Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
INVESTMENT QUALITY (NQM)
SELECT QUALITY (NQS)
QUALITY INCOME (NQU)
PREMIER INCOME (NPF)
SEMIANNUAL REPORT/APRIL 30, 1996
Photographic image of man seating at table with woman behind him.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
10 Fund performance
12 Commonly used terms
14 Portfolio of investments
47 Statement of net assets
48 Statement of operations
49 Statement of changes in net assets
51 Notes to financial statements
60 Financial highlights
<PAGE>
Dear shareholder
Photograpic image Richard Franke, Chairman of Nuveen.
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful invest ment programs."
The past 12 months provided a welcome rebound for investors in municipal
bonds, reversing the declines of a year earlier. As long-term interest rates
fell in the last half of 1995, the Nuveen funds continued to provide
attractive levels of dividend income.
Currently, we are experiencing a certain degree of uncertainty in the
markets, as the economy continues to send mixed signals about the pace of
growth and the potential for increased inflation. Although there is no solid
evidence that inflation will reappear, the mere specter has been enough to
keep some investors on the sidelines. The good news is that the Federal
Reserve remains committed to a policy of low inflation and modest economic
growth, which should bode well for the bond markets and bond investors.
During the first part of 1996, investors found opportunities to purchase
higher yielding bonds with strong credit quality. Tax-free securities--and the
taxable-equivalent yields they offer--are bringing investors back to the bond
market. Diminished concerns about a flat tax and other tax reform proposals
that had potential implications for tax-free investments have also bolstered
interest in municipal bonds and bond funds.
Municipal bond funds continue to be a prudent way to invest for the long
term, offering investors quality and an attractive source of tax-free income.
As of April 30, 1996, the current annualized yield on share price for the
exchange-traded funds covered in this report ranged from 6.87% to 6.96%. To
match these yields, an investor in the 36% federal income tax bracket would
have had to earn at least 10.73% on taxable alternatives. Without question,
taxable yields at this level on investments of comparable quality can be
difficult to achieve in today's markets.
<PAGE>
With the strength of the bond market last year, these funds enjoyed a
recovery in share prices over the levels of April 30, 1995, as well as
attractive total returns. The 12-month total returns on net asset value ranged
from 6.56% to 9.13%, equivalent to taxable investments returning 10.59% to
13.11%.
As you may know, on June 30, 1996, I will be retiring as chairman and chief
executive officer of John Nuveen & Co. Incorporated and as chairman of the
board of the Nuveen exchange-traded funds. As I look back over the 41 years I
have spent at Nuveen, I'm proud to have been associated with a firm that holds
integrity, honesty, and value as the cornerstones of its business. I'm
confident that these traditions will continue to be the hallmarks of Nuveen.
Over the past few years, I have been working closely with other Nuveen
managers to ensure that the company and the funds continue to be guided by
strong and talented management. Timothy R. Schwertfeger, who has been with
Nuveen since 1977, will succeed me as chief executive officer and chairman of
Nuveen. He currently serves as executive vice president of Nuveen and
president of the board of directors for the Nuveen exchange-traded funds. I am
very confident in his abilities and those of the entire Nuveen management
team.
The management transition has been well planned, and it will have no effect
on portfolio management or the way dividends are set.
Our focus will continue to be on building shareholder value, providing
research-oriented management, and maintaining our leadership role in the
municipal bond market. With this focus, we anticipate many more years of
progress and accomplishment for our shareholders and our firm.
As this will be the last letter for these funds in which I have the
opportunity to address you, I'd like to take this occasion to thank you for
selecting Nuveen exchange-traded funds. We appreciate your investment in
Nuveen, and we look forward to reports of continued success in the months
ahead.
Sincerely,
Richard J. Franke
Chairman of the Board
June 17, 1996
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, discusses investment
performance and recent factors affecting the municipal market.
What are the best measures of fund performance?
There are many ways to gauge fund performance, each of which provides certain
insights. Total return is generally recognized as one comprehensive measure of
performance. We use the term "total return" to refer to a share's appreciation
plus reinvested dividend income and capital gain distributions, if applicable.
In 1994, total returns for municipal bond funds--and the entire bond
market--declined, in one of the most difficult periods for bonds in decades.
This was immediately followed by 1995's exceptional market recovery, which
resulted in a rebound in total returns. During the first part of 1996,
municipal bond funds have continued to provide solid total returns, although
at a slightly lower level than during 1995's bull market. The events of these
past few years illustrate the importance of considering risk, or variability
of returns, when comparing total returns. Nuveen's prudent approach to
management protected investors from wide swings in performance by maintaining
a higher level of value than peer group funds during 1994's bear market and
participating only slightly less in 1995's recovery.
Another important measure of fund performance involves assessing whether a
fund has met its stated investment goals. At Nuveen, we continue to emphasize
our funds' goals of providing dependable tax-free dividends and adhering to a
value investing approach. In this regard, the steadiness of dividends over the
long term is a good practical measure of success.
<PAGE>
Photographic image of Tom Spalding, Portfolio Manager of 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. When a fund's NAV per share 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
recognize underlying value balanced against the various factors that affect
investor decisions, such as sentiment regarding future interest rates,
inflation forecasts, the relative strength of the stock market, and
legislative and tax outlooks. Over the past few months, investor worries about
tax reform--and the potential effect of a flat tax proposal on tax-free
investments--have waned somewhat. The combination of higher yields, concerns
about the vulnerability of the stock market, and broker recommendations has
prompted a greater demand for municipal bonds and bond funds. With increased
demand, share prices have 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 caused the dividends of some funds to decline recently?
All Nuveen exchange-traded funds are structured to provide an attractive
stream of tax-free income. Some of our funds, including the ones covered in
this report, use leverage as an additional way to enhance
that income stream. To achieve this, a leveraged fund issues preferred as well
as common shares; the pre ferred shares pay lower short-term rates to
investors looking for short-term liquidity. Proceeds from the sale of
preferred shares are used to buy additional bonds, and common shareholders
earn extra income from the difference between the long-term rates earned on
the bonds in the portfolio and the short-term rates paid to preferred
shareholders. As long as short-term rates are lower than those of the bonds in
the portfolio, common shareholders receive more income than they would from an
unleveraged fund.
It is important to remember that leverage can increase NAV volatility as
well as investment potential. Also, a sudden rise in interest rates, such as
we experienced in 1994, can affect dividends. On average, short-term rates
have been higher over the past two years than they were in the early 1990s.
This has resulted in higher rates for the preferred shareholders and less
income available for common share dividends.
As we have seen recently, bond calls can also act to lower dividends. As the
Federal Reserve Board made a succession of rate cuts between July 1995 and
January 1996, long-term municipal bond yields reacted by declining almost 130
basis points from their position at the beginning of 1995. This lower
long-term rate environment caused the call, or early redemption, of many bonds
with higher yields. These older bonds have been replaced in some portfolios
with the bonds available in the market today, most of which have lower yields.
What has been Nuveen's investment approach during this period?
Because we believe that a value approach offers investors greater price
stability in uncertain markets, Nuveen continues to pursue value investing as
the optimal way to meet our investors' objectives. We define value investing
as 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 in relation to other bonds in the market. This
approach was rewarded over the past year, as we saw many of our portfolio
holdings upgraded by the national rating agencies, indicating that our
Research Department's judgments about credit quality were on target.
As opportunity allowed, we moved to protect current income by investing a
larger percentage of our portfolios in non-callable bonds. These bonds cannot
be redeemed before maturity, so their yield is assured for the long term even
if interest rates continue to decline. As another measure of income
protection, we also purchased an increased number of bonds at discounts from
their par value. Because these bonds have coupon rates slightly below market
levels, they are less likely to be called from our portfolios, assuring more
stable yields for our investors.
<PAGE>
<TABLE>
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQM
Dividends of NQM have been consistently at an attractive level despite a
modest reduction in November, reflecting the effects of bond calls.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0895
6/13/95 $0.0895
7/12/95 $0.0895
8/11/95 $0.0895
9/13/95 $0.0895
10/11/95 $0.0895
11/13/95 $0.0870
12/13/95 $0.0870
1/10/96 $0.0870
2/13/96 $0.0870
3/13/96 $0.0870
4/11/96 $0.0870
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.96%
Taxable-equivalent yield 10.88%
Annual total return on NAV 6.56%
Taxable-equivalent total return 10.59%
Share price $15.00
NAV $15.20
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NQS
Shareholders of NQS have consistently received an above market dividend level,
despite the modest reduction in August, reflecting the effects of bond calls.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0870
6/13/95 $0.0870
7/12/95 $0.0870
8/11/95 $0.0845
9/13/95 $0.0845
10/11/95 $0.0845
11/13/95 $0.0845
12/13/95 $0.0845
1/10/96 $0.0845
2/13/96 $0.0845
3/13/96 $0.0845
4/11/96 $0.0845
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.93%
Taxable-equivalent yield 10.83%
Annual total return on NAV 7.85%
Taxable-equivalent total return 11.86%
Share price $14.625
NAV $14.90
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NQU
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0855
6/13/95 $0.0855
7/12/95 $0.0855
8/11/95 $0.0855
9/13/95 $0.0855
10/11/95 $0.0855
11/13/95 $0.0855
12/13/95 $0.0855
1/10/96 $0.0855
2/13/96 $0.0855
3/13/96 $0.0855
4/11/96 $0.0855
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.90%
Taxable-equivalent yield 10.78%
Annual total return on NAV 8.87%
Taxable-equivalent total return 12.86%
Share price $14.875
NAV $15.18
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
NPF
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. Shareholders also
received a capital gains distribution in December.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0845
6/13/95 $0.0845
7/12/95 $0.0845
8/11/95 $0.0845
9/13/95 $0.0845
10/11/95 $0.0845
11/13/95 $0.0845
12/13/95 $0.0845 $0.0603
1/10/96 $0.0845
2/13/96 $0.0845
3/13/96 $0.0845
4/11/96 $0.0845
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.87%
Taxable-equivalent yield 10.73%
Annual total return on NAV 9.13%
Taxable-equivalent total return 13.11%
Share price $14.75
NAV $15.06
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1996) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given 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, this tax rate is assumed to
be 36% for shareholders, based on incomes of $121,300-$263,750 for investors
filing singly, and $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 liabili ties. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given federal income tax rate would
need to obtain from a fully taxable investment to equal the Fund's stated
total return on NAV.
