Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
ANNUAL REPORT/OCTOBER 31, 1995
Photographic image of man seated at breakfast table with wife standing behind
him.
<PAGE>
Photographic image of Nuveen Research Department. Four people around a table
working.
Research: a foundation
Your financial plan is in place. You and your adviser have made asset
allocation decisions. For the tax-free portion of your portfolio, you want
dependable income, safety of principal, and diversification. Solid, reliable
Nuveen research helps to keep your tax-free investments on the path you have
chosen.
Paul Williams, Vice President and Manager of Investment Strategies and
Research, emphasizes fundamental research as a strategy for finding value.
<PAGE>
The strength of Nuveen's Research Department is illustrated by the numerous
awards and press coverage we receive. Annual industry polls consistently
recognize the quality and depth of Nuveen Research.
Photographic image of a grouping of awards/statuettes.
At Nuveen, we believe that attention to detail combined with years of
experience is the foundation for sound research. Sound research means finding
quality bonds that deliver timely and dependable income over many decades.
Beyond this, it means adding value by identifying bonds whose credit strengths
are not yet understood by the market.
USING RESEARCH TO TRACK QUALITY AND VALUE
With tens of thousands of bonds available for investment today, the municipal
market is one of the nation's largest--and most complex--securities markets.
At the same time, the number of analysts devoted to researching the municipal
market is comparatively small. While more than 12,000 analysts at nearly 2,000
firms and investment organizations research the 7,500 common stocks available
in the equity market, approximately 1,000 analysts at 400 firms and rating
agencies cover 60,000 municipal bond issues.
Selecting those bonds that will outperform the market and help you achieve
your investment goals depends upon an ability to analyze and understand
complexities ranging from the demand for a new highway or airport to the
impact of an industry closure on the financial position of a town's water and
sewer system.
At Nuveen, we can provide this depth because we have the largest research
staff in the investment banking industry devoted exclusively to the analysis
of municipal bonds. Our award-winning team of more than 30 research
professionals provides invaluable support to our portfolio managers, assisting
them in careful analysis of bond issues considered for purchase--even those
rated AAA.
On a daily basis, our research analysts prepare credit reviews to assist in
the selection of bonds that offer the best combination of yield and security,
monitor the continued creditworthiness of portfolio holdings, and analyze
economic, political, and demographic trends affecting the markets.
The scope of this analysis is broad. We understand the beneficial insights
that can be obtained by assessing the impact of local elections in small towns
or gaining an understanding of the global wood pulp market to accurately
evaluate a municipal issue in Alaska. Recently a financial adviser noticed a
large number of clippings on salmon fishing on one Nuveen analyst's desk. The
analyst explained that the articles provided information on salmon spawning, a
conservation issue having a major impact on public hydroelectric projects in
the Pacific Northwest. With the largest research staff in the industry, we can
analyze subtle but essential details such as this--and apply our findings to
enhance the performance of your portfolio.
<PAGE>
BENEFITING OUR INVESTORS
The Nuveen Research Department supports the investment goals of fund investors
through three major activities:
Primary research and surveillance
Every year, our research staff reviews thousands of tax-exempt issues valued
at more than $100 billion to help our portfolio managers select the most
appropriate bonds based on current yield, price, credit quality, and future
prospects.
A recent example of the way Nuveen Research benefits our shareholders was
our successful investment in Philadelphia water and sewer bonds. When the city
decided to issue bonds to fund badly needed capital improvements, the city's
fiscal difficulties resulted in an issue that was priced below that of other
cities for similar bonds, generating higher income. However, Nuveen's own
research performed independently from the rating agencies indicated that the
city water and sewer system was economi-cally sound and that adequate legal
safeguards would be in place to protect the investment. Following the
completion of the improvements, the prices of these bonds resulted in a
sizable portfolio gain to our shareholders.
Research reports
Just as you rely on your financial adviser for seasoned, prudent advice,
financial advisers depend on Nuveen's research reports to keep current on
market developments. Reports cover issues ranging from credit analysis of
specific states to comprehensive examinations of tax-free investment
strategies and the impact of national and state elections on municipal issues.
(For a list of research reports currently available to you and your adviser,
please refer to the attached reply card.)
Investor interests
We take our responsibility to our shareholders seriously by actively
representing their interests before the industry and government groups that
oversee and regulate the markets. We testified before a U.S. Senate
subcommittee to support better disclosure of financial information by bond
issuers. Our analysis of the effect of the Orange County bankruptcy on other
California issuers helped a California Senate subcommittee understand the
importance of fiscal conservatism and prudent policy decisions. By providing
informed opinions backed by years of experience, we help to define and set
policy that benefits you.
At Nuveen, quality research is one of the core elements of our disciplined
approach to providing you with dependable income, credit quality, and
diversification--key elements of a successful investment program.
Nuveen's research reports are often used by the press as background when
covering the municipal market in depth.
Photographic image of a grouping of research reports and newspapers.
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Photographic image of man seated at breakfast table with wife standing behind
him.
CONTENTS
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
14 Fund performance
16 Commonly used terms
18 Shareholder meeting report
19 Portfolio of investments
47 Statement of net assets
48 Statement of operations
49 Statement of changes in net assets
51 Notes to financial statements
58 Financial highlights
60 Report of independent auditors
61 Nuveen Exchange-Traded Funds dividend reinvestment program
<PAGE>
Municipal market perspective
The start of 1995 brought with it a turnaround in the bond market, concluding
one of the worst periods in recent bond market history. This rebound reflects
a general consensus that inflation is under control following an unprecedented
series of seven interest rate hikes by the Federal Reserve Board over a
twelve-month period.
In early July, the Federal Reserve reacted to the slowing economy by making a
much-anticipated move to ease short-term rates, the first such reduction in
nearly three years. Further rate cuts remain a possibility, as the Fed keeps a
close eye on the strength of the expanding economy and the outcome of
Congressional efforts to balance the federal budget.
In the municipal bond market, prospects of another Fed easing helped
municipals gain momentum toward year end, despite an exceptionally strong
stock market and continued debate about potential tax reform legislation.
Inflation for the year remained low, a benefit to bondholders.
<PAGE>
Dear shareholder
Photographic image of Richard Franke, Chairman of Nuveen.
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
Since the beginning of 1995, we have enjoyed a welcome rebound in the bond
markets, as we put behind us 1994--a very volatile period in bond market
history. This period serves as a reminder that weathering the ups and downs of
the markets is a normal part of the investment process. We can gain a better
perspective on this process if we remember one of the basic principles of
investing: A financial plan that focuses on your long-term goals can minimize
the impact of any short-term market volatility.
Municipal bond funds continue to be an attractive way to invest for the long
term, offering steady tax-free income and diversification across market
sectors. Throughout the past year, we have kept our sights focused on
successfully meeting these objectives, providing you with a solid source of
current income, credit quality, and enhanced share price relative to the
market as a whole.
As of October 31, 1995, current yields on share prices for the funds covered
in this report ranged from 6.87% to 7.10%. To match these yields, an investor
in the 36% federal income tax bracket would have had to earn at least 10.73%
on taxable alternatives of comparable quality. Without question, taxable
yields at these levels on investments of comparable quality are difficult to
achieve in today's markets.
Reflecting the rebound in the bond market, each of these funds reported
gains in net asset value over October 31, 1994, as well as substantial
increases in share price. The 12-month total returns on net asset value,
reflecting share price gains plus reinvested dividend income, ranged from
14.71% to 17.15%, which translates to 19.01% to 21.33% on a taxable-equivalent
basis. These performance results remind us of the important role that
municipal bonds--and the tax-free income they provide--can play as part of an
investment strategy focused on diversification and long-term performance.
The value and dependability of your municipal bond investments are enhanced
by the fact that you have chosen tax-free exchange-traded funds managed by
Nuveen. We offer a combination of professional management, award-winning
research, and shareholder service that distinguishes Nuveen as a fund manager.
<PAGE>
Our portfolio management strategy, which we call value investing, relies on
a disciplined approach to security selection and portfolio construction
designed to deliver above-market performance by emphasizing securities that
are underpriced or undervalued by the market. This approach is supported by
the strength of Nuveen Research, which provides the insights and experience to
assist portfolio managers in identifying and selecting bonds with strong
credit quality. Our research professionals continually monitor our holdings in
order to alert portfolio managers about changes that may affect quality.
Nuveen also prides itself on its exceptional service to shareholders.
Through annual and semiannual reports, regular statements, as well as our
toll-free information lines, our communication programs help us stay in touch
with your needs and concerns. We also provide support to financial advisers
across the nation by supplying them with the information they need to answer
your questions and ensure that products are selected to meet your needs. Our
educational reports--covering issues such as credit analyses, tax-free
investment strategies, and tax reform proposals--are available to both you and
your adviser to keep you current on market developments.
As you review the following pages detailing the solid performance of your
funds, we trust you will come away with the feeling that these results,
coupled with Nuveen's continued pledge of premium service, add up to a
rewarding investment experience. We look forward to serving your tax-free
investment needs in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
December 15, 1995
<PAGE>
Answering your questions
Photographic image of montage of letters received by Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
value investing and the bond market recovery.
How has the recovery of the municipal bond market affected Nuveen funds?
In short, the market recovery has helped most Nuveen funds regain some of the
share price they lost during 1994's market. To put this in perspective, the
setback in the bond market last year--which goes on record as one of the most
volatile periods in decades--was the first down-turn experienced by many
Nuveen exchange-traded fund investors, and they reacted by selling their
shares. This, in turn, drove share prices down even further. Since the
beginning of the recovery in early 1995, however, municipal bond prices have
increased, and most Nuveen funds have seen their prices rise 12% to 15%.
Because of their capital structure, leveraged funds such as the ones covered
in this report, experienced greater price declines in 1994 than unleveraged
funds, and they generally responded more quickly to the stabilizing interest
rate environment with recovering prices.
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.
<PAGE>
Why do these funds continue to trade at a discount despite the recovery?
To understand why this is happening, it may be helpful to remember that each
share has two prices: the net asset value (NAV), which represents the
underlying value--or the sum of assets and liabilities--of the fund, and the
share price, which reflects the market's assessment of the fund.
As the market turned around in 1995, net asset values appreciated more
quickly than share prices. This is typical of a market that sometimes takes a
while to recognize underlying value balanced against the various factors that
affect share price, such as interest rates, inflation forecasts, the relative
strength of the stock market, or the legislative and tax outlook. The fact
that gains in NAVs are currently outpacing the rate of change in share prices
means that the market is lagging in recognizing the value currently offered by
municipal bonds.
Investors in the Nuveen national funds should be aware that the net asset
values for these funds, as shown in this report, remain quite strong. For
long-term investors, in fact, the current period may present a buying
opportunity, as shares can be purchased at prices lower than their underlying
value--and at a time when the bond market is strong.
What does Nuveen mean by "value investing"? Where are Nuveen analysts finding
value today?
At Nuveen, we define value investing as a disciplined approach to security
selection and portfolio construction designed to deliver above-market
performance. We emphasize securities that offer good intrinsic value but that
are underpriced or undervalued by the market. Our value investing approach
concentrates on identifying individual bonds with current yields, prices,
credit quality, and future prospects that are exceptionally attractive in
relation to other bonds in the market.
As we search for value in the market today, our analysts continue to assess
investment potential across the entire spectrum of geographical and sector
opportunities. During 1995, we have seen many credit upgrades on portfolio
holdings, meaning that our judgments about credit quality have been rewarded.
We currently favor revenue bonds, which offer a dedicated revenue stream--such
as tollways or recycling plants, over general obligation bonds, which rely on
the taxing power of a state or municipality. One example of revenue bonds that
have performed exceptionally well for us recently are those issued for the
Denver International Airport.
<PAGE>
What does Nuveen see as the impact of the flat tax proposals?
We have been closely monitoring the various flat tax proposals currently being
debated in Congress and their implications for tax-free funds. Four major tax
reform proposals are currently under discussion, all with the common goal of
simplifying the federal tax code and increasing incentives for saving and
investment. It is important to note that none of the proposals has gained a
strong consensus and implementation of any measure that manages to pass both
houses is at least two years away. We believe that some action on the tax
reform front is likely, as our tax laws are constantly being reevaluated and
revised, although changes of the magnitude outlined in current
proposals are rare.
As we look at the bond market today, we can see some evidence that the
market is already compensating investors for the uncertainty of tax reform.
Yields on municipal bonds are currently at a level equal to 90% or more of
Treasury bond yields, a historically high level. These yields are comparable
to taxable yields in the 10% range, providing good value that is tough to
match.
Once the tax issue is resolved, we're confident that municipal
bonds--because of their high credit quality and attractive yields--will
continue to hold a strategic place in the prudent investor's portfolio. The
importance of municipal bonds is enhanced by the integral role they play in
maintaining our way of life in this country. Our cities, counties, and states
will always have a need for financing to build and upgrade projects such as
roads, hospitals, and water treatment systems. And municipal bonds will
continue to be an essential way to match America's long-term needs for capital
improvements with investors' long-term needs for secure income.
What is Nuveen's outlook as we head into 1996?
Inflation remains low and the economy seems to be expanding at a reasonable
pace; and, while both of these factors can change and have an impact on the
bond market, the current environment is favorable for bonds. While municipal
supply is down from past years, demand from institutional investors such as
insurance companies has been strong in 1995, contributing to the rebound in
municipal prices. If we experience continued slow and steady economic growth,
combined with low inflation and stable interest rates, that may attract
greater numbers of individual investors as well.
