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)
ANNUAL REPORT/OCTOBER 31, 1996
Photographic image of couple walking on beach.
<PAGE>
Photographic image of financial adviser reviewing financial statements/plans
with older couple.
Tax-informed investing
An important part of any successful investment program is gauging how well
your investments have performed and measuring your progress toward your
long-term goals.
<PAGE>
Taxes dramatically alter the relative returns of the five asset classes shown
at right.
Graph showing after-tax returns, 1976-1996.
<TABLE>
<CAPTION>
<S> <C>
Municipals 8.26
Treasuries 5.62
Corporates 6.11
Stocks 10.51
Treasury Bills 3.87
</TABLE>
Traditionally, the most common way to measure performance has been to compare
pre-tax rates of return for different investments across similar time periods.
The rationale behind this method is that each investor is taxed at a different
rate, making pre-tax comparisons the seemingly logical way to ensure you are
comparing apples to apples.
This, however, is precisely the rationale that can make a pre-tax
performance assessment misleading. When returns are presented on a pre-tax
basis, you may lose sight of the major impact taxes can have on your earnings,
and fail to get the complete picture of your progress toward your investment
goals. At Nuveen, we've built our reputation help ing investors realize that
it's not what you earn, it's what you keep.
TAX-INFORMED INVESTING: THE KEY
TO MEASURING LONG-TERM RESULTS
The true measure of an investment is its performance on an after-tax basis.
Analyzing after-tax returns gains added significance when you realize that the
taxes you pay can never be regained. Once that money is "lost," it can't be
put to work through compounding, earning additional dollars for you.
To better illustrate the ways that taxes can affect the amount you keep
versus the amount you earn, Nuveen Research recently studied 20 years of
investment returns, both pre-tax and after-tax, to determine the impact of
taxes on various asset classes. We were particularly interested in the results
for municipal bonds, an asset class that is commonly excluded from the top
performance rankings when only pre-tax returns are considered.
MEASURING WHAT YOU KEEP
The study showed that, once the impact of taxes was figured into the equation,
municipal bonds offered a distinct advantage over other fixed income
investments. Over the study period, municipal bonds outperformed both
corporate and Treasury bonds (see accompanying tables), as high tax rates and
the loss of compounding income took their toll on corporate and Treasury
results.
As investors are well aware, performance over the long term--and the
purchasing power of their earnings--can be eroded by inflation as well as
taxes. The study showed that, over the past 20 years, only municipal bonds and
stocks provided significant after-tax gains over the Consumer Price Index, the
most recognized measure of inflation.
ABOUT THE STUDY
The study, "Measuring What You Keep: Historical After-Tax Returns," compared
pre-tax and after-tax total returns over the past 20 years for five asset
classes: municipal bonds, Treasury bonds, Treasury bills, corporate bonds, and
large company stocks. Returns for each asset class were represented by the
<PAGE>
returns on commonly used market indexes compiled by Lehman Brothers and
Ibbotson Associates.
A hypothetical investment of $100,000 was made in each of these asset classes
at the beginning of 1976, with all dividends and interest reinvested through
the end of 1995. In addition, the after-tax proceeds of an assumed annual 20%
turnover rate were reinvested. The study assumed that taxes were paid annually
at the applicable federal income tax rates for an investor earning the
equivalent of $100,000 in 1995. Of course, this hypothetical investment
performance neither reflects past performance nor predicts future results of
any Nuveen investment.
INCORPORATING TAX-INFORMED
INVESTING IN YOUR PORTFOLIO
The Nuveen study confirms what many investors have known for years: that
municipal bonds can play a critical role in the long-term financial strategies
of tax-informed investors.
Balancing short-term and long-term investments
Combining shorter- and longer-term tax-free investments may help you manage
cumulative risk in your portfolio while still capturing the potential for
attractive overall rates. Shorter-term investments can help reduce the current
volatility of your portfolio and provide a source of investable funds to take
advantage of additional investment opportunities as they arise. Longer-term
leveraged exchange-traded funds have provided attractive yields and offer
trading flexibility that allows quick and easy portfolio adjustments.
Dividend reinvestment
Studies indicate that weathering market cycles by maintaining an investment
plan with long-term goals can help shield investors in the event of a
declining market. The purchase of additional shares on a regular schedule,
such as through dividend reinvestment, is another strategy for navigating
market changes. Dividend reinvestment is an easy and convenient way to set
aside dollars on a regular basis, helping you take advantage of dollar-cost
averaging while gaining the benefits of tax-free compounding.
CONSISTENT AFTER-TAX PERFORMANCE
For the long-term investor, performance--even after the impact of taxes and
inflation--is the true meas ure of an investment's merit. While most investors
choose municipal bonds for their tax-free income advantage, the positive news
about their after-tax returns reinforces their potential value as part of a
tax-informed investment strategy designed to meet long-term objectives.
Understanding the impact of taxes can mean that you keep more of what you
earn, and municipal bonds can help you do just that.
Only municipals and equities generated signif icant increases in purchasing
power over the twenty-year period, with after-tax and inflation-adjusted
returns in excess of 2.75% annually.
