-----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, DSwoYpVtuOr9nZgNZMNbnVkVJrXlA1e0hOPa4wDIr4B+8BNg+1TAdHQniXMwDaYS aUghRkYPeKLGqwFQQ8Qr9Q== 0000891804-99-001343.txt : 19990630 0000891804-99-001343.hdr.sgml : 19990630 ACCESSION NUMBER: 0000891804-99-001343 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990430 FILED AS OF DATE: 19990629 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: 99654407 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 April 30, 1999 Semiannual 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 April 30, 1999 Contents 1 Dear Shareholder 3 Portfolio Manager Roundtable 6 NQM's Performance Overview 7 NQS's Performance Overview 8 NQU's Performance Overview 9 NPF's Performance Overview 10 Portfolio of Investments 36 Statement of Net Assets 37 Statement of Operations 38 Statement of Changes in Net Assets 40 Notes to Financial Statements 45 Financial Highlights 48 Building a Better Portfolio 49 Fund Information Credit Quality Performance Highlights Nuveen Investment Quality Municipal Fund, Inc. (NQM) o HHHH Four-star Morningstar RatingsTM * o Taxable-equivalent yield of 8.80% ** o Good credit quality, with 86% of the portfolio's holdings rated AA or higher Pie Chart: AAA/U.S. Guaranteed 73% AA 13% A 6% BBB/NR 8% Nuveen Select Quality Municipal Fund, Inc. (NQS) o HHHH Four-star Morningstar RatingsTM * o Taxable-equivalent yield of 8.88% ** o Outperformed the total return of the Lehman Brothers Municipal Bond Index *** Pie Chart: AAA/U.S. Guaranteed 77% AA 5% A 7% BBB/NR 11% Nuveen Quality Income Municipal Fund, Inc. (NQU) o HHHH Four-star Morningstar RatingsTM * o Taxable-equivalent yield of 9.04% ** o Stable tax-free dividend for 51 consecutive months Pie Chart: AAA/U.S. Guaranteed 60% AA 14% A 7% BBB/NR 19% Nuveen Premier Municipal Income Fund, Inc. (NPF) o HHHH Four-star Morningstar RatingsTM * o Taxable-equivalent yield of 8.68% ** o Good call protection, with approximately 8% of the Fund's investments callable prior to 2002 Pie Chart: AAA/U.S. Guaranteed 55% AA 15% A 12% BBB/NR 18% * Morningstar proprietary ratings reflect historical risk-adjusted performance as of April 30, 1999. The ratings are subject to change every month. Past performance is no guarantee of future results. Morningstar ratings are calculated from the fund's three-, five-, and ten-year average annual returns (if applicable) in excess of 90-day T-bill returns. NQU, NQS and NPF received 4 stars for the three and five-year periods. NQM received 3 and 4 stars for the three and five-year periods, respectively. The top 10% of the funds in a broad asset class receive 5 stars, the next 22.5% receive 4 stars and the next 35% receive 3 stars. The funds are rated among 193 funds for the three year period, 191 funds for the five-year period, and 25 funds for the 10-year period. ** For investors in the 31% federal income tax bracket. See your Fund's Performance Overview for more information. *** The Lehman Brothers Municipal Bond Index is an unleveraged index cov ering a broad range of investment-grade bonds. The return for the index does not reflect any initial or ongoing expenses. 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 would like to take this opportunity to discuss the performance of your Nuveen Exchange-Traded Fund over the past six months. Over this period, your Fund continued to provide a stable, tax-free dividend, which is its primary objective. In addition, we continued looking for the opportunity to enhance the Fund's after-tax total return while striving to maintain capital preservation. The combination of these two components demonstrates that Nuveen's municipal bond funds can serve as excellent investment options for income-oriented investors. The Year in Review The past six to 12 months saw the U.S. economy continue its pattern of non-inflationary growth, accompanied by low interest rates and unemployment levels that remain among the lowest in three decades. Much of the current economic growth is propelled by consumer demand, which has helped the U.S. resist the downward pull of weaker overseas markets. All indications point to a confident American consumer who is comfortable with the current state of the economy, especially the performance of the housing, stock, and job markets. This confidence is reflected in the most recent Consumer Confidence Index report issued by the Conference Board, which showed a record-setting seventh consecutive month of gains in May. On the global front, the turmoil of the past two years appears to be fading somewhat, as international financial markets have begun to recover. Inflation in the U.S. continued to operate at benign levels, with an increase of 2.2% for the 12 months ended April 30, 1999. Despite a spike in consumer prices in April, which was propelled by rising energy costs (which have subsequently declined), the general backdrop of inflation indicators continued to be mild, with the employment cost index, average hourly earnings, and import and producer price trends all remaining favorable. As Federal Reserve Chairman Alan Greenspan recently stated, one of the key factors in achieving today's peaceful coexistence of economic growth and low inflation has been increased productivity. Improvements in productivity, spurred by technological advances, have been responsible for offsetting wage and other inflationary pressures that we would normally expect to see as part of a growing economy. On the interest rate front, last fall saw the Federal Reserve ease short-term rates for the first time in almost three years. Between the end of September and mid-November 1998, three successive cuts brought the federal funds rate to 4.75%, averting a potential domestic credit crunch and restoring some stability to global markets. Following the success of these preemptive moves, the Federal Reserve indicated that fighting inflation continued to be a top priority by remaining in a proactive mode and responding to April's increased consumer prices with a shift to a tightening bias. By doing this, the Fed signaled its continued support of the market without changing interest rates or fundamentally altering the economy. In the months ahead, we will continue to watch for indications from the Fed and other factors that affect the economy's future, including wage and employment statistics, reports on productivity growth, capital equipment spending, and the progress of international economic recovery. We believe these key components will influence the outlook for fixed-income markets well into the new millennium. Municipal Bonds: An Attractive Investment Option As interest rates declined over the past year, our municipal bond funds continued to provide bright spots among the various investment options, generally offering attractive, stable income in a market that places a high premium on yield. In 1998, municipal bonds represented a reasonably insulated haven in an otherwise turbulent market, with lower volatility relative to Treasury bonds and other fixed-income investments. In fact, for the first four months of 1999, municipals continued to outperform Treasuries. The high ratio of tax-exempt municipal yields to Treasury yields shel tered municipal bonds from the price decline that occurred in the Treasury market during the first four months of the year. While the interest rate on 30-year Treasury bonds rose from 5.10% at the end of December to 5.66% as of April 30, 1999, the yield on the Bond Buyer Revenue Bond Index, an unmanaged index of long-term municipal revenue bonds, gained just three basis points - from 5.26% to 5.29%. Given the inverse relationship between interest rates and bond prices, Treasury bond prices fell as rates rose over this period. Though municipal bond prices did decrease, the decline was not as dramatic as the drop in Treasuries. The differential in performance reflects the fact that Treasuries had become relatively expensive as the result of safe-haven buying during the international economic crises of the past year. As the financial turmoil subsided in the first quarter of 1999, however, foreign investors returned to investing in their own countries rather than in U.S. dollar-denominated securities. The combination of an increase in interest rates and a decline in demand caused U.S. Treasuries to drop in price. Chart of: The Bond Buyer Revenue Bond Index At the end of April 1999, the ratio between long-term municipal yields and 30-year Treasury yields stood at 94%, compared with the historical average of 86% for the period of 1986-1999. For investors, this meant that quality long-term municipal bonds offered yields comparable to those of long Treasury bonds - even before the tax advantages of municipal bonds were taken into account. On an after-tax basis in today's market, municipal bonds continue to present an exceptionally attractive investment option relative to Treasuries. During 1998, lower interest rates and the strong economy combined to generate high levels of new municipal issuance and a sign ificant increase in the refinancing of existing bonds. Municipal issuance in 1998 reached $284 billion, up 29% over 1997. In terms of total municipal issuance, 1998 ranked as the second largest year on record, next to 1993's $292 billion. In the first four months of 1999, however, as the market settled into a more stable interest rate environment, refunding activity dropped off dramatically. As a result, municipal supply in 1999 has declined by approximately 25% from the levels of a year ago. This, in turn, has enhanced the attractive ness of the municipal bonds that were brought to market, as demand - especially from individual investors - remained relatively strong. The Value of Nuveen Expertise The solid track record of a proven investment manager is one key to taking advantage of the attractive values currently available in the municipal market. The near-record level of municipal issuance in 1998, for example, highlighted the value of Nuveen's in-depth knowledge of the municipal market, as our portfolio management teams carefully analyzed each issue to select those securities best suited to help the Funds achieve their investment objectives. With the outlook for tighter supply and continued demand in 1999, Nuveen's established market position ensures that we will have exceptional access to the bond offerings that have the potential to add value for our shareholders. As a further enhancement to our management capabilities, Nuveen has assembled a strong group of investment managers - experts in their particular areas of the market - to provide investors with the advantage of their experience and insights. In addition to Nuveen Advisory Services for tax-free investing, you and your financial adviser can rely on Institutional Capital Corporation for value-oriented equity investing and Rittenhouse Financial Services, Inc. for growth-oriented equity investing. We encourage you to talk with your financial adviser about Nuveen's expanding array of investments and the ways that Nuveen funds can help you establish a diversified portfolio designed to build and sustain long-term finan cial security. For more information on our funds, contact your adviser for a prospectus, or call Nuveen at (800) 621-7227. Please read it carefully before you invest or send money. Thank you for the confidence you have placed in Nuveen. We are committed to maintaining the trust you have shown in us, and we look forward to meeting your investment needs well into the next century. /s/Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board June 15, 1999 Sidebar text: "The solid track record of a proven investment manager is one key to taking advantage of the attractive values currently available in the municipal market." Nuveen Exchange-Traded Funds Portfolio Manager Roundtable Portfolio managers Tom Futrell, Rick Huber, Bill Fitzgerald, and Steve Peterson discuss the municipal market, recent fund performance, and key investment strategies for the Nuveen national exchange-traded funds. Tom, Bill, and Steve have managed NQM, NQU, and NPF, respectively, since the funds' inceptions in the early 1990s, while Rick assumed portfolio management responsibility for NQS in July 1998. What factors have influenced the municipal market during the past 12 months? Over the past 12 months, the U.S. economy continued to enjoy strong non-inflationary growth, low interest rates, and low unemployment. With tax revenues rising along with the growth in personal income, the national government is generating a budget surplus, putting an end to 28 straight years of federal budget deficits (1970-97). In this environment, long-term municipal bonds continued to outperform 30-year Treasury bonds, with yields that rivaled and even surpassed those offered by Treasuries. Over the past year, this municipal-to-Treasury ratio ranged as high as 104%, offering investors in quality long-term municipal bonds yields comparable to those of Treasury bonds, even before the tax advantage of municipals was taken into account. The other major story in the municipal market over the past year was 1998's impressive supply of new issuance. In the fourth quarter of 1998, investors saw $25-30 billion in new bonds brought to market each month. Demand for municipal bonds also remained high, due to cash flow from non-traditional investors as well as from the traditional buyers of mutual and exchange-traded funds, such as individual investors and insurance companies. In the first four months of 1999, however, a higher interest rate environment than we experienced in 1998 prompted fewer refundings and a 25% drop-off in new issue volume from 1998 levels. During this period, the continued demand from individual investors compensated for lower demand from insurance companies, which currently have fewer assets to invest due to heavy insurance premium price competition and mounting claims from a series of devastating spring storms in the Midwest and South. For the remainder of 1999, the municipal market will be heavily influenced by the direction of interest rates and inflation. If interest rates remain stable or increase, we expect to see lower refinancing volume and a continuation of the tighter supply scenario of the past four months. Demand should remain strong, as individual investors look to diversify their portfolios by reallocating profits from the equity market into fixed-income investments. These reallocation efforts will be expanded if the volatility in equities continues. Even with lower supply and high demand, Nuveen's position in the municipal market ensures that we will have access to the best offerings in the marketplace. How did the Funds perform over the past year? For the 12 months ended April 30, 1999, the Funds covered in this report produced total returns on net asset value (NAV) ranging from 6.44% to 6.96%, providing taxable-equivalent total returns of 9.31% to 9.84%, as shown in the accompa nying table. For comparison purposes, the total return on the funds' benchmark - the Lehman Brothers Municipal Bond Index - and the average for the Lipper General Leveraged Municipal Debt category are also provided. 1-Yr Ended Taxable- 4/30/99 Equivalent(3) - ------------------------------------------------------------------------------- NQM Total Return on NAV 6.46% 9.31% Lehman Total Return(1) 6.95% N/A Lipper Average(2) 7.01% N/A Market Yield 6.07% 8.80% - ------------------------------------------------------------------------------- NQS Total Return on NAV 6.96% 9.84% Lehman Total Return(1) 6.95% N/A Lipper Average(2) 7.01% N/A Market Yield 6.13% 8.88% - ------------------------------------------------------------------------------- NQU Total Return on NAV 6.44% 9.48% Lehman Total Return(1) 6.95% N/A Lipper Average(2) 7.01% N/A Market Yield 6.24% 9.04% - ------------------------------------------------------------------------------- NPF Total Return on NAV 6.61% 9.51% Lehman Total Return(1) 6.95% N/A Lipper Average(2) 7.01% N/A Market Yield 5.99% 8.68% - ------------------------------------------------------------------------------- How were the Funds' dividends and share prices affected? Good call protection helped support the dividend of NQU and shield the income of this fund from erosion. As of April 30, 1999, NQU had provided shareholders with 51 consecutive months of steady income. During the past year, lower interest rates also led to an 1 The Funds are compared with the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. The return for the Lehman index does not reflect any initial or ongoing expenses. 2 The Lipper Peer Group return represents the average annual ized return of funds in the Lipper General Leveraged Municipal Debt category. This return assumes reinvestment of dividends and does not reflect any applicable sales charges. 3 Based on the 31% federal income tax rate. increased number of bond calls, as issuers sought to reduce debt financing costs. In addition, declining interest rates meant that proceeds from prepaid or matured bonds had to be reinvested in issues paying relatively lower current rates. Both of these situations contributed to reductions in the income levels of NQM, NQS, and NPF and necessitated dividend cuts in these three funds during 1998. Even with these dividend adjustments, all of the funds have continued to provide attractive market yields. As interest rates declined, active demand for funds such as NQM and NQU resulted in solid share price performance. NPF's share price remained stable while, for NQS, the dynamics of supply and demand, affected by the July 1998 dividend adjustment, contributed to a decline in share price. At the same time, the funds' NAVs - with the exception of NQU - reflected gains in the overall bond market. As a result of these factors, NQU saw its premium (share price over NAV) widen over the past year, while NQM moved from a discount (share price below NAV) to a premium. The premiums on the other two Funds narrowed over the past 12 months. 