Nuveen Exchange-Traded Funds
Providing tax-free income
to help you live your dreams.
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
SEMIANNUAL REPORT/APRIL 30, 1995
Photo of man reading statement on porch.
CONTENTS
3 Dear shareholder
5 Answering your questions
8 Fund performance
10 Amendment to dividend reinvestment plan
11 Getting to know your fund
13 Portfolio of investments
47 Statement of net assets
48 Statement of operations
49 Statement of changes in net assets
51 Notes to financial statements
60 Financial highlights
<PAGE>
Dear shareholder
"Providing secure income remains our top priority"
Photo of Richard J. Franke, Chairman of the Board
The 12 months ended April 30, 1995, was a difficult period for the bond
markets. Since February 1994, the Federal Reserve Board has raised interest
rates seven times to fend off future inflation, and during this period the
prices of all bonds and bond funds declined. Since April 30, the bond markets
have seen marked improvement.
This period of unusually high volatility and uncertainty has brought home a
basic fact about fixed-income securities: interest rates are subject to
change, and sometimes the changes can have dramatic effects on net asset
values. At Nuveen, we believe that the best approach to tax-free investing in
such tumultuous times is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives well, providing an
attractive level of tax free income while holding portfolio values well in
light of market conditions.
Looking first at income, on April 30, current yields on share prices for the
funds covered in this report ranged from 7.16% to 7.33%. To equal these
yields, an investor in the 36% federal income tax bracket would need to earn
at least 11.19% on taxable alternatives. This taxable yield is difficult to
achieve on investments of comparable quality.
The fact that your Fund is leveraged means that its net asset value per
share will be somewhat more sensitive to interest rate changes, both upward
and downward, than unleveraged funds. However, on a total return basis, for
the one-year period ended April 30, all of the funds covered in this report
ranked in the top quartile among 65 closed-end national leveraged funds ranked
by Lipper Analytical Services.
As we have noted in past reports, the municipal market's supply and demand
fundamentals continue to be sound. To put these trends in perspective, in 1994
the supply of new municipal bonds declined by approximately 40% from 1993, a
trend expected to continue in 1995. At the same time, demand for tax-free
bonds, which has been subdued over the last 12 months as a result of the
market's extraordinary volatility, seems to be resuming its long-term upward
trend as investors recognize the exceptional yields tax-free bonds offer at
current price levels.
This combination of lower supply, which may be reduced further by the high
volume of bond calls expected in 1995, and the likelihood of rising demand
should help support municipal bond prices in the long term.
Through our value approach to investing--a disciplined approach to security
selection and portfolio construction supported by one of the largest and most
respected research teams in the municipal industry--we will continue to pursue
the objectives of your Fund: attractive tax-free income and the enhancement of
portfolio value relative to the municipal bond market.
In closing, I want to welcome new investors to the Nuveen Exchange-Traded
Funds and thank those who have been with us for some time. All of us at Nuveen
appreciate your confidence in our family of municipal bond funds, and we look
forward to helping you reach your tax-free investment objectives in the
future.
Sincerely,
Richard J. Franke
Chairman of the Board
June 15, 1995
<PAGE>
Answering your questions
We spoke recently with Tom Spalding, head of Nuveen's portfolio management
team, and asked him about developments in the municipal market and the outlook
for Nuveen's Tax-Free Exchange-Traded Funds.
How did my Fund hold its value compared with the market?
These have been difficult times for all fixed-income investors. The Bond Buyer
40 index--a measure of municipal market value--declined by 0.37% over the past
12 months and 30-year Treasury bonds declined by 0.90% during the year. The
net asset values of the funds covered in this report, however, showed modest
gains from levels of a year ago.
Viewed in that context, the Nuveen funds covered in this report held their
value well for the 12 months ended April 30, 1995.
The fact that these funds are leveraged also increases the impact of
interest rate changes on the funds' net asset values per common share. Keep in
mind, however, that leverage also has enabled these funds to generate a higher
level of tax-free income than unleveraged funds.
Since my Fund is leveraged, will rising short-term interest rates affect my
dividends?
With the long-term bonds in these funds' portfolios yielding around 7.0% and
the average 7-day rate on short-term preferred shares averaging 4.0% over the
past three months, leverage has provided an important income benefit to our
shareholders over the past year.
Although the funds' core dividends are set to provide relatively stable
income, steady increases in short-term interest rates will affect these
dividends over time.
In general, our leveraged funds' dividends continue to be highly attractive
compared with both unleveraged and taxable alternatives. All things
considered, prudent leverage can provide highly attractive returns in a
variety of market conditions to investors who understand its uses, benefits,
and characteristics, and are willing to accept somewhat higher short-term NAV
fluctuations in anticipation of greater long-range returns.
Will bond calls affect my income or the stability of the net asset value of my
shares?
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher are replaced with lower-yielding bonds in today's market. The effect of
bond calls--both on income and net asset values--depends to some extent on the
age of a fund and the types of bonds in its portfolio.
Bond calls may have an effect on asset values especially for older funds
that hold high coupon bonds that may be subject to calls. These bonds also
often are priced at premiums to their par values and to their call prices. As
we saw last year, this premium is a "cushion" that can soften the effect of
rising and falling interest rates. As these bonds approach their call dates,
the premiums gradually approach the bonds' call prices, potentially reducing
net asset values.
Newer funds, on the other hand, primarily hold bonds priced at discounts to
their par values. As a result, these funds will experience fewer calls. At the
same time, these bonds are more sensitive to interest rate changes, both up
and down, and they are unaffected by the declining premium values related to
called bonds.
Of course, we manage all of our portfolios with calls in mind. As part of
our basic management process, we continually evaluate opportunities to sell
bonds approaching their call dates and to reinvest the proceeds in bonds we
think have high potential to provide above-market returns.
<PAGE>
<TABLE>
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQM
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed steady dividends throughout the year, with just a
modest reduction in February.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0920
6/94 $0.0920
7/94 $0.0920
8/94 $0.0920
9/94 $0.0920
10/94 $0.0920
11/94 $0.0920
12/94 $0.0920
1/95 $0.0920
2/95 $0.0895
3/95 $0.0895
4/95 $0.0895
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.28%
Taxable-equivalent yield 11.38%
Annual total return on NAV 7.97%
Taxable-equivalent total return 12.16%
Share price $14.75
NAV $15.26
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NQS
Dividends of NQS have been consistently at an attractive level despite a
modest reduction in February, reflecting the effect of bond calls.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0900
6/94 $0.0900
7/94 $0.0900
8/94 $0.0900
9/94 $0.0900
10/94 $0.0900
11/94 $0.0900
12/94 $0.0900
1/95 $0.0900
2/95 $0.0870
3/95 $0.0870
4/95 $0.0870
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.33%
Taxable-equivalent yield 11.45%
Annual total return on NAV 8.55%
Taxable-equivalent total return 12.80%
Share price $14.25
NAV $14.77
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NQU
In addition to supplemental dividends paid in May and August, the Fund paid
steady monthly dividends, with a modest reduction in February.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0875 $0.0110
6/94 $0.0875
7/94 $0.0875
8/94 $0.0875 $0.0100
9/94 $0.0875
10/94 $0.0875
11/94 $0.0875
12/94 $0.0875
1/95 $0.0875
2/95 $0.0855
3/95 $0.0855
4/95 $0.0855
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.26%
Taxable-equivalent yield 11.34%
Annual total return on NAV 7.76%
Taxable-equivalent total return 11.92%
Share price $14.125
NAV $14.90
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
NPF
Shareholders enjoyed a dividend increase during the 12 months ended April 30.
In addition, the Fund paid supplemental dividends in May and August and a
capital gains distribution in December.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0815 $0.0100
6/94 $0.0815
7/94 $0.0815
8/94 $0.0835 $0.0100
9/94 $0.0835
10/94 $0.0835
11/94 $0.0835
12/94 $0.0835 $0.0562
1/95 $0.0835
2/95 $0.0835
3/95 $0.0835
4/95 $0.0835
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.16%
Taxable-equivalent yield 11.19%
Annual total return on NAV 9.15%
Taxable-equivalent total return 13.20%
Share price $14.00
NAV $14.80
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
Amendment to Dividend Reinvestment Plan
Effective October 1, 1995, your Fund's Dividend Reinvestment Plan will be
amended in order to enhance the ability of the Plan Agent to obtain the best
execution when making open-market purchases of Fund shares in connection with
the Plan. As of the effective date, the Plan Agent, United States Trust
Company of New York, may make Plan purchases in advance of the payment date of
the applicable Fund distribution, provided that settlement for such purchases
shall occur no earlier than the payment date for such distribution.
<PAGE>
Getting to know your fund
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1995) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given federal and state income tax rate
would need to obtain from a fully taxable investment to equal the fund's
stated annualized yield on share price. In this report, this tax rate is
assumed to be 36% for shareholders, based on incomes of $117,950-$256,500 for
investors filing singly, $143,600-$256,500 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A fund structure that enhances the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. Preferred shareholders receive short-term tax-free income, while the
proceeds can be used to purchase additional long-term bonds, thus increasing
the portfolio's income for common shareholders.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as are deemed advisable. No