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NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQM
While the dividend income remained attractive compared with other funds, the
dividend was reduced during the 12 months as older, higher coupon bonds were
called and replaced with today's lower-yielding bonds.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/94 $0.0920
12/94 $0.0920
1/95 $0.0920
2/95 $0.0895
3/95 $0.0895
4/95 $0.0895
5/95 $0.0895
6/95 $0.0895
7/95 $0.0895
8/95 $0.0895
9/95 $0.0895
10/95 $0.0895
<CAPTION>
FUND HIGHLIGHTS 10/31/95
<S> <C>
Yield 7.10%
Taxable-equivalent yield 11.09%
Annual total return on NAV 14.71%
Taxable-equivalent total return 19.01%
Federal tax rate 36.00%
Share price $15.125
NAV $15.65
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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<TABLE>
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NQS
While the dividend income remained attractive compared with other funds, the
dividend was reduced during the 12 months as older, higher coupon bonds were
called and replaced with today's lower-yielding bonds.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/94 $0.0900
12/94 $0.0900
1/95 $0.0900
2/95 $0.0870
3/95 $0.0870
4/95 $0.0870
5/95 $0.0870
6/95 $0.0870
7/95 $0.0870
8/95 $0.0845
9/95 $0.0845
10/95 $0.0845
<CAPTION>
FUND HIGHLIGHTS 10/31/95
<S> <C>
Yield 6.87%
Taxable-equivalent yield 10.73%
Annual total return on NAV 17.03%
Taxable-equivalent total return 21.36%
Federal tax rate 36.00%
Share price $14.75
NAV $15.29
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NQU
While the dividend income remained attractive compared with other funds, the
dividend was reduced during the 12 months as older, higher coupon bonds were
called and replaced with today's lower-yielding bonds.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/94 $0.0875
12/94 $0.0875
1/95 $0.0875
2/95 $0.0855
3/95 $0.0855
4/95 $0.0855
5/95 $0.0855
6/95 $0.0855
7/95 $0.0855
8/95 $0.0855
9/95 $0.0855
10/95 $0.0855
<CAPTION>
FUND HIGHLIGHTS 10/31/95
<S> <C>
Yield 6.96%
Taxable-equivalent yield 10.88%
Annual total return on NAV 16.51%
Taxable-equivalent total return 20.73%
Federal tax rate 36.00%
Share price $14.75
NAV $15.43
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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<TABLE>
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
NPF
The Fund's monthly tax-free dividend remains at an attractive level. In May
the dividend was increased to reflect more closely the current earnings of the
portfolio. In addition, shareholders received a capital gains distribution in
December.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/94 $0.0835
12/94 $0.0835 $0.0562
1/95 $0.0835
2/95 $0.0835
3/95 $0.0835
4/95 $0.0835
5/95 $0.0845
6/95 $0.0845
7/95 $0.0845
8/95 $0.0845
9/95 $0.0845
10/95 $0.0845
<CAPTION>
FUND HIGHLIGHTS 10/31/95
<S> <C>
Yield 6.93%
Taxable-equivalent yield 10.83%
Annual total return on NAV 17.15%
Taxable-equivalent total return 21.33%
Federal tax rate 36.00%
Share price $14.625
NAV $15.34
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, October 31, 1995) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor subject to a given federal income tax rate would need
to obtain from a fully taxable investment to equal the fund's stated
annualized yield on share price. In this report, the tax rate is assumed to be
36.0% for shareholders, based on incomes of $117,950-$256,500 for investors
filing singly, $143,600-$256,500 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by the total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value per share, both up and down, are also
magnified by leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended October 31, 1995. Any future
repur-chases will be reported to shareholders in the next annual or semiannual
report.
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SHAREHOLDER MEETING REPORT
On July 26, 1995, Nuveen Exchange-Traded Funds held an Annual Meeting of
Shareholders. At the meeting, shareholders voted to elect directors of the
Funds and to ratify selection of the auditors for the Funds. The directors
elected at the meeting include: Lawrence H. Brown, Richard J. Franke, Anne E.
Impellizzeri, and Peter R. Sawers.
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Lawrence H. Brown
For 32,214,194 30,504,629 48,639,877 18,080,359
Abstain 337,317 357,635 558,983 136,561
---------- ---------- ---------- ----------
Total 32,551,511 30,862,264 49,198,860 18,216,920
========== ========== ========== ==========
Richard J. Franke
For 32,221,887 30,506,058 48,646,794 18,084,134
Abstain 329,624 356,206 552,066 132,786
---------- ---------- ---------- ----------
Total 32,551,511 30,862,264 49,198,860 18,216,920
========== ========== ========== ==========
Anne E. Impellizzeri
For 32,198,998 30,484,853 48,626,324 18,081,459
Abstain 352,513 377,411 572,536 135,461
---------- ---------- ---------- ----------
Total 32,551,511 30,862,264 49,198,860 18,216,920
========== ========== ========== ==========
Peter R. Sawers
For 32,226,737 30,504,385 48,637,307 18,084,309
Abstain 324,774 357,879 561,553 132,611
---------- ---------- ---------- ----------
Total 32,551,511 30,862,264 49,198,860 18,216,920
========== ========== ========== ==========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 32,058,414 30,399,969 48,409,309 17,952,245
Against 131,422 103,159 209,919 88,220
Abstain 361,675 359,136 579,632 176,455
---------- ---------- ---------- ----------
Total 32,551,511 30,862,264 49,198,860 18,216,920
========== ========== ========== ==========
</TABLE>
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<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQM)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.7%
$ 5,630,000 Alaska Housing Finance Corporation, Insured Mortgage
Program, 7.800%, 12/01/30 12/00 at 102 Aa $ 5,954,795
CALIFORNIA - 12.6%
22,400,000 California Health Facilities Financing Authority (Kaiser
Permanente), 5.600%, 5/01/33 5/03 at 102 Aa3 20,865,376
5,700,000 California Public Works Board (Regents of the University
of California), 5.500%, 6/01/21 6/03 at 102 Con(A1) 5,290,797
9,740,000 Huntington Park Redevelopment Agency, Single Family
Mortgage, 8.000%, 12/01/19 No Opt. Call Aaa 12,638,721
6,640,000 Lancaster Redevelopment Agency, Tax Allocation,
5.700%, 8/01/23 8/03 at 102 Aaa 6,525,792
Loma Linda (Loma Linda University Medical Center):
4,000,000 6.500%, 12/01/18 12/03 at 102 BBB 3,897,240
10,325,000 5.000%, 12/01/22 12/03 at 102 Aaa 9,170,975
7,155,000 Los Angeles Department of Water and Power,
4.500%, 5/15/23 5/03 at 102 Aaa 5,887,492
15,770,000 Ontario Redevelopment Authority, 7.400%, 8/01/25 No Opt. Call Aaa 19,654,466
13,145,000 Perris Single Family Mortgage, Alternative Minimum Tax,
8.200%, 9/01/23 No Opt. Call Aaa 17,251,892
COLORADO - 1.1%
4,940,000 Castle Pines Metropolitan District, General Obligation,
7.625%, 12/01/15 12/00 at 102 Aaa 5,665,587
3,085,000 City and County of Denver Airport System, Alternative
Minimum Tax, 8.000%, 11/15/25 11/01 at 100 Baa 3,443,971
DISTRICT OF COLUMBIA - 0.7%
5,215,000 District of Columbia Housing Finance Agency,
Alternative Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 5,594,652
FLORIDA - 5.4%
4,000,000 Hillsborough County Port District (Tampa Port Authority),
8.250%, 6/01/09 12/00 at 102 Baa1 4,746,040
20,000,000 Jacksonville Health Facilities Authority (Daughters of
Charity Health Systems-St. Vincent), 7.500%, 11/01/15
(Pre-refunded to 11/01/00) 11/00 at 102 Aaa 23,185,200
Orange County Housing Finance Authority:
3,355,000 7.500%, 7/01/10 7/00 at 103 Aaa 3,614,643
11,035,000 7.600%, 1/01/24 7/00 at 103 Aaa 11,858,321
GEORGIA - 6.4%
Georgia Municipal Electric Authority:
5,990,000 8.375%, 1/01/16 1/98 at 102 A 6,563,782
5,250,000 8.125%, 1/01/17 1/98 at 102 A 5,738,723
5,000,000 8.375%, 1/01/20 1/97 at 102 A 5,326,200
2,250,000 6.500%, 1/01/20 No Opt. Call A 2,402,798
3,785,000 Atlanta Urban Residential Finance Authority, Single
Family Mortgage (GNMA), Alternative Minimum Tax,
8.250%, 10/01/21 10/98 at 103 AAA 3,994,235
10,000,000 Burke County Development Authority, Pollution Control
(Georgia Power Company), 5.750%, 9/01/23 9/98 at 102 A1 9,623,600
10,000,000 Monroe County Development Authority, Pollution Control
(Georgia Power Company), 6.750%, 10/01/24 10/99 at 102 A1 10,333,100
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
GEORGIA (CONTINUED)
$ 7,325,000 Wayne County Development Authority, Solid Waste
Disposal (ITT Rayonier Inc.), Alternative Minimum Tax,
8.000%, 7/01/15 1/00 at 102 Baa2 $ 7,865,805
ILLINOIS - 5.5%
5,000,000 Illinois Health Facilities Authority (ServantCor),
7.875% 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 BBB+ 5,677,050
3,305,000 Illinois Health Facilities Authority (Riverside Senior
Living Center Project), 7.500%, 11/01/20 11/00 at 102 Baa1 3,434,027
7,500,000 Cook County Community College District No. 508,
8.750%, 1/01/07 No Opt. Call Aaa 9,751,725
5,900,000 Madison County Community Unit School District No. 7,
General Obligation, 5.850%, 2/01/13 No Opt. Call Aaa 6,071,100
3,585,000 Pekin Multi-Family Housing, 6.875%, 5/01/22 5/03 at 103 AAA 3,775,399
3,240,000 Peoria, Pekin and Waukegan (GNMA), Alternative
Minimum Tax, 7.875%, 8/01/22 8/00 at 103 AAA 3,478,367
6,250,000 Regional Transportation Authority, 9.000%, 6/01/07 No Opt. Call Aaa 8,345,500
Southwestern Illinois Development Authority (LaClede
Steel Company), Alternative Minimum Tax:
775,000 8.375%, 8/01/08 8/00 at 103 A- 848,269
2,910,000 8.500%, 8/01/20 8/00 at 103 A- 3,189,709
INDIANA - 0.8%
6,000,000 Delaware County Hospital Authority, 6.625%, 8/01/16 8/01 at 102 Aaa 6,314,340
KANSAS - 0.9%
5,145,000 Topeka (Sunwest Hotel Corporation Project), Alternative
Minimum Tax, 9.500%, 10/0/16 (Pre-refunded to
8/15/16) 8/16 at 100 AAA 7,189,520
KENTUCKY - 0.7%
Kentucky Development Finance Authority (Ashland
Hospital Corporation):
1,550,000 9.750%, 8/01/11 (Pre-refunded to 2/01/98) 2/98 at 102 A 1,755,980
950,000 9.750%, 8/01/11 2/98 at 102 A 1,065,672
2,530,000 Kentucky Housing Corporation, Alternative Minimum
Tax, 8.100%, 1/01/22 7/00 at 102 AAA 2,716,259
LOUISIANA - 6.2%
Louisiana Public Facilities Authority (West Jefferson
Medical Center):
2,550,000 7.900%, 12/01/15 (Pre-refunded to 12/01/98) 12/98 at 102 Aaa 2,871,275
15,830,000 7.900%, 12/01/15 12/98 at 102 Aaa 17,679,894
5,905,000 Louisiana Public Facilities Authority Extended Care
(Comm-Care Corporation), 11.000%, 2/01/04 No Opt. Call BBB 7,352,434
5,460,000 East Baton Rouge Mortgage Finance Authority,
Alternative Minimum Tax, 7.875%, 8/01/23 8/00 at 102 Aaa 5,847,005
11,545,000 Orleans Parish School Board, 9.000%, 2/01/09 No Opt. Call Aaa 15,720,134
MAINE - 0.7%
5,510,000 Maine Housing Authority, Alternative Minimum Tax,
6.875%, 11/15/23 10/04 at 102 AA- 5,708,691
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MARYLAND - 0.3%
$ 2,000,000 Gaithersburg Economic Development (Ashbury
Methodist Home), 7.850%, 1/01/20 (Pre-refunded
to 1/01/00) 1/00 at 102 N/R $ 2,297,400
MASSACHUSETTS - 6.6%
10,125,000 Massachusetts Health and Educational Facilities Authority
(Goddard Memorial Hospital), 9.000%, 7/01/15 7/00 at 102 Baa 11,309,018
1,250,000 Massachusetts Housing Finance Agency, Alternative
Minimum Tax, 8.100%, 8/01/23 8/99 at 102 BBB+ 1,313,763
Massachusetts Water Resources Authority:
15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 17,195,400
4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 4,565,560
16,250,000 Boston City Hospital (FHA-Insured), 7.625%, 2/15/21
(Pre-refunded to 8/15/00) 8/00 at 102 Aaa 18,616,163
MINNESOTA - 2.8%
5,000,000 Dakota and Washington Counties, Anoka Housing
Authority (GNMA), Alternative Minimum Tax,
8.450%, 9/01/19 No Opt. Call Aaa 6,699,050
2,860,000 Hopkins Elderly Housing (St. Therese Southwest, Inc.),
6.500%, 3/01/19 3/04 at 102 AA 2,944,227
11,730,000 St. Paul Housing and Redevelopment Authority,
9.250%, 12/01/97 No Opt. Call A1 12,857,370
MISSISSIPPI - 0.6%
1,650,000 Mississippi Home Corporation, 9.250%, 3/01/12 9/00 at 103 Aaa 1,806,701
3,155,000 Mississippi Housing Finance Corporation, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
