Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams
ARIZONA PREMIUM INCOME (NAZ)
MICHIGAN QUALITY INCOME (NUM)
MICHIGAN PREMIUM INCOME (NMP)
OHIO QUALITY INCOME (NUO)
TEXAS QUALITY INCOME (NTX)
ANNUAL REPORT/JULY 31, 1996
Photographic image of couple walking on beach.
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Photographic image of financial adviser reviewing financial statements/plans
with older couple.
Tax-informed investing
An important part of any successful investment program is gauging how well
your investments have performed and measuring your progress toward your
long-term goals.
<PAGE>
The imposition of taxes dramatically alters the relative returns of the five
asset classes.
Graph showing after-tax returns, 1976-1996.
Municipals 8.26
Treasuries 5.62
Corporates 6.11
Stocks 10.51
Treasury Bills 3.87
Traditionally, the most common way to measure performance has been to compare
pre-tax rates of return for your different investments across similar time
periods. The rationale behind this method is that each investor is taxed at a
different rate, making pre-tax comparisons the seemingly logical way to ensure
you are comparing apples to apples.
This, however, is precisely the rationale that can make a pre-tax
performance assessment misleading. When returns are presented on a pre-tax
basis, you may lose sight of the major impact taxes can have on your earnings,
and fail to get the complete picture of your progress toward your investment
goals. At Nuveen, we've built our reputation help ing investors realize that
it's not what you earn, it's what you keep.
TAX-INFORMED INVESTING: THE KEY TO MEASURING LONG-TERM RESULTS
The true measure of an investment is its performance on an after-tax basis.
Analyzing after-tax returns gains added significance when you realize that the
taxes you pay can never be regained. Once that money is "lost," it can't be
put to work through compounding, earning additional dollars for you.
To better illustrate the ways that taxes can affect the amount you keep
versus the amount you earn, Nuveen Research recently studied 20 years of
investment returns, both pre-tax and after-tax, to determine the impact of
taxes on various asset classes. We were particularly interested in the study
results for municipal bonds, an asset class that is commonly excluded from the
top performance rankings when only pre-tax returns are considered.
MEASURING WHAT YOU KEEP
The study showed that, once the impact of taxes was figured into the equation,
municipal bonds offered a distinct advantage over other fixed income
investments. Over the study period, municipal bonds outperformed both
corporate and Treasury bonds (see accompanying tables), as high tax rates and
the loss of compounding income took their toll on corporate and Treasury
results.
As investors are well aware, performance over the long term--and the
purchasing power of their earnings--can be eroded by inflation as well as
taxes. The study showed that, over the past 20 years, only municipal bonds and
stocks provided significant after-tax gains over the Consumer Price Index, the
most recognized measure of inflation.
<PAGE>
ABOUT THE STUDY
The study, "Measuring What You Keep: Historical After-Tax Returns," compared
pre-tax and after-tax total returns over the past 20 years for five asset
classes: municipal bonds, Treasury bonds, Treasury bills, corporate bonds, and
large company stocks. Returns for each asset class were represented by the
returns on commonly used market indexes compiled by Lehman Brothers and
Ibbotson & Associates.
A hypothetical investment of $100,000 was made in each of these asset
classes at the beginning of 1976, with all dividends and interest reinvested
through the end of 1995. In addition, the after-tax proceeds of an assumed
annual 20% turnover rate were reinvested. The study assumed that taxes were
paid annually at the applicable federal income tax rates for an investor
earning the equivalent of $100,000 in 1995. Of course, this hypothetical
investment performance neither reflects past performance nor predicts future
results of any Nuveen investment.
INCORPORATING TAX-INFORMED INVESTING IN YOUR PORTFOLIO
The Nuveen study confirms what many investors have known for years: that
municipal bonds can play a critical role in the long-term financial strategies
of tax-informed investors.
Balancing short-term and long-term investments
Combining shorter- and longer-term tax-free investments may help you manage
cumulative risk in your portfolio while still capturing the potential for
attractive overall rates. Shorter-term investments can help reduce the current
volatility of your portfolio and provide a source of investable funds to take
advantage of additional investment opportunities as they arise. Longer-term
leveraged exchange-traded funds have provided attractive yields and offer
trading flexibility that allows quick and easy portfolio adjustments.
Dividend reinvestment
Studies indicate that weathering market cycles by maintaining an investment
plan with long-term goals can help shield investors in the event of a
declining market. The purchase of additional shares on a regular schedule,
such as through dividend reinvestment, is another strategy for navigating
market changes. Dividend reinvestment is an easy and convenient way to set
aside dollars on a regular basis, helping you take advantage of dollar-cost
averaging while gaining the benefits of tax-free compounding.
CONSISTENT AFTER-TAX PERFORMANCE
For the long-term investor, performance--even after the impact of taxes and
inflation--is the true measure of an investment's merit. While most investors
choose municipal bonds for their tax-free income advantage, the positive news
about their after-tax returns reinforces their potential value as part of a
tax-informed investment strategy designed to meet long-term objectives.
Understanding the impact of taxes can mean that you keep more of what you
earn, and municipal bonds can help you do just that.
<PAGE>
Only municipals and equities generated significant increases in purchasing
power over the twenty-year period, with after-tax and inflation-adjusted
returns in excess of 2.75% annually.
<TABLE>
ANNUAL AFTER-TAX REAL RETURNS, 1976-1995
<CAPTION>
PERIOD MUNICIPALS TREASURIES CORPORATES STOCKS BILLS
<S> <C> <C> <C> <C> <C>
1976-1985 .69% -3.32% -2.14% 2.75% -2.67%
1986-1995 5.15 4.21 3.91 7.31 0.13
1976-1995 2.88% 0.37% 0.84% 5.02% -1.30%
</TABLE>
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Photographic image of couple walking on beach.
CONTENTS
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
13 Fund performance
16 Commonly used terms
18 Portfolio of investments
46 Statement of net assets
48 Statement of operations
50 Statement of changes in net assets
53 Notes to financial statements
64 Financial highlights
68 Report of independent auditors
69 Nuveen Exchange-Traded Funds dividend reinvestment program
<PAGE>
Municipal market perspective
Following the outstanding performance of 1995, the beginning of 1996 saw a
slight price decline in the overall bond market. Municipal bonds, however,
maintained an edge over Treasuries and ended the first half of the year on a
positive note with a rally in bond prices. Over the past 12 months, the
municipal market continued to reward investors with solid returns and
opportunities to purchase higher yielding bonds with strong credit quality.
A look at the current economy shows that inflation continues to amble along at
the same modest pace as over the past five years. Generally level producer
prices, low wage pressure, and a stable money supply are supportive of a
moderately expanding economy.
Despite this ideal combination of slow expansion and low inflation, investors
continue to maintain a watchful eye for any indication of acceleration or the
reappearance of inflation. If the Federal Reserve acts to increase short-term
rates, such action would signal the Fed's concern about expansion but would
also serve to further squelch inflation.
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Dear shareholder
Photographic image of head shot of Chairman and Chief Executive Officer
of Nuveen.
"Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors."
As I begin my duties as the new chairman and chief executive officer of
John Nuveen & Co. Incorporated and chairman of the board of the Nuveen
exchange-traded funds, I am pleased to have this opportunity to report to you
on the performance of your funds. My experience at Nuveen over the past 19
years has shaped my commitment to maintaining Nuveen's tradition of value
investing and prudent management. We strive to help our shareholders meet
their need for tax-free investment income with a full range of investment
choices. Our focus will continue to be on building shareholder value,
providing research-oriented management, and delivering dependable performance.
We believe this focus will contribute to many more years of investment success
for our fund shareholders.
Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors. The performance of the exchange-traded funds
covered in this report demonstrates the ability of quality investments to
provide attractive tax-free income. As of July 31, 1996, the current annual
yield on share price for these funds ranged from 5.84% to 6.29%. To match
these yields, an investor in the 36% federal income tax bracket would have had
to earn at least 9.13% on taxable alternatives. When state taxes are taken
into account, the power of tax-free investing is even more apparent. Without
question, taxable yields at this level on investments of comparable quality
can be difficult to achieve in today's markets.
With the strength of the bond market last year, all of these funds saw an
increase in share price and net asset value per share, further improving
investors' overall experience for the year ending July 31, 1996, while
producing attractive returns. Total returns, representing changes in net asset
value and reinvestment of all dividends and capital gains, if any, ranged from
7.72% to 8.88%, equivalent to taxable investments with total returns of 11.40%
to 12.75%.
The years ahead present opportunities for all of us. I want to thank you for
your continued confidence in Nuveen exchange-traded funds, and I look forward
to sharing reports of continued progress with you.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
September 13, 1996
<PAGE>
Answering your questions
Photographic image of montage of letters received by Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, discusses the
investment environment and recent factors affecting the municipal market.
What has been Nuveen's investment approach over the past year?
Nuveen continues to pursue its value investing strategy, a disciplined
approach to security selection and portfolio construction designed to deliver
above-market performance by identifying individual bonds with current yields,
prices, credit quality, and future prospects that are exceptionally attractive
relative to other bonds in the market. This approach was rewarded over the
past year, as many of our portfolio holdings were upgraded by the national
rating agencies, indicating that our Research Department's judgments about
credit quality were on target.
As opportunity allowed, we purchased an increased number of bonds at
discounts from their par value. These bonds, which have coupon rates slightly
below market levels, are less likely to be called from our portfolios,
assuring more stable yields for our investors.
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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.
Some funds' discounts seem to have narrowed over the past few months. What
caused this improvement?
To understand the reasons for this improvement, it may be helpful to
remember that each share has two prices: the net asset value (NAV), which
represents the underlying value of the bonds, and the share price, which is
the fund's price on the stock exchange. As with other securities, share prices
for municipal bond funds change frequently, driven by investors' demand for
shares and the available supply. When a fund's NAV is higher than its share
price, we say that the shares can be purchased at a discount.
In 1995, the recovery of the bond market meant that the net asset values for
some funds appreciated more quickly than their share prices, widening
discounts for a while. This is not unusual, as the market often takes time to
reflect underlying value balanced against the various factors that affect
individual investor decisions, such as the outlook for the direction of
interest rates, inflation forecasts, the relative strength of the stock
market, and legislative and tax outlooks. As investor worries about tax
reform--and the potential effect of a flat tax proposal on tax-free
investments--waned over the first half of the year, the demand for tax-free
products grew. The combination of higher yields, concerns about the direction
of the stock market, and broker recommendations has also prompted greater
demand for municipal bonds and bond funds. With increased demand, share prices
have generally risen, resulting in narrower discounts. In fact, some
exchange-traded funds are now trading at a premium, that is, their share
prices are higher than their NAVs.
<PAGE>
What are some of the factors affecting dividend stability and changes?
All Nuveen funds are structured to provide an attractive stream of
tax-free income. For many investors, stability of income is another important
objective. To help investors satisfy this objective, we set dividends on
Nuveen funds conservatively, seeking a level that we expect will be
sustainable for at least several months. Many of the funds that have seen
dividend reductions over the past year had previously enjoyed prolonged
periods without dividend changes. Still, dividends ultimately depend on the
overall earnings of each fund, which can be reduced by bond calls,
fluctuations in long- and short-term interest rates, and other portfolio
changes.
<PAGE>
The funds in this report use leverage as an additional way to enhance income
for common shareholders. The dividends of leveraged funds can be affected by a
sudden or prolonged rise in short-term interest rates. In fact, short-term
rates on average have been higher over the past two years than they were in
the early 1990s. This has resulted in higher rates for preferred shareholders
and less income available for common shareholders. It is important to remember
that leverage can increase NAV volatility as well as investment potential.
Greater stability in both long- and short-term interest rates in 1996 has
reduced some of the pressures on dividends and NAVs for many leveraged funds.
Another factor that can act to lower dividends is bond calls. When the
Federal Reserve Board cut rates between July 1995 and January 1996, long-term
municipal bond yields reacted by declining almost 130 basis points from their
levels at the beginning of 1995. As older, higher-yielding bonds were called
from some portfolios, they were replaced with the bonds available in the
market today, reducing fund earnings. To reduce the effect of bond calls and
protect investors' current income, Nuveen has taken advantage of opportunities
to invest in an increased number of non-callable bonds as well as bonds priced
at a discount from their par value.
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<TABLE>
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC.
NAZ
Shareholders enjoyed an increase in the monthly tax-free dividend in February,
as short-term rates in this state persisted at levels lower then expected when
the dividends were set.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
08/11/95 $0.0650
09/13/95 $0.0650
10/11/95 $0.0650
11/13/95 $0.0650
12/13/95 $0.0650
01/10/96 $0.0650
02/13/96 $0.0675
03/13/96 $0.0675
04/11/96 $0.0675
05/13/96 $0.0675
06/12/96 $0.0675
07/11/96 $0.0675
<CAPTION>
FUND HIGHLIGHTS 7/31/96
<S> <C>
Yield 5.84%
Taxable-equivalent yield 9.65%
Annual total return on NAV 8.48%
Taxable-equivalent total return 12.24%
Share price $13.875
NAV $14.51
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>
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<TABLE>
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC.
NUM
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends, as well as a
capital gains distribution in December.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
08/11/95 $0.0795
09/13/95 $0.0795
10/11/95 $0.0795
11/13/95 $0.0795
12/13/95 $0.0795 $0.0681
01/10/96 $0.0795
02/13/96 $0.0795
03/13/96 $0.0795
04/11/96 $0.0795
05/13/96 $0.0795
06/12/96 $0.0795
07/11/96 $0.0795
<CAPTION>
FUND HIGHLIGHTS 7/31/96
<S> <C>
Yield 6.15%
Taxable-equivalent yield 10.25%
Annual total return on NAV 8.07%
Taxable-equivalent total return 12.42%
Share price $15.50
NAV $15.28
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>
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<TABLE>
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC.
NMP
Shareholders enjoyed an increase in the monthly tax-free dividend in June,
reflecting portfolio management's ability to improve the fund's earnings rate.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
08/11/95 $0.0645
09/13/95 $0.0645
10/11/95 $0.0645
11/13/95 $0.0645
12/13/95 $0.0645
01/10/96 $0.0645
02/13/96 $0.0645
03/13/96 $0.0645
04/11/96 $0.0645
05/13/96 $0.0645
06/12/96 $0.0660
07/11/96 $0.0660
<CAPTION>
FUND HIGHLIGHTS 7/31/96
<S> <C>
Yield 6.15%
Taxable-equivalent yield 10.25%
Annual total return on NAV 8.88%
Taxable-equivalent total return 12.75%
Share price $12.875
NAV $14.16
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>
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<TABLE>
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC.
