-----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, WtU5yWM7B3nCdXxP6WOv2G7su3DTTLTpo+bTxG6JlEHOzXts3Tk/XYXoC7EpEpQu RL2FtVXveO44MoV5NY1ZHA== 0000891804-96-000303.txt : 19960930 0000891804-96-000303.hdr.sgml : 19960930 ACCESSION NUMBER: 0000891804-96-000303 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960731 FILED AS OF DATE: 19960927 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND INC CENTRAL INDEX KEY: 0000892992 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MN FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07278 FILM NUMBER: 96635659 BUSINESS ADDRESS: STREET 1: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 N-30D 1 NUVEEN ARIZONA PREMIUM INCOME MUNI FD,INC.(NAZ) Nuveen Exchange-Traded Funds Providing tax-free income to help you live your dreams ARIZONA PREMIUM INCOME (NAZ) MICHIGAN QUALITY INCOME (NUM) MICHIGAN PREMIUM INCOME (NMP) OHIO QUALITY INCOME (NUO) TEXAS QUALITY INCOME (NTX) ANNUAL REPORT/JULY 31, 1996 Photographic image of couple walking on beach. Photographic image of financial adviser reviewing financial statements/plans with older couple. Tax-informed investing An important part of any successful investment program is gauging how well your investments have performed and measuring your progress toward your long-term goals. The imposition of taxes dramatically alters the relative returns of the five asset classes. Graph showing after-tax returns, 1976-1996. Municipals 8.26 Treasuries 5.62 Corporates 6.11 Stocks 10.51 Treasury Bills 3.87 Traditionally, the most common way to measure performance has been to compare pre-tax rates of return for your different investments across similar time periods. The rationale behind this method is that each investor is taxed at a different rate, making pre-tax comparisons the seemingly logical way to ensure you are comparing apples to apples. This, however, is precisely the rationale that can make a pre-tax performance assessment misleading. When returns are presented on a pre-tax basis, you may lose sight of the major impact taxes can have on your earnings, and fail to get the complete picture of your progress toward your investment goals. At Nuveen, we've built our reputation help ing investors realize that it's not what you earn, it's what you keep. TAX-INFORMED INVESTING: THE KEY TO MEASURING LONG-TERM RESULTS The true measure of an investment is its performance on an after-tax basis. Analyzing after-tax returns gains added significance when you realize that the taxes you pay can never be regained. Once that money is "lost," it can't be put to work through compounding, earning additional dollars for you. To better illustrate the ways that taxes can affect the amount you keep versus the amount you earn, Nuveen Research recently studied 20 years of investment returns, both pre-tax and after-tax, to determine the impact of taxes on various asset classes. We were particularly interested in the study results for municipal bonds, an asset class that is commonly excluded from the top performance rankings when only pre-tax returns are considered. MEASURING WHAT YOU KEEP The study showed that, once the impact of taxes was figured into the equation, municipal bonds offered a distinct advantage over other fixed income investments. Over the study period, municipal bonds outperformed both corporate and Treasury bonds (see accompanying tables), as high tax rates and the loss of compounding income took their toll on corporate and Treasury results. As investors are well aware, performance over the long term--and the purchasing power of their earnings--can be eroded by inflation as well as taxes. The study showed that, over the past 20 years, only municipal bonds and stocks provided significant after-tax gains over the Consumer Price Index, the most recognized measure of inflation. ABOUT THE STUDY The study, "Measuring What You Keep: Historical After-Tax Returns," compared pre-tax and after-tax total returns over the past 20 years for five asset classes: municipal bonds, Treasury bonds, Treasury bills, corporate bonds, and large company stocks. Returns for each asset class were represented by the returns on commonly used market indexes compiled by Lehman Brothers and Ibbotson & Associates. A hypothetical investment of $100,000 was made in each of these asset classes at the beginning of 1976, with all dividends and interest reinvested through the end of 1995. In addition, the after-tax proceeds of an assumed annual 20% turnover rate were reinvested. The study assumed that taxes were paid annually at the applicable federal income tax rates for an investor earning the equivalent of $100,000 in 1995. Of course, this hypothetical investment performance neither reflects past performance nor predicts future results of any Nuveen investment. INCORPORATING TAX-INFORMED INVESTING IN YOUR PORTFOLIO The Nuveen study confirms what many investors have known for years: that municipal bonds can play a critical role in the long-term financial strategies of tax-informed investors. Balancing short-term and long-term investments Combining shorter- and longer-term tax-free investments may help you manage cumulative risk in your portfolio while still capturing the potential for attractive overall rates. Shorter-term investments can help reduce the current volatility of your portfolio and provide a source of investable funds to take advantage of additional investment opportunities as they arise. Longer-term leveraged exchange-traded funds have provided attractive yields and offer trading flexibility that allows quick and easy portfolio adjustments. Dividend reinvestment Studies indicate that weathering market cycles by maintaining an investment plan with long-term goals can help shield investors in the event of a declining market. The purchase of additional shares on a regular schedule, such as through dividend reinvestment, is another strategy for navigating market changes. Dividend reinvestment is an easy and convenient way to set aside dollars on a regular basis, helping you take advantage of dollar-cost averaging while gaining the benefits of tax-free compounding. CONSISTENT AFTER-TAX PERFORMANCE For the long-term investor, performance--even after the impact of taxes and inflation--is the true measure of an investment's merit. While most investors choose municipal bonds for their tax-free income advantage, the positive news about their after-tax returns reinforces their potential value as part of a tax-informed investment strategy designed to meet long-term objectives. Understanding the impact of taxes can mean that you keep more of what you earn, and municipal bonds can help you do just that. Only municipals and equities generated significant increases in purchasing power over the twenty-year period, with after-tax and inflation-adjusted returns in excess of 2.75% annually. ANNUAL AFTER-TAX REAL RETURNS, 1976-1995
PERIOD MUNICIPALS TREASURIES CORPORATES STOCKS BILLS 1976-1985 .69% -3.32% -2.14% 2.75% -2.67% 1986-1995 5.15 4.21 3.91 7.31 0.13 1976-1995 2.88% 0.37% 0.84% 5.02% -1.30%
Photographic image of couple walking on beach. CONTENTS 6 Municipal market perspective 7 Dear shareholder 9 Answering your questions 13 Fund performance 16 Commonly used terms 18 Portfolio of investments 46 Statement of net assets 48 Statement of operations 50 Statement of changes in net assets 53 Notes to financial statements 64 Financial highlights 68 Report of independent auditors 69 Nuveen Exchange-Traded Funds dividend reinvestment program Municipal market perspective Following the outstanding performance of 1995, the beginning of 1996 saw a slight price decline in the overall bond market. Municipal bonds, however, maintained an edge over Treasuries and ended the first half of the year on a positive note with a rally in bond prices. Over the past 12 months, the municipal market continued to reward investors with solid returns and opportunities to purchase higher yielding bonds with strong credit quality. A look at the current economy shows that inflation continues to amble along at the same modest pace as over the past five years. Generally level producer prices, low wage pressure, and a stable money supply are supportive of a moderately expanding economy. Despite this ideal combination of slow expansion and low inflation, investors continue to maintain a watchful eye for any indication of acceleration or the reappearance of inflation. If the Federal Reserve acts to increase short-term rates, such action would signal the Fed's concern about expansion but would also serve to further squelch inflation. Dear shareholder Photographic image of head shot of Chairman and Chief Executive Officer of Nuveen. "Municipal bonds continue to play an important role in meeting the investment goals of conservative investors." As I begin my duties as the new chairman and chief executive officer of John Nuveen & Co. Incorporated and chairman of the board of the Nuveen exchange-traded funds, I am pleased to have this opportunity to report to you on the performance of your funds. My experience at Nuveen over the past 19 years has shaped my commitment to maintaining Nuveen's tradition of value investing and prudent management. We strive to help our shareholders meet their need for tax-free investment income with a full range of investment choices. Our focus will continue to be on building shareholder value, providing research-oriented management, and delivering dependable performance. We believe this focus will contribute to many more years of investment success for our fund shareholders. Municipal bonds continue to play an important role in meeting the investment goals of conservative investors. The performance of the exchange-traded funds covered in this report demonstrates the ability of quality investments to provide attractive tax-free income. As of July 31, 1996, the current annual yield on share price for these funds ranged from 5.84% to 6.29%. To match these yields, an investor in the 36% federal income tax bracket would have had to earn at least 9.13% on taxable alternatives. When state taxes are taken into account, the power of tax-free investing is even more apparent. Without question, taxable yields at this level on investments of comparable quality can be difficult to achieve in today's markets. With the strength of the bond market last year, all of these funds saw an increase in share price and net asset value per share, further improving investors' overall experience for the year ending July 31, 1996, while producing attractive returns. Total returns, representing changes in net asset value and reinvestment of all dividends and capital gains, if any, ranged from 7.72% to 8.88%, equivalent to taxable investments with total returns of 11.40% to 12.75%. The years ahead present opportunities for all of us. I want to thank you for your continued confidence in Nuveen exchange-traded funds, and I look forward to sharing reports of continued progress with you. Sincerely, Timothy R. Schwertfeger Chairman of the Board September 13, 1996 Answering your questions Photographic image of montage of letters received by Nuveen. Tom Spalding, head of Nuveen's portfolio management team, discusses the investment environment and recent factors affecting the municipal market. What has been Nuveen's investment approach over the past year? Nuveen continues to pursue its value investing strategy, a disciplined approach to security selection and portfolio construction designed to deliver above-market performance by identifying individual bonds with current yields, prices, credit quality, and future prospects that are exceptionally attractive relative to other bonds in the market. This approach was rewarded over the past year, as many of our portfolio holdings were upgraded by the national rating agencies, indicating that our Research Department's judgments about credit quality were on target. As opportunity allowed, we purchased an increased number of bonds at discounts from their par value. These bonds, which have coupon rates slightly below market levels, are less likely to be called from our portfolios, assuring more stable yields for our investors. Photographic image of Tom Spalding, Portfolio Manager at Nuveen. Tom Spalding, head of Nuveen's portfolio management team, answers investors' questions on developments in the municipal market. Some funds' discounts seem to have narrowed over the past few months. What caused this improvement? To understand the reasons for this improvement, it may be helpful to remember that each share has two prices: the net asset value (NAV), which represents the underlying value of the bonds, and the share price, which is the fund's price on the stock exchange. As with other securities, share prices for municipal bond funds change frequently, driven by investors' demand for shares and the available supply. When a fund's NAV is higher than its share price, we say that the shares can be purchased at a discount. In 1995, the recovery of the bond market meant that the net asset values for some funds appreciated more quickly than their share prices, widening discounts for a while. This is not unusual, as the market often takes time to reflect underlying value balanced against the various factors that affect individual investor decisions, such as the outlook for the direction of interest rates, inflation forecasts, the relative strength of the stock market, and legislative and tax outlooks. As investor worries about tax reform--and the potential effect of a flat tax proposal on tax-free investments--waned over the first half of the year, the demand for tax-free products grew. The combination of higher yields, concerns about the direction of the stock market, and broker recommendations has also prompted greater demand for municipal bonds and bond funds. With increased demand, share prices have generally risen, resulting in narrower discounts. In fact, some exchange-traded funds are now trading at a premium, that is, their share prices are higher than their NAVs. What are some of the factors affecting dividend stability and changes? All Nuveen funds are structured to provide an attractive stream of tax-free income. For many investors, stability of income is another important objective. To help investors satisfy this objective, we set dividends on Nuveen funds conservatively, seeking a level that we expect will be sustainable for at least several months. Many of the funds that have seen dividend reductions over the past year had previously enjoyed prolonged periods without dividend changes. Still, dividends ultimately depend on the overall earnings of each fund, which can be reduced by bond calls, fluctuations in long- and short-term interest rates, and other portfolio changes. The funds in this report use leverage as an additional way to enhance income for common shareholders. The dividends of leveraged funds can be affected by a sudden or prolonged rise in short-term interest rates. In fact, short-term rates on average have been higher over the past two years than they were in the early 1990s. This has resulted in higher rates for preferred shareholders and less income available for common shareholders. It is important to remember that leverage can increase NAV volatility as well as investment potential. Greater stability in both long- and short-term interest rates in 1996 has reduced some of the pressures on dividends and NAVs for many leveraged funds. Another factor that can act to lower dividends is bond calls. When the Federal Reserve Board cut rates between July 1995 and January 1996, long-term municipal bond yields reacted by declining almost 130 basis points from their levels at the beginning of 1995. As older, higher-yielding bonds were called from some portfolios, they were replaced with the bonds available in the market today, reducing fund earnings. To reduce the effect of bond calls and protect investors' current income, Nuveen has taken advantage of opportunities to invest in an increased number of non-callable bonds as well as bonds priced at a discount from their par value. NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC. NAZ Shareholders enjoyed an increase in the monthly tax-free dividend in February, as short-term rates in this state persisted at levels lower then expected when the dividends were set. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 08/11/95 $0.0650 09/13/95 $0.0650 10/11/95 $0.0650 11/13/95 $0.0650 12/13/95 $0.0650 01/10/96 $0.0650 02/13/96 $0.0675 03/13/96 $0.0675 04/11/96 $0.0675 05/13/96 $0.0675 06/12/96 $0.0675 07/11/96 $0.0675 FUND HIGHLIGHTS 7/31/96 Yield 5.84% Taxable-equivalent yield 9.65% Annual total return on NAV 8.48% Taxable-equivalent total return 12.24% Share price $13.875 NAV $14.51 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. NUM In keeping with the Fund's goal of providing attractive, dependable tax-free income, shareholders enjoyed 12 months of steady dividends, as well as a capital gains distribution in December. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 08/11/95 $0.0795 09/13/95 $0.0795 10/11/95 $0.0795 11/13/95 $0.0795 12/13/95 $0.0795 $0.0681 01/10/96 $0.0795 02/13/96 $0.0795 03/13/96 $0.0795 04/11/96 $0.0795 05/13/96 $0.0795 06/12/96 $0.0795 07/11/96 $0.0795 FUND HIGHLIGHTS 7/31/96 Yield 6.15% Taxable-equivalent yield 10.25% Annual total return on NAV 8.07% Taxable-equivalent total return 12.42% Share price $15.50 NAV $15.28 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. NMP Shareholders enjoyed an increase in the monthly tax-free dividend in June, reflecting portfolio management's ability to improve the fund's earnings rate. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 08/11/95 $0.0645 09/13/95 $0.0645 10/11/95 $0.0645 11/13/95 $0.0645 12/13/95 $0.0645 01/10/96 $0.0645 02/13/96 $0.0645 03/13/96 $0.0645 04/11/96 $0.0645 05/13/96 $0.0645 06/12/96 $0.0660 07/11/96 $0.0660 FUND HIGHLIGHTS 7/31/96 Yield 6.15% Taxable-equivalent yield 10.25% Annual total return on NAV 8.88% Taxable-equivalent total return 12.75% Share price $12.875 NAV $14.16 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC. NUO Shareholders enjoyed an increase in the monthly tax-free dividend in November, reflecting portfolio management's ability to improve the fund's earnings rate. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 08/11/95 $0.0775 09/13/95 $0.0775 10/11/95 $0.0775 11/13/95 $0.0800 12/13/95 $0.0800 01/10/96 $0.0800 02/13/96 $0.0800 03/13/96 $0.0800 04/11/96 $0.0800 05/13/96 $0.0800 06/12/96 $0.0800 07/11/96 $0.0800 FUND HIGHLIGHTS 7/31/96 Yield 6.00% Taxable-equivalent yield 10.17% Annual total return on NAV 8.68% Taxable-equivalent total return 13.12% Share price $16.00 NAV $15.69 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND NTX Dividends of NTX have been consistently at an attractive level despite a modest reduction in February, reflecting the effects of bond calls. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 08/11/95 $0.0800 09/13/95 $0.0800 10/11/95 $0.0800 11/13/95 $0.0800 12/13/95 $0.0800 $0.0366 01/10/96 $0.0800 02/13/96 $0.0780 03/13/96 $0.0780 04/11/96 $0.0780 05/13/96 $0.0780 06/12/96 $0.0780 07/11/96 $0.0780 FUND HIGHLIGHTS 7/31/96 Yield 6.29% Taxable-equivalent yield 9.83% Annual total return on NAV 7.72% Taxable-equivalent total return 11.40% Share price $14.875 NAV $15.06 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
Commonly used terms Yield An exchange-traded fund's annualized monthly dividend on a given date (in the case of this report, July 31, 1996) divided by its closing price per share on that date. Taxable equivalent yield The return an investor subject to a given state and federal income tax rate would need to obtain from a fully taxable investment to equal the fund's stated annualized yield on share price. In this report, these tax rates are assumed to be 39.5 for AZ, 40% for MI, 41% for OH, and 36% for TX, based on 1996 incomes of $121,300-$263,750 for investors filing singly, $147,700-$263,750 for those filing jointly. Net Asset Value (NAV) The market value of all securities and other assets held by an exchange-traded fund, minus any liabilities. The NAV per share is the fund's net assets, less the value of its preferred shares, divided by the total number of common shares outstanding. Total return on NAV The percentage change in a fund's NAV per common share for a given period, assuming reinvestment of all dividends and capital gains distributions, if any. Taxable equivalent total return The total return an investor subject to a given state and federal income tax rate would need to obtain from a fully taxable investment to equal the Fund's stated total return on NAV. Leverage A technique used to enhance the income produced for common shareholders by a long-term municipal bond fund through the issuance of short-term preferred shares. The proceeds from the sale of the preferred shares can be used to purchase additional long-term bonds, thus increasing the portfolio's income stream. Changes in net asset value per share, both up and down, are also magnified by leverage. Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the 12-month period ended July 31, 1996. Any future repurchases will be reported to shareholders in the next annual or semiannual report. PORTFOLIO OF INVESTMENTS NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC. (NAZ)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 500,000 Arizona Board of Regents, Arizona State University, System Revenue Refunding Bonds, Series 1992-A, 5.750%, 7/01/12 7/02 at 101 AA $ 503,800 2,150,000 Arizona Municipal Financing Program of 1992 Refunding Certificates of Participation, Series 1, 6.000%, 8/01/17 7/02 at 101 Aaa 2,192,398 800,000 Arizona State University Research Park, Development Refunding Bonds, Series 1995, 5.125%, 7/01/14 7/02 at 100 Aaa 755,256 1,500,000 State of Arizona, Transportation Board, Highway Revenue Bonds, Series 1990, 6.000%, 7/01/10 (Pre-refunded to 7/01/00) 7/00 at 101 Aaa 1,593,345 1,750,000 Student Loan Acquisition Authority of Arizona (A nonprofit Corporation organized pursuant to the laws of the State of Arizona), Student Loan Revenue Bonds, Series 1994, 6.600%, 5/01/10 (Alternative Minimum Tax) 5/04 at 102 Aa 1,849,610 500,000 Wastewater Management Authority of Arizona, Wastewater Treatment Financial Assistance Revenue Bonds, Series 1995, 5.750%, 7/01/15 7/05 at 102 Aaa 500,975 3,425,000 Wastewater Management Authority of Arizona, Wastewater Treatment, Financial Assistance Revenue Bonds, Series 1996A, 5.600%, 7/01/12 7/06 at 102 Aaa 3,448,804 City of Bullhead, Bullhead Parkway Improvement District Improvement Bonds: 910,000 6.100%, 1/01/08 1/03 at 103 Baa 931,531 970,000 6.100%, 1/01/09 1/03 at 103 Baa 985,908 1,600,000 City of Lake Havasu, Municipal Property Corporation, Municipal Facilities Revenue Bonds, Series 1993, 6.000%, 6/01/08 6/02 at 101 Aaa 1,664,368 1,400,000 Maricopa Rural Road Improvement District of Pinal County, Arizona, Refunding Bonds, Series 1994, 7.000%, 7/01/07 7/99 at 101 N/R 1,470,630 1,500,000 The Industrial Development Authority of the County of Maricopa (Arizona), Insured Health Facility Revenue Bonds (Catholic Healthcare West), 1992 Series A, 5.750%, 7/01/11 7/02 at 102 Aaa 1,510,815 3,500,000 The Industrial Development Authority of the County of Maricopa (Arizona), Samaritan Health Services, Hospital System Revenue Refunding Bonds, Series 1990A, 7.000%, 12/01/16 No Opt. Call Aaa 4,078,235 600,000 The Industrial Development Authority of the County of Maricopa, Arizona, Baptist Hospital System Revenue Refunding Bonds, Series 1995, 5.500%, 9/01/16 9/05 at 101 Aaa 579,120 Kyrene Elementary School District No. 28 of Maricopa County, Arizona, School Improvement Bonds, Project of 1990, Series E (1993): 3,195,000 6.000%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 100 Aaa 3,406,381 605,000 6.000%, 7/01/12 7/02 at 100 Aaa 621,141 2,500,000 Paradise Valley Unified School District No. 69 of Maricopa County, Arizona, School Improvement Bonds, Project of 1990, Series D (1993), 5.875%, 7/01/12 7/03 at 102 Aaa 2,566,125 1,400,000 Chandler Unified School District No. 80 of Maricopa County, Arizona, General Obligation Refunding Bonds, Series 1993, 5.950%, 7/01/10 7/03 at 101 Aaa 1,455,454 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE The Industrial Development Authority of the County of Mohave, Hospital System Revenue Refunding Bonds (Medical Environments, Inc. and Phoenix Baptist Hospital and Medical Center, Inc.), Series 1993: $ 5,000,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa $ 5,632,000 1,000,000 7.000%, 7/01/16 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 1,140,950 2,000,000 The Industrial Development Authority of the County of Mohave (Arizona) Industrial Development Revenue Bonds, 1994 Series (Citizens Utilities Company Projects), 6.600%, 5/01/29 (Alternative Minimum Tax) 11/03 at 101 AAA 2,061,480 2,000,000 Hospital District No. One, Mohave County, Arizona, Refunding General Obligation Bonds (Kingman Regional Medical Center Project), Series 1992, 6.500%, 6/01/15 6/02 at 101 Aaa 2,112,520 1,000,000 The Industrial Development Authority of the County of Mohave, Health Care Revenue Refunding Bonds, Series 1996 (GNMA Collateralized - Chris Ridge and Silver Ridge Village Projects), 6.375%, 11/01/31 5/06 at 103 AAA 1,017,790 1,400,000 Navajo County, Arizona, Pollution Control Corporation, Pollution Control Revenue Refunding Bonds (Arizona Public Service Company), 1993 Series A, 5.875%, 8/15/28 8/03 at 102 Baa1 1,355,270 2,500,000 City of Phoenix, Arizona, General Obligation Refunding Bonds, Series 1992, 6.375%, 7/01/13 7/02 at 102 Aa1 2,646,125 1,600,000 City of Phoenix, Arizona, General Obligation Refunding Bonds, Series 1995A, 5.000%, 7/01/19 7/05 at 101 AA+ 1,458,576 4,700,000 City of Phoenix (Arizona), Civic Improvement Corporation, Wastewater System Lease Revenue Bonds, Series 1993, 6.125%, 7/01/23 (Pre-refunded to 7/01/03) 7/03 at 102 AAA 5,137,617 2,500,000 City of Phoenix Civic Improvement Corporation (Arizona), Wastewater System Lease Revenue Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/10 7/04 at 102 A1 2,364,300 2,150,000 Phoenix Civic Plaza Building Corporation, Senior Lien Excise Tax Revenue Bonds, Series 1994, 6.000%, 7/01/14 7/05 at 101 AA+ 2,200,676 2,720,000 City of Phoenix, Arizona, Water System Revenue Refunding Bonds, Series 1993, 5.500%, 7/01/22 7/03 at 101 AA 2,605,869 470,000 The Industrial Development Authority of the City of Phoenix, Arizona, Statewide Single Family Mortgage Revenue Bonds, Series 1995, 6.150%, 6/01/08 (Alternative Minimum Tax) 6/05 at 102 AAA 472,721 2,000,000 The Industrial Development Authority of the County of Pima (Arizona) Industrial Development Lease Obligation Refunding Revenue Bonds, 1988 Series A (Irvington Project), 7.250%, 7/15/10 1/02 at 103 Aaa 2,184,220 1,510,000 Metropolitan Domestic Water Improvement District of Pima County, Arizona, Special Assessment and Water Revenue Bonds, Series 1992, 6.200%, 1/01/12 1/03 at 101 Aaa 1,579,989 450,000 The Industrial Development Authority of the County of Pima (Arizona), Single Family Mortgage Revenue Refunding Bonds, Series 1995A, 6.500%, 2/01/17 8/05 at 102 A 459,572 1,800,000 Salt River Project Agricultural Improvement and Power District, Arizona, Salt River Project Electric System Revenue Bonds, 1992 Series D, 5.750%, 1/01/19 1/02 at 100 Aa 1,776,474 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,400,000 Salt River Project Agricultural Improvement and Power District, Electric System Revenue Refunding Bonds, 1993 Series C, 5.000%, 1/01/16 1/04 at 102 Aa $ 2,184,432 2,000,000 Tempe Union High School District No. 213 of Maricopa County, Arizona, School Improvement and Refunding Bonds, Series 1994, 6.000%, 7/01/12 7/04 at 101 Aaa 2,080,960 3,000,000 City of Tucson, Arizona, General Obligation Bonds, Series 1984-G (1994), 6.250%, 7/01/18 7/04 at 101 Aaa 3,122,040 City of Tucson, Arizona, General Obligation Bonds, Series 1994-B (1996): 1,290,000 5.750%, 7/01/18 7/06 at 101 Aa 1,296,011 1,000,000 5.750%, 7/01/19 7/06 at 101 Aa 1,001,230 5,000,000 Tucson Airport Authority, Inc. (Arizona), Airport Revenue Bonds, Refunding Series 1993, 5.700%, 6/01/13 6/03 at 102 Aaa 5,012,300 725,000 City of Tucson, Arizona, Certificates of Participation, Series 1994, 6.375%, 7/01/09 7/04 at 100 AA 764,281 3,500,000 City of Tucson, Arizona, Water System Revenue Refunding Bonds, Series 1992A, 5.750%, 7/01/18 7/02 at 102 A1 3,497,655 2,000,000 City of Tucson, Arizona, Water System Revenue Bonds, Series 1994-A (1996), 6.000%, 7/01/21 7/06 at 101 Aaa 2,046,920 100,000 University of Arizona Telecommunications System, Certificates of Participation, Series 1991, 6.500%, 7/15/12 7/02 at 102 A+ 107,706 650,000 Certificates of Participation, Series 1994B (University of Arizona Administrative and Parking Facilities Project), 6.000%, 7/15/23 7/04 at 102 Aaa 661,921 2,000,000 University Medical Center Corporation (Tucson, Arizona), Hospital Revenue Refunding Bonds, Series 1992, 6.250%, 7/01/16 7/02 at 102 Aaa 2,074,980 1,000,000 Arizona Board of Regents, University of Arizona, System Revenue Refunding Bonds, Series 1992, 6.250%, 6/01/11 6/02 at 102 AA 1,048,090 $88,270,000 Total Investments - (cost $87,106,922) - 99.1% 91,218,571 ============= TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.2% $ 100,000 Maricopa County, Arizona Pollution Control Corporation, Pollution Control Revenue Refunding Bonds (Arizona Public Service Company Palo Verde Project), 1994 Series F, Variable Rate Demand Bonds, 3.650%, 5/01/29+ A-1+ 100,000 100,000 Maricopa County, Arizona Pollution Control Corporation, Pollution Control Revenue Refunding Bonds (Arizona Public Service Company Palo Verde Project), 1994 Series B, Variable Rate Demand Bonds, 3.600%, 5/01/29+ A-1+ 100,000 $ 200,000 Total Temporary Investments - 0.2% 200,000 ============= Other Assets Less Liabilities - 0.7% 676,020 Net Assets - 100% $92,094,591 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 28 $60,710,825 66% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 19,335,174 21 PORTFOLIO OF A+ A1 3 5,969,661 6 INVESTMENTS A, A- A, A2, A3 1 459,572 1 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 3 3,272,709 4 TEMPORARY Non-rated Non-rated 1 1,470,630 2 INVESTMENTS): TOTAL 48 $91,218,571 100% * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. (NUM)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE Michigan Higher Education Student Loan Authority, Student Loan and Refunding Revenue Bonds, Series XV-A: $ 1,000,000 6.800%, 10/01/07 (Alternative Minimum Tax) 10/02 at 102 A $ 1,066,560 