Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND
ANNUAL REPORT/JULY 31, 1995
Photographic image of man seated at breakfast table with wife standing behind
him.
Photographic image of Nuveen Research Department. Four people around a table
working.
Research: a foundation
Your financial plan is in place. You and your adviser have made asset
allocation decisions. For the tax-free portion of your portfolio, you want
dependable income, safety of principal, and diversification. Solid, reliable
Nuveen research helps to keep your tax-free investments on the path you have
chosen.
Paul Williams, Vice President and Manager of Investment Strategies and
Research, emphasizes fundamental research as a strategy for finding value.
<PAGE>
The strength of Nuveen's Research Department is illustrated by the numerous
awards and press coverage we receive. Annual industry polls consistently
recognize the quality and depth of Nuveen Research.
Photographic image of a grouping of awards/statuettes.
At Nuveen, we believe that attention to detail combined with years of
experience is the foundation for sound research. Sound research means finding
quality bonds that deliver timely and dependable income over many decades.
Beyond this, it means adding value by identifying bonds whose credit strengths
are not yet understood by the market.
USING RESEARCH TO TRACK QUALITY AND VALUE
With tens of thousands of bonds available for investment today, the municipal
market is one of the nation's largest--and most complex--securities markets. At
the same time, the number of analysts devoted to researching the municipal
market is comparatively small. While more than 12,000 analysts at nearly 2,000
firms and investment organizations research the 7,500 common stocks available
in the equity market, approximately 1,000 analysts at 400 firms and rating
agencies cover 60,000 municipal bond issues.
Selecting those bonds that will outperform the market and help you achieve
your investment goals depends upon an ability to analyze and understand
complexities ranging from the demand for a new highway or airport to the impact
of an industry closure on the financial position of a town's water and sewer
system.
At Nuveen, we can provide this depth because we have the largest research
staff in the investment banking industry devoted exclusively to the analysis of
municipal bonds. Our award-winning team of more than 30 research professionals
provides invaluable support to our portfolio managers, assisting them in
careful analysis of bond issues considered for purchase--even those rated AAA.
On a daily basis, our research analysts prepare credit reviews to assist in
the selection of bonds that offer the best combination of yield and security,
monitor the continued creditworthiness of portfolio holdings, and analyze
economic, political, and demographic trends affecting the markets.
The scope of this analysis is broad. We understand the beneficial insights
that can be obtained by assessing the impact of local elections in small towns
or gaining an understanding of the global wood pulp market to accurately
evaluate a municipal issue in Alaska. Recently a financial adviser noticed a
large number of clippings on salmon fishing on one Nuveen analyst's desk. The
analyst explained that the articles provided information on salmon spawning, a
conservation issue having a major impact on public hydroelectric projects in
the Pacific Northwest. With the largest research staff in the industry, we can
analyze subtle but essential details such as this--and apply our findings to
enhance the performance of your portfolio.
<PAGE>
BENEFITING OUR INVESTORS
The Nuveen Research Department supports the investment goals of fund investors
through three major activities:
Primary research and surveillance
Every year, our research staff reviews thousands of tax-exempt issues valued at
more than $100 billion to help our portfolio managers select the most
appropriate bonds based on current yield, price, credit quality, and future
prospects.
A recent example of the way Nuveen Research benefits our shareholders was our
successful investment in Philadelphia water and sewer bonds. When the city
decided to issue bonds to fund badly needed capital improvements, the city's
fiscal difficulties resulted in an issue that was priced below that of other
cities for similar bonds, generating higher income. However, Nuveen's own
research performed independently from the rating agencies indicated that the
city water and sewer system was economi-cally sound and that adequate legal
safeguards would be in place to protect the investment. Following the
completion of the improvements, the prices of these bonds resulted in a sizable
portfolio gain to our shareholders.
Research reports
Just as you rely on your financial adviser for seasoned, prudent advice,
financial advisers depend on Nuveen's research reports to keep current on
market developments. Reports cover issues ranging from credit analysis of
specific states to comprehensive examinations of tax-free investment strategies
and the impact of national and state elections on municipal issues. (For a list
of research reports currently available to you and your adviser, please refer
to the attached reply card.)
Investor interests
We take our responsibility to our shareholders seriously by actively
representing their interests before the industry and government groups that
oversee and regulate the markets. We testified before a U.S. Senate
subcommittee to support better disclosure of financial information by bond
issuers. Our analysis of the effect of the Orange County bankruptcy on other
California issuers helped a California Senate subcommittee understand the
importance of fiscal conservatism and prudent policy decisions. By providing
informed opinions backed by years of experience, we help to define and set
policy that benefits you.
At Nuveen, quality research is one of the core elements of our disciplined
approach to providing you with dependable income, credit quality, and
diversification--key elements of a successful investment program.
Nuveen's research reports are often used by the press as background when
covering the municipal market in depth.
Photographic image of a grouping of research reports and newspapers.
<PAGE>
Photographic image of man seated at breakfast table with wife standing behind
him.
CONTENTS
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
13 Fund performance
16 Commonly used terms
18 Portfolio of investments
36 Statement of net assets
38 Statement of operations
40 Statement of changes in net assets
43 Notes to financial statements
52 Financial highlights
56 Report of independent auditors
57 Nuveen Exchange-Traded Funds dividend reinvestment program
<PAGE>
Municipal market perspective
The year ended July 31, 1995, was an eventful one for the municipal bond
market. During the second half of 1994, as the Federal Reserve Board steadily
raised short-term interest rates in an effort to forestall inflation, the
prices of all bonds and bond funds moved lower. Then, in December, the sudden
announcement of the bankruptcy of Orange County, California, put further
pressure on the municipal market.
During the first six months of 1995, as it appeared that the economy was indeed
headed for a soft landing and that inflation had been thwarted, the bond market
rebounded. In July, the Federal Reserve Board reversed course, easing
short-term interest rates. We're already beginning to see positive effects from
the Fed's program. Since the beginning of the year, interest rates have moved
closer to the levels prevailing before the Fed's tightening began. Inflation
seems to have been held in check, however, a strong stock market and continued
debate about tax reform, including a proposed flat tax, have had a tempering
effect on the performance of the municipal bond market.
<PAGE>
Dear shareholder
Photographic image of Richard Franke, Chairman of Nuveen.
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
Over the past 12 months, we have endured somewhat of a roller-coaster ride in
the municipal bond market. First, we saw the conclusion of one of the worst
periods in recent bond market history, capped by the December bankruptcy of
Orange County, California, a major municipal issuer with a seemingly healthy
credit rating. Then, in early 1995, we experienced a welcome rebound in the
bond markets.
Throughout this turbulent time, we have kept our sights focused on
successfully meeting the objectives of your funds: providing you with a source
of stable current income, credit quality, and enhanced share price relative to
the market as a whole.
As of July 31, 1995, current yields on share prices for the funds covered in
this report ranged from 5.72% to 6.92%. To match these yields, an investor in
the 36% federal income tax bracket would have had to earn at least 8.94% on
taxable alternatives of comparable quality. As we all know, taxable yields of
this level can be difficult to achieve in today's markets.
These yields remind us of the important role that municipal bonds--with their
tax-free income--play as part of a successful investment strategy focused on
diversification and long-term performance. As we saw in 1994, fluctuations in
interest rates, the markets, and the economy in general can cause investors to
reconsider their investment strategies. At such times, it is important to
remember that performance over the long term is the true measure of an
investment. And over time, municipal bonds have proven to be a valuable and
dependable component of successful investment programs.
It is your long-term financial plan that prompted you to make the initial
choice to include municipal bonds as an integral part of your investment
portfolio. As part of a long-term strategy, Nuveen offers not only the income
and credit safety of municipal bonds, but also the convenience of investment
products that provide direct access to diversification, professional
management, and stock exchange trading convenience. Our exchange-traded funds
make it easier for you to be well diversified across municipal market sectors,
while saving you the time and effort involved if you were to structure and
monitor a portfolio of individual municipal bonds yourself.
<PAGE>
As 1995 concludes, we will be keeping a close eye on credit trends. With the
expansion of the economy, the financial strength of municipal issuers is
continuing to improve. By now, most observers have concluded that the Orange
County default was an anomaly, related to an unusually speculative investment
approach rather than any inherent weakness in the municipal bond market itself.
Of course, since the funds in this report specialize in bonds of certain
states, they did not hold any California bonds. If you are interested in credit
quality, you may want to read the article at the beginning of this report to
learn more about the role and activities of our award-winning research
department, including the tracking and monitoring of developments in the credit
arena.
We expect that municipal bonds will continue to be fundamentally sound
investments for attractive, tax-free income. As a higher percentage of our
population enters retirement and pre-retirement years, we anticipate the demand
for tax-free municipal bonds to remain strong.
In closing, I'd like to take this opportunity to assure you that your choice
of Nuveen as your fund manager is a wise one. We appreciate your continued
confidence and look forward to providing you with quality tax-free investments
in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
September 15, 1995
<PAGE>
Answering your questions
Photographic image of montage of letters received by Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
recent developments in the municipal market and the outlook for Nuveen's
Exchange-Traded Funds
I have read that some of Nuveen's Funds are "leveraged." How exactly does
leverage work? What are the advantages of leverage to me as a common
shareholder?
All Nuveen exchange-traded funds issue common shares and provide an attractive
stream of monthly tax-free income. Many of our funds, including all funds in
this report, are able to generate a higher level of income for common
shareholders through a strategy called leverage.
Here's how leverage works: Some investors look for investments offering
short-term liquidity. To meet the needs of these investors, certain Nuveen
exchange-traded funds issue preferred shares paying a short-term rate that is
lower than the rate earned on the fund's long-term portfolio. Proceeds from the
issuance of the preferred shares are used to buy additional investment-grade
long-term bonds. Common shareholders benefit from these additional holdings
through the extra income generated by the difference between the long-term
rates earned by the fund and the short-term rates paid to preferred
shareholders.
For example, if we pay out 4% to investors who want short-term liquidity
while investing for the long term at 7%, the difference of 3% increases the
income available to the common shareholders.
However, leverage can add volatility to fund shares because all changes in
value are attributed to the common shareholder--both up and down. At Nuveen, we
take a prudent approach to leverage, carefully balancing risk and return,
limiting the percentage of leverage in a given portfolio at the time of
issuance, and moderating portfolio fluctuations through conservative portfolio
management.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
What do you see happening to dividends over the next few months?
Over the past year, even with the uneven markets, the monthly dividends paid by
Nuveen's exchange-traded funds have remained relatively stable. This is mainly
due to two factors: our dividend policy and our emphasis on credit quality.
<PAGE>
At Nuveen, we set our core dividend rates at levels that we consider
sustainable over time, factoring in such influences as short-term interest rate
trends, the expected number of bond calls, and reinvestment. Nonetheless,
eventually changes in dividend rates should be expected in response to interest
rate movements.
What impact have interest rates had on bond portfolios? Where are these rates
trending over the next year?
Over the past 15 months, all bond investors, including holders of
exchange-traded municipal bond funds, have felt the effect of rising interest
rates on the value of their fixed income portfolios.
At Nuveen, we don't believe it is consistently possible to forecast
directions in interest rates or the economy as a whole. We concentrate on those
aspects of fund performance where we can exercise some control: credit quality,
relative value, and diversification.
If you are concerned about the direction of interest rates, you may want to
consider "laddering" your portfolio. Laddering is a strategy in which an
investor purchases three or more funds with varying average maturities. Mixing
the maturity and yield profile of funds within a total portfolio can reduce the
overall effect of increases and decreases in interest rates.
What about the future?
At Nuveen, we recommend viewing your investment as part of a long-term
strategy. The benefits of taking the long view are two-fold. First, market
timing, the attempt to buy when the market is at its lowest point and to sell
at its peak, is rarely successful. Statistics show that, over time, the rewards
of investing tend to go to those who set and maintain clear investment
objectives and strategies, rather than to those who change their approach with
every change in the market.
Second, you must also consider your long-term needs for diversification and
dependable income, the reasons you chose Nuveen's exchange-traded municipal
funds in the first place. While the markets may fluctuate, your investment
needs are more constant. With municipal bonds being one of the last remaining
tax shelters, Nuveen's exchange-traded funds continue to provide the
risk/reward balance and the steady source of tax-free income that are important
elements of a prudent investment program.
<PAGE>
<TABLE>
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC.
