LOGO: NUVEEN INVESTMENTS
ANNUAL REPORT October 31, 2000
Municipal Closed-End Exchange-Traded Funds
Dependable, tax-free income to help you keep more of what you earn.
INVESTMENT QUALITY
NQM
SELECT QUALITY
NQS
QUALITY INCOME
NQU
PREMIER INCOME
NPF
INVEST WELL.
LOOK AHEAD.
LEAVE YOUR MARK.(SM)
photo: people playing checkers
photo: 2 people, playing piano & violin
<PAGE>
Credit Quality
HIGHLIGHTS As of October 31, 2000
PIE CHART:
Nuveen Investment Quality Municipal Fund, Inc. (NQM)
AAA/U.S. Guaranteed 67%
AA 18%
A 9%
BBB 5%
NR 1%
PIE CHART:
Nuveen Select Quality Municipal Fund, Inc. (NQS)
AAA/U.S. Guaranteed 74%
AA 9%
A 9%
BBB 7%
NR 1%
PIECHART:
Nuveen Quality Income Municipal Fund, Inc. (NQU)
AAA/U.S. Guaranteed 62%
AA 16%
A 8%
BBB 11%
NR 2%
Other 1%
PIE CHART:
Nuveen Premier Municipal Income Fund, Inc. (NPF)
AAA/U.S. Guaranteed 67%
AA 13%
A 9%
BBB 2%
NR 9%
CONTENTS
1 Dear Shareholder
3 Portfolio Managers' Comments
6 NQM Performance Overview
7 NQS Performance Overview
8 NQU Performance Overview
9 NPF Performance Overview
10 Shareholder Meeting Report
14 Report of Independent Auditors
15 Portfolio of Investments
42 Statement of Net Assets
43 Statement of Operations
44 Statement of Changes in Net Assets
46 Notes to Financial Statements
50 Financial Highlights
52 Build Your Wealth Automatically
53 Fund Information
--------------------------------------------------------------------------------
COMPOUND YOUR WEALTH - AUTOMATICALLY
All Nuveen Municipal Closed-End ETFs let you reinvest dividends and capital
gains directly into additional shares of your Fund. This is a great way to see
your investment grow through the power of compounding.
For more information about Dividend Reinvestment, see the last page of this
report or speak with your financial advisor.
--------------------------------------------------------------------------------
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "A WELL-BALANCED PORTFOLIO CAN HELP YOU REDUCE YOUR INVESTMENT
RISKS."
Dear
SHAREHOLDER
One of the primary goals of your Nuveen Fund is to provide you with attractive,
dependable tax-free income from a quality portfolio. I am pleased to report that
over the past fiscal year your Fund has continued to meet these objectives. I
urge you to read the Portfolio Managers' Comments and Performance Overview pages
included in this report, which provide more details about Fund results, how they
were achieved, and how the Funds are trying to position themselves for the
future.
The uncertain markets of this past reporting period also remind us of another
important reason for investing in Nuveen Funds. In times such as these, your
Nuveen Fund can help bring a measure of diversification to your overall
portfolio and serve as a useful counterbalance to other holdings. A
well-balanced portfolio can help you reduce your investment risks and provide
one of the keys to strong long-term performance.
Invest Well. Look Ahead. Leave Your Mark.
At Nuveen, we believe that investors should focus not only on investments that
can help them accumulate wealth, but also on the plans and services that can
help preserve that wealth and pass it along to future generations. This
long-term perspective is an integral part of our portfolio management
strategies, our insistence on quality, and our desire to provide investments
that can withstand the test of time.
1
<PAGE>
In establishing a program tailored to your needs, the sound ongoing advice and
disciplined focus provided by a trusted financial advisor can be an invaluable
resource, enabling you to make wise investment decisions and build a program
that can result in a lasting legacy.
For more than a century, Nuveen has offered quality investments to those who
recognize and embrace the need for building, preserving and managing wealth. All
of us at Nuveen are dedicated to working with you and your financial advisor to
provide the services, products, perspectives, and solutions that can help you
meet your personal and family financial goals, now and for years to come. We
thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 2000
Sidebar text: "IN ESTABLISHING A PROGRAM TAILORED TO YOUR NEEDS, THE SOUND
ONGOING ADVICE AND DISCIPLINED FOCUS PROVIDED BY A TRUSTED FINANCIAL ADVISOR CAN
BE AN INVALUABLE RESOURCE."
2
<PAGE>
Nuveen National Closed-End Exchange-Traded Funds (NQM, NQS, NQU, NPF)
Portfolio Managers'
COMMENTS
Portfolio managers Tom Futrell, Rick Huber, Bill Fitzgerald, and Steve Peterson
discuss the economic environment, key investment strategies, and the performance
of these Nuveen National Closed-End Municipal Funds. Tom, Bill, and Steve have
managed NQM, NQU, and NPF, respectively, since the inceptions of these Funds in
the early 1990s, and Rick assumed portfolio management responsibility for NQS in
1998.
WHAT MAJOR FACTORS AFFECTED THE U.S. ECONOMY AND THE MUNICIPAL MARKET OVER THE
PAST FISCAL YEAR?
The major news affecting the fixed-income markets over the past fiscal year has
been the Federal Reserve's tightening policy. In an effort to keep inflation in
check, the Fed continued to raise interest rates through May 2000, eventually
bringing the federal funds target rate to 6.50%, the highest level in almost a
decade. The Fed's policy has been to try to slow economic growth without causing
a recession.
Some recent evidence has suggested that the Fed effort may be having an impact.
While the U.S. economic expansion has reached a record tenth year, several
indicators point to slowing growth. As a result, the Fed now seems to have put
additional rate increases on hold, with some anticipating that the current
tightening cycle may have reached its end.
Although the Fed rate hikes and hints of an economic slowdown have affected the
municipal bond market, several supply and demand factors helped to prevent a
major increase in rates or drop in value. New issue supply of municipal bonds
during the first 10 months of 2000 totaled $154 billion nationwide, down 17.5%
from 1999 levels. At this rate, the supply of municipal bonds could finish 2000
at its lowest level since 1995.The generally favorable economic conditions in
many cities and states have enabled many issuers to use pay-as-you-go funding
for necessary projects, holding the supply of new bonds in check. At the same
time, demand from individual investors looking for diversification and income
has remained strong. As a result, current municipal bond prices and yields are
comparable to those of a year ago.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST YEAR?
For the fiscal year ended October 31, 2000, these Nuveen National Municipal
Closed-End Funds produced total returns on net asset value (NAV) as shown in the
accompanying table. The annual returns for the Lehman Brothers Municipal Bond
Index1 and the Funds' Lipper Peer Group2 are also presented.
Total Return Lehman Lipper
Market Yield on NAV Total Return1 Average2
--------------------------------------------------------------------------------
1 Year 1 Year 1 Year
Taxable- Ended Ended Ended
10/31/00 Equivalent3 10/31/00 10/31/00 10/31/00
--------------------------------------------------------------------------------
NQM 6.66% 9.65% 11.38% 8.51% 9.47%
--------------------------------------------------------------------------------
NQS 6.80% 9.86% 10.02% 8.51% 9.47%
--------------------------------------------------------------------------------
NQU 6.95% 10.07% 8.37% 8.51% 9.47%
--------------------------------------------------------------------------------
NPF 6.74% 9.77% 8.22% 8.51% 9.47%
--------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
The Funds' participation in the recovery of the municipal market is reflected in
the total returns on NAV listed above. They show dramatic improvement over the
results shown in the Funds' semiannual report last spring. As of October 31,
2000, long-term municipal yields were more than 99% of 30-year Treasury yields,
compared with the historical average of 86% for the period 1986-1999.
WERE THE FUNDS' DIVIDENDS AFFECTED BY THE MARKET ENVIRONMENT?
All four of these Funds use leverage as a way to potentially enhance the
dividends paid to common shareholders. The extent of this benefit, however, is
tied in part to the short-term rates that the Funds pay their MuniPreferred(R)
shareholders. When short-term rates rise, the Funds must pay out more income to
preferred shareholders, decreasing the amount of income available for common
shareholders. As the
1 The Funds' performances are compared with that of the Lehman Brothers
Municipal Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 The total returns of the Funds are compared with the average annualized
return of the 53 funds in the Lipper General Leveraged Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 31%.
3
<PAGE>
Federal Reserve raised short-term rates six times between June 1999 and May
2000, these increases had a corresponding impact on short-term municipal rates.
This, plus some bond calls in several of the Funds, led to decreases in the
common share dividends of each of these Funds over the past year. Despite these
dividend adjustments, all of the Funds continued to provide competitive market
yields, as shown in the accompanying tables.
Recently, investor demand for municipal bonds with shorter maturities has caused
the slope of the municipal yield curve to become very steep. The increased
demand for short-maturity bonds could have beneficial effects on the dividend
stability of these leveraged Funds going forward by holding short-term rates
down and reducing the amount the Funds pay their MuniPreferred shareholders.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
During late 1999 and the first half of 2000, uncertainties about inflation and
interest rates, coupled with investors' focus on equity market performance,
tended to dampen interest in most fixed-income products. The lack of demand put
pressure on the prices of many municipal bond investments, including these
Nuveen Funds. In recent months, as the bond market began to show signs of
recovery and the stock market continued to be volatile, we believe many
investors are again consid ering tax-free fixed-income alternatives.
However, investor interest in this opportunity continued to lag the rise in
value of the bonds held by the Funds. Consequently, all of these Funds continued
to trade at a discount (share price below NAV) over the past 12 months. With the
market prices of these Funds lower than the actual value of the bonds in their
portfolios, shareholders may want to consider taking advantage of this
opportunity to add to their holdings of their Nuveen Funds.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE FISCAL YEAR ENDED
OCTOBER 31, 2000?
Despite a slow start, the past fiscal year turned out to be generally positive
for the fixed-income markets, including municipal bonds. During this period, we
focused on strengthening the Funds' long-term dividend-paying capabilities,
enhancing call protection, and finding value in specific areas of the market,
including healthcare, housing, and tobacco and industrial development bonds.
For example, while the healthcare industry continued to face challenging times,
we believed that there were selected areas of opportunity in this sector as
hospitals became more efficient in managing revenue streams and improving cost
structure and operating incomes. We took advantage of this investment
opportunity to make purchases of healthcare bonds that we believed held the
potential to add value for our shareholders. In NQM, we invested in bonds issued
by the Minnesota Agricultural and Economic Development Board for Fairview Health
Services. Since our purchase this spring, these bonds have performed well for
the Fund. NPF also purchased a number of BBB-rated hospitals bonds over the past
year that have helped increase Fund income.
Tobacco bonds, which are secured by payments under the $250 billion master
settlement agreement reached between four major tobacco companies and 46 states
in 1998, were another area of the market that we believed offered value. During
the past year, NQU purchased bonds issued by the Nassau County (New York)
Tobacco Settlement Corporation. As of October 31, 2000, these bonds accounted
for 2% of the Fund's assets. NQM also invested in tobacco bonds issued for
Alaska by the Northern Tobacco Securitization Corporation. Since their purchase,
both of these issues have provided attractive yields as well as good
performance.
4
<PAGE>
From a regional perspective, NQS was an active buyer in the Midwest, while
selling bonds from California and Florida at attractive prices. In NQU, we
concentrated heavily on bonds issued by New York and Illinois.
In other management activity over the past fiscal year, we took advantage of
bond calls in NQS to continue restructuring the Fund by purchasing attractively
priced replacement bonds that provided good levels of income, quality,
diversification, and price appreciation potential. Instead of simply replacing
the called bonds with new long-term bonds, we chose to ladder the portfolio
across the yield curve to spread out future call exposure.
All four Funds continued to offer excellent credit quality, with between 78% and
85% of their portfolios invested in bonds rated AAA/U.S. guaranteed and AA as of
October 31, 2000. The Funds also had allocations of BBB/non-rated bonds that
ranged from 6% to 13%. These lower-rated bonds generally provided higher yields.
Over the past fiscal year, NQM, NQS, and NQU saw their allocations of U.S.
guaranteed bonds drop by 6% to 18%. Virtually all of these bonds were
pre-refunded and were either called as expected or sold just prior to their call
dates. We used this opportunity to enhance these Funds' diversification by
reinvesting the proceeds across a variety of market sectors. In NQM, most of the
proceeds were used to purchase general obligation bonds and transportation
bonds, specifically those issued for the Atlanta airport, the Port of Seattle,
the Port Authority of New York and New Jersey, and the Denver International
Airport. NQS added to its holdings in limited tax obligation bonds and
single-family housing credits.
WHAT IS YOUR OUTLOOK FOR THESE NUVEEN NATIONAL FUNDS?
In general, our outlook for the fixed-income markets over the next 12 months is
positive. Current projections call for continued strong demand for municipal
bonds, while new municipal issuance nationwide in 2001 is expected to stay under
$200 billion. These supply-and-demand dynamics should continue to provide
support for the municipal market and municipal bond prices.
Looking specifically at these Nuveen Funds, NQM, which was established in June
1990, underwent a number of calls in 2000 and now once again offers excellent
levels of call protection, with less than 7% of its portfolio subject to calls
between now and the end of 2002. In 2001, NQS, NQU, and NPF will reach a period
when the potential for bond calls normally increases. In 2001 and 2002, calls
could affect as much as 25-40% of these three Funds' portfolios, depending upon
market interest rates at the time.
While we cannot control the direction of interest rates, we continue to work to
reduce the Funds' call exposure and to actively manage the Funds to mitigate the
longer-term effects of the bond call process. We plan to proactively manage
through the upcoming period using strategies such as selling bonds with short
calls as we find appropriate replacements in either the primary or secondary
markets. In this way, we can capture the premium prices of the short-call bonds
and still remain fully invested.
In addition to bond calls, we plan to continue to focus on strengthening the
Funds' dividend-payment capabilities, taking advantage of the wider credit
spreads currently available in the marketplace. The high credit quality of these
Funds gives us room to increase our allocations of lower-rated issues with the
potential to enhance current portfolio yields and future capital appreciation.
The anticipated portfolio turnover in NQS, NQU, and NPF due to bond calls also
should provide us with opportunities to enhance their structure. As
value-oriented investors, we will also continue to look for areas of the market
that can add value for our shareholders, particularly healthcare, industrial
development bonds, and transportation. We believe these Nuveen Funds will
continue to serve as a dependable source of tax-free income and portfolio
diversification, two essential elements of a comprehensive investment strategy.
5
<PAGE>
Nuveen Investment Quality Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NQM
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 6/90
--------------------------------------------------
Share Price $12 7/8
--------------------------------------------------
Net Asset Value $14.67
--------------------------------------------------
Market Yield 6.66%
--------------------------------------------------
Taxable-Equivalent Yield1 9.65%
--------------------------------------------------
Fund Net Assets ($000) $825,320
--------------------------------------------------
Average Effective Maturity (Years) 21.45
--------------------------------------------------
Leverage-Adjusted Duration 13.46
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
On Share Price On NAV
--------------------------------------------------
1-Year 3.70% 11.38%
--------------------------------------------------
5-Year 3.41% 5.22%
--------------------------------------------------
10-Year 6.08% 7.69%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Transportation 14%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Tax Obligation/General 14%
--------------------------------------------------
U.S.Guaranteed 11%
--------------------------------------------------
Water and Sewer 10%
--------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share2
11/99 0.08
12/99 0.077
1/00 0.077
2/00 0.077
3/00 0.0745
4/00 0.0745
5/00 0.0745
6/00 0.0715
7/00 0.0715
8/00 0.0715
9/00 0.0715
10/00 0.0715
LINE CHART:
Share Price Performance
11/5/99 13.5
13
12.94
12.75
12.38
11.5
11.88
11.69
12.25
12.13
12.13
12.75
13.06
13.06
12.69
12.75
12.56
12.19
11.88
12.25
12.75
12.81
12.5
12.31
12.44
12.13
11.75
11.88
12.19
12.5
12.19
12.25
12.31
12.63
12.81
12.94
12.88
12.94
12.94
12.94
13.06
13.13
13.25
13.5
13.25
13.25
13.06
12.88
12.63
12.56
10/31/00 12.75
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 1999 of $0.0038 per share.
6
<PAGE>
Nuveen Select Quality Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NQS
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 3/91
--------------------------------------------------
Share Price $13 1/16
--------------------------------------------------
Net Asset Value $14.48
--------------------------------------------------
Market Yield 6.80%
--------------------------------------------------
Taxable-Equivalent Yield1 9.86%
--------------------------------------------------
Fund Net Assets ($000) $769,683
--------------------------------------------------
Average Effective Maturity (Years) 19.43
--------------------------------------------------
Leverage-Adjusted Duration 10.35
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
On Share Price On NAV
--------------------------------------------------
1-Year 6.85% 10.02%
--------------------------------------------------
5-Year 4.22% 5.52%
--------------------------------------------------
Since Inception 5.44% 7.26%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S. Guaranteed 19%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
Housing Single Family 12%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share2
11/99 0.0795
12/99 0.0795
1/00 0.0795
2/00 0.0795
3/00 0.077
4/00 0.077
5/00 0.077
6/00 0.074
7/00 0.074
8/00 0.074
9/00 0.074
10/00 0.074
LINE CHART:
Share Price Performance
11/5/99 13.19
13.19
13.13
13
12.5
11.75
12
12.06
12.5
12.5
12.56
13.19
13.44
13.25
13.25
13.19
12.81
12.13
12.38
12.5
13
12.94
12.81
12.44
12.5
12.5
12.13
12.25
12.69
12.69
12.5
12.56
12.44
12.94
13.13
13.06
13.13
13.06
13
13.13
13.31
13.31
13.63
13.75
13.56
13.44
13.31
13.06
12.75
12.56
10/31/00 13
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 1999 of $0.0060 per share.
