +6.21% - --------------------------------------------------------- NPF $17.125 $15.76 +8.66% - --------------------------------------------------------- What key strategies were used in managing the funds over the course of the year? Also, are there any particular sectors where Nuveen is looking for undervalued securities? For the past twelve months, these funds have generally focused on enhancing call protection by investing the proceeds of pre-refunded and called bonds into issues offering at least 10 years of call protection as well as into noncallable bonds. This should help stabilize the funds' dividends. Over the past year, we found value in the healthcare and utilities sectors, currently the two largest issuers in the municipal market, by taking advantage of the competitive environment created by deregulation and consolidation. Within the utilities sector, we concentrated on public power issues, where Nuveen's excellent surveillance and research help to point out the unique aspects of these credits. The heavy volume in these two sectors also created additional opportunities to find value, as hospital and utility bonds often offered above-market yields and special call provisions to attract buyers. Specific strategies for NQU over the past year included investing in AAA-rated and AA-rated issues that provided the highest levels of liquidity. These issues, which now make up 73% of the portfolio, positioned the fund to take advantage of value investing opportunities presented by the current market. These opportunities included general obligation bonds, which performed well as the tax receipts for most municipali ties increased more than anticipated, one of the dramatic benefits of the strong and steady economic expansion. When we reinvested the proceeds from bonds called from NPF, we looked for bonds that we anticipate will be refunded in order to realize the gain in price. The fund continues to be well diversified across sectors and states. For NQM, we continued to buy high-quality, investment-grade revenue bonds that we believe are undervalued when analyzed from the perspective of credit quality, yield curve position, or sector. Most of these bonds were in the 20- to 30-year maturity range. We also looked for bonds issued by states where we could pick up incremental yield. What is Nuveen's outlook for the future? Looking ahead for these funds, our focus will continue to be on supporting the stability of the funds' income streams, especially if we remain in a lower interest rate environment. NQM, NQS, and NPF have already entered into a period where bond calls can affect the portfolios. Our goal is to manage through this call risk by improving the structure of the portfolios. We plan on doing this by investing in bonds with good call protection, longer durations, and high yields. We also will attempt to pre-empt some of these calls by selling bonds prior to their call dates and replacing them with high-quality bonds offering attractive yields. Specific strategies for NQU over the next year include moving from high-grade to uninsured A-rated bonds in the public power and healthcare sectors, where we expect industry restructuring to result in continued demand. We also plan to increase our holdings in single-family and multifamily housing bonds, as changes in public policy concerning low-income housing should result in increased issuance and expanded opportunities to find value. We will continue to invest the proceeds of bond calls into bonds with maturities of 20-30 years to maximize yield. Over the next few years, our goal for NQS is to enhance the structure of the fund by focusing on upcoming calls and by finding ways to increase the yield of the fund. We also plan to diversify NQS by adding general obligation bonds as well as those issued by airports and other revenue-based obligations. Additionally, we will look to add noncallable bonds from all sectors. For NPF, our focus will remain on the yield-enhancing strategies mentioned earlier in order to support the fund's attractive income stream. We also plan to continue adding non-rated, investment-grade quality bonds to the portfolio to capture additional yield and to provide strength and stability for the fund's dividend. Nuveen's expertise as an experienced investment manager knowledgeable about the unique aspects of the municipal bond market is key to our ability to select the right securities for our funds and add value for our investors. The current market environment - influenced by declining interest rates, benign inflation, and strong municipal supply - has helped to position municipal bonds as one of the most compelling values in today's marketplace. We expect that the excellent municipal-to-Treasury ratio, combined with continued volatility in the equity markets and investors' increasing awareness of the need for asset allocation rebalancing, will result in growing demand for municipal bond funds. We believe that investors who take advantage of current opportunities in the municipal market should be rewarded with healthy returns and attractive yields in the months ahead, as the market recognizes the value of these quality investments. *The Lehman Brothers Municipal Bond Index is an unleveraged index comprised of a broad range of investment-grade municipal bonds, and does not reflect any initial or ongoing expenses. * The fund duration listed in the chart takes into account the leveraging process for each fund and therefore differs from the duration of the actual portfolio of individual bonds that com prise the fund. Fund duration is also known as leverage adjusted duration. Any future reference to duration, unless otherwise noted, will be to fund duration. Nuveen Investment Quality Municipal Fund, Inc. Performance Overview As of October 31, 1998 NQM Portfolio Statistics ================================================== Inception Date 6/90 - -------------------------------------------------- Share Price $15 1/2 - -------------------------------------------------- Net Asset Value $16.00 - -------------------------------------------------- Current Market Yield Per Share 6.19% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 8.97% - -------------------------------------------------- Fund Net Assets ($000) $820,150 - -------------------------------------------------- Effective Maturity (Years) 16.87 - -------------------------------------------------- Fund Duration (Years) 7.98 ================================================== Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 5.97% 7.97% - -------------------------------------------------- 3-Year 7.61% 7.44% - -------------------------------------------------- 5-Year 4.50% 6.36% - -------------------------------------------------- Since Inception 7.49% 8.81% ================================================== Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 8.89% 10.85% - -------------------------------------------------- 3-Year 10.68% 10.43% - -------------------------------------------------- 5-Year 7.69% 9.47% - -------------------------------------------------- Since Inception 10.70% 12.04% ================================================== Top Five Sectors (as of % of total investments) U.S. Guaranteed 32% - -------------------------------------------------- Housing (Single Family) 16% - -------------------------------------------------- Health Care 14% - -------------------------------------------------- Utilities 11% - -------------------------------------------------- Tax Obligation (Limited) 7% - -------------------------------------------------- Bar Chart: 1997-1998 Monthly Tax-Free Dividends Per Share(3) 11/97 0.0825 12/97 0.0825 1/98 0.0825 2/98 0.0825 3/98 0.0825 4/98 0.0825 5/98 0.0825 6/98 0.0825 7/98 0.0825 8/98 0.0800 9/98 0.0800 10/98 0.0800 Line Chart: Share Price Performance 11/7/97 15.75 15.625 15.688 15.75 15.813 15.938 16 16.063 16.063 16.313 16.438 16.5 16.5 16.625 16.375 16.25 16.188 16.125 16.063 16.125 15.813 16.063 16 15.75 15.5 15.75 15.75 15.813 15.938 15.875 15.813 15.938 15.938 16.125 16.25 16.125 16.063 16.125 15.938 15.813 15.938 16 15.813 15.5 15.438 15.5 16.438 16.063 16.25 15.63 10/31/98 15.5 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The federal only rate is based on the current market yield and a federal income tax rate of 31%. 2 Taxable-equivalent total return is based on the annualized total return and a federal income tax rate of 31%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. 3 The Fund also paid shareholders taxable distributions in December of $0.0104 per share. Nuveen Select Quality Municipal Fund, Inc. Performance Overview As of October 31, 1998 NQS Portfolio Statistics ================================================== Inception Date 3/91 - -------------------------------------------------- Share Price $16 3/16 - -------------------------------------------------- Net Asset Value $15.68 - -------------------------------------------------- Current Market Yield Per Share 5.89% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 8.54% - -------------------------------------------------- Fund Net Assets ($000) $769,774 - -------------------------------------------------- Effective Maturity (Years) 16.53 - -------------------------------------------------- Fund Duration (Years) 6.92 ================================================== Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 10.96% 7.77% - -------------------------------------------------- 3-Year 10.03% 7.60% - -------------------------------------------------- 5-Year 6.62% 6.40% - -------------------------------------------------- Since Inception 8.05% 8.56% ================================================== Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 13.86% 10.67% - -------------------------------------------------- 3-Year 13.08% 10.62% - -------------------------------------------------- 5-Year 9.80% 9.53% - -------------------------------------------------- Since Inception 11.24% 11.74% ================================================== Top Five Sectors (as a % of total investments) U.S. Guaranteed 34% - -------------------------------------------------- Utilities 16% - -------------------------------------------------- Transportation 10% - -------------------------------------------------- Housing (Single Family) 9% - -------------------------------------------------- Tax Obligation (General) 8% - -------------------------------------------------- 11/97 0.0815 12/97 0.0815 1/98 0.0815 2/98 0.0815 3/98 0.0815 4/98 0.0815 5/98 0.0815 6/98 0.0815 7/98 0.0795 8/98 0.0795 9/98 0.0795 10/98 0.0795 Line Chart: Share Price Performance 11/7/97 15.5 15.5 15.75 15.875 15.938 16.063 16.188 16.188 16.313 16.438 16.313 16.375 16.438 16.5 16.25 16.25 16.188 16.125 16.188 16.125 15.938 16 16.188 15.938 15.688 15.875 15.625 15.563 15.625 15.688 15.875 15.938 16 16.125 16.063 15.938 15.813 15.813 15.813 15.688 15.813 15.938 15.875 15.625 15.688 15.688 16 16.125 16.188 16.06 10/31/98 16.19 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The federal only rate is based on the current market yield and a federal income tax rate of 31%. 2 Taxable-equivalent total return is based on the annualized total return and a federal income tax rate of 31%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. Nuveen Quality Income Municipal Fund, Inc. Performance Overview As of October 31, 1998 NQU Portfolio Statistics ================================================== Inception Date 6/91 - -------------------------------------------------- Share Price $16 13/16 - -------------------------------------------------- Net Asset Value Per Share $15.83 - -------------------------------------------------- Current Market Yield 6.10% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 8.84% - -------------------------------------------------- Fund Net Assets ($000) $1,251,408 - -------------------------------------------------- Effective Maturity (Years) 15.90 - -------------------------------------------------- Fund Duration (Years) 6.60 ================================================== Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 9.64% 7.37% - -------------------------------------------------- 3-Year 11.47% 7.70% - -------------------------------------------------- 5-Year 7.63% 6.27% - -------------------------------------------------- Since Inception 8.60% 8.66% ================================================== Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 12.54% 10.39% - -------------------------------------------------- 3-Year 14.55% 10.76% - -------------------------------------------------- 5-Year 10.85% 9.40% - -------------------------------------------------- Since Inception 11.78% 11.81% ================================================== Top Five Sectors (as of % of total investments) U.S. Guaranteed 36% - -------------------------------------------------- Housing (Single Family) 12% - -------------------------------------------------- Transportation 12% - -------------------------------------------------- Utilities 9% - -------------------------------------------------- Health Care 7% - -------------------------------------------------- Bar Chart: 1997-1998 Monthly Tax-Free Dividends Per Share 11/97 0.0855 12/97 0.0855 1/98 0.0855 2/98 0.0855 3/98 0.0855 4/98 0.0855 5/98 0.0855 6/98 0.0855 7/98 0.0855 8/98 0.0855 9/98 0.0855 10/98 0.0855 Line Chart: Share Price Performance 11/7/97 16.438 16.75 16.688 16.688 16.75 16.75 16.5 16.563 16.688 16.875 17.063 17.063 17.125 17.125 16.813 16.875 17 16.75 16.813 16.563 15.938 16.5 16.5 16.438 16.125 16.25 16.313 16.5 16.375 16.563 16.563 16.438 16.563 16.75 16.938 16.938 16.875 16.875 16.938 16.375 16.5 16.5 16.375 16.25 16.25 16.313 16.813 16.813 16.75 16.69 10/31/98 16.81 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The federal only rate is based on the current market yield and a federal income tax rate of 31%. 2 Taxable-equivalent total return is based on the annualized total return and a federal income tax rate of 31%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. Nuveen Premier Municipal Income Fund, Inc. Performance Overview As of October 31, 1998 NPF Portfolio Statistics ================================================== Inception Date 12/91 - -------------------------------------------------- Share Price $17 1/8 - -------------------------------------------------- Net Asset Value Per Share $15.76 - -------------------------------------------------- Current Market Yield 5.64% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 8.17% - -------------------------------------------------- Fund Net Assets ($000) $454,149 - -------------------------------------------------- Effective Maturity (Years) 13.73 - -------------------------------------------------- Fund Duration (Years) 7.94 ================================================== Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 10.29% 7.49% - -------------------------------------------------- 3-Year 12.66% 7.95% - -------------------------------------------------- 5-Year 9.72% 6.84% - -------------------------------------------------- Since Inception 8.97% 8.65% ================================================== Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 13.08% 10.45% - -------------------------------------------------- 3-Year 15.72% 11.00% - -------------------------------------------------- 5-Year 12.94% 9.94% - -------------------------------------------------- Since Inception 12.06% 11.67% ================================================== Top Five Sectors (as of % of total investments) U.S. Guaranteed 29% - -------------------------------------------------- Housing (Multifamily) 14% - -------------------------------------------------- Health Care 11% - -------------------------------------------------- Housing (Single Family) 9% - -------------------------------------------------- Tax Obligation (Limited) 8% - -------------------------------------------------- Bar Chart: 1997-1998 Monthly Tax-Free Dividends Per Share 11/97 0.0860 12/97 0.0860 1/98 0.0860 2/98 0.0830 3/98 0.0830 4/98 0.0830 5/98 0.0830 6/98 0.0830 7/98 0.0830 8/98 0.0805 9/98 0.0805 10/98 0.0805 Line Chart: Share Price Performance 11/7/97 16.25 16.313 16.375 16.25 16.563 16.563 16.625 16.688 16.688 16.938 17 16.938 17.063 16.813 16.625 16.813 16.625 16.313 16.313 16.25 16.25 16.125 16.125 15.875 16.063 15.938 15.75 15.688 15.875 16 16.125 16.125 16.125 16.313 16.75 16.563 16.563 16.5 15.813 15.688 15.625 15.75 16.188 16.5 16.438 16.438 17.125 16.563 16.938 17.19 10/31/98 17.13 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The federal only rate is based on the current market yield and a federal income tax rate of 31%. 2 Taxable-equivalent total return is based on the annualized total return and a federal income tax rate of 31%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. Shareholder Meeting Report