8.250%, 10/15/18 10/99 at 102 Aaa 3,378,879
NEBRASKA - 2.1%
3,300,000 Nebraska Higher Education Loan Program, Alternative
Minimum Tax, 5.875%, 6/01/14 6/04 at 102 A 3,212,550
13,330,000 Nebraska Investment Finance Authority, Single Family
Housing, Alternative Minimum Tax, 6.450%, 3/01/35 3/05 at 101 1/2 AAA 13,607,931
NEVADA - 0.7%
5,400,000 Nevada General Obligation, Limited Tax, 8.000%, 10/01/15
(Pre-refunded to 10/01/97) 10/97 at 102 Aaa 5,897,718
NEW MEXICO - 1.2%
9,400,000 Los Alamos County Utility System, 7.750%, 1/01/15
(Pre-refunded to 1/01/97) 1/97 at 102 Baa1 9,978,194
NEW YORK - 12.6%
10,000,000 New York State Medical Care Facilities Finance Agency
(Columbia-Presbyterian), 8.000%, 2/15/25
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 10,874,800
5,000,000 New York State Medical Care Facilities Finance Agency
(St. Luke's-Roosevelt Hospital Center), 7.450%, 2/15/29
(Pre-refunded to 2/15/00) 2/00 at 102 Aaa 5,695,850
3,500,000 New York State Mortgage Agency, Homeowner Mortgage,
Alternative Minimum Tax, 7.950%, 4/01/22 6/00 at 102 Aa 3,746,505
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
Dormitory Authority of the State of New York
(City University):
$ 5,890,000 9.250%, 7/01/98 No Opt. Call Baa1 $ 6,594,150
14,235,000 8.750%, 7/01/02 No Opt. Call Baa1 17,213,958
10,000,000 7.875%, 6/15/19 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,664,800
Dormitory Authority of the State of New York
(State University):
7,935,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 9,025,110
1,025,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 AAA 1,165,815
6,655,000 New York City Municipal Assistance Corporation,
6.875%, 7/01/07 7/97 at 102 Aa 7,096,360
New York City Municipal Water Finance Authority:
10,200,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 11,652,378
6,395,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 A- 6,818,349
5,105,000 6.000%, 6/15/20 6/00 at 100 A- 5,055,992
4,200,000 New York City Industrial Development Agency
(American Airlines, Inc.), Alternative Minimum Tax,
8.000%, 7/01/20 1/99 at 102 Baa3 4,500,594
NORTH CAROLINA - 0.4%
2,795,000 Charlotte FHA-Insured (Double Oaks Apartments),
7.350%, 5/15/26 11/07 at 100 AAA 3,020,305
OKLAHOMA - 1.3%
10,500,000 Tulsa Municipal Airport Trust (American Airlines, Inc.),
9.500%, 6/01/20 12/95 at 102 Baa2 10,767,750
OREGON - 0.9%
2,500,000 Oregon Department of General Services, Certificates of
Participation, 7.500%, 9/01/15 (Pre-refunded to 9/01/00) 9/00 at 102 Aaa 2,879,175
4,740,000 Northern Wasco County People's Utility District
(Bonneville Power Administration), 5.200%, 12/01/24 12/03 at 102 Aa 4,370,422
PENNSYLVANIA - 3.3%
8,605,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax, 7.650%, 10/01/23 10/00 at 102 Aa 9,193,238
4,905,000 McKean County Hospital Authority (Bradford Hospital),
8.875%, 10/01/20 10/00 at 102 BBB- 5,882,027
Philadelphia Water and Sewer:
500,000 9.100%, 12/01/02 (Pre-refunded to 12/01/95) 12/95 at 102 AAA 512,145
2,760,000 9.100%, 12/01/03 (Pre-refunded to 12/01/95) 12/95 at 102 AAA 2,827,040
1,105,000 9.100%, 12/01/04 (Pre-refunded to 12/01/95) 12/95 at 102 AAA 1,131,840
7,040,000 Philadelphia Water and Wastewater System,
5.000%, 6/15/16 6/03 at 100 Aaa 6,442,304
RHODE ISLAND - 2.0%
10,000,000 Rhode Island Housing and Mortgage Finance Corporation,
Alternative Minimum Tax, 8.050%, 4/01/22 10/00 at 102 AA+ 10,749,300
5,000,000 Newport Housing Development Corporation (Broadway-
West Broadway Apartments), 6.800%, 8/01/24 6/03 at 100 AAA 5,206,750
SOUTH CAROLINA - 3.0%
3,475,000 South Carolina Housing Finance Authority, Alternative
Minimum Tax, 7.750%, 7/01/22 7/00 at 102 Aa 3,682,701
19,800,000 Piedmont Municipal Power Agency, 7.250%, 1/01/22 1/96 at 102 A 20,261,934
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TENNESSEE - 2.1%
Tennessee Housing Development Agency,
Homeownership Program, Alternative Minimum Tax:
$ 4,460,000 7.825%, 7/01/15 7/12 at 100 A1 $ 4,827,192
11,455,000 8.125%, 7/01/21 7/98 at 103 A1 11,814,343
TEXAS - 5.1%
Brazos River Authority, Pollution Control (Texas Utilities
Electric Company), Alternative Minimum Tax:
12,110,000 8.250%, 12/01/16 12/96 at 102 Baa2 12,805,720
4,295,000 8.250%, 1/01/19 1/99 at 102 Baa2 4,790,901
2,000,000 8.125%, 2/01/20 2/00 at 102 Baa2 2,220,820
3,500,000 Brazos River Authority, Pollution Control (Texas Utilities
Electric Company), 5.500%, 5/01/22 11/03 at 102 Aaa 3,393,250
2,270,000 Cameron County Housing Finance Corporation (GNMA),
7.850%, 3/01/24 9/00 at 103 Aaa 2,450,964
Dallas Housing Corporation (Section 8 Assisted Projects):
1,000,000 7.700%, 8/01/05 8/00 at 102 A 1,084,330
2,000,000 7.850%, 8/01/13 8/00 at 102 A 2,163,620
10,000,000 Harris County Hospital District, 7.400%, 2/15/10 No Opt. Call Aaa 11,922,900
UTAH - 1.9%
Intermountain Power Agency:
9,250,000 7.500%, 7/01/16 7/96 at 102 AA 9,636,280
5,480,000 7.750%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 102 Aaa 5,730,600
VERMONT - 0.5%
3,955,000 Vermont Housing Finance Agency, Alternative Minimum
Tax, 8.150%, 5/01/25 11/00 at 102 A1 4,219,154
WASHINGTON - 7.0%
11,320,000 Washington General Obligation, 4.750%, 10/01/13 10/03 at 100 Aa 10,116,231
3,000,000 Washington Health Care Facilities Authority (Franciscan
Health System), 7.250%, 7/01/15 7/00 at 102 Aaa 3,331,200
Washington Public Power Supply System Nuclear Project
No. 1:
1,745,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,967,348
1,460,000 7.500%, 7/01/15 7/99 at 102 Aa 1,594,583
2,000,000 8.000%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 2,336,940
5,650,000 Washington Public Power Supply System, Nuclear Project
No. 2, 7.000%, 7/01/12 7/00 at 102 Aa 6,049,229
Washington Public Power Supply System Nuclear Project
No. 3:
13,900,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 15,703,525
15,850,000 5.600%, 7/01/15 7/03 at 102 Aaa 15,488,620
WEST VIRGINIA - 0.2%
2,000,000 West Virginia Hospital Finance Authority (Fairmont
General Hospital), 6.625%, 3/01/19 3/04 at 102 Baa 1,936,420
WISCONSIN - 0.5%
3,145,000 Wisconsin Housing and Economic Development
Authority, Home Ownership, 7.600%, 3/01/15 9/99 at 102 Aa 3,365,931
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
PUERTO RICO - 0.4%
$ 3,450,000 Puerto Rico Highway and Transportation Authority,
5.500%, 7/01/19 7/03 at 101 1/2 A $ 3,298,131
$716,785,000 Total Investments - (cost $719,631,275) - 97.2% 781,846,301
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.2%
$ 2,000,000 Chicago O'Hare International Airport (American
Airlines), Variable Rate Demand Bonds,
4.100%, 12/01/17t VMIG-1 2,000,000
5,000,000 Henrico County Industrial Development Health
Facility, Series 1994 (The Hermitage at Cedarfield),
Variable Rate Demand Bonds, 4.000%, 5/01/24t VMIG-1 5,000,000
1,000,000 Hillsborough County Industrial Development
Authority (Tampa Electric Company), Variable Rate
Demand Bonds, 4.000%, 9/01/25t Aa-2 1,000,000
300,000 Maricopa County Pollution Control Corp Pollution
Control Refunding (Arizona Public Service Co.
Palo Verde Project), Series F, Variable Rate Demand
Bonds, 4.000%, 5/01/29t A-1 300,000
1,400,000 New York State Energy Research & Development
Authority, Pollution Control, Variable Rate Demand
Bonds, 4.000%, 10/01/29t VMIG-1 1,400,000
$ 9,700,000 Total Temporary Investments - 1.2% 9,700,000
============
Other Assets Less Liabilities - 1.6% 12,674,857
Net Assets - 100% $804,221,158
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 54 $420,993,555 54%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 105,073,869 13
PORTFOLIO OF A+ A1 7 58,965,556 7
INVESTMENTS A, A- A, A2, A3 15 68,786,039 9
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 19 125,729,882 16
TEMPORARY Non-rated Non-rated 1 2,297,400 1
INVESTMENTS):
TOTAL 111 $781,846,301 100%
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition.
t 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.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. (NQS)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.4%
$ 2,900,000 Arab Water Works Board, 7.050%, 8/01/16 8/01 at 102 Aaa $ 3,222,654
ALASKA - 1.8%
14,250,000 Valdez Marine Terminal (BP Pipelines, Inc.),
5.500%, 10/01/28 10/03 at 102 AA- 13,308,503
ARKANSAS - 1.5%
5,725,000 Arkansas Development Finance Authority, Single Family
Mortgage, 8.000%, 8/15/11 8/01 at 103 AA 6,266,127
4,500,000 Little Rock Hotel and Restaurant, Gross Receipts Tax,
7.375%, 8/01/15 No Opt. Call A 5,258,880
CALIFORNIA - 5.8%
3,200,000 California Department of Water Resources (Central Valley
Project), 4.875%, 12/01/27 12/03 at 101 Aa 2,732,000
4,000,000 California Statewide Communities Development
Authority (Sisters of Charity Leavenworth), Certificates
of Participation, 5.000%, 12/01/23 12/03 at 102 Aa 3,450,200
7,000,000 Los Angeles Department of Water and Power, Electric
Plant, 5.375%, 9/01/23 9/03 at 102 Aa 6,531,560
6,710,000 Los Angeles Department of Water and Power, Waterworks
System, 4.500%, 5/15/11 5/03 at 102 Aa 5,767,581
21,800,000 Los Angeles County Transportation Commission, Sales
Tax, 6.750%, 7/01/20 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 24,730,792
COLORADO - 6.0%
City and County of Denver Airport System, Alternative
Minimum Tax:
5,000,000 7.750%, 11/15/21 11/01 at 102 Baa 5,508,950
12,150,000 6.750%, 11/15/22 11/02 at 102 Baa 12,276,239
20,000,000 8.750%, 11/15/23 11/01 at 102 Baa 23,448,200
3,300,000 Jefferson County, Single Family Mortgage,
8.875%, 10/01/13 4/01 at 103 Aaa 3,609,936
CONNECTICUT - 2.4%
Connecticut Development Authority (Alzheimer's
Resource Center):
7,500,000 10.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 103 N/R 9,598,725
7,885,000 7.250%, 8/15/21 8/04 at 102 N/R 8,109,486
DISTRICT OF COLUMBIA - 0.2%
1,615,000 District of Columbia Housing Finance Agency, Alternative
Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 1,732,572
FLORIDA - 3.3%
Jacksonville Electric Authority:
4,500,000 7.500%, 10/01/02 (Pre-refunded to 10/01/97) 10/97 at 101 1/2 Aaa 4,858,875
14,250,000 6.750%, 10/01/21 (Pre-refunded to 10/01/00) 10/00 at 101 1/2 Aaa 15,961,853
4,000,000 Orlando-Orange County Expressway, 5.125%, 7/01/20 7/03 at 102 Aaa 3,724,560
GEORGIA - 1.1%
2,940,000 Atlanta Urban Residential Finance Authority, Single
Family Mortgage (GNMA), Alternative Minimum Tax,
8.250%, 10/01/21 10/98 at 103 AAA 3,102,523
5,000,000 Burke County Development Authority, Pollution Control
(Georgia Power Company), 5.750%, 9/01/23 9/98 at 102 A1 4,811,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
HAWAII - 2.5%
$ 16,000,000 Hawaii Department of Budget and Finance (Kapiolani
Health Care System), 7.650%, 7/01/19 (Pre-refunded
to 7/01/01) 7/01 at 102 Aaa $ 18,805,120
ILLINOIS - 3.1%
3,100,000 Illinois Development Finance Authority (Marriott
Retirement Communities, Inc.-Church Creek Project),
7.750%, 8/01/10 8/01 at 102 A1 3,289,968
Illinois Development Finance Authority, Multi-Family
Housing:
775,000 7.650%, 7/01/07 1/02 at 105 AAA 866,923
6,780,000 7.650%, 12/31/31 1/02 at 105 AAA 7,461,051
10,250,000 Illinois Educational Facilities Authority (The University
of Chicago), 5.700%, 12/01/25 12/03 at 102 Aaa 9,969,355
1,585,000 Illinois Housing Development Authority, Multi-Family
Housing, 7.400%, 7/01/23 7/01 at 102 A1 1,665,962
INDIANA - 3.5%
5,060,000 Indiana Office Building Commission, 8.750%, 7/01/12
(Pre-refunded to 7/01/97) 7/97 at 102 Aaa 5,540,852
8,640,000 Avon Community School Building Corporation,
5.500%, 1/01/16 1/04 at 101 Aaa 8,469,187
5,380,000 Beacon Heights Housing Development Corporation,
Multi-Family Mortgage, 7.625%, 2/01/21 6/01 at 100 AAA 5,736,748
5,770,000 Fremont Middle School Building Corporation,
5.250%, 1/15/13 1/04 at 101 Aaa 5,502,387
1,140,000 Michigan City Housing Development Corporation,
Multi-Family Mortgage, 7.625%, 2/01/21 6/01 at 100 AAA 1,215,593
KANSAS - 2.6%
Merriam (Shawnee Mission Medical Center):
10,095,000 7.250%, 9/01/04 9/01 at 102 A- 10,559,067
8,800,000 7.250%, 9/01/21 9/01 at 102 A- 9,100,960
KENTUCKY - 1.1%
3,015,000 Lakeland Wesley Village Mortgage, 7.500%, 11/01/21 11/01 at 103 Aa 3,227,829
5,000,000 Louisville-Jefferson County Regional Airport Authority,
Alternative Minimum Tax, 5.500%, 7/01/23 7/03 at 102 Aaa 4,891,800
LOUISIANA - 0.3%
