OCTOBER 31, 1997
Annual Report
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NQM
Investment Quality
NQS
Select Quality
NQU
Quality Income
NPF
Premier Income
Photo of: Family at Canyon
<PAGE>
Build Your Wealth Automatically
Nuveen offers a number of convenient ways to add to your portfolio and earn the
tax-free income you need to achieve your financial goals.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check, or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also benefit from dollar-cost averaging, a technique of
investing at regular intervals, which allows you to build a high-quality,
tax-free portfolio conveniently and cost effectively over time.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you
own. Income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date; no interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase
(continued on inside back cover)
<PAGE>
Blow-in copy:
BUILD A BETTER PORTFOLIO WITH NUVEEN
Your financial adviser can show you how you can combine this Nuveen fund with
other Nuveen stock and bond investments to build a portfolio that will help you
meet your short- and longer-term goals.
Together, you can craft an investment portfolio that provides the income you
need today and is positioned for the growth you need for tomorrow, while
simultaneously offering tax-efficiency and moderated overall risk.
Talk with your adviser about putting Nuveen's full family of funds and trusts
to work for you.
NUVEEN INVESTMENTS CAN HELP
YOU SUSTAIN THE WEALTH OF A LIFETIME
MUTUAL FUNDS
Nuveen Rittenhouse Growth Fund (available February 1998)
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
National Municipal Bond Funds
State-Specific Municipal Bond Funds
UNIT TRUSTS
Equity
Corporate Bond
Municipal Bond
EXCHANGE-TRADED FUNDS
MUNI PREFFERED(R)
PRIVATE ASSET MANAGEMENT
For more information about any of these Nuveen products, including charges and
expenses, call your financial adviser for a prospectus where available, or call
Nuveen at (800) 621-7227. Please read it carefully before you invest.
<PAGE>
Contents
2 DEAR SHAREHOLDER
4 ANSWERING YOUR QUESTIONS
7 NQM PERFORMANCE OVERVIEW
8 NQS PERFORMANCE OVERVIEW
9 NQU PERFORMANCE OVERVIEW
10 NPF PERFORMANCE OVERVIEW
11 SHAREHOLDER MEETING REPORT
13 FINANCIAL SECTION
63 FUND INFORMATION
Ghosted image of: Family at Canyon
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Wealth takes a lifetime to build. Once achieved, it should be preserved
Dear Shareholder
It's a pleasure to report to you on the performance of your Nuveen
exchange-traded funds. Over the past 12 months, the funds have performed well,
rewarding investors with dependable tax-free income and attractive returns.
Investors continued to enjoy solid dividend yields generated by each fund's
portfolio of municipal bonds. As of October 31, 1997, new shareholders were
receiving current market yields that ranged from 6.25% to 6.36%. To match these
yields, investors in the 31% federal tax bracket would have had to earn at least
9.06% on taxable alternatives. Dividend stability continues to be a hallmark of
the Nuveen exchange-traded funds, as the dividends for the four funds in this
report were declared a total of 48 times over the past year with only two
adjustments.
For the fiscal year ended October 31, 1997, the total return on net asset value
of the funds ranged from 8.68% to 9.35%, providing taxable-equivalent returns of
11.70% to 12.43% for investors in the 31% federal income tax bracket. For
shareholders in higher tax brackets, the tax-adjusted returns were even more
attractive. You will find additional details on the individual performance of
each fund on pages 7-10.
As the year draws to a close, it seems appropriate to take a moment to look back
over what has been an exceptional time for the American economy, the financial
markets--and the investors in those markets. 1997 has been distinguished by
continued economic strength, the lowest unemployment rates in more than two
decades, and progress on fiscal issues, including a reduction in the federal
deficit. While much of investors' attention has remained focused on the stock
market, the achievements of the bond market should not be overlooked. During
1997, the environment for bond performance was enhanced by a substantial decline
in interest rates, reflecting investors' confidence that inflation can remain
near its current annual rate of 2.2%, one of the lowest levels for the Consumer
Price Index in 30 years.
<PAGE>
The events of 1997 have also focused renewed attention on the need for
diversification and asset allocation. Stock market volatility, especially in
late October, provided a vivid illustration of the steadying effect that fixed
income investments can provide in a well-constructed investment portfolio.
Nuveen exchange-traded funds provide an excellent balance to other stock and
bond investments, and their current yields make them very attractive.
You already know you can rely on Nuveen to provide the tax-advantaged
investments you need to achieve your investment goals. Your financial adviser
can introduce you to a variety of other Nuveen products and services to round
out your portfolio of core investments, including the Nuveen Growth and Income
Stock Fund and two balanced stock and bond funds. We have also expanded our
private asset management capabilities through the acquisition of Rittenhouse
Financial Services, a well-respected growth investment manager. We encourage you
to talk to your financial adviser about ways to complement your current Nuveen
investment by taking advantage of these additional products and services.
We at Nuveen remain committed to providing you with quality investment solutions
that withstand the test of time. We thank you for your confidence in us and our
family of investments, and we look forward to our next report to you.
"The funds have performed well, rewarding investors with dependable tax-free
income and attractive returns."
Sincerely,
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
December 12, 1997
"The funds have performed well, rewarding investors with dependable tax-free
income and attractive returns."
<PAGE>
Answering Your Questions
Photo of: Ted Neild
Ted Neild, managing director of Nuveen's portfolio management team, talks about
the municipal bond market and offers insights into factors that affected the
performance of the funds over the past year.
WHAT ECONOMIC AND MARKET FACTORS INFLUENCED THE PERFORMANCE OF MUNICIPAL BONDS
OVER THE PAST YEAR?
Over the past 12 months, the performance of the municipal bond market was
influenced by three major factors: the continued strength of the U.S. economy,
minimal inflation (both of which are reflected in the steady-to-declining
interest rates evident during the year), and volatility in the equity markets.
During 1997, these factors contributed to a positive environment for
fixed-income investments, including municipal issues.
Between November 1996 and October 1997, the yield on the 30-year Treasury bond
dropped from 6.68% to 6.15%, and the municipal market followed suit, as the
yield on the Bond Buyer 40 declined from 5.80% to 5.40%. The spread between
tax-free municipal bonds and taxable Treasury bonds remained tight, making
municipal bonds very attractive. The total returns produced in this environment
were somewhat muted by a heavy supply of newly issued municipal bonds that
temporarily impacted bond prices. The increased supply worked to our advantage,
however, as it expanded opportunities to find value in the marketplace.
HOW HAVE THESE FUNDS PERFORMED DURING THIS PERIOD?
As Tim mentioned in his letter to shareholders, total returns for these funds
ranged from 8.68% to 9.35% for the 12 months ended October 31, 1997.
The performance of the Nuveen funds covered in this report is especially
noteworthy in view of the fact that they were originally constructed in a higher
interest rate environment. This means that a large number of bonds in the
portfolios are currently valued at substantial premiums. These bonds offer the
benefit of additional price stability in volatile markets, but their upside
potential during market rallies can be limited.
<PAGE>
Over the past year we have held the bonds in these portfolios, with their
emphasis on current income and price stability, rather than selling them in an
effort to extend duration. In this way, we were able to maintain attractive
yields, reduce price volatility, and limit capital gains distributions to
shareholders, resulting in more tax-efficient funds.
HOW DOES THE USE OF LEVERAGE IMPACT THE FUNDS' DIVIDENDS?
All the funds in this report use leverage as an additional way to enhance income
for common shareholders. Leveraged funds issue short-term preferred shares,
which is similar to borrowing money at short-term rates and then investing the
proceeds into long-term bonds. The difference in rates boosts the dividend for
common shareholders. The dividends of leveraged funds also can be affected by a
sudden or prolonged rise in short-term interest rates. As short-term rates
increase, preferred shareholders enjoy higher dividends and less income is
available for common shareholders.
WHAT ARE YOUR KEY STRATEGIES FOR THE COMING YEAR?
We are currently pursuing several strategies aimed at enhancing the structure of
the portfolios. Specifically, we will be focusing on upgrading the call
protection of the Nuveen exchange-traded funds. By selling bonds with shorter
call protection to retail buyers, we can redeploy assets into the institutional
and new offering markets, extending call protection while supporting the funds'
dividend yields. We will also be exploring opportunities to purchase discount
bonds, which offer the potential for price appreciation as well as longer
duration and added income stability if interest rates continue to decline.
Secondly, while credit spreads are tight, we will continue to take advantage of
opportunities to purchase bonds with good credit quality at yields that are
similar to bonds with lower ratings. During the past year, as the yield
differentials between AAA and BBB bonds narrowed, we were able to buy the more
highly rated bonds without sacrificing much yield, thereby enhancing the credit
quality of our portfolios. We believe that as credit spreads widen again, these
high-quality issues will increase in value relative to lower-rated bonds.
We will also continue to look for bonds that are underpriced or undervalued by
the market. We believe that by concentrating on identifying individual bonds
with current yields, prices, credit quality and future prospects that are
exceptionally attractive in relation to other bonds in the market, the portfolio
will be positioned to deliver above-market performance.
We also plan to leverage the supply-and-demand opportunities created by new
issues and explore bonds that may be overlooked in the secondary markets as
attention focuses on new issues. Excess supply, particularly in New York as well
as the Sunbelt states, should create buying opportunities. In New York, the
supply of newly issued bonds rose 36% in the first nine months of 1997, compared
with a 17% increase in municipal supply nationally. Typically, such heavy supply
temporarily depresses bond prices, enabling us to inexpensively purchase
longer-term bonds, which have the potential to outperform comparable investment
candidates.
" We believe that by concentrating on identifying individual bonds with current
yields, prices, credit quality and future prospects that are exceptionally
attractive in relation to other bonds in the market, the port folio will be
positioned to deliver above-market performance."
<PAGE>
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET?
Looking at the year ahead, we believe the overall market will continue to strike
a good balance between supply and demand. We expect supply to increase as new
issuers continue to enter the market. On the demand side, volatility in the
equity markets, plus the potential for a weakening of the economy, could spark
increased interest in bonds of all types.
Over the past year, we have seen the number of advance refundings by bond
issuers rise. If the lower interest rate environment continues, we can expect
more issuers to follow their example. In an advance refunding, the proceeds of a
new bond issue are invested in U.S. government or agency securities, with the
loan secured by project revenues or general tax receipts. The cash from the
escrow account is used to pay off the debt on the original bond issue. Because
the coupon rate of the original bond is typically higher than that of the new
issue, which is now secured by the federal government and rated AAA, the
refunded bonds will appreciate in value.
Overall, we expect our portfolios to continue to benefit from tight credit
spreads, as we take advantage of opportunities to enhance quality, yield and the
potential for price appreciation.
<PAGE>
Nuveen Investment Quality Municipal Fund, Inc.
Performance Overview
As of October 31, 1997
NQM
Fund Highlights
- ----------------------------------------------------------
Inception Date 6/90
- ----------------------------------------------------------
Share Price 15 9/16
- ----------------------------------------------------------
Net Asset Value $15.77
- ----------------------------------------------------------
Average Weighted Duration (Years) 6.12
- ----------------------------------------------------------
Average Weighted Maturity (Years) 22.02
- ----------------------------------------------------------
Net Assets ($000) $809,337
- ----------------------------------------------------------
Current Market Yield 6.36%
- ----------------------------------------------------------
Taxable Equivalent Yield(1) 9.22%
- ----------------------------------------------------------
Annualized Total Return (at NAV)
- ----------------------------------------------------------
1-Year 8.68%
- ----------------------------------------------------------
3-Year 9.62%
- ----------------------------------------------------------
5-Year 7.88%
- ----------------------------------------------------------
Since Inception 8.93%
- ----------------------------------------------------------
Taxable Equivalent Total Return(2)
- ----------------------------------------------------------
1-Year 11.70%
- ----------------------------------------------------------
3-Year 12.78%
- ----------------------------------------------------------
5-Year 11.16%
- ----------------------------------------------------------
Since Inception 12.20%
- ----------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the yield of the Nuveen fund on an after-tax basis. It is based on
the current market yield and a federal tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
Pie Charts
Credit Quality
BBB/NR 13%
A 8%
AA 18%
AAA 61%
Diversification
Pollution Control 4%
General Obligation 5%
Education 4%
Other 8%
Water &Sewer 3%
Utilities 7%
Lease Rental 3%
Health Care 15%
Housing 20%
Escrowed Bonds 31%
Bar Chart
Dividend History
11/96 0.0845
12/96 0.0845
1/97 0.0845
2/97 0.0845
3/97 0.0845
4/97 0.0845
5/97 0.0845
6/97 0.0845
7/97 0.0845
8/97 0.0825
9/97 0.0825
10/97 0.0825
<PAGE>
Nuveen Select Quality Municipal Fund, Inc.
Performance Overview
As of October 31, 1997
NQS
Fund Highlights
- ---------------------------------------------------------
Inception Date 3/91
- ---------------------------------------------------------
Share Price 15 1/2
- ---------------------------------------------------------
Net Asset Value $15.48
- ---------------------------------------------------------
Average Weighted Duration (Years) 5.14
- ---------------------------------------------------------
Average Weighted Maturity (Years) 22.87
- ---------------------------------------------------------
Net Assets ($000) $759,770
- ---------------------------------------------------------
Current Market Yield 6.31%
- ---------------------------------------------------------
Taxable Equivalent Yield(1) 9.14%
- ---------------------------------------------------------
Annualized Total Return (at NAV)
- ---------------------------------------------------------
1-Year 9.35%
- ---------------------------------------------------------
3-Year 10.57%
- ---------------------------------------------------------
5-Year 8.12%
- ---------------------------------------------------------
Since Inception 8.68%
- ---------------------------------------------------------
Taxable Equivalent Total Return(2)
- ---------------------------------------------------------
1-Year 12.43%
- ---------------------------------------------------------
3-Year 13.77%
- ---------------------------------------------------------
5-Year 11.43%
- ---------------------------------------------------------
Since Inception 11.90%
- ---------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the yield of the Nuveen fund on an after-tax basis. It is based on
the current market yield and a federal tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
Pie Charts:
Credit Quality
BBB/NR 17%
A 16%
AA 13%
AAA 54%
Diversification
Pollution Control 8%
Water & Sewer 6%
General Obligation 8%
Health Care 4%
Utilities 9%
Other 5%
Transportation 10%
Housing 20%
Escrowed Bonds 30%
Bar Chart
Dividend History
11/96 0.0845
12/96 0.0845
1/97 0.0845
2/97 0.0845
3/97 0.0845
4/97 0.0845
5/97 0.0845
6/97 0.0845
7/97 0.0845
8/97 0.0815
9/97 0.0815
10/97 0.0815
<PAGE>
Nuveen Quality Income Municipal Fund, Inc.
Performance Overview
As of October 31, 1997
NQU
Morningstar Rating(1)
Graphic of: 4 stars
- ----------------------------------------------------------
Fund Highlights
- ----------------------------------------------------------
Inception Date 6/91
- ----------------------------------------------------------
Share Price 16 5/16
- ----------------------------------------------------------
Net Asset Value $15.73
- ----------------------------------------------------------
Average Weighted Duration (Years) 4.17
- ----------------------------------------------------------
Average Weighted Maturity (Years) 21.97
- ----------------------------------------------------------
Net Assets ($000) $1,238,536
- ----------------------------------------------------------
Current Market Yield 6.29%
- ----------------------------------------------------------
Taxable Equivalent Yield(2) 9.12%
- ----------------------------------------------------------
Annualized Total Return (at NAV)
- ----------------------------------------------------------
1-Year 8.81%
- ----------------------------------------------------------
3-Year 10.65%
- ----------------------------------------------------------
5-Year 8.77%
- ----------------------------------------------------------
Since Inception 8.87%
- ----------------------------------------------------------
Taxable Equivalent Total Return(3)
- ----------------------------------------------------------
1-Year 11.89%
- ----------------------------------------------------------
3-Year 13.83%
- ----------------------------------------------------------
5-Year 12.03%
- ----------------------------------------------------------
Since Inception 12.03%
- ----------------------------------------------------------
1 Overall rating within the municipal bond category for the period ended October
31, 1997. Morningstar proprietary ratings reflect historical risk-adjusted
performance and are subject to change every month. Ratings are calculated from
a fund's three-, five- and 10-year average annual returns in excess of 90-day
Treasury bill returns, with appropriate fee adjustments and a risk factor that
reflects fund performance below 90-day Treasury bill returns. NQU earned five
stars for the three-year period and four stars for the five-year period ended
October 31, 1997. In an investment category, 10% of funds receive five stars
and 22.5% receive four stars. For the period ending October 31, 1997, 197
municipal bond funds were rated for the three-year period, 121 for the
five-year period, and eight for the 10-year period.
2 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the yield of the Nuveen fund on an after-tax basis. It is based on
the current market yield and a federal tax rate of 31%.
3 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
Pie Chart
Credit Quality
BBB/NR 25%
A 13%
AA 15%
AAA 47%
Diversification
Water & Sewer 5%
Health Care 6%
Pollution Control 4%
Other 15%
General Obligation 8%
Transportation 10%
Housing 19%
Escrowed Bonds 33%
Bar Chart
Dividend History
11/96 0.0855
12/96 0.0855
1/97 0.0855
2/97 0.0855
3/97 0.0855
4/97 0.0855
5/97 0.0855
6/97 0.0855
7/97 0.0855
8/97 0.0855
9/97 0.0855
10/97 0.0855
<PAGE>
Nuveen Premier Municipal Income Fund, Inc.