NUO
Shareholders enjoyed an increase in the monthly tax-free dividend in
November, reflecting portfolio management's ability to improve the fund's
earnings rate.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
08/11/95 $0.0775
09/13/95 $0.0775
10/11/95 $0.0775
11/13/95 $0.0800
12/13/95 $0.0800
01/10/96 $0.0800
02/13/96 $0.0800
03/13/96 $0.0800
04/11/96 $0.0800
05/13/96 $0.0800
06/12/96 $0.0800
07/11/96 $0.0800
<CAPTION>
FUND HIGHLIGHTS 7/31/96
<S> <C>
Yield 6.00%
Taxable-equivalent yield 10.17%
Annual total return on NAV 8.68%
Taxable-equivalent total return 13.12%
Share price $16.00
NAV $15.69
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>
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<TABLE>
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND
NTX
Dividends of NTX have been consistently at an attractive level despite a
modest reduction in February, reflecting the effects of bond calls.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
08/11/95 $0.0800
09/13/95 $0.0800
10/11/95 $0.0800
11/13/95 $0.0800
12/13/95 $0.0800 $0.0366
01/10/96 $0.0800
02/13/96 $0.0780
03/13/96 $0.0780
04/11/96 $0.0780
05/13/96 $0.0780
06/12/96 $0.0780
07/11/96 $0.0780
<CAPTION>
FUND HIGHLIGHTS 7/31/96
<S> <C>
Yield 6.29%
Taxable-equivalent yield 9.83%
Annual total return on NAV 7.72%
Taxable-equivalent total return 11.40%
Share price $14.875
NAV $15.06
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>
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Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, July 31, 1996) divided by its closing price per share
on that date.
Taxable equivalent yield
The 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 annualized yield on share price. In this report, these tax rates are
assumed to be 39.5 for AZ, 40% for MI, 41% for OH, and 36% for TX, based on
1996 incomes of $121,300-$263,750 for investors filing singly,
$147,700-$263,750 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.
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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, 1996. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
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<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>
$ 500,000 Arizona Board of Regents, Arizona State University,
System Revenue Refunding Bonds, Series 1992-A,
5.750%, 7/01/12 7/02 at 101 AA $ 503,800
2,150,000 Arizona Municipal Financing Program of 1992 Refunding
Certificates of Participation, Series 1, 6.000%, 8/01/17 7/02 at 101 Aaa 2,192,398
800,000 Arizona State University Research Park, Development
Refunding Bonds, Series 1995, 5.125%, 7/01/14 7/02 at 100 Aaa 755,256
1,500,000 State of Arizona, Transportation Board, Highway Revenue
Bonds, Series 1990, 6.000%, 7/01/10 (Pre-refunded
to 7/01/00) 7/00 at 101 Aaa 1,593,345
1,750,000 Student Loan Acquisition Authority of Arizona (A nonprofit
Corporation organized pursuant to the laws of the State
of Arizona), Student Loan Revenue Bonds, Series 1994,
6.600%, 5/01/10 (Alternative Minimum Tax) 5/04 at 102 Aa 1,849,610
500,000 Wastewater Management Authority of Arizona,
Wastewater Treatment Financial Assistance Revenue
Bonds, Series 1995, 5.750%, 7/01/15 7/05 at 102 Aaa 500,975
3,425,000 Wastewater Management Authority of Arizona, Wastewater
Treatment, Financial Assistance Revenue Bonds, Series
1996A, 5.600%, 7/01/12 7/06 at 102 Aaa 3,448,804
City of Bullhead, Bullhead Parkway Improvement
District Improvement Bonds:
910,000 6.100%, 1/01/08 1/03 at 103 Baa 931,531
970,000 6.100%, 1/01/09 1/03 at 103 Baa 985,908
1,600,000 City of Lake Havasu, Municipal Property Corporation,
Municipal Facilities Revenue Bonds, Series 1993,
6.000%, 6/01/08 6/02 at 101 Aaa 1,664,368
1,400,000 Maricopa Rural Road Improvement District of Pinal County,
Arizona, Refunding Bonds, Series 1994, 7.000%, 7/01/07 7/99 at 101 N/R 1,470,630
1,500,000 The Industrial Development Authority of the County of
Maricopa (Arizona), Insured Health Facility Revenue
Bonds (Catholic Healthcare West), 1992 Series A,
5.750%, 7/01/11 7/02 at 102 Aaa 1,510,815
3,500,000 The Industrial Development Authority of the County of
Maricopa (Arizona), Samaritan Health Services, Hospital
System Revenue Refunding Bonds, Series 1990A,
7.000%, 12/01/16 No Opt. Call Aaa 4,078,235
600,000 The Industrial Development Authority of the County of
Maricopa, Arizona, Baptist Hospital System Revenue
Refunding Bonds, Series 1995, 5.500%, 9/01/16 9/05 at 101 Aaa 579,120
Kyrene Elementary School District No. 28 of Maricopa
County, Arizona, School Improvement Bonds, Project of
1990, Series E (1993):
3,195,000 6.000%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 100 Aaa 3,406,381
605,000 6.000%, 7/01/12 7/02 at 100 Aaa 621,141
2,500,000 Paradise Valley Unified School District No. 69 of Maricopa
County, Arizona, School Improvement Bonds, Project of
1990, Series D (1993), 5.875%, 7/01/12 7/03 at 102 Aaa 2,566,125
1,400,000 Chandler Unified School District No. 80 of Maricopa
County, Arizona, General Obligation Refunding Bonds,
Series 1993, 5.950%, 7/01/10 7/03 at 101 Aaa 1,455,454
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
The Industrial Development Authority of the County of
Mohave, Hospital System Revenue Refunding Bonds
(Medical Environments, Inc. and Phoenix Baptist
Hospital and Medical Center, Inc.), Series 1993:
$ 5,000,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa $ 5,632,000
1,000,000 7.000%, 7/01/16 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 1,140,950
2,000,000 The Industrial Development Authority of the County of
Mohave (Arizona) Industrial Development Revenue
Bonds, 1994 Series (Citizens Utilities Company Projects),
6.600%, 5/01/29 (Alternative Minimum Tax) 11/03 at 101 AAA 2,061,480
2,000,000 Hospital District No. One, Mohave County, Arizona,
Refunding General Obligation Bonds (Kingman
Regional Medical Center Project), Series 1992,
6.500%, 6/01/15 6/02 at 101 Aaa 2,112,520
1,000,000 The Industrial Development Authority of the County of
Mohave, Health Care Revenue Refunding Bonds, Series
1996 (GNMA Collateralized - Chris Ridge and Silver
Ridge Village Projects), 6.375%, 11/01/31 5/06 at 103 AAA 1,017,790
1,400,000 Navajo County, Arizona, Pollution Control Corporation,
Pollution Control Revenue Refunding Bonds
(Arizona Public Service Company), 1993 Series A,
5.875%, 8/15/28 8/03 at 102 Baa1 1,355,270
2,500,000 City of Phoenix, Arizona, General Obligation Refunding
Bonds, Series 1992, 6.375%, 7/01/13 7/02 at 102 Aa1 2,646,125
1,600,000 City of Phoenix, Arizona, General Obligation Refunding
Bonds, Series 1995A, 5.000%, 7/01/19 7/05 at 101 AA+ 1,458,576
4,700,000 City of Phoenix (Arizona), Civic Improvement Corporation,
Wastewater System Lease Revenue Bonds, Series 1993,
6.125%, 7/01/23 (Pre-refunded to 7/01/03) 7/03 at 102 AAA 5,137,617
2,500,000 City of Phoenix Civic Improvement Corporation (Arizona),
Wastewater System Lease Revenue Revenue Refunding
Bonds, Series 1993, 5.000%, 7/01/10 7/04 at 102 A1 2,364,300
2,150,000 Phoenix Civic Plaza Building Corporation, Senior Lien
Excise Tax Revenue Bonds, Series 1994,
6.000%, 7/01/14 7/05 at 101 AA+ 2,200,676
2,720,000 City of Phoenix, Arizona, Water System Revenue
Refunding Bonds, Series 1993, 5.500%, 7/01/22 7/03 at 101 AA 2,605,869
470,000 The Industrial Development Authority of the City of
Phoenix, Arizona, Statewide Single Family Mortgage
Revenue Bonds, Series 1995, 6.150%, 6/01/08
(Alternative Minimum Tax) 6/05 at 102 AAA 472,721
2,000,000 The Industrial Development Authority of the County of
Pima (Arizona) Industrial Development Lease
Obligation Refunding Revenue Bonds, 1988 Series A
(Irvington Project), 7.250%, 7/15/10 1/02 at 103 Aaa 2,184,220
1,510,000 Metropolitan Domestic Water Improvement District
of Pima County, Arizona, Special Assessment and
Water Revenue Bonds, Series 1992, 6.200%, 1/01/12 1/03 at 101 Aaa 1,579,989
450,000 The Industrial Development Authority of the County of
Pima (Arizona), Single Family Mortgage Revenue
Refunding Bonds, Series 1995A, 6.500%, 2/01/17 8/05 at 102 A 459,572
1,800,000 Salt River Project Agricultural Improvement and Power
District, Arizona, Salt River Project Electric System
Revenue Bonds, 1992 Series D, 5.750%, 1/01/19 1/02 at 100 Aa 1,776,474
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,400,000 Salt River Project Agricultural Improvement and Power
District, Electric System Revenue Refunding Bonds,
1993 Series C, 5.000%, 1/01/16 1/04 at 102 Aa $ 2,184,432
2,000,000 Tempe Union High School District No. 213 of Maricopa
County, Arizona, School Improvement and Refunding
Bonds, Series 1994, 6.000%, 7/01/12 7/04 at 101 Aaa 2,080,960
3,000,000 City of Tucson, Arizona, General Obligation Bonds,
Series 1984-G (1994), 6.250%, 7/01/18 7/04 at 101 Aaa 3,122,040
City of Tucson, Arizona, General Obligation Bonds,
Series 1994-B (1996):
1,290,000 5.750%, 7/01/18 7/06 at 101 Aa 1,296,011
1,000,000 5.750%, 7/01/19 7/06 at 101 Aa 1,001,230
5,000,000 Tucson Airport Authority, Inc. (Arizona), Airport
Revenue Bonds, Refunding Series 1993,
5.700%, 6/01/13 6/03 at 102 Aaa 5,012,300
725,000 City of Tucson, Arizona, Certificates of Participation,
Series 1994, 6.375%, 7/01/09 7/04 at 100 AA 764,281
3,500,000 City of Tucson, Arizona, Water System Revenue
Refunding Bonds, Series 1992A, 5.750%, 7/01/18 7/02 at 102 A1 3,497,655
2,000,000 City of Tucson, Arizona, Water System Revenue Bonds,
Series 1994-A (1996), 6.000%, 7/01/21 7/06 at 101 Aaa 2,046,920
100,000 University of Arizona Telecommunications System,
Certificates of Participation, Series 1991,
6.500%, 7/15/12 7/02 at 102 A+ 107,706
650,000 Certificates of Participation, Series 1994B (University of
Arizona Administrative and Parking Facilities Project),
6.000%, 7/15/23 7/04 at 102 Aaa 661,921
2,000,000 University Medical Center Corporation (Tucson, Arizona),
Hospital Revenue Refunding Bonds, Series 1992,
6.250%, 7/01/16 7/02 at 102 Aaa 2,074,980
1,000,000 Arizona Board of Regents, University of Arizona, System
Revenue Refunding Bonds, Series 1992,
6.250%, 6/01/11 6/02 at 102 AA 1,048,090
$88,270,000 Total Investments - (cost $87,106,922) - 99.1% 91,218,571
=============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 100,000 Maricopa County, Arizona Pollution Control Corporation,
Pollution Control Revenue Refunding Bonds (Arizona
Public Service Company Palo Verde Project),
1994 Series F, Variable Rate Demand Bonds,
3.650%, 5/01/29+ A-1+ 100,000
100,000 Maricopa County, Arizona Pollution Control Corporation,
Pollution Control Revenue Refunding Bonds (Arizona
Public Service Company Palo Verde Project),
1994 Series B, Variable Rate Demand Bonds,
3.600%, 5/01/29+ A-1+ 100,000
$ 200,000 Total Temporary Investments - 0.2% 200,000
=============
Other Assets Less Liabilities - 0.7% 676,020
Net Assets - 100% $92,094,591
===========
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 28 $60,710,825 66%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 19,335,174 21
PORTFOLIO OF A+ A1 3 5,969,661 6
INVESTMENTS A, A- A, A2, A3 1 459,572 1
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 3 3,272,709 4
TEMPORARY Non-rated Non-rated 1 1,470,630 2
INVESTMENTS):
TOTAL 48 $91,218,571 100%
<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.
+ 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.
</FN>
</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 Higher Education Student Loan Authority,
Student Loan and Refunding Revenue Bonds,
Series XV-A:
$ 1,000,000 6.800%, 10/01/07 (Alternative Minimum Tax) 10/02 at 102 A $ 1,066,560
1,250,000 6.800%, 10/01/08 (Alternative Minimum Tax) 10/02 at 102 A 1,321,525
990,000 6.800%, 10/01/09 (Alternative Minimum Tax) 10/02 at 102 A 1,045,341
2,000,000 Michigan Municipal Bond Authority, Local Government
Loan Program Revenue Bonds, Series 1992D,
6.650%, 5/01/12 5/02 at 102 A 2,096,420
3,100,000 Michigan Municipal Bond Authority, State Revolving
Fund Reserve Bonds, Series 1992A, 6.600%, 10/01/18 10/02 at 102 Aa 3,272,608
2,390,000 Michigan South Central Power Agency, Power Supply
System Revenue Refunding Bonds, 1991 Series,
6.750%, 11/01/10 11/01 at 102 A 2,541,717
410,000 Michigan State Hospital Finance Authority, Hospital
Revenue and Refunding Bonds (The Detroit Medical
Center Obligated Group), Series 1988B,
8.125%, 8/15/08 8/98 at 102 A 441,324
1,450,000 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (McLaren Obligated Group), Series
1991A, 7.500%, 9/15/21 (Pre-refunded to 9/15/01) 9/01 at 102 Aaa 1,657,452
5,090,000 Michigan State Hospital Finance Authority, Hospital
Revenue and Refunding Bonds (The Detroit Medical
Center Obligated Group), Series 1988B,
8.125%, 8/15/08 (Pre-refunded to 8/15/98) 8/98 at 102 Aaa 5,563,574
9,355,000 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds, (Daughters of Charity National Health
System-Providence Hospital), Series 1991,
7.000%, 11/01/21 11/01 at 102 Aa 10,067,009
8,800,000 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (Mercy Mount Clemens Corporation),
Series 1992, 6.000%, 5/15/17 5/01 at 100 Aa 8,804,488
3,035,000 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (Mid-Michigan Obligated Group),
Series 1992, 6.900%, 12/01/24 12/02 at 102 A 3,178,343
2,200,000 Michigan State Hospital Finance Authority, Hospital
Revenue and Refunding Bonds (Daughters of Charity
National Health System-St. Mary's Medical Center of
Saginaw, Inc.), Series 1995, 5.250%, 11/01/15 11/05 at 101 Aa 2,028,246
4,740,000 Michigan State Housing Development Authority,
Single-Family Mortgage Revenue Bonds, 1991 Series B,
6.950%, 12/01/20 12/01 at 102 AA 5,005,772
2,440,000 Michigan State Housing Development Authority,
Single-Family Mortgage Revenue Bonds, 1992 Series A,
6.875%, 6/01/23 6/02 at 102 AA 2,539,162
5,250,000 Michigan State Housing Development Authority, Limited
Obligation Revenue Bonds (Parkway Meadows Project),
Series 1991, 6.850%, 10/15/18 10/02 at 103 Aaa 5,501,003
8,720,000 Michigan State Housing Development Authority, Rental
Housing Revenue Bonds, 1991 Series B,
7.100%, 4/01/21 1/02 at 102 A+ 9,132,892
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,860,000 Michigan State Housing Development Authority, Rental
Housing Revenue Bonds, 1991 Series A,
7.150%, 4/01/10 (Alternative Minimum Tax) 1/02 at 102 A+ $ 1,950,154
4,330,000 Michigan Strategic Fund, Limited Obligation Refunding
Revenue Bonds (The Detroit Edison Company Pollution
Control Bonds Project), Collateralized Series 1991CC,
6.950%, 9/01/21 9/01 at 102 Aaa 4,673,586
7,600,000 Michigan Strategic Fund Limited Obligation Refunding
Revenue Bonds (The Detroit Edison Company Pollution
Control Bonds Project), Collateralized Series 1991DD,
6.875%, 12/01/21 12/01 at 102 Aaa 8,280,732
4,255,000 State Building Authority, State of Michigan, 1991 Revenue
Bonds, Series II, 6.800%, 10/01/21 10/01 at 102 AA- 4,579,657
4,800,000 State Building Authority, State of Michigan, 1991 Revenue
Refunding Bonds, Series I, 6.250%, 10/01/20 10/01 at 102 AA- 4,856,064
4,000,000 State of Michigan, Comprehensive Transportation
Refunding Bonds, Series 1992B, 5.750%, 5/15/11 5/02 at 100 AA- 3,989,760
7,200,000 State of Michigan, State Trunk Line Fund Bonds, Series
1989A, 7.000%, 8/15/17 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa 7,869,240
4,935,000 Anchor Bay School District, Counties of Macomb and St.