4/30/98 4/30/99 - --------------------------------------------------------------------------- NQM Share Price ($) 15.625 15.8125 NAV$ 15.69 15.72 Premium/Discount to Nav(4) -0.41% 0.59% 1-Yr Ended Taxable- 4/30/99 Equivalent(3) - --------------------------------------------------------------------------- Total Return on Share Price 7.53% 10.39% - --------------------------------------------------------------------------- NQS Share Price ($) 15.6875 15.5625 NAV$ 15.39 15.48 Premium/Discount to Nav(4) 1.93% 0.53% 1-Yr Ended Taxable- 4/30/99 Equivalent(3) - --------------------------------------------------------------------------- Total Return on Share Price 5.36% 8.18% - --------------------------------------------------------------------------- NQU Share Price ($) 16.25 16.4375 NAV$ 15.61 15.57 Premium/Discount to Nav(4) 4.10% 5.57% 1-Yr Ended Taxable- 4/30/99 Equivalent(3) - --------------------------------------------------------------------------- Total Return on Share Price 7.59% 10.51% - --------------------------------------------------------------------------- NPF Share Price ($) 16.125 16.125 NAV$ 15.50 15.53 Premium/Discount to Nav(4) 4.03% 3.83% 1-Yr Ended Taxable- 4/30/99 Equivalent(3) - --------------------------------------------------------------------------- Total Return on Share Price 6.14% 8.92% - --------------------------------------------------------------------------- For additional information, see the individual Performance Overview for your fund in this report. What key strategies were used to manage the Funds during the past year? The focus of our management strategies for the Funds covered in this report continued to be on supporting the highest level of tax-exempt dividends consistent with capital preservation and enhancing the potential for attractive long-term after-tax total returns. Each of the funds is managed on a relative value basis, a strategy designed to add value and maximize income. In NQM, our strategies over the past year focused on enhancing the Fund's yield and using the proceeds from called and matured bonds to purchase, when possible, noncallable securities. As spreads narrowed between the single family housing sector and the rest of the market, we reduced our exposure to single family housing bonds by selling some of the portfolio's older issues at attractive prices, due to the fact that bond prices rose as interest rates fell over the period. These bonds are scheduled to be called in the near future, so we proactively managed the Fund and reinvested the proceeds from the sales into basic sectors like utilities and tax obligation bonds. Nuveen's excellent surveillance and research helped us make the buy/sell decisions that can benefit the Fund and add value for the NQM shareholders. NQS is in the process of a restructuring effort, which required a more active approach than in previous years. Our goal is to enhance the Fund's total return potential and maintain the income stream by purchasing bonds found across the yield curve. This effort to add yield and protect future income levels should also help us counter some of the effect of bond calls, which will begin in 2001. Based on our goal, the key to sector selection over the past year has been the income factor. The healthcare, utilities (power and energy bonds), and transportation (airlines) sectors have been among the most active issuers over the past year, which presented us with increased trading opportunities and the ability to pick up incremental yield. Nuveen's research capabilities were instrumental in helping us examine issues in these sectors on a case-by-case basis and select those that have the potential to add value to the portfolio. 3 Based on the 31% federal income tax rate. 4 A fund's premium or discount represents the difference between the fund's share price and its NAV. Over the past year for NQU, we focused on individual investments that offered exceptional value. Two examples of this were bonds issued by a Mississippi investor-owned energy utility and New York resource recovery bonds, which will finance efforts to use waste products such as wood and coal to generate energy. During the past six months, approximately 2% of the bonds in NQU's portfolio were called, and the proceeds were reinvested in long-term bonds. This will increase the Fund's duration and make the net asset value more sensitive to interest rate changes. For NPF, we also focused on ways to take advantage of changes in the yield curve. The yield curve plots the relationship between bond yields and corresponding maturities. Usually, but not always, bonds with longer maturities offer higher yields than those with shorter terms to maturity. When the yield curve "steepens," the difference between short-term and long-term interest rates widens; when the yield curve "flattens," the difference is relatively small. As the yield curve steepens or flattens, different maturities on the curve become more or less attractive. Over the past year, our objective was to purchase bonds at the most attractive part of the curve and sell those at the least attractive part. These trades enabled us to manage interest rate risk while maintaining the Fund's yield. We also bought some zero coupon bonds in the 18- to 23-year range, which we regard as an inexpensive way to add yield, enhance duration, and create more performance potential for the Fund. This is due to the fact that zero coupon bonds have longer durations, which make them more sensitive to interest rate changes. In the area of call protection, over the next few years all four funds, which were brought to market in the early 1990s, will begin to face the normal part of the market cycle in which bond calls are likely to occur. For NQM, this phase will begin in the year 2000, while NQS and NQU are protected until 2001 and NPF until 2002. To minimize the impact of these future calls, we are already at work on strategies for managing through this period. These strategies include holding the callable bonds that provide high yields and support the Funds' dividends until the bonds approach their call dates. We will then look for opportunities to sell these bonds at attractive prices to those seeking short-term tax-exempt investments. Our goal is to reinvest the proceeds from these bonds in the most advantageous manner possible, depending on market conditions, including securities that can add incremental yield or in discount bonds that will extend the Funds' durations. Overall, the credit quality of the Funds remained high. At the end of April 1999, NQM and NQS had 86% and 82%, respectively, of their portfolios invested in bonds rated AAA and AA, reflecting a high level of prerefunded (escrowed) bonds, which are backed by AAA rated U.S. Treasuries. This level is expected to decline somewhat over the next few years as bonds are called from the portfolios. Both NQU and NPF balanced allocations of approximately 70% in AAA and AA rated bonds with an 18-19% concentration in BBB and non-rated bonds. In general, the high volume of insured issuance over the past year made it difficult to add lower-rated bonds to these portfolios and even more difficult to find bonds that met our credit criteria and compensated us for the incremental risk associated with lower ratings. What is Nuveen's outlook for the Funds' future? Looking ahead for the Funds, our focus will remain on supporting their income streams. One of our strategies for protecting fund income is to continue taking advantage of changes in the yield curve. Investing in bonds found on the long end of the yield curve should also allow us to boost the potential for both income and total return. Strategies like these demonstrate the value that can be added by an active bond manager such as Nuveen. As an experienced investment manager knowledgeable about the unique aspects of the municipal market, we are in the marketplace every day, monitoring market dynamics, looking for opportunities, and capitalizing on them to the benefit of shareholders. In our opinion, municipal bonds are currently one of the most compelling values in the investment market place. Over the past 12 months, the value of these quality investments has been enhanced by excellent municipal-to-Treasury ratios as well as a market environment characterized by low interest rates and benign inflation. With continued volatility in the equity markets and investors' increasing awareness of the need for asset allocation rebalancing, the demand for municipal bond funds is expected to grow. 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. Nuveen Investment Quality Municipal Fund, Inc. Performance Overview As of April 30, 1999 NQM Portfolio Statistics Inception Date 6/90 - -------------------------------------------------- Share Price $15 13/16 - -------------------------------------------------- Net Asset Value $15.72 - -------------------------------------------------- Market Yield 6.07% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 8.80% - -------------------------------------------------- Fund Net Assets ($000) $810,809 - -------------------------------------------------- Effective Maturity (Years) 18.00 - -------------------------------------------------- Leverage-Adjusted Duration 9.53 - -------------------------------------------------- Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 7.53% 6.46% - -------------------------------------------------- 5-Year 8.09% 7.54% - -------------------------------------------------- Since Inception 7.66% 8.45% - -------------------------------------------------- Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 10.39% 9.31% - -------------------------------------------------- 5-Year 11.26% 10.65% - -------------------------------------------------- Since Inception 10.84% 11.68% - -------------------------------------------------- Top Five Sectors (as a % of total investments) U.S. Guaranteed 31% - -------------------------------------------------- Healthcare 16% - -------------------------------------------------- Housing/Single Family 12% - -------------------------------------------------- Utilities 10% - -------------------------------------------------- Water and Sewer 9% - -------------------------------------------------- 1 Taxable-equivalent yield represents the yield on a taxable investment nec essary 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. Bar Chart: 1998-1999 Monthly Tax-Free Dividends Per Share 5/98 0.0825 6/98 0.0825 7/98 0.0825 8/98 0.08 9/98 0.08 10/98 0.08 11/98 0.08 12/98 0.08 1/99 0.08 2/99 0.08 3/99 0.08 4/99 0.08 Line Chart: Share Price Performance 5/1/98 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 15.5 15.5 15.63 15.94 16.19 16 16.06 16.19 16 15.75 15.69 15.75 15.69 15.63 15.69 15.69 16 16 15.88 15.88 15.88 15.63 15.63 4/30/99 15.81 Weekly Closing Price Past performance is not predictive of future results. Nuveen Select Quality Municipal Fund, Inc. Performance Overview As of April 30, 1999 NQS Portfolio Statistics Inception Date 3/91 - -------------------------------------------------- Share Price $15 9/16 - -------------------------------------------------- Net Asset Value $15.48 - -------------------------------------------------- Market Yield 6.13% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 8.88% - -------------------------------------------------- Fund Net Assets ($000) $764,255 - -------------------------------------------------- Effective Maturity (Years) 16.28 - -------------------------------------------------- Leverage-Adjusted Duration 7.71 - -------------------------------------------------- Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 5.36% 6.96% - -------------------------------------------------- 5-Year 8.05% 8.06% - -------------------------------------------------- Since Inception 7.41% 8.26% - -------------------------------------------------- Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 8.18% 9.84% - -------------------------------------------------- 5-Year 11.20% 11.20% - -------------------------------------------------- Since Inception 10.56% 11.43% - -------------------------------------------------- Top Five Sectors (as a % of total investments) U.S. Guaranteed 35% - -------------------------------------------------- Utilities 15% - -------------------------------------------------- Transportation 9% - -------------------------------------------------- Housing/Single Family 8% - -------------------------------------------------- Tax Obligation/General 8% - -------------------------------------------------- 1 Taxable-equivalent yield represents the yield on a taxable investment nec essary 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 net ordinary income distributions in December of $0.0029 per share. Bar Chart: 1998-1999 Monthly Tax-Free Dividends Per Share(3) 5/98 0.0815 6/98 0.0815 7/98 0.0795 8/98 0.0795 9/98 0.0795 10/98 0.0795 11/98 0.0795 12/98 0.0795 1/99 0.0795 2/99 0.0795 3/99 0.0795 4/99 0.0795 Line Chart: Share Price Performance 5/1/98 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 16.19 16.19 16.31 16.25 16.44 16.44 16.63 16.44 16.06 15.94 15.81 15.81 16 16 15.94 15.94 15.94 15.75 15.75 15.69 15.69 15.63 15.5 4/30/99 15.56 Weekly Closing Price Past performance is not predictive of future results. Nuveen Quality Income Municipal Fund, Inc. Performance Overview As of April 30, 1999 NQU Portfolio Statistics Inception Date 6/91 - -------------------------------------------------- Share Price $16 7/16 - -------------------------------------------------- Net Asset Value $15.57 - -------------------------------------------------- Market Yield 6.24% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 9.04% - -------------------------------------------------- Fund Net Assets ($000) $1,240,450 - -------------------------------------------------- Effective Maturity (Years) 15.33 - -------------------------------------------------- Leverage-Adjusted Duration 6.27 - -------------------------------------------------- Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 7.59% 6.44% - -------------------------------------------------- 5-Year 9.65% 7.92% - -------------------------------------------------- Since Inception 8.15% 8.32% - -------------------------------------------------- Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 10.51% 9.48% - -------------------------------------------------- 5-Year 12.85% 11.08% - -------------------------------------------------- Since Inception 11.30% 11.48% - -------------------------------------------------- Top Five Sectors (as a % of total investments) U.S. Guaranteed 37% - -------------------------------------------------- Transportation 13% - -------------------------------------------------- Housing/Single Family 11% - -------------------------------------------------- Utilities 9% - -------------------------------------------------- Tax Obligation/General 6% - -------------------------------------------------- 1 Taxable-equivalent yield represents the yield on a taxable investment nec essary 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. Bar Chart: 1998-1999 Monthly Tax-Free Dividends Per Share 5/98 0.0855 6/98 0.0855 7/98 0.0855 8/98 0.0855 9/98 0.0855 10/98 0.0855 11/98 0.0855 12/98 0.0855 1/99 0.0855 2/99 0.0855 3/99 0.0855 4/99 0.0855 Line Chart: Share Price Performance 5/1/98 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 16.81 16.88 17.06 16.94 17.06 17.25 17.19 17.13 16.81 16.88 16.19 16.44 16.56 16.63 16.63 16.63 16.69 16.44 16.38 16.38 16.63 16.31 16.38 4/30/99 16.44 Weekly Closing Price Past performance is not predictive of future results. Nuveen Premier Municipal Income Fund, Inc. Performance Overview As of April 30, 1999 NPF Portfolio Statistics Inception Date 12/91 - -------------------------------------------------- Share Price $16 1/8 - -------------------------------------------------- Net Asset Value $15.53 - -------------------------------------------------- Market Yield 5.99% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 8.68% - -------------------------------------------------- Fund Net Assets ($000) $450,616 - -------------------------------------------------- Effective Maturity (Years) 13.68 - -------------------------------------------------- Leverage-Adjusted Duration 8.78 - -------------------------------------------------- Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 6.14% 6.61% - -------------------------------------------------- 5-Year 9.94% 8.37% - -------------------------------------------------- Since Inception 7.89% 8.28% - -------------------------------------------------- Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 8.92% 9.51% - -------------------------------------------------- 5-Year 13.09% 11.48% - -------------------------------------------------- Since Inception 10.94% 11.31% - -------------------------------------------------- Top Five Sectors (as a % of total investments) U.S. Guaranteed 30% - -------------------------------------------------- Housing/Multifamily 14% - -------------------------------------------------- Healthcare 10% - -------------------------------------------------- Tax Obligation/General 9% - -------------------------------------------------- Tax Obligation/Limited 9% - -------------------------------------------------- 1 Taxable-equivalent yield represents the yield on a taxable investment nec essary 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 capital gains distributions in December of $0.0023 per share. Bar Chart: 1998-1999 Monthly Tax-Free Dividends Per Share3 5/98 0.083 6/98 0.083 7/98 0.083 8/98 0.0805 9/98 0.0805 10/98 0.0805 11/98 0.0805 12/98 0.0805 1/99 0.0805 2/99 0.0805 3/99 0.0805 4/99 0.0805 Line Chart: Share Price Performance 5/1/98 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 17.13 17.31 17.25 17.13 17.19 16.94 17 16.88 16.63 16.5 16.44 16.31 16.38 16.25 16.44 16.19 16.25 16 15.94 16.06 15.9375 15.88 16 4/30/99 16.13 Weekly Closing Price Past performance is not predictive of future results. Portfolio of Investments Nuveen Investment Quality Municipal Fund, Inc. (NQM) April 30,1999 (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Alabama - 2.0% $ 16,500,000 BMC Special Care Facilities Financing Authority of the City of 11/08 at 101 AAA $15,887,355 Montgomery (Alabama), Revenue Bonds, Series 1998-B (Baptist Health), 5.000%, 11/15/29 - ---------------------------------------------------------------------------------------------------------------------------------- Alaska - 1.9% 14,850,000 Alaska Housing Finance Corporation, General Housing 6/04 at 102 Aa2 15,244,565 Purpose Bonds, 1994 Series A, 5.400%, 12/01/13 - ---------------------------------------------------------------------------------------------------------------------------------- Arkansas - 1.2% 6,760,000 Arkansas Development Finance Authority, Home Mortgage 7/08 at 101 1/2 AAA 6,805,224 Revenue Bonds, 1998 Series A (Non-AMT), 5.150%, 7/01/17 3,250,000 City of North Little Rock, Arkansas, Health Facilities Board 12/06 at 101 AAA 3,333,525 (Baptist Health), Healthcare Revenue Bonds, Series 