Leverage
A fund structure that enhances the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. Preferred shareholders receive short-term tax-free income, while the
proceeds can be used to purchase additional long-term bonds, thus increasing
the portfolio's income for common shareholders.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six months ended April 30, 1996. Any future repur
chases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQM)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 2.5%
$ 5,630,000 Alaska Housing Finance Corporation, Insured
Mortgage Program, 7.800%, 12/01/30 12/00 at 102 Aa $ 5,786,401
14,850,000 Alaska Housing Finance Corporation,
5.400%, 12/01/13 6/04 at 102 Aa 13,935,240
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CALIFORNIA - 14.6%
22,400,000 California Health Facilities Financing Authority
(Kaiser Permanente), 5.600%, 5/01/33 5/03 at 102 Aa3 20,324,192
14,625,000 California Health Facilities Financing Authority
(Children's Hospital of Los Angeles),
7.125%, 6/01/21 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 16,482,083
5,700,000 California Public Works Board (Regents of the
University of California), 5.500%, 6/01/21 6/03 at 102 Con(A1) 5,191,845
9,740,000 Huntington Park Redevelopment Agency, Single
Family Mortgage, 8.000%, 12/01/19 No Opt. Call Aaa 12,238,602
6,640,000 Lancaster Redevelopment Agency, Tax Allocation,
5.700%, 8/01/23 8/03 at 102 Aaa 6,412,447
Loma Linda (Loma Linda University Medical Center):
4,000,000 6.500%, 12/01/18 12/03 at 102 BBB 3,875,640
10,325,000 5.000%, 12/01/22 12/03 at 102 Aaa 8,833,347
7,155,000 Los Angeles Department of Water and Power,
4.500%, 5/15/23 5/03 at 102 Aaa 5,635,850
15,770,000 Ontario Redevelopment Authority, 7.400%, 8/01/25 No Opt. Call Aaa 19,262,582
13,145,000 Perris Single Family Mortgage, Alternative Minimum
Tax, 8.200%, 9/01/23 No Opt. Call Aaa 16,709,135
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COLORADO - 1.1%
4,940,000 Castle Pines Metropolitan District, General
Obligation, 7.625%, 12/01/15 12/00 at 102 Aaa 5,540,803
3,085,000 City and County of Denver Airport System,
Alternative Minimum Tax, 8.000%, 11/15/25 11/01 at 100 Baa 3,435,795
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DISTRICT OF COLUMBIA - 0.7%
5,215,000 District of Columbia Housing Finance Agency,
Alternative Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 5,478,670
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FLORIDA - 5.4%
4,000,000 Hillsborough County Port District (Tampa Port
Authority), 8.250%, 6/01/09 12/00 at 102 Baa1 4,636,000
20,000,000 Jacksonville Health Facilities Authority (Daughters
of Charity Health System-St. Vincent),
7.500%, 11/01/15 (Pre-refunded to 11/01/00) 11/00 at 102 Aaa 22,691,400
Orange County Housing Finance Authority:
2,955,000 7.500%, 7/01/10 7/00 at 103 Aaa 3,128,754
11,035,000 7.600%, 1/01/24 7/00 at 103 Aaa 11,681,541
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
GEORGIA - 5.3%
Municipal Electric Authority of Georgia:
$ 5,990,000 8.375%, 1/01/16 1/98 at 102 A $ 6,444,162
5,250,000 8.125%, 1/01/17 1/98 at 102 A 5,615,873
5,000,000 8.375%, 1/01/20 1/97 at 102 A 5,227,500
2,250,000 6.500%, 1/01/20 No Opt. Call A 2,374,830
3,460,000 Atlanta Urban Residential Finance Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.250%, 10/01/21 10/98 at 103 AAA 3,609,334
10,000,000 Monroe County Development Authority, Pollution
Control (Georgia Power Company),
6.750%, 10/01/24 10/99 at 102 A1 10,366,700
7,325,000 Wayne County Development Authority, Solid Waste
Disposal (ITT Rayonier Inc.), Alternative
Minimum Tax, 8.000%, 7/01/15 1/00 at 102 Baa2 7,785,743
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ILLINOIS - 5.5%
5,000,000 Illinois Health Facilities Authority (ServantCor),
7.875%, 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 BBB+ 5,558,550
3,305,000 Illinois Health Facilities Authority (Riverside Senior
Living Center Project), 7.500%, 11/01/20 11/00 at 102 Baa1 3,410,991
7,500,000 Cook County Community College District No. 508,
8.750%, 1/01/07 No Opt. Call Aaa 9,510,975
5,900,000 Madison County Community Unit School District
No. 7, General Obligation, 5.850%, 2/01/13 No Opt. Call Aaa 6,022,897
3,585,000 Pekin Multi-Family Housing, 6.875%, 5/01/22 5/03 at 103 AAA 3,730,874
3,010,000 Peoria, Pekin and Waukegan (GNMA), Alternative
Minimum Tax, 7.875%, 8/01/22 8/00 at 103 AAA 3,154,691
6,250,000 Regional Transportation Authority, 9.000%, 6/01/07 No Opt. Call Aaa 8,216,000
Southwestern Illinois Development Authority
(LaClede Steel Company), Alternative Minimum Tax:
775,000 8.375%, 8/01/08 8/00 at 103 A- 846,827
2,910,000 8.500%, 8/01/20 8/00 at 103 A- 3,193,609
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INDIANA - 0.8%
6,000,000 Delaware County Hospital Authority, 6.625%, 8/01/16 8/01 at 102 Aaa 6,287,160
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KANSAS - 0.9%
5,145,000 Topeka (Sunwest Hotel Corporation Project),
Alternative Minimum Tax, 9.500%, 10/01/16
(Pre-refunded to 8/15/16) 8/16 at 100 AAA 6,927,640
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KENTUCKY - 2.2%
Kentucky Development Finance Authority (Ashland
Hospital Corporation):
1,550,000 9.750%, 8/01/11 (Pre-refunded to 2/01/98) 2/98 at 102 A 1,717,974
950,000 9.750%, 8/01/11 2/98 at 102 A 1,032,964
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
KENTUCKY (CONTINUED)
$ 2,435,000 Kentucky Housing Corporation, Alternative
Minimum Tax, 8.100%, 1/01/22 7/00 at 102 AAA $ 2,555,192
12,500,000 Jefferson County Pollution Control (Louisville Gas
and Electric), 5.900%, 4/15/23 4/05 at 102 Aa2 12,216,125
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LOUISIANA - 6.1%
Louisiana Public Facilities Authority (West Jefferson
Medical Center):
2,550,000 7.900%, 12/01/15 (Pre-refunded to 12/01/98) 12/98 at 102 Aaa 2,823,615
15,660,000 7.900%, 12/01/15 12/98 at 102 Aaa 17,093,516
5,485,000 Louisiana Public Facilities Authority, Extended Care
(Comm-Care Corporation), 11.000%, 2/01/04 No Opt. Call BBB 6,749,786
5,460,000 East Baton Rouge Mortgage Finance Authority,
Alternative Minimum Tax, 7.875%, 8/01/23 8/00 at 102 Aaa 5,752,055
11,545,000 Orleans Parish School Board, 9.000%, 2/01/09 No Opt. Call Aaa 15,357,852
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MAINE - 0.7%
5,510,000 Maine Housing Authority, Alternative Minimum Tax,
6.875%, 11/15/23 10/04 at 102 AA- 5,626,702
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MARYLAND - 0.3%
2,000,000 Gaithersburg Economic Development (Asbury
Methodist Home), 7.850%, 1/01/20 (Pre-refunded
to 1/01/00) 1/00 at 102 N/R 2,257,720
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MASSACHUSETTS - 6.6%
10,125,000 Massachusetts Health and Educational Facilities
Authority (Goddard Memorial Hospital),
9.000%, 7/01/15 7/00 at 102 Baa 11,193,998
1,250,000 Massachusetts Housing Finance Agency, Alternative
Minimum Tax, 8.100%, 8/01/23 8/99 at 102 BBB+ 1,303,800
Massachusetts Water Resources Authority:
15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 16,892,400
4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 4,485,320
16,250,000 Boston City Hospital (FHA Insured Mortgage),
7.625%, 2/15/21 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 18,231,038
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MINNESOTA- 2.8%
5,000,000 Dakota and Washington Counties Anoka Housing
Authority (GNMA), Alternative Minimum Tax,
8.450%, 9/01/19 No Opt. Call Aaa 6,362,650
2,860,000 Hopkins Elderly Housing (St. Therese Southwest,
Inc.), 6.500%, 3/01/19 3/04 at 102 AA 2,913,739
11,730,000 St. Paul Housing and Redevelopment Authority,
9.250%, 12/01/97 No Opt. Call A1 12,574,442
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MISSISSIPPI - 0.6%
$ 1,545,000 Mississippi Home Corporation, 9.250%, 3/01/12 9/00 at 103 Aaa $ 1,677,824
2,990,000 Mississippi Housing Finance Corporation, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.250%, 10/15/18 10/99 at 102 Aaa 3,142,221
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NEBRASKA - 2.1%
3,300,000 Nebraska Higher Education Loan Program,
Alternative Minimum Tax, 5.875%, 6/01/14 6/04 at 102 A 3,100,581
13,330,000 Nebraska Investment Finance Authority, Single
Family Housing, Alternative Minimum Tax,
6.450%, 3/01/35 3/05 at 101 1/2 AAA 13,421,444
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NEVADA - 0.7%
5,400,000 Nevada General Obligation, Limited Tax,
8.000%, 10/01/15 (Pre-refunded to 10/01/97) 10/97 at 102 Aaa 5,809,644
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NEW MEXICO - 1.2%
9,400,000 Los Alamos County Utility System, 7.750%, 1/01/15
(Pre-refunded to 1/01/97) 1/97 at 102 Baa1 9,819,146
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NEW YORK - 12.6%
10,000,000 New York State Medical Care Facilities Finance
Agency (Columbia-Presbyterian), 8.000% 2/15/25
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 10,716,400
5,000,000 New York State Medical Care Facilities Finance
Agency (St. Luke's-Roosevelt Hospital Center),
7.450%, 2/15/29 (Pre-refunded to 2/15/00) 2/00 at 102 Aaa 5,591,950
3,500,000 New York State Mortgage Agency, Homeowner
Mortgage, Alternative Minimum Tax,
7.950%, 4/01/22 6/00 at 102 Aa 3,687,145
Dormitory Authority of the State of New York
(City University):
5,890,000 9.250%, 7/01/98 No Opt. Call Baa1 6,462,155
14,235,000 8.750%, 7/01/02 No Opt. Call Baa1 16,713,029
10,000,000 7.875%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,412,700
Dormitory Authority of the State of New York
(State University):
7,935,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 8,842,129
1,025,000 7.250%, 5/15/15 5/00 at 102 AAA 1,142,178
6,655,000 New York City Municipal Assistance Corporation,
6.875%, 7/01/07 7/97 at 102 Aa 6,974,107
New York City Municipal Water Finance Authority:
10,200,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 11,464,902
6,395,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 A 6,738,539
5,105,000 6.000%, 6/15/20 6/00 at 100 A 5,031,029
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 4,200,000 New York City Industrial Development Agency
(American Airlines, Inc.), Alternative Minimum Tax,
8.000%, 7/01/20 1/99 at 102 Baa3 $ 4,457,166
- ----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.4%
2,795,000 Charlotte FHA-Insured (Double Oaks Apartments),
7.350%, 5/15/26 11/07 at 100 AAA 2,976,340
- ----------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.2%
2,500,000 Oregon Department of General Services, Certificates
of Participation, 7.500%, 9/01/15 (Pre-refunded
to 9/01/00) 9/00 at 102 Aaa 2,825,525
7,240,000 Northern Wasco County People's Utility District
(Bonneville Power Administration),
5.200%, 12/01/24 12/03 at 102 Aa 6,420,939
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.7%
8,905,000 Pennsylvania Housing Finance Agency, Single
Family Mortgage, Alternative Minimum Tax,
7.650%, 10/01/23 10/00 at 102 AA+ 9,376,253
4,905,000 McKean County Hospital Authority (Bradford
Hospital), 8.875%, 10/01/20 10/00 at 102 BBB- 5,737,428
7,040,000 Philadelphia Water and Wastewater System,
5.000%, 6/15/16 6/03 at 100 Aaa 6,257,082
- ----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.0%
10,000,000 Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax,
8.050%, 4/01/22 10/00 at 102 AA+ 10,469,500
5,000,000 Newport Housing Development Corporation
(Broadway-West Broadway Apartments),
6.800%, 8/01/24 6/03 at 100 AAA 5,107,200
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.0%
3,475,000 South Carolina State Housing Finance Authority,
Alternative Minimum Tax, 7.750%, 7/01/22 7/00 at 102 Aa 3,646,422
19,800,000 Piedmont Municipal Power Agency, 7.250%, 1/01/22 1/00 at 100 A 20,223,918
- ----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8%