NAZ
In keeping with the Fund's objective of providing steady tax-free income,
shareholders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
8/94 $0.0650
9/94 $0.0650
10/94 $0.0650
11/94 $0.0650
12/94 $0.0650
1/95 $0.0650
2/95 $0.0650
3/95 $0.0650
4/95 $0.0650
5/95 $0.0650
6/95 $0.0650
7/95 $0.0650
<CAPTION>
FUND HIGHLIGHTS 7/31/95
<S> <C>
Yield 5.72%
Taxable-equivalent yield 9.45%
Annual total return on NAV 9.98%
Taxable-equivalent total return 13.83%
Share price $13.625
NAV $14.12
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC.
NUM
Shareholders of NUM enjoyed a year of relatively steady monthly dividends, with
a modest dividend reduction in June reflecting the effect of bond calls.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividend Capital Gains
<S> <C> <C> <C>
8/94 $0.0825 $0.0150
9/94 $0.0825
10/94 $0.0825
11/94 $0.0825
12/94 $0.0825 $0.0491
1/95 $0.0825
2/95 $0.0825
3/95 $0.0825
4/95 $0.0825
5/95 $0.0825
6/95 $0.0795
7/95 $0.0795
<CAPTION>
FUND HIGHLIGHTS 7/31/95
<S> <C>
Yield 6.41%
Taxable-equivalent yield 10.77%
Annual total return on NAV 8.02%
Taxable-equivalent total return 12.70%
Share price $14.875
NAV $15.10
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC.
NMP
Shareholders of NMP enjoyed a year of relatively steady monthly dividends, with
a modest dividend reduction in May reflecting the effect of bond calls.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
8/94 $0.0675
9/94 $0.0675
10/94 $0.0675
11/94 $0.0675
12/94 $0.0675
1/95 $0.0675
2/95 $0.0675
3/95 $0.0675
4/95 $0.0675
5/95 $0.0645
6/95 $0.0645
7/95 $0.0645
<CAPTION>
FUND HIGHLIGHTS 7/31/95
<S> <C>
Yield 6.45%
Taxable-equivalent yield 10.84%
Annual total return on NAV 8.45%
Taxable-equivalent total return 12.62%
Share price $12.00
NAV $13.73
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC.
NUO
In keeping with the Fund's objective of providing steady tax-free income,
shareholders enjoyed 12 months of stable dividends, in addition to a
supplemental dividend.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividend Capital Gains
<S> <C> <C> <C>
8/94 $0.0775 $0.0150
9/94 $0.0775
10/94 $0.0775
11/94 $0.0775
12/94 $0.0775
1/95 $0.0775
2/95 $0.0775
3/95 $0.0775
4/95 $0.0775
5/95 $0.0775
6/95 $0.0775
7/95 $0.0775
<CAPTION>
FUND HIGHLIGHTS 7/31/95
<S> <C>
Yield 6.15%
Taxable-equivalent yield 10.42%
Annual total return on NAV 10.16%
Taxable-equivalent total return 14.73%
Share price $15.125
NAV $15.33
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND
NTX
In keeping with the Fund's objective of providing steady tax-free income,
shareholders enjoyed 12 months of stable dividends, in addition to a
supplemental dividend.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividend Capital Gains
<S> <C> <C> <C>
8/94 $0.0800 $0.0200
9/94 $0.0800
10/94 $0.0800
11/94 $0.0800
12/94 $0.0800
1/95 $0.0800
2/95 $0.0800
3/95 $0.0800
4/95 $0.0800
5/95 $0.0800
6/95 $0.0800
7/95 $0.0800
<CAPTION>
FUND HIGHLIGHTS 7/31/95
<S> <C>
Yield 6.92%
Taxable-equivalent yield 10.81%
Annual total return on NAV 9.89%
Taxable-equivalent total return 13.81%
Share price $13.875
NAV $14.91
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, July 31, 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, these tax rates are assumed to
be 39.5% for AZ, 40.5% for MI, 41% for OH, and 36% for TX, based on incomes of
$117,950-$256,500 for investors filing singly, $143,600-$256,500 for those
filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by the total number of common shares
outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value per share, both up and down, are also
magnified by leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended July 31, 1995. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC. (NAZ)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,150,000 Arizona Municipal Financing Program, Certificates of
Participation, 6.000%, 8/01/17 8/02 at 101 Aaa $ 2,166,942
1,500,000 Arizona State Transportation Board, 6.000%, 7/01/10
(Pre-refunded to 7/01/00) 7/00 at 101 Aaa 1,608,855
500,000 Arizona State University, 5.750%, 7/01/12 7/02 at 101 AA 498,365
1,750,000 Arizona Student Loan Acquisition Authority, Alternative
Minimum Tax, 6.600%, 5/01/10 5/04 at 102 Aa 1,829,258
Bullhead City Special Assessment:
910,000 6.100%, 1/01/08 1/03 at 103 Baa 914,113
970,000 6.100%, 1/01/09 1/03 at 103 Baa 966,421
2,000,000 Central Arizona Conservation District,
5.500%, 11/01/10 No Opt. Call AA- 1,977,460
1,600,000 Lake Havasu Municipal Property Corporation,
6.000%, 6/01/08 6/02 at 101 Aaa 1,658,624
1,400,000 Maricopa Rural Road Improvement District,
7.000%, 7/01/07 7/99 at 101 N/R 1,456,252
2,500,000 Maricopa County Industrial Development Authority
(Catholic Healthcare West), 5.750%, 7/01/11 7/02 at 102 Aaa 2,494,675
3,500,000 Maricopa County Industrial Development Authority
(Samaritan Health Services), 7.000%, 12/01/16 No Opt. Call Aaa 4,052,405
Maricopa County School District No. 28, General
Obligation:
3,195,000 6.000%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 100 Aaa 3,445,520
605,000 6.000%, 7/01/12 7/02 at 100 Aaa 614,529
Maricopa County School District No. 49:
100,000 6.400%, 7/01/03 7/00 at 101 Baa1 103,800
175,000 6.500%, 7/01/04 7/00 at 101 Baa1 181,479
2,500,000 Maricopa County Unified School District No. 69,
General Obligation, 5.875%, 7/01/12 7/03 at 102 Aaa 2,534,525
1,400,000 Maricopa County Unified School District No. 80,
General Obligation, 5.950%, 7/01/10 7/03 at 101 Aaa 1,440,040
Mohave County Industrial Development Authority
(Medical Environments Inc. and Phoenix Baptist Hospital):
5,000,000 6.750%, 7/01/08 7/03 at 102 Baa 5,186,100
1,000,000 7.000%, 7/01/16 7/03 at 102 Baa 1,019,220
2,000,000 Mohave County Industrial Development Authority
(Citizens Utilities Company), Alternative Minimum
Tax, 6.600%, 5/01/29 11/03 at 101 AAA 2,042,720
2,000,000 Mohave County Hospital District No. 1, General
Obligation, 6.500%, 6/01/15 6/02 at 101 Aaa 2,082,780
1,000,000 Navajo County Pollution Control Corporation
(Arizona Public Service Company), 5.875%, 8/15/28 8/03 at 102 Baa1 934,640
2,500,000 Phoenix General Obligation, 6.375%, 7/01/13 7/02 at 102 AA+ 2,584,750
Phoenix Civic Improvement Corporation, Wastewater System:
2,500,000 5.000%, 7/01/10 7/04 at 102 A1 2,258,000
4,700,000 6.125%, 7/01/23 (Pre-refunded to 7/01/03) 7/03 at 102 AAA 5,200,033
2,150,000 Phoenix Civic Plaza Building Corporation,
6.000%, 7/01/14 7/05 at 101 AA+ 2,180,810
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,720,000 Phoenix Water System, 5.500%, 7/01/22 7/03 at 101 AA $ 2,570,482
470,000 Phoenix Industrial Development Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.150%, 6/01/08 6/05 at 102 AAA 476,260
2,400,000 Pima County Industrial Development Authority
(Tucson Electric), 7.250%, 7/15/10 1/02 at 103 Aaa 2,649,936
1,510,000 Pima County, Metropolitan Domestic Water
Improvement District, 6.200%, 1/01/12 1/03 at 101 Aaa 1,563,228
500,000 Pima County Single Family Mortgage, 6.500%, 2/01/17 8/05 at 102 A 498,275
Salt River Project, Agricultural Improvement and Power
District:
3,900,000 5.000%, 1/01/16 1/04 at 102 Aa 3,456,765
1,800,000 5.750%, 1/01/19 1/02 at 100 Aa 1,750,284
1,000,000 Scottsdale Industrial Development Authority
(Scottsdale Memorial Hospitals), 5.250%, 9/01/18 9/03 at 102 Aaa 915,030
2,000,000 Tempe Union High School District No. 213, General
Obligation, 6.000%, 7/01/12 7/04 at 101 Aaa 2,046,520
3,000,000 Tucson General Obligation, 6.250%, 7/01/18 7/04 at 101 Aaa 3,100,500
5,000,000 Tucson Airport Authority, 5.700%, 6/01/13 6/03 at 102 Aaa 4,895,500
725,000 Tucson Certificates of Participation, 6.375%, 7/01/09 7/04 at 100 AA 757,763
2,000,000 Tucson Junior Lien, Street and Highway, 5.500%, 7/01/12 7/03 at 102 Aaa 1,956,820
2,000,000 Tucson Senior Lien, Street and Highway, 5.500%, 7/01/09 7/03 at 102 A1 1,973,140
3,500,000 Tucson Water System, 5.750%, 7/01/18 7/02 at 102 A1 3,404,310
University of Arizona, Certificates of Participation:
100,000 6.500%, 7/15/12 7/02 at 102 A+ 105,690
650,000 6.000%, 7/15/23 7/04 at 102 Aaa 650,485
1,000,000 University of Arizona, 6.250%, 6/01/11 6/02 at 102 AA 1,041,180
2,000,000 University Medical Center Corporation (Tucson),
6.250%, 7/01/16 7/02 at 102 Aaa 2,054,840
2,000,000 Puerto Rico General Obligation, 5.250%, 7/01/18 7/03 at 101 1/2 A 1,784,740
$87,880,000 Total Investments - (cost $86,507,427) - 98.5% 89,084,064
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.0%
$ 900,000 Maricopa County Pollution Control (Arizona Public
===========
Service Co., Palo Verde Project), Variable Rate Demand
Bonds, 4.200%, 5/01/29t A-1+ 900,000
Other Assets Less Liabilities - 0.5% 449,923
Net Assets - 100% $90,433,987
===========
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 22 $49,650,767 56%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 10 18,647,117 21
PORTFOLIO OF A+ A1 4 7,741,140 9
INVESTMENTS A, A- A, A2, A3 2 2,283,015 2
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 7 9,305,773 10
TEMPORARY Non-rated Non-rated 1 1,456,252 2
INVESTMENTS):
TOTAL 46 $89,084,064 100%
<FN>
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. (NUM)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Michigan Building Authority:
$ 4,800,000 6.250%, 10/01/20 10/01 at 102 AA- $ 4,808,592
4,255,000 6.800%, 10/01/21 10/01 at 102 AA- 4,468,941
4,000,000 Michigan Comprehensive Transportation, 5.750%, 5/15/11 5/02 at 100 AA- 3,934,440
5,750,000 Michigan General Obligation, 5.400%, 11/01/19 11/05 at 101 AA 5,339,163
Michigan Higher Education, Student Loan Authority,
Alternative Minimum Tax:
1,000,000 6.800%, 10/01/07 10/02 at 102 A 1,051,350
1,250,000 6.800%, 10/01/08 10/02 at 102 A 1,347,313
990,000 6.800%, 10/01/09 10/02 at 102 A 1,040,837
1,450,000 Michigan Hospital Finance Authority (McLaren Obligated
Group), 7.500%, 9/15/21 (Pre-refunded to 9/15/01) 9/01 at 102 Aaa 1,693,992
8,800,000 Michigan Hospital Finance Authority (Mercy Mt. Clemens),
6.000%, 5/15/17 5/01 at 100 Aa 8,438,144
Michigan Housing Development Authority, Single
Family Mortgage:
4,740,000 6.950%, 12/01/20 12/01 at 102 AA 4,933,676
2,440,000 6.875%, 6/01/23 6/02 at 102 AA 2,531,964
5,250,000 Michigan Housing Development Authority, Limited
Obligation (Parkway Meadows Project), 6.850%, 10/15/18 10/02 at 103 Aaa 5,492,445
9,750,000 Michigan Housing Development Authority, Rental
Housing, 7.100%, 4/01/21 1/02 at 102 A+ 10,200,938
2,300,000 Michigan Housing Development Authority, Rental
Housing, Alternative Minimum Tax, 7.150%, 4/01/10 1/02 at 102 A+ 2,427,558
<PAGE>
Michigan Municipal Bond Authority:
2,000,000 6.650%, 5/01/12 5/02 at 102 A 2,025,000
3,100,000 6.600%, 10/01/18 10/02 at 102 Aa 3,238,229