1996A, 5.400%, 12/01/16 - ---------------------------------------------------------------------------------------------------------------------------------- California - 13.8% 9,650,000 Certificates of Participation (1991 Financing Project), 9/06 at 102 AAA 10,585,857 County of Alameda, California, Alameda County Public Facilities Corporation, 6.000%, 9/01/21 22,400,000 California Health Facilities Financing Authority, Kaiser 5/03 at 102 A 22,770,496 Permanente Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 4,625,000 California Health Facilities Financing Authority, Hospital 6/01 at 102 Aaa 5,047,771 Revenue Bonds (Children's Hospital of Los Angeles), 1991 Series A, 7.125%, 6/01/21 (Pre-refunded to 6/01/01) 5,925,000 State Public Works Board of the State of California, 6/03 at 102 Aa3 6,127,161 Lease Revenue Refunding Bonds (The Regents of the University of California), 1993 Series A (Various University of California Projects), 5.500%, 6/01/21 2,640,000 Culver City Redevelopment Financing Authority, 11/03 at 102 AAA 2,590,632 1993 Tax Allocation Refunding Revenue Bonds, 5.000%, 11/01/23 9,740,000 Huntington Park Redevelopment Agency, Single Family No Opt. Call AAA 13,476,751 Residential Mortgage Revenue Refunding Bonds, 1986 Series A, 8.000%, 12/01/19 4,000,000 City of Loma Linda, California, Hospital Revenue Bonds 12/03 at 102 BBB- 4,231,840 (Loma Linda University Medical Center Project), Series 1993-A, 6.500%, 12/01/18 7,155,000 Department of Water and Power of the City of Los Angeles, 5/03 at 102 AAA 6,540,743 Water Works Refunding Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/23 1,030,000 Natomas Unified School District, County of Sacramento, No Opt. Call AAA 1,167,433 California, 1999 Refunding General Obligation Bonds, 5.950%, 9/01/21 15,770,000 Ontario Redevelopment Financing Authority, No Opt. Call AAA 21,281,930 San Bernardino County, California, 1995 Revenue Refunding Bonds (Ontario Redevelopment Project No.1), 7.400%, 8/01/25 13,145,000 City of Perris, California, Single Family Mortgage No Opt. Call AAA 17,750,482 Revenue Bonds (GNMA Mortgage-Backed Securities), 1988 Series B, 8.200%, 9/01/23 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Colorado - 2.7% 4,940,000 Castle Pines Metropolitan District, Douglas County, Colorado, 12/00 at 102 AAA 5,353,083 General Obligation Refunding and Improvement Bonds, Series 1990, 7.625%, 12/01/15 (Pre-refunded to 12/01/00) 2,500,000 Colorado Housing Finance Authority, Single Family 5/06 at 105 Aa2 2,796,975 Program Senior and Subordinate Bonds, 1996 Series B, 7.450%, 11/01/27 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 820,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 905,920 2,265,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 BBB+ 2,446,834 7,865,000 Colorado Springs School District No. 11, El Paso County, 12/07 at 125 AA- 10,042,268 Colorado, General Obligation Improvement Bonds, Series 1996, 7.125%, 12/01/21 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Connecticut - 2.2% 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 $ 1,041,810 8,600,000 5.850%, 11/15/28 (Alternative Minimum Tax) 11/07 at 102 AA 8,992,160 6,985,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1996 Series D, 5/06 at 102 AA 7,411,155 Subseries D-2, 6.200%, 11/15/27 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- District of Columbia - 0.7% 5,215,000 District of Columbia Housing Finance Agency, Collateralized 12/00 at 102 AAA 5,522,007 Single Family Mortgage Revenue Bonds, Series 1990A, 8.100%, 12/01/23 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Florida - 4.1% 4,000,000 Hillsborough County Port District, Florida (Tampa Port 12/00 at 102 Baa1*** 4,364,040 Authority), Revenue Bonds, Series 1990, 8.250%, 6/01/09 (Pre-refunded to 12/01/00) 20,000,000 Jacksonville Health Facilities Authority, Health Facilities 11/00 at 102 Aaa 21,564,000 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) 7,500,000 City of Miami Beach Health Facilities Authority, Hospital 11/08 at 101 BBB 7,334,700 Revenue Bonds, Series 1998 (Mount Sinai Medical Center of Florida Project), 5.375%, 11/15/28 305,000 Orange County Housing Finance Authority, GNMA Collateralized 7/00 at 103 AAA 319,445 Mortgage Revenue Refunding Bonds, 1990 Series A, 7.500%, 7/01/10 - ---------------------------------------------------------------------------------------------------------------------------------- Georgia - 4.7% 18,520,000 City of Atlanta (Georgia), Water and Wastewater Revenue 5/09 at 101 AAA 17,796,609 Bonds, Series 1999A, 5.000%, 11/01/38 2,250,000 Municipal Electric Authority of Georgia, Project One Special No Opt. Call A 2,625,502 Obligation Bonds, Fourth Crossover Series, 6.500%, 1/01/20 10,000,000 Development Authority of Monroe County (Georgia), 10/99 at 102 A+ 10,290,900 Pollution Control Revenue Bonds (Georgia Power Company Plant Scherer Project), Second Series 1994, 6.750%, 10/01/24 7,325,000 Wayne County Development Authority, Solid Waste Disposal 7/00 at 102 BBB+ 7,707,365 Revenue Bonds (ITT Rayonier, Inc. Project), Series 1990, 8.000%, 7/01/15 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Illinois - 5.2% 7,500,000 Community College District No. 508, Cook County, Illinois, No Opt. Call AAA 9,592,275 Certificates of Participation, 8.750%, 1/01/07 3,305,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1990 11/00 at 102 A3*** 3,556,841 (Riverside Senior Living Center Project), 7.500%, 11/01/20 (Pre-refunded to 11/01/00) 5,000,000 Illinois Health Facilities Authority, Revenue Bonds, 8/99 at 102 N/R*** 5,162,700 Series 1989B (ServantCor), 7.875%, 8/15/19 (Pre-refunded to 8/15/99) 5,900,000 Community Unit School District Number 7, Madison County, No Opt. Call AAA 6,622,514 Illinois, School Building Bonds, Series 1994, 5.850%, 2/01/13 3,585,000 City of Pekin, Illinois, Multifamily Housing Refunding 5/03 at 103 AAA 3,826,414 Revenue Bonds, Series 1992A (FHA-Insured Mortgage Loan - Section 8 Assisted Project), 6.875%, 5/01/22 1,645,000 City of Peoria, Peoria County, City of Pekin, Tazewell and 8/00 at 103 AA+ 1,717,512 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) 5,390,000 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 7,080,735 Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992A, 9.000%, 6/01/07 860,000 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 1,129,765 Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992B, 9.000%, 6/01/07 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 701,158 2,910,000 8.500%, 8/01/20 (Alternative Minimum Tax) 8/00 at 103 A 3,096,851 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Indiana - 0.8% $ 6,000,000 Hospital Authority of Delaware County (Indiana), Hospital 8/01 at 102 AAA $ 6,497,640 Revenue Bonds, Series 1991 (Ball Memorial Hospital), 6.625%, 8/01/16 (Pre-refunded to 8/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- Kansas - 1.4% 4,070,000 Sedgwick County and Shawnee County, Kansas, Single No Opt. Call Aaa 4,520,793 Family Mortgage Revenue Bonds (Mortgaged-Backed Securities Program), 1997 Series A-1, 6.950%, 6/01/29 (Alternative Minimum Tax) 4,870,000 City of Topeka, Kansas, Variable Rate Demand Industrial 8/16 at 100 AAA 6,855,158 Revenue Refunding Bonds, Series 1988 (Sunwest Hotel Corporation Project), 9.500%, 10/01/16 (Alternative Minimum Tax) (Pre-refunded to 8/15/16) - ---------------------------------------------------------------------------------------------------------------------------------- Kentucky - 2.3% 12,500,000 County of Jefferson, Kentucky, Pollution Control Revenue Bonds, 4/05 at 102 Aa2 13,233,375 1995 Series A (Louisville Gas and Electric Company Project), 5.900%, 4/15/23 1,390,000 Kentucky Housing Corporation, Housing Revenue Bonds 7/00 at 102 AAA 1,450,187 (FHA-Insured/VA Guaranteed), 1990 Series C Bonds, 8.100%, 1/01/22 (Alternative Minimum Tax) 4,500,000 County of Warren, Kentucky, Hospital Revenue Bonds, 4/08 at 101 AAA 4,250,880 Series 1998 (Bowling Green-Warren County Community Hospital Corporation), 4.875%, 4/01/27 - ---------------------------------------------------------------------------------------------------------------------------------- Louisiana - 3.7% 4,285,000 East Baton Rouge Mortgage Finance Authority, Single 8/00 at 102 Aaa 4,450,272 Family Mortgage Revenue Bonds (GNMA Mortgage Backed Securities Program), Series 1990A, 7.875%, 8/01/23 (Alternative Minimum Tax) 4,595,000 East Baton Rouge Mortgage Finance Authority, Single 10/07 at 102 Aaa 4,790,885 Family Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1997D, 5.900%, 10/01/30 (Alternative Minimum Tax) 3,950,000 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 4,643,265 Revenue Bonds (Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/04 11,545,000 Orleans Parish School Board, Public School Refunding No Opt. Call AAA 15,723,828 Bonds, Series 1987, 9.000%, 2/01/09 - ---------------------------------------------------------------------------------------------------------------------------------- Maine - 0.6% 4,880,000 Maine State Housing Authority, Mortgage Purchase Bonds, 10/04 at 102 AA 5,285,186 1994 Series C-2, 6.875%, 11/15/23 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Maryland - 0.3% 2,000,000 City of Gaithersburg (Maryland), First Mortgage Economic 1/00 at 102 N/R*** 2,096,760 Development Revenue Bonds (Asbury Methodist Home, Incorporated Facility), Series 1990, 7.850%, 1/01/20 (Pre-refunded to 1/01/00) - ---------------------------------------------------------------------------------------------------------------------------------- Massachusetts - 11.4% 16,250,000 City of Boston, Massachusetts, Revenue Bonds, Boston 8/00 at 102 Aaa 17,418,863 City Hospital (FHA-Insured Mortgage), Series A, 7.625%, 2/15/21 (Pre-refunded to 8/15/00) 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 4,124,820 5,705,000 9.000%, 7/01/15 7/00 at 102 BBB 6,055,972 535,000 Massachusetts Housing Finance Agency, Residential Housing 8/99 at 102 A- 548,305 Revenue Bonds, 1988 Series B, 8.100%, 8/01/23 (Alternative Minimum Tax) 25,750,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101 AAA 24,575,800 System Revenue Bonds, 1999 Series A (Subordinated), 5.000%, 1/01/39 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 15,883,950 4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 4,231,200 4,000,000 Massachusetts Water Resources Authority, General Revenue 3/03 at 100 AAA 3,896,120 Refunding Bonds, Series 1993, 5.000%, 3/01/22 16,050,000 Massachusetts Water Resources Authority, General Revenue 8/08 at 101 AAA 15,633,342 Refunding Bonds, 1997 Series D, 5.000%, 8/01/24 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Michigan - 1.9% $ 3,650,000 School District of the City of Detroit, Wayne County, Michigan, 5/09 at 101 AAA $ 3,423,554 School Building and Site Improvement Bonds (Unlimited Tax General Obligation), Series 1998A, 4.750%, 5/01/28 10,000,000 City of Detroit, Michigan, Water Supply System Revenue and No Opt. Call AAA 11,952,500 Revenue Refunding Bonds, Series 1993, 6.500%, 7/01/15 - ---------------------------------------------------------------------------------------------------------------------------------- Minnesota - 1.3% 5,000,000 The Dakota County Housing and Redevelopment Authority, No Opt. Call AAA 7,026,600 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) 2,860,000 City of Hopkins, Minnesota, Elderly Housing Revenue 3/04 at 102 AAA 3,223,334 Refunding Bonds (St. Therese Southwest, Inc. Project), Series 1994A, 6.500%, 3/01/19 (Pre-refunded to 3/01/04) - ---------------------------------------------------------------------------------------------------------------------------------- Mississippi - 0.3% 1,685,000 Mississippi Housing Finance Corporation, Single Family Mortgage 10/99 at 102 AAA 1,737,825 Purchase Revenue Bonds, Series 1989 (GNMA Mortgage-Backed Securities Program), 8.250%, 10/15/18 (Alternative Minimum Tax) 720,000 Mississippi Home Corporation, Single Family Senior Revenue 9/00 at 103 AAA 762,264 Refunding Bonds, Series 1990A, 9.250%, 3/01/12 - ---------------------------------------------------------------------------------------------------------------------------------- Missouri - 0.3% 2,125,000 Missouri Housing Development Commission, Single Family 3/07 at 105 AAA 2,409,750 Mortgage Revenue Bonds (Homeownership Loan Program), 1997 Series A, 7.300%, 3/01/28 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Nebraska - 2.2% 3,300,000 Nebraska Higher Education Loan Program, Inc., Student Loan 3/04 at 102 AAA 3,379,794 Program Revenue Bonds, 1993 Series B, 5.875%, 6/01/14 (Alternative Minimum Tax) 13,330,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 14,065,150 Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- New York - 10.2% 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-*** 107,699 9,905,000 6.000%, 10/15/26 10/07 at 101 A- 10,814,675 7,000,000 New York City Municipal Water Finance Authority, 6/06 at 101 AAA 7,523,530 Water and Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 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 10,811,490 11,500,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 Aaa 11,837,065 14,235,000 Dormitory Authority of the State of New York, City University No Opt. Call BBB+ 16,241,423 System Consolidated Second General Resolution Revenue Bonds, Series 1990D, 8.750%, 7/01/02 10,000,000 Dormitory Authority of the State of New York, City University 7/00 at 102 Aaa 10,704,600 System Consolidated, Second General Resolution Revenue Bonds, Series 1990F, 7.875%, 7/01/17 (Pre-refunded to 7/01/00) Dormitory Authority of the State of New York, State University Educational Facilities Revenue Bonds, Series 1989B: 7,935,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 8,407,133 1,025,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 AAA 1,085,988 5,000,000 New York State Medical Care Facilities Finance Agency, 2/00 at 102 AAA 5,259,750 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) - ---------------------------------------------------------------------------------------------------------------------------------- North Carolina - 2.9% 2,795,000 Charlotte Mortgage Revenue Refunding Bonds (FHA-Insured 11/07 at 100 AAA 3,103,344 Mortgage-Double Oaks Apartments), 7.350%, 5/15/26 19,200,000 North Carolina Eastern Municipal Power Agency, 1/07 at 102 AAA 20,637,312 Power System Revenue Refunding, Series 1996 B, 5.875%, 1/01/21 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- North Dakota - 0.2% $ 2,000,000 City of Bismarck, North Dakota, Health Care Revenue Bonds, 7/08 at 102 AAA $ 1,915,560 Series 1998A (St. Alexius Medical Center), 5.000%, 7/01/28 - ---------------------------------------------------------------------------------------------------------------------------------- Oregon - 1.8% 8,990,000 Northern Wasco County Peoples Utility District, Wasco County, 12/03 at 102 Aa1 9,006,991 Oregon, McNary Dam Fishway Hydroelectric Project Revenue Bonds, Series 1993 (Bonneville Power Administration), 5.200%, 12/01/24 2,500,000 State of Oregon, Department of General Services, 9/00 at 102 AAA 2,681,275 Certificates of Participation (1990 Real Property Financing Program), Series F, 7.500%, 9/01/15 (Pre-refunded to 9/01/00) 2,500,000 Hillsboro School District No. 1J, Washington, Multnomah and No Opt. Call Aa3 2,601,025 Yamhill Counties, Oregon, General Obligation Refunding Bonds, Series 1998, 5.000%, 11/01/12 - ---------------------------------------------------------------------------------------------------------------------------------- Pennsylvania - 1.5% 4,905,000 McKean County Hospital Authority, Hospital Revenue Bonds, 10/00 at 102 BBB- 5,345,714 Series of 1990 (Bradford Hospital Project), 8.875%, 10/01/20 7,040,000 City of Philadelphia, Pennsylvania, Water and Wastewater 6/03 at 100 AAA 7,011,558 Revenue Bonds, Series 1993, 5.000%, 6/15/16 - ---------------------------------------------------------------------------------------------------------------------------------- Rhode Island - 3.9% 4,820,000 Newport Housing Development Corporation, 1995 Multifamily 6/03 at 100 AAA 5,392,182 Mortgage Revenue Refunding Bonds (Broadway-West Broadway Apartments, FHA-Insured Mortgage, Section 8 Assisted Project), Series A, 6.800%, 8/01/24 25,250,000 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 26,597,593 Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue, Series 1996, 5.750%, 5/15/23 - ---------------------------------------------------------------------------------------------------------------------------------- South Carolina - 0.4% 3,475,000 South Carolina State Housing Finance and Development 7/00 at 102 AA 3,615,772 Authority, Homeownership Mortgage Purchase Bonds, 1990 Series C, 7.750%, 7/01/22 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Texas - 4.8% 2,000,000 Brazos River Authority (Texas), Collaterlized Pollution 2/00 at 102 BBB+ 2,088,900 Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1990A, 8.125%, 2/01/20 (Alternative Minimum Tax) 3,500,000 Brazos River Authority (Texas), Collateralized Pollution 11/03 at 102 AAA 3,599,050 Control Revenue Refunding Bonds (Texas Utilities Electric Company Project), Series 1993A, 5.500%, 5/01/22 2,260,000 The Cameron County Housing Finance Corporation, 9/00 at 103 AAA 2,374,085 GNMA Collateralized Mortgage Revenue Refunding Bonds, 1990 Series B, 7.850%, 3/01/24 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 1,042,990 2,000,000 7.850%, 8/01/13 8/00 at 102 Baa2 2,085,820 13,175,000 Harris County (Texas), Hospital District Refunding Revenue No Opt. Call AAA 15,817,905 Bonds, Series 1990, 7.400%, 2/15/10 3,500,000 Richardson Hospital Authority (Texas), Hospital Revenue 12/08 at 101 BBB+ 3,380,090 Refunding and Improvement Bonds (Baylor/Richardson Medical Center Project), Series 1998, 5.625%, 12/01/28 8,200,000 Tyler Health Facilities Development Corporation (Texas), Hospital 2/09 at 102 AAA 8,206,396 Revenue Bonds (East Texas Medical Center Regional Healthcare System Project), Series 1997D (Remarketed), 5.375%, 11/01/27 - ---------------------------------------------------------------------------------------------------------------------------------- Washington - 7.6% 11,320,000 State of Washington, General Obligation Bonds, Series 1994A, 10/03 at 100 AA+ 11,278,682 4.750%, 10/01/13 3,000,000 Washington Health Care Facilities Authority, Revenue 7/00 at 102 AAA 3,188,970 Bonds, Series 1990 (Franciscan Health System/St. Francis Community Hospital of Federal Way), 7.250%, 7/01/15 (Pre-refunded to 7/01/00) 2,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/00 at 102 AAA 2,141,100 Refunding Revenue Bonds, Series 1990C, 8.000%, 7/01/17 (Pre-refunded to 7/01/00) Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Washington (continued) 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 $ 1,791,801 1,460,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,499,157 5,650,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/00 at 102 Aaa 5,985,836 Refunding Revenue Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00) 13,900,000 Washington Public Power Supply System, Nuclear Project No. 3, 1/00 at 102 AAA 14,530,226 Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 16,060,000 Washington Public Power Supply System, Nuclear Project No. 3, 7/03 at 102 AAA 16,704,006 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15 4,500,000 Washington Public Power Supply System, Nuclear Project No. 3, 7/03 at 102 Aa1 4,599,090 Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15 - ---------------------------------------------------------------------------------------------------------------------------------- Wisconsin - 0.4% 3,145,000 Wisconsin Housing and Economic Development Authority, 9/99 at 102 AA 3,224,631 Home Ownership Revenue Bonds, 1989 Series B, 7.600%, 3/01/15 - ---------------------------------------------------------------------------------------------------------------------------------- $ 741,425,000 Total Investments - (cost $740,412,432) - 98.7% 800,231,089 ============= Other Assets Less Liabilities - 1.3% 10,577,555 ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $ 810,808,644 ================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