2,575,000 Tennessee Housing Development Agency,
Homeownership Program, Alternative Minimum
Tax, 8.125%, 7/01/21 7/98 at 103 Aa 2,599,514
3,975,000 Tennessee Housing Development Agency, Alternative
Minimum Tax, 7.825%, 7/01/15 7/12 at 100 Aa 4,062,013
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS - 5.1%
Brazos River Authority, Pollution Control (Texas
Utilities Electric Company), Alternative
Minimum Tax:
$ 12,110,000 8.250%, 12/01/16 12/96 at 102 Baa2 $ 12,588,587
4,295,000 8.250%, 1/01/19 1/99 at 102 Baa2 4,641,950
2,000,000 8.125%, 2/01/20 2/00 at 102 Baa2 2,190,560
3,500,000 Brazos River Authority, Pollution Control (Texas
Utilities Electric Company), 5.500%, 5/01/22 11/03 at 102 Aaa 3,281,950
2,270,000 Cameron County Housing Finance Corporation
(GNMA), 7.850%, 3/01/24 9/00 at 103 Aaa 2,426,562
Dallas Housing Corporation (Section 8 Assisted
Projects):
1,000,000 7.700%, 8/01/05 8/00 at 102 A 1,072,160
2,000,000 7.850%, 8/01/13 8/00 at 102 A 2,139,880
10,000,000 Harris County Hospital District, 7.400%, 2/15/10 No Opt. Call Aaa 11,792,000
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.7% Intermountain Power Agency:
9,250,000 7.500%, 7/01/16 7/96 at 102 Aa 9,493,645
3,480,000 7.750%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 102 Aaa 3,573,228
- ----------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.5%
3,955,000 Vermont Housing Finance Agency, Alternative
Minimum Tax, 8.150%, 5/01/25 11/00 at 102 A1 4,168,293
- ----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.0%
11,320,000 Washington General Obligation, 4.750%, 10/01/13 10/03 at 100 Aa 9,875,228
3,000,000 Washington Health Care Facilities Authority
(Franciscan Health System), 7.250%, 7/01/15 7/00 at 102 Aaa 3,267,150
Washington Public Power Supply System Nuclear
Project No. 1:
1,745,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,931,192
1,460,000 7.500%, 7/01/15 7/99 at 102 Aa 1,576,055
2,000,000 8.000%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 2,291,920
5,650,000 Washington Public Power Supply System Nuclear
Project No. 2, 7.000%, 7/01/12 7/00 at 102 Aa 6,006,854
Washington Public Power Supply System Nuclear
Project No. 3:
13,900,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 15,387,161
15,850,000 5.600%, 7/01/15 7/03 at 102 Aaa 15,002,658
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WISCONSIN - 0.4%
$ 3,145,000 Wisconsin Housing and Economic Development
Authority, Home Ownership, 7.600%, 3/01/15 9/99 at 102 Aa $ 3,311,212
- ----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4%
3,450,000 Puerto Rico Highway and Transportation Authority,
5.500%, 7/01/19 7/03 at 101 1/2 A 3,168,686
- ----------------------------------------------------------------------------------------------------------------------------------
$721,420,000 Total Investments - (cost $725,084,406) - 97.9% 771,798,925
- ----------------------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.5%
$ 300,000 Chicago O'Hare International Airport (American
Airlines, Inc.), Variable Rate Demand Bonds,
4.100%, 12/01/17+ P-1 300,000
2,000,000 Jackson County Pollution Control Refunding
(Chevron USA Inc.), Series 1993, Variable Rate
Demand Bonds, 4.000%, 6/01/23+ P-1 2,000,000
400,000 Massachusetts Dedicated Income Tax, Variable Rate
Demand Bonds, 3.900%, 12/01/97+ VMIG-1 400,000
1,100,000 Metropolitan Nashville Airport Authority, Special
Facilities (American Airlines), Variable Rate
Demand Bonds, 4.050%, 10/01/12+ A-1+ 1,100,000
- ----------------------------------------------------------------------------------------------------------------------------------
$ 3,800,000 Total Temporary Investments - 0.5% 3,800,000
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 12,652,234
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $788,251,159
<PAGE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 52 $420,449,783 54%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 138,301,286 18
PORTFOLIO OF A+ A1 4 32,301,280 4
INVESTMENTS A, A- A, A2, A3 15 67,928,532 9
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 17 110,560,324 14
TEMPORARY Non-rated Non-rated 1 2,257,720 1
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 108 $771,798,925 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition. + 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
(Unaudited)
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. (NQS)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.4%
$ 2,900,000 Arab Water Works Board, 7.050%, 8/01/16 8/01 at 102 Aaa $ 3,195,568
- ----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.5%
5,340,000 Arkansas Development Finance Authority, Single
Family Housing, 8.000%, 8/15/11 8/01 at 103 Aa 5,750,753
4,500,000 Little Rock Hotel and Restaurant, Gross Receipts
Tax, 7.375%, 8/01/15 No Opt. Call A 5,152,500
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.7%
3,200,000 California Department of Water Resources (Central
Valley Project), 4.875%, 12/01/27 12/03 at 101 Aa 2,651,584
4,000,000 California Statewide Communities Development
Authority (Sisters of Charity Leavenworth),
Certificates of Participation, 5.000%, 12/01/23 12/03 at 102 Aa 3,362,320
7,000,000 Los Angeles Department of Water and Power, Electric
Plant, 5.375%, 9/01/23 9/03 at 102 Aa 6,315,540
6,710,000 Los Angeles Department of Water and Power,
Waterworks System, 4.500%, 5/15/11 5/03 at 102 Aa 5,772,546
21,800,000 Los Angeles County Transportation Commission, Sales
Tax, 6.750%, 7/01/20 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 24,314,848
- ----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.1%
Denver City and County Airport System, Alternative
Minimum Tax:
5,000,000 7.750%, 11/15/21 11/01 at 102 Baa 5,485,450
12,150,000 6.750%, 11/15/22 11/02 at 102 Baa 12,318,399
20,000,000 8.750%, 11/15/23 11/01 at 102 Baa 23,803,600
2,905,000 Jefferson County, Single Family Housing,
8.875%, 10/01/13 4/01 at 103 Aaa 3,129,673
- ----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.4%
Connecticut Development Authority (Alzheimer's
Resource Center):
7,500,000 10.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 103 N/R 9,306,075
7,885,000 7.250%, 8/15/21 8/04 at 102 N/R 8,073,136
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2%
1,615,000 District of Columbia Housing Finance Agency,
Alternative Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 1,696,654
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.3% Jacksonville Electric Authority:
4,500,000 7.500%, 10/01/02 (Pre-refunded to 10/01/97) 10/97 at 101 1/2 Aaa 4,791,870
14,250,000 6.750%, 10/01/21 (Pre-refunded to 10/01/00) 10/00 at 101 1/2 Aaa 15,681,840
4,000,000 Orlando-Orange County Expressway, 5.125%, 7/01/20 7/03 at 102 Aaa 3,591,280
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
GEORGIA - 0.4%
$ 2,690,000 Atlanta Urban Residential Finance Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.250%, 10/01/21 10/98 at 103 AAA $ 2,806,100
- ----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.5%
16,000,000 Hawaii Department of Budget and Finance
(Kapiolani Health Care System), 7.650%, 7/01/19
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 18,399,680
- ----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 5.2%
Illinois Development Finance Authority, Multi-Family
Housing:
775,000 7.650%, 7/01/07 1/02 at 105 AAA 858,522
6,780,000 7.650%, 12/31/31 1/02 at 105 AAA 7,388,776
10,875,000 Illinois Educational Facilities Authority (The
University of Chicago), 5.700%, 12/01/25 12/03 at 102 Aaa 10,148,333
1,585,000 Illinois Housing Development Authority,
Multi-Family Housing, 7.400%, 7/01/23 7/01 at 102 A1 1,647,132
Chicago General Obligation:
14,605,000 5.625%, 1/01/23 1/03 at 102 Aaa 13,759,371
5,000,000 5.125%, 1/01/25 1/06 at 102 Aaa 4,382,750
- ----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5%
5,060,000 Indiana Office Building Commission,
8.750%, 7/01/12 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 5,444,560
8,640,000 Avon Community School Building Corporation,
5.500%, 1/01/16 1/04 at 101 Aaa 8,130,067
5,345,000 Beacon Heights Housing Development Corporation,
Multi-Family Housing, 7.625%, 2/01/21 6/01 at 100 AAA 5,634,485
5,770,000 Fremont Middle School Building Corporation,
5.250%, 1/15/13 1/04 at 101 Aaa 5,423,973
1,135,000 Michigan City Housing Development Corporation,
Multi-Family Housing, 7.625%, 2/01/21 6/01 at 100 AAA 1,196,472
- ----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.7%
Merriam (Shawnee Mission Medical Center):
10,095,000 7.250%, 9/01/04 9/01 at 102 A- 10,638,111
8,800,000 7.250%, 9/01/21 9/01 at 102 A- 9,052,736
- ----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.9%
3,015,000 Lakeland Wesley Village Mortgage, 7.500%, 11/01/21 11/01 at 103 Aa 3,184,262
3,500,000 Louisville-Jefferson County Regional Airport Authority,
Alternative Minimum Tax, 5.500%, 7/01/23 7/03 at 102 Aaa 3,229,205
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
LOUISIANA - 0.3%
$ 1,855,000 Calcasieu Parish Public Trust Authority,
7.750%, 6/01/12 6/01 at 103 A1 $ 1,991,843
- ----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.8%
2,000,000 Massachusetts Health and Educational Facilities
Authority (Lowell General Hospital),
8.400%, 6/01/11 6/01 at 102 Baa1 2,179,260
Massachusetts Housing Finance Agency, Residential
Housing, Alternative Minimum Tax:
2,100,000 8.400%, 8/01/21 8/98 at 102 A1 2,218,398
1,660,000 8.200%, 8/01/27 8/99 at 102 BBB+ 1,753,740
19,025,000 Massachusetts Water Resources Authority,
6.000%, 4/01/20 4/00 at 100 A 18,610,636
4,385,000 Boston Housing Development Corporation
(FHA-Insured), 5.500%, 7/01/24 1/04 at 102 Aaa 4,038,190
6,300,000 Somerville Housing Authority (GNMA),
7.950%, 11/20/30 5/00 at 102 AAA 6,708,681
- ----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.1%
7,890,000 Michigan State Hospital Finance Authority (Detroit
Medical Center), 7.500%, 8/15/11 8/01 at 102 A 8,502,501
- ----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.4%
4,431,644 Chisago County and Stearns County, South Central
Multi-County Housing and Redevelopment
Authority, Single Family Mortgage (FNMA),
Alternative Minimum Tax, 7.050%, 9/01/27 3/04 at 102 27/32 AAA 4,675,650
Dakota, Washington and Stearns Counties, Single
Family Mortgage (FNMA), Alternative Minimum
Tax:
3,195,000 6.600%, 9/01/17 3/04 at 102 AAA 3,294,844
2,255,000 6.700%, 3/01/21 3/04 at 102 AAA 2,321,793
- ----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.2%
1,485,000 Goodman Housing Development Corporation,
Multi-Family Housing, 7.625%, 2/01/22 8/01 at 100 AAA 1,565,532
- ----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.5%
10,550,000 Nebraska Investment Finance Authority, Single
Family Housing, Alternative Minimum Tax,
6.800%, 3/01/35 3/05 at 101 1/2 AAA 10,816,915
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW JERSEY - 2.6%
$ 4,420,000 New Jersey Housing and Mortgage Finance Agency,
6.850%, 11/01/06 11/01 at 102 AA+ $ 4,709,156
15,335,000 Salem County Industrial Pollution Control Financing
Authority (Public Service Electric and Gas
Company), 5.550%, 11/01/33 11/03 at 102 Aaa 14,342,519
- ----------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.3%
1,780,000 New Mexico Mortgage Finance Authority, Single
Family Housing, Alternative Minimum Tax,
7.800%, 3/01/21 9/99 at 102 AA- 1,852,749
14,050,000 Farmington Pollution Control (Southern California
Edison Company), 7.200%, 4/01/21 4/01 at 102 Aa3 15,286,681
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 7.1%
6,000,000 New York State Local Government Assistance
Corporation, 7.000%, 4/01/18 (Pre-refunded
to 4/01/02) 4/02 at 102 Aaa 6,791,760
1,750,000 New York State Medical Care Facilities Finance
Agency (Hospital and Nursing Home),
8.000%, 2/15/28 8/98 at 102 A 1,887,253