Clair, State of Michigan, 1993 School Building and Site
Bonds (General Obligation Unlimited Tax),
5.550%, 5/01/19 5/03 at 101 1/2 Aaa 4,794,895
1,200,000 Berkley School District, County of Oakland, State of
Michigan, 1995 School Building and Site Bonds,
(General Obligation-Unlimited Tax), 6.000%, 1/01/19 1/05 at 101 Aaa 1,214,292
5,200,000 Chippewa Valley Schools, County of Macomb, State of
Michigan, 1993 Refunding Bonds (General Obligation-
Unlimited Tax), 5.000%, 5/01/21 5/03 at 102 Aaa 4,672,252
2,450,000 The Economic Development Corporation of the City of
Dearborn, Hospital Revenue Bonds (Oakwood
Obligated Group), Series 1995A, 5.750%, 11/15/15 11/05 at 102 Aaa 2,431,429
1,000,000 Dearborn Municipal Building Authority, Limited Tax,
General Obligation (1991 Building Authority Bonds),
5.000%, 6/01/16 6/04 at 101 Aaa 914,620
2,000,000 School District of the City of Detroit, Wayne County,
Michigan, School Building and Site Improvement Bonds
(Unlimited Tax General Obligation), Series 1996A,
5.700%, 5/01/25 5/06 at 102 Aaa 1,959,640
7,000,000 The Economic Development Corporation of the City of
Detroit, Resource Recovery Revenue Bonds, Series
1991A, 6.875%, 5/01/09 (Alternative Minimum Tax) 5/01 at 102 Aaa 7,442,960
685,000 City of Detroit, County of Wayne, Michigan, Sewage
Disposal System Revenue Bonds (1979 Series),
6.900%, 12/15/99 No Opt. Call Aaa 705,310
6,500,000 City of Detroit, Michigan Water Supply System Revenue
and Revenue Refunding Bonds, Series 1993,
5.000%, 7/01/23 7/04 at 102 Aaa 5,759,260
1,600,000 Gaylord Community Schools, Counties of Ostego and
Antrim, State of Michigan, 1992 School Building and
Site and Refunding Bonds, 6.600%, 5/01/21
(Pre-refunded to 5/01/02) 5/02 at 102 Aa 1,771,440
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,075,000 Goodrich Area Schools, Counties of Genesee, Oakland and
Lapeer, State of Michigan, 1995 School Building and
Site and Refunding Bonds (General Obligation-
Unlimited Tax), 5.875%, 5/01/24 5/05 at 102 Aaa $ 3,081,950
2,500,000 Grand Ledge Public Schools, Counties of Eaton, Clinton
and Ionia, State of Michigan, 1995 Refunding Bonds,
5.375%, 5/01/24 5/05 at 102 Aaa 2,362,275
3,000,000 Grand Rapids Community College, Community College
Bonds, Series 1993 (General Obligation Limited Tax),
5.000%, 5/01/21 5/03 at 102 AA- 2,695,530
1,325,000 Greenville Public Schools, Counties of Montcalm, Kent
and Ionia, State of Michigan, 1995 School Building and
Site Bonds (General Obligation-Unlimited Tax),
5.750%, 5/01/14 5/04 at 101 Aaa 1,328,299
1,000,000 Grosse Ile Township School District, School
Improvement Refunding Bonds, General Obligation,
Series 1996, 6.000%, 5/01/22 (WI) 5/07 at 100 Aaa 1,004,210
1,250,000 Gull Lake Community Schools, Counties of Kalamazoo,
Barry and Calhoun, State of Michigan, 1991 School
Building and Site Bonds, 6.800%, 5/01/21
(Pre-refunded to 5/01/01) 5/01 at 102 Aaa 1,384,188
2,000,000 Hart Public Schools, County of Oceana, State of Michigan,
1995 School Building and Site Bonds (General
Obligation-Unlimited Tax), 5.800%, 5/01/16 5/05 at 101 Aaa 2,002,180
3,100,000 Hemlock Public School District Counties of Saginaw
and Midland, State of Michigan, 1992 School Building
and Site and Refunding Bonds, 6.750%, 5/01/21
(Pre-refunded to 5/01/02) 5/02 at 102 Aa 3,453,307
1,000,000 Huron Valley School District, Counties of Oakland and
Livingston, State of Michigan, 1996 (General
Obligation-Unlimited Tax), 5.875%, 5/01/16 (WI) 5/07 at 100 Aaa 1,002,260
4,225,000 Lake Orion Community School District, County of
Oakland, State of Michigan, 1995 Refunding Bonds
(General Obligation-Unlimited Tax), 5.500%, 5/01/20 5/05 at 101 Aaa 4,075,435
2,000,000 Lincoln Park School District, General Obligation Bonds,
Series 1996, 5.900%, 5/01/26 5/06 at 101 AAA 2,005,680
1,000,000 Marquette Area Public Schools, County of Marquette,
State of Michigan, 1991 School Building and Site Bonds,
Series B (General Obligation-Unlimited Tax),
6.700%, 5/01/21 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 1,103,310
2,000,000 Mason Public Schools, County of Ingham, State of
Michigan, 1995 School Building and Site Bonds
(General Obligation-Unlimited Tax), 5.400%, 5/01/15 5/05 at 101 1/2 Aaa 1,925,680
6,400,000 Mattawan Consolidated School, Counties of Van Buren
and Kalamazoo, State of Michigan, 1992 Refunding
Bonds (General Obligation-Unlimited Tax),
6.300%, 5/01/17 5/02 at 102 AA 6,594,752
7,000,000 County of Monroe, Michigan, Pollution Control Revenue
Bonds (The Detroit Edison Company Monroe and
Fermi Plants Project), Collateralized Series I-1992,
6.875%, 9/01/22 (Alternative Minimum Tax) 9/02 at 102 Aaa 7,500,010
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,150,000 North Branch Area Schools, County of Lapeer, State of
Michigan, 1992 School Building and Site and
Refunding Bonds (General Obligation-Unlimited Tax),
6.600%, 5/01/17 (Pre-refunded to 5/01/02) 5/02 at 102 AA $ 2,380,373
1,475,000 North Branch Area Schools, County of Lapeer, State of
Michigan, 1993 Refunding Bonds (General Obligation-
Unlimited Tax), 5.375%, 5/01/21 5/03 at 101 1/2 Aaa 1,397,666
2,000,000 Board of Trustees of Oakland University, Michigan,
General Revenue Bonds, Series 1995, 5.750%, 5/15/15 5/05 at 102 Aaa 2,002,200
2,000,000 Oxford Area Community Schools, Counties of Oakland
and Lapeer, State of Michigan, 1996 School Building
and Site Bonds (General Obligation-Unlimited Tax),
5.500%, 5/01/21 5/06 at 101 Aaa 1,927,840
1,500,000 Perry Public Schools, Counties of Shiawassee and Ingham,
State of Michigan, 1992 School Building and Site Bonds
(General Obligation-Unlimited Tax), 6.375%, 5/01/22
(Pre-refunded to 5/01/02) 5/02 at 101 1/2 Aaa 1,642,005
4,650,000 Plymouth-Canton Community Schools, Counties of
Wayne and Washtenaw, State of Michigan, 1991 School
Building and Site and Refunding Bonds, Series B,
6.800%, 5/01/11 (Pre-refunded to 5/01/01) 5/01 at 101 Aa 5,103,468
1,000,000 Reeths-Puffer Schools, County of Muskegon, State of
Michigan, 1995 School Building and Site and
Refunding Bonds, 5.750%, 5/01/15 5/05 at 101 Aaa 1,000,300
6,385,000 City of Royal Oak Hospital Finance Authority (Michigan),
Hospital Revenue Bonds (William Beaumont Hospital),
Series 1991D, 6.750%, 1/01/20 1/01 at 102 Aa 7,025,479
4,845,000 Saginaw-Midland Municipal Water Supply Corporation,
State of Michigan, Water Supply Revenue Bonds (Limited
Tax General Obligation), Series 1992, 6.875%, 9/01/16 9/04 at 102 A 5,298,928
2,400,000 Three Rivers Community Schools, Counties of Cass and
St. Joseph, State of Michigan, 1996 School Building
and Site Bonds (General Obligation-Unlimited Tax),
6.000%, 5/01/23 5/06 at 102 Aaa 2,420,880
Regents of the University of Michigan, Medical Service
Plan Revenue Bonds, Series 1991:
2,195,000 0.000%, 12/01/10 No Opt. Call Aa 952,652
9,250,000 6.500%, 12/01/21 12/01 at 102 AA- 9,634,153
4,200,000 Warren Consolidated Schools, Counties of Macomb and
Oakland, State of Michigan, 1991 School Building and
Site and Refunding Bonds (General Obligation-
Unlimited Tax), 6.700%, 5/01/21 (Pre-refunded
to 5/01/01) 5/01 at 102 Aa 4,616,892
5,280,000 The Economic Development Corporation of the City of
Warren, Nursing Home Revenue Refunding Bonds
(GNMA Mortgage-Backed Security-Autumn Woods
Project), Series 1992, 6.900%, 12/20/22 3/02 at 101 Aaa 5,516,016
2,505,000 Charter County of Wayne, Michigan, Airport Revenue
Bonds (Detroit Metropolitan Wayne County Airport),
Subordinate Lien, Series 1991B, 6.750%, 12/01/21
(Alternative Minimum Tax) 12/01 at 102 Aaa 2,670,330
1,895,000 Western Townships Utilities Authority, Sewage Disposal
System Bonds, Series 1989, 8.300%, 1/01/19 1/99 at 102 BBB+ 2,085,181
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Western Townships Utilities Authority, Sewage Disposal
System Refunding Bonds, Series 1991:
$ 1,500,000 6.750%, 1/01/15 1/02 at 100 Aaa $ 1,607,354
6,250,000 6.500%, 1/01/19 1/02 at 100 Aaa 6,561,312
2,725,000 Williamston Community School District, General
Obligation-Unlimited Tax, Series 1996 (Q-SBLF),
5.500%, 5/01/25 No Opt. Call Aaa 2,644,748
5,000,000 City of Wyandotte, County of Wayne, State of Michigan,
1992 Electric Revenue Refunding Bonds,
6.250%, 10/01/17 10/02 at 102 Aaa 5,145,850
1,000,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series X, 5.500%, 7/01/25 7/05 at 100 A- 937,540
$239,915,000 Total Investments - (cost $232,818,656) - 98.5% 247,218,960
=============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.6%
$ 2,700,000 The Economic Development Corporation of the County
of Delta (Michigan), Environmental Improvement
Revenue Bonds (Mead-Escanaba Paper Company
Project), Series 1992E, Variable Rate Demand Bonds,
3.550%, 12/01/23+ A-1+ 2,700,000
1,000,000 The Economic Development Corporation of the County
of Delta (Michigan), Environmental Improvement
Revenue Bonds (Mead-Escanaba Paper Company
Project), Series 1992, Variable Rate Demand Bonds,
3.650%, 12/01/23+ (Alternative Minimum Tax) A-1+ 1,000,000
200,000 Regents of TheUniversity of Michigan, Adjustable Rate
Demand Hospital Revenue Refunding Bonds, Series
1992A, Variable Rate Demand Bonds, 3.750%, 12/01/19+ VMIG-1 200,000
$ 3,900,000 Total Temporary Investments - 1.6% 3,900,000
=============
Other Assets Less Liabilities - (0.1%) (85,972)
Net Assets - 100% $251,032,988
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 39 $126,752,223 51%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 89,370,812 36
PORTFOLIO OF A+ A1 2 11,083,046 5
INVESTMENTS A, A- A, A2, A3 9 17,927,698 7
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 2,085,181 1
TEMPORARY
INVESTMENTS):
TOTAL 70 $247,218,960 100%
<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.
(WI) Security purchased on a when-issued basis (note 1).
+ 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.