Portfolio of Investments Nuveen Select Quality Municipal Fund, Inc. (NQS) April 30,1999 (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Alabama - 2.1% $ 2,900,000 The Water Works Board of the City of Arab (Alabama), 8/01 at 102 AAA $ 3,151,807 Water Revenue Bonds, Series 1991, 7.050%, 8/01/16 2,625,000 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 2/07 at 100 AAA 2,676,424 Series 1997-A, 5.375%, 2/01/27 10,000,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA 10,201,900 Warrants, Series 1999-A, 5.375%, 2/01/36 - ---------------------------------------------------------------------------------------------------------------------------------- Arkansas - 1.1% 2,950,000 Arkansas Development Finance Authority, Single Family 8/01 at 103 AA 3,094,403 Mortgage Revenue Refunding Bonds, 1991 Series A (FHA-Insured or VA Guaranteed Mortgage Loans), 8.000%, 8/15/11 4,500,000 City of Little Rock, Arkansas, Hotel and Restaurant Gross No Opt. Call A 5,619,105 Receipts Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15 - ---------------------------------------------------------------------------------------------------------------------------------- California - 5.0% 4,000,000 California Health Facilities Financing Authority, Kaiser 10/08 at 102 A 3,869,640 Permanente Revenue Bonds, Series 1998B, 5.000%, 10/01/20 3,125,000 State of California Department of Transportation, Refunding 3/07 at 102 AAA 3,222,875 Certificates of Participation, Series 1997A, 5.250%, 3/01/16 3,785,000 Department of Water and Power of the City of Los Angeles 9/03 at 102 Aa3 3,853,811 (California), Electric Plant Refunding Revenue Bonds, Issue of 1993, 5.375%, 9/01/23 15,800,000 Los Angeles County Metropolitan Transportation Authority 7/01 at 102 Aaa 17,182,026 (California), Proposition A Sales Tax Revenue Refunding Bonds, Series 1993-A, 6.750%, 7/01/20 (Pre-refunded to 7/01/01) 10,000,000 San Joaquin Hills Transportation Corridor Agency, Toll Road 1/07 at 102 AAA 10,147,400 Refunding Revenue Bonds, Series 1997A, 5.250%, 1/15/30 - ---------------------------------------------------------------------------------------------------------------------------------- Colorado - 5.5% City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C: 2,560,000 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,860,518 9,590,000 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 BBB+ 10,349,432 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 5,305,000 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 6,052,421 14,695,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 BBB+ 16,397,857 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 1,040,000 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,161,690 3,960,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 BBB+ 4,319,924 1,080,000 Jefferson County, Colorado, Single Family Revenue 4/01 at 103 AAA 1,143,947 Refunding Bonds, Series 1991A, 8.875%, 10/01/13 - ---------------------------------------------------------------------------------------------------------------------------------- Connecticut - 2.5% Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, Series 1991A: 7,340,000 10.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 103 N/R*** 8,540,751 9,785,000 7.250%, 8/15/21 8/04 at 102 N/R 10,533,553 - ---------------------------------------------------------------------------------------------------------------------------------- District of Columbia - 1.0% 5,000,000 District of Columbia (Washington, D.C.), General Obligation No Opt. Call AAA 5,591,450 Bonds, Series 1998B, 6.000%, 6/01/11 1,615,000 District of Columbia Housing Finance Agency, Collateralized 12/00 at 102 AAA 1,710,075 Series 1990A, 8.100%, 12/01/23 (Alternative Minimum Tax) Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Florida - 2.0% $ 14,250,000 Jacksonville Electric Authority (Jacksonville, Florida), Bulk Power 10/00 at 101 1/2 Aaa $15,117,540 Supply System Revenue Bonds (Scherer 4 Project, Issue One, Series 1991A), 6.750%, 10/01/21 (Pre-refunded to 10/01/00) - ---------------------------------------------------------------------------------------------------------------------------------- Hawaii - 2.3% 16,000,000 Department of Budget and Finance of the State of Hawaii, 7/01 at 102 AAA 17,626,880 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) - ---------------------------------------------------------------------------------------------------------------------------------- Illinois - 5.6% 11,605,000 City of Chicago, General Obligation Bonds (Emergency 1/03 at 102 AAA 12,548,370 Telephone System), Series 1993, 5.625%, 1/01/23 (Pre-refunded to 1/01/03) 5,000,000 City of Chicago, General Obligation Bonds, Project and 1/06 at 102 AAA 4,887,950 Refunding Series 1995B, 5.125%, 1/01/25 30,000,000 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 7,353,600 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A, 0.000%, 12/01/25 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 849,284 6,780,000 7.650%, 12/31/31 1/02 at 105 AAA 7,404,777 1,585,000 Illinois Housing Development Authority, Multi-Family 7/01 at 102 A+ 1,683,191 Housing Bonds, 1991 Series C, 7.400%, 7/01/23 7,375,000 Metropolitan Pier and Exposition Authority (Illinois), No Opt. Call AAA 7,855,481 McCormick Place Expansion Project, Refunding Bonds, Series 1998A, 5.500%, 12/15/23 - ---------------------------------------------------------------------------------------------------------------------------------- Indiana - 2.5% 8,640,000 Avon Community School Building Corporation, First Mortgage 7/04 at 101 AAA 8,868,528 Bonds, Series 1994 (Hendricks County, Indiana), 5.500%, 1/01/16 5,100,000 Beacon Heights Housing Development Corporation, 6/01 at 100 AAA 5,313,537 1991 Multifamily Mortgage Revenue Refunding Bonds, (FHA-Insured Mortgage-Section 8 Assisted Project), Series A, 7.625%, 2/01/21 5,000,000 Indiana Health Facility Financing Authority, Hospital Revenue 5/09 at 101 Aaa 4,785,300 Bonds, Series 1999A (Sisters of St. Francis Health Services, Inc. Project), 5.000%, 11/01/29 1,080,000 Michigan City Housing Development Corporation, 6/01 at 100 AAA 1,118,977 1991 Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage-Section 8 Assisted Project), Series A, 7.625%, 2/01/21 - ---------------------------------------------------------------------------------------------------------------------------------- Kansas - 2.4% 7,875,000 City of Merriam, Kansas, Hospital Refunding Revenue 9/01 at 102 AAA 8,457,435 Bonds, Series 1991C (Shawnee Mission Medical Center, Inc. Project), 7.250%, 9/01/04 (Pre-refunded to 9/01/01) 8,800,000 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, 9/01 at 102 AAA 9,655,008 Series 1991B (Shawnee Mission Medical Center, Inc. Project), 7.250%, 9/01/21 (Pre-refunded to 9/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- Kentucky - 0.4% 3,015,000 Lakeland Wesley Village, Inc., Mortgage Revenue Refunding 11/01 at 103 Aa 3,168,554 Bonds (Lakeland Wesley Village I Elderly-Section 8 Assisted Project/FHA-Insured Mortgage), Series 1991, 7.500%, 11/01/21 - ---------------------------------------------------------------------------------------------------------------------------------- Louisiana - 0.2% 1,360,000 Calcasieu Parish Public Trust Authority (Louisiana), 6/01 at 103 A1 1,437,846 Mortgage Revenue Refunding Bonds, 1991 Series A, 7.750%, 6/01/12 - ---------------------------------------------------------------------------------------------------------------------------------- Massachusetts - 5.3% 7,375,000 Boston Housing Development Corporation, Mortgage Revenue 1/04 at 102 AAA 7,477,070 Refunding Bonds, Series 1994A (FHA- Insured Mortgage Loans- Section 8 Assisted Projects), 5.500%, 7/01/24 5,000,000 Massachusetts Bay Transportation Authority, General 3/07 at 101 AA- 4,833,000 Transportation System Bonds, 1998 Series B, 5.000%, 3/01/28 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Massachusetts (continued) $ 2,000,000 Massachusetts Health and Educational Facilities Authority, 6/01 at 102 A3*** $ 2,224,040 Revenue Bonds, Lowell General Hospital Issue, Series A, 8.400%, 6/01/11 (Pre-refunded to 6/01/01) 19,025,000 Massachusetts Water Resources Authority, General Revenue 4/00 at 100 AAA 19,502,337 Bonds, 1990 Series A, 6.000%, 4/01/20 (Pre-refunded to 4/01/00) 6,300,000 Somerville Housing Authority (Massachusetts), Mortgage 5/00 at 102 AAA 6,558,363 Revenue Bonds, Series 1990 (GNMA Collateralized - Clarendon Hill Towers Project), 7.950%, 11/20/30 - ---------------------------------------------------------------------------------------------------------------------------------- Michigan - 1.7% 3,625,000 Fowlerville Community Schools, Counties of Livingston, 5/07 at 100 AAA 3,973,363 Ingham, and Shiawassee, State of Michigan, 1996 School Building and Site Bonds, 5.600%, 5/01/26 (Pre-refunded to 5/01/07) 7,890,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 8,703,065 Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) - ---------------------------------------------------------------------------------------------------------------------------------- Minnesota - 0.8% 3,465,000 Chisago County, Southcentral Minnesota Multi-County 3/04 at 102 27/32 AAA 3,742,235 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) The Dakota, Washington, and Stearns Counties Housing and Redevelopment Authority, Single Family Mortgage Revenue Refunding Bonds (Fannie Mae Mortgage-Backed Securities Program), Series 1994A: 1,355,000 6.600%, 9/01/17 (Alternative Minimum Tax) 3/04 at 102 AAA 1,437,669 980,000 6.700%, 3/01/21 (Alternative Minimum Tax) 3/04 at 102 AAA 1,040,456 - ---------------------------------------------------------------------------------------------------------------------------------- Mississippi - 0.2% 1,420,000 Goodman Housing Development Corporation, 1991 8/01 at 100 AAA 1,472,284 Multifamily Mortgage Revenue Refunding Bonds, Goodhaven Manor (FHA-Insured Mortgage, Section 8 Assisted Project), Series A, 7.625%, 2/01/22 - ---------------------------------------------------------------------------------------------------------------------------------- Nebraska - 1.5% 10,550,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 11,232,269 Revenue Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Nevada - 1.5% 10,000,000 Clark County School District, Nevada, General Obligation 6/06 at 101 AAA 11,241,300 (Limited Tax), School Improvement Bonds, Series 1996, 6.000%, 6/15/15 - ---------------------------------------------------------------------------------------------------------------------------------- New Jersey - 2.5% 4,420,000 New Jersey Housing and Mortgage Finance Agency, 11/01 at 102 AA+ 4,696,869 Section 8 Bonds, 1991 Series A, 6.850%, 11/01/06 13,920,000 The Pollution Control Financing Authority of Salem County 11/03 at 102 AAA 14,446,037 (New Jersey), Pollution Control Revenue Refunding Bonds, 1993 Series C (Public Service Electric and Gas Company Project), 5.550%, 11/01/33 - ---------------------------------------------------------------------------------------------------------------------------------- New Mexico - 1.4% 10,000,000 City of Farmington, New Mexico, Pollution Control Refunding 4/09 at 102 AAA 9,893,900 Revenue Bonds (Southern California Edison Company-Four Corners Project), 1999 Series A, 5.125%, 4/01/29 935,000 New Mexico Mortgage Finance Authority, Single Family 9/99 at 102 AA- 959,123 Mortgage Program Senior Bonds, 1989 Series A (Federally Insured or Guaranteed Mortgage Loans), 7.800%, 3/01/21 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- New York - 13.2% The City of New York, General Obligation Bonds, Fiscal 1991 Series F: 5,000,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 AAA 5,635,200 7,750,000 8.250%, 11/15/15 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 AAA 8,734,560 4,000,000 The City of New York, General Obligation Bonds, 2/08 at 101 A- 4,113,920 Fiscal 1998 Series F, 5.250%, 8/01/14 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-*** 102,030 9,200,000 6.000%, 10/15/26 10/07 at 101 A- 10,044,928 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- New York (continued) $ 11,240,000 The City of New York (New York), General Obligation Bonds, 3/09 at 101 A- $11,423,212 Fiscal 1999 Series H, 5.250%, 3/15/16 5,000,000 New York City Health and Hospitals Corporation, Health System 2/09 at 101 AAA 4,907,700 Bonds, 1999 Series A, 5.000%, 2/15/20 10,000,000 Dormitory Authority of the State of New York, Mental Health 8/08 at 101 AAA 9,801,600 Services Facilities Improvement Revenue Bonds, Series 1998D, 5.000%, 2/15/23 6,000,000 New York Local Government Assistance Corporation (A Public 4/02 at 102 AAA 6,669,360 Benefit Corporation of the State of New York), Series 1991D Bonds, 7.000%, 4/01/18 (Pre-refunded to 4/01/02) 100,000 New York State Medical Care Facilities Finance Agency, Hospital 8/99 at 101 AAA 102,392 and Nursing Home, FHA-Insured Mortgage Revenue Bonds, Series 1988, 8.000%, 2/15/28 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-*** 1,127,100 595,000 7.600%, 2/15/06 8/01 at 102 A- 652,275 1,010,000 7.600%, 8/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A-*** 1,116,050 580,000 7.600%, 8/15/06 8/01 at 102 A- 635,831 5,970,000 7.625%, 8/15/17 (Pre-refunded to 8/15/01) 8/01 at 102 A-*** 6,600,074 1,980,000 7.625%, 8/15/17 8/01 at 102 A- 2,167,268 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-*** 5,997,785 40,000 7.400%, 2/15/18 2/02 at 102 A- 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 13,424,732 6,000,000 New York State Urban Development Corporation, Correctional 1/01 at 102 Aaa 6,496,140 Capital Facilities Revenue Bonds, Series 2, 7.500%, 1/01/18 (Pre-refunded to 1/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- North Carolina - 3.1% 5,000,000 North Carolina Medical Care Commission, Health Care Revenue 10/08 at 101 AAA 4,868,300 Bonds (Novant Health Project), Series 1998B, 5.000%, 10/01/28 18,555,000 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 100 AAA 18,889,176 Revenue Bonds, Refunding Series 1993B, 5.500%, 1/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- Ohio - 1.0% 5,000,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101 Baa1 4,787,100 Ohio, Hospital Facilities Revenue Bonds, Series 1998A (Summa Health System Project), 5.375%, 11/15/18 1,230,000 Toledo-Lucas County Port Authority, Development Revenue 11/00 at 102 N/R 1,279,102 Bonds (Northwest Ohio Bond Fund), Series 1989C, 8.400%, 11/15/09 (Alternative Minimum Tax) 1,550,000 Toledo-Lucas County Port Authority, Development Revenue 5/99 at 100 N/R 1,554,309 Bonds (Northwest Ohio Bond Fund), Series 1989D, 8.500%, 11/15/00 (Alternative Minimum Tax) 165,000 Toledo-Lucas County Port Authority, Development Revenue No Opt. Call N/R*** 169,752 Bonds (Northwest Ohio Bond Fund), Series 1990D, 8.500%, 5/15/00 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Oklahoma - 4.0% 7,800,000 Oklahoma County Home Finance Authority (Oklahoma), 7/01 at 102 Aaa 8,226,036 Single Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 21,025,000 Trustees of the Tulsa Municipal Airport Trust, Revenue 6/01 at 102 Baa2 22,669,155 Bonds, Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Pennsylvania - 1.7% 2,000,000 Philadelphia Authority for Industrial Development, Airport 7/08 at 101 AAA 1,917,300 Revenue Bonds, Series 1998A (Philadelphia Airport System Project), 5.000%, 7/01/23 (Alternative Minimum Tax) 10,000,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue 8/01 at 100 AAA 10,738,800 Bonds, Sixteenth Series, 7.000%, 8/01/18 (Pre-refunded to 8/01/01) Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Rhode Island - 0.9% $ 7,500,000 Rhode Island Health and Educational Building Corporation, 4/09 at 101 AAA $ 7,201,875 Higher Education Facility Revenue Bonds, Johnson and Wales University Issue, Series 1999, 5.000%, 4/01/29 - ---------------------------------------------------------------------------------------------------------------------------------- South Carolina - 1.3% 5,000,000 Charleston County, South Carolina, Revenue Bonds, 8/09 at 101 AAA 4,846,400 Series 1999A (CareAlliance Health Services), 5.000%, 8/15/28 5,000,000 Oconee County, South Carolina, Pollution Control Facilities 4/03 at 102 Aa2 5,322,600 Revenue Refunding Bonds, Series 1993 (Duke Power Company Project), 5.800%, 4/01/14 - ---------------------------------------------------------------------------------------------------------------------------------- South Dakota - 2.0% 7,490,000 City of Sioux Falls, South Dakota, Revenue Refunding Bonds, 10/14 at 100 AAA 9,845,305 Series 1989 (Great Plains Hotel Corporation Project), 8.