<TABLE>
<CAPTION>
ANNUAL AFTER-TAX REAL RETURNS, 1976-1995
PERIOD MUNICIPALS TREASURIES CORPORATES STOCKS BILLS
<S> <C> <C> <C> <C> <C>
1976-1985 .69% -3.32% -2.14% 2.75% -2.67%
1986-1995 5.15 4.21 3.91 7.31 0.13
1976-1995 2.88% 0.37% 0.84% 5.02% -1.30%
</TABLE>
<PAGE>
Photographic image of couple walking on beach.
CONTENTS
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
13 Fund performance
15 Commonly used terms
17 Shareholder meeting report
18 Portfolio of investments
46 Statement of net assets
47 Statement of operations
48 Statement of changes in net assets
50 Notes to financial statements
56 Financial highlights
60 Report of independent auditors
61 Nuveen Exchange-Traded Funds
dividend reinvestment program
<PAGE>
Municipal
market perspective
Over the past year the bond market has been relatively stable compared with
recent years, despite some fluctuations. While 1994 represented the worst
period in recent bond market history and 1995 the best in a decade, 1996 ended
the year about where it began, rebounding from a mid-year decline. Following a
strong start, a succession of mixed reports affecting interest rate and
inflation forecasts caused investors to view the markets alternatively with
enthusiasm, then uncertainty. In the third quarter, evidence of an economic
slowdown, the strong U.S. dollar, and lack of inflationary pressures combined
to allay investor fears, sparking a rally in bonds that continued through the
post-election period. Throughout the year, the municipal market continued to
reward investors with solid returns, dependable income, and opportunities to
purchase bonds with strong credit quality.
A look at the current economy shows a positive tone, reflecting a combination
of factors that historically bode well for the bond market, especially
long-term issues. Yields remain attractive, as inflation maintains the same
modest pace that it has demonstrated over the past five years, giving every
indication of being well under control. At the same time, the economy
continues to moderate, as evidenced by the lack of price pressure at the
consumer and producer levels, steady employment statistics, low labor costs,
and a stable money supply.
<PAGE>
Photographic image of head shot of Chairman and Chief Executive Officer of
Nuveen.
"Municipal bonds continue to play an important role in meeting the
investment goals of conservative investors."
Dear
shareholder
As I begin my duties as the new chairman and chief executive officer of John
Nuveen & Co. Incorporated and chairman of the board of the Nuveen
exchange-traded funds, I am pleased to have this opportunity to report to you
on the performance of your funds. My experience at Nuveen over the past 19
years has shaped my commitment to maintaining Nuveen's tradition of value
investing and prudent management. We continue to focus on building shareholder
value, providing research-oriented management, and delivering dependable
performance, in the belief that this focus will contribute to many more years
of investment success for our fund shareholders.
Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors. The performance of the exchange-traded funds
covered in this report demonstrates the ability of quality investments to
provide extremely attractive tax-free income. As of October 31, 1996, the
current annual yield on share price for these funds ranged from 6.70% to
6.76%. To match these yields, an investor in the 36% federal income tax
bracket would have had to earn at least 10.47% on taxable alternatives.
Without question, taxable yields at this level on investments of comparable
quality can be difficult to obtain in today's markets.
The net asset values of some funds declined slightly over the 12 months
ended October 31, reflecting the mid-1996 uncertainty that drove prices lower
<PAGE>
and yields higher. Yet returns remained attractive. For the funds covered in
this report, total returns, representing changes in net asset value and
reinvestment of all dividends and capital gains, if any, ranged from 5.70% to
7.51%, equivalent to taxable investments with total returns of 9.53% to
11.36%. As concerns about the effects of a potential flat tax evaporated and
the Federal Reserve continued to stand firm on interest rates, confidence in
the bond market was restored in November following the fiscal year ends of
these funds.
I would like to take this opportunity to share with you the news of some
recent developments that will give Nuveen the flexibility to meet expanded
investor needs for capital preservation, current income, and future growth.
In November, we introduced the Nuveen Growth and Income Stock Fund, the
first of three Nuveen equity-based mutual funds designed to provide a
high-quality complement to our current municipal bond funds. These new funds
will be offered in affiliation with Institutional Capital Corporation (ICAP),
an institutional equity management firm located in Chicago that shares
Nuveen's values and investment management style. Tailor-made to address the
needs of many Nuveen investors, these funds can play a critical role in
achieving a balanced strategy for investors who expect their investments to
provide a core element of their financial security.
In another move that will increase the range of investment solutions for
investors, Nuveen is acquiring Flagship Resources, Inc., a fixed income mutual
fund specialist based in Dayton, Ohio. Flagship is a firm that shares our
views on the importance of research and emphasizes a conservative, value-
oriented approach to portfolio management. In January 1997, the tax-exempt
mutual fund activities of Flagship and Nuveen will be merged, resulting in
more than 40 municipal funds, the broadest selection available in the U.S.
We are excited about these recent developments, and we are pleased to be
bringing Nuveen investors expanded options for achieving wealth preservation,
dependable income, and long-term asset growth. We thank you for your continued
confidence in Nuveen.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 16, 1996
<PAGE>
Answering your questions
Photographic image of montage of letters received by Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, discusses the
current environment in the municipal market and aspects of Nuveen's management
approach
Did the November elections have any impact on the municipal market?
