-----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, E6C6xPd6JKmS8eXwWmmPKSnL5DzygOipUjo5OSY6VWMfAOHWQSEkSTBVfiRid7aY 7vwaD90p7zr7BRl3iMCVCA== 0000891804-97-000122.txt : 19970401 0000891804-97-000122.hdr.sgml : 19970401 ACCESSION NUMBER: 0000891804-97-000122 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970131 FILED AS OF DATE: 19970331 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: 97571819 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 FUND, 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) SEMIANNUAL REPORT/JANUARY 31, 1997 Photographic image of couple walking on beach. CONTENTS 3 Dear shareholder 5 Answering your questions 9 Fund performance 12 Commonly used terms 14 Shareholder meeting report 18 Portfolio of investments 51 Statement of net assets 53 Statement of operations 55 Statement of changes in net assets 58 Notes to financial statements 68 Financial highlights Photographic image of headshot of Chairman and Chief Executive Officer of Nuveen. "These funds continue to achieve their goal of delivering attractive tax-free income." Dear shareholder I am pleased to have this opportunity to report to you on the performance of your funds, which continue to achieve their goal of delivering attractive tax-free income from portfolios of investment-grade quality municipal bonds. Because the proceeds from these bonds are used to maintain and improve the infrastructures of the states where you live, your investment has several advantages: As you support the publicly funded projects that enhance your communities, you benefit from the credit strength of these communities and also receive income that is exempt from federal and--in most cases--state income taxes. As of January 31, 1997, investors in the Arizona, Michigan, Ohio, and Texas funds were receiving annual tax-free yields that ranged from 5.73% to 6.24%. To match these yields, an investor in the 36% federal income tax bracket would have had to earn at least 8.95% on taxable alternatives; the addition of state taxes to this equation further enhances the yield advantage provided by tax-free bonds to shareholders in Arizona, Michigan, and Ohio. These funds generated total returns, including reinvested income and changes in net asset values, of 2.28% to 3.70%, equivalent to taxable total returns of 5.85% to 7.16%. This reflects the 1996 bond market, which experienced a mid-year decline followed by a post-election rally that ended the year slightly lower than when it began. Municipals performed better than Treasuries in this regard. Several aspects of our conservative approach to management help position these funds to perform well in changing market environments. First, we enhance income through the prudent use of leverage, issuing short-term preferred shares to investors seeking short-term liquidity and investing the proceeds to buy additional long-term bonds. Shareholders of common stock earn extra income from the difference between the rates earned on the fund's long-term bond portfolio and the short-term rates paid on preferred shares. In addition, our conservative dividend policy promotes stability by setting dividends at levels that are expected to remain consistent for at least six months. In this way, Nuveen works to smooth out fluctuations in short-term rates, enabling investors to depend on their tax-free income. Nuveen continues to help investors keep more of what they have earned. In November we launched the Nuveen Growth and Income Stock Fund, offering prudent investors superior equity market performance potential with less risk than the overall stock market. This month we introduced two new balanced mutual funds, each designed to give investors the combination of performance potential and income protection that comes from a carefully assembled balance of stocks and bonds. Ask your financial adviser for more information about these equity-based mutual funds, or call us at (800) 621-7227 for a prospectus. Please read it carefully before you invest. In an additional move to increase the range of investment solutions available to our investors, Nuveen has acquired Flagship Resources Inc., a highly regarded, fixed-income mutual fund specialist that shares our views on the importance of research and emphasizes a conservative, value-oriented approach to portfolio management. We recently completed the integration of our tax-exempt mutual fund activities, which now enables us to offer the broadest selection of municipal bond funds available in the U.S. Thank you for your continued confidence in Nuveen and our family of investments. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board March 17, 1997 Answering your questions Tom Spalding, head of Nuveen's portfolio management team, talks about the municipal bond market and offers insights into factors that affected fund performance over the past year. How would you summarize 1996's bond market? What is the current outlook? In 1996, the bond market--despite some fluctuations--was relatively stable compared with recent years. While 1994 represented the worst period in recent bond market history and 1995 the best in a decade, last year's bond market finished mostly unchanged. A late second-half rebound reclaim ed much of the territory lost in a mid-year decline. Throughout 1996, the municipal bond market continued to reward investors with solid returns, dependable income, and opportunities to purchase bonds with strong credit quality. A look at the current economy shows a positive tone, reflecting a combination of factors that historically bode well for the bond market, especially for long-term issues. Yields remain attractive, as inflation maintains the same modest pace that it has demonstrated over the past six years, giving every indication of being well under control. At the same time, economic expansion continues to be slow and steady, as evidenced by lack of price pressure at the consumer and producer levels, strong consumer confidence, low unemployment figures, and a stable money supply. What principal factors affected the bond market and Nuveen funds last year? Following a strong start to the year, a succession of mixed reports affecting interest rate and inflation forecasts caused investors to view the markets with alternating enthusiasm and uncertainty. In the third quarter of 1996, evidence of an economic slowdown, the strong U.S. dollar, and lack of inflationary pressures combined to allay investor fears, sparking a rally in bonds that continued through the post-election period. Throughout the year, euphoria in the equity market focused investors' attention on stocks and brought record amounts of new money into equity-based mutual funds, bypassing the bond market. Some investors, concerned about a possible correction in the stock market, decided to take their profits, but adopted a wait-and-see attitude about investing capital gains, electing to go with short-term vehicles until a clearer picture of market trends emerged. These events affected demand for bond issues of all types in 1996. Even with relative stability in 1996, interest rates continued to play a role in bond market performance. The Federal Reserve altered interest rates only once in 1996, with a 0.25% increase in January, but anticipation of further moves kept the markets restless the remainder of the year. The concern about potential changes in monetary policy continued into 1997. 1996 also saw a general improvement in fund discounts, as some exchange-traded funds experienced a combination of rising share prices and lower net asset values as interest rates moved upward slightly. We believe that the current yields and prudent dividend policy offered by Nuveen funds present an attractive investment opportunity for investors seeking to enjoy income and re-balance their portfolio in light of significant gains in stocks. In view of current market conditions, has Nuveen made any changes to the way it manages these funds? We continue to believe that value investing is the best investment strategy for the funds we manage. Successful value investing depends on obtaining detailed insights into the outlook for individual issuers and the characteristics of specific bonds--assessments that are not yet recognized by the market as a whole. What effect will bond calls have on these portfolios? The funds covered in this report, which were issued between October 1991 and December 1992, have virtually no call exposure. It is important to understand that the bond market has dealt with the issue of bond calls and pre-refundings for years as a result of declining interest rates and strong price appreciation of bonds. Although this has put some pressure on the dividends of Nuveen funds issued prior to 1991, all of our funds have performed well through this period. In addition to strong call protection, shareholders in these funds continue to enjoy attractive dividends. These levels reflect the leveraged structure of these funds, which enables them to increase the portfolio's income stream for the benefit of common share holders by investing the proceeds from the sale of short-term preferred shares in the purchase of additional intermediate and long-term bonds. 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. NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC. NAZ In keeping with the Fund's goal of providing attractive, dependable tax-free income, shareholders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 2/13/96 $0.0675 3/13/96 $0.0675 4/11/96 $0.0675 5/13/96 $0.0675 6/12/96 $0.0675 7/11/96 $0.0675 8/13/96 $0.0675 9/11/96 $0.0675 10/10/96 $0.0675 11/13/96 $0.0675 12/11/96 $0.0675 1/13/97 $0.0675 FUND HIGHLIGHTS 1/31/97 Yield 5.73% Taxable-equivalent yield 9.47% Annual total return on NAV 2.28% Taxable-equivalent total return 5.85% Share price $14.125 NAV $14.72 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the 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. In addition, shareholders received a capital gains distribution in December 1996.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 2/13/96 $0.0795 3/13/96 $0.0795 4/11/96 $0.0795 5/13/96 $0.0795 6/12/96 $0.0795 7/11/96 $0.0795 8/13/96 $0.0795 9/11/96 $0.0795 10/10/96 $0.0795 11/13/96 $0.0795 12/11/96 $0.0795 .0256 1/13/97 $0.0795 FUND HIGHLIGHTS 1/31/97 Yield 6.11% Taxable-equivalent yield 10.10% Annual total return on NAV 3.27% Taxable-equivalent total return 7.31% Share price $15.625 NAV $15.40 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. NMP The fund's monthly tax-free dividend was increased once during the 12 months ended January 31, 1997. Shareholders continue to benefit from the fund's leveraged structure. In addition, the portfolio continues to have significant call protection.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 2/13/96 $0.0645 3/13/96 $0.0645 4/11/96 $0.0645 5/13/96 $0.0645 6/12/96 $0.0660 7/11/96 $0.0660 8/13/96 $0.0660 9/11/96 $0.0660 10/10/96 $0.0660 11/13/96 $0.0660 12/11/96 $0.0660 1/13/97 $0.0660 FUND HIGHLIGHTS 1/31/97 Yield 6.21% Taxable-equivalent yield 10.26% Annual total return on NAV 2.72% Taxable-equivalent total return 6.28% Share price $12.750 NAV $14.39 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC. NUO In keeping with the Fund's goal of providing attractive, dependable tax-free income, shareholders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 2/13/96 $0.0800 3/13/96 $0.0800 4/11/96 $0.0800 5/13/96 $0.0800 6/12/96 $0.0800 7/11/96 $0.0800 8/13/96 $0.0800 9/11/96 $0.0800 10/10/96 $0.0800 11/13/96 $0.0800 12/11/96 $0.0800 1/13/97 $0.0800 FUND HIGHLIGHTS 1/31/97 Yield 5.82% Taxable-equivalent yield 9.86% Annual total return on NAV 3.46% Taxable-equivalent total return 7.65% Share price $16.50 NAV $15.92 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND NTX In keeping with the Fund's goal of providing attractive, dependable tax-free income, shareholders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 2/13/96 $0.0780 3/13/96 $0.0780 4/11/96 $0.0780 5/13/96 $0.0780 6/12/96 $0.0780 7/11/96 $0.0780 8/13/96 $0.0780 9/11/96 $0.0780 10/10/96 $0.0780 11/13/96 $0.0780 12/11/96 $0.0780 1/13/97 $0.0780 FUND HIGHLIGHTS 1/31/97 Yield 6.24% Taxable-equivalent yield 9.75% Annual total return on NAV 3.70% Taxable-equivalent total return 7.16% Share price $15.00 NAV $15.27 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
Commonly used terms Yield An exchange-traded fund's annualized monthly dividend on a given date (in the case of this report, January 31, 1997) 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, 39.5% for MI, 41% for OH, and 36% for TX, based on 1997 incomes of $124,650-$271,050 for investors filing singly, $151,750-$271,050 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 6-month period ended January 31, 1997. Any future repur-chases will be reported to shareholders in the next annual or semiannual report.
