Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams
INVESTMENT QUALITY (NQM)
SELECT QUALITY (NQS)
QUALITY INCOME (NQU)
PREMIER INCOME (NPF)
SEMIANNUAL REPORT/APRIL 30, 1997
Photographic image of couple walking on beach.
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CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Commonly used terms
13 Portfolio of investments
58 Statement of net assets
59 Statement of operations
60 Statement of changes in net assets
62 Notes to financial statements
72 Financial highlights
<PAGE>
Dear shareholder
"Shareholders continue to enjoy very attractive current yields generated by
portfolios of quality bonds."
Photographic image of headshot of Chairman and Chief Executive Officer
of Nuveen.
It is my pleasure to report to you on the performance of Nuveen's
exchange-traded funds. Over the past year, shareholders in these funds were
rewarded with attractive tax-free income. A hallmark of Nuveen's fixed-income
investments, this dependable tax-free income makes these funds an excellent
choice for those seeking a stable addition to their core investment portfolio.
To safeguard our shareholders' interests, Nuveen continues to work to find ways
to protect this level of income through changing market conditions.
The funds' sound performance came during a year of volatility in the municipal
bond market, including a mid-year decline and a post-election rally. However, by
continuing to seek out undervalued bonds in sectors and regions we believe are
fundamentally strong, we were able to generate very attractive current yields
for shareholders while also preserving capital.
As of April 30, 1997, shareholders in the funds covered in this report were
receiving annual tax-free yields on net asset value that ranged from 6.66% to
6.82%. To match these attractive yields, investors in the 36% federal income tax
bracket would have had to earn at least 10.41% on taxable alternatives.
<PAGE>
During the same period, the funds outperformed the benchmark Lehman Brothers
Municipal Bond Index, which posted a 6.66% return. Over the past year, the funds
generated total returns, including reinvested dividends and capital gains (if
any) and changes in net asset value, of 7.11% to 7.96%, equivalent to taxable
total returns of 10.98% to 11.90% for investors in the 36% tax bracket. The
level of these returns gains added significance when viewed in the context of
bond market results for the past year, which reflect the rather flat performance
of 1996 and the concern over Federal Reserve deliberations in early 1997.
Nuveen has recently made significant and exciting additions to the investment
options we offer--that make it easier to keep more of what you earn. We
introduced three new equity and balanced funds for investors seeking both
long-term growth and current income. Further, Nuveen's municipal bond fund
selection is now one of the largest in the industry, since our merger with
Flagship Resources, Inc., a highly regarded sponsor of fixed-income mutual
funds. As a Nuveen shareholder, this merger offers you even greater access to
the municipal market.
For more complete information regarding Nuveen investment products, including
charges and expenses, call Nuveen at (800) 257-8787, or contact your financial
adviser for a prospectus. Please read the information carefully before you
invest.
On behalf of everyone at Nuveen, I thank you for your continued confidence
in us and our family of investments. You can continue to depend on us for
high-quality investment products that withstand the test of time. We look
forward to serving you in the future.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
June 12, 1997
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, reviews recent events
in the municipal market and offers insights into the strategies Nuveen uses to
manage your funds
How would you summarize the bond market over the past 12 months?
Throughout the past year, mixed economic reports produced conflicting interest
rate and inflation forecasts, which caused investors to view the markets with
alternating enthusiasm and uncertainty. In late 1996, evidence of an economic
slowdown, the strong U.S. dollar, and lack of inflationary pressures combined to
allay investor fears, sparking a rally in bonds that continued through the
post-election period. The early months of 1997 saw a re-emergence of talk about
inflation, and the markets continue to keep a close eye on the Federal Reserve
to see how seriously it regards such talk.
Over much of the past 12 months, euphoria in the equity market focused
investors' attention on stocks and brought record amounts of new money into
equity-based mutual funds, bypassing the bond market. Some investors, concerned
about a potential stock market correction, decided to take their profits, but
adopted a wait-and-see attitude about investing capital gains, electing to go
with short-term vehicles until a clearer picture of market trends emerged. These
events affected demand for bond issues of all types during the past year. Only
recently have we begun to see some evidence that investors are evaluating the
effect of the huge run-up in stock prices and are rebalancing their portfolios
by gradually shifting some assets from stocks into bonds.
The actions of the Federal Reserve also continue to play a role in bond market
performance. Although the Fed altered interest rates only once in 1996, at the
very beginning of the year, anticipation of further moves kept the markets
restless. With one rate increase approved already in March of this year, the
concern about potential changes in monetary policy--and the effect of such
changes on the markets--continues in 1997.
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What strategies did you use to add value during this market?
The fluctuations of 1996 created specific inefficiencies in the market, enabling
Nuveen to uncover and take advantage of price discrepancies to improve fund
portfolios. For example, we were able to enhance the durability of the funds'
dividends by purchasing bonds with longer call protection. These bonds were
priced similarly to those with shorter calls as interest rates began to rise in
1996, creating a value investing opportunity. As rates moved down during the
year, the bonds with longer call protection then appreciated in value more than
those with shorter calls.
What role does research play in helping you achieve the funds' objectives?
As an integral part of our portfolio management strategy, Nuveen Research
provides portfolio managers with objective appraisals of the creditworthiness of
new municipal issues, while maintaining surveillance of the credit performance
for all portfolio holdings. To track individual holdings, each Nuveen Research
analyst is responsible for a specific surveillance portfolio, which is defined
in terms of geography and sector (e.g., healthcare, housing). Specialization by
sector enables our Research teams to focus their credit quality evaluation
efforts and complement the vantage point of each portfolio manager.
What is the current economic outlook?
The economy in the second quarter has grown at a slower pace than during the
first quarter, however, the growth still may be at a level that exceeds the
Federal Reserve's long-term targets. Interest rates on 30-year Treasuries have
moved in a range of between 6.65% to 7.20% over the past several months, and
expectations are that this range of rates may continue through the third
quarter.
Of course, that's a short-term outlook. By following a disciplined value
strategy and depending on fundamental research, the long-term outlook for our
municipal bond funds--and for Nuveen shareholders--is very good. We will
continue to look for opportunities in sectors like healthcare and public power
and in regions like the Midwest and the Sun Belt. And will continue to identify
bonds that are structured in ways that make them attractive through a complete
interest rate cycle.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers
investors' questions on develop ments in the municipal market.
<PAGE>
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQM
Common shareholders received 11 months of stable, tax-free dividends following
a modest reduction in June 1996 due to bond calls. In general, bond calls are
tapering off as many of the older securities have been replaced with newer
bonds.
<TABLE>
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0870
6/12/96 $0.0845
7/11/96 $0.0845
8/13/96 $0.0845
9/11/96 $0.0845
10/10/96 $0.0845
11/13/96 $0.0845
12/11/96 $0.0845
1/13/97 $0.0845
2/12/97 $0.0845
3/12/97 $0.0845
4/11/97 $0.0845
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.82%
Taxable-equivalent yield 10.66%
Annual total return on NAV 7.11%
Taxable-equivalent total return 10.98%
Share price $14.875
NAV $15.24
The dividend history used in this chart constitutes past performance and
does not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NQS
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady, attractive dividends. This
dividend has remained stable for the last 21 months.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0845
6/12/96 $0.0845
7/11/96 $0.0845
8/13/96 $0.0845
9/11/96 $0.0845
10/10/96 $0.0845
11/13/96 $0.0845
12/11/96 $0.0845
1/13/97 $0.0845
2/12/97 $0.0845
3/12/97 $0.0845
4/11/97 $0.0845
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.70%
Taxable-equivalent yield 10.47%
Annual total return on NAV 7.38%
Taxable-equivalent total return 11.33%
Share price $15.125
NAV $14.96
The dividend history used in this chart constitutes past performance and
does not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NQU
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady, attractive dividends. This
dividend has remained stable for the last 27 months.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0855
6/12/96 $0.0855
7/11/96 $0.0855
8/13/96 $0.0855
9/11/96 $0.0855
10/10/96 $0.0855
11/13/96 $0.0855
12/11/96 $0.0855
1/13/97 $0.0855
2/12/97 $0.0855
3/12/97 $0.0855
4/11/97 $0.0855
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.73%
Taxable-equivalent yield 10.52%
Annual total return on NAV 7.60%
Taxable-equivalent total return 11.52%
Share price $15.250
NAV $15.28
The dividend history used in this chart constitutes past performance and
does not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
NPF
The Fund's monthly tax-free dividend was increased during the 12 months ended
April 30, 1997. Common shareholders continue to benefit from the Fund's
leveraged structure. In addition, the Fund paid shareholders a capital gains
distribution in December.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0845
6/12/96 $0.0845
7/11/96 $0.0845
8/13/96 $0.0845
9/11/96 $0.0845
10/10/96 $0.0845
11/13/96 $0.0860
12/11/96 $0.0860 $0.0391
1/13/97 $0.0860
2/12/97 $0.0860
3/12/97 $0.0860
4/11/97 $0.0860
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.66%
Taxable-equivalent yield 10.41%
Annual total return on NAV 7.96%
Taxable-equivalent total return 11.90%
Share price $15.50
NAV $15.17
The dividend history used in this chart constitutes past performance and
does not necessarily predict the future dividends of the 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, April 30, 1997) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given 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% for
shareholders, based on 1997 incomes of $124,650-$271,050 for investors filing
singly, $151,750-$271,050 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an
exchange-traded fund, minus any liabilities. The NAV per share is the fund's net
assets, less the value of its preferred shares, divided by the total number of
common shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if any.
Taxable equivalent total return
The total return an investor subject to a given 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 six-month period ended April 30, 1997. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQM)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 2.4%
$ 14,850,000 Alaska Housing Finance Corporation, General
Housing Purpose Bonds, 1994 Series A,
5.400%, 12/01/13 Aa 6/04 at 102 $ 14,191,403
5,100,000 Alaska Housing Finance Corporation, Insured
Mortgage Program Bonds, 1990 First Series,
7.800%, 12/01/30 Aa1 12/00 at 102 5,133,711
- -----------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.4%
3,250,000 City of North Little Rock, Arkansas, Health Facilities
Board (Baptist Health), Healthcare Revenue Bonds
(Baptist Health), Series 1996A, 5.400%, 12/01/16 Aaa 12/06 at 101 3,159,943
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.6%
22,400,000 California Health Facilities Financing Authority,
Kaiser Permanente, Revenue Bonds, 1993 Series C,
5.600%, 5/01/33 AA 5/03 at 102 21,068,768
11,625,000 California Health Facilities Financing Authority,
Hospital Revenue Bonds (Children's Hospital of
Los Angeles), 1991 Series A, 7.125%, 6/01/21
(Pre-refunded to 6/01/01) Aaa 6/01 at 102 12,869,689
5,700,000 State Public Works Board of the State of California,
Lease Revenue Refunding Bonds (The Regents of
the University of California), 1993 Series A
(Various University of California Projects),
5.500%, 6/01/21 A1 6/03 at 102 5,370,141
10,000,000 Certificates of Participation (1991 Financing Project),
County of Alameda, California, Alameda County
Public Facilities Corporation, 6.000%, 9/01/21 Aaa 9/06 at 102 10,132,000
7,140,000 Culver City Redevelopment Financing Authority,
1993 Tax Allocation Refunding Revenue Bonds,
5.000%, 11/01/23 Aaa 11/03 at 102 6,323,255
9,740,000 Huntington Park Redevelopment Agency, Single
Family Residential Mortgage Revenue Refunding
Bonds, 1986 Series A, 8.000%, 12/01/19 Aaa No Opt. Call 12,513,270
4,000,000 City of Loma Linda, California, Hospital Revenue
Bonds (Loma Linda University Medical Center
Project), Series 1993-A, 6.500%, 12/01/18 BBB 12/03 at 102 4,082,160
10,325,000 City of Loma Linda, California, Hospital Revenue
Refunding Bonds (Loma Linda University Medical
Center Project), Series 1993-C, 5.000%, 12/01/22 Aaa 12/03 at 102 9,086,723
7,155,000 Department of Water and Power of The City of
Los Angeles, Water Works Refunding Revenue
Bonds, Second Issue of 1993, 4.500%, 5/15/23 Aaa 5/03 at 102 5,818,303
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 15,770,000 Ontario Redevelopment Financing Authority (San
Bernardino County, California), 1995 Revenue
Refunding Bonds (Ontario Redevelopment Project
No. 1), 7.400%, 8/01/25 Aaa No Opt. Call $ 19,653,678
13,145,000 City of Perris, California, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed
Securities), 1988 Series B, 8.200%, 9/01/23
(Alternative Minimum Tax) Aaa No Opt. Call 16,778,015
- -----------------------------------------------------------------------------------------------------------------
COLORADO - 2.7%
2,500,000 Colorado Housing Finance Authority, Single Family
Program Senior and Subordinate Bonds, 1996
Series B, 7.450%, 11/01/27 Aa 5/06 at 105 2,811,250
4,940,000 Castle Pines Metropolitan District, Douglas County,
Colorado, General Obligation Refunding and
Improvement Bonds, Series 1990, 7.625%, 12/01/15 Aaa 12/00 at 102 5,464,875
3,085,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991A,
8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 3,420,494
7,865,000 Colorado Springs School District No. 11, El Paso
County, Colorado, General Obligation
Improvement Bonds, Series 1996, 7.125%, 12/01/21 Aa 12/07 at 125 9,509,414
- -----------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.9%
7,030,000 Connecticut Housing Finance Authority, Housing
Mortgage Finance Program Bonds, 1996 Series D,
Subseries D-2, 6.200%, 11/15/27 (Alternative
Minimum Tax) Aa 5/06 at 102 7,085,607
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DISTRICT OF COLUMBIA - 0.7%
5,215,000 District of Columbia Housing Finance Agency,
Collateralized Single Family Mortgage Revenue
Bonds, Series 1990A, 8.100%, 12/01/23
(Alternative Minimum Tax) AAA 12/00 at 102 5,474,655
- -----------------------------------------------------------------------------------------------------------------
FLORIDA - 5.2%
4,000,000 Hillsborough County Port District, Florida (Tampa
Port Authority), Revenue Bonds, Series 1990,
8.250%, 6/01/09 (Pre-refunded to 12/01/00) Baa1 12/00 at 102 4,521,160
20,000,000 Jacksonville Health Facilities Authority, Health
Facilities Revenue Refunding Bonds, Daughters of
Charity National Health System, Inc., St. Vincent's
Medical Center Issue, Series 1990,
7.500%, 11/01/15 (Pre-refunded to 11/01/00) Aaa 11/00 at 102 22,160,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
Orange County Housing Finance Authority, GNMA
Collateralized Mortgage Revenue Refunding Bonds,
1990 Series A:
$ 2,330,000 7.500%, 7/01/10 Aaa 7/00 at 103 $ 2,471,874
11,035,000 7.600%, 1/01/24 Aaa 7/00 at 103 11,705,376
- -----------------------------------------------------------------------------------------------------------------
GEORGIA - 4.5%
5,990,000 Municipal Electric Authority of Georgia, Power
Revenue Bonds, Series Q, 8.375%, 1/01/16 A 1/98 at 102 6,278,958
5,250,000 Municipal Electric Authority of Georgia, Power
Revenue Bonds, Series O, 8.125%, 1/01/17 A 1/98 at 102 5,489,663
2,250,000 Municipal Electric Authority of Georgia, Project
One Special Obligation Bonds, Fourth Crossover
Series, 6.500%, 1/01/20 A No Opt. Call 2,430,630
2,955,000 Urban Residential Finance Authority of the City of
Atlanta, Georgia, Single Family Mortgage Revenue
Bonds (GNMA Collateralized Home Mortgage
Program), Series 1988, in cooperation with the
Housing Authority of Fulton County, Georgia,
8.250%, 10/01/21 (Alternative Minimum Tax) AAA 10/98 at 103 3,076,037
10,000,000 Development Authority of Monroe County (Georgia),
Pollution Control Revenue Bonds (Georgia Power
Company Plant Scherer Project), Second
Series 1994, 6.750%, 10/01/24 A1 10/99 at 102 10,408,500
7,325,000 Wayne County Development Authority, Solid Waste
Disposal Revenue Bonds (ITT Rayonier, Inc.