NQM - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS: Preferred Preferred Preferred Preferred Common Shares Shares Shares Shares Shares Series-M Series-T Series-W Series-F ==================================================================================================================================== Robert P. Bremner For 32,133,296 2,367 2,296 2,013 2,331 Withhold 244,526 -- 2 2 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,377,822 2,367 2,298 2,015 2,333 ==================================================================================================================================== Lawrence H. Brown For 32,134,911 2,367 2,296 2,013 2,331 Withhold 242,911 -- 2 2 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,377,822 2,367 2,298 2,015 2,333 ==================================================================================================================================== Anthony T. Dean For 32,140,550 2,367 2,296 2,013 2,331 Withhold 237,272 -- 2 2 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,377,822 2,367 2,298 2,015 2,333 ==================================================================================================================================== Anne E. Impellizzeri For 32,116,985 2,367 2,296 2,013 2,331 Withhold 260,837 -- 2 2 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,377,822 2,367 2,298 2,015 2,333 ==================================================================================================================================== Peter R. Sawers For 32,129,865 2,367 2,296 2,013 2,331 Withhold 247,957 -- 2 2 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,377,822 2,367 2,298 2,015 2,333 ==================================================================================================================================== William J. Schneider For -- 2,367 2,296 2,013 2,331 Withhold -- -- 2 2 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,367 2,298 2,015 2,333 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,367 2,296 2,013 2,331 Withhold -- -- 2 2 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,367 2,298 2,015 2,333 ==================================================================================================================================== Judith M. Stockdale For 32,109,599 2,367 2,296 2,012 2,331 Withhold 268,223 -- 2 3 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,377,822 2,367 2,298 2,015 2,333 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 31,993,510 2,366 2,298 2,014 2,329 Against 98,439 1 -- -- 4 Abstain 285,873 -- -- 1 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 32,377,822 2,367 2,298 2,015 2,333 ====================================================================================================================================
SHAREHOLDER MEETING REPORT
NQS - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS: Preferred Preferred Preferred Preferred Common Shares Shares Shares Shares Shares Series-M Series-T Series-W Series-F - ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner For 30,958,908 1,460 1,648 2,446 2,156 Withhold 324,812 4 -- -- 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,283,720 1,464 1,648 2,446 2,161 ==================================================================================================================================== Lawrence H. Brown For 30,979,330 1,460 1,648 2,446 2,156 Withhold 304,390 4 -- -- 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,283,720 1,464 1,648 2,446 2,161 ==================================================================================================================================== Anthony T. Dean For 30,994,718 1,460 1,648 2,446 2,156 Withhold 289,002 4 -- -- 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,283,720 1,464 1,648 2,446 2,161 ==================================================================================================================================== Anne E. Impellizzeri For 30,976,472 1,460 1,648 2,440 2,156 Withhold 307,248 4 -- 6 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,283,720 1,464 1,648 2,446 2,161 ==================================================================================================================================== Peter R. Sawers For 30,989,024 1,460 1,648 2,440 2,156 Withhold 294,696 4 -- 6 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,283,720 1,464 1,648 2,446 2,161 ==================================================================================================================================== William J. Schneider For -- 1,459 1,648 2,446 2,156 Withhold -- 5 -- -- 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,464 1,648 2,446 2,161 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,459 1,648 2,446 2,156 Withhold -- 5 -- -- 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,464 1,648 2,446 2,161 ==================================================================================================================================== Judith M. Stockdale For 30,953,415 1,455 1,648 2,446 2,156 Withhold 330,305 9 -- -- 5 - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,283,720 1,464 1,648 2,446 2,161 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 30,944,977 1,457 1,644 2,442 2,154 Against 74,946 4 2 -- 5 Abstain 263,797 3 2 4 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 31,283,720 1,464 1,648 2,446 2,161 ====================================================================================================================================
SHAREHOLDER MEETING REPORT NQU - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS: Preferred Preferred Preferred Preferred Preferred Common Shares Shares Shares Shares Shares Shares Series-M Series-T Series-W Series-TH Series-F ==================================================================================================================================== Robert P. Bremner For 49,397,346 2,345 2,744 2,341 3,634 2,579 Withhold 346,121 1 63 18 50 24 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,743,467 2,346 2,807 2,359 3,684 2,603 ==================================================================================================================================== Lawrence H. Brown For 49,412,198 2,345 2,744 2,341 3,637 2,579 Withhold 331,269 1 63 18 47 24 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,743,467 2,346 2,807 2,359 3,684 2,603 ==================================================================================================================================== Anthony T. Dean For 49,422,368 2,345 2,744 2,341 3,637 2,579 Withhold 321,099 1 63 18 47 24 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,743,467 2,346 2,807 2,359 3,684 2,603 ==================================================================================================================================== Anne E. Impellizzeri For 49,379,073 2,345 2,747 2,325 3,637 2,579 Withhold 364,394 1 60 34 47 24 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,743,467 2,346 2,807 2,359 3,684 2,603 ==================================================================================================================================== Peter R. Sawers For 49,417,613 2,345 2,744 2,341 3,637 2,579 Withhold 325,854 1 63 18 47 24 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,743,467 2,346 2,807 2,359 3,684 2,603 ==================================================================================================================================== William J. Schneider For -- 2,345 2,744 2,341 3,634 2,579 Withhold -- 1 63 18 50 24 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,346 2,807 2,359 3,684 2,603 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,345 2,744 2,341 3,637 2,579 Withhold -- 1 63 18 47 24 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,346 2,807 2,359 3,684 2,603 ==================================================================================================================================== Judith M. Stockdale For 49,353,876 2,345 2,747 2,340 3,634 2,570 Withhold 389,591 1 60 19 50 33 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,743,467 2,346 2,807 2,359 3,684 2,603 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 49,261,019 2,344 2,766 2,359 3,652 2,595 Against 124,899 2 40 -- 1 -- Abstain 357,549 -- 1 -- 31 8 - ------------------------------------------------------------------------------------------------------------------------------------ Total 49,743,467 2,346 2,807 2,359 3,684 2,603 ====================================================================================================================================
SHAREHOLDER MEETING REPORT
NPF - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS: Preferred Preferred Common Shares Shares Shares Series-T Series-TH ==================================================================================================================================== Robert P. Bremner For 18,403,453 2,346 2,496 Withhold 83,352 -- 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,486,805 2,346 2,498 ==================================================================================================================================== Lawrence H. Brown For 18,416,537 2,346 2,496 Withhold 70,268 -- 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,486,805 2,346 2,498 ==================================================================================================================================== Anthony T. Dean For 18,417,847 2,346 2,498 Withhold 68,958 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,486,805 2,346 2,498 ==================================================================================================================================== Anne E. Impellizzeri For 18,402,008 2,346 2,496 Withhold 84,797 -- 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,486,805 2,346 2,498 ==================================================================================================================================== Peter R. Sawers For 18,418,780 2,346 2,498 Withhold 68,025 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,486,805 2,346 2,498 ==================================================================================================================================== William J. Schneider For -- 2,346 2,496 Withhold -- -- 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,346 2,498 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,346 2,498 Withhold -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,346 2,498 ==================================================================================================================================== Judith M. Stockdale For 18,398,033 2,346 2,496 Withhold 88,772 -- 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,486,805 2,346 2,498 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 18,392,073 2,344 2,478 Against 26,355 -- 20 Abstain 68,377 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,486,805 2,346 2,498 ====================================================================================================================================
PORTFOLIO OF INVESTMENTS Nuveen Investment Quality Municipal Fund, Inc. (NQM) OCTOBER 31, 1998
PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.9% $ 14,850,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 1994 Series A, 5.400%, 12/01/13 6/04 at 102 Aa2 $15,324,606 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.3% 7,000,000 Arkansas Development Finance Authority, Home Mortgage Revenue Bonds, 1998 Series A (Non-AMT), 5.150%, 7/01/17 7/08 at 101 1/2 AAA 7,079,100 3,250,000 City of North Little Rock, Arkansas, Health Facilities Board (Baptist Health), Healthcare Revenue Bonds, Series 1996A, 5.400%, 12/01/16 12/06 at 101 AAA 3,362,808 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 14.9% 9,650,000 Certificates of Participation (1991 Financing Project), County of Alameda, California, Alameda County Public Facilities Corporation, 6.000%, 9/01/21 9/06 at 102 AAA 10,648,100 22,400,000 California Health Facilities Financing Authority, Kaiser Permanente Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 5/03 at 102 A 23,157,120 9,625,000 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) 6/01 at 102 Aaa 10,668,735 5,925,000 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 6/03 at 102 Aa3 6,175,213 7,140,000 Culver City Redevelopment Financing Authority, 1993 Tax Allocation Refunding Revenue Bonds, 5.000%, 11/01/23 11/03 at 102 AAA 7,134,931 9,740,000 Huntington Park Redevelopment Agency, Single Family Residential Mortgage Revenue Refunding Bonds, 1986 Series A, 8.000%, 12/01/19 No Opt. Call AAA* 13,624,604 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 12/03 at 102 BBB 4,322,920 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 5/03 at 102 AAA 6,695,506 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 No Opt. Call AAA 21,714,344 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) No Opt. Call AAA 18,002,078 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 2.7% 4,940,000 Castle Pines Metropolitan District, Douglas County, Colorado, General Obligation Refunding and Improvement Bonds, Series 1990, 7.625%, 12/01/15 (Pre-refunded to 12/01/00) 12/00 at 102 AAA 5,445,362 2,285,000 Colorado Housing Finance Authority, Single Family Program Senior and Subordinate Bonds, 1996 Series B, 7.450%, 11/01/27 5/06 at 105 Aa2 2,636,593 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 820,000 8.000%, 11/15/25 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 100 Aaa 921,541 2,265,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 2,490,979 7,865,000 Colorado Springs School District No. 11, El Paso County, Colorado, General Obligation Improvement Bonds, Series 1996, 7.125%, 12/01/21 12/07 at 125 AA- 10,300,555 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 2.1% Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1997 Series C: 1,000,000 5.700%, 11/15/17 (Alternative Minimum Tax) 11/07 at 102 AA 1,048,430 8,605,000 5.850%, 11/15/28 (Alternative Minimum Tax) 11/07 at 102 AA 9,055,386 6,985,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1996 Series D, Subseries D-2, 6.200%, 11/15/27 (Alternative Minimum Tax) 5/06 at 102 AA 7,461,656 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ 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) 12/00 at 102 AAA $ 5,586,830 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 4.8% 4,000,000 Hillsborough County Port District, Florida (Tampa Port Authority), Revenue Bonds, Series 1990, 8.250%, 6/01/09 (Pre-refunded to 12/01/00) 12/00 at 102 Baa1*** 4,453,080 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) 11/00 at 102 Aaa 21,941,200 Orange County Housing Finance Authority, GNMA Collateralized Mortgage Revenue Refunding Bonds, 1990 Series A: 1,300,000 7.500%, 7/01/10 7/00 at 103 AAA 1,371,903 11,035,000 7.600%, 1/01/24 7/00 at 103 AAA 11,720,936 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.6% 2,250,000 Municipal Electric Authority of Georgia, Project One Special Obligation Bonds, Fourth Crossover Series, 6.500%, 1/01/20 No Opt. Call A 2,643,413 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 10/99 at 102 A+ 10,382,700 7,325,000 Wayne County Development Authority, Solid Waste Disposal Revenue Bonds (ITT Rayonier, Inc. Project), Series 1990, 8.000%, 7/01/15 (Alternative Minimum Tax) 7/00 at 102 BBB+ 7,825,810 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 5.3% 7,500,000 Community College District No. 508, Cook County, Illinois, Certificates of Participation, 8.750%, 1/01/07 No Opt. Call AAA 9,807,000 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) 11/00 at 102 A3*** 3,616,959 5,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1989B (ServantCor), 7.875%, 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 N/R*** 5,282,950 5,900,000 Community Unit School District Number 7, Madison County, Illinois, School Building Bonds, Series 1994, 5.850%, 2/01/13 No Opt. Call AAA 6,707,474 3,585,000 City of Pekin, Illinois, Multifamily Housing Refunding Revenue Bonds, Series 1992A (FHA Insured Mortgage Loan - Section 8 Assisted Project), 6.875%, 5/01/22 5/03 at 103 AAA 3,851,545 1,960,000 City of Peoria, Peoria County, City of Pekin, Tazewell and Peoria Counties, and City of Waukegan, Lake County (Illinois) Jointly, GNMA Collateralized Mortgage Revenue Bonds, Series 1990, 7.875%, 8/01/22 (Alternative Minimum Tax) 8/00 at 103 AA+ 2,058,274 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 No Opt. Call AAA 7,254,778 860,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992B, 9.000%, 6/01/07 No Opt. Call AAA 1,157,534 Southwestern Illinois Development Authority, Solid Waste Disposal Revenue Bonds (Laclede Steel Company Project), Series 1990: 660,000 8.375%, 8/01/08 (Alternative Minimum Tax) 8/00 at 103 A 717,506 2,910,000 8.500%, 8/01/20 (Alternative Minimum Tax) 8/00 at 103 A 3,169,601 - ------------------------------------------------------------------------------------------------------------------------------------ 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 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 6,576,960 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.5% 4,500,000 Sedgwick County, Kansas and Shawnee County, Kansas, Single Family Mortgage Revenue Bonds (Mortgaged-Backed Securities Program), 1997 Series A-1, 6.950%, 6/01/29 (Alternative Minimum Tax) No Opt. Call Aaa 5,017,455 4,870,000 City of Topeka, Kansas, Variable Rate Demand Industrial Revenue Refunding Bonds, Series 1988 (Sunwest Hotel Corporation Project), 9.500%, 10/01/16 (Pre-refunded to 8/15/16) (Alternative Minimum Tax) 8/16 at 100 AAA 6,950,026 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 2.7% $ 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 4/05 at 102 Aa2 $13,408,625 1,480,000 Kentucky Housing Corporation, Housing Revenue Bonds (FHA Insured/VA Guaranteed), 1990 Series C Bonds, 8.100%, 1/01/22 (Alternative Minimum Tax) 7/00 at 102 AAA 1,559,654 7,740,000 County of Warren, Kentucky, Hospital Revenue Bonds, Series 1998 (Bowling Green-Warren County Community Hospital Corporation), 4.875%, 4/01/27 4/08 at 101 AAA 7,418,248 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 6.1% 4,945,000 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) 8/00 at 102 Aaa 5,174,102 4,600,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1997D, 5.900%, 10/01/30 (Alternative Minimum Tax) 10/07 at 102 Aaa 4,818,592 2,550,000 Louisiana Public Facilities Authority (West Jefferson Medical Center), 7.900%, 12/01/15 (Pre-refunded to 12/01/98) 12/98 at 102 AAA 2,611,277 15,890,000 Louisiana Public Facilities Authority, Fixed Rate Health and Education Capital Facilities Revenue Bonds (West Jefferson Medical Center), Series 1985D, 7.900%, 12/01/15 6/99 at 102 AAA 16,268,023 4,560,000 Louisiana Public Facilities Authority, Extended Care Facilities Revenue Bonds (Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/04 No Opt. Call BBB 5,480,345 11,545,000 Orleans Parish School Board, Public School Refunding Bonds, Series 1987, 9.000%, 2/01/09 No Opt. Call AAA 16,010,375 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.6% 4,880,000 Maine State Housing Authority, Mortgage Purchase Bonds, 1994 Series C-2, 6.875%, 11/15/23 (Alternative Minimum Tax) 10/04 at 102 AA 5,255,126 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.3% 2,000,000 City of Gaithersburg (Maryland), First Mortgage Economic Development Revenue Bonds (Asbury Methodist Home, Incorporated Facility), Series 1990, 7.850%, 1/01/20 (Pre-refunded to 1/01/00) 1/00 at 102 N/R*** 2,135,300 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 8.3% 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) 8/00 at 102 Aaa 17,694,625 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Goddard Memorial Hospital Issue, Series B: 3,810,000 9.000%, 7/01/15 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 4,221,518 5,705,000 9.000%, 7/01/15 7/00 at 102 BBB 6,174,407 535,000 Massachusetts Housing Finance Agency, Residential Housing Revenue Bonds, 1988 Series B, 8.100%, 8/01/23 (Alternative Minimum Tax) 8/99 at 102 A- 553,869 Massachusetts Water Resources Authority, General Revenue Bonds, 1990 Series A: 15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 16,148,700 4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 4,299,440 4,000,000 Massachusetts Water Resources Authority, General Revenue Refunding Bonds, Series 1993, 5.000%, 3/01/22 3/03 at 100 AAA 3,932,120 15,000,000 Massachusetts Water Resources Authority, General Revenue Refunding Bonds, 1997 Series D, 5.000%, 8/01/24 8/08 at 101 AAA 14,816,850 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.9% 10,000,000 City of Detroit, Michigan, Water Supply System Revenue and Revenue Refunding Bonds, Series 1993, 6.500%, 7/01/15 No Opt. Call AAA 11,953,800 3,650,000 City of Detroit, Michigan, Water Supply System Revenue (Senior Lien) Bonds, Series 1997-A, 5.000%, 7/01/27 7/07 at 101 AAA 3,597,769 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.4% $ 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 (Mortgage Backed Program), Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) No Opt. Call AAA $ 7,130,350 1,330,000 The Dakota County Housing and Redevelopment Authority, Minnesota, Governmental Housing Development Bonds (Dakota County, Minnesota, General Obligation - Burnsville Senior Housing Facility), Series 1998, 4.750%, 1/01/23 1/08 at 100 AAA 1,313,907 2,860,000 City of Hopkins, Minnesota, Elderly Housing Revenue Refunding Bonds (St. Therese Southwest, Inc. Project), Series 1994A, 6.500%, 3/01/19 (Pre-refunded to 3/01/04) 3/04 at 102 AAA 3,262,202 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.4% 1,950,000 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) 10/99 at 102 AAA 2,035,605 895,000 Mississippi Home Corporation, Single Family Senior Revenue Refunding Bonds, Series 1990A, 9.250%, 3/01/12 9/00 at 103 AAA 957,426 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.3% 2,125,000 Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds (Homeownership Loan Program), 1997 Series A-2, 7.300%, 3/01/28 (Alternative Minimum Tax) 3/07 at 105 AAA 2,424,880 - ------------------------------------------------------------------------------------------------------------------------------------ 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) 3/04 at 102 AAA 3,432,198 13,330,000 Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) 3/05 at 101 1/2 AAA 14,132,999 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 11.2% The City of New York, General Obligation Bonds, Fiscal 1997 Series G: 95,000 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A-*** 109,270 9,905,000 6.000%, 10/15/26 10/07 at 101 10/07 at 101 A- 10,792,686 7,000,000 New York City (New York), Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 6/06 at 101 AAA 7,532,420 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) 6/00 at 101 1/2 Aaa 10,999,170 11,500,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) at 100 Aaa 11,971,040 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) 1/99 at 102 Baa2 4,311,048 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 No Opt. Call BBB+ 16,555,447 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) 7/00 at 102 Aaa 10,907,800 8,960,000 Dormitory Authority of the State of New York, State University Educational Facilities, Revenue Bonds, Series 1989B, 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 9,644,455 3,500,000 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series HH-3, 7.950%, 4/01/22 (Alternative Minimum Tax) 6/00 at 102 Aa2 3,669,470 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) 2/00 at 102 AAA 5,348,950 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.9% 2,795,000 Charlotte Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-Double Oaks Apartments), 7.350%, 5/15/26 11/07 at 100 AAA 3,127,717 19,200,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Refunding Series 1996 B, 5.875%, 1/01/21 1/07 at 102 AAA 20,959,296 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.8% $ 8,990,000 Northern Wasco County Peoples Utility District, Wasco County, Oregon, McNary Dam Fishway Hydroelectric Project Revenue Bonds, Series 1993 (Bonneville Power Administration), 5.200%, 12/01/24 12/03 at 102 Aa1 $ 9,039,805 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) 9/00 at 102 AAA 2,727,225 2,500,000 Hillsboro School District No. 1J, Washington, Multnomah and Yamhill Counties, Oregon, General Obligation Refunding Bonds, Series 1998, 5.000%, 11/01/12 No Opt. Call Aa3 2,640,800 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.3% 4,905,000 McKean County Hospital Authority, Hospital Revenue Bonds, Series of 1990 (Bradford Hospital Project), 8.875%, 10/01/20 10/00 at 102 BBB- 5,461,374 6,395,000 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 1990-28, 7.650%, 10/01/23 (Alternative Minimum Tax) 10/00 at 102 AA+ 6,545,091 7,040,000 City of Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 1993, 5.000%, 6/15/16 6/03 at 100 AAA 7,049,645 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 4.0% 4,835,000 Newport Housing Development Corporation, 1995 Multifamily Mortgage Revenue Refunding Bonds (Broadway-West Broadway Apartments - FHA Insured Mortgage Section 8 Assisted Project), Series A, 6.800%, 8/01/24 6/03 at 100 AAA 5,400,018 25,250,000 Rhode Island Health and Educational Building Corporation, Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue, Series 1996, 5.750%, 5/15/23 5/07 at 102 AAA 26,989,220 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 0.4% 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) 7/00 at 102 AA 3,648,403 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.2% 1,895,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue H, Series 1988, 7.825%, 7/01/15 (Alternative Minimum Tax) 7/12 at 100 AA 1,970,345 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 3.9% 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) 1/99 at 102 BBB+ 4,407,314 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) 2/00 at 102 BBB+ 2,125,040 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 11/03 at 102 AAA 3,664,360 2,260,000 The Cameron County Housing Finance Corporation, GNMA Collateralized Mortgage Revenue Refunding Bonds, 1990 Series B, 7.850%, 3/01/24 9/00 at 103 AAA 2,392,617 Dallas Housing Corporation Refunding and Capital Program Revenue Bonds (Section 8 Assisted Projects), Series 1990: 1,000,000 7.700%, 8/01/05 8/00 at 102 Baa2 1,052,470 2,000,000 7.850%, 8/01/13 8/00 at 102 Baa2 2,104,680 13,175,000 Harris County Hospital District Refunding Revenue Bonds, Texas, Series 1990, 7.400%, 2/15/10 No Opt. Call AAA 16,023,435 - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.5% 3,955,000 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 1, 8.150%, 5/01/25 (Alternative Minimum Tax) 11/00 at 102 A+ 4,168,926 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 7.6% 11,320,000 State of Washington, General Obligation Bonds, Series 1994A, 4.750%, 10/01/1310/03 at 100 AA+ 11,326,905 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 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 3,241,140 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (CONTINUED) $ 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) 7/00 at 102 AAA $ 2,183,860 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) 7/99 at 102 AAA 1,832,022 1,460,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,532,517 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) 7/00 at 102 Aaa 6,076,631 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) 1/00 at 102 AAA 14,773,892 16,060,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15 7/03 at 102 AAA 16,806,147 4,500,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15 7/03 at 102 Aa1 4,598,234 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.4% 3,145,000 Wisconsin Housing and Economic Development Authority, Home Ownership Revenue Bonds, 1989 Series B, 7.600%, 3/01/15 9/99 at 102 AA 3,251,773 - ------------------------------------------------------------------------------------------------------------------------------------ $ 728,750,000 Total Investments - (cost $730,329,939) - 97.9% 802,549,491 =============----------------------------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.6% 4,500,000 City of Chicago, Chicago Midway Airport, Second Lien Revenue Bonds, Series 1998A, Variable Rate Demand Bonds, 3.850%, 1/01/29+ (Alternative Minimum Tax) VMIG-1 4,500,000 800,000 Geisinger Authority Health System, Series 1998B, Variable Rate Demand Bonds, 3.700%, 8/15/28+ VMIG-1 800,000 - ------------------------------------------------------------------------------------------------------------------------------------ $ 5,300,000 Total Temporary Investments - 0.6% 5,300,000 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 12,300,997 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $820,150,488 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. + 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. N/R Investment is not rated. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS Nuveen Select Quality Municipal Fund, Inc. (NQS) OCTOBER 31, 1998
PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.8% $ 2,900,000 The Water Works Board of the City of Arab (Alabama), Water Revenue Bonds, Series 1991, 7.050%, 8/01/16 8/01 at 102 AAA $3,190,174 2,625,000 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997-A, 5.375%, 2/01/27 2/07 at 100 AAA 2,700,521 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.2% 3,230,000 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 8/01 at 103 AA 3,434,491 4,500,000 City of Little Rock, Arkansas, Hotel and Restaurant Gross Receipts Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15 No Opt. Call A 5,741,280 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.8% 3,125,000 State of California Department of Transportation, Refunding Certificates of Participation, Series 1997A, 5.250%, 3/01/16 3/07 at 102 AAA 3,242,188 3,200,000 State of California Department of Water Resources, Central Valley Project, Water System Revenue Bonds, Series M, 4.875%, 12/01/27 12/03 at 101 AA 3,126,880 4,000,000 California Statewide Communities Development Authority, Certificates of Participation (Sisters of Charity of Leavenworth Health Services Corporation), 5.000%, 12/01/23 12/03 at 102 AA 3,940,760 7,285,000 Department of Water and Power of The City of Los Angeles (California), Electric Plant Refunding Revenue Bonds, Issue of 1993, 5.375%, 9/01/23 9/03 at 102 Aa3 7,528,319 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) 7/01 at 102 Aaa 24,036,898 10,000,000 San Joaquin Hills Transportation Corridor Agency, Toll Road Refunding Revenue Bonds, Series 1997A, 5.250%, 1/15/30 1/07 at 102 AAA 10,249,500 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.6% City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C: 2,560,000 6.750%, 11/15/22 (Pre-refunded to 11/15/02) (Alternative Minimum Tax) 11/02 at 102 Aaa 2,892,442 9,590,000 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 Baa1 10,500,091 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 5,305,000 8.750%, 11/15/23 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 102 Aaa 6,170,458 14,695,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Baa1 16,755,533 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 1,040,000 7.750%, 11/15/21 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 102 Aaa 1,179,994 3,960,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Baa1 4,402,490 1,360,000 Jefferson County, Colorado, Single Family Revenue Refunding Bonds, Series 1991A, 8.875%, 10/01/13 4/01 at 103 AAA 1,451,650 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 2.5% 7,340,000 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, Series 1991A, 10.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 103 N/R*** 8,745,096 9,785,000 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, Series 1994A, 7.250%, 8/15/21 8/04 at 102 N/R 10,688,743 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.0% 5,000,000 District of Columbia (Washington, D.C.), General Obligation Bonds, Series 1998B, 6.000%, 6/01/11 No Opt. Call AAA 5,680,950 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) 12/00 at 102 AAA 1,730,150 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 3.0% $ 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) 10/00 at 101 1/2 Aaa $15,336,56 7,400,000 State of Florida, Orlando-Orange County Expressway Authority, Junior Lien Revenue Refunding Bonds, Series of 1993A, 5.125%, 7/01/20 7/03 at 102 AAA 7,432,634 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 2.3% 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) 7/01 at 102 AAA 17,909,760 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 7.4% 14,605,000 City of Chicago, General Obligation Bonds (Emergency Telephone System), Series 1993, 5.625%, 1/01/23 1/03 at 102 AAA 15,420,251 5,000,000 City of Chicago (Illinois), General Obligation Bonds, Project and Refunding, Series 1995B, 5.125%, 1/01/25 1/06 at 102 AAA 4,985,350 30,000,000 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A, 0.000%, 12/01/25 No Opt. Call AAA 7,449,000 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 1/02 at 105 AAA 857,096 6,780,000 7.650%, 12/31/31 1/02 at 105 AAA 7,424,575 10,375,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue Bonds, The University of Chicago, Series 1985 Remarketed, 5.700%, 12/01/25 (Pre-refunded to 12/01/03) 12/03 at 102 Aa1*** 11,438,126 1,585,000 Illinois Housing Development Authority, Multi-Family Housing Bonds, 1991 Series C, 7.400%, 7/01/23 7/01 at 102 A+ 1,670,289 7,375,000 Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Refunding Bonds, Series 1998A, 5.500%, 12/15/23 No Opt. Call AAA 7,981,963 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 2.8% 8,640,000 Avon Community School Building Corporation, First Mortgage Bonds, Series 1994 (Hendricks County, Indiana), 5.500%, 1/01/16 1/04 at 101 AAA 8,948,707 5,145,000 Beacon Heights Housing Development Corporation, 1991 Multifamily Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-Section 8 Assisted Project), Series A, 7.625%, 2/01/21 6/01 at 100 AAA 5,384,706 5,770,000 Fremont Middle School Building Corporation, First Mortgage Refunding Bonds, Series 1994 A, Steuben County, Indiana, 5.250%, 1/15/13 1/04 at 101 AAA 5,943,446 1,090,000 Michigan City Housing Development Corporation, 1991 Multifamily Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-Section 8 Assisted Project), Series A, 7.625%, 2/01/21 6/01 at 100 AAA 1,139,715 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 2.4% 7,875,000 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991C (Shawnee Mission Medical Center, Inc. Project), 7.250%, 9/01/04 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 8,458,774 8,800,000 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991B (Shawnee Mission Medical Center, Inc. Project), 7.250%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 9,793,784 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.4% 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 11/01 at 103 Aa 3,195,749 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.2% 1,565,000 Calcasieu Parish Public Trust Authority (Louisiana), Mortgage Revenue Refunding Bonds, 1991 Series A, 7.750%, 6/01/12 6/01 at 103 A1 1,666,381 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.7% 7,375,000 Boston Housing Development Corporation, Mortgage Revenue Refunding Bonds, Series 1994A (FHA Insured Mortgage Loans - Section 8 Assisted Projects), 5.500%, 7/01/24 1/04 at 102 AAA 7,514,240 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS (CONTINUED) $ 2,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lowell General Hospital Issue, Series A, 8.400%, 6/01/11 (Pre-refunded to 6/01/01) 6/01 at 102 A3*** $2,266,340 19,025,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1990 Series A, 6.000%, 4/01/20 (Pre-refunded to 4/01/00) 4/00 at 100 AAA 19,700,197 6,300,000 Somerville Housing Authority (Massachusetts), Mortgage Revenue Bonds, Series 1990 (GNMA Collateralized - Clarendon Hill Towers Project), 7.950%, 11/20/30 5/00 at 102 AAA 6,623,316 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.6% 3,625,000 Fowlerville Community Schools, Counties of Livingston, Ingham, and Shiawassee, State of Michigan, 1996 School Building and Site Bonds, 5.600%, 5/01/26 5/07 at 100 AAA 3,831,988 7,890,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) 8/01 at 102 Aaa 8,837,589 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.9% 3,465,000 Chisago County, Southcentral Minnesota Multi-County, and Stearns County, Housing and Redevelopment Authorities, Single Family Mortgage Revenue Refunding Bonds (Fannie Mae Mortgage-Backed Securities Program), Series 1994B, 7.050%, 9/01/27 (Alternative Minimum Tax) 3/04 at 102 27/32 AAA 3,764,826 The Dakota, Washington, and Stearns Counties Housing and Redevelopment Authority, Single Family Mortgage Revenue Refunding Bonds (Fannie Mae Mortgage-Backed Securities Program), Series 1994A: 1,750,000 6.600%, 9/01/17 (Alternative Minimum Tax) 3/04 at 102 AAA 1,866,533 1,235,000 6.700%, 3/01/21 (Alternative Minimum Tax) 3/04 at 102 AAA 1,318,140 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.2% 1,435,000 Goodman Housing Development Corporation, 1991 Multifamily Mortgage Revenue Refunding Bonds (Goodhaven Manor-FHA Insured Mortgage, Section 8 Assisted Project), Series A, 7.625%, 2/01/22 8/01 at 100 AAA 1,501,297 - ------------------------------------------------------------------------------------------------------------------------------------ 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) 3/05 at 101 1/2 AAA 11,292,931 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.5% 10,000,000 Clark County School District, Nevada, General Obligation (Limited Tax), School Improvement Bonds, Series 1996, 6.000%, 6/15/15 6/06 at 101 AAA 11,351,900 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.5% 4,420,000 New Jersey Housing and Mortgage Finance Agency, Section 8 Bonds, 1991 Series A, 6.850%, 11/01/06 11/01 at 102 AA+ 4,736,958 13,920,000 The Pollution Control Financing Authority of Salem County (New Jersey), Pollution Control Revenue Refunding Bonds, 1993 Series C (Public Service Electric and Gas Company Project), 5.550%, 11/01/33 11/03 at 102 AAA 14,742,533 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 2.1% 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 4/01 at 102 A+ 15,267,995 1,130,000 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) 9/99 at 102 AA- 1,169,686 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 10.9% 12,750,000 The City of New York, General Obligation Bonds, Fiscal 1991 Series F, 8.250%, 11/15/10 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 AAA 14,614,943 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (CONTINUED) $ 4,000,000 The City of New York, New York, General Bonds, Fiscal 1998 Series F, 5.250%, 8/01/14 2/08 at 101 A- $4,117,920 The City of New York, General Obligation Bonds, Fiscal 1997 Series G: 90,000 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A-*** 103,519 9,200,000 6.000%, 10/15/26 10/07 at 101 A- 10,024,504 10,000,000 Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue Bonds, Series 1998D, 5.000%, 2/15/23 8/08 at 101 AAA 9,909,000 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) 4/02 at 102 AAA 6,739,200 100,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home, FHA Insured Mortgage Revenue Bonds, 1988, 8.000%, 2/15/28 No Opt. Call AAA 102,392 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series B: 1,020,000 7.600%, 2/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A-*** 1,144,379 1,010,000 7.600%, 8/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A-*** 1,133,159 5,970,000 7.625%, 8/15/17 (Pre-refunded to 8/15/01) 8/01 at 102 A-*** 6,701,862 New York Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series D: 5,380,000 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A-*** 6,077,571 40,000 7.400%, 2/15/18 2/02 at 102 A- 44,545 New York Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series B: 595,000 7.600%, 2/15/06 8/01 at 102 A- 659,058 580,000 7.600%, 8/15/06 8/01 at 102 A- 642,443 1,980,000 7.625%, 8/15/17 8/01 at 102 A- 2,196,137 12,940,000 New York State Urban Development Corporation, 1996 Corporate Purpose Senior Lien Bonds, 5.500%, 7/01/26 7/06 at 102 AAA 13,516,089 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) 1/01 at 102 Aaa 6,599,400 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.1% 5,000,000 North Carolina Medical Care Commission Health Care Revenue Bonds (Novant Health Project), Series 1998B, 5.000%, 10/01/28 10/08 at 101 AAA 4,927,250 18,555,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Refunding Series 1993 B, 5.500%, 1/01/17 1/03 at 100 AAA 19,014,607 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.5% 1,295,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest Ohio Bond Fund), Series 1989C, 8.400%, 11/15/09 (Alternative Minimum Tax) 11/00 at 102 N/R 1,359,387 2,235,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest Ohio Bond Fund), Series 1989D, 8.500%, 11/15/00 (Alternative Minimum Tax) 11/98 at 100 N/R 2,243,091 320,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest Ohio Bond Fund), Series 1990D, 8.500%, 5/15/00 (Alternative Minimum Tax) No Opt. Call N/R 329,008 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 4.2% 9,250,000 Oklahoma County Home Finance Authority (Oklahoma County, Oklahoma), Single Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 7/01 at 102 Aaa 9,834,508 21,025,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) 6/01 at 102 Baa2 22,806,028 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.7% 2,000,000 Philadelphia Authority for Industrial Development, Airport Revenue Bonds, Series 1998A (Philadelphia Airport System Project), 5.000%, 7/01/23 (Alternative Minimum Tax) 7/08 at 101 AAA 1,943,260 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) 8/01 at 100 AAA 10,886,000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ 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 4/03 at 102 Aa2 $5,318,850 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 2.0% 7,490,000 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 (Pre-refunded to 10/15/14) (Alternative Minimum Tax) 10/14 at 100 AAA 9,992,109 5,000,000 South Dakota Housing Development Authority, Homeownership Mortgage Bonds, 1996 Series D, 6.300%, 5/01/27 (Alternative Minimum Tax) 11/06 at 102 AAA 5,392,400 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.4% 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 (Pre-refunded to 5/15/02) 5/02 at 102 AAA 7,937,668 5,500,000 The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 1998A, 4.500%, 9/01/08 No Opt. Call AAA 5,598,230 4,865,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue V, 7.650%, 7/01/22 (Alternative Minimum Tax) 7/01 at 102 AA 5,085,725 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.8% 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) 1/99 at 102 BBB+ 6,649,452 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) 2/00 at 102 BBB+ 9,116,422 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 1/01 at 102 AAA 3,756,655 9,450,000 El Paso Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1991A, 8.750%, 10/01/11 4/01 at 103 A2 10,481,846 2,600,000 The Harrison County Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1991, 8.875%, 12/01/11 12/01 at 103 A1 2,764,424 5,000,000 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, Series 1998B, 5.000%, 7/01/25 (Alternative Minimum Tax) (WI) 7/08 at 100 AAA 4,821,700 7,000,000 Matagorda County Navigation District Number One (Texas), Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1997, 5.125%, 11/01/28 (Alternative Minimum Tax) (WI, settling on 11/24/98) No Opt. Call AAA 7,000,000 2,395,000 Panhandle Regional Housing Finance Corporation, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1991A, 7.500%, 5/01/24 (Alternative Minimum Tax) 5/01 at 100 AAA 2,482,944 4,560,000 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) 4/04 at 103 AAA 4,918,690 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 4.0% 13,650,000 Intermountain Power Agency, Power Supply Revenue Refunding Bonds, 1993 Series A, 5.500%, 7/01/20 7/03 at 102 AAA 14,256,197 16,550,000 Utah County, Utah, Hospital Revenue Bonds, Series 1997 (IHC Health Services, Inc.), 5.250%, 8/15/26 8/07 at 101 AAA 16,643,011 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 10.1% Municipality of Metropolitan Seattle, Washington, Sewer Refunding Revenue Bonds, Series Z: 2,160,000 5.450%, 1/01/16 1/03 at 102 AAA 2,236,745 3,095,000 5.450%, 1/01/17 1/03 at 102 AAA 3,198,280 2,490,000 5.450%, 1/01/19 1/03 at 102 AAA 2,559,969 1,800,000 5.450%, 1/01/20 1/03 at 102 AAA 1,850,580 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (CONTINUED) $ 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) 1/00 at 102 AAA $4,258,040 10,000,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue Bonds, Series 1997A, 5.125%, 7/01/16 7/07 at 102 AAA 10,081,100 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue Bonds, Series 1992A: 7,880,000 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 Aa1*** 8,690,773 2,130,000 6.250%, 7/01/12 7/02 at 102 Aa1 2,314,628 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) 7/00 at 102 AAA 2,163,940 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) 7/00 at 102 Aaa 5,377,550 5,000,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/11 7/04 at 102 Aa1 5,148,350 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) 1/00 at 102 AAA 25,572,652 3,935,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15 7/03 at 102 Aa1 4,020,901 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.8% 11,080,000 Wisconsin Center District, Junior Dedicated Tax Revenue Bonds, Series 1996B, 5.750%, 12/15/27 12/06 at 101 A 11,778,151 2,100,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds (Wausau Hospitals, Inc. Project), Series 1991B, 6.700%, 8/15/20 (Pre-refunded to 2/15/01) 2/01 at 102 AAA 2,280,763 - ------------------------------------------------------------------------------------------------------------------------------------ $ 738,035,000 Total Investments - (cost $702,670,022) - 99.6% 767,029,951 =============----------------------------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.5% $ 3,500,000 Development Authority of Monroe County (Georgia), ============= Pollution Control Revenue Bonds (Georgia Power Company Plant, Scherer Project), First Series 1995, Variable Rate Demand Bonds, 3.700%, 7/01/25+ VMIG-1 3,500,000 - ------------------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - (0.1%) (755,545) - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $769,774,406 ==================================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. + 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. (WI) Security purchased on a when-issued basis (note 1). N/R Investment is not rated. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS Nuveen Quality Income Municipal Fund, Inc. (NQU) OCTOBER 31, 1998
PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.1% $ 8,180,000 Alabama Drinking Water Finance Authority, Revolving Fund Loan Bonds, Series 1998 A, 4.850%, 8/15/22 9/08 at 100 AAA $ 7,948,833 6,500,000 The Governmental Utility Services Corporation of the City of Bessemer (Alabama), Water Supply Revenue Bonds, Series 1998, 5.200%, 6/01/24 6/08 at 102 AAA 6,587,295 17,000,000 The Industrial Development Board of the Town of Courtland, Pollution Control Refunding Revenue Bonds (Champion International Corporation Project), Series 1995, 6.150%, 6/01/19 6/05 at 102 Baa1 17,943,500 6,480,000 The Industrial Development Board of the Town of Courtland (Alabama), Solid Waste Disposal Revenue Bonds (Champion International Corporation Project), Refunding Series 1998A, 5.700%, 10/01/28 (Alternative Minimum Tax) 10/08 at 102 Baa1 6,465,809 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 2.0% 1,665,000 Alaska Housing Finance Corporation, Collateralized Bonds, 1991 First Series (Veterans Mortgage Program), Issue A-1, 7.125%, 12/01/30 6/01 at 102 AAA 1,749,982 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) 12/02 at 102 Aa2*** 7,579,170 14,590,000 Alaska State Housing Finance Corporation, Governmental Purpose Bonds, 1995 Series A, 5.875%, 12/01/30 12/05 at 102 AAA 15,381,653 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.5% 5,375,000 Yuma Regional Medical Center on behalf of Hospital District No. 1 of Yuma County, Arizona, Hospital Revenue Improvement and Refunding Bonds (Yuma Regional Medical Center Project), Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 N/R*** 6,248,330 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.1% 2,915,000 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 8/01 at 103 AA 3,099,549 5,990,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program), 6.700%, 7/01/27 (Alternative Minimum Tax) 7/05 at 102 AAA 6,487,110 1,690,000 Little River County, Arkansas, Refunding Revenue Bonds (Georgia-Pacific Corporation Project), Series 1998, 5.600%, 10/01/26 (Alternative Minimum Tax) 10/07 at 102 Baa2 1,694,022 2,500,000 Board of Trustees of the University of Arkansas, Parking System Revenue Construction and Refunding Bonds (UAMS Campus), Series 1998, 5.050%, 7/01/19 7/08 at 100 AAA 2,516,000 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 9.7% 10,580,000 Brea Public Financing Authority (Orange County, California), 1991 Tax Allocation Revenue Bonds, Series A (Redevelopment Project AB), 7.000%, 8/01/15 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 11,756,602 4,420,000 Brea Public Financing Authority, Tax Allocation, 7.000%, 8/01/15 8/01 at 102 AAA 4,861,425 3,855,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1991 Series G, 7.050%, 8/01/27 (Alternative Minimum Tax) 8/01 at 102 Aa2 4,079,785 5,860,000 California Housing Finance Agency, Multifamily Housing Revenue Bonds III, 1998 Series A, 5.450%, 8/01/28 (Alternative Minimum Tax) 8/08 at 102 AAA 6,007,848 3,000,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 5/03 at 102 A 3,101,400 5,000,000 State of California, Veterans General Obligation Bonds, Series BH, 5.600%, 12/01/32 (Alternative Minimum Tax) 12/03 at 102 Aa3 5,161,850 9,250,000 State of California, Veterans General Obligation Bonds, Series BL, 5.300%, 12/01/12 (Alternative Minimum Tax) 12/08 at 101 Aa3 9,444,065 10,500,000 State of California, General Obligation Bonds, 5.000%, 2/01/21 2/08 at 101 Aa3 10,492,230 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (CONTINUED) $ 10,000,000 State of California, Veterans General Obligation Bonds, Series BN (Non-AMT), 5.450%, 12/01/28 12/03 at 101 Aa3 $10,191,100 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 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 3,958,325 17,000,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department of Corrections), 1994 Series A (California State Prison-Monterey County (Soledad II)), 7.000%, 11/01/19 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa 20,252,780 2,500,000 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 7/00 at 100 BBB 2,600,950 3,000,000 Department of Water and Power of the City of Los Angeles, California, Water Works Revenue Bonds, Issue of 1992, 6.500%, 4/15/32 4/02 at 102 AA 3,313,320 3,395,000 City of Norco Refunding Certificates of Participation, Series 1998 (Sewer System and Water System Improvement Project), 5.125%, 10/01/28 10/08 at 102 AAA 3,425,012 6,700,000 County of Orange, California, 1996 Recovery Certificates of Participation, Series A, 6.000%, 7/01/26 7/06 at 102 AAA 7,521,956 2,000,000 City of Redwood City Public Financing Authority, 1991 Local Agency Revenue Bonds, Series B, 7.250%, 7/15/11 (Pre-refunded to 7/15/01) 7/01 at 102 A-*** 2,230,840 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 9/01 at 102 A+ 9,840,652 3,235,000 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) 3/01 at 102 AAA 3,412,407 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.0% City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1990A: 8,765,000 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 Baa1 9,636,767 1,505,000 8.000%, 11/15/25 (Pre-refunded to 11/15/00) (Alternative Minimum Tax) 11/00 at 102 Aaa 1,665,975 15,910,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 Baa1 17,305,784 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 3,425,000 8.750%, 11/15/23 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 102 Aaa 3,983,755 9,485,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Baa1 10,814,987 1,100,000 8.000%, 11/15/25 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 100 Aaa 1,236,213 3,040,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 3,343,301 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 3,165,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Baa1 3,518,657 1,025,000 7.000%, 11/15/25 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 100 Aaa 1,122,990 3,825,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 4,104,569 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) 9/01 at 100 N/R*** 5,730,814 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.2% 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) 2/01 at 102 AA- 5,686,013 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) 2/01 at 102 AA- 9,187,728 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.0% Clayton County Hospital Authority, Revenue Anticipation Certificates (Southern Regional Medical Center Project), Georgia, Series 1991: 2,900,000 6.500%, 8/01/10 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 3,171,063 4,500,000 7.000%, 8/01/13 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 4,977,810 15,900,000 The Fulton-De Kalb Hospital Authority, Georgia, Revenue Certificates, Series 1991 (Grady Memorial Hospital), 6.900%, 1/01/20 (Pre-refunded to 1/01/01) 1/01 at 102 AAA 17,285,526 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.1% $ 1,000,000 Idaho Health Facilities Authority, Hospital Revenue Bonds (Idaho Elks Rehabilitation Hospital Project), Series 1998, 5.450%, 7/15/23 7/08 at 101 BBB $ 1,006,800 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 9.6% 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) 5/00 at 102 AAA 6,425,640 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) 5/01 at 102 AAA 10,991,000 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998B-1: 9,400,000 0.000%, 12/01/14 No Opt. Call AAA 4,240,716 4,400,000 0.000%, 12/01/15 No Opt. Call AAA 1,873,476 6,405,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility Revenue Bonds (United Air Lines, Inc. Project), Series 1984B, 8.850%, 5/01/18 11/00 at 103 Baa2 7,091,680 24,430,000 The County of Cook, Illinois, General Obligation Bonds, Series 1991, 6.750%, 11/01/18 (Pre-refunded to 11/01/01) 11/01 at 102 AAA 27,042,300 Illinois Development Finance Authority, Multi-family Housing Revenue Bonds, Series 1992 (Town and Garden Apartments Project): 5,570,000 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 BBB+ 6,090,851 1,150,000 7.200%, 9/01/08 (Alternative Minimum Tax) 3/02 at 102 BBB+ 1,236,676 11,000,000 Illinois Health Facilities Authority, Hospital Revenue Bonds, Series 1993-A (Hinsdale Hospital), 7.000%, 11/15/19 11/03 at 102 AAA 12,815,990 2,800,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 9/02 at 102 A 2,972,676 5,265,000 Illinois Health Facilities Authority (Rockford Memorial Hospital), Revenue Refunding Bonds, Series 1991A, 6.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 100 AAA 5,596,011 14,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1991 (Northwestern Memorial Hospital), 6.750%, 8/15/11 8/01 at 102 AA 15,832,260 3,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1991 (Sherman Hospital Project), 6.750%, 8/01/21 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 3,299,070 3,590,000 Joliet Regional Port District Airport Facilities, Revenue Bonds, Lewis University Airport, Series 1997A, 7.250%, 7/01/18 (Alternative Minimum Tax) 7/07 at 103 N/R 3,846,900 10,575,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992A, 6.125%, 6/01/22 6/02 at 100 AAA 11,254,761 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.3% 5,905,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Series 1992 (Community Hospitals Projects), 7.000%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 6,514,632 4,000,000 The Indianapolis Local Public Improvement Bond Bank, Series 1992 D Bonds, 6.500%, 2/01/22 No Opt. Call AA 4,007,840 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 12/04 at 102 Aa2 5,769,828 - ------------------------------------------------------------------------------------------------------------------------------------ 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 (Pre-refunded to 11/01/01) 11/01 at 101 AAA 4,940,730 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.6% City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991B (Shawnee Mission Medical Center, Inc. Project): 7,380,000 7.250%, 9/01/11 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 8,213,423 10,000,000 7.250%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 11,129,300 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 2.8% $ 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), Series 1991-G, 6.800%, 3/01/19 (Pre-refunded to 3/01/02) 3/02 at 102 AAA $11,156,300 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) 9/01 at 102 N/R*** 3,324,930 10,000,000 Kentucky Economic Development Finance Authority, Revenue Refunding and Improvement Bonds (Catholic Health Initiatives), Series 1998A, 5.000%, 12/01/27 6/08 at 101 AA 9,737,900 10,085,000 Kentucky Housing Corporation, Housing Revenue Bonds (Federally Insured or Guaranteed Mortgage Loans), 1995 Series B, 6.625%, 7/01/26 (Alternative Minimum Tax) 1/05 at 102 AAA 10,881,211 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.7% 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) 4/01 at 102 Aa2 13,926,396 3,985,000 7.450%, 4/01/32 (Alternative Minimum Tax) 4/01 at 102 Aa2 4,198,716 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 5/01 at 102 Aa2 3,573,172 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 6.1% 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) 3/01 at 102 Aaa 11,190,036 19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 21,449,848 15,000,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 7/01 at 103 N/R 16,694,250 3,300,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds (SEMASS Project), Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 7/01 at 103 N/R 3,672,801 6,000,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Refunding Bonds (Ogden Haverhill Project) Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) 12/08 at 102 BBB 6,021,120 17,500,000 Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37 1/07 at 102 AAA 17,105,025 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.3% 7,000,000 City of Grand Rapids, Michigan, Water Supply System Refunding Revenue Bonds, Series 1991, 6.250%, 1/01/11 1/01 at 102 AAA 7,471,100 5,000,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) 8/01 at 102 Aaa 5,600,500 8,500,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) 12/02 at 102 BBB+ 9,192,495 16,875,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue Bonds (The Detroit Edison Company Pollution Control Bonds Project), Collateralized Series 1991DD, 6.875%, 12/01/21 12/01 at 102 AAA 18,531,450 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.0% 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 (Mortgage Backed Program), Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) No Opt. Call AAA 5,212,286 4,440,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1994 Series J, 6.950%, 7/01/26 (Alternative Minimum Tax) 1/04 at 102 AA 4,772,112 2,440,000 Washington County Housing and Redevelopment Authority, Multifamily Housing Revenue Bonds (FHA Insured Mortgage Loan-Cottages Phase III Project), Series 1991., 7.650%, 8/01/32 (Alternative Minimum Tax) 8/01 at 102 AAA 2,603,065 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.6% 3,330,000 Canton Housing Development Corporation, 1990 Multifamily Mortgage Revenue Refunding Bonds (Canton Estates Apartments Project - FHA Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/24 No Opt. Call AAA 4,229,433 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI (CONTINUED) $ 1,205,000 Charter Mortgage Corporation, 1990 Multifamily Mortgage Revenue Refunding Bonds (Church Garden Apartments - FHA Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/21 8/01 at 100 AAA $ 1,512,167 1,325,000 Pearl Housing Development Corporation, 1990 Multifamily Mortgage Revenue Refunding Bonds (Rose Garden Apartments Project - FHA Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/22 2/01 at 100 AAA 1,370,779 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.7% 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 7/02 at 102 Baa1 