SHAREHOLDER MEETING REPORT On October 10, 1996, the following Nuveen Exchange-Traded Funds held an Annual Meeting of Shareholders. At the meeting, shareholders voted to elect directors of the Funds, to ratify selection of Ernst & Young L.L.P. as the auditors for the Funds, and to approve amendments to the terms of the Funds' Municipal Auction Rate Cumulative Preferred Stock. The directors elected at the meeting include: Lawrence H. Brown, Anthony T. Dean, Anne E. Impellizzeri, Peter R. Sawers, Margaret K. Rosenheim, and Timothy R. Schwertfeger. NAZ Preferred Common Shares Shares Series-Th - -------------------------------------------------------------------------------- RATIFICATION OF THE DIRECTORS WAS REACHED AS FOLLOWS: Lawrence H. Brown For 4,012,856 1,128 Withhold 63,076 12 --------- --------- Total 4,075,932 1,140 ========= ========= Anthony T. Dean For 4,016,056 1,128 Withhold 59,876 12 --------- --------- Total 4,075,932 1,140 ========= ========= Anne E. Impellizzeri For 4,016,146 1,128 Withhold 59,786 12 --------- --------- Total 4,075,932 1,140 ========= ========= Peter R. Sawers For 4,017,056 1,128 Withhold 58,876 12 --------- --------- Total 4,075,932 1,140 ========= ========= Margaret K. Rosenheim For -- 1,128 Withhold -- 12 --------- --------- Total -- 1,140 ========= ========= Timothy R. Schwertfeger For -- 1,128 Withhold -- 12 --------- --------- Total -- 1,140 ========= ========= RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 4,015,019 1,121 Against 23,432 17 Abstain 37,481 2 --------- --------- Total 4,075,932 1,140 ========= ========= NUM NMP Preferred Preferred Preferred Common Shares Common Shares Shares Shares Series-Th Shares Series-M Series-Th - ----------------------------------------------------------------------------------------------------------------------- RATIFICATION OF THE DIRECTORS WAS REACHED AS FOLLOWS: Lawrence H. Brown For 10,111,478 3,056 6,856,986 792 1,394 Withhold 138,591 97 140,883 20 1 ---------- ---------- ---------- ---------- ---------- Total 10,250,069 3,153 6,997,869 812 1,395 ========== ========== ========== ========== ========== Anthony T. Dean For 10,111,478 3,056 6,858,338 792 1,394 Withhold 138,591 97 139,531 20 1 ---------- ---------- ---------- ---------- ---------- Total 10,250,069 3,153 6,997,869 812 1,395 ========== ========== ========== ========== ========== Anne E. Impellizzeri For 10,111,336 3,056 6,856,236 792 1,394 Withhold 138,733 97 141,633 20 1 ---------- ---------- ---------- ---------- ---------- Total 10,250,069 3,153 6,997,869 812 1,395 ========== ========== ========== ========== ========== Peter R. Sawers For 10,111,478 3,056 6,860,354 792 1,394 Withhold 138,591 97 137,515 20 1 ---------- ---------- ---------- ---------- ---------- Total 10,250,069 3,153 6,997,869 812 1,395 ========== ========== ========== ========== ========== Margaret K. Rosenheim For -- 3,056 -- 792 1,394 Withhold -- 97 -- 20 1 ---------- ---------- ---------- ---------- ---------- Total -- 3,153 -- 812 1,395 ========== ========== ========== ========== ========== Timothy R. Schwertfeger For -- 3,056 -- 792 1,394 Withhold -- 97 -- 20 1 ---------- ---------- ---------- ---------- ---------- Total -- 3,153 -- 812 1,395 ========== ========== ========== ========== ========== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 9,999,976 3,048 6,839,308 795 1,390 Against 34,420 66 22,307 16 3 Abstain 215,673 39 136,254 1 2 ---------- ---------- ---------- ---------- ---------- Total 10,250,069 3,153 6,997,869 812 1,395 ========== ========== ========== ========== ========== APPROVAL OF AMENDMENTS TO PREFERRED STOCK WAS REACHED AS FOLLOWS: For 6,248,489 2,809 -- -- -- Against 155,500 167 -- -- -- Abstain 425,387 173 -- -- -- Broker Non-Vote 3,420,693 -- -- -- -- ---------- ---------- ---------- ---------- ---------- Total 10,250,069 3,149 -- -- -- ========== ========== ========== ========== ========== NUO Preferred Preferred Preferred Common Shares Shares Shares Shares Series-M Series-Th Series-Th2 - --------------------------------------------------------------------------------------------------------------- RATIFICATION OF THE DIRECTORS WAS REACHED AS FOLLOWS: Lawrence H. Brown For 8,240,725 645 1,375 993 Withhold 95,283 24 -- -- --------- --------- --------- --------- Total 8,336,008 669 1,375 993 ========= ========= ========= ========= Anthony T. Dean For 8,241,191 645 1,375 993 Withhold 94,817 24 -- -- --------- --------- --------- --------- Total 8,336,008 669 1,375 993 ========= ========= ========= ========= Anne E. Impellizzeri For 8,240,390 645 1,375 993 Withhold 95,618 24 -- -- --------- --------- --------- --------- Total 8,336,008 669 1,375 993 ========= ========= ========= ========= Peter R. Sawers For 8,240,439 645 1,375 993 Withhold 95,569 24 -- -- --------- --------- --------- --------- Total 8,336,008 669 1,375 993 ========= ========= ========= ========= Margaret K. Rosenheim For -- 645 1,375 993 Withhold -- 24 -- -- --------- --------- --------- --------- Total -- 669 1,375 993 ========= ========= ========= ========= Timothy R. Schwertfeger For -- 645 1,375 993 Withhold -- 24 -- -- --------- --------- --------- --------- Total -- 669 1,375 993 ========= ========= ========= ========= RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 8,192,611 645 1,373 981 Against 35,417 -- -- 1 Abstain 107,980 24 2 11 --------- --------- --------- --------- Total 8,336,008 669 1,375 993 ========= ========= ========= ========= APPROVAL OF AMENDMENTS TO PREFERRED STOCK WAS REACHED AS FOLLOWS: For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Vote -- -- -- -- --------- --------- --------- --------- Total -- -- -- -- ========= ========= ========= ========= NTX Preferred Preferred Common Shares Shares Shares Series-M Series-Th - ----------------------------------------------------------------------------------------- RATIFICATION OF THE DIRECTORS WAS REACHED AS FOLLOWS: Lawrence H. Brown For 8,532,430 715 1,901 Withhold 80,735 5 11 --------- --------- --------- Total 8,613,165 720 1,912 ========= ========= ========= Anthony T. Dean For 8,532,430 715 1,901 Withhold 80,735 5 11 --------- --------- --------- Total 8,613,165 720 1,912 ========= ========= ========= Anne E. Impellizzeri For 8,530,316 715 1,901 Withhold 82,849 5 11 --------- --------- --------- Total 8,613,165 720 1,912 ========= ========= ========= Peter R. Sawers For 8,532,430 715 1,901 Withhold 80,735 5 11 --------- --------- --------- Total 8,613,165 720 1,912 ========= ========= ========= Margaret K. Rosenheim For -- 715 1,901 Withhold -- 5 11 --------- --------- --------- Total -- 720 1,912 ========= ========= ========= Timothy R. Schwertfeger For -- 715 1,901 Withhold -- 5 11 --------- --------- --------- Total -- 720 1,912 ========= ========= ========= RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 8,502,810 715 1,901 Against 24,559 5 11 Abstain 85,796 -- -- --------- --------- --------- Total 8,613,165 720 1,912 ========= ========= ========= APPROVAL OF AMENDMENTS TO PREFERRED STOCK WAS REACHED AS FOLLOWS: For -- -- -- Against -- -- -- Abstain -- -- -- Broker Non-Vote -- -- -- --------- --------- --------- Total -- -- -- ========= ========= =========
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC. (NAZ) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,150,000 Arizona Municipal Financing Program of 1992, Refunding Certificates of Participation, Series 1, 6.000%, 8/01/17 Aaa 8/02 at 101 $ 2,201,600 1,500,000 State of Arizona, Arizona Transportation Board, Highway Revenue Bonds, Series 1990, 6.000%, 7/01/10 (Pre-refunded to 7/01/00) Aaa 7/00 at 101 1,592,400 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) Aa 5/04 at 102 1,859,883 500,000 Wastewater Management Authority of Arizona, Wastewater Treatment Financial Assistance Revenue Bonds, Series 1995, 5.750%, 7/01/15 Aaa 7/05 at 102 508,000 3,425,000 Wastewater Management Authority of Arizona, Wastewater Treatment Financial Assistance Revenue Bonds, Series 1996A, 5.600%, 7/01/12 Aaa 7/06 at 102 3,484,081 City of Bullhead City, Bullhead Parkway Improvement District Improvement Bonds: 910,000 6.100%, 1/01/08 Baa 1/03 at 103 945,945 970,000 6.100%, 1/01/09 Baa 1/03 at 103 1,002,107 1,600,000 City of Lake Havasu City Municipal Property Corporation, Municipal Facilities Revenue Bonds, Series 1993, 6.000%, 6/01/08 Aaa 6/02 at 101 1,678,992 1,400,000 Maricopa Rural Road Improvement District of Pinal County, Arizona, Refunding Bonds, Series 1994, 7.000%, 7/01/07 N/R 7/99 at 101 1,464,442 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 Aaa 7/02 at 102 1,524,795 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 Aaa No Opt. Call 4,112,325 600,000 The Industrial Development Authority of the County of Maricopa, Arizona, Baptist Hospital System Revenue Refunding Bonds, Series 1995, 5.500%, 9/01/16 Aaa 9/05 at 101 584,196 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) Aaa 7/02 at 100 3,428,523 605,000 6.000%, 7/01/12 Aaa 7/02 at 100 623,967 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 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 Aaa 7/03 at 102 $ 2,586,175 1,400,000 Chandler Unified School District No. 80 of Maricopa County, Arizona, General Obligation Refunding Bonds, Series 1993, 5.950%, 7/01/10 Aaa 7/03 at 101 1,464,092 450,000 Mesa Industrial Development Authority Health Care Facilities, Refunding Revenue Bonds (Western Health Network, Inc.), Series 1988B-1, 7.500%, 1/01/04 Aaa 1/99 at 102 481,262 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) Aaa 7/03 at 102 5,646,500 1,000,000 7.000%, 7/01/16 (Pre-refunded to 7/01/03) Aaa 7/03 at 102 1,142,430 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) AA+ 11/03 at 101 2,108,200 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 Aaa 6/02 at 101 2,127,580 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 AAA 5/06 at 103 1,043,650 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 Baa1 8/03 at 102 1,379,994 2,500,000 City of Phoenix, Arizona, General Obligation Refunding Bonds, Series 1992, 6.375%, 7/01/13 Aa1 7/02 at 102 2,686,525 1,600,000 City of Phoenix, Arizona, General Obligation Refunding Bonds, Series 1995A, 5.000%, 7/01/19 Aa1 7/05 at 101 1,486,880 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) AAA 7/03 at 102 5,176,768 2,500,000 City of Phoenix Civic Improvement Corporation (Arizona), Wastewater System Lease Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/10 A1 7/04 at 102 2,406,450 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,150,000 Phoenix Civic Plaza Building Corporation, Senior Lien Excise Tax Revenue Bonds, Series 1994, 6.000%, 7/01/14 AA+ 7/05 at 101 $ 2,219,295 470,000 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) AAA 6/05 at 102 476,951 1,990,000 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 Aaa 1/02 at 103 2,206,413 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 Aaa 1/03 at 101 1,587,282 415,000 The Industrial Development Authority of the County of Pima (Arizona), Single Family Mortgage Revenue Refunding Bonds, Series 1995A, 6.500%, 2/01/17 A 8/05 at 102 430,011 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 Aa 1/02 at 100 1,798,794 2,400,000 Salt River Project Agricultural Improvement and Power District, Electric System Revenue Refunding Bonds, 1993 Series C, 5.000%, 1/01/16 Aa 1/04 at 102 2,247,816 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 Aaa 7/04 at 101 2,095,260 3,000,000 City of Tucson, Arizona, General Obligation Bonds, Series 1984-G (1994), 6.250%, 7/01/18 Aaa 7/04 at 101 3,171,360 City of Tucson, Arizona, General Obligation Bonds, Series 1994-B (1996): 1,290,000 5.750%, 7/01/18 Aa 7/06 at 101 1,302,294 1,000,000 5.750%, 7/01/19 Aa 7/06 at 101 1,006,180 5,000,000 Tucson