Michigan Public Power Agency (Belle River Project):
5,750,000 5.250%, 1/01/18 1/03 at 102 AA- 5,169,710
3,000,000 6.625%, 1/01/19 (Pre-refunded to 1/01/96) 1/96 at 100 AAA 3,036,480
1,000,000 6.625%, 1/01/19 (Pre-refunded to 1/01/96) 1/96 at 100 Aaa 1,012,750
2,390,000 Michigan South Central Power Agency, 6.750%, 11/01/10 11/01 at 102 A 2,524,892
Michigan State Hospital Finance Authority (The Detroit
Medical Center):
5,090,000 8.125%, 8/15/08 (Pre-refunded to 8/15/98) 8/98 at 102 Aaa 5,734,598
410,000 8.125%, 8/15/08 8/98 at 102 A 456,441
1,720,000 5.500%, 8/15/23 8/04 at 102 A 1,493,407
9,355,000 Michigan State Hospital Finance Authority (Daughters
of Charity Health System), 7.000%, 11/01/21 11/01 at 102 Aa 9,968,033
3,035,000 Michigan State Hospital Finance Authority (Mid-Michigan
Obligated Group), 6.900%, 12/01/24 12/02 at 102 A 3,129,266
Michigan State Trunk Line:
7,200,000 7.000%, 8/15/17 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa 8,029,080
5,000,000 5.500%, 10/01/21 10/02 at 100 AA- 4,591,500
3,000,000 Michigan State University, 6.250%, 8/15/15 8/02 at 101 AA- 3,057,900
Michigan Strategic Fund (The Detroit Edison Company):
4,330,000 6.950%, 9/01/21 9/01 at 102 Aaa 4,696,448
7,600,000 6.875%, 12/01/21 12/01 at 102 Aaa 8,187,480
1,500,000 Ann Arbor Water Supply System, 5.500%, 2/01/13 2/03 at 101 1/2 Aaa 1,435,065
1,200,000 Berkley School District, General Obligation,
6.000%, 1/01/19 1/05 at 101 Aaa 1,183,596
2,450,000 Dearborn Economic Development Corporation (Oakwood
Obligated Group), 5.750%, 11/15/15 11/05 at 102 Aaa 2,364,495
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 7,000,000 Detroit Economic Development Corporation, Resource
Recovery, Alternative Minimum Tax, 6.875%, 5/01/09 5/01 at 102 Aaa $ 7,516,810
1,000,000 Detroit Sewage Disposal System, 6.900%, 12/15/99 No Opt. Call Aaa 1,046,560
6,500,000 Detroit Water Supply System, 5.000%, 7/01/23 7/04 at 102 Aaa 5,624,255
1,600,000 Gaylord Community Schools General Obligation,
6.600%, 5/01/21 (Pre-refunded to 5/01/02) 5/02 at 102 AA 1,796,336
3,075,000 Goodrich Area Schools, General Obligation,
5.875%, 5/01/24 5/05 at 102 Aaa 2,997,633
3,000,000 Grand Rapids Community College District, Limited Tax,
General Obligation, 5.000%, 5/01/21 5/03 at 102 AA- 2,560,080
Greenville Public Schools, General Obligation:
1,325,000 5.750%, 5/01/14 5/04 at 101 Aaa 1,296,619
2,000,000 5.750%, 5/01/24 5/04 at 101 Aaa 1,915,860
1,250,000 Gull Lake Community Schools, 6.800%, 5/01/21
(Pre-refunded to 5/01/01) 5/01 at 102 Aaa 1,406,688
2,000,000 Hart Public Schools, General Obligation, 5.800%, 5/01/16 5/05 at 101 Aaa 1,948,040
3,100,000 Hemlock Public Schools, General Obligation,
6.750%, 5/01/21 5/02 at 102 AA 3,241,081
4,225,000 Lake Orion Community School District, General
Obligation, 5.500%, 5/01/20 5/05 at 101 Aaa 3,948,812
1,000,000 Marquette Area Public Schools, General Obligation,
6.700%, 5/01/21 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 1,120,350
6,400,000 Mattawan Consolidated School District, 6.300%, 5/01/17 5/02 at 102 AA 6,459,136
7,000,000 Monroe County Economic Development Corporation,
Pollution Control (The Detroit Edison Company),
Alternative Minimum Tax, 6.875%, 9/01/22 9/02 at 102 Aaa 7,398,510
North Branch Area Schools, General Obligation:
2,150,000 6.600%, 5/01/17 (Pre-refunded to 5/01/02) 5/02 at 102 AA 2,416,493
1,475,000 5.375%, 5/01/21 5/03 at 101 1/2 Aaa 1,352,929
2,000,000 Oakland University, 5.750%, 5/15/15 5/05 at 102 Aaa 1,951,360
1,500,000 Perry Public Schools, General Obligation,
6.375%, 5/01/22 (Pre-refunded to 5/01/02) 5/02 at 101 1/2 Aaa 1,663,875
4,650,000 Plymouth-Canton Community School District,
6.800%, 5/01/11 (Pre-refunded to 5/01/01) 5/01 at 101 AA 5,187,075
6,385,000 Royal Oak Hospital Finance Authority (William
Beaumont Hospital), 6.750%, 1/01/20 1/01 at 102 Aa 6,609,944
4,845,000 Saginaw-Midland Municipal Water Supply Corporation,
6.875%, 9/01/16 9/04 at 102 A 5,062,782
University of Michigan, Medical Service Plan:
2,195,000 0.000%, 12/01/10 No Opt. Call Aa 872,951
9,250,000 6.500%, 12/01/21 12/01 at 102 AA- 9,634,892
4,200,000 Warren Consolidated Schools, 6.700%, 5/01/21
(Pre-refunded to 5/01/01) 5/01 at 102 A1 4,687,368
5,280,000 Warren Economic Development Corporation (Autumn
Woods Project-GNMA), 6.900%, 12/20/22 3/02 at 101 Aaa 5,387,078
2,505,000 Wayne County (Detroit Metropolitan Airport),
Alternative Minimum Tax, 6.750%, 12/01/21 12/01 at 102 Aaa 2,646,682
1,250,000 Wayne County (Detroit Metropolitan Airport),
6.000%, 12/01/20 12/00 at 100 Aaa 1,225,950
1,500,000 Western Michigan University, 5.500%, 7/15/16 7/03 at 102 Aaa 1,417,980
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Western Township Utilities Authority, Sewage Disposal
System:
$ 1,500,000 6.750%, 1/01/15 1/02 at 100 Aaa $ 1,586,024
1,895,000 8.300%, 1/01/19 1/99 at 102 BBB+ 2,150,541
6,250,000 6.500%, 1/01/19 1/02 at 100 Aaa 6,447,500
5,000,000 Wyandotte Electric System, 6.250%, 10/01/17 10/02 at 102 Aaa 5,086,600
$240,210,000 Total Investments - (cost $233,041,357) - 98.7% 244,708,517
============
Other Assets Less Liabilities - 1.3% 3,198,771
Net Assets - 100% $247,907,288
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 32 $107,852,544 44%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 21 99,258,280 41
PORTFOLIO OF A+ A1 3 17,315,864 7
INVESTMENTS: A, A- A, A2, A3 9 18,131,288 7
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 2,150,541 1
TOTAL 66 $244,708,517 100%
<FN>
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. (NMP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,750,000 Michigan Building Authority, 6.250%, 10/01/20 10/01 at 102 AA- $ 3,756,713
Michigan Comprehensive Transportation:
1,090,000 5.750%, 5/15/11 5/02 at 100 AA- 1,072,135
3,275,000 5.750%, 5/15/12 5/02 at 100 AA- 3,192,143
1,025,000 Michigan Hospital Finance Authority (St. Joseph
Hospital), 8.125%, 7/01/05 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 1,064,565
2,000,000 Michigan Hospital Finance Authority (Otsego Memorial
Hospital Gaylord), 6.250%, 1/01/20 1/05 at 102 AA 1,975,200
5,250,000 Michigan Housing Development Authority, Single
Family Mortgage, 6.800%, 12/01/16 6/05 at 102 AA+ 5,457,165
2,400,000 Michigan Housing Development Authority (Walled Lake
Villa Project), 6.000%, 4/15/18 4/04 at 103 Aaa 2,338,800
Michigan Housing Development Authority:
3,500,000 5.875%, 10/01/17 4/03 at 102 Aaa 3,392,235
1,500,000 5.625%, 10/15/18 10/03 at 103 Aaa 1,401,435
Michigan Housing Development Authority, Rental
Housing:
4,000,000 6.500%, 4/01/06 10/02 at 102 A+ 4,202,280
4,300,000 6.600%, 4/01/12 10/02 at 102 A+ 4,415,369
1,950,000 Michigan Municipal Bond Authority, State Revolving
Fund, 7.000%, 10/01/03 No Opt. Call Aa 2,214,284
3,750,000 Michigan Public Power Agency (Belle River Project),
5.250%, 1/01/18 1/03 at 102 AA- 3,371,550
700,000 Michigan State Hospital Finance Authority (Daughters
of Charity Health System), 7.000%, 11/01/21 11/01 at 102 Aa 745,871
4,000,000 Michigan State Hospital Finance Authority (Henry
Ford Health System), 5.750%, 9/01/17 9/02 at 102 Aa 3,803,240
3,000,000 Michigan State Hospital Finance Authority (St. John
Hospital), 6.000%, 5/15/13 5/03 at 102 Aaa 3,004,050
Michigan State Hospital Finance Authority (Detroit
Medical Center):
1,500,000 5.000%, 8/15/02 No Opt. Call A- 1,460,925
3,000,000 6.250%, 8/15/13 8/03 at 102 A 2,949,000
3,200,000 6.500%, 8/15/18 8/03 at 102 A 3,211,552
4,000,000 Michigan State Hospital Finance Authority (Oakwood
Hospital), 5.500%, 11/01/13 11/03 at 102 Aaa 3,775,320
Michigan State Trunk Line:
1,750,000 5.700%, 11/15/15 11/04 at 102 AA 1,678,775
2,500,000 7.000%, 8/15/17 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa 2,787,875
3,595,000 Michigan State University, 5.500%, 8/15/22 8/02 at 100 AA- 3,297,622
Michigan Strategic Fund (Waste Management, Inc.),
Alternative Minimum Tax:
3,050,000 6.625%, 12/01/12 12/02 at 102 A1 3,131,771
1,000,000 6.000%, 12/01/13 12/03 at 102 A1 979,240
8,500,000 Michigan Strategic Fund (Consumers Power),
5.800%, 6/15/10 6/03 at 102 Aaa 8,550,065
1,500,000 Ann Arbor Water Supply System, 5.500%, 2/01/13 2/03 at 101 1/2 Aaa 1,435,065
2,500,000 Breitung Township School District, 5.500%, 5/01/12 5/03 at 102 AA 2,430,500
3,000,000 Clarkston Community Schools, General Obligation,
5.900%, 5/01/16 5/03 at 102 AA 2,943,390
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,500,000 Detroit City School District, General Obligation,
6.250%, 5/01/12 5/01 at 102 AA $ 2,542,625
2,000,000 Detroit Convention Facility (Cobo Hall),
5.250%, 9/30/12 9/03 at 102 A 1,775,640
4,550,000 Detroit Sewage Disposal System, 5.700%, 7/01/13 7/03 at 102 Aaa 4,405,947
4,500,000 Detroit Water Supply System, 4.750%, 7/01/19 7/04 at 102 Aaa 3,740,490
3,000,000 Dexter Community Schools, General Obligation,
5.000%, 5/01/17 5/03 at 102 AA 2,579,310
2,000,000 Ferris State University, 6.250%, 10/01/19 10/03 at 102 Aaa 2,029,820
6,750,000 Grand Haven Electric System, 5.250%, 7/01/16 7/03 at 102 Aaa 6,188,468
1,000,000 Kent Hospital Finance Authority (Butterworth Hospital),
5.100%, 1/15/07 No Opt. Call A1 963,010
2,000,000 Lansing Board of Water and Light, 4.900%, 7/01/11 7/01 at 100 Aa 1,800,040
Monroe County Pollution Control (Detroit Edison),
Alternative Minimum Tax:
6,000,000 6.350%, 12/01/04 No Opt. Call Aaa 6,444,900
2,500,000 6.550%, 6/01/24 6/03 at 102 Aaa 2,563,425
1,500,000 6.550%, 9/01/24 9/03 at 103 Aaa 1,537,680
Mount Clemens Housing Corporation, Multi-Family:
1,000,000 6.600%, 6/01/13 6/03 at 102 AAA 1,051,560
1,500,000 6.600%, 6/01/22 6/03 at 102 AAA 1,543,515
1,000,000 Reeths-Puffer Schools, General Obligation,
5.750%, 5/01/15 5/05 at 101 Aaa 974,570
3,615,000 Saginaw-Midland Municipal Water Supply Corporation,
Limited Tax, 5.250%, 9/01/16 9/02 at 101 1/2 A 3,225,448
University of Michigan Hospital:
1,000,000 5.750%, 12/01/12 12/02 at 102 Aa 961,740
2,650,000 6.375%, 12/01/24 12/00 at 100 Aa 2,678,857
2,000,000 University of Michigan Hospital, Student Fee,
5.500%, 4/01/12 4/03 at 102 AA+ 1,936,260
Wayne County (Detroit Metropolitan Airport),
Alternative Minimum Tax:
1,000,000 4.750%, 12/01/02 No Opt. Call Aaa 990,180
1,000,000 4.800%, 12/01/03 No Opt. Call Aaa 984,430
1,000,000 Wayne County (Detroit Metropolitan Airport),
8.000%, 12/01/14 12/96 at 102 Aaa 1,064,490
3,750,000 Western Michigan University, 5.500%, 7/15/16 7/03 at 102 Aaa 3,544,950
1,000,000 Western Township Utilities Authority, Sewage Disposal
System, 6.500%, 1/01/10 1/02 at 100 AAA 1,046,520
2,165,000 Wyandotte City School District, General Obligation,
5.625%, 5/01/16 5/03 at 102 Aaa 2,038,563
5,625,000 Puerto Rico General Obligation, 5.375%, 7/01/06 No Opt. Call Aaa 5,810,118