Performance Overview
As of October 31, 1997
NPF
Graphic of: 4 stars
Morningstar Rating(1)
- ---------------------------------------------------------
Fund Highlights
- ---------------------------------------------------------
Inception Date 12/91
- ---------------------------------------------------------
Share Price 16 1/2
- ---------------------------------------------------------
Net Asset Value $15.62
- ---------------------------------------------------------
Average Weighted Duration (Years) 5.05
- ---------------------------------------------------------
Average Weighted Maturity (Years) 18.11
- ---------------------------------------------------------
Net Assets ($000) $448,807
- ---------------------------------------------------------
Current Market Yield 6.25%
- ---------------------------------------------------------
Taxable Equivalent Yield(2) 9.06%
- ---------------------------------------------------------
Annualized Total Return (at NAV)
- ---------------------------------------------------------
1-Year 8.85%
- ---------------------------------------------------------
3-Year 11.07%
- ---------------------------------------------------------
5-Year 9.44%
- ---------------------------------------------------------
Since Inception 8.84%
- ---------------------------------------------------------
Taxable Equivalent Total Return(3)
- ---------------------------------------------------------
1-Year 11.96%
- ---------------------------------------------------------
3-Year 14.24%
- ---------------------------------------------------------
5-Year 12.59%
- ---------------------------------------------------------
Since Inception 11.88%
- ---------------------------------------------------------
1 Overall rating within the municipal bond category for the period ended October
31, 1997. Morningstar proprietary ratings reflect historical risk-adjusted
performance and are subject to change every month. Ratings are calculated from
a fund's three-, five- and 10-year average annual returns in excess of 90-day
Treasury bill returns, with appropriate fee adjustments and a risk factor that
reflects fund performance below 90-day Treasury bill returns. NPF earned five
stars for the three-year period and four stars for the five-year period ended
October 31, 1997. In an investment category, 10% of funds receive five stars
and 22.5% receive four stars. For the period ending October 31, 1997, 197
municipal bond funds were rated for the three-year period, 121 for the
five-year period, and eight for the 10-year period.
2 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the yield of the Nuveen fund on an after-tax basis. It is based on
the current market yield and a federal tax rate of 31%.
3 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
4 The fund paid shareholders a capital gains distribution in December of $0.0391
per share.
Pie Charts
Credit Quality
BBB/NR 28%
A 22%
AA 12%
AAA 38%
Diversification
Other 8%
Transportation 5%
Industrial Development 3%
Health Care 7%
Education 7%
General Obligation 10%
Housing 29%
Escrowed Bonds 31%
Bar Chart
Dividend History(4)
11/96 0.086
12/96 0.086
1/97 0.086
2/97 0.086
3/97 0.086
4/97 0.086
5/97 0.086
6/97 0.086
7/97 0.086
8/97 0.086
9/97 0.086
10/97 0.086
<PAGE>
Shareholder
Meeting Report
Annual Meeting Date: July 30, 1997
<TABLE>
<CAPTION>
Investment Quality Select Quality Quality Income
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Total Shares Outstanding: 35,434,212.8820 33,481,339.4720 53,120,264.9990
=======================================================================================================
Total Shares Voted: 27,285,464.8300 27,443,224.0020 43,887,422.0950
=======================================================================================================
Robert P. Bremner For 27,004,188.0910 27,173,082.7930 43,446,241.5850
Withhold 281,276.7390 270,141.2090 441,180.5100
- -------------------------------------------------------------------------------------------------------
Total 27,285,464.8300 27,443,224.0020 43,887,422.0950
=======================================================================================================
Lawrence H. Brown For 27,018,824.5040 27,192,609.4640 43,470,342.0400
Withhold 266,640.3260 250,614.5380 417,080.0550
- -------------------------------------------------------------------------------------------------------
Total 27,285,464.8300 27,443,224.0020 43,887,422.0950
=======================================================================================================
Anthony T. Dean For 27,018,324.5040 27,197,531.5000 43,470,695.9880
Withhold 267,140.3260 245,698.5020 416,726.1070
- -------------------------------------------------------------------------------------------------------
Total 27,285,464.8300 27,443,230.0020 43,887,422.0950
=======================================================================================================
Anne E. Impellizzeri For 27,008,688.7280 27,186,792.3810 43,453,997.0350
Withhold 276,776.1020 256,437.6210 433,425.0600
- -------------------------------------------------------------------------------------------------------
Total 27,285,464.8300 27,443,230.0020 43,887,422.0950
=======================================================================================================
Peter R. Sawers For 27,014,011.0090 27,199,110.4640 43,473,655.0400
Withhold 271,453.8210 244,119.5380 413,767.0550
- -------------------------------------------------------------------------------------------------------
Total 27,285,464.8300 27,443,230.0020 43,887,422.0950
=======================================================================================================
Judith M. Stockdale For 26,994,631.3660 27,162,608.4210 43,438,969.2830
Withhold 290,833.4640 280,621.5810 448,452.8120
- -------------------------------------------------------------------------------------------------------
Total 27,285,464.8300 27,443,230.0020 43,887,422.0950
=======================================================================================================
Ratification of Auditors For 26,870,010.5740 27,044,580.7660 43,254,264.5050
Against 129,246.6860 105,411.6480 173,357.6660
Abstain 286,207.5700 293,231.5880 459,802.9240
- -------------------------------------------------------------------------------------------------------
Total 27,285,464.8300 27,443,224.0020 43,887,425.0950
=======================================================================================================
<PAGE>
<CAPTION>
Shareholder
Meeting Report
Annual Meeting Date: July 30, 1997
Premier Income
- -----------------------------------------------------------
<S> <C>
Total Shares Outstanding: 19,693,439.0000
===========================================================
Total Shares Voted: 16,646,435.9470
===========================================================
Robert P. Bremner For 16,459,787.9960
Withhold 186,647.9510
- -----------------------------------------------------------
Total 16,646,435.9470
===========================================================
Lawrence H. Brown For 16,473,584.4750
Withhold 172,851.4720
- -----------------------------------------------------------
Total 16,646,435.9470
===========================================================
Anthony T. Dean For 16,472,484.4750
Withhold 173,951.4720
- -----------------------------------------------------------
Total 16,646,435.9470
===========================================================
Anne E. Impellizzeri For 16,473,584.4750
Withhold 172,851.4720
- -----------------------------------------------------------
Total 16,646,435.9470
===========================================================
Peter R. Sawers For 16,473,284.4750
Withhold 173,151.4720
- -----------------------------------------------------------
Total 16,646,435.9470
===========================================================
Judith M. Stockdale For 16,463,773.0610
Withhold 182,662.8860
- -----------------------------------------------------------
Total 16,646,435.9470
===========================================================
Ratification of Auditors For 16,435,219.9540
Against 65,369.1790
Abstain 145,846.8140
- -----------------------------------------------------------
Total 16,646,435.9470
===========================================================
</TABLE>
<PAGE>
Ghosted image of: Family at canyon
Financial Section
Contents
14 PORTFOLIO OF INVESTMENTS
47 STATEMENT OF NET ASSETS
49 STATEMENT OF OPERATIONS
51 STATEMENT OF CHANGES IN NET ASSETS
53 NOTES TO FINANCIAL STATEMENTS
60 FINANCIAL HIGHLIGHTS
62 INDEPENDENT AUDITOR'S REPORT
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Investment Quality
Municipal Fund, Inc. (NQM)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
ALASKA - 1.8%
$ 14,850,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 1994 Series A, 6/04 at 102 Aa2 $14,859,356
5.400%, 12/01/13
ARKANSAS - 0.4%
3,250,000 City of North Little Rock, Arkansas, Health Facilities Board, Healthcare 12/06 at 101 Aaa 3,261,863
Revenue Bonds (Baptist Health), Series 1996A, 5.400%, 12/01/16
CALIFORNIA - 15.2%
22,400,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 5/03 at 102 AA 22,400,000
1993 Series C, 5.600%, 5/01/33
11,625,000 California Health Facilities Financing Authority, Hospital Revenue Bonds (Childrens 6/01 at 102 Aaa 12,984,311
Hospital of Los Angeles), 1991 Series A, 7.125%, 6/01/21 (Pre-refunded
to 6/01/01)
5,700,000 State Public Works Board of the State of California, Lease Revenue Refunding Bonds 6/03 at 102 A1 5,692,248
(The Regents of the University of California), 1993 Series A (Various
University of California Projects), 5.500%, 6/01/21
9,830,000 Certificates of Participation (1991 Financing Project), County of Alameda, 9/06 at 102 Aaa 10,490,969
California, Alameda County Public Facilities Corporation, 6.000%, 9/01/21
7,140,000 Culver City Redevelopment Financing Authority, 1993 Tax Allocation Refunding 11/03 at 102 Aaa 6,781,643
Revenue Bonds, 5.000%, 11/01/23
9,740,000 Huntington Park Redevelopment Agency, Single Family Residential Mortgage Revenue No Opt. Call Aaa 13,224,582
Refunding Bonds, 1986 Series A, 8.000%, 12/01/19
4,000,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda University 12/03 at 102 BBB 4,232,840
Medical Center Project), Series 1993-A, 6.500%, 12/01/18
2,325,000 City of Loma Linda, California, Hospital Revenue Refunding Bonds (Loma Linda 12/03 at 102 Aaa 2,197,916
University Medical Center Project), Series 1993-C, 5.000%, 12/01/22
7,155,000 Department of Water and Power of The City of Los Angeles, Water Works Refunding 5/03 at 102 Aaa 6,250,250
Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/23
15,770,000 Ontario Redevelopment Financing Authority (San Bernardino County, California), No Opt. Call Aaa 20,823,339
1995 Revenue Refunding Bonds (Ontario Redevelopment Project No 1),
7.400%, 8/01/25
13,145,000 City of Perris, California, Single Family Mortgage Revenue Bonds (GNMA Mortgage- No Opt. Call Aaa 17,284,623
Backed Securities), 1988 Series B, 8.200%, 9/01/23 (Alternative Minimum Tax)
COLORADO - 2.7%
2,500,000 Colorado Housing Finance Authority, Single Family Program Senior and Subordinate 5/06 at 105 Aa2 2,858,525
Bonds, 1996 Series B, 7.450%, 11/01/27
4,940,000 Castle Pines Metropolitan District, Douglas County, Colorado, General Obligation 12/00 at 102 Aaa 5,536,456
Refunding and Improvement Bonds, Series 1990, 7.625%, 12/01/15 (Pre-refunded
to 12/01/00)
2,265,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A, 11/01 at 100 Baa1 2,521,149
8.000%, 11/15/25 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
COLORADO - continued
$ 820,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A, 1/01 at 100 Baa1 $ 933,488
8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01)
7,865,000 Colorado Springs School District No. 11, El Paso County, Colorado, General 2/07 at 125 Aa 9,905,024
Obligation Improvement Bonds, Series 1996, 7.125%, 12/01/21
CONNECTICUT - 2.1%
7,030,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 5/06 at 102 Aa 7,322,378
1996 Series D, Subseries D-2, 6.200%, 11/15/27 (Alternative Minimum Tax)
Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds,
1997 Series C:
1,000,000 5.700%, 11/15/17 (Alternative Minimum Tax) 1/07 at 102 AA 1,011,270
8,625,000 5.850%, 11/15/28 (Alternative Minimum Tax) 1/07 at 102 AA 8,758,860
DISTRICT OF COLUMBIA - 0.7%
5,215,000 District of Columbia Housing Finance Agency, Collateralized Single Family 2/00 at 102 AAA 5,487,640
Mortgage Revenue Bonds, Series 1990A, 8.100%, 12/01/23 (Alternative
Minimum Tax)
FLORIDA - 5.0%
4,000,000 Hillsborough County Port District, Florida (Tampa Port Authority), Revenue 2/00 at 102 Baa1 4,546,200
Bonds, Series 1990, 8.250%, 6/01/09 (Pre-refunded to 12/01/00)
20,000,000 Jacksonville Health Facilities Authority, Health Facilities Revenue 1/00 at 102 Aaa 22,282,600
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)
Orange County Housing Finance Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds, 1990 Series A:
2,035,000 7.500%, 7/01/10 7/00 at 103 Aaa 2,162,126
11,035,000 7.600%, 1/01/24 7/00 at 103 Aaa 11,841,438
GEORGIA - 4.4%
5,990,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series Q, 1/98 at 102 A 6,151,371
8.375%, 1/01/16
5,250,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series O, 1/98 at 102 A 5,389,335
8.125%, 1/01/17
2,250,000 Municipal Electric Authority of Georgia, Project One Special Obligation No Opt. Call A 2,576,993
Bonds, Fourth Crossover Series, 6.500%, 1/01/20
2,760,000 Urban Residential Finance Authority of the City of Atlanta, Georgia, Single 10/98 at 103 AAA 2,872,415
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)
10,000,000 Development Authority of Monroe County (Georgia), Pollution Control 10/99 at 102 A1 10,505,000
Revenue Bonds (Georgia Power Company Plant Scherer Project), Second
Series 1994, 6.750%, 10/01/24
7,325,000 Wayne County Development Authority, Solid Waste Disposal Revenue Bonds (ITT 1/00 at 102 BBB+ 7,941,838
Rayonier, Inc. Project), Series 1990, 8.000%, 7/01/15 (Alternative
Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
ILLINOIS - 5.4%
$ 5,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1989B (ServantCor), 8/99 at 102 N/R $5,417,150
7.875%, 8/15/19 (Pre-refunded to 8/15/99)
3,305,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1990 (Riverside 11/00 at 102 A3 3,673,243
Senior Living Center Project), 7.500%, 11/01/20 (Pre-refunded to 11/01/00)
7,500,000 Community College District No. 508, Cook County, Illinois, Certificates of No Opt. Call Aaa 9,688,350
Participation, 8.750%, 1/01/07
5,900,000 Community Unit School District Number 7, Madison County, Illinois, School No Opt. Call Aaa 6,400,556
Building Bonds, Series 1994, 5.850%, 2/01/13
3,585,000 City of Pekin, Illinois, Multifamily Housing Refunding Revenue Bonds, 5/03 at 103 AAA 3,833,333
Series 1992A (FHA Insured Mortgage Loan - Section 8 Assisted Project),
6.875%, 5/01/22
2,585,000 City of Peoria, Peoria County, Illinois, City of Pekin, Tazewell and Peoria 8/00 at 103 AAA 2,723,815
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)
860,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry No Opt. Call Aaa 1,141,856
and Will Counties, Illinois, General Obligation Bonds, Series 1992B,
9.000%, 6/01/07
5,390,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and No Opt. Call Aaa 7,156,519
Will Counties, Illinois, General Obligation Bonds, Series 1992A,
9.000%, 6/01/07
Southwestern Illinois Development Authority, Solid Waste Disposal
Revenue Bonds (Laclede Steel Company Project), Series 1990:
700,000 8.375%, 8/01/08 (Alternative Minimum Tax) 8/00 at 103 A 775,425
2,910,000 8.500%, 8/01/20 (Alternative Minimum Tax) 8/00 at 103 A 3,232,777
INDIANA - 0.8%
6,000,000 Hospital Authority of Delaware County (Indiana), Hospital Revenue Bonds, 8/01 at 102 Aaa 6,499,620
Series 1991 (Ball Memorial Hospital), 6.625%, 8/01/16
KANSAS - 1.5%
4,500,000 Sedgwick County, Kansas and Shawnee County, Kansas, Single Family Mortgage No Opt. Call Aaa 4,903,875
Revenue Bonds (Mortgaged-Backed Securities Program), 1997 Series A-1,
5.500%, 6/01/29 (Alternative Minimum Tax) (DD)
4,970,000 City of Topeka, Kansas, Variable Rate Demand Industrial Revenue Refunding 8/16 at 100 AAA 6,868,639
Bonds, Series 1988 (Sunwest Hotel Corporation Project), 9.500%, 10/01/16
(Alternative Minimum Tax) (Pre-refunded to 8/15/16)
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) 2/98 at 102 A 1,602,979
950,000 9.750%, 8/01/11 2/98 at 102 A 980,961
1,825,000 Kentucky Housing Corporation, Housing Revenue Bonds (FHA Insured/VAGuaranteed), 7/00 at 102 Aaa 1,930,102
1990 Series C Bonds, 8.100%, 1/01/22 (Alternative Minimum Tax)
12,500,000 County of Jefferson, Kentucky, Pollution Control Revenue Bonds, 1995 4/05 at 102 Aa2 13,041,375
Series A (Louisville Gas and Electric Company Project), 5.900%, 4/15/23
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
LOUISIANA - 6.4%
$ 16,095,000 Louisiana Public Facilities Authority, Fixed Rate Health and Education Capital 12/98 at 102 Aaa $17,020,945
Facilities Revenue Bonds (West Jefferson Medical Center), Series 1985D,
7.900%, 12/01/15