Airport Authority, Inc. (Arizona), Airport Revenue Bonds, Refunding Series 1993, 5.700%, 6/01/13 Aaa 6/03 at 102 5,064,050 725,000 City of Tucson, Arizona, Certificates of Participation, Series 1994, 6.375%, 7/01/09 AA 7/04 at 100 773,619 4,000,000 The Industrial Development Authority of The City of Tucson, Arizona, Tax-exempt Multifamily Housing Revenue Refunding Bonds, Series 1996, 5.900%, 12/20/31 AAA 12/06 at 102 3,976,240 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 3,500,000 City of Tucson, Arizona, Water System Revenue Refunding Bonds, Series 1992A, 5.750%, 7/01/18 A1 7/02 at 102 $ 3,507,140 1,500,000 City of Tucson, Arizona, Water System Revenue Bonds, Series 1994-A (1996), 6.000%, 7/01/21 Aaa 7/06 at 101 1,550,670 100,000 University of Arizona Telecommunications System, Certificates of Participation, Series 1991, 6.500%, 7/15/12 A+ 7/02 at 102 108,635 650,000 Certificates of Participation, Series 1994B (University of Arizona Administrative and Parking Facilities Project), 6.000%, 7/15/23 Aaa 7/04 at 102 661,941 2,000,000 University Medical Center Corporation (Tucson, Arizona), Hospital Revenue Refunding Bonds, Series 1992, 6.250%, 7/01/16 Aaa 7/02 at 102 2,093,336 1,000,000 Arizona Board of Regents, University of Arizona, System Revenue Refunding Bonds, Series 1992, 6.250%, 6/01/11 AA 6/02 at 102 1,062,320 - ----------------------------------------------------------------------------------------------------------------- $88,155,000 Total Investments - (cost $87,126,148) - 99.0% 92,087,369 =================------------------------------------------------------------------------------------------------ TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.4% $ 400,000 Maricopa County, Arizona Pollution Control ================= Corporation, Pollution Control Revenue Refunding Bonds (Arizona Public Service Company Palo Verde Project), 1994 Series C, Variable Rate Demand Bonds, 3.650%, 5/01/29+ A-1+ 400,000 - ----------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.6% 507,433 - ----------------------------------------------------------------------------------------------------------------- Net Assets - 100% $92,994,802 ================================================================================================================= NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 28 $62,290,839 67% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 11 18,551,806 19 PORTFOLIO OF A+ A1 3 6,022,225 7 INVESTMENTS A, A- A, A2, A3 1 430,011 1 (EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 3 3,328,046 4 TEMPORARY Non-rated- Non-rated 1 1,464,442 2 INVESTMENTS): - ------------------------------------------------------------------------------------------------------------------ TOTAL 47 $92,087,369 100% ================================================================================================================== * Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. ** Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. (NUM) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** 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) A 10/02 at 102 $ 1,053,180 1,250,000 6.800%, 10/01/08 (Alternative Minimum Tax) A 10/02 at 102 1,312,550 990,000 6.800%, 10/01/09 (Alternative Minimum Tax) A 10/02 at 102 1,036,451 2,000,000 Michigan Municipal Bond Authority, Local Government Loan Program Revenue Bonds, Series 1992D, 6.650%, 5/01/12 A 5/02 at 102 2,120,460 3,100,000 Michigan Municipal Bond Authority, State Revolving Fund Reserve Bonds, Series 1992A, 6.600%, 10/01/18 (Pre-refunded to 10/01/02) Aa 10/02 at 102 3,457,306 2,390,000 Michigan South Central Power Agency, Power Supply System Revenue Refunding Bonds, 1991 Series, 6.750%, 11/01/10 Baa1 11/01 at 102 2,519,825 410,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds (The Detroit Medical Center Obligated Group), Series 1988B, 8.125%, 8/15/08 A 8/98 at 102 437,253 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) Aaa 9/01 at 102 1,652,232 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) A 8/98 at 102 5,494,248 10,355,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Daughters of Charity National Health System-Providence Hospital), Series 1991, 7.000%, 11/01/21 Aa 11/01 at 102 11,202,867 8,800,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mercy Mount Clemens Corporation), Series 1992, 6.000%, 5/15/17 Aa 5/01 at 100 8,823,760 3,035,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (MidMichigan Obligated Group), Series 1992, 6.900%, 12/01/24 A 12/02 at 102 3,216,038 4,415,000 Michigan State Housing Development Authority, Single-Family Mortgage Revenue Bonds, 1991 Series B, 6.950%, 12/01/20 AA+ 12/01 at 102 4,640,253 2,440,000 Michigan State Housing Development Authority, Single-Family Mortgage Revenue Bonds, 1992 Series A, 6.875%, 6/01/23 AA+ 6/02 at 102 2,534,135 5,250,000 Michigan State Housing Development Authority, Limited Obligation Revenue Bonds (Parkway Meadows Project), Series 1991, 6.850%, 10/15/18 Aaa 10/02 at 103 5,544,893 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 8,720,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1991 Series B, 7.100%, 4/01/21 A+ 1/02 at 102 $ 9,160,360 1,570,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1991 Series A, 7.150%, 4/01/10 (Alternative Minimum Tax) A+ 1/02 at 102 1,654,545 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 Aaa 9/01 at 102 4,732,474 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 Aaa 12/01 at 102 8,391,540 4,095,000 State Building Authority, State of Michigan, 1991 Revenue Bonds, Series II, 6.800%, 10/01/21 AA- 10/01 at 102 4,449,709 4,800,000 State Building Authority, State of Michigan, 1991 Revenue Refunding Bonds, Series I, 6.250%, 10/01/20 AA- 10/01 at 102 4,964,400 7,200,000 State of Michigan, State Trunk Line Fund Bonds, Series 1989A, 7.000%, 8/15/17 (Pre-refunded to 8/15/99) AAA 8/99 at 102 7,823,808 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 Aaa 5/03 at 101 1/2 4,766,470 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 Aaa 1/05 at 101 1,229,196 6,680,000 Chippewa Valley Schools, County of Macomb, State of Michigan, 1993 Refunding Bonds (General Obligation-Unlimited Tax), 5.000%, 5/01/21 Aaa 5/03 at 102 5,984,345 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 Aaa 11/05 at 102 2,478,224 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 Aaa 5/06 at 102 1,987,300 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) Aaa 5/01 at 102 7,513,520 520,000 City of Detroit, County of Wayne, Michigan, Sewage Disposal System Revenue Bonds (1979 Series), 6.900%, 12/15/99 Aaa No Opt. Call 536,853 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 6,000,000 City of Detroit, Michigan, Water Supply System Revenue and Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/23 Aaa 7/04 at 102 $ 5,351,160 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) Aa 5/02 at 102 1,774,480 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 Aaa 5/05 at 102 3,107,687 4,500,000 Grand Ledge Public Schools, Counties of Eaton, Clinton and Ionia, State of Michigan, 1995 Refunding Bonds, 5.375%, 5/01/24 Aaa 5/05 at 102 4,283,550 3,000,000 Grand Rapids Community College, Community College Bonds, Series 1993 (General Obligation Limited Tax), 5.000%, 5/01/21 AA- 5/03 at 102 2,745,810 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 Aaa 5/04 at 101 1,343,365 1,000,000 Grosse Ile Township School District, School Improvement Refunding Bonds, General Obligation, Series 1996, 6.000%, 5/01/22 Aaa 5/07 at 100 1,024,890 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) Aaa 5/01 at 102 1,382,363 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 Aaa 5/05 at 101 2,014,380 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) Aa 5/02 at 102 3,458,608 1,000,000 Huron Valley School District, Counties of Oakland and Livingston, State of Michigan, 1996 School Building and Site Bonds (General Obligation- Unlimited Tax), 5.875%, 5/01/16 Aaa 5/07 at 100 1,017,610 3,725,000 Lake Orion Community School District, County of Oakland, State of Michigan, 1995 Refunding Bonds (General Obligation-Unlimited Tax), 5.500%, 5/01/20 Aaa 5/05 at 101 3,617,646 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,255,000 L'anse Creuse Public Schools, County of MaComb, State of Michigan, 1993 School Building and Site and Refunding Bonds (General Obligation- Unlimited Tax), 5.500%, 5/01/14 Aa 5/03 at 102 $ 2,209,314 2,000,000 Lincoln Park School District, General Obligation Bonds, Series 1996, 5.900%, 5/01/26 Aaa 5/06 at 101 2,028,520 1,500,000 Livonia Public Schools School District, County of Wayne, State of Michigan, 1995 Refunding Bonds, 5.125%, 5/01/22 Aaa 5/04 at 102 1,380,465 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) Aaa 5/01 at 102 1,102,220 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 Aa 5/02 at 102 6,676,800 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) Aaa 9/02 at 102 7,597,310 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) AA 5/02 at 102 2,384,458 1,225,000 North Branch Area Schools, County of Lapeer, State of Michigan, 1993 Refunding Bonds (General Obligation-Unlimited Tax), 5.375%, 5/01/21 Aaa 5/03 at 101 1/2 1,156,792 2,000,000 Board of Trustees of Oakland University, Michigan, General Revenue Bonds, Series 1995, 5.750%, 5/15/15 Aaa 5/05 at 102 2,022,240 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 Aaa 5/06 at 101 1,943,760 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) Aaa 5/02 at 101 1/2 1,645,305 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) Aa 5/01 at 101 5,096,261 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,805,000 Reeths-Puffer Schools, County of Muskegon, State of Michigan, 1995 School Building and Site and Refunding Bonds, 5.750%, 5/01/15 Aaa 5/05 at 101 $ 1,825,017 6,385,000 City of Royal Oak Hospital Finance Authority (Michigan), Hospital Revenue Bonds (William Beaumont Hospital), Series 1991D, 6.750%, 1/01/20 (Pre-refunded to 1/01/01) Aaa 1/01 at 102 7,008,623 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 A 9/04 at 102 5,354,064 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 Aaa 5/06 at 102 2,463,960 Regents of the University of Michigan, Medical Service Plan Revenue Bonds, Series 1991: 2,195,000 0.000%, 12/01/10 Aa No Opt. Call 1,037,664 9,250,000 6.500%, 12/01/21 Aa 12/01 at 102 9,783,540 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%, 5/0121 (Pre-refunded to 5/01/01) Aa 5/01 at 102 4,612,146 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 Aaa 3/02 at 101 5,543,947 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) Aaa 12/01 at 102 2,677,369 1,600,000 Board of Trustees of Western Michigan University, General Revenue Bonds, Series 1993A, 5.000%, 7/15/21 Aaa 7/03 at 102 1,434,736 1,895,000 Western Townships Utilities Authority, Sewage Disposal System Bonds, Series 1989, 8.300%, 1/01/19 BBB+ 1/99 at 102 2,056,491 Western Townships Utilities Authority, Sewage Disposal System Refunding Bonds, Series 1991: 1,500,000 6.750%, 1/01/15 Aaa 1/02 at 100 1,614,104 6,250,000 6.500%, 1/01/19 Aaa 1/02 at 100 6,658,062 2,725,000 Williamston Community School District, General Obligation-Unlimited Tax, Series 1996 (Q-SBLF), 5.500%, 5/01/25 Aaa No Opt. Call 2,711,211 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 5,000,000 City of Wyandotte, County of Wayne, State of Michigan, 1992 Electric Revenue Refunding Bonds, 6.250%, 10/01/17 Aaa 10/02 at 102 $ 5,220,450 1,500,000 School District of Ypsilanti, County of Washtenaw, State of Michigan, 1996 School Building and Site and Refunding Bonds (General Obligation- Unlimited Tax), 5.375%, 5/01/26 Aaa 5/07 at 100 1,431,884 1,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series X, 5.500%, 