No. While both the stock and bond markets have enjoyed post-election rallies,
the markets had substantially anticipated the outcome of the elections, that
is, the re-election of a Democratic President and the continued Republican
majority in Congress. Maintaining the status quo of the past four years should
have little effect on the municipal market.
What is the current mood of the municipal market?
The overall tone of the municipal market today is very positive. Over the past
year, we have seen municipals perform well in comparison to Treasuries. Adding
to the general optimism is the fact that the election has ended all talk of a
flat tax for now, eliminating one source of uncertainty regarding municipal
value. Based on these factors, we expect market sentiment to stay on the
positive side in the coming months.
Are there areas of the market that look especially attractive?
Regionally, the Midwest has turned in strong performance over the past year.
This is due to the fact that the economies of Illinois, Michigan, and Ohio have
done very well recently, with bonds from issuers in these states benefiting
from price appreciation relative to the market.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market
Do the Nuveen funds currently hold many bonds from Midwestern issuers?
Historically, Nuveen's national funds have always been slightly overweighted
in bonds from Midwestern issuers. Two main reasons account for this:
o Because interest from Illinois-issued municipal bonds generally is not
deductible when calculating state taxes, these bonds often provide more
attractive yields and prices than bonds from other states. Therefore, at
certain times, we tend to hold more bonds from this Midwestern state.
o Because of our long history in Chicago, we are particularly well
acquainted with credits in this part of the country.
<PAGE>
We believe that much of the recent relative price appreciation opportunity
in Midwest bonds may have been realized, with many of these bonds now reaching
what we would consider full value.
Does the portfolio management approach differ between older and newer Nuveen
funds?
While all of our funds are managed using the same philosophy and approach to
security selection and portfolio construction, each fund has a unique history
and set of circumstances that create different opportunities. Adding to this
diversity is the fact that each portfolio manager has an individual style. These
differences manifest themselves in slight variations. For example, one manager
might identify more frequent opportunities to change portfolio holdings over
the course of a year, while another manager might choose to buy more of a
certain issue or sell at a different time.
However, all of our portfolio managers use the same fundamental value
approach in the search for bonds that we believe are positioned to outperform
their peers. This means that we generally focus on the same types of credits
and same time horizons, and we try to maintain the same geographical and
sector diversification. Our management approach involves a team atmosphere,
even though each manager is overseeing separate portfolios.
<PAGE>
Can you comment on the overall credit quality of the Nuveen funds?
Over the course of 1996, the market has seen more upgrades than downgrades in
bond credit ratings, and our portfolios generally reflect this overall market
trend. As opportunity allowed, Nuveen portfolio managers maintained or
upgraded bonds in their portfolios to increase value and extend call
protection.
What is the status of bond calls in Nuveen's older portfolios?
Our funds--especially the older state and national funds--have been dealing
with the issue of bond calls and pre-refundings for years. Although this has
put pressure on dividends, all of our funds have performed very well through
this period. Generally, we don't expect bond calls and pre-refundings to play
as major a role over the next few years as they have recently. While some of
our funds still have pre-refunded and current call risk, others have
restructured their portfolios and have virtually no call exposure.
<PAGE>
<TABLE>
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQM
Dividends on NQM have been consistently at an attractive level
despite a modest reduction in June. Dividends are adjusted periodically to
reflect the current earnings of the portfolio.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/13/95 $0.0870
12/13/95 $0.0870
01/10/96 $0.0870
02/13/96 $0.0870
03/13/96 $0.0870
04/11/96 $0.0870
05/13/96 $0.0870
06/12/96 $0.0845
07/11/96 $0.0845
08/13/96 $0.0845
09/11/96 $0.0845
10/10/96 $0.0845
<CAPTION>
FUND HIGHLIGHTS 10/31/96
<S> <C>
Yield 6.76%
Taxable-equivalent yield 10.56%
Annual total return on NAV 5.70%
Taxable-equivalent total return 9.53%
Share price $15.00
NAV $15.48
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NQS
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/13/95 $0.0845
12/13/95 $0.0845
01/10/96 $0.0845
02/13/96 $0.0845
03/13/96 $0.0845
04/11/96 $0.0845
05/13/96 $0.0845
06/12/96 $0.0845
07/11/96 $0.0845
08/13/96 $0.0845
09/11/96 $0.0845
10/10/96 $0.0845
<CAPTION>
FUND HIGHLIGHTS 10/31/96
<S> <C>
Yield 6.70%
Taxable-equivalent yield 10.47%
Annual total return on NAV 5.71%
Taxable-equivalent total return 9.56%
Share price $15.125
NAV $15.12
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NQU
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, share holders enjoyed 12 months of steady dividends.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/13/95 $0.0855
12/13/95 $0.0855
01/10/96 $0.0855
02/13/96 $0.0855
03/13/96 $0.0855
04/11/96 $0.0855
05/13/96 $0.0855
06/12/96 $0.0855
07/11/96 $0.0855
08/13/96 $0.0855
09/11/96 $0.0855
10/10/96 $0.0855
<CAPTION>
FUND HIGHLIGHTS 10/31/96
<S> <C>
Yield 6.73%
Taxable-equivalent yield 10.52%
Annual total return on NAV 6.93%
Taxable-equivalent total return 10.79%
Share price $15.25
NAV $15.44
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
NPF
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, share holders enjoyed 12 months of steady dividends. In addition,
shareholders received a capital gains distribution in December 1995.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/13/95 $0.0845
12/13/95 $0.0845 $0.0603
01/10/96 $0.0845
02/13/96 $0.0845
03/13/96 $0.0845
04/11/96 $0.0845
05/13/96 $0.0845
06/12/96 $0.0845
07/11/96 $0.0845
08/13/96 $0.0845
09/11/96 $0.0845
10/10/96 $0.0845
<CAPTION>
FUND HIGHLIGHTS 10/31/96
<S> <C>
Yield 6.70%
Taxable-equivalent yield 10.47%
Annual total return on NAV 7.51%
Taxable-equivalent total return 11.36%
Share price $15.125
NAV $15.38
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date
(in the case of this report, October 31, 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, the tax rate is assumed to be
36% for shareholders, based on incomes of $121,300-$263,750 for investors
filing singly, $147,700-$263,750 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares divided by the total number of common shares
outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if any.