7
<PAGE>
Nuveen Quality Income Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NQU
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 6/91
--------------------------------------------------
Share Price $13 1/8
--------------------------------------------------
Net Asset Value $14.53
--------------------------------------------------
Market Yield 6.95%
--------------------------------------------------
Taxable-Equivalent Yield1 10.07%
--------------------------------------------------
Fund Net Assets ($000) $1,239,829
--------------------------------------------------
Average Effective Maturity (Years) 17.25
--------------------------------------------------
Leverage-Adjusted Duration 9.33
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
On Share Price On NAV
--------------------------------------------------
1-Year 0.73% 8.37%
--------------------------------------------------
5-Year 4.38% 5.56%
--------------------------------------------------
Since Inception 5.44% 7.30%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S. Guaranteed 29%
--------------------------------------------------
Transportation 13%
--------------------------------------------------
Tax Obligation/General 11%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Water and Sewer 8%
--------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share
11/99 0.0855
12/99 0.0825
1/00 0.0825
2/00 0.0825
3/00 0.08
4/00 0.08
5/00 0.08
6/00 0.076
7/00 0.076
8/00 0.076
9/00 0.076
10/00 0.076
LINE CHART:
Share Price Performance
11/5/99 14
13.81
13.88
13.56
12.75
12.38
12.38
12.19
12.81
12.69
12.56
13.19
13.63
13.5
13.31
13.25
13.13
12.38
12.38
12.75
13.06
13.69
13.25
12.75
12.75
12.88
12.56
12.81
13.06
13.19
12.88
12.75
12.75
13.25
13.38
13.44
13.5
13.5
13.13
13.38
13.5
13.38
13.63
13.81
13.63
13.56
13.44
13.38
13.25
12.81
10/31/00 13.19
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
8
<PAGE>
Nuveen Premier Municipal Income Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NPF
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 12/91
--------------------------------------------------
Share Price $13 5/8
--------------------------------------------------
Net Asset Value $14.42
--------------------------------------------------
Market Yield 6.74%
--------------------------------------------------
Taxable-Equivalent Yield1 9.77%
--------------------------------------------------
Fund Net Assets ($000) $454,103
--------------------------------------------------
Average Effective Maturity (Years) 14.32
--------------------------------------------------
Leverage-Adjusted Duration 11.28
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
On Share Price On NAV
--------------------------------------------------
1-Year 9.71% 8.22%
--------------------------------------------------
5-Year 5.36% 5.56%
--------------------------------------------------
Since Inception 5.72% 7.13%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S. Guaranteed 30%
--------------------------------------------------
Housing Multifamily 15%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Tax Obligation/General 11%
--------------------------------------------------
Education and Civic Organizations 7%
--------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share
11/99 0.0805
12/99 0.0805
1/00 0.0805
2/00 0.0805
3/00 0.0805
4/00 0.0805
5/00 0.0805
6/00 0.0765
7/00 0.0765
8/00 0.0765
9/00 0.0765
10/00 0.0765
LINE CHART:
Share Price Performance
11/5/99 14.25
13.94
13.81
13.56
13.75
12.38
12.75
12.56
13
13.38
13.5
13.63
14.06
14
13.81
13.75
13.75
13.38
13.44
13.44
13.56
13.88
13.75
13.5
13.5
13.25
13
12.75
13
13.06
13
12.88
12.81
13.13
13.5
13.5
13.38
13.31
13.25
13.75
13.94
13.94
14.13
14
13.69
13.69
13.88
13.44
13.56
13.13
10/31/00 13.38
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
9
<PAGE>
<TABLE>
Shareholder
MEETING REPORT
The annual shareholder meeting was held on July 26, 2000, at the Northern Trust
Bank, Chicago, Illinois.
<CAPTION>
NQM
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 31,739,709 2,003 2,088 1,896 1,770 2,140
Withhold 382,651 23 3 -- 16 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,122,360 2,026 2,091 1,896 1,786 2,140
====================================================================================================================================
Lawrence H. Brown
For 31,736,713 2,003 2,088 1,896 1,786 2,140
Withhold 385,647 23 3 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,122,360 2,026 2,091 1,896 1,786 2,140
====================================================================================================================================
Anne E. Impellizzeri
For 31,710,771 2,003 2,088 1,896 1,770 2,140
Withhold 411,589 23 3 -- 16 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,122,360 2,026 2,091 1,896 1,786 2,140
====================================================================================================================================
Peter R. Sawers
For 31,742,456 2,003 2,088 1,896 1,786 2,140
Withhold 379,904 23 3 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,122,360 2,026 2,091 1,896 1,786 2,140
====================================================================================================================================
Judith M. Stockdale
For 31,724,278 2,003 2,088 1,896 1,780 2,140
Withhold 398,082 23 3 -- 6 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,122,360 2,026 2,091 1,896 1,786 2,140
====================================================================================================================================
William J. Schneider
For -- 2,003 2,088 1,896 1,786 2,140
Withhold -- 23 3 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,026 2,091 1,896 1,786 2,140
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,003 2,088 1,896 1,786 2,140
Withhold -- 23 3 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,026 2,091 1,896 1,786 2,140
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 31,703,008 2,026 2,089 1,896 1,786 2,110
Against 148,341 -- 2 -- -- --
Abstain 271,011 -- -- -- -- 30
------------------------------------------------------------------------------------------------------------------------------------
Total 32,122,360 2,026 2,091 1,896 1,786 2,140
====================================================================================================================================
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
NQS
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 30,613,090 1,795 1,907 2,409 1,510 2,574
Withhold 420,329 20 -- 6 2 --
------------------------------------------------------------------------------------------------------------------------------------
Total 31,033,419 1,815 1,907 2,415 1,512 2,574
====================================================================================================================================
Lawrence H. Brown
For 30,616,968 1,795 1,907 2,409 1,510 2,574
Withhold 416,451 20 -- 6 2 --
------------------------------------------------------------------------------------------------------------------------------------
Total 31,033,419 1,815 1,907 2,415 1,512 2,574
====================================================================================================================================
Anne E. Impellizzeri
For 30,590,789 1,795 1,907 2,409 1,510 2,574
Withhold 442,630 20 -- 6 2 --
------------------------------------------------------------------------------------------------------------------------------------
Total 31,033,419 1,815 1,907 2,415 1,512 2,574
====================================================================================================================================
Peter R. Sawers
For 30,603,434 1,795 1,907 2,409 1,510 2,570
Withhold 429,985 20 -- 6 2 4
------------------------------------------------------------------------------------------------------------------------------------
Total 31,033,419 1,815 1,907 2,415 1,512 2,574
====================================================================================================================================
Judith M. Stockdale
For 30,599,263 1,795 1,907 2,409 1,510 2,570
Withhold 434,156 20 -- 6 2 4
------------------------------------------------------------------------------------------------------------------------------------
Total 31,033,419 1,815 1,907 2,415 1,512 2,574
====================================================================================================================================
William J. Schneider
For -- 1,795 1,907 2,409 1,510 2,574
Withhold -- 20 -- 6 2 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,815 1,907 2,415 1,512 2,574
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,795 1,907 2,409 1,510 2,574
Withhold -- 20 -- 6 2 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,815 1,907 2,415 1,512 2,574
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 30,618,473 1,803 1,907 2,415 1,510 2,574
Against 159,504 -- -- -- -- --
Abstain 255,442 12 -- -- 2 --
------------------------------------------------------------------------------------------------------------------------------------
Total 31,033,419 1,815 1,907 2,415 1,512 2,574
====================================================================================================================================
</TABLE>
11
<PAGE>
<TABLE>
Shareholder MEETING REPORT (continued)
The annual shareholder meeting was held on July 26, 2000, at the
Northern Trust Bank, Chicago, Illinois.
<CAPTION>
NQU
------------------------------------------------------------------------------------------------------------------------------------
Approval of the Directors was reached as follows:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-W2 Series-TH Series-F
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 48,570,296 2,749 2,648 2,447 1,784 3,318 2,576
Withhold 726,510 1 6 -- 20 29 9
------------------------------------------------------------------------------------------------------------------------------------
Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585
====================================================================================================================================
Lawrence H. Brown
For 48,562,773 2,749 2,648 2,447 1,784 3,317 2,576
Withhold 734,033 1 6 -- 20 30 9
------------------------------------------------------------------------------------------------------------------------------------
Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585
====================================================================================================================================
Anne E. Impellizzeri
For 48,530,141 2,749 2,648 2,447 1,784 3,318 2,576
Withhold 766,665 1 6 -- 20 29 9
------------------------------------------------------------------------------------------------------------------------------------
Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585
====================================================================================================================================
Peter R. Sawers
For 48,565,742 2,749 2,648 2,447 1,784 3,317 2,576
Withhold 731,064 1 6 -- 20 30 9
------------------------------------------------------------------------------------------------------------------------------------
Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585
====================================================================================================================================
Judith M. Stockdale
For 48,546,514 2,749 2,648 2,446 1,784 3,314 2,568
Withhold 750,292 1 6 1 20 33 17
------------------------------------------------------------------------------------------------------------------------------------
Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585
====================================================================================================================================
William J. Schneider
For -- 2,749 2,648 2,447 1,784 3,318 2,576
Withhold -- 1 6 -- 20 29 9
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,750 2,654 2,447 1,804 3,347 2,585
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,749 2,648 2,447 1,784 3,318 2,576
Withhold -- 1 6 -- 20 29 9
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,750 2,654 2,447 1,804 3,347 2,585
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 48,680,223 2,747 2,631 2,447 1,784 3,314 2,580
Against 174,374 2 -- -- -- 4 --
Abstain 442,209 1 23 -- 20 29 5
------------------------------------------------------------------------------------------------------------------------------------
Total 49,296,806 2,750 2,654 2,447 1,804 3,347 2,585
====================================================================================================================================
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
NPF
------------------------------------------------------------------------------------------------------------------------------------
Approval of the Directors was reached as follows:
Preferred Preferred Preferred
Common Shares Shares Shares
Shares Series-M Series-T Series-TH
====================================================================================================================================
<S> <C> <C> <C> <C>
Robert P. Bremner
For 17,842,160 990 2,520 2,035
Withhold 415,270 -- 41 7
------------------------------------------------------------------------------------------------------------------------------------
Total 18,257,430 990 2,561 2,042
====================================================================================================================================
Lawrence H. Brown
For 17,837,992 990 2,520 2,035
Withhold 419,438 -- 41 7
------------------------------------------------------------------------------------------------------------------------------------
Total 18,257,430 990 2,561 2,042
====================================================================================================================================
Anne E. Impellizzeri
For 17,827,823 990 2,520 2,035
Withhold 429,607 -- 41 7
------------------------------------------------------------------------------------------------------------------------------------
Total 18,257,430 990 2,561 2,042
====================================================================================================================================
Peter R. Sawers
For 17,837,894 990 2,520 2,035
Withhold 419,536 -- 41 7
------------------------------------------------------------------------------------------------------------------------------------
Total 18,257,430 990 2,561 2,042
====================================================================================================================================
Judith M. Stockdale
For 17,836,115 990 2,520 2,035
Withhold 421,315 -- 41 7
------------------------------------------------------------------------------------------------------------------------------------
Total 18,257,430 990 2,561 2,042
====================================================================================================================================
William J. Schneider
For -- 990 2,520 2,035
Withhold -- -- 41 7
------------------------------------------------------------------------------------------------------------------------------------
Total -- 990 2,561 2,042
====================================================================================================================================
Timothy R. Schwertfeger
For -- 990 2,520 2,035
Withhold -- -- 41 7
------------------------------------------------------------------------------------------------------------------------------------
Total -- 990 2,561 2,042
====================================================================================================================================
Ratification of auditors was reached as follows:
For 17,897,865 989 2,502 2,039
Against 77,432 -- -- --
Abstain 282,133 1 59 3
------------------------------------------------------------------------------------------------------------------------------------
Total 18,257,430 990 2,561 2,042
====================================================================================================================================
</TABLE>
13
<PAGE>
Report of
INDEPENDENT AUDITORS
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,
2000, and the related statements of operations, changes in net assets and the
financial highlights for the years 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 auditing standards generally accepted
in the United States. 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, 2000, 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, 2000, and the results of their
operations, changes in their net assets and financial highlights for the years
indicated therein in conformity with accounting principles generally accepted in
the United States.
/s/ Ernst & Young LLP
Ernst & Young LLP
Chicago, Illinois
December 12, 2000
14
<PAGE>
<TABLE>
Nuveen Investment Quality Municipal Fund, Inc. (NQM)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 2.7%
$ 22,225 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA $ 22,282,563
Warrants, Series 1999-A, 5.750%, 2/01/38
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 3.0%
14,850 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 6/04 at 102 Aa2 14,987,363
1994 Series A, 5.400%, 12/01/13
10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100 Aa3 9,927,000
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.6%
5,255 Arkansas Development Finance Authority, Home Mortgage Revenue 7/08 at 101 1/2 AAA 5,095,668
Bonds, 1998 Series A, 5.150%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.8%
9,245 Alameda County Public Facilities Corporation, California, Certificates 9/06 at 102 AAA 9,770,948
of Participation (1991 Financing Project), 6.000%, 9/01/21
22,400 California Health Facilities Financing Authority, Kaiser Permanente, 5/03 at 102 A 21,592,928
Revenue Bonds, 1993 Series C, 5.600%, 5/01/33
5,925 State Public Works Board of the State of California, Lease Revenue 6/03 at 102 Aa2 5,949,648
Refunding Bonds (The Regents of the University of California),
1993 Series A (Various University of California Projects),
5.500%, 6/01/21
9,740 Huntington Park Redevelopment Agency, Single Family Residential No Opt. Call AAA 13,050,821
Mortgage Revenue Refunding Bonds, 1986 Series A,
8.000%, 12/01/19
4,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma 12/03 at 102 N/R 3,607,200
Linda University Medical Center Project), Series 1993-A,
6.500%, 12/01/18
5,000 Department of Water and Power of the City of Los Angeles, 5/03 at 102 AAA 4,297,750
California, Water Works Refunding Revenue Bonds, Second
Issue of 1993, 4.500%, 5/15/23
1,030 Natomas Unified School District, County of Sacramento, No Opt. Call AAA 1,123,483
California, 1999 Refunding General Obligation Bonds,
5.950%, 9/01/21
15,770 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 20,167,307
County, California, 1995 Revenue Refunding Bonds (Ontario
Redevelopment Project No.1), 7.400%, 8/01/25
13,145 City of Perris, California, Single Family Mortgage Revenue No Opt. Call AAA 17,066,285
Bonds (GNMA Mortgage-Backed Securities), 1988 Series B,
8.200%, 9/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.9%
4,940 Castle Pines Metropolitan District, Douglas County, Colorado, 12/00 at 102 AAA 5,051,595
General Obligation Refunding and Improvement Bonds,
Series 1990, 7.625%, 12/01/15 (Pre-refunded to 12/01/00)
1,595 Colorado Housing Finance Authority, Single Family Program Senior 5/06 at 105 Aa2 1,685,437
Bonds, 1996 Series B, 7.450%, 11/01/27
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991A:
820 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Aaa 849,553
(Pre-refunded to 11/15/01)
2,265 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 2,327,514
28,875 City and County of Denver, Colorado, Airport System Revenue 11/08 at 101 AAA 26,249,974
Bonds, Series 1998B, 5.000%, 11/15/25
12,450 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 12,823,251
Refunding Bonds, Series 2000A, 6.000%, 11/15/19
(Alternative Minimum Tax)
6,200 City and County of Denver, Colorado, Special Facilities Airport 10/02 at 102 Baa3 6,249,476
Revenue Bonds (United Air Lines Project), Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax)
7,865 Colorado Springs School District No. 11, El Paso County, Colorado, 12/07 at 125 AA- 9,529,549
General Obligation Improvement Bonds, Series 1996,
7.125%, 12/01/21
15
<PAGE>
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONNECTICUT - 2.7%
$ 6,770 State of Connecticut, General Obligation Bonds, 2000 Series B, 6/10 at 100 AA $ 7,156,702
5.875%, 6/15/16
9,070 Connecticut Housing Finance Authority, Housing Mortgage 11/07 at 102 AA 9,057,302
Finance Program Bonds, 1997 Series C, 5.850%, 11/15/28
(Alternative Minimum Tax)
6,280 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AA 6,427,580
Program Bonds, 1996 Series D, Subseries D-2, 6.200%, 11/15/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.7%
2,500 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 2,674,300
6.000%, 6/01/16
4,600 District of Columbia Housing Finance Agency, Collateralized 12/00 at 102 AAA 4,698,486
Single Family Mortgage Revenue Bonds, Series 1990A,
8.100%, 12/01/23 (Alternative Minimum Tax)
23,645 District of Columbia Water and Sewer Authority, Public Utility 4/09 at 160 AAA 23,567,444