1,855,000 Calcasieu Parish Public Trust Authority, 7.750%, 6/01/12 6/01 at 103 A1 2,028,387
MASSACHUSETTS - 6.2%
2,000,000 Massachusetts Health and Educational Facilities Authority
(Lowell General Hospital), 8.400%, 6/01/11 6/01 at 102 Baa1 2,198,440
10,435,000 Massachusetts Housing Finance Agency (GNMA),
9.000%, 12/01/09 12/95 at 102 Aaa 10,693,371
Massachusetts Housing Finance Agency, Residential
Housing, Alternative Minimum Tax:
2,100,000 8.400%, 8/01/21 8/98 at 102 A1 2,242,653
1,660,000 8.200%, 8/01/27 8/99 at 102 BBB+ 1,775,586
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$ 19,025,000 Massachusetts Water Resources Authority,
6.000%, 4/01/20 4/00 at 100 A $ 19,042,123
4,385,000 Boston Housing Development Corporation (FHA-Insured),
5.500%, 7/01/24 1/04 at 102 Aaa 4,047,004
6,300,000 Somerville Housing Authority (GNMA),
7.950%, 11/20/30 5/00 at 102 AAA 6,779,808
MICHIGAN - 1.2%
7,890,000 Michigan State Hospital Finance Authority (Detroit
Medical Center), 7.500%, 8/15/11 8/01 at 102 A 8,641,680
MINNESOTA - 1.5%
4,431,644 Chisago County and Stearns County, South Central
Multi-County Housing and Redevelopment Authority,
Single Family Mortgage (FNMA), Alternative Minimum
Tax, 7.050%, 9/01/27 3/04 at 102 29/32 AAA 4,782,586
Dakota, Washington and Stearns Counties, Single Family
Mortgage (FNMA), Alternative Minimum Tax:
3,195,000 6.600%, 9/01/17 3/04 at 102 AAA 3,335,708
2,255,000 6.700%, 3/01/21 3/04 at 102 AAA 2,350,319
1,000,000 Western Minnesota Municipal Power Agency,
9.500%, 1/01/13 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 1,029,210
MISSISSIPPI - 0.2%
1,495,000 Goodman Housing Development Corporation,
Multi-Family Mortgage, 7.625%, 2/01/22 8/01 at 100 AAA 1,594,283
NEBRASKA - 1.5%
10,550,000 Nebraska Investment Finance Authority, Single Family
Mortgage, Alternative Minimum Tax, 6.800%, 3/01/35 3/05 at 101 1/2 AAA 10,945,520
NEVADA - 0.1%
685,000 Nevada Housing Division, Multi-Unit Housing,
8.500%, 4/01/96 No Opt. Call AAA 694,261
NEW JERSEY - 0.6%
4,420,000 New Jersey Housing and Mortgage Finance Agency,
6.850%, 11/01/06 11/01 at 102 AA+ 4,747,699
NEW MEXICO - 2.3%
1,915,000 New Mexico Mortgage Finance Authority, Single Family
Mortgage, Alternative Minimum Tax, 7.800%, 3/01/21 9/99 at 102 AA- 2,006,614
14,050,000 Farmington Pollution Control (Southern California
Edison Company), 7.200%, 4/01/21 4/01 at 102 Aa3 15,412,850
NEW YORK - 7.1%
6,000,000 New York Local Government Assistance Corporation,
7.000%, 4/01/18 (Pre-refunded to 4/01/02) 4/02 at 102 Aaa 6,932,460
1,750,000 New York State Medical Care Facilities Finance Agency
(Hospital and Nursing Home), 8.000%, 2/15/28 8/98 at 102 A 1,924,545
New York State Medical Care Facilities Finance Agency,
Mental Health Services Facilities:
1,615,000 7.600%, 2/15/06 8/01 at 102 Baa1 1,786,707
1,590,000 7.600%, 8/15/06 8/01 at 102 Baa1 1,758,635
8,075,000 7.625%, 8/15/17 8/01 at 102 Baa1 8,937,410
5,425,000 7.400%, 2/15/18 2/02 at 102 Baa1 5,917,482
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 3,410,000 New York State Mortgage Agency, Alternative Minimum
Tax, 8.000%, 10/01/02 7/97 at 102 Aa $ 3,626,740
6,000,000 New York State Urban Development Corporation,
Correctional Capital Facilities, 7.500%, 1/01/18
(Pre-refunded to 1/01/01) 1/01 at 102 Aaa 6,958,680
New York City General Obligation:
4,600,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Baa1 5,560,572
400,000 8.250%, 11/15/10 11/01 at 101 1/2 Baa1 446,200
7,130,000 8.250%, 11/15/15 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Aaa 8,665,374
620,000 8.250%, 11/15/15 11/01 at 101 1/2 Baa1 706,595
NORTH CAROLINA - 1.9%
5,055,000 North Carolina Eastern Municipal Power Agency,
5.500%, 1/01/17 1/03 at 100 Aaa 4,885,961
8,750,000 North Carolina Municipal Power Agency No. 1 (Catawba),
9.625%, 1/01/19 (Pre-refunded to 1/01/96) 1/96 at 103 Aaa 9,095,013
OHIO - 0.8%
Toledo-Lucas County Port Authority, Alternative
Minimum Tax:
665,000 8.500%, 5/15/00 No Opt. Call N/R 687,324
3,450,000 8.500%, 11/15/00 11/96 at 102 N/R 3,664,901
1,410,000 8.400%, 11/15/09 11/00 at 102 N/R 1,474,437
OKLAHOMA - 5.8%
19,545,000 Oklahoma County Home Finance Authority, Single
Family Mortgage, 8.750%, 7/01/12 7/01 at 102 A1 20,835,752
21,025,000 Tulsa Municipal Airport (AMR Corporation), Alternative
Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 22,416,645
OREGON - 0.5%
3,750,000 Hillsboro Hospital Facility Authority (Tuality Healthcare),
5.750%, 10/01/12 10/04 at 102 BBB+ 3,578,250
PENNSYLVANIA - 1.9%
3,000,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, Alternative Minimum Tax,
7.150%, 9/01/21 9/01 at 102 Aaa 3,218,310
10,000,000 Philadelphia Water and Sewer, 7.000%, 8/01/18
(Pre-refunded to 8/01/01) 8/01 at 100 AAA 11,221,000
RHODE ISLAND - 3.0%
6,650,000 Rhode Island Depositors Economic Protection
Corporation, Special Obligation, 7.250%, 8/01/21
(Pre-refunded to 8/01/96) 8/96 at 102 Aaa 6,950,846
Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax:
4,650,000 8.200%, 10/01/17 10/98 at 102 AA+ 4,974,710
10,210,000 8.250%, 10/01/22 10/98 at 102 AA+ 10,888,455
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
SOUTH CAROLINA - 3.2%
$ 5,000,000 Oconee County Pollution Control (Duke Power Company),
5.800%, 4/01/14 4/03 at 102 Aa2 $ 4,982,900
Piedmont Municipal Power Agency:
5,000,000 9.625%, 1/01/13 (Pre-refunded to 1/01/96) 1/96 at 103 Aaa 5,196,700
13,590,000 9.700%, 1/01/24 (Pre-refunded to 1/01/96) 1/96 at 103 Aaa 14,126,261
SOUTH DAKOTA - 1.4%
7,920,000 Sioux Falls (Great Plains Hotel Corporation), Alternative
Minimum Tax, 8.500%, 11/01/16 (Pre-refunded
to 10/15/14) 10/14 at 100 AAA 10,473,725
TENNESSEE - 1.4%
9,985,000 Tennessee Housing Development Agency, Homeownership
Program, Alternative Minimum Tax, 7.650%, 7/01/22 7/01 at 102 A1 10,674,464
TEXAS - 8.6%
9,505,000 Austin Water, Sewer and Electric, 14.250%, 11/15/06
(Pre-refunded to 5/15/97) 5/97 at 100 Aaa 10,940,065
Brazos River Authority, Pollution Control (Texas Utilities
Electric Company), Alternative Minimum Tax:
6,480,000 8.250%, 1/01/19 1/99 at 102 Baa2 7,228,181
8,580,000 8.125%, 2/01/20 2/00 at 102 Baa2 9,527,318
3,500,000 Comal County Health Facilities Development
Corporation (McKenna Memorial Hospital),
7.375%, 1/15/21 1/01 at 102 AAA 3,691,065
15,205,000 El Paso Housing Finance Corporation, Single Family
Mortgage, 8.750%, 10/01/11 4/01 at 103 A 16,918,604
3,505,000 Harrison County Housing Finance Corporation, Single
Family Mortgage, 8.875%, 12/01/11 12/01 at 103 N/R 3,787,678
2,395,000 Panhandle Regional Housing Finance Corporation, Single
Family Mortgage (GNMA), Alternative Minimum Tax,
7.500%, 5/01/24 5/01 at 100 AAA 2,514,415
2,600,000 Sabine River Authority, Pollution Control (Texas Utilities
Electric Company), 7.750%, 4/01/16 4/96 at 102 Baa2 2,689,830
7,020,000 Winter Garden Housing Finance Corporation (GNMA
and FNMA), Alternative Minimum Tax,
6.950%, 10/01/27 4/04 at 103 AAA 7,433,969
UTAH - 2.9%
Intermountain Power Agency:
4,500,000 7.500%, 7/01/16 7/96 at 102 Aa 4,687,920
16,145,000 7.200%, 7/01/19 7/97 at 102 Aa 17,046,052
WASHINGTON - 9.1%
Washington Public Power Supply System, Nuclear
Project No. 1:
4,000,000 7.400%, 7/01/09 1/00 at 102 Aa 4,421,000
1,000,000 8.000%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 1,168,470
Washington Public Power Supply System, Nuclear
Project No. 2:
5,000,000 5.375%, 7/01/11 7/04 at 102 Aa 4,770,400
2,000,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 2,284,680
5,000,000 7.000%, 7/01/12 7/00 at 102 Aa 5,353,300
10,010,000 6.250%, 7/01/12 7/02 at 102 Aa 10,199,890
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
Washington Public Power Supply System Nuclear
Project No. 3:
$ 24,060,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa $ 27,181,785
3,935,000 5.375%, 7/01/15 7/03 at 102 Aa 3,655,063
Seattle Metropolitan Municipality Sewer System:
2,160,000 5.450%, 1/01/16 1/03 at 102 Aaa 2,099,346
3,095,000 5.450%, 1/01/17 1/03 at 102 Aaa 3,017,005
2,490,000 5.450%, 1/01/19 1/03 at 102 Aaa 2,414,950
1,800,000 5.450%, 1/01/20 1/03 at 102 Aaa 1,744,631
WISCONSIN - 0.3%
2,100,000 Wisconsin Health and Educational Facilities Authority
(Wausau Hospitals), 6.700%, 8/15/20 2/01 at 102 Aaa 2,244,080
$681,616,644 Total Investments - (cost $676,710,410) - 97.1% 728,249,671
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.3%
$ 4,800,000 Chicago O'Hare International Airport (American Airlines),
Variable Rate Demand Bonds, 4.100%, 12/01/17t VMIG-1 4,800,000
700,000 Delaware County Industrial Development Authority,
Airport Facility (UPS), Variable Rate Demand Bonds,
3.800%, 12/01/15t A-1+ 700,000
1,300,000 Harris County Health Facilities Development
Corporation (The Methodist Hospital), Variable Rate
Demand Bonds, 4.000%, 12/01/25t A-1+ 1,300,000
1,500,000 Jackson County Port Facility (Chevron U. S. A. Inc.),
Series 1993, Variable Rate Demand Bonds,
3.900%, 6/01/23t P-1 1,500,000
1,000,000 Louisiana Recovery District Sales Tax, Variable Rate
Demand Bonds, 3.900%, 7/01/98t VMIG-1 1,000,000
500,000 New York City Municipal Water Finance Authority,
Water and Sewer System, Fiscal 1996,
Series A, Variable Rate Demand Bonds, 4.000%, 6/15/25t VMIG-1 500,000
$ 9,800,000 Total Temporary Investments - 1.3% 9,800,000
============
Other Assets Less Liabilities - 1.6% 11,833,445
Net Assets - 100% $749,883,116
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 51 $330,113,642 45%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 21 138,057,393 19
PORTFOLIO OF A+ A1 7 45,548,986 6
INVESTMENTS A, A- A, A2, A3 7 71,445,859 10
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 17 115,761,240 16
TEMPORARY Non-rated Non-rated 6 27,322,551 4
INVESTMENTS):
TOTAL 109 $728,249,671 100%
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t 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.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. (NQU)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 1.0%
$ 2,480,000 Alaska Housing Finance Corporation (Veterans Mortgage
Program), 7.125%, 12/01/30 6/01 at 102 Aaa $ 2,613,870
1,705,000 Alaska Housing Finance Corporation, Collateralized
Home Mortgage, 7.300%, 6/01/25 12/01 at 102 Aaa 1,748,699
6,750,000 Alaska State Housing Finance Corporation,
6.600%, 12/01/23 12/02 at 102 Aa 7,227,023
ARIZONA - 0.8%
2,840,000 Maricopa County Industrial Development Authority,
Single Family Mortgage, 7.500%, 8/01/12 8/01 at 102 Aa 3,041,640
5,715,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 A- 6,447,720
ARKANSAS - 1.8%
5,175,000 Arkansas Development Finance Authority, Single Family
Mortgage, 8.000%, 8/15/11 8/01 at 103 AA 5,664,141
6,500,000 Arkansas Development Finance Authority, Single Family
Mortgage, Alternative Minimum Tax, 6.700%, 7/01/27 7/05 at 102 AAA 6,744,465
9,400,000 Pope County Pollution Control (Arkansas Power and
Light Company), 11.000%, 12/01/15 12/95 at 102 Baa2 9,639,888
CALIFORNIA - 8.3%
3,000,000 California Health Facilities Financing Authority (Kaiser
Permanente), 5.600%, 5/01/33 5/03 at 102 Aa3 2,794,470
4,310,000 California Housing Finance Agency, Home Mortgage,
Alternative Minimum Tax, 7.050%, 8/01/27 8/01 at 102 Aa 4,486,495
3,500,000 California Public Works Board (California State
University), 6.625%, 10/01/10 10/02 at 102 A 3,682,420
17,000,000 California State Public Works Board, Department of
Corrections (California State Prison-Monterey County
(Soledad II)), 7.000%, 11/01/19 11/04 at 102 A 18,511,640
Brea Public Financing Authority, Tax Allocation:
10,580,000 7.000%, 8/01/15 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 12,151,236
4,420,000 7.000%, 8/01/15 8/01 at 102 Aaa 4,877,558
4,500,000 Lancaster Redevelopment Agency (Project No. 5),
6.500%, 10/01/97 No Opt. Call A- 4,543,650
4,000,000 Lancaster Redevelopment Agency (Amargosa Project),
6.500%, 10/01/97 No Opt. Call A- 4,038,800
5,000,000 Los Angeles Community Redevelopment Agency, Tax
Allocation (Central Business District), 6.750%, 7/01/10 7/96 at 102 A- 5,132,500
Los Angeles Department of Water and Power:
7,550,000 5.400%, 11/15/31 11/03 at 102 Aa 6,962,384
5,000,000 6.500%, 4/15/32 4/02 at 102 Aa 5,178,800
12,305,000 Northern California Power Agency, 7.150%, 7/01/24 7/98 at 102 A 13,298,629
2,000,000 Redwood City Public Finance Authority, 7.250%, 7/15/11 7/01 at 102 A- 2,173,380