</FN>
</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>
$ 1,250,000 Michigan Higher Eduction Student Loan Authority,
Student Loan and Refunding Revenue Bonds, Series
XV-A, 6.700%, 10/01/05 (Alternative Minimum Tax) 10/02 at 102 A $ 1,299,575
1,950,000 Michigan Municipal Bond Authority, State Revolving
Fund Revenue Bonds, Series 1994, 7.000%, 10/01/03 No Opt. Call Aa 2,189,168
3,750,000 Michigan Public Power Agency, Belle River Project
Refunding Revenue Bonds, 1993 Series A,
5.250%, 1/01/18 1/03 at 102 AA- 3,444,938
1,775,000 Michigan South Central Power Agency, Power Supply
System Revenue Refunding Bonds, 1992 Series,
5.700%, 11/01/04 No Opt. Call Aaa 1,865,969
2,500,000 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (Daughters of Charity National Health
System-Providence Hospital), Series 1991,
7.000%, 11/01/21 11/01 at 102 Aa 2,690,275
4,000,000 Michigan State Hospital Finance Authority (Michigan),
Hospital Revenue and Refunding Bonds (Henry Ford
Health System), Series 1992A, 5.750%, 9/01/17 9/02 at 102 Aa 3,916,120
3,000,000 Michigan State Hospital Finance Authority (Michigan),
Hospital Revenue Refunding Bonds (St. John Hospital),
Series 1993A, 6.000%, 5/15/13 5/03 at 102 Aaa 3,056,040
Michigan State Hospital Finance Authority, Revenue and
Refunding Bonds (The Detroit Medical Center
Obligated Group), Series 1993A:
3,000,000 6.250%, 8/15/13 8/03 at 102 A 3,046,410
3,200,000 6.500%, 8/15/18 8/03 at 102 A 3,271,104
4,000,000 Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds (Oakwood Hospital
Obligated Group), Series 1993A, 5.500%, 11/01/13 11/03 at 102 Aaa 3,895,360
1,500,000 Michigan State Hospital Finance Authority, Hospital
Revenue and Refunding Bonds (The Detroit Medical
Center Obligated Group), Series 1993B,
5.000%, 8/15/02 No Opt. Call A 1,495,335
2,000,000 Michigan State Hospital Finance Authority, Hospital
Revenue and Refunding Bonds (Otsego Memorial
Hospital Gaylord, Michigan), Series 1995,
6.250%, 1/01/20 1/05 at 102 AA 2,043,620
5,250,000 Michigan State Housing Development Authority, Single
Family Mortgage Revenue Bonds, 1995 Series A,
6.800%, 12/01/16 6/05 at 102 AA+ 5,457,428
2,400,000 Michigan State Housing Development Authority, Limited
Obligation Revenue Bonds (Walled Lake Villa Project),
Series 1993, 6.000%, 4/15/18 4/04 at 103 Aaa 2,391,096
1,500,000 Michigan State Housing Development Authority, Limited
Obligation Revenue Bonds (Brenton Village Green
Project), Series 1993, 5.625%, 10/15/18 10/03 at 103 Aaa 1,426,035
Michigan State Housing Development Authority, Rental
Housing Revenue Bonds, 1992 Series A:
4,000,000 6.500%, 4/01/06 10/02 at 102 A+ 4,192,920
4,300,000 6.600%, 4/01/12 10/02 at 102 A+ 4,450,199
1,000,000 Michigan State Housing Development Authority, Rental
Housing Revenue Bonds, 1993 Series A,
5.875%, 10/01/17 4/03 at 102 Aaa 987,390
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,050,000 Michigan Strategic Fund, Limited Obligation Revenue
Bonds (Waste Management, Inc. Project), Series 1992,
6.625%, 12/01/12 (Alternative Minimum Tax) 12/02 at 102 A1 $ 3,262,951
8,500,000 Michigan Strategic Fund, Limited Obligation Refunding
Revenue Bonds (Consumers Power Company Project),
Collateralized Series 1993B, 5.800%, 6/15/10 6/03 at 102 Aaa 8,671,105
1,000,000 Michigan Strategic Fund, Limited Obligation Revenue
Bonds (WMX Technologies, Inc. Project), Series 1993,
6.000%, 12/01/13 (Alternative Minimum Tax) 12/03 at 102 A1 1,005,530
1,000,000 State Building Authority, State of Michigan, 1991
Revenue Bonds, Series II, 6.250%, 10/01/20 10/01 at 102 AA- 1,011,680
2,750,000 State Building Authority, State of Michigan, 1991
Revenue Refunding Bonds, Series I, 6.250%, 10/01/20 10/01 at 102 AA- 2,782,120
3,275,000 State of Michigan, Comprehensive Transportation
Bonds, Series 1992A, 5.750%, 5/15/12 5/02 at 100 AA- 3,262,915
2,500,000 State of Michigan, State Trunk Line Fund Bonds, Series
1989A, 7.000%, 8/15/17 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa 2,732,375
1,750,000 State of Michigan, State Trunk Line Fund Bonds, Series
1994A, 5.700%, 11/15/15 11/04 at 102 AA- 1,729,473
1,500,000 City of Ann Arbor, County of Washtenaw, State of
Michigan, Water Supply System Revenue Bonds,
Series T, 5.500%, 2/01/13 2/03 at 101 1/2 Aaa 1,475,265
2,400,000 Chippewa Valley Schools, County of Macomb, State of
Michigan, 1993 Refunding Bonds (General Obligation-
Unlimited Tax), 5.000%, 5/01/21 5/03 at 102 Aaa 2,156,424
3,000,000 Clarkston Community Schools, County of Oakland, State
of Michigan, 1993 School Building and Site and
Refunding Bonds, 5.900%, 5/01/16 5/03 at 102 AA 3,012,900
2,500,000 School District of the City of Detroit Wayne County,
Michigan, School Building and Site Bonds (Unlimited
Tax General Obligation), Series 1992, 6.250%, 5/01/12 5/01 at 102 AA 2,592,175
6,500,000 City of Detroit, Michigan, Convention Facility Limited
Tax Revenue Refunding Bonds (Cobo Hall Expansion
Project), Series 1993, 5.250%, 9/30/12 9/03 at 102 Aaa 6,173,440
4,550,000 City of Detroit, Michigan, Sewage Disposal System
Revenue and Revenue Refunding Bonds, Series 1993-A,
5.700%, 7/01/13 7/03 at 102 Aaa 4,523,883
4,500,000 City of Detroit, Michigan, Water Supply System Revenue
and Revenue Refunding Bonds, Series 1993,
4.750%, 7/01/19 7/04 at 102 Aaa 3,851,550
3,000,000 Dexter Community Schools, Counties of Washtenaw and
Livingston, State of Michigan, 1993 School Building
and Site and Refunding Bonds (General Obligation
Unlimited Tax), 5.000%, 5/01/17 5/03 at 102 AA 2,687,280
2,000,000 Board of Control of Ferris State University, General
Revenue Bonds, Series 1993, 6.250%, 10/01/19 10/03 at 102 Aaa 2,069,560
6,750,000 The City of Grand Haven, Michigan, Electric System
Revenue Refunding Bonds, 1993 Series,
5.250%, 7/01/16 7/03 at 102 Aaa 6,371,595
4,000,000 City of Kalamazoo Hospital Finance Authority, Hospital
Revenue Refunding and Improvement Bonds (Bronson
Methodist Hospital), Series 1996, 5.750%, 5/15/16 5/06 at 102 Aaa 3,973,920
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Kent Hospital Finance Authority (Michigan),
Hospital Revenue Refunding Bonds (Butterworth
Hospital), Series 1993A, 5.100%, 1/15/07 No Opt. Call A1 $ 975,070
2,000,000 City of Lansing, Board of Water and Light, Ingham
and Easton Counties, State of Michigan, Water
Supply and Electric Utility System Revenue Bonds,
Series 1994A, 4.900%, 7/01/11 7/01 at 100 Aa 1,832,480
6,000,000 County of Monroe, Michigan, Pollution Control
Revenue Bonds (The Detroit Edison Company
Project), Series A-1994, 6.350%, 12/01/04
(Alternative Minimum Tax) No Opt. Call Aaa 6,533,220
County of Monroe, Michigan, Pollution Control
Revenue Bonds (The Detroit Edison Company
Project), Series CC-1992:
2,500,000 6.550%, 6/01/24 (Alternative Minimum Tax) 6/03 at 102 Aaa 2,611,250
1,500,000 6.550%, 9/01/24 (Alternative Minimum Tax) 9/03 at 103 Aaa 1,568,250
Mount Clemens Housing Corporation, Multi-Family
Housing Refunding Revenue Bonds, Series 1992A
(FHA Insured Mortgage Loan-Section 8 Assisted
Project):
1,000,000 6.600%, 6/01/13 6/03 at 102 AAA 1,040,570
1,500,000 6.600%, 6/01/22 6/03 at 102 AAA 1,539,150
1,130,000 Board of Trustees of Oakland University, Michigan,
General Revenue Bonds, Series 1995,
5.750%, 5/15/15 5/05 at 102 Aaa 1,131,243
1,000,000 Reeths-Puffer Schools, County of Muskegon, State of
Michigan, 1995 School Building and Site and
Refunding Bonds, 5.750%, 5/01/15 5/05 at 101 Aaa 1,000,300
3,615,000 Saginaw-Midland Municipal Water Supply Corporation,
State of Michigan, Water Supply System Revenue
Bonds (Limited Tax General Obligation) Series 1993,
5.250%, 9/01/16 9/02 at 101 1/2 A 3,358,480
2,650,000 Regents of the University of Michigan, Hospital
Revenue Bonds, Series 1990, 6.375%, 12/01/24 12/00 at 100 Aa 2,695,738
3,000,000 Regents of the University of Michigan, Hospital
Revenue Refunding Bonds, Series 1993A,
5.500%, 12/01/21 12/02 at 102 Aa 2,803,799
Charter County of Wayne, Michigan, Detroit
Metropolitan Wayne County Airport, Airport Revenue Bonds
(Detroit Metropolitan Wayne County Airport) Subordinated
Lien, Series 1993B:
1,000,000 4.750%, 12/01/02 (Alternative Minimum Tax) No Opt. Call Aaa 992,390
1,000,000 4.800%, 12/01/03 (Alternative Minimum Tax) No Opt. Call Aaa 987,300
1,000,000 Charter County of Wayne, Michigan, Airport Revenue
Bonds (Detroit Metropolitan Wayne County Airport),
Subordinate Lien, Series 1986, 8.000%, 12/01/14 12/96 at 102 Aaa 1,032,530
3,750,000 Board of Trustees of Western Michigan University,
General Revenue Bonds, Series 1993A,
5.500%, 7/15/16 7/03 at 102 Aaa 3,650,288
1,000,000 Western Townships Utilities Authority, Sewage
Disposal System Refunding Bonds, Series 1991,
6.500%, 1/01/10 1/02 at 100 AAA 1,059,420
5,625,000 Commonwealth of Puerto Rico, Public Improvement
Refunding Bonds, Series 1993 (General Obligation
Bonds), 5.375%, 7/01/06 No Opt. Call Aaa 5,794,762
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Commonwealth of Puerto Rico, Public Improvement
Bonds of 1995 (General Obligation Bonds),
5.750%, 7/01/24 7/05 at 101 1/2 Aaa $ 1,001,150
5,750,000 Puerto Rico Public Buildings Authority, Public
Education and Health Facilities Refunding Bonds,
Series M, Guaranteed by the Commonwealth of Puerto
Rico, 5.750%, 7/01/15 7/03 at 101 1/2 A 5,604,237
1,000,000 Puerto Rico Ports Authority, Special Facilities Revenue
Bonds, 1993 Series A (American Airlines, Inc. Project),
6.300%, 6/01/23 (Alternative Minimum Tax) 6/03 at 102 Baa3 1,005,400
$162,920,000 Total Investments - (cost $158,928,820) - 98.8% 162,682,150
=============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 500,000 Regents of The University of Michigan, Hospital Revenue
=============
Bonds, Series 1995A (Adjustable Rate Demand), Variable
Rate Demand Bonds, 3.750%, 12/01/27+ VMIG-1 500,000
Other Assets Less Liabilities - 0.9% 1,505,587
Net Assets - 100% $164,687,737
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 30 $ 85,562,830 52%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 16 44,152,109 27
PORTFOLIO OF A+ A1 5 13,886,670 9
INVESTMENTS A, A- A, A2, A3 6 18,075,141 11
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 1,005,400 1
TEMPORARY
INVESTMENTS):
TOTAL 58 $162,682,150 100%
<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.
+ 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.