Revenue Bonds, Series 1998, 5.500%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.2%
4,000 Hillsborough County Port District, Florida (Tampa Port Authority), 12/00 at 102 Baa1*** 4,092,040
Revenue Bonds, Series 1990, 8.250%, 6/01/09
(Pre-refunded to 12/01/00)
7,500 City of Miami Beach Health Facilities Authority, Hospital 11/08 at 101 BBB- 5,830,800
Revenue Bonds, Series 1998 (Mount Sinai Medical Center
of Florida Project), 5.375%, 11/15/28
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.6%
17,500 City of Atlanta, Georgia, Airport General Revenue and Refunding 1/10 at 101 AAA 17,505,775
Bonds, Series 2000A, 5.600%, 1/01/30
2,250 Municipal Electric Authority of Georgia, Project One Special No Opt. Call A 2,504,295
Obligation Bonds, Fourth Crossover Series, 6.500%, 1/01/20
10,000 Development Authority of Monroe County (Georgia), Pollution 4/01 at 101 A+ 10,109,500
Control Revenue Bonds (Georgia Power Company Plant Scherer
Project), Second Series 1994, 6.750%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 6.0%
4,705 Village of Bourbonnais, Illinois, Industrial Project Revenue Bonds 3/10 at 101 AA 4,913,902
(Olivet Nazarene University Project), Series 2000,
6.250%, 3/01/20
7,500 Community College District No. 508, Cook County, Illinois, No Opt. Call AAA 9,081,300
Certificates of Participation, 8.750%, 1/01/07
2,110 Illinois Development Finance Authority, Local Government 1/11 at 100 Aaa 2,212,082
Program Revenue Bonds, Series 2000 (Elmhurst Community
Unit School District Number 205 Project), 6.000%, 1/01/19
11,825 School District Number 46, Kane, Cook and DuPage Counties, No Opt. Call Aaa 14,590,631
Illinois (Elgin School District Number U-46), School Bonds,
Series 1997, 7.800%, 1/01/12
5,900 Community Unit School District Number 7, Madison County, No Opt. Call AAA 6,340,730
Illinois, School Building Bonds, Series 1994, 5.850%, 2/01/13
3,585 City of Pekin, Illinois, Multifamily Housing Refunding Revenue 5/03 at 103 AAA 3,697,999
Bonds, Series 1992A (FHA-Insured Mortgage Loan -
Section 8 Assisted Project), 6.875%, 5/01/22
1,140 City of Peoria, Peoria County, City of Pekin, Tazewell and Peoria 2/01 at 103 AA 1,171,806
Counties and City of Waukegan, Lake County (Illinois) Jointly,
GNMA Collateralized Mortgage Revenue Bonds, Series 1990,
7.875%, 8/01/22 (Alternative Minimum Tax)
5,390 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 6,687,265
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/07
860 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 1,066,985
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1992B, 9.000%, 6/01/07
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.1%
5,530 Allen County Jail Building Corporation, Indiana, First Mortgage 4/11 at 101 Aa3 5,629,319
Bonds, Series 2000, 5.750%, 4/01/20
6,000 Hospital Authority of Delaware County (Indiana), Hospital 8/01 at 102 AAA 6,214,980
Revenue Bonds, Series 1991 (Ball Memorial Hospital),
6.625%, 8/01/16 (Pre-refunded to 8/01/01)
5,065 Metropolitan School District of Steuben County K-5 Building 7/10 at 101 AAA 5,332,736
Corporation, First Mortgage Bonds, Indiana, Series 2000 Bonds,
6.125%, 1/15/21
16
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
IOWA - 0.6%
$ 5,290 Iowa Finance Authority, Abbey Healthcare Mortgage Revenue 11/10 at 103 1/2 Aaa $ 5,309,467
Bonds, Series 2000A, GNMA Guaranteed, 6.200%, 5/20/42
(WI, settling 12/22/00)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.3%
4,070 Sedgwick County, Kansas and Shawnee County, Kansas, Single No Opt. Call Aaa 4,659,702
Family Mortgage Revenue Bonds (Mortgaged-Backed
Securities Program), 1997 Series A-1, 6.950%, 6/01/29
(Alternative Minimum Tax)
4,640 City of Topeka, Kansas, Variable Rate Demand Industrial Revenue 8/16 at 100 AAA 6,215,373
Refunding Bonds, Series 1988 (Sunwest Hotel Corporation
Project), 9.500%, 10/01/16 (Alternative Minimum Tax)
(Pre-refunded to 8/15/16)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.2%
2,000 Jefferson County, Kentucky, Health Facilities Revenue 1/07 at 102 AAA 2,003,060
Refunding Bonds (Jewiah Hospital Healthcare Services Inc.),
Series 1996, 5.700%, 1/01/21
12,500 County of Jefferson, Kentucky, Pollution Control Revenue Bonds, 4/05 at 102 AAA 12,671,375
1995 Series A (Louisville Gas and Electric Company Project),
5.900%, 4/15/23
3,700 County of Warren, Kentucky, Hospital Revenue Bonds, 4/08 at 101 AAA 3,196,689
Series 1998 (Bowling Green-Warren County Community
Hospital Corporation), 4.875%, 4/01/27
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.2%
4,095 East Baton Rouge Mortgage Finance Authority, Single Family 10/07 at 102 Aaa 4,102,617
Mortgage Revenue Refunding Bonds (GNMA and FNMA
Mortgage-Backed Securities Program), Series 1997D,
5.900%, 10/01/30 (Alternative Minimum Tax)
3,200 Home Mortgage Authority, Parish of Jefferson, Louisiana, 12/09 at 103 Aaa 3,556,672
Single Family Mortgage Revenue Refunding Bonds,
Series 2000A-2, 7.500%, 12/01/30 (Alternative Minimum Tax)
3,320 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 3,608,143
Revenue Bonds (Comm-Care Corporation Project),
Series 1994, 11.000%, 2/01/04
11,545 Orleans Parish School Board, Public School Refunding Bonds, No Opt. Call AAA 14,883,352
Series 1987, 9.000%, 2/01/09
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.4%
2,985 Maine State Housing Authority, Mortgage Purchase Bonds, 10/04 at 102 AA 3,101,415
1994 Series C-2, 6.875%, 11/15/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.9%
12,500 The Commonwealth of Massachusetts, General Obligation 10/10 at 100 Aa2 12,827,000
Bonds, Consolidated Loan Series 2000C, 5.750%, 10/01/19
(WI, settling 11/02/00)
5,000 The Commonwealth of Massachusetts, General Obligation Bonds, 9/09 at 101 Aa2 5,248,050
Series C, Consolidated Loan of 1999, 5.875%, 9/01/17
5,375 Massachusetts Development Finance Agency, Assisted Living 12/09 at 102 N/R 5,403,326
Revenue Bonds (Prospect House Apartments), Series 1999,
7.000%, 12/01/31 (Alternative Minimum Tax)
5,160 Massachusetts Health and Educational Facilities Authority, 1/01 at 102 BBB 5,267,483
Revenue Bonds, Goddard Memorial Hospital Issue, Series B,
9.000%, 7/01/15
4,000 Massachusetts Water Resources Authority, General Revenue 3/03 at 100 AAA 3,728,960
Refunding Bonds, 1993 Series B, 5.000%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.4%
10,000 City of Detroit, Michigan, Water Supply System Revenue and No Opt. Call AAA 11,393,600
Revenue Refunding Bonds, Series 1993, 6.500%, 7/01/15
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.1%
5,000 The County Housing and Redevelopment Authorities of Dakota No Opt. Call AAA 6,738,200
and Washington and the City of Bloomington, Minnesota, Single
Family Residential Mortgage Revenue Bonds (Mortgage-Backed
Program), Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax)
3,355 City of Eden Prairie, Minnesota, Multifamily Housing Revenue 11/10 at 103 1/2 Aaa 3,490,542
Bonds, Series 2000 (GNMA Collateralized Mortgage Loan -
Lincoln Park Project), Series 2000A-1, 6.550%, 11/20/30
(WI, settling 11/17/00)
17
<PAGE>
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA (continued)
$ 2,860 City of Hopkins, Minnesota, Elderly Housing Revenue Refunding 3/04 at 102 AAA $ 3,073,699
Bonds (St. Therese Southwest, Inc. Project), Series 1994A,
6.500%, 3/01/19 (Pre-refunded to 3/01/04)
20,000 Minnesota Agricultural and Economic Development Board, 11/10 at 101 A 20,284,000
Health Care System Revenue Bonds, Series 2000A (Fairview
Health Services), 6.375%, 11/15/29
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.2%
1,305 Mississippi Housing Finance Corporation, Single Family Mortgage 4/01 at 101 AAA 1,319,890
Purchase Revenue Bonds, Series 1989 (GNMA Mortgage-Backed
Securities Program), 8.250%, 10/15/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.2%
8,075 The Industrial Development Authority of Kansas City, Missouri, 1/07 at 102 AAA 8,100,517
Multifamily Housing Revenue Bonds, Series 1997 (Royal Woods
Apartments Project), 5.600%, 1/01/30 (Alternative Minimum Tax)
(Mandatory put 1/01/10)
1,865 Missouri Housing Development Commission, Single Family 3/07 at 105 AAA 2,051,015
Mortgage Revenue Bonds (Homeownership Loan Program),
1997 Series A-2, 7.300%, 3/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.1%
3,300 Nebraska Higher Education Loan Program, Inc., Student Loan 3/04 at 102 AAA 3,388,869
Program Revenue Bonds, 1993 Series B, 5.875%, 6/01/14
(Alternative Minimum Tax)
13,330 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 13,680,312
Revenue Bonds, 1995 Series B, 6.450%, 3/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.7%
14,530 Director of the State of Nevada, Department of Business and 1/10 at 102 AAA 14,377,871
Industry, Las Vegas Monorail Project Revenue Bonds,
1st Tier Series 2000, 5.625%, 1/01/34
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 8.3%
7,770 Metropolitan Transportation Authority, New York, Commuter 7/07 at 101 AAA 7,507,918
Facilities Revenue Bonds, Series 1997C, 5.375%, 7/01/27
The City of New York, New York, General Obligation Bonds, Fiscal
1997 Series G:
95 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A*** 103,619
9,905 6.000%, 10/15/26 10/07 at 101 A 10,184,222
7,000 New York City Municipal Water Finance Authority, Water and 6/06 at 101 AAA 7,062,720
Sewer System Revenue Bonds, Fiscal 1996 Series B,
5.750%, 6/15/26
3,300 New York City Municipal Water Finance Authority, Water and 6/10 at 101 AA 3,630,924
Sewer System Revenue Bonds, Fiscal 2000 Series B,
6.500%, 6/15/31
5,000 New York City Transitional Finance Authority, Future Tax 5/10 at 101 AA 4,937,700
Secured Bonds, Fiscal 2000 Series C, 5.500%, 11/01/24
14,235 Dormitory Authority of the State of New York, City University No Opt. Call Baa1 15,151,307
System Consolidated Second General Resolution Revenue
Bonds, Series 1990D, 8.750%, 7/01/02
16,445 The Port Authority of New York and New Jersey, Special No Opt. Call AAA 19,359,054
Project Bonds, Series 6 (JFK International Air Terminal LLC
Project), 7.000%, 12/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.6%
2,795 Charlotte Mortgage Revenue Refunding Bonds (FHA-Insured 11/07 at 100 AAA 2,984,194
Mortgage - Double Oaks Apartments), 7.350%, 5/15/26
18,200 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102 AAA 18,648,630
Revenue Bonds, Refunding Series 1996B, 5.875%, 1/01/21
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.2%
2,000 City of Bismarck, North Dakota, Health Care Revenue Bonds, 7/08 at 102 AAA 1,761,980
Series 1998A (St. Alexius Medical Center), 5.000%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.0%
8,650 County of Cuyahoga, Ohio, Hospital Improvement Revenue 2/09 at 101 A- 8,495,425
Bonds, Series 1999 (The Metrohealth System Project),
6.150%, 2/15/29
18
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OREGON - 1.0%
$ 8,990 Northern Wasco County Peoples Utility District, Oregon, McNary 12/03 at 102 Aa1 $ 8,614,578
Dam Fishway Hydroelectric Project Revenue Bonds,
Series 1993 (Bonneville Power Administration), 5.200%, 12/01/24
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.8%
6,790 City of Philadelphia, Pennsylvania, Water and Wastewater 6/03 at 100 AAA 6,543,591
Revenue Bonds, Series 1993, 5.000%, 6/15/16
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.5%
4,765 Newport Housing Development Corporation, 1995 Multifamily 6/03 at 100 AAA 5,007,443
Mortgage Revenue Refunding Bonds (Broadway-West
Apartments - FHA-Insured Mortgage Section 8 Assisted
Project), Series A, 6.800%, 8/01/24
24,000 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 24,023,280
Hospital Financing Revenue Bonds, Lifespan Obligated
Group Issue, Series 1996, 5.750%, 5/15/23
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.7%
3,135 Austin Housing Finance Corporation (Texas), Multifamily 12/10 at 105 Aaa 3,516,216
Housing Revenue Bonds, Series 2000A (GNMA Collateralized
Mortgage Loan - Santa Maria Village Project), 7.375%, 6/20/35
(Alternative Minimum Tax)
1,875 The Cameron County Housing Finance Corporation, 3/01 at 103 AAA 1,932,544
GNMA Collateralized Mortgage Revenue Refunding Bonds,
1990 Series B, 7.850%, 3/01/24
18,710 Clear Creek Independent School District, Galveston and Harris 2/10 at 100 AAA 18,557,701
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 5.500%, 2/15/22
Dallas Housing Corporation, Refunding and Capital Program
Revenue Bonds (Section 8 Assisted Projects), Series 1990:
1,000 7.700%, 8/01/05 2/01 at 102 Baa2 1,020,870
2,000 7.850%, 8/01/13 2/01 at 102 Baa2 2,041,720
13,175 Harris County Hospital District, Texas, Refunding Revenue No Opt. Call AAA 14,971,915
Bonds, Series 1990, 7.400%, 2/15/10
2,256 Heart of Texas Housing Finance Corporation, Multifamily Housing 6/10 at 105 AAA 2,527,126
Revenue Bonds, Series 2000A (GNMA Collateralized
Mortgage Loan - Robinson Garden Project), 7.375%, 6/20/35
(Alternative Minimum Tax)
3,500 Richardson Hospital Authority, Texas, Hospital Revenue 12/08 at 101 BBB+ 2,817,920
Refunding and Improvement Bonds (Baylor/Richardson
Medical Center Project), Series 1998, 5.625%, 12/01/28
3,960 Economic Development Corporation, Stafford, Texas, Sales Tax 9/15 at 100 AAA 3,882,859
Revenue Bonds, Series 2000, 5.500%, 9/01/30
4,000 Texas Health Facilities Development Corporation, Hospital 11/07 at 102 AAA 3,879,320
Revenue Bonds (East Texas Medical Center), Series 1997C,
5.600%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.2%
2,000 City of Virginia Beach Development Authority, Multifamily 10/14 at 102 N/R 1,974,940
Housing Revenue Bonds (Residential Rental Hamptons
Project), Series 1999, 7.500%, 10/01/39
19
<PAGE>
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 200000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON - 8.1%
$ 17,075 Port of Seattle, Washington, Limited Tax - General Obligation 12/10 at 100 AA+ $ 16,928,497
Bonds, 2000 Series B, 5.750%, 12/01/25
(Alternative Minimum Tax)
16,750 Port of Seattle, Washington, Revenue Bonds, 8/10 at 100 AAA 16,653,185
Series 2000A, 5.625%, 2/01/30
11,320 State of Washington, General Obligation Bonds, Series 1994A, 10/03 at 100 AA+ 10,829,278
4.750%, 10/01/13
1,000 Washington Health Care Facilities Authority, Revenue Bonds, 12/09 at 101 AAA 957,400
Series 1999 (Providence Services), 5.500%, 12/01/26
16,060 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 16,261,553
No. 3 Refunding Revenue Bonds, Series 1993B,
5.600%, 7/01/15
4,500 Washington Public Power Supply System, Nuclear Project 7/03 at 102 Aa1 4,477,092
No. 3 Refunding Revenue Bonds, Series 1993C,
5.375%, 7/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 792,576 Total Investments (cost $797,300,725) - 100.0% 825,177,192
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.0% 142,989
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 825,320,181
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
</TABLE>
20
<PAGE>
<TABLE>
Nuveen Select Quality Municipal Fund, Inc. (NQS)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 2.0%
$ 2,900 The Water Works Board of the City of Arab (Alabama), Water 8/01 at 102 AAA $ 3,005,647
Revenue Bonds, Series 1991, 7.050%, 8/01/16
Jefferson County, Alabama, Sewer Revenue Capital Improvement
Warrants, Series 1999-A:
8,000 5.375%, 2/01/36 2/09 at 101 AAA 7,602,560
5,000 5.750%, 2/01/38 2/09 at 101 AAA 5,012,950
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0%
8,600 Alaska Energy Authority, Power Revenue Refunding Bonds, 7/09 at 101 AAA 7,896,262
Third Series (Bradley Lake Hydroelectric Project),
5.000%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.0%
2,045 Arkansas Development Finance Authority, Single Family 8/01 at 103 AA 2,122,669
Mortgage Revenue Refunding Bonds, 1991 Series A
(FHA-Insured or VA Guaranteed Mortgage Loans),
8.000%, 8/15/11
4,500 City of Little Rock, Arkansas, Hotel and Restaurant Gross No Opt. Call A 5,347,440
Receipts Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 0.4%
3,000 California Health Facilities Financing Authority, Kaiser 10/08 at 101 A 2,730,120
Permanente, Revenue Bonds, Series 1998B, 5.000%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.6%
11,000 Colorado Department of Transportation, Transportation Revenue 6/10 at 100 1/2 AAA 11,774,290
Anticipation Notes, Series 2000, 6.000%, 6/15/15
9,250 Colorado Health Facilities Authority, Revenue Bonds, 7/06 at 102 A 8,460,143
1994 Series A, Kaiser Permanente, Remarketed,
5.350%, 11/01/16
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992C:
2,560 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 Aaa 2,717,978
(Pre-refunded to 11/15/02)
9,590 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 10,009,467
5,305 City and County of Denver, Colorado, Airport System Revenue 11/01 at 102 Aaa 5,636,297
Bonds, Series 1991A, 8.750%, 11/15/23 (Alternative
Minimum Tax) (Pre-refunded to 11/15/01)
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991D:
1,040 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Aaa 1,094,746
(Pre-refunded to 11/15/01)
3,960 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 4,136,022
14,000 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 13,783,000
Refunding Bonds, Series 2000A, 5.625%, 11/15/23
(Alternative Minimum Tax)
605 Jefferson County, Colorado, Single Family Revenue Refunding 4/01 at 103 AAA 625,631
Bonds, Series 1991A, 8.875%, 10/01/13
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 3.2%
7,195 City of Bridgeport, Connecticut, General Obligation Bonds, 7/10 at 101 AAA 7,669,582
2000 Series A, 6.000%, 7/15/16
7,145 Connecticut Development Authority, Health Facility Refunding 8/01 at 103 N/R*** 7,651,652
Revenue Bonds, Alzheimers Resource Center of Connecticut,
Inc. Project, Series 1991A, 10.000%, 8/15/21
(Pre-refunded to 8/15/01)
9,785 Connecticut Development Authority, Health Facility Refunding 8/04 at 102 N/R 8,990,164
Revenue Bonds, Alzheimers Resource Center of Connecticut,
Inc. Project, Series 1994A, 7.250%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.8%
District of Columbia, Washington D.C., General Obligation Bonds,
Series 1998B:
5,000 6.000%, 6/01/19 No Opt. Call AAA 5,321,550
7,265 5.250%, 6/01/26 6/08 at 101 AAA 6,831,933
1,425 District of Columbia Housing Finance Agency, Collateralized 12/00 at 102 AAA 1,455,509
Single Family Mortgage Revenue Bonds, Series 1990A,
8.100%, 12/01/23 (Alternative Minimum Tax)
21
<PAGE>
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA - 1.1%
Lee County, Florida, Airport Revenue Bonds, Series 2000A:
$ 3,075 5.875%, 10/01/18 (Alternative Minimum Tax) 10/10 at 101 AAA $ 3,187,699
4,860 5.875%, 10/01/19 (Alternative Minimum Tax) 10/10 at 101 AAA 5,021,935
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.2%
16,000 Department of Budget and Finance of the State of Hawaii, 7/01 at 102 AAA 16,655,520
Special Purpose Revenue Bonds, Kapiolani Health Care
System Obligated Group (Pali Momi Medical Center Project),
Series 1991, 7.650%, 7/01/19 (Pre-refunded to 7/01/01)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.4%
5,000 City of Chicago (Illinois), General Obligation Bonds, Project 1/06 at 102 AAA 4,652,750
and Refunding Series 1995B, 5.125%, 1/01/25
5,865 City of Chicago (Illinois), General Obligation Bonds 7/10 at 101 AAA 6,399,888
(Neighborhoods Alive 21 Program), Series 2000A,
6.500%, 1/01/35
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues), Series 1997:
4,000 5.750%, 12/01/20 12/07 at 102 AAA 4,066,240
10,000 5.750%, 12/01/27 12/07 at 102 AAA 10,052,800
12,555 Chicago School Reform Board of Trustees of the Board of 12/07 at 102 AAA 11,822,290
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues),
Series 1997A, 5.250%, 12/01/27
30,000 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 6,918,300
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues),
Series 1998A, 0.000%, 12/01/25
Illinois Development Finance Authority, Multifamily Housing
Bonds, Series 1990 (Affordable Housing Preservation Foundation
Project), Subseries A (FHA-Insured Mortgage Loans - Lawless
Gardens Project):
775 7.650%, 7/01/07 1/02 at 105 AAA 824,817
6,780 7.650%, 12/31/31 1/02 at 105 AAA 7,226,192
1,585 Illinois Housing Development Authority, Multifamily Housing 7/01 at 102 A+ 1,633,343
Bonds, 1991 Series C, 7.400%, 7/01/23
The County of St. Clair, Illinois, General Obligation Bonds
(Alternate Revenue Source), Series 1999:
3,240 5.625%, 10/01/12 10/09 at 102 AAA 3,393,349
4,410 5.625%, 10/01/13 10/09 at 102 AAA 4,592,398
5,285 5.500%, 10/01/14 10/09 at 102 AAA 5,408,933
5,930 5.500%, 10/01/15 10/09 at 102 AAA 6,039,349
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.6%
8,640 Avon Community School Building Corporation, First Mortgage 7/04 at 101 AAA 8,655,120
Bonds, Series 1994 (Hendricks County), 5.500%, 1/01/16
4,955 Beacon Heights Housing Development Corporation, 6/01 at 100 AAA 5,002,370
1991 Multifamily Mortgage Revenue Refunding Bonds,
(FHA-Insured Mortgage - Section 8 Assisted Project),
Series A, 7.625%, 2/01/21
5,450 City of Indianapolis, Economic Development Revenue 7/06 at 102 BBB 5,207,639
Bonds (Willowbrook Apartments Project), Senior
Series 1996A, 6.500%, 7/01/26
1,050 Michigan City Housing Development Corporation, 6/01 at 100 AAA 1,060,038
1991 Multifamily Mortgage Revenue Refunding Bonds
(FHA-Insured Mortgage - Section 8 Assisted Project),
Series A, 7.625%, 2/01/21
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.2%
8,800 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, 9/01 at 102 AAA 9,166,696
Series 1991B (Shawnee Mission Medical Center, Inc.