<PAGE>
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 technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term
preferred shares. The proceeds from the sale of the preferred shares can be
used to purchase additional long-term bonds, thus increasing the portfolio's
income stream. Changes in net asset value per share, both up and down, are
also magnified by leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended October 31, 1996. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
<CAPTION>
SHAREHOLDER MEETING REPORT
On July 24, 1996, the following Nuveen Exchange-Traded
Funds held an Annual Meeting of Shareholders. At the
meeting, shareholders voted to elect directors of the
Funds and to ratify selection of Ernst & Young L.L.P.
as the auditors for the Funds. The directors elected
at the meeting include: Lawrence H. Brown, Anthony T.
Dean, Anne E. Impellizzeri, and Peter R. Sawers.
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Lawrence H. Brown
For 31,680,110 30,529,261 47,835,317 17,900,681
Abstain 399,191 451,596 602,287 212,820
---------- ---------- ---------- ----------
Total 32,079,301 30,980,857 48,437,604 18,113,501
========== ========== ========== ==========
Anthony T. Dean
For 31,673,210 30,538,156 47,830,776 17,904,081
Abstain 406,091 442,701 606,828 209,420
---------- ---------- ---------- ----------
Total 32,079,301 30,980,857 48,437,604 18,113,501
========== ========== ========== ==========
Anne E. Impellizzeri
For 31,681,710 30,535,315 47,837,130 17,900,006
Abstain 397,591 445,542 600,474 213,495
---------- ---------- ---------- ----------
Total 32,079,301 30,980,857 48,437,604 18,113,501
========== ========== ========== ==========
Peter R. Sawers
For 31,680,110 30,536,461 47,833,592 17,902,086
Abstain 399,191 444,396 604,012 211,415
---------- ---------- ---------- ----------
Total 32,079,301 30,980,857 48,437,604 18,113,501
========== ========== ========== ==========
APPROVAL TO UPDATE TERMS
OF MUNIPREFERRED WAS
REACHED AS FOLLOWS:
For 18,214,149 17,169,469 26,816,693 N/A
Against 374,223 426,145 538,383 N/A
Abstain 1,158,766 1,185,141 1,796,558 N/A
---------- ---------- ---------- ----------
Total 19,747,138 18,780,755 29,151,634 N/A
========== ========== ========== ==========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 31,533,234 30,315,751 47,576,122 17,838,103
Against 143,494 140,024 220,873 76,773
Abstain 402,573 525,082 640,609 198,625
---------- ---------- ---------- ----------
Total 32,079,301 30,980,857 48,437,604 18,113,501
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQM)
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 2.5%
$14,850,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds,
1994 Series A, 5.400%, 12/01/13 Aa 6/04 at 102 $ 14,272,929
5,630,000 Alaska Housing Finance Corporation, Insured Mortgage Program Bonds,
1990 First Series, 7.800%, 12/01/30 Aa1 12/00 at 102 5,728,018
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.7%
22,400,000 California Health Facilities Financing Authority, Kaiser Permanente,
Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 AA 5/03 at 102 21,349,216
11,625,000 California Health Facilities Financing Authority, Hospital Revenue Bonds
(Children's Hospital of Los Angeles), 1991 Series A, 7.125%, 6/01/21
(Pre-refunded to 6/01/01) Aaa 6/01 at 102 13,098,701
5,700,000 State Public Works Board of the State of California, Lease Revenue
Refunding Bonds (The Regents of the University of California), 1993
Series A (Various University of California Projects), 5.500%, 6/01/21 A1 6/03 at 102 5,395,164
10,000,000 Certificates of Participation (1991 Financing Project), County of Alameda,
California, Alameda County Public Facilities Corporation,
6.000%, 9/01/21 Aaa 9/06 at 102 10,317,400
9,740,000 Huntington Park Redevelopment Agency, Single Family Residential
Mortgage Revenue Refunding Bonds, 1986 Series A, 8.000%, 12/01/19 Aaa No Opt. Call 12,924,590
6,640,000 Lancaster Redevelopment Agency, Combined Redevelopment Project
Areas (Sheriff's Facility Project), Tax Allocation Bonds, Issue of 1993,
5.700%, 8/01/23 Aaa 8/03 at 102 6,589,802
4,000,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda
University Medical Center Project), Series 1993-A, 6.500%, 12/01/18 BBB 12/03 at 102 4,090,480
10,325,000 City of Loma Linda, California, Hospital Revenue Refunding Bonds
(Loma Linda University Medical Center Project), Series 1993-C,
5.000%, 12/01/22 Aaa 12/03 at 102 9,252,749
7,155,000 Department of Water and Power of The City of Los Angeles, Water Works