shares were repurchased during the 6-months ended April 30, 1995. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQM)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 1.1%
$ 5,630,000 Alaska Housing Finance Corporation, Insured
Mortgage Program, 7.800%, 12/01/30 12/00 at 102 Aa $ 5,871,020
3,000,000 Valdez Marine Terminal (BP Pipeline, Inc.),
5.850%, 8/01/25 8/03 at 102 AA- 2,750,310
CALIFORNIA - 8.8%
12,150,000 California Health Facilities Financing Authority
(Kaiser Permanente), 5.600%, 5/01/33 5/03 at 102 Aa2 10,959,665
5,700,000 California Public Works Board (Regents of the
University of California), 5.500%, 6/01/21 6/03 at 102 Con(A1) 5,052,936
9,740,000 Huntington Park Redevelopment Agency, Single
Family Mortgage, 8.000%, 12/01/19 No Opt. Call Aaa 12,391,228
6,640,000 Lancaster Redevelopment Agency, Tax Allocation,
5.700%, 8/01/23 8/03 at 102 Aaa 6,215,903
Loma Linda University Medical Center:
4,000,000 6.500%, 12/01/18 12/03 at 102 BBB 3,744,120
10,325,000 5.000%, 12/01/22 12/03 at 102 Aaa 8,637,276
5,000,000 Los Angeles Department of Water and Power,
6.400%, 11/01/31 11/01 at 102 AA 5,096,400
13,145,000 Perris Single Family Mortgage, Alternative
Minimum Tax, 8.200%, 9/01/23 No Opt. Call Aaa 17,393,464
COLORADO - 1.9%
4,940,000 Castle Pines Metropolitan District, General Obligation,
7.625%, 12/01/15 12/00 at 102 Aaa 5,491,798
6,350,000 City and County of Denver Airport System,
10.500%, 12/01/00 6/95 at 100 Con(Baa) 6,379,845
3,085,000 City and County of Denver Airport System,
Alternative Minimum Tax, 8.000%, 11/15/25 11/01 at 100 Baa 3,241,348
DISTRICT OF COLUMBIA - 0.7%
5,275,000 District of Columbia Housing Finance Agency,
Alternative Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 5,595,773
FLORIDA - 5.5%
4,000,000 Hillsborough County Port District (Tampa Port
Authority), 8.250%, 6/01/09 12/00 at 102 Baa1 4,500,360
20,000,000 Jacksonville Health Facilities Authority (Daughters
of Charity Health System-St. Vincent),
7.500%, 11/01/15 (Pre-refunded to 11/01/00) 11/00 at 102 Aaa 22,717,200
Orange County Housing Finance Authority:
3,535,000 7.500%, 7/01/10 7/00 at 103 Aaa 3,811,013
11,035,000 7.600%, 1/01/24 7/00 at 103 Aaa 11,700,631
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
GEORGIA - 7.2%
Georgia Municipal Electric Authority:
$ 5,990,000 8.375%, 1/01/16 1/98 at 102 A+ $ 6,596,188
5,250,000 8.125%, 1/01/17 1/98 at 102 A+ 5,701,920
5,000,000 8.375%, 1/01/20 1/97 at 102 A+ 5,339,300
2,250,000 6.500%, 1/01/20 No Opt. Call A+ 2,343,218
3,785,000 Atlanta Urban Residential Finance Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.250%, 10/01/21 10/98 at 103 AAA 4,025,802
Burke County Development Authority, Pollution
Control (Georgia Power Company):
5,600,000 10.600%, 10/01/15 10/95 at 102 A3 5,839,232
10,000,000 5.750%, 9/01/23 9/98 at 102 A2 9,227,100
10,000,000 Monroe County Development Authority, Pollution
Control (Georgia Power Company),
6.750%, 10/01/24 10/99 at 102 A2 10,191,800
7,325,000 Wayne County Development Authority, Solid Waste
Disposal (ITT Rayonier Inc.), Alternative
Minimum Tax, 8.000%, 7/01/15 1/00 at 102 Baa2 7,776,000
ILLINOIS - 6.0%
5,000,000 Illinois Health Facilities Authority (ServantCor),
7.875%, 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 BBB+ 5,621,700
3,305,000 Illinois Health Facilities Authority (Riverside Senior
Living Center Project), 7.500%, 11/01/20 11/00 at 102 Baa1 3,375,099
4,000,000 Illinois Dedicated Tax (Civic Center),
9.500%, 12/15/15 (Pre-refunded to 12/15/95) 12/95 at 103 Aaa 4,236,640
7,500,000 Cook County Community College District No. 508,
8.750%, 1/01/07 No Opt. Call Aaa 9,407,850
5,900,000 Madison County Community Unit School
District No. 7, General Obligation, 5.850%, 2/01/13 No Opt. Call Aaa 5,771,970
3,585,000 Pekin Multi-Family Housing, 6.875%, 5/01/22 5/03 at 103 AAA 3,692,335
3,335,000 Peoria, Pekin and Waukegan (GNMA), Alternative
Minimum Tax, 7.875%, 8/01/22 8/00 at 103 AAA 3,551,642
6,250,000 Regional Transportation Authority, 9.000%, 6/01/07 No Opt. Call Aaa 8,081,938
Southwestern Illinois Development Authority
(LaClede Steel Company), Alternative Minimum Tax:
775,000 8.375%, 8/01/08 8/00 at 103 A- 838,690
2,910,000 8.500%, 8/01/20 8/00 at 103 A- 3,154,178
KANSAS - 0.9%
5,220,000 Topeka Industrial (Sunwest Hotel Corporation
Project), Alternative Minimum Tax,
9.500%, 10/01/16 (Pre-refunded to 8/15/16) 8/16 at 100 AAA 7,041,258
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
KENTUCKY - 0.7%
Kentucky Development Finance Authority (Ashland
Hospital Corporation):
$ 1,550,000 9.750%, 8/01/11 (Pre-refunded to 2/01/98) 2/98 at 102 A- $ 1,768,225
950,000 9.750%, 8/01/11 2/98 at 102 A- 1,070,061
2,695,000 Kentucky Housing Corporation, Alternative
Minimum Tax, 8.100%, 1/01/22 7/00 at 102 AAA 2,868,854
LOUISIANA - 5.8%
Louisiana Public Facilities Authority (West Jefferson
Medical Center):
2,550,000 7.900%, 12/01/15 (Pre-refunded to 12/01/98) 12/98 at 102 Aaa 2,848,988
15,830,000 7.900%, 12/01/15 12/98 at 102 Aaa 17,285,094
3,700,000 Louisiana Public Facilities Authority, Extended Care
(Comm-Care Corporation), 11.000%, 2/01/04 No Opt. Call BBB 4,479,775
5,460,000 East Baton Rouge Mortgage Finance Authority,
Alternative Minimum Tax, 7.875%, 8/01/23 8/00 at 102 Aaa 5,787,764
11,545,000 Orleans Parish School Board, 9.000%, 2/01/09 No Opt. Call Aaa 15,367,203
MAINE - 0.7%
5,510,000 Maine Housing Authority, Alternative Minimum Tax,
6.875%, 11/15/23 10/04 at 102 AA- 5,594,579
MARYLAND - 0.3%
2,000,000 Gaithersburg Economic Development (Asbury
Methodist Home), 7.850%, 1/01/20 (Pre-refunded
to 1/01/00) 1/00 at 102 N/R 2,269,240
MASSACHUSETTS - 6.6%
10,310,000 Massachusetts Health and Educational Facilities
Authority (Goddard Memorial Hospital),
9.000%, 7/01/15 7/00 at 102 BBB 11,335,020
1,250,000 Massachusetts Housing Finance Agency, Alternative
Minimum Tax, 8.100%, 8/01/23 8/99 at 102 BBB+ 1,300,563
Massachusetts Water Resources Authority:
15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 16,948,500
4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 4,498,000
16,250,000 Boston City Hospital (FHA-Insured), 7.625%, 2/15/21
(Pre-refunded to 8/15/00) 8/00 at 102 Aaa 18,461,950
MINNESOTA - 2.8%
5,000,000 Dakota and Washington Counties, Anoka Housing
Authority (GNMA), Alternative Minimum Tax,
8.450%, 9/01/19 No Opt. Call Aaa 6,740,150
2,860,000 Hopkins Elderly Housing (St. Therese Southwest, Inc.),
6.500%, 3/01/19 3/04 at 102 AA 2,883,995
11,730,000 St. Paul Housing and Redevelopment Authority,
9.250%, 12/01/97 No Opt. Call A1 12,692,682
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MISSISSIPPI - 0.7%
$ 1,820,000 Mississippi Home Corporation, 9.250%, 3/01/12 9/00 at 103 Aaa $ 1,970,277
3,340,000 Mississippi Housing Finance Corporation, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.250%, 10/15/18 10/99 at 102 Aaa 3,545,377
NEBRASKA - 0.4%
3,200,000 Nebraska Higher Education Loan Program,
Alternative Minimum Tax, 5.875%, 6/01/14 6/04 at 102 A 2,940,256
NEVADA - 0.7%
5,400,000 Nevada General Obligation, Limited Tax,
8.000%, 10/01/15 (Pre-refunded to 10/01/97) 10/97 at 102 Aaa 5,901,390
NEW MEXICO - 1.3%
9,400,000 Los Alamos County Utility System, 7.750%, 1/01/15
(Pre-refunded to 1/01/97) 1/97 at 102 Baa1 10,036,568
NEW YORK - 14.9%
10,000,000 New York State Medical Care Facilities Finance
Agency (Columbia-Presbyterian), 8.000%, 2/15/25
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 10,891,600
5,000,000 New York State Medical Care Facilities Finance
Agency (St. Luke's-Roosevelt Hospital Center),
7.450%, 2/15/29 (Pre-refunded to 2/15/00) 2/00 at 102 Aaa 5,608,800
3,500,000 New York State Mortgage Agency, Homeowner
Mortgage, Alternative Minimum Tax,
7.950%, 4/01/22 6/00 at 102 Aa 3,685,290
Dormitory Authority of the State of New York
(City University):
5,890,000 9.250%, 7/01/98 No Opt. Call Baa1 6,599,215
14,235,000 8.750%, 7/01/02 No Opt. Call Baa1 17,001,430
10,000,000 7.875%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 BBB 11,475,200
Dormitory Authority of the State of New York
(State University):
7,935,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 8,868,791
1,025,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 AAA 1,145,622
6,655,000 New York City Municipal Assistance Corporation,
6.875%, 7/01/07 7/97 at 102 AA- 7,032,272
New York City Municipal Water Finance Authority:
10,200,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 11,521,104
6,395,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 A- 6,716,157
5,105,000 6.000%, 6/15/20 6/00 at 100 A- 4,906,364
4,200,000 New York City Industrial Development Agency
(American Airlines, Inc.), Alternative Minimum Tax,
8.000%, 7/01/20 1/99 at 102 Baa3 4,415,334
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 16,900,000 Triborough Bridge and Tunnel Authority,
7.625%, 1/01/14 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa $ 17,595,604
NORTH CAROLINA - 1.0%
5,000,000 North Carolina Municipal Power Agency No. 1
(Catawba), 8.500%, 1/01/17 (Pre-refunded to
1/01/96) 1/96 at 102 Aaa 5,225,950
2,795,000 Charlotte FHA-Insured (Double Oaks Apartments),
7.350%, 5/15/26 11/07 at 100 AAA 2,991,572
OKLAHOMA - 1.4%
10,500,000 Tulsa Municipal Airport Trust (American Airlines, Inc.),
9.500%, 6/01/20 12/95 at 102 Baa2 11,005,575
OREGON - 0.6%
2,500,000 Oregon Department of General Services, Certificates
of Participation, 7.500%, 9/01/15 (Pre-refunded to
9/01/00) 9/00 at 102 Aaa 2,831,775
2,500,000 Northern Wasco County People's Utility District
(Bonneville Power Administration), 5.200%, 12/01/24 12/03 at 102 AA 2,190,225
PENNSYLVANIA - 3.9%
8,605,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax,
7.650%, 10/01/23 10/00 at 102 AA 9,112,437
4,905,000 McKean County Hospital Authority (Bradford
Hospital), 8.875%, 10/01/20 10/00 at 102 BBB- 5,801,045
Philadelphia Water and Sewer:
1,800,000 9.000%, 10/01/01 (Pre-refunded to 10/01/95) 10/95 at 102 AAA 1,871,532
3,500,000 9.100%, 10/01/02 (Pre-refunded to 10/01/95) 10/95 at 102 AAA 3,640,560
500,000 9.100%, 12/01/02 (Pre-refunded to 12/01/95) 12/95 at 102 AAA 522,255
2,760,000 9.100%, 12/01/03 (Pre-refunded to 12/01/95) 12/95 at 102 AAA 2,882,848
1,105,000 9.100%, 12/01/04 (Pre-refunded to 12/01/95) 12/95 at 102 AAA 1,154,184
7,040,000 Philadelphia Water and Wastewater System,
5.000%, 6/15/16 6/03 at 100 Aaa 6,141,696
RHODE ISLAND - 1.3%
10,000,000 Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax,
8.050%, 4/01/22 10/00 at 102 AA+ 10,627,300
SOUTH CAROLINA - 3.0%
3,475,000 South Carolina Housing Finance Authority,
Alternative Minimum Tax, 7.750%, 7/01/22 7/00 at 102 AA 3,655,457
19,800,000 Piedmont Municipal Power Agency, 7.250%, 1/01/22 1/96 at 102 A- 20,397,960
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
SOUTH DAKOTA - 0.5%
$ 4,140,000 South Dakota Housing Development Authority,
6.000%, 4/01/19 10/95 at 102 A1 $ 4,042,213
TENNESSEE - 2.4%
Tennessee Housing Development Agency,
Homeownership Program, Alternative Minimum Tax:
4,860,000 7.825%, 7/01/15 7/12 at 100 A1 5,170,797
12,580,000 8.125%, 7/01/21 7/98 at 103 A1 13,426,634
TEXAS - 6.5%
10,555,000 Brazos River Authority, Pollution Control (Houston
Lighting and Power Company), Alternative
Minimum Tax, 9.875%, 8/01/15 8/95 at 102 A3 10,891,388
Brazos River Authority, Pollution Control (Texas