Project), 7.250%, 9/01/21 (Pre-refunded to 9/01/01)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4%
3,015 Lakeland Wesley Village, Inc., Mortgage Revenue Refunding 11/01 at 103 Aa 3,089,380
Bonds (Lakeland Wesley Village I Elderly Section 8 Assisted
Project/FHA-Insured Mortgage), Series 1991, 7.500%, 11/01/21
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.1%
810 Calcasieu Parish Public Trust Authority (Louisiana), Mortgage 6/01 at 103 A1 836,106
Revenue Refunding Bonds, 1991 Series A, 7.750%, 6/01/12
22
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MARYLAND - 1.0%
$ 7,500 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101 AA $ 7,894,725
Revenue Bonds, The Johns Hopkins University Issue,
Series 1999, 6.000%, 7/01/39
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.8%
7,375 Boston Housing Development Corporation, Mortgage Revenue 1/04 at 102 AAA 7,064,070
Refunding Bonds, Series 1994A (FHA-Insured Mortgage
Loans - Section 8 Assisted Projects), 5.500%, 7/01/24
4,250 Massachusetts Bay Transportation Authority, General 3/07 at 101 AA 3,828,655
Transportation System Bonds, 1998 Series B,
5.000%, 3/01/28
2,000 Massachusetts Educational Financing Authority, Education 12/10 at 101 AAA 2,073,000
Loan Revenue and Refunding Bonds, Issue G, Series 2000A,
5.700%, 12/01/11 (Alternative Minimum Tax)
2,000 Massachusetts Health and Educational Facilities Authority, 6/01 at 102 A3*** 2,084,000
Revenue Bonds, Lowell General Hospital Issue, Series A,
8.400%, 6/01/11 (Pre-refunded to 6/01/01)
6,300 Somerville Housing Authority (Massachusetts), Mortgage 11/00 at 102 AAA 6,432,804
Revenue Bonds, Series 1990 (GNMA Collateralized - Clarendon
Hill Towers Project), 7.950%, 11/20/30
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7%
10,000 City of Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101 AAA 10,126,600
Bonds, Series 1999-A, 5.750%, 7/01/26
3,625 Fowlerville Community Schools, Counties of Livingston, 5/07 at 100 AAA 3,821,475
Ingham, and Shiawassee, State of Michigan, 1996 School
Building and Site Bonds, 5.600%, 5/01/26 (Pre-refunded
to 5/01/07)
7,890 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 8,234,399
Bonds (The Detroit Medical Center Obligated Group),
Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01)
6,525 Michigan State Hospital Finance Authority, Revenue Bonds 11/00 at 100 AAA 6,601,669
(Ascension Health Credit Group), Series 1999A, 5.750%, 11/15/16
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6%
3,465 Chisago County, Southcentral Minnesota Multi-County, and 3/04 at 102 17/20 AAA 3,628,998
Stearns County Housing and Redevelopment Authorities,
Single Family Mortgage Revenue Refunding Bonds (Fannie
Mae Mortgage-Backed Securities Program), Series 1994B,
7.050%, 9/01/27 (Alternative Minimum Tax)
The Dakota, Washington, and Stearns Counties Housing and
Redevelopment Authorities, Single Family Mortgage Revenue
Refunding Bonds (Fannie Mae Mortgage-Backed Securities Program),
Series 1994A:
580 6.600%, 9/01/17 (Alternative Minimum Tax) 3/04 at 102 AAA 590,863
385 6.700%, 3/01/21 (Alternative Minimum Tax) 3/04 at 102 AAA 392,538
7,230 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100 AA+ 7,350,307
Bonds, 2000 Series C, 6.100%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.2%
1,385 Goodman Housing Development Corporation, 1991 Multifamily 8/01 at 100 AAA 1,401,883
Mortgage Revenue Refunding Bonds, (Goodhaven Manor -
FHA-Insured Mortgage, Section 8 Assisted Project),
Series A, 7.625%, 2/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.4%
10,550 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 10,837,382
Revenue Bonds, 1995 Series A, 6.800%, 3/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.0%
4,885 Clark County, Nevada, General Obligation Bond Bank Bonds 7/10 at 100 AA 4,900,925
(Limited Tax), Series 2000 (Additionally Secured by
Pledged Revenues), 5.500%, 7/01/18
7,500 Clark County, Nevada, Airport System Subordinate Lien 7/10 at 101 AAA 7,795,875
Revenue Bonds, Series 1999A, 6.000%, 7/01/29
10,000 Clark County School District, Nevada, General Obligation 6/06 at 101 AAA 10,766,100
School Improvement Bonds (Limited Tax), Series 1996,
6.000%, 6/15/15
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.9%
4,420 New Jersey Housing and Mortgage Finance Agency, 11/01 at 102 AA- 4,563,208
Section 8 Bonds, 1991 Series A, 6.850%, 11/01/06
17,670 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100 AAA 17,708,521
Home Buyer Revenue Bonds, 2000 Series CC, 5.850% 10/01/25
(Alternative Minimum Tax)
23
<PAGE>
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW MEXICO - 1.0%
$ 8,500 City of Farmington, New Mexico, Pollution Control Revenue 4/06 at 101 Baa3 $ 7,783,705
Refunding Bonds, Series 1997B (Public Service Company
of New Mexico - San Juan Project), 5.800%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.8%
The City of New York, New York, General Obligation Bonds, Fiscal
1991 Series F:
5,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 AAA 5,274,550
7,750 8.250%, 11/15/15 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 AAA 8,175,552
The City of New York, New York, General Obligation Bonds, Fiscal
1997 Series G:
90 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A*** 98,166
9,200 6.000%, 10/15/26 10/07 at 101 A 9,459,348
5,000 New York City Health and Hospitals Corporation, Health System 2/09 at 101 AAA 4,645,700
Bonds, 1999 Series A, 5.000%, 2/15/20
6,000 New York City Municipal Water Finance Authority, Water and 6/09 at 101 AAA 5,893,680
Sewer System Revenue Bonds, Fiscal 2000 Series A,
5.500%, 6/15/32
2,255 New York City Transit Authority, Metropolitan Transportation 1/10 at 101 AAA 2,306,189
Authority, Triborough Bridge and Tunnel Authority, Certificates
of Participation, Series 2000A, 5.750%, 1/01/20
9,750 New York City Transitional Finance Authority, Future Tax 5/10 at 101 AA 10,174,905
Secured Bonds, Fiscal 2000 Series B, 6.000%, 11/15/29
10,000 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101 A 10,289,200
Lease Revenue Bonds (The City of New York Issue),
Series 1999, 6.000%, 5/15/39
5,650 Dormitory Authority of the State of New York, Mental Health 8/09 at 101 AAA 5,394,846
Services Facilities Improvement Revenue Bonds,
Series 1999D, 5.250%, 8/15/24
5,000 New York Local Government Assistance Corporation 4/02 at 102 AAA 5,280,000
(A Public Benefit Corporation of the State of New York),
Series 1991D Bonds, 7.000%, 4/01/18 (Pre-refunded to 4/01/02)
New York State Medical Care Facilities Finance Agency, Mental
Health Service Facilities Improvement Revenue Bonds, 1991
Series B:
1,020 7.600%, 2/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A*** 1,065,788
595 7.600%, 2/15/06 8/01 at 102 A 619,276
1,010 7.600%, 8/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A*** 1,055,339
580 7.600%, 8/15/06 8/01 at 102 A 603,664
5,970 7.625%, 8/15/17 (Pre-refunded to 8/15/01) 8/01 at 102 A*** 6,239,128
1,980 7.625%, 8/15/17 8/01 at 102 A 2,058,725
New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1991
Series D:
5,380 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A*** 5,686,552
40 7.400%, 2/15/18 2/02 at 102 A 41,851
7,545 New York State Urban Development Corporation, 1996 Corporate 7/06 at 102 AAA 7,457,478
Purpose Senior Lien Bonds, 5.500%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.4%
18,555 North Carolina Eastern Municipal Power Agency, Power 1/03 at 100 AAA 18,566,504
System Revenue Bonds, Refunding Series 1993B,
5.500%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.3%
10,000 City of Grand Forks, North Dakota, Sales Tax Revenue Bonds 12/07 at 100 AAA 9,999,300
(The Aurora Project), Series 1997A, 5.625%, 12/15/29
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.6%
5,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/09 at 101 Baa1 4,170,150
Hospital Facilities Revenue Bonds, Series 1998A (Summa
Health System Project), 5.375%, 11/15/18
5,475 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 5,544,368
Bonds, 2000 Series C, Mortgage-Backed Securities Program,
6.050%, 3/01/32 (Alternative Minimum Tax)
1,000 State of Ohio, Turnpike Revenue Bonds, 1998 Series A, Issued No Opt. Call AAA 1,009,760
by the Ohio Turnpike Commission, 5.500%, 2/15/24
1,080 Toledo-Lucas County Port Authority, Development Revenue 11/00 at 102 N/R 1,095,876
Bonds (Northwest Ohio Bond Fund), Series 1989C,
8.400%, 11/15/09 (Alternative Minimum Tax)
24
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OHIO (continued)
$ 805 Toledo-Lucas County Port Authority, Development Revenue No Opt. Call N/R $ 805,773
Bonds (Northwest Ohio Bond Fund), Series 1989D,
8.500%, 11/15/00 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.2%
3,275 Oklahoma County Home Finance Authority (Oklahoma), 7/01 at 102 Aaa 3,364,440
Single Family Mortgage Revenue Refunding Bonds,
1991 Series A, 8.750%, 7/01/12
21,025 Trustees of the Tulsa Municipal Airport Trust, Revenue 6/01 at 102 Baa1 21,592,675
Bonds, Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.1%
95 Delaware River Port Authority (New Jersey and Pennsylvania), 1/10 at 100 AAA 99,434
Revenue Bonds, Series of 1999, 5.750%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.7%
5,000 Puerto Rico Municipal Finance Agency, 1999 Series A Bonds, 8/09 at 101 AAA 5,399,500
6.000%, 8/01/16
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.9%
5,000 Oconee County, South Carolina, Pollution Control Facilities 4/03 at 102 Aa2 5,079,950
Revenue Refunding Bonds, Series 1993, (Duke Power
Company Project), 5.800%, 4/01/14
5,000 Piedmont Municipal Power Agency (South Carolina), Electric 1/09 at 101 BBB- 4,233,200
Revenue Bonds, 1999A Refunding Series, 5.250%, 1/01/21
5,000 South Carolina State Housing Finance and Development 6/10 at 100 Aaa 5,135,650
Authority, Mortgage Revenue Bonds, Series 2000 A-2,
6.000%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.8%
7,125 City of Sioux Falls, South Dakota, Variable Rate Demand 10/14 at 100 AAA 9,008,921
Industrial Revenue Refunding Bonds, Series 1989 (Great Plains
Hotel Corporation Project), 8.500%, 11/01/16 (Alternative
Minimum Tax) (Pre-refunded to 10/15/14)
4,970 South Dakota Housing Development Authority, Homeownership 11/06 at 102 AAA 5,108,067
Mortgage Bonds, 1996 Series D, 6.300%, 5/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 3.2%
7,220 The Metropolitan Government of Nashville and Davidson 5/02 at 102 AAA 7,545,839
County (Tennessee), General Obligation Multi-Purpose
Improvement Bonds, Series 1994, 6.150%, 5/15/25
(Pre-refunded to 5/15/02)
12,500 The Health and Educational Facilities Board of the Metropolitan 11/09 at 101 AAA 12,613,750
Government of Nashville and Davidson County, Tennessee,
Revenue Bonds (Ascension Health Credit Group), Series 1999A,
5.875%, 11/15/28
Tennessee Housing Development Agency, Homeownership
Program Bonds, Issue 2000-1:
1,785 5.750%, 7/01/10 (Alternative Minimum Tax) No Opt. Call AA 1,860,095
2,145 6.000%, 7/01/13 (Alternative Minimum Tax) 7/10 at 101 AAA 2,232,237
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.2%
6,000 Brazos River Authority (Texas), Revenue Refunding Bonds 11/08 at 102 AAA 5,635,680
(Houston Industries Incorporated Project), Series 1998C,
5.125%, 11/01/20 (Optional put 11/01/08)
3,155 Comal County Health Facilities Development Corporation, 1/01 at 102 AAA 3,228,417
Hospital Revenue Refunding Bonds (McKenna Memorial
Hospital - FHA-Insured Project), Series 1991, 7.375%, 1/15/21
6,340 El Paso Housing Finance Corporation, Single Family Mortgage 4/01 at 103 A2 6,615,727
Revenue Refunding Bonds, Series 1991A, 8.750%, 10/01/11
1,640 The Harrison County Finance Corporation, Single Family 12/01 at 103 A1 1,685,936
Mortgage Revenue Refunding Bonds, Series 1991,
8.875%, 12/01/11
4,500 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/08 at 100 AAA 3,990,105
Bonds, Series 1998B, 5.000%, 7/01/25 (Alternative Minimum Tax)
9,000 Matagorda County Navigation District Number One (Texas), No Opt. Call AAA 8,183,520
Collateralized Revenue Refunding Bonds (Houston Lighting and
Power Company Project), Series 1997, 5.125%, 11/01/28
(Alternative Minimum Tax)
7,500 Matagorda County Navigation District Number One (Texas), 5/09 at 101 Baa1 6,820,650
Revenue Refunding Bonds (Reliant Energy, Incorporated Project),
Series 1999B, 5.950%, 5/01/30
25
<PAGE>
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS (continued)
$ 2,120 Panhandle Regional Housing Finance Corporation, Single Family 5/01 at 100 AAA $ 2,130,070
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities
Program), Series 1991A, 7.500%, 5/01/24 (Alternative Minimum Tax)
4,520 State of Texas, General Obligation Water Financial Assistance 8/09 at 100 Aa1 4,428,334
Bonds, Series 1999C (State Participation Program),
5.500%, 8/01/35
4,560 Winter Garden Housing Finance Corporation, Single Family 4/04 at 103 AAA 4,704,461
Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed
Securities Program), Series 1994, 6.950%, 10/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.8%
13,650 Intermountain Power Agency (Utah), Power Supply Revenue 7/03 at 102 AAA 13,609,505
Refunding Bonds, 1993 Series A, 5.500%, 7/01/20
16,550 Utah County, Utah, Hospital Revenue Bonds, Series 1997 8/07 at 101 AAA 15,390,507
(IHC Health Services, Inc.), 5.250%, 8/15/26
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.6%
Vermont Educational and Health Buildings Financing Agency,
Hospital Revenue Bonds (Fletcher Allen Health Care Project),
Series 2000A:
3,720 6.125%, 12/01/15 12/10 at 100 AAA 3,960,126
4,265 6.250%, 12/01/16 12/10 at 101 AAA 4,562,313
4,140 Vermont Housing Finance Agency, Single Family Housing Notes, 11/09 at 100 AAA 4,154,283
Series 13A, 5.950%, 11/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.5%
7,225 Port of Seattle (Washington), Special Facility Revenue Bonds 3/10 at 101 AAA 7,400,351
(Terminal 18 Project), Series 1999C, 6.000%, 9/01/20
(Alternative Minimum Tax)
Municipality of Metropolitan Seattle, Washington, Sewer
Refunding Revenue Bonds, Series Z:
2,160 5.450%, 1/01/16 1/03 at 102 AAA 2,165,486
3,095 5.450%, 1/01/17 1/03 at 102 AAA 3,096,919
2,490 5.450%, 1/01/19 1/03 at 102 AAA 2,460,120
1,800 5.450%, 1/01/20 1/03 at 102 AAA 1,771,470
Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1992A:
7,880 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 8,254,536
2,130 6.250%, 7/01/12 7/02 at 102 Aa1 2,213,901
4,895 Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1994A, 7/04 at 102 Aa1 4,970,970
5.375%, 7/01/11
1,935 Washington Public Power Supply System, Nuclear Project No. 3
Refunding Revenue Bonds, Series 1993C, 7/03 at 102 Aa1 1,925,151
5.375%, 7/01/15
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.5%
11,080 Wisconsin Center District, Junior Dedicated Tax Revenue Bonds, 12/06 at 101 AAA 11,839,421
Series 1996B, 5.750%, 12/15/27 (Pre-refunded to 12/15/06)
------------------------------------------------------------------------------------------------------------------------------------
$ 763,505 Total Investments (cost $729,819,913) - 97.2% 748,153,851
=============-----------------------------------------------------------------------------------------------------------------------
26
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS - 0.9%
$ 2,300 Louisiana Offshore Terminal Authority, Deepwater Port Refunding VMIG-1 $ 2,300,000
Revenue Bonds (Loop Inc. Project), First Stage Series 1992A,
Variable Rate Demand Bonds, 4.600%, 9/01/08+
2,600 Missouri Health and Educational Facilities Authority VMIG-1 2,600,000
(St. Louis University) Series 1998B, Variable Rate
Demand Bonds, 4.650%, 10/01/24+
2,100 Power County, Idaho (FMC Corporation Project), 1985 Series, VMIG-1 2,100,000
Variable Rate Demand Bonds, 4.650%, 12/01/10+
------------------------------------------------------------------------------------------------------------------------------------
$ 7,000 Total Short-Term Investments (cost $7,000,000) 7,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 14,528,891
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $769,682,742
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
27
<PAGE>
<TABLE>
Nuveen Quality Income Municipal Fund, Inc. (NQU)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 2.5%
$ 5,180 Alabama Drinking Water Finance Authority, Revolving Fund Loan 9/08 at 100 AAA $ 4,618,125
Bonds, Series 1998A, 4.850%, 8/15/22
3,500 The Governmental Utility Services Corporation of the City of 6/08 at 102 AAA 3,311,210
Bessemer (Alabama), Water Supply Revenue Bonds,
Series 1998, 5.200%, 6/01/24
17,000 The Industrial Development Board of the Town of Courtland 6/05 at 102 Baa1 16,776,790
(Alabama), Pollution Control Refunding Revenue Bonds
(Champion International Corporation Project),
Series 1995, 6.150%, 6/01/19
6,480 The Industrial Development Board of the Town of Courtland 10/08 at 102 Baa1 5,808,154
(Alabama), Solid Waste Disposal Revenue Bonds (Champion
International Corporation Project), Refunding Series 1998A,
5.700%, 10/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.5%
6,750 Alaska Housing Finance Corporation, General Housing Purpose 12/02 at 102 Aa2*** 6,983,010
Bonds, 1992 Series A, 6.600%, 12/01/23 (Pre-refunded
to 12/01/02)
11,590 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102 AAA 11,590,695
Bonds, 1995 Series A, 5.875%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8%
5,000 The Industrial Development Authority of the County of Maricopa, 3/10 at 103 AAA 4,992,100