5,750,000 Puerto Rico Public Buildings Authority, 5.750%, 7/01/15 7/03 at 101 1/2 A 5,500,277
4,000,000 Puerto Rico Electric Power Authority, 5.875%, 7/01/06 7/99 at 102 A 4,013,400
1,000,000 Puerto Rico Ports Authority, Special Facilities
(American Airlines, Inc. Project), 6.300%, 6/01/23 6/03 at 102 Baa3 975,560
$161,940,000 Total Investments - (cost $158,273,972) - 98.5% 158,949,928
============
Other Assets Less Liabilities - 1.5% 2,464,077
Net Assets - 100% $161,414,005
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 26 $ 73,709,036 46%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 48,437,420 30
PORTFOLIO OF A+ A1 5 13,691,670 9
INVESTMENTS: A, A- A, A2, A3 7 22,136,242 14
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 975,560 1
TOTAL 58 $158,949,928 100%
<FN>
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC. (NUO)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,250,000 Ohio Air Quality Development Authority (Ashland Oil,
Inc.), 6.850%, 4/01/10 4/01 at 102 Baa1 $ 2,303,483
4,000,000 Ohio Air Quality Development Authority, Pollution
Control (Cleveland Electric Illuminating Company),
8.000%, 12/01/13 6/02 at 103 Aaa 4,690,800
Ohio Air Quality Development Authority (JMG
Funding Limited Partnership Project), Alternative
Minimum Tax:
2,000,000 6.375%, 1/01/29 10/04 at 102 Aaa 2,045,480
4,000,000 6.375%, 4/01/29 10/04 at 102 Aaa 4,090,960
1,500,000 Ohio Building Authority (Toledo Center),
9.100%, 10/01/04 10/95 at 103 A1 1,558,095
Ohio Building Authority (Adult Correctional Building
Fund):
1,250,000 6.300%, 10/01/11 10/02 at 102 A+ 1,280,438
3,000,000 6.125%, 10/01/12 10/03 at 102 A+ 3,050,760
1,000,000 Ohio Building Authority (Juvenile Correction Building
Fund), 6.000%, 10/01/12 10/02 at 102 A+ 1,004,090
1,000,000 Ohio General Obligation, 0.000%, 9/01/99 No Opt. Call Aa 833,500
Ohio Higher Educational Facility Commission
(University of Dayton):
1,000,000 5.800%, 12/01/14 12/04 at 102 Aaa 983,930
2,400,000 6.600%, 12/01/17 12/03 at 102 Aaa 2,533,080
2,500,000 Ohio Higher Educational Facility Commission (Oberlin
College), 5.375%, 10/01/15 10/03 at 102 AA 2,329,450
500,000 Ohio Higher Educational Facility Commission (Kenyon
College), 5.375%, 12/01/16 12/03 at 102 A+ 443,945
1,100,000 Ohio Higher Educational Facility Commission (Ohio
Northern University), 5.650%, 5/01/18 5/04 at 102 AAA 1,039,412
Ohio Higher Educational Facility Commission (John
Carroll University):
750,000 5.600%, 10/01/13 10/03 at 102 A 695,888
1,350,000 5.300%, 11/15/14 11/03 at 102 A 1,234,076
1,600,000 Ohio Higher Educational Facility (Case Western
Reserve University), 6.000%, 10/01/22 10/02 at 102 Aa 1,602,064
335,000 Ohio Housing Finance Agency, Single Family
Mortgage, 8.250%, 2/01/16 2/98 at 103 AAA 359,710
9,990,000 Ohio Housing Finance Agency, Single Family Mortgage
(GNMA), Alternative Minimum Tax, 7.650%, 3/01/29 9/99 at 102 AAA 10,401,388
2,500,000 Ohio Municipal Electric Generation Agency (American
Municipal Power, Inc), 5.375%, 2/15/24 2/03 at 102 Aaa 2,278,200
1,500,000 Ohio State Public Facilities Commission, Higher
Education, 5.500%, 12/01/06 12/01 at 102 A+ 1,531,425
1,575,000 Ohio State University General Receipts,
5.875%, 12/01/12 12/02 at 102 AA- 1,562,180
2,500,000 Ohio Turnpike Commission, 5.750%, 2/15/24 2/04 at 102 AA- 2,405,125
Ohio Water Development Authority:
1,000,000 8.000%, 12/01/18 (Pre-refunded to 12/01/00) 12/00 at 100 AAA 1,091,910
1,000,000 5.900%, 12/01/21 6/05 at 102 Aaa 986,750
1,000,000 Ohio Water Development Authority (Cincinnati Gas and
Electric Company), 5.450%, 1/01/24 1/04 at 102 Aaa 925,360
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,500,000 Ohio Water Development Authority (Pennsylvania Power
Company), Alternative Minimum Tax, 5.900%, 5/01/18 5/03 at 102 Aaa $ 3,439,415
1,830,000 Akron Bath Copley Joint Township Hospital District
(Summa Health System), 5.500%, 11/15/13 11/03 at 102 A 1,653,771
1,500,000 Akron Waterworks System Mortgage, 6.550%, 3/01/12 3/01 at 102 Aaa 1,599,135
2,000,000 Ashtabula County Industrial Development (Ashland Oil
Inc.), 6.900%, 5/01/10 5/02 at 102 Baa1 2,076,780
2,000,000 Barberton (Barberton Citizens Hospital),
7.250%, 1/01/12 1/02 at 102 A 2,126,520
Berea City School District, General Obligation:
650,000 7.500%, 12/15/06 12/03 at 102 Aaa 759,805
680,000 7.450%, 12/15/07 12/03 at 102 Aaa 792,588
825,000 Bowling Green State University, 6.700%, 6/01/07 6/01 at 102 A 892,221
Butler County (Fort Hamilton-Hughes Memorial
Hospital):
535,000 7.250%, 1/01/01 No Opt. Call Baa 543,710
1,000,000 7.500%, 1/01/10 1/02 at 102 Baa 1,033,460
Cambridge (Guernsey Memorial Hospital):
1,680,000 8.000%, 12/01/06 12/01 at 102 BBB 1,801,414
750,000 8.000%, 12/01/11 12/01 at 102 BBB 795,668
2,000,000 Carroll County Hospital Improvement (Timken Mercy
Medical Center), 7.125%, 12/01/18 (Pre-refunded to
12/01/01) 12/01 at 102 AAA 2,306,940
1,000,000 Clermont County Limited Tax, 5.600%, 9/01/14 9/03 at 102 Aaa 968,080
2,675,000 Clermont County (Mercy Health System), 5.875%, 1/01/15 1/03 at 102 Aaa 2,630,756
1,385,000 Clermont County Mortgage (GNMA), 5.950%, 2/20/30 8/03 at 103 Aaa 1,322,620
2,500,000 Clermont County Waterworks System, 6.625%, 12/01/14
(Pre-refunded to 12/01/01) 12/01 at 102 Aaa 2,812,700
1,000,000 Cleveland General Obligation, 6.750%, 10/01/11
(Pre-refunded to 10/01/01) 10/01 at 102 Aaa 1,129,320
2,075,000 Cleveland Airport System, Alternative Minimum Tax,
7.400%, 1/01/20 1/00 at 102 Aaa 2,272,229
Cleveland Public Power System:
3,000,000 7.000%, 11/15/17 11/01 at 102 Aaa 3,297,330
2,000,000 7.000%, 11/15/24 11/04 at 102 Aaa 2,235,200
1,000,000 Cleveland State University, 5.500%, 6/01/13 6/03 at 102 Aaa 971,170
Cleveland Waterworks Mortgage:
3,000,000 6.500%, 1/01/11 1/02 at 102 Aaa 3,162,600
2,000,000 5.500%, 1/01/13 No Opt. Call Aaa 1,953,920
3,720,000 6.250%, 1/01/16 1/02 at 102 Aaa 3,807,643
1,575,000 6.500%, 1/01/21 (Pre-refunded to 1/01/02) 1/02 at 102 Aaa 1,756,566
1,000,000 5.500%, 1/01/21 No Opt. Call Aaa 948,870
2,000,000 Columbus General Obligation, Unlimited Tax,
6.500%, 1/01/10 1/02 at 102 Aaa 2,113,860
1,950,000 Columbus City School District, General Obligation,
Unlimited Tax, 6.650%, 12/01/12 (Pre-refunded to
12/01/02) 12/02 at 102 Aaa 2,215,064
Columbus Municipal Airport Authority, Alternative
Minimum Tax:
830,000 5.950%, 1/01/08 1/04 at 102 Aaa 844,127
1,000,000 6.000%, 1/01/14 1/04 at 102 Aaa 994,430
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,500,000 Columbus Sewerage System, 6.250%, 6/01/08 6/02 at 102 A1 $ 2,602,950
500,000 Cuyahoga County General Obligation, 5.650%, 5/15/18 No Opt. Call A1 475,980
3,000,000 Cuyahoga County (Meridia Health System),
7.000%, 8/15/23 8/01 at 102 A1 3,128,820
1,500,000 Cuyahoga County (University Hospitals),
6.500%, 1/15/19 1/02 at 102 Aa 1,525,260
1,170,000 Cuyahoga County (Fairview General Hospital),
6.300%, 8/15/15 2/03 at 102 A1 1,152,953
3,200,000 Dayton (James M. Cox International Airport),
5.800%, 12/01/11 12/02 at 101 1/2 Aaa 3,174,688
2,000,000 Dublin City School District, General Obligation,
6.200%, 12/01/19 12/02 at 102 Aaa 2,033,780
1,400,000 Fairfield County (Lancaster-Fairfield Community
Hospital), 5.500%, 6/15/21 6/03 at 102 Aaa 1,305,024
1,300,000 Franklin County Limited Tax, 5.375%, 12/01/20 12/08 at 102 Aaa 1,222,091
2,200,000 Franklin County Convention Facility Authority,
5.850%, 12/01/19 12/02 at 102 Aaa 2,157,826
1,365,000 Franklin County, Hospital Facilities (Ohio Presbyterian
Retirement Services), 6.500%, 7/01/23 7/03 at 102 N/R 1,234,015
1,000,000 Franklin County (Mt. Carmel Health), 7.650%, 6/01/10
(Pre-refunded to 6/01/00) 6/00 at 102 Aaa 1,149,610
1,500,000 Franklin County (Children's Hospital), 6.600%, 5/01/13 11/02 at 102 Aa 1,545,825
4,300,000 Franklin County, Hospital Facilities (Riverside United
Methodist Hospital), 5.750%, 5/15/20 5/03 at 102 Aa 4,076,916
1,000,000 Franklin County Multi-Family Housing (Hamilton Creek
Apartments), Alternative Minimum Tax,
5.550%, 7/01/24 1/05 at 103 Aa 887,410
6,200,000 Franklin County (Kensington Place Project),
6.750%, 1/01/34 1/02 at 103 Aa 6,311,786
Franklin County (Online Computer Library Center
Project):
3,480,000 7.500%, 6/01/09 No Opt. Call AAA 3,760,801
500,000 6.000%, 4/15/13 4/03 at 100 N/R 482,005
3,250,000 Garfield Heights (Marymount Hospital), 6.650%, 11/15/11 11/02 at 102 A 3,328,650
3,250,000 Hamilton Electric System Mortgage, 6.300%, 10/15/25 10/02 at 102 Aaa 3,322,443
1,000,000 Hamilton County Sewer System, 6.700%, 12/01/13
(Pre-refunded to 6/01/01) 6/01 at 102 AAA 1,122,720
3,000,000 Hamilton County Sewer System (Metropolitan Sewer
District of Greater Cincinnati), 5.250%, 12/01/16 12/03 at 100 Aaa 2,771,670
1,500,000 Hudson Local School District, General Obligation,
Unlimited Tax, 5.600%, 12/15/14 12/03 at 102 Aaa 1,451,685
3,000,000 Kent State University, General Receipts, 6.500%, 5/01/22 5/02 at 102 Aaa 3,126,480
1,000,000 Lakewood General Obligation, 6.500%, 12/01/12 12/02 at 102 Aa 1,079,950
2,100,000 Lakota Local School District, General Obligation,
6.250%, 12/01/14 12/05 at 100 Aaa 2,169,174
1,000,000 Lorain County (Humility of Mary Health Care System),
5.900%, 12/15/08 6/03 at 102 A1 1,015,610
1,000,000 Marion County, Health Care Facilities (United Church
Homes Project), 6.300%, 11/15/15 11/03 at 102 BBB- 909,560
1,250,000 Miami University, 5.600%, 12/01/13 12/03 at 102 Aaa 1,227,425
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,400,000 Middleburg Heights (Southwest General Hospital),
6.750%, 8/15/21 8/01 at 102 A $ 1,425,970
1,800,000 Montgomery County Sewer System (Greater Moraine-
Beavercreek Sewer District), 5.600%, 9/01/11 9/02 at 102 Aaa 1,792,350
1,000,000 Montgomery County Water (Greater Moraine-
Beavercreek Sewer District), 6.250%, 11/15/17 11/02 at 102 Aaa 1,026,080
1,000,000 Newark Water System, Limited Tax, General Obligation,
6.000%, 12/01/18 12/03 at 102 Aaa 1,004,480
North Canton City School District, General Obligation:
650,000 9.750%, 12/01/03 No Opt. Call Aaa 863,486
715,000 9.700%, 12/01/04 No Opt. Call Aaa 963,112
1,250,000 Oxford Water Supply System Mortgage,
6.000%, 12/01/14 12/02 at 102 Aaa 1,256,075
1,000,000 Revere Local School District, General Obligation,
Unlimited Tax, 6.000%, 12/01/16 12/03 at 102 Aaa 1,004,480
1,400,000 Reynoldsburg City School District, General Obligation,
Unlimited Tax, 6.550%, 12/01/17 12/02 at 102 Aaa 1,468,544
Solon City School District, General Obligation:
1,000,000 7.150%, 12/01/13 (Pre-refunded to 12/01/01) 12/01 at 102 N/R 1,150,050
1,085,000 5.300%, 12/01/13 12/04 at 102 Aa 1,011,415
2,000,000 Southwest Regional Water District, 6.000%, 12/01/20 12/05 at 101 Aaa 2,007,960
3,895,000 Student Loan Funding Corporation of Cincinnati,