Utilities Electric Company), Alternative Minimum Tax:
12,110,000 8.250%, 12/01/16 12/96 at 102 Baa2 12,786,344
4,295,000 8.250%, 1/01/19 1/99 at 102 Baa2 4,669,137
2,000,000 8.125%, 2/01/20 2/00 at 102 Baa2 2,165,500
3,500,000 Brazos River Authority, Pollution Control (Texas
Utilities Electric Company), 5.500%, 5/01/22 11/03 at 102 Aaa 3,193,540
2,270,000 Cameron County Housing Finance Corporation
(GNMA), 7.850%, 3/01/24 9/00 at 103 Aaa 2,412,102
Dallas Housing Corporation (Section 8 Assisted
Projects):
1,000,000 7.700%, 8/01/05 8/00 at 102 A 1,070,560
2,000,000 7.850%, 8/01/13 8/00 at 102 A 2,127,580
10,000,000 Harris County Hospital District, 7.400%, 2/15/10 No Opt. Call Aaa 11,487,100
UTAH - 1.9%
Intermountain Power Agency:
9,250,000 7.500%, 7/01/16 7/96 at 102 AA 9,624,810
5,480,000 7.750%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 102 Aaa 5,776,632
VERMONT - 0.5%
3,955,000 Vermont Housing Finance Agency, Alternative
Minimum Tax, 8.150%, 5/01/25 11/00 at 102 A1 4,198,153
WASHINGTON - 6.7%
11,320,000 Washington General Obligation, 4.750%, 10/01/13 10/03 at 100 AA 9,586,568
3,000,000 Washington Health Care Facilities Authority
(Franciscan Health System), 7.250%, 7/01/15 7/00 at 102 Aaa 3,223,800
Washington Public Power Supply System, Nuclear
Project No. 1:
1,745,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 1,944,523
1,360,000 7.500%, 7/01/15 7/99 at 102 AA 1,467,481
2,000,000 8.000%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 2,305,340
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 5,650,000 Washington Public Power Supply System, Nuclear
Project No. 2, 7.000%, 7/01/12 7/00 at 102 AA $ 5,891,312
Washington Public Power Supply System, Nuclear
Project No. 3:
13,900,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 15,396,473
14,500,000 5.600%, 7/01/15 7/03 at 102 Aaa 13,410,613
WEST VIRGINIA - 0.2%
2,000,000 West Virginia Hospital Finance Authority (Fairmont
General Hospital), 6.625%, 3/01/19 3/04 at 102 BBB- 1,863,160
WISCONSIN - 0.5%
3,145,000 Wisconsin Housing and Economic Development
Authority, Home Ownership, 7.600%, 3/01/15 9/99 at 102 AA 3,313,727
PUERTO RICO - 0.5%
3,450,000 Puerto Rico Highway and Transportation Authority,
5.500%, 7/01/19 7/03 at 101 1/2 A 3,129,150
$721,770,000 Total Investments - (cost $726,402,735) - 97.9% 774,048,452
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.4%
$ 200,000 California Health Facilities Financing Authority
(St. Joseph Health System), Variable Rate Demand
Bonds, 5.000%, 7/01/13t VMIG-1 200,000
300,000 Kemmerer Pollution Control (Exxon Project),
Series 1984, Variable Rate Demand Bonds,
5.000%, 11/01/14t A-1+ 300,000
2,410,000 Massachusetts Health and Educational Facilities
Authority (Community Health Center Capital Fund),
Variable Rate Demand Bonds, 4.850%, 3/01/15t A-2 2,410,000
$ 2,910,000 Total Temporary Investments - 0.4% 2,910,000
============
Other Assets Less Liabilities - 1.7% 13,489,805
Net Assets - 100% $790,448,257
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 53 $384,031,284 49%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 17 99,342,848 13
PORTFOLIO OF A+ A1 10 64,564,041 8
INVESTMENTS A, A- A, A2, A3 15 84,268,701 11
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 21 139,572,338 18
TEMPORARY Non-rated Non-rated 1 2,269,240 1
INVESTMENTS):
TOTAL 117 $774,048,452 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. (NQS)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.4%
$ 2,900,000 Arab Water Works Board, 7.050%, 8/01/16 8/01 at 102 Aaa $ 3,116,282
ALASKA - 2.0%
16,250,000 Valdez Marine Terminal (BP Pipelines, Inc.),
5.500%, 10/01/28 10/03 at 102 AA- 14,383,688
ARKANSAS - 1.6%
5,980,000 Arkansas Development Finance Authority, Single
Family Mortgage, 8.000%, 8/15/11 8/01 at 103 AA 6,469,044
4,500,000 Little Rock Hotel and Restaurant, Gross Receipts
Tax, 7.375%, 8/01/15 No Opt. Call A 5,248,485
CALIFORNIA - 5.7%
3,200,000 California Department of Water Resources (Central
Valley Project), 4.875%, 12/01/27 12/03 at 101 AA 2,575,584
4,000,000 California Statewide Communities Development
Authority, Certificates of Participation (Sisters
of Charity Leavenworth), 5.000%, 12/01/23 12/03 at 102 Aa 3,280,440
7,000,000 Los Angeles Department of Water and Power,
Electric Plant, 5.375%, 9/01/23 9/03 at 102 AA 6,199,060
6,710,000 Los Angeles Department of Water and Power,
Waterworks System, 4.500%, 5/15/11 5/03 at 102 AA 5,483,479
21,800,000 Los Angeles County Transportation Commission,
Sales Tax, 6.750%, 7/01/20 (Pre-refunded
to 7/01/01) 7/01 at 102 Aaa 24,051,068
COLORADO - 5.9%
City and County of Denver Airport System,
Alternative Minimum Tax:
5,000,000 7.750%, 11/15/21 11/01 at 102 Baa 5,231,350
12,150,000 6.750%, 11/15/22 11/02 at 102 Baa 11,896,673
20,000,000 8.750%, 11/15/23 11/01 at 102 Baa 22,178,200
3,725,000 Jefferson County, Single Family Mortgage
8.875%, 10/01/13 4/01 at 103 Aaa 4,019,648
CONNECTICUT - 2.4%
Connecticut Development Authority (Alzheimer's
Resource Center):
7,500,000 10.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 103 N/R 9,696,825
7,885,000 7.250%, 8/15/21 8/04 at 102 N/R 7,907,867
DISTRICT OF COLUMBIA - 0.2%
1,635,000 District of Columbia Housing Finance Agency,
Alternative Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 1,734,424
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
FLORIDA - 3.3%
Jacksonville Electric Authority:
$ 4,500,000 7.500%, 10/01/02 (Pre-refunded to 10/01/97) 10/97 at 101 1/2 Aaa $ 4,844,565
14,250,000 6.750%, 10/01/21 (Pre-refunded to 10/01/00) 10/00 at 101 1/2 Aaa 15,634,815
4,000,000 Orlando-Orange County Expressway, 5.125%, 7/01/20 7/03 at 102 Aaa 3,533,840
GEORGIA - 1.1%
2,940,000 Atlanta Urban Residential Finance Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.250%, 10/01/21 10/98 at 103 AAA 3,127,043
5,000,000 Burke County Development Authority, Pollution
Control (Georgia Power Company), 5.750%, 9/01/23 9/98 at 102 A2 4,613,550
HAWAII - 2.5%
16,000,000 Hawaii Department of Budget and Finance
(Kapiolani Health Care System), 7.650%, 7/01/19
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 18,435,200
ILLINOIS - 3.1%
3,100,000 Illinois Development Finance Authority (Marriott
Retirement Communities, Inc.-Church Creek
Project), 7.750%, 8/01/10 8/01 at 102 A1 3,359,625
Illinois Development Finance Authority, Multi-Family
Housing:
775,000 7.650%, 7/01/07 1/02 at 105 AAA 852,748
6,780,000 7.650%, 12/31/31 1/02 at 105 AAA 7,306,399
10,250,000 Illinois Educational Facilities Authority (The
University of Chicago), 5.700%, 12/01/25 12/03 at 102 Aaa 9,406,528
1,585,000 Illinois Housing Development Authority, Multi-Family
Housing, 7.400%, 7/01/23 7/01 at 102 A1 1,673,126
INDIANA - 3.5%
5,060,000 Indiana Office Building Commission,
8.750%, 7/01/12 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 5,569,896
8,640,000 Avon Community School Building Corporation,
5.500%, 1/01/16 1/04 at 101 Aaa 7,902,144
5,415,000 Beacon Heights Housing Development Corporation,
Multi-Family Mortgage, 7.625%, 2/01/21 6/01 at 100 AAA 5,645,192
5,770,000 Fremont Middle School Building Corporation,
5.250%, 1/15/13 1/04 at 101 Aaa 5,225,312
1,150,000 Michigan City Housing Development Corporation,
Multi-Family Mortgage, 7.625%, 2/01/21 6/01 at 100 AAA 1,211,169
KANSAS - 2.7%
Merriam (Shawnee Mission Medical Center):
10,735,000 7.250%, 9/01/04 9/01 at 102 A- 11,009,816
8,800,000 7.250%, 9/01/21 9/01 at 102 A- 8,919,416
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
KENTUCKY - 1.1%
$ 3,015,000 Lakeland Wesley Village Mortgage, 7.500%, 11/01/21 11/01 at 103 Aa $ 3,199,217
5,000,000 Louisville-Jefferson County Regional Airport
Authority, Alternative Minimum Tax,
5.500%, 7/01/23 7/03 at 102 Aaa 4,529,900
LOUISIANA - 0.3%
1,985,000 Calcasieu Parish Public Trust Authority,
7.750%, 6/01/12 6/01 at 103 A 2,141,021
MASSACHUSETTS - 6.3%
2,000,000 Massachusetts Health and Educational Facilities
Authority (Lowell General Hospital),
8.400%, 6/01/11 6/01 at 102 Baa1 2,165,100
10,435,000 Massachusetts Housing Finance Agency (GNMA),
9.000%, 12/01/09 12/95 at 102 Aaa 10,857,096
Massachusetts Housing Finance Agency, Residential
Housing, Alternative Minimum Tax:
2,100,000 8.400%, 8/01/21 8/98 at 102 A1 2,226,966
1,660,000 8.200%, 8/01/27 8/99 at 102 BBB+ 1,736,227
19,025,000 Massachusetts Water Resources Authority,
6.000%, 4/01/20 4/00 at 100 A 18,426,854
4,385,000 Boston Housing Development Corporation
(FHA Insured), 5.500%, 7/01/24 1/04 at 102 Aaa 3,929,574
6,300,000 Somerville Housing Authority, GNMA (Clarendon
Hills Tower), 7.950%, 11/20/30 5/00 at 102 AAA 6,692,490
MICHIGAN - 1.1%
7,890,000 Michigan State Hospital Finance Authority (Detroit
Medical Center), 7.500%, 8/15/11 8/01 at 102 A- 8,439,065
MINNESOTA - 1.5%
4,431,644 South Central Multi-County Housing and
Redevelopment Authority (Chisago County and
Stearns County), Single Family Mortgage (FNMA),
Alternative Minimum Tax, 7.050%, 9/01/27 3/04 at 102 29/32 AAA 4,677,113
Dakota, Washington and Stearns Counties, Single
Family Mortgage (FNMA), Alternative
Minimum Tax:
3,195,000 6.600%, 9/01/17 3/04 at 102 AAA 3,246,535
2,255,000 6.700%, 3/01/21 3/04 at 102 AAA 2,287,675
1,000,000 Western Minnesota Municipal Power Agency,
9.500%, 1/01/13 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 1,052,790
MISSISSIPPI - 0.2%
1,495,000 Goodman Housing Development Corporation,
Multi-Family Mortgage, 7.625%, 2/01/22 8/01 at 100 AAA 1,573,861
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEBRASKA - 1.5%
$ 10,550,000 Nebraska Investment Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.800%, 3/01/35 3/05 at 101 1/2 AAA $ 10,633,978
NEVADA - 0.1%
685,000 Nevada Housing Division, Multi-Unit Housing,
8.500%, 4/01/96 No Opt. Call AAA 694,659
NEW JERSEY - 0.6%
4,420,000 New Jersey Housing and Mortgage Finance Agency,
6.850%, 11/01/06 11/01 at 102 AA+ 4,679,498
NEW MEXICO - 2.3%
2,055,000 New Mexico Mortgage Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
7.800%, 3/01/21 9/99 at 102 A+ 2,139,872
14,050,000 Farmington Pollution Control (Southern California
Edison Company), 7.200%, 4/01/21 4/01 at 102 Aa3 14,945,407
NEW YORK - 7.1%
6,000,000 New York Local Government Assistance Corporation,
7.000%, 4/01/18 (Pre-refunded to 4/01/02) 4/02 at 102 Aaa 6,753,660
1,750,000 New York State Medical Care Facilities Finance
Agency (Hospital and Nursing Home),
8.000%, 2/15/28 8/98 at 102 A 1,917,108
New York State Medical Care Facilities Finance
Agency (Mental Health Services Facilities):
1,615,000 7.600%, 2/15/06 8/01 at 102 Baa1 1,757,572
1,590,000 7.600%, 8/15/06 8/01 at 102 Baa1 1,730,365
8,075,000 7.625%, 8/15/17 8/01 at 102 Baa1 8,771,792
5,425,000 7.400%, 2/15/18 2/02 at 102 Baa1 5,815,003
3,410,000 New York State Mortgage Agency, Alternative
Minimum Tax, 8.000%, 10/01/02 7/97 at 102 Aa 3,585,922
6,000,000 New York State Urban Development Corporation,
Correctional Capital Facilities, 7.500%, 1/01/18
(Pre-refunded to 1/01/01) 1/01 at 102 Aaa 6,829,620
New York City General Obligation:
2,405,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 A- 2,865,846
2,595,000 8.250%, 11/15/10 11/01 at 101 1/2 A- 2,837,710
7,130,000 8.250%, 11/15/15 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Aaa 8,496,251