Arizona, Multifamily Housing Revenue Bonds, Bay Club at
Mesa Cove Project, Series 2000A, 5.800%, 9/01/35
5,105 Yuma Regional Medical Center on behalf of Hospital District No. 1 8/02 at 101 1/2 N/R*** 5,482,157
of Yuma County, Arizona, Hospital Revenue Improvement and
Refunding Bonds (Yuma Regional Medical Center Project),
Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.6%
1,835 Arkansas Development Finance Authority, Single Family 8/01 at 103 AA 1,904,693
Mortgage Revenue Refunding Bonds, 1991 Series A (FHA-Insured
or VA Guaranteed Mortgage Loans), 8.000%, 8/15/11
5,915 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102 AAA 6,086,831
Revenue Bonds, 1995 Series B (Mortgage-Backed Securities
Program), 6.700%, 7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 8.5%
Brea Public Financing Authority (Orange County, California),
1991 Tax Allocation Revenue Bonds, Series A (Redevelopment
Project AB):
10,580 7.000%, 8/01/15 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 11,041,923
4,420 7.000%, 8/01/15 8/01 at 102 AAA 4,589,109
2,585 California Housing Finance Agency, Home Mortgage Revenue 8/01 at 102 Aa2 2,642,051
Bonds, 1991 Series G, 7.050%, 8/01/27 (Alternative Minimum Tax)
3,000 California Health Facilities Financing Authority, Kaiser 5/03 at 102 A 2,891,910
Permanente, Revenue Bonds, 1993 Series C,
5.600%, 5/01/33
13,750 State of California, General Obligation Bonds, 4.500%, 12/01/18 12/08 at 101 AA 12,250,288
State of California, General Obligation Veterans Welfare
Bonds, Series 1997BH:
4,100 5.300%, 12/01/12 (Alternative Minimum Tax) 12/08 at 101 AA 4,194,464
5,000 5.600%, 12/01/32 (Alternative Minimum Tax) 12/03 at 102 AA 4,927,900
10,250 State of California, General Obligation Refunding Bonds, 2/08 at 101 AA 9,778,295
5.000%, 2/01/21
20,000 State of California, Various Purpose General Obligation Bonds, 4/09 at 101 AA 17,659,800
4.750%, 4/01/29
3,500 State Public Works Board of the State of California, 10/02 at 102 Aaa 3,735,655
Lease Revenue Bonds (The Trustees of the California State
University), 1992 Series A (Various California State University
Projects), 6.625%, 10/01/10 (Pre-refunded to 10/01/02)
17,000 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa 19,101,030
Revenue Bonds (Department of Corrections), 1994 Series A
(California State Prison, Monterey County (Soledad II)),
7.000%, 11/01/19 (Pre-refunded to 11/01/04)
28
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (continued)
$ 8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100 AAA $ 7,856,295
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
2,500 The Community Redevelopment Agency of the City of Los Angeles, 1/01 at 100 BBB*** 2,513,450
California, Central Business District Redevelopment Project,
Tax Allocation Refunding Bonds, Series G, 6.750%, 7/01/10
1,740 Southern California Home Financing Authority, Single Family 3/01 at 102 AAA 1,779,968
Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed
Securities Program), 1991 Issue A, 7.350%, 9/01/24
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.5%
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991A:
3,425 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 3,638,891
3,040 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 3,123,904
8,765 City and County of Denver, Colorado, Airport System Revenue 11/00 at 102 A 8,953,185
Bonds, Series 1990A, 8.500%, 11/15/23 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991D:
3,165 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 3,305,684
3,825 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 3,889,949
10,000 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 9,845,000
Refunding Bonds, Series 2000A, 5.625%, 11/15/23
(Alternative Minimum Tax)
14,400 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 65 5/8 AAA 5,354,640
Series 2000A and 2000B, 0.000%, 9/01/17
5,110 County of Pueblo, Colorado, Hospital Refunding and Improvement 9/01 at 100 N/R*** 5,265,242
Revenue Bonds (Parkview Episcopal Medical Center, Inc.
Project), Series 1991B, 8.300%, 9/01/11 (Pre-refunded to 9/01/01)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.8%
5,250 Dade County Industrial Development Authority, Solid Waste 2/01 at 102 AA- 5,379,728
Disposal Revenue Bonds (Florida Power and Light Company
Project), Series 1991, 7.150%, 2/01/23 (Alternative Minimum Tax)
5,000 Health Facilities Authority of Orange County, Florida, Hospital 11/10 at 101 A- 4,963,900
Revenue Bonds, Series 2000, Adventist Health System/Sunbelt
Obligated Group, 6.500%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.9%
Clayton County Hospital Authority, Georgia, Revenue Anticipation
Certificates (Southern Regional Medical Center Project), Series
1991:
2,900 6.500%, 8/01/10 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 3,001,964
4,500 7.000%, 8/01/13 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 4,674,645
15,900 The Fulton-De Kalb Hospital Authority, Georgia, Revenue 1/01 at 102 AAA 16,281,123
Certificates, Series 1991 (Grady Memorial Hospital),
6.900%, 1/01/20 (Pre-refunded to 1/01/01)
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.8%
10,000 State of Hawaii, Airports System Revenue Bonds, 7/10 at 101 AAA 10,162,500
Refunding Series 2000B, 5.750%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.3%
10,000 Central Lake County Joint Action Water Agency, Lake County, 5/01 at 102 AAA 10,328,200
Illinois, Water Revenue Bonds, Series 1991, 7.000%, 5/01/20
(Pre-refunded to 5/01/01)
32,670 City of Chicago (Illinois), General Obligation Bonds (City Colleges No Opt. Call AAA 5,367,028
of Chicago Capital Improvement Project), Series 1999,
0.000%, 1/01/32
5,000 City of Chicago (Illinois), General Obligation Bonds (Neighborhoods 7/10 at 101 AAA 5,184,950
Alive 21 Program), Series 2000A, 6.000%, 1/01/28
Chicago School Reform Board of Trustees of the Board of
Education of Chicago, Illinois, Unlimited Tax General Obligation
Bonds (Dedicated Tax Revenues), Series 1998A:
9,400 0.000%, 12/01/14 No Opt. Call AAA 4,330,204
4,400 0.000%, 12/01/15 No Opt. Call AAA 1,899,876
6,100 City of Chicago, Chicago-O'Hare International Airport, Special 11/00 at 103 Baa2 6,386,273
Facility Revenue Bonds (United Air Lines, Inc. Project),
Series 1984B, 8.850%, 5/01/18
City of Chicago (Illinois), Second Lien Wastewater Transmission
Revenue Bonds, Series 2000:
8,000 5.750%, 1/01/25 1/10 at 101 AAA 8,063,600
7,750 6.000%, 1/01/30 1/10 at 101 AAA 8,020,553
29
<PAGE>
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 24,430 The County of Cook, Illinois, General Obligation Bonds, 11/01 at 102 AAA $ 25,468,764
Series 1991, 6.750%, 11/01/18 (Pre-refunded to 11/01/01)
Illinois Development Finance Authority, Multifamily Housing
Revenue Bonds, Series 1992 (Town and Garden Apartments Project):
4,420 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 N/R 4,602,811
1,150 7.200%, 9/01/08 (Alternative Minimum Tax) 3/02 at 102 N/R 1,188,859
11,000 Illinois Health Facilities Authority, Hospital Revenue Bonds, 11/03 at 102 AAA 11,929,170
Series 1993-A (Hinsdale Hospital), 7.000%, 11/15/19
10,000 Illinois Health Facilities Authority, Revenue Bonds, 2/10 at 101 AAA 10,037,300
Series 2000 (Iowa Health System), 5.875%, 2/15/30
2,720 Illinois Housing Development Authority, Section 8 Elderly 9/02 at 102 A 2,788,272
Housing Revenue Bonds (Garden House of Maywood
Development), Series 1992, 7.000%, 9/01/18
14,500 Illinois Health Facilities Authority, Revenue Bonds, 8/01 at 102 AA+ 15,017,070
Series 1991 (Northwestern Memorial Hospital),
6.750%, 8/15/11
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 8/01 at 102 AAA 3,110,880
Series 1991 (Sherman Hospital Project), 6.750%, 8/01/21
(Pre-refunded to 8/01/01)
3,545 Joliet Regional Port District Airport Facilities, Revenue Bonds, 7/07 at 103 N/R 3,458,502
Lewis University Airport, Series 1997A, 7.250%, 7/01/18
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 0.9%
5,905 Indiana Health Facility Financing Authority, Hospital Revenue 7/01 at 102 AAA 6,122,009
Bonds, Series 1992 (Community Hospitals Projects),
7.000%, 7/01/11 (Pre-refunded to 7/01/01)
5,125 City of Petersburg, Indiana, Pollution Control Refunding 12/04 at 102 Aa2 5,353,473
Revenue Bonds, Series 1995A (Indianapolis Power and
Light Company Project), 6.625%, 12/01/24
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.0%
8,585 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102 AAA 7,786,767
Series 1998A (Iowa Health System), 5.125%, 1/01/28
4,500 Polk County, Iowa, Health Facilities Revenue Bonds, 11/01 at 101 AAA 4,648,230
Catholic Health Corporation (Mercy Health Center of
Central Iowa Project), Series 1991, 6.750%, 11/01/15
(Pre-refunded to 11/01/01)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.8%
4,585 Unified School District No. 232, DeSoto, Johnson County, 9/10 at 100 Aaa 4,202,107
Kansas, General Obligation Bonds, Series 2000,
4.750%, 9/01/19
City of Merriam, Kansas, Hospital Refunding Revenue Bonds,
Series 1991B (Shawnee Mission Medical Center, Inc. Project):
7,380 7.250%, 9/01/11 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 7,687,525
10,000 7.250%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 10,416,700
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.9%
10,000 City of Danville, Kentucky, Multi-City Lease Revenue Bonds 3/02 at 102 AAA 10,498,500
(Louisville and Jefferson County Metropolitan Sewer
District - Sewer and Drainage System Revenue Project),
Series 1991-G, 6.800%, 3/01/19 (Pre-refunded to 3/01/02)
3,000 Kentucky Development Finance Authority, Hospital Facilities 9/01 at 102 N/R*** 3,120,450
Revenue Bonds, Series 1991 (St. Claire Medical Center,
Inc. Project), 7.125%, 9/01/21 (Pre-refunded to 9/01/01)
9,260 Kentucky Housing Corporation, Housing Revenue Bonds 1/05 at 102 AAA 9,515,298
(Federally Insured or Guaranteed Mortgage Loans),
1995 Series B, 6.625%, 7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.3%
3,385 Community Development Administration, Department of 5/01 at 102 Aa2 3,470,641
Housing and Community Development, State of Maryland,
Multifamily Housing Revenue Bonds (Insured Mortgage Loans),
1991 Series E, 7.100%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.6%
8,185 Boston Water and Sewer Commission, General Revenue Bonds 11/08 at 101 AAA 7,184,384
(Senior), 1998 Series D, 4.750%, 11/01/22
30
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS (continued)
$ 19,600 Massachusetts Bay Transportation Authority, General 3/01 at 102 Aaa $ 20,160,364
Transportation System Bonds, 1991 Series A, 7.000%, 3/01/22
(Pre-refunded to 3/01/01)
15,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 15,725,850
Revenue Bonds (Semass Project), Series 1991A,
9.000%, 7/01/15
3,245 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,401,928
Revenue Bonds (Semass Project), Series 1991B,
9.250%, 7/01/15 (Alternative Minimum Tax)
6,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB 5,271,180
Revenue Refunding Bonds (Ogden Haverhill Project),
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
13,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101 AAA 11,949,795
System Revenue Bonds, 1999 Series A (Subordinated),
5.000%, 1/01/39
7,675 Massachusetts Water Pollution Abatement Trust, Water 8/09 at 101 AA+ 7,751,213
Pollution Abatement Revenue Bonds (MWRA Program),
Subordinate Series 1999A, 5.750%, 8/01/29
10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101 AAA 10,066,100
Bonds, 2000 Series A, 5.750%, 8/01/39
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7%
7,000 City of Grand Rapids, Michigan, Water Supply System Refunding 1/01 at 102 AAA 7,156,940
Revenue Bonds, Series 1991, 6.250%, 1/01/11
5,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 5,218,250
Bonds (The Detroit Medical Center Obligated Group),
Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01)
7,425 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101 AA- 7,336,346
Bonds (Henry Ford Health System), Series 1999A,
6.000%, 11/15/24
8,500 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102 BBB 8,515,895
(Waste Management, Inc. Project), Series 1992,
6.625%, 12/01/12 (Alternative Minimum Tax)
16,875 Michigan Strategic Fund, Limited Obligation Refunding 12/01 at 102 AAA 17,542,744
Revenue Bonds (The Detroit Edison Company Pollution
Control Bonds Project), Collateralized Series 1991DD,
6.875%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.3%
City of Chaska, Minnesota, Electric Revenue Bonds (Generating
Facilities), Series 2000A:
1,930 6.000%, 10/01/20 10/10 at 100 A3 1,953,604
2,685 6.000%, 10/01/25 10/10 at 100 A3 2,703,768
3,655 The Dakota County Housing and Redevelopment Authority, No Opt. Call AAA 4,925,624
The Washington County Housing and Redevelopment Authority
and The City of Bloomington, Minnesota, Single Family
Residential Mortgage Revenue Bonds (Mortgage Backed
Program), Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax)
3,345 Minnesota Housing Finance Agency, Single Family Mortgage 1/04 at 102 AA+ 3,448,126
Bonds, 1994 Series J, 6.950%, 7/01/26 (Alternative Minimum Tax)
2,400 Washington County Housing and Redevelopment Authority, 8/01 at 102 AAA 2,475,648
Multifamily Housing Revenue Bonds (FHA- Insured Mortgage
Loan - Cottages Phase III Project), Series 1991,
7.650%, 8/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5%
3,240 Canton Housing Development Corporation, 1990 Multifamily No Opt. Call AAA 3,796,438
Mortgage Revenue Refunding Bonds (Canton Estates
Apartments Project - FHA-Insured Mortgage, Section 8
Assisted Project), Series A, 7.750%, 8/01/24
1,165 Charter Mortgage Corporation, 1990 Multifamily Mortgage 8/01 at 100 AAA 1,352,961
Revenue Refunding Bonds (Church Garden Apartments -
FHA-Insured Mortgage, Section 8 Assisted Project),
Series A, 7.750%, 8/01/21
1,285 Pearl Housing Development Corporation, 1990 Multifamily 12/00 at 100 AAA 1,286,221
Mortgage Revenue Refunding Bonds (Rose Garden Apartments
Project - FHA-Insured Mortgage, Section 8 Assisted Project),
Series A, 7.750%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.1%
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:
5,185 6.500%, 7/01/12 7/02 at 102 Baa1 5,138,491
5,605 7.000%, 7/01/22 at 102 Baa1 5,638,294
15,350 The Public Building Corporation of the City of Springfield, No Opt. Call AAA 2,639,893
Missouri, Leasehold Revenue Bonds, Series 2000A (Jordan
Valley Park Projects), 0.000%, 6/01/30
31
<PAGE>
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MONTANA - 0.6%
$ 7,000 City of Forsyth, Rosebud County, Montana, Pollution Control 8/01 at 102 AAA $ 7,242,340
Revenue Refunding Bonds (Puget Sound Power and Light
Company Colstrip Project), Series 1992, 7.050%, 8/01/21
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6%
11,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 11,299,640
Revenue Bonds, 1995 Series A, 6.800%, 3/01/35
(Alternative Minimum Tax)
8,000 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101 1/2 AAA 8,210,240
Revenue Bonds, 1995 Series B, 6.450%, 3/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2%
2,680 New Hampshire Housing Finance Authority, Single Family 7/01 at 102 Aa3 2,772,916
Residential Mortgage Bonds, 1991 Series C, 7.100%, 1/01/23
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.9%
11,785 Pollution Control Financing Authority of Camden County 12/01 at 102 B2 11,182,315
(New Jersey), Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.4%
25,000 Erie Tobacco Asset Securitization Corporation, Erie County, 7/10 at 101 Aa3 24,495,000
New York, Tobacco Settlement Asset- Backed Bonds (Senior),
Series 2000, 6.125%, 7/15/30
15,000 Metropolitan Transportation Authority, New York, Dedicated 4/10 at 100 AAA 15,595,050
Tax Fund Bonds, Series 2000A, 6.000%, 4/01/30
2,120 Niagara Falls Housing and Commercial Rehabilitation Corporation, No Opt. Call AA 2,356,592
1992 Multifamily Mortgage Revenue Refunding Bonds
(FHA-Insured Mortgage - Section 8 Assisted Project),
7.350%, 8/01/23
25,000 Nassau County Tobacco Settlement Corporation (New York), 7/09 at 101 A- 25,041,750
Tobacco Settlement Asset-Backed Bonds, Series A,
6.400%, 7/15/33
6,000 The City of New York, New York, General Obligation Bonds, 8/07 at 101 A 6,224,280
Fiscal 1997 Series H, 6.125%, 8/01/25
10,000 The City of New York, New York, General Obligation Bonds, 5/10 at 101 A 9,837,700
Fiscal 2000 Series A, 5.500%, 5/15/24
5,475 The City of New York, New York, General Obligation Bonds, 8/04 at 101 Aaa 6,059,018
Fiscal 1995 Series B1, 7.250%, 8/15/19
(Pre-refunded to 8/15/04)
14,800 The City of New York, New York, General Obligation Bonds, 6/07 at 102 AAA 14,914,996
Fiscal 1997 Series M, 5.500%, 6/01/17
6,700 The City of New York, New York, General Obligation Bonds, 2/05 at 101 A*** 7,305,881
Fiscal 1995 Series F, 6.625%, 2/15/25
(Pre-refunded to 2/15/05)
5,660 The City of New York, New York, General Obligation Bonds, 10/02 at 101 1/2 A*** 5,991,053
Fiscal 1993 Series B, 6.750%, 10/01/17
(Pre-refunded to 10/01/02)
4,190 New York City Municipal Water Finance Authority, Water 6/05 at 101 AAA 4,258,507
and Sewer System Revenue Bonds, Fiscal 1996 Series A,
5.875%, 6/15/25
10,100 New York City Transitional Finance Authority, Future Tax 5/10 at 101 AA 10,369,771
Secured Bonds, Fiscal 2000 Series B, 5.750%, 11/15/19
8,325 Dormitory Authority of the State of New York, Menorah 8/01 at 102 AA*** 8,678,480
Campus, Inc., FHA-Insured Mortgage Revenue Bonds,
Series 1991, 7.400%, 2/01/31 (Pre-refunded to 8/01/01)