2,550,000 Louisiana Public Facilities Authority (West Jefferson Medical Center), 12/98 at 102 Aaa 2,706,239
7.900%, 12/01/15 (Pre-refunded to 12/01/98)
5,050,000 Louisiana Public Facilities Authority, Extended Care Facilities Revenue Bonds No Opt. Call BBB 6,191,704
(Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/04
5,460,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage Revenue Bonds 8/00 at 102 Aaa 5,750,308
(GNMA Mortgage-Backed Securities Program), Series 1990A, 7.875%, 8/01/23
(Alternative Minimum Tax)
4,600,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage Revenue 10/07 at 102 Aaa 4,686,480
Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series
1997D 5.900%, 10/01/30 (Alternative Minimum Tax)
11,545,000 Orleans Parish School Board, Public School Refunding Bonds, Series 1987 No Opt. Call Aaa 15,654,212
(Defeased), 9.000%, 2/01/09
MAINE - 0.7%
5,510,000 Maine State Housing Authority, Mortgage Purchase Bonds, 1994 Series C-2, 10/04 at 102 AA 5,882,256
6.875%, 11/15/23 (Alternative Minimum Tax)
MARYLAND - 0.3%
2,000,000 City of Gaithersburg (Maryland), First Mortgage Economic Development Revenue 1/00 at 102 N/R 2,186,720
Bonds (Asbury Methodist Home, Incorporated Facility), Series 1990,
7.850%, 1/01/20 (Pre-refunded to 1/01/00)
MASSACHUSETTS - 7.3%
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Goddard Memorial Hospital Issue, Series B:
3,810,000 9.000%, 7/01/15 (Pre-refunded to 7/01/00) 7/00 at 102 Baa3 4,338,409
5,920,000 9.000%, 7/01/15 7/00 at 102 Baa3 6,518,098
1,250,000 Massachusetts Housing Finance Agency, Residential Housing Revenue Bonds, 1988 8/99 at 102 BBB+ 1,306,888
Series B, 8.100%, 8/01/23 (Alternative Minimum Tax)
Massachusetts Water Resources Authority, General Revenue Bonds, 1990 Series A:
15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 16,499,850
4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 4,388,560
8,000,000 Massachusetts Water Resource Authority, 5.000%, 3/01/22 3/03 at 100 Aaa 7,610,400
16,250,000 City of Boston, Massachusetts, Revenue Bonds, Boston City Hospital (FHA Insured 8/00 at 102 Aaa 18,031,488
Mortgage), Series A, 7.625%, 2/15/21 (Pre-refunded to 8/15/00)
MINNESOTA - 1.3%
5,000,000 The Dakota County Housing and Redevelopment Authority, The Washington County No Opt. Call Aaa 6,913,700
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)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
MINNESOTA - continued
$ 2,860,000 City of Hopkins, Minnesota, Elderly Housing Revenue Refunding Bonds (St. Therese 3/04 at 102 AA $3,232,887
Southwest, Inc. Project), Series 1994A, 6.500%, 3/01/19
MISSISSIPPI - 0.5%
1,110,000 Mississippi Home Corporation, Single Family Senior Revenue Refunding Bonds, Series 9/00 at 103 Aaa 1,190,331
1990A, 9.250%, 3/01/12
2,490,000 Mississippi Housing Finance Corporation, Single Family Mortgage Purchase Revenue 10/99 at 102 Aaa 2,629,191
Bonds, Series 1989 (GNMA Mortgage-Backed Securities Program), 8.250%, 10/15/18
(Alternative Minimum Tax)
MISSOURI - 0.3%
2,300,000 Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds 3/07 at 105 AAA 2,578,714
(Homeownership Loan Program), 1997 Series A-2, 7.300%, 3/01/28 (Alternative
Minimum Tax)
NEBRASKA - 2.1%
3,300,000 Nebraska Higher Education Loan Program, Inc., Student Loan Program Revenue Bonds, 6/04 at 102 A 3,347,025
1993 Series B, 5.875%, 6/01/14 (Alternative Minimum Tax)
13,330,000 Nebraska Investment Finance Authority, Single Family Housing Revenue 3/05 at 101 1/2 AAA 13,946,379
Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax)
NEW YORK - 12.1%
5,890,000 Dormitory Authority of the State of New York, City University System No Opt. Call Baa1 6,096,975
Consolidated Second General Resolution Revenue Bonds, Series 1990C,
9.250%, 7/01/98
14,235,000 Dormitory Authority of the State of New York, City University System Consolidated No Opt. Call Baa1 16,733,670
Second General Resolution Revenue Bonds, Series 1990D, 8.750%, 7/01/02
10,000,000 Dormitory Authority of the State of New York, City University System Consolidated, 7/00 at 102 Aaa 11,148,700
Second General Resolution Revenue Bonds, Series 1990F, 7.875%, 7/01/17
(Pre-refunded to 7/01/00)
Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1989B:
7,935,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 8,694,062
1,025,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 AAA 1,123,052
5,000,000 New York State Medical Care Facilities Finance Agency, St. Luke's-Roosevelt Hospital 2/00 at 102 Aaa 5,458,250
Center FHA-Insured Mortgage Revenue Bonds, 1989 Series B, 7.450%, 2/15/29
(Pre-refunded to 2/15/00)
3,500,000 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series HH-3, 6/00 at 102 Aa2 3,694,635
7.950%, 4/01/22 (Alternative Minimum Tax)
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series G, 10/07 at 101 Baa1 10,398,000
6.000%, 10/15/26
11,500,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue 6/00 at 100 A2 12,053,727
Bonds, Fiscal 1991 Series A, 6.000%, 6/15/20 (Pre-refunded to 6/15/00)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
NEW YORK - continued
$ 10,200,000 New York City Municipal Water Finance Authority (New York), Water and Sewer System 6/00 at 101 1/2 Aaa $11,216,226
Revenue Bonds, Fiscal 1991 Series A, 7.500%, 6/15/19 (Pre-refunded to 6/15/00)
7,000,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue 6/06 at 101 Aaa 7,223,930
Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26
4,200,000 New York City Industrial Development Agency, Special Facility Revenue Bonds (1990 1/99 at 102 Baa2 4,424,742
American Airlines, Inc. Project), 8.000%, 7/01/20 (Alternative Minimum Tax)
NORTH CAROLINA - 2.9%
19,200,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, 1/07 at 102 Aaa 20,152,896
Refunding Series 1996 B, 5.875%, 1/01/21
2,795,000 Charlotte Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-Double Oaks 11/07 at 100 AAA 3,078,581
Apartments), 7.350%, 5/15/26
OREGON - 1.4%
2,500,000 State of Oregon, Department of General Services, Certificates of Participation 9/00 at 102 Aaa 2,772,775
(1990 Real Property Financing Program), Series F, 7.500%, 9/01/15
(Pre-refunded to 9/01/00)
8,990,000 Northern Wasco County People's Utility District, Wasco County, Oregon, McNary Dam 12/03 at 102 Aa1 8,873,849
Fishway Hydroelectric Project Revenue Bonds, Series 1993 (Bonneville Power
Administration), 5.200%, 12/01/24
PENNSYLVANIA - 2.4%
7,020,000 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 10/00 at 102 AA+ 7,402,801
1990-28, 7.650%, 10/01/23 (Alternative Minimum Tax)
4,905,000 McKean County Hospital Authority, Hospital Revenue Bonds, Series of 1990 (Bradford 10/00 at 102 BBB- 5,575,661
Hospital Project), 8.875%, 10/01/20
7,040,000 City of Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 1993, 6/03 at 100 Aaa 6,832,038
5.000%, 6/15/16
RHODE ISLAND - 5.1%
25,250,000 Rhode Island Health and Educational Building Corporation Hospital Financing Revenue 5/07 at 102 Aaa 25,848,425
Bonds, Lifespan Obligated Group Issue, Series 1996, 5.750%, 5/15/23
10,000,000 Rhode Island Housing and Mortgage Finance Corporation, Series 3-B Bonds, 10/00 at 102 AA+ 10,527,300
8.050%, 4/01/22 (Alternative Minimum Tax)
4,865,000 Newport Housing Development Corporation, 1995 Multifamily Mortgage Revenue 6/03 at 100 AAA 5,243,254
Refunding Bonds (Broadway-West Broadway Apartments - FHA Insured Mortgage,
Section 8 Assisted Project), Series A, 6.800%, 8/01/24
SOUTH CAROLINA - 0.5%
3,475,000 South Carolina State Housing Finance and Development Authority, Homeownership 7/00 at 102 AA 3,682,180
Mortgage Purchase Bonds, 1990 Series C, 7.750%, 7/01/22 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
TENNESSEE - 0.4%
$ 2,895,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue H, 7/12 at 100 AA $3,065,979
Series 1988, 7.825%, 7/01/15 (Alternative Minimum Tax)
TEXAS - 3.5%
2,000,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds 2/00 at 102 Baa1 2,176,540
(Texas Utilities Electric Company Project), Series 1990A, 8.125%, 2/01/20
(Alternative Minimum Tax)
4,295,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds 1/99 at 102 Baa1 4,550,252
(Texas Utilities Electric Company Project), Series 1989A, 8.250%, 1/01/19
(Alternative Minimum Tax)
3,500,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue 11/03 at 102 Aaa 3,522,505
Refunding Bonds (Texas Utilities Electric Company Project), Series 1993A,
5.500%, 5/01/22
2,270,000 The Cameron County Housing Finance Corporation, GNMA Collateralized Mortgage 9/00 at 103 Aaa 2,419,275
Revenue Refunding Bonds, 1990 Series B, 7.850%, 3/01/24
Dallas Housing Corporation Refunding and Capital Program Revenue
Bonds (Section 8 Assisted Projects), Series 1990:
1,000,000 7.700%, 8/01/05 8/00 at 102 Baa2 1,062,800
2,000,000 7.850%, 8/01/13 8/00 at 102 Baa2 2,119,960
10,175,000 Harris County Hospital District Refunding Revenue Bonds, Texas, Series 1990, No Opt. Call Aaa 12,102,857
7.400%, 2/15/10
VERMONT - 0.5%
3,955,000 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 1, 11/00 at 102 A1 4,177,864
8.150%, 5/01/25 (Alternative Minimum Tax)
WASHINGTON - 7.6%
11,320,000 State of Washington, General Obligation Bonds, Series 1994A, 4.750%, 10/01/13 10/03 at 100 Aa1 10,749,132
3,000,000 Washington Health Care Facilities Authority Revenue Bonds, Series 1990 (Franciscan 7/00 at 102 Aaa 3,257,370
Health System/St. Francis Community Hospital of Federal Way), 7.250%, 7/01/15
2,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue 7/00 at 102 Aaa 2,229,520
Bonds, Series 1990C, 8.000%, 7/01/17 (Pre-refunded to 7/01/00)
3,205,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue 7/99 at 102 Aaa 3,444,156
Bonds, Series 1989A, 7.500%, 7/01/15 (Pre-refunded to 7/01/99)
5,650,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue 7/00 at 102 Aaa 6,157,143
Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00)
16,060,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue 7/03 at 102 Aaa 16,276,167
Bonds, Series 1993B, 5.600%, 7/01/15
4,500,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue 7/03 at 102 Aa1 4,446,584
Bonds, Series 1993C, 5.375%, 7/01/15
13,900,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue 1/00 at 102 Aaa 15,050,920
Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
WISCONSIN - 0.4%
$ 3,145,000 Wisconsin Housing and Economic Development Authority, Home Ownership Revenue 9/99 at 102 Aa $3,286,681
Bonds, 1989 Series B, 7.600%, 3/01/15
PUERTO RICO - 0.4%
3,450,000 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds 7/03 at 101 1/2 A 3,451,862
(Series X), 5.500%, 7/01/19
$730,140,000 Total Investments - (cost $732,041,102) - 98.3% 795,372,701
============
Temporary Investments in Short-Term Municipal Securities - 0.4%
$ 2,400,000 Guadalupe-Blanco River Authority (Texas), Pollution Control Revenue Refunding Bonds VMIG-1 2,400,000
(Central Power and Light Company Project), Series 1995, Variable Rate Demand Bonds,
4.250%, 11/01/15+
800,000 Orange County Irvine Coast Assessment District #88-1, Variable Rate Demand Bonds, VMIG-1 800,000
3.950%, 9/02/18+
$ 3,200,000 Total Temporary Investments - 0.4% 3,200,000
============
Other Assets Less Liabilities - 1.3% 10,763,881
Net Assets - 100% $809,336,582
=====================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later
dates.
**Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ 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.
(DD) - Portion of security purchased on a delayed delivery basis
(see note 1 of the Notes to Financial Statements).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Select Quality
Municipal Fund, Inc. (NQS)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** 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 8/01 at 102 Aaa $3,204,558
1991, 7.050%, 8/01/16
2,625,000 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997-A, 2/07 at 100 Aaa 2,611,350
5.375%, 2/01/27
ARKANSAS - 1.3%
4,035,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Refunding 8/01 at 103 AA 4,339,804
Bonds, 1991 Series A (FHA Insured or VAGuaranteed Mortgage Loans),
8.000%, 8/15/11
4,500,000 City of Little Rock, Arkansas, Hotel and Restaurant Gross Receipts Tax No Opt. Call A 5,582,970
Refunding Bonds, Series 1993, 7.375%, 8/01/15
CALIFORNIA - 7.4%
4,000,000 Sisters of Charity of Leavenworth Health Services Corporation, Certificates 12/03 at 102 AA 3,750,760
of Participation, California Statewide Communities Development Authority,
5.000%, 12/01/23
3,125,000 State of California Department of Transportation, Refunding Certificates of 3/07 at 102 Aaa 3,127,406
Participation, Series 1997A, 5.250%, 3/01/16
3,200,000 State of California, Department of Water Resources, Central Valley Project, 12/03 at 101 AA 2,938,048
Water System Revenue Bonds, Series M, 4.875%, 12/01/27
7,285,000 Department of Water and Power of The City of Los Angeles, Electric Plant Refunding 9/03 at 102 Aa3 7,149,718
Revenue Bonds, Issue of 1993, 5.375%, 9/01/23
6,710,000 Department of Water and Power of The City of Los Angeles, Water Works Refunding 5/03 at 102 Aa 6,244,997
Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/11
21,800,000 Los Angeles County Metropolitan Transportation Authority (California), 7/01 at 102 Aaa 24,157,888
Proposition A Sales Tax Revenue Refunding Bonds, Series 1993-A,
6.750%, 7/01/20 (Pre-refunded to 7/01/01)
10,000,000 San Joaquin Hills Transportation Corridor Agency, Toll Road Refunding 1/07 at 102 Aaa 9,861,500
Revenue Bonds, Series 1997A, 5.250%, 1/15/30
COLORADO - 5.8%
3,960,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D, 11/01 at 102 Baa1 4,437,140
7.750%, 11/15/21 (Alternative Minimum Tax)
1,040,000 Denver City and County Airport Revenue Bonds Series 1991D, 7.750%, 11/15/21 11/01 at 102 Baa1 1,191,944
(Alternative Minimum Tax)(Pre-refunded to 11/15/01)
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C:
2,560,000 6.750%, 11/15/22 (Alternative Minimum Tax)(Pre-refunded to 11/15/02) 11/02 at 102 Baa1 2,880,845
9,590,000 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 Baa1 10,371,585
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A:
5,305,000 8.750%, 11/15/23 (Alternative Minimum Tax)(Pre-refunded to 11/15/01) 11/01 at 102 Baa1 6,270,298
14,695,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Baa1 17,057,221
1,930,000 Jefferson County, Colorado, Single Family Revenue Refunding Bonds, Series 1991A, 4/01 at 103 Aaa 2,070,079
8.875%, 10/01/13
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
CONNECTICUT - 2.6%
$ 7,425,000 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, 8/01 at 103 N/R $9,106,020
Alzheimer's Resource Center of Connecticut, Inc. Project, 1991 Series A,
10.000%, 8/15/21 (Pre-refunded to 8/15/01)
9,785,000 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, 8/04 at 102 N/R 10,601,754
Alzheimer's Resource Center of Connecticut, Inc. Project, 1994 Series A,
7.250%, 8/15/21
DISTRICT OF COLUMBIA - 0.2%
1,615,000 District of Columbia Housing Finance Agency, Collateralized Single Family Mortgage 12/00 at 102 AAA 1,699,432
Revenue Bonds, Series 1990A, 8.100%, 12/01/23 (Alternative Minimum Tax)
FLORIDA - 3.0%
14,250,000 Jacksonville Electric Authority (Jacksonville, Florida), Bulk Power Supply System 10/00 at 101 1/2 Aaa 15,506,423
Revenue Bonds (Scherer 4 Project, Issue One, Series 1991A), 6.750%, 10/01/21
(Pre-refunded to 10/01/00)
7,400,000 State of Florida, Orlando-Orange County Expressway Authority, Junior Lien Revenue 7/03 at 102 Aaa 7,210,708
Refundings Bonds, Series of 1993A, 5.125%, 7/01/20
GEORGIA - 0.3%
2,140,000 Urban Residential Finance Authority of the City of Atlanta, Georgia, Single Family 10/98 at 103 AAA 2,227,162
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)
HAWAII - 2.4%
16,000,000 Department of Budget and Finance of the State of Hawaii, Special Purpose Revenue 7/01 at 102 Aaa 18,116,640
Bonds, Kapiolani Health Care System Obligated Group (Pali Momi Medical Center
Project), Series 1991, 7.650%, 7/01/19 (Pre-refunded to 7/01/01)
ILLINOIS - 5.3%
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 1/02 at 105 AAA 858,762
6,780,000 7.650%, 12/31/31 1/02 at 105 AAA 7,416,642
10,375,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue Bonds, The 12/03 at 102 Aa1 10,555,733
University of Chicago, Series 1985, 5.700%, 12/01/25
1,585,000 Illinois Housing Development Authority, Multi-Family Housing Bonds, 1991 Series C, 7/01 at 102 A1 1,666,881
7.400%, 7/01/23
14,605,000 City of Chicago, General Obligation Bonds (Emergency Telephone System), Series 1993, 1/03 at 102 Aaa 14,779,676
5.625%, 1/01/23
5,000,000 City of Chicago, General Obligation Bonds, Project and Refunding Series 1995B, 1/06 at 102 Aaa 4,804,850
5.125%, 1/01/25
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
INDIANA - 2.8%
$ 8,640,000 Avon Community School Building Corporation, First Mortgage Bonds, Series 1994 1/04 at 101 Aaa $8,682,163
(Hendricks County, Indiana), 5.500%, 1/01/16
5,230,000 Beacon Heights Housing Development Corporation, 1991 Multifamily Mortgage Revenue 6/01 at 100 AAA 5,494,847
Refunding Bonds (FHAInsured Mortgage-Section 8 Assisted Project), Series A,
7.625%, 2/01/21
5,770,000 Fremont Middle School Building Corporation, First Mortgage Refunding Bonds, Series 1/04 at 101 Aaa 5,790,137