620,000 8.250%, 11/15/15 11/01 at 101 1/2 A- 680,413
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA - 1.9%
$ 5,055,000 North Carolina Eastern Municipal Power Agency,
Power System, 5.500%, 1/01/17 1/03 at 100 Aaa $ 4,663,945
8,750,000 North Carolina Municipal Power Agency, No. 1
(Catawba), 9.625%, 1/01/19 (Pre-refunded
to 1/01/96) 1/96 at 103 Aaa 9,293,638
OHIO - 0.9%
Toledo-Lucas County Port Authority, Alternative
Minimum Tax:
725,000 8.500%, 5/15/00 No Opt. Call N/R 738,260
3,985,000 8.500%, 11/15/00 11/96 at 102 N/R 4,248,409
1,465,000 8.400%, 11/15/09 11/00 at 102 N/R 1,511,807
OKLAHOMA - 5.9%
20,610,000 Oklahoma County Home Finance Authority, Single
Family Mortgage, 8.750%, 7/01/12 7/01 at 102 A1 21,570,838
21,025,000 Tulsa Municipal Airport (AMR Corporation),
Alternative Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 21,687,498
OREGON - 0.5%
3,750,000 Hillsboro Hospital Facility Authority (Quality
Healthcare), 5.750%, 10/01/12 10/04 at 102 BBB+ 3,397,388
PENNSYLVANIA - 2.4%
3,000,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, Alternative Minimum Tax,
7.150%, 9/01/21 9/01 at 102 Aaa 3,157,170
Philadelphia Water and Sewer:
4,000,000 8.800%, 10/01/99 (Pre-refunded to 10/01/95) 10/95 at 102 AAA 4,155,640
10,000,000 7.000%, 8/01/18 (Pre-refunded to 8/01/01) 8/01 at 100 BBB 10,254,200
RHODE ISLAND - 3.1%
6,650,000 Rhode Island Depositors Economics Protection
Corporation, Special Obligation, 7.250%, 8/01/21
(Pre-refunded to 8/01/96) 8/96 at 102 Aaa 6,993,872
Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax:
4,650,000 8.200%, 10/01/17 10/98 at 102 AA+ 4,950,297
10,210,000 8.250%, 10/01/22 10/98 at 102 AA+ 10,820,354
SOUTH CAROLINA -3.4%
5,000,000 Oconee County Pollution Control (Duke Power
Company), 5.800% 4/01/14 4/03 at 102 Aa2 4,805,550
Piedmont Municipal Power Agency:
5,000,000 9.625%, 1/01/13 (Pre-refunded to 1/01/96) 1/96 at 103 Aaa 5,310,650
13,590,000 9.700%, 1/01/24 (Pre-refunded to 1/01/96) 1/96 at 103 Aaa 14,441,006
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
SOUTH DAKOTA - 1.4%
$ 8,040,000 Sioux Falls (Great Plains Hotel Corporation),
Alternative Minimum Tax, 8.500%, 11/01/16
(Pre-refunded to 10/15/14) (Mandatory put 10/15/14) 10/14 at 100 AAA $ 10,450,553
TENNESSEE - 1.4%
9,985,000 Tennessee Housing Development Agency,
Homeownership Program, Alternative Minimum
Tax, 7.650%, 7/01/22 7/01 at 102 A1 10,502,722
TEXAS - 8.9%
9,505,000 Austin Water, Sewer and Electric, 14.250%, 11/15/06
(Pre-refunded to 5/15/97) 5/97 at 100 Aaa 11,246,221
Brazos River Authority, Pollution Control (Texas
Utilities Electric Company), Alternative
Minimum Tax:
6,480,000 8.250%, 1/01/19 1/99 at 102 Baa2 7,044,473
8,580,000 8.125%, 2/01/20 2/00 at 102 Baa2 9,289,995
3,500,000 Comal County Health Facilities Development
Corporation (McKenna Memorial Hospital),
7.375%, 1/15/21 1/01 at 102 AAA 3,635,800
15,970,000 El Paso Housing Finance Corporation, Single Family
Mortgage, 8.750%, 10/01/11 4/01 at 103 A 17,550,072
3,805,000 Harrison County Housing Finance Corporation,
Single Family Mortgage, 8.875%, 12/01/11 12/01 at 103 A 4,032,387
2,395,000 Panhandle Regional Housing Finance Corporation,
Single Family Mortgage (GNMA), Alternative
Minimum Tax, 7.500%, 5/01/24 5/01 at 100 AAA 2,490,872
2,600,000 Sabine River Authority, Pollution Control (Texas
Utilities Electric Company), 7.750%, 4/01/16 4/96 at 102 Baa2 2,682,030
7,020,000 Winter Garden Housing Finance Corporation
(GNMA and FNMA), Alternative Minimum Tax,
6.950%, 10/01/27 4/04 at 103 AAA 7,225,966
UTAH - 3.0%
Intermountain Power Agency:
4,500,000 7.500%, 7/01/16 7/96 at 102 AA 4,682,340
16,145,000 7.200%, 7/01/19 7/97 at 102 AA- 16,954,994
WASHINGTON - 8.5%
Washington Public Power Supply System, Nuclear
Project No. 1:
4,000,000 7.400%, 7/01/09 1/00 at 102 AA 4,243,480
1,000,000 8.000%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 1,152,670
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
Washington Public Power Supply System, Nuclear
Project No. 2:
$ 5,000,000 5.375%, 7/01/11 7/04 at 102 AA $ 4,544,000
2,000,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 2,245,980
5,000,000 7.000%, 7/01/12 7/00 at 102 AA 5,213,550
10,010,000 6.250%, 7/01/12 7/02 at 102 AA 9,833,323
24,060,000 Washington Public Power Supply System, Nuclear
Project No. 3, 7.250%, 7/01/15 (Pre-refunded
to 1/01/00) 1/00 at 102 AAA 26,650,300
Seattle Metropolitan Municipality Sewer System:
2,160,000 5.450%, 1/01/16 1/03 at 102 Aaa 1,977,133
3,095,000 5.450%, 1/01/17 1/03 at 102 Aaa 2,813,106
2,490,000 5.450%, 1/01/19 1/03 at 102 Aaa 2,245,257
1,800,000 5.450%, 1/01/20 1/03 at 102 Aaa 1,619,873
WISCONSIN - 0.3%
2,100,000 Wisconsin Health and Educational Facilities
Authority (Wausau Hospitals), 6.700%, 8/15/20 2/01 at 102 Aaa 2,161,277
$688,236,644 Total Investments - (cost $685,047,946) - 98.1% 718,547,557
============
Other Assets Less Liabilities - 1.9% 14,053,372
Net Assets - 100% $732,600,929
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 51 $317,802,404 44%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 130,849,227 18
PORTFOLIO OF A+ A1 6 41,473,149 6
INVESTMENTS: A, A- A, A2, A3 13 88,681,743 12
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 15 115,637,866 16
Non-rated Non-rated 5 24,103,168 4
TOTAL 109 $718,547,557 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. (NQU)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 1.1%
$ 2,660,000 Alaska Housing Finance Corporation (Veterans
Mortgage Program), 7.125%, 12/01/30 6/01 at 102 Aaa $ 2,752,967
2,585,000 Alaska Housing Finance Corporation, Collateralized
Home Mortgage, 7.300%, 6/01/25 12/01 at 102 Aaa 2,707,167
6,750,000 Alaska State Housing Finance Corporation,
6.600%, 12/01/23 12/02 at 102 Aa 7,194,825
ARIZONA - 0.8%
3,090,000 Maricopa County Industrial Development Authority,
Single Family Mortgage, 7.500%, 8/01/12 8/01 at 102 Aa 3,262,391
5,810,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 BBB 6,188,115
ARKANSAS - 1.9%
5,405,000 Arkansas Development Finance Authority, Single
Family Mortgage, 8.000%, 8/15/11 8/01 at 103 AA 5,847,021
6,500,000 Arkansas Development Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.700%, 7/01/27 7/05 at 102 AAA 6,591,000
9,400,000 Pope County Pollution Control (Arkansas Power
and Light Company), 11.000%, 12/01/15 12/95 at 102 Baa2 9,920,666
CALIFORNIA - 8.6%
3,000,000 California Health Facilities Financing Authority
(Kaiser Permanente), 5.600%, 5/01/33 5/03 at 102 Aa2 2,706,090
4,310,000 California Housing Finance Agency, Home Mortgage,
Alternative Minimum Tax, 7.050%, 8/01/27 8/01 at 102 AA- 4,431,327
3,500,000 California Public Works Board (California State
University), 6.625%, 10/01/10 10/02 at 102 A- 3,577,175
17,000,000 California Public Works Board, Department of
Corrections (California State Prison-Monterey
County (Soledad II), 7.000%, 11/01/19 11/04 at 102 A- 17,920,890
6,250,000 Bell Community Redevelopment Agency,
6.700%, 9/01/98 (Pre-refunded to 9/01/95) 9/95 at 100 1/2 A- 6,323,313
Brea Public Financing Authority, Tax Allocation:
10,580,000 7.000%, 8/01/15 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 11,877,531
4,420,000 7.000%, 8/01/15 8/01 at 102 Aaa 4,729,842
4,500,000 Lancaster Redevelopment Agency (Project No. 5),
6.500%, 10/01/97 10/95 at 100 A- 4,529,115
4,000,000 Lancaster Redevelopment Agency (Amargosa
Project), 6.500%, 10/01/97 10/95 at 100 A- 4,025,880
5,000,000 Los Angeles Community Redevelopment Agency,
Tax Allocation (Central Business District),
6.750%, 7/01/10 7/96 at 102 A- 5,124,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
Los Angeles Department of Water and Power:
$ 7,550,000 5.400%, 11/15/31 11/03 at 102 AA $ 6,582,921
5,000,000 6.500%, 4/15/32 4/02 at 102 AA 5,084,600
7,355,000 Northern California Power Agency, 7.150%, 7/01/24 7/98 at 102 A- 7,542,479
2,000,000 Redwood City Public Finance Authority,
7.250%, 7/15/11 7/01 at 102 A- 2,126,700
10,000,000 San Diego (San Diego Gas and Electric Company),
5.900%, 9/01/18 9/03 at 102 Aaa 9,691,300
3,375,000 Southern California Home Financing Authority,
Single Family Mortgage (GNMA and FNMA),
Alternative Minimum Tax, 7.350%, 9/01/24 3/01 at 102 AAA 3,540,206
3,000,000 University of California, 5.000%, 9/01/11 9/03 at 102 Aaa 2,675,670
COLORADO - 6.1%
4,690,000 Colorado Housing Finance Authority, Multi-Family
Insured, 6.900%, 10/01/21 10/95 at 100 AA 4,715,514
City and County of Denver Airport System,
Alternative Minimum Tax:
4,000,000 7.300%, 11/15/00 No Opt. Call Baa 4,180,640
1,500,000 6.350%, 11/15/01 No Opt. Call Baa 1,488,990
4,000,000 7.750%, 11/15/21 11/01 at 102 Baa 4,185,080
12,910,000 8.750%, 11/15/23 11/01 at 102 Baa 14,316,028
9,535,000 8.500%, 11/15/23 11/00 at 102 Baa 10,308,289
17,350,000 8.000%, 11/15/25 11/00 at 102 Baa 18,332,010
4,140,000 8.000%, 11/15/25 11/01 at 100 Baa 4,349,815
4,850,000 7.000%, 11/15/25 11/01 at 100 Baa 4,742,233
5,110,000 Pueblo County (Parkview Episcopal Medical Center),
8.300%, 9/01/11 9/01 at 100 Baa1 5,546,650
DISTRICT OF COLUMBIA - 0.6%
7,215,000 District of Columbia (The Howard University),
6.750%, 10/01/12 10/02 at 102 AA- 7,390,040
FLORIDA - 4.0%
5,250,000 Dade County Industrial Development Authority,
Solid Waste (Florida Power and Light Company),
Alternative Minimum Tax, 7.150%, 2/01/23 2/01 at 102 A2 5,506,673
12,250,000 Orange County Health Facility Authority
(RHA/Princeton Hospital), 9.000%, 7/01/21 7/01 at 102 N/R 9,808,943
Palm Beach County Health Facilities Authority
(JFK Medical Center):
8,195,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 BBB 9,419,415
5,880,000 8.875%, 12/01/18 12/98 at 102 BBB 6,441,540
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
$ 8,485,000 St. Lucie County, Solid Waste Disposal (Florida
Power and Light Company), Alternative Minimum
Tax, 7.150%, 2/01/23 2/01 at 102 A2 $ 8,899,832
Tampa Capital Improvement Program:
1,665,000 8.000%, 10/01/02 10/98 at 100 AA 1,772,409
5,830,000 8.250%, 10/01/18 10/98 at 100 AA 6,386,648
GEORGIA - 3.0%
9,000,000 Georgia Municipal Electric Authority,
8.125%, 1/01/17 1/98 at 102 A+ 9,774,720
Clayton County Hospital Authority (Southern
Regional Medical Center):
2,900,000 6.500%, 8/01/10 8/01 at 102 Aaa 3,027,513
4,500,000 7.000%, 8/01/13 8/01 at 102 Aaa 4,771,080
15,900,000 Fulton-DeKalb Hospital Authority, 6.900%, 1/01/20
(Pre-refunded to 1/01/01) 1/01 at 102 Aaa 17,607,024
ILLINOIS - 7.8%
3,500,000 Illinois Development Finance Authority, Pollution
Control (Commonwealth Edison Company),
5.300%, 1/15/04 No Opt. Call Baa2 3,283,000
7,000,000 Illinois Development Finance Authority, Multi-Family
Housing (Town and Garden Apartments Project),
Alternative Minimum Tax, 7.800%, 3/01/06 3/02 at 102 BBB+ 7,260,890
1,295,000 Illinois Health Facilities Authority (The Passavant
Memorial Hospital Association), 5.500%, 10/01/04 No Opt. Call A- 1,180,004
14,500,000 Illinois Health Facilities Authority (Northwestern
Memorial Hospital), 6.750%, 8/15/11 8/01 at 102 AA 14,895,995
4,000,000 Illinois Health Facilities Authority (Sherman
Hospital), 6.750%, 8/01/21 8/01 at 102 Aaa 4,124,360
Illinois Health Facilities Authority (Rockford
Memorial Hospital):
2,000,000 6.750%, 8/15/18 8/01 at 102 Aaa 2,062,420