Alternative Minimum Tax, 6.600%, 7/01/05 7/02 at 100 A 4,003,280
1,700,000 Student Loan Funding Corporation of Cincinnati,
6.150%, 8/01/10 8/03 at 100 A1 1,681,962
Toledo General Obligation, Limited Tax:
1,135,000 7.000%, 12/01/03 No Opt. Call Aaa 1,303,058
3,400,000 5.700%, 12/01/10 (WI) 12/05 at 102 Aaa 3,408,635
750,000 Tuscarawas County, Hospital Facilities (Union Hospital),
6.500%, 10/01/21 10/03 at 102 Baa 693,397
3,500,000 University of Cincinnati, General Receipts,
6.300%, 6/01/12 12/02 at 102 AA- 3,647,455
1,000,000 University of Cincinnati, 5.350%, 6/01/08 6/03 at 102 AA- 985,330
1,500,000 University of Toledo, 5.900%, 6/01/20 12/02 at 102 Aaa 1,482,510
1,000,000 Washington Water System Mortgage, 5.375%, 12/01/19 12/03 at 101 Aaa 935,600
3,000,000 West Clermont Local School District, General Obligation,
6.000%, 12/01/18 12/05 at 100 Aaa 3,006,570
1,750,000 Worthington City School District, General Obligation,
Unlimited Tax, 6.375%, 12/01/12 6/02 at 102 Aaa 1,827,210
1,500,000 Puerto Rico General Obligation, 3.000%, 7/01/06 7/97 at 100 A 1,173,075
2,500,000 Commonwealth of Puerto Rico, General Obligation,
6.600%, 7/01/13 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 2,822,175
1,400,000 Puerto Rico Highway and Transportation Authority,
5.500%, 7/01/19 7/03 at 101 1/2 A 1,283,421
1,300,000 Puerto Rico Public Buildings Authority, 5.750%, 7/01/15 7/03 at 101 1/2 A 1,243,540
1,000,000 Puerto Rico Industrial, Medical, Educational and
Environmental Authority, Pollution Control (Motorola,
Inc.), 6.750%, 1/01/14 1/02 at 103 Aa3 1,082,820
$209,355,000 Total Investments - (cost $209,598,412) - 97.9% 213,826,558
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.7%
$ 2,600,000 Cincinnati & Hamilton County Port Authority
(Kenwood Office Associates), Variable Rate Demand
Bonds, 3.850%, 9/01/25t A-1 $ 2,600,000
1,000,000 Cuyahoga County (University Hospital of Cleveland),
Series 1985, Variable Rate Demand Bonds,
3.850%, 1/01/16t VMIG-1 1,000,000
$ 3,600,000 Total Temporary Investments - 1.7% 3,600,000
============
Other Assets Less Liabilities - 0.4% 908,686
Net Assets - 100% $218,335,244
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 65 $131,929,090 62%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 30,886,486 14
PORTFOLIO OF A+ A1 12 18,927,028 9
INVESTMENTS A, A- A, A2, A3 11 19,060,412 9
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 8 10,157,472 5
TEMPORARY Non-rated Non-rated 3 2,866,070 1
INVESTMENTS):
TOTAL 114 $213,826,558 100%
<FN>
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND (NTX)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 Texas Health Facilities Development Corporation (All
Saints Episcopal Hospitals of Fort Worth),
6.250%, 8/15/22 8/03 at 102 Aaa $ 1,518,900
5,490,000 Texas Housing Agency, Single Family Mortgage,
8.250%, 3/01/17 3/96 at 102 Aa 5,709,765
625,000 Texas Municipal Power Agency, Refunding Bonds,
5.750%, 9/01/12 (Pre-refunded to 9/01/02) 9/02 at 100 Aaa 666,444
2,490,000 Texas Southern University, 5.750%, 8/01/18 8/03 at 101 Aaa 2,412,885
2,015,000 Texas Turnpike Authority, Dallas North Tollway,
6.000%, 1/01/20 1/98 at 100 A 1,971,939
5,085,000 Texas Veterans' Housing General Obligation, Alternative
Minimum Tax, 6.800%, 12/01/23 12/03 at 102 Aa 5,194,022
Texas Veterans' Housing General Obligation:
3,070,000 8.300%, 12/01/16 (Pre-refunded to 12/01/99) 12/99 at 100 AAA 3,550,486
1,930,000 8.300%, 12/01/16 12/95 at 102 Aa 2,015,789
2,000,000 Texas Veterans' Land General Obligation, Alternative
Minimum Tax, 6.400%, 12/01/24 12/04 at 100 Aa 2,015,120
3,500,000 Abilene Health Facilities Development Corporation
(Hendrick Medical Center), 6.150%, 9/01/25 9/05 at 102 Aaa 3,505,670
370,000 Abilene Housing Development Corporation,
7.000%, 7/01/08 No Opt. Call N/R 389,617
Alamo Community College District, General Obligation:
1,000,000 5.000%, 2/15/10 2/00 at 100 Aa 919,340
1,000,000 5.000%, 2/15/11 2/00 at 100 Aa 911,130
5,295,000 Alliance Airport Authority (American Airlines),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 5,517,920
4,500,000 Amarillo (High Plains Baptist Hospital),
6.500%, 1/01/07 1/02 at 102 Aaa 4,784,085
Austin Combined Utility System:
3,500,000 6.750%, 5/15/12 5/01 at 102 A 3,652,145
3,500,000 5.750%, 11/15/16 11/02 at 100 Aaa 3,395,210
1,000,000 5.875%, 5/15/21 5/01 at 100 Aaa 975,910
2,475,000 Baytown Housing Finance Corporation, Single Family
Mortgage, 8.500%, 9/01/11 9/02 at 103 A 2,748,488
1,000,000 Beaumont General Obligation, 6.250%, 3/01/10 3/02 at 100 Aaa 1,020,160
1,000,000 Bexar Metropolitan Water District, 5.000%, 5/01/19 5/04 at 100 Aaa 873,030
Brazos River Authority, Pollution Control (Texas Utilities
Electric Company), Alternative Minimum Tax:
2,110,000 9.875%, 10/01/17 10/97 at 102 Baa2 2,353,600
1,225,000 8.125%, 2/01/20 2/00 at 102 Baa2 1,350,207
2,000,000 7.875%, 3/01/21 3/01 at 102 Baa2 2,197,280
1,000,000 6.050%, 4/01/25 4/03 at 102 Aaa 980,980
1,500,000 6.500%, 12/01/27 12/02 at 102 Aaa 1,532,415
Brazos River Authority (Houston Lighting and Power):
5,500,000 7.750%, 10/01/15 10/98 at 102 A3 6,012,765
1,200,000 5.600%, 12/01/17 12/03 at 102 Aaa 1,135,608
Brazos Higher Education Authority, Student Loan,
Alternative Minimum Tax:
2,500,000 6.875%, 9/01/04 3/02 at 102 A 2,585,000
1,115,000 6.650%, 11/01/04 No Opt. Call Aa 1,202,672
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 250,000 Brazos Higher Education Authority, Inc., Student Loan,
6.800%, 12/01/04 No Opt. Call A $ 269,853
2,000,000 Brownsville General Obligation, 6.750%, 2/15/12
(Pre-refunded to 2/15/01) 2/01 at 100 Aaa 2,208,100
3,500,000 Brownsville Utility System, 6.500%, 9/01/17 9/00 at 102 Aaa 3,634,260
1,000,000 Caddo Mills Independent School District, General
Obligation, 6.375%, 8/15/25 2/05 at 100 AAA 1,027,630
1,400,000 Coastal Bend Health Facilities Corporation (Incarnate
Word Health Services), 6.000%, 11/15/22 11/02 at 102 Aaa 1,374,044
2,500,000 Conroe Independent School District, General
Obligation, 5.000%, 2/01/18 2/04 at 100 Aaa 2,216,025
4,130,000 Coppell Independent School District, General
Obligation, 0.000%, 8/15/14 8/09 at 75 1/3 Aaa 1,183,245
3,450,000 Corpus Christi Limited Tax, 6.700%, 3/01/08 3/02 at 100 Aaa 3,842,817
5,020,000 Dallas-Fort Worth International Airport (United Parcel
Service, Inc.), Alternative Minimum Tax,
6.600%, 5/01/32 5/02 at 102 Aaa 5,143,191
Dallas (Civic Center Convention Complex):
1,000,000 8.000%, 1/01/09 1/96 at 100 A 1,030,910
1,500,000 6.250%, 1/01/20 1/02 at 100 AAA 1,523,610
1,980,000 El Paso Housing Finance Corporation, Single Family
Mortgage, 8.750%, 10/01/11 4/01 at 103 A 2,204,374
2,800,000 Ennis General Obligation, 6.500%, 8/01/13 8/02 at 100 Aaa 2,906,568
1,185,000 Fort Bend County Levee Improvement, District No. 11,
General Obligation, 6.900%, 9/01/17 9/04 at 100 Aaa 1,265,604
1,515,000 Galveston Property Finance Authority, Single Family
Mortgage, 8.500%, 9/01/11 9/01 at 103 A 1,663,712
1,000,000 Georgetown Higher Education Finance Corporation
(Southwestern University), 6.300%, 2/15/14 2/04 at 100 A1 1,013,120
2,245,000 Grapevine Industrial Development Corporation
(American Airlines, Inc.), 9.250%, 12/01/12 12/95 at 102 Baa3 2,324,046
Harris County Toll Road, Senior Lien:
1,680,000 6.625%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 102 Aaa 1,798,188
320,000 6.625%, 8/15/17 8/97 at 102 Aaa 337,654
1,780,000 6.500%, 8/15/17 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa 1,999,171
320,000 6.500%, 8/15/17 8/02 at 102 Aaa 331,251
2,000,000 5.375%, 8/15/20 8/04 at 102 Aaa 1,822,180
2,000,000 Harris County Toll Road, Unlimited Tax and Subordinate
Lien, 6.500%, 8/15/15 8/02 at 102 AA+ 2,100,200
4,000,000 Harris County Health Facilities (Texas Children's
Hospital), 7.000%, 10/01/19 10/99 at 102 Aaa 4,305,840
6,110,000 Harris County Health Facilities Development Corporation
(Memorial Hospital System), 7.125%, 6/01/15 6/02 at 102 A 6,412,995
3,715,000 Harrison County Housing Finance Corporation, Single
Family Mortgage, 8.875%, 12/01/11 12/01 at 103 A 3,975,607
1,000,000 Houston Airport System, Alternative Minimum Tax,
8.000%, 7/01/08 7/98 at 102 1/2 A 1,100,050
5,000,000 Houston Airport System, Subordinate Lien, Alternative
Minimum Tax, 6.750%, 7/01/21 7/01 at 102 Aaa 5,233,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,045,000 Houston Housing Finance Corporation, Single Family
Mortgage, 5.950%, 12/01/10 6/03 at 102 Aaa $ 2,067,536
4,000,000 Houston Water and Sewer System, Junior Lien,
6.375%, 12/01/17 12/01 at 102 Aaa 4,102,080
1,000,000 Houston Water and Sewer System, 6.375%, 12/01/14 12/02 at 102 A 1,017,110
800,000 Laredo Waterworks System, 5.625%, 8/15/11 8/04 at 100 Aaa 787,944
1,500,000 Lone Star Airport Improvement Authority (American
Airlines), 9.125%, 12/01/15 12/95 at 102 Baa2 1,557,660
Lower Colorado River Authority:
3,400,000 6.000%, 1/01/17 1/02 at 100 Aaa 3,335,536
1,310,000 5.625%, 1/01/17 1/02 at 102 Aaa 1,240,570
Lower Colorado River Authority, Junior Lien:
190,000 5.625%, 1/01/17 (Pre-refunded to 1/01/02) 1/02 at 100 Aaa 186,145
2,480,000 5.250%, 1/01/15 1/03 at 102 Aaa 2,270,886
Matagorda County Navigation District No. 1, Pollution
Control (Central Power and Light Company):
610,000 10.125%, 10/15/14 10/95 at 103 Aaa 628,459
3,250,000 6.000%, 7/01/28 7/03 at 102 A3 3,150,128
1,800,000 Matagoda County Navigation District No. 1, Pollution
Control (Houston Lighting and Power Company),
Alternative Minimum Tax, 7.875%, 2/01/19 2/98 at 102 A3 1,946,268
5,750,000 Midland County Hospital District, 0.000%, 6/01/11 No Opt. Call BBB 2,074,025
2,850,000 North Central Texas Health Facilities, Development
Corporation (Presbyterian Healthcare System),
5.900%, 6/01/21 6/03 at 102 Aa 2,747,372
2,500,000 North Texas Higher Educational Authority, Student
Loan, 6.100%, 4/01/08 4/03 at 102 Aa 2,545,400
1,500,000 North Texas Municipal Water District, Regional Solid
Waste Disposal System, 5.250%, 9/01/12 9/03 at 100 Aaa 1,403,520
1,365,000 Port Arthur Housing Finance Corporation, Single
Family, 8.700%, 3/01/12 9/02 at 103 A 1,505,745
4,500,000 Port of Corpus Christi, Authority of Nueces County,
Pollution Control (Hoechst Celanese Corporation
Project), Alternative Minimum Tax, 6.875%, 4/01/17 4/02 at 102 AA- 4,667,175
2,000,000 San Antonio Electric and Gas System, 5.000%, 2/01/17 2/02 at 101 Aa1 1,744,900
4,500,000 San Antonio Water System, 6.500%, 5/15/10 5/02 at 102 Aaa 4,777,605
3,250,000 Tarrant County Health Facilities Development
Corporation (Harris Methodist Health System),
6.000%, 9/01/24 9/04 at 102 A1 3,108,008
2,500,000 Tarrant County Water Control and Improvement
District, 5.750%, 3/01/13 (Pre-refunded to 3/01/01) 3/01 at 100 Aaa 2,645,075