New York State Medical Care Facilities Finance
Agency (Mental Health Services Facilities):
1,615,000 7.600%, 2/15/06 8/01 at 102 Baa1 1,764,856
1,590,000 7.600%, 8/15/06 8/01 at 102 Baa1 1,737,536
8,050,000 7.625%, 8/15/17 8/01 at 102 Baa1 8,904,910
5,425,000 7.400%, 2/15/18 2/02 at 102 Baa1 5,979,055
3,410,000 New York State Mortgage Agency, Alternative
Minimum Tax, 8.000%, 10/01/02 7/97 at 102 Aa 3,559,767
6,000,000 New York State Urban Development Corporation
Correctional Capital Facilities, 7.500%, 1/01/18
(Pre-refunded to 1/01/01) 1/01 at 102 Aaa 6,802,560
New York City General Obligation:
4,600,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Aaa 5,462,868
400,000 8.250%, 11/15/10 11/01 at 101 1/2 Baa1 446,108
7,130,000 8.250%, 11/15/15 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Aaa 8,448,194
620,000 8.250%, 11/15/15 11/01 at 101 1/2 Baa1 702,119
- ----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.3%
18,555,000 North Carolina Eastern Municipal Power Agency,
5.500%, 1/01/17 1/03 at 100 Aaa 17,306,805
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
OHIO - 0.8%
Toledo-Lucas County Port Authority, Alternative
Minimum Tax:
$ 600,000 8.500%, 5/15/00 No Opt. Call N/R $ 615,012
3,450,000 8.500%, 11/15/00 11/96 at 102 N/R 3,586,655
1,410,000 8.400%, 11/15/09 11/00 at 102 N/R 1,459,167
- ----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 5.6%
17,750,000 Oklahoma County Home Finance Authority, Single
Family Housing, 8.750%, 7/01/12 7/01 at 102 A1 18,689,330
21,025,000 Tulsa Municipal Airport (AMR Corporation),
Alternative Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 22,535,226
- ----------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5%
3,750,000 Hillsboro Hospital Facility Authority (Tuality
Healthcare), 5.750%, 10/01/12 10/04 at 102 BBB+ 3,529,688
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.9%
3,000,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, Alternative Minimum Tax,
7.150%, 9/01/21 9/01 at 102 Aaa 3,116,400
10,000,000 Philadelphia Water and Sewer, 7.000%, 8/01/18
(Pre-refunded to 8/01/01) 8/01 at 100 AAA 11,066,000
- ----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.8%
4,650,000 Rhode Island Depositors Economic Protection
Corporation, Special Obligation, 7.250%, 8/01/21
(Pre-refunded to 8/01/96) 8/96 at 102 Aaa 4,784,246
Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax:
4,650,000 8.200%, 10/01/17 10/98 at 102 AA+ 4,897,520
10,210,000 8.250%, 10/01/22 10/98 at 102 AA+ 10,652,195
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.7%
5,000,000 Oconee County Pollution Control (Duke Power
Company), 5.800%, 4/01/14 4/03 at 102 Aa2 4,962,900
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.4%
7,920,000 Sioux Falls (Great Plains Hotel Corporation),
Alternative Minimum Tax, 8.500%, 11/01/16
(Pre-refunded to 10/15/14) (Mandatory
put 10/15/14) 10/14 at 100 AAA 10,138,075
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TENNESSEE - 2.4%
$ 9,985,000 Tennessee Housing Development Agency,
Homeownership Program, Alternative Minimum
Tax, 7.650%, 7/01/22 7/01 at 102 Aa $ 10,466,377
7,220,000 Metropolitan Government, Nashville and Davidson
County General Obligation, 6.150%, 5/15/25 5/02 at 102 Aa 7,327,073
- ----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.0%
9,505,000 Austin Water, Sewer and Electric, 14.250%, 11/15/06
(Pre-refunded to 5/15/97) 5/97 at 100 Aaa 10,489,813
Brazos River Authority, Pollution Control (Texas
Utilities Electric Company), Alternative Minimum
Tax:
6,480,000 8.250%, 1/01/19 1/99 at 102 Baa2 7,003,454
8,580,000 8.125%, 2/01/20 2/00 at 102 Baa2 9,397,502
3,500,000 Comal County Health Facilities Development
Corporation (McKenna Memorial Hospital),
7.375%, 1/15/21 1/01 at 102 AAA 3,690,575
14,190,000 El Paso Housing Finance Corporation, Single Family
Housing, 8.750%, 10/01/11 4/01 at 103 A 15,400,975
3,385,000 Harrison County Housing Finance Corporation,
Single Family Housing, 8.875%, 12/01/11 12/01 at 103 A 3,571,378
2,395,000 Panhandle Regional Housing Finance Corporation,
Single Family Mortgage (GNMA), Alternative
Minimum Tax, 7.500%, 5/01/24 5/01 at 100 AAA 2,480,023
7,020,000 Winter Garden Housing Finance Corporation
(GNMA and FNMA), Alternative Minimum Tax,
6.950%, 10/01/27 4/04 at 103 AAA 7,274,896
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.9% Intermountain Power Agency:
4,500,000 7.500%, 7/01/16 7/96 at 102 Aa 4,618,530
16,145,000 7.200%, 7/01/19 7/97 at 102 Aa 16,847,792
- ----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.6%
Washington Public Power Supply System Nuclear
Project No. 1:
4,000,000 7.400%, 7/01/09 1/00 at 102 Aa 4,366,920
5,000,000 8.000%, 7/01/17 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 5,729,800
Washington Public Power Supply System, Nuclear
Project No. 2:
5,000,000 5.375%, 7/01/11 7/04 at 102 Aa 4,613,900
2,000,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 2,243,340
5,000,000 7.000%, 7/01/12 7/00 at 102 Aa 5,315,800
10,010,000 6.250%, 7/01/12 7/02 at 102 Aa 10,050,140
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
Washington Public Power Supply System, Nuclear
Project No. 3:
$ 24,060,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00 1/00 at 102 Aaa $ 26,634,179
3,935,000 5.375%, 7/01/15 7/03 at 102 Aa 3,534,811
7,560,000 5.500%, 7/01/17 1/00 at 100 Aa 6,861,607
Seattle Metropolitan Municipality Sewer System:
2,160,000 5.450%, 1/01/16 1/03 at 102 Aaa 2,031,998
3,095,000 5.450%, 1/01/17 1/03 at 102 Aaa 2,906,793
2,490,000 5.450%, 1/01/19 1/03 at 102 Aaa 2,316,920
1,800,000 5.450%, 1/01/20 1/03 at 102 Aaa 1,672,343
- ----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.7%
11,080,000 Wisconsin Center District, Junior Dedicated Tax,
5.750%, 12/15/27 12/06 at 101 A 10,681,008
2,100,000 Wisconsin Health and Educational Facilities Authority
(Wausau Hospitals), 6.700%, 8/15/20 2/01 at 102 Aaa 2,193,240
- ----------------------------------------------------------------------------------------------------------------------------------
$688,396,644 Total Investments - (cost $681,007,027) - 97.7% 720,134,651
- ----------------------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.8%
$ 1,700,000 California Statewide Communities Development
Authority (St. Joseph Health System), Certificates
of Participation, Variable Rate Demand Bonds,
3.450%, 7/01/24+ VMIG-1 1,700,000
1,000,000 Massachusetts Dedicated Income Tax, Series 1990E,
Variable Rate Demand Bonds, 3.900%, 12/01/97+ VMIG-1 1,000,000
1,900,000 Metropolitan Nashville Airport Authority, Special
Facilities (American Airlines), Variable Rate
Demand Bonds, 4.050%, 10/01/12+ A-1+ 1,900,000
50,000 New York City Municipal Water Finance Water and
Sewer System Revenue, 1994 G, Variable Rate
Demand Bonds, 4.100%, 6/15/24+ VMIG-1 50,000
500,000 North Carolina Medical Care Commission Hospital
Pooled Financing (Duke University Hospital),
Variable Rate Demand Bonds, 4.150%, 10/01/20+ VMIG-1 500,000
500,000 University of Florida Stadium Capital Improvement,
Variable Rate Demand Bonds, 4.150%, 2/01/20+ VMIG-1 500,000
- ----------------------------------------------------------------------------------------------------------------------------------
$ 5,650,000 Total Temporary Investments - 0.8% 5,650,000
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 11,446,503
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $737,231,154
- ----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 49 $334,548,979 47%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 23 146,960,923 20
PORTFOLIO OF A+ A1 4 24,546,703 3
INVESTMENTS A, A- A, A2, A3 9 83,497,098 12
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 15 107,540,903 15
TEMPORARY Non-rated Non-rated 5 23,040,045 3
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 105 $720,134,651 100%
- -------------------------------------------------------------------------------------------------------------------
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ 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
(Unaudited)
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. (NQU)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.8%
$ 2,265,000 Alaska Housing Finance Corporation (Veterans
Mortgage Program), 7.125%, 12/01/30 6/01 at 102 Aaa $ 2,348,080
6,750,000 Alaska State Housing Finance Corporation,
6.600%, 12/01/23 (Pre-refunded to 12/01/02) 12/02 at 102 Aa 7,207,515
- ----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8%
2,510,000 Maricopa County Industrial Development Authority,
Single Family Mortgage, 7.500%, 8/01/12 8/01 at 102 Aa 2,626,414
5,715,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 A- 6,366,853
- ----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.0%
4,825,000 Arkansas Development Finance Authority, Single
Family Mortgage, 8.000%, 8/15/11 8/01 at 103 Aa 5,196,139
6,500,000 Arkansas Development Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.700%, 7/01/27 7/05 at 102 AAA 6,638,580
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 8.4%
3,000,000 California Health Facilities Financing Authority
(Kaiser Permanente), 5.600%, 5/01/33 5/03 at 102 Aa3 2,721,990
4,310,000 California Housing Finance Agency, Home Mortgage,
Alternative Minimum Tax, 7.050%, 8/01/27 8/01 at 102 Aa 4,429,732
3,500,000 California Public Works Board (California State
University), 6.625%, 10/01/10 10/02 at 102 A 3,719,905
17,000,000 California State Public Works Board, Department of
Corrections (California State Prison of Monterey
County-Soledad II), 7.000%, 11/01/19 11/04 at 102 A 18,533,230
Brea Public Financing Authority, Tax Allocation:
10,580,000 7.000%, 8/01/15 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 11,926,517
4,420,000 7.000%, 8/01/15 8/01 at 102 Aaa 4,804,982
5,000,000 Los Angeles Community Redevelopment Agency,
Tax Allocation (Central Business District),
6.750%, 7/01/10 7/96 at 102 A- 5,076,250
Los Angeles Department of Water and Power:
7,550,000 5.400%, 11/15/31 11/03 at 102 Aa 6,790,772
5,000,000 6.500%, 4/15/32 4/02 at 102 Aa 5,160,950
12,305,000 Northern California Power Agency, 7.150%, 7/01/24 7/98 at 102 A 13,119,099
2,000,000 Redwood City Public Finance Authority,
7.250%, 7/15/11 7/01 at 102 A- 2,154,000
10,000,000 San Diego (San Diego Gas and Electric Company),
5.900%, 9/01/18 9/03 at 102 Aaa 9,870,800
9,190,000 San Jose Financing Authority (Convention Center),
6.400%, 9/01/22 9/01 at 102 A1 9,287,965
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 3,375,000 Southern California Home Financing Authority,
Single Family Mortgage (GNMA and FNMA),
Alternative Minimum Tax, 7.350%, 9/01/24 3/01 at 102 AAA $ 3,504,533
- ----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.3%
4,690,000 Colorado Housing Finance Authority, Multi-Family
Insured Mortgage, 6.900%, 10/01/21 5/96 at 100 Aa 4,692,814
City and County of Denver Airport System,
Alternative Minimum Tax:
4,000,000 7.300%, 11/15/00 No Opt. Call Baa 4,346,720
1,500,000 6.350%, 11/15/01 No Opt. Call Baa 1,575,030
4,000,000 7.750%, 11/15/21 11/01 at 102 Baa 4,388,360
12,910,000 8.750%, 11/15/23 11/01 at 102 Baa 15,365,224
9,535,000 8.500%, 11/15/23 11/00 at 102 Baa 10,992,234
17,350,000 8.000%, 11/15/25 11/00 at 102 Baa 19,316,970
4,140,000 8.000%, 11/15/25 11/01 at 100 Baa 4,610,759
4,850,000 7.000%, 11/15/25 11/01 at 100 Baa 4,930,753
5,110,000 Pueblo County (Parkview Episcopal Medical Center),
8.300%, 9/01/11 (Pre-refunded to 9/01/01) 9/01 at 100 Baa1 5,972,772
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.2%
5,250,000 Dade County Industrial Development Authority,
Solid Waste (Florida Power and Light Company),
Alternative Minimum Tax, 7.150%, 2/01/23 2/01 at 102 A2 5,655,983
Palm Beach County Health Facilities Authority
(JFK Medical Center):