6,094,084 5,605,000 7.000%, 7/01/22 7/02 at 102 Baa1 6,067,637 Health and Educational Facilities Authority of the State of Missouri, Health Facilities Refunding and Improvement Revenue Bonds (Heartland Health Systems Project), Series 1989: 2,105,000 7.625%, 10/01/00 10/99 at 102 1/2 BBB+ 2,238,836 6,500,000 8.125%, 10/01/10 10/99 at 102 1/2 BBB+ 6,942,455 - ------------------------------------------------------------------------------------------------------------------------------------ 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 8/01 at 102 AAA 7,665,840 - ------------------------------------------------------------------------------------------------------------------------------------ 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) 3/05 at 101 1/2 AAA 11,774,620 8,000,000 Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) 3/05 at 101 1/2 AAA 8,481,920 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.3% 3,560,000 New Hampshire Housing Finance Authority, Single Family Residential Mortgage Bonds, 1991 Series C, 7.100%, 1/01/23 7/01 at 102 Aa3 3,754,483 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.0% 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 12/01 at 102 B2 13,053,950 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 14.3% 1,495,000 Dutchess County Resource Recovery Agency (New York), Solid Waste System Revenue Bonds, Tax Exempt Forward, Series 1999A, 5.450%, 1/01/14 (WI) 1/10 at 102 AAA 1,535,709 2,155,000 N.F. Housing and Commercial Rehabilitation Corporation, 1992 Multifamily Mortgage Revenue Refunding Bonds (FHA Insured Mortgage - Section 8 Assisted Project), 7.350%, 8/01/23 No Opt. Call AA 2,590,763 6,000,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series H, 6.125%, 8/01/25 8/07 at 101 A- 6,595,020 5,475,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series B, 7.250%, 8/15/19 (Pre-refunded to 8/15/04) 8/04 at 101 Aaa 6,462,526 The City of New York, General Obligation Bonds, Fiscal 1996 Series J (Subseries J-1): 1,670,000 6.000%, 2/15/24 (Pre-refunded to 2/15/06) 2/06 at 101 1/2 A-*** 1,895,250 9,330,000 6.000%, 2/15/24 2/06 at 101 1/2 A- 10,083,304 6,700,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series F, 6.625%, 2/15/25 (Pre-refunded to 2/15/05) 2/05 at 101 A-*** 7,735,619 5,660,000 The City of New York (New York), General Obligation Bonds, Fiscal 1993 Series B, 6.750%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 101 1/2 A-*** 6,357,765 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 6/05 at 101 AAA 15,407,786 Dormitory Authority of the State of New York, State University Educational Facilities Revenue Bonds, Series 1990A: 13,000,000 7.400%, 5/15/01 5/00 at 102 A- 13,953,030 11,750,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 12,724,545 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (CONTINUED) $ 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 (Pre-refunded to 8/01/01) 8/01 at 102 AA*** $ 9,295,445 Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue Bonds, Series 1997A: 13,060,000 5.750%, 8/15/22 2/07 at 102 A- 14,007,895 5,000,000 5.750%, 2/15/27 2/07 at 102 A- 5,367,100 4,550,000 Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue Bonds, Series 1997B, 5.500%, 8/15/17 2/07 at 102 A- 4,751,429 21,075,000 New York Local Government Assistance Corporation, New York, Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 AAA 23,356,790 8,000,000 New York State Medical Care Facilities Finance Agency, New York Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A, 6.500%, 8/15/29 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 9,239,040 5,000,000 New York State Medical Care Facilities Finance Agency, Hospital Medical Center Secured Hospital Revenue Bonds, Series 1995-A, 6.850%, 2/15/17 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 5,869,700 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 8/05 at 102 AA 4,812,764 4,250,000 6.300%, 8/15/25 8/05 at 102 AA 4,675,680 8,025,000 New York State Thruway Authority, General Revenue Bonds, Series C, 6.000%, 1/01/25 (Pre-refunded to 1/01/05) 1/05 at 102 AAA 9,045,860 3,325,000 Penfield-Crown Oak Housing Development Corporation, 1991 Multifamily Mortgage Revenue Refunding Bonds (Crown Oak Estates - FHA Insured Mortgage Section 8 Assisted Project), Series A, 7.350%, 8/01/23 2/03 at 100 AAA 3,549,870 - ------------------------------------------------------------------------------------------------------------------------------------ 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 1/02 at 102 Baa1 11,269,020 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.0% 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 1/02 at 102 BBB- 5,197,680 6,330,000 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) 3/05 at 102 AAA 6,834,691 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 4.5% 9,360,000 Oklahoma County Home Finance Authority (Oklahoma County, Oklahoma), Single Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 7/01 at 102 Aaa 9,951,458 17,510,000 Pottawatomie County Home Finance Authority (Oklahoma), Municipal Refunding Collateralized Mortgage Obligations, Series 1991A, 8.625%, 7/01/10 No Opt. Call AAA 24,188,314 10,000,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable Rate Revenue Obligations, 7.375%, 12/01/20 (Alternative Minimum Tax) 12/00 at 102 Baa2 10,704,500 10,100,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) 6/01 at 102 Baa2 10,955,571 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.5% Falls Township Hospital Authority, Refunding Revenue Bonds, The Delaware Valley Medical Center Project (FHA Insured Mortgage), Series 1992: 3,215,000 6.900%, 8/01/11 8/02 at 102 AAA 3,436,256 3,000,000 7.000%, 8/01/22 8/02 at 102 AAA 3,336,030 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.4% 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 4/00 at 100 Aa2 5,373,932 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ 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 (Pre-refunded to 10/01/01) 10/01 at 102 AAA $ 7,186,205 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.9% 10,300,000 Metropolitan Nashville Airport Authority (Tennessee), Airport Improvement Revenue Bonds, Refunding Series 1991C, 6.625%, 7/01/07 7/01 at 102 AAA 11,225,867 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.7% 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) 12/00 at 102 Baa2 15,398,084 Arlington Independent School District (Tarrant County, Texas), Unlimited Tax Refunding and Improvement Bonds, Series 1995: 11,635,000 0.000%, 2/15/11 2/05 at 71 15/16 Aa 6,284,413 13,985,000 0.000%, 2/15/14 2/05 at 58 11/16 Aa 6,171,581 6,500,000 Bell County Health Facilities Development Corporation, Retirement Facility Revenue Bonds (Buckner Retirement Services, Inc. Obligated Group Project), Series 1998, 5.250%, 11/15/19 11/08 at 101 A- 6,438,575 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) 11/00 at 102 Baa2 5,996,200 7,985,000 Fort Worth Housing Finance Corporation, Home Mortgage Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11 10/01 at 103 Aa 8,587,548 7,815,000 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, Series 1991B, 6.625%, 7/01/22 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 8,556,331 17,345,000 City of Houston, Texas, Water and Sewer System, Junior Lien Revenue Refunding Bonds, Series 1991C, 6.375%, 12/01/17 (Pre-refunded to 12/01/01) 12/01 at 102 AAA 18,822,794 7,650,000 Port of Corpus Christi Authority of Nueces County, Texas, Revenue Refunding Bonds, Series 1992 (Union Pacific Corporation Project), 5.350%, 11/01/10 5/06 at 101 BBB- 7,718,697 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.5% 5,800,000 Carbon County, Utah, Solid Waste Disposal Refunding Revenue Bonds (Laidlaw Inc./ECDC Environmental, L.C. Project), 1995 Series A, 7.500%, 2/01/10 (Alternative Minimum Tax) 2/05 at 102 BBB+ 6,617,916 - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.7% Vermont Housing Finance Agency, Single Family Housing Bonds, Series 2: 6,405,000 7.300%, 5/01/25 (Alternative Minimum Tax) 11/01 at 102 A+ 6,788,724 1,595,000 6.875%, 5/01/25 (Alternative Minimum Tax) 11/01 at 102 A+ 1,676,616 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.0% 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) 7/00 at 100 AAA 4,050,761 8,320,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 Series A, 7.150%, 1/01/33 1/02 at 102 AA+ 8,755,053 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 7.5% 3,010,000 Camas School District No. 117, Clark County, Washington, Unlimited Tax General Obligation Bonds, Series 1995, 6.000%, 12/01/14 (Pre-refunded to 12/01/05) 12/05 at 100 AAA 3,385,076 4,185,000 Public Utility District No. 1 of Douglas County, Washington, Wells Hydro- Electric Revenue Bonds, Series of 1986, 8.750%, 9/01/18 9/06 at 106 A+ 5,517,086 12,415,000 Federal Way School District No. 210, King County, Washington, Unlimited Tax General Obligation Bonds, Series 1991, 6.950%, 12/01/11 (Pre-refunded to 12/01/03) 12/03 at 100 A1*** 14,194,690 1,675,000 Spokane Downtown Foundation, Parking Revenue Bonds, Series 1998 (River Park Square Project), 5.600%, 8/01/19 8/08 at 102 BBB- 1,687,043 4,000,000 North Thurston School District No. 3, Thurston County, Washington, Unlimited Tax General Obligation Bonds, Series 1992, 6.500%, 12/01/09 12/02 at 100 A 4,367,360 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (CONTINUED) $ 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) 1/01 at 102 A*** $ 5,187,380 18,000,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28 (WI) 8/13 at 102 AAA 17,416,620 14,850,000 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) 7/00 at 102 Aaa 15,971,324 4,000,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/11 7/04 at 102 Aa1 4,118,680 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) 1/00 at 102 AAA 15,435,394 2,500,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18 7/08 at 102 Aa1 2,481,449 4,175,000 Washington State University, Recreation Center Revenue Bonds, Series 1998, 5.000%, 4/01/28 4/08 at 101 AAA 4,108,450 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.6% 7,000,000 Wisconsin Housing and Economic Development Authority, Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 1/02 at 102 A1 7,565,109 10,820,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Series 1991-B (Novus Health Group), 6.750%, 12/15/20 (Pre-refunded to 12/15/01) 12/01 at 102 AAA 12,004,032 - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.6% 4,500,000 Wyoming Community Development Authority, Single Family Mortgage Bonds Series G 1988 (Federally Insured or Guaranteed Mortgage Loans), 7.250%, 6/01/21 (Alternative Minimum Tax) 11/01 at 103 AA 4,824,539 2,390,000 Wyoming Community Development Authority, Single Family Mortgage Bonds, 1991 Series B, 7.400%, 6/01/31 6/01 at 102 AA 2,526,396 - ------------------------------------------------------------------------------------------------------------------------------------ $1,174,525,000 Total Investments - (cost $1,148,028,013) - 100.0% 1,251,445,564 ==============---------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.0% (37,314) - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $1,251,408,250 ==================================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. (WI) Security purchased on a when-issued basis (note 1). N/R Investment is not rated. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS Nuveen Premier Municipal Income Fund, Inc. (NPF) OCTOBER 31, 1998
PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** 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) No Opt. Call AAA $ 4,692,668 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.3% 1,065,000 Municipality of Anchorage, Alaska, Home Mortgage Revenue Bonds (Mortgage-Backed Securities Program), 1992, 8.000%, 3/01/09 3/02 at 102 AAA 1,143,917 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 5.1% 5,500,000 Arizona Educational Loan Marketing Corporation, 1992 Educational Loan Revenue Bonds, Series B, 6.950%, 3/01/01 (Alternative Minimum Tax) No Opt. Call Aa2 5,839,845 3,650,000 Gilbert Unified School District No. 41 of Maricopa County, Arizona, School Improvement Bonds, Project of 1993, Series C, 6.100%, 7/01/14 (Pre-refunded to 7/01/04) 7/04 at 100 AAA 4,057,632 11,540,000 Yuma Regional Medical Center on behalf of Hospital District No. 1 of Yuma County, Arizona, Hospital Revenue Improvement and Refunding Bonds (Yuma Regional Medical Center Project), Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 N/R*** 13,415,019 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.2% 1,375,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1994 Series C (Mortgage-Backed Securities Program), 6.600%, 7/01/17 7/05 at 102 AAA 1,497,650 1,685,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program), 6.550%, 7/01/18 (Alternative Minimum Tax) 7/05 at 102 AAA 1,816,767 255,937 Drew County (Arkansas), Public Facilities Board, Single Family Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 8/01/11 8/03 at 103 Aaa 277,545 1,310,000 Residential Housing Facilities Board of Greene County, Arkansas, Subordinated Mortgage Revenue 1/02 at 103 Aa 1,399,080 Bonds, Series 1991-1, 7.250%, 1/01/10 418,756 Public Facilities Board of Stuttgart, Arkansas, Single Family Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11 9/03 at 103 Aaa 459,074 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 2.8% 33,000,000 Foothill/Eastern Transportation Corridor Agency (California), Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/17 No Opt. Call Baa 12,779,250 - ------------------------------------------------------------------------------------------------------------------------------------ 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 No Opt. Call BBB 1,578,765 1,250,000 6.875%, 2/15/12 (Pre-refunded to 2/15/02) 2/02 at 102 BBB*** 1,389,663 3,040,000 7.100%, 2/15/22 (Pre-refunded to 2/15/02) 2/02 at 102 BBB*** 3,399,723 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 1.7% 4,960,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1997 Series A, Subseries A-4, 6.200%, 11/15/22 (Alternative Minimum Tax) 5/06 at 102 AA 5,321,534 2,000,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18 5/06 at 102 AA 2,157,900 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.5% 2,000,000 District of Columbia, Hospital Revenue Refunding Bonds (Washington Hospital Center Issue), Series 1992A, 7.000%, 8/15/05 8/02 at 102 A3 2,174,640 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA (CONTINUED) District of Columbia Housing Finance Agency, Multifamily Housing Refunding Revenue Bonds, Series 1992B (FHA Insured Mortgage Loans - Section 8 Assisted Project): $ 920,000 7.200%, 9/01/12 9/02 at 102 Aa $ 982,670 3,505,000 7.250%, 3/01/24 9/02 at 102 Aa 3,729,741 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.9% 4,000,000 Dade County, Florida, Aviation Bonds, Series 1996A, 5.750%, 10/01/18 (Alternative Minimum Tax) 10/06 at 102 AAA 4,256,320 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.3% 8,000,000 George L. Smith II World Congress Center Authority, Refunding Revenue Bonds (Domed Stadium Project), Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax) (WI, settling on 4/04/00) 7/10 at 101 AAA 7,980,320 2,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series EE, 7.250%, 1/01/24 No Opt. Call AAA 2,662,960 - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.3% 1,360,000 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 1996 Series E, 6.350%, 7/01/14 (Alternative Minimum Tax) 7/06 at 102 Aa 1,476,103 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 