Project), Series 1990, 8.000%, 7/01/15
(Alternative Minimum Tax) BBB+ 1/00 at 102 7,833,721
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS - 5.5%
5,000,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1989B (ServantCor), 7.875%, 8/15/19
(Pre-refunded to 8/15/99) N/R 8/99 at 102 5,440,150
3,305,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1990 (Riverside Senior Living Center Project),
7.500%, 11/01/20 (Pre-refunded to 11/01/00) A3 11/00 at 102 3,649,513
7,500,000 Community College District No. 508, Cook County,
Illinois, Certificates of Participation,
8.750%, 1/01/07 Aaa No Opt. Call 9,385,275
5,900,000 Community Unit School District Number 7,
Madison County, Illinois, School Building Bonds,
Series 1994, 5.850%, 2/01/13 Aaa No Opt. Call 6,063,076
3,585,000 City of Pekin, Illinois, Multifamily Housing
Refunding Revenue Bonds, Series 1992A (FHA
Insured Mortgage Loan - Section 8 Assisted
Project), 6.875%. 5/01/22 AAA 5/03 at 103 3,757,582
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 2,650,000 City of Peoria, Peoria County, Illinois, City of Pekin,
Tazewell and Peoria Counties, Illinois, and City of
Waukegan, Lake County, Illinois, Jointly, GNMA
Collateralized Mortgage Revenue Bonds,
Series 1990, 7.875%, 8/01/22 (Alternative
Minimum Tax) AAA 8/00 at 103 $ 2,775,027
860,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992B,
9.000%, 6/01/07 Aaa No Opt. Call 1,111,172
5,390,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992A,
9.000%, 6/01/07 Aaa No Opt. Call 6,964,203
Southwestern Illinois Development Authority, Solid
Waste Disposal Revenue Bonds (Leclede Steel
Company Project), Series 1990:
740,000 8.375%, 8/01/08 (Alternative Minimum Tax) A- 8/00 at 103 811,247
2,910,000 8.500%, 8/01/20 (Alternative Minimum Tax) A- 8/00 at 103 3,200,796
- -----------------------------------------------------------------------------------------------------------------
INDIANA - 0.8%
6,000,000 Hospital Authority of Delaware County (Indiana),
Hospital Revenue Bonds, Series 1991 (Ball
Memorial Hospital), 6.625%, 8/01/16 Aaa 8/01 at 102 6,374,520
- -----------------------------------------------------------------------------------------------------------------
KANSAS - 0.9%
5,060,000 City of Topeka, Kansas, Variable Rate Demand
Industrial Revenue Refunding Bonds, Series 1988
(Sunwest Hotel Corporation Project),
9.500%, 10/01/16 (Alternative Minimum Tax)
(Pre-refunded to 8/15/16) AAA 8/16 at 100 6,812,784
- -----------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.2%
Kentucky Development Finance Authority, Medical
Center Revenue Refunding and Improvement
Bonds (Ashland Hospital Corporation d/b/a King's
Daughters' Hospital):
1,550,000 9.750%, 8/01/11 (Pre-refunded to 2/01/98) A 2/98 at 102 1,646,023
950,000 9.750%, 8/01/11 A 2/98 at 102 1,001,576
2,000,000 Kentucky Housing Corporation, Housing Revenue
Bonds (FHA Insured/VA Guaranteed), 1990
Series C Bonds, 8.100%, 1/01/22 (Alternative
Minimum Tax) Aaa 7/00 at 102 2,099,820
12,500,000 County of Jefferson, Kentucky, Pollution Control
Revenue Bonds, 1995 Series A (Louisville Gas and
Electric Company Project), 5.900%, 4/15/23 AA 4/05 at 102 12,591,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
LOUISIANA - 6.0%
$ 16,095,000 Louisiana Public Facilities Authority, Fixed Rate
Health and Education Capital Facilities Revenue
Bonds (West Jefferson Medical Center),
Series 1985D, 7.900%, 12/01/15 Aaa 12/98 at 102 $ 17,234,204
2,550,000 Louisiana Public Facilities Authority (West Jefferson
Medical Center), 7.900%, 12/01/15 (Pre-refunded
to 12/01/98) Aaa 12/98 at 102 2,740,179
5,050,000 Louisiana Public Facilities Authority, Extended Care
Facilities Revenue Bonds (Comm-Care Corporation
Project), Series 1994, 11.000%, 2/01/04 BBB No Opt. Call 6,149,183
5,460,000 East Baton Rouge Mortgage Finance Authority,
Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program),
Series 1990A, 7.875%, 8/01/23 (Alternative
Minimum Tax) Aaa 8/00 at 102 5,743,920
11,545,000 Orleans Parish School Board, Public School Refunding
Bonds, Series 1987 (Defeased), 9.000%, 2/01/09 Aaa No Opt. Call 15,202,802
- -----------------------------------------------------------------------------------------------------------------
MAINE - 0.7%
5,510,000 Maine State Housing Authority, Mortgage Purchase
Bonds, 1994 Series C-2, 6.875%, 11/15/23
(Alternative Minimum Tax) AA 10/04 at 102 5,736,296
- -----------------------------------------------------------------------------------------------------------------
MARYLAND - 0.3%
2,000,000 City of Gaithersburg (Maryland), First Mortgage
Economic Development Revenue Bonds (Ashbury
Methodist Home, Incorporated Facility), Series 1990,
7.850%, 1/01/20 (Pre-refunded to 1/01/00) N/R 1/00 at 102 2,189,720
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.5%
Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, Goddard Memorial
Hospital Issue, Series B:
3,810,000 9.000%, 7/01/15 (Pre-refunded to 7/01/00) Baa3 7/00 at 102 4,317,378
6,135,000 9.000%, 7/01/15 Baa 7/00 at 102 6,748,009
1,250,000 Massachusetts Housing Finance Agency, Residential
Housing Revenue Bonds, 1988 Series B,
8.100%, 8/01/23 (Alternative Minimum Tax) BBB+ 8/99 at 102 1,304,975
Massachusetts Water Resources Authority, General
Revenue Bonds, 1990 Series A:
15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 16,494,750
4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 4,385,080
16,250,000 City of Boston, Massachusetts, Revenue Bonds,
Boston City Hospital (FHA Insured Mortgage),
Series A, 7.625%, 2/15/21 (Pre-refunded
to 8/15/00) Aaa 8/00 at 102 17,974,288
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA - 1.2%
$ 5,000,000 The Dakota County Housing and Redevelopment
Authority, The Washington County Housing and
Redevelopment Authority, and The City of
Bloomington, Minnesota, Single Family Residential
Mortgage Revenue Bonds (GNMA Mortgage-
Backed Program), Series 1988, 8.450%, 9/01/19
(Alternative Minimum Tax) Aaa No Opt. Call $ 6,187,250
2,860,000 City of Hopkins, Minnesota, Elderly Housing
Revenue Refunding Bonds (St. Therese Southwest,
Inc. Project), Series 1994A, 6.500%, 3/01/19 AA 3/04 at 102 2,934,989
- -----------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5%
1,255,000 Mississippi Home Corporation, Single Family Senior
Revenue Refunding Bonds, Series 1990A,
9.250%, 3/01/12 Aaa 9/00 at 103 1,345,724
2,695,000 Mississippi Housing Finance Corporation, Single
Family Mortgage Purchase Revenue Bonds,
Series 1989 (GNMA Mortgage-Backed Securities
Program), 8.250%, 10/15/18 (Alternative
Minimum Tax) Aaa 10/99 at 102 2,830,639
- -----------------------------------------------------------------------------------------------------------------
MISSOURI - 0.3%
2,300,000 Missouri Housing Development Commission, Single
Family Mortgage Revenue Bonds (Homeownership
Loan Program), 1997 Series A-2, 7.300%, 3/01/28
(Alternative Minimum Tax) AAA 3/07 at 105 2,495,201
- -----------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.1%
3,300,000 Nebraska Higher Education Loan Program, Inc.,
Student Loan Program Revenue Bonds, 1993
Series B, 5.875%, 6/01/14 (Alternative
Minimum Tax) A 6/04 at 102 3,233,670
13,330,000 Nebraska Investment Finance Authority, Single
Family Housing Revenue Bonds, 1995 Series B,
6.450%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 13,493,026
- -----------------------------------------------------------------------------------------------------------------
NEVADA - 0.7%
5,400,000 State of Nevada, Colorado River Commission,
General Obligation (Limited Tax) (Additionally
Secured by Pledged Revenues), Hoover Uprating
Refunding Bonds, 1992 Series, 8.000%, 10/01/15
(Pre-refunded to 10/01/97) Aaa 10/97 at 102 5,599,206
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK - 13.5%
$ 5,890,000 Dormitory Authority of the State of New York, City
University System Consolidated Second General
Resolution Revenue Bonds, Series 1990C,
9.250%, 7/01/98 Baa1 No Opt. Call $ 6,215,540
14,235,000 Dormitory Authority of the State of New York, City
University System Consolidated Second General
Resolution Revenue Bonds, Series 1990D,
8.750%, 7/01/02 Baa1 No Opt. Call 16,454,379
10,000,000 Dormitory Authority of the State of New York, City
University System Consolidated, Second General
Resolution Revenue Bonds, Series 1990F,
7.875%, 7/01/17 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 11,126,300
Dormitory Authority of the State of New York, State
University Educational Facilities, Revenue Bonds,
Series 1989B:
7,935,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 8,664,703
1,025,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) AAA 5/00 at 102 1,119,259
10,000,000 New York State Medical Care Facilities Finance
Agency, Hospital Insured Mortgage Revenue
Bonds, 1987 Series A Refunding, 8.000%, 2/15/25
(Pre-refunded to 8/15/97) Aaa 8/97 at 102 10,318,700
5,000,000 New York State Medical Care Facilities Finance
Agency, St. Luke's-Roosevelt Hospital Center,
FHA-Insured Mortgage Revenue Bonds, 1989
Series B, 7.450%, 2/15/29 (Pre-refunded to 2/15/00) Aaa 2/00 at 102 5,461,750
3,500,000 State of New York Mortgage Agency, Homeowner
Mortgage Revenue Bonds, Series HH-3,
7.950%, 4/01/22 (Alternative Minimum Tax) Aa2 6/00 at 102 3,678,745
6,655,000 Municipal Assistance Corporation for the City of
New York (A Public Benefit Corporation of the
State of New York), Series 61 Bonds,
6.875%, 7/01/07 (Pre-refunded to 7/01/97) AA 7/97 at 102 6,822,107
10,000,000 The City of New York, General Obligation Bonds,
Fiscal 1997 Series G, 6.000%, 10/15/26 Baa1 10/07 at 101 9,710,700
New York City Municipal Water Finance Authority
Water and Sewer System Revenue Bonds,
Fiscal 1991 Series A:
10,200,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) Aaa 6/00 at 101 1/2 11,185,422
6,395,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) A2 6/00 at 100 6,640,184
5,105,000 6.000%, 6/15/20 A2 6/00 at 100 5,113,934
4,200,000 New York City Industrial Development Agency,
Special Facility Revenue Bonds (1990 American
Airlines, Inc. Project), 8.000%, 7/01/20
(Alternative Minimum Tax) Baa2 1/99 at 102 4,442,802
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA - 1.7%
$ 10,500,000 North Carolina Eastern Municipal Power Agency,
Power System Revenue Bonds, Refunding
Series 1996B, 5.875%, 1/01/21 Aaa 1/07 at 102 $ 10,521,840
2,795,000 Charlotte Mortgage Revenue Refunding Bonds
(FHA Insured Mortgage-Double Oaks Apartments),
7.350%, 5/15/26 AAA 11/07 at 100 3,020,696
- -----------------------------------------------------------------------------------------------------------------
OREGON - 1.4%
2,500,000 State of Oregon, Department of General Services,
Certificates of Participation (1990 Real Property
Financing Program), Series F, 7.500%, 9/01/15
(Pre-refunded to 9/01/00) Aaa 9/00 at 102 2,760,900
8,990,000 Northern Wasco County People's Utility District,
Wasco County, Oregon, McNary Dam Fishway
Hydroelectric Project Revenue Bonds, Series 1993
(Bonneville Power Administration),
5.200%, 12/01/24 Aa1 12/03 at 102 8,268,912
- -----------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.5%
7,230,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1990-28,
7.650%, 10/01/23 (Alternative Minimum Tax) AA+ 10/00 at 102 7,589,403
4,905,000 McKean County Hospital Authority, Hospital
Revenue Bonds, Series of 1990 (Bradford Hospital
Project), 8.875%, 10/01/20 BBB- 10/00 at 102 5,584,833
7,040,000 City of Philadelphia, Pennsylvania, Water and
Wastewater Revenue Bonds, Series 1993,
5.000%, 6/15/16 Aaa 6/03 at 100 6,382,534
- -----------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 5.1%
25,250,000 Rhode Island Health and Educational Building
Corporation Hospital Financing Revenue Bonds,
Lifespan Obligated Group Issue, Series 1996,
5.750%, 5/15/23 Aaa 5/07 at 102 24,666,473
10,000,000 Rhode Island Housing and Mortgage Finance
Corporation, Series 3-B Bonds, 8.050%, 4/01/22
(Alternative Minimum Tax) AA+ 10/00 at 102 10,412,100
4,885,000 Newport Housing Development Corporation,
1995 Multifamily Mortgage Revenue Refunding
Bonds (Broadway-West Broadway Apartments-FHA
Insured Mortgage, Section 8 Assisted Project),
Series A, 6.800%, 8/01/24 AAA 6/03 at 100 5,089,584
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
SOUTH CAROLINA - 0.5%
$ 3,475,000 South Carolina State Housing Finance and
Development Authority Homeownership
Mortgage Purchase Bonds, 1990 Series C,
7.750%, 7/01/22 (Alternative Minimum Tax) Aa 7/00 at 102 $ 3,647,152
- -----------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
3,295,000 Tennessee Housing Development Agency,
Homeownership Program Bonds, Issue H, Series
1988, 7.825%, 7/01/15 (Alternative Minimum Tax) AA 7/12 at 100 3,425,153
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 3.5%
2,000,000 Brazos River Authority (Texas), Collateralized
Pollution Control Revenue Bonds (Texas Utilities
Electric Company Project), Series 1990A,
8.125%, 2/01/20 (Alternative Minimum Tax) Baa1 2/00 at 102 2,174,540
4,295,000 Brazos River Authority (Texas), Collateralized
Pollution Control Revenue Bonds (Texas Utilities
Electric Company Project), Series 1989A,
8.250%, 1/01/19 (Alternative Minimum Tax) Baa1 1/99 at 102 4,580,102
3,500,000 Brazos River Authority (Texas), Collateralized
Pollution Control Revenue Refunding Bonds
(Texas Utilities Electric Company Project),
Series 1993A, 5.500%, 5/01/22 Aaa 11/03 at 102 3,333,505
2,270,000 The Cameron County Housing Finance Corporation,
GNMA Collateralized Mortgage Revenue
Refunding Bonds, 1990 Series B, 7.850%, 3/01/24 Aaa 9/00 at 103 2,416,710
Dallas Housing Corporation Refunding and Capital
Program Revenue Bonds (Section 8 Assisted
Projects), Series 1990:
1,000,000 7.700%, 8/01/05 A 8/00 at 102 1,064,700
2,000,000 7.850%, 8/01/13 A 8/00 at 102 2,125,940
10,175,000 Harris County Hospital District Refunding Revenue
Bonds, Texas, Series 1990, 7.400%, 2/15/10 Aaa No Opt. Call 12,013,317
- -----------------------------------------------------------------------------------------------------------------
VERMONT - 0.5%
3,955,000 Vermont Housing Finance Agency, Single Family
Housing Bonds, Series 1, 8.150%, 5/01/25
(Alternative Minimum Tax) A1 11/00 at 102 4,099,160
- -----------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.6%
11,320,000 State of Washington, General Obligation Bonds,
Series 1994A, 4.750%, 10/01/13 Aa 10/03 at 100 10,077,177
3,000,000 Washington Health Care Facilities Authority
Revenue Bonds, Series 1990 (Franciscan Health
System/St. Francis Community Hospital of Federal
Way), 7.250%, 7/01/15 Aaa 7/00 at 102 3,236,040
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 2,000,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds,
Series 1990C, 8.000%, 7/01/17 (Pre-refunded
to 7/01/00) Aaa 7/00 at 102 $ 2,228,780
3,205,000 Washington Public Power Supply System, Nuclear
Project No. 1, Refunding Revenue Bonds,
Series 1989A, 7.500%, 7/01/15 (Pre-refunded
to 7/01/99) Aaa 7/99 at 102 3,462,650
5,650,000 Washington Public Power Supply System, Nuclear
Project No. 2, Refunding Revenue Bonds,
Series 1990B, 7.000%, 7/01/12 (Pre-refunded
to 7/01/00) Aaa 7/00 at 102 6,135,165
15,990,000 Washington Public Power Supply System, Nuclear
Project No. 3, Refunding Revenue Bonds,
Series 1993B, 5.600%, 7/01/15 Aaa 7/03 at 102 15,569,302
4,500,000 Washington Public Power Supply System, Nuclear
Project No. 3, Refunding Revenue Bonds,
Series 1993C, 5.375%, 7/01/15 Aa1 7/03 at 102 4,216,950
13,900,000 Washington Public Power Supply System, Nuclear
Project No. 3, Refunding Revenue Bonds,
Series 1989B, 7.250%, 7/01/15 (Pre-refunded
to 1/01/00) Aaa 1/00 at 102 15,065,931
- -----------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.4%
3,145,000 Wisconsin Housing and Economic Development
Authority, Home Ownership Revenue Bonds,
1989 Series B, 7.600%, 3/01/15 Aa 9/99 at 102 3,291,431
- -----------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4%
3,450,000 Puerto Rico Highway and Transportation Authority,
Highway Revenue Bonds (Series X),
5.500%, 7/01/19 A 7/03 at 101 1/2 3,282,296
$725,025,000 Total Investments - (cost $726,490,902) - 97.6% 771,045,577
================
<PAGE>
<CAPTION>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.8%
$ 900,000 Residential Care Facility for the Elderly Authority of