5,000 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 A 5,004,050
Services Facilities Improvement Revenue Bonds,
Series 1997A, 5.750%, 2/15/27
10,000 Dormitory Authority of the State of New York, Mental 2/10 at 100 AAA 10,369,900
Health Services Facilities Improvement Revenue Bonds,
Series 2000B, 6.000%, 2/15/30
21,075 New York Local Government Assistance Corporation, 4/01 at 102 AAA 21,774,058
Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01)
8,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 8,769,040
New York Hospital FHA-Insured Mortgage Revenue Bonds,
Series 1994A, 6.500%, 8/15/29 (Pre-refunded to 2/15/05)
5,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 5,547,450
Brookdale Hospital Medical Center Secured Hospital
Revenue Bonds, 1995 Series A, 6.850%, 2/15/17
(Pre-refunded to 2/15/05)
32
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (continued)
New York State Medical Care Facilities Finance Agency,
FHA-Insured Mortgage Project Revenue Bonds, 1995 Series F:
$ 4,050 6.200%, 8/15/15 (Pre-refunded to 8/15/05) 8/05 at 102 AA*** $ 4,418,874
4,250 6.300%, 8/15/25 8/05 at 102 AA 4,655,238
3,225 Penfield-Crown Oak Housing Development Corporation, 2/03 at 100 AAA 3,308,818
1991 Multifamily Mortgage 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 North Carolina Eastern Municipal Power Agency, Power 1/02 at 102 BBB 10,748,115
System Revenue Bonds, Refunding Series 1991A,
6.250%, 1/01/03
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.9%
4,800 County of Butler, Ohio, Hospital Facilities Revenue Refunding 1/02 at 102 Baa1 4,932,288
and Improvement Bonds, Series 1991 (Fort Hamilton-Hughes
Memorial Hospital Center), 7.500%, 1/01/10
5,630 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102 Aaa 5,862,125
Bonds (GNMA Mortgage-Backed Securities Program),
1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.8%
3,310 Oklahoma County Home Finance Authority (Oklahoma), 7/01 at 102 Aaa 3,400,396
Single Family Mortgage Revenue Refunding Bonds,
1991 Series A, 8.750%, 7/01/12
17,510 Pottawatomie County Home Finance Authority (Oklahoma), No Opt. Call AAA 22,568,814
Municipal Refunding Collateralized Mortgage Obligations,
Series 1991A, 8.625%, 7/01/10
10,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable 12/00 at 102 Baa1 10,207,000
Rate Revenue Obligations, 7.375%, 12/01/20
(Alternative Minimum Tax)
10,100 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, 6/01 at 102 Baa1 10,372,700
Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.9%
7,000 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 7,125,650
Resource Recovery Revenue Refunding Bonds, 2000 Series
(Panther Creek Partners Project), 6.650%, 5/01/10
(Alternative Minimum Tax)
Falls Township Hospital Authority, Refunding Revenue Bonds, The
Delaware Valley Medical Center Project (FHA-Insured Mortgage),
Series 1992:
955 6.900%, 8/01/11 8/02 at 102 AAA 960,014
3,000 7.000%, 8/01/22 8/02 at 102 AAA 3,151,230
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.5%
6,500 Lexington County Health Services District, Inc., South Carolina, 10/01 at 102 AAA 6,766,045
Hospital Revenue Bonds, Series 1991, 6.750%, 10/01/18
(Pre-refunded to 10/01/01)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.7%
10,300 Metropolitan Nashville Airport Authority (Tennessee), Airport 7/01 at 102 AAA 10,641,960
Improvement Revenue Bonds, Refunding Series 1991C,
6.625%, 7/01/07
10,000 Tennessee Housing Development Agency, Homeownership 7/10 at 100 AA 10,272,800
Program Bonds, Issue 2000-2B, 6.350%, 1/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 11.3%
14,360 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa1 14,661,560
Series 1990 (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:
3,410 0.000%, 2/15/11 2/05 at 71 15/16 Aaa 1,957,170
4,105 0.000%, 2/15/14 2/05 at 58 25/32 Aaa 1,900,779
6,500 Bell County Health Facilities Development Corporation, 11/08 at 101 A- 5,572,125
Retirement Facility Revenue Bonds (Buckner Retirement
Services, Inc. Obligated Group Project), Series 1998,
5.250%, 11/15/19
14,375 Dallas-Fort Worth, Texas, International Airport Facilities No Opt. Call Baa1 14,521,338
Improvement Corporation, Revenue Refunding Bonds
(American Airlines), Series 2000C, 6.150%, 5/01/29
(Alternative Minimum Tax) (Mandatory put 11/01/07)
33
<PAGE>
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS (continued)
$ 4,815 Fort Worth Housing Finance Corporation, Home Mortgage 10/01 at 103 Aa $ 5,004,759
Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11
11,000 Harris County Health Facilities Development Corporation (Texas), 10/09 at 101 AA 9,956,760
Texas Children's Hospital Project, Series 1999A Hospital
Revenue Bonds, 5.250%, 10/01/29
7,815 City of Houston, Texas, Airport System Subordinate Lien 7/01 at 102 AAA 8,084,774
Revenue Bonds, Series 1991B, 6.625%, 7/01/22
(Pre-refunded to 7/01/01)
13,175 Houston Independent School District (Texas), Limited Tax 2/09 at 100 AAA 11,462,118
Schoolhouse and Refunding Bonds, Series 1999A,
4.750%, 2/15/26
36,735 City of Houston, Texas, Water and Sewer System, No Opt. Call AAA 7,215,489
Junior Lien Revenue Refunding Bonds, Series 1998A,
0.000%, 12/01/28
22,500 City of Houston, Texas, Water and Sewer System 12/10 at 100 AAA 21,250,575
Junior Lien Revenue Refunding Bonds, Series 2000B,
5.250%, 12/01/30
16,270 City of Houston, Texas, Water and Sewer System 12/01 at 102 AAA 16,881,589
Junior Lien Revenue Refunding Bonds, Series 1991C,
6.375%, 12/01/17
7,650 Port Authority of Corpus Christi, Nueces County, Texas, 5/06 at 101 BBB- 7,031,574
Revenue Refunding Bonds, Series 1992 (Union Pacific
Corporation Project), 5.350%, 11/01/10
14,680 San Antonio Independent School District (Bexar County, Texas), 8/09 at 100 AAA 14,891,392
Unlimited Tax School Building Bonds, Series 1999,
5.800%, 8/15/29
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5%
5,800 Carbon County, Utah, Solid Waste Disposal Refunding 2/05 at 102 BB- 5,742,058
Revenue Bonds, Series 1995, Laidlaw/ECDC Project,
Guaranteed by Allied Waste Industries, 7.500%, 2/01/10
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.7%
8,320 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ 8,575,840
Mortgage Bonds, 1992 Series A, 7.150%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.5%
4,185 Public Utility District No. 1 of Douglas County, Washington, 9/06 at 106 AA- 5,147,424
Wells Hydro-Electric Revenue Bonds, Series of 1986,
8.750%, 9/01/18
12,415 Federal Way School District No. 210, King County, Washington, 12/03 at 100 A1*** 13,279,829
Unlimited Tax General Obligation Bonds, Series 1991,
6.950%, 12/01/11 (Pre-refunded to 12/01/03)
1,675 Spokane Downtown Foundation, Parking Revenue Bonds, 8/08 at 102 N/R 1,225,762
Series 1998 (River Park Square Project), 5.600%, 8/01/19
4,000 North Thurston School District No. 3, Thurston County, 12/02 at 100 A 4,136,280
Washington, Unlimited Tax General Obligation Bonds,
Series 1992, 6.500%, 12/01/09
18,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA 15,789,420
Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28
4,175 Washington State University, Recreation Center Revenue 4/08 at 101 AAA 3,773,490
Bonds, Series 1998, 5.000%, 4/01/28
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.5%
7,000 Wisconsin Housing and Economic Development Authority, 1/02 at 102 AA 7,267,610
Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12
10,820 Wisconsin Health and Educational Facilities Authority, 12/01 at 102 AAA 11,304,082
Revenue Bonds, Series 1991-B (Novus Health Group),
6.750%, 12/15/20 (Pre-refunded to 12/15/01)
34
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WYOMING - 0.1%
$ 1,025 Wyoming Community Development Authority, Single Family 11/01 at 103 AA $ 1,059,040
Mortgage Bonds, Series 1988G (Federally Insured or
Guaranteed Mortgage Loans), 7.250%, 6/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,268,065 Total Investments (cost $1,161,333,016) - 96.3% 1,193,385,258
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.7% 46,443,886
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,239,829,144
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
35
<PAGE>
<TABLE>
Nuveen Premier Municipal Income Fund, Inc. (NPF)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 1.0%
$ 4,360 Alabama Higher Education Loan Corporation, Student Loan No Opt. Call AAA $ 4,498,997
Revenue Refunding Bonds, Series 1994-D, 5.850%, 9/01/04
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.1%
565 Municipality of Anchorage, Alaska, Home Mortgage Revenue 3/02 at 102 AAA 584,572
Bonds (Mortgage-Backed Securities Program),
Series 1992, 8.000%, 3/01/09
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 4.7%
5,500 Arizona Educational Loan Marketing Corporation, 1992 Educational No Opt. Call Aa2 5,540,095
Loan Revenue Bonds, Series B, 6.950%, 3/01/01
(Alternative Minimum Tax)
3,650 Gilbert Unified School District No. 41 of Maricopa County, 7/04 at 100 AAA 3,849,509
Arizona, School Improvement Bonds, Project of 1993,
Series C (1994), 6.100%, 7/01/14 (Pre-refunded to 7/01/04)
10,960 Yuma Regional Medical Center on behalf of Hospital District 8/02 at 101 1/2 N/R*** 11,769,725
No. 1 of Yuma County, Arizona, Hospital Revenue Improvement
and Refunding Bonds (Yuma Regional Medical Center Project),
Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.7%
1,105 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 1,136,725
Mortgage Revenue Bonds, 1994 Series C (Mortgage-Backed
Securities Program), 6.600%, 7/01/17
1,385 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 1,418,572
Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed
Securities Program), 6.550%, 7/01/18 (Alternative Minimum Tax)
184 Drew County (Arkansas), Public Facilities Board, Single Family 8/03 at 103 Aaa 191,000
Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 8/01/11
275 Residential Housing Facilities Board of Greene County, 1/02 at 103 Aa 283,649
Arkansas, Subordinated Mortgage Revenue Bonds,
Series 1991-1, 7.250%, 1/01/10
245 Public Facilities Board of Stuttgart, Arkansas, Single Family 9/03 at 103 Aaa 258,514
Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 9/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 3.7%
Foothill/Eastern Transportation Corridor Agency, California,
Toll Road Revenue Bonds, Series 1995A:
33,000 0.000%, 1/01/17 No Opt. Call AAA 13,802,580
10,000 0.000%, 1/01/22 No Opt. Call AAA 3,071,700
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.4%
Colorado Health Facilities Authority, Hospital Refunding Revenue
Bonds (National Jewish Center For Immunology and Respiratory
Medicine Project), Series 1992:
795 6.600%, 2/15/02 No Opt. Call N/R*** 806,066
1,250 6.875%, 2/15/12 (Pre-refunded to 2/15/02) 2/02 at 102 N/R*** 1,308,413
3,040 7.100%, 2/15/22 (Pre-refunded to 2/15/02) 2/02 at 102 N/R*** 3,190,328
1,000 Colorado Health Facilities Authority, Hospital Revenue 12/09 at 101 Aaa 1,006,410
Bonds (Poudre Valley Health Care, Inc.), Series 1999A,
5.750%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.3%
4,490 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102 AA 4,605,977
Finance Program Bonds, 1997 Series A, Subseries A-4,
6.200%, 11/15/22 (Alternative Minimum Tax)
1,300 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102 AA 1,350,544
Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
36
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA - 1.4%
$ 1,600 District of Columbia, Hospital Revenue Refunding Bonds, 8/02 at 102 A3*** $ 1,670,752
Washington Hospital Center Medlantic Issue, Series 1992A,
7.000%, 8/15/05 (Pre-refunded to 8/15/02)
District of Columbia Housing Finance Agency, Multifamily Housing
Refunding Revenue Bonds, Series 1992B (FHA-Insured Mortgage
Loans - Section 8 Assisted Project):
920 7.200%, 9/01/12 9/02 at 102 Aa 953,516
3,505 7.250%, 3/01/24 9/02 at 102 Aa 3,638,155
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.9%
4,000 Dade County, Florida, Aviation Bonds, Series 1996A, 10/06 at 102 AAA 4,054,320
5.750%, 10/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.5%
8,000 George L. Smith II World Congress Center Authority, 7/10 at 101 AAA 7,873,760
Refunding Revenue Bonds (Domed Stadium Project),
Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax)
10,000 State of Georgia, General Obligation Bonds, Series 2000C, 7/10 at 100 AAA 8,205,100
4.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5%
2,250 Department of Budget and Finance of the State of Hawaii, 1/09 at 101 AAA 2,332,508
Special Purpose Revenue Bonds (Hawaii Electric
Company, Inc. and Subsidiaries Project), Series 1999D,
6.150%, 1/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
1,140 Idaho Housing and Finance Association, Single Family 7/06 at 102 Aa1 1,182,670
Mortgage Bonds, 1996 Series E, 6.350%, 7/01/14
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 21.3%
4,500 City of Chicago (Illinois), General Obligation Adjustable 7/02 at 101 1/2 AAA 4,737,780
Rate Bonds, Central Public Library Project, Series C of 1988,
6.850%, 1/01/17 (Pre-refunded to 7/01/02)
City of Chicago (Illinois), General Obligation Bonds (City
Colleges of Chicago Capital Improvement Project), Series 1999:
8,670 0.000%, 1/01/24 No Opt. Call AAA 2,284,892
16,670 0.000%, 1/01/26 No Opt. Call AAA 3,905,948
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues), Series 1998A:
5,000 0.000%, 12/01/16 No Opt. Call AAA 2,036,950
10,000 0.000%, 12/01/20 No Opt. Call AAA 3,148,400
9,900 0.000%, 12/01/24 No Opt. Call AAA 2,426,193
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues), Series 1999A:
15,000 0.000%, 12/01/21 No Opt. Call AAA 4,441,200
10,000 0.000%, 12/01/23 No Opt. Call AAA 2,609,700
1,100 Public Building Commission of Chicago (Illinois), Building No Opt. Call AAA 1,236,158
Revenue Bonds, Series B of 1990 (Board of Education of the
City of Chicago), 7.000%, 1/01/15
13,000 City of Chicago (Illinois), Wastewater Transmission Revenue 1/06 at 102 AAA 12,048,790
Bonds, Series 1995, 5.125%, 1/01/25
7,450 Town of Cicero, Cook County, Illinois, General Obligation 12/04 at 102 N/R*** 8,318,894
Tax Increment Bonds, Series 1995A, 8.125%, 12/01/12
(Pre-refunded to 12/01/04)
6,210 Illinois Development Finance Authority, Multifamily Housing 3/02 at 102 N/R 6,466,846
Revenue Bonds, Series 1992 (Town and Garden Apartments
Project), 7.800%, 3/01/06 (Alternative Minimum Tax)
Illinois Development Finance Authority, Multifamily Housing
Bonds, Series 1990 (Affordable Housing Preservation Foundation
Project), Subseries B (FHA-Insured Mortgage Loans - Lawless
Gardens Project):
600 7.650%, 7/01/07 1/02 at 105 AAA 638,568
5,270 7.650%, 12/31/31 1/02 at 105 AAA 5,616,819
7,400 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 7/02 at 102 Baa2*** 7,814,104
(Trinity Medical Center), 7.000%, 7/01/12 (Pre-refunded to 7/01/02)
125 Illinois Health Facilities Authority, Revenue Refunding Bonds, 4/02 at 102 AA-*** 131,341
Series 1992A (Evangelical Hospitals Corporation), 6.750%, 4/15/12
(Pre-refunded to 4/15/02)
37
<PAGE>
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 4,590 Illinois Housing Development Authority, Section 8 Elderly 9/02 at 102 A $ 4,705,209
Housing Revenue Bonds (Garden House of Maywood
Development), Series 1992, 7.000%, 9/01/18
620 Illinois Housing Development Authority, Section 8 Elderly 1/03 at 102 A*** 655,755
Housing Revenue Bonds (Morningside North Development),
Series 1992D, 6.600%, 1/01/07 (Pre-refunded to 1/01/03)
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Refunding Bonds, Series 1996A:
8,330 0.000%, 12/15/16 No Opt. Call AAA 3,440,790
9,400 0.000%, 12/15/18 No Opt. Call AAA 3,412,576
10,775 0.000%, 12/15/24 No Opt. Call AAA 2,687,608
2,000 Onterie Center Housing Finance Corporation (An Illinois 7/02 at 102 AAA 2,086,700
Not For Profit Corporation), Mortgage Revenue Refunding
Bonds, Series 1992A (FHA-Insured Mortgage Loan -
Onterie Center Project),
7.050%, 7/01/27
Village of Sugar Grove, Kane County, Illinois, Waterworks and
Sewerage Refunding Revenue Bonds, Series 1992:
1,395 7.500%, 5/01/17 (Pre-refunded to 5/01/02) 5/02 at 102 N/R*** 1,480,834
1,440 7.500%, 5/01/17 5/02 at 102 N/R 1,500,811
5,190 Town of Wood River, Wood River Township Hospital, 2/04 at 102 N/R 4,333,910
Madison County, Illinois, General Obligation Bonds
(Alternate Revenue Source), Series 1993, 6.625%, 2/01/14
5,135 Town of Wood River, Wood River Township Hospital, 2/04 at 102 N/R 4,238,224
Madison County, Illinois, General Obligation Tort Immunity
Bonds, Series 1993, 6.500%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.7%
Crown Point Multi-School Building Corporation, Indiana, First
Mortgage Bonds, Series 2000 (Crown Point Community School
Corporation):
7,480 0.000%, 1/15/21 No Opt. Call AAA 2,356,050
7,980 0.000%, 1/15/22 No Opt. Call AAA 2,359,207
6,180 0.000%, 1/15/23 No Opt. Call AAA 1,717,607
29,255 The Indianapolis Local Public Improvement Bond Bank, No Opt. Call AAA 7,192,634
Indiana, Series 1999E, 0.000%, 2/01/25
2,860 PHM Elementary/Middle School Building Corporation, St. Joseph No Opt. Call A 3,101,470
County, Indiana, First Mortgage Bonds, Series 1994,
6.300%, 1/15/09
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
1,655 Iowa Student Loan Liquidity Corporation, Student Loan 12/02 at 102 Aaa 1,704,865
Revenue Bonds, Senior Series B, 5.750%, 12/01/06
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8%
1,675 City of Hutchinson, Kansas, Single Family Mortgage Revenue 6/02 at 103 A 1,746,941
Refunding Bonds, Series 1992, 8.875%, 12/01/12