Refunding Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/23 Aaa 5/03 at 102 5,932,211
15,770,000 Ontario Redevelopment Financing Authority (San Bernardino County
California), 1995 Revenue Refunding Bonds (Ontario Redevelopment
Project No. 1), 7.400%, 8/01/25 Aaa No Opt. Call 20,166,676
13,145,000 City of Perris, California, Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities), 1988 Series B, 8.200%, 9/01/23
(Alternative Minimum Tax) Aaa No Opt. Call 16,793,263
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.5%
2,500,000 Colorado Housing Finance Authority, Single Family Program Senior and
Subordinate Bonds, 1996 Series B, 7.450%, 11/01/27 Aa 5/06 at 105 2,791,050
4,940,000 Castle Pines Metropolitan District, Douglas County, Colorado, General
Obligation Refunding and Improvement Bonds, Series 1990,
7.625%, 12/01/15 Aaa 12/00 at 102 5,569,356
3,085,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A, 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 3,462,789
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.9%
7,030,000 Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, 1996 Series D, Subseries D-2, 6.200%, 11/15/27
(Alternative Minimum Tax) Aa 5/06 at 102 7,098,964
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.7%
5,215,000 District of Columbia Housing Finance Agency, Collateralized Single
Family Mortgage Revenue Bonds, Series 1990A, 8.100%, 12/01/23
(Alternative Minimum Tax) AAA 12/00 at 102 5,504,798
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.2%
4,000,000 Hillsborough County Port District, Florida (Tampa Port Authority),
Revenue Bonds, Series 1990, 8.250%, 6/01/09 Baa1 12/00 at 102 4,610,920
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
$ 20,000,000 Jacksonville Health Facilities Authority, Health Facilities Revenue
Refunding Bonds, Daughters of Charity National Health System, Inc.,
St. Vincent's Medical Center Issue, Series 1990, 7.500%, 11/01/15
(Pre-refunded to 11/01/00) Aaa 11/00 at 102 $ 22,599,400
Orange County Housing Finance Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds, 1990 Series A:
2,600,000 7.500%, 7/01/10 Aaa 7/00 at 103 2,764,294
11,035,000 7.600%, 1/01/24 Aaa 7/00 at 103 11,734,288
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 5.2%
5,990,000 Municipal Electric Authority of Georgia, Power Revenue Bonds,
Series Q, 8.375%, 1/01/16 A 1/98 at 102 6,383,603
5,000,000 Municipal Electric Authority of Georgia, General Power Revenue Bonds,
1987A Series, 8.375%, 1/01/20 A 1/97 at 102 5,132,600
5,250,000 Municipal Electric Authority of Georgia, Power Revenue Bonds,
Series O, 8.125%, 1/01/17 A 1/98 at 102 5,580,225
3,225,000 Urban Residential Finance Authority of the City of Atlanta, Georgia,
Single Family Mortgage Revenue Bonds (GNMA Collateralized Home
Mortgage Program), Series 1988, in cooperation with the Housing
Authority of Fulton County, Georgia), 8.250%, 10/01/21 (Alternative
Minimum Tax) AAA 10/98 at 103 3,375,285
10,000,000 Development Authority of Monroe County (Georgia), Pollution Control
Revenue Bonds (Georgia Power Company Plant Scherer Project), Second
Series 1994, 6.750%, 10/01/24 A1 10/99 at 102 10,438,400
2,250,000 Municipal Electric Authority of Georgia, Project One Special Obligation
Bonds, Fourth Crossover Series, 6.500%, 1/01/20 A No Opt. Call 2,471,985
7,325,000 Wayne County Development Authority, Solid Waste Disposal Revenue
Bonds (ITTRayonier, Inc. Project), Series 1990, 8.000%, 7/01/15
(Alternative Minimum Tax) BBB+ 1/00 at 102 7,878,917
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 5.5%
5,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1989B
(ServantCor), 7.875%, 8/15/19 (Pre-refunded to 8/15/99) N/R 8/99 at 102 5,519,900
3,305,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1990
(Riverside Senior Living Center Project), 7.500%, 11/01/20
(Pre-refunded to 11/01/00) A 11/00 at 102 3,583,975
7,500,000 Community College District No. 508, Cook County, Illinois, Certificates
of Participation, 8.750%, 1/01/07 Aaa No Opt. Call 9,567,300
5,900,000 Community Unit School District Number 7, Madison County, Illinois,
School Building Bonds, Series 1994, 5.850%, 2/01/13 Aaa No Opt. Call 6,120,070
3,585,000 City of Pekin, Illinois, Multi-Family Housing Refunding Revenue Bonds,
Series 1992A (FHA Insured Mortgage Loan - Section 8 Assisted Project),
6.875%, 5/01/22 AAA 5/03 at 103 3,780,454
2,795,000 City of Peoria, Peoria County, Illinois, City of Pekin, Tazewell and Peoria
Counties, Illinois, and City of Waukegan, Lake County, Illinois, Jointly,