</FN>
</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, State of Ohio,
Air Quality Development Refunding Revenue Bonds,
Series 1992 (Ashland Oil, Inc. Project), 6.850%, 4/01/10 4/01 at 102 Baa1 $ 2,316,263
4,000,000 Ohio Air Quality Development Authority, State of Ohio,
Collateralized Pollution Control Revenue Refunding
Bonds, Series 1992 (The Cleveland Electric Illuminating
Company Project), 8.000%, 12/01/13 6/02 at 103 Aaa 4,700,280
2,000,000 Ohio Air Quality Development Authority (JMG Funding
Limited Partnership Project), Alternative Minimum
Tax, 6.375%, 1/01/29 10/04 at 102 Aaa 2,075,520
270,000 Ohio Housing Finance Agency, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities
Program), 1988 Series A, Alternative Minimum Tax,
8.250%, 2/01/16 2/98 at 103 AAA 283,773
9,825,000 Ohio Housing Finance Agency, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities
Program), 1989 Series A, Alternative Minimum Tax,
7.650%, 3/01/29 9/99 at 102 AAA 10,305,050
660,000 Ohio Water Development Authority, State of Ohio, Water
Development Revenue Refunding Bonds, Refunding
and Improvement Series, 8.000%, 12/01/18
(Pre-refunded to 12/01/00) 12/00 at 100 AAA 701,527
1,000,000 Ohio Water Development Authority, State of Ohio, Water
Development Revenue Bonds, 1995 Fresh Water Series,
5.900%, 12/01/21 6/05 at 102 Aaa 1,003,480
1,500,000 State of Ohio (OPFC), Higher Education Capital Facilities
Bonds, Series II-1992A, 5.500%, 12/01/06 12/01 at 102 A+ 1,529,985
2,400,000 State of Ohio (Ohio Higher Educational Facility
Commission), Higher Educational Facility Mortgage
Revenue Bonds (University of Dayton 1992 Project),
6.600%, 12/01/17 12/03 at 102 Aaa 2,597,904
750,000 State of Ohio (Ohio Higher Educational Facility
Commission),Higher Educational Facility, Revenue
Bonds (John Carroll University Project),
5.600%, 10/01/13 10/03 at 102 A 728,610
2,850,000 State of Ohio (Ohio Higher Educational Facility
Commission), Higher Educational Facility Revenue
Bonds (Oberlin College Project), Series 1993,
5.375%, 10/01/15 10/03 at 102 AA 2,770,086
500,000 State of Ohio (Ohio Higher Educational Facility
Commission), Higher Educational Facility Revenue
Bonds (Kenyon College Project), 5.375%, 12/01/16 12/03 at 102 A+ 475,060
1,350,000 State of Ohio (Ohio Higher Educational Facility
Commission), Higher Educational Facility Revenue
Refunding Bonds (John Carroll University),
5.300%, 11/15/14 11/03 at 102 A 1,291,248
1,000,000 State of Ohio (Ohio Higher Educational Facility
Commission), Higher Educational Facility Revenue
Bonds (University of Dayton 1994 Project),
5.800%, 12/01/14 12/04 at 102 Aaa 1,002,610
1,000,000 State of Ohio (Ohio Higher Educational Facility
Commission), Higher Educational Facility Revenue
Bonds, Series 1992 (Case Western Reserve University
Project), 6.000%, 10/01/22 10/02 at 102 Aa 1,008,570
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,000,000 State of Ohio Department of Transportation, Certificates
of Participation (Richenbacker Port Authority
Improvements), Alternative Minimum Tax,
6.125%, 4/15/15 10/97 at 105 A+ $ 2,894,910
1,000,000 State of Ohio (Ohio Building Authority), State Facilities
Bonds (Juvenile Correctional Building Fund Projects),
1992 Series B, 6.000%, 10/01/12 10/02 at 102 A+ 1,013,090
3,000,000 State of Ohio (Ohio Building Authority), State Facilities
Bonds (Adult Correctional Building Fund Projects),
1993 Series A, 6.125%, 10/01/12 10/03 at 102 A+ 3,080,070
1,000,000 State of Ohio, Full Faith and Credit, General Obligation
Infrastructure Improvement Bonds, Series 1992,
0.000%, 9/01/99 No Opt. Call Aa 869,950
4,000,000 State of Ohio, Ohio Air Quality Development Authority,
Air Quality Development Revenue Refunding Bonds
(JMG Funding, Limited Partnership Project), Series
1994, Alternative Minimum Tax, 6.375%, 4/01/29 10/04 at 102 Aaa 4,151,040
5,035,000 State of Ohio, Turnpike Revenue Bonds, 1996 Series A,
Issued by the Ohio Turnpike Commission,
5.500%, 2/15/26 2/06 at 102 Aaa 4,895,279
1,575,000 The Ohio State University (A State University of Ohio),
General Receipts Bonds, Series 1992 A1,
5.875%, 12/01/12 12/02 at 102 AA- 1,586,198
500,000 Adams County/Ohio Valley School District, Counties of
Adams and Highland, Ohio, School Improvement
Unlimited Tax General Obligation Bonds, Series 1995,
5.250%, 12/01/21 12/05 at 102 Aaa 472,225
1,830,000 Akron, Bath and Copley Joint Township Hospital District,
Ohio, Hospital Facilities Revenue Bonds, Series 1993A
(Summa Health System Project), 5.500%, 11/15/13 11/03 at 102 A 1,735,023
1,500,000 City of Akron, Ohio, Waterworks System Mortgage
Revenue Improvement Bonds, Series 1991,
6.550%, 3/01/12 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 1,645,950
2,000,000 County of Ashtabula, Ohio, Industrial Development
Refunding Revenue Bonds, 1992 Series A (Ashland
Oil, Inc. Project), 6.900%, 5/01/10 5/02 at 102 Baa1 2,094,880
2,000,000 City of Barberton, Ohio Hospital Facilities Revenue
Bonds, Series 1992 (The Barberton Citizens Hospital
Company Project), 7.250%, 1/01/12 1/02 at 102 A 2,142,580
Berea City School District, Ohio, School Improvement
Bonds, Series 1993 (General Obligation Unlimited Tax
Bonds):
650,000 7.500%, 12/15/06 12/03 at 102 Aaa 764,998
680,000 7.450%, 12/15/07 12/03 at 102 Aaa 798,218
825,000 Bowling Green State University, Ohio, General Receipts
Bonds, Series 1991, 6.700%, 6/01/07 6/01 at 102 A 889,169
1,750,000 Brecksville-Broadview Heights City School District, Ohio,
School Improvement Bonds, Series 1996 (General
Obligation Unlimited Tax Bonds), 6.500%, 12/01/16 12/06 at 102 Aaa 1,870,225
1,000,000 Buckeye Local School District General Obligation,
5.625%, 12/01/11 12/03 at 102 Aaa 1,007,490
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 County of Butler, Ohio, Hospital Facilities Revenue
Refunding and Improvement Bonds, Series 1991 (Fort
Hamilton-Hughes Memorial Hospital Center),
7.500%, 1/01/10 1/02 at 102 Baa $ 1,063,120
535,000 City of Hamilton and County of Butler, Hospital Facilities
Revenue Refunding, Fort Hamilton-Hughes Memorial
Hospital Center, 7.250%, 1/01/01 No Opt. Call Baa 550,151
City of Cambridge, Ohio, Hospital Revenue Refunding
Bonds, Series 1991 (Guernsey Memorial Hospital Project):
1,680,000 8.000%, 12/01/06 12/01 at 102 BBB 1,812,552
750,000 8.000%, 12/01/11 12/01 at 102 BBB 802,178
2,000,000 County of Carroll, Ohio, Hospital Improvement Revenue
Bonds, Series 1991 (Timken Mercy Medical Center),
7.125%, 12/01/18 (Pre-refunded to 12/01/01) 12/01 at 102 AAA 2,260,040
2,675,000 County of Clermont, Ohio, Hospital Facilities Revenue
Refunding Bonds, Series 1993 A (Mercy Health System),
5.875%, 1/01/15 1/03 at 102 Aaa 2,678,371
1,385,000 County of Clermont, Ohio, Mortgage Revenue Bonds,
Series 1994 (GNMA Collateralized-S.E.M. Villa II
Project), Series 1994-A, 5.950%, 2/20/30 8/03 at 103 Aaa 1,353,491
2,500,000 County of Clermont, Ohio, Waterworks System Revenue
Bonds, Series 1991, Clermont County Sewer District,
6.625%, 12/01/14 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 2,772,925
1,000,000 City of Cleveland, Ohio, Various Purpose General
Obligation Bonds, Series 1991A, 6.750%, 10/01/11
(Pre-refunded to 10/01/01) 10/01 at 102 Aaa 1,111,890
2,075,000 City of Cleveland, Ohio, Airport System Revenue Bonds,
1990 Series A, 7.400%, 1/01/20 (Alternative
Minimum Tax) 1/00 at 102 Aaa 2,245,150
3,000,000 City of Cleveland, Ohio, Public Power System
Improvement First Mortgage Revenue Bonds, Series
1991B, 7.000%, 11/15/17 11/01 at 102 Aaa 3,319,530
2,000,000 City of Cleveland, Ohio, Public Power System First
Mortgage Revenue Bonds, Series 1994A,
7.000%, 11/15/24 11/04 at 102 Aaa 2,250,680
1,000,000 City of Cleveland, Ohio, Regional Sewer District,
6.750%, 4/01/07 (Pre-refunded to 5/15/04) 5/04 at 100 Aaa 1,120,900
1,000,000 Cleveland State University (AState University of Ohio),
General Receipts Bonds, Series 1993, 5.500%, 6/01/13 6/03 at 102 Aaa 987,500
City of Cleveland, Ohio, Waterworks Improvement First
Mortgage Revenue Refunding Bonds, Series F, 1992B:
2,965,000 6.500%, 1/01/11 1/02 at 102 Aaa 3,136,940
3,720,000 6.250%, 1/01/16 1/02 at 102 Aaa 3,882,080
1,575,000 City of Cleveland, Ohio, Waterworks Improvement First
Mortgage Revenue Bonds, Series F, 1992 A,
6.500%, 1/01/21 (Pre-refunded to 1/01/02) 1/02 at 102 Aaa 1,733,209
1,000,000 City of Cleveland, Ohio, Waterworks Improvement First
Mortgage Refunding Revenue Bonds, Series G, 1993,
5.500%, 1/01/21 No Opt. Call Aaa 975,680
4,350,000 City of Cleveland, Waterworks Improvement and
Refunding Revenue Bonds, 1st Mortgage Series 1996-H,
5.750%, 1/01/26 1/06 at 102 Aaa 4,358,787
35,000 City of Cleveland, Ohio, First Mortgage Revenue
Refunding Bonds, Series F, 1992-B, 6.500%, 1/01/11
(Pre-refunded to 1/01/02) 1/02 at 102 Aaa 38,516
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 City of Columbus, Ohio, General Obligation Refunding
Bonds, Series 1992B, 6.500%, 1/01/10 1/02 at 102 Aaa $ 2,151,060
1,950,000 City School District of Columbus, Franklin County, Ohio,
School Building Renovation and Improvement Bonds,
Series 1992 (General, Obligation-Unlimited Tax),
6.650%, 12/01/12 (Pre-refunded to 12/01/02) 12/02 at 102 Aaa 2,183,162
Columbus Municipal Airport Authority, Airport
Improvement Revenue Bonds, Series 1994A (Port
Columbus International Airport Project), Alternative
Minimum Tax:
830,000 5.950%, 1/01/08 1/04 at 102 Aaa 850,991
1,000,000 6.000%, 1/01/14 1/04 at 102 Aaa 1,008,880
2,500,000 City of Columbus, Ohio, Sewerage System Revenue
Refunding Bonds, Series 1992, 6.250%, 6/01/08 6/02 at 102 AA- 2,639,775
3,000,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds,
Series 1991 (Meridia Health System), 7.000%, 8/15/23 8/01 at 102 A1 3,224,100
1,500,000 County of Cuyahoga, Ohio, Hospital Improvement
Revenue Bonds, Series 1992 (University Hospitals
Health System, Inc. Project), 6.500%, 1/15/19 1/02 at 102 Aa 1,542,225
1,170,000 County of Cuyahoga, Ohio, Hospital Facilities Revenue
Bonds, Series 1993, Health Cleveland, Inc. (Fairview
General Hospital Project), 6.300%, 8/15/15 2/03 at 102 A1 1,178,787
3,200,000 City of Dayton, Ohio, Airport Revenue Refunding Bonds,
Series 1992 (James M. Cox Dayton International Airport),
5.800%, 12/01/11 12/02 at 101 1/2 Aaa 3,235,712
2,000,000 Dublin City School District, Franklin, Delaware and
Union Counties, Ohio, Various Purpose School Building
Construction and Improvement Bonds (General
Obligation-Unlimited Tax), 6.200%, 12/01/19 12/02 at 102 Aaa 2,066,080
1,300,000 County of Franklin, Ohio, Refunding Bonds, Series 1993
(Limited Tax General Obligation Bonds),
5.375%, 12/01/20 12/08 at 102 Aaa 1,246,791
2,200,000 The Franklin County Convention Facilities Authority
(Ohio), Tax and Lease Revenue Anticipation Refunding
Bonds, Series 1992, 5.850%, 12/01/19 12/02 at 102 Aaa 2,187,328
3,450,000 County of Franklin, Ohio, First Mortgage Revenue,
Series 1979 (OCLC Inc. Project), 7.500%, 6/01/09 No Opt. Call Aaa 3,847,095
1,365,000 County of Franklin, Ohio, Health Care Facilities Revenue
Bonds, Series 1993 (Ohio Presbyterian Retirement
Services), 6.500%, 7/01/23 7/03 at 102 N/R 1,276,452
1,500,000 County of Franklin, Ohio, Hospital Revenue Refunding
and Improvement Bonds, 1992 Series A (The Children's
Hospital Project), 6.600%, 5/01/13 11/02 at 102 Aa 1,588,215
3,000,000 County of Franklin, Ohio, Hospital Facilities Refunding
Revenue Bonds, Series 1993A (Riverside United
Methodist Hospital Project), 5.750%, 5/15/20 5/03 at 102 Aa 2,925,720
County of Franklin, Ohio, Hospital Refunding and
Improvement Revenue Bonds, 1996 Series A (The
Children's Hospital Project):
1,000,000 5.750%, 11/01/20 11/06 at 101 Aa 988,940
1,500,000 5.875%, 11/01/25 11/06 at 101 Aa 1,497,765
990,000 County of Franklin, Ohio, Multifamily Housing Mortgage
Revenue Bonds, Series 1994A (FHA Insured Mortgage
Loan-Hamilton Creek Apartments Project), Alternative
Minimum Tax, 5.550%, 7/01/24 1/05 at 103 Aa 914,869
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 6,180,000 County of Franklin, Ohio, Mortgage Revenue Bonds,
Series 1992A (FHA Insured Mortgage Loan -
Kensington Place Project), 6.750%, 1/01/34 1/02 at 103 Aa $ 6,338,826
500,000 County of Franklin, Ohio, Revenue Bonds, Series 1993
(Oclc Online Computer Library Center, Incorporated
Project), 6.000%, 4/15/13 4/03 at 100 N/R 477,875
3,250,000 City of Garfield Heights, Ohio, Hospital Improvement
and Refunding Revenue Bonds, Series 1992B
(Marymount Hospital Project), 6.650%, 11/15/11 11/02 at 102 A 3,387,085
1,250,000 City of Hamilton, Ohio, Electric System Mortgage
Revenue Bonds, 1992 Series B, 6.300%, 10/15/25 10/02 at 102 Aaa 1,298,063
1,000,000 Hamilton County, Ohio, Sewer System Improvement and
Refunding Revenue Bonds, 1991 Series A (The
Metropolitan Sewer District of Greater Cincinnati),
6.700%, 12/01/13 (Pre-refunded to 6/01/01) 6/01 at 102 AAA 1,104,630
2,500,000 Indian Lake Local School District, Logan and Auglaize
Counties, Ohio, School Facilities Construction and
Improvement Bonds (General Obligation-Unlimited
Tax), 5.375%, 12/01/23 12/06 at 101 Aaa 2,399,600
3,000,000 Kent State University (AState University of Ohio),
General Receipts Bonds, Series 1992, 6.500%, 5/01/22 5/02 at 102 Aaa 3,205,890
1,000,000 City of Lakewood, Ohio, Various Purpose General
Obligation Bonds, Series 1992 (Limited Tax Obligation),
6.500%, 12/01/12 12/02 at 102 Aa 1,091,400
2,100,000 Lakota Local School District, County of Butler, Ohio,
School Improvement Unlimited Tax General Obligation
Bonds, Series 1994, 6.250%, 12/01/14 12/05 at 100 Aaa 2,192,547
1,000,000 County of Marion, Ohio, Health Care Facilities Refunding
and Improvement Revenue Bonds, Series 1993 (United