10,000,000 San Diego (San Diego Gas and Electric Company),
5.900%, 9/01/18 9/03 at 102 Aaa 9,968,000
3,375,000 Southern California Home Financing Authority, Single
Family Mortgage (GNMA and FNMA), Alternative
Minimum Tax, 7.350%, 9/01/24 3/01 at 102 AAA 3,587,828
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 6.2%
$ 4,690,000 Colorado Housing Finance Authority, Multi-Family
Insured Mortgage, 6.900%, 10/01/21 No Opt. Call Aa $ 4,700,459
City and County of Denver Airport System, Alternative
Minimum Tax:
4,000,000 7.300%, 11/15/00 No Opt. Call Baa 4,354,200
1,500,000 6.350%, 11/15/01 No Opt. Call Baa 1,573,350
4,000,000 7.750%, 11/15/21 11/01 at 102 Baa 4,407,160
12,910,000 8.750%, 11/15/23 11/01 at 102 Baa 15,135,813
9,535,000 8.500%, 11/15/23 11/00 at 102 Baa 10,867,230
17,350,000 8.000%, 11/15/25 11/00 at 102 Baa 19,349,414
4,140,000 8.000%, 11/15/25 11/01 at 100 Baa 4,621,730
4,850,000 7.000%, 11/15/25 11/01 at 100 Baa 4,931,917
5,110,000 Pueblo County (Parkview Episcopal Medical Center),
8.300%, 9/01/11 9/01 at 100 Baa1 5,651,558
DISTRICT OF COLUMBIA - 0.5%
6,215,000 District of Columbia (The Howard University),
6.750%, 10/01/12 10/02 at 102 AA- 6,415,620
FLORIDA - 3.2%
5,250,000 Dade County Industrial Development Authority, Solid
Waste (Florida Power and Light Company), Alternative
Minimum Tax, 7.150%, 2/01/23 2/01 at 102 A2 5,611,935
Palm Beach County Health Facilities Authority (JFK
Medical Center):
8,195,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 BBB 9,388,520
5,675,000 8.875%, 12/01/18 12/98 at 102 BBB 6,372,401
8,485,000 St. Lucie County, Solid Waste Disposal (Florida Power
and Light Company), Alternative Minimum Tax,
7.150%, 2/01/23 2/01 at 102 A2 9,069,956
Tampa Capital Improvement Program:
1,665,000 8.000%, 10/01/02 10/98 at 100 Aa 1,817,780
5,830,000 8.250%, 10/01/18 10/98 at 100 AA 6,396,793
GEORGIA - 3.2%
9,000,000 Georgia Municipal Electric Authority, 8.125%, 1/01/17 1/98 at 102 A 9,837,810
Clayton County Hospital Authority (Southern Regional
Medical Center):
2,900,000 6.500%, 8/01/10 8/01 at 102 Aaa 3,099,027
4,500,000 7.000%, 8/01/13 8/01 at 102 Aaa 4,965,840
3,000,000 Clayton County Housing Authority, 8.125%, 12/01/05
(Mandatory put 12/01/97) 8/01 at 102 Baa1 3,127,050
15,900,000 Fulton-DeKalb Hospital Authority, 6.900%, 1/01/20
(Pre-refunded to 1/01/01) 1/01 at 102 Aaa 17,948,238
ILLINOIS - 7.8%
3,500,000 Illinois Development Finance Authority, Pollution
Control (Commonwealth Edison Company),
5.300%, 1/15/04 No Opt. Call Baa2 3,495,100
6,855,000 Illinois Development Finance Authority, Multi-Family
Housing (Town and Garden Apartments Project),
Alternative Minimum Tax, 7.800%, 3/01/06 3/02 at 102 BBB+ 7,248,957
14,500,000 Illinois Health Facilities Authority (Northwestern
Memorial Hospital), 6.750%, 8/15/11 8/01 at 102 Aa 15,398,420
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 4,000,000 Illinois Health Facilities Authority (Sherman Hospital),
6.750%, 8/01/21 8/01 at 102 Aaa $ 4,243,000
Illinois Health Facilities Authority (Rockford Memorial
Hospital):
2,000,000 6.750%, 8/15/18 8/01 at 102 Aaa 2,122,000
5,265,000 6.000%, 8/15/21 8/01 at 100 Aaa 5,296,327
2,840,000 Illinois Housing Development Authority (Garden House
of Maywood), 7.000%, 9/01/18 9/02 at 102 A 2,988,475
Central Lake County, Joint Action Water Agency:
6,000,000 7.000%, 5/01/19 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 6,739,740
10,000,000 7.000%, 5/01/20 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 11,399,500
6,785,000 Chicago O'Hare International Airport (United Airlines
Project), 8.850%, 5/01/18 11/00 at 103 Baa1 7,735,850
24,430,000 Cook County General Obligation, 6.750%, 11/01/18
(Pre-refunded to 11/01/01) 11/01 at 102 Aaa 27,763,474
INDIANA - 1.3%
5,905,000 Indiana Health Facilities Financing Authority
(Community Hospitals of Indiana), 7.000%, 7/01/11 7/01 at 102 Aaa 6,488,768
4,000,000 Indianapolis Local Public Improvement Bond Bank,
6.500%, 2/01/22 2/98 at 100 A+ 4,070,880
5,125,000 Petersburg Pollution Control (Indianapolis Power and
Light Company), 6.625%, 12/01/24 12/04 at 102 Aa2 5,415,280
IOWA - 0.4%
4,500,000 Polk County Insured Health Facilities (Mercy Health
Center of Central Iowa), 6.750%, 11/01/15 11/01 at 101 Aaa 4,834,530
KANSAS - 1.6%
1,315,000 Labette County and Cowley County, Single Family
Mortgage, 9.500%, 4/01/13 10/01 at 103 Aaa 1,428,971
Merriam (Shawnee Mission Medical Center):
7,380,000 7.250%, 9/01/11 9/01 at 102 A- 7,760,808
10,000,000 7.250%, 9/01/21 9/01 at 102 A- 10,342,000
KENTUCKY - 3.1%
3,000,000 Kentucky Development Finance Authority (St. Claire
Medical Center), 7.125%, 9/01/21 (Pre-refunded
to 9/01/01) 9/01 at 102 N/R 3,421,170
10,225,000 Kentucky Housing Corporation, Alternative Minimum
Tax, 6.625%, 7/01/26 1/05 at 102 Aaa 10,562,016
10,000,000 Danville Multi-City Lease (Louisville and Jefferson
County Metropolitan Sewer), 6.800%, 3/01/19
(Pre-refunded to 3/01/02) 3/02 at 102 Aaa 11,387,500
2,965,000 Greater Kentucky Housing Assistance Corporation
(FHA-Insured), 7.625%, 1/01/25 1/00 at 102 Aaa 3,170,445
9,100,000 Jefferson County Multi-Family Housing (Cantor Chase
Project), 6.750%, 10/01/21 (Mandatory put 10/01/98) 10/96 at 100 Baa1 9,205,560
MARYLAND - 2.4%
Maryland Community Development Administration,
Department of Housing and Community Development,
Alternative Minimum Tax:
13,235,000 7.450%, 4/01/20 4/01 at 102 Aa 14,175,479
4,320,000 7.450%, 4/01/32 4/01 at 102 Aa 4,578,984
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MARYLAND (CONTINUED)
$ 10,000,000 Maryland Community Development Administration,
Multi-Family Housing, 7.100%, 5/15/28 5/01 at 102 Aa $ 10,584,400
MASSACHUSETTS - 4.4%
Massachusetts Bay Transportation Authority:
10,225,000 7.000%, 3/01/11 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 11,622,144
19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 22,278,144
15,000,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), 9.000%, 7/01/15 7/01 at 103 N/R 16,448,700
3,300,000 Massachusetts Industrial Finance Agency Resource
Recovery (SEMASS Project), Alternative Minimum Tax,
9.250%, 7/01/15 7/01 at 103 N/R 3,635,346
MICHIGAN - 3.4%
5,000,000 Michigan Hospital Finance Authority (Detroit Medical
Center), 7.500%, 8/15/11 8/01 at 102 A 5,476,350
17,875,000 Michigan Strategic Fund (The Detroit Edison Company),
6.875%, 12/01/21 12/01 at 102 Aaa 19,567,048
8,500,000 Michigan Strategic Fund (Waste Management, Inc.),
Alternative Minimum Tax, 6.625%, 12/01/12 12/02 at 102 A1 8,861,250
7,000,000 Grand Rapids Water Supply System, 6.250%, 1/01/11 1/01 at 102 Aaa 7,359,730
MINNESOTA - 1.1%
4,935,000 Minnesota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax, 6.950%, 7/01/26 1/04 at 102 AA+ 5,180,121
3,655,000 Dakota and Washington Counties, Anoka Housing
Authority (GNMA), Alternative Minimum Tax,
8.450%, 9/01/19 No Opt. Call Aaa 4,897,006
2,475,000 Washington County Housing and Redevelopment
Authority, Multi-Family Housing (FHA-Insured),
Alternative Minimum Tax, 7.650%, 8/01/32 8/01 at 102 AAA 2,668,397
MISSISSIPPI - 0.6%
3,440,000 Canton Housing Development Corporation (Canton
Estates), Multi-Family Mortgage, 7.750%, 8/01/24 No Opt. Call AAA 4,210,044
1,260,000 Charter Mortgage Corporation (Church Garden Project),
Multi-Family Mortgage, 7.750%, 8/01/21 8/01 at 100 AAA 1,503,898
1,380,000 Pearl Housing Development Corporation (Rose Garden
Project), Multi-Family Mortgage, 7.750%, 8/01/22 2/01 at 100 AAA 1,459,033
MISSOURI - 1.8%
Missouri Health and Educational Facilities Authority
(Heartland Health Systems):
3,070,000 7.625%, 10/01/00 10/99 at 102 1/2 BBB+ 3,470,543
6,500,000 8.125%, 10/01/10 10/99 at 102 1/2 BBB+ 7,463,495
Jackson County Industrial Development Authority (Saint
Joseph Health Center):
5,730,000 6.500%, 7/01/12 7/02 at 102 Baa1 5,858,696
5,605,000 7.000%, 7/01/22 7/02 at 102 Baa1 5,673,101
MONTANA - 0.6%
7,000,000 Forsyth Pollution Control (Puget Sound Power and Light
Company), 7.050%, 8/01/21 8/01 at 102 Aaa 7,849,660
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEBRASKA - 1.6%
Nebraska Investment Finance Authority, Single Family
Mortgage, Alternative Minimum Tax:
$ 11,000,000 6.800%, 3/01/35 3/05 at 101 1/2 AAA $ 11,412,390
8,000,000 6.450%, 3/01/35 3/05 at 101 1/2 AAA 8,166,800
NEW HAMPSHIRE - 0.6%
2,625,000 New Hampshire Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
8.500%, 7/01/14 7/98 at 103 Aa 2,808,960
4,705,000 New Hampshire Housing Finance Authority, Single
Family Mortgage, 7.100%, 1/01/23 7/01 at 102 Aa 4,968,527
NEW JERSEY - 1.1%
13,000,000 Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resource Recovery System),
7.250%, 12/01/10 12/01 at 102 BBB+ 13,358,150
NEW YORK - 11.0%
21,075,000 New York Local Government Assistance Corporation,
7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 24,569,657
4,400,000 New York State Medical Care Finance Agency,
6.200%, 8/15/15 8/05 at 102 Aa 4,503,004
4,250,000 New York State Medical Care Facilities Finance Agency
(St. Charles Hospital), 6.300%, 8/15/25 8/05 at 102 Aa 4,348,940
8,000,000 New York State Medical Care Facilities Finance Agency
(New York Hospital) (FHA-Insured), 6.500%, 8/15/29 2/05 at 102 Aaa 8,516,320
5,000,000 New York State Medical Care Facilities Finance Agency
(Brookdale Hospital Medical Center), 6.850%, 2/15/17 2/05 at 102 Baa1 5,231,500
8,000,000 New York State Thruway Authority, 6.000%, 1/01/25 1/05 at 102 Aaa 8,139,280
11,750,000 Dormitory Authority of the State of New York (State
University), 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 13,580,180
13,000,000 Dormitory Authority of the State of New York,
Educational Facilities (State University),
7.400%, 5/15/01 5/00 at 102 Baa1 14,454,830
8,325,000 Dormitory Authority of the State of New York (Menorah
Campus), 7.400%, 2/01/31 8/01 at 102 AA 9,293,114
2,200,000 Niagara Falls Housing and Commercial Rehabilitation
Corporation (FHA-Insured), Assisted Project,
7.350%, 8/01/23 8/03 at 100 AA 2,513,500
New York City General Obligation:
5,500,000 3.000%, 8/15/02 No Opt. Call Baa1 4,659,435
9,500,000 6.400%, 8/01/03 8/02 at 101 1/2 Baa1 9,844,755
6,000,000 6.750%, 10/01/17 10/02 at 101 1/2 Baa1 6,220,980
2,090,000 7.000%, 2/01/18 2/02 at 101 1/2 Baa1 2,205,013
5,500,000 7.250%, 8/15/19 8/04 at 101 Baa1 5,986,475
6,750,000 6.625%, 2/15/25 2/05 at 101 Baa1 6,932,723
3,455,000 Penfield-Crown Oak Housing Development Corporation,
FHA-Insured (Crown-Oak Estates), 7.350%, 8/01/23 2/03 at 100 AAA 3,677,502
NORTH CAROLINA - 0.9%
10,500,000 North Carolina Eastern Municipal Power Agency,
6.250%, 1/01/03 1/02 at 102 A 10,791,375
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
OHIO - 1.0%
$ 6,945,000 Ohio Housing Finance Agency, Residential Mortgage,
Alternative Minimum Tax, 6.625%, 3/01/26 3/05 at 102 AAA $ 7,142,099
4,800,000 Butler County Hospital Facilities (Fort Hamilton-
Hughes Memorial Hospital), 7.500%, 1/01/10 1/02 at 102 Baa 5,027,376
OKLAHOMA - 5.7%
19,790,000 Oklahoma County Home Finance Authority, Single
Family Mortgage, 8.750%, 7/01/12 7/01 at 102 A1 21,096,932
17,510,000 Pottawatomie County Home Finance Authority, Single
Family Mortgage, 8.625%, 7/01/10 No Opt. Call Aaa 23,411,746
Tulsa Municipal Airport Trust (American Airlines):
10,000,000 7.375%, 12/01/20 12/00 at 102 Baa2 10,530,200
10,100,000 7.600%, 12/01/30 6/01 at 102 Baa2 10,768,519
3,770,000 Tulsa Municipal Airport Trust (AMR Corporation),
9.500%, 6/01/20 12/95 at 102 Baa2 3,866,135
OREGON - 0.8%
8,125,000 Hillsboro Hospital Facility Authority (Tuality Healthcare),
5.750%, 10/01/12 10/04 at 102 BBB+ 7,752,875
2,500,000 Northern Wasco County People's Utility District,
5.625%, 12/01/22 12/05 at 101 Aaa 2,492,975
PENNSYLVANIA - 0.7%
Falls Township Hospital Authority (Delaware Valley
Medical Center):
4,525,000 6.900%, 8/01/11 8/02 at 102 AAA 4,795,369
3,000,000 7.000%, 8/01/22 8/02 at 102 AAA 3,193,140
RHODE ISLAND - 0.5%
5,260,000 Rhode Island Housing and Mortgage Finance Corporation,
8.250%, 10/01/08 4/98 at 102 A1 5,623,150
SOUTH CAROLINA - 0.6%
6,500,000 Lexington County Health Service District,
6.750%, 10/01/18 10/01 at 102 Aaa 7,097,870
TENNESSEE - 1.5%
6,880,000 Metropolitan Government, Nashville and Davidson
County, Water and Sewer System, 7.000%, 1/01/14 1/96 at 102 A1 7,061,357