1,250,000 6.800%, 10/01/08 (Alternative Minimum Tax) 10/02 at 102 A 1,321,525 990,000 6.800%, 10/01/09 (Alternative Minimum Tax) 10/02 at 102 A 1,045,341 2,000,000 Michigan Municipal Bond Authority, Local Government Loan Program Revenue Bonds, Series 1992D, 6.650%, 5/01/12 5/02 at 102 A 2,096,420 3,100,000 Michigan Municipal Bond Authority, State Revolving Fund Reserve Bonds, Series 1992A, 6.600%, 10/01/18 10/02 at 102 Aa 3,272,608 2,390,000 Michigan South Central Power Agency, Power Supply System Revenue Refunding Bonds, 1991 Series, 6.750%, 11/01/10 11/01 at 102 A 2,541,717 410,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds (The Detroit Medical Center Obligated Group), Series 1988B, 8.125%, 8/15/08 8/98 at 102 A 441,324 1,450,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (McLaren Obligated Group), Series 1991A, 7.500%, 9/15/21 (Pre-refunded to 9/15/01) 9/01 at 102 Aaa 1,657,452 5,090,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds (The Detroit Medical Center Obligated Group), Series 1988B, 8.125%, 8/15/08 (Pre-refunded to 8/15/98) 8/98 at 102 Aaa 5,563,574 9,355,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, (Daughters of Charity National Health System-Providence Hospital), Series 1991, 7.000%, 11/01/21 11/01 at 102 Aa 10,067,009 8,800,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mercy Mount Clemens Corporation), Series 1992, 6.000%, 5/15/17 5/01 at 100 Aa 8,804,488 3,035,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan Obligated Group), Series 1992, 6.900%, 12/01/24 12/02 at 102 A 3,178,343 2,200,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds (Daughters of Charity National Health System-St. Mary's Medical Center of Saginaw, Inc.), Series 1995, 5.250%, 11/01/15 11/05 at 101 Aa 2,028,246 4,740,000 Michigan State Housing Development Authority, Single-Family Mortgage Revenue Bonds, 1991 Series B, 6.950%, 12/01/20 12/01 at 102 AA 5,005,772 2,440,000 Michigan State Housing Development Authority, Single-Family Mortgage Revenue Bonds, 1992 Series A, 6.875%, 6/01/23 6/02 at 102 AA 2,539,162 5,250,000 Michigan State Housing Development Authority, Limited Obligation Revenue Bonds (Parkway Meadows Project), Series 1991, 6.850%, 10/15/18 10/02 at 103 Aaa 5,501,003 8,720,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1991 Series B, 7.100%, 4/01/21 1/02 at 102 A+ 9,132,892 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,860,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1991 Series A, 7.150%, 4/01/10 (Alternative Minimum Tax) 1/02 at 102 A+ $ 1,950,154 4,330,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue Bonds (The Detroit Edison Company Pollution Control Bonds Project), Collateralized Series 1991CC, 6.950%, 9/01/21 9/01 at 102 Aaa 4,673,586 7,600,000 Michigan Strategic Fund Limited Obligation Refunding Revenue Bonds (The Detroit Edison Company Pollution Control Bonds Project), Collateralized Series 1991DD, 6.875%, 12/01/21 12/01 at 102 Aaa 8,280,732 4,255,000 State Building Authority, State of Michigan, 1991 Revenue Bonds, Series II, 6.800%, 10/01/21 10/01 at 102 AA- 4,579,657 4,800,000 State Building Authority, State of Michigan, 1991 Revenue Refunding Bonds, Series I, 6.250%, 10/01/20 10/01 at 102 AA- 4,856,064 4,000,000 State of Michigan, Comprehensive Transportation Refunding Bonds, Series 1992B, 5.750%, 5/15/11 5/02 at 100 AA- 3,989,760 7,200,000 State of Michigan, State Trunk Line Fund Bonds, Series 1989A, 7.000%, 8/15/17 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa 7,869,240 4,935,000 Anchor Bay School District, Counties of Macomb and St. Clair, State of Michigan, 1993 School Building and Site Bonds (General Obligation Unlimited Tax), 5.550%, 5/01/19 5/03 at 101 1/2 Aaa 4,794,895 1,200,000 Berkley School District, County of Oakland, State of Michigan, 1995 School Building and Site Bonds, (General Obligation-Unlimited Tax), 6.000%, 1/01/19 1/05 at 101 Aaa 1,214,292 5,200,000 Chippewa Valley Schools, County of Macomb, State of Michigan, 1993 Refunding Bonds (General Obligation- Unlimited Tax), 5.000%, 5/01/21 5/03 at 102 Aaa 4,672,252 2,450,000 The Economic Development Corporation of the City of Dearborn, Hospital Revenue Bonds (Oakwood Obligated Group), Series 1995A, 5.750%, 11/15/15 11/05 at 102 Aaa 2,431,429 1,000,000 Dearborn Municipal Building Authority, Limited Tax, General Obligation (1991 Building Authority Bonds), 5.000%, 6/01/16 6/04 at 101 Aaa 914,620 2,000,000 School District of the City of Detroit, Wayne County, Michigan, School Building and Site Improvement Bonds (Unlimited Tax General Obligation), Series 1996A, 5.700%, 5/01/25 5/06 at 102 Aaa 1,959,640 7,000,000 The Economic Development Corporation of the City of Detroit, Resource Recovery Revenue Bonds, Series 1991A, 6.875%, 5/01/09 (Alternative Minimum Tax) 5/01 at 102 Aaa 7,442,960 685,000 City of Detroit, County of Wayne, Michigan, Sewage Disposal System Revenue Bonds (1979 Series), 6.900%, 12/15/99 No Opt. Call Aaa 705,310 6,500,000 City of Detroit, Michigan Water Supply System Revenue and Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/23 7/04 at 102 Aaa 5,759,260 1,600,000 Gaylord Community Schools, Counties of Ostego and Antrim, State of Michigan, 1992 School Building and Site and Refunding Bonds, 6.600%, 5/01/21 (Pre-refunded to 5/01/02) 5/02 at 102 Aa 1,771,440 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 3,075,000 Goodrich Area Schools, Counties of Genesee, Oakland and Lapeer, State of Michigan, 1995 School Building and Site and Refunding Bonds (General Obligation- Unlimited Tax), 5.875%, 5/01/24 5/05 at 102 Aaa $ 3,081,950 2,500,000 Grand Ledge Public Schools, Counties of Eaton, Clinton and Ionia, State of Michigan, 1995 Refunding Bonds, 5.375%, 5/01/24 5/05 at 102 Aaa 2,362,275 3,000,000 Grand Rapids Community College, Community College Bonds, Series 1993 (General Obligation Limited Tax), 5.000%, 5/01/21 5/03 at 102 AA- 2,695,530 1,325,000 Greenville Public Schools, Counties of Montcalm, Kent and Ionia, State of Michigan, 1995 School Building and Site Bonds (General Obligation-Unlimited Tax), 5.750%, 5/01/14 5/04 at 101 Aaa 1,328,299 1,000,000 Grosse Ile Township School District, School Improvement Refunding Bonds, General Obligation, Series 1996, 6.000%, 5/01/22 (WI) 5/07 at 100 Aaa 1,004,210 1,250,000 Gull Lake Community Schools, Counties of Kalamazoo, Barry and Calhoun, State of Michigan, 1991 School Building and Site Bonds, 6.800%, 5/01/21 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 1,384,188 2,000,000 Hart Public Schools, County of Oceana, State of Michigan, 1995 School Building and Site Bonds (General Obligation-Unlimited Tax), 5.800%, 5/01/16 5/05 at 101 Aaa 2,002,180 3,100,000 Hemlock Public School District Counties of Saginaw and Midland, State of Michigan, 1992 School Building and Site and Refunding Bonds, 6.750%, 5/01/21 (Pre-refunded to 5/01/02) 5/02 at 102 Aa 3,453,307 1,000,000 Huron Valley School District, Counties of Oakland and Livingston, State of Michigan, 1996 (General Obligation-Unlimited Tax), 5.875%, 5/01/16 (WI) 5/07 at 100 Aaa 1,002,260 4,225,000 Lake Orion Community School District, County of Oakland, State of Michigan, 1995 Refunding Bonds (General Obligation-Unlimited Tax), 5.500%, 5/01/20 5/05 at 101 Aaa 4,075,435 2,000,000 Lincoln Park School District, General Obligation Bonds, Series 1996, 5.900%, 5/01/26 5/06 at 101 AAA 2,005,680 1,000,000 Marquette Area Public Schools, County of Marquette, State of Michigan, 1991 School Building and Site Bonds, Series B (General Obligation-Unlimited Tax), 6.700%, 5/01/21 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 1,103,310 2,000,000 Mason Public Schools, County of Ingham, State of Michigan, 1995 School Building and Site Bonds (General Obligation-Unlimited Tax), 5.400%, 5/01/15 5/05 at 101 1/2 Aaa 1,925,680 6,400,000 Mattawan Consolidated School, Counties of Van Buren and Kalamazoo, State of Michigan, 1992 Refunding Bonds (General Obligation-Unlimited Tax), 6.300%, 5/01/17 5/02 at 102 AA 6,594,752 7,000,000 County of Monroe, Michigan, Pollution Control Revenue Bonds (The Detroit Edison Company Monroe and Fermi Plants Project), Collateralized Series I-1992, 6.875%, 9/01/22 (Alternative Minimum Tax) 9/02 at 102 Aaa 7,500,010 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,150,000 North Branch Area Schools, County of Lapeer, State of Michigan, 1992 School Building and Site and Refunding Bonds (General Obligation-Unlimited Tax), 6.600%, 5/01/17 (Pre-refunded to 5/01/02) 5/02 at 102 AA $ 2,380,373 1,475,000 North Branch Area Schools, County of Lapeer, State of Michigan, 1993 Refunding Bonds (General Obligation- Unlimited Tax), 5.375%, 5/01/21 5/03 at 101 1/2 Aaa 1,397,666 2,000,000 Board of Trustees of Oakland University, Michigan, General Revenue Bonds, Series 1995, 5.750%, 5/15/15 5/05 at 102 Aaa 2,002,200 2,000,000 Oxford Area Community Schools, Counties of Oakland and Lapeer, State of Michigan, 1996 School Building and Site Bonds (General Obligation-Unlimited Tax), 5.500%, 5/01/21 5/06 at 101 Aaa 1,927,840 1,500,000 Perry Public Schools, Counties of Shiawassee and Ingham, State of Michigan, 1992 School Building and Site Bonds (General Obligation-Unlimited Tax), 6.375%, 5/01/22 (Pre-refunded to 5/01/02) 5/02 at 101 1/2 Aaa 1,642,005 4,650,000 Plymouth-Canton Community Schools, Counties of Wayne and Washtenaw, State of Michigan, 1991 School Building and Site and Refunding Bonds, Series B, 6.800%, 5/01/11 (Pre-refunded to 5/01/01) 5/01 at 101 Aa 5,103,468 1,000,000 Reeths-Puffer Schools, County of Muskegon, State of Michigan, 1995 School Building and Site and Refunding Bonds, 5.750%, 5/01/15 5/05 at 101 Aaa 1,000,300 6,385,000 City of Royal Oak Hospital Finance Authority (Michigan), Hospital Revenue Bonds (William Beaumont Hospital), Series 1991D, 6.750%, 1/01/20 1/01 at 102 Aa 7,025,479 4,845,000 Saginaw-Midland Municipal Water Supply Corporation, State of Michigan, Water Supply Revenue Bonds (Limited Tax General Obligation), Series 1992, 6.875%, 9/01/16 9/04 at 102 A 5,298,928 2,400,000 Three Rivers Community Schools, Counties of Cass and St. Joseph, State of Michigan, 1996 School Building and Site Bonds (General Obligation-Unlimited Tax), 6.000%, 5/01/23 5/06 at 102 Aaa 2,420,880 Regents of the University of Michigan, Medical Service Plan Revenue Bonds, Series 1991: 2,195,000 0.000%, 12/01/10 No Opt. Call Aa 952,652 9,250,000 6.500%, 12/01/21 12/01 at 102 AA- 9,634,153 4,200,000 Warren Consolidated Schools, Counties of Macomb and Oakland, State of Michigan, 1991 School Building and Site and Refunding Bonds (General Obligation- Unlimited Tax), 6.700%, 5/01/21 (Pre-refunded to 5/01/01) 5/01 at 102 Aa 4,616,892 5,280,000 The Economic Development Corporation of the City of Warren, Nursing Home Revenue Refunding Bonds (GNMA Mortgage-Backed Security-Autumn Woods Project), Series 1992, 6.900%, 12/20/22 3/02 at 101 Aaa 5,516,016 2,505,000 Charter County of Wayne, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County Airport), Subordinate Lien, Series 1991B, 6.750%, 12/01/21 (Alternative Minimum Tax) 12/01 at 102 Aaa 2,670,330 1,895,000 Western Townships Utilities Authority, Sewage Disposal System Bonds, Series 1989, 8.300%, 1/01/19 1/99 at 102 BBB+ 2,085,181 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE Western Townships Utilities Authority, Sewage Disposal System Refunding Bonds, Series 1991: $ 1,500,000 6.750%, 1/01/15 1/02 at 100 Aaa $ 1,607,354 6,250,000 6.500%, 1/01/19 1/02 at 100 Aaa 6,561,312 2,725,000 Williamston Community School District, General Obligation-Unlimited Tax, Series 1996 (Q-SBLF), 5.500%, 5/01/25 No Opt. Call Aaa 2,644,748 5,000,000 City of Wyandotte, County of Wayne, State of Michigan, 1992 Electric Revenue Refunding Bonds, 6.250%, 10/01/17 10/02 at 102 Aaa 5,145,850 1,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series X, 5.500%, 7/01/25 7/05 at 100 A- 937,540 $239,915,000 Total Investments - (cost $232,818,656) - 98.5% 247,218,960 ============= TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 1.6% $ 2,700,000 The Economic Development Corporation of the County of Delta (Michigan), Environmental Improvement Revenue Bonds (Mead-Escanaba Paper Company Project), Series 1992E, Variable Rate Demand Bonds, 3.550%, 12/01/23+ A-1+ 2,700,000 1,000,000 The Economic Development Corporation of the County of Delta (Michigan), Environmental Improvement Revenue Bonds (Mead-Escanaba Paper Company Project), Series 1992, Variable Rate Demand Bonds, 3.650%, 12/01/23+ (Alternative Minimum Tax) A-1+ 1,000,000 200,000 Regents of TheUniversity of Michigan, Adjustable Rate Demand Hospital Revenue Refunding Bonds, Series 1992A, Variable Rate Demand Bonds, 3.750%, 12/01/19+ VMIG-1 200,000 $ 3,900,000 Total Temporary Investments - 1.6% 3,900,000 ============= Other Assets Less Liabilities - (0.1%) (85,972) Net Assets - 100% $251,032,988 ============ NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 39 $126,752,223 51% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 89,370,812 36 PORTFOLIO OF A+ A1 2 11,083,046 5 INVESTMENTS A, A- A, A2, A3 9 17,927,698 7 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 2,085,181 1 TEMPORARY INVESTMENTS): TOTAL 70 $247,218,960 100% * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. (WI) Security purchased on a when-issued basis (note 1). + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. (NMP)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,250,000 Michigan Higher Eduction Student Loan Authority, Student Loan and Refunding Revenue Bonds, Series XV-A, 6.700%, 10/01/05 (Alternative Minimum Tax) 10/02 at 102 A $ 1,299,575 1,950,000 Michigan Municipal Bond Authority, State Revolving Fund Revenue Bonds, Series 1994, 7.000%, 10/01/03 No Opt. Call Aa 2,189,168 3,750,000 Michigan Public Power Agency, Belle River Project Refunding Revenue Bonds, 1993 Series A, 5.250%, 1/01/18 1/03 at 102 AA- 3,444,938 1,775,000 Michigan South Central Power Agency, Power Supply System Revenue Refunding Bonds, 1992 Series, 5.700%, 11/01/04 No Opt. Call Aaa 1,865,969 2,500,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Daughters of Charity National Health System-Providence Hospital), Series 1991, 7.000%, 11/01/21 11/01 at 102 Aa 2,690,275 4,000,000 Michigan State Hospital Finance Authority (Michigan), Hospital Revenue and Refunding Bonds (Henry Ford Health System), Series 1992A, 5.750%, 9/01/17 9/02 at 102 Aa 3,916,120 3,000,000 Michigan State Hospital Finance Authority (Michigan), Hospital Revenue Refunding Bonds (St. John Hospital), Series 1993A, 6.000%, 5/15/13 5/03 at 102 Aaa 3,056,040 Michigan State Hospital Finance Authority, Revenue and Refunding Bonds (The Detroit Medical Center Obligated Group), Series 1993A: 3,000,000 6.250%, 8/15/13 8/03 at 102 A 3,046,410 3,200,000 6.500%, 8/15/18 8/03 at 102 A 3,271,104 4,000,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds (Oakwood Hospital Obligated Group), Series 1993A, 5.500%, 11/01/13 11/03 at 102 Aaa 3,895,360 1,500,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds (The Detroit Medical Center Obligated Group), Series 1993B, 5.000%, 8/15/02 No Opt. Call A 1,495,335 2,000,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds (Otsego Memorial Hospital Gaylord, Michigan), Series 1995, 6.250%, 1/01/20 1/05 at 102 AA 2,043,620 5,250,000 Michigan State Housing Development Authority, Single