7/01/26 Baa1 7/05 at 100 948,430 - ------------------------------------------------------------------------------------------------------------------ $240,665,000 Total Investments - (cost $233,532,539) - 98.5% 249,464,887 =================------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.4% $ 1,000,000 Regents of The University of Michigan, Hospital ================ Revenue Bonds, Series 1995A, Adjustable Rate Demand Bonds, 3.650%, 12/01/27+ VMIG-1 1,000,000 - ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.1% 2,750,843 - ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $253,215,730 ================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 40 $133,249,481 54% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 17 79,851,511 32 PORTFOLIO OF A+ A1 2 10,814,905 4 INVESTMENTS A, A- A, A2, A3 8 20,024,244 8 (EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 3 5,524,746 2 TEMPORARY INVESTMENTS): - ------------------------------------------------------------------------------------------------------------------ TOTAL 70 $249,464,887 100% ================================================================================================================= * Ratings: Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. (NMP) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,250,000 Michigan Higher Education Student Loan Authority, Student Loan and Refunding Revenue Bonds, Series XV-A, 6.700%, 10/01/05 (Alternative Minimum Tax) A 10/02 at 102 $ 1,308,863 1,950,000 Michigan Municipal Bond Authority, State Revolving Fund Revenue Bonds, Series 1994, 7.000%, 10/01/03 Aa No Opt. Call 2,209,350 3,750,000 Michigan Public Power Agency, Belle River Project Refunding Revenue Bonds, 1993 Series A, 5.250%, 1/01/18 AA- 1/03 at 102 3,503,888 1,775,000 Michigan South Central Power Agency, Power Supply System Revenue Refunding Bonds, 1992 Series, 5.700%, 11/01/04 Aaa No Opt. Call 1,882,530 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 Aa 11/01 at 102 2,704,700 4,000,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds (Henry Ford Health System), Series 1992A, 5.750%, 9/01/17 Aa 9/02 at 102 3,968,800 3,000,000 Michigan State Hospital Finance Authority (Michigan), Hospital Revenue Refunding Bonds (St. John Hospital), Series 1993A, 6.000%, 5/15/13 Aaa 5/03 at 102 3,093,450 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 A 8/03 at 102 3,086,760 3,200,000 6.500%, 8/15/18 A 8/03 at 102 3,343,616 4,000,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds (Oakwood Hospital Obligated Group), Series 1993A, 5.500%, 11/01/13 Aaa 11/03 at 102 3,952,240 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 A No Opt. Call 1,517,970 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 AA- 1/05 at 102 2,080,020 5,250,000 Michigan State Housing Development Authority, Single Family Mortgage Revenue Bonds, 1995 Series A, 6.800%, 12/01/16 AA+ 6/05 at 102 5,495,280 2,400,000 Michigan State Housing Development Authority, Limited Obligation Revenue Bonds (Walled Lake Villa Project), Series 1993, 6.000%, 4/15/18 Aaa 4/04 at 103 2,416,128 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,500,000 Michigan State Housing Development Authority, Limited Obligation Revenue Bonds (Brenton Village Green Project), Series 1993, 5.625%, 10/15/18 Aaa 10/03 at 103 $ 1,453,290 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1992 Series A: 4,000,000 6.500%, 4/01/06 A+ 10/02 at 102 4,221,520 4,300,000 6.600%, 4/01/12 A+ 10/02 at 102 4,442,932 1,000,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1993 Series A, 5.875%, 10/01/17 Aaa 4/03 at 102 1,000,870 3,050,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) A1 12/02 at 102 3,292,963 8,500,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue Bonds (Consumers Power Company Project), Collateralized Series 1993B, 5.800%, 6/15/10 Aaa 6/03 at 102 8,766,985 1,000,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (WMX Technologies, Inc. Project), Series 1993, 6.000%, 12/01/13 (Alternative Minimum Tax) A1 12/03 at 102 1,019,030 1,000,000 State Building Authority, State of Michigan, 1991 Revenue Bonds, Series II, 6.250%, 10/01/20 AA- 10/01 at 102 1,034,250 2,750,000 State Building Authority, State of Michigan, 1991 Revenue Refunding Bonds, Series I, 6.250%, 10/01/20 AA- 10/01 at 102 2,844,188 3,275,000 State of Michigan, Comprehensive Transportation Bonds, Series 1992A, 5.750%, 5/15/12 AA- 5/02 at 100 3,291,703 2,500,000 State of Michigan, State Trunk Line Fund Bonds, Series 1989A, 7.000%, 8/15/17 (Pre-refunded to 8/15/99) AAA 8/99 at 102 2,716,600 1,750,000 State of Michigan, State Trunk Line Fund Bonds, Series 1994A, 5.700%, 11/15/15 AA- 11/04 at 102 1,757,000 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 Aaa 2/03 at 101 1/2 1,497,630 2,400,000 Chippewa Valley Schools, County of Macomb, State of Michigan, 1993 Refunding Bonds (General Obligation-Unlimited Tax), 5.000%, 5/01/21 Aaa 5/03 at 102 2,150,064 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 Aa 5/03 at 102 3,027,930 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 Aa 5/01 at 102 2,602,475 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 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 Aaa 9/03 at 102 $ 6,270,810 4,550,000 City of Detroit, Michigan, Sewage Disposal System Revenue and Revenue Refunding Bonds, Series 1993-A, 5.700%, 7/01/13 Aaa 7/03 at 102 4,584,489 4,500,000 City of Detroit, Michigan, Water Supply System Revenue and Revenue Refunding Bonds, Series 1993, 4.750%, 7/01/19 Aaa 7/04 at 102 3,878,415 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 Aa 5/03 at 102 2,747,670 2,000,000 Board of Control of Ferris State University, General Revenue Bonds, Series 1993, 6.250%, 10/01/19 Aaa 10/03 at 102 2,101,420 6,750,000 The City of Grand Haven, Michigan, Electric System Revenue Refunding Bonds, 1993 Series, 5.250%, 7/01/16 Aaa 7/03 at 102 6,339,195 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 Aaa 5/06 at 102 3,978,840 1,000,000 Kent Hospital Finance Authority (Michigan), Hospital Revenue Refunding Bonds (Butterworth Hospital), Series 1993A, 5.100%, 1/15/07 A1 No Opt. Call 985,790 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 Aa 7/01 at 100 1,880,580 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) Aaa No Opt. Call 6,519,180 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) Aaa 6/03 at 102 2,678,875 1,500,000 6.550%, 9/01/24 (Alternative Minimum Tax) Aaa 9/03 at 103 1,614,240 Mount Clemens Housing Corporation, Multifamily Housing Refunding Revenue Bonds, Series 1992A (FHA Insured Mortgage Loan-Section 8 Assisted Project): 1,000,000 6.660%, 6/01/13 AAA 6/03 at 102 1,045,460 1,500,000 6.600%, 6/01/22 AAA 6/03 at 102 1,549,260 1,130,000 Board of Trustees of Oakland University, Michigan, General Revenue Bonds, Series 1995, 5.750%, 5/15/15 Aaa 5/05 at 102 1,142,566 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 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 Aaa 5/05 at 101 $ 1,011,090 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 A 9/02 at 101 1/2 3,471,701 2,650,000 Regents of the University of Michigan, Hospital Revenue Bonds, Series 1990, 6.375%, 12/01/24 Aa 12/00 at 100 2,717,415 3,000,000 Regents of the University of Michigan, Hospital Revenue Refunding Bonds, Series 1993A, 5.500%, 12/01/21 Aa 12/02 at 102 2,876,370 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) Aaa No Opt. Call 1,001,050 1,000,000 4.800%, 12/01/03 (Alternative Minimum Tax) Aaa No Opt. Call 997,750 3,250,000 Board of Trustees of Western Michigan University, General Revenue Bonds, Series 1993A, 5.500%, 7/15/16 Aaa 7/03 at 102 3,116,945 1,000,000 Western Townships Utilities Authority, Sewage Disposal System Refunding Bonds, Series 1991, 6.500%, 1/01/10 Aaa 1/02 at 100 1,065,290 5,625,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds, Series 1993 (General Obligation Bonds), 5.375%, 7/01/06 Aaa No Opt. Call 5,895,730 1,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1995 (General Obligation Bonds), 5.750%, 7/01/24 Aaa 7/05 at 101 1/2 1,010,480 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 A 7/03 at 101 1/2 5,694,972 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) Baa3 6/03 at 102 1,020,730 - ------------------------------------------------------------------------------------------------------------------ $161,420,000 Total Investments - (cost $157,379,870) - 97.8% 162,879,338 =================------------------------------------------------------------------------------------------------- PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 1.4% $ 700,000 The Economic Development Corporation of the County of Delta Michigan, Environmental Improvement Revenue Refunding Bonds, 1985 Series D (Mead-Escanaba Paper Company Project), Variable Rate Demand Bonds, 3.600%, 12/01/23+ P-1 $ 700,000 200,000 Regents of The University of Michigan, Adjustable Rate Demand Hospital Revenue Refunding Bonds, Series 1992A, Variable Rate Demand Bonds, 3.650%, 12/01/19+ VMIG-1 200,000 1,400,000 Regents of The University of Michigan, Hospital Revenue Bonds, Series 1995A, Adjustable Rate Demand Bonds, 3.650%, 12/01/27+ VMIG-1 1,400,000 - ------------------------------------------------------------------------------------------------------------------ $ 2,300,000 Total Temporary Investment - 1.4% 2,300,000 =================------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.8% 1,304,671 - ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $166,484,009 ================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 29 $ 84,730,872 52% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, A3 16 44,741,619 27 PORTFOLIO OF A+ A1 5 13,962,235 9 INVESTMENTS A, A- A, A2, A3 6 18,423,882 11 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 1,020,730 1 TEMPORARY INVESTMENTS): - ----------------------------------------------------------------------------------------------------------------- TOTAL 57 $162,879,338 100% ================================================================================================================= * Ratings: Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC (NUO) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** 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 Baa1 4/01 at 102 $ 2,341,373 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 Aaa 6/02 at 103 4,652,640 2,000,000 Ohio Air Quality Development Authority, Air Quality Development Revenue Refunding Bonds (JMGFunding Limited Partnership Project), Series 1994, 6.375%, 1/01/29 (Alternative Minimum Tax) Aaa 10/04 at 102 2,099,840 240,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA Mortgage- Backed Securities Program), 1988 Series A, 8.250%, 2/01/16 (Alternative Minimum Tax) AAA 2/98 at 103 250,853 9,475,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA Mortgage- Backed Securities Program), 1989 Series A, 7.650%, 3/01/29 (Alternative Minimum Tax) AAA 9/99 at 102 10,002,000 500,000 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) AAA 12/00 at 100 530,295 1,000,000 Ohio Water Development Authority, State of Ohio, Water Development Revenue Bonds, 1995 Fresh Water Series, 5.900%, 12/01/21 Aaa 6/05 at 102 1,013,420 1,500,000 State of Ohio (OPFC), Higher Education Capital Facilities Bonds, Series II-1992A, 5.500%, 12/01/06 AA- 12/01 at 102 1,549,650 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 Aaa 12/03 at 102 2,656,224 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 AA 10/03 at 102 2,748,939 500,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational Facility Revenue Bonds (Kenyon College Project), 5.375%, 12/01/16 A+ 12/03 at 102 474,825 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 A 11/03 at 102 1,312,781 