2,500,000 Terrell Hills Higher Education Facilities Corporation
(Incarnate Word College), 5.750%, 3/15/13 3/03 at 101 1/2 AAA 2,413,950
5,400,000 Travis County Health Facilities Development Corporation
(Daughters of Charity Health System), 6.000%, 11/15/22 11/03 at 102 Aa 5,017,572
3,310,000 Travis County Residential Mortgage, GNMA and FNMA,
7.050%, 12/01/25 12/01 at 103 AAA 3,475,632
1,445,000 Tyler Junior College District, 5.900%, 8/15/13 8/04 at 100 Aaa 1,446,951
2,000,000 University of Houston, 6.000%, 2/15/17 2/05 at 100 Aaa 1,985,600
2,680,000 Victoria Housing Finance Corporation, Single Family
Mortgage, 8.500%, 1/01/11 1/02 at 103 A 2,927,631
1,030,000 Webb County Limited Tax, 5.400%, 2/15/09 2/03 at 100 Aaa 1,025,076
$206,360,000 Total Investments - (cost $198,889,582) - 98.2% 205,147,636
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.4%
$ 900,000 North Central Texas Health Facilities Development
============
Corporation (Presbyterian Medical Center), Variable
Rate Demand Bonds, 3.900%, 12/01/15t VMIG-1 $ 900,000
Other Assets Less Liabilities - 1.4% 2,876,583
Net Assets - 100% $208,924,219
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 47 $102,296,976 50%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 36,790,457 18
PORTFOLIO OF A+ A1 2 4,121,128 2
INVESTMENTS A, A- A, A2, A3 17 44,174,720 21
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 7 17,374,738 8
TEMPORARY Non-rated Non-rated 1 389,617 1
INVESTMENTS):
TOTAL 87 $205,147,636 100%
<FN>
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security.
The rate disclosed is that currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Assets
Investments in municipal securities, at market value (note 1) $89,084,064 $244,708,517 $158,949,928 $213,826,558
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 900,000 -- -- 3,600,000
Cash 161,171 424,295 128,643 227,848
Receivables:
Interest 665,669 3,920,887 2,136,752 2,839,997
Investments sold -- -- 2,866,410 4,083,253
Other assets 19,087 25,765 8,366 53,370
----------- ------------ ------------ ------------
Total assets 90,829,991 249,079,464 164,090,099 224,631,026
----------- ------------ ------------ ------------
Liabilities
Payable for investments purchased -- -- 1,978,317 5,323,393
Accrued expenses:
Management fees (note 6) 50,087 136,019 89,059 120,094
Other 54,940 125,761 89,117 109,226
Preferred share dividends payable 12,741 26,295 24,390 28,732
Common share dividends payable 278,236 884,101 495,211 714,337
----------- ------------ ------------ ------------
Total liabilities 396,004 1,172,176 2,676,094 6,295,782
----------- ------------ ------------ ------------
Net assets (note 7) $90,433,987 $247,907,288 $161,414,005 $218,335,244
=========== ============ ============ ============
Preferred shares, at liquidation value $30,000,000 $ 80,000,000 $ 56,000,000 $ 77,000,000
=========== ============ ============ ============
Preferred shares outstanding 1,200 3,200 2,240 3,080
=========== ============ ============ ============
Common shares outstanding 4,280,555 11,120,764 7,677,686 9,217,250
=========== ============ ============ ============
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by Common
shares outstanding) $ 14.12 $ 15.10 $ 13.73 $ 15.33
=========== ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
NTX
<S> <C>
Assets
Investments in municipal securities, at market value (note 1) $205,147,636
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 900,000
Cash 79,073
Receivables:
Interest 3,741,529
Investments sold 10,292
Other assets 20,899
------------
Total assets 209,899,429
------------
Liabilities
Payable for investments purchased --
Accrued expenses:
Management fees (note 6) 114,809
Other 74,680
Preferred share dividends payable 34,854
Common share dividends payable 750,867
------------
Total liabilities 975,210
------------
Net assets (note 7) $208,924,219
============
Preferred shares, at liquidation value $ 69,000,000
============
Preferred shares outstanding 2,760
============
Common shares outstanding 9,385,839
============
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by Common
shares outstanding) $ 14.91
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended July 31, 1995
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $5,309,886 $15,489,888 $ 8,500,486 $11,289,155
---------- ----------- ----------- -----------
Expenses:
Management fees (note 6) 569,019 1,562,791 912,985 1,178,588
Preferred shares--auction fees 31,233 200,002 125,616 162,385
Preferred shares--dividend disbursing agent fees 9,164 15,000 25,890 36,781
Shareholders' servicing agent fees and expenses 8,628 45,654 34,562 48,148
Custodian's fees and expenses 41,508 57,157 47,393 50,630
Directors'/Trustees' fees and expenses (note 6) 457 933 1,151 899
Professional fees 20,139 19,681 63,221 52,884
Shareholders' reports--printing and mailing expenses 28,075 89,099 129,007 104,739
Stock exchange listing fees 17,118 24,506 19,309 26,171
Investor relations expense 5,674 14,671 15,409 14,698
Other expenses 18,753 19,026 45,201 41,778
---------- ----------- ----------- -----------
Total expenses 749,768 2,048,520 1,419,744 1,717,701
---------- ----------- ----------- -----------
Net investment income 4,560,118 13,441,368 7,080,742 9,571,454
---------- ----------- ----------- -----------
Realized and Unrealized Gain (Loss)
from Investments
Net realized gain (loss) from investment transactions, net of
taxes, if applicable (notes 1 and 3) (659,916) 964,241 (1,991,858) (688,907)
Net change in unrealized appreciation or depreciation
of investments 2,747,931 1,087,592 10,074,721 13,173,012
---------- ----------- ----------- -----------
Net gain from investments 2,088,015 2,051,833 8,082,863 12,484,105
---------- ----------- ----------- -----------
Net increase in net assets from operations $6,648,133 $15,493,201 $15,163,605 $22,055,559
========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended July 31, 1995
<CAPTION>
NTX
<S> <C>
Investment Income
Tax-exempt interest income (note 1) $12,241,030
-----------
Expenses:
Management fees (note 6) 1,225,054
Preferred shares--auction fees 159,486
Preferred shares--dividend disbursing agent fees 25,890
Shareholders' servicing agent fees and expenses 27,382
Custodian's fees and expenses 50,945
Directors'/Trustees' fees and expenses (note 6) 1,093
Professional fees 63,674
Shareholders' reports--printing and mailing expenses 121,462
Stock exchange listing fees 21,340
Investor relations expense 25,917
Other expenses 13,221
-----------
Total expenses 1,735,464
-----------
Net investment income 10,505,566
-----------
Realized and Unrealized Gain (Loss)
from Investments
Net realized gain (loss) from investment transactions, net of
taxes, if applicable (notes 1 and 3) 351,434
Net change in unrealized appreciation or depreciation
of investments 7,220,300
-----------
Net gain from investments 7,571,734
-----------
Net increase in net assets from operations $18,077,300
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NAZ NUM
Year ended Year ended Year ended Year ended
7/31/95 7/31/94 7/31/95 7/31/94
<S> <C> <C> <C> <C>
Operations
Net investment income $ 4,560,118 $ 4,543,660 $ 13,441,368 $ 13,337,189
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (659,916) (732,963) 964,241 630,917
Net change in unrealized appreciation or depreciation
of investments 2,747,931 (2,850,317) 1,087,592 (9,650,958)
----------- ----------- ------------ ------------
Net increase in net assets from operations 6,648,133 960,380 15,493,201 4,317,148
----------- ----------- ------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (3,338,836) (3,361,364) (11,081,980) (11,575,052)
Preferred shareholders (1,137,849) (1,095,983) (2,869,083) (1,890,336)
From accumulated net realized gains from investment transactions:
Common shareholders -- (157,464) (544,244) --
Preferred shareholders -- (39,760) (87,936) --
In excess of net realized gains from investment transactions:
Common shareholders -- (66,603) -- --
Preferred shareholders -- (16,817) -- --
----------- ----------- ------------ ------------
Decrease in net assets from distributions to shareholders (4,476,685) (4,737,991) (14,583,243) (13,465,388)
----------- ----------- ------------ ------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from sale of Common shares issued in
acquisition of NMH, NOH and NOO, or NTE, as
applicable (note 1) -- -- -- --
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 -- 676,957 915,423 1,349,265
----------- ----------- ------------ ------------
Net increase in net assets derived from capital share transactions -- 676,957 915,423 1,349,265
----------- ----------- ------------ ------------
Net increase (decrease) in net assets 2,171,448 (3,100,654) 1,825,381 (7,798,975)
Net assets at beginning of year 88,262,539 91,363,193 246,081,907 253,880,882
----------- ----------- ------------ ------------
Net assets at end of year $90,433,987 $88,262,539 $247,907,288 $246,081,907
=========== =========== ============ ============
Balance of undistributed net investment income at end of year $ 130,243 $ 46,809 $ 551,296 $ 1,060,991
=========== =========== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NMP NUO
Year ended Year ended Year ended Year ended
7/31/95 7/31/94 7/31/95 7/31/94
<S> <C> <C> <C> <C>
Operations
Net investment income $ 7,080,742 $ 5,045,455 $ 9,571,454 $ 5,309,708
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (1,991,858) (434,358) (688,907) (17,564)
Net change in unrealized appreciation or depreciation
of investments 10,074,721 (4,557,367) 13,173,012 (3,728,253)
------------ ------------ ------------ ------------
Net increase in net assets from operations 15,163,605 53,730 22,055,559 1,563,891
------------ ------------ ------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (5,398,921) (3,956,704) (7,169,390) (4,563,578)
Preferred shareholders (1,885,432) (828,344) (2,317,977) (777,481)
From accumulated net realized gains from investment transactions:
Common shareholders -- (192,903) -- (150,917)
Preferred shareholders -- (37,254) -- (30,863)
In excess of net realized gains from investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (7,284,353) (5,015,205) (9,487,367) (5,522,839)
------------ ------------ ------------ ------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from sale of Common shares issued in
acquisition of NMH, NOH and NOO, or NTE, as
applicable (note 1) 52,646,603 -- 104,177,336 --
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 -- 355,164 254,340 787,326
------------ ------------ ------------ ------------
Net increase in net assets derived from capital share transactions 52,646,603 355,164 104,431,676 787,326