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded to 10/15/14) 5,000,000 South Dakota Housing Development Authority, Homeownership 11/06 at 102 AAA 5,354,100 Mortgage Bonds, 1996 Series D, 6.300%, 5/01/27 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Tennessee - 2.4% 7,220,000 The Metropolitan Government of Nashville and Davidson 5/02 at 102 AAA 7,869,872 County (Tennessee), General Obligation Multi-Purpose Improvement Bonds, Series 1994, 6.150%, 5/15/25 (Pre-refunded to 5/15/02) 5,500,000 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call AAA 5,547,740 Bonds, Series 1998A, 4.500%, 9/01/08 4,420,000 Tennessee Housing Development Agency, Homeownership 7/01 at 102 AA 4,595,386 Program Bonds, Issue V, 7.650%, 7/01/22 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Texas - 5.9% 8,580,000 Brazos River Authority (Texas), Collaterlized Pollution 2/00 at 102 BBB+ 8,961,381 Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1990A, 8.125%, 2/01/20 (Alternative Minimum Tax) 3,500,000 Comal County Health Facilities Development Corporation, 1/01 at 102 AAA 3,710,035 Hospital Revenue Refunding Bonds (McKenna Memorial Hospital, FHA-Insured Project), Series 1991, 7.375%, 1/15/21 8,475,000 El Paso Housing Finance Corporation, Single Family Mortgage 4/01 at 103 A2 9,258,344 Revenue Refunding Bonds, Series 1991A, 8.750%, 10/01/11 2,280,000 The Harrison County Finance Corporation, Single Family 12/01 at 103 A1 2,409,686 Mortgage Revenue Refunding Bonds, Series 1991, 8.875%, 12/01/11 5,000,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/08 at 100 AAA 4,792,000 Bonds, Series 1998B, 5.000%, 7/01/25 (Alternative Minimum Tax) 9,000,000 Matagorda County Navigation District Number One (Texas), No Opt. Call AAA 8,892,000 Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1997, 5.125%, 11/01/28 (Alternative Minimum Tax) 2,395,000 Panhandle Regional Housing Finance Corporation, Single Family 5/01 at 100 AAA 2,464,575 Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1991A, 7.500%, 5/01/24 (Alternative Minimum Tax) 4,560,000 Winter Garden Housing Finance Corporation, Single Family 4/04 at 103 AAA 4,892,789 Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1994, 6.950%, 10/01/27 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Utah - 4.0% 13,650,000 Intermountain Power Agency, Power Supply Revenue Refunding 7/03 at 102 AAA 13,967,499 Bonds, 1993 Series A, 5.500%, 7/01/20 16,550,000 Utah County, Utah, Hospital Revenue Bonds, Series 1997 8/07 at 101 AAA 16,347,594 (IHC Health Services, Inc.), 5.250%, 8/15/26 - ---------------------------------------------------------------------------------------------------------------------------------- Washington - 9.9% Municipality of Metropolitan Seattle, Washington, Sewer Refunding Revenue Bonds, Series Z: 2,160,000 5.450%, 1/01/16 1/03 at 102 AAA 2,222,230 3,095,000 5.450%, 1/01/17 1/03 at 102 AAA 3,174,913 2,490,000 5.450%, 1/01/19 1/03 at 102 AAA 2,532,131 1,800,000 5.450%, 1/01/20 1/03 at 102 AAA 1,827,450 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 1/00 at 102 AAA 4,185,280 Refunding Revenue Bonds, Series 1989B, 7.400%, 7/01/09 (Pre-refunded to 1/01/00) Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Washington (continued) $ 10,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/07 at 102 AAA $10,086,100 Refunding Revenue Bonds, Series 1997A, 5.125%, 7/01/16 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 Aaa 8,621,823 2,130,000 6.250%, 7/01/12 7/02 at 102 Aa1 2,298,482 2,000,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/00 at 102 AAA 2,126,920 Refunding Revenue Bonds, Series 1990A, 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 5,000,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/00 at 102 Aaa 5,297,200 Refunding Revenue Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00) 5,000,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/04 at 102 Aa1 5,186,100 Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/11 24,060,000 Washington Public Power Supply System, Nuclear Project No. 3, 1/00 at 102 AAA 25,150,880 Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 2,935,000 Washington Public Power Supply System, Nuclear Project No. 3, 7/03 at 102 Aa1 2,999,628 Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15 - ---------------------------------------------------------------------------------------------------------------------------------- Wisconsin - 1.6% 11,080,000 Wisconsin Center District, Junior Dedicated Tax Revenue Bonds, 12/06 at 101 A*** 12,282,180 Series 1996B, 5.750%, 12/15/27 (Pre-refunded to 12/15/06) - ---------------------------------------------------------------------------------------------------------------------------------- $ 735,125,000 Total Investments - (cost $702,372,600) - 98.5% 752,412,374 ============= Other Assets Less Liabilities - 1.5% 11,842,532 ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $764,254,906 ================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
Portfolio of Investments Nuveen Quality Income Municipal Fund, Inc. (NQU) April 30,1999 (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Alabama - 2.9% $ 5,180,000 Alabama Drinking Water Finance Authority, Revolving Fund 9/08 at 100 AAA $ 4,973,577 Loan Bonds, Series 1998A, 4.850%, 8/15/22 6,500,000 The Governmental Utility Services Corporation of the 6/08 at 102 AAA 6,524,180 City of Bessemer (Alabama), Water Supply Revenue Bonds, Series 1998, 5.200%, 6/01/24 17,000,000 The Industrial Development Board of the Town of Courtland, 6/05 at 102 Baa1 17,893,690 Pollution Control Refunding Revenue Bonds (Champion International Corporation Project), Series 1995, 6.150%, 6/01/19 6,480,000 The Industrial Development Board of the Town of Courtland, 10/08 at 102 Baa1 6,312,038 Solid Waste Disposal Revenue Bonds (Champion International Corporation Project), Refunding Series 1998A, 5.700%, 10/01/28 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Alaska - 1.8% 6,750,000 Alaska Housing Finance Corporation, General Housing 12/02 at 102 Aa2*** 7,499,318 Purpose Bonds, 1992 Series A, 6.600%, 12/01/23 (Pre-refunded to 12/01/02) 14,590,000 Alaska State Housing Finance Corporation, 12/05 at 102 AAA 15,295,135 Governmental Purpose Bonds, 1995 Series A, 5.875%, 12/01/30 - ---------------------------------------------------------------------------------------------------------------------------------- Arizona - 0.5% 5,375,000 Yuma Regional Medical Center on Behalf of Hospital 8/02 at 101 1/2 N/R*** 6,147,388 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) - ---------------------------------------------------------------------------------------------------------------------------------- Arkansas - 0.9% 2,660,000 Arkansas Development Finance Authority, Single Family 8/01 at 103 AA 2,790,207 Mortgage Revenue Refunding Bonds, 1991 Series A (FHA-Insured or VA Guaranteed Mortgage Loans), 8.000%, 8/15/11 5,990,000 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 6,450,152 Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program), 6.700%, 7/01/27 (Alternative Minimum Tax) 1,435,000 Little River County, Arkansas, Refunding Revenue Bonds 10/07 at 102 Baa2 1,440,998 (Georgia-Pacific Corporation Project), Series 1998, 5.600%, 10/01/26 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- California - 10.4% 10,580,000 Brea Public Financing Authority, Orange County, California, 8/01 at 102 AAA 11,588,591 1991 Tax Allocation Revenue Bonds, Series A (Redevelopment Project AB), 7.000%, 8/01/15 (Pre-refunded to 8/01/01) 4,420,000 Brea Public Financing Authority, Tax Allocation, 7.000%, 8/01/15 8/01 at 102 AAA 4,804,098 3,475,000 California Housing Finance Agency, Home Mortgage Revenue 8/01 at 102 AA- 3,650,279 Bonds, 1991 Series G, 7.050%, 8/01/27 (Alternative Minimum Tax) 5,860,000 California Housing Finance Agency, Multifamily Housing 8/08 at 101 1/2 AAA 5,973,098 Revenue Bonds III, 1998 Series A, 5.450%, 8/01/28 (Alternative Minimum Tax) 3,000,000 California Health Facilities Financing Authority, Kaiser 5/03 at 102 A 3,049,620 Permanente Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 13,750,000 State of California, General Obligation Bonds, 4.500%, 12/01/18 12/08 at 101 Aa3 12,872,613 5,000,000 State of California, Veterans General Obligation Bonds, Series BH, 12/03 at 102 AA- 5,135,300 5.600%, 12/01/32 (Alternative Minimum Tax) 9,250,000 State of California, Veterans General Obligation Bonds, Series BL, 12/08 at 101 Aa3 9,498,455 5.300%, 12/01/12 (Alternative Minimum Tax) 10,500,000 State of California, General Obligation Refunding Bonds, 2/08 at 101 Aa3 10,328,220 5.000%, 2/01/21 10,000,000 State of California, Veterans General Obligation Bonds, 12/03 at 101 Aa3 10,148,400 Series BN (Non-AMT), 5.450%, 12/01/28 3,500,000 State Public Works Board of the State of California, 10/02 at 102 Aaa 3,911,040 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) Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- California (continued) $ 17,000,000 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa $20,043,170 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) 2,500,000 The Community Redevelopment Agency of the City of 7/00 at 100 BBB*** 2,533,425 Los Angeles, California, Central Business District Redevelopment Project, Tax Allocation Refunding Bonds, Series G, 6.750%, 7/01/10 3,000,000 Department of Water and Power of the City of Los Angeles, 4/02 at 102 AA*** 3,282,240 California, Water Works Revenue Bonds, Issue of 1992, 6.500%, 4/15/32 6,700,000 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102 AAA 7,275,597 Participation, Series A, 6.000%, 7/01/26 2,000,000 City of Redwood, City Public Financing Authority, 7/01 at 102 A-*** 2,195,640 1991 Local Agency Revenue Bonds, Series B, 7.250%, 7/15/11 (Pre-refunded to 7/15/01) 9,190,000 City of San Jose Financing Authority (Santa Clara County, 9/01 at 102 A+ 9,747,557 California), 1993 Revenue Bonds, Series C (Convention Center Refunding Project), 6.400%, 9/01/22 2,705,000 Southern California Home Financing Authority, Single Family 3/01 at 102 AAA 2,832,189 Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program), 1991 Issue A, 7.350%, 9/01/24 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Colorado - 4.6% 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 BBB+ 9,442,885 15,910,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 BBB+ 17,023,382 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 3,425,000 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 3,907,548 9,485,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 BBB+ 10,584,122 3,040,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 BBB+ 3,284,051 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 BBB+ 3,452,667 3,825,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 BBB+ 4,046,009 5,110,000 County of Pueblo, Colorado, Hospital Refunding and Improvement 9/01 at 100 N/R*** 5,625,241 Revenue Bonds (Parkview Episcopal Medical Center, Inc. Project), Series 1991B, 8.300%, 9/01/11 (Pre-refunded to 9/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- Florida - 1.2% 5,250,000 Dade County Industrial Development Authority, Solid Waste 2/01 at 102 AA- 5,624,325 Disposal Revenue Bonds (Florida Power and Light Company Project), Series 1991, 7.150%, 2/01/23 (Alternative Minimum Tax) 8,485,000 St. Lucie County, Florida, Solid Waste Disposal Revenue 2/01 at 102 AA- 9,080,902 Bonds (Florida Power and Light Company Project), Series 1991, 7.150%, 2/01/23 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Georgia - 2.0% 2,900,000 Clayton County Hospital Authority, Revenue Anticipation 8/01 at 102 AAA 3,134,726 Certificates (Southern Regional Medical Center Project), Georgia, Series 1991, 6.500%, 8/01/10 (Pre-refunded to 8/01/01) 4,500,000 Clayton County Hospital Authority, Revenue Anticipation 8/01 at 102 AAA 4,912,470 Certificates (Southern Regional Medical Center Project), Georgia, Series 1991, 7.000%, 8/01/13 (Pre-refunded to 8/01/01) 15,900,000 The Fulton-De Kalb Hospital Authority, Georgia, Revenue 1/01 at 102 AAA 17,048,139 Certificates, Series 1991 (Grady Memorial Hospital), 6.900%, 1/01/20 (Pre-refunded to 1/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- Illinois - 9.6% Central Lake County Joint Action Water Agency, Lake County, Illinois, Water Revenue Bonds, Series 1990A: 6,000,000 7.000%, 5/01/19 (Pre-refunded to 5/01/00) 5/00 at 102 AAA 6,334,500 10,000,000 7.000%, 5/01/20 (Pre-refunded to 5/01/01) 5/01 at 102 AAA 10,846,700 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 4,300,876 4,400,000 0.000%, 12/01/15 No Opt. Call AAA 1,899,260 6,260,000 City of Chicago, Chicago-O'Hare International Airport, Special 11/00 at 103 Baa2 6,854,637 Facility Revenue Bonds (United Air Lines, Inc. Project), Series 1984B, 8.850%, 5/01/18 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Illinois (continued) $ 24,430,000 The County of Cook, Illinois, General Obligation Bonds, 11/01 at 102 AAA $26,730,817 Series 1991, 6.750%, 11/01/18 (Pre-refunded to 11/01/01) Illinois Development Finance Authority, Multi-Family Housing Revenue Bonds, Series 1992 (Town and Garden Apartments Project): 5,350,000 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 BBB+ 5,788,112 1,150,000 7.200%, 9/01/08 (Alternative Minimum Tax) 3/02 at 102 BBB+ 1,226,234 11,000,000 Illinois Health Facilities Authority, Hospital Revenue Bonds, 11/03 at 102 AAA 12,643,950 Series 1993-A (Hindsdale Hospital), 7.000%, 11/15/19 2,800,000 Illinois Housing Development Authority, Section 8 Elderly 9/02 at 102 A 2,955,316 Housing Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 5,265,000 Illinois Health Facilities Authority (Rockford Memorial Hospital), 8/01 at 100 AAA 5,540,833 Revenue Refunding Bonds, Series 1991A, 6.000%, 8/15/21 (Pre-refunded to 8/15/01) 14,500,000 Illinois Health Facilities Authority, Revenue Bonds, 8/01 at 102 AA 15,658,550 Series 1991 (Northwestern Memorial Hospital), 6.750%, 8/15/11 3,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 8/01 at 102 AAA 3,258,210 Series 1991 (Sherman Hospital Project), 6.750%, 8/01/21 (Pre-refunded to 8/01/01) 3,590,000 Joliet Regional Port District Airport Facilities, Revenue Bonds, 7/07 at 103 N/R 3,782,639 Lewis University Airport, Series 1997A, 7.250%, 7/01/18 (Alternative Minimum Tax) 10,575,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/02 at 100 AAA 11,172,170 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992A, 6.125%, 6/01/22 - ---------------------------------------------------------------------------------------------------------------------------------- Indiana - 1.0% 5,905,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/01 at 102 AAA 6,427,356 Bonds, Series 1992 (Community Hospitals Projects), 7.000%, 7/01/11 (Pre-refunded to 7/01/01) 5,125,000 City of Petersburg, Indiana, Pollution Control Refunding Revenue 12/04 at 102 Aa2 5,749,533 Bonds, Series 1995A (Indianapolis Power and Light Company Project), 6.625%, 12/01/24 - ---------------------------------------------------------------------------------------------------------------------------------- Iowa - 0.4% 4,500,000 Polk County, Iowa, Health Facilities Revenue Bonds, Catholic 11/01 at 101 AAA 4,882,590 Health Corporation (Mercy Health Center of Central Iowa Project), Series 1991, 6.750%, 11/01/15 (Pre-refunded to 11/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- Kansas - 1.5% City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991B (Shawnee Mission Medical Center, Inc. Project): 7,380,000 7.250%, 9/01/11 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 8,097,041 10,000,000 7.250%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 10,971,600 - ---------------------------------------------------------------------------------------------------------------------------------- Kentucky - 2.0% 10,000,000 City of Danville, Kentucky, Multi-City Lease Revenue Bonds 3/02 at 102 AAA 11,031,300 (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) 3,000,000 Kentucky Development Finance Authority, Hospital Facilities 9/01 at 102 N/R*** 3,280,320 Revenue Bonds, Series 1991 (St. Claire Medical Center, Inc. Project), 7.125%, 9/01/21 (Pre-refunded to 9/01/01) 10,085,000 Kentucky Housing Corporation, Housing Revenue Bonds 1/05 at 102 AAA 10,809,103 (Federally Insured or Guaranteed Mortgage Loans), 1995 Series B, 6.625%, 7/01/26 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- 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 13,828,193 3,985,000 7.450%, 4/01/32 (Alternative Minimum Tax) 4/01 at 102 Aa2 4,168,031 3,385,000 Community Development Administration, Department of Housing 5/01 at 102 Aa2 3,554,758 and Community Development, State of Maryland, Multi-Family Housing Revenue Bonds (Insured Mortgage Loans), 1991 Series E, 7.100% 5/15/28 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Massachusetts - 7.3% $ 8,185,000 Boston Water and Sewer Commission, General Revenue Bonds 11/08 at 101 AAA $ 7,715,099 (Senior Series), 1998 Series D, 4.750%, 11/01/22 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 11,041,160 19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 21,164,472 15,000,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 16,577,550 Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 3,300,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,647,028 Revenue Bonds (SEMASS Project), Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 6,000,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB 6,012,360 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) 26,000,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 24,833,380 System Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37 - ---------------------------------------------------------------------------------------------------------------------------------- Michigan - 3.3% 7,000,000 City of Grand Rapids, Michigan, Water Supply System 1/01 at 102 AAA 7,398,860 Refunding Revenue Bonds, Series 1991, 6.250%, 1/01/11 5,000,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 5,515,250 Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) 8,500,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102 BBB+ 9,125,090 (Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) 16,875,000 Michigan Strategic Fund Limited Obligation Refunding Revenue 12/01 at 102 AAA 18,334,688 Bonds (The Detroit Edison Company Pollution Control Bonds Project), Collateralized Series 1991DD, 6.875%, 12/01/21 - ---------------------------------------------------------------------------------------------------------------------------------- Minnesota - 1.0% 3,655,000 The Dakota County Housing and Redevelopment Authority, No Opt. Call AAA 5,136,445 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) 4,440,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/04 at 