GNMA Collateralized Mortgage Revenue Bonds, Series 1990,
7.875%, 8/01/22 (Alternative Minimum Tax) AAA 8/00 at 103 2,945,790
860,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry
and Will Counties, Illinois, General Obligation Bonds, Series 1992B,
9.000%, 6/01/07 Aaa No Opt. Call 1,133,721
5,390,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry
and Will Counties, Illinois, General Obligation Bonds, Series 1992A,
9.000%, 6/01/07 Aaa No Opt. Call 7,105,529
Southwestern Illinois Development Authority, Solid Waste Disposal
Revenue Bonds (Leclede Steel Company Project), Series 1990:
740,000 8.375%, 8/01/08 (Alternative Minimum Tax) A- 8/00 at 103 817,367
2,910,000 8.500%, 8/01/20 (Alternative Minimum Tax) A- 8/00 at 103 3,226,288
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
INDIANA - 0.8%
$ 6,000,000 Hospital Authority of Delaware County (Indiana), Hospital Revenue Bonds,
Series 1991 (Ball Memorial Hospital), 6.625%, 8/01/16 Aaa 8/01 at 102 $ 6,468,960
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.9%
5,060,000 City of Topeka, Kansas, Variable Rate Demand Industrial Revenue
Refunding Bonds, Series 1988 (Sunwest Hotel Corporation Project),
9.500%, 10/01/16 (Alternative Minimum Tax) (Pre-refunded to 8/15/16) AAA 8/16 at 100 6,834,289
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.2%
Kentucky Development Finance Authority, Medical Center Revenue
Refunding and Improvement Bonds (Ashland Hospital Corporation d/b/a
King's Daughters' Hospital):
1,550,000 9.750%, 8/01/11 (Pre-refunded to 2/01/98) A 2/98 at 102 1,681,146
950,000 9.750%, 8/01/11 A 2/98 at 102 1,021,687
2,120,000 Kentucky Housing Corporation, Housing Revenue Bonds (FHA Insured/
VA Guaranteed), 1990 Series C Bonds, 8.100%, 1/01/22 (Alternative
Minimum Tax) Aaa 7/00 at 102 2,238,868
12,500,000 County of Jefferson, Kentucky, Pollution Control Revenue Bonds, 1995
Series A (Louisville Gas and Electric Company Project), 5.900%, 4/15/23 AA 4/05 at 102 12,648,375
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.0%
15,660,000 Louisiana Public Facilities Authority, Fixed Rate Health and Education
Capital Facilities Revenue Bonds (West Jefferson Medical Center), Series
1985D, 7.900%, 12/01/15 Aaa 12/98 at 102 17,069,243
2,550,000 Louisiana Public Facilities Authority (West Jefferson Medical Center),
7.900%, 12/01/15 (Pre-refunded to 12/01/98) Aaa 12/98 at 102 2,788,068
5,485,000 Louisiana Public Facilities Authority, Extended Care Facilities Revenue
Bonds (Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/04 BBB No Opt. Call 6,719,619
5,460,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series
1990A, 7.875%, 8/01/23 (Alternative Minimum Tax) Aaa 8/00 at 102 5,767,671
11,545,000 Orleans Parish School Board, Public School Refunding Bonds, Series 1987
(Defeased), 9.000%, 2/01/09 Aaa No Opt. Call 15,425,159
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.7%
5,510,000 Maine State Housing Authority, Mortgage Purchase Bonds, 1994 Series
C-2, 6.875%, 11/15/23 (Alternative Minimum Tax) AA- 10/04 at 102 5,736,681
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.3%
2,000,000 City of Gaithersburg (Maryland), First Mortgage Economic Development
Revenue Bonds (Ashbury Methodist Home, Incorporated Facility),
Series 1990, 7.850%, 1/01/20 (Pre-refunded to 1/01/00) N/R 1/00 at 102 2,244,160
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.5%
6,135,000 Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, Goddard Memorial Hospital Issue, Series B, 9.000%, 7/01/15 Baa 7/00 at 102 6,798,132
3,810,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds,
Goddard Memorial Hospital Issue, Series B, 9.000%, 7/01/15
(Pre-refunded to 7/01/00) Baa 7/00 at 102 4,440,136
1,250,000 Massachusetts Housing Finance Agency, Residential Housing Revenue
Bonds, 1988 Series B, 8.100%, 8/01/23 (Alternative Minimum Tax) BBB+ 8/99 at 102 1,312,650
Massachusetts Water Resources Authority, General Revenue Bonds,
1990 Series A:
15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 16,801,800
4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 4,464,760
16,250,000 City of Boston, Massachusetts, Revenue Bonds, Boston City Hospital
(FHA Insured Mortgage), Series A, 7.625%, 2/15/21 (Pre-refunded
to 8/15/00) Aaa 8/00 at 102 18,319,438
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA - 2.7%
$ 5,000,000 The Dakota County Housing and Redevelopment Authority, The
Washington County Housing and Redevelopment Authority, and The
City of Bloomington, Minnesota, Single Family Residential Mortgage