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 60,525,855 (4,606,311) 116,999,868 (3,171,622)
Net assets at beginning of year 100,888,150 105,494,461 101,335,376 104,506,998
------------ ------------ ------------ ------------
Net assets at end of year $161,414,005 $100,888,150 $218,335,244 $101,335,376
============ ============ ============ ============
Balance of undistributed net investment income at end of year $ 245,822 $ 328,505 $ 619,196 $ 408,156
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NTX
Year ended Year ended
7/31/95 7/31/94
<S> <C> <C>
Operations
Net investment income $ 10,505,566 $ 8,588,110
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 351,434 212,363
Net change in unrealized appreciation or depreciation
of investments 7,220,300 (6,104,830)
------------ ------------
Net increase in net assets from operations 18,077,300 2,695,643
------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (8,438,688) (7,556,945)
Preferred shareholders (2,459,353) (1,235,562)
From accumulated net realized gains from investment transactions:
Common shareholders -- (182,246)
Preferred shareholders -- (31,450)
In excess of net realized gains from investment transactions:
Common shareholders -- --
Preferred shareholders -- --
------------ ------------
Decrease in net assets from distributions to shareholders (10,898,041) (9,006,203)
------------ ------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from sale of Common shares issued in
acquisition of NMH, NOH and NOO, or NTE, as
applicable (note 1) 47,805,776 --
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 215,110 706,014
------------ ------------
Net increase in net assets derived from capital share transactions 48,020,886 706,014
------------ ------------
Net increase (decrease) in net assets 55,200,145 (5,604,546)
Net assets at beginning of year 153,724,074 159,328,620
------------ ------------
Net assets at end of year $208,924,219 $153,724,074
============ ============
Balance of undistributed net investment income at end of year $ 351,732 $ 613,515
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At July 31, 1995, the state Funds (the "Funds") covered in this report and
their corresponding New York Stock Exchange symbols are Nuveen Arizona Premium
Income Municipal Fund, Inc. (NAZ), Nuveen Michigan Quality Income Municipal
Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP),
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) and Nuveen Texas Quality
Income Municipal Fund (NTX).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
On November 8, 1994, NMP acquired all of the net assets of Nuveen Michigan
Premium Income Municipal Fund 2 (NMH) pursuant to a plan of reorganization
approved by the shareholders of both Funds on October 6, 1994. The acquisition
was accomplished by a tax-free exchange of 2,781,169 shares of NMP for the
2,871,673 shares of NMH outstanding on November 8, 1994. NMH's net assets at
that date of $52,646,603 included $7,603,233 of unrealized depreciation and
$21,000,000 of preferred shares at liquidation value which was combined with
that of NMP. The combined net assets of NMP immediately after the acquisition
was $143,363,478.
On November 8, 1994, NUO acquired all of the net assets of Nuveen Ohio Premium
Income Municipal Fund, Inc. (NOH) and Nuveen Ohio Premium Income Municipal Fund
2 (NOO) pursuant to a plan of reorganization approved by the shareholders of
each of the respective Funds on October 6, 1994. The acquisition was
accomplished by a tax-free exchange of 4,728,624 shares of NUO for the
3,341,640 shares of NOH and for the 2,229,722 shares of NOO outstanding on
November 8, 1994. NOH and NOO net assets at that date of $63,748,523 and
$40,428,813, respectively, included unrealized depreciation of $7,012,254 and
$6,049,469, respectively, as well as $25,000,000 and $17,000,000 of preferred
shares at liquidation value, respectively, which was combined with that of NUO.
The combined net assets of NUO immediately after the acquisition was
$198,099,459.
On November 8, 1994, NTX acquired all of the net assets of Nuveen Texas Premium
Income Municipal Fund (NTE) pursuant to a plan of reorganization approved by
the shareholders of both Funds on October 21, 1994. The acquisition was
accomplished by a tax-free exchange of 2,231,243 shares of NTX for the
2,476,985 shares of NTE outstanding on November 8, 1994. NTE's net assets at
that date of $47,805,776 included $5,095,320 of unrealized depreciation and
$19,000,000 of preferred shares at liquidation value which was combined with
that of NTX. The combined net assets of NTX immediately after the acquisition
was $190,172,942.
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.
<PAGE>
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/Trustees. 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
July 31, 1995, NUO had an outstanding purchase commitment which amounted to
$3,358,146. There were no such purchase commitments in any of the other Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
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 and designated state income
taxes, to retain such tax exempt status when distributed to shareholders of the
Funds. All income dividends paid during the fiscal year ended July 31, 1995,
have been designated Exempt Interest Dividends.
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 investment transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized gains
from investment transactions are recorded on the ex-dividend date. The amount
and timing of such distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may result and will be classified as either distributions in excess
of net investment income or distributions in excess of net realized gains from
investment transactions, if applicable.
<PAGE>
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in one or more Series. The
dividend rate on each Series may change every 7 days, as set by the auction
agent. The number of shares outstanding, by series and in total, at July 31,
1995, for each Fund is as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Number of shares:
Series M -- -- 840 680
Series Th 1,200 3,200 1,400 1,400
Series Th2 -- -- -- 1,000
----- ----- ----- -----
Total 1,200 3,200 2,240 3,080
===== ===== ===== =====
<CAPTION>
NTX
<S> <C>
Number of shares:
Series M 760
Series Th 2,000
Series Th2 --
-----
Total 2,760
=====
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about Derivative
Financial Instruments and Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain derivative financial
instruments including futures, forward, swap, and option contracts, and other
financial instruments with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may do so in the
future, they did not make any such investments during the fiscal year ended
July 31, 1995, other than occasional purchases of high quality synthetic money
market securities which were held temporarily pending the re-investment in
long-term portfolio securities.
</TABLE>
<PAGE>
<TABLE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<CAPTION>
NAZ NUM
Year ended Year ended Year ended Year ended
7/31/95 7/31/94 7/31/95 7/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NMH, NOH and
NOO, or NTE, as applicable (note 1) -- -- -- --
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- 46,168 60,995 86,467
----- ------- ------ ------
Net increase -- 46,168 60,995 86,467
===== ====== ====== ======
Preferred shares acquired from NMH, NOH and NOO, or
NTE, as applicable (note 1) -- -- -- --
===== ====== ====== ======
<CAPTION>
NMP NUO
Year ended Year ended Year ended Year ended
7/31/95 7/31/94 7/31/95 7/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NMH, NOH and
NOO, or NTE, as applicable (note 1) 2,781,169 -- 4,728,624 --
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- 25,053 17,091 49,646
--------- ------ --------- ------
Net increase 2,781,169 25,053 4,745,715 49,646
========= ====== ========= ======
Preferred shares acquired from NMH, NOH and NOO, or
NTE, as applicable (note 1) 840 -- 1,680 --
========= ====== ========= ======
<CAPTION>
NTX
Year ended Year ended
7/31/95 7/31/94
<S> <C> <C>
Common shares:
Shares issued in acquisition of NMH, NOH and
NOO, or NTE, as applicable (note 1) 2,231,243 --
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions 14,584 45,924
--------- ------
Net increase 2,245,827 45,924
========= ======
Preferred shares acquired from NMH, NOH and NOO, or
NTE, as applicable (note 1) 760 --
========= ======
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the fiscal year ended
July 31, 1995, were as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $10,198,070 $46,231,356 $44,967,530 $ 36,348,521
Investments in municipal securities in acquisition of
NMH, NOH and NOO, or NTE, as applicable (note 1) -- -- 58,692,130 111,811,464
Temporary municipal investments 11,200,000 23,000,000 21,100,000 25,600,000
Temporary municipal investments in acquisition of
NMH, NOH and NOO, or NTE, as applicable (note 1) -- -- 600,000 1,300,000
SALES AND MATURITIES
Investments in municipal securities 9,692,313 42,580,811 43,389,038 33,759,960
Temporary municipal investments 11,800,000 27,100,000 22,900,000 23,300,000
=========== =========== =========== ============
<CAPTION>
NTX
<S> <C>
PURCHASES
Investments in municipal securities $14,707,630
Investments in municipal securities in acquisition of
NMH, NOH and NOO, or NTE, as applicable (note 1) 51,631,816
Temporary municipal investments 30,700,000
Temporary municipal investments in acquisition of
NMH, NOH and NOO, or NTE, as applicable (note 1) --
SALES AND MATURITIES
Investments in municipal securities 15,673,482
Temporary municipal investments 30,800,000
===========
At July 31, 1995, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for each
Fund.
At July 31, 1995, the following Funds had unused capital loss carryovers
available for federal income tax purposes to be applied against future security
gains, if any. If not applied, the carryovers will expire as follows:
<CAPTION>
NAZ NMP NUO
<S> <C> <C> <C>
Expiration year:
2002 $ -- $347,424* $1,566,076**
2003 1,480,968 627,148 32,442
---------- -------- ----------
Total $1,480,968 $974,572 $1,598,518
========== ======== ==========
<FN>
* Due to the acquisition of NMH by NMP (note 1), NMH had net realized losses
from investment transactions of $347,424 which were carried forward by NMP, as
permitted under applicable tax regulation.
** Due to the acquisition of NOH and NOO by NUO (note 1), NOH and NOO had net
realized losses from investment transactions of $359,738 and 1,204,221,
respectively, which were carried forward by NUO as permitted under applicable
tax regulations.