Family Mortgage Revenue Bonds, 1995 Series A, 6.800%, 12/01/16 6/05 at 102 AA+ 5,457,428 2,400,000 Michigan State Housing Development Authority, Limited Obligation Revenue Bonds (Walled Lake Villa Project), Series 1993, 6.000%, 4/15/18 4/04 at 103 Aaa 2,391,096 1,500,000 Michigan State Housing Development Authority, Limited Obligation Revenue Bonds (Brenton Village Green Project), Series 1993, 5.625%, 10/15/18 10/03 at 103 Aaa 1,426,035 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1992 Series A: 4,000,000 6.500%, 4/01/06 10/02 at 102 A+ 4,192,920 4,300,000 6.600%, 4/01/12 10/02 at 102 A+ 4,450,199 1,000,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1993 Series A, 5.875%, 10/01/17 4/03 at 102 Aaa 987,390 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 3,050,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) 12/02 at 102 A1 $ 3,262,951 8,500,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue Bonds (Consumers Power Company Project), Collateralized Series 1993B, 5.800%, 6/15/10 6/03 at 102 Aaa 8,671,105 1,000,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (WMX Technologies, Inc. Project), Series 1993, 6.000%, 12/01/13 (Alternative Minimum Tax) 12/03 at 102 A1 1,005,530 1,000,000 State Building Authority, State of Michigan, 1991 Revenue Bonds, Series II, 6.250%, 10/01/20 10/01 at 102 AA- 1,011,680 2,750,000 State Building Authority, State of Michigan, 1991 Revenue Refunding Bonds, Series I, 6.250%, 10/01/20 10/01 at 102 AA- 2,782,120 3,275,000 State of Michigan, Comprehensive Transportation Bonds, Series 1992A, 5.750%, 5/15/12 5/02 at 100 AA- 3,262,915 2,500,000 State of Michigan, State Trunk Line Fund Bonds, Series 1989A, 7.000%, 8/15/17 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa 2,732,375 1,750,000 State of Michigan, State Trunk Line Fund Bonds, Series 1994A, 5.700%, 11/15/15 11/04 at 102 AA- 1,729,473 1,500,000 City of Ann Arbor, County of Washtenaw, State of Michigan, Water Supply System Revenue Bonds, Series T, 5.500%, 2/01/13 2/03 at 101 1/2 Aaa 1,475,265 2,400,000 Chippewa Valley Schools, County of Macomb, State of Michigan, 1993 Refunding Bonds (General Obligation- Unlimited Tax), 5.000%, 5/01/21 5/03 at 102 Aaa 2,156,424 3,000,000 Clarkston Community Schools, County of Oakland, State of Michigan, 1993 School Building and Site and Refunding Bonds, 5.900%, 5/01/16 5/03 at 102 AA 3,012,900 2,500,000 School District of the City of Detroit Wayne County, Michigan, School Building and Site Bonds (Unlimited Tax General Obligation), Series 1992, 6.250%, 5/01/12 5/01 at 102 AA 2,592,175 6,500,000 City of Detroit, Michigan, Convention Facility Limited Tax Revenue Refunding Bonds (Cobo Hall Expansion Project), Series 1993, 5.250%, 9/30/12 9/03 at 102 Aaa 6,173,440 4,550,000 City of Detroit, Michigan, Sewage Disposal System Revenue and Revenue Refunding Bonds, Series 1993-A, 5.700%, 7/01/13 7/03 at 102 Aaa 4,523,883 4,500,000 City of Detroit, Michigan, Water Supply System Revenue and Revenue Refunding Bonds, Series 1993, 4.750%, 7/01/19 7/04 at 102 Aaa 3,851,550 3,000,000 Dexter Community Schools, Counties of Washtenaw and Livingston, State of Michigan, 1993 School Building and Site and Refunding Bonds (General Obligation Unlimited Tax), 5.000%, 5/01/17 5/03 at 102 AA 2,687,280 2,000,000 Board of Control of Ferris State University, General Revenue Bonds, Series 1993, 6.250%, 10/01/19 10/03 at 102 Aaa 2,069,560 6,750,000 The City of Grand Haven, Michigan, Electric System Revenue Refunding Bonds, 1993 Series, 5.250%, 7/01/16 7/03 at 102 Aaa 6,371,595 4,000,000 City of Kalamazoo Hospital Finance Authority, Hospital Revenue Refunding and Improvement Bonds (Bronson Methodist Hospital), Series 1996, 5.750%, 5/15/16 5/06 at 102 Aaa 3,973,920 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,000,000 Kent Hospital Finance Authority (Michigan), Hospital Revenue Refunding Bonds (Butterworth Hospital), Series 1993A, 5.100%, 1/15/07 No Opt. Call A1 $ 975,070 2,000,000 City of Lansing, Board of Water and Light, Ingham and Easton Counties, State of Michigan, Water Supply and Electric Utility System Revenue Bonds, Series 1994A, 4.900%, 7/01/11 7/01 at 100 Aa 1,832,480 6,000,000 County of Monroe, Michigan, Pollution Control Revenue Bonds (The Detroit Edison Company Project), Series A-1994, 6.350%, 12/01/04 (Alternative Minimum Tax) No Opt. Call Aaa 6,533,220 County of Monroe, Michigan, Pollution Control Revenue Bonds (The Detroit Edison Company Project), Series CC-1992: 2,500,000 6.550%, 6/01/24 (Alternative Minimum Tax) 6/03 at 102 Aaa 2,611,250 1,500,000 6.550%, 9/01/24 (Alternative Minimum Tax) 9/03 at 103 Aaa 1,568,250 Mount Clemens Housing Corporation, Multi-Family Housing Refunding Revenue Bonds, Series 1992A (FHA Insured Mortgage Loan-Section 8 Assisted Project): 1,000,000 6.600%, 6/01/13 6/03 at 102 AAA 1,040,570 1,500,000 6.600%, 6/01/22 6/03 at 102 AAA 1,539,150 1,130,000 Board of Trustees of Oakland University, Michigan, General Revenue Bonds, Series 1995, 5.750%, 5/15/15 5/05 at 102 Aaa 1,131,243 1,000,000 Reeths-Puffer Schools, County of Muskegon, State of Michigan, 1995 School Building and Site and Refunding Bonds, 5.750%, 5/01/15 5/05 at 101 Aaa 1,000,300 3,615,000 Saginaw-Midland Municipal Water Supply Corporation, State of Michigan, Water Supply System Revenue Bonds (Limited Tax General Obligation) Series 1993, 5.250%, 9/01/16 9/02 at 101 1/2 A 3,358,480 2,650,000 Regents of the University of Michigan, Hospital Revenue Bonds, Series 1990, 6.375%, 12/01/24 12/00 at 100 Aa 2,695,738 3,000,000 Regents of the University of Michigan, Hospital Revenue Refunding Bonds, Series 1993A, 5.500%, 12/01/21 12/02 at 102 Aa 2,803,799 Charter County of Wayne, Michigan, Detroit Metropolitan Wayne County Airport, Airport Revenue Bonds (Detroit Metropolitan Wayne County Airport) Subordinated Lien, Series 1993B: 1,000,000 4.750%, 12/01/02 (Alternative Minimum Tax) No Opt. Call Aaa 992,390 1,000,000 4.800%, 12/01/03 (Alternative Minimum Tax) No Opt. Call Aaa 987,300 1,000,000 Charter County of Wayne, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County Airport), Subordinate Lien, Series 1986, 8.000%, 12/01/14 12/96 at 102 Aaa 1,032,530 3,750,000 Board of Trustees of Western Michigan University, General Revenue Bonds, Series 1993A, 5.500%, 7/15/16 7/03 at 102 Aaa 3,650,288 1,000,000 Western Townships Utilities Authority, Sewage Disposal System Refunding Bonds, Series 1991, 6.500%, 1/01/10 1/02 at 100 AAA 1,059,420 5,625,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds, Series 1993 (General Obligation Bonds), 5.375%, 7/01/06 No Opt. Call Aaa 5,794,762 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1995 (General Obligation Bonds), 5.750%, 7/01/24 7/05 at 101 1/2 Aaa $ 1,001,150 5,750,000 Puerto Rico Public Buildings Authority, Public Education and Health Facilities Refunding Bonds, Series M, Guaranteed by the Commonwealth of Puerto Rico, 5.750%, 7/01/15 7/03 at 101 1/2 A 5,604,237 1,000,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1993 Series A (American Airlines, Inc. Project), 6.300%, 6/01/23 (Alternative Minimum Tax) 6/03 at 102 Baa3 1,005,400 $162,920,000 Total Investments - (cost $158,928,820) - 98.8% 162,682,150 ============= TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.3% $ 500,000 Regents of The University of Michigan, Hospital Revenue ============= Bonds, Series 1995A (Adjustable Rate Demand), Variable Rate Demand Bonds, 3.750%, 12/01/27+ VMIG-1 500,000 Other Assets Less Liabilities - 0.9% 1,505,587 Net Assets - 100% $164,687,737 ============ NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 30 $ 85,562,830 52% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 16 44,152,109 27 PORTFOLIO OF A+ A1 5 13,886,670 9 INVESTMENTS A, A- A, A2, A3 6 18,075,141 11 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 1,005,400 1 TEMPORARY INVESTMENTS): TOTAL 58 $162,682,150 100% * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC. (NUO)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,250,000 Ohio Air Quality Development Authority, State of Ohio, Air Quality Development Refunding Revenue Bonds, Series 1992 (Ashland Oil, Inc. Project), 6.850%, 4/01/10 4/01 at 102 Baa1 $ 2,316,263 4,000,000 Ohio Air Quality Development Authority, State of Ohio, Collateralized Pollution Control Revenue Refunding Bonds, Series 1992 (The Cleveland Electric Illuminating Company Project), 8.000%, 12/01/13 6/02 at 103 Aaa 4,700,280 2,000,000 Ohio Air Quality Development Authority (JMG Funding Limited Partnership Project), Alternative Minimum Tax, 6.375%, 1/01/29 10/04 at 102 Aaa 2,075,520 270,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1988 Series A, Alternative Minimum Tax, 8.250%, 2/01/16 2/98 at 103 AAA 283,773 9,825,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1989 Series A, Alternative Minimum Tax, 7.650%, 3/01/29 9/99 at 102 AAA 10,305,050 660,000 Ohio Water Development Authority, State of Ohio, Water Development Revenue Refunding Bonds, Refunding and Improvement Series, 8.000%, 12/01/18 (Pre-refunded to 12/01/00) 12/00 at 100 AAA 701,527 1,000,000 Ohio Water Development Authority, State of Ohio, Water Development Revenue Bonds, 1995 Fresh Water Series, 5.900%, 12/01/21 6/05 at 102 Aaa 1,003,480 1,500,000 State of Ohio (OPFC), Higher Education Capital Facilities Bonds, Series II-1992A, 5.500%, 12/01/06 12/01 at 102 A+ 1,529,985 2,400,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational Facility Mortgage Revenue Bonds (University of Dayton 1992 Project), 6.600%, 12/01/17 12/03 at 102 Aaa 2,597,904 750,000 State of Ohio (Ohio Higher Educational Facility Commission),Higher Educational Facility, Revenue Bonds (John Carroll University Project), 5.600%, 10/01/13 10/03 at 102 A 728,610 2,850,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational Facility Revenue Bonds (Oberlin College Project), Series 1993, 5.375%, 10/01/15 10/03 at 102 AA 2,770,086 500,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational Facility Revenue Bonds (Kenyon College Project), 5.375%, 12/01/16 12/03 at 102 A+ 475,060 1,350,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational Facility Revenue Refunding Bonds (John Carroll University), 5.300%, 11/15/14 11/03 at 102 A 1,291,248 1,000,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational Facility Revenue Bonds (University of Dayton 1994 Project), 5.800%, 12/01/14 12/04 at 102 Aaa 1,002,610 1,000,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational Facility Revenue Bonds, Series 1992 (Case Western Reserve University Project), 6.000%, 10/01/22 10/02 at 102 Aa 1,008,570 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 3,000,000 State of Ohio Department of Transportation, Certificates of Participation (Richenbacker Port Authority Improvements), Alternative Minimum Tax, 6.125%, 4/15/15 10/97 at 105 A+ $ 2,894,910 1,000,000 State of Ohio (Ohio Building Authority), State Facilities Bonds (Juvenile Correctional Building Fund Projects), 1992 Series B, 6.000%, 10/01/12 10/02 at 102 A+ 1,013,090 3,000,000 State of Ohio (Ohio Building Authority), State Facilities Bonds (Adult Correctional Building Fund Projects), 1993 Series A, 6.125%, 10/01/12 10/03 at 102 A+ 3,080,070 1,000,000 State of Ohio, Full Faith and Credit, General Obligation Infrastructure Improvement Bonds, Series 1992, 0.000%, 9/01/99 No Opt. Call Aa 869,950 4,000,000 State of Ohio, Ohio Air Quality Development Authority, Air Quality Development Revenue Refunding Bonds (JMG Funding, Limited Partnership Project), Series 1994, Alternative Minimum Tax, 6.375%, 4/01/29 10/04 at 102 Aaa 4,151,040 5,035,000 State of Ohio, Turnpike Revenue Bonds, 1996 Series A, Issued by the Ohio Turnpike Commission, 5.500%, 2/15/26 2/06 at 102 Aaa 4,895,279 1,575,000 The Ohio State University (A State University of Ohio), General Receipts Bonds, Series 1992 A1, 5.875%, 12/01/12 12/02 at 102 AA- 1,586,198 500,000 Adams County/Ohio Valley School District, Counties of Adams and Highland, Ohio, School Improvement Unlimited Tax General Obligation Bonds, Series 1995, 5.250%, 12/01/21 12/05 at 102 Aaa 472,225 1,830,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital Facilities Revenue Bonds, Series 1993A (Summa Health System Project), 5.500%, 11/15/13 11/03 at 102 A 1,735,023 1,500,000 City of Akron, Ohio, Waterworks System Mortgage Revenue Improvement Bonds, Series 1991, 6.550%, 3/01/12 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 1,645,950 2,000,000 County of Ashtabula, Ohio, Industrial Development Refunding Revenue Bonds, 1992 Series A (Ashland Oil, Inc. Project), 6.900%, 5/01/10 5/02 at 102 Baa1 2,094,880 2,000,000 City of Barberton, Ohio Hospital Facilities Revenue Bonds, Series 1992 (The Barberton Citizens Hospital Company Project), 7.250%, 1/01/12 1/02 at 102 A 2,142,580 Berea City School District, Ohio, School Improvement Bonds, Series 1993 (General Obligation Unlimited Tax Bonds): 650,000 7.500%, 12/15/06 12/03 at 102 Aaa 764,998 680,000 7.450%, 12/15/07 12/03 at 102 Aaa 798,218 825,000 Bowling Green State University, Ohio, General Receipts Bonds, Series 1991, 6.700%, 6/01/07 6/01 at 102 A 889,169 1,750,000 Brecksville-Broadview Heights City School District, Ohio, School Improvement Bonds, Series 1996 (General Obligation Unlimited Tax Bonds), 6.500%, 12/01/16 12/06 at 102 Aaa 1,870,225 1,000,000 Buckeye Local School District General Obligation, 5.625%, 12/01/11 12/03 at 102 Aaa 1,007,490 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,000,000 County of Butler, Ohio, Hospital Facilities Revenue Refunding and Improvement Bonds, Series 1991 (Fort Hamilton-Hughes Memorial Hospital Center), 7.500%, 1/01/10 1/02 at 102 Baa $ 1,063,120 535,000 City of Hamilton and County of Butler, Hospital Facilities Revenue Refunding, Fort Hamilton-Hughes Memorial Hospital Center, 7.250%, 1/01/01 No Opt. Call Baa 550,151 City of Cambridge, Ohio, Hospital Revenue Refunding Bonds, Series 1991 (Guernsey Memorial Hospital Project): 1,680,000 8.000%, 12/01/06 12/01 at 102 BBB 1,812,552 750,000 8.000%, 12/01/11 12/01 at 102 BBB 802,178 2,000,000 County of Carroll, Ohio, Hospital Improvement Revenue Bonds, Series 1991 (Timken Mercy Medical Center), 7.125%, 12/01/18 (Pre-refunded to 12/01/01) 12/01 at 102 AAA 2,260,040 2,675,000 County of Clermont, Ohio, Hospital Facilities Revenue Refunding Bonds, Series 1993 A (Mercy Health System), 5.875%, 1/01/15 1/03 at 102 Aaa 2,678,371 1,385,000 County of Clermont, Ohio, Mortgage Revenue Bonds, Series 1994 (GNMA Collateralized-S.E.M. Villa II Project), Series 1994-A, 5.950%, 2/20/30 8/03 at 103 Aaa 1,353,491 2,500,000 County of Clermont, Ohio, Waterworks System Revenue Bonds, Series 1991, Clermont County Sewer District, 6.625%, 12/01/14 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 2,772,925 1,000,000 City of Cleveland, Ohio, Various Purpose General Obligation Bonds, Series 1991A, 6.750%, 10/01/11 (Pre-refunded to 10/01/01) 10/01 at 102 Aaa 1,111,890 2,075,000 City of Cleveland, Ohio, Airport System Revenue Bonds, 1990 Series A, 7.400%, 1/01/20 (Alternative Minimum Tax) 1/00 at 102 Aaa 2,245,150 3,000,000 City of Cleveland, Ohio, Public Power System Improvement First Mortgage Revenue Bonds, Series 1991B, 7.000%, 11/15/17 11/01 at 102 Aaa 3,319,530 2,000,000 City of Cleveland, Ohio, Public Power System First Mortgage Revenue Bonds, Series 1994A, 7.000%, 11/15/24 