Fulton County (Georgia), Variable Rate Demand
Refunding Revenue Bonds (Lenbrook Square
Foundation, Inc. Project), Series 1996,
4.100%, 1/01/18+ A-1+ $ 900,000
300,000 Health and Educational Facilities Authority of the
State of Missouri, Variable Rate Demand Bonds,
Health Facilities Revenue Bonds (St. Francis'
Medical Center), Series 1996A, 4.100%, 6/01/26+ A-1+ 300,000
4,350,000 Southwest Higher Education Authority Southern
Methodist University, Variable Rate Demand Bonds,
4.050%, 7/01/15+ VMIG-1 4,350,000
1,100,000 The University Athletic Association, Inc., Capital
Improvement Revenue Bonds, Series 1990, Variable
Rate Demand Bonds, 4.000%, 2/01/20+ VMIG-1 1,100,000
$ 6,650,000 Total Temporary Investments - 0.8% 6,650,000
================
Other Assets Less Liabilities - 1.6% 12,358,496
Net Assets - 100% $790,054,073
============
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 58 $467,536,982 61%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 142,491,818 18
PORTFOLIO OF A+ A1 3 19,877,801 3
INVESTMENTS A, A- A, A2, A3 14 45,969,130 6
(EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 15 87,539,976 11
TEMPORARY Non-rated Non-rated 2 7,629,870 1
INVESTMENTS):
TOTAL 111 $771,045,577 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. (NQS)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.8%
$ 2,900,000 The Water Works Board of the City of Arab
(Alabama), Water Revenue Bonds, Series 1991,
7.050%, 8/01/16 Aaa 8/01 at 102 $ 3,163,175
2,625,000 Jefferson County, Alabama, Sewer Revenue Refunding
Warrants, Series 1997-A, 5.375%, 2/01/27 Aaa 2/07 at 100 2,487,030
- -----------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.3%
4,265,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Refunding Bonds,
1991 Series A (FHA Insured or VA Guaranteed
Mortgage Loans), 8.000%, 8/15/11 AA 8/01 at 103 4,576,217
4,500,000 City of Little Rock, Arkansas, Hotel and Restaurant
Gross Receipts Tax Refunding Bonds, Series 1993,
7.375%, 8/01/15 A No Opt. Call 5,344,875
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.8%
4,000,000 Sisters of Charity of Leavenworth Health Services
Corporation, Certificates of Participation,
California Statewide Communities Development
Authority, 5.000%, 12/01/23 AA 12/03 at 102 3,493,080
3,200,000 State of California, Department of Water Resources,
Central Valley Project, Water System Revenue
Bonds, Series M, 4.875%, 12/01/27 Aa 12/03 at 101 2,731,808
7,285,000 Department of Water and Power of The City of
Los Angeles, Electric Plant Refunding Revenue
Bonds, Issue of 1993, 5.375%, 9/01/23 Aa3 9/03 at 102 6,753,414
6,710,000 Department of Water and Power of The City of
Los Angeles, Water Works Refunding Revenue
Bonds, Second Issue of 1993, 4.500%, 5/15/11 Aa 5/03 at 102 5,862,124
21,800,000 Los Angeles County Metropolitan Transportation
Authority (California), Proposition A Sales Tax
Revenue Refunding Bonds, Series 1993-A,
6.750%, 7/01/20 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 23,888,222
- -----------------------------------------------------------------------------------------------------------------
COLORADO - 5.9%
20,000,000 City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1991A, 8.750%, 11/15/23
(Alternate Minimum Tax) Baa 11/01 at 102 23,381,600
5,000,000 City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1991D, 7.750%, 11/15/21
(Alternate Minimum Tax) Baa 11/01 at 102 5,502,450
12,150,000 City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1992C, 6.750%, 11/15/22
(Alternate Minimum Tax) Baa 11/02 at 102 12,625,065
2,245,000 Jefferson County, Colorado, Single Family Revenue
Refunding Bonds, Series 1991A, 8.875%, 10/01/13 Aaa 4/01 at 103 2,402,666
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CONNECTICUT - 2.6%
$ 7,500,000 Connecticut Development Authority, Health Facility
Refunding Revenue Bonds, Alzheimer's Resource
Center of Connecticut, Inc. Project, 1991 Series A,
10.000%, 8/15/21 (Pre-refunded to 8/15/01) N/R 8/01 at 103 $ 9,078,750
9,785,000 Connecticut Development Authority, Health Facility
Refunding Revenue Bonds, Alzheimer's Resource
Center of Connecticut, Inc. Project, 1994 Series A,
7.250%, 8/15/21 N/R 8/04 at 102 10,345,387
- -----------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2%
1,615,000 District of Columbia Housing Finance Agency,
Collateralized Single Family Mortgage Revenue
Bonds, Series 1990A, 8.100%, 12/01/23
(Alternative Minimum Tax) AAA 12/00 at 102 1,695,411
- -----------------------------------------------------------------------------------------------------------------
FLORIDA - 3.6%
4,500,000 Jacksonville Electric Authority (Jacksonville, Florida),
Electric System Revenue Bonds, Series Two,
1987A-2, 7.500%, 10/01/02 (Pre-refunded to
10/01/97) Aaa 10/97 at 101 1/2 4,635,540
14,250,000 Jacksonville Electric Authority (Jacksonville,
Florida), Bulk Power Supply System Revenue
Bonds (Scherer 4 Project, Issue One, Series 1991A),
6.750%, 10/01/21 (Pre-refunded to 10/01/00) Aaa 10/00 at 101 1/2 15,379,740
7,400,000 State of Florida, Orlando-Orange County Expressway
Authority, Junior Lien Revenue Refunding Bonds,
Series of 1993A, 5.125%, 7/01/20 Aaa 7/03 at 102 6,771,592
- -----------------------------------------------------------------------------------------------------------------
GEORGIA - 0.3%
2,295,000 Urban Residential Finance Authority of the City of
Atlanta, Georgia, Single Family Mortgage Revenue
Bonds (GNMA Collateralized Home Mortgage
Program), Series 1988, in cooperation with the
Housing Authority of Fulton County, Georgia,
8.250%, 10/01/21 (Alternative Minimum Tax) AAA 10/98 at 103 2,389,003
- -----------------------------------------------------------------------------------------------------------------
HAWAII - 2.4%
16,000,000 Department of Budget and Finance of the State of
Hawaii, Special Purpose Revenue Bonds, Kapiolani
Health Care System Obligated Group (Pali Momi
Medical Center Project), Series 1991,
7.650%, 7/01/19 (Pre-refunded to 7/01/01) Aaa at 102 17,981,760
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS - 5.3%
Illinois Development Finance Authority, Multi-Family Housing
Bonds, Series 1990 (Affordable Housing Preservation
Foundation Project), Subseries A (FHA Insured Mortgage
Loans-Lawless Gardens Project):
$ 775,000 7.650%, 7/01/07 AAA 1/02 at 105 $ 855,716
6,780,000 7.650%, 12/31/31 AAA 1/02 at 105 7,383,691
10,875,000 Illinois Educational Facilities Authority, Adjustable
Demand Revenue Bonds, The University of
Chicago, Series 1985, Conversion to a Fixed
Interest Rate, 5.700%, 12/01/25 Aa1 12/03 at 102 10,539,180
1,585,000 Illinois Housing Development Authority, Multi-
Family Housing Bonds, 1991 Series C,
7.400%, 7/01/23 A1 7/01 at 102 1,651,459
14,605,000 City of Chicago, General Obligation Bonds
(Emergency Telephone System), Series 1993,
5.625%, 1/01/23 Aaa 1/03 at 102 13,992,320
5,000,000 City of Chicago, General Obligation Bonds, Project
and Refunding Series 1995B, 5.125%, 1/01/25 Aaa 1/06 at 102 4,527,750
- -----------------------------------------------------------------------------------------------------------------
INDIANA - 3.5%
5,060,000 Indiana State Office Building Commission, Capital
Complex Revenue Bonds, Series 1987 (State Office
Building II Facility), 8.750%, 7/01/12
(Pre-refunded to 7/01/97) Aaa 7/97 at 102 5,202,388
8,640,000 Avon Community School Building Corporation,
First Mortgage Bonds, Series 1994 (Hendricks
County, Indiana), 5.500%, 1/01/16 Aaa 1/04 at 101 8,227,786
5,270,000 Beacon Heights Housing Development Corporation,
1991 Multifamily Mortgage Revenue Refunding
Bonds (FHA Insured Mortgage-Section 8 Assisted
Project), Series A, 7.625%, 2/01/21 AAA 6/01 at 100 5,529,284
5,770,000 Fremont Middle School Building Corporation, First
Mortgage Refunding Bonds, Series 1994 A,
Steuben County, Indiana, 5.250%, 1/15/13 Aaa 1/04 at 101 5,534,122
1,120,000 Michigan City Housing Development Corporation,
1991 Multifamily Mortgage Revenue Refunding
Bonds (FHA Insured Mortgage-Section 8 Assisted
Project), Series A, 7.625%, 2/01/21 AAA 6/01 at 100 1,175,104
- -----------------------------------------------------------------------------------------------------------------
KANSAS - 2.7%
9,405,000 City of Merriam, Kansas, Hospital Refunding
Revenue Bonds, Series 1991C (Shawnee Mission
Medical Center, Inc. Project), 7.250%, 9/01/04
(Pre-refunded to 9/01/01) A- 9/01 at 102 10,060,246
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
KANSAS (CONTINUED)
$ 8,800,000 City of Merriam, Kansas, Hospital Refunding
Revenue Bonds, Series 1991B (Shawnee Mission
Medical Center, Inc. Project), 7.250%, 9/01/21
(Pre-refunded to 9/01/01) A- 9/01 at 102 $ 9,760,960
- -----------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4%
3,015,000 Lakeland Wesley Village, Inc., Mortgage Revenue
Refunding Bonds (Lakeland Wesley Village I Elderly
Section 8 Assisted Project/FHA Insured Mortgage),
Series 1991, 7.500%, 11/01/21 Aa 11/01 at 103 3,179,619
- -----------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.3%
2,210,000 Calcasieu Parish Public Trust Authority, Mortgage
Revenue Refunding Bonds, 1991 Series A,
7.750%, 6/01/12 A1 6/01 at 103 2,345,407
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.9%
2,000,000 Massachusetts Health and Education Facilities
Authority, Revenue Bonds, Lowell General Hospital
Issue, Series A, 8.400%, 6/01/11 (Pre-refunded
to 6/01/01) A3 6/01 at 102 2,288,820
2,100,000 Massachusetts Housing Finance Agency, Residential
Housing Revenue Bonds, 1988 Series A,
8.400%, 8/01/21 (Alternative Minimum Tax) BBB+ 8/98 at 102 2,194,479
1,660,000 Massachusetts Housing Finance Agency, Residential
Housing Revenue Bonds, 1989 Series A,
8.200%, 8/01/27 (Alternate Minimum Tax) BBB+ 8/99 at 102 1,705,584
19,025,000 Massachusetts Water Resources Authority, General
Revenue Bonds, 1990 Series A, 6.000%, 4/01/20 A 4/00 at 100 19,041,552
4,385,000 Boston Housing Development Corporation,
Mortgage Revenue Refunding Bonds, Series 1994A
(FHA Insured Mortgage Loans-Section 8 Assisted
Projects), 5.500%, 7/01/24 Aaa 1/04 at 102 4,126,022
6,300,000 Somerville Housing Authority, Mortgage Revenue
Bonds, Series 1990 (GNMA Collateralized -
Clarendon Hill Towers Project), 7.950%, 11/20/30 AAA 5/00 at 102 6,667,101
- -----------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
7,890,000 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (The Detroit Medical Center
Obligated Group), Series 1991A, 7.500%, 8/15/11 A 8/01 at 102 8,640,181
3,625,000 Flowerville Community Schools, Counties of
Livingston, Ingham, and Shiawassee, State of
Michigan, 1996 School Building and Site Bonds
(General Obligation-Unlimited Tax),
5.600%, 5/01/26 Aaa 5/07 at 100 3,526,291
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA - 1.4%
$ 4,431,644 The Chicago County Housing and Redevelopment
Authority, The Southcentral Multi-County
Housing and Redevelopment Authority, The Stearns
County Housing and Redevelopment Authority,
Single Family Mortgage Revenue Bonds, FNMA,
Series 1994B, 7.050%, 9/01/27 (Alternate
Minimum Tax) AAA 3/04 at 102 27/32 $ 4,694,042
The Dakota, Washington, and Stearns Counties
Housing and Redevelopment Authority, Single
Family Mortgage Revenue Refunding Bonds
(Fannie Mae Mortgage-Backed Securities Program),
Series 1994A:
3,195,000 6.600%, 9/01/17 (Alternative Minimum Tax) AAA 3/04 at 102 3,313,566
2,255,000 6.700%, 3/01/21 (Alternative Minimum Tax) AAA 3/04 at 102 2,346,125
- -----------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.2%
1,465,000 Goodman Housing Development Corporation, 1991
Multifamily Mortgage Revenue Refunding Bonds
(Goodhaven Manor-FHA Insured Mortgage,
Section 8 Assisted Project), Series A,
7.625%, 2/01/22 AAA 8/01 at 100 1,537,898
- -----------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.5%
10,550,000 Nebraska Investment Finance Authority, Single
Family Housing Revenue Bonds, 1995 Series A,
6.800%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 10,931,172
- -----------------------------------------------------------------------------------------------------------------
NEVADA - 1.4%
10,000,000 Clark County School District, Nevada, General
Obligation (Limited Tax), School Improvement
Bonds, Series 1996, 6.000%, 6/15/15 Aaa 6/06 at 101 10,239,200
- -----------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.5%
4,420,000 New Jersey Housing and Mortgage Finance Agency,
Section 8 Bonds, 1991 Series A, 6.850%, 11/01/06 AA+ 11/01 at 102 4,718,925
14,125,000 The Pollution Control Financing Authority of Salem
County, Pollution Control Revenue Refunding
Bonds, 1993 Series C (Public Service Electric and
Gas Company Project), 5.550%, 11/01/33 Aaa 11/03 at 102 13,458,300
- -----------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.3%
1,690,000 New Mexico Mortgage Finance Authority, Single
Family Mortgage Program Senior Bonds, 1989
Series A (Federally Insured or Guaranteed Mortgage
Loans), 7.800%, 3/01/21 (Alternative Minimum Tax) AA- 9/99 at 102 1,758,732
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW MEXICO (CONTINUED)
$ 14,050,000 City of Farmington, New Mexico, Pollution Control
Refunding Revenue Bonds (Southern California
Edison Company Four Corners Project), 1991
Series A, 7.200%, 4/01/21 A+ 4/01 at 102 $ 15,148,429
- -----------------------------------------------------------------------------------------------------------------
NEW YORK - 8.1%
6,000,000 New York Local Government Assistance Corporation
(A Public Benefit Corporation of the State of
New York), Series 1991D Bonds, 7.000%, 4/01/18
(Pre-refunded to 4/01/02) Aaa 4/02 at 102 6,668,400
New York Medical Care Facilities Finance Agency,
Mental Health Services Facilities Improvement
Revenue Bonds, 1991 Series B:
595,000 7.600%, 2/15/06 Baa1 8/01 at 102 654,310
580,000 7.600%, 8/15/06 Baa1 8/01 at 102 637,814
1,980,000 7.625%, 8/15/17 Baa1 8/01 at 102 2,170,436
New York Medical Care Facilities Finance Agency,
Mental Health Services Facilities Improvement
Revenue Bonds, 1991 Series D:
5,380,000 7.400%, 2/15/18 (Pre-refunded to 2/15/02) BBB+ 2/02 at 102 6,029,312
40,000 7.400%, 2/15/18 Baa1 2/02 at 102 43,731
1,750,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA
Insured Mortgage Revenue Bonds, 1988,
8.000%, 2/15/28 (Pre-refunded to 8/15/98) AAA 8/98 at 102 1,868,878
New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1991
Series B:
1,020,000 7.600%, 2/15/06 (Pre-refunded to 8/15/01) BBB+ 8/01 at 102 1,145,491
1,010,000 7.600%, 8/15/06 (Pre-refunded to 8/15/01) BBB+ 8/01 at 102 1,134,260
5,970,000 7.625%, 8/15/17 (Pre-refunded to 8/15/01) BBB+ 8/01 at 102 6,710,161
6,000,000 New York State Urban Development Corporation,
Correctional Capital Facilities Revenue Bonds,
Series 2, 7.500%, 1/01/18 (Pre-refunded to 1/01/01) Aaa 1/01 at 102 6,670,500
3,410,000 State of New York Mortgage Agency, Mortgage
Revenue Bonds, Ninth Series B, 8.000%, 10/01/02
(Alternative Minimum Tax) Aa 7/97 at 102 3,487,953
The City of New York, General Obligation Bonds,
Fiscal 1991 Series F, Tax-Exempt Bonds:
4,600,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) Aaa 11/01 at 101 1/2 5,310,470
400,000 8.250%, 11/15/10 Baa1 11/01 at 101 1/2 450,156
7,130,000 8.250%, 11/15/15 (Pre-refunded to 11/15/01) Aaa 11/01 at 101 1/2 8,231,229
620,000 8.250%, 11/15/15 Baa1 11/01 at 101 1/2 701,487
9,290,000 The City of New York, General Obligation Bonds,
Fiscal 1997 Series G, 6.000%, 10/15/26 Baa1 10/07 at 101 9,021,240
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA - 2.4%
$ 18,555,000 North Carolina Eastern Municipal Power Agency,
Power System Revenue Bonds, Refunding
Series 1993 B, 5.500%, 1/01/17 Aaa 1/03 at 100 $ 17,894,813
- -----------------------------------------------------------------------------------------------------------------
OHIO - 0.7%
2,865,000 Toledo-Lucas County Port Authority, Development
Revenue Bonds (Northwest Ohio Bond Fund),
Series 1989D, 8.500%, 11/15/00 (Alternative
Minimum Tax) N/R 11/97 at 101 2,931,353
1,355,000 Toledo-Lucas County Port Authority, Development
Revenue Bonds (Northwest Ohio Bond Fund),
Series 1989C, 8.400%, 11/15/09 (Alternative
Minimum Tax) N/R 11/00 at 102 1,411,016
465,000 Toledo-Lucas County Port Authority, Development
Revenue Bonds (Northwest Ohio Bond Fund),