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On August 1, 1995, the following Funds declared Common share dividend
distributions from their ordinary income which were paid September 1, 1995, to
shareholders of record on August 15, 1995, as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Dividend per share $.0650 $.0795 $.0645 $.0775
====== ====== ====== ======
<CAPTION>
NTX
<S> <C>
Dividend per share $.0800
======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at July 31, 1995, were as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $2,834,168 $12,308,144 $2,743,392 $6,191,275
Depreciation (257,531) (640,984) (2,067,436) (1,963,129)
---------- ----------- ---------- ----------
Net unrealized appreciation $2,576,637 $11,667,160 $ 675,956 $4,228,146
========== =========== ========== ==========
<CAPTION>
NTX
<S> <C>
Gross unrealized:
Appreciation $7,655,942
Depreciation (1,397,888)
----------
Net unrealized appreciation $6,258,054
==========
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
("the Adviser"), 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/ Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At July 31, 1995, net assets consisted of:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $30,000,000 $ 80,000,000 $ 56,000,000 $ 77,000,000
Common shares, $.01 par value per share 42,806 111,208 76,777 92,173
Paid-in surplus 59,165,269 154,614,268 107,188,801 138,655,973
Balance of undistributed net investment income 130,243 551,296 245,822 619,196
Accumulated net realized gain (loss) from investment transactions (1,480,968) 963,356 (2,773,351) (2,260,244)
Net unrealized appreciation or depreciation of investments 2,576,637 11,667,160 675,956 4,228,146
---------- ----------- ----------- -----------
Net assets $90,433,987 $247,907,288 $161,414,005 $218,335,244
=========== ============ ============ ============
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
=========== ============ ============ ============
<CAPTION>
NTX
<S> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $ 69,000,000
Common shares, $.01 par value per share 93,858
Paid-in surplus 132,996,345
Balance of undistributed net investment income 351,732
Accumulated net realized gain (loss) from investment transactions 224,230
Net unrealized appreciation or depreciation of investments 6,258,054
-----------
Net assets $208,924,219
============
Authorized shares:
Common Unlimited
Preferred Unlimited
============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At July 31, 1995, the revenue sources by municipal
purpose for these investments, expressed as a percent of total investments,
were as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Revenue Bonds:
Pollution Control Facilities 6% 8% 15% 10%
Health Care Facilities 18 18 17 15
Housing Facilities 1 13 15 8
Educational Facilities 5 4 7 14
Water / Sewer Facilities 9 6 7 12
Electric Utilities 8 5 9 5
Transportation 6 2 2 5
Lease Rental Facilities 5 4 6 5
Other 11 4 5 2
General Obligation Bonds 20 20 15 14
Escrowed Bonds 11 16 2 10
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
<CAPTION>
NTX
<S> <C>
Revenue Bonds:
Pollution Control Facilities 20%
Health Care Facilities 17
Housing Facilities 13
Educational Facilities 8
Water / Sewer Facilities 6
Electric Utilities 10
Transportation 5
Lease Rental Facilities --
Other 1
General Obligation Bonds 14
Escrowed Bonds 6
----
100%
====
</TABLE>
<PAGE>
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 (54% for NAZ, 45% for NUM, 44% for NMP, 55% for NUO,
and 43% for NTX). Such insurance or escrow, however, does not guarantee the
market value of the municipal securities or the value of any of the Funds'
shares.
All of the temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Operating performance Dividends from net
investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments** shareholders shareholderstt
NAZ
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 $13.610 $1.065 $ .491 $ (.780) $(.266)
1994 14.490 1.067 (.835) (.789) (.257)
11/19/92 to
7/31/93 14.050 .524 .694 (.420) (.114)
<CAPTION>
NUM
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 15.020 1.212 .183 (.999) (.259)
1994 15.850 1.210 (.817) (1.051) (.172)
1993 15.230 1.205 .583 (.970) (.172)
2 mos. ended
7/31/92 14.290 .201 .923 (.151) (.033)
10/17/91 to
5/31/92 14.050 .473 .402 (.378) (.067)
<CAPTION>
NMP
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 13.460 1.042 .305 (.801) (.276)
1994 14.470 1.033 (1.015) (.810) (.170)
12/17/92 to
7/31/93 14.050 .405 .622 (.338) (.054)
<PAGE>
<CAPTION>
Dividends from capital gains
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholderstt discounts of period of period
NAZ
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 $ -- $ -- $ -- $14.120 $13.625
1994 (.053)ttt (.013)ttt -- 13.610 13.125
11/19/92 to
7/31/93 -- -- (.244) 14.490 15.750
<CAPTION>
NUM
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 (.049) (.008) -- 15.100 14.875
1994 -- -- -- 15.020 15.250
1993 (.022) (.004) -- 15.850 16.000
2 mos. ended
7/31/92 -- -- -- 15.230 15.500
10/17/91 to
5/31/92 -- -- (.190) 14.290 15.125
<CAPTION>
NMP
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 -- -- -- 13.730 12.000
1994 (.040) (.008) -- 13.460 12.500
12/17/92 to
7/31/93 -- -- (.215) 14.470 15.000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
valuet valuet (in thousands) assets*** net assets*** rate
NAZ
<S> <C> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 10.42% 9.98% $ 90,434 .86% 5.21% 11%
1994 (11.66) (.43) 88,263 .84 4.97 21
11/19/92 to
7/31/93 7.92 6.19 91,363 .91* 4.22* 40
<CAPTION>
NUM
<S> <C> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 4.77 8.02 247,907 .84 5.54 18
1994 1.82 1.33 246,082 .85 5.27 4
1993 9.97 11.09 253,881 .88 5.36 6
2 mos. ended
7/31/92 3.51 7.69 244,930 .85* 5.45* --
10/17/91 to
5/31/92 3.38 4.46 234,439 .82* 4.54* 1
<CAPTION>
NMP
<S> <C> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 2.59 8.45 161,414 1.01 5.02 32
1994 (11.43) (1.27) 100,888 .94 4.82 17
12/17/92 to
7/31/93 2.25 5.44 105,494 .92* 3.73* 15
See notes on page 54.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<CAPTION>
Operating performance Dividends from net
investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments** shareholders shareholderstt
NUO
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 $14.840 $1.220 $ .514 $ (.945) $(.299)
1994 15.720 1.193 (.830) (1.027) (.175)
1993 15.020 1.175 .697 (.925) (.194)
2 mos. ended
7/31/92 14.070 .197 .935 (.146) (.036)
10/17/91 to
5/31/92 14.050 .464 .261 (.365) (.071)
<CAPTION>
NTX
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 14.530 1.215 .428 (.980) (.283)
1994 15.410 1.206 (.820) (1.062) (.174)
1993 15.090 1.204 .304 (.973) (.181)
2 mos. ended
7/31/92 14.190 .203 .883 (.151) (.035)
10/17/91 to
5/31/92 14.050 .494 .309 (.378) (.067)
<PAGE>
<CAPTION>
Distributions from capital gains
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholderstt discounts of period of period
NUO
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 $ -- $ -- $ -- $15.330 $15.125
1994 (.034) (.007) -- 14.840 15.125
1993 (.042) (.011) -- 15.720 15.750
2 mos. ended
7/31/92 -- -- -- 15.020 15.250
10/17/91 to
5/31/92 -- -- (.269) 14.070 15.000
<CAPTION>
NTX
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 -- -- -- 14.910 13.875
1994 (.026) (.004) -- 14.530 14.750
1993 (.028) (.006) -- 15.410 15.875
2 mos. ended
7/31/92 -- -- -- 15.090 15.375
10/17/91 to
5/31/92 -- -- (.218) 14.190 14.875
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
valuet valuet (in thousands) assets*** net assets*** rate
NUO
<S> <C> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 6.80% 10.16% $218,335 .94% 5.24% 19%
1994 2.72 1.06 101,335 .94 5.09 2
1993 9.89 11.64 104,507 1.00 5.13 23
2 mos. ended
7/31/92 2.66 7.84 100,696 1.00* 5.25* 5
10/17/91 to
5/31/92 2.43 2.79 96,465 .89* 4.40* 4
<CAPTION>
NTX
<S> <C> <C> <C> <C> <C> <C>
Year ended 7/31,
1995 1.14 9.89 208,924 .91 5.54 8
1994 (.27) 1.28 153,724 .86 5.43 10
1993 10.24 9.19 159,329 .89 5.49 6
2 mos. ended
7/31/92 4.44 7.46 156,031 .86* 5.60* 4
10/17/91 to
5/31/92 1.68 3.74 149,694 .86* 5.65* --
<FN>
* Annualized.
** Net of taxes, if applicable.
*** Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
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 The amounts shown include distributions in excess of net realized gains of
$.016 to Common shareholders and $.004 to Preferred shareholders.
</TABLE>
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Boards of Directors, Trustees and Shareholders
Nuveen Arizona Premium Income Municipal Fund, Inc.
Nuveen Michigan Quality Income Municipal Fund, Inc.
Nuveen Michigan Premium Income Municipal Fund, Inc.
Nuveen Ohio Quality Income Municipal Fund, Inc.
Nuveen Texas Quality Income Municipal Fund
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Arizona Premium Income Municipal Fund,
Inc., Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan
Premium Income Municipal Fund, Inc., Nuveen Ohio Quality Income Municipal Fund,
Inc. and Nuveen Texas Quality Income Municipal Fund as of July 31, 1995, and
the related statements of operations, changes in net assets and the financial
highlights for the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
July 31, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Arizona Premium Income Municipal Fund, Inc., Nuveen Michigan Quality
Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund,
Inc., Nuveen Ohio Quality Income Municipal Fund, Inc. and Nuveen Texas Quality
Income Municipal Fund at July 31, 1995, and the results of their operations,
changes in their net assets and financial highlights for the periods indicated
therein in conformity with generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
September 12, 1995
<PAGE>
Build your wealth automatically
Photographic image of Customer Service Rep at Nuveen.
Managing your portfolio takes skill, experience, and informed judgment, but our
efforts to help you build your wealth don't stop there. At Nuveen, we offer a
number of convenient ways to build your tax-free portfolio and earn the
tax-free income you need to achieve your financial goals.
Nuveen Exchange-traded fund Dividend Reinvestment Plan
Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check, or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Income or capital gains taxes may be payable on dividends or
distributions that are reinvested. You'll also benefit from dollar-cost
averaging, a technique of investing at regular intervals, which allows you to
build a high-quality, tax-free portfolio conveniently and cost effectively over
time. All reinvestments are invested in full and fractional shares and are kept
in non-certificated form by the Plan Agent, Chase Manhattan Bank.
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number
of shares you own.
The shares you acquire by reinvesting will either be purchased on the open
market or be newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will be
invested within 30 days of the dividend payment date; no interest will be paid
on dividends and distributions awaiting reinvestment. Because the market price
of shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation resulting
in the acquisition of fewer shares than if the dividend or distribution had
been paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
<PAGE>
You may, of course, change your distribution option or withdraw from the Plan
at any time, should your needs or situation change. Should you withdraw, you
can receive a certificate for all whole shares credited to your reinvestment
account and cash payment for fractional shares, or cash payment for all
reinvestment account shares, less brokerage commissions and a $2.50 service
fee.
You also can reinvest if your shares are registered in the name of a
brokerage firm, bank, or other nominee. Just ask your investment adviser if the
firm will participate on your behalf. If not, it's easy to have the shares
registered in your name and to apply for a reinvestment account directly.
Participants whose shares are registered in the name of one firm may not be
able to transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although, the Fund reserves the right to amend the Plan to include a service
charge payable by the participants, there is no direct service charge to
participants in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll
in or withdraw from the Plan, speak with your investment adviser or call us
toll-free at 1.800.257.8787.
Photographic image of Customer Service Rep at Nuveen.
"When it comes to financial planning, your investment adviser knows your
situation best. And when we can give you the account information you need, our
motto is simple: We're here to help."
Photographic image of Customer Service Rep at Nuveen.
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set up
your reinvestment account."
<PAGE>
Useful information
Photographic image of Customer Service Rep at Nuveen.
"When questions come up about your investment, we're happy to provide the
up-to-date information you and your adviser need."
Nuveen Shareholder Services:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST for information on your
Nuveen Fund's current account balance, yield, dividend, net asset value,
closing price, and general information.
Dividend Reinvestment:
1.800.257.8787
Monday through Friday, 9 a.m. to 6 p.m., EST
Taking Stock Newsletter:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST if you're not currently
getting our quarterly shareholder newsletter and would like to do so. We will
be happy to add your name to our mailing list.
Photographic image of woman seated and man standing behind her representing
Nuveen investors.
Many conservative investors are comfortable with Nuveen's emphasis on long term
value. That's why they depend on Nuveen for the tax-free income they need to
reach their goals.
<PAGE>
Your investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF1-SEPT. 95