5,265,000 6.000%, 8/15/21 8/01 at 100 Aaa 5,043,186
2,840,000 Illinois Housing Development Authority (Garden
House of Maywood), 7.000%, 9/01/18 9/02 at 102 A 2,919,918
Central Lake County, Joint Action Water Agency:
6,000,000 7.000%, 5/01/19 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 6,636,420
10,000,000 7.000%, 5/01/20 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 11,175,500
6,785,000 Chicago O'Hare International Airport (United
Airlines Project), 8.850%, 5/01/18 11/00 at 103 Baa1 7,542,681
24,430,000 Cook County General Obligation, 6.750%, 11/01/18
(Pre-refunded to 11/01/01) 11/01 at 102 Aaa 27,062,333
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
INDIANA - 1.3%
$ 5,905,000 Indiana Health Facilities Financing Authority
(Community Hospitals of Indiana),
7.000%, 7/01/11 7/01 at 102 Aaa $ 6,293,254
4,000,000 Indianapolis Local Public Improvement Bond Bank,
6.500%, 2/01/22 2/98 at 100 A+ 4,027,480
5,125,000 Petersburg Pollution Control (Indianapolis Power
and Light Company), 6.625%, 12/01/24 12/04 at 102 Aa2 5,260,146
IOWA - 0.4%
4,500,000 Polk County Insured Health Facilities (Mercy Health
Center of Central Iowa), 6.750%, 11/01/15 11/01 at 101 Aaa 4,688,055
KANSAS - 1.7%
1,580,000 Labette County and Cowley County, Single Family
Mortgage, 9.500%, 4/01/13 10/01 at 103 A 1,700,617
Merriam (Shawnee Mission Medical Center):
7,380,000 7.250%, 9/01/11 9/01 at 102 A- 7,611,437
10,000,000 7.250%, 9/01/21 9/01 at 102 A- 10,135,700
895,000 Saline County, Single Family Mortgage,
9.500%, 10/01/11 10/01 at 103 A 951,537
KENTUCKY - 3.0%
3,000,000 Kentucky Development Finance Authority (St. Claire
Medical Center), 7.125%, 9/01/21 (Pre-refunded
to 9/01/01) 9/01 at 102 N/R 3,377,670
8,225,000 Kentucky Housing Corporation, Alternative
Minimum Tax, 6.625%, 7/01/26 1/05 at 102 Aaa 8,273,774
10,000,000 Danville Multi-City Lease (Louisville and Jefferson
County Metropolitan Sewer), 6.800%, 3/01/19
(Pre-refunded to 3/01/02) 3/02 at 102 Aaa 11,143,000
2,975,000 Greater Kentucky Housing Assistance Corporation
(FHA-Insured), 7.625%, 1/01/25 1/00 at 102 Aaa 3,148,086
9,100,000 Jefferson County Multi-Family Housing (Cantor
Chase Project), 6.750%, 10/01/21 (Mandatory
put 10/01/98) 10/96 at 100 Baa1 9,260,524
MARYLAND - 2.4%
Maryland Community Development Administration,
Department of Housing and Community
Development, Alternative Minimum Tax:
13,235,000 7.450%, 4/01/20 4/01 at 102 Aa 13,952,866
4,320,000 7.450%, 4/01/32 4/01 at 102 Aa 4,543,430
10,000,000 Maryland Community Development Administration,
Multi-Family Housing, 7.100%, 5/15/28 5/01 at 102 Aa 10,421,700
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS - 4.7%
Massachusetts Bay Transportation Authority:
$ 10,225,000 7.000%, 3/01/11 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa $ 11,391,161
19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 21,835,380
15,000,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), 9.000%, 7/01/15 7/01 at 103 N/R 16,215,750
3,300,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), Alternative Minimum
Tax, 9.250%, 7/01/15 7/01 at 103 N/R 3,581,853
3,500,000 Massachusetts Water Resources Authority,
6.000%, 4/01/20 4/00 at 100 A 3,389,960
MICHIGAN - 3.2%
5,000,000 Michigan Hospital Finance Authority (Detroit
Medical Center), 7.500%, 8/15/11 8/01 at 102 A- 5,347,950
15,875,000 Michigan Strategic Fund (The Detroit Edison
Company), 6.875%, 12/01/21 12/01 at 102 Aaa 16,828,453
8,500,000 Michigan Strategic Fund (Waste Management, Inc.),
Alternative Minimum Tax, 6.625%, 12/01/12 12/02 at 102 A1 8,610,500
7,000,000 Grand Rapids Water Supply System, 6.250%, 1/01/11 1/01 at 102 Aaa 7,170,380
MINNESOTA - 1.1%
5,000,000 Minnesota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax,
6.950%, 7/01/26 1/04 at 102 AA+ 5,178,400
3,655,000 Dakota and Washington Counties, Anoka Housing
Authority (GNMA), Alternative Minimum Tax,
8.450%, 9/01/19 No Opt. Call Aaa 4,927,050
2,480,000 Washington County Housing and Redevelopment
Authority, Multi-Family Housing (FHA-Insured),
Alternative Minimum Tax, 7.650%, 8/01/32 8/01 at 102 AAA 2,632,024
MISSISSIPPI - 0.6%
3,455,000 Canton Housing Development Corporation (Canton
Estates), Multi-Family Mortgage, 7.750%, 8/01/24 No Opt. Call AAA 4,146,691
1,265,000 Charter Mortgage Corporation (Church Garden
Project), Multi-Family Mortgage, 7.750%, 8/01/21 8/01 at 100 AAA 1,508,082
1,385,000 Pearl Housing Development Corporation (Rose
Garden Project), Multi-Family Mortgage,
7.750%, 8/01/22 2/01 at 100 AAA 1,447,173
MISSOURI - 1.8%
Missouri Health and Educational Facilities Authority
(Heartland Health Systems):
3,070,000 7.625%, 10/01/00 10/99 at 102 1/2 BBB+ 3,416,265
6,500,000 8.125%, 10/01/10 10/99 at 102 1/2 BBB+ 7,366,450
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MISSOURI (CONTINUED)
Jackson County Industrial Development Authority
(Saint Joseph Health Center):
$ 5,730,000 6.500%, 7/01/12 7/02 at 102 Baa1 $ 5,665,136
5,605,000 7.000%, 7/01/22 7/02 at 102 Baa1 5,484,324
MONTANA - 0.6%
7,000,000 Forsyth Pollution Control (Puget Sound Power and
Light Company), 7.050%, 8/01/21 8/01 at 102 Aaa 7,546,910
NEBRASKA - 0.9%
11,000,000 Nebraska Investment Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.800%, 3/01/35 3/05 at 101 1/2 AAA 11,087,560
NEW HAMPSHIRE - 0.7%
2,625,000 New Hampshire Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
8.500%, 7/01/14 7/98 at 103 Aa 2,748,428
4,900,000 New Hampshire Housing Finance Authority, Single
Family Mortgage, 7.100%, 1/01/23 7/01 at 102 Aa 5,036,661
NEW JERSEY - 1.1%
13,000,000 Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resources Recovery
System), 7.250%, 12/01/10 12/01 at 102 BBB+ 12,914,850
NEW YORK - 10.2%
21,075,000 New York Local Government Assistance Corporation,
7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 24,049,736
8,000,000 New York State Medical Care Facilities Finance
Agency, New York Hospital (FHA-Insured),
6.500%, 8/15/29 2/05 at 102 Aaa 8,320,080
5,000,000 New York State Medical Care Facilities Finance
Agency (Brookdale Hospital Medical Center),
6.850%, 2/15/17) 2/05 at 102 Baa1 4,976,900
8,000,000 New York State Thruway Authority, 6.000%, 1/01/25 1/05 at 102 Aaa 7,783,200
Dormitory Authority of the State of New York
(State University):
13,000,000 7.400%, 5/15/01 5/00 at 102 Baa1 14,123,850
11,750,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 13,383,368
8,325,000 Dormitory Authority of the State of New York
(Menorah Campus), 7.400%, 2/01/31 8/01 at 102 AA 9,163,411
2,205,000 Niagara Falls Housing and Commercial Rehabilitation
Corporation (FHA-Insured), Assisted Project,
7.350%, 8/01/23 8/03 at 100 AA 2,712,591
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
New York City General Obligation:
$ 3,995,000 6.800%, 2/01/97 No Opt. Call A- $ 4,097,392
12,395,000 5.600%, 8/01/02 No Opt. Call A- 12,088,100
5,500,000 3.000%, 8/15/02 No Opt. Call A- 4,513,850
5,500,000 7.250%, 8/15/19 8/04 at 101 A- 5,743,595
6,750,000 6.625%, 2/15/25 2/05 at 102 A- 6,632,888
3,475,000 Penfield-Crown Oak Housing Development
Corporation, FHA-Insured (Crown-Oak Estates),
7.350%, 8/01/23 2/03 at 100 AAA 3,635,024
OHIO - 1.0%
6,945,000 Ohio Housing Finance Agency, Residential Mortgage,
Alternative Minimum Tax, 6.625%, 3/01/26 3/05 at 102 AAA 7,003,685
4,800,000 Butler County Hospital Facilities (Fort
Hamilton-Hughes Memorial Hospital),
7.500%, 1/01/10 1/02 at 102 BBB- 4,916,016
OKLAHOMA - 5.8%
20,865,000 Oklahoma County Home Finance Authority, Single
Family Mortgage, 8.750%, 7/01/12 7/01 at 102 A1 21,837,726
17,510,000 Pottawatomie County Home Finance Authority,
Single Family Mortgage, 8.625%, 7/01/10 No Opt. Call Aaa 22,496,148
Tulsa Municipal Airport Trust (AMR Corporation),
Alternative Minimum Tax:
10,000,000 7.375%, 12/01/20 12/00 at 102 Baa2 10,181,700
10,100,000 7.600%, 12/01/30 6/01 at 102 Baa2 10,418,251
3,770,000 Tulsa Municipal Airport Trust (AMR Corporation),
9.500%, 6/01/20 12/95 at 102 Baa2 3,951,526
OREGON - 0.7%
8,625,000 Hillsboro Hospital Facility Authority (Tuality
Healthcare), 5.750%, 10/01/12 10/04 at 102 BBB+ 7,813,991
PENNSYLVANIA - 1.0%
Falls Township Hospital Authority (Delaware Valley
Medical Center):
4,525,000 6.900%, 8/01/11 8/02 at 102 AAA 4,686,995
3,000,000 7.000%, 8/01/22 8/02 at 102 AAA 3,115,380
Philadelphia Water and Sewer System:
2,000,000 6.900%, 4/01/98 3/98 at 100 BBB 2,040,360
2,000,000 7.000%, 4/01/99 3/98 at 100 BBB 2,040,660
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
RHODE ISLAND - 0.8%
$ 5,260,000 Rhode Island Housing and Mortgage Finance
Corporation, 8.250%, 10/01/08 4/98 at 102 A1 $ 5,516,741
5,000,000 Rhode Island Convention Center Authority,
5.000%, 5/15/20 5/03 at 100 Aaa 4,169,800
SOUTH CAROLINA - 1.1%
6,500,000 Lexington County Health Service District,
6.750%, 10/01/18 10/01 at 102 Aaa 6,787,755
6,000,000 Oconee County Pollution Control (Duke Power
Company), 5.800%, 4/01/14 4/03 at 102 Aa2 5,766,660
TENNESSEE - 1.5%
6,880,000 Metropolitan Government, Nashville and Davidson
County, Water and Sewer System, 7.000%, 1/01/14 1/96 at 102 A1 7,099,816
10,300,000 Metropolitan Nashville Airport Authority,
6.625%, 7/01/07 7/01 at 102 Aaa 10,963,011
TEXAS - 6.7%
14,360,000 Alliance Airport Authority (AMR Corporation),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 14,691,142
Arlington Independent School District, General
Obligation:
11,635,000 0.000%, 2/15/11 2/05 at 72 Aaa 4,274,583
13,985,000 0.000%, 2/15/14 2/05 at 58 11/16 Aaa 4,193,962
5,000,000 Brazos River Authority (Houston Lighting and
Power Project), 7.750%, 10/01/15 10/98 at 102 A 5,395,350
5,600,000 Dallas-Fort Worth International Airport (AMR
Corporation), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 5,728,576
13,590,000 Fort Worth Housing Finance Corporation,
8.500%, 10/01/11 10/01 at 103 A 14,817,177
3,145,000 Galveston Property Finance Authority, Single Family
Mortgage, 8.500%, 9/01/11 9/01 at 103 A 3,425,125
7,765,000 Houston Airport System, Subordinate Lien,
6.625%, 7/01/22 7/01 at 102 Aaa 8,003,308
18,500,000 Houston Water and Sewer System, Junior Lien,
6.375%, 12/01/17 12/01 at 102 Aaa 18,847,245
VERMONT - 0.7%
Vermont Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax:
6,405,000 7.300%, 5/01/25 11/01 at 102 A1 6,676,380
1,595,000 6.875%, 5/01/25 11/01 at 102 A1 1,614,922
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
VIRGINIA - 1.4%
$ 10,500,000 Virginia Housing Development Authority,
7.150%, 1/01/33 1/02 at 102 AA+ $ 10,819,515
2,330,000 Richmond General Obligation, 6.250%, 1/15/21 1/01 at 102 AA 2,312,036
3,860,000 Roanoke Industrial Development Authority
(Roanoke Memorial Hospitals), 6.500%, 7/01/25
(Pre-refunded to 7/01/00) 7/00 at 100 Aaa 4,117,153
WASHINGTON - 7.4%
4,750,000 Washington Health Care Facilities Authority
(Yakima Valley Memorial Hospital),
7.250%, 1/01/21 1/01 at 102 A- 4,921,380
Washington Public Power Supply System, Nuclear
Project No. 2:
4,000,000 5.375%, 7/01/11 7/04 at 102 AA 3,635,200
14,850,000 7.000%, 7/01/12 7/00 at 102 AA 15,484,244
14,500,000 Washington Public Power Supply System, Nuclear
Project No. 3, 7.400%, 7/01/09 1/00 at 102 AA 15,358,400
2,540,000 Clark County School District No. 37 (Vancouver),
General Obligation, 5.750%, 12/01/14 12/05 at 100 Aa 2,450,236