11/04 at 102 Aaa 2,250,680 1,000,000 City of Cleveland, Ohio, Regional Sewer District, 6.750%, 4/01/07 (Pre-refunded to 5/15/04) 5/04 at 100 Aaa 1,120,900 1,000,000 Cleveland State University (AState University of Ohio), General Receipts Bonds, Series 1993, 5.500%, 6/01/13 6/03 at 102 Aaa 987,500 City of Cleveland, Ohio, Waterworks Improvement First Mortgage Revenue Refunding Bonds, Series F, 1992B: 2,965,000 6.500%, 1/01/11 1/02 at 102 Aaa 3,136,940 3,720,000 6.250%, 1/01/16 1/02 at 102 Aaa 3,882,080 1,575,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage Revenue Bonds, Series F, 1992 A, 6.500%, 1/01/21 (Pre-refunded to 1/01/02) 1/02 at 102 Aaa 1,733,209 1,000,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage Refunding Revenue Bonds, Series G, 1993, 5.500%, 1/01/21 No Opt. Call Aaa 975,680 4,350,000 City of Cleveland, Waterworks Improvement and Refunding Revenue Bonds, 1st Mortgage Series 1996-H, 5.750%, 1/01/26 1/06 at 102 Aaa 4,358,787 35,000 City of Cleveland, Ohio, First Mortgage Revenue Refunding Bonds, Series F, 1992-B, 6.500%, 1/01/11 (Pre-refunded to 1/01/02) 1/02 at 102 Aaa 38,516 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,000,000 City of Columbus, Ohio, General Obligation Refunding Bonds, Series 1992B, 6.500%, 1/01/10 1/02 at 102 Aaa $ 2,151,060 1,950,000 City School District of Columbus, Franklin County, Ohio, School Building Renovation and Improvement Bonds, Series 1992 (General, Obligation-Unlimited Tax), 6.650%, 12/01/12 (Pre-refunded to 12/01/02) 12/02 at 102 Aaa 2,183,162 Columbus Municipal Airport Authority, Airport Improvement Revenue Bonds, Series 1994A (Port Columbus International Airport Project), Alternative Minimum Tax: 830,000 5.950%, 1/01/08 1/04 at 102 Aaa 850,991 1,000,000 6.000%, 1/01/14 1/04 at 102 Aaa 1,008,880 2,500,000 City of Columbus, Ohio, Sewerage System Revenue Refunding Bonds, Series 1992, 6.250%, 6/01/08 6/02 at 102 AA- 2,639,775 3,000,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds, Series 1991 (Meridia Health System), 7.000%, 8/15/23 8/01 at 102 A1 3,224,100 1,500,000 County of Cuyahoga, Ohio, Hospital Improvement Revenue Bonds, Series 1992 (University Hospitals Health System, Inc. Project), 6.500%, 1/15/19 1/02 at 102 Aa 1,542,225 1,170,000 County of Cuyahoga, Ohio, Hospital Facilities Revenue Bonds, Series 1993, Health Cleveland, Inc. (Fairview General Hospital Project), 6.300%, 8/15/15 2/03 at 102 A1 1,178,787 3,200,000 City of Dayton, Ohio, Airport Revenue Refunding Bonds, Series 1992 (James M. Cox Dayton International Airport), 5.800%, 12/01/11 12/02 at 101 1/2 Aaa 3,235,712 2,000,000 Dublin City School District, Franklin, Delaware and Union Counties, Ohio, Various Purpose School Building Construction and Improvement Bonds (General Obligation-Unlimited Tax), 6.200%, 12/01/19 12/02 at 102 Aaa 2,066,080 1,300,000 County of Franklin, Ohio, Refunding Bonds, Series 1993 (Limited Tax General Obligation Bonds), 5.375%, 12/01/20 12/08 at 102 Aaa 1,246,791 2,200,000 The Franklin County Convention Facilities Authority (Ohio), Tax and Lease Revenue Anticipation Refunding Bonds, Series 1992, 5.850%, 12/01/19 12/02 at 102 Aaa 2,187,328 3,450,000 County of Franklin, Ohio, First Mortgage Revenue, Series 1979 (OCLC Inc. Project), 7.500%, 6/01/09 No Opt. Call Aaa 3,847,095 1,365,000 County of Franklin, Ohio, Health Care Facilities Revenue Bonds, Series 1993 (Ohio Presbyterian Retirement Services), 6.500%, 7/01/23 7/03 at 102 N/R 1,276,452 1,500,000 County of Franklin, Ohio, Hospital Revenue Refunding and Improvement Bonds, 1992 Series A (The Children's Hospital Project), 6.600%, 5/01/13 11/02 at 102 Aa 1,588,215 3,000,000 County of Franklin, Ohio, Hospital Facilities Refunding Revenue Bonds, Series 1993A (Riverside United Methodist Hospital Project), 5.750%, 5/15/20 5/03 at 102 Aa 2,925,720 County of Franklin, Ohio, Hospital Refunding and Improvement Revenue Bonds, 1996 Series A (The Children's Hospital Project): 1,000,000 5.750%, 11/01/20 11/06 at 101 Aa 988,940 1,500,000 5.875%, 11/01/25 11/06 at 101 Aa 1,497,765 990,000 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue Bonds, Series 1994A (FHA Insured Mortgage Loan-Hamilton Creek Apartments Project), Alternative Minimum Tax, 5.550%, 7/01/24 1/05 at 103 Aa 914,869 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 6,180,000 County of Franklin, Ohio, Mortgage Revenue Bonds, Series 1992A (FHA Insured Mortgage Loan - Kensington Place Project), 6.750%, 1/01/34 1/02 at 103 Aa $ 6,338,826 500,000 County of Franklin, Ohio, Revenue Bonds, Series 1993 (Oclc Online Computer Library Center, Incorporated Project), 6.000%, 4/15/13 4/03 at 100 N/R 477,875 3,250,000 City of Garfield Heights, Ohio, Hospital Improvement and Refunding Revenue Bonds, Series 1992B (Marymount Hospital Project), 6.650%, 11/15/11 11/02 at 102 A 3,387,085 1,250,000 City of Hamilton, Ohio, Electric System Mortgage Revenue Bonds, 1992 Series B, 6.300%, 10/15/25 10/02 at 102 Aaa 1,298,063 1,000,000 Hamilton County, Ohio, Sewer System Improvement and Refunding Revenue Bonds, 1991 Series A (The Metropolitan Sewer District of Greater Cincinnati), 6.700%, 12/01/13 (Pre-refunded to 6/01/01) 6/01 at 102 AAA 1,104,630 2,500,000 Indian Lake Local School District, Logan and Auglaize Counties, Ohio, School Facilities Construction and Improvement Bonds (General Obligation-Unlimited Tax), 5.375%, 12/01/23 12/06 at 101 Aaa 2,399,600 3,000,000 Kent State University (AState University of Ohio), General Receipts Bonds, Series 1992, 6.500%, 5/01/22 5/02 at 102 Aaa 3,205,890 1,000,000 City of Lakewood, Ohio, Various Purpose General Obligation Bonds, Series 1992 (Limited Tax Obligation), 6.500%, 12/01/12 12/02 at 102 Aa 1,091,400 2,100,000 Lakota Local School District, County of Butler, Ohio, School Improvement Unlimited Tax General Obligation Bonds, Series 1994, 6.250%, 12/01/14 12/05 at 100 Aaa 2,192,547 1,000,000 County of Marion, Ohio, Health Care Facilities Refunding and Improvement Revenue Bonds, Series 1993 (United Church Homes, Inc. Project), 6.300%, 11/15/15 11/03 at 102 BBB- 956,920 1,300,000 Marysville (Ohio), Exempted Village School District, General Obligation School Improvement Bonds, 5.750%, 12/01/23 12/05 at 101 Aaa 1,302,392 1,400,000 City of Middleburg Heights, Ohio, Hospital Improvement Revenue Bonds, Series 1991 (Southwest General Hospital Project), 6.750%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 102 AAA 1,547,896 1,800,000 Montgomery County, Ohio, Sewer System Revenue Refunding Bonds, Greater Moraine Beavercreek Sewer District, Series 1993, 5.600%, 9/01/11 9/02 at 102 Aaa 1,809,306 1,500,000 County of Montgomery, Ohio, Hospital Facilities Revenue Refunding and Improvement Bonds, Series 1996 (Kettering Medical Center), 5.625%, 4/01/16 4/06 at 102 Aaa 1,470,165 1,000,000 County of Montgomery, Ohio, Water Revenue Bonds, Greater Moraine-Beavercreek Sewer District Series 1992, 6.250%, 11/15/17 11/02 at 102 Aaa 1,040,180 2,500,000 City of Mount Vernon, Ohio, Hospital Refunding Revenue Bonds, Series 1986A (Knox Community Hospital), 7.875%, 6/01/12 12/96 at 103 N/R 2,577,225 1,000,000 City of Newark, Ohio, Water System Improvement Bonds (Limited Tax General Obligation), 6.000%, 12/01/18 12/03 at 102 Aaa 1,015,960 North Canton City School District, Ohio, School Improvement Bonds, Series 1994 (General Obligation Unlimited Tax): 650,000 9.750%, 12/01/03 No Opt. Call Aaa 839,982 715,000 9.700%, 12/01/04 No Opt. Call Aaa 939,589 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,000,000 Northeast Ohio Regional Sewer District, Wastewater Improvement Revenue Refunding Bonds, Series 1995, 5.600%, 11/15/16 11/05 at 101 Aaa $ 1,996,200 1,250,000 City of Oxford, Ohio, Water Supply System Mortgage Revenue, Series 1992 Refunding Bonds, 6.000%, 12/01/14 12/02 at 102 Aaa 1,289,963 1,000,000 Pickerington Local School District, Fairfield and Franklin Counties, Ohio, School Building Construction and Improvement Bonds (General Obligation-Unlimited Tax), 5.375%, 12/01/19 12/04 at 102 Aaa 955,160 1,000,000 Revere Local School District, Ohio, School Improvement Bonds, Series 1993 (General Obligation Unlimited Tax Bonds), 6.000%, 12/01/16 12/03 at 102 Aaa 1,020,300 1,400,000 Reynoldsburg City School District, Franklin, Fairfield and Licking Counties, Ohio, General Obligation Bonds (Unlimited Tax), For School Building Construction and Improvement, 6.550%, 12/01/17 12/02 at 102 Aaa 1,511,118 1,000,000 Solon City School District, Ohio, School Improvement Bonds, Series 1990, General Obligation Unlimited Tax Bonds, 7.150%, 12/01/13 (Pre-refunded to 12/01/01) 12/01 at 102 N/R 1,128,650 2,000,000 Southwest Regional Water District (Ohio), Waterworks System Revenue Bonds, Series 1995, 6.000%, 12/01/20 12/05 at 101 Aaa 2,040,700 3,895,000 The Student Loan Funding Corporation, Cincinnati, Ohio, Student Loan Subordinated Revenue Refunding Bonds, Series 1992 D, Alternative Minimum Tax, 6.600%, 7/01/05 7/02 at 100 A 3,975,743 1,700,000 The Student Loan Funding Corporation, Cincinnati, Ohio, Student Loan Senior Subordinated Revenue Bonds, Series 1993 A, Alternative Minimum Tax, 6.150%, 8/01/10 8/03 at 100 A1 1,694,475 1,000,000 Sylvania City School District, General Obligation (Unlimited Tax), Series 1995, 5.800%, 12/01/15 12/05 at 101 Aaa 1,001,830 1,135,000 City of Toledo, Ohio, General Obligation (Limited Tax), Various Purpose Improvement Bonds, Series 1994, 7.000%, 12/01/03 No Opt. Call Aaa 1,282,119 3,400,000 City of Toledo, Ohio, General Obligation (Limited Tax), Various Purpose Improvement Bonds, Series 1995, 5.700%, 12/01/10 12/05 at 102 Aaa 3,449,334 750,000 County of Tuscarawas, Ohio, Hospital Facilities Revenue Bonds, Series 1993A (Union Hospital Project), 6.500%, 10/01/21 10/03 at 102 Baa 716,032 3,500,000 University of Cincinnati, General Receipts Bonds, Series O, 6.300%, 6/01/12 12/02 at 102 AA- 3,712,450 1,000,000 The University of Toledo (A State University of Ohio), General Receipts Bonds, Series 1992B, 5.900%, 6/01/20 12/02 at 102 Aaa 994,210 1,000,000 Upper Arlington City School District, General Obligation Bonds, Series 1996, 5.250%, 12/01/22 12/06 at 101 Aaa 943,490 1,000,000 City of Washington, Ohio, Water System Mortgage Revenue Bonds, Series 1993, 5.375%, 12/01/19 12/03 at 101 Aaa 941,680 2,000,000 Board of Education, Wayne Local School District, County of Warren, Ohio, School Improvement Bonds, Series 1996 (Unlimited Tax General Obligation), 6.100%, 12/01/24 12/06 at 102 Aaa 2,075,240 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 3,000,000 Board of Education, West Clermont Local School District, County of Clermont, Ohio, School Improvement Bonds, Series 1995 (Unlimited Tax General Obligation), 6.000%, 12/01/18 12/05 at 100 Aaa $ 3,058,740 1,820,000 Worthington City School District, Franklin County, Ohio, General Obligation Refunding Bonds (Unlimited Tax), 6.375%, 12/01/12 6/02 at 102 Aaa 1,921,846 1,500,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds, Series 1987 (General Obligation Bonds), 3.000%, 7/01/06 7/97 at 100 A 1,225,814 2,500,000 Commonwealth of Puerto Rico Improvement Bonds of 1992 (General Obligation Bonds), 6.600%, 7/01/13 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 2,784,550 2,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 (General Obligation Bonds), 5.400%, 7/01/25 7/06 at 101 1/2 A 1,850,240 1,300,000 Puerto Rico Public Buildings Authority, Public Education and Health Facilities Refunding Bonds, Series M, Guaranteed by the Commonwealth of Puerto Rico, 5.750%, 7/01/15 7/03 at 101 1/2 A 1,267,044 1,000,000 Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities Financing Authority, Adjustable Rate Industrial Revenue Bonds, 1983 Series A (Motorola, Inc. Project), 6.750%, 1/01/14 1/02 at 103 AA- 1,095,020 $211,195,000 Total Investments - (cost $211,031,860) - 98.4% 218,636,377 ============= TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.5% $ 900,000 Cuyahoga County, University Hospital of Cleveland, Series 1985, Variable Rate Demand Bonds, 3.700%, 1/01/16+ VMIG-1 900,000 200,000 Ohio Air Quality Development Authority, State of Ohio, Air Quality Development Revenue Refunding Bonds (The Cincinnati Gas & Electric Company Project), 1995 Series A, Variable Rate Demand Bonds, 3.750%, 9/01/30+ VMIG-1 200,000 $ 1,100,000 Total Temporary Investments - 0.5% 1,100,000 ============= Other Assets Less Liabilities - 1.1% 2,414,433 Net Assets - 100% $222,150,810 ============== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 70 $138,711,037 63% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 30,570,009 14 PORTFOLIO OF A+ A1 8 15,090,477 7 INVESTMENTS A, A- A, A2, A3 10 18,492,556 9 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 8 10,312,096 5 TEMPORARY Non-rated Non-rated 4 5,460,202 2 INVESTMENTS): TOTAL 115 $218,636,377 100% * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND (NTX)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 4,490,000 Board of Regents of Texas Southern University, Consolidated Revenue Refunding Bonds, Series 1993-A, 5.750%, 8/01/18 8/03 at 101 Aaa $ 4,494,670 3,070,000 State of Texas, Veterans' Bonds, Series 1985, General Obligation Bonds, 8.300%, 12/01/16 (Pre-refunded to 12/01/99) 12/99 at 100 AAA 3,439,689 4,790,000 State of Texas, Veteran's Housing Assistance Bonds, Series 1993, General Obligation Bonds, 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 Aa 4,925,892 2,000,000 State of Texas, Veteran's Land Bonds, Series 1994, General Obligation Bonds, 6.400%, 12/01/24 (Alternative Minimum Tax) 12/04 at 100 Aa 2,051,000 1,500,000 State of Texas, Veteran's Land Bonds, Series 1989, General Obligation Bonds, 7.625%, 12/01/13 (Alternative Minimum Tax) 6/99 at 102 Aa 1,627,710 1,500,000 Texas Health Facilities Development Corporation, Hospital Revenue Bonds (All Saints Episcopal Hospitals of Fort Worth Project), Series 1993B, 6.250%, 8/15/22 8/03 at 102 Aaa 1,529,490 1,850,000 Texas Housing Agency, Single Family Mortgage Revenue Bonds, 1986 Series A, 8.250%, 3/01/17 9/96 at 102 Aa 1,864,319 625,000 Texas Municipal Power Agency, Refunding Revenue Bonds, Series 1992, 5.750%, 9/01/12 (Pre-refunded to 9/01/02) 9/02 at 100 Aaa 658,500 2,015,000 Texas Turnpike Authority, Dallas North Tollway Revenue Bonds, Series 1989, 6.000%, 1/01/20 1/98 at 100 A 2,017,438 3,500,000 Abilene Health Facilities Development Corporation, Hospital Revenue Refunding and Improvement Bonds (Hendrick Medical Center Project), Series 1995C, 6.150%, 9/01/25 9/05 at 102 Aaa 3,588,830 345,000 Abilene Housing Development Corporation, First Lien Revenue Bonds, Series 1978, 7.000%, 7/01/08 No Opt. Call N/R 361,757 Alamo Community College District, General Obligation Bonds, Series 1992: 1,000,000 5.000%, 2/15/10 2/00 at 100 Aa 949,470 1,000,000 5.000%, 2/15/11 2/00 at 100 Aa 942,250 5,295,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) 12/00 at 102 Baa2 5,609,894 4,500,000 Amarillo Health Facilities Corporation Hospital Revenue Bonds (High Plains Baptist Hospital Project), Series 1992C, 6.500%, 1/01/07 1/02 at 102 Aaa 4,886,595 3,500,000 City of Austin, Texas, Combined Utility Systems Revenue Refunding Bonds, Series 1991, 6.750%, 5/15/12 5/01 at 102 A 3,691,030 2,500,000 City of Austin, Texas, Combined Utility Systems Revenue Refunding Bonds, Series 1992, 5.750%, 11/15/16 11/02 at 100 Aaa 2,465,900 2,085,000 Baytown Housing Finance