Series 1990D, 8.500%, 5/15/00 (Alternative
Minimum Tax) N/R No Opt. Call 512,653
- -----------------------------------------------------------------------------------------------------------------
OKLAHOMA - 5.1%
14,200,000 Oklahoma County Home Finance Authority
(Oklahoma County, Oklahoma), Single Family
Mortgage Revenue Refunding Bonds, 1991
Series A, 8.750%, 7/01/12 A1 7/01 at 102 14,958,990
21,025,000 Trustees of the Tulsa Municipal Airport Trust,
Revenue Bonds, Series 1991, 7.600%, 12/01/30
(Alternative Minimum Tax) Baa2 6/01 at 102 22,610,706
- -----------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.9%
3,000,000 Pennsylvania Higher Education Assistance Agency
Student Loan Revenue Bonds, Fixed Rate Bonds,
1991 Series C, 7.150%, 9/01/21 (Alternative
Minimum Tax) Aaa 9/01 at 102 3,164,430
10,000,000 City of Philadelphia, Pennsylvania, Water and Sewer
Revenue Bonds, Sixteenth Series, 7.000%, 8/01/18
(Pre-refunded to 8/01/01) AAA 8/01 at 100 10,858,200
- -----------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.5%
3,580,000 Rhode Island Housing and Mortgage Finance
Corporation, Homeownership Opportunity Bonds,
8.200%, 10/01/17 (Alternative Minimum Tax) AA+ 10/98 at 102 3,676,159
- -----------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.7%
5,000,000 Oconee County, South Carolina, Pollution Control
Facilities Revenue Refunding Bonds, Series 1993
(Duke Power Company Project), 5.800%, 4/01/14 Aa2 4/03 at 102 5,046,450
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
SOUTH DAKOTA - 2.0%
$ 5,000,000 South Dakota Housing Development Authority,
Homeownership Mortgage Bonds, 1996 Series D,
6.300%, 5/01/27 (Alternative Minimum Tax) AAA 11/06 at 102 $ 5,057,050
7,790,000 City of Sioux Falls, South Dakota, Variable Rate
Demand Industrial Revenue Refunding Bonds,
Series 1989 (Great Plains Hotel Corporation
Project), 8.500%, 11/01/16 (Alternative Minimum
Tax) (Pre-refunded to 10/15/14) AAA 10/14 at 100 9,944,636
- -----------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.4%
9,525,000 Tennessee Housing Development Agency,
Homeownership Program Bonds, Issue V,
7.650%, 7/01/22 (Alternative Minimum Tax) AA 7/01 at 102 9,953,339
7,220,000 The Metropolitan Government of Nashville and
Davidson County (Tennessee), General Obligation
Multi-Purpose Improvement Bonds, Series 1994,
6.150%, 5/15/25 Aa 5/02 at 102 7,471,545
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 7.3%
9,505,000 City of Austin, Texas, Water, Sewer and Electric
Refunding Revenue Bonds, Series 1982,
14.250%, 11/15/06 (Pre-refunded to 5/15/97) Aaa 5/97 at 100 9,545,586
8,580,000 Brazos River Authority (Texas), Collateralized
Pollution Control Revenue Bonds (Texas Utilities
Electric Company Project), Series 1990A,
8.125%, 2/01/20 (Alternative Minimum Tax) Baa1 2/00 at 102 9,328,777
6,480,000 Brazos River Authority (Texas), Collateralized
Pollution Control Revenue Bonds (Texas Utilities
Electric Company Project), Series 1989A,
8.250%, 1/01/19 (Alternative Minimum Tax) Baa1 1/99 at 102 6,910,142
3,500,000 Comal County Health Facilities Development
Corporation, Hospital Revenue Refunding Bonds
(McKenna Memorial Hospital FHA Insured
Project), Series 1991, 7.375%, 1/15/21 AAA 1/01 at 102 3,719,065
12,575,000 El Paso Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds, Series 1991A,
8.750%, 10/01/11 A 4/01 at 103 13,970,196
3,035,000 The Harrison County Finance Corporation, Single
Family Mortgage Revenue Refunding Bonds,
Series 1991, 8.875%, 12/01/11 A 12/01 at 103 3,198,799
2,395,000 Panhandle Regional Housing Finance Corporation,
Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), Series 1991A,
7.500%, 5/01/24 (Alternative Minimum Tax) AAA 5/01 at 100 2,483,926
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 4,560,000 Winter Garden Housing Finance Corporation, Single
Family Mortgage Revenue Bonds (GNMA and
FNMA Mortgage-Backed Securities Program),
Series 1994, 6.950%, 10/01/27 (Alternative
Minimum Tax) AAA 4/04 at 103 $ 4,769,030
- -----------------------------------------------------------------------------------------------------------------
UTAH - 4.0%
16,145,000 Intermountain Power Agency (Utah), Power Supply
Revenue Bonds, Series 1987B, 7.200%, 7/01/19 A1 7/97 at 102 16,546,203
13,650,000 Intermountain Power Agency, Power Supply Revenue
Refunding Bonds, 1993 Series A, 5.500%, 7/01/20 Aaa 7/03 at 102 12,889,968
- -----------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.5%
5,000,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1990C, 8.000%, 7/01/17 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 5,571,950
4,000,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1989B, 7.400%, 7/01/09 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 4,350,400
2,000,000 Washington Public Power Supply System, Nuclear
Project No. 2 Refunding Revenue Bonds, Series
1990A, 7.375%, 7/01/12 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 2,193,600
5,000,000 Washington Public Power Supply System, Nuclear
Project No. 2, Refunding Revenue Bonds, Series
1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 5,429,350
10,010,000 Washington Public Power Supply System Nuclear
Project No. 2 Refunding Revenue Bonds,
Series 1992A, 6.250%, 7/01/12 Aa1 7/02 at 102 10,231,922
5,000,000 Washington Public Power Supply System, Nuclear
Project No. 2 Refunding Revenue Bonds,
Series 1994A, 5.375%, 7/01/11 Aa1 7/04 at 102 4,784,500
3,935,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds,
Series 1993C, 5.375%, 7/01/15 Aa1 7/03 at 102 3,687,489
Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds,
Series 1989B:
24,060,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 26,078,153
7,560,000 5.500%, 7/01/17 Aa1 1/00 at 100 7,049,473
Municipality of Metropolitan Seattle (Seattle,
Washington), Sewer Refunding Revenue Bonds,
Series Z:
2,160,000 5.450%, 1/01/16 Aaa 1/03 at 102 2,047,183
3,095,000 5.450%, 1/01/17 Aaa 1/03 at 102 2,928,706
2,490,000 5.450%, 1/01/19 Aaa 1/03 at 102 2,340,700
1,800,000 5.450%, 1/01/20 Aaa 1/03 at 102 1,689,678
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WISCONSIN - 1.8%
$ 11,080,000 Wisconsin Center District, Junior Dedicated Tax
Revenue Bonds, Series 1996B, 5.750%, 12/15/27 A 12/06 at 101 $ 10,914,354
2,100,000 Wisconsin Health and Educational Facilities
Authority, Revenue Bonds (Wausau Hospitals, Inc.
Project), Series 1991B, 6.700%, 8/15/20 Aaa 2/01 at 102 2,227,680
$697,171,644 Total Investments - (cost $686,046,531) - 98.3% 728,104,358
================
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 300,000 Orange County Sanitation District, Certificates of
Participation, Variable Rate Demand Bonds,
3.750%, 8/01/17+ VMIG-1 300,000
600,000 Southwest Higher Education Authority, Southern
Methodist University Variable Rate Demand Bonds,
4.050%, 7/01/15+ VMIG-1 600,000
$ 900,000 Total Temporary Investments - 0.1% 900,000
================ Other Assets Less Liabilities - 1.6% 11,698,865
Net Assets - 100% $740,703,223
============
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 54 $357,995,598 49%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 18 99,001,929 14
PORTFOLIO OF A+ A1 5 50,650,488 7
INVESTMENTS A, A- A, A2, A3 9 83,219,983 11
(EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 19 112,957,201 16
TEMPORARY Non-rated Non-rated 5 24,279,159 3
INVESTMENTS):
TOTAL 110 $728,104,358 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. (NQU)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.7%
$ 17,000,000 The Industrial Development Board of the Town of
Courtland, Pollution Control Refunding Revenue
Bonds (Champion International Corporation
Project), Series 1995, 6.150%, 6/01/19 Baa1 6/05 at 102 $ 17,062,220
3,895,000 Jefferson County Board of Education Capital Outlay
School Warrants, Series 1997, 5.800%, 2/15/20 (WI) Aaa 2/07 at 102 3,899,557
- -----------------------------------------------------------------------------------------------------------------
ALASKA - 2.0%
2,000,000 Alaska Housing Finance Corporation, Collateralized
Bonds, 1991 First Series (Veterans Mortgage
Program), Issue A-1, 7.125%, 12/01/30 Aaa 6/01 at 102 2,079,120
6,750,000 Alaska Housing Finance Corporation, General
Housing Purpose Bonds, 1992 Series A,
6.600%, 12/01/23 (Pre-refunded to 12/01/02) Aa 12/02 at 102 7,384,905
14,590,000 Alaska State Housing Finance Corporation,
Government Purpose Bonds, 1995 Series A,
5.875%, 12/01/30 Aaa 12/05 at 102 14,224,083
- -----------------------------------------------------------------------------------------------------------------
ARIZONA - 0.5%
5,610,000 Yuma Regional Medical Center on behalf of Hospital
District No. 1 of Yuma County, Arizona, Hospital
Revenue Improvement and Refunding Bond (Yuma
Regional Medical Center Project), Series 1992,
8.000%, 8/01/17 (Pre-refunded to 8/01/02) A 8/02 at 101 1/2 6,484,150
- -----------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9%
3,860,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Refunding Bonds, 1991
Series A (FHA Insured or VA Guaranteed Mortgage
Loans), 8.000%, 8/15/11 AA 8/01 at 103 4,141,664
6,215,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Bonds, 1995 Series B
(Mortgage-Backed Securities Program),
6.700%, 7/01/27 (Alternative Minimum Tax) AAA 7/05 at 102 6,404,993
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA - 8.0%
3,000,000 California Health Facilities Financing Authority,
Kaiser Permanente, Revenue Bonds, 1993 Series C,
5.600%, 5/01/33 AA 5/03 at 102 2,821,710
4,075,000 California Housing Finance Agency Home Mortgage
Revenue Bonds, 1991 Series G, 7.050%, 8/01/27
(Alternative Minimum Tax) Aa 8/01 at 102 4,245,335
17,000,000 State Public Works Board of the State of California
Lease Revenue Bonds (Department of Correctional),
1994 Series A (California State of Prison-Monterey
County (Soledad II)), 7.000%, 11/01/19
(Pre-refunded to 11/01/04) Aaa 11/04 at 102 19,519,060
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 3,500,000 State Public Works Board of the State of California,
Lease Revenue Bonds (The Trustees of The California
State University), 1992 Series A (Various California
State University Projects), 6.625%, 10/01/10
(Pre-refunded to 10/01/02) A 10/02 at 102 $ 3,854,725
Brea Public Financing Authority (Orange County,
California), 1991 Tax Allocation Revenue Bonds,
Series A (Redevelopment Project AB):
10,580,000 7.000%, 8/01/15 (Pre-refunded to 8/01/01) Aaa 8/01 at 102 11,708,886
4,420,000 7.000%, 8/01/15 Aaa 8/01 at 102 4,812,761
5,000,000 The Community Redevelopment Agency of the City
of Los Angeles, California, Central Business
District Redevelopment Project Tax Allocation
Refunding Bonds, Series G, 6.750%, 7/01/10 BBB 7/97 at 102 5,081,200
5,000,000 Department of Water and Power of the City of Los
Angeles, California, Water Works Revenue Bonds,
Issue of 1992, 6.500%, 4/15/32 Aa 4/02 at 102 5,251,850
7,210,000 Northern California Power Agency, Hydroelectric
Project Number One Revenue Bonds, Refunding
Series E, 7.150%, 7/01/24 A- 7/98 at 102 7,514,262
6,950,000 County of Orange, California, 1996 Recovery,
Certificates of Participation, Series A,
6.000%, 7/01/26 Aaa 7/06 at 102 7,031,107
2,000,000 City of Redwood City Public Financing Authority,
1991 Local Agency Revenue Bonds, Series B,
7.250%, 7/15/11 A- 7/01 at 102 2,175,280
10,000,000 The City of San Diego, Industrial Development
Revenue Refunding Bonds (San Diego Gas &
Electric Company), 1993 Series C, 5.900%, 9/01/18 Aaa 9/03 at 102 10,061,200
9,190,000 City of San Jose Financing Authority (Santa Clara
County, California), 1993 Revenue Bonds, Series C
(Convention Center Refunding Project),
6.400%, 9/01/22 A1 9/01 at 102 9,500,071
3,375,000 Southern California Home Financing Authority,
Single Family Mortgage Revenue Bonds (GNMA
and FNMA Mortgage-Backed Securities Program),
1991 Issue A, 7.350%, 9/01/24 (Alternative
Minimum Tax) AAA 3/01 at 102 3,548,779
- -----------------------------------------------------------------------------------------------------------------
COLORADO - 5.9%
4,690,000 Colorado Housing Finance Authority, Multi-Family
Housing Insured Mortgage Revenue Bonds, 1979
Series A, 6.900%, 10/01/21 Aa No Opt. Call 4,700,928
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
COLORADO (CONTINUED)
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1990A:
$ 9,920,000 8.500%, 11/15/23 (Alternative Minimum Tax) Baa 11/00 at 102 $ 11,219,421
17,350,000 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/00 at 102 19,206,624
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991A:
12,910,000 8.750%, 11/15/23 (Alternative Minimum Tax) Baa 11/01 at 102 15,092,823
4,140,000 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 4,590,225
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991D:
4,000,000 7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 4,401,960
4,850,000 7.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 5,066,553
1,500,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1992C,
6.350%, 11/15/01 (Alternative Minimum Tax) Baa No Opt. Call 1,567,710
5,110,000 County of Pueblo, Colorado, Hospital Refunding
and Improvement Revenue Bonds (Parkview
Episcopal Medical Center, Inc. Project), Series
1991B, 8.300%, 9/01/11 (Pre-refunded to 9/01/01) N/R 9/01 at 100 5,772,052
- -----------------------------------------------------------------------------------------------------------------
FLORIDA - 3.8%
7,725,000 Charoltte County, Florida, Utility System Refunding
Revenue Bonds, Series 1996A, 6.200%, 10/01/23 Aaa 10/97 at 100 7,741,995
5,250,000 Dade County Industrial Development Authority,
Solid Waste Disposal Revenue Bonds (Florida
Power & Light Company Project), Series 1991,
7.150%, 2/01/23 (Alternative Minimum Tax) AA- 2/01 at 102 5,680,605
13,650,000 Palm Beach County Health Facilities Authority,
Hospital Revenue Refunding Bonds, Series 1988
(JFK Medical Center, Inc. Projects),
8.875%, 12/01/18 (Pre-refunded to 12/01/98) N/R 12/98 at 102 14,845,057
8,485,000 St. Lucie County, Florida, Solid Waste Disposal
Revenue Bonds (Florida Power and Light Company
Project), Series 1991, 7.150%, 2/01/23
(Alternative Minimum Tax) AA- 2/01 at 102 9,196,043
City of Tampa, Florida, Capital Improvement
Program Revenue Bonds, Series 1988A:
1,665,000 8.000%, 10/01/02 AA 10/98 at 100 1,747,451
5,830,000 8.250%, 10/01/18 AA 10/98 at 100 6,128,263
- -----------------------------------------------------------------------------------------------------------------
GEORGIA - 2.9%
Clayton County Hospital Authority Revenue Anticipation
Certificates (Southern Regional Medical Center Project),
Georgia, Series 1991:
2,900,000 6.500%, 8/01/10 Aaa 8/01 at 102 3,087,949
4,500,000 7.000%, 8/01/13 Aaa 8/01 at 102 4,874,670
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
GEORGIA (CONTINUED)
$ 3,000,000 Clayton County Housing Authority, Multifamily
Housing Revenue Bonds, Spring Lake Apartments
Project, 8.125%, 12/01/05 (Mandatory put 12/01/97) Baa1 No Opt. Call $ 3,045,090
15,900,000 The Fulton-De Kalb Hospital Authority, Georgia,
Revenue Certificates, Series 1991 (Grady Memorial
Hospital), 6.900%, 1/01/20 (Pre-refunded to 1/01/01) Aaa 1/01 at 102 17,313,510
7,000,000 County Board of Education of Richmond County
(Georgia), General Obligation School Bonds,
Series 1997, 5.950%, 11/01/26 Aaa 5/98 at 100 7,009,730
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.1%
6,240,000 Illinois Development Finance Authority, Multi-Family
Housing Revenue Bonds, Series 1992 (Town and
Garden Apartments Project), 7.800%, 3/01/06
(Alternative Minimum Tax) BBB+ 3/02 at 102 6,554,933
11,000,000 Illinois Health Facilities Authority Hospital Revenue
Bonds Series 1993-A (Hinsdale Hospital),
7.000%, 11/15/19 Baa1 11/03 at 102 11,517,000
14,500,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1991 (Northwestern Memorial Hospital),
6.750%, 8/15/11 Aa 8/01 at 102 15,398,420
3,000,000 Illinois Health Facilities Authority, Revenue
Refunding Bonds, Series 1991 (Sherman Hospital
Project), 6.750%, 8/01/21 Aaa 8/01 at 102 3,221,520
5,265,000 Illinois Health Facilities Authority (Rockford
Memorial Hospital), Revenue Refunding Bonds,
Series 1991A, 6.000%, 8/15/21 Aaa 8/01 at 100 5,275,267
3,265,000 Illinois Health Facilities Authority Hospital Revenue
Bonds, Series 1993-A (Hinsdale Hospital),