4,185,000 Douglas County Public Utility District No. 1
(Wells Hydroelectric Project), 8.750%, 9/01/18 9/06 at 106 A+ 5,241,838
12,415,000 King County School District No. 210, Federal Way
General Obligation, 6.950%, 12/01/11 12/03 at 100 A 13,090,375
Municipality of Metropolitan Seattle, Limited Sales
Tax, General Obligation:
9,810,000 6.625%, 1/01/11 1/97 at 102 Aa 10,114,600
10,310,000 6.875%, 1/01/20 1/97 at 102 Aa 10,592,390
4,000,000 Seattle Metropolitan Municipality Sewer System,
5.500%, 1/01/33 1/03 at 102 Aaa 3,540,719
4,000,000 North Thurston School District No. 3, General
Obligation, 6.500%, 12/01/09 12/02 at 100 A 4,157,239
WISCONSIN - 1.5%
10,820,000 Wisconsin Health and Educational Facilities
Authority (Novus Health Group),
6.750%, 12/15/20 12/01 at 102 Aaa 11,110,300
7,000,000 Wisconsin Housing and Economic Development
Authority, 6.850%, 11/01/12 1/02 at 102 A1 7,196,979
WYOMING - 0.6%
2,390,000 Wyoming Community Development Authority,
Single Family Mortgage, 7.400%, 6/01/31 6/01 at 102 AA 2,528,092
4,500,000 Wyoming Community Development Authority,
Single Family Mortgage, Alternative Minimum
Tax, 7.250%, 6/01/21 11/01 at 103 AA 4,685,445
$1,128,110,000 Total Investments - (cost $1,111,360,317) - 97.8% 1,164,432,668
==============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.5%
$ 5,400,000 Harris County Health Facilities Development
==============
Corporation (St. Luke's Episcopal Hospital),
Variable Rate Demand Bonds, 5.000%, 2/15/21t A-1+ $ 5,400,000
Other Assets Less Liabilities - 1.7% 20,862,654
Net Assets - 100% $1,190,695,322
==============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 52 $ 420,624,004 36%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 32 213,034,232 18
PORTFOLIO OF A+ A1 10 77,597,102 7
INVESTMENTS A, A- A, A2, A3 29 177,696,551 15
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 33 242,496,563 21
TEMPORARY Non-rated Non-rated 4 32,984,216 3
INVESTMENTS):
TOTAL 160 $1,164,432,668 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. (NPF)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.0%
$ 4,360,000 Alabama Higher Education Loan Corporation,
Student Loan, Alternative Minimum Tax,
5.850%, 9/01/04 No Opt. Call Aaa $ 4,384,503
ALASKA - 0.5%
2,180,000 Anchorage Home Mortgage, 8.000%, 3/01/09 3/02 at 102 AAA 2,355,970
ARIZONA - 5.6%
5,500,000 Arizona Educational Loan Marketing Corporation,
Alternative Minimum Tax, 6.950%, 3/01/01 No Opt. Call A 5,745,410
3,650,000 Maricopa County Unified School District No. 41,
General Obligation, 6.100%, 7/01/14
(Pre-refunded to 7/01/04) 7/04 at 100 Aaa 3,876,008
1,250,000 Santa Cruz County Unified School District No. 1,
Nogales General Obligation, 6.100%, 7/01/14 7/04 at 100 Aaa 1,261,225
12,460,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 BBB 13,270,897
ARKANSAS - 1.6%
2,000,000 Arkansas Development Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.550%, 7/01/18 7/05 at 102 AAA 2,019,800
1,625,000 Arkansas Development Finance Authority, Single
Family Mortgage, 6.600%, 7/01/17 7/05 at 102 AAA 1,675,586
505,538 Drew County Public Facilities Board, Single Family
Mortgage, 7.900%, 8/01/11 8/03 at 103 Aaa 553,952
1,310,000 Greene County Residential Housing Board,
7.250%, 1/01/10 1/02 at 103 Aa 1,374,780
719,470 Stuttgart Public Facilities Board, Single Family
Mortgage, 7.900%, 9/01/11 9/03 at 103 Aaa 784,863
COLORADO - 2.0%
Colorado Health Facilities Authority (National
Jewish Center):
1,500,000 6.600%, 2/15/02 No Opt. Call BBB- 1,466,190
1,250,000 6.875%, 2/15/12 2/02 at 102 BBB- 1,209,400
3,000,000 7.100%, 2/15/22 2/02 at 102 BBB- 2,919,060
City and County of Denver Airport System,
Alternative Minimum Tax:
550,000 8.100%, 11/15/00 No Opt. Call Con(Baa) 592,471
2,220,000 8.500%, 11/15/23 11/00 at 102 Baa 2,400,042
CONNECTICUT - 0.5%
2,275,000 Connecticut Housing Finance Authority, Alternative
Minimum Tax, 6.900%, 5/15/20 5/04 at 102 AA 2,347,618
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA - 3.3%
$ 2,550,000 District of Columbia General Obligation,
6.100%, 6/01/11 6/04 at 102 Aaa $ 2,506,268
2,000,000 District of Columbia (Washington Hospital Center),
7.000%, 8/15/05 8/02 at 102 Baa1 2,004,280
District of Columbia Housing Finance Agency
(FHA-Insured):
920,000 7.200%, 9/01/12 9/02 at 102 Aa 970,379
3,505,000 7.250%, 3/01/24 9/02 at 102 Aa 3,655,329
4,955,000 District of Columbia (Howard University),
7.250%, 10/01/20 10/00 at 102 AA- 5,103,254
GEORGIA - 1.7%
Georgia Municipal Electric Authority, General Power:
755,000 8.000%, 1/01/15 No Opt. Call Aaa 957,672
2,000,000 7.250%, 1/01/24 No Opt. Call Aaa 2,330,720
3,500,000 Forsyth County School District, General Obligation,
6.750%, 7/01/16 No Opt. Call A1 3,825,290
ILLINOIS - 16.7%
Illinois Development Finance Authority,
Multi-Family Housing:
600,000 7.650%, 7/01/07 1/02 at 105 AAA 660,192
5,270,000 7.650%, 12/31/31 1/02 at 105 AAA 5,679,163
9,460,000 Illinois Development Finance Authority,
Multi-Family Housing (Town and Garden
Apartments Project), Alternative Minimum Tax,
7.800%, 3/01/06 3/02 at 102 BBB+ 9,812,574
865,000 Illinois Health Facilities Authority (Evangelical
Hospitals), 6.750%, 4/15/12 4/02 at 102 AA- 887,750
4,815,000 Illinois Housing Development Authority (Garden
House of Maywood), 7.000%, 9/01/18 9/02 at 102 A 4,950,494
920,000 Illinois Housing Development Authority, Elderly
Housing (Morningside North), 6.600%, 1/01/07 1/03 at 102 A 946,708
Illinois Sales Tax:
2,000,000 6.800%, 6/15/10 6/99 at 102 AAA 2,091,900
6,390,000 6.800%, 6/15/12 (Pre-refunded to 6/15/00) 6/00 at 102 AAA 7,015,709
4,500,000 Chicago General Obligation (Central Public Library
Project), 6.850%, 1/01/17 (Pre-refunded
to 7/01/02) 7/02 at 101 1/2 Aaa 5,011,965
1,795,000 Chicago Board of Education, Lease Participation
Certificates, 7.500%, 2/01/96 8/95 at 100 1/2 N/R 1,798,985
5,200,000 Chicago Tax Increment (Stockyards Industrial
Redevelopment), 9.250%, 1/01/14 No Opt. Call N/R 5,486,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 8,075,000 Cicero General Obligation, Tax Increment,
8.125%, 12/01/12 12/04 at 102 N/R $ 8,555,140
1,910,000 Cook County Community School District No. 168,
General Obligation, 7.250%, 12/01/05 No Opt. Call N/R 1,997,440
2,000,000 Onterie Center Housing Finance Corporation
(FHA-Insured), 7.050%, 7/01/27 7/02 at 102 Aaa 2,071,700
2,835,000 Sugar Grove Village Waterworks and Sewerage System,
7.500%, 5/01/17 5/02 at 102 N/R 2,894,365
Wood River Township Hospital General Obligation:
6,000,000 6.625%, 2/01/14 2/04 at 102 BBB 5,999,160
6,115,000 6.500%, 2/01/14 2/04 at 102 BBB 6,101,058
INDIANA - 2.0%
1,580,000 Indiana Housing Finance Authority,
10.200%, 1/01/16 1/96 at 102 1/2 Aa 1,659,316
2,000,000 Indianapolis Exempt Facility (Mid-America Energy
Resources, Inc.), Alternative Minimum Tax,
7.250%, 12/01/11 6/99 at 102 AA- 2,060,120
2,170,000 Mill Creek Community School Building Corporation,
6.125%, 1/01/15 7/02 at 102 A 2,132,068
2,860,000 PHM Elementary/Middle School Building
Corporation, 6.300%, 1/15/09 No Opt. Call A 2,952,607
IOWA - 0.4%
1,655,000 Iowa Student Loan Liquidity Corporation,
Alternative Minimum Tax, 5.750%, 12/01/06 12/02 at 102 Aaa 1,632,889
KANSAS - 1.4%
4,000,000 Hutchinson Single Family Mortgage,
8.875%, 12/01/12 6/02 at 103 A 4,334,360
1,500,000 Kansas City Utility System, 6.250%, 9/01/14 9/04 at 102 Aaa 1,535,340
KENTUCKY - 3.5%
5,000,000 Kentucky Rural Economic Development Authority
(Donnelly Corporation), Alternative Minimum
Tax, 8.125%, 7/01/12 7/02 at 102 N/R 5,117,300
9,000,000 Carroll County Pollution Control (Kentucky Utilities
Company), 7.450%, 9/15/16 9/02 at 102 Aa2 9,833,670
MAINE - 2.0%
8,470,000 Maine Educational Loan Marketing Corporation,
Alternative Minimum Tax, 6.250%, 11/01/06 No Opt. Call A 8,686,578
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MARYLAND - 1.8%
$ 2,000,000 Maryland Health and Higher Educational Facilities
Authority (Anne Arundel Medical Center),
5.000%, 7/01/23 7/03 at 102 Aaa $ 1,698,420
6,000,000 Anne Arundel County, Multi-Family Housing
(Woodside Project), Alternative Minimum Tax,
7.450%, 12/01/24 (Mandatory put 12/01/03) No Opt. Call BBB+ 6,234,240
MASSACHUSETTS - 6.6%
2,450,000 Massachusetts Health and Educational Facilities
Authority (New England Deaconess Hospital),
6.875%, 4/01/22 4/02 at 102 A 2,490,597
3,875,000 Massachusetts Health and Educational Facilities
Authority (Youville Hospital), 6.000%, 2/15/25 2/04 at 102 Aa 3,669,431
9,070,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), Alternative Minimum
Tax, 9.250%, 7/01/15 7/01 at 103 N/R 9,844,669
Massachusetts Municipal Wholesale Electric
Company:
945,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 1,040,436
45,000 8.750%, 7/01/18 7/97 at 102 A 52,683
9,780,000 Massachusetts Water Resources Authority,
6.750%, 7/15/12 (Pre-refunded to 7/15/02) 7/02 at 102 Aaa 10,828,709
MICHIGAN - 0.7%
2,500,000 Wayne County Building Authority, Limited Tax,
8.000%, 3/01/17 (Pre-refunded to 3/01/02) 3/02 at 102 BBB- 2,933,600
MINNESOTA - 2.6%
11,180,000 Northwest Minnesota Multi-County Housing and
Redevelopment Authority, 8.125%, 10/01/26 10/04 at 102 N/R 11,273,912
MISSISSIPPI - 0.4%
8,610,000 Mississippi Home Corporation, 0.000%, 9/15/16 3/04 at 41 11/16 A 1,878,099
MONTANA - 0.2%
1,000,000 Montana Health Facilities Authority (Sisters of
Charity of Leavenworth), 5.250%, 12/01/10 12/03 at 102 Aa 920,860
NEBRASKA - 4.3%
2,350,000 Nebraska Higher Education Loan Program,
Alternative Minimum Tax, 6.250%, 6/01/18 No Opt. Call Aa 2,253,016
4,145,000 Grand Island Electric System, 6.100%, 9/01/12 9/95 at 101 A1 4,181,352
10,935,000 Omaha Public Power District, 6.500%, 2/01/17
(Pre-refunded to 2/01/02) 2/02 at 101 1/2 AAA 11,936,209
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW HAMPSHIRE - 2.7%
$ 9,200,000 New Hampshire Industrial Development Authority,
Resource Recovery (SES Concord Project),
8.500%, 1/01/09 1/98 at 102 A+ $ 10,043,088
1,590,000 New Hampshire Municipal Bond Bank (Coe-Brown
Northwood Academy), 7.250%, 5/01/09 No Opt. Call N/R 1,613,755
NEW JERSEY - 1.5%
3,000,000 New Jersey Economic Development Authority
(Bridgewater Resources, Inc.), Alternative
Minimum Tax, 8.375%, 11/01/04 No Opt. Call N/R 3,098,010
3,205,000 New Jersey Educational Facilities Authority (New
Jersey Institute of Technology), 6.000%, 7/01/24 7/04 at 102 Aaa 3,165,514
NEW YORK - 10.3%
5,000,000 New York Local Government Assistance Corporation,
7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 5,705,750
6,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(FHA-Insured), 6.200%, 8/15/22 8/02 at 102 AAA 5,991,420
2,365,000 New York State Thruway Authority,
6.000%, 4/01/14 4/04 at 102 Aaa 2,330,684
8,450,000 New York State Urban Development Corporation,
State Facilities, 7.500%, 4/01/20 4/01 at 102 Baa1 9,117,973
3,000,000 Buffalo Sewer Authority, 7.625%, 7/01/06
(Pre-refunded to 7/01/96) 7/96 at 103 Aaa 3,187,290
6,500,000 Dormitory Authority of the State of New York (City
University), 7.625%, 7/01/20 (Pre-refunded
to 7/01/00) 7/00 at 102 Aaa 7,407,920
New York City General Obligation:
3,500,000 7.500%, 2/01/01 No Opt. Call A- 3,763,340
1,550,000 6.500%, 8/01/02 No Opt. Call A- 1,593,369