16.2% 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) 7/02 at 101 1/2 AAA 5,044,365 10,000,000 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A, 0.000%, 12/01/20 No Opt. Call AAA 3,225,000 1,100,000 Public Building Commission of Chicago (Illinois), Building Revenue Bonds, Series B of 1990 (Board of Education of the City of Chicago), 7.000%, 1/01/15 No Opt. Call AAA 1,309,242 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) 12/04 at 102 N/R*** 9,708,088 7,695,000 Illinois Development Finance Authority, Multi-Family Housing Revenue Bonds, Series 1992 (Town and Garden Apartments Project), 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 BBB+ 8,414,559 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 1/02 at 105 AAA 663,558 5,270,000 7.650%, 12/31/31 1/02 at 105 AAA 5,771,019 7,400,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 (Trinity Medical Center), 7.000%, 7/01/12 7/02 at 102 BBB 8,010,796 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1992A (Evangelical Hospitals Corporation): 125,000 6.750%, 4/15/12 (Pre-refunded to 4/15/02) 4/02 at 102 AA-*** 139,318 740,000 6.750%, 4/15/12 No Opt. Call AA- 893,735 4,715,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 9/02 at 102 A 5,005,774 750,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds (Morningside North Development), Series 1992D, 6.600%, 1/01/07 (Pre-refunded to 1/01/03) 1/03 at 102 A*** 838,560 6,390,000 State of Illinois, Build Illinois Bonds (Sales Tax Revenue Bonds), Series S, 6.800%, 6/15/12 (Pre-refunded to 6/15/00) 6/00 at 102 AAA 6,849,505 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 7/02 at 102 AAA 2,146,060 2,835,000 Village of Sugar Grove, Kane County, Illinois, Waterworks and Sewerage Refunding Revenue Bonds, Series 1992, 7.500%, 5/01/17 5/02 at 102 N/R 3,104,495 5,625,000 Town of Wood River, Wood River Township Hospital, Madison County, Illinois, General Obligation Bonds (Alternate Revenue Source), Series 1993, 6.625%, 2/01/14 2/04 at 102 BBB 6,176,925 5,570,000 Town of Wood River, Wood River Township Hospital, Madison County, Illinois, General Obligation Tort Immunity Bonds, Series 1993, 6.500%, 2/01/14 2/04 at 102 BBB 6,068,292 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ 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) 6/99 at 102 A+ $ 2,066,460 2,860,000 PHM Elementary/Middle School Building Corporation (St. Joseph County, Indiana), First Mortgage Bonds, Series 1994, 6.300%, 1/15/09 No Opt. Call A 3,298,981 - ------------------------------------------------------------------------------------------------------------------------------------ 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) 12/02 at 102 Aaa 1,723,318 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.7% 2,815,000 City of Hutchinson, Kansas, Single Family Mortgage Revenue Refunding Bonds, Series 1992, 8.875%, 12/01/12 6/02 at 103 A 3,035,189 - ------------------------------------------------------------------------------------------------------------------------------------ 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) 7/02 at 102 N/R 5,373,450 - ------------------------------------------------------------------------------------------------------------------------------------ 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 9/05 at 103 AAA 1,457,676 - ------------------------------------------------------------------------------------------------------------------------------------ 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) No Opt. Call A 8,907,560 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.4% 6,000,000 Anne Arundel County, Maryland, Multifamily Housing Revenue Bonds (Woodside Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) No Opt. Call BBB 6,370,680 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 8.0% 40,000 Massachusetts Municipal Wholesale Electric Company, Power Supply System Revenue Bonds, 1987 Series A, 8.750%, 7/01/18 No Opt. Call BBB+ 46,102 2,450,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Deaconess Hospital Issue, Series D, 6.875%, 4/01/22 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 2,741,673 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 2/04 at 102 Aa 4,053,831 6,585,000 Massachusetts Health and Educational Facilities Authority, Catholic Health East Issue, Series 1998B, 5.000%, 11/18/28 5/08 at 102 AAA 6,449,481 9,120,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds (SEMASS Project), Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 7/01 at 103 N/R 10,150,286 2,000,000 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, 1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax) 7/07 at 101 AAA 2,053,940 9,780,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1992 Series A, 6.750%, 7/15/12 (Pre-refunded to 7/15/02) 7/02 at 102 AAA 10,987,145 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.6% 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) 3/02 at 102 BBB+*** 2,870,675 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 2.4% 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 10/04 at 102 N/R 10,732,800 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.7% 8,610,000 Mississippi Home Corporation, Residual Revenue Capital Appreciation Bonds, Series 1992-I, 0.000%, 9/15/16 3/04 at 41 21/32 Aaa 2,941,262 10/04 at 102 N/R 10,732,800 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.0% $ 4,710,000 Missouri State Health and Educational Facilities Authority, Revenue Bonds (SSM Health Care), Series 1998A, 5.000%, 6/01/22 6/08 at 101 AAA $ 4,629,742 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 3.9% 2,830,000 City of Grand Island, Nebraska, Electric System Revenue Bonds, 1977 Series, 6.100%, 9/01/12 No Opt. Call A+ 3,205,145 2,350,000 Nebraska Higher Education Loan Program Inc., Senior Subordinate Bonds, Series A-5B, 6.250%, 6/01/18 (Alternative Minimum Tax) No Opt. Call AAA 2,524,323 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) 2/02 at 101 1/2 AAA 12,021,392 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.3% 1,140,000 New Hampshire Municipal Bond Bank, Educational Institutions Division Revenue Bonds (1994 Coe-Brown Northwood Academy Project), 7.250%, 5/01/09 No Opt. Call N/R 1,253,863 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 0.7% 3,000,000 New Jersey Educational Facilities Authority, Revenue Bonds, Trenton State College Issue, Series 1996 A, 5.125%, 7/01/24 7/06 at 101 AAA 3,020,250 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 16.2% 3,500,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series B, 7.500%, 2/01/01 No Opt. Call A- 3,777,165 1,000,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series A, 7.000%, 8/01/04 No Opt. Call A- 1,146,370 The City of New York, General Obligation Bonds, Fiscal 1995 Series E: 450,000 6.500%, 8/01/02 No Opt. Call Aaa 494,118 1,100,000 6.500%, 8/01/02 No Opt. Call A- 1,199,066 3,080,000 6.600%, 8/01/04 No Opt. Call A- 3,472,300 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) 11/01 at 101 1/2 AAA 2,387,391 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) 8/02 at 101 1/2 AAA 2,230,940 4,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series J (Subseries J-1), 5.875%, 2/15/19 2/06 at 101 1/2 A- 4,287,440 The City of New York, General Obligation Bonds, Fiscal 1991 Series D, 3,850,000 9.500%, 8/01/02 (Pre-refunded to 8/01/01) 8/01 at 101 1/2 Aaa 4,491,872 150,000 9.500%, 8/01/02 8/01 at 101 1/2 A- 173,454 8,480,000 New York City (New York), Transitional Finance Authority, Future Tax Secured Bonds, Fiscal 1998 Series A, 5.125%, 8/15/21 8/07 at 101 AA 8,456,680 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) 7/00 at 102 Aaa 7,063,940 5,000,000 New York Local Government Assistance Corporation, New York, Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 AAA 5,541,350 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 8/02 at 102 AAA 6,408,300 4,840,000 New York State Medical Care Facilities Finance Agency, St. Luke's-Roosevelt Hospital Center, FHA-Insured Mortgage Revenue Bonds, 1993 Series A, 5.600%, 8/15/13 8/03 at 102 AAA 5,084,952 8,000,000 New York State Medical Care Facilities Finance Agency, Hospital Insured Mortgage Revenue Bonds, 1994 Series A Refunding, 5.375%, 2/15/25 2/04 at 102 AAA 8,158,720 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) 4/01 at 102 Aaa 9,364,882 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.5% 10,300,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Refunding Series 1993 B, 6.000%, 1/01/22 No Opt. Call AAA 11,803,594 2,130,000 North Carolina Housing Finance Agency, Multifamily Revenue Refunding Bonds (1992 Refunding Bond Resolution), Series B, 6.900%, 7/01/24 7/02 at 102 AA 2,284,638 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA (CONTINUED) $ 2,000,000 North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, Series 1-A (1998 Trust Agreement), 5.375%, 1/01/29 (Alternative Minimum Tax) 7/08 at 101 AA $ 2,033,620 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.6% 2,110,000 Cleveland-Rock Glen Housing Assistance Corporation, Mortgage Revenue Refunding Bonds, Series 1994A (FHA Insured Mortgage Loans - Section 8 Assisted Projects), 6.750%, 1/15/25 7/04 at 103 AAA 2,296,988 8,330,000 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) 9/99 at 102 AAA 8,569,821 860,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest Ohio Bond Fund), Series 1992A, 7.750%, 5/15/07 (Alternative Minimum Tax) 5/00 at 102 N/R 898,485 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.3% 1,230,000 State of Oregon, Housing and Community Services Department, Mortgage Revenue Bonds (Single-Family Mortgage Program), 1997 Series H, 5.650%, 7/01/28 (Alternative Minimum Tax) 7/07 at 101 1/2 Aa2 1,272,755 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.3% 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 8/02 at 102 AAA 2,224,020 975,000 Northampton County Hospital Authority (Pennsylvania), Hospital Revenue Bonds (Easton Hospital), Series A of 1992, 6.900%, 1/01/02 No Opt. Call BBB 1,023,204 7,585,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue Bonds, Tenth Series, 7.350%, 9/01/04 No Opt. Call AAA 8,620,277 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 8/02 at 102 A- 2,746,150 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 8/00 at 100 A- 4,902,877 - ------------------------------------------------------------------------------------------------------------------------------------ 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) No Opt. Call A 6,715,325 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 3.5% 9,500,000 Harris County (Texas), Health Facilities Development Corporation, Adjustable Convertible Extendible Securities (Greater Houston Pooled Health Care Loan Program), Series 1985B, 7.375%, 12/01/25 12/98 at 100 A1 9,532,395 4,225,345 General Services Commission (an Agency of the State of Texas), as Lessee, Participation Interests, 7.500%, 9/01/22 9/99 at 101 1/2 A 4,798,851 1,385,000 Victoria Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11 No Opt. Call Aaa 1,541,145 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.8% 1,095,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1996 Series C, 6.450%, 7/01/14 (Alternative Minimum Tax) 1/07 at 102 AA 1,175,986 2,250,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1997 Series F, 5.750%, 7/01/15 (Alternative Minimum Tax) 7/07 at 101 1/2 AA 2,315,070 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.9% 3,200,000 Suffolk Redevelopment and Housing Authority, Multifamily Housing Revenue Refunding Bonds, Series 1994 (Chase Heritage at Dulles Project), 7.000%, 7/01/24 7/02 at 104 Baa2 3,560,032 5,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 Series A, 7.100%, 1/01/22 1/02 at 102 AA+ 5,190,500 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 3.5% 9,500,000 State of Washington, General Obligation and General Obligation Refunding Bonds, Series 1992A and AT-6, 6.250%, 2/01/11 No Opt. Call AA+ 11,115,665 2,500,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12 2/02 at 102 AA- 2,727,175 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (CONTINUED) $ 2,000,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1990B, 7.375%, 7/01/04 7/00 at 102 Aa1 $ 2,142,200 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.4% 1,895,000 West Virginia Housing Development Fund, Housing Finance Bonds, 1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax) 5/02 at 102 AAA 1,977,035 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.2% 2,985,000 Silver Lake Sanitary District, Waushara County, Wisconsin, Sewer System Mortgage Revenue Bonds, 8.000%, 10/01/18 (Pre-refunded to 10/01/02) 10/02 at 100 N/R*** 3,450,362 5,950,000 Wisconsin Housing and Economic Development Authority, Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 1/02 at 102 A1 6,430,345 - ------------------------------------------------------------------------------------------------------------------------------------ $ 454,240,038 Total Investments - (cost $418,275,186) - 100.2% 454,860,756 =============----------------------------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.2% $ 1,200,000 County of Cuyahoga, Ohio, Hospital Revenue ============= Bonds (the Cleveland Clinic Foundation), Series 1997D, Variable Rate Demand Bonds, 3.700%, 1/02/26+ VMIG-1 1,200,000 - ------------------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - (0.4)% (1,912,227) - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $454,148,529 ==================================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. + 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. (WI) Security purchased on a when-issued basis (note 1). N/R Investment is not rated.
See accompanying notes to financial statements.
STATEMENT OF NET ASSETS OCTOBER 31, 1998 INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments in municipal securities, at market value (note 1) $802,549,491 $767,029,951 $1,251,445,564 $454,860,756 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value (note 1) 5,300,000 3,500,000 -- 1,200,000 Cash 140,986 388,483 310,452 25,737 Receivables: Interest 15,545,844 13,740,265 24,334,851 7,595,455 Investments sold 215,000 337,850 -- 169,622 Other assets 23,363 42,888 34,603 17,974 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 823,774,684 785,039,437 1,276,125,470 463,869,544 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable for investments purchased -- 11,833,506 18,894,700 7,669,520 Accrued expenses: Management fees (note 6) 437,708 410,901 659,148 245,906 Other 239,024 239,996 424,990 167,324 Preferred share dividends payable 96,384 95,006 140,480 34,096 Common share dividends payable 2,851,080 2,685,622 4,597,902 1,604,169 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 3,624,196 15,265,031 24,717,220 9,721,015 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets (note 7) $820,150,488 $769,774,406 $1,251,408,250 $454,148,529 ==================================================================================================================================== 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 35,638,508 33,781,410 53,776,630 19,927,567 ==================================================================================================================================== Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 16.00 $ 15.68 $ 15.83 $ 15.76 ==================================================================================================================================== See accompanying notes to financial statements.