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 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 Aaa 12/04 at 102 $ 1,020,110 1,200,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational Facility Revenue Bonds (The University of Findlay 1996 Project), 6.125%, 9/01/16 N/R 9/06 at 101 1,179,792 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 Aa 10/02 at 102 1,007,530 3,000,000 State of Ohio Department of Transportation, Certificates of Participation (Richenbacker Port Authority Improvements), 6.125%, 4/15/15 (Alternative Minimum Tax) AA- 10/97 at 105 2,902,620 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 AA- 10/02 at 102 1,011,220 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 AA- 10/03 at 102 3,117,330 1,000,000 State of Ohio, Full Faith and Credit, General Obligation Infrastructure Improvement Bonds, Series 1992, 0.000%, 9/01/99 Aa No Opt. Call 895,690 4,000,000 State of Ohio, Ohio Air Quality Development Authority, Air Quality Development Revenue Refunding Bonds (JMGFunding, Limited Partnership Project), Series 1994, 6.375%, 4/01/29 (Alternative Minimum Tax) Aaa 10/04 at 102 4,199,680 1,575,000 The Ohio State University (AState University of Ohio), General Receipts Bonds, Series 1992 A1, 5.875%, 12/01/12 Aa2 12/02 at 102 1,592,577 500,000 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 Aaa 12/05 at 102 476,315 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) Aaa 3/01 at 102 1,645,155 2,000,000 County of Ashtabula, Ohio, Industrial Development Refunding Revenue Bonds, 1992 Series A (Ashland Oil, Inc. Project), 6.900%, 5/01/10 Baa1 5/02 at 102 2,120,100 2,000,000 City of Barberton, Ohio Hospital Facilities Revenue Bonds, Series 1992 (The Barberton Citizens Hospital Company Project), 7.250%, 1/01/12 A 1/02 at 102 2,242,800 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE Berea City School District, Ohio, School Improvement Bonds, Series 1993 (General Obligation Unlimited Tax Bonds): $ 650,000 7.500%, 12/15/06 Aaa 12/03 at 102 $ 758,745 680,000 7.450%, 12/15/07 Aaa 12/03 at 102 788,759 825,000 Bowling Green State University, Ohio, General Receipts Bonds, Series 1991, 6.700%, 6/01/07 A 6/01 at 102 886,760 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 Aaa 12/06 at 102 1,920,888 1,000,000 Buckeye Local School District General Obligation, 5.625%, 12/01/11 Aaa 12/03 at 102 1,019,430 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 Baa 1/02 at 102 1,065,870 445,000 City of Hamilton and County of Butler, Hospital Facilities Revenue Refunding, Fort Hamilton- Hughes Memorial Hospital Center, 7.250%, 1/01/01 Baa No Opt. Call 460,014 City of Cambridge, Ohio, Hospital Revenue Refunding Bonds, Series 1991 (Guernsey Memorial Hospital Project): 1,680,000 8.000%, 12/01/06 BBB 12/01 at 102 1,856,887 750,000 8.000%, 12/01/11 BBB 12/01 at 102 825,503 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) AAA 12/01 at 102 2,260,200 2,675,000 County of Clermont, Ohio, Hospital Facilities Revenue Refunding Bonds, Series 1993 A (Mercy Health System), 5.875%, 1/01/15 Aaa 1/03 at 102 2,718,817 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 Aaa 8/03 at 103 1,380,970 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) Aaa 12/01 at 102 2,777,825 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) Aaa 10/01 at 102 1,113,290 2,075,000 City of Cleveland, Ohio, Airport System Revenue Bonds, 1990 Series A, 7.400%, 1/01/20 (Alternative Minimum Tax) Aaa 1/00 at 102 2,257,123 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 3,000,000 City of Cleveland, Ohio, Public Power System Improvement First Mortgage Revenue Bonds, Series 1991B, 7.000%, 11/15/17 Aaa 11/01 at 102 $ 3,327,600 2,000,000 City of Cleveland, Ohio, Public Power System First Mortgage Revenue Bonds, Series 1994A, 7.000%, 11/15/24 (Pre-refunded to 11/15/04) Aaa 11/04 at 102 2,321,240 1,000,000 City of Cleveland, Ohio, Regional Sewer District, 6.750%, 4/01/07 (Pre-refunded to 5/15/04) Aaa 5/04 at 100 1,124,210 500,000 Cleveland State University (AState University of Ohio), General Receipts Bonds, Series 1993, 5.500%, 6/01/13 Aaa 6/03 at 102 500,455 City of Cleveland, Ohio, Waterworks Improvement First Mortgage Revenue Refunding Bonds, Series F, 1992B: 2,965,000 6.500%, 1/01/11 Aaa 1/02 at 102 3,210,532 3,720,000 6.250%, 1/01/16 Aaa 1/02 at 102 3,901,387 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) Aaa 1/02 at 102 1,738,154 1,000,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage Refunding Revenue Bonds, Series G, 1993, 5.500%, 1/01/21 Aaa No Opt. Call 995,340 7,335,000 City of Cleveland, Waterworks Improvement and Refunding Revenue Bonds, 1st Mortgage Series 1996-H, 5.750%, 1/01/26 Aaa 1/06 at 102 7,337,494 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) Aaa 1/02 at 102 38,626 2,000,000 City of Columbus, Ohio, General Obligation Refunding Bonds, Series 1992B, 6.500%, 1/01/10 Aaa 1/02 at 102 2,195,080 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) Aaa 12/02 at 102 2,188,544 Columbus Municipal Airport Authority, Airport Improvement Revenue Bonds, Series 1994A (Port Columbus International Airport Project): 830,000 5.950%, 1/01/08 (Alternative Minimum Tax) Aaa 1/04 at 102 862,636 1,000,000 6.000%, 1/01/14 (Alternative Minimum Tax) Aaa 1/04 at 102 1,023,490 2,500,000 City of Columbus, Ohio, Sewerage System Revenue Refunding Bonds, Series 1992, 6.250%, 6/01/08 AA- 6/02 at 102 2,658,925 1,500,000 County of Cuyahoga, Ohio, Hospital Improvement Revenue Bonds, Series 1992 (University Hospitals Health System, Inc. Project), 6.500%, 1/15/19 Aa 1/02 at 102 1,551,975 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 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 A1 2/03 at 102 $ 1,190,966 3,250,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia Health System), Series 1991, 7.000%, 8/15/23 A1 8/01 at 102 3,489,428 1,000,000 County of Cuyahoga, Ohio, Hospital Improvement and Refunding Revenue Bonds, Series 1997 (The MetroHealth System Project), 5.625%, 2/15/17 (WI) Aaa 2/07 at 102 991,670 3,200,000 City of Dayton, Ohio, Airport Revenue Refunding Bonds, Series 1992 (James M. Cox Dayton International Airport), 5.800%, 12/01/11 Aaa 12/02 at 101 1/2 3,271,808 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 Aaa 12/02 at 102 2,096,380 1,300,000 County of Franklin, Ohio, Refunding Bonds, Series 1993 (Limited Tax General Obligation Bonds), 5.375%, 12/01/20 Aaa 12/08 at 102 1,262,495 2,200,000 The Franklin County Convention Facilities Authority, Tax and Lease Revenue Anticipation Refunding Bonds, Series 1992, 5.850%, 12/01/19 Aaa 12/02 at 102 2,216,962 3,450,000 County of Franklin, Ohio, First Mortgage Revenue, Series 1979 (OCLC Inc Project), 7.500%, 6/01/09 Aaa No Opt. Call 3,873,281 1,365,000 County of Franklin, Ohio, Health Care Facilities Revenue Bonds, Series 1993 (Ohio Presbyterian Retirement Services), 6.500%, 7/01/23 N/R 7/03 at 102 1,304,681 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 Aa 11/02 at 102 1,619,565 3,000,000 County of Franklin, Ohio, Hospital Facilities Refunding Revenue Bonds, Series 1993A (Riverside United Methodist Hospital Project), 5.750%, 5/15/20 Aa 5/03 at 102 2,967,450 County of Franklin, Ohio, Hospital Refunding and Improvement Revenue Bonds, 196 Series A (The Children's Hospital Project): 1,000,000 5.750%, 11/01/20 Aa 11/06 at 101 989,050 1,500,000 5.875%, 11/01/25 Aa 11/06 at 101 1,499,835 990,000 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue Bonds, Series 1994A (FHA Insured Mortgage Loan-Hamilton Creek Apartments Project), 5.550%, 7/01/24 (Alternative Minimum Tax) Aa 1/05 at 103 927,858 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** 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 Aa 1/02 at 103 $ 6,370,220 500,000 County of Franklin, Ohio, Revenue Bonds, Series 1993 (Oclc Online Computer Library Center, Incorporated Project), 6.000%, 4/15/13 N/R 4/03 at 100 494,690 3,250,000 City of Garfield Heights, Ohio, Hospital Improvement and Refunding Revenue Bonds, Series 1992B (Marymount Hospital Project), 6.650%, 11/15/11 A 11/02 at 102 3,463,720 1,250,000 City of Hamilton, Ohio, Electric System Mortgage Revenue Bonds, 1992 Series B, 6.300%, 10/15/25 Aaa 10/02 at 102 1,321,238 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 AAA 6/01 at 102 1,105,370 2,700,000 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 Aaa 12/06 at 101 2,614,113 3,000,000 Kent State University (A State University of Ohio), General Receipts Bonds, Series 1992, 6.500%, 5/01/22 Aaa 5/02 at 102 3,253,710 1,500,000 Kent State University, General Receipts Bonds, Series 1996, 5.500%, 5/01/28 Aaa 11/06 at 102 1,459,515 1,000,000 City of Lakewood, Ohio, Various Purpose General Obligation Bonds, Series 1992 (Limited Tax Obligation), 6.500%, 12/01/12 Aa 12/02 at 102 1,089,200 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 Aaa 12/05 at 100 2,217,117 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 BBB- 11/03 at 102 1,001,220 2,500,000 County of Marion, Ohio, Hospital Refunding and Improvement Revenue Bonds, Series 1996 (The Community Hospital), 6.375%, 5/15/11 BBB+ 5/06 at 102 2,535,450 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) AAA 8/01 at 102 1,553,006 1,800,000 Montgomery County, Ohio, Sewer System Revenue Refunding Bonds, Greater Moraine Beavercreek Sewer District, Series 1993, 5.600%, 9/01/11 Aaa 9/02 at 102 1,823,742 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,500,000 County of Montgomery, Ohio, Hospital Facilities Revenue Refunding and Improvement Bonds, Series 1996 (Kettering Medical Center), 5.625%, 4/01/16 Aaa 4/06 at 102 $ 1,489,440 1,000,000 County of Montgomery, Ohio, Water Revenue Bonds, Greater Moraine-Beavercreek Sewer District Series 1992, 6.250%, 11/15/17 Aaa 11/02 at 102 1,053,690 2,500,000 City of Mount Vernon, Ohio, Hospital Refunding Revenue Bonds, Series 1986A (Knox Community Hospital), 7.875%, 6/01/12 N/R 6/02 at 100 2,577,300 1,000,000 City of Newark, Ohio, Water System Improvement Bonds (Limited Tax General Obligation), 6.000%, 12/01/18 Aaa 12/03 at 102 1,028,540 North Canton City School District, Ohio, School Improvement Bonds, Series 1994 (General Obligation Unlimited Tax): 650,000 9.750%, 12/01/03 Aaa No Opt. Call 838,559 715,000 9.700%, 12/01/04 Aaa No Opt. Call 939,832 2,000,000 Northeast Ohio Regional Sewer District, Wastewater Improvement Revenue Refunding Bonds, Series 1995, 5.600%, 11/15/16 Aaa 11/05 at 101 1,989,160 1,250,000 City of Oxford, Ohio, Water Supply System Mortgage Revenue, Series 1992 Refunding Bonds, 6.000%, 12/01/14 Aaa 12/02 at 102 1,295,263 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 Aaa 12/04 at 102 958,080 1,000,000 Revere Local School District, Ohio, School Improvement Bonds, Series 1993 (General Obligation Unlimited Tax Bonds), 6.000%, 12/01/16 Aaa 12/03 at 102 1,032,760 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 Aaa 12/02 at 102 1,526,896 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) N/R 12/01 at 102 1,128,380 2,000,000 Southwest Regional Water District (Ohio), Waterworks System Revenue Bonds, Series 1995, 6.000%, 12/01/20 Aaa 12/05 at 101 2,058,920 2,870,000 City of Strongsville, Ohio, Various Purpose Improvement Bonds, Series 1996 (General Obligation-Limited Tax), 5.950%, 12/01/21 Aa 12/06 at 102 2,924,702 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 3,895,000 The Student Loan Funding Corporation, Cincinnati, Ohio, Student Loan Subordinated Revenue Refunding Bonds, Series 1992 D, 6.600%, 7/01/05 (Alternative Minimum Tax) A 7/02 at 100 $ 4,014,692 1,700,000 The Student Loan Funding Corporation, Cincinnati, Ohio, Student Loan Senior Subordinated Revenue Bonds, Series 1993 A, 6.150%, 8/01/10 (Alternative Minimum Tax) A1 8/03 at 100 1,713,106 1,000,000 