102 AA 4,740,100 1994 Series J, 6.950%, 7/01/26 (Alternative Minimum Tax) 2,430,000 Washington County Housing and Redevelopment Authority, 8/01 at 102 AAA 2,569,774 Multifamily Housing Revenue Bonds (FHA-Insured Mortgage Loan-Cottages Phase III Project), Series 1991, 7.650%, 8/01/32 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Mississippi - 0.6% 3,310,000 Canton Housing Development Corporation, 1990 Multifamily No Opt. Call AAA 4,164,907 Mortgage Revenue Refunding Bonds (Canton Estates Apartments Project, FHA-Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/24 1,195,000 Charter Mortgage Corporation, 1990 Multifamily Mortgage 8/01 at 100 AAA 1,485,767 Revenue Refunding Bonds (Church Garden Apartments, FHA-Insured Mortgage Section 8 Assisted Project), Series A, 7.750%, 8/01/21 1,315,000 Pearl Housing Development Corporation, 1990 Multifamily 12/00 at 100 AAA 1,348,625 Mortgage Revenue Refunding Bonds (Rose Garden Apartments Project, FHA-Insured Mortgage, Section 8 Assisted Project), Series A, 7.750% 8/01/22 - ---------------------------------------------------------------------------------------------------------------------------------- Missouri - 1.7% 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 6,024,751 5,605,000 7.000%, 7/01/22 7/02 at 102 Baa1 5,985,916 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+ 2,192,484 6,500,000 8.125%, 10/01/10 10/99 at 102 1/2 BBB+ 6,783,530 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Montana - 0.6% $ 7,000,000 City of Forsyth, Rosebud County, Montana, Pollution Control Revenue 8/01 at 102 AAA $ 7,563,570 Refunding Bonds (Puget Sound, Power and Light Company-Colstrip Project), Series 1992, 7.050%, 8/01/21 - ---------------------------------------------------------------------------------------------------------------------------------- Nebraska - 1.6% 11,000,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 11,711,370 Revenue Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) 8,000,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 8,441,200 Revenue Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- New Hampshire - 0.3% 3,310,000 New Hampshire Housing Finance Authority, Single Family Residential 7/01 at 102 Aa3 3,466,398 Mortgage Bonds, 1991 Series C, 7.100%, 1/01/23 - ---------------------------------------------------------------------------------------------------------------------------------- New Jersey - 1.1% 13,000,000 Pollution Control Financing Authority of Camden County 12/01 at 102 B2 13,047,450 (New Jersey), Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991 D, 7.250%, 12/01/10 - ---------------------------------------------------------------------------------------------------------------------------------- New York - 14.3% 1,495,000 Dutchess County Resource Recovery Agency, New York, 1/10 at 102 AAA 1,547,534 Solid Waste System Revenue Bonds, Tax Exempt Forward Series 1999A, 5.450%, 1/01/14 (DD, settling 10/15/99) 2,145,000 Niagara Falls Housing and Commercial Rehabilitation Corporation, No Opt. Call AA 2,555,725 1992 Multifamily Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-Section 8 Assisted Project), 7.350%, 8/01/23 6,000,000 The City of New York, General Obligation Bonds, 8/07 at 101 A- 6,613,200 Fiscal 1997 Series H, 6.125%, 8/01/25 5,475,000 The City of New York, General Obligation Bonds, 8/04 at 101 Aaa 6,392,829 Fiscal 1995 Series B, 7.250%, 8/15/19 (Pre-refunded to 8/15/04) 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-*** 1,873,757 9,330,000 6.000%, 2/15/24 2/06 at 101 1/2 A- 10,092,728 6,700,000 The City of New York, General Obligation Bonds, 2/05 at 101 A-*** 7,644,633 Fiscal 1995 Series F, 6.625%, 2/15/25 (Pre-refunded to 2/15/05) 5,660,000 The City of New York, General Obligation Bonds, 10/02 at 101 1/2 A-*** 6,291,147 Fiscal 1993 Series B, 6.750%, 10/01/17 (Pre-refunded to 10/01/02) 14,190,000 New York City Municipal Water Finance Authority, Water and 6/05 at 101 AAA 15,289,725 Sewer System Revenue Bonds, Fiscal 1996 Series A, 5.875%, 6/15/25 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- 13,734,500 11,750,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 12,502,823 8,325,000 Dormitory Authority of the State of New York, Menorah Campus, 8/01 at 102 AA*** 9,161,413 Inc., FHA-Insured Mortgage Revenue Bonds, Series 1991, 7.400%, 2/01/31 (Pre-refunded to 8/01/01) 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- 13,877,556 5,000,000 5.750%, 2/15/27 2/07 at 102 A- 5,317,000 4,550,000 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 A- 4,708,067 Services Facilities Improvement Revenue Bonds, Series 1997B, 5.500%, 8/15/17 21,075,000 New York Local Government Assistance Corporation, New York, 4/01 at 102 AAA 23,005,681 Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) 8,000,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 9,153,680 New York Hospital, FHA-Insured Mortgage Revenue Bonds, 1994 Series A, 6.500%, 8/15/29 (Pre-refunded to 2/15/05) 5,000,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 5,810,700 Hospital Medical Center, Secured Hospital Revenue Bonds, Series 1995-A, 6.850%, 2/15/17 (Pre-refunded to 2/15/05) Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- New York (continued) New York State Medical Care Facilities Finance Agency, FHA-Insured Mortgage Project Revenue Bonds, 1995 Series F: $ 4,320,000 6.200%, 8/15/15 8/05 at 102 AA $ 4,697,741 4,250,000 6.300%, 8/15/25 8/05 at 102 AA 4,642,020 8,025,000 New York State Thruway Authority, General Revenue Bonds, 1/05 at 102 AAA 8,961,839 Series C, 6.000%, 1/01/25 (Pre-refunded to 1/01/05) 3,305,000 Penfield-Crown Oak Housing Development Corporation, 2/03 at 100 AAA 3,504,787 1991 Multifamily Mortgage Revenue Refunding Bonds (Crown Oak Estates, FHA-Insured Mortgage Section 8 Assisted Project), Series A, 7.350%, 8/01/23 - ---------------------------------------------------------------------------------------------------------------------------------- North Carolina - 0.9% 10,500,000 North Carolina Eastern Municipal Power Agency, Power System 1/02 at 102 Baa1 11,085,270 Revenue Bonds, Refunding Series 1991 A, 6.250%, 1/01/03 - ---------------------------------------------------------------------------------------------------------------------------------- Ohio - 1.0% 4,800,000 County of Butler, Ohio, Hospital Facilities Revenue Refunding 1/02 at 102 BBB- 5,125,872 and Improvement Bonds, Series 1991 (Fort Hamilton-Hughes Memorial Hospital Center), 7.500%, 1/01/10 6,330,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102 AAA 6,796,015 Bonds (GNMA Mortgage-Backed Securities Program), 1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Oklahoma - 4.3% 7,890,000 Oklahoma County Home Finance Authority (Oklahoma), 7/01 at 102 Aaa 8,320,952 Single Family Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 17,510,000 Pottawatomie County Home Finance Authority (Oklahoma), No Opt. Call AAA 23,739,358 Municipal Refunding Collateralized Mortgage Obligations, Series 1991A, 8.625%, 7/01/10 10,000,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable 12/00 at 102 Baa2 10,650,600 Rate Revenue Obligations, 7.375%, 12/01/20 (Alternative Minimum Tax) 10,100,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, 6/01 at 102 Baa2 10,889,820 Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- 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 3,392,532 3,000,000 7.000%, 8/01/22 8/02 at 102 AAA 3,188,790 - ---------------------------------------------------------------------------------------------------------------------------------- Rhode Island - 0.4% 5,260,000 Rhode Island Housing and Mortgage Finance Corporation, 10/99 at 101 Aa2 5,321,332 Mortgage Finance Revenue Bonds, 1988 Series A (Corporation Supplemental Insurance Program), 8.250%, 10/01/08 - ---------------------------------------------------------------------------------------------------------------------------------- South Carolina - 0.6% 6,500,000 Lexington County Health Services District, Inc., 10/01 at 102 AAA 7,098,130 South Carolina, Hospital Revenue Bonds, Series 1991, 6.750%, 10/01/18 (Pre-refunded to 10/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- Tennessee - 0.9% 10,300,000 Metropolitan Nashville Airport Authority (Tennessee), 7/01 at 102 AAA 11,100,825 Airport Improvement Revenue Bonds, Refunding Series 1991C, 6.625%, 7/01/07 - ---------------------------------------------------------------------------------------------------------------------------------- Texas - 6.7% 14,360,000 Alliance Airport Authority, Inc., Special Facilities Revenue 12/00 at 102 Baa2 15,321,546 Bonds, Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) Arlington Independent School District (Tarrant County, Texas), Unlimited Tax Refunding and Improvement Bonds, Series 1995: 8,225,000 0.000%, 2/15/11 (Pre-refunded to 2/15/05) 2/05 at 71 15/16 Aaa 4,659,709 3,410,000 0.000%, 2/15/11 2/05 at 71 15/16 Aaa 1,848,391 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Texas (continued) Arlington Independent School District (Tarrant County, Texas), Unlimited Tax Refunding and Improvement Bonds, Series 1995: $ 9,880,000 0.000%, 2/15/14 (Pre-refunded to 2/15/05) 2/05 at 58 25/32 Aaa $ 4,573,254 4,105,000 0.000%, 2/15/14 2/05 at 58 25/32 Aaa 1,799,632 6,500,000 Bell County Health Facilities Development Corporation, 11/08 at 101 A- 6,243,380 Retirement Facility Revenue Bonds (Buckner Retirement Services, Inc. Obligated Group Project), Series 1998, 5.250%, 11/15/19 5,600,000 Dallas-Fort Worth International Airport, Facility Improvement 11/00 at 102 Baa2 5,961,872 Corporation, American Airlines, Inc. Revenue Bonds, Series 1990, 7.500%, 11/01/25 (Alternative Minimum Tax) 7,130,000 Fort Worth Housing Finance Corporation, Home Mortgage Revenue 10/01 at 103 Aa 7,606,783 Refunding Bonds, Series 1991A, 8.500%, 10/01/11 7,815,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/01 at 102 AAA 8,455,986 Bonds, Series 1991B, 6.625%, 7/01/22 (Pre-refunded to 7/01/01) 17,345,000 City of Houston, Texas, Water and Sewer System, Junior Lien 12/01 at 102 AAA 18,655,068 Revenue Refunding Bonds, Series 1991C, 6.375%, 12/01/17 7,650,000 Port of Corpus Christi Authority of Nueces County, Texas, Revenue 5/06 at 101 BBB- 7,622,078 Refunding Bonds, Series 1992 (Union Pacific Corporation Project), 5.350%, 11/01/10 - ---------------------------------------------------------------------------------------------------------------------------------- Utah - 0.5% 5,800,000 Carbon County, Utah, Solid Waste Disposal Refunding 2/05 at 102 BBB 6,515,430 Revenue Bonds (Laidlaw Inc./ECDC Environmental, L.C. Project), 1995 Series A, 7.500%, 2/01/10 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Virginia - 1.0% 3,860,000 Industrial Development Authority of the City of Roanoke, 7/00 at 100 AAA 3,995,602 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) 8,320,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ 8,703,136 Mortgage Bonds, 1992 Series A, 7.150%, 1/01/33 - ---------------------------------------------------------------------------------------------------------------------------------- Washington - 7.5% 3,010,000 Camas School District No. 117, Clark County, Washington, 12/05 at 100 AAA 3,356,330 Unlimited Tax General Obligation Bonds, Series of 1995, 6.000%, 12/01/14 (Pre-refunded to 12/01/05) 4,185,000 Public Utility District No. 1 of Douglas County, Washington, 9/06 at 106 A+ 5,443,261 Wells Hydro-Electric Revenue Bonds, Series of 1986, 8.750%, 9/01/18 12,415,000 Federal Way School District No. 210, King County, Washington, 12/03 at 100 A1*** 14,050,055 Unlimited Tax General Obligation Bonds, Series of 1991, 6.950%, 12/01/11 (Pre-refunded to 12/01/03) 1,675,000 Spokane Downtown Foundation, Parking Revenue Bonds, 8/08 at 102 BBB- 1,656,842 Series of 1998 (River Park Square Project), 5.600%, 8/01/19 4,000,000 North Thurston School District No. 3, Thurston County, Washington, 12/02 at 100 A 4,330,840 Unlimited Tax General Obligation Bonds, Series of 1992, 6.500%, 12/01/09 4,750,000 Washington Health Care Facilities Authority, Revenue Bonds, 1/01 at 102 A*** 5,109,194 Series 1991 (Yakima Valley Memorial Hospital Association, Yakima), 7.250%, 1/01/21 (Pre-refunded to 1/01/01) 18,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA 17,238,600 Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28 14,850,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/00 at 102 Aaa 15,732,683 Refunding Revenue Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00) 4,000,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/04 at 102 Aa1 4,148,880 Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/11 14,500,000 Washington Public Power Supply System, Nuclear Project No. 3, 1/00 at 102 AAA 15,171,640 Refunding Revenue Bonds, Series 1989B, 7.400%, 7/01/09 (Pre-refunded to 1/01/00) 2,500,000 Washington Public Power Supply System, Nuclear Project No. 3, 7/08 at 102 Aa1 2,478,724 Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18 4,175,000 Washington State University, Recreation Center Revenue Bonds, 4/08 at 101 AAA 4,011,423 Series of 1998, 5.000%, 4/01/28 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Wisconsin - 1.6% $ 7,000,000 Wisconsin Housing and Economic Development Authority, 1/02 at 102 AA- $ 7,491,050 Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 10,820,000 Wisconsin Health and Educational Facilities Authority, Revenue 12/01 at 102 AAA 11,864,345 Bonds, Series 1991-B (Novus Health Group), 6.750%, 12/15/20 (Pre-refunded to 12/15/01) - ---------------------------------------------------------------------------------------------------------------------------------- Wyoming - 0.5% 4,500,000 Wyoming Community Development Authority, Single Family 11/01 at 103 AA 4,789,080 Mortgage Bonds, Series G 1988 (Federally Insured or Guaranteed Mortgage Loans), 7.250%, 6/01/21 (Alternative Minimum Tax) 1,740,000 Wyoming Community Development Authority, Single Family 6/01 at 102 AA 1,785,326 Mortgage Bonds, 1991 Series B, 7.400%, 6/01/31 - ---------------------------------------------------------------------------------------------------------------------------------- $1,162,600,000 Total Investments - (cost $1,135,948,187) - 98.7% 1,223,891,256 ============== Other Assets Less Liabilities - 1.3% 16,558,918 ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $1,240,450,174 ================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (DD) Security purchased on a delayed delivery basis (note 1). See accompanying notes to financial statements.
Portfolio of Investments Nuveen Premier Municipal Income Fund, Inc. (NPF) April 30,1999 (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Alabama - 1.0% $ 4,360,000 Alabama Higher Education Loan Corporation, Student Loan No Opt. Call AAA $ 4,663,892 Revenue Refunding Bonds, Series 1994-D, 5.850%, 9/01/04 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Alaska - 0.2% 880,000 Municipality of Anchorage, Alaska, Home Mortgage Revenue 3/02 at 102 AAA 937,464 Bonds (Mortgage-Backed Securities Program), Series of 1992, 8.000%, 3/01/09 - ---------------------------------------------------------------------------------------------------------------------------------- Arizona - 5.1% 5,500,000 Arizona Educational Loan Marketing Corporation, No Opt. Call Aa2 5,755,750 1992 Educational Loan Revenue Bonds, Series B, 6.950%, 3/01/01 (Alternative Minimum Tax) 3,650,000 Gilbert Unified School District No. 41 of Maricopa County, 7/04 at 100 AAA 4,023,322 Arizona, School Improvement Bonds, Project of 1993, Series 1994 C, 6.100%, 7/01/14 (Pre-refunded to 7/01/04) 11,540,000 Yuma Regional Medical Center on Behalf of Hospital 8/02 at 101 1/2 N/R*** 13,198,298 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) - ---------------------------------------------------------------------------------------------------------------------------------- Arkansas - 1.2% 1,315,000 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 1,413,664 Mortgage Revenue Bonds, 1994 Series C (Mortgage-Backed Securities Program), 6.600%, 7/01/17 1,640,000 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 1,758,621 Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program), 6.550%, 7/01/18 (Alternative Minimum Tax) 232,206 Drew County, Arkansas, Public Facilities Board, 8/03 at 103 Aaa 249,779 Single Family Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 8/01/11 1,310,000 Residential Housing Facilities Board of Greene County, 1/02 at 103 Aa 1,389,779 Arkansas, Subordinated Mortgage Revenue Bonds, Series 1991-1, 7.250%, 1/01/10 388,562 Public Facilities Board of Stuttgart, Arkansas, 9/03 at 103 Aaa 422,865 Single Family Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11 - ---------------------------------------------------------------------------------------------------------------------------------- California - 2.9% 33,000,000 Foothill/Eastern Transportation Corridor Agency (California), No Opt. Call BBB- 13,151,490 Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- Colorado - 1.3% Colorado Health Facilities Authority, Hospital Refunding Revenue Bonds (National Jewish Center For Immunology and Respiratory Medicine Project), Series 1992: 1,160,000 6.600%, 2/15/02 No Opt. Call N/R*** 1,206,841 1,250,000 6.875%, 2/15/12 (Pre-refunded to 2/15/02) 2/02 at 102 N/R*** 1,372,788 3,040,000 7.100%, 2/15/22 (Pre-refunded to 2/15/02) 2/02 at 102 N/R*** 3,355,886 - ---------------------------------------------------------------------------------------------------------------------------------- Connecticut - 1.6% 4,855,000 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102 AA 5,176,304 Finance Program Bonds, 1997 Series A, Subseries A-4, 6.200%, 11/15/22 (Alternative Minimum Tax) 2,000,000 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102 AA 2,142,460 Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18 - ---------------------------------------------------------------------------------------------------------------------------------- District of Columbia - 1.5% 2,000,000 District of Columbia, Hospital Revenue Refunding Bonds 8/02 at 102 A3*** 2,189,840 (Washington Hospital Center Issue), Series 1992A, 7.000%, 8/15/05 (Pre-refunded to 8/15/02) 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 $ 980,591 3,505,000 7.250%, 3/01/24 9/02 at 102 Aa 3,748,878 - ---------------------------------------------------------------------------------------------------------------------------------- Florida - 0.9% 4,000,000 Dade County, Florida, Aviation Bonds, Series 1996A, 10/06 at 102 AAA 4,215,320 