1994 A, Steuben County, Indiana, 5.250%, 1/15/13
1,110,000 Michigan City Housing Development Corporation, 1991 Multifamily Mortgage Revenue 6/01 at 100 AAA 1,166,210
Refunding Bonds (FHA Insured Mortgage-Section 8 Assisted Project), Series A,
7.625%, 2/01/21
KANSAS - 2.6%
8,665,000 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991C (Shawnee 9/01 at 102 AAA 9,528,294
Mission Medical Center, Inc. Project), 7.250%, 9/01/04 (Pre-refunded to 9/01/01)
8,800,000 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991B (Shawnee 9/01 at 102 AAA 9,878,880
Mission Medical Center, Inc. Project), 7.250%, 9/01/21 (Pre-refunded to 9/01/01)
KENTUCKY - 0.4%
3,015,000 Lakeland Wesley Village, Inc., Mortgage Revenue Refunding Bonds (Lakeland Wesley 11/01 at 103 Aa 3,198,553
Village I Elderly Section 8 Assisted Project/FHA Insured Mortgage), Series 1991,
7.500%, 11/01/21
LOUISIANA - 0.3%
1,985,000 Calcasieu Parish Public Trust Authority, Mortgage Revenue Refunding Bonds, 1991 6/01 at 103 A1 2,119,603
Series A, 7.750%, 6/01/12
MASSACHUSETTS - 5.2%
2,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 6/01 at 102 A3 2,306,240
Lowell General Hospital Issue, Series A, 8.400%, 6/01/11 (Pre-refunded
to 6/01/01)
2,100,000 Massachusetts Housing Finance Agency, Residential Housing Revenue Bonds, 8/98 at 102 BBB+ 2,177,301
1988 Series A, 8.400%, 8/01/21 (Alternative Minimum Tax)
1,660,000 Massachusetts Housing Finance Agency, Residential Housing Revenue Bonds, 8/99 at 102 BBB+ 1,737,954
1989 Series A, 8.200%, 8/01/27 (Alternative Minimum Tax)
19,025,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1990 Series A, 4/00 at 100 A 19,339,674
6.000%, 4/01/20
7,375,000 Boston Housing Development Corporation, Mortgage Revenue Refunding Bonds, Series 1/04 at 102 Aaa 7,323,375
1994A (FHA Insured Mortgage Loans-Section 8 Assisted Projects), 5.500%, 7/01/24
6,300,000 Somerville Housing Authority, Mortgage Revenue Bonds, Series 1990 (GNMA 5/00 at 102 AAA 6,699,420
Collateralized - Clarendon Hill Towers Project), 7.950%, 11/20/30
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
MICHIGAN - 1.7%
$ 7,890,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (The Detroit 8/01 at 102 A $8,922,880
Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded
to 8/15/01)
3,625,000 Flowerville Community Schools, Counties of Livingston, Ingham, and Shiawassee, 5/07 at 100 Aaa 3,694,528
State of Michigan, 1996 School Building and Site Bonds (General Obligation-
Unlimited Tax), 5.600%, 5/01/26
MINNESOTA - 1.1%
3,465,000 The Chicago County Housing and Redevelopment Authority, The Southcentral 3/04 at 102 27/32 AAA 3,718,084
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 (Alternative Minimum Tax)
The Dakota, Washington, and Stearns Counties Housing and Redevelopment Authority,
Single Family Mortgage Revenue Refunding Bonds (Fannie Mae Mortgage-Backed
Securities Program), Series 1994A:
2,480,000 6.600%, 9/01/17 (Alternative Minimum Tax) 3/04 at 102 AAA 2,616,102
1,750,000 6.700%, 3/01/21 (Alternative Minimum Tax) 3/04 at 102 AAA 1,850,363
MISSISSIPPI - 0.2%
1,455,000 Goodman Housing Development Corporation, 1991 Multifamily Mortgage Revenue 8/01 at 100 AAA 1,530,660
Refunding Bonds (Goodhaven Manor-FHA Insured Mortgage, Section 8
Assisted Project), Series A, 7.625%, 2/01/22
NEBRASKA - 1.5%
10,550,000 Nebraska Investment Finance Authority, Single Family Housing Revenue 3/05 at 101 1/2 AAA 11,184,899
Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax)
NEVADA - 1.4%
10,000,000 Clark County School District, Nevada, General Obligation (Limited Tax), 6/06 at 101 Aaa 10,606,700
School Improvement Bonds, Series 1996, 6.000%, 6/15/15
NEW JERSEY - 2.5%
4,420,000 New Jersey Housing and Mortgage Finance Agency, Section 8 Bonds, 1991 Series A, 11/01 at 102 AA+ 4,737,400
6.850%, 11/01/06
13,920,000 The Pollution Control Financing Authority of Salem County, Pollution Control Revenue 11/03 at 102 Aaa 14,027,184
Refunding Bonds, 1993 Series C (Public Service Electric and Gas Company Project),
5.550%, 11/01/33
NEW MEXICO - 2.2%
1,500,000 New Mexico Mortgage Finance Authority, Single Family Mortgage Program Senior Bonds, 9/99 at 102 AA- 1,563,660
1989 Series A(Federally Insured or Guaranteed Mortgage Loans), 7.800%, 3/01/21
(Alternative Minimum Tax)
14,050,000 City of Farmington, New Mexico, Pollution Control Refunding Revenue Bonds (Southern 4/01 at 102 A+ 15,312,674
California Edison Company Four Corners Project), 1991 Series A, 7.200%, 4/01/21
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
NEW YORK - 10.0%
$ 6,000,000 New York Local Government Assistance Corporation (A Public Benefit Corporation 4/02 at 102 Aaa $6,771,720
of the State of New York), Series 1991D Bonds, 7.000%, 4/01/18 (Pre-refunded
to 4/01/02)
New York Medical Care Facilities Finance Agency, Mental Health
Services Facilities Improvement Revenue Bonds, 1991 Series B:
595,000 7.600%, 2/15/06 8/01 at 102 A- 661,533
580,000 7.600%, 8/15/06 8/01 at 102 A- 644,856
1,980,000 7.625%, 8/15/17 8/01 at 102 A- 2,219,956
New York Medical Care Facilities Finance Agency, Mental Health
Services Facilities Improvement Revenue Bonds, 1991 Series D:
5,380,000 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A- 6,119,481
40,000 7.400%, 2/15/18 2/02 at 102 A- 44,869
1,750,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home, 8/98 at 102 AAA 1,840,615
FHA Insured Mortgage Revenue Bonds, 1988, 8.000%, 2/15/28 (Pre-refunded to 8/15/98)
New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1991 Series
B:
1,020,000 7.600%, 2/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A- 1,157,455
1,010,000 7.600%, 8/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A- 1,146,108
5,970,000 7.625%, 8/15/17 (Pre-refunded to 8/15/01) 8/01 at 102 A- 6,779,651
11,000,000 New York State Urban Development Corporation, 1996 Corporate Purpose Senior Lien 7/06 at 102 Aaa 11,007,920
Revenue Bonds, 5.500%, 7/01/26
6,000,000 New York State Urban Development Corporation, Correctional Capital Facilities 1/01 at 102 Aaa 6,706,080
Bonds, Series 2, 7.500%, 1/01/18 (Pre-refunded to 1/01/01)
4,000,000 New York State Urban Development Corporation, Correctional Capital Facilities 1/03 at 102 Baa1 3,995,280
Revenue Bonds, 1993 Refunding Series, 5.500%, 1/01/15
3,410,000 State of New York Mortgage Agency, Mortgage Revenue Bonds, Ninth Series B, 7/99 at 100 Aa 3,483,690
8.000%, 10/01/02 (Alternative Minimum Tax)
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) 11/01 at 101 1/2 Aaa 5,358,264
400,000 8.250%, 11/15/10 11/01 at 101 1/2 Baa1 458,080
7,130,000 8.250%, 11/15/15 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Aaa 8,305,309
620,000 8.250%, 11/15/15 11/01 at 101 1/2 Baa1 710,024
9,290,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series G, 10/07 at 101 Baa1 9,659,742
6.000%, 10/15/26
NORTH CAROLINA - 2.5%
18,555,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, 1/03 at 100 Aaa 18,727,747
Refunding Series 1993 B,5.500%, 1/01/17
OHIO - 0.5%
2,235,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest 5/98 at 101 N/R 2,264,949
Ohio Bond Fund), Series 1989D, 8.500%, 11/15/00 (Alternative Minimum Tax)
1,295,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest 11/00 at 102 N/R 1,365,578
Ohio Bond Fund), Series 1989C, 8.400%, 11/15/09 (Alternative Minimum Tax)
395,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest No Opt. Call N/R 435,187
Ohio Bond Fund), Series 1990D, 8.500%, 5/15/00 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
OKLAHOMA - 4.8%
$ 12,650,000 Oklahoma County Home Finance Authority (Oklahoma County, Oklahoma), Single Family 7/01 at 102 A1 $13,373,074
Mortgage Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12
21,025,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series 1991, 6/01 at 102 Baa2 23,207,605
7.600%, 12/01/30 (Alternative Minimum Tax)
PENNSYLVANIA - 1.9%
3,000,000 Pennsylvania Higher Education Assistance Agency Student Loan Revenue Bonds, Fixed 9/01 at 102 Aaa 3,178,170
Rate Bonds, 1991 Series C, 7.150%, 9/01/21 (Alternative Minimum Tax)
10,000,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue Bonds, Sixteenth Series, 8/01 at 100 AAA 10,974,000
7.000%, 8/01/18 (Pre-refunded to 8/01/01)
RHODE ISLAND - 0.1%
140,000 Rhode Island Housing and Mortgage Finance Corporation, Homeownership Opportunity 10/98 at 102 AA+ 140,491
Bonds, 8.200%, 10/01/17 (Alternative Minimum Tax)
SOUTH CAROLINA - 0.7%
5,000,000 Oconee County, South Carolina, Pollution Control Facilities Revenue Refunding Bonds, 4/03 at 102 Aa3 5,179,300
Series 1993 (Duke Power Company Project), 5.800%, 4/01/14
SOUTH DAKOTA - 2.0%
5,000,000 South Dakota Housing Development Authority, Homeownership Mortgage Bonds, 1996 11/06 at 102 AAA 5,238,500
Series D, 6.300%, 5/01/27 (Alternative Minimum Tax)
7,790,000 City of Sioux Falls, South Dakota, Variable Rate Demand Industrial Revenue 10/14 at 100 AAA 10,219,857
Refunding Bonds, Series 1989 (Great Plains Hotel Corporation Project),
8.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded to 10/15/14)
TENNESSEE - 2.4%
9,525,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue V, 7/01 at 102 AA 10,103,549
7.650%, 7/01/22 (Alternative Minimum Tax)
7,220,000 The Metropolitan Government of Nashville and Davidson County (Tennessee), General 5/02 at 102 Aa 7,885,901
Obligation Multi-Purpose Improvement Bonds, Series 1994, 6.150%, 5/15/25
(Pre-refunded to 5/15/02)
TEXAS - 5.8%
8,580,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds 2/00 at 102 Baa1 9,337,357
(Texas Utilities Electric Company Project), Series 1990A, 8.125%, 2/01/20
(Alternative Minimum Tax)
6,480,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds 1/99 at 102 Baa1 6,865,106
(Texas Utilities Electric Company Project), Series 1989A, 8.250%, 1/01/19
(Alternative Minimum Tax)
3,500,000 Comal County Health Facilities Development Corporation, Hospital Revenue Refunding 1/01 at 102 AAA 3,755,290
Bonds (McKenna Memorial Hospital FHA Insured Project), Series 1991,
7.375%, 1/15/21
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
TEXAS - continued
$ 11,800,000 El Paso Housing Finance Corporation, Single Family Mortgage Revenue Refunding 4/01 at 103 A $13,334,354
Bonds, Series 1991A, 8.750%, 10/01/11
2,900,000 The Harrison County Finance Corporation, Single Family Mortgage Revenue Refunding 12/01 at 103 A 3,081,772
Bonds, Series 1991, 8.875%, 12/01/11
2,395,000 Panhandle Regional Housing Finance Corporation, Single Family Mortgage Revenue 5/01 at 100 AAA 2,493,914
Bonds (GNMA Mortgage-Backed Securities Program), Series 1991A, 7.500%, 5/01/24
(Alternative Minimum Tax)
4,560,000 Winter Garden Housing Finance Corporation, Single Family Mortgage Revenue Bonds 4/04 at 103 AAA 4,871,266
(GNMA and FNMA Mortgage-Backed Securities Program), Series 1994,
6.950%, 10/01/27 (Alternative Minimum Tax)
UTAH - 3.5%
13,000,000 Utah County, Utah, Hospital Revenue Bonds, Series 1997 (IHCHealth Services, Inc.), 8/07 at 101 Aaa 12,678,640
5.250%, 8/15/26
13,650,000 Intermountain Power Agency, Power Supply Revenue Refunding Bonds, 1993 Series A, 7/03 at 102 Aaa 13,691,223
5.500%, 7/01/20
WASHINGTON - 10.5%
5,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue 7/00 at 102 Aaa 5,573,800
Bonds, Series 1990C, 8.000%, 7/01/17 (Pre-refunded to 7/01/00)
4,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue 1/00 at 102 Aaa 4,343,520
Bonds, Series 1989B, 7.400%, 7/01/09 (Pre-refunded to 1/01/00)
2,000,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue 7/00 at 102 Aaa 2,198,260
Bonds, Series 1990A, 7.375%, 7/01/12 (Pre-refunded to 7/01/00)
5,000,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue 7/00 at 102 Aaa 5,448,800
Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00)
10,010,000 Washington Public Power Supply System Nuclear Project No. 2 Refunding Revenue Bonds, 7/02 at 102 Aa1 10,743,933
Series 1992A, 6.250%, 7/01/12
5,000,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue 7/04 at 102 Aa1 5,015,050
Bonds, Series 1994A, 5.375%, 7/01/11
7,560,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue 1/00 at 100 Aa1 7,478,806
Bonds, Series 1989B, 5.500%, 7/01/17
3,935,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue 7/03 at 102 Aa1 3,888,292
Bonds, Series 1993C, 5.375%, 7/01/15
24,060,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue 1/00 at 102 Aaa 26,052,168
Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00)
Municipality of Metropolitan Seattle (Seattle, Washington), Sewer Refunding Revenue
Bonds, Series Z:
2,160,000 5.450%, 1/01/16 1/03 at 102 Aaa 2,164,147
3,095,000 5.450%, 1/01/17 1/03 at 102 Aaa 3,100,942
2,490,000 5.450%, 1/01/19 1/03 at 102 Aaa 2,465,124
1,800,000 5.450%, 1/01/20 1/03 at 102 Aaa 1,777,050
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
WISCONSIN - 1.8%
$ 11,080,000 Wisconsin Center District, Junior Dedicated Tax Revenue Bonds, Series 1996B, 12/06 at 101 A $11,413,396
5.750%, 12/15/27
2,100,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds (Wausau 2/01 at 102 Aaa 2,264,471
- ------------ Hospitals, Inc. Project), Series 1991B, 6.700%, 8/15/20 -----------
$694,535,000 Total Investments - (cost $681,006,104) - 97.5% 740,407,801
============ -----------
Temporary Investments in Short-Term Municipal Securities - 1.0%
$ 1,700,000 The Fayetteville Public Facilities Board (Arkansas), Variable Rate Demand Refunding VMIG-1 1,700,000
Revenue Bonds (Butterfield Trail Village Project), Series 1997, 4.100%, 9/01/27+
700,000 Guadalupe-Blanco River Authority (Texas), Pollution Control Revenue Refunding Bonds VMIG-1 700,000
(Central Power and Light Company Project), Series 1995, Variable Rate Demand Bonds,
4.250%, 11/01/15+
1,500,000 Hapeville Development Authority (Hapeville Hotel Project), Variable Rate Demand Bonds, P-1 1,500,000
4.000%, 11/01/15+
1,200,000 Irvine Ranch Water District, Consolidated Refunding Bonds, Series A, Variable Rate VMIG-1 1,200,000
Demand Bonds, 3.600%, 5/01/09+
1,200,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities A-1+ 1,200,000
Revenue Bonds (St. Francis' Medical Center), Series 1996A, Variable Rate Demand
Bonds, 4.100%, 6/01/26+
1,000,000 Orange County Irvine Coast Assessment District #88-1, Variable Rate Demand Bonds, VMIG-1 1,000,000
- ------------ 3.950%, 9/02/18+ ------------
$ 7,300,000 Total Temporary Investments - 1.0% 7,300,000
============ ------------
Other Assets Less Liabilities - 1.5% 12,062,201
Net Assets - 100% $759,770,002
=====================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
**Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ 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>
Portfolio of Investments
Nuveen Quality Income
Municipal Fund, Inc. (NQU)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
ALABAMA - 1.8%
$ 17,000,000 The Industrial Development Board of the Town of Courtland, Pollution Control, 6/05 at 102 Baa1 $17,917,150
Refunding Revenue Bonds (Champion International Corporation Project),
Series 1995, 6.150%, 6/01/19
3,895,000 Jefferson County Board of Education, Capital Outlay School Warrants, Series 1997-A, 2/07 at 102 Aaa 4,045,074
5.800%, 2/15/20
ALASKA - 2.0%
1,900,000 Alaska Housing Finance Corporation, Collateralized Bonds, 1991 First Series 6/01 at 102 Aaa 1,994,506
(Veterans Mortgage Program), Issue A-1, 7.125%, 12/01/30
6,750,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 1992 Series A, 12/02 at 102 Aa 7,522,808
6.600%, 12/01/23 (Pre-refunded to 12/01/02)
14,590,000 Alaska State Housing Finance Corporation, Governmental Purpose Bonds, 1995 12/05 at 102 Aaa 14,872,608
Series A, 5.875%, 12/01/30
ARIZONA - 0.5%
5,500,000 Yuma Regional Medical Center on behalf of Hospital District No. 1 of Yuma County, 8/02 at 101 1/2 A 6,439,235
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)
ARKANSAS - 0.8%
3,655,000 Arkansas Development Finance Authority, Single Family Mortgage, Revenue Refunding 8/01 at 103 AA 3,931,099
Bonds, 1991 Series A(FHA Insured or VAGuaranteed Mortgage Loans), 8.000%, 8/15/11
5,990,000 Arkansas Development Finance Authority, Single Family Mortgage, Revenue Bonds, 7/05 at 102 AAA 6,420,681
1995 Series B(Mortgage-Backed Securities Program), 6.700%, 7/01/27 (Alternative
Minimum Tax)
CALIFORNIA - 7.1%
3,000,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 5/03 at 102 AA 3,000,000
1993 Series C, 5.600%, 5/01/33
4,075,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1991 Series G, 8/01 at 102 Aa 4,309,720
7.050%, 8/01/27 (Alternative Minimum Tax)
17,000,000 State Public Works Board of the State of California, Lease Revenue Bonds 11/04 at 102 Aaa 20,018,690
(Department of Corrections), 1994 Series A (California State of
Prison-Monterey County (Soledad II)), 7.000%, 11/01/19 (Pre-refunded
to 11/01/04)
3,500,000 State Public Works Board of the State of California, Lease Revenue Bonds 10/02 at 102 Aaa 3,929,590
(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)
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) 8/01 at 102 Aaa 11,835,000
4,420,000 7.000%, 8/01/15 8/01 at 102 Aaa 4,889,581
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, California, 1/98 at 101 1/2 BBB 2,542,975
Central Business District Redevelopment Project, Tax Allocation,