6,440 The Unified Government of Wyandotte County, Kansas City, No Opt. Call AAA 2,052,686
Kansas, Sales Tax Special Obligation Revenue Bonds (Kansas
International Speedway Corporation Project), Series 1999,
0.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.1%
5,000 Kentucky Rural Economic Development Authority, Economic 7/02 at 102 N/R 5,129,800
Development Project Revenue Bonds, Series 1992 (Donnelly
Corporation Project), 8.125%, 7/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.3%
1,310 Louisiana Housing Finance Agency, Mortgage Revenue 9/05 at 103 AAA 1,328,746
Bonds (GNMA Collateralized Mortgage Loan - St. Dominic
Assisted Care Facility), Series 1995, 6.850%, 9/01/25
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.8%
7,965 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A 8,126,291
Student Loan Revenue Bonds, Series 1994-2,
6.250%, 11/01/06 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.4%
6,000 Anne Arundel County, Maryland, Multifamily Housing No Opt. Call BBB 6,270,300
Revenue Bonds (Woodside Apartments Project), Series 1994,
7.450%, 12/01/24 (Alternative Minimum Tax)
(Mandatory put 12/01/03)
38
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS - 7.5%
$ 30 Massachusetts Municipal Wholesale Electric Company, No Opt. Call BBB+ $ 32,831
Power Supply System Revenue Bonds, 1987 Series A,
8.750%, 7/01/18
2,450 Massachusetts Health and Educational Facilities Authority, 4/02 at 102 AAA 2,579,385
Revenue Bonds, New England Deaconess Hospital Issue,
Series D, 6.875%, 4/01/22 (Pre-refunded to 4/01/02)
3,875 Massachusetts Health and Educational Facilities Authority, 2/04 at 102 Aa2 3,970,325
Revenue Refunding Bonds, Youville Hospital Issue
(FHA-Insured Project), Series B, 6.000%, 2/15/25
6,585 Massachusetts Health and Educational Facilities Authority, 5/08 at 102 AAA 5,690,955
Catholic Health East Issue, Series 1998B, 5.000%, 11/15/28
8,960 Massachusetts Industrial Finance Agency, Resource 7/01 at 103 N/R 9,393,306
Recovery Revenue Bonds (Semass Project), Series 1991B,
9.250%, 7/01/15 (Alternative Minimum Tax)
2,000 Massachusetts Housing Finance Agency, Rental Housing 7/07 at 101 AAA 1,910,000
Mortgage Revenue Bonds, 1997 Series C, 5.625%, 7/01/40
(Alternative Minimum Tax)
9,780 Massachusetts Water Resources Authority, General Revenue 7/02 at 102 AAA 10,345,284
Bonds, 1992 Series A, 6.750%, 7/15/12 (Pre-refunded to 7/15/02)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.9%
1,975 Charter Township of Clinton, County of Macomb, State 4/09 at 101 AAA 1,615,748
of Michigan, 1998 General Obligation Unlimited Tax Police
Building Bonds, 4.000%, 4/01/18
2,500 Wayne County Building Authority, State of Michigan, Building 3/02 at 102 A-*** 2,660,850
Authority Bonds (Capital Improvement), Series 1992A
(Limited Tax - General Obligation), 8.000%, 3/01/17
(Pre-refunded to 3/01/02)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.7%
7,990 City of Eden Prairie, Minnesota, Multifamily Housing Revenue 11/10 at 103 1/2 Aaa 8,314,873
Bonds, Series 2000 (GNMA Collateralized Mortgage Loan -
Lincoln Park Project), Series 2000A-1, 6.650%, 5/20/42
(WI, settling 11/17/00)
10,780 Northwest Minnesota Multi-County, Housing and 10/04 at 102 N/R 8,648,147
Redevelopment Authority, Governmental Housing Revenue
Bonds (Pooled Housing Program), Series 1994A, 8.125%, 10/01/26
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.7%
8,610 Mississippi Home Corporation, Residual Revenue Capital 3/04 at 41 21/32 Aaa 3,023,315
Appreciation Bonds, Series 1992-I, 0.000%, 9/15/16
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 3.7%
2,830 City of Grand Island, Nebraska, Electric System Revenue Bonds, 3/01 at 100 A+*** 3,054,815
1977 Series, 6.100%, 9/01/12
2,350 Nebraska Higher Education Loan Program Inc., Senior No Opt. Call AAA 2,509,800
Subordinate Bonds, Series A-5B, 6.250%, 6/01/18
(Alternative Minimum Tax)
10,935 Omaha Public Power District (Nebraska), Electric System 2/02 at 101 1/2 AAA 11,367,370
Revenue Bonds, 1992 Series A, 6.500%, 2/01/17
(Pre-refunded to 2/01/02)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.3%
890 New Hampshire Municipal Bond Bank, Educational Institutions No Opt. Call N/R 919,646
Division Revenue Bonds (1994 Coe-Brown Northwood
Academy Project), 7.250%, 5/01/09
5,000 New Hampshire Housing Finance Authority, Multifamily 7/10 at 101 Aaa 5,049,400
Housing Revenue Bonds, 1994 Issue Remarketing (Countryside
Limited Partnership - Countryside Project), 6.100%, 7/01/24
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.5%
1,000 The City of New York, New York, General Obligation Bonds, No Opt. Call A 1,081,890
Fiscal 1995 Series A, 7.000%, 8/01/04
2,075 The City of New York, New York, General Obligation Bonds, 11/01 at 101 1/2 AAA 2,191,968
Fiscal 1991 Series F, 8.400%, 11/15/05 (Pre-refunded to 11/15/01)
2,000 The City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 2,106,480
Fiscal 1992 Series C, 6.625%, 8/01/12 (Pre-refunded to 8/01/02)
4,000 The City of New York, New York, General Obligation Bonds, 2/06 at 101 1/2 A 4,077,880
Fiscal 1996 Series J1, 5.875%, 2/15/19
The City of New York, New York, General Obligation Bonds, Fiscal
1991 Series D:
3,920 9.500%, 8/01/02 (Pre-refunded to 8/01/01) 8/01 at 101 1/2 Aaa 4,127,486
80 9.500%, 8/01/02 8/01 at 101 1/2 A 84,040
39
<PAGE>
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (continued)
The City of New York, New York, General Obligation Bonds, Fiscal
1995 Series E:
$ 450 6.500%, 8/01/02 No Opt. Call Aaa $ 466,749
1,100 6.500%, 8/01/02 No Opt. Call A 1,137,565
3,080 6.600%, 8/01/04 No Opt. Call A 3,294,614
4,480 New York City Transitional Finance Authority, Future Tax 8/07 at 101 AA 4,233,286
Secured Bonds, Fiscal 1998 Series A, 5.125%, 8/15/21
10,000 Dormitory Authority of the State of New York, State University 5/10 at 101 AAA 9,849,000
Educational Facilities Revenue Bonds, Series 2000B,
1999 Resolution, 5.500%, 5/15/30
5,000 New York Local Government Assistance Corporation, 4/01 at 102 AAA 5,165,850
Series 1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01)
5,550 New York State Medical Care Facilities Finance Agency, 8/02 at 102 AAA 5,679,759
Hospital and Nursing Home FHA-Insured Mortgage Revenue
Bonds, 1992 Series B, 6.200%, 8/15/22
4,650 New York State Medical Care Facilities Finance Agency, 8/03 at 102 AAA 4,755,416
St. Lukes-Roosevelt Hospital Center FHA-Insured Mortgage
Revenue Bonds, 1993 Series A, 5.600%, 8/15/13
4,000 New York State Medical Care Facilities Finance Agency, 2/04 at 102 AAA 3,913,960
Hospital Insured Mortgage Revenue Bonds, 1994 Series A
Refunding, 5.500%, 8/15/24
8,450 New York State Urban Development Corporation, State 4/01 at 102 Aaa 8,730,287
Facilities Revenue Bonds, Series 1991, 7.500%, 4/01/20
(Pre-refunded to 4/01/01)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.9%
10,300 North Carolina Eastern Municipal Power Agency, Power No Opt. Call AAA 10,985,362
System Revenue Bonds, Refunding Series 1993B,
6.000%, 1/01/22
2,130 North Carolina Housing Finance Agency, Multifamily Revenue 7/02 at 102 Aa2 2,218,693
Refunding Bonds (1992 Refunding Bond Resolution),
Series B, 6.900%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.6%
2,110 Cleveland-Rock Glen Housing Assistance Corporation, 7/04 at 103 AAA 2,197,249
Mortgage Revenue Refunding Bonds, Series 1994A
(FHA-Insured Mortgage Loans - Section 8 Assisted Projects),
6.750%, 1/15/25
675 Toledo-Lucas County Port Authority, Development Revenue 11/00 at 102 N/R 684,545
Bonds (Northwest Ohio Bond Fund), Series 1992A,
7.750%, 5/15/07 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.8%
2,000 Falls Township Hospital Authority, Refunding Revenue Bonds, 8/02 at 102 AAA 2,100,820
The Delaware Valley Medical Center Project (FHA-Insured
Mortgage), Series 1992, 7.000%, 8/01/22
520 Northampton County Hospital Authority (Pennsylvania), No Opt. Call BBB- 521,659
Hospital Revenue Bonds (Easton Hospital), Series A of 1992,
6.900%, 1/01/02
7,110 City of Philadelphia, Pennsylvania, Water and Sewer No Opt. Call AAA 7,575,705
Revenue Bonds, Tenth Series, 7.350%, 9/01/04
2,500 The Hospitals and Higher Education Facilities Authority 8/02 at 102 A+ 2,612,725
of Philadelphia, Hospital Revenue Bonds (Children's
Seashore House), Series 1992A, 7.000%, 8/15/12
4,450 The Hospitals and Higher Education Facilities Authority 8/02 at 102 A+ 4,650,651
of Philadelphia, Hospital Revenue Bonds (Children's
Seashore House), Series 1992B, 7.000%, 8/15/22
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8%
The Health and Educational Facilities Board of the City of
Johnson, Tennessee, Hospital Revenue Refunding and Improvement
Bonds, Series 1998C (Johnson City Medical Center Hospital):
2,060 5.125%, 7/01/25 (Pre-refunded to 7/01/23) 7/23 at 100 AAA 1,933,825
1,590 5.125%, 7/01/25 1/09 at 101 AAA 1,484,519
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 1.1%
4,084 General Services Commission (an Agency of the State 9/01 at 101 A 4,211,440
of Texas), as Lessee, Participation Interests, 7.500%, 9/01/22
880 Victoria Housing Finance Corporation, Single Family Mortgage No Opt. Call Aaa 909,269
Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11
40
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTAH - 0.5%
$ 585 Utah Housing Finance Agency, Single Family Mortgage 1/07 at 102 AA $ 593,447
Bonds, 1996 Series C, 6.450%, 7/01/14 (Alternative
Minimum Tax)
1,875 Utah Housing Finance Agency, Single Family Mortgage 7/07 at 101 1/2 AA 1,897,781
Bonds, 1997 Series F, 5.750%, 7/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.9%
3,200 Suffolk Redevelopment and Housing Authority, Multifamily 7/02 at 104 Baa2 3,348,480
Housing Revenue Refunding Bonds, Series 1994 (Chase
Heritage at Dulles Project), 7.000%, 7/01/24
(Mandatory put 7/01/04)
5,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ 5,156,700
Mortgage Bonds, 1992 Series A, 7.100%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.3%
9,500 State of Washington, General Obligation and General No Opt. Call AA+ 10,476,980
Obligation Refunding Bonds, Series 1992A and AT-6,
6.250%, 2/01/11
2,500 Washington Health Care Facilities Authority, Revenue Bonds, 2/02 at 102 AA-*** 2,618,425
Series 1992 (Sacred Heart Medical Center, Spokane),
6.875%, 2/15/12 (Pre-refunded to 2/15/02)
2,000 Washington Public Power Supply System, Nuclear Project 1/01 at 102 Aa1 2,048,200
No. 3 Refunding Revenue Bonds, Series 1990B, 7.375%, 7/01/04
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.3%
1,220 West Virginia Housing Development Fund, Housing Finance 5/02 at 102 AAA 1,249,792
Bonds, 1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.2%
2,985 Silver Lake Sanitary District, Waushara County, Wisconsin, 10/02 at 100 N/R*** 3,180,577
Sewer System Mortgage Revenue Bonds, 8.000%, 10/01/18
(Pre-refunded to 10/01/02)
5,950 Wisconsin Housing and Economic Development Authority, 1/02 at 102 AA 6,177,463
Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12
5,000 Wisconsin Health and Educational Facilities Authority, 2/10 at 101 AA 5,150,500
Revenue Bonds, Series 1999 (Marshfield Clinic), 6.250%, 2/15/18
------------------------------------------------------------------------------------------------------------------------------------
$ 595,688 Total Investments (cost $442,116,279) - 100.0% 454,042,841
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.0% 60,501
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 454,103,342
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
</TABLE>
41
<PAGE>
Statement of
NET ASSETS October 31, 2000
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
------------------------------------------------------------------------------------------------------------------------------------
Assets
<S> <C> <C> <C> <C>
Investments in municipal securities, at market value $825,177,192 $748,153,851 $1,193,385,258 $454,042,841
Temporary investments in short-term
municipal securities, at amortized cost,
which approximates market value -- 7,000,000 -- --
Cash -- 2,035,541 11,396,914 2,831,077
Receivables:
Interest 16,175,725 14,566,991 23,458,077 6,848,026
Investments sold 19,221,465 1,073,891 32,166,567 496,849
Other assets 20,339 20,201 30,681 14,811
------------------------------------------------------------------------------------------------------------------------------------
Total assets 860,594,721 772,850,475 1,260,437,497 464,233,604
------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 10,458,613 -- -- --
Payable for investments purchased 21,481,982 -- 15,221,052 8,037,230
Accrued expenses:
Management fees 435,098 407,240 648,267 243,772
Other 200,953 122,027 391,277 217,532
Preferred share dividends payable 141,842 130,819 228,261 97,814
Common share dividends payable 2,556,052 2,507,647 4,119,496 1,533,914
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 35,274,540 3,167,733 20,608,353 10,130,262
------------------------------------------------------------------------------------------------------------------------------------
Net assets $825,320,181 $769,682,742 $1,239,829,144 $454,103,342
====================================================================================================================================
Preferred shares, at liquidation value $301,000,000 $279,000,000 $ 452,000,000 $165,000,000
====================================================================================================================================
Preferred shares outstanding 12,040 11,160 18,080 6,600
====================================================================================================================================
Common shares outstanding 35,748,959 33,887,474 54,204,488 20,051,949
====================================================================================================================================
Netasset value per Common share outstanding (net assets less Preferred shares
at liquidation value, divided by Common
shares outstanding) $ 14.67 $ 14.48 $ 14.53 $ 14.42
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
Statement of
OPERATIONS Year Ended October 31, 2000
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income $49,555,392 $47,306,859 $78,569,996 $28,756,930
---------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 5,045,678 4,745,799 7,586,054 2,856,170
Preferred shares - auction fees 733,252 683,117 1,111,370 403,186
Preferred shares - dividend disbursing agent fees 50,138 58,138 60,163 30,082
Shareholders' servicing agent fees and expenses 63,211 45,305 95,338 29,771
Custodian's fees and expenses 119,836 105,492 176,730 86,289
Directors' fees and expenses 13,884 13,146 20,250 8,389
Professional fees 6,336 12,284 8,066 32,412
Shareholders' reports - printing and
mailing expenses 41,082 41,539 102,292 45,729
Stock exchange listing fees 32,807 33,183 51,130 30,753
Investor relations expense 85,977 63,866 104,912 38,201
Other expenses 62,634 42,666 59,656 52,391
---------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 6,254,835 5,844,535 9,375,961 3,613,373
Custodian fee credit (75,693) (46,795) (59,918) (39,326)
---------------------------------------------------------------------------------------------------------------------------------
Net expenses 6,179,142 5,797,740 9,316,043 3,574,047
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 43,376,250 41,509,119 69,253,953 25,182,883
---------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Investments
Net realized gain (loss) from
investment transactions (2,187,570) 429,356 1,262,287 (1,476,362)
Change in net unrealized appreciation
(depreciation) of investments 25,862,636 15,449,974 10,564,892 5,658,575
---------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 23,675,066 15,879,330 11,827,179 4,182,213
---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $67,051,316 $57,388,449 $81,081,132 $29,365,096
=================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
Statement of
CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
----------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
----------------------------------------------------------------------------------------------------------------------------------
Operations
<S> <C> <C> <C> <C>
Net investment income $ 43,376,250 $ 43,074,759 $ 41,509,119 $ 41,453,626
Net realized gain (loss) from
investment transactions (2,187,570) 338,511 429,356 5,858,883
Change in net unrealized appreciation
(depreciation) of investments 25,862,636 (70,205,721) 15,449,974 (61,475,965)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations 67,051,316 (26,792,451) 57,388,449 (14,163,456)
----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From undistributed net investment income:
Common shareholders (31,909,307) (34,265,653) (31,279,754) (32,426,412)
Preferred shareholders (12,163,240) (8,670,344) (11,427,939) (8,276,367)
From and in excess of net realized gains
from investment transactions:
Common shareholders (129,711) -- (78,386) --
Preferred shareholders (37,355) -- (21,716) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (44,239,613) (42,935,997) (42,807,795) (40,702,779)
----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 1,719,616 -- 1,695,759
Net proceeds from sale of Preferred shares -- 50,366,822 -- 38,498,158
----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital
share transactions -- 52,086,438 -- 40,193,917
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 22,811,703 (17,642,010) 14,580,654 (14,672,318)