9.000%, 11/15/15 Baa1 11/00 at 102 3,689,091
2,835,000 Illinois Housing Development Authority, Section 8
Elderly Housing Revenue Bonds (Garden House of
Maywood Development), Series 1992,
7.000%, 9/01/18 A 9/02 at 102 2,963,340
6,000,000 Central Lake County Joint Action Water Agency,
Lake County, Illinois, Water Revenue Bonds, Series
1990A, 7.000%, 5/01/19 (Pre-refunded to 5/01/00) Aaa 5/00 at 102 6,496,320
10,000,000 Central Lake County Joint Action Water Agency,
Lake County, Illinois, Water Revenue Bonds, Series
1991, 7.000%, 5/01/20 (Pre-refunded to 5/01/01) Aaa 5/01 at 102 10,979,100
7,460,000 City of Chicago, Chicago-O'Hare International
Airport, Special Facility Revenue Bonds (United Air
Lines, Inc. Project), Series 1984C, 8.200%, 5/01/18 Baa2 5/99 at 103 8,022,708
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 6,540,000 City of Chicago, Chicago-O'Hare International
Airport, Special Facility Revenue Bonds (United
Air Lines, Inc. Project), Series 1984B,
8.850%, 5/01/18 Baa2 11/00 at 103 $ 7,357,696
24,430,000 The County of Cook, Illinois, General Obligation
Bonds, Series 1991, 6.750%, 11/01/18
(Pre-refunded to 11/01/01) Aaa 11/01 at 102 26,790,671
3,590,000 Joliet Regional Port District Airport Facilities,
Revenue Bonds, Lewis University Airport, Series
97A, 7.250%, 7/01/18 (Alternative Minimum Tax) N/R 7/07 at 103 3,616,135
10,500,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992A,
6.125%, 6/01/22 Aaa 6/02 at 100 10,572,135
- -----------------------------------------------------------------------------------------------------------------
INDIANA - 1.3%
5,905,000 Indiana Health Facility Financing Authority,
Hospital Revenue Bonds, Series 1992 (Community
Hospitals Projects), 7.000%, 7/01/11
(Pre-refunded to 7/01/01) Aaa 7/01 at 102 6,492,902
4,000,000 The Indianapolis Local Public Improvement Bond
Bank, Series 1992 D Bonds, 6.500%, 2/01/22 A+ 2/98 at 100 4,041,760
5,125,000 City of Petersburg, Indiana, Pollution Control
Refunding Revenue Bonds, Series 1995A
(Indianapolis Power & Light Company Project),
6.625%, 12/01/24 Aa2 12/04 at 102 5,518,139
- -----------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
4,500,000 Polk County, Iowa, Health Facilities Revenue Bonds,
Catholic Health Corporation (Mercy Health Center
of Central Iowa Project), Series 1991,
6.750%, 11/01/15 Aaa 11/01 at 101 4,809,735
- -----------------------------------------------------------------------------------------------------------------
KANSAS - 1.6%
City of Merriam, Kansas, Hospital Refunding
Revenue Bonds, Series 1991B (Shawnee Mission
Medical Center, Inc. Project):
7,380,000 7.250%, 9/01/11 (Pre-refunded to 9/01/01) A- 9/01 at 102 8,185,896
10,000,000 7.250%, 9/01/21 (Pre-refunded to 9/01/01) A- 9/01 at 102 11,092,000
- -----------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.3%
3,000,000 Kentucky Development Finance Authority, Hospital
Facilities Revenue Bonds, Series 1991 (St. Claire
Medical Center, Inc. Project), 7.125%, 9/01/21
(Pre-refunded to 9/01/01) N/R 9/01 at 102 3,309,390
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
KENTUCKY (CONTINUED)
$ 10,225,000 Kentucky Housing Corporation, Housing Revenue
Bonds (Federally Insured or Guaranteed Mortgage
Loans), 1995 Series B, 6.625%, 7/01/26
(Alternative Minimum Tax) Aaa 1/05 at 102 $ 10,558,846
10,000,000 City of Danville, Kentucky, Multi-City Lease
Revenue Bonds (Louisville and Jefferson County
Metropolitan Sewer District Sewer and Drainage
System Revenue Project), Fixed Rate Series 1991-G,
6.800%, 3/01/19 (Pre-refunded to 3/01/02) Aaa 3/02 at 102 11,000,800
2,950,000 Greater Kentucky Housing Assistance Corporation,
Mortgage Revenue Refunding Bonds, Series 1992B
(FHA Insured Mortgage Loans-Section 8 Assisted
Projects), 7.625%, 1/01/25 Aaa 1/00 at 102 3,104,698
- -----------------------------------------------------------------------------------------------------------------
MARYLAND - 1.8%
Community Development Administration,
Department of Housing and Community
Development, State of Maryland, Single Family
Program Bonds, 1991 Fourth Series:
13,235,000 7.450%, 4/01/20 (Alternative Minimum Tax) Aa 4/01 at 102 13,892,647
3,990,000 7.450%, 4/01/32 (Alternative Minimum Tax) Aa 4/01 at 102 4,179,485
3,385,000 Community Development Administration,
Department of Housing and Community
Development, State of Maryland, Multi-Family
Housing Revenue Bonds (Insured Mortgage Loans),
1991 Series E, 7.100%, 5/15/28 Aa 5/01 at 102 3,520,908
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.8%
Massachusetts Bay Transportation Authority, General
Transportation System Bonds, 1991 Series A:
10,225,000 7.000%, 3/01/11 (Pre-refunded to 3/01/01) Aaa 3/01 at 102 11,210,077
19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) Aaa 3/01 at 102 21,488,264
5,100,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, New England Medical
Center Hospital Issue, Series F, 6.625%, 7/01/25 Aaa 7/02 at 102 5,430,480
15,000,000 Massachusetts Industrial Finance Agency, Resource
Recovery Revenue Bonds (SEMASS Project), Series
1991A, 9.000%, 7/01/15 N/R 7/01 at 103 16,814,850
3,300,000 Massachusetts Industrial Finance Agency, Resource
Recovery Revenue Bonds, Semass Project, Series
1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) N/R 7/01 at 103 3,699,267
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MICHIGAN - 3.4%
$ 5,000,000 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (The Detroit Medical Center
Obligated Group), Series 1991A, 7.500%, 8/15/11 A 8/01 at 102 $ 5,475,400
17,875,000 Michigan Strategic Fund Limited Obligation
Refunding Revenue Bonds (The Detroit Edison
Company Pollution Control Bonds Project),
Collateralized Series 1991DD, 6.875%, 12/01/21 Aaa 12/01 at 102 19,307,145
8,500,000 Michigan Strategic Fund, Limited Obligation
Revenue Bonds (Waste Management, Inc. Project),
Series 1992, 6.625%, 12/01/12 (Alternative
Minimum Tax) A1 12/02 at 102 9,078,765
7,000,000 City of Grand Rapids, Michigan, Water Supply
System Refunding Revenue Bonds Series 1991,
6.250%, 1/01/11 Aaa 1/01 at 102 7,295,260
- -----------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.0%
4,835,000 Minnesota Housing Finance Agency, Single Family
Mortgage Bonds, 1994 Series J, 6.950%, 7/01/26
(Alternative Minimum Tax) AA+ 1/04 at 102 5,055,041
3,655,000 The Dakota County Housing and Redevelopment
Authority, The Washington County Housing and
Redevelopment Authority, and The City of
Bloomington, Minnesota, Single Family Residential
Mortgage Revenue Bonds (GNMA Mortgage-Backed
Program), Series 1988, 8.450%, 9/01/19
(Alternative Minimum Tax) Aaa No Opt. Call 4,522,880
2,460,000 Washington County Housing and Redevelopment
Authority, Multifamily Housing Revenue Bonds
(FHA Insured Mortgage Loan-Cottages Phase III
Project), Series 1991, 7.650%, 8/01/32 (Alternative
Minimum Tax) AAA 8/01 at 102 2,613,012
- -----------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6%
3,385,000 Canton Housing Development Corporation, 1990
Multifamily Mortgage Revenue Refunding Bonds
(Canton Estates Apartments Project - FHA Insured
Mortgage, Section 8 Assisted Project), Series A,
7.750%, 8/01/24 AAA No Opt. Call 4,065,385
1,235,000 Charter Mortgage Corporation, 1990 Multifamily
Mortgage Revenue Refunding Bonds (Church
Garden Apartments - FHA Insured Mortgage,
Section 8 Assisted Project), Series A,
7.750%, 8/01/21 AAA 8/01 at 100 1,471,589
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MISSISSIPPI (CONTINUED)
$ 1,355,000 Pearl Housing Development Corporation, 1990
Multifamily Mortgage Revenue Refunding Bonds
(Rose Garden Apartments Project - FHA Insured
Mortgage, Section 8 Assisted Project), Series A,
7.750%, 8/01/22 AAA 2/01 at 100 $ 1,410,487
- -----------------------------------------------------------------------------------------------------------------
MISSOURI - 1.8%
Health and Educational Facilities Authority of the State of
Missouri, Health Facilities Refunding and Improvement
Revenue Bonds (Heartland Health System's Project), Series
1989:
3,070,000 7.625%, 10/01/00 BBB+ 10/99 at 102 1/2 3,333,406
6,500,000 8.125%, 10/01/10 BBB+ 10/99 at 102 1/2 7,131,085
The Industrial Development Authority of the County
of Jackson, State of Missouri, Health Care System
Revenue Bonds, St. Mary's Hospital of Blue Springs
Issue, Series 1994:
5,730,000 6.500%, 7/01/12 Baa1 7/02 at 102 5,820,362
5,605,000 7.000%, 7/01/22 Baa1 7/02 at 102 5,849,546
- -----------------------------------------------------------------------------------------------------------------
MONTANA - 0.6%
7,000,000 City of Forsyth, Rosebud County, Montana, Pollution
Control Revenue Refunding Bonds (Puget Sound
Power & Light Company Colstrip Project), Series
1992, 7.050%, 8/01/21 Aaa 8/01 at 102 7,598,780
- -----------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6%
11,000,000 Nebraska Investment Finance Authority, Single
Family Housing Revenue Bonds, 1995 Series A,
6.800%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 11,397,430
8,000,000 Nebraska Investment Finance Authority, Single
Family Housing Revenue Bonds, 1995 Series B,
6.450%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 8,097,840
- -----------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.6%
2,445,000 New Hampshire Housing Finance Authority, Single
Family Residential Mortgage Bonds, 1988 Series A,
8.500%, 7/01/14 (Alternative Minimum Tax) Aa 7/98 at 103 2,556,737
4,435,000 New Hampshire Housing Finance Authority, Single
Family Residential Mortgage Bonds, 1991 Series C,
7.100%, 1/01/23 Aa 7/01 at 102 4,638,833
- -----------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.1%
13,000,000 Pollution Control Financing Authority of Camden
County (Camden County, New Jersey), Solid Waste
Disposal and Resource Recovery System Revenue
Bonds, Series 1991 D, 7.250%, 12/01/10 Ba 12/01 at 102 13,424,840
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK - 12.3%
Dormitory Authority of the State of New York, State
University Educational Facilities, Revenue Bonds,
Series 1990A:
$ 13,000,000 7.400%, 5/15/01 Baa1 5/00 at 102 $ 13,956,670
11,750,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 12,979,050
8,325,000 Dormitory Authority of the State of New York,
Menorah Campus, Inc., FHA-Insured Mortgage
Revenue Bonds, Series 1991, 7.400%, 2/01/31 AA 8/01 at 102 9,103,554
21,075,000 New York Local Government Assistance Corporation,
New York, Series 1991B, 7.500%, 4/01/20
(Pre-refunded to 4/01/01) Aaa 4/01 at 102 23,551,313
New York State Medical Care Facilities Finance
Agency, FHA-Insured Mortgage Project Revenue
Bonds, 1995 Series F:
4,400,000 6.200%, 8/15/15 Aa 8/05 at 102 4,505,380
4,250,000 6.300%, 8/15/25 Aa 8/05 at 102 4,384,258
8,000,000 New York State Medical Care Facilities Finance
Agency, New York Hospital FHA-Insured Mortgage
Revenue Bonds, 1994 Series A (AMBAC Insured
Series), 6.500%, 8/15/29 Aaa 2/05 at 102 8,465,120
5,000,000 New York State Medical Care Facilities Finance
Agency, Brookdale Hospital Medical Center Secured
Hospital Revenue Bonds, 1995 Series A,
6.850%, 2/15/17 Baa 2/05 at 102 5,257,000
8,025,000 New York State Thruway Authority, General Revenue
Bonds, Series C, 6.000%, 1/01/25 Aaa 1/05 at 102 8,126,918
2,180,000 N.F. Housing and Commercial Rehabilitation
Corporation, 1992 Multifamily Mortgage Revenue
Refunding Bonds (FHA Insured Mortgage,
Section 8 Assisted Project), 7.350%, 8/01/23 AA No Opt. Call 2,471,728
2,090,000 The City of New York (New York), General
Obligation Bonds, Fiscal 1992 Series H,
7.000%, 2/01/18 Baa1 2/02 at 101 1/2 2,211,617
6,000,000 The City of New York (New York), General
Obligation Bonds, Fiscal 1993 Series B,
6.750%, 10/01/17 Baa1 10/02 at 101 1/2 6,282,360
6,750,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series F, 6.625%, 2/15/25 Baa1 2/05 at 101 6,989,963
11,000,000 The City of New York, General Obligation Bonds,
Fiscal 1996 Series J (Subseries J-1), 6.000%, 2/15/24 Baa1 2/06 at 101 1/2 10,734,130
6,000,000 The City of New York, General Obligation Bonds,
Fiscal 1997 Series H, 6.125%, 8/01/25 Baa1 8/07 at 101 5,943,600
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
The City of New York, General Obligation Bonds,
Fiscal 1995 Series B:
$ 2,235,000 7.250%, 8/15/19 (Pre-refunded to 8/15/04) Baa1 8/04 at 101 $ 2,558,159
3,265,000 7.250%, 8/15/19 Baa1 8/04 at 101 3,596,071
14,190,000 New York City, New York, Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Fiscal 1996 Series A, 5.875%, 6/15/25 Aaa 6/05 at 101 14,264,072
3,395,000 Penfield-Crown Oak Housing Development
Corporation, 1991 Multifamily Mortgage Revenue
Refunding Bonds (Crown Oak Estates - FHA
Insured Mortgage, Section 8 Assisted Project),
Series A, 7.350%, 8/01/23 AAA 2/03 at 100 3,576,021
- -----------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.9%
10,500,000 North Carolina Eastern Municipal Power Agency,
Power System Revenue Bonds, Refunding Series
1991 A, 6.250%, 1/01/03 Baa1 1/02 at 102 10,883,355
- -----------------------------------------------------------------------------------------------------------------
OHIO - 1.0%
6,595,000 Ohio Housing Finance Agency, Residential Mortgage
Revenue Bonds (GNMA Mortgage-Backed
Securities Program), 1995 Series A-2,
6.625%, 3/01/26 (Alternative Minimum Tax) AAA 3/05 at 102 6,798,390
4,800,000 County of Butler, Ohio, Hospital Facilities Revenue
Refunding and Improvement Bonds, Series 1991
(Fort Hamilton-Hughes Memorial Hospital
Center), 7.500%, 1/01/10 Baa 1/02 at 102 5,110,368
- -----------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.9%
14,380,000 Oklahoma County Home Finance Authority
(Oklahoma County, Oklahoma), Single Family
Mortgage Revenue Refunding Bonds, 1991
Series A, 8.750%, 7/01/12 A1 7/01 at 102 15,148,611
17,510,000 Pottawatomie County Home Finance Authority
(Oklahoma), Municipal Refunding, Collateralized
Mortgage Obligations (MR CMO), Series 1991 A,
8.625%, 7/01/10 Aaa No Opt. Call 22,732,358
10,000,000 Trustees of the Tulsa Municipal Airport Trust, 1988
Adjustable Rate Revenue Obligations,
7.375%, 12/01/20 (Alternative Minimum Tax) Baa2 12/00 at 102 10,611,500
10,100,000 Trustees of the Tulsa Municipal Airport Trust,
Revenue Bonds, Series 1991, 7.600%, 12/01/30
(Alternative Minimum Tax) Baa2 6/01 at 102 10,861,742
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA - 0.6%
Falls Township Hospital Authority, Refunding Revenue Bonds,
The Delaware Valley Medical Center Project (FHA Insured
Mortgage), Series 1992:
$ 4,215,000 6.900%, 8/01/11 AAA 8/02 at 102 $ 4,485,266
3,000,000 7.000%, 8/01/22 AAA 8/02 at 102 3,201,570
- -----------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.5%
5,260,000 Rhode Island Housing and Mortgage Finance
Corporation, Mortgage Finance Revenue Bonds,
1988 Series A (Corporation Supplemental Insurance
Program), 8.250%, 10/01/08 A1 4/98 at 102 5,465,982
- -----------------------------------------------------------------------------------------------------------------
SOUT CAROLINA - 0.6%
6,500,000 Lexington County Health Services District, Inc.,
South Carolina, Hospital Revenue Bonds, Series
1991, 6.750%, 10/01/18 Aaa 10/01 at 102 6,992,505
- -----------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1%
2,020,000 Metropolitan Government Nashville and Davidson
County Water and Sewer System, 7.000%, 1/01/14 A1 1/98 at 100 2,044,785
10,300,000 Metropolitan Nashville Airport Authority (Tennessee),
Airport Improvement Revenue Bonds, Refunding
Series 1991C, 6.625%, 7/01/07 Aaa 7/01 at 102 11,095,778
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 6.3%
14,360,000 Alliance Airport Authority, Inc., Special Facilities
Revenue Bonds, Series 1990 (American Airlines,
Inc. Project), 7.500%, 12/01/29 (Alternative
Minimum Tax) Baa2 12/00 at 102 15,320,684
Arlington Independent School District (Tarrant
County, Texas), Unlimited Tax Refunding and
Improvement Bonds, Series 1995:
11,635,000 0.000%, 2/15/11 Aaa 2/05 at 71 30/32 5,363,153
13,985,000 0.000%, 2/15/14 Aaa 2/05 at 58 22/32 5,207,315
5,000,000 Brazos River Authority (Texas), Collateralized
Revenue Refunding Bonds (Houston Lighting and
Power Company Project), Series 1988D,
7.750%, 10/01/15 A- 10/98 at 102 5,271,850
5,600,000 Dallas-Forth Worth International Airport Facility
Improvement Corporation, American Airlines, Inc.