3,080,000 6.600%, 8/01/04 No Opt. Call A- 3,155,214
2,000,000 6.625%, 8/01/12 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 2,207,540
100,000 6.625%, 8/01/12 8/02 at 101 1/2 Aaa 104,957
NORTH CAROLINA - 0.5%
2,130,000 North Carolina Housing Finance Agency,
Multi-Family Housing, 6.900%, 7/01/24 7/02 at 102 AA 2,183,484
OHIO - 6.3%
14,810,000 Ohio Housing Finance Agency, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.650%, 3/01/29 9/99 at 102 AAA 15,447,719
1,000,000 Ohio Water Development Authority,
8.000%, 12/01/18 (Pre-refunded to 12/01/00) 12/00 at 100 AAA 1,133,760
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
OHIO (CONTINUED)
$ 8,500,000 Akron-Bath-Copley Joint Township Hospital
District (Akron City Hospital), 8.875%, 11/15/07
(Pre-refunded to 11/15/97) 11/97 at 102 Aaa $ 9,493,225
1,040,000 Toledo-Lucas County Port Authority, Alternative
Minimum Tax, 7.750%, 5/15/07 5/00 at 102 N/R 1,075,173
PENNSYLVANIA - 4.5%
2,000,000 Falls Township Hospital Authority (Delaware Valley
Medical Center), 7.000%, 8/01/22 8/02 at 102 AAA 2,076,920
1,545,000 Northampton County Hospital Authority (Easton
Hospital), 6.900%, 1/01/02 No Opt. Call BBB 1,579,515
7,715,000 Philadelphia Water and Sewer System,
7.350%, 9/01/04 No Opt. Call AAA 8,849,259
Philadelphia Hospital and Higher Educational
Facilities Authority (Children's Seashore House):
2,500,000 7.000%, 8/15/12 8/02 at 102 A- 2,533,675
4,450,000 7.000%, 8/15/22 8/00 at 100 A- 4,513,012
TEXAS - 4.1%
4,453,448 Texas General Services Commission,
7.500%, 9/01/22 9/95 at 102 1/2 A 4,621,120
9,500,000 Harris County Health Facilities Development
Corporation, 7.375%, 12/01/25 (Mandatory
put 12/01/98) 5/95 at 101 1/2 Aa2 9,659,790
3,275,000 Victoria Housing Finance Corporation, Single
Family Mortgage, 8.500%, 1/01/11 1/02 at 103 A 3,541,880
UTAH - 0.4%
1,500,000 Intermountain Power Agency, 7.750%, 7/01/17
(Pre-refunded to 7/01/96) 7/96 at 102 Aaa 1,581,194
VIRGINIA - 2.0%
5,000,000 Virginia Housing Development Authority,
7.100%, 1/01/22 1/02 at 102 AA+ 5,236,350
3,200,000 Suffolk Redevelopment Authority, Multi-Family
Housing (Chase Heritage Project),
7.000%, 7/01/24 (Mandatory put 7/01/04) 7/02 at 104 N/R 3,383,680
WASHINGTON - 2.9%
9,500,000 Washington General Obligation, 6.250%, 2/01/11 No Opt. Call AA 9,966,734
2,500,000 Washington Health Care Facilities Authority (Sacred
Heart Medical Center Spokane), 6.875%, 2/15/12 2/02 at 102 AA- 2,582,850
WEST VIRGINIA - 0.5%
2,000,000 West Virginia Housing Development Fund,
Alternative Minimum Tax, 7.200%, 11/01/20 5/02 at 102 Aa 2,075,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WISCONSIN - 2.1%
$ 5,950,000 Wisconsin Housing and Economic Development
Authority, 6.850%, 11/01/12 1/02 at 102 A1 $ 6,117,432
2,985,000 Silver Lake Sanitary District Sewer System,
8.000%, 10/01/18 10/02 at 100 N/R 3,083,922
WYOMING - 1.0%
4,000,000 Wyoming Community Development Authority,
Alternative Minimum Tax, 7.750%, 6/01/09 11/99 at 103 AA 4,219,560
$406,503,456 Total Investments - (cost $404,120,554) - 97.6% 420,172,829
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.8%
New Jersey Economic Development Authority,
Dock Facility (Bayonne/IMTT), Variable Rate
Demand Bonds:
$ 1,450,000 5.000%, 12/01/27t VMIG-1 1,450,000
600,000 4.950%, 12/01/27t VMIG-1 600,000
600,000 Port Authority of New York and New Jersey, Special
Obligation, Versatile Structure, Variable Rate
Demand Bonds, Alternative Minimum Tax,
5.050%, 8/01/28t VMIG-1 600,000
800,000 Port Authority of New York and New Jersey,
Versatile Structure, Variable Rate Demand Bonds,
4.800%, 5/01/19t A-1+ 800,000
$ 3,450,000 Total Temporary Investments - 0.8% 3,450,000
============
Other Assets Less Liabilities - 1.6% 7,082,030
Net Assets - 100% $430,704,859
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 37 $142,592,351 34%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 70,659,291 17
PORTFOLIO OF A+ A1 4 24,167,162 6
INVESTMENTS A, A- A, A2, A3 17 57,891,214 14
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 14 65,640,460 15
TEMPORARY Non-rated Non-rated 13 59,222,351 14
INVESTMENTS):
TOTAL 104 $420,172,829 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $774,048,452 $718,547,557 $1,164,432,668 $420,172,829
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 2,910,000 -- 5,400,000 3,450,000
Cash 95,110 3,229,556 1,215,745 447,606
Receivables:
Interest 17,196,373 14,305,490 24,218,271 8,163,407
Investments sold 65,532 243,279 1,195,474 175,000
Prepaid Preferred shares auction fees (note 1) 283,675 266,590 399,114 265,137
Other assets 73,248 49,443 85,595 42,857
------------ ------------ ------------- ------------
Total assets 794,672,390 736,641,915 1,196,946,867 432,716,836
------------ ------------ ------------- ------------
LIABILITIES
Payable for investments purchased -- 125,115 -- --
Accrued expenses:
Management fees (note 6) 408,600 379,467 609,411 226,113
Other 176,855 180,062 367,431 81,046
Preferred share dividends payable 469,975 454,837 736,549 64,292
Common share dividends payable 3,168,703 2,901,505 4,538,154 1,640,526
------------ ------------ ------------- ------------
Total liabilities 4,224,133 4,040,986 6,251,545 2,011,977
------------ ------------ ------------- ------------
Net assets (note 7) $790,448,257 $732,600,929 $1,190,695,322 $430,704,859
============ ============ ============== ============
Preferred shares, at liquidation value $250,000,000 $240,000,000 $ 400,000,000 $140,000,000
============ ============ ============== ============
Preferred shares outstanding 10,000 9,600 16,000 5,600
============ ============ ============== ============
Common shares outstanding 35,404,502 33,350,630 53,077,819 19,647,018
============ ============ ============== ============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 15.26 $ 14.77 $ 14.90 $ 14.80
============ ============ ============== ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1995
(Unaudited)
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $26,662,761 $24,448,604 $39,462,042 $14,191,318
------------ ------------ ------------ -----------
Expenses:
Management fees (note 6) 2,406,481 2,227,412 3,579,273 1,327,839
Preferred shares--auction fees 335,759 322,329 532,050 188,025
Preferred shares--dividend disbursing agent fees 19,836 19,836 27,273 9,919
Shareholders' servicing agent fees and expenses 49,059 46,532 79,635 22,809
Custodian's fees and expenses 52,299 45,568 66,262 38,599
Directors' fees and expenses (note 6) 4,186 4,566 6,260 2,586
Professional fees 6,433 10,566 14,424 9,790
Shareholders' reports--printing and mailing expenses 72,398 108,894 151,408 37,386
Stock exchange listing fees 19,803 19,029 28,243 5,488
Investor relations expense 28,747 19,747 43,889 7,984
Other expenses 16,276 17,944 46,634 12,834
------------ ------------ ----------- -----------
Total expenses 3,011,277 2,842,423 4,575,351 1,663,259
------------ ------------ ----------- -----------
Net investment income 23,651,484 21,606,181 34,886,691 12,528,059
------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment
transactions (note 3) (228,804) (99,505) 2,461,662 (1,009,256)
Net change in unrealized appreciation or depreciation
of investments 22,650,515 25,735,259 35,280,882 16,452,609
------------ ------------ ----------- -----------
Net gain from investments 22,421,711 25,635,754 37,742,544 15,443,353
------------ ------------ ----------- -----------
Net increase in net assets from operations $46,073,195 $47,241,935 $72,629,235 $27,971,412
============ ============ =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQM NQS
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 23,651,484 $ 46,705,099 $ 21,606,181 $ 43,574,518
Net realized gain (loss) from investment transactions (228,804) 101,899 (99,505) (6,626,291)
Net change in unrealized appreciation or depreciation
of investments 22,650,515 (62,309,886) 25,735,259 (61,883,373)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations 46,073,195 (15,502,888) 47,241,935 (24,935,146)
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (19,277,754) (39,478,158) (17,699,754) (35,968,688)
Preferred shareholders (5,070,061) (8,586,021) (4,831,525) (8,310,298)
From accumulated net realized gains from
investment transactions:
Common shareholders -- -- -- (572,641)
Preferred shareholders -- -- -- (92,880)
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (24,347,815) (48,064,179) (22,531,279) (44,944,507)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- 3,359,186 502,249 3,844,871
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions -- 3,359,186 502,249 3,844,871
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 21,725,380 (60,207,881) 25,212,905 (66,034,782)
Net assets at beginning of period 768,722,877 828,930,758 707,388,024 773,422,806
------------ ------------ ------------ ------------
Net assets at end of period $790,448,257 $768,722,877 $732,600,929 $707,388,024
============ ============ ============ ============
Balance of undistributed net investment income
at end of period $ 1,873,226 $ 2,569,557 $ 1,470,274 $ 2,395,372
============ ============ ============ ============
See accompanying notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQU NPF
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 34,886,691 $ 69,987,269 $ 12,528,059 $ 24,655,054
Net realized gain (loss) from investment transactions 2,461,662 (5,529,513) (1,009,256) 1,363,161
Net change in unrealized appreciation or depreciation
of investments 35,280,882 (107,979,689) 16,452,609 (37,983,881)
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets from operations 72,629,235 (43,521,933) 27,971,412 (11,965,666)
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (27,547,410) (58,082,228) (9,843,162) (20,432,905)
Preferred shareholders (8,115,147) (13,580,513) (2,626,495) (4,672,674)
From accumulated net realized gains from
investment transactions:
Common shareholders -- (1,124,003) (1,104,162) (216,118)
Preferred shareholders -- (211,980) (259,085) (41,510)
-------------- -------------- ------------ ------------
Decrease in net assets from distributions to shareholders (35,662,557) (72,998,724) (13,832,904) (25,363,207)
-------------- -------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- 873,962 -- --
-------------- -------------- ------------ ------------
Net increase in net assets derived from capital
share transactions -- 873,962 -- --
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets 36,966,678 (115,646,695) 14,138,508 (37,328,873)
Net assets at beginning of period 1,153,728,644 1,269,375,339 416,566,351 453,895,224
-------------- -------------- ------------ ------------
Net assets at end of period $1,190,695,322 $1,153,728,644 $430,704,859 $416,566,351
============== ============== ============ ============
Balance of undistributed net investment income
at end of period $ 2,744,313 $ 3,520,179 $ 1,604,893 $ 1,546,491
============== ============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 1995, the National Funds (the "Funds") covered in this report and
their corresponding New York Stock Exchange symbols are Nuveen Investment
Quality Municipal Fund, Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc.