Revenue Bonds (GNMA Mortgage-Backed Program), Series 1988,
8.450%, 9/01/19 (Alternative Minimum Tax) Aaa No Opt. Call $ 6,323,200
2,860,000 City of Hopkins, Minnesota, Elderly Housing Revenue Refunding Bonds
(St. Therese Southwest, Inc. Project), Series 1994A, 6.500%, 3/01/19 AA 3/04 at 102 2,952,521
1,165,000 Housing and Redevelopment Authority of the City of St. Paul, Minnesota,
District Heating Revenue Bonds, Custodial Receipts, Series I,
9.250%, 12/01/97 A1 No Opt. Call 1,227,549
10,565,000 Housing and Redevelopment Authority of the City of St. Paul, Minnesota,
District Heating Revenue Bonds, Custodial Receipts, Series II,
9.250%, 12/01/97 A1 No Opt. Call 11,132,235
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6%
1,385,000 Mississippi Home Corporation, Single Family Senior Revenue Refunding
Bonds, Series 1990A, 9.250%, 3/01/12 Aaa 9/00 at 103 1,495,592
2,800,000 Mississippi Housing Finance Corporation, Single Family Mortgage
Purchase Revenue Bonds, Series 1989 (GNMA Mortgage-Backed
Securities Program), 8.250%, 10/15/18 (Alternative Minimum Tax) Aaa 10/99 at 102 2,944,956
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.1%
3,300,000 Nebraska Higher Education Loan Program, Inc., Student Loan Program
Revenue Bonds, 1993 Series B, 5.875%, 6/01/14 (Alternative
Minimum Tax) A 6/04 at 102 3,211,725
13,330,000 Nebraska Investment Finance Authority, Single Family Housing Revenue
Bonds, 1995 Series B, 6.450%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 13,529,284
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.7%
5,400,000 State of Nevada, Colorado River Commission, General Obligation (Limited
Tax) (Additionally Secured by Pledged Revenues), Hoover Uprating
Refunding Bonds, 1992 Series, 8.000%, 10/01/15 (Pre-refunded
to 10/01/97) Aaa 10/97 at 102 5,698,080
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.2%
9,400,000 Incorporated County of Los Alamos, New Mexico, Utility System Refunding
Revenue Bonds, Series 1986A, 7.750%, 1/01/15 (Pre-refunded to 1/01/97) N/R 1/97 at 102 9,647,972
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.3%
5,890,000 Dormitory Authority of the State of New York, City University System
Consolidated Second General Resolution Revenue Bonds, Series 1990C,
9.250%, 7/01/98 Baa1 No Opt. Call 6,345,120
14,235,000 Dormitory Authority of the State of New York, City University System
Consolidated Second General Resolution Revenue Bonds, Series 1990D,
8.750%, 7/01/02 Baa1 No Opt. Call 16,744,915
10,000,000 Dormitory Authority of the State of New York, City University System
Consolidated, Second General Resolution Revenue Bonds, Series 1990F,
7.875%, 7/01/17 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 11,345,400
Dormitory Authority of the State of New York, State University Educational
Facilities, Revenue Bonds, Series 1989B:
7,935,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 8,814,198
1,025,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) AAA 5/00 at 102 1,138,570
10,000,000 New York State Medical Care Facilities Finance Agency, Hospital Insured
Mortgage Revenue Bonds, 1987 Series A Refunding, 8.000%, 2/15/25
(Pre-refunded to 8/15/97) Aaa 8/97 at 102 10,515,700
5,000,000 New York State Medical Care Facilities Finance Agency, St. Luke's-Roosevelt
Hospital Center, FHA-Insured Mortgage Revenue Bonds, 1989 Series B,
7.450%, 2/15/29 (Pre-refunded to 2/15/00) Aaa 2/00 at 102 5,555,250
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 3,500,000 State of New York Mortgage Agency, Homeowner Mortgage Revenue
Bonds, Series HH-3, 7.950%, 4/01/22 (Alternative Minimum Tax) Aa 6/00 at 102 $ 3,720,115
6,655,000 Municipal Assistance Corporation for the City of New York (A Public
Benefit Corporation of the State of New York), Series 61 Bonds,
6.875%, 7/01/07 Aa 7/97 at 102 6,911,683
New York City Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds, Fiscal 1991 Series A:
10,200,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) Aaa 6/00 at 101 1/2 11,390,748
6,395,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) A 6/00 at 100 6,717,372
5,105,000 6.000%, 6/15/20 A 6/00 at 100 5,130,066
4,200,000 New York City Industrial Development Agency, Special Facility Revenue
Bonds (1990 American Airlines, Inc. Project), 8.000%, 7/01/20
(Alternative Minimum Tax) Baa2 1/99 at 102 4,446,666
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.4%
2,795,000 Charlotte Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-
Double Oaks Apartments), 7.350%, 5/15/26 AAA 11/07 at 100 3,011,976
- ------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.4%