Revenue Bonds, Series 1990, 7.500%, 11/01/25
(Alternative Minimum Tax) Baa2 11/00 at 102 5,956,160
10,390,000 Fort Worth Housing Finance Corporation, Home
Mortgage Revenue Refunding Bonds, Series 1991A,
8.500%, 10/01/11 Aa 10/01 at 103 11,285,514
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 7,815,000 City of Houston, Texas, Airport System Subordinate
Lien Revenue Bonds, Series 1991B, 6.625%, 7/01/22 Aaa 7/01 at 102 $ 8,372,913
City of Houston, Texas, Water and Sewer System,
Junior Lien Revenue Refunding Bonds, Series 1991C:
1,155,000 6.375%, 12/01/17 (Pre-refunded to 12/01/01) Aaa 12/01 at 102 1,250,842
17,345,000 6.375%, 12/01/17 Aaa 12/01 at 102 18,061,349
- -----------------------------------------------------------------------------------------------------------------
VERMONT - 0.7%
Vermont Housing Finance Agency, Single Family
Housing Bonds, Series 2:
1,595,000 6.875%, 5/01/25 (Alternative Minimum Tax) A1 11/01 at 102 1,640,745
6,405,000 7.300%, 5/01/25 (Alternative Minimum Tax) A1 11/01 at 102 6,651,593
- -----------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.2%
10,500,000 Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series A,
7.150%, 1/01/33 Aa1 1/02 at 102 10,894,275
3,860,000 Industrial Development Authority of the City of
Roanoke, Virginia, Hospital Revenue Bonds
(Roanoke Memorial Hospitals, Community
Hospital of Roanoke Valley and Franklin Memorial
Hospital Project), Series 1990, 6.500%, 7/01/25
(Pre-refunded to 7/01/00) Aaa 7/00 at 100 4,067,281
- -----------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.3%
4,750,000 Washington Health Care Facilities Authority,
Revenue Bonds, Series 1991 (Yakima Valley
Memorial Hospital Association, Yakima),
7.250%, 1/01/21 (Pre-refunded to 1/01/01) A 1/01 at 102 5,212,460
15,100,000 Washington Public Power Supply System, Nuclear
Project No. 2, Refunding Revenue Bonds, Series
1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 16,396,636
4,000,000 Washington Public Power Supply System, Nuclear
Project No. 2 Refunding Revenue Bonds, Series
1994A, 5.375%, 7/01/11 Aa1 7/04 at 102 3,827,600
14,500,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds, Series
1989B, 7.400%, 7/01/09 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 15,770,200
3,010,000 Camas School District No. 117, Clark County,
Washington, Unlimited Tax General Obligation
Bonds, 1995, 6.000%, 12/01/14 Aaa 12/05 at 100 3,075,587
4,185,000 Douglas County Public Utility District No. 1 Wells
Hydroelectric Project, 8.750%, 9/01/18 A+ 9/06 at 106 5,316,790
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 12,415,000 Federal Way School District No. 210, King County,
Washington, Unlimited Tax General Obligation
Bonds, 1991, 6.950%, 12/01/11 (Pre-refunded
to 12/01/03) A1 12/03 at 100 $ 13,806,348
Municipality of Metropolitan Seattle (Seattle,
Washington), Limited Sales Tax General Obligation
Bonds, Series 1991 (Refunding):
9,810,000 6.625%, 1/01/11 Aa 7/97 at 102 10,039,750
10,310,000 6.875%, 1/01/20 Aa 7/97 at 102 10,556,511
4,000,000 North Thurston School District No. 3, Thurston
County, Washington, Unlimited Tax General
Obligation Bonds, 1992, 6.500%, 12/01/09 A 12/02 at 100 4,248,080
- -----------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.7%
10,820,000 Wisconsin Health and Educational Facilities
Authority, Revenue Bonds, Series 1991-B (Novus
Health Group), 6.750%, 12/15/20 (Pre-refunded
to 12/15/01) Aaa 12/01 at 102 11,870,621
1,000,000 Wisconsin Health and Educational Facilities
Authority Revenue Bonds, Series 1997 (The
Medical College of Wisconsin, Inc. Project),
5.750%, 3/01/27 Aaa 3/07 at 102 978,280
7,000,000 Wisconsin Housing and Economic Development
Authority, Housing Revenue Bonds, 1992 Series A,
6.850%, 11/01/12 A1 1/02 at 102 7,318,430
- -----------------------------------------------------------------------------------------------------------------
WYOMING - 0.6%
2,390,000 Wyoming Community Development Authority,
Single Family Mortgage Bonds, 1991 Series B,
7.400%, 6/01/31 Aa 6/01 at 102 2,519,441
4,500,000 Wyoming Community Development Authority,
Single Family Mortgage Bonds 1988 Series G
(Federally Insured or Guaranteed Mortgage Loans),
7.250%, 6/01/21 (Alternative Minimum Tax) Aa 11/01 at 103 4,745,700
$1,128,770,000 Total Investments - (cost $1,114,255,623) - 98.4% 1,191,459,182
================
Other Assets Less Liabilities - 1.6% 19,709,844
Net-Assets - 100% $1,211,169,026
==============
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 62 $ 545,210,561 46%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, A3 29 180,392,675 15
PORTFOLIO OF A+ A1 11 80,013,880 7
INVESTMENTS: A, A- A, A2, A3 11 62,477,443 5
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 34 261,883,032 22
BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 13,424,840 1
Non-rated Non-rated 6 48,056,751 4
TOTAL 154 $1,191,459,182 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
(WI) Security purchased on a when-issued basis (note 1).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. (NPF)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.0%
$ 4,360,000 Alabama Higher Education Loan Corporation, Student
Loan Revenue Refunding Bonds, Series 1994-D,
5.850%, 9/01/04 (Alternative Minimum Tax) Aaa No Opt. Call $ 4,487,835
- -----------------------------------------------------------------------------------------------------------------
ALASKA - 0.4%
1,560,000 Municipality of Anchorage, Alaska, Home Mortgage
Revenue Bonds (Mortgage-Backed Securities
Program), 1992, 8.000%, 3/01/09 AAA 3/02 at 102 1,674,504
- -----------------------------------------------------------------------------------------------------------------
ARIZONA - 5.4%
5,500,000 Arizona Educational Loan Marketing Corporation,
1992 Educational Loan Revenue Bonds, Series B,
6.950%, 3/01/01 (Alternative Minimum Tax) A No Opt. Call 5,812,730
3,650,000 Gilbert Unified School District No. 41 of Maricopa
County, Arizona, School Improvement Bonds,
Project of 1993, Series C (1994), 6.100%, 7/01/14
(Pre-refunded to 7/01/04) Aaa 7/04 at 100 3,910,683
12,035,000 Yuma Regional Medical Center on behalf of Hospital
District No. 1 of Yuma County, Arizona, Hospital
Revenue Improvement and Refunding Bond (Yuma
Regional Medical Center Project), Series 1992,
8.000%, 8/01/17 (Pre-refunded to 8/01/02) A 8/02 at 101 1/2 13,910,294
- -----------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.3%
1,895,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Bonds, 1995 Series B
(Mortgage-Backed Securities Program),
6.550%, 7/01/18 (Alternative Minimum Tax) AAA 7/05 at 102 1,958,710
1,400,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Bonds, 1994 Series C
(Mortgage-Backed Securities Program),
6.600%, 7/01/17 AAA 7/05 at 102 1,463,098
379,513 Drew County (Arkansas), Pubic Facilities Board,
Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 8/01/11 Aaa 8/03 at 103 406,280
1,310,000 Residential Housing Facilities Board of Greene
County, Arkansas, Subordinated Mortgage Revenue
Bonds, Series 1991-1, 7.250%, 1/01/10 Aa 1/02 at 103 1,388,286
540,504 Public Facilities Board of Stuttgart, Arkansas, Single
Family Mortgage Revenue Refunding Bonds, Series
1993A, 7.900%, 9/01/11 Aaa 9/03 at 103 586,928
- ------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.2%
33,000,000 Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue Bonds Series 1995A,
0.000%, 1/01/17 Baa No Opt. Call 9,612,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 1.5%
Colorado Health Facilities Authority, Hospital
Refunding Revenue Bonds (National Jewish Center
For Immunology and Respiratory Medicine Project),
Series 1992:
$ 1,500,000 6.600%, 2/15/02 BBB- No Opt. Call $ 1,464,915
1,250,000 6.875%, 2/15/12 BBB- 2/02 at 102 1,272,363
3,000,000 7.100%, 2/15/22 BBB- 2/02 at 102 3,049,170
550,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1990A,
8.100%, 11/15/00 (Alternative Minimum Tax) Baa No Opt. Call 602,828
- ------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.2%
2,275,000 Connecticut Housing Finance Authority, Housing
Mortgage Finance Program Bonds, 1994 Series D,
Subseries D-2, 6.900%, 5/15/20 (Alternative
Minimum Tax) Aa 5/04 at 102 2,382,266
2,000,000 Connecticut Housing Finance Authority Housing
Mortgage Finance Program Bonds, 1996 Series C-2,
6.250%, 11/15/18 Aa 5/06 at 102 2,051,240
5,000,000 Connecticut Housing Finance Authority Housing
Mortgage Finance Program Bonds, 1997 Series A,
Subseries A-4, 6.200%, 11/15/22 (Alternative
Minimum Tax) AA 5/06 at 102 4,999,800
- ------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.8%
5,250,000 District of Columbia (Washington, D.C.), Hospital
Revenue Bonds (National Rehabilitation Hospital,
Inc. Issue), Series 1989A, Medlantic Healthcare
Group, 7.125%, 11/01/19 (Pre-refunded to 11/01/99) Aaa 11/99 at 102 5,658,240
2,000,000 District of Columbia, Hospital Revenue Refunding
Bonds (Washington Hospital Center Issue), Series
1992A, 7.000%, 8/15/05 Baa1 8/02 at 102 2,126,980
District of Columbia Housing Finance Agency,
Multifamily Housing Refunding Revenue Bonds,
Series 1992B (FHA Insured Mortgage Loan-Section
8 Assisted Project):
920,000 7.200%, 9/01/12 Aa 9/02 at 102 974,574
3,505,000 7.250%, 3/01/24 Aa 9/02 at 102 3,687,295
- ------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.4%
1,880,000 State of Florida, Full Faith and Credit, State Board
of Education, Public Education Capital Outlay
Bonds, Series 1991-B, 6.700%, 6/01/22
(Pre-refunded to 6/01/01) Aaa 6/01 at 101 2,031,942
4,000,000 Dade County, Florida, Aviation Bonds, Series 1996A,
5.750%, 10/01/18 (Alternative Minimum Tax) Aaa 10/06 at 102 3,944,080
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
GEORGIA - 0.6%
$ 2,000,000 Municipal Electric Authority of Georgia, Power
Revenue Bonds, Series EE, 7.250%, 1/01/24 Aaa No Opt. Call $ 2,439,580
- ------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
1,500,000 Idaho Housing and Finance Association, Single
Family Mortgage Bonds, 1996 Series E,
6.350%, 7/01/14 (Alternative Minimum Tax) Aa 7/06 at 102 1,521,405
- ------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.6%
Illinois Development Finance Authority, Multi-Family Housing
Bonds, Series 1990 (Affordable Housing Preservation
Foundation Project), Subseries B (FHA Insured Mortgage Loans
Lawless Gardens Project):
600,000 7.650%, 7/01/07 AAA 1/02 at 105 662,490
5,270,000 7.650%, 12/31/31 AAA 1/02 at 105 5,739,241
8,580,000 Illinois Development Finance Authority, Multi-family
Housing Revenue Bonds, Series 1992 (Town and
Garden Apartments Project), 7.800%, 3/01/06
(Alternative Minimum Tax) BBB+ 3/02 at 102 9,013,033
7,400,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1992 (Trinity Medical Center),
7.000%, 7/01/12 BBB 7/02 at 102 7,641,758
125,000 Illinois Health Facilities Authority, Revenue
Refunding Bonds, Series 1992A (Evangelical
Hospitals Corporation), 6.750%, 4/15/12
(Pre-refunded to 4/15/02) AA- 4/02 at 102 136,946
740,000 Illinois Health Facilities Authority, Revenue
Refunding Bonds, Series 1992A (Evangelical
Hospitals Corporation), 6.750%, 4/15/12 AA- No Opt. Call 825,818
4,790,000 Illinois Housing Development Authority, Section 8
Elderly Housing Revenue Bonds (Garden House
of Maywood Development), Series 1992,
7.000%, 9/01/18 A 9/02 at 102 5,006,843
810,000 Illinois Housing Development Authority, Section 8
Elderly Housing Revenue Bonds (Morningside
North Development), Series 1992D,
6.600%, 1/01/07 A 1/03 at 102 850,784
6,390,000 State of Illinois, Build Illinois Bonds (Sales Tax
Revenue Bonds), Series S, 6.800%, 6/15/12
(Pre-refunded to 6/15/00) Aaa 6/00 at 102 6,896,535
4,500,000 City of Chicago (Illinois), General Obligation
Adjustable Rate Bonds, Central Public Library
Project, Series C of 1988, 6.850%, 1/01/17
(Pre-refunded to 7/01/02) Aaa 7/02 at 101 1/2 4,960,530
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 8,075,000 Town of Cicero, Cook County, Illinois, General
Obligation Tax Increment Bonds, Series 1995A,
8.125%, 12/01/12 (Pre-refunded to 12/01/04) N/R 12/04 at 102 $ 9,598,995
2,000,000 Onterie Center Housing Finance Corporation (An
Illinois Not For Profit Corporation), Mortgage
Revenue Refunding Bonds, Series 1992A (FHA
Insured Mortgage Loan-Onterie Center Project),
7.050%, 7/01/27 Aaa 7/02 at 102 2,106,780
2,835,000 Village of Sugar Grove, Kane County, Illinois,
Waterworks and Sewerage Refunding Revenue
Bonds, Series 1992, 7.500%, 5/01/17 N/R 5/02 at 102 3,026,277
5,815,000 Town of Wood River, Wood River Township Hospital,
Madison County, Illinois, General Obligation
Bonds (Alternate Revenue Source), Series 1993,
6.625%, 2/01/14 BBB 2/04 at 102 6,166,575
5,760,000 Town of Wood River, Wood River Township Hospital,
Madison County, Illinois, General Obligation Tort
Immunity Bonds, Series 1993, 6.500%, 2/01/14 BBB 2/04 at 102 6,055,258
- ------------------------------------------------------------------------------------------------------------------
INDIANA - 1.2%
2,000,000 City of Indianapolis, Indiana, Exempt Facility
Revenue Bonds, Series 1991 (Mid America Energy
Resources, Inc. Project), 7.250%, 12/01/11
(Alternative Minimum Tax) A+ 6/99 at 102 2,081,080
2,860,000 PHM Elementary/Middle School Building
Corporation (St. Joseph County, Indiana), First
Mortgage Bonds, Series 1994, 6.300%, 1/15/09 A No Opt. Call 3,066,807
- ------------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
1,655,000 Iowa Student Loan Liquidity Corporation, Student
Loan Revenue Bonds, Senior Series B,
5.750%, 12/01/06 (Alternative Minimum Tax) Aaa 12/02 at 102 1,659,435
- ------------------------------------------------------------------------------------------------------------------
KANSAS - 1.0%
4,000,000 City of Hutchinson, Kansas, Single Family Mortgage
Revenue Refunding Bonds, Series 1992,
8.875%, 12/01/12 A 6/02 at 103 4,293,320
- ------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.2%
5,000,000 Kentucky Rural Economic Development Authority,
Economic Development Project Revenue Bonds,
Series 1992 (Donnelly Corporation Project),
8.125%, 7/01/12 (Alternative Minimum Tax) N/R 7/02 at 102 5,285,050
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
LOUISIANA - 0.3%
$ 1,310,000 Louisiana Housing Finance Agency, Mortgage
Revenue Bonds (GNMA Collateralized Mortgage
Loan-St. Dominic Assisted Care Facility), Series
1995, 6.850%, 9/01/25 AAA 9/05 at 103 $ 1,400,049
- ------------------------------------------------------------------------------------------------------------------
MAINE - 2.0%
8,470,000 Maine Educational Loan Marketing Corporation,
Subordinate Student Loan Revenue Bonds, Series
1994-2, 6.250%, 11/01/06 (Alternative
Minimum Tax) A No Opt. Call 8,970,662
- ------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.4%
6,000,000 Anne Arundel County, Maryland, Multifamily
Housing Revenue Bonds (Woodside Apartments
Project), Series 1994, 7.450%, 12/01/24 (Alternative
Minimum Tax) (Mandatory put 12/01/03) BBB+ No Opt. Call 6,284,640
- ------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.7%
1,000,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, Brigham and Women's
Hospital Issue, Series 1989 C, 7.000%, 6/01/18 A1 6/99 at 102 1,057,650
2,450,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, New England Deaconess
Hospital Issue, Series D, 6.875%, 4/01/22 A 4/02 at 102 2,622,627
3,875,000 Massachusetts Health and Educational, Facilities
Authority, Revenue Refunding Bonds, Youville
Hospital Issue (FHA Insured Project), Series B,
6.000%, 2/15/25 Aa 2/04 at 102 3,893,755
9,070,000 Massachusetts Industrial Finance Agency, Resource