(NQS), Nuveen Quality Income Municipal Fund, Inc. (NQU) and Nuveen Premier
Municipal Income Fund, Inc. (NPF).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At April 30, 1995, there were no such purchase commitments in any
of the Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal
income tax, to retain such tax-exempt status when distributed to shareholders
of the Funds.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
<PAGE>
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of accumulated net realized
capital gains, if applicable.
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in more than one Series. The
dividend rate on each Series may change every seven days, as set by the
auction agent, except for those Series which have lengthened their current
dividend periods from seven days to three years (as indicated below). The
number of shares outstanding, by Series and in total, for each Fund is as
follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Number of shares:
Series M 2,500* 2,000 3,000 --
Series T 2,500 2,000* 3,000 2,800*
Series W 2,500 2,800 3,000* --
Series Th -- -- 4,000* 2,800
Series F 2,500* 2,800* 3,000 --
------ ----- ------ -----
Total 10,000 9,600 16,000 5,600
====== ===== ====== =====
<FN>
*Three year period
Preferred share auction fees paid in connection with lengthening the dividend
periods on the Series noted above have been capitalized and are being
amortized over the respective dividend periods.
2. FUND SHARES
Transactions in Common shares were as follows:
<CAPTION>
NQM NQS
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- 208,785 34,939 248,378
====== ======= ====== =======
<CAPTION>
NQU NPF
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- 58,734 -- --
====== ====== ====== ======
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
April 30, 1995, were as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $20,767,373 $49,242,520 $123,783,300 $54,808,051
Temporary municipal investments 24,710,000 53,300,000 47,550,000 34,600,000
SALES AND MATURITIES
Investments in municipal securities 20,357,950 46,446,740 128,353,726 56,601,250
Temporary municipal investments 26,800,000 56,700,000 53,250,000 31,150,000
=========== =========== ============ ===========
At April 30, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At October 31, 1994, the Funds' last fiscal year end, the following Funds
had unused capital loss carryovers available for federal income tax purposes
to be applied against future security gains, if any. If not applied the
carryovers will expire as follows:
<CAPTION>
NQM NQS NQU
<S> <C> <C> <C>
Expiration year:
2001 $2,593,847 $ -- $ --
2002 -- 6,626,291 5,529,513
---------- ---------- ----------
Total $2,593,847 $6,626,291 $5,529,513
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1995, the Funds declared Common share dividend distributions from
their ordinary income which were paid June 1, 1995, to shareholders of record
on May 15, 1995, as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Dividend per share $.0895 $.0870 $.0855 $.0845
====== ====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1995, were as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $53,391,289 $39,941,715 $58,584,627 $16,875,192
Depreciation (5,745,572) (6,442,104) (5,512,276) (822,917)
----------- ----------- ----------- ------------
Net unrealized appreciation $47,645,717 $33,499,611 $53,072,351 $16,052,275
=========== =========== =========== ============
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors who are affiliated with the Adviser
or to their officers, all of whom receive remuneration for their services to
the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At April 30, 1995, net assets consisted of:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $250,000,000 $240,000,000 $ 400,000,000 $140,000,000
Common shares, $.01 par value per share 354,045 333,506 530,778 196,470
Paid-in surplus 493,397,920 464,023,334 737,415,731 272,358,652
Balance of undistributed net investment income 1,873,226 1,470,274 2,744,313 1,604,893
Accumulated net realized gain (loss) from
investment transactions (2,822,651) (6,725,796) (3,067,851) 492,569
Net unrealized appreciation or depreciation
of investments 47,645,717 33,499,611 53,072,351 16,052,275
------------ ------------ -------------- ------------
Net assets $790,448,257 $732,600,929 $1,190,695,322 $430,704,859
============ ============ ============== ============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000 1,000,000
============ ============ ============== ============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At April 30, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 16% 25% 22% 28%
Health Care Facilities 11 7 13 11
Pollution Control Facilities 10 12 12 4
Transportation 2 7 8 1
Educational Facilities 4 2 2 8
Electric Utilities 7 7 5 2
Water / Sewer Facilities 2 5 4 2
Lease Rental Facilities 3 -- 2 4
Other 7 3 6 7
General Obligation Bonds 3 3 8 13
Escrowed Bonds 35 29 18 20
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (51% for NQM, 36% for NQS, 31% for NQU and
25% for NPF). Such insurance or escrow, however, does not guarantee the market
value of the municipal securities or the value of any of the Funds'
shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as
follows:
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments** shareholders shareholderstt
NQM
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $14.650 $ .668 $ .630 $ (.545) $(.143)
Year ended 10/31,
1994 16.450 1.322 (1.761) (1.118) (.243)
1993 15.340 1.395 1.196 (1.230) (.214)
1992 15.130 1.441 .169 (1.157) (.243)
1991 13.930 1.457 1.185 (1.092) (.350)
6/21/90 to
10/31/90 14.050 .318 (.027) (.178) (.034)
<CAPTION>
NQS
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 14.030 .648 .768 (.531) (.145)
Year ended 10/31,
1994 16.130 1.311 (2.058) (1.083) (.250)
1993 14.920 1.348 1.304 (1.218) (.224)
1992 14.640 1.379 .197 (1.053) (.243)
3/21/91 to
10/31/91 14.050 .653 .671 (.425) (.124)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderstt offering costs of period period
NQM
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $ -- $ -- $ -- $15.260 $14.750
Year ended 10/31,
1994 -- -- -- 14.650 13.375
1993 (.031) (.006) -- 16.450 17.500
1992 -- -- -- 15.340 15.750
1991 -- -- -- 15.130 16.000
6/21/90 to
10/31/90 -- -- (.199) 13.930 14.250
<CAPTION>
NQS
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 -- -- -- 14.770 14.250
Year ended 10/31,
1994 (.017) (.003) -- 14.030 13.125
1993 -- -- -- 16.130 16.500
1992 -- -- -- 14.920 14.750
3/21/91 to
10/31/91 -- -- (.185) 14.640 15.000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
valuet valuet thousands) net assetsttt net assetsttt rate
NQM
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 14.65% 8.08% $790,448 .78*% 6.16*% 3%
Year ended 10/31,
1994 (17.87) (4.32) 768,723 .79 5.83 7
1993 19.75 16.01 828,931 .77 6.02 14
1992 5.67 9.29 783,237 .74 6.37 5
1991 20.66 17.08 769,837 .75 6.67 3
6/21/90 to
10/31/90 (3.80) .42 724,011 .72* 6.06* --
<CAPTION>
NQS
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 12.87 9.29 732,601 .80* 6.09* 7
Year ended 10/31,
1994 (14.45) (6.43) 707,388 .80 5.89 11
1993 20.73 16.87 773,423 .81 5.87 8
1992 5.41 9.32 727,874 .79 6.18 5
3/21/91 to
10/31/91 2.91 7.33 713,377 .79* 5.81* 1
See notes on page 62.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as
follows:
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments** shareholders shareholderstt
NQU
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $14.200 $ .657 $ .715 $ (.519) $(.153)
Year ended 10/31,
1994 16.400 1.319 (2.143) (1.095) (.256)
1993 14.620 1.341 1.824 (1.151) (.234)
1992 14.290 1.325 .276 (1.019) (.252)
6/19/91 to
10/31/91 14.050 .276 .329 (.168) (.021)
<CAPTION>
NPF
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 14.080 .638 .786 (.501) (.134)
Year ended 10/31,
1994 15.980 1.255 (1.864) (1.040) (.238)
1993 14.070 1.248 1.850 (.972) (.186)
12/19/91 to
10/31/92 14.050 .741 .191 (.640) (.090)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderstt offering costs of period period
NQU
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $ -- $ -- $ -- $14.900 $14.125
Year ended 10/31,
1994 (.021) (.004) -- 14.200 12.875
1993 -- -- -- 16.400 16.375
1992 -- -- -- 14.620 14.250
6/19/91 to
10/31/91 -- -- (.176) 14.290 14.625
<CAPTION>
NPF
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 (.056) (.013) -- 14.800 14.000
Year ended 10/31,
1994 (.011) (.002) -- 14.080 12.750
1993 (.026) (.004) -- 15.980 15.250
12/19/91 to
10/31/92 -- -- (.182) 14.070 14.000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
valuet valuet thousands) net assetsttt net assetsttt rate
NQU
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 13.98% 8.80% $1,190,695 .79*% 6.04*% 11%
Year ended 10/31,
1994 (15.32) (6.86) 1,153,729 .79 5.78 12
1993 23.62 20.73 1,269,375 .80 5.78 7
1992 4.35 9.64 1,170,752 .78 5.95 8
6/19/91 to
10/31/91 (1.39) 2.91 1,146,962 .74* 5.13* --
<CAPTION>
NPF
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 14.52 9.32 430,705 .80* 6.00* 13
Year ended 10/31,
1994 (10.05) (5.51) 416,566 .81 5.66 31
1993 16.68 21.31 453,895 .82 5.59 12
12/19/91 to
10/31/92 (2.47) 4.73 415,743 .79* 4.91* 14
<FN>
* Annualized.
** Net of taxes, if applicable.
t Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
tt The amounts shown are based on Common share equivalents.
ttt Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
Our commitment to you
Photo of John Nuveen
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
For almost a century, John Nuveen & Co. Incorporated has concentrated its
resources and expertise in one area: municipal bonds. We are one of the oldest
and largest investment banking firms specializing exclusively in municipal
securities, and we strive to be the best.
Our approach to managing our shareholders' investments endures. We maintain
a sharp focus on the needs of prudent investors and their families, offer
investments of quality, and then work to make them better by seeking out
opportunity. We hold to a dedicated belief in the importance of research. And
we sustain a commitment to sound financial management through value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we strive to provide our
shareholders with the attractive level of income they need to achieve their
personal goals and aspirations.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF3-JUN 95