Church Homes, Inc. Project), 6.300%, 11/15/15 11/03 at 102 BBB- 956,920
1,300,000 Marysville (Ohio), Exempted Village School District,
General Obligation School Improvement Bonds,
5.750%, 12/01/23 12/05 at 101 Aaa 1,302,392
1,400,000 City of Middleburg Heights, Ohio, Hospital
Improvement Revenue Bonds, Series 1991 (Southwest
General Hospital Project), 6.750%, 8/15/21
(Pre-refunded to 8/15/01) 8/01 at 102 AAA 1,547,896
1,800,000 Montgomery County, Ohio, Sewer System Revenue
Refunding Bonds, Greater Moraine Beavercreek Sewer
District, Series 1993, 5.600%, 9/01/11 9/02 at 102 Aaa 1,809,306
1,500,000 County of Montgomery, Ohio, Hospital Facilities Revenue
Refunding and Improvement Bonds, Series 1996
(Kettering Medical Center), 5.625%, 4/01/16 4/06 at 102 Aaa 1,470,165
1,000,000 County of Montgomery, Ohio, Water Revenue Bonds,
Greater Moraine-Beavercreek Sewer District Series 1992,
6.250%, 11/15/17 11/02 at 102 Aaa 1,040,180
2,500,000 City of Mount Vernon, Ohio, Hospital Refunding Revenue
Bonds, Series 1986A (Knox Community Hospital),
7.875%, 6/01/12 12/96 at 103 N/R 2,577,225
1,000,000 City of Newark, Ohio, Water System Improvement Bonds
(Limited Tax General Obligation), 6.000%, 12/01/18 12/03 at 102 Aaa 1,015,960
North Canton City School District, Ohio, School
Improvement Bonds, Series 1994 (General Obligation
Unlimited Tax):
650,000 9.750%, 12/01/03 No Opt. Call Aaa 839,982
715,000 9.700%, 12/01/04 No Opt. Call Aaa 939,589
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 Northeast Ohio Regional Sewer District, Wastewater
Improvement Revenue Refunding Bonds, Series 1995,
5.600%, 11/15/16 11/05 at 101 Aaa $ 1,996,200
1,250,000 City of Oxford, Ohio, Water Supply System Mortgage
Revenue, Series 1992 Refunding Bonds,
6.000%, 12/01/14 12/02 at 102 Aaa 1,289,963
1,000,000 Pickerington Local School District, Fairfield and
Franklin Counties, Ohio, School Building Construction
and Improvement Bonds (General Obligation-Unlimited
Tax), 5.375%, 12/01/19 12/04 at 102 Aaa 955,160
1,000,000 Revere Local School District, Ohio, School Improvement
Bonds, Series 1993 (General Obligation Unlimited Tax
Bonds), 6.000%, 12/01/16 12/03 at 102 Aaa 1,020,300
1,400,000 Reynoldsburg City School District, Franklin, Fairfield
and Licking Counties, Ohio, General Obligation Bonds
(Unlimited Tax), For School Building Construction and
Improvement, 6.550%, 12/01/17 12/02 at 102 Aaa 1,511,118
1,000,000 Solon City School District, Ohio, School Improvement
Bonds, Series 1990, General Obligation Unlimited Tax
Bonds, 7.150%, 12/01/13 (Pre-refunded to 12/01/01) 12/01 at 102 N/R 1,128,650
2,000,000 Southwest Regional Water District (Ohio), Waterworks
System Revenue Bonds, Series 1995, 6.000%, 12/01/20 12/05 at 101 Aaa 2,040,700
3,895,000 The Student Loan Funding Corporation, Cincinnati,
Ohio, Student Loan Subordinated Revenue Refunding
Bonds, Series 1992 D, Alternative Minimum Tax,
6.600%, 7/01/05 7/02 at 100 A 3,975,743
1,700,000 The Student Loan Funding Corporation, Cincinnati, Ohio,
Student Loan Senior Subordinated Revenue Bonds,
Series 1993 A, Alternative Minimum Tax,
6.150%, 8/01/10 8/03 at 100 A1 1,694,475
1,000,000 Sylvania City School District, General Obligation
(Unlimited Tax), Series 1995, 5.800%, 12/01/15 12/05 at 101 Aaa 1,001,830
1,135,000 City of Toledo, Ohio, General Obligation (Limited Tax),
Various Purpose Improvement Bonds, Series 1994,
7.000%, 12/01/03 No Opt. Call Aaa 1,282,119
3,400,000 City of Toledo, Ohio, General Obligation (Limited Tax),
Various Purpose Improvement Bonds, Series 1995,
5.700%, 12/01/10 12/05 at 102 Aaa 3,449,334
750,000 County of Tuscarawas, Ohio, Hospital Facilities Revenue
Bonds, Series 1993A (Union Hospital Project),
6.500%, 10/01/21 10/03 at 102 Baa 716,032
3,500,000 University of Cincinnati, General Receipts Bonds,
Series O, 6.300%, 6/01/12 12/02 at 102 AA- 3,712,450
1,000,000 The University of Toledo (A State University of Ohio),
General Receipts Bonds, Series 1992B,
5.900%, 6/01/20 12/02 at 102 Aaa 994,210
1,000,000 Upper Arlington City School District, General
Obligation Bonds, Series 1996, 5.250%, 12/01/22 12/06 at 101 Aaa 943,490
1,000,000 City of Washington, Ohio, Water System Mortgage
Revenue Bonds, Series 1993, 5.375%, 12/01/19 12/03 at 101 Aaa 941,680
2,000,000 Board of Education, Wayne Local School District, County
of Warren, Ohio, School Improvement Bonds, Series
1996 (Unlimited Tax General Obligation),
6.100%, 12/01/24 12/06 at 102 Aaa 2,075,240
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,000,000 Board of Education, West Clermont Local School District,
County of Clermont, Ohio, School Improvement Bonds,
Series 1995 (Unlimited Tax General Obligation),
6.000%, 12/01/18 12/05 at 100 Aaa $ 3,058,740
1,820,000 Worthington City School District, Franklin County,
Ohio, General Obligation Refunding Bonds (Unlimited
Tax), 6.375%, 12/01/12 6/02 at 102 Aaa 1,921,846
1,500,000 Commonwealth of Puerto Rico, Public Improvement
Refunding Bonds, Series 1987 (General Obligation
Bonds), 3.000%, 7/01/06 7/97 at 100 A 1,225,814
2,500,000 Commonwealth of Puerto Rico Improvement Bonds of
1992 (General Obligation Bonds), 6.600%, 7/01/13
(Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 2,784,550
2,000,000 Commonwealth of Puerto Rico, Public Improvement
Bonds of 1996 (General Obligation Bonds),
5.400%, 7/01/25 7/06 at 101 1/2 A 1,850,240
1,300,000 Puerto Rico Public Buildings Authority, Public Education
and Health Facilities Refunding Bonds, Series M,
Guaranteed by the Commonwealth of Puerto Rico,
5.750%, 7/01/15 7/03 at 101 1/2 A 1,267,044
1,000,000 Puerto Rico Industrial, Medical and Environmental
Pollution Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, 1983 Series
A (Motorola, Inc. Project), 6.750%, 1/01/14 1/02 at 103 AA- 1,095,020
$211,195,000 Total Investments - (cost $211,031,860) - 98.4% 218,636,377
=============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.5%
$ 900,000 Cuyahoga County, University Hospital of Cleveland,
Series 1985, Variable Rate Demand Bonds,
3.700%, 1/01/16+ VMIG-1 900,000
200,000 Ohio Air Quality Development Authority, State of Ohio,
Air Quality Development Revenue Refunding Bonds
(The Cincinnati Gas & Electric Company Project),
1995 Series A, Variable Rate Demand Bonds,
3.750%, 9/01/30+ VMIG-1 200,000
$ 1,100,000 Total Temporary Investments - 0.5% 1,100,000
=============
Other Assets Less Liabilities - 1.1% 2,414,433
Net Assets - 100% $222,150,810
==============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 70 $138,711,037 63%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 30,570,009 14
PORTFOLIO OF A+ A1 8 15,090,477 7
INVESTMENTS A, A- A, A2, A3 10 18,492,556 9
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 8 10,312,096 5
TEMPORARY Non-rated Non-rated 4 5,460,202 2
INVESTMENTS):
TOTAL 115 $218,636,377 100%
<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.
+ 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.
</FN>
</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>
$ 4,490,000 Board of Regents of Texas Southern University,
Consolidated Revenue Refunding Bonds, Series 1993-A,
5.750%, 8/01/18 8/03 at 101 Aaa $ 4,494,670
3,070,000 State of Texas, Veterans' Bonds, Series 1985, General
Obligation Bonds, 8.300%, 12/01/16 (Pre-refunded
to 12/01/99) 12/99 at 100 AAA 3,439,689
4,790,000 State of Texas, Veteran's Housing Assistance Bonds,
Series 1993, General Obligation Bonds,
6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 Aa 4,925,892
2,000,000 State of Texas, Veteran's Land Bonds, Series 1994, General
Obligation Bonds, 6.400%, 12/01/24 (Alternative
Minimum Tax) 12/04 at 100 Aa 2,051,000
1,500,000 State of Texas, Veteran's Land Bonds, Series 1989, General
Obligation Bonds, 7.625%, 12/01/13 (Alternative
Minimum Tax) 6/99 at 102 Aa 1,627,710
1,500,000 Texas Health Facilities Development Corporation,
Hospital Revenue Bonds (All Saints Episcopal Hospitals
of Fort Worth Project), Series 1993B, 6.250%, 8/15/22 8/03 at 102 Aaa 1,529,490
1,850,000 Texas Housing Agency, Single Family Mortgage Revenue
Bonds, 1986 Series A, 8.250%, 3/01/17 9/96 at 102 Aa 1,864,319
625,000 Texas Municipal Power Agency, Refunding Revenue Bonds,
Series 1992, 5.750%, 9/01/12 (Pre-refunded to 9/01/02) 9/02 at 100 Aaa 658,500
2,015,000 Texas Turnpike Authority, Dallas North Tollway Revenue
Bonds, Series 1989, 6.000%, 1/01/20 1/98 at 100 A 2,017,438
3,500,000 Abilene Health Facilities Development Corporation,
Hospital Revenue Refunding and Improvement Bonds
(Hendrick Medical Center Project), Series 1995C,
6.150%, 9/01/25 9/05 at 102 Aaa 3,588,830
345,000 Abilene Housing Development Corporation, First Lien
Revenue Bonds, Series 1978, 7.000%, 7/01/08 No Opt. Call N/R 361,757
Alamo Community College District, General Obligation
Bonds, Series 1992:
1,000,000 5.000%, 2/15/10 2/00 at 100 Aa 949,470
1,000,000 5.000%, 2/15/11 2/00 at 100 Aa 942,250
5,295,000 Alliance Airport Authority, Inc., Special Facilities
Revenue Bonds, Series 1990 (American Airlines, Inc.
Project), 7.500%, 12/01/29 (Alternative Minimum Tax) 12/00 at 102 Baa2 5,609,894
4,500,000 Amarillo Health Facilities Corporation Hospital Revenue
Bonds (High Plains Baptist Hospital Project), Series
1992C, 6.500%, 1/01/07 1/02 at 102 Aaa 4,886,595
3,500,000 City of Austin, Texas, Combined Utility Systems Revenue
Refunding Bonds, Series 1991, 6.750%, 5/15/12 5/01 at 102 A 3,691,030
2,500,000 City of Austin, Texas, Combined Utility Systems Revenue
Refunding Bonds, Series 1992, 5.750%, 11/15/16 11/02 at 100 Aaa 2,465,900
2,085,000 Baytown Housing Finance Corporation, Single Family
Mortgage Revenue, Refunding Bonds, Series 1992-A,
8.500%, 9/01/11 9/02 at 103 A1 2,256,137
1,000,000 The City of Beaumont, Texas, Public Improvement Bonds,
Series 1992, 6.250%, 3/01/10 (Pre-refunded to 3/01/02) 3/02 at 100 Aaa 1,075,040
1,000,000 Bexar Metropolitan Water District, Waterworks System
Revenue Bonds, Series 1994, 5.000%, 5/01/19
(Pre-refunded to 5/01/15) 5/15 at 100 Aaa 911,860
1,225,000 Brazos River Authority (Texas), Collateralized
Pollution Control Revenue Bonds (Texas Utilities
Electric Company Project), Series 1990A,
8.125%, 2/01/20 (Alternative Minimum Tax) 2/00 at 102 BBB 1,340,236
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,110,000 Brazos River Authority (Texas), Collateralized
Pollution Control Revenue Bonds (Texas Utilities
Electric Company Project), Series 1987A,
9.875%, 10/01/17 (Alternative Minimum Tax) 10/97 at 102 BBB $ 2,263,735
2,000,000 Brazos River Authority (Texas), Collateralized
Pollution Control Revenue Bonds (Texas Utilities
Electric Company Project), Series 1994A,
7.875%, 3/01/21 (Alternative Minimum Tax) 3/01 at 102 BBB 2,197,260
1,500,000 Brazos River Authority (Texas), Collateralized
Pollution, Control Revenue Refunding Bonds (Texas
Utilities Electric Company Project), Series 1992,
6.500%, 12/01/27 (Alternative Minimum Tax) 12/02 at 102 Aaa 1,557,930
5,500,000 Brazos River Authority (Texas), Collateralized
Revenue Refunding Bonds (Houston Lighting and
Power Company Project), Series 1988D,
7.750%, 10/01/15 10/98 at 102 A 5,886,430
1,200,000 Brazos River Authority (Texas), Collateralized
Revenue Refunding Bonds (Houston Lighting and
Power Company Project), Series 1993,
5.600%, 12/01/17 12/03 at 102 Aaa 1,174,320
2,300,000 Brazos Higher Education Authority, Inc., Student
Loan Revenue Refunding Bonds, Series 1992-A,
6.875%, 9/01/04 (Alternative Minimum Tax) 3/02 at 102 A 2,454,307
1,070,000 Brazos Higher Education Authority, Inc., Student
Loan Revenue Refunding Bonds, Series 1992C-1,
6.650%, 11/01/04 (Alternative Minimum Tax) No Opt. Call Aa 1,131,718
250,000 Brazos Higher Education Authority, Inc., Student
Loan Revenue Refunding Bonds, Subordinate
Series 1993A-2, 6.800%, 12/01/04 (Alternative
Minimum Tax) No Opt. Call A 266,990
1,000,000 Brazosport Water Authority (Brazoria County, Texas),
Water Supply Revenue and Refunding Bonds,
Series 1993, 5.500%, 9/01/18 9/03 at 100 Aaa 955,070
2,000,000 City of Brownsville, Texas, General Obligation
Refunding Bonds, Series 1991, 6.750%, 2/15/12
(Pre-refunded to 2/15/01) 2/01 at 100 Aaa 2,175,580
3,500,000 City of Brownsville, Texas Utilities System Priority
Revenue Bonds, Series 1990, 6.500%, 9/01/17
(Pre-refunded to 9/01/00) 9/00 at 102 Aaa 3,814,615
4,035,000 City of Bryan, Texas (Brazos County), Lease Revenue
Bonds (Blinn College Project), Series 1995,
5.300% 10/01/16 10/05 at 100 Aaa 3,831,071
2,500,000 Burleson Independent School District (Johnson and
Tarrant Counties, Texas), Unlimited Tax Refunding
Bonds, Series 1995, 5.375%, 8/01/19 8/06 at 100 Aaa 2,385,825
1,000,000 Caddo Mills Independent School District (Hunt
County, Texas), Unlimited Tax School Building and
Refunding Bonds, Series 1995, 6.375%, 8/15/25 2/05 at 100 AAA 1,048,200
1,400,000 Coastal Bend Health Facilities Development Corporation,
Incarnate Word Health Services Revenue Bonds, Series
1993-A, 6.000%, 11/15/22 11/02 at 102 Aaa 1,403,920
2,500,000 Conroe Independent School District, Unlimited Tax
Schoolhouse and Refunding Bonds, Series 1993,
5.000%, 2/01/18 2/04 at 100 Aaa 2,257,450
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 4,130,000 Coppell Independent School District (Dallas County,
Texas), Unlimited Tax School Building and Refunding
Bonds, Series 1992, 0.000%, 8/15/14 8/09 at 75 11/32 Aaa $ 1,227,601
City of Corpus Christi, Texas, General Improvement and
Refunding Bonds, Series 1992:
1,975,000 6.700%, 3/01/08 (Pre-refunded to 3/01/02) 3/02 at 100 Aaa 2,164,778
1,475,000 6.700%, 3/01/08 3/02 at 100 Aaa 1,598,384
5,020,000 Dallas-Fort Worth International Airport, Facility
Improvement Corporation, United Parcel Service, Inc.