5.750%, 10/01/18 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Georgia - 2.4% 8,000,000 George L. Smith II World Congress Center Authority, 7/10 at 101 AAA 8,011,920 Refunding Revenue Bonds (Domed Stadium Project), Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax) (DD, settling 4/04/00) 2,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, No Opt. Call AAA 2,614,800 Series EE, 7.250%, 1/01/24 - ---------------------------------------------------------------------------------------------------------------------------------- Idaho - 0.3% 1,320,000 Idaho Housing and Finance Association, Single Family 7/06 at 102 Aa1 1,423,092 Mortgage Bonds, 1996 Series E, 6.350%, 7/01/14 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Illinois - 19.2% 4,500,000 City of Chicago, Illinois, General Obligation Adjustable 7/02 at 101 1/2 AAA 4,989,330 Rate Bonds, Central Public Library Project, Series C of 1988, 6.850%, 1/01/17 (Pre-refunded to 7/01/02) 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: 10,000,000 0.000%, 12/01/20 No Opt. Call AAA 3,239,800 12,900,000 0.000%, 12/01/24 No Opt. Call AAA 3,342,132 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1999A: 15,000,000 0.000%, 12/01/21 No Opt. Call AAA 4,583,250 10,000,000 0.000%, 12/01/23 No Opt. Call AAA 2,737,800 5,000,000 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 2,037,650 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998B-1, 0.000%, 12/01/16 1,100,000 Public Building Commission of Chicago, Illinois, Building No Opt. Call AAA 1,291,851 Revenue Bonds, Series B of 1990 (Board of Education of the City of Chicago), 7.000%, 1/01/15 8,045,000 Town of Cicero, Cook County, Illinois, General Obligation 12/04 at 102 N/R*** 9,540,485 Tax Increment Bonds, Series 1995A, 8.125%, 12/01/12 (Pre-refunded to 12/01/04) 7,270,000 Illinois Development Finance Authority, Multi-Family Housing 3/02 at 102 BBB+ 7,865,340 Revenue Bonds, Series 1992 (Town and Garden Apartments Project), 7.800%, 3/01/06 (Alternative Minimum Tax) 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 657,510 5,270,000 7.650%, 12/31/31 1/02 at 105 AAA 5,755,631 7,400,000 Illinois Health Facilities Authority, Revenue Bonds, 7/02 at 102 BBB 7,902,904 Series 1992 (Trinity Medical Center), 7.000%, 7/01/12 125,000 Illinois Health Facilities Authority, Revenue Refunding 4/02 at 102 AA-*** 137,701 Bonds, Series 1992A (Evangelical Hospitals Corporation), 6.750%, 4/15/12 (Pre-refunded to 4/15/02) 4,715,000 Illinois Housing Development Authority, Section 8 Elderly 9/02 at 102 A 4,976,541 Housing Revenue Bonds (Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18 685,000 Illinois Housing Development Authority, Section 8 Elderly 1/03 at 102 A*** 758,391 Housing Revenue Bonds (Morningside North Development), Series 1992D, 6.600%, 1/01/07 (Pre-refunded to 1/01/03) 6,390,000 State of Illinois, Build Illinois Bonds (Sales Tax Revenue 6/00 at 102 AAA 6,754,166 Bonds), Series S, 6.800%, 6/15/12 (Pre-refunded to 6/15/00) 9,400,000 Metropolitan Pier and Exposition Authority (Illinois), No Opt. Call AAA 3,412,764 McCormick Place Expansion Project Refunding Bonds, Series 1996A, 0.000%, 12/15/18 2,000,000 Onterie Center Housing Finance Corporation (An Illinois 7/02 at 102 AAA 2,138,200 Not For Profit Corporation), Mortgage Revenue Refunding Bonds, Series 1992A (FHA-Insured Mortgage Loan-Onterie Center Project), 7.050%, 7/01/27 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Illinois (continued) Village of Sugar Grove, Kane County, Illinois, Waterworks and Sewerage Refunding Revenue Bonds, Series 1992: $ 1,395,000 7.500%, 5/01/17 (Pre-refunded to 5/01/02) 5/02 at 102 N/R*** $ 1,564,883 1,440,000 7.500%, 5/01/17 5/02 at 102 N/R 1,546,718 5,415,000 Town of Wood River, Wood River Township Hospital, 2/04 at 102 N/R 5,814,627 Madison County, Illinois, General Obligation Bonds (Alternate Revenue Source), Series 1993, 6.625%, 2/01/14 5,360,000 Town of Wood River, Wood River Township Hospital, 2/04 at 102 N/R 5,727,696 Madison County, Illinois, General Obligation Tort Immunity Bonds, Series 1993, 6.500%, 2/01/14 - ---------------------------------------------------------------------------------------------------------------------------------- Indiana - 1.2% 2,000,000 City of Indianapolis, Indiana, Exempt Facility Revenue Bonds, 6/99 at 102 A+ 2,044,340 Series 1991 (Mid America Energy Resources, Inc. Project), 7.250%, 12/01/11 (Alternative Minimum Tax) 2,860,000 PHM Elementary/Middle School Building Corporation No Opt. Call A 3,240,866 (St. Joseph County, Indiana), First Mortgage Bonds, Series 1994, 6.300%, 1/15/09 - ---------------------------------------------------------------------------------------------------------------------------------- Iowa - 0.4% 1,655,000 Iowa Student Loan Liquidity Corporation, Student Loan Revenue 12/02 at 102 Aaa 1,764,031 Bonds, Senior Series B, 5.750%, 12/01/06 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Kansas - 1.1% 2,485,000 City of Hutchinson, Kansas, Single Family Mortgage Revenue 6/02 at 103 A 2,660,093 Refunding Bonds, Series 1992, 8.875%, 12/01/12 6,440,000 The Unified Government of Wyandotte County/Kansas City, No Opt. Call AAA 2,112,964 Kansas, Sales Tax Special Obligation Revenue Bonds (Kansas International Speedway Corporation Project), Series 1999, 0.000%, 12/01/20 - ---------------------------------------------------------------------------------------------------------------------------------- Kentucky - 1.2% 5,000,000 Kentucky Rural Economic Development Authority, Economic 7/02 at 102 N/R 5,311,050 Development Project Revenue Bonds, Series 1992 (Donnelly Corporation Project), 8.125%, 7/01/12 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Louisiana - 0.3% 1,310,000 Louisiana Housing Finance Agency, Mortgage Revenue Bonds 9/05 at 103 AAA 1,434,542 (GNMA Collateralized Mortgage Loan-St. Dominic Assisted Care Facility), Series 1995, 6.850%, 9/01/25 - ---------------------------------------------------------------------------------------------------------------------------------- Maine - 2.0% 8,470,000 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A 8,790,420 Student Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Maryland - 1.5% 6,000,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB 6,539,100 Bonds (Woodside Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03) - ---------------------------------------------------------------------------------------------------------------------------------- Massachusetts - 8.0% 35,000 Massachusetts Municipal Wholesale Electric Company, No Opt. Call BBB+ 40,277 Power Supply System Revenue Bonds, 1987 Series A, 8.750%, 7/01/18 2,450,000 Massachusetts Health and Educational Facilities Authority, 4/02 at 102 AAA 2,710,558 Revenue Bonds, New England Deaconess Hospital Issue, Series D, 6.875%, 4/01/22 (Pre-refunded to 4/01/02) 3,875,000 Massachusetts Health and Educational Facilities Authority, 2/04 at 102 Aa 3,992,258 Revenue Refunding Bonds, Youville Hospital Issue (FHA-Insured Project), Series B, 6.000%, 2/15/25 6,585,000 Massachusetts Health and Educational Facilities Authority, 5/08 at 102 AAA 6,334,309 Catholic Health East Issue, Series 1998B, 5.000%, 11/15/28 9,120,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 10,079,059 Revenue Bonds, SEMASS Project, Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 2,000,000 Massachusetts Housing Finance Agency, Rental Housing 7/07 at 101 AAA 2,052,020 Mortgage Revenue Bonds, 1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax) 9,780,000 Massachusetts Water Resources Authority, General 7/02 at 102 AAA 10,874,578 Revenue Bonds, 1992 Series A, 6.750%, 7/15/12 (Pre-refunded to 7/15/02) Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Michigan - 1.0% $ 1,975,000 Charter Township of Clinton, County of Macomb, State of Michigan, 4/09 at 101 AAA $ 1,712,147 1998 General Obligation Unlimited Tax Police Building Bonds, 4.000%, 4/01/18 2,500,000 Wayne County Building Authority (State of Michigan), 3/02 at 102 BBB+*** 2,824,175 Capital Improvement Bonds, Series 1992A (Limited Tax General Obligation), 8.000%, 3/01/17 (Pre-refunded to 3/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- Minnesota - 2.4% 11,180,000 Northwest Minnesota Multi-County, Housing and 10/04 at 102 N/R 10,755,272 Redevelopment Authority, Governmental Housing Revenue Bonds (Pooled Housing Program), Series 1994A, 8.125%, 10/01/26 - ---------------------------------------------------------------------------------------------------------------------------------- Mississippi - 0.7% 8,610,000 Mississippi Home Corporation, Residual Revenue 3/04 at 41 21/32 Aaa 2,961,065 Capital Appreciation Bonds, Series 1992-I, 0.000%, 9/15/16 - ---------------------------------------------------------------------------------------------------------------------------------- Missouri - 0.5% 2,210,000 Missouri State Health and Educational Facilities Authority, 6/08 at 101 AAA 2,163,966 Revenue Bonds (SSM Health Care), Series 1998A, 5.000%, 6/01/22 - ---------------------------------------------------------------------------------------------------------------------------------- Nebraska - 3.9% 2,830,000 City of Grand Island, Nebraska, Electric System Revenue Bonds, No Opt. Call A+*** 3,178,939 1977 Series, 6.100%, 9/01/12 2,350,000 Nebraska Higher Education Loan Program, Inc., No Opt. Call AAA 2,476,524 Senior Subordinate Bonds, Series A-5B, 6.250%, 6/01/18 (Alternative Minimum Tax) 10,935,000 Omaha Public Power District, Nebraska, Electric System 2/02 at 101 1/2 AAA 11,902,419 Revenue Bonds, 1992 Series A, 6.500%, 2/01/17 (Pre-refunded to 2/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- New Hampshire - 0.2% 990,000 New Hampshire Municipal Bond Bank, Educational Institutions No Opt. Call N/R 1,078,803 Division Revenue Bonds (1994 Coe-Brown Northwood Academy Project), 7.250%, 5/01/09 - ---------------------------------------------------------------------------------------------------------------------------------- New York - 14.3% 3,500,000 The City of New York, General Obligation Bonds, No Opt. Call A- 3,724,105 Fiscal 1992 Series B, 7.500%, 2/01/01 1,000,000 The City of New York, General Obligation Bonds, No Opt. Call A- 1,134,950 Fiscal 1995 Series A, 7.000%, 8/01/04 3,080,000 The City of New York, General Obligation Bonds, No Opt. Call A- 3,438,019 Fiscal 1995 Series E, 6.600%, 8/01/04 2,075,000 The City of New York, General Obligation Bonds, 11/01 at 101 1/2 AAA 2,345,995 Fiscal 1990 Series F, 8.400%, 11/15/05 (Pre-refunded to 11/15/01) 2,000,000 The City of New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 2,209,080 Fiscal 1992 Series C, Fixed Rate Bonds, Subseries C-1, 6.625%, 8/01/12 (Pre-refunded to 8/01/02) 4,000,000 The City of New York, General Obligation Bonds, 2/06 at 101 1/2 A- 4,286,240 Fiscal 1996 Series J (Subseries J-1), 5.875%, 2/15/19 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 4,393,351 150,000 9.500%, 8/01/02 8/01 at 101 1/2 A- 169,995 The City of New York, General Obligation Bonds, Fiscal 1995 Series E: 450,000 6.500%, 8/01/02 No Opt. Call Aaa 489,330 1,100,000 6.500%, 8/01/02 No Opt. Call A- 1,188,418 8,480,000 New York City Transitional Finance Authority, 8/07 at 101 AA 8,412,584 Future Tax Secured Bonds, Fiscal 1998 Series A, 5.125%, 8/15/21 6,500,000 Dormitory Authority of the State of New York, City 7/00 at 102 Aaa 6,939,530 University System Consolidated Revenue Bonds, Series 1990A, 7.625%, 7/01/20 (Pre-refunded to 7/01/00) 5,000,000 New York Local Government Assistance Corporation, 4/01 at 102 AAA 5,458,050 New York, Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) 6,000,000 New York State Medical Care Facilities Finance Agency, 8/02 at 102 AAA 6,363,600 Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22 4,800,000 New York State Medical Care Facilities Finance Agency, 8/03 at 102 AAA 5,019,552 St. Luke's-Roosevelt Hospital Center, FHA-Insured Mortgage Revenue Bonds, 1993 Series A, 5.600%, 8/15/13 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- New York (continued) $ 8,450,000 New York State Urban Development Corporation, State Facilities 4/01 at 102 Aaa $ 9,224,105 Revenue Bonds, Series 1991, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- North Carolina - 3.5% 10,300,000 North Carolina Eastern Municipal Power Agency, Power System No Opt. Call AAA 11,499,229 Revenue Bonds, Refunding Series 1993 B, 6.000%, 1/01/22 2,130,000 North Carolina Housing Finance Agency, Multifamily Revenue 7/02 at 102 AA 2,284,148 Refunding Bonds (1992 Refunding Bond Resolution), Series B, 6.900%, 7/01/24 2,000,000 North Carolina Housing Finance Agency, Home Ownership 7/08 at 101 AA 2,012,920 Revenue Bonds, Series 1-A (1998 Trust Agreement), 5.375%, 1/01/29 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Ohio - 2.2% 2,110,000 Cleveland-Rock Glen Housing Assistance Corporation, Mortgage 7/04 at 103 AAA 2,280,551 Revenue Refunding Bonds, Series 1994A (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), 6.750%, 1/15/25 6,670,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/99 at 102 AAA 6,825,144 Bonds (GNMA Mortgage-Backed Securities Program), 1989 Series A, 7.650%, 3/01/29 (Alternative Minimum Tax) 790,000 Toledo-Lucas County Port Authority, Development Revenue 5/00 at 102 N/R 818,472 Bonds (Northwest Ohio Bond Fund), Series 1992A, 7.750%, 5/15/07 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Oregon - 0.3% 1,230,000 State of Oregon, Housing and Community Services Department, 7/07 at 101 1/2 Aa2 1,265,363 Mortgage Revenue Bonds (Single Family Mortgage Program), 1997 Series H, 5.650%, 7/01/28 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Pennsylvania - 5.4% 5,000,000 Delaware County Industrial Development Authority 1/08 at 102 A- 5,174,700 (Pennsylvania), Refunding Revenue Bonds, Series A 1997 (Resource Recovery Facility), 6.200%, 7/01/19 2,000,000 Falls Township Hospital Authority, Refunding Revenue Bonds, 8/02 at 102 AAA 2,125,860 The Delaware Valley Medical Center Project (FHA-Insured Mortgage), Series 1992, 7.000%, 8/01/22 755,000 Northampton County Hospital Authority (Pennsylvania), Hospital No Opt. Call BBB 782,633 Revenue Bonds (Easton Hospital), Series A of 1992, 6.900%, 1/01/02 7,585,000 City of Philadelphia (Pennsylvania), Water and Sewer Revenue No Opt. Call AAA 8,554,970 Bonds, Tenth Series, 7.350%, 9/01/04 2,500,000 The Hospitals and Higher Education Facilities Authority of 8/02 at 102 A- 2,719,750 Philadelphia, Hospital Revenue Bonds (Children's Seashore House), Series 1992A, 7.000%, 8/15/12 4,450,000 The Hospitals and Higher Education Facilities Authority 8/00 at 100 A- 4,834,035 of Philadelphia, Hospital Revenue Bonds (Children's Seashore House), Series 1992B, 7.000%, 8/15/22 - ---------------------------------------------------------------------------------------------------------------------------------- South Dakota - 1.5% 6,510,000 South Dakota Student Loan Assistance Corporation, Student No Opt. Call A*** 6,573,212 Loan Revenue Bonds, Series 1989-B, 7.400%, 8/01/99 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Tennessee - 1.2% 5,650,000 The Health and Educational Facilities Board of the 1/09 at 101 AAA 5,585,364 City of Johnson, Tennessee, Hospital Revenue Refunding and Improvement Bonds, Series 1998C (Johnson City Medical Center Hospital), 5.125%, 7/01/25 - ---------------------------------------------------------------------------------------------------------------------------------- Texas - 1.3% 4,225,345 General Services Commission (an Agency of the State 9/99 at 101 1/2 A 4,354,387 of Texas), as Lessee, Participation Interests, 7.500%, 9/01/22 1,245,000 Victoria Housing Finance Corporation, Single Family Mortgage No Opt. Call Aaa 1,375,177 Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11 - ---------------------------------------------------------------------------------------------------------------------------------- Utah - 0.7% 1,025,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/07 at 102 AA 1,093,214 1996 Series C, 6.450%, 7/01/14 (Alternative Minimum Tax) 2,135,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101 1/2 AA 2,184,489 1997 Series F, 5.750%, 7/01/15 (Alternative Minimum Tax) Principal Optional Call Market Amount Description Provisions* Ratings** Value - ---------------------------------------------------------------------------------------------------------------------------------- Virginia - 1.9% $ 3,200,000 Suffolk Redevelopment and Housing Authority, Multifamily 7/02 at 104 Baa2 $ 3,492,640 Housing Revenue Refunding Bonds, Series 1994 (Chase Heritage at Dulles Project), 7.000%, 7/01/24 (Mandatory put 7/01/04) 5,000,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ 5,162,300 Mortgage Bonds, 1992 Series A, 7.100%, 1/01/22 - ---------------------------------------------------------------------------------------------------------------------------------- Washington - 3.5% 9,500,000 State of Washington, General Obligation and General Obligation No Opt. Call AA+ 10,933,360 Refunding Bonds, Series 1992A and AT-6, 6.250%, 2/01/11 2,500,000 Washington Health Care Facilities Authority, Revenue Bonds, 2/02 at 102 AA- 2,679,975 Series 1992 (Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12 2,000,000 Washington Public Power Supply System, Nuclear Project 7/00 at 102 Aa1 2,116,060 No. 3 Refunding Revenue Bonds, Series 1990B, 7.375%, 7/01/04 - ---------------------------------------------------------------------------------------------------------------------------------- West Virginia - 0.4% 1,730,000 West Virginia Housing Development Fund, Housing Finance 5/02 at 102 AAA 1,794,581 Bonds, 1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- Wisconsin - 2.2% 2,985,000 Silver Lake Sanitary District, Waushara County, Wisconsin, 10/02 at 100 N/R*** 3,399,257 Sewer System Mortgage Revenue Bonds, 8.000%, 10/01/18 (Pre-refunded to 10/01/02) 5,950,000 Wisconsin Housing and Economic Development Authority, 1/02 at 102 AA- 6,367,392 Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 - ---------------------------------------------------------------------------------------------------------------------------------- $ 497,131,113 Total Investments - (cost $420,987,132) - 100.4% 452,298,876 ============= Other Assets Less Liabilities - (0.40)% (1,683,014) ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $ 450,615,862 ================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (DD) Security purchased on a delayed delivery basis (note 1). See accompanying notes to financial statements.