8,195,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 BBB 9,205,525
5,675,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 N/R 6,374,784
8,485,000 St. Lucie County, Solid Waste Disposal (Florida
Power and Light Company), Alternative Minimum
Tax, 7.150%, 2/01/23 2/01 at 102 A2 9,159,642
Tampa Capital Improvement Program:
1,665,000 8.000%, 10/01/02 10/98 at 100 Aa 1,787,611
5,830,000 8.250%, 10/01/18 10/98 at 100 AA 6,222,825
- ----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.2%
9,000,000 Georgia Municipal Electric Authority, 8.125%, 1/01/17 1/98 at 102 A 9,627,210
Clayton County Hospital Authority (Southern
Regional Medical Center):
2,900,000 6.500%, 8/01/10 8/01 at 102 Aaa 3,109,119
4,500,000 7.000%, 8/01/13 8/01 at 102 Aaa 4,876,875
3,000,000 Clayton County Housing Authority, 8.125%, 12/01/05
(Mandatory put 12/01/97) No Opt. Call Baa1 3,081,150
15,900,000 Fulton-DeKalb Hospital Authority, 6.900%, 1/01/20
(Pre-refunded to 1/01/01) 1/01 at 102 Aaa 17,650,590
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS - 7.8%
$ 6,635,000 Illinois Development Finance Authority, Multi-Family
Housing (Town and Garden Apartments Project),
Alternative Minimum Tax, 7.800%, 3/01/06 3/02 at 102 BBB+ $ 6,954,077
14,500,000 Illinois Health Facilities Authority (Northwestern
Memorial Hospital), 6.750%, 8/15/11 8/01 at 102 Aa 15,137,275
3,000,000 Illinois Health Facilities Authority (Sherman Hospital),
6.750%, 8/01/21 8/01 at 102 Aaa 3,140,250
5,265,000 Illinois Health Facilities Authority (Rockford
Memorial Hospital), 6.000%, 8/15/21 8/01 at 100 Aaa 5,186,973
2,840,000 Illinois Housing Development Authority (Garden
House of Maywood), 7.000%, 9/01/18 9/02 at 102 A 2,953,998
Central Lake County Joint Action Water Agency:
6,000,000 7.000%, 5/01/19 5/00 at 102 Aaa 6,629,160
10,000,000 7.000%, 5/01/20 5/01 at 102 Aaa 11,175,700
Chicago O'Hare International Airport (United
Airlines):
6,665,000 8.850%, 5/01/18 11/00 at 103 Baa2 7,551,845
7,610,000 8.200%, 5/01/18 5/99 at 103 Baa2 8,250,153
24,430,000 Cook County General Obligation, 6.750%, 11/01/18
(Pre-refunded to 11/01/01) 11/01 at 102 Aaa 27,243,603
- ----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.3%
5,905,000 Indiana Health Facilities Financing Authority
(Community Hospitals of Indiana), 7.000%, 7/01/11
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 6,618,619
4,000,000 Indianapolis Local Public Improvement Bond Bank,
6.500%, 2/01/22 2/98 at 100 A+ 4,039,920
5,125,000 Petersburg Pollution Control (Indianapolis Power
and Light Company), 6.625%, 12/01/24 12/04 at 102 Aa2 5,463,199
- ----------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
4,500,000 Polk County Insured Health Facilities (Mercy Health
Center of Central Iowa), 6.750%, 11/01/15 11/01 at 101 Aaa 4,820,580
- ----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.5%
Merriam (Shawnee Mission Medical Center):
7,380,000 7.250%, 9/01/11 9/01 at 102 A- 7,713,281
10,000,000 7.250%, 9/01/21 9/01 at 102 A- 10,287,200
- ----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 4.4%
3,000,000 Kentucky Development Finance Authority (St. Claire
Medical Center), 7.125%, 9/01/21 (Pre-refunded
to 9/01/01) 9/01 at 102 N/R 3,341,940
10,225,000 Kentucky Housing Corporation, Alternative
Minimum Tax, 6.625%, 7/01/26 1/05 at 102 Aaa 10,423,467
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
KENTUCKY (CONTINUED)
$ 6,000,000 Boone County Collateralized Pollution Control
(Dayton Power and Light Company),
6.500%, 11/15/22 11/02 at 102 Aa3 $ 6,336,600
10,000,000 Danville Multi-City Lease (Louisville and Jefferson
County Metropolitan Sewer), 6.800%, 3/01/19
(Pre-refunded to 3/01/02) 3/02 at 102 Aaa 11,186,000
2,965,000 Greater Kentucky Housing Assistance Corporation
(FHA-Insured), 7.625%, 1/01/25 1/00 at 102 Aaa 3,140,765
9,100,000 Jefferson County Multi-Family Housing (Cantor
Chase Project), 6.750%, 10/01/21 (Mandatory
put 10/01/98) 10/96 at 100 Baa1 9,154,600
9,030,000 Owensboro Water System, 6.250%, 9/15/17 9/02 at 100 Aaa 9,269,837
- ----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.8%
Maryland Community Development Administration,
Department of Housing and Community
Development, Alternative Minimum Tax:
13,235,000 7.450%, 4/01/20 4/01 at 102 Aa 13,838,913
4,320,000 7.450%, 4/01/32 4/01 at 102 Aa 4,506,408
3,385,000 Maryland Community Development Administration,
Multi-Family Housing, 7.100%, 5/15/28 5/01 at 102 Aa 3,498,161
- ----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.4%
Massachusetts Bay Transportation Authority:
10,225,000 7.000%, 3/01/11 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 11,420,200
19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 21,891,044
15,000,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), 9.000%, 7/01/15 7/01 at 103 N/R 16,267,950
3,300,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), Alternative Minimum
Tax, 9.250%, 7/01/15 7/01 at 103 N/R 3,594,426
- ----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.4%
5,000,000 Michigan Hospital Finance Authority (Detroit
Medical Center), 7.500%, 8/15/11 8/01 at 102 A 5,388,150
17,875,000 Michigan Strategic Fund (The Detroit Edison
Company), 6.875%, 12/01/21 12/01 at 102 Aaa 19,274,970
8,500,000 Michigan Strategic Fund (Waste Management, Inc.),
Alternative Minimum Tax, 6.625%, 12/01/12 12/02 at 102 A1 9,023,345
7,000,000 Grand Rapids Water Supply System, 6.250%, 1/01/11 1/01 at 102 Aaa 7,251,650
- ----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.0%
4,935,000 Minnesota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax,
6.950%, 7/01/26 1/04 at 102 AA+ 5,102,691
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA (CONTINUED)
$ 3,655,000 Dakota and Washington Counties and Anoka
Housing Authority (GNMA), Alternative
Minimum Tax, 8.450%, 9/01/19 No Opt. Call Aaa $ 4,651,097
2,470,000 Washington County Housing and Redevelopment
Authority, Multi-Family Housing (FHA-Insured),
Alternative Minimum Tax, 7.650%, 8/01/32 8/01 at 102 AAA 2,630,772
- ----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6%
3,420,000 Canton Housing Development Corporation (Canton
Estates), Multi-Family Mortgage, 7.750%, 8/01/24 No Opt. Call AAA 4,070,176
1,250,000 Charter Mortgage Corporation (Church Garden
Project), Multi-Family Mortgage, 7.750%, 8/01/21 8/01 at 100 AAA 1,466,788
1,370,000 Pearl Housing Development Corporation (Rose
Garden Project), Multi-Family Mortgage,
7.750%, 8/01/22 2/01 at 100 AAA 1,433,006
- ----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.9%
Missouri Health and Educational Facilities Authority
(Heartland Health Systems):
3,070,000 7.625%, 10/01/00 10/99 at 102 1/2 BBB+ 3,404,569
6,500,000 8.125%, 10/01/10 10/99 at 102 1/2 BBB+ 7,309,705
Jackson County Industrial Development Authority
(Saint Joseph Health Center):
5,730,000 6.500%, 7/01/12 7/02 at 102 Baa1 5,812,627
5,605,000 7.000%, 7/01/22 7/02 at 102 Baa1 5,747,703
- ----------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.6%
7,000,000 Forsyth Pollution Control (Puget Sound Power and
Light Company), 7.050%, 8/01/21 8/01 at 102 Aaa 7,699,860
- ----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6%
Nebraska Investment Finance Authority, Single
Family Mortgage, Alternative Minimum Tax:
11,000,000 6.800%, 3/01/35 3/05 at 101 1/2 AAA 11,278,300
8,000,000 6.450%, 3/01/35 3/05 at 101 1/2 AAA 8,054,880
- ----------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.6%
2,625,000 New Hampshire Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
8.500%, 7/01/14 7/98 at 103 Aa 2,770,950
4,660,000 New Hampshire Housing Finance Authority, Single
Family Mortgage, 7.100%, 1/01/23 7/01 at 102 Aa 4,863,689
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW JERSEY - 1.1%
$ 13,000,000 Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resource Recovery
System), 7.250%, 12/01/10 12/01 at 102 BBB+ $ 13,355,030
- -------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.5%
21,075,000 New York Local Government Assistance Corporation,
7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 24,059,220
4,400,000 New York State Medical Care Finance Agency,
6.200%, 8/15/15 8/05 at 102 Aa 4,377,472
4,250,000 New York State Medical Care Facilities Finance
Agency (St. Charles Hospital), 6.300%, 8/15/25 8/05 at 102 Aa 4,285,360
8,000,000 New York State Medical Care Facilities Finance
Agency (New York Hospital) (FHA-Insured),
6.500%, 8/15/29 2/05 at 102 Aaa 8,331,600
5,000,000 New York State Medical Care Facilities Finance
Agency (Brookdale Hospital Medical Center),
6.850%, 2/15/17 2/05 at 102 Baa 5,160,950
8,000,000 New York State Thruway Authority, 6.000%, 1/01/25 1/05 at 102 Aaa 7,993,760
11,750,000 Dormitory Authority of the State of New York
(State University), 7.700%, 5/15/12 (Pre-refunded
to 5/15/00) 5/00 at 102 Aaa 13,307,815
13,000,000 Dormitory Authority of the State of New York,
Educational Facilities (State University),
7.400%, 5/15/01 5/00 at 102 Baa1 14,050,530
8,325,000 Dormitory Authority of the State of New York
(Menorah Campus), 7.400%, 2/01/31 8/01 at 102 AA 9,144,347
2,190,000 Niagara Falls Housing and Commercial Rehabilitation
Corporation (FHA-Insured), Assisted Project,
7.350%, 8/01/23 8/03 at 100 AA 2,441,084
New York City General Obligation:
5,500,000 3.000%, 8/15/02 No Opt. Call Baa1 4,702,720
14,270,000 6.400%, 8/01/03 8/02 at 101 1/2 Baa1 14,726,925
6,000,000 6.750%, 10/01/17 10/02 at 101 1/2 Baa1 6,093,720
2,090,000 7.000%, 2/01/18 2/02 at 101 1/2 Baa1 2,179,013
5,500,000 7.250%, 8/15/19 8/04 at 101 Baa1 5,885,825
6,750,000 6.625%, 2/15/25 2/05 at 101 Baa1 6,780,105
14,190,000 New York City Municipal Water Finance Authority,
5.875%, 6/15/25 6/05 at 101 Aaa 14,013,335
3,435,000 Penfield-Crown Oak Housing Development
Corporation, FHA Insured (Crown-Oak Estates),
7.350%, 8/01/23 2/03 at 100 AAA 3,613,105
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA - 0.9%
$ 10,500,000 North Carolina Eastern Municipal Power Agency,
6.250%, 1/01/03 1/02 at 102 A $ 10,618,545
- ----------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.0%
6,945,000 Ohio Housing Finance Agency, Residential Mortgage,
Alternative Minimum Tax, 6.625%, 3/01/26 3/05 at 102 AAA 7,059,593
4,800,000 Butler County Hospital Facilities (Fort Hamilton-
Hughes Memorial Hospital), 7.500%, 1/01/10 1/02 at 102 Baa 5,089,584
- ----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 5.2%
17,970,000 Oklahoma County Home Finance Authority, Single
Family Mortgage, 8.750%, 7/01/12 7/01 at 102 A1 18,920,972
17,510,000 Pottawatomie County Home Finance Authority, Single
Family Mortgage, 8.625%, 7/01/10 No Opt. Call Aaa 22,875,239
10,000,000 Tulsa Municipal Airport Trust (American Airlines),
7.375%, 12/01/20 12/00 at 102 Baa2 10,585,700
10,100,000 Tulsa Municipal Airport (AMRCorporation),
Alternative Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 10,825,483
- ----------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.6%
8,125,000 Hillsboro Hospital Facility Authority (Quality
Healthcare), 5.750%, 10/01/12 10/04 at 102 BBB+ 7,647,656
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.6%
Falls Township Hospital Authority (Delaware Valley
Medical Center):
4,525,000 6.900%, 8/01/11 8/02 at 102 AAA 4,642,922
3,000,000 7.000%, 8/01/22 8/02 at 102 AAA 3,114,570
- ----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.5%
5,260,000 Rhode Island Housing and Mortgage Finance
Corporation, 8.250%, 10/01/08 4/98 at 102 A1 5,557,243
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.6%
6,500,000 Lexington County Health Service District,
6.750%, 10/01/18 10/01 at 102 Aaa 6,909,890
- ----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.3%
4,645,000 Metropolitan Government, Nashville and Davidson
County, Water and Sewer System, 7.000%, 1/01/14 5/96 at 102 A1 4,747,980
10,300,000 Metropolitan Nashville Airport Authority,