Revenue Bonds, Series 1992, 6.600%, 5/01/32
(Alternative Minimum Tax) 5/02 at 102 Aaa 5,245,599
1,500,000 City of Dallas, Texas (Dallas, Denton and Collin Counties),
Combination Tax and Surplus Revenue, Certificates of
Obligation, Series 1992, 6.250%, 1/01/20 1/02 at 100 AAA 1,536,840
1,000,000 City of Dallas, Texas (Dallas County), Civic Center
Convention Complex, Senior Lien Revenue Bonds,
1985 Series, 8.000%, 1/01/09 1/97 at 100 A 1,016,310
2,130,000 City of Dallas, Texas (Dallas, Denton and Collin Counties),
Waterworks and Sewer System Revenue Refunding and
Improvement Bonds, Series 1995, 4.500%, 4/01/14 4/02 at 101 1/2 Aa 1,800,170
1,740,000 El Paso Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds, Series 1991A,
8.750%, 10/01/11 4/01 at 103 A 1,873,406
2,800,000 City of Ennis, Texas (Ennis County), General Obligation
Refunding and Improvement Bonds, Series 1992,
6.500%, 8/01/13 8/02 at 100 Aaa 2,967,104
1,185,000 Fort Bend County Levee Improvement District No. 11
(A Political Subdivision of the State of Texas, located
within Fort Bend County), Unlimited Tax Levee
Improvement Bonds, Series 1994, 6.900%, 9/01/17 9/04 at 100 Aaa 1,301,331
3,400,000 Frisco Independent School District (Collin and Denton
Counties, Texas), Unlimited Tax School Building and
Refunding Bonds, Series 1994, 5.400%, 8/15/23 8/04 at 100 Aaa 3,222,044
1,450,000 Industrial Development Corporation of The City of
Galveston, Sales Tax Revenue Bonds, Series 1995,
5.750%, 9/01/15 9/05 at 100 Aaa 1,430,918
1,240,000 City of Galveston Property Finance Authority, Inc., Single
Family Mortgage Revenue Bonds, Series 1991A,
8.500%, 9/01/11 9/01 at 103 A 1,338,307
1,000,000 City of Georgetown Higher Education, Finance
Corporation, Higher Education Revenue Bonds, Series
1994 (Southwestern University Project),
6.300%, 2/15/14 2/04 at 100 A1 1,023,720
3,000,000 Guadalupe-Blanco River Authority, Sewage and Solid
Waste Disposal Facility Bonds (E. I. du Pont de Nemours
and Company Project), Series 1996, 6.400%, 4/01/26
(Alternative Minimum Tax) 4/06 at 102 AA- 3,072,030
320,000 Harris County, Texas, Toll Road Senior Lien, Revenue
Refunding Bonds, Series 1992B, 6.625%, 8/15/17 8/97 at 102 Aaa 334,349
2,000,000 Harris County, Texas, Toll Road Unlimited Tax and
Subordinate Lien, Revenue Refunding Bonds, Series
1992A, 6.500%, 8/15/15 8/02 at 102 AA+ 2,119,820
5,500,000 Harris County, Texas, Toll Road Senior Lien, Revenue
Refunding Bonds, Series 1994, 5.375%, 8/15/20 8/04 at 102 Aaa 5,215,815
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Harris County, Texas, Toll Road Senior Lien, Revenue
Refunding Bonds, Series 1992A:
$ 1,780,000 6.500%, 8/15/17 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa $ 1,973,112
320,000 6.500%, 8/15/17 8/02 at 102 Aaa 339,171
1,680,000 Harris County Toll Road Senior Lien, 6.625%, 8/15/17
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 1,760,388
4,000,000 Harris County Health Facilities Development Corporation,
Hospital Revenue Bonds (Texas Children's Hospital
Project), Series 1989A, 7.000%, 10/01/19
(Pre-refunded to 10/01/99) 10/99 at 102 Aaa 4,374,280
6,110,000 Harris County Health Facilities Development Corporation
(Texas), Hospital Revenue Bonds (Memorial Hospital
System Project), Series 1992, 7.125%, 6/01/15 6/02 at 102 A 6,553,403
3,300,000 The Harrison County Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds, Series 1991,
8.875%, 12/01/11 12/01 at 103 A 3,487,968
1,000,000 Houston Airport System Alternative Minimum Tax,
8.000%, 7/01/08 (Alternative Minimum Tax) 7/98 at 102 1/2 A 1,075,050
5,000,000 Houston Airport System Subordinate Lien,
6.750%, 7/01/21 (Alternative Minimum Tax) 7/01 at 102 Aaa 5,303,450
1,850,000 Houston Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds, Series 1993A,
5.950%, 12/01/10 6/03 at 102 Aaa 1,863,709
4,000,000 City of Houston, Texas, Water and Sewer System, Junior
Lien Revenue Refunding Bonds, Series 1991C,
6.375%, 12/01/17 12/01 at 102 Aaa 4,165,680
1,000,000 City of Houston, Texas, Water and Sewer System, Prior
Lien Revenue Refunding Bonds, Series 1992B,
6.375%, 12/01/14 12/02 at 102 A 1,031,150
800,000 City of Laredo, Texas (Webb County), Combination Tax
and Waterworks System, Revenue Certificates of
Obligation, Series 1994, 5.625%, 8/15/11 8/04 at 100 Aaa 803,312
1,125,000 Laredo International Toll Bridge System Revenue
Refunding Bonds, Series 1996, 5.700%, 10/01/10 10/06 at 100 Aaa 1,141,110
190,000 Lower Colorado River Authority, Junior Lien Refunding
Revenue Bonds, Fourth Supplemental Series,
5.625%, 1/01/17 (Pre-refunded to 1/01/15) 1/15 at 100 Aaa 189,343
1,850,000 Lubbock Health Facilities Development Corporation,
Hospital Revenue Bonds (Methodist Hospital, Lubbock,
Texas Project), 5.500%, 12/01/14 12/03 at 102 Aaa 1,789,727
1,500,000 Matagorda County Navigation District Number One
(Texas), Pollution Control Revenue Refunding Bonds
(Central Power and Light Company Project), Series 1993
6.000%, 7/01/28 7/03 at 102 A- 1,466,970
1,800,000 Matagorda County, Navigation District Number One
(Texas), Collateralized Pollution Control Revenue Bonds
(Houston Lighting and Power Company Project), Series
1989A, 7.875%, 2/01/19 (Alternative Minimum Tax) 2/98 at 102 A 1,905,714
5,750,000 Midland County Hospital District, Hospital Revenue
Bonds, Series 1992, 0.000%, 6/01/11 No Opt. Call BBB 2,150,960
2,500,000 North Texas Higher Educational Authority, Inc. Student
Loan Revenue Bonds, Series 1993C, 6.100%, 4/01/08
(Alternative Minimum Tax) 4/03 at 102 Aa 2,522,325
1,500,000 North Texas Municipal Water District, Regional Solid
Waste Disposal System, Refunding and Improvement
Bonds, Series 1993, 5.250%, 9/01/12 9/03 at 100 Aaa 1,445,505
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,165,000 Port Arthur Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds, Series 1992,
8.700%, 3/01/12 9/02 at 103 A $ 1,257,652
4,500,000 Port of Corpus Christi Authority of Nueces County (Texas),
Pollution Control Revenue Bonds (Hoechst Celanese
Corporation), Series 1992, 6.875%, 4/01/17
(Alternative Minimum Tax) 4/02 at 102 A+ 4,762,710
2,000,000 City of San Antonio, Texas, Electric and Gas Systems Revenue
Refunding Bonds, New Series 1992, 5.000%, 2/01/17 2/02 at 101 Aa1 1,808,460
4,500,000 City of San Antonio, Texas, Water System Revenue
Refunding Bonds, Series 1992, 6.500%, 5/15/10 5/02 at 102 Aaa 4,812,435
1,825,000 Socorro Independent School District (El Pasco, County,
Texas), Unlimited Tax School Building Bonds, Series
1996, 5.750%, 2/15/21 2/06 at 100 Aaa 1,826,935
2,500,000 Tarrant County Water Control and Improvement District
Number One (Tarrant County, Texas), Water Revenue
Refunding and Improvement Bonds, Series 1992,
5.750%, 3/01/13 (Pre-refunded to 3/01/01) 3/01 at 100 Aaa 2,619,050
2,500,000 City of Terrell Hills, Texas, Higher Education Facilities
Corporation, Higher Education Revenue and Refunding
Bonds (Incarnate Word College Project), Series 1993,
5.750%, 3/15/13 3/03 at 101 1/2 AAA 2,457,825
5,400,000 Travis County Health Facilities Development Corporation,
Revenue Bonds (Daughters of Charity National Health
System-Daughters of Charity Health Services of Austin),
Series 1993B, 6.000%, 11/15/22 11/03 at 102 Aa 5,374,674
1,865,000 Travis County Health Facilities Development Corporation,
Hospital Revenue Bonds (Daughters of Charity National
Health System-Daughters of Charity Health Services of
Austin), Series 1995, 5.250%, 11/01/11 11/05 at 102 Aa 1,751,142
3,310,000 Travis County Housing Finance Corporation (Texas),
Residential Mortgage Bonds (GNMA and FNMA
Mortgage-Backed Securities Program), Senior Bonds,
Series 1991A, 7.050%, 12/01/25 12/01 at 103 AAA 3,475,202
1,445,000 Tyler Junior College District (Smith and Van Zanlt
Counties, Texas), Combined Fee Improvement Revenue
and Refunding Bonds, Series 1994, 5.900%, 8/15/13 8/04 at 100 Aaa 1,468,321
2,000,000 Board of Regents of The University of Houston System,
Consolidated Revenue Bonds, Series 1995,
6.000%, 2/15/17 2/05 at 100 Aaa 2,020,540
2,345,000 Victoria Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds, Series 1995,
8.125%, 1/01/11 No Opt. Call Aaa 2,508,351
1,500,000 City of Weatherford, Texas (Parker County), Utility
System Revenue Bonds, Series 1994, 5.700%, 9/01/13 9/04 at 100 Aaa 1,499,430
$207,430,000 Total Investments - (cost $198,728,486) - 98.4% 206,965,708
=============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 300,000 Gulf Coast Waste Disposal Authority Pollution Control
=============
Revenue Refunding (Amoco Oil Company Project),
Series 1992, Variable Rate Demand Bonds,
3.650%, 10/01/17+ VMIG-1 300,000
Other Assets Less Liabilities - 1.5% 3,157,110
Net Assets - 100% $210,422,818
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 51 $117,736,194 57%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 31,940,980 15
PORTFOLIO OF A+ A1 3 8,042,567 4
INVESTMENTS A, A- A, A2, A3 15 35,322,125 17
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 5 13,562,085 6
TEMPORARY Non-rated Non-rated 1 361,757 1
INVESTMENTS):
TOTAL 89 $206,965,708 100%
<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.
+ 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.