Refunding Bonds, Series G, 6.750%, 7/01/10
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
CALIFORNIA - continued
$ 2,500,000 The Community Redevelopment Agency of the City of Los Angeles, California, 1/98 at 101 1/2 BBB $2,590,025
Central Business District Redevelopment Project, Tax Allocation,
Refunding Bond, Series 1987-G, 6.750%, 7/01/10
5,000,000 Department of Water and Power of the City of Los Angeles, California, Water Works, 4/02 at 102 Aa 5,370,100
Revenue Bonds, Issue of 1992, 6.500%, 4/15/32
7,150,000 Northern California Power Agency, Hydroelectric Project Number One, Revenue Bonds, 7/98 at 102 A- 7,428,135
Refunding Series E, 7.150%, 7/01/24
6,700,000 County of Orange, California, 1996 Recovery Certificates of Participation, Series A, 7/06 at 102 Aaa 7,100,258
6.000%, 7/01/26
2,000,000 City of Redwood City Public Financing Authority, 1991 Local Agency, Revenue Bonds, 7/01 at 102 A- 2,248,420
Series B, 7.250%, 7/15/11 (Pre-refunded to 7/15/01)
9,190,000 City of San Jose Financing Authority (Santa Clara County, California), 1993 Revenue 9/01 at 102 A1 9,761,894
Bonds, Series C(Convention Center Refunding Project), 6.400%, 9/01/22
3,375,000 Southern California Home Financing Authority, Single Family, Mortgage Revenue Bonds 3/01 at 102 AAA 3,574,260
(GNMA and FNMA Mortgage-Backed Securities Program), 1991 Issue A,
7.350%, 9/01/24 (Alternative Minimum Tax)
COLORADO - 5.6%
4,690,000 Colorado Housing Finance Authority, Multi-Family Housing, Insured Mortgage, Revenue 12/97 at 100 Aa 4,702,053
Bonds, 1979 Series A, 6.900%, 10/01/21
City and County of Denver, Colorado, Airport System, Revenue Bonds, Series 1990A:
8,765,000 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 Baa1 9,868,601
15,910,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 Baa1 17,618,257
City and County of Denver, Colorado, Airport System, Revenue Bonds, Series 1991A:
9,485,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Baa1 11,009,714
3,040,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 3,383,794
City and County of Denver, Colorado, Airport System, Revenue Bonds, Series 1991D:
3,165,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Baa1 3,546,351
3,825,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 4,123,274
835,000 Denver City and County Airport Revenue Bonds Series 1991D, 7.750%, 11/15/21
(Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Baa1 956,994
City and County of Denver, Colorado, Airport System, Revenue Bonds, Series 1990A:
770,000 8.500%, 11/15/23 (Alternative Minimum Tax)(Pre-refunded to 11/15/00) 11/00 at 102 Baa1 878,516
1,505,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/00) 11/00 at 102 Baa1 1,696,511
1,025,000 City and County of Denver, Colorado, Airport System, Revenue bonds, Series 1991D, 11/01 at 100 Baa1 1,129,181
7.000%, 11/15/25 (Alternative Minimum Tax)(Pre-refunded to 11/15/01)
City and County of Denver, Colorado, Airport System, Revenue Bonds, Series 1991A:
3,425,000 8.750%, 11/15/23 (Alternative Minimum Tax)(Pre-refunded to 11/15/01) 11/01 at 102 Baa1 4,048,213
1,100,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Baa1 1,252,240
5,110,000 County of Pueblo, Colorado, Hospital Refunding and Improvement, Revenue Bonds 9/01 at 100 N/R 5,825,962
(Parkview Episcopal Medical Center, Inc. Project), Series 1991B, 8.300%, 9/01/11
(Pre-refunded to 9/01/01)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
FLORIDA - 3.6%
$ 7,725,000 Charlotte County, Florida, Utility System, Refunding Revenue Bonds, Series 1996A, 12/97 at 100 Aaa $7,733,498
6.200%, 10/01/23
5,250,000 Dade County Industrial Development Authority, Solid Waste Disposal, Revenue Bonds 2/01 at 102 AA- 5,709,953
(Florida Power &Light Company Project), Series 1991, 7.150%, 2/01/23 (Alternative
Minimum Tax)
13,650,000 Palm Beach County Health Facilities Authority, Hospital, Revenue Refunding Bonds, 12/98 at 102 N/R 14,617,376
Series 1988 (JFKMedical Center, Inc. Projects), 8.875%, 12/01/18 (Pre-refunded
to 12/01/98)
8,485,000 St. Lucie County, Florida, Solid Waste Disposal, Revenue Bonds (Florida Power 2/01 at 102 AA- 9,179,752
and Light Company Project), Series 1991, 7.150%, 2/01/23 (Alternative
Minimum Tax)
City of Tampa, Florida, Capital Improvement Program, Revenue Bonds, Series 1988A:
1,665,000 8.000%, 10/01/02 10/98 at 100 AA 1,727,554
5,830,000 8.250%, 10/01/18 10/98 at 100 AA 6,028,628
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 8/01 at 102 Aaa 3,144,818
4,500,000 7.000%, 8/01/13 8/01 at 102 Aaa 4,956,705
3,000,000 Clayton County Housing Authority, Multifamily Housing, Revenue Bonds, No Opt. Call Baa1 3,008,850
Spring Lake Apartments Project, 8.125%, 12/01/05 (Mandatory put 12/01/97)
15,900,000 The Fulton-De Kalb Hospital Authority, Georgia, Revenue Certificates, 1/01 at 102 Aaa 17,440,551
Series 1991 (Grady Memorial Hospital), 6.900%, 1/01/20
(Pre-refunded to 1/01/01)
7,000,000 County Board of Education of Richmond County (Georgia), General Obligation 5/98 at 100 Aaa 7,024,570
School Bonds, Series 1997, 5.950%, 11/01/26
ILLINOIS - 9.5%
6,015,000 Illinois Development Finance Authority, Multi-family Housing, Revenue Bonds, 3/02 at 102 BBB+ 6,366,156
Series 1992 (Town and Garden Apartments Project), 7.800%, 3/01/06
(Alternative Minimum Tax)
Illinois Health Facilities Authority Hospital, Revenue Bonds, Series 1993-A
(Hinsdale Hospital):
3,195,000 9.000%, 11/15/15 11/00 at 102 Baa1 3,806,204
11,000,000 7.000%, 11/15/19 11/03 at 102 Baa1 12,827,320
14,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1991 8/01 at 102 Aa 15,873,875
(Northwestern Memorial Hospital), 6.750%, 8/15/11
3,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1991 8/01 at 102 Aaa 3,312,300
(Sherman Hospital Project), 6.750%, 8/01/21 (Pre-refunded to 8/01/01)
5,265,000 Illinois Health Facilities Authority (Rockford Memorial Hospital), Revenue 8/01 at 100 Aaa 5,385,884
Refunding Bonds, Series 1991A, 6.000%, 8/15/21
2,820,000 Illinois Housing Development Authority, Section 8, Elderly Housing, Revenue Bonds 9/02 at 102 A 2,987,198
(Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
ILLINOIS - continued
$ 6,000,000 Central Lake County Joint Action Water Agency, Lake County, Illinois, Water Revenue 5/00 at 102 Aaa $6,524,640
Bonds, Series 1990A, 7.000%, 5/01/19 (Pre-refunded to 5/01/00)
10,000,000 Central Lake County Joint Action Water Agency, Lake County, Illinois, Water Revenue 5/01 at 102 Aaa 11,087,600
Bonds, Series 1991, 7.000%, 5/01/20 (Pre-refunded to 5/01/01)
6,540,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility, Revenue 11/00 at 103 Baa2 7,457,954
Bonds (United Air Lines, Inc. Project), Series 1984B, 8.850%, 5/01/18
24,430,000 The County of Cook, Illinois, General Obligation Bonds, Series 1991, 11/01 at 102 Aaa 27,149,303
6.750%, 11/01/18 (Pre-refunded to 11/01/01)
3,590,000 Joliet Regional Port District Airport Facilities, Revenue Bonds, Lewis 7/07 at 103 N/R 3,766,664
University Airport, Series 97A, 7.250%, 7/01/18 (Alternative Minimum Tax)
10,575,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry 6/02 at 100 Aaa 10,986,262
and Will Counties, Illinois, General Obligation Bonds, Series 1992A,
6.125%, 6/01/22
INDIANA - 1.3%
5,905,000 Indiana Health Facility Financing Authority, Hospital, Revenue Bonds, Series 1992 7/01 at 102 Aaa 6,559,215
(Community Hospitals Projects), 7.000%, 7/01/11 (Pre-refunded to 7/01/01)
4,000,000 The Indianapolis Local Public Improvement Bond Bank, Series 1992 DBonds, 2/98 at 100 A+ 4,019,040
6.500%, 2/01/22
5,125,000 City of Petersburg, Indiana, Pollution Control, Refunding Revenue Bonds, 12/04 at 102 Aa2 5,630,530
Series 1995A (Indianapolis Power &Light Company Project), 6.625%, 12/01/24
IOWA - 0.4%
4,500,000 Polk County, Iowa, Health Facilities Revenue Bonds, Catholic Health Corporation 11/01 at 101 Aaa 4,883,895
(Mercy Health Center of Central Iowa Project), Series 1991, 6.750%, 11/01/15
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) 9/01 at 102 AAA 8,284,788
10,000,000 7.250%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 11,226,000
KENTUCKY - 2.3%
3,000,000 Kentucky Development Finance Authority, Hospital Facilities, Revenue Bonds, 9/01 at 102 N/R 3,349,020
Series 1991 (St. Claire Medical Center, Inc. Project), 7.125%, 9/01/21
(Pre-refunded to 9/01/01)
10,225,000 Kentucky Housing Corporation, Housing, Revenue Bonds (Federally Insured or 1/05 at 102 Aaa 10,847,089
Guaranteed Mortgage Loans), 1995 Series B, 6.625%, 7/01/26 (Alternative
Minimum Tax)
10,000,000 City of Danville, Kentucky, Multi-City Lease, Revenue Bonds (Louisville and 3/02 at 102 Aaa 11,176,000
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)
2,945,000 Greater Kentucky Housing Assistance Corporation, Mortgage, Revenue Refunding 1/00 at 102 Aaa 3,096,020
Bonds, Series 1992B (FHA Insured Mortgage Loans-Section 8 Assisted Projects),
7.625%, 1/01/25
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
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) 4/01 at 102 Aa2 $13,972,190
3,985,000 7.450%, 4/01/32 (Alternative Minimum Tax) 4/01 at 102 Aa2 4,214,536
3,385,000 Community Development Administration, Department of Housing and Community 5/01 at 102 Aa3 3,556,958
Development, State of Maryland, Multi-Family Housing, Revenue Bonds (Insured
Mortgage Loans), 1991 Series E, 7.100%, 5/15/28
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) 3/01 at 102 Aaa 11,302,715
19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 21,665,840
5,100,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/02 at 102 Aaa 5,588,784
New England Medical Center Hospitals Issue, Series F, 6.625%, 7/01/25
15,000,000 Massachusetts Industrial Finance Agency, Resource Recovery, Revenue Bonds (SEMASS 7/01 at 103 N/R 16,929,450
Project), Series 1991A, 9.000%, 7/01/15
3,300,000 Massachusetts Industrial Finance Agency, Resource Recovery, Revenue Bonds, Semass 7/01 at 103 N/R 3,724,413
Project, Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax)
MICHIGAN - 3.3%
5,000,000 Michigan State Hospital Finance Authority, Hospital, Revenue Bonds (The 8/01 at 102 A 5,654,550
Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11
(Pre-refunded to 8/15/01)
16,875,000 Michigan Strategic Fund, Limited Obligation, Refunding Revenue Bonds (The Detroit 12/01 at 102 Aaa 18,522,506
Edison Company Pollution Control Bonds Project), Collateralized Series 1991DD,
6.875%, 12/01/21
8,500,000 Michigan Strategic Fund, Limited Obligation, Revenue Bonds (Waste Management, Inc. 12/02 at 102 A- 9,177,365
Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax)
7,000,000 City of Grand Rapids, Michigan, Water Supply System, Refunding Revenue Bonds, 1/01 at 102 Aaa 7,481,040
Series 1991, 6.250%, 1/01/11
MINNESOTA - 1.0%
4,705,000 Minnesota Housing Finance Agency, Single Family, Mortgage Bonds, 1994 Series J, 1/04 at 102 AA+ 5,030,116
6.950%, 7/01/26 (Alternative Minimum Tax)
3,655,000 The Dakota County Housing and Redevelopment Authority, The Washington County No Opt. Call Aaa 5,053,915
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)
2,455,000 Washington County Housing and Redevelopment Authority, Multifamily Housing, Revenue 8/01 at 102 AAA 2,615,434
Bonds (FHAInsured Mortgage Loan-Cottages Phase IIIProject), Series 1991,
7.650%, 8/01/32 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
MISSISSIPPI - 0.6%
$ 3,370,000 Canton Housing Development Corporation, 1990 Multifamily Mortgage, Revenue No Opt. Call AAA $4,155,513
Refunding Bonds (Canton Estates Apartments Project - FHA Insured Mortgage,
Section 8 Assisted Project), Series A, 7.750%, 8/01/24
1,225,000 Charter Mortgage Corporation, 1990 Multifamily Mortgage, Revenue Refunding Bonds 8/01 at 100 AAA 1,496,154
(Church Garden Apartments - FHA Insured Mortgage, Section 8 Assisted Project),
Series A, 7.750%, 8/01/21
1,345,000 Pearl Housing Development Corporation, 1990 Multifamily Mortgage, Revenue Refunding 2/01 at 100 AAA 1,401,450
Bonds (Rose Garden Apartments Project - FHA Insured Mortgage, Section 8 Assisted
Project), Series A, 7.750%, 8/01/22
MISSOURI - 1.7%
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 10/99 at 102 1/2 BBB+ 3,322,907
6,500,000 8.125%, 10/01/10 10/99 at 102 1/2 BBB+ 7,094,555
The Industrial Development Authority of the County of Jackson, State of Missouri, Health
Care System, Revenue Bonds, St. Mary's Hospital of Blue Springs Issue, Series 1994:
5,730,000 6.500%, 7/01/12 7/02 at 102 Baa1 5,990,429
5,605,000 7.000%, 7/01/22 7/02 at 102 Baa1 5,975,771
MONTANA - 0.6%
7,000,000 City of Forsyth, Rosebud County, Montana, Pollution Control, Revenue Refunding Bonds 8/01 at 102 Aaa 7,684,110
(Puget Sound Power & Light Company Colstrip Project), Series 1992, 7.050%, 8/01/21
NEBRASKA - 1.6%
11,000,000 Nebraska Investment Finance Authority, Single Family Housing, Revenue Bonds, 3/05 at 101 1/2 AAA 11,661,980
1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax)
8,000,000 Nebraska Investment Finance Authority, Single Family Housing, Revenue Bonds, 3/05 at 101 1/2 AAA 8,369,920
1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax)
NEW HAMPSHIRE - 0.5%
1,995,000 New Hampshire Housing Finance Authority, Single Family, Residential, 7/98 at 103 Aa 2,072,845
Mortgage Bonds, 1988 Series A, 8.500%, 7/01/14 (Alternative Minimum Tax)
4,190,000 New Hampshire Housing Finance Authority, Single Family, Residential, 7/01 at 102 Aa 4,422,294
Mortgage Bonds, 1991 Series C, 7.100%, 1/01/23
NEW JERSEY - 1.1%
13,000,000 Pollution Control Financing Authority of Camden County (Camden County, 12/01 at 102 BB 13,418,730
New Jersey), Solid Waste Disposal and Resource Recovery System, Revenue
Bonds, Series 1991 D, 7.250%, 12/01/10
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
NEW YORK - 15.0%
Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1990A:
$ 13,000,000 7.400%, 5/15/01 5/00 at 102 A- $14,187,680
11,750,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 13,000,435
8,325,000 Dormitory Authority of the State of New York, Menorah Campus, Inc., FHA-Insured 8/01 at 102 AAA 9,393,014
Mortgage Revenue Bonds, Series 1991, 7.400%, 2/01/31 (Pre-refunded to 8/01/01)
7,550,000 Dormitory Authority of the State of New York, Mental Health Services Facilities 2/07 at 102 A- 7,561,929
Improvement, Revenue Bonds, Series 1997B, 5.500%, 8/15/17
Dormitory Authority of the State of New York, Mental Health
Services Facilities Improvement, Revenue Bonds, Series 1997A:
13,060,000 5.750%, 8/15/22 2/07 at 102 A- 13,275,751
5,000,000 5.750%, 2/15/27 2/07 at 102 A- 5,078,400
21,075,000 New York Local Government Assistance Corporation, New York, Series 1991B, 4/01 at 102 Aaa 23,707,268
7.500%, 4/01/20 (Pre-refunded to 4/01/01)
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 8/05 at 102 Aa 4,766,960
4,250,000 6.300%, 8/15/25 8/05 at 102 Aa 4,617,158
8,000,000 New York State Medical Care Facilities Finance Agency, New York Hospital, 2/05 at 102 Aaa 8,872,720
FHA-Insured Mortgage, Revenue Bonds, 1994 Series A (AMBAC Insured Series),
6.500%, 8/15/29
5,000,000 New York State Medical Care Facilities Finance Agency, Brookdale Hospital, Medical 2/05 at 102 BBB+ 5,496,200
Center Secured Hospital, Revenue Bonds, 1995 Series A, 6.850%, 2/15/17
8,025,000 New York State Thruway Authority, General Revenue Bonds, Series C, 6.000%, 1/01/25 1/05 at 102 Aaa 8,481,703
2,170,000 N.F. Housing and Commercial Rehabilitation Corporation, 1992, Multifamily Mortgage, No Opt. Call AA 2,532,325
Revenue Refunding Bonds (FHAInsured Mortgage, Section 8 Assisted Project),
7.350%, 8/01/23
2,090,000 The City of New York (New York), General Obligation Bonds, Fiscal 1992 Series H, 2/02 at 101 1/2 Baa1 2,286,920
7.000%, 2/01/18
6,000,000 The City of New York (New York), General Obligation Bonds, Fiscal 1993 Series B, 10/02 at 101 1/2 Baa1 6,561,420
6.750%, 10/01/17
6,750,000 The City of New York, General Obligation Bonds, Fiscal 1985 Series F, 2/05 at 101 Baa1 7,477,043
6.625%, 2/15/25
11,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series J 2/06 at 101 1/2 Baa1 11,391,710
(Subseries J-1), 6.000%, 2/15/24
6,000,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series H, 8/07 at 101 Baa1 6,296,280
6.125%, 8/01/25
The City of New York, General Obligation Bonds, Fiscal 1995 Series B:
3,095,000 7.250%, 8/15/19 (Pre-refunded to 8/15/04) 8/04 at 101 Aaa 3,645,539
2,405,000 7.250%, 8/15/19 8/04 at 101 Baa1 2,737,660
14,190,000 New York City, New York, Municipal Water Finance Authority, Water and Sewer System, 6/05 at 101 Aaa 14,772,358
Revenue Bonds, Fiscal 1996 Series A, 5.875%, 6/15/25
6,500,000 New York City Transitional Finance Authority, Future Tax Secured Bonds Fiscal, 8/07 at 101 AA 6,218,355
1998 Series A, 5.000%, 8/15/27
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
NEW YORK - continued
$ 3,375,000 Penfield-Crown Oak Housing Development Corporation, 1991, Multifamily Mortgage, 2/03 at 100 AAA $3,591,203
Revenue Refunding Bonds (Crown Oak Estates - FHA Insured Mortgage, Section 8
Assisted Project), Series A, 7.350%, 8/01/23
NORTH CAROLINA - 0.9%
10,500,000 North Carolina Eastern Municipal Power Agency, Power System, Revenue Bonds, 1/02 at 102 Baa1 11,029,410
Refunding Series 1991 A, 6.250%, 1/01/03
OHIO - 1.0%