6.625%, 7/01/07 7/01 at 102 Aaa 11,195,688
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS - 6.3%
$ 14,360,000 Alliance Airport Authority (American Airlines),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 $ 15,271,573
Arlington Independent School District, General
Obligation:
11,635,000 0.000%, 2/15/11 2/05 at 71 15/16 Aaa 4,756,970
13,985,000 0.000%, 2/15/14 2/05 at 58 11/16 Aaa 4,643,160
5,000,000 Brazos River Authority (Houston Lighting and Power
Project), 7.750%, 10/01/15 10/98 at 102 A3 5,362,300
5,600,000 Dallas-Fort Worth International Airport (American
Airlines, Inc.), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 5,952,072
12,000,000 Fort Worth Housing Finance Corporation,
8.500%, 10/01/11 10/01 at 103 Aa 13,027,200
7,765,000 Houston Airport System, Subordinate Lien,
6.625%, 7/01/22 7/01 at 102 Aaa 8,308,084
18,500,000 Houston Water and Sewer System, Junior Lien,
6.375%, 12/01/17 12/01 at 102 Aaa 19,126,965
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.2%
2,065,000 Intermountain Power Agency, 7.000%, 7/01/21 7/99 at 102 Aa 2,193,195
- ----------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.7%
Vermont Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax:
6,405,000 7.300%, 5/01/25 11/01 at 102 A1 6,625,332
1,595,000 6.875%, 5/01/25 11/01 at 102 A1 1,623,455
- ----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.3%
10,500,000 Virginia Housing Development Authority,
7.150%, 1/01/33 1/02 at 102 Aa1 11,021,955
3,860,000 Roanoke Industrial Development Authority (Roanoke
Memorial Hospitals), 6.500%, 7/01/25
(Pre-refunded to 7/01/00) 7/00 at 100 Aaa 4,141,857
- ----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.4%
4,750,000 Washington Health Care Facilities Authority (Yakima
Valley Memorial Hospital), 7.250%, 1/01/21
(Pre-refunded to 1/01/01) 1/01 at 102 A 5,323,278
Washington Public Power Supply System, Nuclear
Project No. 2:
4,000,000 5.375%, 7/01/11 7/04 at 102 Aa 3,691,120
17,100,000 7.000%, 7/01/12 7/00 at 102 Aa 18,180,036
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 14,500,000 Washington Public Power Supply System, Nuclear
Project No. 3, 7.400%, 7/01/09 1/00 at 102 Aa $ 15,830,085
10,705,000 Chelan County Public Utility District No. 1
(Columbia River-Rock Island Hydroelectric System),
6.375%, 6/01/29 6/96 at 102 A1 10,737,436
3,010,000 Camas School District No. 117, General Obligation,
6.000%, 12/01/14 12/05 at 100 Aaa 3,050,304
4,185,000 Douglas County Public Utility District No. 1, Wells
Hydroelectric Project, 8.750%, 9/01/18 9/06 at 106 A+ 5,279,001
12,415,000 King County School District No. 210, Federal Way,
General Obligation, 6.950%, 12/01/11 12/03 at 100 A 14,001,512
Municipality of Metropolitan Seattle, Limited Sales
Tax, General Obligation:
9,810,000 6.625%, 1/01/11 1/97 at 102 Aa 10,069,474
10,310,000 6.875%, 1/01/20 1/97 at 102 Aa 10,582,905
4,000,000 North Thurston School District No. 3, General
Obligation, 6.500%, 12/01/09 12/02 at 100 A 4,239,760
- ----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6%
10,820,000 Wisconsin Health and Educational Facilities
Authority (Novus Health Group), 6.750%, 12/15/20 12/01 at 102 Aaa 11,380,691
7,000,000 Wisconsin Housing and Economic Development
Authority, 6.850%, 11/01/12 1/02 at 102 A1 7,282,240
- ----------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.6%
2,390,000 Wyoming Community Development Authority,
Single Family Mortgage, 7.400%, 6/01/31 6/01 at 102 Aa 2,518,701
4,500,000 Wyoming Community Development Authority,
Single Family Mortgage, Alternative Minimum
Tax, 7.250%, 6/01/21 11/01 at 103 Aa 4,693,634
- ----------------------------------------------------------------------------------------------------------------------------------
$1,126,855,000 Total Investments - (cost $1,113,605,765) - 98.4% 1,185,905,604
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 19,845,794
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,205,751,398
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 51 $ 447,212,541 38%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 33 220,411,216 19
PORTFOLIO OF A+ A1 11 83,124,889 7
INVESTMENTS: A, A- A, A2, A3 18 139,300,196 12
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 34 266,277,662 22
Non-rated Non-rated 4 29,579,100 2
- -------------------------------------------------------------------------------------------------------------------
TOTAL 151 $1,185,905,604 100%
- -------------------------------------------------------------------------------------------------------------------
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. (NPF)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.0%
$ 4,360,000 Alabama Higher Education Loan Corporation,
Student Loan, Alternative Minimum Tax,
5.850%, 9/01/04 No Opt. Call Aaa $ 4,487,007
- ----------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.5%
1,875,000 Anchorage Home Mortgage, 8.000%, 3/01/09 3/02 at 102 AAA 2,028,038
- ----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.4%
5,500,000 Arizona Educational Loan Marketing Corporation,
Alternative Minimum Tax, 6.950%, 3/01/01 No Opt. Call A 5,930,705
3,650,000 Maricopa County Unified School District No. 41,
General Obligation, 6.100%, 7/01/14 (Pre-refunded
to 7/01/04) 7/04 at 100 Aaa 3,925,137
12,255,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 A- 13,652,805
- ----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.4%
2,000,000 Arkansas Development Finance Authority, Single
Family Housing, Alternative Minimum Tax,
6.550%, 7/01/18 7/05 at 102 AAA 2,039,440
1,400,000 Arkansas Development Finance Authority, Single
Family Housing, 6.600%, 7/01/17 7/05 at 102 AAA 1,446,774
448,822 Drew County Public Facilities Board, Single Family
Housing, 7.900%, 8/01/11 8/03 at 103 Aaa 487,138
1,310,000 Greene County Residential Housing Board,
7.250%, 1/01/10 1/02 at 103 Aa 1,384,382
618,038 Stuttgart Public Facilities Board, Single Family
Housing, 7.900%, 9/01/11 9/03 at 103 Aaa 672,017
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 1.9%
33,000,000 Foothill/Eastern Transportation Corridor Agency,
0.000%, 1/01/17 No Opt. Call BBB- 8,234,820
- ----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.4%
Colorado Health Facilities Authority (National
Jewish Center):
1,500,000 6.600%, 2/15/02 No Opt. Call BBB- 1,492,695
1,250,000 6.875%, 2/15/12 2/02 at 102 BBB- 1,239,150
3,000,000 7.100%, 2/15/22 2/02 at 102 BBB- 2,920,110
550,000 Denver Airport System, Alternative Minimum Tax,
8.100%, 11/15/00 No Opt. Call Baa 614,405
- ----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6%
2,275,000 Connecticut Housing Finance Authority, Alternative
Minimum Tax, 6.900%, 5/15/20 5/04 at 102 Aa 2,344,638
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA - 3.1%
$ 6,250,000 District of Columbia (National Rehabilitation
Hospital), 7.125%, 11/01/19 (Pre-refunded
to 11/01/99) 11/99 at 102 Aaa $ 6,890,688
2,000,000 District of Columbia (Washington Hospital Center),
7.000%, 8/15/05 8/02 at 102 Baa1 2,076,020
District of Columbia Housing Finance Agency
(FHA-Insured):
920,000 7.200%, 9/01/12 9/02 at 102 Aa 972,946
3,505,000 7.250%, 3/01/24 9/02 at 102 Aa 3,676,289
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.4%
1,880,000 Florida State Board of Education, 6.700%, 6/01/22
(Pre-refunded to 6/01/01) 6/01 at 101 Aaa 2,071,252
4,000,000 Dade County Aviation, 5.750%, 10/01/18 10/06 at 102 Aaa 3,908,680
- ----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6%
2,000,000 Georgia Municipal Electric Authority,
7.250%, 1/01/24 No Opt. Call Aaa 2,408,040
- ----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 17.2%
Illinois Development Finance Authority, Multi-Family
Housing:
600,000 7.650%, 7/01/07 1/02 at 105 AAA 664,662
5,270,000 7.650%, 12/31/31 1/02 at 105 AAA 5,743,193
9,035,000 Illinois Development Finance Authority, Multi-Family
Housing (Town and Garden Apartments Project),
Alternative Minimum Tax, 7.800%, 3/01/06 3/02 at 102 BBB+ 9,469,493
865,000 Illinois Health Facilities Authority (Evangelical
Hospitals), 6.750%, 4/15/12 4/02 at 102 AA- 889,851
7,400,000 Illinois Health Facilities Authority, 7.000%, 7/01/12 7/02 at 102 Baa 7,352,344
4,810,000 Illinois Housing Development Authority (Garden
House of Maywood), 7.000%, 9/01/18 9/02 at 102 A 5,003,073
865,000 Illinois Housing Development Authority, Elderly
Housing (Morningstar North), 6.600%, 1/01/07 1/03 at 102 A 904,928
Illinois Sales Tax:
2,000,000 6.800%, 6/15/10 6/99 at 102 AAA 2,106,420
6,390,000 6.800%, 6/15/12 (Pre-refunded to 6/15/00) 6/00 at 102 AAA 7,031,173
4,500,000 Chicago General Obligation (Central Public Library
Project), 6.850%, 1/01/17 (Pre-refunded
to 7/01/02) 7/02 at 101 1/2 Aaa 5,047,065
4,900,000 Chicago Tax Increment (Stockyards Industrial
Redevelopment), 9.250%, 1/01/14 No Opt. Call N/R 5,398,624
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 8,075,000 Cicero General Obligation, Tax Increment,
8.125%, 12/01/12 12/04 at 102 N/R $ 8,758,387
2,000,000 Onterie Center Housing Finance Corporation
(FHA-Insured), 7.050%, 7/01/27 7/02 at 102 Aaa 2,103,800
2,835,000 Sugar Grove Village Waterworks and Sewerage
System, 7.500%, 5/01/17 5/02 at 102 N/R 2,942,673
Wood River Township Hospital General Obligation:
6,000,000 6.625%, 2/01/14 2/04 at 102 BBB 6,124,380
5,945,000 6.500%, 2/01/14 2/04 at 102 BBB 6,014,794
- ----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.2%
2,000,000 Indianapolis Exempt Facility (Mid-America Energy
Resources, Inc.), Alternative Minimum Tax,
7.250%, 12/01/11 6/99 at 102 AA- 2,068,980
2,860,000 PHM Elementary/Middle School Building
Corporation, 6.300%, 1/15/09 No Opt. Call A 3,044,012
- ----------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
1,655,000 Iowa Student Loan Liquidity Corporation, Alternative
Minimum Tax, 5.750%, 12/01/06 12/02 at 102 Aaa 1,650,366
- ----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.0%
4,000,000 Hutchinson Single Family Housing,
8.875%, 12/01/12 6/02 at 103 A 4,306,760
- ----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.2%
5,000,000 Kentucky Rural Economic Development Authority
(Donnelly Corporation), Alternative Minimum
Tax, 8.125%, 7/01/12 7/02 at 102 N/R 5,117,150
- ----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.3%
1,310,000 Louisiana Housing Finance Agency (St. Dominic
Assisted Care Facility), 6.850%, 9/01/25 9/05 at 103 AAA 1,384,840
- ----------------------------------------------------------------------------------------------------------------------------------
MAINE - 2.0%
8,470,000 Maine Educational Loan Marketing Corporation,
Alternative Minimum Tax, 6.250%, 11/01/06 No Opt. Call A 8,827,519
- ----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.4%
6,000,000 Anne Arundel County, Multi-Family Housing
(Woodside Project), Alternative Minimum Tax,
7.450%, 12/01/24 (Mandatory put 12/01/03) No Opt. Call BBB+ 6,270,960
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS - 6.4%
$ 2,450,000 Massachusetts Health and Educational Facilities
Authority (New England Deaconess Hospital),
6.875%, 4/01/22 4/02 at 102 A $ 2,560,667
3,875,000 Massachusetts Health and Educational Facilities
Authority (Youville Hospital), 6.000%, 2/15/25 2/04 at 102 Aa 3,843,109
9,070,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), Alternative Minimum
Tax, 9.250%, 7/01/15 7/01 at 103 N/R 9,879,225
Massachusetts Municipal Wholesale Electric Company:
945,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 1,016,820
45,000 8.750%, 7/01/18 7/97 at 102 A 51,909
9,780,000 Massachusetts Water Resources Authority,
6.750%, 7/15/12 (Pre-refunded to 7/15/02) 7/02 at 102 Aaa 10,969,150
- ----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.1%
2,000,000 Jackson County Hospital Finance Authority (W. A.