Recovery Revenue Bonds, SEMASS Project, Series
1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) N/R 7/01 at 103 10,167,379
Massachusetts Municipal Wholesale Electric
Company, Power Supply System Revenue Bonds,
1987 Series A:
945,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) Aaa 7/97 at 102 971,592
45,000 8.750%, 7/01/18 BBB+ No Opt. Call 51,188
9,780,000 Massachusetts Water Resources Authority, General
Revenue Bonds, 1992 Series A, 6.750%, 7/15/12
(Pre-refunded to 7/15/02) Aaa 7/02 at 102 10,780,103
- ------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.7%
2,500,000 Wayne County Building Authority (State of
Michigan), Building Authority (Capital
Improvement), Bonds, Series 1992A (Limited Tax
General Obligation), 8.000%, 3/01/17
(Pre-refunded to 3/01/02) BBB+ 3/02 at 102 2,864,175
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA - 2.5%
$ 11,180,000 Northwest Minnesota Multi-County, Housing and
Redevelopment Authority, Governmental Housing
Revenue Bonds (Pooled Housing Program), Series
1994A, 8.125%, 10/01/26 N/R 10/04 at 102 $ 11,086,088
- ------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6%
8,610,000 Mississippi Home Corporation, Residual Revenue
Capital Appreciation Bonds, Series 1992-I,
0.000%, 9/15/16 Aaa 3/04 at 41 5/8 2,483,899
- ------------------------------------------------------------------------------------------------------------------
NEBRASKA - 4.1%
2,350,000 Nebraska Higher Education Loan Program Inc.,
Senior Subordinate Bonds, Series A-5B,
6.250%, 6/01/18 (Alternative Minimum Tax) Aa No Opt. Call 2,370,469
3,550,000 City of Grand Island, Nebraska, Electric System
Revenue Bonds, 1977 Series, 6.100%, 9/01/12 A1 9/97 at 101 3,645,602
10,935,000 Omaha Public Power District (Nebraska), Electric
System Revenue Bonds, 1992, Series A,
6.500%, 2/01/17 (Pre-refunded to 2/01/02) AAA 2/02 at 101 1/2 11,824,672
- ------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.5%
1,290,000 New Hampshire Municipal Bond Bank, Educational
Institutions Division Revenue Bonds (1994
Coe-Brown Northwood Academy Project),
7.250%, 5/01/09 N/R No Opt. Call 1,343,664
9,200,000 The Industrial Development Authority of the State
of New Hampshire, Resource Recovery Revenue
Bonds, Series 1987 (SES Concord Project),
8.500%, 1/01/09 A 1/98 at 102 9,582,536
- ------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.8%
6,500,000 Dormitory Authority of the State of New York, City
University System Consolidated Revenue Bonds,
Series 1990A, 7.625%, 7/01/20 (Pre-refunded
to 7/01/00) Aaa 7/00 at 102 7,186,725
5,000,000 New York Local Government Assistance Corporation,
New York, Series 1991B, 7.500%, 4/01/20
(Pre-refunded to 4/01/01) Aaa 4/01 at 102 5,587,500
4,930,000 New York State Medical Care Facilities Finance
Agency, St. Luke's-Roosevelt Hospital Center
FHA-Insured Mortgage Revenue Bonds, 1993
Series A, 5.600%, 8/15/13 AAA 8/03 at 102 4,902,984
6,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home FHA-Insured
Mortgage Revenue Bonds, 1992 Series B,
6.200%, 8/15/22 AAA 8/02 at 102 6,081,720
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 8,450,000 New York State Urban Development Corporation,
State Facilities Revenue Bonds, Series 1991,
7.500%, 4/01/20 (Pre-refunded to 4/01/01) Aaa 4/01 at 102 $ 9,442,875
3,500,000 The City of New York, General Obligation Bonds,
Fiscal 1992 Series B, 7.500%, 2/01/01 Baa1 No Opt. Call 3,775,170
The City of New York, General Obligation Bonds,
Fiscal 1995 Series E:
1,550,000 6.500%, 8/01/02 Baa1 No Opt. Call 1,636,335
3,080,000 6.600%, 8/01/04 Baa1 No Opt. Call 3,270,221
1,000,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series A, 7.000%, 8/01/04 Baa1 No Opt. Call 1,083,010
2,075,000 The City of New York, General Obligation Bonds,
Fiscal 1990 Series F, 8.400%, 11/15/05
(Pre-refunded to 11/15/01) Aaa 11/01 at 101 1/2 2,407,789
2,000,000 The City of New York, General Obligation Bonds,
Fiscal 1992 Series C, Fixed Rate Bonds, Subseries
C-1, 6.625%, 8/01/12 (Pre-refunded to 8/01/02) Aaa 8/02 at 101 1/2 2,191,380
4,000,000 The City of New York, General Obligation Bonds,
Fiscal 1996 Series J (Subseries J-1), 5.875%, 2/15/19 Baa1 2/06 at 101 1/2 3,866,160
The City of New York, General Obligation Bonds,
Fiscal 1991 Series D:
1,915,000 9.500%, 8/01/02 (Pre-refunded to 8/01/01) Aaa 8/01 at 101 1/2 2,284,825
2,085,000 9.500%, 8/01/02 Baa1 8/01 at 101 1/2 2,434,926
- ------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.5%
2,130,000 North Carolina Housing Finance Agency, Multifamily
Revenue Refunding Bonds (1992 Refunding Bond
Resolution), Series B, 6.900%, 7/01/24 Aa 7/02 at 102 2,235,073
- ------------------------------------------------------------------------------------------------------------------
OHIO - 5.1%
11,735,000 Ohio Housing Finance Agency, Single Family
Mortgage Revenue Bonds (GNMA Mortgage-
Backed Securities Program), 1989 Series A,
7.650%, 3/01/29 (Alternative Minimum Tax) AAA 9/99 at 102 12,341,934
8,500,000 Akron, Bath and Copley Joint Township Hospital
District, Ohio, Hospital Facilities Revenue Bonds,
Series 1987 (Akron City Hospital Project),
8.875%, 11/15/07 (Pre-refunded to 11/15/97) Aaa 11/97 at 102 8,893,890
925,000 Toledo-Lucas County Port Authority, Development
Revenue Bonds (Northwest Ohio Bond Fund),
Series 1992A, 7.750%, 5/15/07 (Alternative
Minimum Tax) N/R 5/00 at 102 964,137
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA - 4.4%
$ 2,000,000 Falls Township Authority, Refunding Revenue Bonds,
The Delaware Valley Medical Center Project (FHA
Insured Mortgage), Series 1992, 7.000%, 8/01/22 AAA 8/02 at 102 $ 2,134,380
1,175,000 Northampton County Hospital Authority
(Pennsylvania), Hospital Revenue Bonds (Easton
Hospital), Series A of 1992, 6.900%, 1/01/02 BBB No Opt. Call 1,222,517
7,660,000 City of Philadelphia, Pennsylvania, Water and Sewer
Revenue Bonds, Tenth Series, 7.350%, 9/01/04 Aaa No Opt. Call 8,629,679
4,450,000 The Hospitals and Higher Education Facilities
Authority of Philadelphia, Hospital Revenue Bonds
(Children's Seashore House), Series 1992B,
7.000%, 8/15/22 A- 8/02 at 102 4,710,503
2,500,000 The Hospitals and Higher Education Facilities
Authority of Philadelphia Hospital Revenue Bonds
(Children's Seashore House), Series 1992A,
7.000%, 8/15/12 A- 8/02 at 102 2,653,925
- ------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.5%
6,510,000 South Dakota Student Loan Assistance Corporation,
Student Loan Revenue Bonds, Series 1989-B,
7.400%, 8/01/99 (Alternative Minimum Tax) A No Opt. Call 6,759,723
- ------------------------------------------------------------------------------------------------------------------
TEXAS - 3.6%
4,347,931 General Services Commission (an Agency of the
State of Texas), as Lessee, Participation Interests,
7.500%, 9/01/22 A 9/97 at 102 4,335,060
9,500,000 Harris County Health Facilities Development
Corporation, Adjustable Convertible Extendable
Securities (Greater Houston Pooled Health Care
Loan Program), Series 1985B, 7.375%, 12/01/25
(Mandatory put 12/01/98) Aa3 11/97 at 100 9,576,950
1,850,000 Victoria Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds, Series 1995,
8.125%, 1/01/11 Aaa No Opt. Call 1,986,455
- ------------------------------------------------------------------------------------------------------------------
UTAH - 0.3%
1,250,000 Utah Housing Finance Agency, Single Family
Mortgage Bonds, 1996 Series C, 6.450%, 7/01/14
(Alternative Minimum Tax) Aa 1/07 at 102 1,264,162
- ------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.0%
5,000,000 Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series A,
7.100%, 1/01/22 Aa1 1/02 at 102 5,192,450
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
VIRGINIA (CONTINUED)
$ 3,200,000 Suffolk Redevelopment and Housing Authority,
Multifamily Housing Revenue Refunding Bonds,
Series 1994 (Chase Heritage at Dulles Project),
7.000%, 7/01/24 (Mandatory put 7/01/04) Baa2 7/02 at 104 $ 3,420,351
- ------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.2%
9,500,000 State of Washington, General Obligation and
General Obligation Refunding Bonds, Series
1992A and AT-6, 6.250%, 2/01/11 Aa No Opt. Call 10,290,210
2,500,000 Washington Health Care Facilities Authority,
Revenue Bonds, Series 1992 (Sacred Heart Medical
Center, Spokane), 6.875%, 2/15/12 AA- 2/02 at 102 2,668,800
3,000,000 Washington Public Power Supply System, Nuclear
Project No. 1, Refunding Revenue Bonds, Series
1989A, 7.500%, 7/01/07 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 3,241,170
2,000,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Bonds, Series 1990B,
7.375%, 7/01/04 Aa1 7/00 at 102 2,172,880
- ------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.5%
2,000,000 West Virginia Housing Development Fund, Housing
Finance Bonds, 1992 Series B, 7.200%, 11/01/20
(Alternative Minimum Tax) Aaa 5/02 at 102 2,099,500
- ------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.2%
5,950,000 Wisconsin Housing and Economic Development
Authority, Housing Revenue Bonds, 1992 Series A,
6.850%, 11/01/12 A1 1/02 at 102 6,220,665
2,985,000 Silver Lake Sanitary District, Waushara County,
Wisconsin, Sewer System Mortgage Revenue Bonds,
8.000%, 10/01/18 (Pre-refunded to 10/01/02) N/R 10/02 at 100 3,427,466
- -----------------------------------------------------------------------------------------------------------------
WYOMING - 0.9%
4,000,000 Wyoming Community Development Authority,
Single Family Mortgage Bonds (Federally Insured
or Guaranteed Mortgage Loans), 1988 Series E,
7.750%, 6/01/09 (Alternative Minimum Tax) Aa 11/99 at 103 4,120,160
- ------------------------------------------------------------------------------------------------------------------
$430,777,948 Total Investments - (cost $402,492,339) - 97.3% 426,606,891
================
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.2%
$ 1,200,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series B, Variable Rate Demand Bonds,
3.950%, 8/15/22+ VMIG-1 $ 1,200,000
1,000,000 Port Authority of New York and New Jersey, Variable
Rate Demand Bonds, 3.950%, 6/01/20+ VMIG -1 1,000,000
3,100,000 Sublette County Adjustable Tender Pollution Control
(Exxon Project), Alternative Minimum Tax,
Variable Rate Demand Bonds, 4.000%, 7/01/17+ A-1+ 3,100,000
$ 5,300,000 Total Temporary Investments - 1.2% 5,300,000
================
Other Assets Less Liabilities - 1.5% 6,565,434
Net Assets - 100% $438,472,325
============
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 37 $157,460,012 37%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 61,752,539 14
PORTFOLIO OF A+ A1 4 13,004,997 3
INVESTMENTS A, A- A, A2, A3 13 72,575,814 17
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 21 76,914,473 18
TEMPORARY Non-rated Non-rated 8 44,899,056 11
INVESTMENTS):
TOTAL 102 $426,606,891 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $ 771,045,577 $ 728,104,358 $1,191,459,182 $ 426,606,891
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 6,650,000 900,000 -- 5,300,000
Cash 10,432 18,072 729,465 516,943
Receivables:
Interest 15,938,079 14,788,577 24,609,063 7,950,242
Investments sold 35,875 330,384 3,830,326 180,000
Other assets 40,157 50,628 60,326 20,830
-------------- -------------- -------------- --------------
Total assets 793,720,120 744,192,019 1,220,688,362 440,574,906
-------------- -------------- -------------- --------------
LIABILITIES
Payable for investments purchased -- -- 3,846,118 --
Accrued expenses:
Management fees (note 6) 404,924 380,148 614,684 228,086
Other 175,569 183,827 336,459 127,418
Preferred share dividends payable 91,363 97,342 183,921 54,748
Common share dividends payable 2,994,191 2,827,479 4,538,154 1,692,329
-------------- -------------- -------------- --------------
Total liabilities 3,666,047 3,488,796 9,519,336 2,102,581
-------------- -------------- -------------- --------------
Net assets (note 7) $ 790,054,073 $ 740,703,223 $1,211,169,026 $ 438,472,325
============== ============== ============== ==============
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 35,434,213 33,461,292 53,077,819 19,678,246
============== ============== ============== ==============
Netasset value per Common share outstanding (net
assets less Preferred
shares at liquidation value,
divided by Common shares outstanding) $ 15.24 $ 14.96 $ 15.28 $ 15.17
============== ============== ============== ==============
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1997
(Unaudited)
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 25,461,056 $ 23,951,670 $ 39,101,758 $ 14,136,619
------------ ------------ ------------ ------------
Expenses:
Management fees (note 6) 2,471,731 2,315,243 3,739,813 1,389,766
Preferred shares--auction fees 312,500 300,000 500,000 175,000
Preferred shares--dividend disbursing agent fees 22,254 25,109 29,692 14,815
Shareholders' servicing agent fees and expenses 44,535 40,006 65,751 23,448
Custodian's fees and expenses 53,580 50,701 74,532 35,235
Directors' fees and expenses (note 6) 3,128 2,977 4,805 1,816
Professional fees 13,983 13,836 15,196 11,426
Shareholders' reports--printing and mailing expenses 80,445 78,236 126,390 56,168
Stock exchange listing fees 17,364 17,415 24,308 12,129
Investor relations expense 30,763 28,536 46,591 16,924
Other expenses 19,894 18,357 28,262 11,850
------------ ------------ ------------ ------------
Total expenses 3,070,177 2,890,416 4,655,340 1,748,577
------------ ------------ ------------ ------------
Net investment income 22,390,879 21,061,254 34,446,418 12,388,042
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
(notes 1 and 3) 1,516,595 (542,167) 515,361 (26,289)
Net change in unrealized appreciation or depreciation
of investments (9,988,677) (4,706,604) (9,386,148) (3,199,869)
------------ ------------ ------------ ------------
Net gain (loss) from investments (8,472,082) (5,248,771) (8,870,787) (3,226,158)
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 13,918,797 $ 15,812,483 $ 25,575,631 $ 9,161,884
============ ============ ============ ============
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQM NQS
Six months ended Year ended Six months ended Year ended
4/30/97 10/31/96 4/30/97 10/31/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 22,390,879 $ 45,525,573 $ 21,061,254 $ 42,356,923
Net realized gain (loss) from investment
transactions (notes 1 and 3) 1,516,595 1,504,856 (542,167) (606,382)
Net change in unrealized appreciation or
depreciation of investments (9,988,677) (7,671,673) (4,706,604) (4,774,830)
------------- ------------- ------------- -------------
Net increase in net assets from operations 13,918,797 39,358,756 15,812,483 36,975,711
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (17,965,151) (36,524,778) (16,954,718) (33,838,039)
Preferred shareholders (4,248,939) (9,160,050) (4,137,869) (8,711,507)
From accumulated net realized gains from
investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions
to shareholders (22,214,090) (45,684,828) (21,092,587) (42,549,546)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions -- 454,280 924,538 749,508
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (8,295,293) (5,871,792) (4,355,566) (4,824,327)
Net assets at beginning of period 798,349,366 804,221,158 745,058,789 749,883,116
------------- ------------- ------------- -------------
Net assets at end of period $ 790,054,073 $ 798,349,366 $ 740,703,223 $ 745,058,789
============= ============= ============= =============
Balance of undistributed net investment