Sylvania City School District, General Obligation (Unlimited Tax), Series 1995, 5.800%, 12/01/15 Aaa 12/05 at 101 1,020,110 3,000,000 Toledo-Lucas County, Lodging Tax Convention Center, Series 1996, 5.700%, 10/01/15 Aaa 10/06 at 102 3,039,300 1,135,000 City of Toledo, Ohio, General Obligation (Limited Tax), Various Purpose Improvement Bonds, Series 1994, 7.000%, 12/01/03 Aaa No Opt. Call 1,291,300 750,000 County of Tuscarawas, Ohio, Hospital Facilities Revenue Bonds, Series 1993A (Union Hospital Project), 6.500%, 10/01/21 Baa 10/03 at 102 746,084 3,500,000 University of Cincinnati, General Receipts Bonds, Series D, 6.300%, 6/01/12 AA- 12/02 at 102 3,693,024 1,000,000 The University of Toledo (A State University of Ohio), General Receipts Bonds, Series 1992B, 5.900%, 6/01/20 Aaa 12/02 at 102 1,010,830 1,000,000 Upper Arlington City School District, General Obligation Bonds, Series 1996, 5.250%, 12/01/22 Aaa 12/06 at 101 951,770 1,000,000 City of Washington, Ohio, Water System Mortgage Revenue Bonds, Series 1993, 5.375%, 12/01/19 Aaa 12/03 at 101 947,100 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 Aaa 12/06 at 102 2,077,740 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 Aaa 12/05 at 100 3,083,490 1,820,000 Worthington City School District, Franklin County, Ohio, General Obligation Refunding Bonds (Unlimited Tax), 6.375%, 12/01/12 Aaa 6/02 at 102 1,962,378 1,500,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds, Series 1987 (General Obligation Bonds), 3.000%, 7/01/06 A 7/97 at 100 1,243,320 2,500,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1992 (General Obligation Bonds), 6.600%, 7/01/13 (Pre-refunded to 7/01/02) Aaa 7/02 at 101 1/2 2,792,150 2,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 (General Obligation Bonds), 5.400%, 7/01/25 A 7/06 at 101 1/2 1,890,460 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 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 A 7/03 at 101 1/2 $ 1,287,558 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 AA 1/02 at 103 1,095,240 - ------------------------------------------------------------------------------------------------------------------ $213,255,000 Total Investments - (cost $213,178,732) - 99.2% 222,815,442 =================------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.4% $ 800,000 Ohio Air Quality Development Authority, State of ================ Ohio, Air Quality Development Revenue Refunding Bonds (The Cincinnati Gas and Electric Company Project), 1995 Series B, Variable Rate Demand Bonds, 3.650%, 9/01/30+ VMIG-1 800,000 - ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 0.4% 1,089,815 - ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $224,705,257 ================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 70 $137,755,082 62% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 20 42,212,600 19 PORTFOLIO OF A+ A1 4 6,868,325 3 INVESTMENTS A, A- A, A2, A3 8 16,342,091 7 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 9 12,952,501 6 TEMPORARY Non-rated Non-rated 5 6,684,843 3 INVESTMENTS): - ----------------------------------------------------------------------------------------------------------------- TOTAL 116 $222,815,442 100% ================================================================================================================= * Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. (WI) Security purchased on a when-issued basis (note 1). ** Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND (NTX) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 4,490,000 Board of Regents of Texas Southern University, Consolidated Revenue Refunding Bonds, Series 1993-A, 5.750%, 8/01/18 Aaa 8/03 at 101 $ 4,459,872 4,900,000 Board of Regents of Texas Tech University, Revenue Financing System Refunding and Improvement Bonds, Third Series (1996), 5.375%, 2/15/17 Aaa 2/06 at 100 4,736,634 3,070,000 State of Texas, Veterans' Bonds, Series 1985, General Obligation Bonds, 8.300%, 12/01/16 (Pre-refunded to 12/01/99) AAA 12/99 at 100 3,405,183 4,595,000 State of Texas, Veterans' Housing Assistance Bonds, Series 1993, General Obligation Bonds, 6.800%, 12/01/23 (Alternative Minimum Tax) Aa 12/03 at 102 4,789,369 2,000,000 State of Texas, Veteran's Land Bonds, Series 1994, General Obligation Bonds, 6.400%, 12/01/24 (Alternative Minimum Tax) Aa 12/04 at 100 2,098,220 5,000,000 Texas Department of Housing and Community Affairs, Single Family Mortgage Revenue Bonds, 1996 Series E, 6.000%, 9/01/17 Aaa 9/06 at 102 5,007,950 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 Aaa 8/03 at 102 1,568,010 625,000 Texas Municipal Power Agency, Refunding Revenue Bonds, Series 1992, 5.750%, 9/01/12 (Pre-refunded to 9/01/02) Aaa 9/02 at 100 662,063 2,015,000 Texas Turnpike Authority, Dallas North Tollway Revenue Bonds, Series 1989, 6.000%, 1/01/20 A 1/98 at 100 2,017,277 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 Aaa 9/05 at 102 3,622,255 345,000 Abilene Housing Development Corporation, First Lien Revenue Bonds, Series 1978, 7.000%, 7/01/08 N/R No Opt. Call 343,661 Alamo Community College District, General Obligation Bonds, Series 1992: 1,000,000 5.000%, 2/15/10 Aa 2/00 at 100 965,150 1,000,000 5.000%, 2/15/11 Aa 2/00 at 100 958,590 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) Baa2 12/00 at 102 5,653,948 4,500,000 Amarillo Health Facilities Corporation Hospital Revenue Bonds (High Plains Baptist Hospital Project), Series 1992C, 6.500%, 1/01/07 Aaa 1/02 at 102 4,887,090 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 3,500,000 City of Austin, Texas, Combined Utility Systems Revenue Refunding Bonds, Series 1991, 6.750%, 5/15/12 (Pre-refunded to 5/15/01) A 5/01 at 102 $ 3,847,865 2,500,000 City of Austin, Texas, Combined Utility Systems Revenue Refunding Bonds, Series 1992, 5.750%, 11/15/16 Aaa 11/02 at 100 2,507,675 1,885,000 Baytown Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1992-A, 8.500%, 9/01/11 A1 9/02 at 103 2,096,610 1,000,000 The City of Beaumont, Texas, Public Improvement Bonds, Series 1992, 6.250%, 3/01/10 (Pre-refunded to 3/01/02) Aaa 3/02 at 100 1,077,980 1,000,000 Bexar Metropolitan Water District, Waterworks System Revenue Bonds, Series 1994, 5.000%, 5/01/19 (Pre-refunded to 5/01/15) Aaa 5/15 at 100 955,530 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) BBB+ 2/00 at 102 1,339,378 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) BBB+ 10/97 at 102 2,220,205 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) BBB+ 3/01 at 102 2,192,060 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) Aaa 12/02 at 102 1,606,200 5,500,000 Brazos River Authority (Texas), Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1988D, 7.750%, 10/01/15 A2 10/98 at 102 5,848,040 1,200,000 Brazos River Authority (Texas), Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1993, 5.600%, 12/01/17 Aaa 12/03 at 102 1,168,968 2,300,000 Brazos Higher Education Authority, Inc., Student Loan Revenue Refunding Bonds, Series 1992-A, 6.875%, 9/01/04 (Alternative Minimum Tax) A 3/02 at 102 2,485,081 1,055,000 Brazos Higher Education Authority, Inc., Student Loan Revenue Refunding Bonds, Series 1992C-1, 6.650%, 11/01/04 (Alternative Minimum Tax) Aa No Opt. Call 1,129,367 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 250,000 Brazos Higher Education Authority, Inc. Student Loan Revenue Refunding Bonds, Subordinate Series 1993A-2, 6.800%, 12/01/04 (Alternative Minimum Tax) A No Opt. Call $ 272,258 2,000,000 City of Brownsville, Texas, General Obligation Refunding Bonds, Series 1991, 6.750%, 2/15/12 (Pre-refunded to 2/15/01) Aaa 2/01 at 100 2,170,980 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) Aaa 9/00 at 102 3,808,875 4,035,000 City of Bryan, Texas (Brazos County), Lease Revenue Bonds (Blinn College Project), Series 1995, 5.300%, 10/01/16 Aaa 10/05 at 100 3,847,574 2,500,000 Burleson Independent School District (Johnson and Tarrant Counties, Texas), Unlimited Tax Refunding Bonds, Series 1995, 5.375%, 8/01/19 Aaa 8/06 at 100 2,399,225 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 AAA 2/05 at 100 1,053,220 4,130,000 Coppell Independent School District (Dallas County, Texas), Unlimited Tax School Building and Refunding Bonds, Series 1992, 0.000%, 8/15/14 Aaa 8/09 at 75 10/32 1,474,369 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) Aaa 3/02 at 100 2,168,214 1,475,000 6.700%, 3/01/08 Aaa 3/02 at 100 1,587,277 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) Aaa 5/02 at 102 5,325,316 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 AAA 1/02 at 100 1,546,830 1,000,000 City of Dallas, Texas (Dallas County), Civic Center Convention Complex, Senior Lien Revenue Bonds, 1985 Series, 8.000%, 1/01/09 A 7/97 at 100 1,015,930 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 Aa 4/02 at 101 1/2 1,838,637 1,645,000 El Paso Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1991A, 8.750%, 10/01/11 A 4/01 at 103 1,836,741 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,800,000 City of Ennis, Texas (Ennis County), General Obligation Refunding and Improvement Bonds, Series 1992, 6.500%, 8/01/13 Aaa 8/02 at 100 $ 3,001,880 1,185,000 Fort Bend County Levee Improvement District No. 11 (APolitical Subdivision of the State of Texas, located within Fort Bend County), Unlimited Tax Levee Improvement Bonds, Series 1994, 6.900%, 9/01/17 Aaa 9/04 at 100 1,311,807 1,450,000 Industrial Development Corporation of The City of Galveston, Sales Tax Revenue Bonds, Series 1995, 5.750%, 9/01/15 Aaa 9/05 at 100 1,458,207 1,120,000 City of Galveston Property Finance Authority, Inc., Single Family Mortgage Revenue Bonds, Series 1991A, 8.500%, 9/01/11 A 9/01 at 103 1,214,461 1,000,000 City of Georgetown Higher Eduction, Finance Corporation, Higher Education Revenue Bonds, Series 1994 (Southwestern University Project), 6.300%, 2/15/14 A1 2/04 at 100 1,029,980 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) AA- 4/06 at 102 3,146,910 2,000,000 Harris County, Texas, Toll Road Unlimited Tax and Subordinate Lien, Revenue Refunding Bonds, Series 1992A, 6.500%, 8/15/15 Aa 8/02 at 102 2,150,580 3,500,000 Harris County, Texas, Toll Road Senior Lien, Revenue Refunding Bonds, Series 1994, 5.375%, 8/15/20 Aaa 8/04 at 102 3,312,330 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) Aaa 8/02 at 102 1,979,218 320,000 6.500%, 8/15/17 Aaa 8/02 at 102 348,077 Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds, Series 1992B: 1,680,000 6.625%, 8/15/17 (Pre-refunded to 8/15/97) Aaa 8/97 at 102 1,740,967 320,000 6.625%, 8/15/17 Aaa 8/97 at 102 331,190 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) Aaa 10/99 at 102 4,355,840 6,110,000 Harris County Health Facilities Development Corporation (Texas), Hospital Revenue Bonds (Memorial Hospital System Project), Series 1992, 7.125%, 6/01/15 A2 6/02 at 102 6,611,631 3,070,000 The Harrison County Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1991, 8.875%, 12/01/11 A 12/01 at 103 3,244,929 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,000,000 City of Houston, Texas, Airport System Subordinate Lien, Revenue Bonds, 8.000%, 7/01/08 (Alternative Minimum Tax) A 7/98 at 102 1/2 $ 1,064,000 5,000,000 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, Series 1991A, 6.750%, 7/01/21 (Alternative Minimum Tax) Aaa 7/01 at 102 5,341,850 1,760,000 Houston Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1993A, 5.950%, 12/01/10 Aaa 6/03 at 102 1,787,069 4,000,000 City of Houston, Texas, Water and Sewer System, Junior Lien Revenue Refunding Bonds, Series 1991C, 6.375%, 12/01/17 Aaa 12/01 at 102 4,230,560 1,000,000 City of Houston, Texas, Water and Sewer System, Prior Lien Revenue Refunding Bonds, Series 1992B, 6.375%, 12/01/14 A 12/02 at 102 