Foote Memorial Hospital), 5.250%, 6/01/23 6/03 at 102 Aaa 1,789,280
2,500,000 Wayne County Building Authority, Limited Tax,
8.000%, 3/01/17 (Pre-refunded to 3/01/02) 3/02 at 102 Baa 2,924,600
- ----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.7%
11,180,000 Northwest Minnesota Multi-County Housing and
Redevelopment Authority, 8.125%, 10/01/26 10/04 at 102 N/R 11,620,604
- ----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5%
8,610,000 Mississippi Home Corporation, 0.000%, 9/15/16 3/04 at 41 21/32 A 2,063,387
- ----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 4.2%
2,350,000 Nebraska Higher Education Loan Program,
Alternative Minimum Tax, 6.250%, 6/01/18 No Opt. Call Aa 2,312,541
4,145,000 Grand Island Electric System, 6.100%, 9/01/12 9/96 at 101 A1 4,146,409
10,935,000 Omaha Public Power District, 6.500%, 2/01/17
(Pre-refunded to 2/01/02) 2/02 at 101 1/2 AAA 12,003,896
- ----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.2%
745,000 Nevada Housing Division, Alternative Minimum Tax,
8.050%, 10/01/19 No Opt. Call AA 753,970
- ----------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.5%
9,200,000 New Hampshire Industrial Development Authority,
Resource Recovery (SES Concord Project),
8.500%, 1/01/09 1/98 at 102 A+ 9,810,328
1,440,000 New Hampshire Municipal Bond Bank (Coe-Brown
Northwood Academy), 7.250%, 5/01/09 No Opt. Call N/R 1,473,494
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW JERSEY - 0.7%
$ 3,000,000 New Jersey Economic Development Authority
(Bridgewater Resources, Inc.), Alternative Minimum
Tax, 8.375%, 11/01/04 No Opt. Call N/R $ 3,110,460
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.2%
5,000,000 New York Local Government Assistance Corporation,
7.500%, 4/01/20 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 5,708,000
6,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-Insured,
6.200%, 8/15/22 8/02 at 102 AAA 6,020,520
8,450,000 New York State Urban Development Corporation,
State Facilities, 7.500%, 4/01/20 (Pre-refunded
to 4/01/01) 4/01 at 102 Aaa 9,626,494
6,500,000 Dormitory Authority of the State of New York (City
University), 7.625%, 7/01/20 (Pre-refunded
to 7/01/00) 7/00 at 102 Aaa 7,354,490
New York City General Obligation:
3,500,000 7.500%, 2/01/01 No Opt. Call Baa1 3,810,940
4,000,000 9.500%, 8/01/02 8/01 at 101 1/2 Baa1 4,717,680
1,550,000 6.500%, 8/01/02 No Opt. Call Baa1 1,630,073
1,000,000 7.000%, 8/01/04 No Opt. Call Baa1 1,083,150
3,080,000 6.600%, 8/01/04 No Opt. Call Baa1 3,249,770
2,075,000 8.400%, 11/15/05 (Pre-refunded to 11/15/01) 11/01 at 101 1/2 Aaa 2,479,293
925,000 8.400%, 11/15/05 11/01 at 101 1/2 A- 1,035,760
2,000,000 6.625%, 8/01/12 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 2,230,480
- ----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.5%
2,130,000 North Carolina Housing Finance Agency, Multi-
Family Housing, 6.900%, 7/01/24 7/02 at 102 Aa 2,207,639
- ----------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.9%
14,570,000 Ohio Housing Finance Agency, Single Family
Housing (GNMA), Alternative Minimum Tax,
7.650%, 3/01/29 9/99 at 102 AAA 15,298,791
8,500,000 Akron-Bath-Copley Joint Township Hospital District
(Akron City Hospital), 8.875%, 11/15/07
(Pre-refunded to 11/15/97) 11/97 at 102 Aaa 9,288,970
985,000 Toledo-Lucas County Port Authority, Alternative
Minimum Tax, 7.750%, 5/15/07 5/00 at 102 N/R 1,022,558
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.4%
2,000,000 Falls Township Hospital Authority (Delaware Valley
Medical Center), 7.000%, 8/01/22 8/02 at 102 AAA 2,076,380
1,365,000 Northampton County Hospital Authority (Eastern
Hospital), 6.900%, 1/01/02 No Opt. Call BBB 1,410,591
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 7,690,000 Philadelphia Water and Sewer System,
7.350%, 9/01/04 No Opt. Call AAA $ 8,522,904
Philadelphia Hospital and Higher Educational
Facilities Authority (Children's Seashore House):
2,500,000 7.000%, 8/15/12 8/02 at 102 A- 2,613,825
4,450,000 7.000%, 8/15/22 8/00 at 100 A- 4,626,398
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.9%
8,000,000 South Dakota Student Loan Assistance Corporation,
Alternative Minimum Tax, 7.400%, 8/01/99 No Opt. Call A 8,320,640
- ----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 3.8%
4,402,241 Texas General Services Commission, 7.500%, 9/01/22 9/97 at 102 A 4,290,733
9,500,000 Harris County Health Facilities Development
Corporation, 7.375%, 12/01/25 (Mandatory
put 12/01/98) 11/96 at 100 1/2 Aa2 9,631,670
2,345,000 Victoria Housing Finance Corporation, Single Family
Housing, 8.125%, 1/01/11 No Opt. Call Aaa 2,492,407
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4%
1,500,000 Intermountain Power Agency, 7.750%, 7/01/17
(Pre-refunded to 7/01/96) 7/96 at 102 Aaa 1,540,185
- ----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.0%
5,000,000 Virginia Housing Development Authority,
7.100%, 1/01/22 1/02 at 102 AA+ 5,264,550
3,200,000 Suffolk Redevelopment Authority, Multi-Family
Housing (Chase Heritage Project), 7.000%, 7/01/24
(Mandatory put 7/01/04) 7/02 at 104 Baa3 3,353,440
- ----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.2%
9,500,000 Washington General Obligation, 6.250%, 2/01/11 No Opt. Call Aa 10,138,115
2,500,000 Washington Health Care Facilities Authority (Sacred
Heart Medical Center Spokane), 6.875%, 2/15/12 2/02 at 102 AA- 2,620,800
3,000,000 Washington Public Power Supply System, Nuclear
Project No. 1, 7.500%, 7/01/07 7/99 at 102 Aa 3,239,370
2,000,000 Washington Public Power Supply System, Nuclear
Project No. 3, 7.375%, 7/01/04 7/00 at 102 Aa 2,182,240
- ----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.5%
2,000,000 West Virginia Housing Development Fund,
Alternative Minimum Tax, 7.200%, 11/01/20 5/02 at 102 Aa1 2,083,760
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WISCONSIN - 2.1%
$ 5,950,000 Wisconsin Housing and Economic Development
Authority, 6.850%, 11/01/12 1/02 at 102 A1 $ 6,189,904
2,985,000 Silver Lake Sanitary District Sewer System,
8.000%, 10/01/18 10/02 at 100 N/R 3,114,310
- ---------------------------------------------------------------------------------------------------------------------------------
WYOMING - 1.0%
4,000,000 Wyoming Community Development Authority,
Alternative Minimum Tax, 7.750%, 6/01/09 11/99 at 103 Aa 4,200,800
- ---------------------------------------------------------------------------------------------------------------------------------
$434,754,101 Total Investments - (cost $407,264,594) - 98.2% 428,136,102
- ---------------------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 400,000 Massachusetts Dedicated Income Tax, Variable Rate
Demand Bonds, 3.900%, 12/01/97+ VMIG-1 400,000
600,000 New Jersey Economic Development Authority
(Bayonne/IMTT Project), Variable Rate Demand
Bonds, 3.750%, 12/01/27+ VMIG-1 600,000
- ---------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 Total Temporary Investments - 0.2% 1,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 6,696,433
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $435,832,535
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 35 $154,513,790 36%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 18 59,815,650 14
PORTFOLIO OF A+ A1 3 20,146,641 5
INVESTMENTS A, A- A, A2, A3 15 67,233,121 16
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 19 73,989,415 17
TEMPORARY Non-rated Non-rated 10 52,437,485 12
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 100 $428,136,102 100%
- -------------------------------------------------------------------------------------------------------------------
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ 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
(Unaudited)
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $ 771,798,925 $ 720,134,651 $1,185,905,604 $ 428,136,102
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 3,800,000 5,650,000 -- 1,000,000
Cash 64,201 176,125 1,095,875 211,728
Receivables:
Interest 16,220,963 14,323,702 24,333,007 8,293,661
Investments sold 152,481 389,090 265,000 180,000
Other assets 90,503 50,681 96,884 95,395
-------------- -------------- -------------- --------------
Total assets 792,127,073 740,724,249 1,211,696,370 437,916,886
-------------- -------------- -------------- --------------
LIABILITIES
Accrued expenses:
Management fees (note 6) 405,370 379,350 612,653 227,289
Other 89,592 191,721 324,381 103,001
Preferred share dividends payable 300,760 101,480 469,784 93,888
Common share dividends payable 3,080,192 2,820,544 4,538,154 1,660,173
-------------- -------------- -------------- --------------
Total liabilities 3,875,914 3,493,095 5,944,972 2,084,351
-------------- -------------- -------------- --------------
Net assets (note 7) $ 788,251,159 $ 737,231,154 $1,205,751,398 $ 435,832,535
============== ============== ============== ==============
Preferred shares, at liquidation value $ 250,000,000 $ 240,000,000 $ 400,000,000 $ 140,000,000
============== ============== ============== ==============
Preferred shares outstanding 10,000 9,600 16,000 5,600
============== ============== ============== ==============
Common shares outstanding 35,404,502 33,379,223 53,077,819 19,647,018
============== ============== ============== ==============
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 15.20 $ 14.90 $ 15.18 $ 15.06
============== ============== ============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1996
(Unaudited)
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 26,009,007 $ 24,176,806 $ 39,181,884 $ 14,219,228
------------ ------------ ------------ ------------
Expenses:
Management fees (note 6) 2,507,564 2,341,337 3,770,015 1,399,478
Preferred shares--auction fees 325,521 317,787 520,833 189,583
Preferred shares--dividend disbursing agent fees 25,000 22,692 32,500 10,000
Shareholders' servicing agent fees and expenses 48,210 44,379 72,487 25,644
Custodian's fees and expenses 55,362 52,618 75,601 37,338
Directors' fees and expenses (note 6) 3,187 3,654 6,014 2,560
Professional fees 33,089 12,541 16,714 12,430
Shareholders' reports--printing and mailing expenses 73,191 49,764 91,719 45,239
Stock exchange listing fees 25,946 14,123 19,171 20,380
Investor relations expense 26,158 23,759 39,187 14,214
Other expenses 24,712 18,463 38,110 9,478
------------ ------------ ------------ ------------
Total expenses 3,147,940 2,901,117 4,682,351 1,766,344
------------ ------------ ------------ ------------
Net investment income 22,861,067 21,275,689 34,499,533 12,452,884
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (140,045) (468,722) 37,105 1,025,934
Net change in unrealized appreciation or depreciation
of investments (15,500,507) (12,411,637) (12,910,549) (5,047,449)
------------ ------------ ------------ ------------
Net gain (loss) from investments (15,640,552) (12,880,359) (12,873,444) (4,021,515)
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 7,220,515 $ 8,395,330 $ 21,626,089 $ 8,431,369
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQM NQS
- ----------------------------------------------------------------------------------------------------------------------------------
6 months ended Year ended 6 months ended Year ended
4/30/96 10/31/95 4/30/96 10/31/95
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 22,861,067 $ 46,997,092 $ 21,275,689 $ 43,187,088
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (140,045) (315,370) (468,722) (424,861)
Net change in unrealized appreciation or depreciation
of investments (15,500,507) 37,219,824 (12,411,637) 43,774,909
------------ ------------ ------------ ------------
Net increase in net assets from operations 7,220,515 83,901,546 8,395,330 86,537,136
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (18,481,154) (38,289,980) (16,911,193) (34,858,659)
Preferred shareholders (4,709,360) (10,113,285) (4,568,568) (9,685,635)
From accumulated net realized gains from investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (23,190,514) (48,403,265) (21,479,761) (44,544,294)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- -- 432,469 502,250
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions -- -- 432,469 502,250
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (15,969,999) 35,498,281 (12,651,962) 42,495,092
Net assets at beginning of period 804,221,158 768,722,877 749,883,116 707,388,024
------------ ------------ ------------ ------------
Net assets at end of period $788,251,159 $804,221,158 $737,231,154 $749,883,116
============ ============ ============ ============
Balance of undistributed net investment income at
end of period $ 833,936 $ 1,163,384 $ 834,094 $ 1,038,166
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQU NPF
- ----------------------------------------------------------------------------------------------------------------------------------
6 months ended Year ended 6 months ended Year ended
4/30/96 10/31/95 4/30/96 10/31/95
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 34,499,533 $ 69,562,345 $ 12,452,884 $ 25,047,650
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 37,105 (757,201) 1,025,934 10,181
Net change in unrealized appreciation or depreciation
of investments (12,910,549) 67,418,921 (5,047,449) 26,319,291
-------------- -------------- ------------ ------------
Net increase in net assets from operations 21,626,089 136,224,065 8,431,369 51,377,122
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (27,228,929) (54,776,337) (9,961,617) (19,804,205)
Preferred shareholders (7,550,583) (16,271,551) (2,505,612) (5,394,964)
From accumulated net realized gains from investment transactions:
Common shareholders -- -- (1,184,250) (1,104,163)
Preferred shareholders -- -- (328,412) (259,084)
-------------- -------------- ------------ ------------
Decrease in net assets from distributions to shareholders (34,779,512) (71,047,888) (13,979,891) (26,562,416)
-------------- -------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- -- -- --
-------------- -------------- ------------ ------------
Net increase in net assets derived from capital
share transactions -- -- -- --
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets (13,153,423) 65,176,177 (5,548,522) 24,814,706
Net assets at beginning of period 1,218,904,821 1,153,728,644 441,381,057 416,566,351
-------------- -------------- ------------ ------------
Net assets at end of period $1,205,751,398 $1,218,904,821 $435,832,535 $441,381,057
============== ============== ============ ============
Balance of undistributed net investment income at
end of period $ 1,754,658 $ 2,034,636 $ 1,380,627 $ 1,394,972
============== ============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 1996, the National Funds (the "Funds") covered in this report and
their corresponding New York Stock Exchange symbols are Nuveen Investment
Quality Municipal Fund, Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc.