income at end of period $ 1,180,918 $ 1,004,129 $ 814,210 $ 845,543
============= ============= ============= =============
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQU NPF
Six months ended Year ended Six months ended Year ended
4/30/97 10/31/96 4/30/97 10/31/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 34,446,418 $ 68,911,832 $ 12,388,042 $ 24,906,103
Net realized gain (loss) from investment
transactions (notes 1 and 3) 515,361 (491,071) (26,289) 959,626
Net change in unrealized appreciation
or depreciation of investments (9,386,148) 1,379,318 (3,199,869) 1,395,464
--------------- --------------- --------------- ---------------
Net increase in net assets from operations 25,575,631 69,800,079 9,161,884 27,261,193
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (27,228,926) (54,457,859) (10,145,088) (19,922,661)
Preferred shareholders (6,840,514) (14,584,206) (2,212,948) (5,053,788)
From accumulated net realized gains from
investment transactions:
Common shareholders -- -- (766,737) (1,184,250)
Preferred shareholders -- -- (192,920) (328,412)
--------------- --------------- --------------- ---------------
Decrease in net assets from distributions
to shareholders (34,069,440) (69,042,065) (13,317,693) (26,489,111)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment
of distributions -- -- 474,995 --
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (8,493,809) 758,014 (3,680,814) 772,082
Net assets at beginning of period 1,219,662,835 1,218,904,821 442,153,139 441,381,057
--------------- --------------- --------------- ---------------
Net assets at end of period $ 1,211,169,026 $ 1,219,662,835 $ 438,472,325 $ 442,153,139
=============== =============== =============== ===============
Balance of undistributed net investment
income at end of period $ 2,281,381 $ 1,904,403 $ 1,354,632 $ 1,324,626
=============== =============== =============== ===============
See accompanying notes to financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 1997, the National Funds (the "Funds")
covered in this report and their corresponding New
York Stock Exchange symbols are Nuveen Investment
Quality Municipal Fund, Inc. (NQM), Nuveen Select
Quality Municipal Fund, Inc. (NQS), Nuveen Quality
Income Municipal Fund, Inc. (NQU) and Nuveen Premier
Municipal Income Fund, Inc. (NPF).
Each Fund invests primarily in a diversified portfolio
of municipal obligations issued by state and local
government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
The following is a summary of significant accounting
policies followed by the Funds in the preparation of
their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation The prices of municipal bonds in each Fund's
investment portfolio are provided by a pricing service
approved and supervised by the Fund's Board of
Directors. When price quotes are not readily available
(which is usually the case for municipal securities),
the pricing service establishes fair market value
based on yields or prices of municipal bonds of
comparable quality, type of issue, coupon, maturity
and rating, indications value from securities dealers
and general market conditions. Temporary investments
in securities that have variable rate and demand
features qualifying them as short-term securities are
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 April
30, 1997, NQU had purchase commitments of $3,846,118.
There were no such purchase commitments in any of the
other funds.
<PAGE>
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 Each Fund is a separate taxpayer for
federal income tax purposes. Each Fund intends to
comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and
to distribute all of its tax-exempt net investment
income, in addition to any significant amounts of net
realized capital gains and/or market discount realized
from investment transactions. The Funds currently
consider significant net realized capital gains and/or
market discount as amounts in excess of $.01 per
Common share. Furthermore, each Fund intends to
satisfy conditions which will enable interest from
municipal securities, which is exempt from regular
federal income tax, to retain such tax-exempt status
when distributed to shareholders of the Funds. Net
realized capital gain and market discount
distributions are subject to federal taxation.
Dividends and Tax-exempt net investment income is declared as a
Distributions to dividend monthly and payment is made or reinvestment
Shareholders is credited to shareholder accounts after month-end.
Net realized capital gains and/or market discount
from investment transactions are distributed to
shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryovers.
Distributions to shareholders of tax-exempt net
investment income, net realized capital gains and/or
market discount are recorded on the ex-dividend date.
The amount and timing of distributions are determined
in accordance with federal income tax regulations,
which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions
as a result of these differences may occur and will be
classified as either distributions in excess of net
investment income, distributions in excess of net
realized gains and/or distributions in excess of net
ordinary taxable income from investment transactions,
where applicable.
<PAGE>
Preferred Shares The Funds have issued and outstanding $25,000
stated value Preferred shares. Each Fund's Preferred
shares are issued in more than one Series. The
dividend rate may change every seven days, as set by
the Auction Agent. The number of Preferred shares
outstanding, by Series and in total, for each Fund is
as follows:
<TABLE>
<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 2,000 3,000 2,800
Series W 2,500 2,800 3,000 --
Series Th -- -- 4,000 2,800
Series F 2,500 2,800 3,000 --
------ ----- ------ -----
Total 10,000 9,600 16,000 5,600
====== ===== ====== ======
</TABLE>
Derivative Financial The Funds may invest in transactions in certain
Instruments derivative financial instruments including futures,
forward, swap, and option contracts, and other
financial instruments with similar characteristics.
Although the Funds are authorized to invest in such
financial instruments, and may do so in the future,
they did not make any such investments during the
six months ended April 30, 1997.
Use of Estimates The preparation of financial statements
in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets
and liabilities at the date of the financial
statements and the reported amounts of increases and
decreases in net assets from operations during the
reporting period.
<PAGE>
<TABLE>
2. FUND SHARES
Transactions in Common shares were as follows:
<CAPTION>
NQM NQS
Six months ended Year ended Six months ended Year ended
4/30/97 10/31/96 4/30/97 10/31/96
<S> <C> <C> <C> <C>
Common Shares:
Shares issued to shareholders due to reinvestment
of distributions -- 29,711 60,933 49,729
===== ====== ====== ======
<CAPTION>
NQU NPF
Six months ended Year ended Six months ended Year ended
4/30/97 10/31/96 4/30/97 10/31/96
<S> <C> <C> <C> <C>
Common Shares:
Shares issued to shareholders due to reinvestment
of distributions -- -- 31,228 --
===== ===== ====== =====
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the six months ended
April 30, 1997, were as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $67,140,565 $35,646,321 $75,022,253 $14,737,976
Temporary municipal investments 71,375,000 39,000,000 17,100,000 15,900,000
SALES AND MATURITIES
Investments in municipal securities 68,829,091 23,209,345 74,196,574 19,851,935
Temporary municipal investments 67,525,000 42,500,000 17,100,000 11,400,000
=========== =========== =========== ===========
</TABLE>
At April 30, 1997, the identified cost of investments
owned for federal income tax purposes was the same as
the cost for financial reporting purposes for each
Fund.
At October 31, 1996, the Funds' last fiscal year end,
the following Funds had unused capital loss carryovers
available for federal income tax purposes to be
applied against future capital gains, if any. If not
applied the carryovers will expire as follows:
<TABLE>
<CAPTION>
NQM NQS NQU
<S> <C> <C> <C>
Expiration year:
2001 $1,088,991 $ -- $ --
2002 -- 6,626,291 5,529,513
2003 315,370 424,861 757,201
2004 -- 606,382 486,077
---------- ---------- ----------
Total $1,404,361 $7,657,534 $6,772,791
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1997, the Funds declared Common share
dividend distributions from their tax-exempt net
investment income which were paid June 2, 1997, to
shareholders of record on May 15, 1997, as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Dividend per share $.0845 $.0845 $.0855 $.0860
====== ====== ====== ======
</TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at April 30, 1997, were
as follows:
<TABLE>
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $ 47,174,357 $ 44,981,534 $ 77,546,188 $ 24,320,394
depreciation (2,619,682) (2,923,707) (342,629) (205,842)
------------ ------------ ------------ ------------
Net unrealized appreciation $ 44,554,675 $ 42,057,827 $ 77,203,559 $ 24,114,552
============ ============ ============ ============
</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
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>
<S> <C>
Average daily net asset value Management fee
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
</TABLE>
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.
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS At April 30, 1997, 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 354,342 334,613 530,778 196,782
Paid-in surplus 493,851,904 465,696,274 737,405,481 272,834,560
Balance of undistributed net investment income 1,180,918 814,210 2,281,381 1,354,632
Accumulated net realized gain (loss) from
investment transactions 112,234 (8,199,701) (6,252,173) (28,201)
Net unrealized appreciation of investments 44,554,675 42,057,827 77,203,559 24,114,552
--------------- --------------- --------------- ---------------
Net assets $ 790,054,073 $ 740,703,223 $ 1,211,169,026 $ 438,472,325
=============== =============== =============== ===============
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 April 30, 1997, 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 19% 20% 20% 29%
Health Care Facilities 16 3 9 10
Pollution Control Facilities 6 11 12 2
Electric Utilities 6 11 2 2
Transportation -- 6 8 3
Educational Facilities 4 2 1 7
Water / Sewer Facilities 2 6 5 1
Lease Rental Facilities 3 -- 1 1
Other 6 2 8 5
General Obligation Bonds 5 9 6 10
Escrowed Bonds 33 30 28 30
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
</TABLE>
<PAGE>
Certain long-term and intermediate-term investments
owned by the Funds are either covered by insurance
issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S.
Government agency securities, both of which ensure the
timely payment of principal and interest in the event
of default (60% for NQM, 47% for NQS, 46% for NQU and
33% 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.
Certain temporary investments in short-term municipal
securities have credit enhancements (letters of
credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions (100%
for NQM, 100% for NQS, N/A for NQU and 42% for NPF).
For additional information regarding each investment
security, refer to the Portfolio of Investments of
each Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS
AS FOLLOWS:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders++
NQM
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $15.480 $ .632 $ (.245) $ (.507) $(.120)
Year ended 10/31:
1996 15.650 1.286 (.165) (1.032) (.259)
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>
Six months ended
4/30/97 15.120 .630 (.159) (.507) (.124)
Year ended 10/31:
1996 15.290 1.269 (.164) (1.014) (.261)
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)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders++ discounts of period period
NQM
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $ -- $ -- $ -- $15.240 $14.875
Year ended 10/31:
1996 -- -- -- 15.480 15.000
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>
Six months ended
4/30/97 -- -- -- 14.960 15.125
Year ended 10/31:
1996 -- -- -- 15.120 15.125
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
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value+ value+ thousands) net assets+++ net assets+++ rate
NQM
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 2.59% 1.73% $790,054 .78%* 5.67%* 9%
Year ended 10/31:
1996 6.13 5.70 798,349 .78 5.71 8
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>
Six months ended
4/30/97 3.41 2.31 740,703 .78* 5.71* 3
Year ended 10/31:
1996 9.71 5.71 745,059 .78 5.69 13
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
See notes on page 74.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD
IS AS FOLLOWS:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders++
NQU
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $15.440 $ .649 $ (.167) $ (.513) $(.129)
Year ended 10/31:
1996 15.430 1.299 .012 (1.026) (.275)
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>
Six months ended
4/30/97 15.380 .630 (.162) (.516) (.113)
Year ended 10/31:
1996 15.340 1.267 .121 (1.014) (.257)
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
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders++ discounts of period period
NQU
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $ -- $ -- $ -- $15.280 $15.250
Year ended 10/31:
1996 -- -- -- 15.440 15.250
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>
Six months ended
4/30/97 (.039) (.010) -- 15.170 15.500
Year ended 10/31:
1996 (.060) (.017) -- 15.380 15.125
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
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value+ value+ thousands) net assets+++ net assets+++ rate
NQU
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 3.41% 2.30% $1,211,169 .77%* 5.70%* 6%
Year ended 10/31:
1996 10.61 6.93 1,219,663 .77 5.67 11
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>
Six months ended
4/30/97 6.26 2.26 438,472 .80* 5.67* 3
Year ended 10/31:
1996 11.00 7.51 442,153 .81 5.66 8
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.
+ Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination of
reinvested dividend income, reinvested capital gains distributions, if any, and
changes in net asset value per share.
++ The amounts shown are based on Common share equivalents.
+++ Ratios do not reflect the effect of dividend payments to Preferred shareholders.
</FN>
</TABLE>
<PAGE>
Serving investors for generations
Photographic image of John Nuveen Sr., founder of Nuveen.
Since our founding in 1898, John Nuveen & Co. Incorporated has been synonymous
with investments that withstand the test of time. Today, we offer a broad range
of investments designed for mature investors whose portfolios are the principal
source of their ongoing financial security. More than 1.3 million investors have
entrusted Nuveen to help them maintain the lifestyle they currently enjoy.
A value investing approach--purchasing securities of strong companies and
communities that represent good long-term value--is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized municipal research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of taxable and tax-free investment
products--including equity and fixed-income mutual funds, unit trusts,
exchange-traded funds, individual managed account services, and cash
management products.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
FSA-3-4.97