Corporation, Single Family Mortgage Revenue, Refunding Bonds, Series 1992-A, 8.500%, 9/01/11 9/02 at 103 A1 2,256,137 1,000,000 The City of Beaumont, Texas, Public Improvement Bonds, Series 1992, 6.250%, 3/01/10 (Pre-refunded to 3/01/02) 3/02 at 100 Aaa 1,075,040 1,000,000 Bexar Metropolitan Water District, Waterworks System Revenue Bonds, Series 1994, 5.000%, 5/01/19 (Pre-refunded to 5/01/15) 5/15 at 100 Aaa 911,860 1,225,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1990A, 8.125%, 2/01/20 (Alternative Minimum Tax) 2/00 at 102 BBB 1,340,236 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,110,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1987A, 9.875%, 10/01/17 (Alternative Minimum Tax) 10/97 at 102 BBB $ 2,263,735 2,000,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas Utilities Electric Company Project), Series 1994A, 7.875%, 3/01/21 (Alternative Minimum Tax) 3/01 at 102 BBB 2,197,260 1,500,000 Brazos River Authority (Texas), Collateralized Pollution, Control Revenue Refunding Bonds (Texas Utilities Electric Company Project), Series 1992, 6.500%, 12/01/27 (Alternative Minimum Tax) 12/02 at 102 Aaa 1,557,930 5,500,000 Brazos River Authority (Texas), Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1988D, 7.750%, 10/01/15 10/98 at 102 A 5,886,430 1,200,000 Brazos River Authority (Texas), Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1993, 5.600%, 12/01/17 12/03 at 102 Aaa 1,174,320 2,300,000 Brazos Higher Education Authority, Inc., Student Loan Revenue Refunding Bonds, Series 1992-A, 6.875%, 9/01/04 (Alternative Minimum Tax) 3/02 at 102 A 2,454,307 1,070,000 Brazos Higher Education Authority, Inc., Student Loan Revenue Refunding Bonds, Series 1992C-1, 6.650%, 11/01/04 (Alternative Minimum Tax) No Opt. Call Aa 1,131,718 250,000 Brazos Higher Education Authority, Inc., Student Loan Revenue Refunding Bonds, Subordinate Series 1993A-2, 6.800%, 12/01/04 (Alternative Minimum Tax) No Opt. Call A 266,990 1,000,000 Brazosport Water Authority (Brazoria County, Texas), Water Supply Revenue and Refunding Bonds, Series 1993, 5.500%, 9/01/18 9/03 at 100 Aaa 955,070 2,000,000 City of Brownsville, Texas, General Obligation Refunding Bonds, Series 1991, 6.750%, 2/15/12 (Pre-refunded to 2/15/01) 2/01 at 100 Aaa 2,175,580 3,500,000 City of Brownsville, Texas Utilities System Priority Revenue Bonds, Series 1990, 6.500%, 9/01/17 (Pre-refunded to 9/01/00) 9/00 at 102 Aaa 3,814,615 4,035,000 City of Bryan, Texas (Brazos County), Lease Revenue Bonds (Blinn College Project), Series 1995, 5.300% 10/01/16 10/05 at 100 Aaa 3,831,071 2,500,000 Burleson Independent School District (Johnson and Tarrant Counties, Texas), Unlimited Tax Refunding Bonds, Series 1995, 5.375%, 8/01/19 8/06 at 100 Aaa 2,385,825 1,000,000 Caddo Mills Independent School District (Hunt County, Texas), Unlimited Tax School Building and Refunding Bonds, Series 1995, 6.375%, 8/15/25 2/05 at 100 AAA 1,048,200 1,400,000 Coastal Bend Health Facilities Development Corporation, Incarnate Word Health Services Revenue Bonds, Series 1993-A, 6.000%, 11/15/22 11/02 at 102 Aaa 1,403,920 2,500,000 Conroe Independent School District, Unlimited Tax Schoolhouse and Refunding Bonds, Series 1993, 5.000%, 2/01/18 2/04 at 100 Aaa 2,257,450 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 4,130,000 Coppell Independent School District (Dallas County, Texas), Unlimited Tax School Building and Refunding Bonds, Series 1992, 0.000%, 8/15/14 8/09 at 75 11/32 Aaa $ 1,227,601 City of Corpus Christi, Texas, General Improvement and Refunding Bonds, Series 1992: 1,975,000 6.700%, 3/01/08 (Pre-refunded to 3/01/02) 3/02 at 100 Aaa 2,164,778 1,475,000 6.700%, 3/01/08 3/02 at 100 Aaa 1,598,384 5,020,000 Dallas-Fort Worth International Airport, Facility Improvement Corporation, United Parcel Service, Inc. Revenue Bonds, Series 1992, 6.600%, 5/01/32 (Alternative Minimum Tax) 5/02 at 102 Aaa 5,245,599 1,500,000 City of Dallas, Texas (Dallas, Denton and Collin Counties), Combination Tax and Surplus Revenue, Certificates of Obligation, Series 1992, 6.250%, 1/01/20 1/02 at 100 AAA 1,536,840 1,000,000 City of Dallas, Texas (Dallas County), Civic Center Convention Complex, Senior Lien Revenue Bonds, 1985 Series, 8.000%, 1/01/09 1/97 at 100 A 1,016,310 2,130,000 City of Dallas, Texas (Dallas, Denton and Collin Counties), Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 1995, 4.500%, 4/01/14 4/02 at 101 1/2 Aa 1,800,170 1,740,000 El Paso Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1991A, 8.750%, 10/01/11 4/01 at 103 A 1,873,406 2,800,000 City of Ennis, Texas (Ennis County), General Obligation Refunding and Improvement Bonds, Series 1992, 6.500%, 8/01/13 8/02 at 100 Aaa 2,967,104 1,185,000 Fort Bend County Levee Improvement District No. 11 (A Political Subdivision of the State of Texas, located within Fort Bend County), Unlimited Tax Levee Improvement Bonds, Series 1994, 6.900%, 9/01/17 9/04 at 100 Aaa 1,301,331 3,400,000 Frisco Independent School District (Collin and Denton Counties, Texas), Unlimited Tax School Building and Refunding Bonds, Series 1994, 5.400%, 8/15/23 8/04 at 100 Aaa 3,222,044 1,450,000 Industrial Development Corporation of The City of Galveston, Sales Tax Revenue Bonds, Series 1995, 5.750%, 9/01/15 9/05 at 100 Aaa 1,430,918 1,240,000 City of Galveston Property Finance Authority, Inc., Single Family Mortgage Revenue Bonds, Series 1991A, 8.500%, 9/01/11 9/01 at 103 A 1,338,307 1,000,000 City of Georgetown Higher Education, Finance Corporation, Higher Education Revenue Bonds, Series 1994 (Southwestern University Project), 6.300%, 2/15/14 2/04 at 100 A1 1,023,720 3,000,000 Guadalupe-Blanco River Authority, Sewage and Solid Waste Disposal Facility Bonds (E. I. du Pont de Nemours and Company Project), Series 1996, 6.400%, 4/01/26 (Alternative Minimum Tax) 4/06 at 102 AA- 3,072,030 320,000 Harris County, Texas, Toll Road Senior Lien, Revenue Refunding Bonds, Series 1992B, 6.625%, 8/15/17 8/97 at 102 Aaa 334,349 2,000,000 Harris County, Texas, Toll Road Unlimited Tax and Subordinate Lien, Revenue Refunding Bonds, Series 1992A, 6.500%, 8/15/15 8/02 at 102 AA+ 2,119,820 5,500,000 Harris County, Texas, Toll Road Senior Lien, Revenue Refunding Bonds, Series 1994, 5.375%, 8/15/20 8/04 at 102 Aaa 5,215,815 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE Harris County, Texas, Toll Road Senior Lien, Revenue Refunding Bonds, Series 1992A: $ 1,780,000 6.500%, 8/15/17 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa $ 1,973,112 320,000 6.500%, 8/15/17 8/02 at 102 Aaa 339,171 1,680,000 Harris County Toll Road Senior Lien, 6.625%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 102 Aaa 1,760,388 4,000,000 Harris County Health Facilities Development Corporation, Hospital Revenue Bonds (Texas Children's Hospital Project), Series 1989A, 7.000%, 10/01/19 (Pre-refunded to 10/01/99) 10/99 at 102 Aaa 4,374,280 6,110,000 Harris County Health Facilities Development Corporation (Texas), Hospital Revenue Bonds (Memorial Hospital System Project), Series 1992, 7.125%, 6/01/15 6/02 at 102 A 6,553,403 3,300,000 The Harrison County Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1991, 8.875%, 12/01/11 12/01 at 103 A 3,487,968 1,000,000 Houston Airport System Alternative Minimum Tax, 8.000%, 7/01/08 (Alternative Minimum Tax) 7/98 at 102 1/2 A 1,075,050 5,000,000 Houston Airport System Subordinate Lien, 6.750%, 7/01/21 (Alternative Minimum Tax) 7/01 at 102 Aaa 5,303,450 1,850,000 Houston Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1993A, 5.950%, 12/01/10 6/03 at 102 Aaa 1,863,709 4,000,000 City of Houston, Texas, Water and Sewer System, Junior Lien Revenue Refunding Bonds, Series 1991C, 6.375%, 12/01/17 12/01 at 102 Aaa 4,165,680 1,000,000 City of Houston, Texas, Water and Sewer System, Prior Lien Revenue Refunding Bonds, Series 1992B, 6.375%, 12/01/14 12/02 at 102 A 1,031,150 800,000 City of Laredo, Texas (Webb County), Combination Tax and Waterworks System, Revenue Certificates of Obligation, Series 1994, 5.625%, 8/15/11 8/04 at 100 Aaa 803,312 1,125,000 Laredo International Toll Bridge System Revenue Refunding Bonds, Series 1996, 5.700%, 10/01/10 10/06 at 100 Aaa 1,141,110 190,000 Lower Colorado River Authority, Junior Lien Refunding Revenue Bonds, Fourth Supplemental Series, 5.625%, 1/01/17 (Pre-refunded to 1/01/15) 1/15 at 100 Aaa 189,343 1,850,000 Lubbock Health Facilities Development Corporation, Hospital Revenue Bonds (Methodist Hospital, Lubbock, Texas Project), 5.500%, 12/01/14 12/03 at 102 Aaa 1,789,727 1,500,000 Matagorda County Navigation District Number One (Texas), Pollution Control Revenue Refunding Bonds (Central Power and Light Company Project), Series 1993 6.000%, 7/01/28 7/03 at 102 A- 1,466,970 1,800,000 Matagorda County, Navigation District Number One (Texas), Collateralized Pollution Control Revenue Bonds (Houston Lighting and Power Company Project), Series 1989A, 7.875%, 2/01/19 (Alternative Minimum Tax) 2/98 at 102 A 1,905,714 5,750,000 Midland County Hospital District, Hospital Revenue Bonds, Series 1992, 0.000%, 6/01/11 No Opt. Call BBB 2,150,960 2,500,000 North Texas Higher Educational Authority, Inc. Student Loan Revenue Bonds, Series 1993C, 6.100%, 4/01/08 (Alternative Minimum Tax) 4/03 at 102 Aa 2,522,325 1,500,000 North Texas Municipal Water District, Regional Solid Waste Disposal System, Refunding and Improvement Bonds, Series 1993, 5.250%, 9/01/12 9/03 at 100 Aaa 1,445,505 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,165,000 Port Arthur Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1992, 8.700%, 3/01/12 9/02 at 103 A $ 1,257,652 4,500,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) 4/02 at 102 A+ 4,762,710 2,000,000 City of San Antonio, Texas, Electric and Gas Systems Revenue Refunding Bonds, New Series 1992, 5.000%, 2/01/17 2/02 at 101 Aa1 1,808,460 4,500,000 City of San Antonio, Texas, Water System Revenue Refunding Bonds, Series 1992, 6.500%, 5/15/10 5/02 at 102 Aaa 4,812,435 1,825,000 Socorro Independent School District (El Pasco, County, Texas), Unlimited Tax School Building Bonds, Series 1996, 5.750%, 2/15/21 2/06 at 100 Aaa 1,826,935 2,500,000 Tarrant County Water Control and Improvement District Number One (Tarrant County, Texas), Water Revenue Refunding and Improvement Bonds, Series 1992, 5.750%, 3/01/13 (Pre-refunded to 3/01/01) 3/01 at 100 Aaa 2,619,050 2,500,000 City of Terrell Hills, Texas, Higher Education Facilities Corporation, Higher Education Revenue and Refunding Bonds (Incarnate Word College Project), Series 1993, 5.750%, 3/15/13 3/03 at 101 1/2 AAA 2,457,825 5,400,000 Travis County Health Facilities Development Corporation, Revenue Bonds (Daughters of Charity National Health System-Daughters of Charity Health Services of Austin), Series 1993B, 6.000%, 11/15/22 11/03 at 102 Aa 5,374,674 1,865,000 Travis County Health Facilities Development Corporation, Hospital Revenue Bonds (Daughters of Charity National Health System-Daughters of Charity Health Services of Austin), Series 1995, 5.250%, 11/01/11 11/05 at 102 Aa 1,751,142 3,310,000 Travis County Housing Finance Corporation (Texas), Residential Mortgage Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Senior Bonds, Series 1991A, 7.050%, 12/01/25 12/01 at 103 AAA 3,475,202 1,445,000 Tyler Junior College District (Smith and Van Zanlt Counties, Texas), Combined Fee Improvement Revenue and Refunding Bonds, Series 1994, 5.900%, 8/15/13 8/04 at 100 Aaa 1,468,321 2,000,000 Board of Regents of The University of Houston System, Consolidated Revenue Bonds, Series 1995, 6.000%, 2/15/17 2/05 at 100 Aaa 2,020,540 2,345,000 Victoria Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11 No Opt. Call Aaa 2,508,351 1,500,000 City of Weatherford, Texas (Parker County), Utility System Revenue Bonds, Series 1994, 5.700%, 9/01/13 9/04 at 100 Aaa 1,499,430 $207,430,000 Total Investments - (cost $198,728,486) - 98.4% 206,965,708 ============= TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.1% $ 300,000 Gulf Coast Waste Disposal Authority Pollution Control ============= Revenue Refunding (Amoco Oil Company Project), Series 1992, Variable Rate Demand Bonds, 3.650%, 10/01/17+ VMIG-1 300,000 Other Assets Less Liabilities - 1.5% 3,157,110 Net Assets - 100% $210,422,818 ============ NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 51 $117,736,194 57% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 31,940,980 15 PORTFOLIO OF A+ A1 3 8,042,567 4 INVESTMENTS A, A- A, A2, A3 15 35,322,125 17 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 5 13,562,085 6 TEMPORARY Non-rated Non-rated 1 361,757 1 INVESTMENTS): TOTAL 89 $206,965,708 100% * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
STATEMENT OF NET ASSETS
NAZ NUM NMP NUO ASSETS Investments in municipal securities, at market value (note 1) $ 91,218,571 $247,218,960 $162,682,150 $218,636,377 Temporary investments in short-term municipal securities, at amortized cost (note 1) 200,000 3,900,000 500,000 1,100,000 Cash 286,050 61,731 38,920 29,867 Receivables: Interest 772,916 3,910,476 2,168,638 2,832,408 Investments sold 10,000 -- -- 506,584 Other assets 18,004 24,277 8,922 35,193 ------------ ------------ ------------ ------------ Total assets 92,505,541 255,115,444 165,398,630 223,140,429 ------------ ------------ ------------ ------------ LIABILITIES Payable for investments purchased -- 2,892,294 -- -- Accrued expenses: Management fees (note 6) 50,296 135,789 89,560 120,330 Other 59,384 118,088 89,233 99,163 Preferred share dividends payable 12,333 46,546 25,373 30,234 Common share dividends payable 288,937 889,739 506,727 739,892 ------------ ------------ ------------ ------------ Total liabilities 410,950 4,082,456 710,893 989,619 ------------ ------------ ------------ ------------ Net assets (note 7) $ 92,094,591 $251,032,988 $164,687,737 $222,150,810 ============ ============ ============ ============ Preferred shares, at liquidation value $ 30,000,000 $ 80,000,000 $ 56,000,000 $ 77,000,000 ============ ============ ============ ============ Preferred shares outstanding 1,200 3,200 2,240 3,080 ============ ============ ============ ============ Common shares outstanding 4,280,555 11,191,691 7,677,686 9,248,654 ============ ============ ============ ============ Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 14.51 $ 15.28 $ 14.16 $ 15.69 ============ ============ ============ ============ See accompanying notes to financial statements
STATEMENT OF NET ASSETS
NTX ASSETS Investments in municipal securities, at market value (note 1) $206,965,708 Temporary investments in short-term municipal securities, at amortized cost (note 1) 300,000 Cash 63,172 Receivables: Interest 3,874,569 Investments sold 139,563 Other assets 26,541 ------------ Total assets 211,369,553 ------------ LIABILITIES Payable for investments purchased -- Accrued expenses: Management fees (note 6) 114,179 Other 67,178 Preferred share dividends payable 32,768 Common share dividends payable 732,610 ------------ Total liabilities 946,735 ------------ Net assets (note 7) $210,422,818 ============ Preferred shares, at liquidation value $ 69,000,000 ============ Preferred shares outstanding 2,760 ============ Common shares outstanding 9,392,432 ============ Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 15.06 ============ See accompanying notes to financial statements.