6,595,000 Ohio Housing Finance Agency, Residential Mortgage, Revenue Bonds (GNMA Mortgage- 3/05 at 102 AAA 7,050,846
Backed Securities Program), 1995 Series A-2, 6.625%, 3/01/26 (Alternative
Minimum Tax)
4,800,000 County of Butler, Ohio, Hospital Facilities, Revenue Refunding and Improvement 1/02 at 102 BBB- 5,223,600
Bonds, Series 1991 (Fort Hamilton-Hughes Memorial Hospital Center),
7.500%, 1/01/10
OKLAHOMA - 4.8%
12,810,000 Oklahoma County Home Finance Authority (Oklahoma County, Oklahoma), Single Family 7/01 at 102 A1 13,542,220
Mortgage, Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12
17,510,000 Pottawatomie County Home Finance Authority (Oklahoma), Municipal Refunding, No Opt. Call Aaa 23,516,105
Collateralized Mortgage Obligations (MRCMO), Series 1991 A, 8.625%, 7/01/10
10,000,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable Rate, Revenue 12/00 at 102 Baa2 10,866,000
Obligations, 7.375%, 12/01/20 (Alternative Minimum Tax)
10,100,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series 1991, 6/01 at 102 Baa2 11,148,481
7.600%, 12/01/30 (Alternative Minimum Tax)
PENNSYLVANIA - 0.6%
Falls Township Hospital Authority, Refunding Revenue Bonds, The
Delaware Valley Medical Center Project (FHA Insured Mortgage),
Series 1992:
3,890,000 6.900%, 8/01/11 8/02 at 102 AAA 4,230,881
3,000,000 7.000%, 8/01/22 8/02 at 102 AAA 3,270,060
RHODE ISLAND - 0.4%
5,260,000 Rhode Island Housing and Mortgage Finance Corporation, Mortgage Finance Revenue 4/98 at 102 A1 5,405,439
Bonds, 1988 Series A(Corporation Supplemental Insurance Program),
8.250%, 10/01/08
SOUTH CAROLINA - 0.6%
6,500,000 Lexington County Health Services District, Inc., South Carolina, Hospital, 10/01 at 102 Aaa 7,099,235
Revenue Bonds, Series 1991, 6.750%, 10/01/18
TENNESSEE - 1.1%
2,020,000 Metropolitan Government Nashville and Davidson County Water and Sewer System, 12/97 at 101 A1 2,029,110
7.000%, 1/01/14
10,300,000 Metropolitan Nashville Airport Authority (Tennessee) Airport Improvement, Revenue 7/01 at 102 Aaa 11,257,797
Bonds, Refunding Series 1991C, 6.625%, 7/01/07
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
TEXAS - 6.3%
$ 14,360,000 Alliance Airport Authority, Inc., Special Facilities, Revenue Bonds, Series 1990 12/00 at 102 Baa2 15,654,410
(American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax)
Arlington Independent School District (Tarrant County, Texas),
Unlimited Tax, Refunding and Improvement Bonds, Series 1995:
11,635,000 0.000%, 2/15/11 2/05 at 71 30/32 Aaa 5,770,611
13,985,000 0.000%, 2/15/14 2/05 at 58 22/32 Aaa 5,607,006
5,000,000 Brazos River Authority (Texas), Collateralized, Revenue Refunding Bonds 10/98 at 102 A- 5,238,350
(Houston Lighting and Power Company Project), Series 1988D,
7.750%, 10/01/15
5,600,000 Dallas-Fort Worth International Airport Facility Improvement Corporation, 11/00 at 102 Baa2 6,095,264
American Airlines, Inc, Revenue Bonds, Series 1990, 7.500%, 11/01/25
(Alternative Minimum Tax)
9,690,000 Fort Worth Housing Finance Corporation, Home Mortgage, Revenue Refunding Bonds, 10/01 at 103 Aa 10,558,127
Series 1991A, 8.500%, 10/01/11
7,815,000 City of Houston, Texas, Airport System Subordinate Lien, Revenue Bonds, 7/01 at 102 Aaa 8,596,266
Series 1991B, 6.625%, 7/01/22 (Pre-refunded to 7/01/01)
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) 12/01 at 102 Aaa 1,269,414
17,345,000 6.375%, 12/01/17 12/01 at 102 Aaa 18,861,473
VERMONT - 0.7%
Vermont Housing Finance Agency, Single Family Housing, Bonds, Series 2:
6,405,000 7.300%, 5/01/25 (Alternative Minimum Tax) 11/01 at 102 A1 6,758,556
1,595,000 6.875%, 5/01/25 (Alternative Minimum Tax) 11/01 at 102 A1 1,671,815
VIRGINIA - 1.2%
10,500,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 1/02 at 102 Aa1 11,069,415
Series A, 7.150%, 1/01/33
3,860,000 Industrial Development Authority of the City of Roanoke, Virginia, Hospital, 7/00 at 100 Aaa 4,092,990
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)
WASHINGTON - 7.2%
4,750,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1991 1/01 at 102 A 5,253,072
(Yakima Valley Memorial Hospital Association, Yakima), 7.250%, 1/01/21
(Pre-refunded to 1/01/01)
14,850,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue 7/00 at 102 Aaa 16,182,935
Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00)
4,000,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue 7/04 at 102 Aa1 4,012,040
Bonds, Series 1994A, 5.375%, 7/01/11
14,500,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue 1/00 at 102 Aaa 15,745,260
Bonds, Series 1989B, 7.400%, 7/01/09 (Pre-refunded to 1/01/00)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
WASHINGTON - continued
$ 3,010,000 Camas School District No. 117, Clark County, Washington, Unlimited Tax, General 12/05 at 100 Aaa $3,191,562
Obligation Bonds, 1995, 6.000%, 12/01/14
4,185,000 Douglas County Public Utility District No. 1 Wells Hydroelectric Project, 9/06 at 106 A+ 5,463,642
8.750%, 9/01/18
12,415,000 Federal Way School District No. 210, King County, Washington, Unlimited Tax, 12/03 at 100 A1 14,098,597
General Obligation Bonds, 1991, 6.950%, 12/01/11 (Pre-refunded to 12/01/03)
Municipality of Metropolitan Seattle (Seattle, Washington),
Limited Sales Tax, General Obligation Bonds, Series 1991
(Refunding):
9,810,000 6.625%, 1/01/11 1/98 at 101 1/2 Aa 9,995,212
10,310,000 6.875%, 1/01/20 1/98 at 101 1/2 Aa 10,505,270
4,000,000 North Thurston School District No. 3, Thurston County, Washington, 12/02 at 100 A 4,325,760
Unlimited Tax, General Obligation Bonds, 1992, 6.500%, 12/01/09
WISCONSIN - 1.6%
10,820,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 12/01 at 102 Aaa 12,029,567
Series 1991-B (Novus Health Group), 6.750%, 12/15/20 (Pre-refunded
to 12/15/01)
7,000,000 Wisconsin Housing and Economic Development Authority, Housing, Revenue Bonds, 1/02 at 102 A1 7,399,560
1992 Series A, 6.850%, 11/01/12
WYOMING - 0.6%
2,390,000 Wyoming Community Development Authority, Single Family, Mortgage Bonds, 1991 6/01 at 102 Aa 2,531,774
Series B, 7.400%, 6/01/31
4,500,000 Wyoming Community Development Authority, Single Family, Mortgage Bonds, 1988 11/01 at 103 Aa 4,814,774
Series G (Federally Insured or Guaranteed Mortgage Loans), 7.250%, 6/01/21
(Alternative Minimum Tax)
- --------------
$1,134,665,000 Total Investments - (cost $1,118,602,705) - 98.4% 1,218,925,089
==============
Other Assets Less Liabilities - 1.6% 19,610,782
-------------
Net Assets - 100% $1,238,535,871
=====================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
**Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Premier Municipal
Income Fund, Inc. (NPF)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
ALABAMA - 1.0%
$ 4,360,000 Alabama Higher Education Loan Corporation, Student Loan Revenue Refunding Bonds, No Opt. Call Aaa $4,645,929
Series 1994-D, 5.850%, 9/01/04 (Alternative Minimum Tax)
ALASKA - 0.4%
1,470,000 Municipality of Anchorage, Alaska, Home Mortgage Revenue Bonds (Mortgage-Backed 3/02 at 102 AAA 1,584,072
Securities Program), 1992, 8.000%, 3/01/09
ARIZONA - 5.3%
5,500,000 Arizona Educational Loan Marketing Corporation, 1992 Educational Loan Revenue No Opt. Call A 5,822,465
Bonds, Series B, 6.950%, 3/01/01 (Alternative Minimum Tax)
3,650,000 Gilbert Unified School District No. 41 of Maricopa County, Arizona, School 7/04 at 100 Aaa 4,008,211
Improvement Bonds, Project of 1993, Series C (1994), 6.100%, 7/01/14
(Pre-refunded to 7/01/04)
11,795,000 Yuma Regional Medical Center on behalf of Hospital District No. 1 of 8/02 at 101 1/2 A 13,809,232
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)
ARKANSAS - 1.3%
1,780,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1995 7/05 at 102 AAA 1,895,166
Series B(Mortgage-Backed Securities Program), 6.550%, 7/01/18 (Alternative
Minimum Tax)
1,400,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1994 7/05 at 102 AAA 1,511,790
Series C(Mortgage-Backed Securities Program), 6.600%, 7/01/17
357,942 Drew County (Arkansas), Public Facilities Board, Single Family Mortgage Revenue 8/03 at 103 Aaa 386,641
Refunding Bonds, Series 1993A, 7.900%, 8/01/11
1,310,000 Residential Housing Facilities Board of Greene County, Arkansas, Subordinated 1/02 at 103 Aa 1,399,394
Mortgage Revenue Bonds, Series 1991-1, 7.250%, 1/01/10
488,848 Public Facilities Board of Stuttgart, Arkansas, Single Family Mortgage Revenue 9/03 at 103 Aaa 534,599
Refunding Bonds, Series 1993A, 7.900%, 9/01/11
CALIFORNIA - 2.5%
33,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds, No Opt. Call Baa 11,227,260
Series 1995A, 0.000%, 1/01/17
COLORADO - 3.0%
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 No Opt. Call BBB- 1,596,225
1,250,000 6.875%, 2/15/12 2/02 at 102 BBB- 1,308,438
3,040,000 7.100%, 2/15/22 2/02 at 102 BBB- 3,185,130
550,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1990A, No Opt. Call Baa1 606,573
8.100%, 11/15/00 (Alternative Minimum Tax)
7,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1997E, 11/07 at 101 Aaa 6,902,070
5.250%, 11/15/23
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
CONNECTICUT - 1.9%
$ 1,280,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 5/04 at 102 Aa $1,376,192
1994 Series D, Subseries D-2, 6.900%, 5/15/20 (Alternative Minimum Tax)
2,000,000 Connecticut Housing Finance Authority Housing Mortgage Finance Program Bonds, 1996 5/06 at 102 Aa 2,115,440
Series C-2, 6.250%, 11/15/18
5,000,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1997 5/06 at 102 AA 5,228,150
Series A-4, 6.200%, 11/15/22 (Alternative Minimum Tax)
DISTRICT OF COLUMBIA - 2.8%
5,250,000 District of Columbia (Washington, D.C.), Hospital Revenue Bonds (National 11/99 at 102 Aaa 5,651,415
Rehabilitation Hospital, Inc. Issue), Series 1989A, Medlantic Healthcare Group,
7.125%, 11/01/19 (Pre-refunded to 11/01/99)
2,000,000 District of Columbia, Hospital Revenue Refunding Bonds (Washington Hospital Center 8/02 at 102 Baa1 2,179,280
Issue), Series 1992A, 7.000%, 8/15/05
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 9/02 at 102 Aa 981,852
3,505,000 7.250%, 3/01/24 9/02 at 102 Aa 3,723,572
FLORIDA - 1.4%
1,880,000 State of Florida, Full Faith and Credit, State Board of Education, Public 6/01 at 101 Aaa 2,056,551
Education Capital Outlay Bonds, Series 1991-B, 6.700%, 6/01/22
(Pre-refunded to 6/01/01)
4,000,000 Dade County, Florida, Aviation Bonds, Series 1996A, 5.750%, 10/01/18 (Alternative 10/06 at 102 Aaa 4,110,800
Minimum Tax)
GEORGIA - 0.6%
2,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series EE, No Opt. Call Aaa 2,564,680
7.250%, 1/01/24
IDAHO - 0.4%
1,500,000 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 1996 Series E, 7/06 at 102 Aa 1,572,090
6.350%, 7/01/14 (Alternative Minimum Tax)
ILLINOIS - 15.3%
Illinois Development Finance Authority, Multi-Family Housing Bonds, Series 1990B
(Affordable Housing Preservation Foundation Project)(FHA Insured Mortgage Loans
Lawless Gardens Project):
600,000 7.650%, 7/01/07 1/02 at 105 AAA 664,848
5,270,000 7.650%, 12/31/31 1/02 at 105 AAA 5,764,853
8,345,000 Illinois Development Finance Authority, Multi-Family Housing Revenue Bonds, Series 3/02 at 102 BBB+ 8,832,181
1992 (Town and Garden Apartments Project), 7.800%, 3/01/06 (Alternative
Minimum Tax)
7,400,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 (Trinity Medical 7/02 at 102 BBB 7,880,482
Center), 7.000%, 7/01/12
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
ILLINOIS - continued
$ 125,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1992A 4/02 at 102 AA- $ 139,281
(Evangelical Hospitals Corporation), 6.750%, 4/15/12 (Pre-refunded to 4/15/02)
740,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1992A No Opt. Call AA- 857,586
(Evangelical Hospitals Corporation), 6.750%, 4/15/12
4,760,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds 9/02 at 102 A 5,042,220
(Garden House of Maywood Development), Series 1992, 7.000%, 9/01/18
810,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds 1/03 at 102 A 861,087
(Morningside North Development), Series 1992D, 6.600%, 1/01/07
6,390,000 State of Illinois, Build Illinois Bonds (Sales Tax Revenue Bonds), Series S, 6/00 at 102 Aaa 6,936,856
6.800%, 6/15/12 (Pre-refunded to 6/15/00)
4,500,000 City of Chicago (Illinois), General Obligation Adjustable Rate Bonds, Central 7/02 at 101 1/2 Aaa 5,046,705
Public Library Project, Series C of 1988, 6.850%, 1/01/17
(Pre-refunded to 7/01/02)
8,075,000 Town of Cicero, Cook County, Illinois, General Obligation Tax Increment 12/04 at 102 N/R 9,819,927
Bonds, Series 1995A, 8.125%, 12/01/12 (Pre-refunded to 12/01/04)
2,000,000 Onterie Center Housing Finance Corporation (An Illinois Not For Profit 7/02 at 102 Aaa 2,135,580
Corporation), Mortgage Revenue Refunding Bonds, Series 1992A (FHA Insured
Mortgage Loan-Onterie Center Project), 7.050%, 7/01/27
2,835,000 Village of Sugar Grove, Kane County, Illinois, Waterworks and Sewerage Refunding 5/02 at 102 N/R 3,070,872
Revenue Bonds, Series 1992, 7.500%, 5/01/17
5,815,000 Town of Wood River, Wood River Township Hospital, Madison County, Illinois, General 2/04 at 102 BBB 6,336,140
Obligation Bonds (Alternate Revenue Source), Series 1993, 6.625%, 2/01/14
5,760,000 Town of Wood River, Wood River Township Hospital, Madison County, Illinois, General 2/04 at 102 BBB 6,241,421
Obligation Tort Immunity Bonds, Series 1993, 6.500%, 2/01/14
INDIANA - 1.2%
2,000,000 City of Indianapolis, Indiana, Exempt Facility Revenue Bonds, Series 1991 6/99 at 102 A+ 2,095,580
(Mid America Energy Resources, Inc. Project), 7.250%, 12/01/11
(Alternative Minimum Tax)
2,860,000 PHM Elementary/Middle School Building Corporation (St. Joseph County, Indiana), No Opt. Call A 3,199,225
First Mortgage Bonds, Series 1994, 6.300%, 1/5/09
IOWA - 0.4%
1,655,000 Iowa Student Loan Liquidity Corporation, Student Loan Revenue Bonds, 12/02 at 102 Aaa 1,732,206
Senior Series B, 5.750%, 12/01/06 (Alternative Minimum Tax)
KANSAS - 0.9%
3,800,000 City of Hutchinson, Kansas, Single Family Mortgage Revenue Refunding Bonds, 6/02 at 103 A 4,098,756
Series 1992, 8.875%, 12/01/12
KENTUCKY - 1.2%
5,000,000 Kentucky Rural Economic Development Authority, Economic Development Project 7/02 at 102 N/R 5,375,350
Revenue Bonds, Series 1992 (Donnelly Corporation Project), 8.125%, 7/01/12
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
LOUISIANA - 0.3%
$ 1,310,000 Louisiana Housing Finance Agency, Mortgage Revenue Bonds (GNMA Collateralized 9/05 at 103 AAA $1,441,498
Mortgage Loan-St. Dominic Assisted Care Facility), Series 1995, 6.850%, 9/01/25
MAINE - 2.1%
8,470,000 Maine Educational Loan Marketing Corporation, Subordinate Student Loan Revenue No Opt. Call A 9,217,054
Bonds, Series 1994-2, 6.250%, 11/01/06 (Alternative Minimum Tax)
MARYLAND - 1.4%
6,000,000 Anne Arundel County, Maryland, Multifamily Housing Revenue Bonds (Woodside No Opt. Call BBB+ 6,343,740
Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax)
(Mandatory put 12/01/03)
MASSACHUSETTS - 6.5%
1,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 6/99 at 102 A1 1,064,720
Brigham and Women's Hospital Issue, Series 1989 C, 7.000%, 6/01/18
(Pre-refunded to 6/01/99)
2,450,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New 4/02 at 102 A 2,667,266
England Deaconess Hospital Issue, Series D, 6.875%, 4/01/22
3,875,000 Massachusetts Health and Educational, Facilities Authority, Revenue Refunding Bonds, 2/04 at 102 Aa 4,006,363
Youville Hospital Issue (FHA Insured Project), Series B, 6.000%, 2/15/25
9,070,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds, Semass 7/01 at 103 N/R 10,236,493
Project, Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax)
40,000 Massachusetts Municipal Wholesale Electric Company, Power Supply System Revenue No Opt. Call BBB+ 45,433
Bonds, 1987 Series A, 8.750%, 7/01/18
9,780,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1992 Series A, 7/02 at 102 Aaa 10,974,725
6.750%, 7/15/12 (Pre-refunded to 7/15/02)
MICHIGAN - 0.6%
2,500,000 Wayne County Building Authority (State of Michigan), Building Authority (Capital 3/02 at 102 BBB+ 2,901,900
Improvement Bonds),Series 1992A (Limited Tax General Obligation), 8.000%, 3/01/17
(Pre-refunded to 3/01/02)
MINNESOTA - 2.5%
11,180,000 Northwest Minnesota, Multi-County, Housing and Redevelopment Authority, 10/04 at 102 N/R 11,180,000
Governmental Housing Revenue Bonds (Pooled Housing Program), Series 1994A,
8.125%, 10/01/26
MISSISSIPPI - 0.6%
8,610,000 Mississippi Home Corporation, Residual Revenue Capital Appreciation Bonds, 3/04 at 41 20/32 Aaa 2,790,587
Series 1992-I, 0.000%, 9/15/16
NEBRASKA - 3.9%
2,350,000 Nebraska Higher Education Loan Program, Inc., Senior Subordinate Bonds, No Opt. Call Aa 2,493,515
Series A-5B, 6.250%, 6/01/18 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
NEBRASKA - continued
$ 2,830,000 City of Grand Island, Nebraska, Electric System Revenue Bonds, 1977 Series, No Opt. Call A1 $3,099,133
6.100%, 9/01/12
10,935,000 Omaha Public Power District (Nebraska), Electric System Revenue Bonds, 1992, 2/02 at 101 1/2 AAA 12,020,955
Series A, 6.500%, 2/01/17 (Pre-refunded to 2/01/02)
NEW HAMPSHIRE - 2.4%
1,290,000 New Hampshire Municipal Bond Bank, Educational Institutions Division, Revenue No Opt. Call N/R 1,394,258