10,300,000 Metropolitan Nashville Airport Authority,
6.625%, 7/01/07 7/01 at 102 Aaa 11,376,865
TEXAS - 6.6%
14,360,000 Alliance Airport Authority (American Airlines),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 15,237,252
Arlington Independent School District, General
Obligation:
11,635,000 0.000%, 2/15/11 2/05 at 72 Aaa 4,812,818
13,985,000 0.000%, 2/15/14 2/05 at 58 11/16 Aaa 4,617,707
5,000,000 Brazos River Authority (Houston Lighting and Power
Project), 7.750%, 10/01/15 10/98 at 102 A3 5,473,750
5,600,000 Dallas-Fort Worth International Airport (American
Airlines, Inc.), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 5,920,600
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 12,750,000 Fort Worth Housing Finance Corporation,
8.500%, 10/01/11 10/01 at 103 Aa $ 14,013,015
2,910,000 Galveston Property Finance Authority, Single Family
Mortgage, 8.500%, 9/01/11 9/01 at 103 N/R 3,208,362
7,765,000 Houston Airport System, Subordinate Lien,
6.625%, 7/01/22 7/01 at 102 Aaa 8,332,233
18,500,000 Houston Water and Sewer System, Junior Lien,
6.375%, 12/01/17 12/01 at 102 Aaa 19,378,010
UTAH - 0.5%
5,890,000 Intermountain Power Agency, 7.000%, 7/01/21 7/99 at 102 Aa 6,341,940
VERMONT - 0.7%
Vermont Housing Finance Agency, Single Family,
Alternative Minimum Tax:
6,405,000 7.300%, 5/01/25 11/01 at 102 A1 6,757,467
1,595,000 6.875%, 5/01/25 11/01 at 102 A1 1,638,847
VIRGINIA - 1.3%
10,500,000 Virginia Housing Development Authority,
7.150%, 1/01/33 1/02 at 102 AA+ 11,068,575
3,860,000 Roanoke Industrial Development Authority (Roanoke
Memorial Hospitals), 6.500%, 7/01/25 (Pre-refunded
to 7/01/00) 7/00 at 100 Aaa 4,205,123
WASHINGTON - 7.5%
4,750,000 Washington Health Care Facilities Authority (Yakima
Valley Memorial Hospital), 7.250%, 1/01/21 1/01 at 102 A 5,014,860
Washington Public Power Supply System, Nuclear
Project No. 2:
4,000,000 5.375%, 7/01/11 7/04 at 102 Aa 3,816,320
14,850,000 7.000%, 7/01/12 7/00 at 102 Aa 15,899,301
14,500,000 Washington Public Power Supply System, Nuclear
Project No. 3, 7.400%, 7/01/09 1/00 at 102 Aa 16,026,125
3,010,000 Camas School District No. 117, General Obligation,
6.000%, 12/01/14 12/05 at 100 Aaa 3,070,260
4,185,000 Douglas County Public Utility District No. 1, Wells
Hydroelectric Project, 8.750%, 9/01/18 9/06 at 106 A+ 5,425,099
12,415,000 King County School District No. 210, Federal Way,
General Obligation, 6.950%, 12/01/11 12/03 at 100 A 13,337,559
Municipality of Metropolitan Seattle, Limited Sales Tax,
General Obligation:
9,810,000 6.625%, 1/01/11 1/97 at 102 Aa 10,139,420
10,310,000 6.875%, 1/01/20 1/97 at 102 Aa 10,656,416
4,000,000 Seattle Metropolitan Municipality, Sewer System,
5.500%, 1/01/33 1/03 at 102 Aaa 3,843,920
4,000,000 North Thurston School District No. 3, General
Obligation, 6.500%, 12/01/09 12/02 at 100 A 4,230,600
WISCONSIN - 1.6%
10,820,000 Wisconsin Health and Educational Facilities Authority
(Novus Health Group), 6.750%, 12/15/20 12/01 at 102 Aaa 11,660,603
7,000,000 Wisconsin Housing and Economic Development
Authority, 6.850%, 11/01/12 1/02 at 102 A1 7,360,500
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WYOMING - 0.6%
$ 2,390,000 Wyoming Community Development Authority, Single
Family Mortgage, 7.400%, 6/01/31 6/01 at 102 Aa $ 2,560,931
4,500,000 Wyoming Community Development Authority, Single
Family Mortgage, Alternative Minimum Tax,
7.250%, 6/01/21 11/01 at 103 Aa 4,785,253
$1,126,525,000 Total Investments - (cost $1,112,541,872) - 98.3% 1,197,752,261
==============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 1,900,000 Massachusetts Dedicated Income Tax, Variable Rate
============== Demand Bonds, 3.700%, 12/01/97t VMIG-1 1,900,000
Other Assets Less Liabilities - 1.6% 19,252,560
Net Assets - 100% $1,218,904,821
==============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 54 $ 444,049,003 37%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 33 233,761,630 20
PORTFOLIO OF A+ A1 9 67,895,482 6
INVESTMENTS A, A- A, A2, A3 20 147,764,217 12
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 37 277,568,351 23
TEMPORARY Non-rated Non-rated 4 26,713,578 2
INVESTMENTS):
TOTAL 157 $1,197,752,261 100%
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t 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.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. (NPF)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.0%
$ 4,360,000 Alabama Higher Education Loan Corporation, Student
Loan, Alternative Minimum Tax, 5.850%, 9/01/04 No Opt. Call Aaa $ 4,504,360
ALASKA - 0.5%
2,130,000 Anchorage Home Mortgage, 8.000%, 3/01/09 3/02 at 102 AAA 2,325,215
ARIZONA - 5.7%
5,500,000 Arizona Educational Loan Marketing Corporation,
Alternative Minimum Tax, 6.950%, 3/01/01 No Opt. Call A 5,961,395
3,650,000 Maricopa County Unified School District No. 41,
General Obligation, 6.100%, 7/01/14 (Pre-refunded
to 7/01/04) 7/04 at 100 Aaa 4,037,411
1,250,000 Santa Cruz County Unified School District No. 1,
Nogales General Obligation, 6.100%, 7/01/14
(Pre-refunded to 7/01/04) 7/04 at 100 Aaa 1,376,113
12,255,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 A- 13,826,214
ARKANSAS - 1.5%
2,000,000 Arkansas Development Finance Authority, Single Family
Mortgage, Alternative Minimum Tax, 6.550%, 7/01/18 7/05 at 102 AAA 2,064,020
1,625,000 Arkansas Development Finance Authority, Single Family
Mortgage, 6.600%, 7/01/17 7/05 at 102 AAA 1,705,795
483,546 Drew County Public Facilities Board, Single Family
Mortgage, 7.900%, 8/01/11 8/03 at 103 Aaa 536,615
1,310,000 Greene County Residential Housing Board,
7.250%, 1/01/10 1/02 at 103 Aa 1,411,329
660,823 Stuttgart Public Facilities Board, Single Family
Mortgage, 7.900%, 9/01/11 9/03 at 103 Aaa 734,465
CALIFORNIA - 1.8%
33,000,000 Foothill/Eastern Transportation Corridor Agency,
0.000%, 1/01/17 No Opt. Call BBB- 7,899,210
COLORADO - 1.4%
Colorado Health Facilities Authority (National Jewish
Center):
1,500,000 6.600%, 2/15/02 No Opt. Call BBB- 1,518,240
1,250,000 6.875%, 2/15/12 2/02 at 102 BBB- 1,247,400
3,000,000 7.100%, 2/15/22 2/02 at 102 BBB- 2,943,570
550,000 City and County of Denver Airport System, Alternative
Minimum Tax, 8.100%, 11/15/00 No Opt. Call Con(Baa) 617,045
CONNECTICUT - 0.5%
2,275,000 Connecticut Housing Finance Authority, Alternative
Minimum Tax, 6.900%, 5/15/20 5/04 at 102 Aa 2,373,553
DISTRICT OF COLUMBIA - 3.1%
6,250,000 District of Columbia (National Rehabilitation Hospital),
7.125%, 11/01/19 11/99 at 102 Aaa 6,945,438
2,000,000 District of Columbia (Washington Hospital Center),
7.000%, 8/15/05 8/02 at 102 Baa1 2,069,940
District of Columbia Housing Finance Agency
(FHA-Insured):
920,000 7.200%, 9/01/12 9/02 at 102 Aa 991,714
3,505,000 7.250%, 3/01/24 9/02 at 102 Aa 3,734,858
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
FLORIDA - 0.5%
$ 1,880,000 Florida State Board of Education, 6.700%, 6/01/22 6/01 at 101 Aa $ 2,043,898
GEORGIA - 1.5%
2,000,000 Georgia Municipal Electric Authority, 7.250%, 1/01/24 No Opt. Call Aaa 2,446,600
3,500,000 Forsyth County School District, General Obligation,
6.750%, 7/01/16 No Opt. Call A1 3,972,570
ILLINOIS - 16.2%
Illinois Development Finance Authority, Multi-Family
Housing:
600,000 7.650%, 7/01/07 1/02 at 105 AAA 671,166
5,270,000 7.650%, 12/31/31 1/02 at 105 AAA 5,799,372
9,260,000 Illinois Development Finance Authority, Multi-Family
Housing (Town and Garden Apartments Project),
Alternative Minimum Tax, 7.800%, 3/01/06 3/02 at 102 BBB+ 9,792,172
865,000 Illinois Health Facilities Authority (Evangelical
Hospitals), 6.750%, 4/15/12 4/02 at 102 AA- 905,171
2,150,000 Illinois Health Facilities Authority, 7.000%, 7/01/12 7/02 at 102 Baa1 2,190,205
4,810,000 Illinois Housing Development Authority (Garden House
of Maywood), 7.000%, 9/01/18 9/02 at 102 A 5,061,467
920,000 Illinois Housing Development Authority, Elderly
Housing (Morningside North), 6.600%, 1/01/07 1/03 at 102 A 975,099
Illinois Sales Tax:
2,000,000 6.800%, 6/15/10 6/99 at 102 AAA 2,113,660
6,390,000 6.800%, 6/15/12 (Pre-refunded to 6/15/00) 6/00 at 102 AAA 7,140,633
4,500,000 Chicago General Obligation (Central Public Library
Project), 6.850%, 1/01/17 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 5,144,670
5,200,000 Chicago Tax Increment (Stockyards Industrial
Redevelopment), 9.250%, 1/01/14 No Opt. Call N/R 5,664,672
8,075,000 Cicero General Obligation, Tax Increment,
8.125%, 12/01/12 12/04 at 102 N/R 8,703,558
2,000,000 Onterie Center Housing Finance Corporation
(FHA-Insured), 7.050%, 7/01/27 7/02 at 102 Aaa 2,122,580
2,835,000 Sugar Grove Village Waterworks and Sewerage System,
7.500%, 5/01/17 5/02 at 102 N/R 2,964,333
Wood River Township Hospital General Obligation:
6,000,000 6.625%, 2/01/14 2/04 at 102 BBB 6,179,100
6,115,000 6.500%, 2/01/14 2/04 at 102 BBB 6,240,235
INDIANA - 2.0%
1,580,000 Indiana Housing Finance Authority, 10.200%, 1/01/16 1/96 at 102 1/2 Aa 1,637,702
2,000,000 Indianapolis Exempt Facility (Mid-America Energy
Resources, Inc.), Alternative Minimum Tax,
7.250%, 12/01/11 6/99 at 102 AA- 2,086,220
2,170,000 Mill Creek Community School Building Corporation,
6.125%, 1/01/15 7/02 at 102 A 2,228,438
2,860,000 PHM Elementary/Middle School Building Corporation,
6.300%, 1/15/09 No Opt. Call A 3,079,476
IOWA - 0.4%
1,655,000 Iowa Student Loan Liquidity Corporation, Alternative
Minimum Tax, 5.750%, 12/01/06 12/02 at 102 Aaa 1,684,773
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
KANSAS - 1.0%
$ 4,000,000 Hutchinson Single Family Mortgage, 8.875%, 12/01/12 6/02 at 103 A $ 4,425,760
KENTUCKY - 3.0%
5,000,000 Kentucky Rural Economic Development Authority
(Donnelly Corporation), Alternative Minimum Tax,
8.125%, 7/01/12 7/02 at 102 N/R 5,173,200
7,000,000 Carroll County Pollution Control (Kentucky Utilities
Company), 7.450%, 9/15/16 9/02 at 102 Aa2 7,919,870
LOUISIANA - 0.3%
1,310,000 Louisiana Housing Finance Agency (St. Dominic Assisted
Care Facility), 6.850%, 9/01/25 9/05 at 103 AAA 1,386,845
MAINE - 2.0%
8,470,000 Maine Educational Loan Marketing Corporation,
Alternative Minimum Tax, 6.250%, 11/01/06 No Opt. Call A 8,938,984
MARYLAND - 1.4%
6,000,000 Anne Arundel County, Multi-Family Housing (Woodside
Project), Alternative Minimum Tax, 7.450%, 12/01/24
(Mandatory put 12/01/03) No Opt. Call BBB+ 6,345,840
MASSACHUSETTS - 6.5%
2,450,000 Massachusetts Health and Educational Facilities
Authority (New England Deaconess Hospital),
6.875%, 4/01/22 4/02 at 102 A 2,527,861
3,875,000 Massachusetts Health and Educational Facilities
Authority (Youville Hospital), 6.000%, 2/15/25 2/04 at 102 Aa 3,853,416
9,070,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), Alternative Minimum
Tax, 9.250%, 7/01/15 7/01 at 103 N/R 9,991,693
Massachusetts Municipal Wholesale Electric Company:
945,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 1,034,803
45,000 8.750%, 7/01/18 7/97 at 102 A 53,032
9,780,000 Massachusetts Water Resources Authority,
6.750%, 7/15/12 (Pre-refunded to 7/15/02) 7/02 at 102 Aaa 11,167,489
MICHIGAN - 0.7%
2,500,000 Wayne County Building Authority, Limited Tax
8.000%, 3/01/17 (Pre-refunded to 3/01/02) 3/02 at 102 Baa 2,990,500
MINNESOTA - 2.7%
11,180,000 Northwest Minnesota Multi-County Housing and
Redevelopment Authority, 8.125%, 10/01/26 10/04 at 102 N/R 11,770,080
MISSISSIPPI - 0.4%
8,610,000 Mississippi Home Corporation, 0.000%, 9/15/16 3/04 at 41 11/16 A 1,908,320
NEBRASKA - 4.3%
2,350,000 Nebraska Higher Education Loan Program, Alternative
Minimum Tax, 6.250%, 6/01/18 No Opt. Call Aa 2,365,440
4,145,000 Grand Island Electric System, 6.100%, 9/01/12 9/97 at 100 A1 4,188,191
10,935,000 Omaha Public Power District, 6.500%, 2/01/17
(Pre-refunded to 2/01/02) 2/02 at 101 1/2 AAA 12,219,206
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEVADA - 0.3%
$ 1,255,000 Nevada Housing Division, Alternative Minimum Tax,
8.050%, 10/01/19 No Opt. Call AA $ 1,325,305
NEW HAMPSHIRE - 2.6%
9,200,000 New Hampshire Industrial Development Authority,
Resource Recovery (SES Concord Project),
8.500%, 1/01/09 1/98 at 102 A+ 10,039,684
1,590,000 New Hampshire Municipal Bond Bank (Coe-Brown
Northwood Academy), 7.250%, 5/01/09 No Opt. Call N/R 1,649,705
NEW JERSEY - 1.1%
3,000,000 New Jersey Economic Development Authority