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1998 INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME (NOTE 1) $49,663,351 $47,230,461 $77,857,732 $27,875,843 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees (note 6) 5,103,931 4,792,816 7,703,039 2,868,655 Preferred shares - auction fees 625,000 600,002 1,000,001 349,999 Preferred shares - dividend disbursing agent fees 40,000 40,000 48,154 19,998 Shareholders' servicing agent fees and expenses 91,871 82,150 135,463 48,129 Custodian's fees and expenses 106,506 101,965 149,046 73,942 Directors' fees and expenses (note 6) 7,556 7,086 11,567 4,189 Professional fees 21,034 20,845 22,351 19,688 Shareholders' reports - printing and mailing expenses 190,852 178,324 292,930 112,902 Stock exchange listing fees 32,445 32,657 48,410 24,262 Investor relations expense 67,314 62,626 102,072 37,228 Other expenses 44,021 39,253 61,502 26,028 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses 6,330,530 5,957,724 9,574,535 3,585,020 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 43,332,821 41,272,737 68,283,197 24,290,823 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (notes 1 and 4) (173,095) 1,614,188 2,914,470 90,877 Net change in unrealized appreciation or depreciation of investments 8,887,953 4,958,232 3,095,167 3,062,136 - ------------------------------------------------------------------------------------------------------------------------------------ Net gain from investments 8,714,858 6,572,420 6,009,637 3,153,013 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets from operations $52,047,679 $47,845,157 $74,292,834 $27,443,836 - ------------------------------------------------------------------------------------------------------------------------------------ See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS INVESTMENT QUALITY SELECT QUALITY - ------------------------------------------------------------------------------------------------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/98 10/31/97 10/31/98 10/31/97 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 43,332,821 $ 44,426,800 $ 41,272,737 $ 41,821,126 Net realized gain (loss) from investment transactions (notes 1 and 4) (173,095) 1,863,026 1,614,188 (260,112) Net change in unrealized appreciation or depreciation of investments 8,887,953 8,788,246 4,958,232 12,637,266 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets from operations 52,047,679 55,078,072 47,845,157 54,198,280 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1) From undistributed net investment income: Common shareholders (34,939,388) (35,722,144) (32,677,563) (33,652,304) Preferred shareholders (8,696,853) (8,784,807) (8,430,282) (8,525,310) From accumulated net realized gains from investment transactions: Common shareholders (369,064) -- -- -- Preferred shareholders (89,825) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (44,095,130) (44,506,951) (41,107,845) (42,177,614) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS (NOTE 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 2,861,357 416,095 3,267,092 2,690,547 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets 10,813,906 10,987,216 10,004,404 14,711,213 Net assets at beginning of year 809,336,582 798,349,366 759,770,002 745,058,789 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $820,150,488 $809,336,582 $769,774,406 $759,770,002 ==================================================================================================================================== Balance of undistributed net investment income at end of year $ 620,558 $ 923,978 $ 653,947 $ 489,055 ==================================================================================================================================== QUALITY INCOME PREMIER INCOME - ------------------------------------------------------------------------------------------------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/98 10/31/97 10/31/98 10/31/97 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 68,283,197 $ 68,818,095 $ 24,290,823 $ 24,649,131 Net realized gain (loss) from investment transactions (notes 1 and 4) 2,914,470 1,030,758 90,877 (33,540) Net change in unrealized appreciation or depreciation of investments 3,095,167 13,732,677 3,062,136 6,209,013 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets from operations 74,292,834 83,581,530 27,443,836 30,824,604 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1) From undistributed net investment income: Common shareholders (54,962,532) (54,531,750) (19,804,242) (20,325,882) Preferred shareholders (13,962,725) (14,032,699) (4,932,868) (4,752,424) From accumulated net realized gains from investment transactions: Common shareholders -- -- -- (766,737) Preferred shareholders -- -- -- (192,920) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (68,925,257) (68,564,449) (24,737,110) (26,037,963) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS (NOTE 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 7,504,802 3,855,955 2,635,126 1,866,897 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets 12,872,379 18,873,036 5,341,852 6,653,538 Net assets at beginning of year 1,238,535,871 1,219,662,835 448,806,677 442,153,139 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $1,251,408,250 $1,238,535,871 $454,148,529 $448,806,677 - ------------------------------------------------------------------------------------------------------------------------------------ Balance of undistributed net investment income at end of year $ 1,515,989 $ 2,158,049 $ 449,164 $ 895,451 - ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. NOTES TO FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The National Funds (the "Funds") covered in this report and their corresponding New York Stock Exchange symbols are Nuveen Investment Quality Municipal Fund, Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality Income Municipal Fund, Inc. (NQU) and Nuveen Premier Municipal Income Fund, Inc. (NPF). Each Fund 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 The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers and general market conditions. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. SECURITIES TRANSACTIONS Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At October 31, 1998, Select Quality, Quality Income and Premier Income had when-issued purchase commitments of $11,833,506, $18,894,700 and $7,669,520 respectively. Investment Quality had no such outstanding purchase commitments. INVESTMENT INCOME Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securities when required for federal income tax purposes. FEDERAL INCOME TAXES Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its tax-exempt net investment income, in addition to any significant amounts of net realized capital gains and/or market discount realized from investment transactions. The Funds currently consider significant net realized capital gains and/or market discount as amounts in excess of $.01 per Common share. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. All monthly tax-exempt income dividends paid during the fiscal year ended October 31, 1998, have been designated Exempt Interest Dividends. Net realized capital gain and market discount distributions are subject to federal taxation. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Tax-exempt net investment income is declared as a dividend monthly and payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from 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: INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME - -------------------------------------------------------------------------- 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 INSTRUMENTS The Funds may invest in transactions in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended October 31, 1998. 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. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common shares were as follows:
INVESTMENT QUALITY SELECT QUALITY - ------------------------------------------------------------------------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/98 10/31/97 10/31/98 10/31/97 - ------------------------------------------------------------------------------------------------------------ Shares issued to shareholders due to reinvestment of distributions 177,666 26,629 205,528 175,523 ============================================================================================================ QUALITY INCOME PREMIER INCOME - ------------------------------------------------------------------------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/98 10/31/97 10/31/98 10/31/97 - ------------------------------------------------------------------------------------------------------------ Shares issued to shareholders due to reinvestment of distributions 454,528 244,283 161,445 119,104 ============================================================================================================
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 1, 1998, to shareholders of record on November 15, 1998, as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME - ------------------------------------------------------------------------------------------------------------ Dividend per share $.0800 $.0795 $.0855 $.0805 ============================================================================================================
NOTES TO FINANCIAL STATEMENTS (continued) 4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments for the fiscal year ended October 31, 1998, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME - ----------------------------------------------------------------------------------------------------------- Purchases: Investments in municipal securities $52,641,133 $73,940,646 $258,333,573 $95,187,244 Temporary municipal investments 67,900,000 67,800,000 41,370,000 64,700,000 Sales and Maturities: Investments in municipal securities 53,060,117 53,775,359 231,796,827 84,564,153 Temporary municipal investments 65,800,000 71,600,000 41,370,000 65,200,000 ===========================================================================================================
At October 31, 1998, 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, 1998, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied the carryforwards will expire as follows:
INVESTMENT SELECT QUALITY QUALITY QUALITY INCOME - ----------------------------------------------------------------------------------------------------------- Expiration year: 2002 $ -- $5,012,103 $1,577,137 2003 -- 424,861 757,201 2004 -- 606,382 486,077 2005 -- 260,112 -- 2006 173,095 -- -- - ----------------------------------------------------------------------------------------------------------- Total $173,095 $6,303,458 $2,820,415 ===========================================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at October 31, 1998, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME - ----------------------------------------------------------------------------------------------------------- Gross unrealized: appreciation $72,221,837 $64,386,498 $103,499,862 $37,033,105 depreciation (2,285) (26,569) (82,311) (447,535) - ----------------------------------------------------------------------------------------------------------- Net unrealized appreciation $72,219,552 $64,359,929 $103,417,551 $36,585,570 ===========================================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' investment management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net asset value of each Fund as follows: AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE - ---------------------------------------------------------------------------- For the first $125 million .6500 of 1% For the next $125 million .6375 of 1 For the next $250 million .6250 of 1 For the next $500 million .6125 of 1 For the next $1 billion .6000 of 1 For net assets over $2 billion .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 of its Directors who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser. 7. COMPOSITION OF NET ASSETS At October 31, 1998, net assets consisted of:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME - ---------------------------------------------------------------------------------------------------------------- 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 356,385 337,814 537,766 199,276 Paid-in surplus 497,127,117 470,726,174 748,757,359 276,857,182 Balance of undistributed net investment income 620,558 653,947 1,515,989 449,164 Accumulated net realized gain (loss) from investment transactions (173,124) (6,303,458) (2,820,415) 57,337 Net unrealized appreciation of investments 72,219,552 64,359,929 103,417,551 36,585,570 - ---------------------------------------------------------------------------------------------------------------- Net assets $820,150,488 $769,774,406 $1,251,408,250 $454,148,529 - ---------------------------------------------------------------------------------------------------------------- Authorized shares: Common 200,000,000 200,000,000 200,000,000 200,000,000 Preferred 1,000,000 1,000,000 1,000,000 1,000,000 - ----------------------------------------------------------------------------------------------------------------
8. INVESTMENT COMPOSITION At October 31, 1998, the revenue sources by municipal purpose, expressed as a percent of total investments, were as follows:
INVESTMENT SELECT QUALITY PREMIER QUALITY QUALITY INCOME INCOME - ---------------------------------------------------------------------------------------------------------- Education and Civic Organizations 3% --% 2% 6% Health Care 14 4 7 11 Housing/Multifamily 2 7 3 14 Housing/Single Family 16 9 12 9 Tax Obligation/General 5 8 6 6 Tax Obligation/Limited 7 7 5 8 Transportation 1 10 12 4 U.S. Guaranteed 32 34 36 29 Utilities 11 16 9 6 Water and Sewer 7 3 5 1 Other 2 2 3 6 - -------------------------------------------------------------------------------------------------------- 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 (63% for Investment Quality, 63% for Select Quality, 51% for Quality Income and 43% for Premier Income). 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:
Investment Operations Net Realized/ Beginning Net Unrealized Net Asset Investment Investment Value Income Gain (Loss) Total Investment Quality Year Ended 10/31: 1998 $15.77 $1.22 $ .25 $1.47 1997 15.48 1.25 .30 1.55 1996 15.65 1.29 (.17) 1.12 1995 14.65 1.33 1.04 2.37 1994 16.45 1.32 (1.76) (.44) Select Quality Year Ended 10/31: 1998 15.48 1.23 .19 1.42 1997 15.12 1.25 .37 1.62 1996 15.29 1.27 (.17) 1.10 1995 14.03 1.30 1.30 2.60 1994 16.13 1.31 (2.06) (.75) Quality Income Year Ended 10/31: 1998 15.73 1.27 .12 1.39 1997 15.44 1.29 .29 1.58 1996 15.43 1.30 .02 1.32 1995 14.20 1.31 1.26 2.57 1994 16.40 1.32 (2.14) (.82) Premier Income Year Ended 10/31: 1998 15.62 1.22 .17 1.39 1997 15.38 1.25 .31 1.56 1996 15.34 1.27 .12 1.39 1995 14.08 1.28 1.34 2.62 1994 15.98 1.26 (1.87) (.61) ===================================================================================== Less Distributions Net Net Investment Investment Capital Capital Income Income Gains Gains To Common To Preferred To Common To Preferred Shareholders Shareholders+ Shareholders Shareholders+ Total Investment Quality Year Ended 10/31: 1998 $ (.98) $(.25) $(.01) $ -- $(1.24) 1997 (1.01) (.25) -- -- (1.26) 1996 (1.03) (.26) -- -- (1.29) 1995 (1.08) (.29) -- -- (1.37) 1994 (1.12) (.24) -- -- (1.36) Select Quality Year Ended 10/31: 1998 (.97) (.25) -- -- (1.22) 1997 (1.01) (.25) -- -- (1.26) 1996 (1.01) (.26) -- -- (1.27) 1995 (1.05) (.29) -- -- (1.34) 1994 (1.08) (.25) (.02) -- (1.35) Quality Income Year Ended 10/31: 1998 (1.03) (.26) -- -- (1.29) 1997 (1.03) (.26) -- -- (1.29) 1996 (1.03) (.28) -- -- (1.31) 1995 (1.03) (.31) -- -- (1.34) 1994 (1.10) (.26) (.02) -- (1.38) Premier Income Year Ended 10/31: 1998 (1.00) (.25) -- -- (1.25) 1997 (1.03) (.24) (.04) (.01) (1.32) 1996 (1.01) (.26) (.06) (.02) (1.35) 1995 (1.01) (.28) (.06) (.01) (1.36) 1994 (1.04) (.24) (.01) -- (1.29) ================================================================================================== Total Returns Ending Net Asset Ending Based on Based on Net Value Market Value Market Value* Asset Value* Investment Quality Year Ended 10/31: 1998 $16.00 $15.5000 5.97% 7.97% 1997 15.77 15.5625 10.82 8.68 1996 15.48 15.0000 6.13 5.70 1995 15.65 15.1250 21.89 14.71 1994 14.65 13.3750 (17.87) (4.32) Select Quality Year Ended 10/31: 1998 15.68 16.1875 10.96 7.77 1997 15.48 15.5000 9.43 9.35 1996 15.12 15.1250 9.71 5.71 1995 15.29 14.7500 21.03 17.03 1994 14.03 13.1250 (14.45) (6.43) Quality Income Year Ended 10/31: 1998 15.83 16.8125 9.64 7.37 1997 15.73 16.3125 14.22 8.81 1996 15.44 15.2500 10.61 6.93 1995 15.43 14.7500 23.26 16.51 1994 14.20 12.8750 (15.32) (6.86) Premier Income Year Ended 10/31: 1998 15.76 17.1250 10.29 7.49 1997 15.62 16.5000 16.81 8.85 1996 15.38 15.1250 11.00 7.51 1995 15.34 14.6250 23.92 17.15 1994 14.08 12.7500 (10.05) (5.51) Ratios/Supplemental Data Ratio of Net Ratio of Investment Ending Expenses to Income to Portfolio Net Assets Average Average Turnover (000) Net Assets++ Net Assets++ Rate Investment Quality Year Ended 10/31: 1998 $820,150 .78% 5.31% 7% 1997 809,337 .78 5.56 14 1996 798,349 .78 5.71 8 1995 804,221 .78 5.97 11 1994 768,723 .79 5.83 7 Select Quality Year Ended 10/31: 1998 769,774 .78 5.40 7 1997 759,770 .78 5.59 10 1996 745,059 .78 5.69 13 1995 749,883 .79 5.91 7 1994 707,388 .80 5.89 11 Quality Income Year Ended 10/31: 1998 1,251,408 .77 5.49 19 1997 1,238,536 .77 5.62 9 1996 1,219,663 .77 5.67 11 1995 1,218,905 .78 5.86 17 1994 1,153,729 .79 5.78 12 Premier Income Year Ended 10/31: 1998 454,149 .79 5.38 19 1997 448,807 .80 5.57 5 1996 442,153 .81 5.66 8 1995 441,381 .80 5.84 22 1994 416,566 .81 5.66 31
* Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. Total returns are not annualized. + 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, 1998, 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, 1998, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income Municipal Fund, Inc. and Nuveen Premier Municipal Income Fund, Inc. at October 31, 1998, 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. Chicago, Illinois December 11, 1998 FUND INFORMATION BOARD OF DIRECTORS Robert P. Bremner Lawrence H. Brown Anthony T. Dean Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN, TRANSFER AGENT AND SHAREHOLDER SERVICES The Chase Manhattan Bank 4 New York Plaza New York, NY 10004-2413 (800) 257-8787 LEGAL COUNSEL Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL YEAR 2000 The concern that computer systems may have problems processing date-related information in the year 2000 and beyond has challenged businesses and organizations to thoroughly review all aspects of their operations. We have undertaken just such an approach at Nuveen in preparation for the millennium. Over the last 10 years, our trading, fund management and pricing systems at Nuveen - the systems that directly affect our investors and their financial advisers - have been updated or replaced to address the Year 2000 concerns. We continue to work closely with our transfer agent, custodian and other service partners to monitor readiness and address other remaining systems issues. Our initial testing indicates we are on schedule, and we have targeted year-end 1998 to complete verification of vendor compliance and service partner readiness. However, we can give no complete assurance at this time that the steps we have taken will be sufficient to prevent any problems that would impact the Nuveen Exchange-Traded Funds. 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, 1998. Any future repurchases will be reported to shareholders in the next annual or semiannual report. SERVING INVESTORS FOR GENERATIONS PHOTO OF: JOHN NUVEEN, SR. John Nuveen, Sr. Since our founding in 1898, John Nuveen &Co. has been synonymous with investments that withstand the test of time. Today, we offer a broad range of investments designed for risk-sensitive individuals seeking to build and sustain wealth. In fact, more than 1.3 million investors have trusted Nuveen to help them maintain the lifestyle they currently enjoy. The cornerstone of Nuveen's investment philosophy is a commitment to disciplined long-term investment strategies focused on providing consistent, attractive performance over time - with moderated risk. We emphasize quality securities carefully chosen through in-depth research, and we follow those securities closely over time to ensure that they continue to meet our exacting standards. Whether your focus is long-term growth, dependable current income or sustaining accumulated wealth, Nuveen offers a wide variety of products and services to help meet your unique circumstances and financial planning needs. Our equity, balanced, and income funds, along with our unit trusts and private asset management, can form the foundation of a tax-efficient and risk-resistant portfolio. Talk with your financial adviser to learn more about how Nuveen investment products and services can help you build and sustain your long-term financial security. Or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before you invest. NUVEEN 1898 1998 OUR SECOND CENTURY helping investors sustain the wealth of a lifetime(tm). John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, IL 60606-1286 www.nuveen.com -----END PRIVACY-ENHANCED MESSAGE-----