1,048,830 800,000 City of Laredo, Texas (Webb County), Combination Tax and Waterworks System, Revenue Certificates of Obligation, Series 1994, 5.625%, 8/15/11 Aaa 8/04 at 100 810,760 1,125,000 City of Laredo, Texas (Webb County), International Toll Bridge System, Revenue Bonds, Series 1996, 5.700%, 10/01/10 Aaa 10/06 at 100 1,156,118 1,850,000 Lubbock Health Facilities Development Corporation, Hospital Revenue Bonds (Methodist Hospital, Lubbock, Texas Project), 5.500%, 12/01/14 Aaa 12/03 at 102 1,753,264 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 A- 7/03 at 102 1,503,150 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) A 2/98 at 102 1,887,588 5,750,000 Midland County Hospital District, Hospital Revenue Bonds, Series 1992, 0.000%, 6/01/11 BBB No Opt. Call 2,332,143 1,000,000 North Central Texas Health Facilities Development Corporation, Hospital Revenue Bonds (Presbyterian Healthcare System Project), Series 1996-A, 5.750%, 6/01/26 Aaa 6/06 at 102 986,650 2,500,000 North Texas Higher Educational Authority, Inc. Student Loan Revenue Bonds, Series 1993C, 6.100%, 4/01/08 (Alternative Minimum Tax) Aa 4/03 at 102 2,519,725 1,500,000 North Texas Municipal Water District, Regional Solid Waste Disposal System, Refunding and Improvement Revenue Bonds, Series 1993, 5.250%, 9/01/12 Aaa 9/03 at 100 1,471,005 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,085,000 Port Arthur Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1992, 8.700%, 3/01/12 A 9/02 at 103 $ 1,190,516 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) A+ 4/02 at 102 4,804,380 2,000,000 City of San Antonio, Texas, Electric and Gas Systems Revenue Refunding Bonds, New Series 1992, 5.000%, 2/01/17 Aa1 2/02 at 101 1,813,160 4,580,000 City of San Antonio, Texas, Hotel Occupancy Tax Revenue Bonds (Henry B Gonzalez Convention Center Project), 5.700%, 8/15/26 Aaa 8/06 at 102 4,512,308 4,500,000 City of San Antonio, Texas, Water System Revenue Refunding Bonds, Series 1992, 6.500%, 5/15/10 Aaa 5/02 at 102 4,882,500 1,825,000 Socorro Independent School District (El Pasco, County, Texas), Unlimited Tax School Building Bonds, Series 1996, 5.750%, 2/15/21 Aaa 2/06 at 100 1,821,405 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) Aaa 3/01 at 100 2,622,400 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 AAA 3/03 at 101 1/2 2,494,600 5,400,000 Travis County Health Facilities Development Corporation, Hospital Revenue Bonds (Daughters of Charity National Health System - Daughters of Charity Health Services of Austin), Series 1993B, 6.000%, 11/15/22 Aa 11/03 at 102 5,441,418 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 AAA 12/01 at 103 3,522,204 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 Aaa 8/04 at 100 1,483,017 2,000,000 Board of Regents of The University of Houston System, Consolidated Revenue Bonds, Series 1995, 6.000%, 2/15/17 Aaa 2/05 at 100 2,049,200 1,850,000 Victoria Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11 Aaa No Opt. Call 1,993,097 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,500,000 City of Weatherford, Texas (Parker County), Utility System Revenue Bonds, Series 1994, 5.700%, 9/01/13 Aaa 9/04 at 100 $ 1,513,230 1,225,000 Weslaco Independent School District Permanent School Fund Guarantee, Series 1996 General Obligation Refunding Bonds, 5.700%, 2/15/15 Aaa 2/06 at 100 1,233,991 - ------------------------------------------------------------------------------------------------------------------ $206,910,000 Total Investments - (cost $198,126,735) - 98.1% 208,503,822 =================------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.3% $ 600,000 Harris County Health Facilities Development ================= Corporation, Hospital Revenue Bonds (The Methodist Hospital), Series 1994, Variable Rate Demand Bonds, 3.650%, 12/01/25+ A-1+ 600,000 - ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.6% 3,340,719 - ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $212,444,541 ================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 51 $124,552,034 60% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 11 26,851,126 13 PORTFOLIO OF A+ A1 3 7,930,970 4 INVESTMENTS A, A- A, A2, A3 15 35,088,297 16 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 5 13,737,734 6 TEMPORARY Non-rated Non-rated 1 343,661 1 INVESTMENTS): - ---------------------------------------------------------------------------------------------------------------- TOTAL 86 $208,503,822 100% ================================================================================================================ * Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. ** Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
STATEMENT OF NET ASSETS (Unaudited) NAZ NUM NMP NUO ASSETS Investments in municipal securities, at market value (note 1) $ 92,087,369 $249,464,887 $162,879,338 $222,815,442 Temporary investments in short-term municipal securities, at amortized cost (note 1) 400,000 1,000,000 2,300,000 800,000 Cash 160,185 -- -- 234,669 Receivables: Interest 691,108 3,932,443 2,131,335 2,788,370 Investments sold 35,000 -- -- 5,000 Other assets 2,643 5,708 3,913 11,362 ------------ ------------ ------------ ------------ Total assets 93,376,305 254,403,038 167,314,586 226,654,843 ------------ ------------ ------------ ------------ LIABILITIES Cash overdraft -- 79,720 144,508 -- Payable for investments purchased -- -- -- 986,001 Accrued expenses: Management fees (note 6) 51,267 138,220 91,311 122,814 Other 38,834 67,854 78,253 86,486 Preferred share dividends payable 2,465 7,342 9,778 12,185 Common share dividends payable 288,937 894,172 506,727 742,100 ------------ ------------ ------------ ------------ Total liabilities 381,503 1,187,308 830,577 1,949,586 ------------ ------------ ------------ ------------ Net assets (note 7) $ 92,994,802 $253,215,730 $166,484,009 $224,705,257 ============ ============ ============ ============ 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 11,247,450 7,677,686 9,276,249 ============ ============ ============ ============ Netasset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 14.72 $ 15.40 $ 14.39 $ 15.92 ============ ============ ============ ============ See accompanying notes to financial statements. NTX ASSETS Investments in municipal securities, at market value (note 1) $208,503,822 Temporary investments in short-term municipal securities, at amortized cost (note 1) 600,000 Cash 357,507 Receivables: Interest 3,878,071 Investments sold 15,438 Other assets 7,198 ------------ Total assets 213,362,036 ------------ LIABILITIES Cash overdraft -- Payable for investments purchased -- Accrued expenses: Management fees (note 6) 116,140 Other 56,738 Preferred share dividends payable 12,007 Common share dividends payable 732,610 ------------ Total liabilities 917,495 ------------ Net assets (note 7) $212,444,541 ============ Preferred shares, at liquidation value $ 69,000,000 ============ Preferred shares outstanding 2,760 ============ Common shares outstanding 9,392,432 ============ Netasset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 15.27 ============ See accompanying notes to financial statements.
STATEMENT OF OPERATIONS Six months ended January 31, 1997 (Unaudited) NAZ NUM NMP NUO INVESTMENT INCOME Tax-exempt interest income (note 1) $ 2,662,448 $ 7,683,994 $ 4,739,277 $ 6,652,273 ----------- ----------- ----------- ----------- Expenses: Management fees (note 6) 304,047 821,244 541,965 728,005 Preferred shares--auction fees 37,499 99,999 70,000 96,249 Preferred shares--dividend disbursing agent fees 7,500 7,500 13,333 22,500 Shareholders' servicing agent fees and expenses 3,738 17,504 12,068 18,713 Custodian's fees and expenses 19,956 27,919 23,116 26,978 Directors'/Trustees' fees and expenses (note 6) 704 1,228 943 1,131 Professional fees 8,766 9,253 7,159 8,526 Shareholders' reports--printing and mailing expenses 5,507 30,362 22,723 26,734 Stock exchange listing fees 8,121 12,280 12,975 16,433 Investor relations expense 3,156 9,681 6,653 8,999 Other expenses 6,155 9,922 10,590 10,108 ----------- ----------- ----------- ----------- Total expenses 405,149 1,046,892 721,525 964,376 ----------- ----------- ----------- ----------- Net investment income 2,257,299 6,637,102 4,017,752 5,687,897 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (notes 1 and 3) 5,523 177,697 (15,513) 77,444 Net change in unrealized appreciation or depreciation of investments 849,572 1,532,044 1,746,138 2,032,193 ----------- ----------- ----------- ----------- Net gain from investments 855,095 1,709,741 1,730,625 2,109,637 ----------- ----------- ----------- ----------- Net increase in net assets from operations $ 3,112,394 $ 8,346,843 $ 5,748,377 $ 7,797,534 =========== =========== =========== =========== See accompanying notes to financial statements. NTX INVESTMENT INCOME Tax-exempt interest income (note 1) $ 6,500,896 ----------- Expenses: Management fees (note 6) 689,310 Preferred shares--auction fees 86,250 Preferred shares--dividend disbursing agent fees 15,000 Shareholders' servicing agent fees and expenses 8,338 Custodian's fees and expenses 26,008 Directors'/Trustees' fees and expenses (note 6) 1,094 Professional fees 8,320 Shareholders' reports--printing and mailing expenses 21,168 Stock exchange listing fees 12,053 Investor relations expense 6,797 Other expenses 9,945 ----------- Total expenses 884,283 ----------- Net investment income 5,616,613 ----------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (notes 1 and 3) (134,321) Net change in unrealized appreciation or depreciation of investments 2,139,865 ----------- Net gain from investments 2,005,544 ----------- Net increase in net assets from operations $ 7,622,157 =========== See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited) NAZ NUM Six months ended Year ended Six months ended Year ended 1/31/97 7/31/96 1/31/97 7/31/96 OPERATIONS Net investment income $ 2,257,299 $ 4,505,540 $ 6,637,102 $ 13,315,397 Net realized gain (loss) from investment transactions (notes 1 and 3) 5,523 54,640 177,697 208,789 Net change in unrealized appreciation or depreciation of investments 849,572 1,535,012 1,532,044 2,733,144 ------------- ------------- ------------- ------------- Net increase in net assets from operations 3,112,394 6,095,192 8,346,843 16,257,330 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (1,733,626) (3,403,044) (5,370,455) (10,639,239) Preferred shareholders (478,557) (1,031,544) (1,331,387) (2,634,651) From accumulated net realized gains from investment transactions: Common shareholders -- -- (270,793) (756,492) Preferred shareholders -- -- (65,600) (208,288) In excess of net realized gains: Common shareholders -- -- -- -- Preferred shareholders -- -- -- -- ------------- ------------- ------------- ------------- Decrease in net assets from distributions to shareholders (2,212,183) (4,434,588) (7,038,235) (14,238,670) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 874,134 1,107,040 ------------- ------------- ------------- ------------- Net increase in net assets derived from capital share transactions -- -- 874,134 1,107,040 ------------- ------------- ------------- ------------- Net increase in net assets 900,211 1,660,604 2,182,742 3,125,700 Net assets at beginning of period 92,094,591 90,433,987 251,032,988 247,907,288 ------------- ------------- ------------- ------------- Net assets at end of period $ 92,994,802 $ 92,094,591 $ 253,215,730 $ 251,032,988 ============= ============= ============= ============= Balance of undistributed net investment income at end of period $ 246,311 $ 201,195 $ 528,063 $ 592,803 ============= ============= ============= ============= See accompanying notes to financial statements.