</FN>
</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) $ 91,218,571 $247,218,960 $162,682,150 $218,636,377
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 200,000 3,900,000 500,000 1,100,000
Cash 286,050 61,731 38,920 29,867
Receivables:
Interest 772,916 3,910,476 2,168,638 2,832,408
Investments sold 10,000 -- -- 506,584
Other assets 18,004 24,277 8,922 35,193
------------ ------------ ------------ ------------
Total assets 92,505,541 255,115,444 165,398,630 223,140,429
------------ ------------ ------------ ------------
LIABILITIES
Payable for investments purchased -- 2,892,294 -- --
Accrued expenses:
Management fees (note 6) 50,296 135,789 89,560 120,330
Other 59,384 118,088 89,233 99,163
Preferred share dividends payable 12,333 46,546 25,373 30,234
Common share dividends payable 288,937 889,739 506,727 739,892
------------ ------------ ------------ ------------
Total liabilities 410,950 4,082,456 710,893 989,619
------------ ------------ ------------ ------------
Net assets (note 7) $ 92,094,591 $251,032,988 $164,687,737 $222,150,810
============ ============ ============ ============
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 11,191,691 7,677,686 9,248,654
============ ============ ============ ============
Net asset value per Common share outstanding (net
assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 14.51 $ 15.28 $ 14.16 $ 15.69
============ ============ ============ ============
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) $206,965,708
Temporary investments in short-term
municipal securities, at amortized cost (note 1) 300,000
Cash 63,172
Receivables:
Interest 3,874,569
Investments sold 139,563
Other assets 26,541
------------
Total assets 211,369,553
------------
LIABILITIES
Payable for investments purchased --
Accrued expenses:
Management fees (note 6) 114,179
Other 67,178
Preferred share dividends payable 32,768
Common share dividends payable 732,610
------------
Total liabilities 946,735
------------
Net assets (note 7) $210,422,818
============
Preferred shares, at liquidation value $ 69,000,000
============
Preferred shares outstanding 2,760
============
Common shares outstanding 9,392,432
============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 15.06
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended July 31, 1996
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 5,334,289 $ 15,392,165 $ 9,476,544 $ 13,237,048
------------ ------------ ------------ ------------
Expenses:
Management fees (note 6) 600,499 1,618,592 1,067,333 1,432,376
Preferred shares--auction fees 75,153 200,411 140,287 192,895
Preferred shares--dividend disbursing agent fees 15,612 15,031 31,334 45,607
Shareholders' servicing agent fees and expenses 7,352 41,186 30,449 42,641
Custodian's fees and expenses 39,884 55,893 47,100 44,879
Directors'/Trustees' fees and expenses (note 6) 2,241 4,120 1,670 992
Professional fees 14,101 11,199 24,638 32,548
Shareholders' reports--printing and mailing expenses 36,890 73,310 55,505 69,366
Stock exchange listing fees 17,830 24,905 16,687 13,889
Investor relations expense 9,497 16,835 10,558 13,998
Other expenses 9,690 15,286 12,730 34,295
------------ ------------ ------------ ------------
Total expenses 828,749 2,076,768 1,438,291 1,923,486
------------ ------------ ------------ ------------
Net investment income 4,505,540 13,315,397 8,038,253 11,313,562
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 3) 54,640 208,789 (8,455) (201,089)
Net change in unrealized appreciation or depreciation
of investments 1,535,012 2,733,144 3,077,375 3,376,371
------------ ------------ ------------ ------------
Net gain from investments 1,589,652 2,941,933 3,068,920 3,175,282
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 6,095,192 $ 16,257,330 $ 11,107,173 $ 14,488,844
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended July 31, 1996
<CAPTION>
NTX
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 13,070,166
------------
Expenses:
Management fees (note 6) 1,363,617
Preferred shares--auction fees 172,855
Preferred shares--dividend disbursing agent fees 30,062
Shareholders' servicing agent fees and expenses 16,263
Custodian's fees and expenses 52,150
Directors'/Trustees' fees and expenses (note 6) 1,363
Professional fees 30,225
Shareholders' reports--printing and mailing expenses 49,702
Stock exchange listing fees 6,215
Investor relations expense 5,960
Other expenses 16,246
------------
Total expenses 1,744,658
------------
Net investment income 11,325,508
------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 3) (107,896)
Net change in unrealized appreciation or depreciation
of investments 1,979,168
------------
Net gain from investments 1,871,272
------------
Net increase in net assets from operations $ 13,196,780
============
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
7/31/96 7/31/95 7/31/96 7/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 4,505,540 $ 4,560,118 $ 13,315,397 $ 13,441,368
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) 54,640 (659,916) 208,789 964,241
Net change in unrealized appreciation or depreciation
of investments 1,535,012 2,747,931 2,733,144 1,087,592
------------- ------------- ------------- -------------
Net increase in net assets from operations 6,095,192 6,648,133 16,257,330 15,493,201
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (3,403,044) (3,338,836) (10,639,239) (11,081,980)
Preferred shareholders (1,031,544) (1,137,849) (2,634,651) (2,869,083)
From accumulated net realized gains from investment
transactions:
Common shareholders -- -- (756,492) (544,244)
Preferred shareholders -- -- (208,288) (87,936)
In excess of net realized gains:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions to
shareholders (4,434,588) (4,476,685) (14,238,670) (14,583,243)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from 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 -- -- 1,107,040 915,423
------------- ------------- ------------- -------------
Net increase in net assets derived from capital
share transactions -- -- 1,107,040 915,423
------------- ------------- ------------- -------------
Net increase in net assets 1,660,604 2,171,448 3,125,700 1,825,381
Net assets at beginning of year 90,433,987 88,262,539 247,907,288 246,081,907
------------- ------------- ------------- -------------
Net assets at end of year $ 92,094,591 $ 90,433,987 $ 251,032,988 $ 247,907,288
============= ============= ============= =============
Balance of undistributed net investment income
at end of year $ 201,195 $ 130,243 $ 592,803 $ 551,296
============= ============= ============= =============
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
7/31/96 7/31/95 7/31/96 7/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 8,038,253 $ 7,080,742 $ 11,313,562 $ 9,571,454
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (8,455) (1,991,858) (201,089) (688,907)
Net change in unrealized appreciation or depreciation
of investments 3,077,375 10,074,721 3,376,371 13,173,012
------------- ------------- ------------- -------------
Net increase in net assets from operations 11,107,173 15,163,605 14,488,844 22,055,559
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (5,919,781) (5,398,921) (8,787,207) (7,169,390)
Preferred shareholders (1,913,660) (1,885,432) (2,468,189) (2,317,977)
From accumulated net realized gains from investment
transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
In excess of net realized gains:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions
to shareholders (7,833,441) (7,284,353) (11,255,396) (9,487,367)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from 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 -- -- 582,118 254,340
------------- ------------- ------------- -------------
Net increase in net assets derived from capital
share transactions -- 52,646,603 582,118 104,431,676
------------- ------------- ------------- -------------
Net increase in net assets 3,273,732 60,525,855 3,815,566 116,999,868
Net assets at beginning of year 161,414,005 100,888,150 218,335,244 101,335,376
------------- ------------- ------------- -------------
Net assets at end of year $ 164,687,737 $ 161,414,005 $ 222,150,810 $ 218,335,244
============= ============= ============= =============
Balance of undistributed net investment income
at end of year $ 404,846 $ 245,822 $ 677,362 $ 619,196
============= ============= ============= =============
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NTX
Year ended Year ended
7/31/96 7/31/95
<S> <C> <C>
OPERATIONS
Net investment income $ 11,325,508 $ 10,505,566
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (107,896) 351,434
Net change in unrealized appreciation or depreciation
of investments 1,979,168 7,220,300
------------- -------------
Net increase in net assets from operations 13,196,780 18,077,300
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (8,899,833) (8,438,688)
Preferred shareholders (2,485,682) (2,459,353)
From accumulated net realized gains from investment
transactions:
Common shareholders (270,977) --
Preferred shareholders (85,046) --
In excess of net realized gains:
Common shareholders (72,545) --
Preferred shareholders (22,768) --
------------- -------------
Decrease in net assets from distributions to
shareholders (11,836,851) (10,898,041)
------------- -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from 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 138,670 215,110
------------- -------------
Net increase in net assets derived from capital
share transactions 138,670 48,020,886
------------- -------------
Net increase in net assets 1,498,599 55,200,145
Net assets at beginning of year 208,924,219 153,724,074
------------- -------------
Net assets at end of year $ 210,422,818 $ 208,924,219
============= =============
Balance of undistributed net investment income
at end of year $ 291,725 $ 351,732
============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At July 31, 1996, 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).
Each Fund invests primarily in a diversified portfolio of municipal
obligations issued by state and local government authorities within a single
state. 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 net unrealized depreciation
and $21,000,000 of preferred shares at liquidation value which were combined
with that of NMP. The combined net assets of NMP immediately after the
acquisition were $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's and NOO's net assets at that date of $63,748,523 and
$40,428,813, respectively, included net 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 were combined with
that of NUO. The combined net assets of NUO immediately after the acquisition
were $198,099,459.
<PAGE>
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 net unrealized
depreciation and $19,000,000 of preferred shares at liquidation value which
were combined with that of NTX. The combined net assets of NTX immediately
after the acquisition were $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.
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, 1996, NUM had purchase commitments of $1,993,800.
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.
<PAGE>
Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing to shareholders
all of their tax-exempt net investment income, in addition to any significant
amounts of net realized capital gains and/or market discount realized from
investment transactions. The Funds currently consider significant net realized
capital gains and/or market discount as amounts in excess of $.01 per Common
share. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal
personal income taxes, to retain such tax-exempt status when distributed to
shareholders of the Funds. All regular monthly income dividends paid during
the year ended July 31, 1996, have been designated Exempt Interest Dividends
which are entirely exempt from federal personal income taxes. Net realized
capital gain and market discount distributions are subject to federal
taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts after month-end.
Net realized capital gains and/or market discount from investment transactions
are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryovers.
Distributions to shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount are recorded on the ex-dividend
date. The amount and timing of 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 occur and will be classified as either distributions
in excess of net investment income, distributions in excess of net realized
gains and/or distributions in excess of ordinary taxable income from
investment transactions, where applicable.
<PAGE>
<TABLE>
Preferred Shares
The 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 may change every seven days, as set by the Auction Agent. The number of
shares outstanding, by series and in total, at July 31, 1996, were 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 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
year ended July 31, 1996.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period.
</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
7/31/96 7/31/95 7/31/96 7/31/95
<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 -- -- 70,927 60,995
-- -- ------ ------
Net increase -- -- 70,927 60,995
== == ====== ======
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
7/31/96 7/31/95 7/31/96 7/31/95
<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 -- -- 31,404 17,091
-- --------- --------- ---------
Net increase -- 2,781,169 31,404 4,745,715
== ========= ========= =========
Preferred shares acquired from NMH, NOH and NOO, or
NTE, as applicable (note 1) -- 840 -- 1,680
== ========= ========= =========
<CAPTION>
NTX
Year ended Year ended
7/31/96 7/31/95
<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 6,593 14,584
---------- ---------
Net increase 6,593 2,245,827
========== =========
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 year ended July 31,
1996, were as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $14,538,998 $38,021,012 $28,293,269 $42,850,580
Temporary municipal investments 7,500,000 14,400,000 15,200,000 16,600,000
SALES AND MATURITIES
Investments in municipal securities 14,015,678 38,506,895 27,552,259 41,020,740
Temporary municipal investments 8,200,000 10,500,000 14,700,000 19,100,000
=========== =========== =========== ===========
<CAPTION>
NTX
<S> <C>
PURCHASES
Investments in municipal securities $35,808,011
Temporary municipal investments 20,340,000
SALES AND MATURITIES
Investments in municipal securities 35,812,520
Temporary municipal investments 20,940,000
===========
At July 31, 1996, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
</TABLE>
<PAGE>
<TABLE>
At July 31, 1996, the following Funds had unused capital loss carryovers
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryovers will expire as follows:
<CAPTION>
NAZ NMP NUO
<S> <C> <C> <C>
Expiration year:
2002 $ -- $ 347,424 $1,566,076
2003 1,426,173 627,148 16,493
2004 -- 1,807,234 622,243
---------- ---------- ----------
Total $1,426,173 $2,781,806 $2,204,812
========== ========== ==========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On August 1, 1996, the Funds declared Common share dividend distributions
from their tax-exempt net investment income that were paid September 3, 1996,
to shareholders of record on August 15, 1996, as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Dividend per share $.0675 $.0795 $.0660 $.0800
====== ====== ====== ======
<CAPTION>
NTX
<S> <C>
Dividend per share $.0780
======
</TABLE>
<PAGE>
<TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of
investments at July 31, 1996, were as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $ 4,166,795 $ 14,620,102 $ 4,225,180 $ 8,309,751
Depreciation (55,146) (219,798) (471,850) (705,234)
------------ ------------ ------------ ------------
Net unrealized appreciation $ 4,111,649 $ 14,400,304 $ 3,753,330 $ 7,604,517
============ ============ ============ ============
<CAPTION>
NTX
<S> <C>
Gross unrealized:
Appreciation $8,745,144
Depreciation (507,922)
----------
Net unrealized appreciation $8,237,222
==========
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company,
each Fund pays to the Adviser an annual management fee, payable monthly, at
the rates set forth below, which are based upon the average daily net asset
value of each Fund:
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors/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, 1996, 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 42,806 111,917 76,777 92,487
Paid-in surplus 59,165,114 155,720,603 107,234,590 139,237,777
Balance of undistributed net investment income 201,195 592,803 404,846 677,362
Accumulated net realized gain (loss) from investment
transactions (1,426,173) 207,361 (2,781,806) (2,461,333)
In excess of net realized gains -- -- -- --
Net unrealized appreciation of investments 4,111,649 14,400,304 3,753,330 7,604,517
------------- ------------- ------------- -------------
Net assets $ 92,094,591 $ 251,032,988 $ 164,687,737 $ 222,150,810
============= ============= ============= =============
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 93,924
Paid-in surplus 133,003,156
Balance of undistributed net investment income 291,725
Accumulated net realized gain (loss) from investment
transactions (107,896)
In excess of net realized gains (95,313)
Net unrealized appreciation of investments 8,237,222
-------------
Net assets $ 210,422,818
=============
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, 1996, 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:
Health Care Facilities 10% 18% 21% 16%
Pollution Control Facilities 6 8 15 8
Water / Sewer Facilities 16 6 8 12
Housing Facilities 1 12 13 8
Educational Facilities 5 2 5 12
Electric Utilities 4 4 8 3
Transportation 6 1 2 6
Lease Rental Facilities 5 4 2 4
Other 6 5 7 1
General Obligation Bonds 22 25 17 19
Escrowed Bonds 19 15 2 11
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
<CAPTION>
NTX
<S> <C>
Revenue Bonds:
Health Care Facilities 14%
Pollution Control Facilities 17
Water / Sewer Facilities 7
Housing Facilities 10
Educational Facilities 9
Electric Utilities 5
Transportation 7
Lease Rental Facilities 2
Other 2
General Obligation Bonds 16
Escrowed Bonds 11
-----
100%
=====
</TABLE>
<PAGE>
Certain long-term and intermediate-term investments owned by the Funds
are either covered by insurance issued by several private insurers or are
backed by an escrow or trust containing U.S. Government or U.S. Government
agency securities, both of which ensure the timely payment of principal and
interest in the event of default (64% for NAZ, 56% for NUM, 51% for NMP, 57%
for NUO and 46% 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.
Certain temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third
party domestic or foreign banks or other institutions (100% for NAZ, 95% for
NUM, 0% for NMP, 100% for NUO and 100% for NTX).
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments** shareholders shareholders++
NAZ
Year ended 7/31,
<S> <C> <C> <C> <C> <C>
1996 $14.120 $1.053 $ .373 $ (.795) $(.241)
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,
1996 15.100 1.193 .264 (.954) (.236)
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,
1996 13.730 1.047 .409 (.777) (.249)
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>
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 shareholders++ discounts of period of period
NAZ
Year ended 7/31,
<S> <C> <C> <C> <C> <C>
1996 $ -- $ -- $ -- $14.510 $13.875
1995 -- -- -- 14.120 13.625
1994 (.053) (.013) -- 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,
1996 (.068) (.019) -- 15.280 15.500
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,
1996 -- -- -- 14.160 12.875
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
value+ value+ (in thousands) assets*** net assets*** rate
NAZ
Year ended 7/31,
<S> <C> <C> <C> <C> <C> <C>
1996 7.83% 8.48% $92,095 .90% 4.88% 15%
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,
1996 11.32 8.07 251,033 .83 5.29 15
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,
1996 14.00 8.88 164,688 .87 4.87 17
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 66.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments** shareholders shareholders++
NUO
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1996 $15.330 $1.227 $ .354 $ (.953) $(.268)
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,
1996 14.910 1.207 .204 (.948) (.265)
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 shareholders++ discounts of period of period
NUO
<S> <C> <C> <C> <C> <C>
Year ended 7/31,
1996 $ -- $ -- $ -- $15.690 $16.000
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,
1996 (.037)+++ (.011)+++ -- 15.060 14.875
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
value+ value+ (in thousands) assets*** net assets*** rate
NUO
<S> <C> <C> <C> <C> <C> <C>
Year ended 7/31,
1996 12.39% 8.68% $222,151 .87% 5.09% 19%
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,
1996 14.60 7.72 210,423 .83 5.36 17
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.
+ Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
++ The amounts shown are based on Common share equivalents.
+++ The amounts shown include distributions in excess of capital gains of
$.008 for Common shareholders and $.002 for Preferred shareholders.
</FN>
</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, 1996,
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, 1996, 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, 1996, 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 13, 1996
<PAGE>
Build your wealth automatically
Photographic image of Customer Service Rep at Nuveen.
Managing your portfoliotakes 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 add to your tax-free portfolio and earn
the tax-free income you need to achieve your financial goals.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen exchange-traded fund allows you to conveniently
reinvest dividends and/or capital gains distributions in additional fund
shares. If you do not elect to reinvest distributions, all distributions are
paid by check, or can be deposited directly 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. 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. Income or capital gains taxes may be payable on dividends
or distributions that are reinvested.
<PAGE>
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.
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 financial 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. Nuveen is pleased to provide the account information you
and your adviser need to plan effectively."
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>
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."
More than just a number
If you've ever called our toll-free customer service line, you've spoken with
one of Nuveen's customer service representatives. These reps are ready to
assist you with answers to your questions about current account balances,
yields, and previous transactions on your accounts. They can also supply
additional information about any of Nuveen's tax-free unit trusts and mutual
funds.
If you have a question about your account, or whenever you need help, just
call 800.257.8787. Our customer service reps are available Monday through
Friday from 8:00 a.m. to 8:00 p.m. Eastern time.
Photographic image of woman seated and man standing behind her representing
Nuveen investors.
<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-SEP 96