(Bridgewater Resources, Inc.), Alternative Minimum
Tax, 8.375%, 11/01/04 No Opt. Call N/R 3,145,620
1,455,000 New Jersey Educational Facilities Authority (New Jersey
Institute of Technology), 6.000%, 7/01/24 7/04 at 102 Aaa 1,493,485
NEW YORK - 11.9%
5,000,000 New York Local Government Assistance Corporation,
7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 5,829,100
6,000,000 New York State Medical Care Facilities Finance Agency,
Hospital and Nursing Home (FHA-Insured),
6.200%, 8/15/22 8/02 at 102 AAA 6,200,340
8,450,000 New York State Urban Development Corporation, State
Facilities, 7.500%, 4/01/20 4/01 at 102 Baa1 9,418,877
3,000,000 Buffalo Sewer Authority, 7.625%, 7/01/06 (Pre-refunded
to 7/01/96) 7/96 at 103 Aaa 3,165,060
6,500,000 Dormitory Authority of the State of New York (City
University), 7.625%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 7,514,065
New York City General Obligation:
3,500,000 7.500%, 2/01/01 No Opt. Call Baa1 3,820,845
4,000,000 9.500%, 8/01/02 8/01 at 101 1/2 Baa1 4,880,560
1,550,000 6.500%, 8/01/02 No Opt. Call Baa1 1,637,141
1,000,000 7.000%, 8/01/04 No Opt. Call Baa1 1,085,600
3,080,000 6.600%, 8/01/04 No Opt. Call Baa1 3,270,744
3,000,000 8.400%, 11/15/05 11/01 at 101 1/2 A- 3,529,260
2,000,000 6.625%, 8/01/12 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 2,278,380
100,000 6.625%, 8/01/12 8/02 at 101 1/2 Aaa 107,800
NORTH CAROLINA - 0.5%
2,130,000 North Carolina Housing Finance Agency, Multi-Family
Housing, 6.900%, 7/01/24 7/02 at 102 Aa 2,232,922
OHIO - 5.9%
14,800,000 Ohio Housing Finance Agency, Single Family Mortgage
(GNMA), Alternative Minimum Tax, 7.650%, 3/01/29 9/99 at 102 AAA 15,489,384
8,500,000 Akron-Bath-Copley Joint Township Hospital District
(Akron City Hospital), 8.875%, 11/15/07
(Pre-refunded to 11/15/97) 11/97 at 102 Aaa 9,457,695
1,015,000 Toledo-Lucas County Port Authority, Alternative
Minimum Tax, 7.750%, 5/15/07 5/00 at 102 N/R 1,068,176
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA - 4.5%
$ 2,000,000 Falls Township Hospital Authority (Delaware Valley
Medical Center), 7.000%, 8/01/22 8/02 at 102 AAA $ 2,128,760
1,545,000 Northampton County Hospital Authority (Easton
Hospital), 6.900%, 1/01/02 No Opt. Call BBB 1,605,950
7,690,000 Philadelphia Water and Sewer System, 7.350%, 9/01/04 No Opt. Call AAA 8,696,467
Philadelphia Hospital and Higher Educational Facilities
Authority (Children's Seashore House):
2,500,000 7.000%, 8/15/12 8/02 at 102 A- 2,656,250
4,450,000 7.000%, 8/15/22 8/00 at 100 A- 4,703,294
TEXAS - 3.8%
4,402,241 Texas General Services Commission, 7.500%, 9/01/22 3/96 at 102 1/2 A 4,595,984
9,500,000 Harris County Health Facilities Development Corporation,
7.375%, 12/01/25 (Mandatory put 12/01/98) 11/95 at 101 Aa2 9,617,610
2,345,000 Victoria Housing Finance Corporation, Single Family
Mortgage, 8.125%, 1/01/11 No Opt. Call Aaa 2,531,545
UTAH - 0.4%
1,500,000 Intermountain Power Agency, 7.750%, 7/0/17
(Pre-refunded to 7/01/96) 7/96 at 102 Aaa 1,568,595
VIRGINIA - 2.0%
5,000,000 Virginia Housing Development Authority,
7.100%, 1/01/22 1/02 at 102 AA+ 5,264,750
3,200,000 Suffolk Redevelopment Authority, Multi-Family Housing
(Chase Heritage Project), 7.000%, 7/01/24 (Mandatory
put 7/01/04) 7/02 at 104 N/R 3,447,040
WASHINGTON - 3.4%
9,500,000 Washington General Obligation, 6.250%, 2/01/11 No Opt. Call Aa 10,274,155
2,500,000 Washington Health Care Facilities Authority (Sacred
Heart Medical Center Spokane), 6.875%, 2/15/12 2/02 at 102 AA- 2,644,274
2,000,000 Washington Public Power Supply System, Nuclear
Project No. 3, 7.375%, 7/01/04 7/00 at 102 Aa 2,223,560
WEST VIRGINIA - 0.5%
2,000,000 West Virginia Housing Development Fund, Alternative
Minimum Tax, 7.200%, 11/01/20 5/02 at 102 Aa1 2,109,000
WISCONSIN - 2.1%
5,950,000 Wisconsin Housing and Economic Development
Authority, 6.850%, 11/01/12 1/02 at 192 A1 6,256,424
2,985,000 Silver Lake Sanitary District Sewer System,
8.000%, 10/01/18 10/02 at 100 N/R 3,142,010
WYOMING - 1.0%
4,000,000 Wyoming Community Development Authority,
Alternative Minimum Tax, 7.750%, 6/01/09 11/99 at 103 Aa 4,276,360
$434,966,610 Total Investments - (cost $408,395,019) - 98.4% 434,313,976
============
Other Assets Less Liabilities - 1.6% 7,067,081
Net Assets - 100% $441,381,057
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 34 $143,621,905 33%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 20 69,291,107 16
PORTFOLIO OF A+ A1 4 24,456,869 6
INVESTMENTS: A, A- A, A2, A3 15 64,470,834 15
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 19 75,753,174 17
Non-rated Non-rated 11 56,720,087 13
TOTAL 103 $434,313,976 100%
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $781,846,301 $728,249,671 $1,197,752,261 $434,313,976
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 9,700,000 9,800,000 1,900,000 --
Cash 88,783 112,367 298,905 231,778
Receivables:
Interest 16,397,516 14,297,804 24,360,706 8,696,080
Investments sold 90,890 1,160,853 378,804 25,000
Prepaid Preferred shares auction fees (note 1) 118,051 86,053 145,384 162,160
Other assets 28,746 16,608 26,338 29,627
----------- ----------- ------------- ------------
Total assets 808,270,287 753,723,356 1,224,862,398 443,458,621
----------- ----------- ------------- ------------
Liabilities
Accrued expenses:
Management fees (note 6) 427,811 398,895 640,554 238,162
Other 150,966 160,266 309,158 89,181
Preferred share dividends payable 301,649 462,951 469,711 90,048
Common share dividends payable 3,168,703 2,818,128 4,538,154 1,660,173
----------- ----------- ------------- ------------
Total liabilities 4,049,129 3,840,240 5,957,577 2,077,564
----------- ----------- ------------- ------------
Net assets (note 7) $804,221,158 $749,883,116 $1,218,904,821 $441,381,057
============ ============ ============== ============
Preferred shares, at liquidation value $250,000,000 $240,000,000 $ 400,000,000 $140,000,000
============ ============ ============== ============
Preferred shares outstanding 10,000 9,600 16,000 5,600
============ ============ ============== ============
Common shares outstanding 35,404,502 33,350,630 53,077,819 19,647,018
============ ============ ============== ============
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by Common
shares outstanding) $ 15.65 $ 15.29 $ 15.43 $ 15.34
============ ============ ============== ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended October 31, 1995
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $53,172,031 $48,973,295 $ 78,822,955 $28,499,545
----------- ----------- ------------ -----------
Expenses:
Management fees (note 6) 4,932,960 4,580,520 7,354,644 2,728,455
Preferred shares--auction fees 653,611 650,000 1,072,158 379,167
Preferred shares--dividend disbursing agent fees 48,996 40,000 55,152 20,000
Shareholders' servicing agent fees and expenses 110,787 94,408 156,459 57,849
Custodian's fees and expenses 100,010 91,429 128,964 57,166
Directors' fees and expenses (note 6) 3,134 2,980 11,461 1,918
Professional fees 43,405 23,083 19,564 38,088
Shareholders' reports--printing and mailing expenses 164,446 190,596 271,299 103,060
Stock exchange listing fees 22,793 35,369 57,438 15,665
Investor relations expense 47,663 41,330 62,277 21,046
Other expenses 47,134 36,492 71,194 29,481
----------- ----------- ------------ -----------
Total expenses 6,174,939 5,786,207 9,260,610 3,451,895
----------- ----------- ------------ -----------
Net investment income 46,997,092 43,187,088 69,562,345 25,047,650
----------- ----------- ------------ -----------
Realized and Unrealized Gain (Loss)
from Investments
Net realized gain (loss) from investment transactions (note 3) (315,370) (424,861) (757,201) 10,181
Net change in unrealized appreciation or depreciation
of investments 37,219,824 43,774,909 67,418,921 26,319,291
----------- ----------- ------------ -----------
Net gain from investments 36,904,454 43,350,048 66,661,720 26,329,472
----------- ----------- ------------ -----------
Net increase in net assets from operations $83,901,546 $86,537,136 $136,224,065 $51,377,122
=========== =========== ============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NQM NQS
Year ended Year ended Year ended Year ended
10/31/95 10/31/94 10/31/95 10/31/94
<S> <C> <C> <C> <C>
Operations
Net investment income $ 46,997,092 $ 46,705,099 $ 43,187,088 $ 43,574,518
Net realized gain (loss) from investment transactions (315,370) 101,899 (424,861) (6,626,291)
Net change in unrealized appreciation or depreciation
of investments 37,219,824 (62,309,886) 43,774,909 (61,883,373)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations 83,901,546 (15,502,888) 86,537,136 (24,935,146)
------------ ------------ ------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (38,289,980) (39,478,158) (34,858,659) (35,968,688)
Preferred shareholders (10,113,285) (8,586,021) (9,685,635) (8,310,298)
From accumulated net realized gains from investment
transactions:
Common shareholders -- -- -- (572,641)
Preferred shareholders -- -- -- (92,880)
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (48,403,265) (48,064,179) (44,544,294) (44,944,507)
------------ ------------ ------------ ------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions from net investment income
and from net realized gains from investment transactions -- 3,359,186 502,250 3,844,871
------------ ------------ ------------ ------------
Net increase in net assets derived from capital share transactions -- 3,359,186 502,250 3,844,871
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 35,498,281 (60,207,881) 42,495,092 (66,034,782)
Net assets at beginning of year 768,722,877 828,930,758 707,388,024 773,422,806
------------ ------------ ------------ ------------
Net assets at end of year $804,221,158 $768,722,877 $749,883,116 $707,388,024
============ ============ ============ ============
Balance of undistributed net investment income at end of year $ 1,163,384 $ 2,569,557 $ 1,038,166 $ 2,395,372
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NQU NPF
Year ended Year ended Year ended Year ended
10/31/95 10/31/94 10/31/95 10/31/94
<S> <C> <C> <C> <C>
Operations
Net investment income $ 69,562,345 $ 69,987,269 $ 25,047,650 $ 24,655,054
Net realized gain (loss) from investment transactions (757,201) (5,529,513) 10,181 1,363,161
Net change in unrealized appreciation or depreciation
of investments 67,418,921 (107,979,689) 26,319,291 (37,983,881)
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets from operations 136,224,065 (43,521,933) 51,377,122 (11,965,666)
-------------- -------------- ------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (54,776,337) (58,082,228) (19,804,205) (20,432,905)
Preferred shareholders (16,271,551) (13,580,513) (5,394,964) (4,672,674)
From accumulated net realized gains from investment
transactions:
Common shareholders -- (1,124,003) (1,104,163) (216,118)
Preferred shareholders -- (211,980) (259,084) (41,510)
-------------- -------------- ------------ ------------
Decrease in net assets from distributions to shareholders (71,047,888) (72,998,724) (26,562,416) (25,363,207)
-------------- -------------- ------------ ------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions from net investment income
and from net realized gains from investment transactions -- 873,962 -- --
-------------- -------------- ------------ ------------
Net increase in net assets derived from capital share transactions -- 873,962 -- --
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets 65,176,177 (115,646,695) 24,814,706 (37,328,873)
Net assets at beginning of year 1,153,728,644 1,269,375,339 416,566,351 453,895,224
-------------- -------------- ------------ ------------
Net assets at end of year $1,218,904,821 $1,153,728,644 $441,381,057 $416,566,351
============== ============== ============ ============
Balance of undistributed net investment income at end of year $ 2,034,636 $ 3,520,179 $ 1,394,972 $ 1,546,491
============== ============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At October 31, 1995, the National Funds (the "Funds") covered in this report
and their corresponding New York Stock Exchange symbols are Nuveen Investment
Quality Municipal Fund, Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc.