STATEMENT OF OPERATIONS Year ended July 31, 1996
NAZ NUM NMP NUO INVESTMENT INCOME Tax-exempt interest income (note 1) $ 5,334,289 $ 15,392,165 $ 9,476,544 $ 13,237,048 ------------ ------------ ------------ ------------ Expenses: Management fees (note 6) 600,499 1,618,592 1,067,333 1,432,376 Preferred shares--auction fees 75,153 200,411 140,287 192,895 Preferred shares--dividend disbursing agent fees 15,612 15,031 31,334 45,607 Shareholders' servicing agent fees and expenses 7,352 41,186 30,449 42,641 Custodian's fees and expenses 39,884 55,893 47,100 44,879 Directors'/Trustees' fees and expenses (note 6) 2,241 4,120 1,670 992 Professional fees 14,101 11,199 24,638 32,548 Shareholders' reports--printing and mailing expenses 36,890 73,310 55,505 69,366 Stock exchange listing fees 17,830 24,905 16,687 13,889 Investor relations expense 9,497 16,835 10,558 13,998 Other expenses 9,690 15,286 12,730 34,295 ------------ ------------ ------------ ------------ Total expenses 828,749 2,076,768 1,438,291 1,923,486 ------------ ------------ ------------ ------------ Net investment income 4,505,540 13,315,397 8,038,253 11,313,562 ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) 54,640 208,789 (8,455) (201,089) Net change in unrealized appreciation or depreciation of investments 1,535,012 2,733,144 3,077,375 3,376,371 ------------ ------------ ------------ ------------ Net gain from investments 1,589,652 2,941,933 3,068,920 3,175,282 ------------ ------------ ------------ ------------ Net increase in net assets from operations $ 6,095,192 $ 16,257,330 $ 11,107,173 $ 14,488,844 ============ ============ ============ ============ See accompanying notes to financial statements.
STATEMENT OF OPERATIONS Year ended July 31, 1996
NTX INVESTMENT INCOME Tax-exempt interest income (note 1) $ 13,070,166 ------------ Expenses: Management fees (note 6) 1,363,617 Preferred shares--auction fees 172,855 Preferred shares--dividend disbursing agent fees 30,062 Shareholders' servicing agent fees and expenses 16,263 Custodian's fees and expenses 52,150 Directors'/Trustees' fees and expenses (note 6) 1,363 Professional fees 30,225 Shareholders' reports--printing and mailing expenses 49,702 Stock exchange listing fees 6,215 Investor relations expense 5,960 Other expenses 16,246 ------------ Total expenses 1,744,658 ------------ Net investment income 11,325,508 ------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) (107,896) Net change in unrealized appreciation or depreciation of investments 1,979,168 ------------ Net gain from investments 1,871,272 ------------ Net increase in net assets from operations $ 13,196,780 ============ See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
NAZ NUM Year ended Year ended Year ended Year ended 7/31/96 7/31/95 7/31/96 7/31/95 OPERATIONS Net investment income $ 4,505,540 $ 4,560,118 $ 13,315,397 $ 13,441,368 Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) 54,640 (659,916) 208,789 964,241 Net change in unrealized appreciation or depreciation of investments 1,535,012 2,747,931 2,733,144 1,087,592 ------------- ------------- ------------- ------------- Net increase in net assets from operations 6,095,192 6,648,133 16,257,330 15,493,201 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (3,403,044) (3,338,836) (10,639,239) (11,081,980) Preferred shareholders (1,031,544) (1,137,849) (2,634,651) (2,869,083) From accumulated net realized gains from investment transactions: Common shareholders -- -- (756,492) (544,244) Preferred shareholders -- -- (208,288) (87,936) In excess of net realized gains: Common shareholders -- -- -- -- Preferred shareholders -- -- -- -- ------------- ------------- ------------- ------------- Decrease in net assets from distributions to shareholders (4,434,588) (4,476,685) (14,238,670) (14,583,243) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from shares issued in acquisition of NMH, NOH and NOO, or NTE, as applicable (note 1) -- -- -- -- Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 1,107,040 915,423 ------------- ------------- ------------- ------------- Net increase in net assets derived from capital share transactions -- -- 1,107,040 915,423 ------------- ------------- ------------- ------------- Net increase in net assets 1,660,604 2,171,448 3,125,700 1,825,381 Net assets at beginning of year 90,433,987 88,262,539 247,907,288 246,081,907 ------------- ------------- ------------- ------------- Net assets at end of year $ 92,094,591 $ 90,433,987 $ 251,032,988 $ 247,907,288 ============= ============= ============= ============= Balance of undistributed net investment income at end of year $ 201,195 $ 130,243 $ 592,803 $ 551,296 ============= ============= ============= ============= See accompanying notes to financial statements
STATEMENT OF CHANGES IN NET ASSETS
NMP NUO Year ended Year ended Year ended Year ended 7/31/96 7/31/95 7/31/96 7/31/95 OPERATIONS Net investment income $ 8,038,253 $ 7,080,742 $ 11,313,562 $ 9,571,454 Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) (8,455) (1,991,858) (201,089) (688,907) Net change in unrealized appreciation or depreciation of investments 3,077,375 10,074,721 3,376,371 13,173,012 ------------- ------------- ------------- ------------- Net increase in net assets from operations 11,107,173 15,163,605 14,488,844 22,055,559 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (5,919,781) (5,398,921) (8,787,207) (7,169,390) Preferred shareholders (1,913,660) (1,885,432) (2,468,189) (2,317,977) From accumulated net realized gains from investment transactions: Common shareholders -- -- -- -- Preferred shareholders -- -- -- -- In excess of net realized gains: Common shareholders -- -- -- -- Preferred shareholders -- -- -- -- ------------- ------------- ------------- ------------- Decrease in net assets from distributions to shareholders (7,833,441) (7,284,353) (11,255,396) (9,487,367) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from shares issued in acquisition of NMH, NOH and NOO, or NTE, as applicable (note 1) -- 52,646,603 -- 104,177,336 Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 582,118 254,340 ------------- ------------- ------------- ------------- Net increase in net assets derived from capital share transactions -- 52,646,603 582,118 104,431,676 ------------- ------------- ------------- ------------- Net increase in net assets 3,273,732 60,525,855 3,815,566 116,999,868 Net assets at beginning of year 161,414,005 100,888,150 218,335,244 101,335,376 ------------- ------------- ------------- ------------- Net assets at end of year $ 164,687,737 $ 161,414,005 $ 222,150,810 $ 218,335,244 ============= ============= ============= ============= Balance of undistributed net investment income at end of year $ 404,846 $ 245,822 $ 677,362 $ 619,196 ============= ============= ============= ============= See accompanying notes to financial statements
STATEMENT OF CHANGES IN NET ASSETS
NTX Year ended Year ended 7/31/96 7/31/95 OPERATIONS Net investment income $ 11,325,508 $ 10,505,566 Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) (107,896) 351,434 Net change in unrealized appreciation or depreciation of investments 1,979,168 7,220,300 ------------- ------------- Net increase in net assets from operations 13,196,780 18,077,300 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (8,899,833) (8,438,688) Preferred shareholders (2,485,682) (2,459,353) From accumulated net realized gains from investment transactions: Common shareholders (270,977) -- Preferred shareholders (85,046) -- In excess of net realized gains: Common shareholders (72,545) -- Preferred shareholders (22,768) -- ------------- ------------- Decrease in net assets from distributions to shareholders (11,836,851) (10,898,041) ------------- ------------- CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from shares issued in acquisition of NMH, NOH and NOO, or NTE, as applicable (note 1) -- 47,805,776 Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 138,670 215,110 ------------- ------------- Net increase in net assets derived from capital share transactions 138,670 48,020,886 ------------- ------------- Net increase in net assets 1,498,599 55,200,145 Net assets at beginning of year 208,924,219 153,724,074 ------------- ------------- Net assets at end of year $ 210,422,818 $ 208,924,219 ============= ============= Balance of undistributed net investment income at end of year $ 291,725 $ 351,732 ============= ============= See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES At July 31, 1996, the state Funds (the "Funds") covered in this report and their corresponding New York Stock Exchange symbols are Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ), Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP), Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) and Nuveen Texas Quality Income Municipal Fund (NTX). Each Fund invests primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state. The Funds are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. On November 8, 1994, NMP acquired all of the net assets of Nuveen Michigan Premium Income Municipal Fund 2 (NMH) pursuant to a plan of reorganization approved by the shareholders of both Funds on October 6, 1994. The acquisition was accomplished by a tax-free exchange of 2,781,169 shares of NMP for the 2,871,673 shares of NMH outstanding on November 8, 1994. NMH's net assets at that date of $52,646,603 included $7,603,233 of net unrealized depreciation and $21,000,000 of preferred shares at liquidation value which were combined with that of NMP. The combined net assets of NMP immediately after the acquisition were $143,363,478. On November 8, 1994, NUO acquired all of the net assets of Nuveen Ohio Premium Income Municipal Fund, Inc. (NOH) and Nuveen Ohio Premium Income Municipal Fund 2 (NOO) pursuant to a plan of reorganization approved by the shareholders of each of the respective Funds on October 6, 1994. The acquisition was accomplished by a tax-free exchange of 4,728,624 shares of NUO for the 3,341,640 shares of NOH and for the 2,229,722 shares of NOO outstanding on November 8, 1994. NOH's and NOO's net assets at that date of $63,748,523 and $40,428,813, respectively, included net unrealized depreciation of $7,012,254 and $6,049,469, respectively, as well as $25,000,000 and $17,000,000 of preferred shares at liquidation value, respectively, which were combined with that of NUO. The combined net assets of NUO immediately after the acquisition were $198,099,459. On November 8, 1994, NTX acquired all of the net assets of Nuveen Texas Premium Income Municipal Fund (NTE) pursuant to a plan of reorganization approved by the shareholders of both Funds on October 21, 1994. The acquisition was accomplished by a tax-free exchange of 2,231,243 shares of NTX for the 2,476,985 shares of NTE outstanding on November 8, 1994. NTE's net assets at that date of $47,805,776 included $5,095,320 of net unrealized depreciation and $19,000,000 of preferred shares at liquidation value which were combined with that of NTX. The combined net assets of NTX immediately after the acquisition were $190,172,942. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with generally accepted accounting principles. Securities Valuation Portfolio securities for which market quotations are readily available are valued at the mean between the quoted bid and asked prices or the yield equivalent. Portfolio securities for which market quotations are not readily available are valued at fair value by consistent application of methods determined in good faith by the Board of Directors/Trustees. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are traded and valued at amortized cost. Securities Transactions Securities transactions are recorded on a trade-date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may be settled a month or more after the transaction date. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of their purchase commitments. At July 31, 1996, NUM had purchase commitments of $1,993,800. There were no such purchase commitments in any of the other funds. Interest Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securities when required for federal income tax purposes. Income Taxes The Funds intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing to shareholders all of their tax-exempt net investment income, in addition to any significant amounts of net realized capital gains and/or market discount realized from investment transactions. The Funds currently consider significant net realized capital gains and/or market discount as amounts in excess of $.01 per Common share. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal personal income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. All regular monthly income dividends paid during the year ended July 31, 1996, have been designated Exempt Interest Dividends which are entirely exempt from federal personal income taxes. Net realized capital gain and market discount distributions are subject to federal taxation. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared as a dividend monthly and payment is made or reinvestment is credited to shareholder accounts after month-end. Net realized capital gains and/or market discount from investment transactions are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryovers. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount are recorded on the ex-dividend date. The amount and timing of such distributions are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. Accordingly, temporary over-distributions as a result of these differences may occur and will be classified as either distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of 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 one or more Series. The dividend rate may change every seven days, as set by the Auction Agent. The number of shares outstanding, by series and in total, at July 31, 1996, were as follows:
NAZ NUM NMP NUO Number of shares: Series M -- -- 840 680 Series Th 1,200 3,200 1,400 1,400 Series Th2 -- -- -- 1,000 ----- ----- ----- ----- Total 1,200 3,200 2,240 3,080 ===== ===== ===== ===== NTX Number of shares: Series M 760 Series Th 2,000 Series Th2 -- ----- Total 2,760 ===== Derivative Financial Instruments In October 1994, the Financial Accounting Standards Board (FASB) issued Statement of of Financial Accounting Standards No. 119, Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments, which prescribes disclosure requirements for transactions in certain derivative financial instruments including futures, forward, swap, and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the year ended July 31, 1996. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period.
2. FUND SHARES Transactions in Common and Preferred shares were as follows:
NAZ NUM Year ended Year ended Year ended Year ended 7/31/96 7/31/95 7/31/96 7/31/95 Common Shares: Shares issued in acquisition of NMH, NOH and NOO, or NTE, as applicable (note 1) -- -- -- -- Shares issued to shareholders due to reinvestment of distributions -- -- 70,927 60,995 -- -- ------ ------ Net increase -- -- 70,927 60,995 == == ====== ====== Preferred shares acquired from NMH, NOH and NOO, or NTE, as applicable (note 1) -- -- -- -- == == ====== ====== NMP NUO Year ended Year ended Year ended Year ended 7/31/96 7/31/95 7/31/96 7/31/95 Common Shares: Shares issued in acquisition of NMH, NOH and NOO, or NTE, as applicable (note 1) -- 2,781,169 -- 4,728,624 Shares issued to shareholders due to reinvestment of distributions -- -- 31,404 17,091 -- --------- --------- --------- Net increase -- 2,781,169 31,404 4,745,715 == ========= ========= ========= Preferred shares acquired from NMH, NOH and NOO, or NTE, as applicable (note 1) -- 840 -- 1,680 == ========= ========= ========= NTX Year ended Year ended 7/31/96 7/31/95 Common Shares: Shares issued in acquisition of NMH, NOH and NOO, or NTE, as applicable (note 1) -- 2,231,243 Shares issued to shareholders due to reinvestment of distributions 6,593 14,584 ---------- --------- Net increase 6,593 2,245,827 ========== ========= Preferred shares acquired from NMH, NOH and NOO, or NTE, as applicable (note 1) -- 760 ========== =========
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the year ended July 31, 1996, were as follows:
NAZ NUM NMP NUO PURCHASES Investments in municipal securities $14,538,998 $38,021,012 $28,293,269 $42,850,580 Temporary municipal investments 7,500,000 14,400,000 15,200,000 16,600,000 SALES AND MATURITIES Investments in municipal securities 14,015,678 38,506,895 27,552,259 41,020,740 Temporary municipal investments 8,200,000 10,500,000 14,700,000 19,100,000 =========== =========== =========== =========== NTX PURCHASES Investments in municipal securities $35,808,011 Temporary municipal investments 20,340,000 SALES AND MATURITIES Investments in municipal securities 35,812,520 Temporary municipal investments 20,940,000 =========== At July 31, 1996, the identified cost of investments owned for federal income tax purposes was the same as the cost for financial reporting purposes for each Fund.