Statement of Net Assets April 30, 1999 (Unaudited)
Investment Select Quality Premier Quality Quality Income Income - -------------------------------------------------------------------------------------------------------------------------------- Assets Investments in municipal securities, at market value (note 1) $800,231,089 $752,412,374 $1,223,891,256 $452,298,876 Cash -- 8,562,315 -- 512,616 Receivables: Interest 14,718,180 13,318,161 24,035,680 7,239,485 Investments sold 9,224,812 276,431 145,000 292,589 Other assets 61,427 64,219 93,174 29,236 - -------------------------------------------------------------------------------------------------------------------------------- Total assets 824,235,508 774,633,500 1,248,165,110 460,372,802 - -------------------------------------------------------------------------------------------------------------------------------- Liabilities Cash overdraft 6,370,408 -- 329,039 -- Payable for investments purchased 3,406,376 6,903,622 1,495,000 7,669,520 Accrued expenses: Management fees (note 6) 418,057 394,160 631,761 235,636 Other 297,277 305,590 529,348 215,841 Preferred share dividends payable 80,177 82,410 113,869 25,928 Common share dividends payable 2,854,569 2,692,812 4,615,919 1,610,015 - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 13,426,864 10,378,594 7,714,936 9,756,940 - -------------------------------------------------------------------------------------------------------------------------------- Net assets (note 7) $810,808,644 $764,254,906 $1,240,450,174 $450,615,862 - -------------------------------------------------------------------------------------------------------------------------------- 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 35,682,110 33,872,344 53,987,847 20,000,933 ================================================================================================================================ Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 15.72 $ 15.48 $ 15.57 $ 15.53 ================================================================================================================================ See accompanying notes to financial statements.
Statement of Operations Six Months Ended April 30, 1999 (Unaudited)
Investment Select Quality Premier Quality Quality Income Income - ---------------------------------------------------------------------------------------------------------------------------------- Investment Income (note 1) $24,272,904 $23,532,196 $38,507,044 $13,800,812 - ---------------------------------------------------------------------------------------------------------------------------------- Expenses Management fees (note 6) 2,532,890 2,384,305 3,825,545 1,425,742 Preferred shares - auction fees 309,932 297,535 495,891 173,561 Preferred shares - dividend disbursing agent fees 19,836 19,836 24,795 9,917 Shareholders' servicing agent fees and expenses 42,930 38,291 63,113 22,773 Custodian's fees and expenses 52,857 50,533 74,051 36,763 Directors' fees and expenses (note 6) 3,855 3,616 5,902 2,138 Professional fees 10,342 10,254 10,943 9,801 Shareholders' reports - printing and mailing expenses 83,085 78,390 126,743 49,528 Stock exchange listing fees 16,089 16,194 24,006 12,031 Investor relations expense 33,662 31,329 51,040 18,627 Other expenses 23,190 18,867 29,528 11,846 - ---------------------------------------------------------------------------------------------------------------------------------- Total expenses 3,128,668 2,949,150 4,731,557 1,772,727 - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income 21,144,236 20,583,046 33,775,487 12,028,085 - ---------------------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Investments Net realized gain from investment transactions (notes 1 and 4) 2,095,986 6,745,363 989,677 323,071 Net change in unrealized appreciation or depreciation of investments (12,400,895) (14,320,155) (15,474,482) (5,273,826) - ---------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) from investments (10,304,909) (7,574,792) (14,484,805) (4,950,755) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 10,839,327 $ 13,008,254 $ 19,290,682 $ 7,077,330 ================================================================================================================================== See accompanying notes to financial statements.
Statement of Changes in Net Assets (Unaudited)
Investment Quality Select Quality - ---------------------------------------------------------------------------------------------------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended 4/30/99 10/31/98 4/30/99 10/31/98 - ---------------------------------------------------------------------------------------------------------------------------------- Operation Net investment income $ 21,144,236 $ 43,332,821 $ 20,583,046 $ 41,272,737 Net realized gain (loss) from investment transactions (notes 1 and 4) 2,095,986 (173,095) 6,745,363 1,614,188 Net change in unrealized appreciation or depreciation of investments (12,400,895) 8,887,953 (14,320,155) 4,958,232 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 10,839,327 55,047,679 13,008,254 47,845,157 - ---------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (17,115,154) (34,939,388) (16,262,080) (32,677,563) Preferred shareholders (3,763,593) (8,696,853) (3,726,841) (8,430,282) From accumulated net realized gains from investment transactions: Common shareholders -- (369,064) -- -- Preferred shareholders -- (89,825) -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (20,878,747) (44,095,130) (19,988,921) (41,107,845) - ---------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 697,576 2,861,357 1,461,167 3,267,092 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets (9,341,844) 10,813,906 (5,519,500) 10,004,404 Net assets at beginning of period 820,150,488 809,336,582 769,774,406 759,770,002 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets at end of period $810,808,644 $820,150,488 $764,254,906 $ 769,774,406 ================================================================================================================================== Balance of undistributed net investment income at end of period $ 886,047 $ 620,558 $ 1,248,072 $ 653,947 ================================================================================================================================== See accompanying notes to financial statements.
Quality Income Premier Income - ---------------------------------------------------------------------------------------------------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended 4/30/99 10/31/98 4/30/99 10/31/98 - ---------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 33,775,487 $ 68,283,197 $ 12,028,085 $ 24,290,823 Net realized gain from investment transactions (notes 1 and 4) 989,677 2,914,470 323,071 90,877 Net change in unrealized appreciation or depreciation of investments (15,474,482) 3,095,167 (5,273,826) 3,062,136 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 19,290,682 74,292,834 7,077,330 27,443,836 - ---------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (27,651,039) (54,962,532) (9,645,573) (19,804,242) Preferred shareholders (6,117,519) (13,962,725) (2,123,416) (4,932,868) From accumulated net realized gains from investment transactions: Common shareholders -- -- (43,961) -- Preferred shareholders -- -- (11,424) -- - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (33,768,558) (68,925,257) (11,824,374) (24,737,110) - ---------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 3,519,800 7,504,802 1,214,377 2,635,126 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets (10,958,076) 12,872,379 (3,532,667) 5,341,852 Net assets at beginning of period 1,251,408,250 1,238,535,871 454,148,529 448,806,677 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets at end of period $1,240,450,174 $1,251,408,250 $450,615,862 $454,148,529 ================================================================================================================================== Balance of undistributed net investment income at end of period $ 1,522,918 $ 1,515,989 $ 708,260 $ 449,164 ================================================================================================================================== See accompanying notes to financial statements.
Notes to Financial Statements (Unaudited) 1. General Information and Significant Accounting Policies The National Funds (the "Funds") covered in this report and their corresponding New York Stock Exchange symbols are Nuveen Investment Quality Municipal Fund, Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality Income Municipal Fund, Inc. (NQU) and Nuveen Premier Municipal Income Fund, Inc. (NPF). Each Fund 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 April 30, 1999, Quality Income and Premier Income had outstanding delayed delivery purchase commitments of $1,495,000 and $7,669,520, respectively. There were no such outstanding purchase commitments in either Investment Quality or Select Quality. 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. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from 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 ================================================================================ Effective May 14, 1999, Investment Quality issued 2,040 Series Th $25,000 stated value Preferred shares. Effective June 4, 1999, Select Quality issued 1,560 Series Th $25,000 stated value Preferred shares. Effective May 14, 1999, Quality Income issued 2,080 Series W2 $25,000 stated value Preferred shares. Effective June 11, 1999, Premier Income issued 1,000 Series M $25,000 stated value Preferred shares. 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 six months ended April 30, 1999. 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 - ------------------------------------------------------------------------------------------------------------------------ Six Months Ended Year Ended Six Months Ended Year Ended 4/30/99 10/31/98 4/30/99 10/31/98 - ------------------------------------------------------------------------------------------------------------------------ Shares issued to shareholders due to reinvestment of distributions 43,602 177,666 90,934 205,528 ======================================================================================================================== Quality Income Premier Income - ------------------------------------------------------------------------------------------------------------------------ Six Months Ended Year Ended Six Months Ended Year Ended 4/30/99 10/31/98 4/30/99 10/31/98 - ------------------------------------------------------------------------------------------------------------------------ Shares issued to shareholders due to reinvestment of distributions 211,217 454,528 73,366 161,445 ========================================================================================================================
3. Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on June 1, 1999, to shareholders of record on May 15, 1999, as follows: Investment Select Quality Premier Quality Quality Income Income - ------------------------------------------------------------------------------- Dividend per share $.0800 $.0795 $.0855 $.0805 =============================================================================== 4. Securities Transactions Purchases and sales (including maturities) of investments in long-term municipal securities and temporary municipal securities for the six months ended April 30, 1999, were as follows:
Investment Select Quality Premier Quality Quality Income Income - --------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $86,954,153 $68,831,967 $65,827,498 $30,839,379 Temporary municipal securities 77,605,000 27,350,000 4,500,000 41,400,000 Sales and Maturities: Long-term municipal securities 78,461,096 76,178,169 79,110,417 28,826,805 Temporary municipal securities 82,905,000 30,850,000 4,500,000 42,600,000 =========================================================================================================
At April 30, 1999, 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 Funds' last fiscal year end, 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 April 30, 1999, were as follows: Investment Select Quality Premier Quality Quality Income Income - -------------------------------------------------------------------------------- Gross unrealized: appreciation $60,261,581 $50,725,646 $89,484,671 $32,145,908 depreciation (442,924) (685,872) (1,541,602) (834,164) - -------------------------------------------------------------------------------- Net unrealized appreciation $59,818,657 $50,039,774 $87,943,069 $31,311,744 ================================================================================ 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 April 30, 1999, 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 356,821 338,723 539,878 200,009 Paid-in surplus 497,824,257 472,184,895 752,275,047 278,070,826 Balance of undistributed net investment income 886,047 1,248,072 1,522,918 708,260 Accumulated net realized gain (loss) from investment transactions 1,922,862 443,442 (1,830,738) 325,023 Net unrealized appreciation of investments 59,818,657 50,039,774 87,943,069 31,311,744 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets $810,808,644 $764,254,906 $1,240,450,174 $450,615,862 ================================================================================================================================== 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 April 30, 1999, the revenue sources by municipal purpose, expressed as a percent of long-term investments, were as follows: Investment Select Quality Premier Quality Quality Income Income - -------------------------------------------------------------------------------- Education and Civic Organizations 3% --% 1% 5% Health Care 16 6 6 10 Housing/Multifamily 2 7 3 14 Housing/Single Family 12 8 11 8 Tax Obligation/General 5 8 6 9 Tax Obligation/Limited 7 5 5 9 Transportation 3 9 13 4 U.S. Guaranteed 31 35 37 Utilities 10 15 9 6 Water and Sewer 9 3 5 -- Other 2 4 4 5 - -------------------------------------------------------------------------------- 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 (66% for Investment Quality, 66% for Select Quality, 53% for Quality Income and 46% for Premier Income). For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. Financial Highlights (Unaudited) Selected data for a Common share outstanding throughout each period is as follows: Investment Operations Net Realized/ Beginning Net Unrealized Net Asset Investment Investment Value Income Gain (Loss) Total Investment Quality Year Ended 10/31: 1999 (a) $16.00 $ .59 $ (.28) $ .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: 1999 (a) 15.68 .61 (.22) .39 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: 1999 (a) 15.83 .63 (.27) .36 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: 1999 (a) 15.76 .60 (.24) .36 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: 1999 (a) $ (.48) $(.11) $ -- $ -- $ (.59) 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: 1999 (a) (.48) (.11) -- -- (.59) 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: 1999 (a) (.51) (.11) -- -- (.62) 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: 1999 (a) (.48) (.11) -- -- (.59) 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: 1999 (a) $15.72 $15.8125 5.14% 1.26% 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: 1999 (a) 15.48 15.5625 (.94) 1.81 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: 1999 (a) 15.57 16.4375 .83 1.62 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: 1999 (a) 15.53 16.1250 (3.01) 1.64 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 Net Ratio of Investment Ratio of Investment Expenses to Income to Expenses to Income to Average Average Average TotalAverage Total Ending Net Assets Net Assets Net Assets Net Assets Portfolio Net Assets Applicable to Applicable to Including Including Turnover (000) Common Shares++ Common Shares++ Preferred++ Preferred++ Rate Investment Quality Year Ended 10/31: 1999 (a) $ 810,809 1.11%* 7.53%* .77%* 5.23%* 10% 1998 820,150 1.12 7.66 .78 5.31 7 1997 809,337 1.13 8.08 .78 5.56 14 1996 798,349 1.14 8.32 .78 5.71 8 1995 804,221 1.15 8.74 .78 5.97 11 1994 768,723 1.14 8.48 .79 5.83 7 Select Quality Year Ended 10/31: 1999 (a) 764,255 1.13* 7.87* .78* 5.41* 9 1998 769,774 1.14 7.87 .78 5.40 7 1997 759,770 1.15 8.22 .78 5.59 10 1996 745,059 1.15 8.39 .78 5.69 13 1995 749,883 1.18 8.81 .79 5.91 7 1994 707,388 1.19 8.71 .80 5.89 11 Quality Income Year Ended 10/31: 1999 (a) 1,240,450 1.13* 8.05* .77* 5.46* 5 1998 1,251,408 1.13 8.08 .77 5.49 19 1997 1,238,536 1.15 8.35 .77 5.62 9 1996 1,219,663 1.15 8.44 .77 5.67 11 1995 1,218,905 1.18 8.84 .78 5.86 17 1994 1,153,729 1.18 8.64 .79 5.78 12 Premier Income Year Ended 10/31: 1999 (a) 450,616 1.14* 7.76* .79* 5.36* 6 1998 454,149 1.15 7.80 .79 5.38 19 1997 448,807 1.17 8.14 .80 5.57 5 1996 442,153 1.18 8.29 .81 5.66 8 1995 441,381 1.19 8.66 .80 5.84 22 1994 416,566 1.20 8.34 .81 5.66 31
* Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on 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; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the six months ended April 30, 1999. Building a Better Portfolio Can Make You a Successful Investor Nuveen Family of Mutual Funds Nuveen offers a variety of funds designed to help you reach your financial goals. Growth Nuveen Rittenhouse Growth Fund Growth and Income European Value Fund Growth and Income Stock Fund Balanced Stock and Bond Fund Balanced Municipal and Stock Fund Dividend and Growth Fund Income Income Fund Tax-Free Income National Funds Long-Term Insured Intermediate-Term Limited-Term State Funds Arizona California Colorado Connecticut Florida Georgia Kansas Kentucky Louisiana Maryland Massachusetts Michigan Missouri New Jersey New Mexico New York North Carolina Ohio Pennsylvania Tennessee Virginia Wisconsin Successful investors know that a well-diversified portfolio - one that balances different types of investments, levels of risk and tax management - can be the foundation for building and sustaining wealth. That's why Nuveen offers you and your financial adviser a wide range of quality investments that can help you build a better portfolio in the pursuit of your financial goals Exchange-Traded Funds Nuveen Exchange-Traded Funds offer investors actively managed portfolios of investment-grade quality municipal bonds. The fund shares are listed and traded on the New York and American stock exchanges. Exchange-traded funds provide the investment convenience, price visibility and liquidity of common stocks. MuniPreferred(R) Nuveen MuniPreferred offers investors a AAA rated investment with an attractive tax-free yield for the cash reserves portion of an investment portfolio. MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen dual-class exchange-traded funds and are available for national as well as a wide variety of state-specific portfolios. Mutual Funds Nuveen offers a family of equity, balanced and municipal bond funds featuring Premier AdvisersSM including Institutional Capital Corporation, Rittenhouse Financial Services, and Nuveen Advisory Corp. Each brings a specialized expertise in a particular investment style or asset class, time-tested investment strategies and a focus on consistent, long-term performance. With Nuveen's Premier Adviser funds, you have all the advantages of a family of funds plus the benefits of specialized investment expertise. Private Asset Management Rittenhouse Financial Services and Nuveen Asset Management offer comprehensive, customized investment management solutions to investors with assets of $250,000 or more to invest. A range of actively managed growth, balanced and municipal income-oriented portfolios are available, all based upon a disciplined investment philosophy. Defined Portfolios Nuveen Defined Portfolios are fixed portfolios of quality securities that are a convenient, attractive alternative to purchasing individual securities. They provide low-cost diversification to reduce risk, while also offering experienced, professional security selection and surveillance. In addition, Nuveen Defined Portfolios provide daily liquidity at that day's net asset value for quick access to your assets. Fund Information Board of Directors Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Fund Manager Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 Custodian, Transfer Agent and Shareholder Services 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, we have updated or replaced our trading, fund management, and pricing systems at Nuveen - systems that directly affect our investors and their financial advisers - to address Year 2000 concerns. We continue to work closely with our transfer agent, custodian, firms through whom we buy and sell portfolio securities, and other service partners to monitor the Year 2000 readiness of their systems, while addressing other remaining systems issues. In addition, the Funds hold securities of issuers whose business operations leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's Year 2000 readiness as part of our initial and ongoing research of these issuers. This is only one of the many factors considered in determining whether to buy, sell, or continue holding a particular security. We anticipate that all significant components of our Year 2000 review, repair, and testing program will be complete by mid-1999. This includes appropriate industry-wide testing of critical systems and receipt of satisfactory assurances from critical service providers, vendors, and issuers regarding their Year 2000 readiness. We are also making Year 2000 contingency plans to guide recovery efforts in the event that, despite our remediation attempts, Year 2000 issues adversely affect the Funds. Although we cannot give complete assurance at this time that the steps we take will be sufficient to prevent any problems that would impact the Nuveen Exchange-Traded Funds, we can assure you that we will take all reasonable steps to prevent disruption of the services provided by your Fund. Each fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the six-month period ended April 30, 1999. Any future repurchases will be reported to shareholders in the next annual or semiannual report. Serving Investors for Generations Photo of: 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 quality investments designed for individuals seeking to build and sustain wealth. In fact, more than 1.3 million investors have trusted Nuveen to help them pursue their financial goals. 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 investments and services to help meet your unique circumstances and financial planning needs. Our equity, balanced, and tax-free income funds, along with our defined portfolios and private asset management, can help you build a better, well-diversified portfolio. Talk with your financial adviser to learn more about how Nuveen investment products and services can help you. Or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before investing. LOGO: NUVEEN helping investors sustain the wealth of a lifetimeTM. John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, IL 60606-1286 www.nuveen.com FSA-3-4-99 -----END PRIVACY-ENHANCED MESSAGE-----