(NQS), Nuveen Quality Income Municipal Fund, Inc. (NQU) and Nuveen Premier
Municipal Income Fund, Inc. (NPF).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At April 30, 1996, there were no such purchase commitments in any
of the Funds.
<PAGE>
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing to shareholders
all of the Funds' tax-exempt net investment income, in addition to any
significant amounts of net realized capital gains from investments and/or
market discount realized upon the sale of securities. The Funds currently
consider significant net realized capital gains and/or market discount as
amounts in excess of $.01 per Common share. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities, which
is exempt from regular federal income tax, to retain such tax-exempt status
when distributed to shareholders of the Funds.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
capital gains from securities transactions are distributed to shareholders not
less frequently than annually only to the extent they exceed available capital
loss carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of net realized gains, if
applicable.
<PAGE>
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in more than one Series. The
dividend rate on each Series may change every seven days, as set by the
auction agent, except for those Series which have lengthened their current
dividend periods from seven days to three years (as indicated below). The
number of shares outstanding, by Series and in total, for each Fund is as
follows:
<CAPTION>
NQM NQS NQU NPF
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M 2,500 2,000 3,000 --
Series T 2,500 2,000 3,000 2,800*
Series W 2,500 2,800 3,000 --
Series Th -- -- 4,000* 2,800
Series F 2,500* 2,800 3,000 --
------ ----- ------ -----
Total 10,000 9,600 16,000 5,600
====== ===== ====== =====
<FN>
*Three year period
</FN>
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments which
prescribes disclosure requirements for transactions in certain derivative
financial instruments including future, 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 six months ended
April 30, 1996.
</TABLE>
<PAGE>
<TABLE>
2. FUND SHARES
Transactions in Common shares were as follows:
<CAPTION>
NQM NQS
6 months ended Year ended 6 months ended Year ended
4/30/96 10/31/95 4/30/96 10/31/95
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due to reinvestment
of distributions -- -- 28,593 34,939
====== ====== ====== ======
<CAPTION>
NQU NPF
6 months ended Year ended 6 months ended Year ended
4/30/96 10/31/95 4/30/96 10/31/95
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due to reinvestment
of distributions -- -- -- --
====== ====== ====== ======
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
April 30, 1996, were as follows:
<CAPTION>
NQM NQS NQU NPF
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $46,585,909 $78,160,342 $73,721,500 $25,414,875
Temporary municipal investments 28,800,000 46,660,000 22,700,000 27,800,000
SALES AND MATURITIES
Investments in municipal securities 40,289,480 72,575,843 72,324,471 27,381,861
Temporary municipal investments 34,700,000 50,810,000 24,600,000 26,800,000
=========== =========== =========== ===========
At April 30, 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.
At October 31, 1995, the Funds' last fiscal year end, the following Funds had
unused capital loss carryovers available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryovers
will expire as follows:
<CAPTION>
NQM NQS NQU
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Expiration year:
2001 $2,593,847 $ -- $ --
2002 -- 6,626,291 5,529,513
2003 315,370 424,861 757,201
---------- ---------- ----------
Total $2,909,217 $7,051,152 $6,286,714
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1996, the Funds declared Common share dividend distributions from
their ordinary income which were paid June 3, 1996, to shareholders of record
on May 15, 1996, as follows:
<CAPTION>
NQM NQS NQU NPF
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $.0870 $.0845 $.0855 $.0845
====== ====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1996, were as follows:
<CAPTION>
NQM NQS NQU NPF
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $51,598,596 $44,597,191 $73,867,433 $21,210,869
Depreciation (4,884,077) (5,469,567) (1,567,594) (339,361)
------------ ------------ ------------ ------------
Net unrealized appreciation $46,714,519 $39,127,624 $72,299,839 $20,871,508
============ =========== =========== ============
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors who are affiliated with the Adviser
or to their officers, all of whom receive remuneration for their services to
the Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At April 30, 1996, net assets consisted of:
<CAPTION>
NQM NQS NQU NPF
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $250,000,000 $240,000,000 $ 400,000,000 $140,000,000
Common shares, $.01 par value per share 354,045 333,792 530,778 196,470
Paid-in surplus 493,397,921 464,455,518 737,410,738 272,358,652
Balance of undistributed net investment income 833,936 834,094 1,754,658 1,380,627
Accumulated net realized gain (loss)
from investment transactions (3,049,262) (7,519,874) (6,244,615) 1,025,278
Net unrealized appreciation or depreciation
of investments 46,714,519 39,127,624 72,299,839 20,871,508
------------ ------------ -------------- ------------
Net assets $788,251,159 $737,231,154 $1,205,751,398 $435,832,535
============ ============ ============== ============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000 1,000,000
============ ============ ============== ============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At April 30, 1996, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NQM NQS NQU NPF
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 18% 22% 21% 27%
Health Care Facilities 13 7 10 13
Pollution Control Facilities 9 11 12 3
Electric Utilities 9 11 8 3
Transportation 1 7 8 3
Educational Facilities 4 2 2 8
Water / Sewer Facilities 2 5 5 1
Lease Rental Facilities 1 -- 2 1
Other 8 2 6 6
General Obligation Bonds 3 8 6 12
Escrowed Bonds 32 25 20 23
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
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 (50% for NQM, 38% for NQS, 34% for NQU and 26% for
NPF). Such insurance or escrow, however, does not guarantee the market value
of the municipal securities or the value of any of the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Operating performance Dividends from net investment income
Net
realized &
Net asset unrealized
value Net gain (loss) To To
beginning investment from invest- Common Preferred
of period income ments** shareholders shareholders++
NQM
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $15.650 $ .646 $ (.441) $ (.522) $(.133)
Year ended 10/31,
1995 14.650 1.328 1.040 (1.082) (.286)
1994 16.450 1.322 (1.761) (1.118) (.243)
1993 15.340 1.395 1.196 (1.230) (.214)
1992 15.130 1.441 .169 (1.157) (.243)
1991 13.930 1.457 1.185 (1.092) (.350)
6/21/90 to
10/31/90 14.050 .318 (.027) (.178) (.034)
<CAPTION>
NQS
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 15.290 .638 (.384) (.507) (.137)
Year ended 10/31,
1995 14.030 1.296 1.301 (1.046) (.291)
1994 16.130 1.311 (2.058) (1.083) (.250)
1993 14.920 1.348 1.304 (1.218) (.224)
1992 14.640 1.379 .197 (1.053) (.243)
3/21/91 to
10/31/91 14.050 .653 .671 (.425) (.124)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred Share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders++ discounts of period period
NQM
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $ -- $ -- $ -- $15.200 $15.000
Year ended 10/31,
1995 -- -- -- 15.650 15.125
1994 -- -- -- 14.650 13.375
1993 (.031) (.006) -- 16.450 17.500
1992 -- -- -- 15.340 15.750
1991 -- -- -- 15.130 16.000
6/21/90 to
10/31/90 -- -- (.199) 13.930 14.250
<CAPTION>
NQS
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 -- -- -- 14.900 14.625
Year ended 10/31,
1995 -- -- -- 15.290 14.750
1994 (.017) (.003) -- 14.030 13.125
1993 -- -- -- 16.130 16.500
1992 -- -- -- 14.920 14.750
3/21/91 to
10/31/91 -- -- (.185) 14.640 15.000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total Ratio of
investment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value+ value+ thousands) net assets@ net assets@ rate
NQM
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 2.62% .40% $788,251 .79%* 5.71%* 5%
Year ended 10/31,
1995 21.89 14.71 804,221 .78 5.97 11
1994 (17.87) (4.32) 768,723 .79 5.83 7
1993 19.75 16.01 828,931 .77 6.02 14
1992 5.67 9.29 783,237 .74 6.37 5
1991 20.66 17.08 769,837 .75 6.67 3
6/21/90 to
10/31/90 (3.80) .42 724,011 .72* 6.06* --
<CAPTION>
NQS
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 2.56 .72 737,231 .78* 5.70%* 10
Year ended 10/31,
1995 21.03 17.03 749,883 .79 5.91 7
1994 (14.45) (6.43) 707,388 .80 5.89 11
1993 20.73 16.87 773,423 .81 5.87 8
1992 5.41 9.32 727,874 .79 6.18 5
3/21/91 to
10/31/91 2.91 7.33 713,377 .79* 5.81* 1
<FN>
See notes on page 62.
</FN>
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Operating performance Dividends from net investment income
Net
realized &
Net asset unrealized
value Net gain (loss) To To
beginning investment from invest- Common Preferred
of period income ments** shareholders shareholders++
NQU
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $15.430 $ .650 $ (.245) $ (.513) $(.142)
Year ended 10/31,
1995 14.200 1.311 1.258 (1.032) (.307)
1994 16.400 1.319 (2.143) (1.095) (.256)
1993 14.620 1.341 1.824 (1.151) (.234)
1992 14.290 1.325 .276 (1.019) (.252)
6/19/91 to
10/31/91 14.050 .276 .329 (.168) (.021)
<CAPTION>
NPF
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 15.340 .634 (.202) (.507) (.128)
Year ended 10/31,
1995 14.080 1.275 1.337 (1.008) (.275)
1994 15.980 1.255 (1.864) (1.040) (.238)
1993 14.070 1.248 1.850 (.972) (.186)
12/19/91 to
10/31/92 14.050 .741 .191 (.640) (.090)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred Share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders++ discounts of period period
NQU
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $ -- $ -- $ -- $15.180 $14.875
Year ended 10/31,
1995 -- -- -- 15.430 14.750
1994 (.021) (.004) -- 14.200 12.875
1993 -- -- -- 16.400 16.375
1992 -- -- -- 14.620 14.250
6/19/91 to
10/31/91 -- -- (.176) 14.290 14.625
<CAPTION>
NPF
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 (.060) (.017) -- 15.060 14.750
Year ended 10/31,
1995 (.056) (.013) -- 15.340 14.625
1994 (.011) (.002) -- 14.080 12.750
1993 (.026) (.004) -- 15.980 15.250
12/19/91 to
10/31/92 -- -- (.182) 14.070 14.000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total Ratio of
investment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value+ value+ thousands) net assets@ net assets@ rate
NQU
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 4.31% 1.67% $1,205,751 .77%* 5.67%* 6%
Year ended 10/31,
1995 23.26 16.51 1,218,905 .78 5.86 17
1994 (15.32) (6.86) 1,153,729 .79 5.78 12
1993 23.62 20.73 1,269,375 .80 5.78 7
1992 4.35 9.64 1,170,752 .78 5.95 8
6/19/91 to
10/31/91 (1.39) 2.91 1,146,962 .74* 5.13* --
<CAPTION>
NPF
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 4.69 1.84 435,833 .80* 5.66* 6
Year ended 10/31,
1995 23.92 17.15 441,381 .80 5.84 22
1994 (10.05) (5.51) 416,566 .81 5.66 31
1993 16.68 21.31 453,895 .82 5.59 12
12/19/91 to
10/31/92 (2.47) 4.73 415,743 .79* 4.91* 14
<FN>
* Annualized.
** Net of taxes, if applicable.
+ 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.
@ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</FN>
</TABLE>
<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
ETF3-JUN 96