(NQS), Nuveen Quality Income Municipal Fund, Inc. (NQU) and Nuveen Premier
Municipal Income Fund, Inc. (NPF).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At October 31, 1995, there were no such purchase commitments in
any of the Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal
income tax, to retain such tax-exempt status when distributed to shareholders
of the Funds. All income dividends paid during the year ended October 31,
1995, have been designated Exempt Interest Dividends.
<PAGE>
<TABLE>
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of net realized capital gains, if
applicable.
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in more than one Series. The
dividend rate on each Series may change every seven days, as set by the
auction agent, except for those Series which have lengthened their current
dividend periods from seven days to three years (as indicated below). The
number of shares outstanding, by Series and in total, for each Fund is as
follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Number of shares:
Series M 2,500 2,000 3,000 --
Series T 2,500 2,000t 3,000 2,800t
Series W 2,500 2,800 3,000 --
Series Th -- -- 4,000t 2,800
Series F 2,500t 2,800t 3,000 --
------ ----- ------ -----
Total 10,000 9,600 16,000 5,600
====== ===== ====== =====
<FN>
t Three year period
Preferred share auction fees paid in connection with lengthening the dividend
periods on the Series noted above have been capitalized and are being
amortized over the respective three year period.
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (FASB) No. 119 Disclosure about Derivative
Financial Instruments and Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain derivative financial
instruments including futures, forward, swap, and option contracts, and other
financial instruments with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may do so in the
future, they did not make any such investments during the year ended October
31, 1995, other than occasional purchases of high quality synthetic money
market securities which were held temporarily pending the re-investment in
long-term portfolio securities.
</TABLE>
<PAGE>
<TABLE>
2. Fund Shares
Transactions in Common shares were as follows:
<CAPTION>
NQM NQS
Year ended Year ended Year ended Year ended
10/31/95 10/31/94 10/31/95 10/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from net
realized gains from investment transactions -- 208,785 34,939 248,378
===== ======= ====== =======
<CAPTION>
NQU NPF
Year ended Year ended Year ended Year ended
10/31/95 10/31/94 10/31/95 10/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from net
realized gains from investment transactions -- 58,734 -- --
===== ====== ===== =====
</TABLE>
<PAGE>
<TABLE>
3. Securities Transactions
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the year ended October
31, 1995, were as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $84,688,217 $52,797,497 $197,002,286 $93,273,484
Temporary municipal investments 65,760,000 79,950,000 89,100,000 69,300,000
SALES AND MATURITIES
Investments in municipal securities 90,114,815 56,898,180 196,727,676 91,640,422
Temporary municipal investments 61,060,000 73,550,000 98,300,000 69,300,000
=========== =========== ============ ===========
At October 31, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At October 31, 1995, the following Funds had unused capital loss carryovers
available for federal income tax purposes to be applied against future
security gains, if any. If not applied the carryovers will expire as follows:
<CAPTION>
NQM NQS NQU
<S> <C> <C> <C>
Expiration year:
2001 $2,593,847 $ -- $ --
2002 -- 6,626,291 5,529,513
2003 315,370 424,861 757,201
---------- ---------- ----------
Total $2,909,217 $7,051,152 $6,286,714
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
4. Distributions to Common Shareholders
On November 1, 1995, the Funds declared Common share dividend distributions
from their ordinary income which were paid December 1, 1995, to shareholders
of record on November 15, 1995, as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Dividend per share $.0870 $.0845 $.0855 $.0845
====== ====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 1995, were as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $63,872,194 $53,451,250 $85,943,467 $26,029,537
Depreciation (1,657,168) (1,911,989) (733,078) (110,580)
------------ ------------ ------------ ------------
Net unrealized appreciation $62,215,026 $51,539,261 $85,210,389 $25,918,957
============ ============ =========== ===========
</TABLE>
<PAGE>
<TABLE>
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:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors who are affiliated with the Adviser
or to their officers, all of whom receive remuneration for their services to
the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At October 31, 1995, net assets consisted of:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $250,000,000 $240,000,000 $ 400,000,000 $140,000,000
Common shares, $.01 par value per share 354,045 333,506 530,778 196,470
Paid-in surplus 493,397,920 464,023,335 737,415,732 272,358,652
Balance of undistributed net investment income 1,163,384 1,038,166 2,034,636 1,394,972
Accumulated net realized gain (loss) from investment transactions (2,909,217) (7,051,152) (6,286,714) 1,512,006
Net unrealized appreciation or depreciation of investments 62,215,026 51,539,261 85,210,389 25,918,957
------------ ------------ -------------- ------------
Net assets $804,221,158 $749,883,116 $1,218,904,821 $441,381,057
============ ============ ============== ============
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
============ ============ ============== ============
</TABLE>
<PAGE>
<TABLE>
8. Investment Composition
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At October 31, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 18% 25% 23% 28%
Health Care Facilities 13 7 13 13
Pollution Control Facilities 10 12 12 5
Electric Utilities 8 8 7 2
Transportation 1 6 7 2
Educational Facilities 4 2 3 6
Water / Sewer Facilities 2 5 3 2
Lease Rental Facilities 2 -- 2 3
Other 8 1 7 6
General Obligation Bonds 3 5 6 14
Escrowed Bonds 31 29 17 19
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
Certain long-term and intermediate-term investments owned by the Funds are
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, either of which ensure the timely payment of principal and
interest in the event of default (50% for NQM, 35% for NQS, 31% for NQU, 23%
for NPF). Such insurance or escrow, however, does not guarantee the market
value of the municipal securities or the value of any of the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Operating performance Dividends from net
investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments** shareholders shareholderstt
NQM
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 $14.650 $1.328 $1.040 $(1.082) $(.286)
1994 16.450 1.322 (1.761) (1.118) (.243)
1993 15.340 1.395 1.196 (1.230) (.214)
1992 15.130 1.441 .169 (1.157) (.243)
1991 13.930 1.457 1.185 (1.092) (.350)
6/21/90 to
10/31/90 14.050 .318 (.027) (.178) (.034)
<CAPTION>
NQS
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 14.030 1.296 1.301 (1.046) (.291)
1994 16.130 1.311 (2.058) (1.083) (.250)
1993 14.920 1.348 1.304 (1.218) (.224)
1992 14.640 1.379 .197 (1.053) (.243)
3/21/91 to
10/31/91 14.050 .653 .671 (.425) (.124)
<CAPTION>
NQU
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 14.200 1.311 1.258 (1.032) (.307)
1994 16.400 1.319 (2.143) (1.095) (.256)
1993 14.620 1.341 1.824 (1.151) (.234)
1992 14.290 1.325 .276 (1.019) (.252)
6/19/91 to
10/31/91 14.050 .276 .329 (.168) (.021)
<CAPTION>
NPF
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 14.080 1.275 1.337 (1.008) (.275)
1994 15.980 1.255 (1.864) (1.040) (.238)
1993 14.070 1.248 1.850 (.972) (.186)
12/19/91 to
10/31/92 14.050 .741 .191 (.640) (.090)
<PAGE>
<CAPTION>
Distributions from capital gains
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholderstt discounts of period of period
NQM
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 $ -- $ -- $ -- $15.650 $15.125
1994 -- -- -- 14.650 13.375
1993 (.031) (.006) -- 16.450 17.500
1992 -- -- -- 15.340 15.750
1991 -- -- -- 15.130 16.000
6/21/90 to
10/31/90 -- -- (.199) 13.930 14.250
<CAPTION>
NQS
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 -- -- -- 15.290 14.750
1994 (.017) (.003) -- 14.030 13.125
1993 -- -- -- 16.130 16.500
1992 -- -- -- 14.920 14.750
3/21/91 to
10/31/91 -- -- (.185) 14.640 15.000
<CAPTION>
NQU
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 -- -- -- 15.430 14.750
1994 (.021) (.004) -- 14.200 12.875
1993 -- -- -- 16.400 16.375
1992 -- -- -- 14.620 14.250
6/19/91 to
10/31/91 -- -- (.176) 14.290 14.625
<CAPTION>
NPF
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 (.056) (.013) -- 15.340 14.625
1994 (.011) (.002) -- 14.080 12.750
1993 (.026) (.004) -- 15.980 15.250
12/19/91 to
10/31/92 -- -- (.182) 14.070 14.000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
valuet valuet (in thousands) assetsttt net assetsttt rate
NQM
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 21.89% 14.71% $ 804,221 .78% 5.97% 11%
1994 (17.87) (4.32) 768,723 .79 5.83 7
1993 19.75 16.01 828,931 .77 6.02 14
1992 5.67 9.29 783,237 .74 6.37 5
1991 20.66 17.08 769,837 .75 6.67 3
6/21/90 to
10/31/90 (3.80) .42 724,011 .72* 6.06* --
<CAPTION>
NQS
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 21.03 17.03 749,883 .79 5.91 7
1994 (14.45) (6.43) 707,388 .80 5.89 11
1993 20.73 16.87 773,423 .81 5.87 8
1992 5.41 9.32 727,874 .79 6.18 5
3/21/91 to
10/31/91 2.91 7.33 713,377 .79* 5.81* 1
<CAPTION>
NQU
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 23.26 16.51 1,218,905 .78 5.86 17
1994 (15.32) (6.86) 1,153,729 .79 5.78 12
1993 23.62 20.73 1,269,375 .80 5.78 7
1992 4.35 9.64 1,170,752 .78 5.95 8
6/19/91 to
10/31/91 (1.39) 2.91 1,146,962 .74* 5.13* --
<CAPTION>
NPF
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 23.92 17.15 441,381 .80 5.84 22
1994 (10.05) (5.51) 416,566 .81 5.66 31
1993 16.68 21.31 453,895 .82 5.59 12
12/19/91 to
10/31/92 (2.47) 4.73 415,743 .79* 4.91* 14
<FN>
* Annualized.
** Net of taxes, if applicable.
t 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.
tt The amounts shown are based on Common share equivalents.
ttt Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Boards of Directors and Shareholders
Nuveen Investment Quality Municipal Fund, Inc.
Nuveen Select Quality Municipal Fund, Inc.
Nuveen Quality Income Municipal Fund, Inc.
Nuveen Premier Municipal Income Fund, Inc.
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Investment Quality Municipal Fund, Inc.,
Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income Municipal
Fund, Inc. and Nuveen Premier Municipal Income Fund, Inc. as of October 31,
1995, and the related statements of operations and changes in net assets and
the financial highlights for the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of October 31, 1995, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality
Municipal Fund, Inc., Nuveen Quality Income Municipal Fund, Inc. and Nuveen
Premier Municipal Income Fund, Inc. at October 31, 1995, and the results of
their operations, changes in their net assets and financial highlights for the
periods indicated therein in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Chicago, Illinois
December 15, 1995
<PAGE>
Build your wealth automatically
Photographic image of Customer Service Rep at Nuveen.
Managing your portfolio takes skill, experience, and informed judgment, but
our efforts to help you build your wealth don't stop there. At Nuveen, we
offer a number of convenient ways to build your tax-free portfolio and earn
the tax-free income you need to achieve your financial goals.
Nuveen Exchange-traded fund Dividend Reinvestment Plan
Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check, or can
be deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Income or capital gains taxes may be payable on dividends or
distributions that are reinvested. You'll also benefit from dollar-cost
averaging, a technique of investing at regular intervals, which allows you to
build a high-quality, tax-free portfolio conveniently and cost effectively
over time. All reinvestments are invested in full and fractional shares and
are kept in non-certificated form by the Plan Agent, Chase Manhattan Bank.
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number
of shares you own.
The shares you acquire by reinvesting will either be purchased on the open
market or be newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation,the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will be
invested within 30 days of the dividend payment date; no interest will be paid
on dividends and distributions awaiting reinvestment. Because the market price
of shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation resulting
in the acquisition of fewer shares than if the dividend or distribution had
been paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
<PAGE>
You may, of course, change your distribution option or withdraw from the
Plan at any time, should your needs or situation change. Should you withdraw,
you can receive a certificate for all whole shares credited to your
reinvestment account and cash payment for fractional shares, or cash payment
for all reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You also can reinvest if your shares are registered in the name of a
brokerage firm, bank, or other nominee. Just ask your investment adviser if
the firm will participate on your behalf. If not, it's easy to have the shares
registered in your name and to apply for a reinvestment account directly.
Participants whose shares are registered in the name of one firm may not be
able to transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although, the Fund reserves the right to amend the Plan to include a service
charge payable by the participants, there is no direct service charge to
participants in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll
in or withdraw from the Plan, speak with your investment adviser or call us
toll-free at 1.800.257.8787.
Photographic image of Customer Service Rep at Nuveen.
"When it comes to financial planning, your investment adviser knows your
situation best. And when we can give you the account information you need, our
motto is simple: We're here
to help."
Photographic image of Customer Service Rep at Nuveen.
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set up
your reinvestment account."
<PAGE>
Useful information
Photographic image of Customer Service Rep at Nuveen.
"When questions come up about your investment, we're happy to provide the
up-to-date information you and your adviser need."
Nuveen Shareholder Services:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST for information on your
Nuveen Fund's current account balance, yield, dividend, net asset value,
closing price, and general information.
Dividend Reinvestment:
1.800.257.8787
Monday through Friday, 9 a.m. to 6 p.m., EST
Taking Stock Newsletter:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST if you're not currently
getting our quarterly shareholder newsletter and would like to do so. We will
be happy to add your name to our mailing list.
Photographic image of woman seated and man standing behind her representing
Nuveen investors.
Many conservative investors are comfortable with Nuveen's emphasis on long
term value. That's why they depend on Nuveen for the tax-free income they need
to reach their goals.
<PAGE>
Your investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various articipants 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
ETF3-DEC 95