Bonds (1994 Coe-Brown Northwood Academy Project), 7.250%, 5/01/09
9,200,000 The Industrial Development Authority of the State of New Hampshire, Resource 1/98 at 102 A- 9,441,132
Recovery Revenue Bonds, Series 1987 (SES Concord Project), 8.500%, 1/01/09
NEW YORK - 12.8%
6,500,000 Dormitory Authority of the State of New York, City University System Consolidated 7/00 at 102 Aaa 7,190,235
Revenue Bonds, Series 1990A, 7.625%, 7/01/20 (Pre-refunded to 7/01/00)
5,000,000 New York Local Government Assistance Corporation, New York, Series 1991B, 4/01 at 102 Aaa 5,624,500
7.500%, 4/01/20 (Pre-refunded to 4/01/01)
4,905,000 New York State Medical Care Facilities Finance Agency, St. Luke's-Roosevelt Hospital 8/03 at 102 AAA 5,072,064
Center, FHA-Insured Mortgage Revenue Bonds, 1993 Series A, 5.600%, 8/15/13
6,000,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home, 8/02 at 102 AAA 6,376,320
FHA-Insured Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22
8,450,000 New York State Urban Development Corporation, State Facilities Revenue Bonds, Series 4/01 at 102 Aaa 9,505,405
1991, 7.500%, 4/01/20 (Pre-refunded to 4/01/01)
3,500,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series B, No Opt. Call Baa1 3,824,905
7.500%, 2/01/01
The City of New York, General Obligation Bonds, Fiscal 1995 Series E:
1,550,000 6.500%, 8/01/02 No Opt. Call Baa1 1,676,992
3,080,000 6.600%, 8/01/04 No Opt. Call Baa1 3,403,616
1,000,000 The City of New York, General Obligation Bonds, Fiscal, 1995 Series A, No Opt. Call Baa1 1,126,700
7.000%, 8/01/04
2,075,000 The City of New York, General Obligation Bonds, Fiscal 1990 Series F, 11/01 at 101 1/2 Aaa 2,428,082
8.400%, 11/15/05 (Pre-refunded to 11/15/01)
2,000,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series C-1 8/02 at 101 1/2 Aaa 2,231,800
Fixed Rate Bonds, 6.625%, 8/01/12 (Pre-refunded to 8/01/02)
4,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series J-1, 2/06 at 101 1/2 Baa1 4,094,200
5.875%, 2/15/19
2,085,000 The City of New York, General Obligation Bonds, Fiscal 1991 Series D, 8/01 at 101 1/2 Baa1 2,456,568
9.500%, 8/01/02
1,915,000 The City of New York, General Obligation Bonds, Fiscal 1991 Series D, 8/01 at 101 1/2 Aaa 2,291,068
9.500%, 8/01/02 (Pre-refunded to 8/01/01)
NORTH CAROLINA - 0.5%
2,130,000 North Carolina Housing Finance Agency, Multifamily Revenue Refunding Bonds (1992 7/02 at 102 Aa 2,283,211
Refunding Bond Resolution), Series B, 6.900%, 7/01/24
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
OHIO - 4.9%
$ 11,735,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA 9/99 at 102 AAA $12,321,980
Mortgage-Backed Securities Program), 1989 Series A, 7.650%, 3/01/29 (Alternative
Minimum Tax)
8,500,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital Facilities 11/97 at 102 Aaa 8,686,150
Revenue Bonds, Series 1987 (Akron City Hospital Project), 8.875%, 11/15/07
(Pre-refunded to 11/15/97)
895,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest Ohio Bond 5/00 at 102 N/R 942,202
Fund), Series 1992A, 7.750%, 5/15/07 (Alternative Minimum Tax)
PENNSYLVANIA - 4.4%
2,000,000 Falls Township Hospital Authority, Refunding Revenue Bonds, The Delaware Valley 8/02 at 102 AAA 2,180,040
Medical Center Project, Series 1992, 7.000%, 8/01/22
1,175,000 Northampton County Hospital Authority (Pennsylvania), Hospital Revenue Bonds No Opt. Call BBB 1,237,581
(Easton Hospital), Series A of 1992, 6.900%, 1/01/02
7,625,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue Bonds, Tenth Series, No Opt. Call Aaa 8,812,441
7.350%, 9/01/04
4,450,000 The Hospitals and Higher Education Facilities Authority of Philadelphia, 8/00 at 100 A- 4,840,977
Hospital Revenue Bonds (Children's Seashore House), Series 1992B,
7.000%, 8/15/22
2,500,000 The Hospitals and Higher Eduction Facilities Authority of Philadelphia 8/02 at 102 A- 2,736,375
Hospital Revenue Bonds (Children's Seashore House), Series 1992A,
7.000%, 8/15/12
SOUTH DAKOTA - 1.5%
6,510,000 South Dakota Student Loan Assistance Corporation, Student Loan Revenue Bonds, No Opt. Call A 6,786,284
Series 1989-B, 7.400%, 8/01/99 (Alternative Minimum Tax)
TEXAS - 3.6%
4,288,965 General Services Commission (an Agency of the State of Texas), as Lessee, 9/99 at 101 1/2 A 4,620,031
Participation Interests, 7.500%, 9/01/22
9,500,000 Harris County Health Facilities Development Corporation, Adjustable Convertible 11/97 at 100 A1 9,596,710
Extendable Securities (Greater Houston Pooled Health Care Loan Program),
Series 1985B, 7.375%, 12/01/25 (Mandatory put 12/01/98)
1,685,000 Victoria Housing Finance Corporation, Single Family Mortgage Revenue No Opt. Call Aaa 1,844,570
Refunding Bonds, Series 1995, 8.125%, 1/01/11
UTAH - 0.8%
1,250,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1996 Series C, 1/07 at 102 AA 1,320,188
6.450%, 7/01/14 (Alternative Minimum Tax)
2,250,000 Utah Housing Finance Agency Single Family Mortgage Bonds, 1997 Series F, 7/07 at 101 1/2 AA 2,259,473
5.750%, 7/01/15 (Alternative Minimum Tax)
VIRGINIA - 2.0%
5,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1/02 at 102 Aa1 5,294,800
1992 Series A, 7.100%, 1/01/22
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
VIRGINIA - continued
$ 3,200,000 Suffolk Redevelopment and Housing Authority, Multifamily Housing Revenue Refunding 7/02 at 104 Baa2 $3,503,744
Bonds, Series 1994 (Chase Heritage at Dulles Project), 7.000%, 7/01/24 (Mandatory
put 7/01/04)
WASHINGTON - 4.2%
9,500,000 State of Washington, General Obligation and General Obligation Refunding Bonds, No Opt. Call Aa1 10,708,590
Series 1992A and AT-6, 6.250%, 2/01/11
2,500,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (Sacred 2/02 at 102 AA- 2,711,075
Heart Medical Center, Spokane), 6.875%, 2/15/12
3,000,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue 7/99 at 102 Aaa 3,223,860
Bonds, Series 1989A, 7.500%, 7/01/07 (Pre-refunded to 7/01/99)
2,000,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue 7/00 at 102 Aa1 2,181,760
Bonds, Series 1990B, 7.375%, 7/01/04
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) 5/02 at 102 Aaa 2,140,440
WISCONSIN - 2.2%
5,950,000 Wisconsin Housing and Economic Development Authority, Housing Revenue Bonds, 1/02 at 102 A1 6,289,626
1992 Series A, 6.850%, 11/01/12
2,985,000 Silver Lake Sanitary District, Waushara County, Wisconsin, Sewer System Mortgage 10/02 at 100 N/R 3,481,853
Revenue Bonds, 8.000%, 10/01/18 (Pre-refunded to 10/01/02)
WYOMING - 0.9%
4,000,000 Wyoming Community Development Authority, Single Family Mortgage Bonds (Federally 11/99 at 103 Aa 4,150,800
Insured or Guaranteed Mortgage Loans), 1988 Series E, 7.750%, 6/01/09 (Alternative
Minimum Tax)
- ------------
$436,105,755 Total Investments - (cost $407,366,927) - 98.2% 440,890,361
============ ------------
Temporary Investments in Short-Term Municipal Securities - 0.4%
$ 1,700,000 Clark County, Nevada, Variable Rate Demand Industrial Development Revenue Bonds VMIG-1 1,700,000
============ (Nevada Cogeneration Associates #1 Project), Series 1991, 4.350%, 11/01/21+ ------------
(Alternative Minimum Tax)
Other Assets Less Liabilities - 1.4% 6,216,316
------------
Net Assets - 100% $448,806,677
=====================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ 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>
Statement of Net Assets
October 31, 1997
<CAPTION>
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
ASSETS
Investments in municipal securities,
at market value (note 1) $ 795,372,701 $ 740,407,801 $1,218,925,089
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) 3,200,000 7,300,000 --
Cash 372,455 572,788 803,053
Receivables:
Interest 15,574,469 13,989,115 24,500,784
Investments sold 153,574 953,032 70,000
Other assets 2,407 23,909 1,315
-------------- -------------- --------------
Total assets 814,675,606 763,246,645 1,244,300,241
-------------- -------------- --------------
LIABILITIES
Payable for investments purchased 1,642,333 -- --
Accrued expenses:
Management fees (note 6) 428,696 402,966 649,575
Other 257,020 256,703 451,529
Preferred share dividends payable 85,456 80,540 104,226
Common share dividends payable 2,925,519 2,736,434 4,559,040
-------------- -------------- --------------
Total liabilities 5,339,024 3,476,643 5,764,370
-------------- -------------- --------------
Net assets (note 7) $ 809,336,582 $ 759,770,002 $1,238,535,871
============== ============== ==============
Preferred shares, at liquidation value $ 250,000,000 $ 240,000,000 $ 400,000,000
============== ============== ==============
Preferred shares outstanding 10,000 9,600 16,000
============== ============== ==============
Common shares outstanding 35,460,842 33,575,882 53,322,102
============== ============== ==============
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 15.77 $ 15.48 $ 15.73
============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<PAGE>
Statement of Net Assets
October 31, 1997
<CAPTION>
Premier Income
<S> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $440,890,361
Temporary investments in short-term municipal securities, at amortized cost, which
approximates market value (note 1) 1,700,000
Cash 261,240
Receivables:
Interest 8,063,965
Investments sold 30,000
Other assets 6,305
------------
Total assets 450,951,871
------------
LIABILITIES
Payable for investments purchased --
Accrued expenses:
Management fees (note 6) 241,393
Other 177,235
Preferred share dividends payable 26,680
Common share dividends payable 1,699,886
------------
Total liabilities 2,145,194
------------
Net assets (note 7) $448,806,677
============
Preferred shares, at liquidation value $140,000,000
============
Preferred shares outstanding 5,600
============
Common shares outstanding 19,766,122
============
Net asset value per Common share outstanding (net assets less Preferred shares
at liquidation value, divided by Common shares outstanding) $ 15.62
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year ended October 31, 1997
<CAPTION>
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 50,655,508 $ 47,690,653 $ 78,269,330
------------ ------------ ------------
EXPENSES
Management fees (note 6) 5,006,594 4,694,773 7,577,975
Preferred shares - auction fees 626,570 601,507 1,002,512
Preferred shares - dividend disbursing agent fees 40,638 49,636 54,898
Shareholders' servicing agent fees and expenses 93,653 83,851 138,271
Custodian's fees and expenses 107,655 102,608 152,495
Directors' fees and expenses (note 6) 5,695 5,377 8,734
Professional fees 24,241 24,009 26,160
Shareholders' reports - printing and mailing expenses 186,304 178,272 289,323
Stock exchange listing fees 33,710 33,862 49,946
Investor relations expense 63,267 58,720 95,901
Other expenses 40,381 36,912 55,020
------------ ------------ ------------
Total expenses 6,228,708 5,869,527 9,451,235
------------ ------------ ------------
Net investment income 44,426,800 41,821,126 68,818,095
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 4) 1,863,026 (260,112) 1,030,758
Net change in unrealized appreciation or depreciation
of investments 8,788,246 12,637,266 13,732,677
------------ ------------ ------------
Net gain from investments 10,651,272 12,377,154 14,763,435
------------ ------------ ------------
Net increase in net assets from operations $ 55,078,072 $ 54,198,280 $ 83,581,530
============ ============ ============
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<PAGE>
Statement of Operations
Year ended October 31, 1997
<CAPTION>
Premier Income
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 28,192,563
------------
EXPENSES
Management fees (note 6) 2,814,847
Preferred shares - auction fees 350,878
Preferred shares - dividend disbursing agent fees 23,562
Shareholders' servicing agent fees and expenses 50,737
Custodian's fees and expenses 71,974
Directors' fees and expenses (note 6) 3,239
Professional fees 21,291
Shareholders' reports - printing and mailing expenses 122,315
Stock exchange listing fees 24,321
Investor relations expense 34,853
Other expenses 25,415
------------
Total expenses 3,543,432
------------
Net investment income 24,649,131
------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 4) (33,540)
Net change in unrealized appreciation or depreciation
of investments 6,209,013
------------
Net gain from investments 6,175,473
------------
Net increase in net assets from operations $ 30,824,604
============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
Investment Quality Select Quality
Year ended Year ended Year ended Year ended
10/31/97 10/31/96 10/31/97 10/31/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 44,426,800 $ 45,525,573 $ 41,821,126 $ 42,356,923
Net realized gain (loss) from investment
transactions (notes 1 and 4) 1,863,026 1,504,856 (260,112) (606,382)
Net change in unrealized appreciation or
depreciation of investments 8,788,246 (7,671,673) 12,637,266 (4,774,830)
-------------- --------------- --------------- ---------------
Net increase in net assets from operations 55,078,072 39,358,756 54,198,280 36,975,711
-------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (35,722,144) (36,524,778) (33,652,304) (54,531,750)
Preferred shareholders (8,784,807) (9,160,050) (8,525,310) (8,711,507)
From accumulated net realized gains from
investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
-------------- --------------- --------------- ---------------
Decrease in net assets from distributions
to shareholders (44,506,951) (45,684,828) (42,177,614) (68,564,449)
-------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 416,095 454,280 2,690,547 749,508
-------------- --------------- --------------- ---------------
Net increase in net assets from capital
share transactions 416,095 454,280 2,690,547 749,508
-------------- --------------- --------------- ---------------
Net increase (decrease) in net assets 10,987,216 (5,871,792) 14,711,213 (4,824,327)
Net assets at beginning of year 798,349,366 804,221,158 745,058,789 749,883,116
-------------- --------------- --------------- ---------------
Net assets at end of year $ 809,336,582 $ 798,349,366 $ 759,770,002 $ 745,058,789
-------------- --------------- --------------- ---------------
Balance of undistributed net investment
income at end of year $ 923,978 $ 1,004,129 $ 489,055 $ 845,543
============== =============== =============== ===============
<PAGE>
<CAPTION>
Quality Income
Year ended Year Ended
10/31/97 10/31/96
<S> <C> <C>
OPERATIONS
Net investment income $ 68,818,095 $ 68,911,832
Net realized gain (loss) from investment
transactions (notes 1 and 4) 1,030,758 (491,071)
Net change in unrealized appreciation or
depreciation of investments 13,732,677 1,379,318
--------------- ---------------
Net increase in net assets from operations 83,581,530 69,800,079
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (54,531,750) (54,457,859)
Preferred shareholders (14,032,699) (14,584,206)
From accumulated net realized gains from
investment transactions:
Common shareholders -- --
Preferred shareholders -- --
--------------- ---------------
Decrease in net assets from distributions
to shareholders (68,564,449) (69,042,065)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 3,855,955 --
--------------- ---------------
Net increase in net assets from capital
share transactions 3,855,955 --
--------------- ---------------
Net increase (decrease) in net assets 18,873,036 758,014
Net assets at beginning of year 1,219,662,835 1,218,904,821
--------------- ---------------
Net assets at end of year $ 1,238,535,871 $ 1,219,662,835
=============== ===============
Balance of undistributed net investment
income at end of year $ 2,158,049 $ 1,904,403
=============== ===============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
Premier Income
Year ended Year ended
10/31/97 10/31/96
<S> <C> <C>
OPERATIONS
Net investment income $ 24,649,131 $ 24,906,103
Net realized gain (loss) from investment transactions (notes 1 and 4) (33,540) 959,626
Net change in unrealized appreciation or depreciation of investments 6,209,013 1,395,464
------------- -------------
Net increase in net assets from operations 30,824,604 27,261,193
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (20,325,882) (19,922,661)
Preferred shareholders (4,752,424) (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 (26,037,963) (26,489,111)
------------- -------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 1,866,897 --
------------- -------------
Net increase in net assets from capital share transactions 1,866,897 --
------------- -------------
Net increase (decrease) in net assets 6,653,538 772,082
Net assets at beginning of year 442,153,139 441,381,057
------------- -------------
Net assets at end of year $ 448,806,677 $ 442,153,139
============= =============
Balance of undistributed net investment income at end of year $ 895,451 $ 1,324,626
============= =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Notes to Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
New York Stock Exchange symbols are Nuveen Investment Quality Municipal Fund,
Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality
Income Municipal Fund, Inc. (NQU) and Nuveen Premier Municipal Income Fund, Inc.