NMP NUO Six months ended Year ended Six months ended Year ended 1/31/97 7/31/96 1/31/97 7/31/96 OPERATIONS Net investment income $ 4,017,752 $ 8,038,253 $ 5,687,897 $ 11,313,562 Net realized gain (loss) from investment transactions (notes 1 and 3) (15,513) (8,455) 77,444 (201,089) Net change in unrealized appreciation or depreciation of investments 1,746,138 3,077,375 2,032,193 3,376,371 ------------- ------------- ------------- ------------- Net increase in net assets from operations 5,748,377 11,107,173 7,797,534 14,488,844 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (3,040,365) (5,919,781) (4,448,277) (8,787,207) Preferred shareholders (911,740) (1,913,660) (1,242,393) (2,468,189) 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 (3,952,105) (7,833,441) (5,690,670) (11,255,396) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 447,583 582,118 ------------- ------------- ------------- ------------- Net increase in net assets derived from capital share transactions -- -- 447,583 582,118 ------------- ------------- ------------- ------------- Net increase in net assets 1,796,272 3,273,732 2,554,447 3,815,566 Net assets at beginning of period 164,687,737 161,414,005 222,150,810 218,335,244 ------------- ------------- ------------- ------------- Net assets at end of period $ 166,484,009 $ 164,687,737 $ 224,705,257 $ 222,150,810 ============= ============= ============= ============= Balance of undistributed net investment income at end of period $ 470,493 $ 404,846 $ 674,589 $ 677,362 ============= ============= ============= ============= See accompanying notes to financial statements. NTX Six months ended Year ended 1/31/97 7/31/96 OPERATIONS Net investment income $ 5,616,613 $ 11,325,508 Net realized gain (loss) from investment transactions (notes 1 and 3) (134,321) (107,896) Net change in unrealized appreciation or depreciation of investments 2,139,865 1,979,168 ------------- ------------- Net increase in net assets from operations 7,622,157 13,196,780 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (4,395,658) (8,899,833) Preferred shareholders (1,204,776) (2,485,682) 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 (5,600,434) (11,836,851) ------------- ------------- CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 138,670 ------------- ------------- Net increase in net assets derived from capital share transactions -- 138,670 ------------- ------------- Net increase in net assets 2,021,723 1,498,599 Net assets at beginning of period 210,422,818 208,924,219 ------------- ------------- Net assets at end of period $ 212,444,541 $ 210,422,818 ============= ============= Balance of undistributed net investment income at end of period $ 307,904 $ 291,725 ============= ============= See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES At January 31, 1997, 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. 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 January 31, 1997, NUO had an outstanding purchase commitment of $986,001. 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 income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gain and market discount distributions are subject to federal taxation. Dividends and Tax-exempt net investment income is declared as a Distributions to dividend monthly and payment is made or reinvestment Shareholders is credited to shareholder accounts after month-end. Net realized capital gains and/or market discount from investment transactions are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryovers. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. Accordingly, temporary over-distributions as a result of these differences may occur and will be classified as either distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in one or more Series. The dividend rate on each Series may change every seven days, as set by the Auction Agent. The number of shares outstanding, by Series and in total, for each Fund, at January 31, 1997, 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 The Funds may engage in transactions in certain Instruments derivative financial instruments including futures, forward, swap, and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the six months ended January 31, 1997. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. 2. FUND SHARES Transactions in Common shares were as follows:
NAZ NUM Six months ended Year ended Six months ended Year ended 1/31/97 7/31/96 1/31/97 7/31/96 Shares issued to shareholders due to reinvestment of distributions -- -- 55,759 70,927 ------ ------ ------ ------ Net increase -- -- 55,759 70,927 ====== ====== ====== ====== NMP NUO Six months ended Year ended Six months ended Year ended 1/31/97 7/31/96 1/31/97 7/31/96 Shares issued to shareholders due to reinvestment of distributions -- -- 27,595 31,404 ------ ------ ------ ------ Net increase -- -- 27,595 31,404 ====== ====== ====== ====== NTX Six months ended Year ended 1/31/97 7/31/96 Shares issued to shareholders due to reinvestment of distributions -- 6,593 ------ ------ Net increase -- 6,593 ====== ======
3. SECURITIES TRANSACTIONS Purchase and sales (including maturities) of investments in municipal securities and temporary municipal investments during the six months ended January 31, 1997, were as follows:
NAZ NUM NMP NUO PURCHASES Investments in municipal securities $4,533,500 $12,964,746 $ -- $16,464,885 Temporary municipal investments 5,100,000 5,700,000 2,300,000 5,700,000 SALES AND MATURITIES Investments in municipal securities 4,519,485 12,442,785 1,497,600 14,300,494 Temporary municipal investments 4,900,000 8,600,000 500,000 6,000,000 ========== =========== ========== =========== NTX PURCHASES Investments in municipal securities $19,544,515 Temporary municipal investments 8,300,000 SALES AND MATURITIES Investments in municipal securities 20,042,407 Temporary municipal investments 8,000,000 ===========
At January 31, 1997, 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 Funds' last fiscal year end, the following Funds had unused capital loss carryovers available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryovers will expire as follows:
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 February 3, 1997, the Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid March 3, 1997, to shareholders of record on February 15, 1997, as follows:
NAZ NUM NMP NUO Dividend per share $.0690 $.0795 $.0670 $.0800 ====== ====== ====== ====== NTX Dividend per share $.0780 ======
5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at January 31, 1997, were as follows:
NAZ NUM NMP NUO Gross unrealized: Appreciation $4,984,981 $15,967,266 $5,758,042 $9,983,769 Depreciation (23,760) (34,918) (258,574) (347,059) ---------- ------------ ---------- ---------- Net unrealized appreciation $4,961,221 $15,932,348 $5,499,468 $9,636,710 =========== =========== =========== =========== NTX Gross unrealized: Appreciation $10,579,119 Depreciation (202,032) ----------- Net unrealized appreciation $10,377,087 ============
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 January 31, 1997, 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 42,806 112,475 76,777 92,762 Paid-in surplus 59,162,933 156,594,179 107,234,590 139,685,085 Balance of undistributed net investment income 246,311 528,063 470,493 674,589 Accumulated net realized gain (loss) from investment transactions (1,418,469) 48,665 (2,797,319) (2,383,889) In excess of net realized gains -- -- -- -- Net unrealized appreciation of investments 4,961,221 15,932,348 5,499,468 9,636,710 ------------- ------------- ------------- ------------- Net assets $ 92,994,802 $ 253,215,730 $ 166,484,009 $ 224,705,257 ============= ============= ============= ============= 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 133,003,155 Balance of undistributed net investment income 307,904 Accumulated net realized gain (loss) from investment transactions (242,216) In excess of net realized gains (95,313) Net unrealized appreciation of investments 10,377,087 ------------ Net assets $212,444,541 ============ Authorized shares: Common Unlimited Preferred Unlimited ============
8. INVESTMENT COMPOSITION Each Fund invests in municipal securities which include general obligation, escrowed and revenue bonds. At January 31, 1997, the revenue sources by municipal purpose for these investments, expressed as a percent of total investments, were as follows: C NAZ NUM NMP NUO Revenue Bonds: Health Care Facilities 11% 15% 21% 17% Pollution Control Facilities 6 8 15 7 Housing Facilities 5 12 13 8 Water / Sewer Facilities 12 4 8 13 Educational Facilities 4 3 5 13 Electric Utilities 5 3 8 2 Transportation 6 1 1 3 Lease Rental Facilities 5 4 2 4 Other 6 4 7 2 General Obligation Bonds 22 27 18 19 Escrowed Bonds 18 19 2 12 --- --- --- --- 100% 100% 100% 100% === === === ===
NTX Revenue Bonds: Health Care Facilities 13% Pollution Control Facilities 17 Housing Facilities 11 Water / Sewer Facilities 6 Educational Facilities 11 Electric Utilities 3 Transportation 6 Lease Rental Facilities 2 Other 4 General Obligation Bonds 13 Escrowed Bonds 14 --- 100% ===
Certain long-term and intermediate-term investments owned by the Funds are either covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest in the event of default (63% for NAZ, 62% for NUM, 50% for NMP, 56% for NUO and 53% 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, 100% for NUM, 91% 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 (Unaudited) SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS: Dividends from tax-exempt Operating performance net investment income Net realized & Net asset Net unrealized value invest- gain (loss) To To beginning ment from invest- Common Preferred of period income ments shareholders shareholders+ NAZ Six months ended 1/31/97 $14.510 $ .528 $ .199 $ (.405) $(.112) 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 Six months ended 1/31/97 15.280 .590 .158 (.477) (.119) 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 Six months ended 1/31/97 14.160 .524 .221 (.396) (.119) 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 Per Organization Common and offering share costs and market To To Preferred share Net asset value Common Preferred underwriting value end end of shareholders shareholders+ discounts of period period NAZ Six months ended 1/31/97 $ -- $ -- $ -- $14.720 $14.125 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 Six months ended 1/31/97 (.026) (.006) -- 15.400 15.625 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 Six months ended 1/31/97 -- -- -- 14.390 12.750 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 Total invest- Ratio of ment net return Total Net assets Ratio of investment on return on end of expenses income Portfolio market net asset period (in to average to average turnover value** value** thousands) net assets++ net assets++ rate NAZ Six months ended 1/31/97 4.81% 4.27% $ 92,995 .87%* 4.82%* 5% 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 Six months ended 1/31/97 4.07 4.10 253,216 .82* 5.20* 5 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 Six months ended 1/31/97 2.08 4.45 166,484 .86* 4.79* -- 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 70. FINANCIAL HIGHLIGHTS (Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS: Dividends from tax-exempt Operating performance net investment income Net realized & Net asset Net unrealized value invest- gain (loss) To To beginning ment from invest- Common Preferred of period income ments shareholders shareholders+ NUO Six months ended 1/31/97 $15.690 $ .613 $ .231 $ (.480) $(.134) 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 Six months ended 1/31/97 15.060 .598 .208 (.468) (.128) 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 Per Organization Common and offering share costs and market To To Preferred share Net asset value Common Preferred underwriting value end end of shareholders shareholders+ discounts of period period NUO Six months ended 1/31/97 $ -- $ -- $ -- $15.920 $16.500 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 Six months ended 1/31/97 -- -- -- 15.270 15.000 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 Total invest- Ratio of ment net return Total Net assets Ratio of investment on return on end of expenses income Portfolio market net asset period (in to average to average turnover value** value** thousands) net assets++ net assets++ rate NUO Six months ended 1/31/97 6.20% 4.56% $224,705 .85%* 5.03%* 6% 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 Six months ended 1/31/97 4.04 4.54 212,445 .83* 5.25* 9 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. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders. +++ The amounts shown include distributions in excess of capital gains of $.008 for Common shareholders and $.002 for Preferred shareholders.
Your investment partner Photographic image of John Nuveen Sr., founder of Nuveen. For nearly 100 years, Nuveen has earned its reputation as a tax-free income specialist. 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 FSA-1-1.97 -----END PRIVACY-ENHANCED MESSAGE-----