At July 31, 1996, the following Funds had unused capital loss carryovers available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryovers will expire as follows:
NAZ NMP NUO Expiration year: 2002 $ -- $ 347,424 $1,566,076 2003 1,426,173 627,148 16,493 2004 -- 1,807,234 622,243 ---------- ---------- ---------- Total $1,426,173 $2,781,806 $2,204,812 ========== ========== ========== 4. DISTRIBUTIONS TO COMMON SHAREHOLDERS On August 1, 1996, the Funds declared Common share dividend distributions from their tax-exempt net investment income that were paid September 3, 1996, to shareholders of record on August 15, 1996, as follows: NAZ NUM NMP NUO Dividend per share $.0675 $.0795 $.0660 $.0800 ====== ====== ====== ====== NTX Dividend per share $.0780 ======
5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 1996, were as follows:
NAZ NUM NMP NUO Gross unrealized: Appreciation $ 4,166,795 $ 14,620,102 $ 4,225,180 $ 8,309,751 Depreciation (55,146) (219,798) (471,850) (705,234) ------------ ------------ ------------ ------------ Net unrealized appreciation $ 4,111,649 $ 14,400,304 $ 3,753,330 $ 7,604,517 ============ ============ ============ ============ NTX Gross unrealized: Appreciation $8,745,144 Depreciation (507,922) ---------- Net unrealized appreciation $8,237,222 ========== 6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' investment management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund pays to the Adviser an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net asset value of each Fund: AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE For the first $125,000,000 .65 of 1% For the next $125,000,000 .6375 of 1 For the next $250,000,000 .625 of 1 For the next $500,000,000 .6125 of 1 For the next $1,000,000,000 .6 of 1 For net assets over $2,000,000,000 .5875 of 1 The fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those Directors/Trustees 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 July 31, 1996, net assets consisted of:
NAZ NUM NMP NUO Preferred shares, $25,000 stated value per share, at liquidation value $ 30,000,000 $ 80,000,000 $ 56,000,000 $ 77,000,000 Common shares, $.01 par value per share 42,806 111,917 76,777 92,487 Paid-in surplus 59,165,114 155,720,603 107,234,590 139,237,777 Balance of undistributed net investment income 201,195 592,803 404,846 677,362 Accumulated net realized gain (loss) from investment transactions (1,426,173) 207,361 (2,781,806) (2,461,333) In excess of net realized gains -- -- -- -- Net unrealized appreciation of investments 4,111,649 14,400,304 3,753,330 7,604,517 ------------- ------------- ------------- ------------- Net assets $ 92,094,591 $ 251,032,988 $ 164,687,737 $ 222,150,810 ============= ============= ============= ============= 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 ============= ============= ============= ============= NTX Preferred shares, $25,000 stated value per share, at liquidation value $ 69,000,000 Common shares, $.01 par value per share 93,924 Paid-in surplus 133,003,156 Balance of undistributed net investment income 291,725 Accumulated net realized gain (loss) from investment transactions (107,896) In excess of net realized gains (95,313) Net unrealized appreciation of investments 8,237,222 ------------- Net assets $ 210,422,818 ============= Authorized shares: Common Unlimited Preferred Unlimited =============
8. INVESTMENT COMPOSITION Each Fund invests in municipal securities which include general obligation, escrowed and revenue bonds. At July 31, 1996, the revenue sources by municipal purpose for these investments, expressed as a percent of total investments, were as follows:
NAZ NUM NMP NUO Revenue Bonds: Health Care Facilities 10% 18% 21% 16% Pollution Control Facilities 6 8 15 8 Water / Sewer Facilities 16 6 8 12 Housing Facilities 1 12 13 8 Educational Facilities 5 2 5 12 Electric Utilities 4 4 8 3 Transportation 6 1 2 6 Lease Rental Facilities 5 4 2 4 Other 6 5 7 1 General Obligation Bonds 22 25 17 19 Escrowed Bonds 19 15 2 11 ----- ----- ----- ----- 100% 100% 100% 100% ===== ===== ===== ===== NTX Revenue Bonds: Health Care Facilities 14% Pollution Control Facilities 17 Water / Sewer Facilities 7 Housing Facilities 10 Educational Facilities 9 Electric Utilities 5 Transportation 7 Lease Rental Facilities 2 Other 2 General Obligation Bonds 16 Escrowed Bonds 11 ----- 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 (64% for NAZ, 56% for NUM, 51% for NMP, 57% for NUO and 46% for NTX). Such insurance or escrow, however, does not guarantee the market value of the municipal securities or the value of any of the Funds' shares. Certain temporary investments in short-term municipal securities have credit enhancements (letters of credit, guarantees or insurance) issued by third party domestic or foreign banks or other institutions (100% for NAZ, 95% for NUM, 0% for NMP, 100% for NUO and 100% for NTX). For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Dividends from tax-exempt Operating performance net investment income Net realized and Net asset unrealized value Net gain (loss) beginning investment from To Common To Preferred of period income investments** shareholders shareholders++ NAZ Year ended 7/31, 1996 $14.120 $1.053 $ .373 $ (.795) $(.241) 1995 13.610 1.065 .491 (.780) (.266) 1994 14.490 1.067 (.835) (.789) (.257) 11/19/92 to 7/31/93 14.050 .524 .694 (.420) (.114) NUM Year ended 7/31, 1996 15.100 1.193 .264 (.954) (.236) 1995 15.020 1.212 .183 (.999) (.259) 1994 15.850 1.210 (.817) (1.051) (.172) 1993 15.230 1.205 .583 (.970) (.172) 2 mos. ended 7/31/92 14.290 .201 .923 (.151) (.033) 10/17/91 to 5/31/92 14.050 .473 .402 (.378) (.067) NMP Year ended 7/31, 1996 13.730 1.047 .409 (.777) (.249) 1995 13.460 1.042 .305 (.801) (.276) 1994 14.470 1.033 (1.015) (.810) (.170) 12/17/92 to 7/31/93 14.050 .405 .622 (.338) (.054) Distributions from capital gains Organization Per and offering Common costs and share Preferred share Net asset market To Common To Preferred underwriting value end value end shareholders shareholders++ discounts of period of period NAZ Year ended 7/31, 1996 $ -- $ -- $ -- $14.510 $13.875 1995 -- -- -- 14.120 13.625 1994 (.053) (.013) -- 13.610 13.125 11/19/92 to 7/31/93 -- -- (.244) 14.490 15.750 NUM Year ended 7/31, 1996 (.068) (.019) -- 15.280 15.500 1995 (.049) (.008) -- 15.100 14.875 1994 -- -- -- 15.020 15.250 1993 (.022) (.004) -- 15.850 16.000 2 mos. ended 7/31/92 -- -- -- 15.230 15.500 10/17/91 to 5/31/92 -- -- (.190) 14.290 15.125 NMP Year ended 7/31, 1996 -- -- -- 14.160 12.875 1995 -- -- -- 13.730 12.000 1994 (.040) (.008) -- 13.460 12.500 12/17/92 to 7/31/93 -- -- (.215) 14.470 15.000 Ratios/Supplemental data Ratio Total of net investment Total Ratio of investment return return Net assets expenses to income Portfolio on market on net asset end of period average net to average turnover value+ value+ (in thousands) assets*** net assets*** rate NAZ Year ended 7/31, 1996 7.83% 8.48% $92,095 .90% 4.88% 15% 1995 10.42 9.98 90,434 .86 5.21 11 1994 (11.66) (.43) 88,263 .84 4.97 21 11/19/92 to 7/31/93 7.92 6.19 91,363 .91* 4.22* 40 NUM Year ended 7/31, 1996 11.32 8.07 251,033 .83 5.29 15 1995 4.77 8.02 247,907 .84 5.54 18 1994 1.82 1.33 246,082 .85 5.27 4 1993 9.97 11.09 253,881 .88 5.36 6 2 mos. ended 7/31/92 3.51 7.69 244,930 .85* 5.45* -- 10/17/91 to 5/31/92 3.38 4.46 234,439 .82* 4.54* 1 NMP Year ended 7/31, 1996 14.00 8.88 164,688 .87 4.87 17 1995 2.59 8.45 161,414 1.01 5.02 32 1994 (11.43) (1.27) 100,888 .94 4.82 17 12/17/92 to 7/31/93 2.25 5.44 105,494 .92* 3.73* 15 See notes on page 66.
FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Dividends from tax-exempt Operating performance net investment income Net realized and Net asset unrealized value Net gain (loss) beginning investment from To Common To Preferred of period income investments** shareholders shareholders++ NUO Year ended 7/31, 1996 $15.330 $1.227 $ .354 $ (.953) $(.268) 1995 14.840 1.220 .514 (.945) (.299) 1994 15.720 1.193 (.830) (1.027) (.175) 1993 15.020 1.175 .697 (.925) (.194) 2 mos. ended 7/31/92 14.070 .197 .935 (.146) (.036) 10/17/91 to 5/31/92 14.050 .464 .261 (.365) (.071) NTX Year ended 7/31, 1996 14.910 1.207 .204 (.948) (.265) 1995 14.530 1.215 .428 (.980) (.283) 1994 15.410 1.206 (.820) (1.062) (.174) 1993 15.090 1.204 .304 (.973) (.181) 2 mos. ended 7/31/92 14.190 .203 .883 (.151) (.035) 10/17/91 to 5/31/92 14.050 .494 .309 (.378) (.067) Distributions from capital gains Organization Per and offering Common costs and share Preferred share Net asset market To Common To Preferred underwriting value end value end shareholders shareholders++ discounts of period of period NUO Year ended 7/31, 1996 $ -- $ -- $ -- $15.690 $16.000 1995 -- -- -- 15.330 15.125 1994 (.034) (.007) -- 14.840 15.125 1993 (.042) (.011) -- 15.720 15.750 2 mos. ended 7/31/92 -- -- -- 15.020 15.250 10/17/91 to 5/31/92 -- -- (.269) 14.070 15.000 NTX Year ended 7/31, 1996 (.037)+++ (.011)+++ -- 15.060 14.875 1995 -- -- -- 14.910 13.875 1994 (.026) (.004) -- 14.530 14.750 1993 (.028) (.006) -- 15.410 15.875 2 mos. ended 7/31/92 -- -- -- 15.090 15.375 10/17/91 to 5/31/92 -- -- (.218) 14.190 14.875 Ratios/Supplemental data Ratio Total of net investment Total Ratio of investment return return Net assets expenses to income Portfolio on market on net asset end of period average net to average turnover value+ value+ (in thousands) assets*** net assets*** rate NUO Year ended 7/31, 1996 12.39% 8.68% $222,151 .87% 5.09% 19% 1995 6.80 10.16 218,335 .94 5.24 19 1994 2.72 1.06 101,335 .94 5.09 2 1993 9.89 11.64 104,507 1.00 5.13 23 2 mos. ended 7/31/92 2.66 7.84 100,696 1.00* 5.25* 5 10/17/91 to 5/31/92 2.43 2.79 96,465 .89* 4.40* 4 NTX Year ended 7/31, 1996 14.60 7.72 210,423 .83 5.36 17 1995 1.14 9.89 208,924 .91 5.54 8 1994 (.27) 1.28 153,724 .86 5.43 10 1993 10.24 9.19 159,329 .89 5.49 6 2 mos. ended 7/31/92 4.44 7.46 156,031 .86* 5.60* 4 10/17/91 to 5/31/92 1.68 3.74 149,694 .86* 5.65* -- * Annualized. ** Net of taxes, if applicable. *** Ratios do not reflect the effect of dividend payments to Preferred shareholders. + Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. ++ The amounts shown are based on Common share equivalents. +++ The amounts shown include distributions in excess of capital gains of $.008 for Common shareholders and $.002 for Preferred shareholders.
REPORT OF INDEPENDENT AUDITORS The Boards of Directors, Trustees and Shareholders Nuveen Arizona Premium Income Municipal Fund, Inc. Nuveen Michigan Quality Income Municipal Fund, Inc. Nuveen Michigan Premium Income Municipal Fund, Inc. Nuveen Ohio Quality Income Municipal Fund, Inc. Nuveen Texas Quality Income Municipal Fund We have audited the accompanying statements of net assets, including the portfolios of investments, of Nuveen Arizona Premium Income Municipal Fund, Inc., Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Ohio Quality Income Municipal Fund, Inc. and Nuveen Texas Quality Income Municipal Fund as of July 31, 1996, and the related statements of operations, changes in net assets and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of July 31, 1996, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Arizona Premium Income Municipal Fund, Inc., Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Ohio Quality Income Municipal Fund, Inc. and Nuveen Texas Quality Income Municipal Fund at July 31, 1996, and the results of their operations, changes in their net assets and financial highlights for the periods indicated therein in conformity with generally accepted accounting principles. Ernst & Young LLP Chicago, Illinois September 13, 1996 Build your wealth automatically Photographic image of Customer Service Rep at Nuveen. Managing your portfoliotakes skill, experience, and informed judgment, but our efforts to help you build your wealth don't stop there. At Nuveen, we offer a number of convenient ways to add to your tax-free portfolio and earn the tax-free income you need to achieve your financial goals. NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. If you do not elect to reinvest distributions, all distributions are paid by check, or can be deposited directly your bank or brokerage account. By choosing to reinvest, you'll be able to set aside money regularly and automatically, and watch your investment grow through the power of tax-free compounding. You'll also benefit from dollar-cost averaging, a technique of investing at regular intervals, which allows you to build a high-quality, tax-free portfolio conveniently and cost effectively over time. All reinvestments are invested in full and fractional shares and are kept in non-certificated form by the Plan Agent, Chase Manhattan Bank. To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. Income or capital gains taxes may be payable on dividends or distributions that are reinvested. The shares you acquire by reinvesting will either be purchased on the open market or be newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will be invested within 30 days of the dividend payment date; no interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. You may, of course, change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You also can reinvest if your shares are registered in the name of a brokerage firm, bank, or other nominee. Just ask your investment adviser if the firm will participate on your behalf. If not, it's easy to have the shares registered in your name and to apply for a reinvestment account directly. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial adviser or call us toll-free at 1.800.257.8787. Photographic image of Customer Service Rep at Nuveen. "When it comes to financial planning, your investment adviser knows your situation best. Nuveen is pleased to provide the account information you and your adviser need to plan effectively." Photographic image of Customer Service Rep at Nuveen. "At Nuveen, we make reinvesting easy. A phone call is all it takes to set up your reinvestment account." Photographic image of Customer Service Rep at Nuveen. "When questions come up about your investment, we're happy to provide the up-to-date information you and your adviser need." More than just a number If you've ever called our toll-free customer service line, you've spoken with one of Nuveen's customer service representatives. These reps are ready to assist you with answers to your questions about current account balances, yields, and previous transactions on your accounts. They can also supply additional information about any of Nuveen's tax-free unit trusts and mutual funds. If you have a question about your account, or whenever you need help, just call 800.257.8787. Our customer service reps are available Monday through Friday from 8:00 a.m. to 8:00 p.m. Eastern time. Photographic image of woman seated and man standing behind her representing Nuveen investors. Your investment partner Photographic image of John Nuveen, Sr., founder of Nuveen. For nearly 100 years, Nuveen has earned its reputation as a tax-free income specialist by focusing on municipal bonds. Since 1898, John Nuveen & Co. Incorporated has worked to bring together the various participants in the municipal bond industry and build strong partnerships that benefit all concerned. Investors, financial advisers, municipal officials, investment bankers--Nuveen believes that forging relationships with these groups based on trust and value is the key to successful investing. As the oldest and largest municipal bond specialist in the United States, Nuveen's investment bankers work with issuers to understand and meet their needs in structuring and selling their bond issues. Nuveen also works closely with financial advisers around the country, including brokerage firms, banks, insurance companies, and independent financial planners, to bring the benefits of tax-free investing to you. These advisers are experts at identifying your needs and recommending the best solutions for your situation. Together we make a powerful team, helping you create a successful investment plan that meets your needs today and in the future. John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, Illinois 60606-1286 ETF1-SEP 96 -----END PRIVACY-ENHANCED MESSAGE-----