Net assets at the beginning of year 802,508,478 820,150,488 755,102,088 769,774,406
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $825,320,181 $802,508,478 $769,682,742 $755,102,088
==================================================================================================================================
Balance of undistributed net investment
income at the end of year $ 78,116 $ 759,320 $ 218,441 $ 1,404,794
==================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
<TABLE>
<CAPTION>
QUALITY INCOME (NQU) PREMIER INCOME (NPF)
---------------------------------------- ----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 69,253,953 $ 68,385,627 $ 25,182,883 $ 24,338,021
Net realized gain (loss) from
investment transactions 1,262,287 1,695,294 (1,476,362) (103,628)
Change in net unrealized appreciation
(depreciation) of investments 10,564,892 (81,930,200) 5,658,575 (30,317,584)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations 81,081,132 (11,849,279) 29,365,096 (6,083,191)
----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From undistributed net investment income:
Common shareholders (51,692,078) (55,411,229) (18,975,126) (19,324,413)
Preferred shareholders (18,405,376) (13,547,036) (6,795,906) (4,817,350)
From and in excess of net realized gains
from investment transactions:
Common shareholders -- -- -- (45,889)
Preferred shareholders -- -- -- (11,424)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (70,097,454) (68,958,265) (25,771,032) (24,199,076)
----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 6,887,216 -- 2,004,966
Net proceeds from sale of
Preferred shares -- 51,357,544 -- 24,638,050
----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions -- 58,244,760 -- 26,643,016
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 10,983,678 (22,562,784) 3,594,064 (3,639,251)
Net assets at the beginning of year 1,228,845,466 1,251,408,250 450,509,278 454,148,529
----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $1,239,829,144 $1,228,845,466 $454,103,342 $450,509,278
==================================================================================================================================
Balance of undistributed net investment
income at the end of year $ 135,043 $ 943,351 $ 63,250 $ 645,422
==================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
45
<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
accounting principles generally accepted in the United States.
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 the when-issued and delayed delivery purchase commitments. At
October 31, 2000, Investment Quality (NQM) and Premier Income (NPF) had
outstanding when-issued purchase commitments of $21,481,982 and $8,037,230,
respectively. There were no such outstanding purchase commitments in either
Select Quality (NQS) or Quality Income (NQU).
Investment 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, 2000, have been
designated Exempt Interest Dividends. Net realized capital gain and market
discount distributions are subject to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend 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 accounting principles generally
accepted in the United States. 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.
46
<PAGE>
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate 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:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
-------------------------------------------------------------------------------
Number of shares:
Series M 2,500 2,000 3,000 1,000
Series T 2,500 2,000 3,000 2,800
Series W 2,500 2,800 3,000 --
Series W2 -- -- 2,080 --
Series Th 2,040 1,560 4,000 2,800
Series F 2,500 2,800 3,000 --
-------------------------------------------------------------------------------
Total 12,040 11,160 18,080 6,600
===============================================================================
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the fiscal year ended October 31, 2000.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Organization and Offering Costs
Costs incurred by the Funds in connection with their organization and offering
of Preferred shares were recorded as a reduction of the proceeds from the sale
of the shares.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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. Actual
results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
---------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment of
distributions -- 110,452 -- 106,069
============================================================================================================
Preferred shares sold -- 2,040 -- 1,560
============================================================================================================
QUALITY INCOME (NQU) PREMIER INCOME (NPF)
-------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of
distributions -- 427,864 -- 124,386
============================================================================================================
Preferred shares sold -- 2,080 -- 1,000
============================================================================================================
</TABLE>
47
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2000, to shareholders of record
on November 15, 2000, as follows:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $.0715 $.0740 $.0760 $.0765
=========================================================================================================
</TABLE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the fiscal year ended October
31, 2000, were as follows:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $283,564,094 $221,200,614 $277,980,040 $55,931,044
Short-term municipal securities 56,440,000 96,580,000 35,700,000 48,610,000
Sales and maturities:
Long-term municipal securities 275,366,891 232,194,608 306,870,391 40,020,217
Short-term municipal securities 56,440,000 115,980,000 35,700,000 68,200,000
==========================================================================================================
</TABLE>
At October 31, 2000, the identified cost of investments
owned for federal income tax purposes were as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
------------------------------------------------------------------------------
$797,300,725 $736,819,913 $1,161,747,316 $442,116,279
==============================================================================
At October 31, 2000, 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:
INVESTMENT SELECT PREMIER
QUALITY QUALITY INCOME
(NQM) (NQS) (NPF)
-----------------------------------------------------------------------------
Expiration year:
2005 $ -- $13,683 $ --
2006 -- -- --
2007 -- -- 103,628
2008 2,187,570 -- 1,473,467
----------------------------------------------------------------------------
Total $2,187,570 $13,683 $1,577,095
============================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at October 31, 2000, were as follows:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $33,017,624 $25,763,965 $44,167,321 $20,052,869
depreciation (5,141,157) (7,430,027) (12,529,379) (8,126,307)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation $27,876,467 $18,333,938 $31,637,942 $11,926,562
=========================================================================================================
</TABLE>
48
<PAGE>
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 assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
----------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
============================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At October 31, 2000, net assets consisted of:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $301,000,000 $279,000,000 $ 452,000,000 $165,000,000
Common shares, $.01 par value per share 357,490 338,875 542,045 200,519
Paid-in surplus 498,195,678 471,805,615 754,955,275 278,490,106
Balance of undistributed net investment income 78,116 218,441 135,043 63,250
Accumulated net realized gain (loss) from
investment transactions (2,187,570) (14,127) 144,539 (1,577,095)
Net unrealized appreciation of investments 27,876,467 18,333,938 32,052,242 11,926,562
-----------------------------------------------------------------------------------------------------------------------
Net assets $825,320,181 $769,682,742 $1,239,829,144 $454,103,342
=======================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000 1,000,000
=======================================================================================================================
</TABLE>
8. INVESTMENT COMPOSITION
At October 31, 2000, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Consumer Staples 1% --% 4% --%
Education and Civic Organizations 4 1 -- 7
Healthcare 14 9 8 7
Housing/Multifamily 5 7 3 15
Housing/Single Family 9 12 8 5
Tax Obligation/General 14 12 11 11
Tax Obligation/Limited 8 13 4 12
Transportation 14 10 1
U.S. Guaranteed 11 19 29 30
Utilities 9 10 9 5
Water and Sewer 10 6 8 3
Other 1 1 3 4
------------------------------------------------------------------------------------------------
100% 100% 100% 100%
================================================================================================
</TABLE>
Certain long-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 (56%
for Investment Quality (NQM), 65% for Select Quality (NQS), 53% for Quality
Income (NQU) and 57% for Premier Income (NPF)) .
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
49
<PAGE>
Financial HIGHLIGHTS
Selected data for a Common share outstanding throughout each year ended October
31:
<TABLE>
<CAPTION>
Investment Operations Less Distributions
---------------------------------------- ------------------------------------------------------------
From From
and In and In
Net Net Excess of Excess of
Net Investment Investment Capital Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
==============================================================================================================================
INVESTMENT QUALITY (NQM)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $14.03 $1.21 $.66 $1.87 $(.89) $(.34) $ -- $ -- $(1.23)
1999 16.00 1.21 (1.96) (.75) (.96) (.24) -- -- (1.20)
1998 15.77 1.22 .25 1.47 (.98) (.25) (.01) -- (1.24)
1997 15.48 1.25 .30 1.55 (1.01) (.25) -- -- (1.26)
1996 15.65 1.29 (.17) 1.12 (1.03) (.26) -- -- (1.29)
SELECT QUALITY (NQS)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 14.05 1.22 .47 1.69 (.92) (.34) -- -- (1.26)
1999 15.68 1.22 (1.64) (.42) (.96) (.24) -- -- (1.20)
1998 15.48 1.23 .19 1.42 (.97) (.25) -- -- (1.22)
1997 15.12 1.25 .37 1.62 (1.01) (.25) -- -- (1.26)
1996 15.29 1.27 (.17) 1.10 (1.01) (.26) -- -- (1.27)
QUALITY INCOME (NQU)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 14.33 1.28 .21 1.49 (.95) (.34) -- -- (1.29)
1999 15.83 1.27 (1.48) (.21) (1.03) (.25) -- -- (1.28)
1998 15.73 1.27 .12 1.39 (1.03) (.26) -- -- (1.29)
1997 15.44 1.29 .29 1.58 (1.03) (.26) -- -- (1.29)
1996 15.43 1.30 .02 1.32 (1.03) (.28) -- -- (1.31)
PREMIER INCOME (NPF)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 14.24 1.26 .21 1.47 (.95) (.34) -- -- (1.29)
1999 15.76 1.22 (1.51) (.29) (.97) (.24) -- -- (1.21)
1998 15.62 1.22 .17 1.39 (1.00) (.25) -- -- (1.25)
1997 15.38 1.25 .31 1.56 (1.03) (.24) (.04) (.01) (1.32)
1996 15.34 1.27 .12 1.39 (1.01) (.26) (.06) (.02) (1.35)
==============================================================================================================================
</TABLE>
Total Returns
-------------------
Organization
and Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
================================================================================
INVESTMENT QUALITY (NQM)
Year Ended 10/31:
2000 $-- $14.67 $12.8750 3.70% 11.38%
1999 (.02) 14.03 13.3125 (8.51) (6.64)
1998 -- 16.00 15.5000 5.97 7.97
1997 -- 15.77 15.5625 10.82 8.68
1996 -- 15.48 15.0000 6.13 5.70
SELECT QUALITY (NQS)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 -- 14.48 13.0625 6.85 10.02
1999 (.01) 14.05 13.1250 (13.63) (4.55)
1998 -- 15.68 16.1875 10.96 7.77
1997 -- 15.48 15.5000 9.43 9.35
1996 -- 15.12 15.1250 9.71 5.71
QUALITY INCOME (NQU)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 -- 14.53 13.1250 .73 8.37
1999 (.01) 14.33 14.0000 (11.17) (3.20)
1998 -- 15.83 16.8125 9.64 7.37
1997 -- 15.73 16.3125 14.22 8.81
1996 -- 15.44 15.2500 10.61 6.93
PREMIER INCOME (NPF)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 -- 14.42 13.6250 9.71 8.22
1999 (.02) 14.24 13.3125 (17.25) (3.71)
1998 -- 15.76 17.1250 10.29 7.49
1997 -- 15.62 16.5000 16.81 8.85
1996 -- 15.38 15.1250 11.00 7.51
================================================================================
<PAGE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------
Before Credit
--------------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
--------------------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C>
2000 $825,320 1.24% 8.57% .78% 5.37%
1999 802,508 1.17 7.85 .78 5.24
1998 820,150 1.12 7.66 .78 5.31
1997 809,337 1.13 8.08 .78 5.56
1996 798,349 1.14 8.32 .78 5.71
SELECT QUALITY (NQS)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 769,683 1.22 8.67 .77 5.48
1999 755,102 1.17 8.07 .78 5.38
1998 769,774 1.14 7.87 .78 5.40
1997 759,770 1.15 8.22 .78 5.59
1996 745,059 1.15 8.39 .78 5.69
QUALITY INCOME (NQU)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1,239,829 1.21 8.95 .77 5.65
1999 1,228,845 1.17 8.27 .77 5.46
1998 1,251,408 1.13 8.08 .77 5.49
1997 1,238,536 1.15 8.35 .77 5.62
1996 1,219,663 1.15 8.44 .77 5.67
PREMIER INCOME (NPF)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 454,103 1.27 8.84 .80 5.59
1999 450,509 1.19 7.98 .80 5.35
1998 454,149 1.15 7.80 .79 5.38
1997 448,807 1.17 8.14 .80 5.57
1996 442,153 1.18 8.29 .81 5.66
============================================================================================
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
------------------------------------------------------------------------------ Municipal Auction Rate Cumulative
After Credit** Preferred Stock at End of Year
---------------------------------------------------------------- -------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total Aggregate Liquidation
Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset
to Common to Common Including Including Turnover Outstanding Value Per Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Share Per Share
====================================================================================================================================
INVESTMENT QUALITY (NQM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000 1.22% 8.59% .77% 5.38% 35% $ 301,000 $ 25,000 $68,548
1999 1.16 7.86 .77 5.24 16 301,000 25,000 66,654
1998 1.12 7.66 .78 5.31 7 250,000 25,000 82,015
1997 1.13 8.08 .78 5.56 14 250,000 25,000 80,934
1996 1.14 8.32 .78 5.71 8 250,000 25,000 79,835
SELECT QUALITY (NQS)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.21 8.68 .77 5.48 30 279,000 25,000 68,968
1999 1.16 8.08 .78 5.39 27 279,000 25,000 67,661
1998 1.14 7.87 .78 5.40 7 240,000 25,000 80,185
1997 1.15 8.22 .78 5.59 10 240,000 25,000 79,143
1996 1.15 8.39 .78 5.69 13 240,000 25,000 77,610
QUALITY INCOME (NQU)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.20 8.95 .76 5.65 23 452,000 25,000 68,575
1999 1.16 8.27 .77 5.47 13 452,000 25,000 67,967
1998 1.13 8.08 .77 5.49 19 400,000 25,000 78,213
1997 1.15 8.35 .77 5.62 9 400,000 25,000 77,408
1996 1.15 8.44 .77 5.67 11 400,000 25,000 76,229
PREMIER INCOME (NPF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.26 8.85 .79 5.60 9 165,000 25,000 68,804
1999 1.18 7.99 .79 5.35 11 165,000 25,000 68,259
1998 1.15 7.80 .79 5.38 19 140,000 25,000 81,098
1997 1.17 8.14 .80 5.57 5 140,000 25,000 80,144
1996 1.18 8.29 .81 5.66 8 140,000 25,000 78,956
====================================================================================================================================
* 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.
** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to preferred shareholders; income ratios reflect income earned on assets
attributable to Preferred shares.
</TABLE>
50-51
<PAGE>
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
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.
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. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvest ment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
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.
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 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 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 reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. 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 at (800)
257-8787.
52
<PAGE>
Fund
INFORMATION
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
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, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended October 31, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
53
<PAGE>
Serving Investors
FOR GENERATIONS
PHOTO OF: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Invest well.
Look ahead.
LEAVE YOUR MARK.(SM)
LOGO: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive FAN-3-10-00
Chicago, IL 60606 o www.nuveen.com