(NPF).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end, diversified management
investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of their when-issued and delayed delivery purchase commitments. At
October 31, 1997, Investment Quality had a delayed delivery purchase commitment
of $1,642,333. There were no such purchase commitments in any of the
other funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
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. All income
dividends paid during the fiscal year ended October 31, 1997, have been
designated Exempt Interest Dividends. Net realized capital gain and market
discount distributions are subject to federal taxation.
<PAGE>
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent.
The number of shares outstanding, by Series and in total, for each Fund is as
follows:
<TABLE>
<CAPTION>
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Number of shares:
Series M 2,500 2,000 3,000
Series T 2,500 2,000 3,000
Series W 2,500 2,800 3,000
Series Th -- -- 4,000
Series F 2,500 2,800 3,000
------ ----- ------
Total 10,000 9,600 16,000
====== ===== ======
<CAPTION>
Premier Income
<S> <C>
Number of shares:
Series M --
Series T 2,800
Series W --
Series Th 2,800
Series F --
-----
Total 5,600
=====
</TABLE>
<PAGE>
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap, 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 fiscal year ended October 31, 1997.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period.
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
Investment Quality Select Quality Quality Income
Year ended Year ended Year ended Year ended Year ended Year ended
10/31/97 10/31/96 10/31/97 10/31/96 10/31/97 10/31/96
<S> <C> <C> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment
of distributions 26,629 29,711 175,523 49,729 244,283 --
====== ====== ======= ====== ======= ====
<CAPTION>
Premier Income
Year ended Year ended
10/31/97 10/31/96
Shares issued to shareholders
due to reinvestment
of distributions 119,104 --
======= ====
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On November 3, 1997, the Funds declared Common share dividend distributions from
their tax-exempt net investment income which were paid December 1, 1997, to
shareholders of record on November 15, 1997, as follows:
<TABLE>
<CAPTION>
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Dividend per share $.0825 $.0815 $.0855
====== ====== ======
<CAPTION>
Premier Income
<S> <C>
Dividend per share $.0860
======
</TABLE>
<PAGE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the fiscal year ended
October 31, 1997, were as follows:
<TABLE>
<CAPTION>
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Purchases:
Investments in municipal securities $110,231,418 $ 77,818,682 $113,683,740
Temporary municipal investments 116,375,000 93,900,000 24,900,000
Sales and Maturities:
Investments in municipal securities 106,106,831 70,460,904 108,838,272
Temporary municipal investments 115,975,000 91,000,000 24,900,000
============ ============ ============
<CAPTION>
Premier Income
<S> <C>
Purchases:
Investments in municipal securities $ 23,741,866
Temporary municipal investments 22,200,000
Sales and Maturities:
Investments in municipal securities 23,833,028
Temporary municipal investments 21,300,000
============
</TABLE>
At October 31, 1997, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for each
Fund.
At October 31, 1997, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied the carryforwards will expire as follows:
<TABLE>
<CAPTION>
Select Quality Quality Income Premier Income
<S> <C> <C> <C>
Expiration year:
2002 $6,626,291 $4,493,498 $ --
2003 424,861 757,201 --
2004 606,382 486,077 --
2005 260,112 -- 33,540
---------- ---------- -------
Total $7,917,646 $5,736,776 $33,540
========== ========== =======
</TABLE>
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 1997, were as follows:
<TABLE>
<CAPTION>
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Gross unrealized:
appreciation $ 63,371,185 $59,405,162 $100,324,532
depreciation (39,586) (3,465) (2,148)
------------ ----------- ------------
Net unrealized appreciation $ 63,331,599 $59,401,697 $100,322,384
============ =========== ============
<CAPTION>
Premier Income
<S> <C>
Gross unrealized:
appreciation $33,523,476
depreciation (42)
-----------
Net unrealized appreciation $33,523,434
===========
</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 as follows:
<TABLE>
<CAPTION>
Average daily net asset value Management fee
<S> <C>
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 October 31, 1997, net assets consisted of:
<CAPTION>
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 250,000,000 $ 240,000,000 $ 400,000,000
Common shares, $.01 par value per share 354,608 335,759 533,221
Paid-in surplus 494,267,732 467,461,137 741,258,993
Balance of undistributed net investment income 923,978 489,055 2,158,049
Accumulated net realized gain (loss) from
investment transactions 458,665 (7,917,646) (5,736,776)
Net unrealized appreciation of investments 63,331,599 59,401,697 100,322,384
--------------- --------------- ---------------
Net assets $ 809,336,582 $ 759,770,002 $ 1,238,535,871
=============== =============== ===============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
=============== =============== ===============
<CAPTION>
Premier Income
<S> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 140,000,000
Common shares, $.01 par value per share 197,661
Paid-in surplus 274,223,671
Balance of undistributed net investment income 895,451
Accumulated net realized gain (loss) from
investment transactions (33,540)
Net unrealized appreciation of investments 33,523,434
---------------
Net assets $ 448,806,677
===============
Authorized shares:
Common 200,000,000
Preferred 1,000,000
===============
</TABLE>
<PAGE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At October 31, 1997, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<TABLE>
<CAPTION>
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Revenue Bonds:
Housing Facilities 20% 20% 19%
Health Care Facilities 15 4 6
Transportation 1 10 10
Utilities 7 9 2
Pollution Control Facilities 4 8 4
Educational Facilities 4 2 1
Water / Sewer Facilities 3 6 5
Industrial Development 2 -- 2
Lease Rental Facilities 3 1 2
Other 5 2 8
General Obligation Bonds 5 8 8
Escrowed Bonds 31 30 33
--- --- ---
100% 100% 100%
=== === ===
<CAPTION>
Premier Income
<S> <C>
Revenue Bonds:
Housing Facilities 29%
Health Care Facilities 7
Transportation 5
Utilities 1
Pollution Control Facilities 1
Educational Facilities 7
Water / Sewer Facilities 1
Industrial Development 3
Lease Rental Facilities 1
Other 4
General Obligation Bonds 10
Escrowed Bonds 31
---
100%
===
</TABLE>
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 (59% for Investment Quality, 52% for Select Quality, 49%
for Quality Income and 35% for Premier Income). Such insurance or escrow,
however, does not guarantee the market value of the municipal securities or the
value of any of the Funds' shares.
All of the temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
Financial Highlights
Selected data for a common share outstanding throughout each period is
as follows:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
----------------------------------- ---------------------------------
Net asset Net realized
value Net and unrealized
beginning investment gain (loss) To Common To Preferred
of period income from investments Shareholders Shareholders+
<S> <C> <C> <C> <C> <C>
Investment Quality
Year ended 10/31:
1997 $15.48 $1.25 $ .30 $(1.01) $(.25)
1996 15.65 1.29 (.17) (1.03) (.26)
1995 14.65 1.33 1.04 (1.08) (.29)
1994 16.45 1.32 (1.76) (1.12) (.24)
1993 15.34 1.40 1.19 (1.23) (.21)
1992 15.13 1.44 .17 (1.16) (.24)
1991 13.93 1.46 1.18 (1.09) (.35)
6/21/90 to
10/31/90 14.05 .32 (.03) (.18) (.03)
<CAPTION>
Select Quality
<S> <C> <C> <C> <C> <C>
Year ended 10/31:
1997 15.12 1.25 .37 (1.01) (.25)
1996 15.29 1.27 (.17) (1.01) (.26)
1995 14.03 1.30 1.30 (1.05) (.29)
1994 16.13 1.31 (2.06) (1.08) (.25)
1993 14.92 1.35 1.30 (1.22) (.22)
1992 14.64 1.38 .19 (1.05) (.24)
3/21/91 to
10/31/91 14.05 .65 .68 (.43) (.12)
<CAPTION>
Quality Income
<S> <C> <C> <C> <C> <C>
Year ended 10/31:
1997 15.44 1.29 .29 (1.03) (.26)
1996 15.43 1.30 .02 (1.03) (.28)
1995 14.20 1.31 1.26 (1.03) (.31)
1994 16.40 1.32 (2.14) (1.10) (.26)
1993 14.62 1.34 1.82 (1.15) (.23)
1992 14.29 1.33 .27 (1.02) (.25)
6/19/91 to
10/31/91 14.05 .28 .33 (.17) (.02)
<CAPTION>
Premier Income
<S> <C> <C> <C> <C> <C>
Year ended 10/31:
1997 15.38 1.25 .31 (1.03) (.24)
1996 15.34 1.27 .12 (1.01) (.26)
1995 14.08 1.28 1.34 (1.01) (.28)
1994 15.98 1.26 (1.87) (1.04) (.24)
1993 14.07 1.25 1.85 (.97) (.19)
12/19/91 to
10/31/92 14.05 .74 .19 (.64) (.09)
<PAGE>
<CAPTION>
Distributions from
capital gains
---------------------------
Organization and
offering costs and Per common
Preferred share Net asset share
To Common To Preferred underwriting value market value
Shareholders Shareholders+ discounts end of period end of period
<S> <C> <C> <C> <C> <C>
Investment Quality
Year ended 10/31:
1997 $-- $-- $-- $15.77 $15.5625
1996 -- -- -- 15.48 15.0000
1995 -- -- -- 15.65 15.1250
1994 -- -- -- 14.65 13.3750
1993 (.03) (.01) -- 16.45 17.5000
1992 -- -- -- 15.34 15.7500
1991 -- -- -- 15.13 16.0000
6/21/90 to
10/31/90 -- -- (.20) 13.93 14.2500
<CAPTION>
Select Quality
<S> <C> <C> <C> <C> <C>
Year ended 10/31:
1997 -- -- -- 15.48 15.5000
1996 -- -- -- 15.12 15.1250
1995 -- -- -- 15.29 14.7500
1994 (.02) -- -- 14.03 13.1250
1993 -- -- -- 16.13 16.5000
1992 -- -- -- 14.92 14.7500
3/21/91 to
10/31/91 -- -- (.19) 14.64 15.0000
<CAPTION>
Quality Income
<S> <C> <C> <C> <C> <C>
Year ended 10/31:
1997 -- -- -- 15.73 16.3125
1996 -- -- -- 15.44 15.2500
1995 -- -- -- 15.43 14.7500
1994 (.02) -- -- 14.20 12.8750
1993 -- -- -- 16.40 16.3750
1992 -- -- -- 14.62 14.2500
6/19/91 to
10/31/91 -- -- (.18) 14.29 14.6250
<CAPTION>
Premier Income
<S> <C> <C> <C> <C> <C>
Year ended 10/31:
1997 (.04) (.01) -- 15.62 16.5000
1996 (.06) (.02) -- 15.38 15.1250
1995 (.06) (.01) -- 15.34 14.6250
1994 (.01) -- -- 14.08 12.7500
1993 (.03) -- -- 15.98 15.2500
12/19/91 to
10/31/92 -- -- (.18) 14.07 14.0000
<PAGE>
<CAPTION>
Ratios/Supplemental data
-------------------------------------------------------------
Ratio of net
Total Ratio of investment
investment Total return Net assets expenses to income to Portfolio
return on on net end of period average average turnover
market value** asset value** (in thousands) net assets++ net assets++ rate
<S> <C> <C> <C> <C> <C> <C>
Investment Quality
Year ended 10/31:
1997 10.82% 8.68% $809,337 .78% 5.56% 14%
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>
Select Quality
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31:
1997 9.43 9.35 759,770 .78 5.59 10
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
<CAPTION>
Quality Income
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31:
1997 14.22 8.81 1,238,536 .77 5.62 9
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>
Premier Income
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31:
1997 16.81 8.85 448,807 .80 5.57 5
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. Total returns are not annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to preferred
shareholders.
</FN>
</TABLE>
<PAGE>
Independent Auditor's Report
THE BOARD OF DIRECTORS AND SHAREHOLDERS
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Investment Quality Municipal Fund, Inc.,
Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income Municipal
Fund, Inc. and Nuveen Premier Municipal Income Fund, Inc. as of October 31,
1997, and the related statements of operations and changes in net assets and the
financial highlights for the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
October 31, 1997, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal
Fund, Inc., Nuveen Quality Income Municipal Fund, Inc. and Nuveen Premier
Municipal Income Fund, Inc. at October 31, 1997, and the results of their
operations, changes in their net assets and financial highlights for the periods
indicated therein in conformity with generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
December 12, 1997
<PAGE>
Fund Information
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Anthony T. Dean
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Fried, Frank, Harris,
Shriver & Jacobson
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, Illinois
<PAGE>
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
(continued from inside front cover)
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
FLEXIBILITY
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us
toll-free at (800) 257-8787.
<PAGE>
Serving Investors for Generations
Photo of: John Nuveen, Sr.
Since our founding in 1898, John Nuveen &Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for investors whose portfolios are the principal source of
their ongoing financial security. More than 1.3 million investors have trusted
Nuveen to help them maintain the lifestyle they currently enjoy.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies whose aim is to provide consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to help ensure that they continue to meet our exacting
standards.
Whether your focus is long-term growth, dependable current income or
preservation of capital, Nuveen offers a wide array of equity and fixed-income
mutual funds, unit trusts, exchange-traded funds, individual managed account
services, and cash management products, including many that generate tax-free
income.
To find out more about how Nuveen investment products and services can help you
preserve your financial security, talk with your financial adviser, or call us
at (800) 257-8787 for more information, including a prospectus where applicable.
Please read that information carefully before you invest.
NUVEEN
John Nuveen &Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
(800) 257-8787
www.nuveen.com
FAN-3.10.97