2,500,000 State of Oregon, Department of General Services, Certificates of
Participation (1990 Real Property Financing Program), Series F,
7.500%, 9/01/15 (Pre-refunded to 9/01/00) Aaa 9/00 at 102 2,814,175
8,990,000 Northern Wasco County People's Utility District, Wasco County, Oregon,
McNary Dam Fishway Hydroelectric Project Revenue Bonds, Series
1993 (Bonneville Power Administration), 5.200%, 12/01/24 Aa1 12/03 at 102 8,322,313
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.5%
7,565,000 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue
Bonds, Series 1990-28, 7.650%, 10/01/23 (Alternative Minimum Tax) AA+ 10/00 at 102 7,967,231
4,905,000 McKean County Hospital Authority, Hospital Revenue Bonds, Series of
1990 (Bradford Hospital Project), 8.875%, 10/01/20 BBB- 10/00 at 102 5,703,583
7,040,000 City of Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds,
Series 1993, 5.000%, 6/15/16 Aaa 6/03 at 100 6,489,261
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.0%
10,000,000 Rhode Island Housing and Mortgage Finance Corporation, Series 3-B
Bonds, 8.050%, 4/01/22 (Alternative Minimum Tax) AA+ 10/00 at 102 10,525,800
4,890,000 Newport Housing Development Corporation, 1995 Multi-Family
Mortgage Revenue Refunding Bonds (Broadway-West Broadway
Apartments - FHA Insured Mortgage, Section 8 Assisted Project),
Series A, 6.800%, 8/01/24 AAA 6/03 at 100 5,135,185
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.0%
3,475,000 South Carolina State Housing Finance and Development Authority,
Homeownership Mortgage Purchase Bonds, 1990 Series C,
7.750%, 7/01/22 (Alternative Minimum Tax) Aa 7/00 at 102 3,660,357
19,800,000 Piedmont Municipal Power Agency, South Carolina, Electric Revenue
Bonds, 1986 Refunding Series A, 7.250%, 1/01/22 Baa1 1/97 at 101 1/2 20,208,672
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5%
3,595,000 Tennessee Housing Development Agency, Homeownership Program Bonds,
Issue H, Series 1988, 7.825%, 7/01/15 (Alternative Minimum Tax) Aa 7/12 at 100 3,736,104
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.0%
2,000,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue
Bonds (Texas Utilities Electric Company Project), Series 1990A,
8.125%, 2/01/20 (Alternative Minimum Tax) BBB+ 2/00 at 102 2,195,420
12,110,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue
Bonds (Texas Utilities Electric Company Project), Series 1986,
8.250%, 12/01/16 (Alternative Minimum Tax) BBB+ 12/96 at 102 12,397,128
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 4,295,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue
Bonds (Texas Utilities Electric Company Project), Series 1989A,
8.250%, 1/01/19 (Alternative Minimum Tax) BBB+ 1/99 at 102 $ 4,634,219
3,500,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue
Refunding Bonds (Texas Utilities Electric Company Project), Series
1993A, 5.500%, 5/01/22 Aaa 11/03 at 102 3,395,070
2,270,000 The Cameron County Housing Finance Corporation, GNMA Collateralized
Mortgage Revenue Refunding Bonds, 1990 Series B, 7.850%, 3/01/24 Aaa 9/00 at 103 2,431,919
Dallas Housing Corporation Refunding and Capital Program Revenue
Bonds (Section 8 Assisted Projects), Series 1990:
1,000,000 7.700%, 8/01/05 A 8/00 at 102 1,072,920
2,000,000 7.850%, 8/01/13 A 8/00 at 102 2,141,820
10,000,000 Harris County Hospital District Refunding Revenue Bonds, Texas, Series
1990, 7.400%, 2/15/10 Aaa No Opt. Call 11,920,300
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.5%
3,955,000 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 1,
8.150%, 5/01/25 (Alternative Minimum Tax) A1 11/00 at 102 4,182,729
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.6%
11,320,000 State of Washington, General Obligation Bonds, Series 1994A,
4.750%, 10/01/13 Aa 10/03 at 100 10,190,377
3,000,000 Washington Health Care Facilities Authority Revenue Bonds, Series 1990
(Franciscan Health System/St. Francis Community Hospital of Federal
Way), 7.250%, 7/01/15 Aaa 7/00 at 102 3,301,500
2,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding
Revenue Bonds, Series 1990C, 8.000%, 7/01/17 (Pre-refunded
to 7/01/00) Aaa 7/00 at 102 2,275,640
Washington Public Power Supply System, Nuclear Project No. 1, Refunding
Revenue Bonds, Series 1989A:
1,745,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 1,916,916
1,460,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aa1 7/99 at 102 1,605,387
5,650,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding
Revenue Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded
to 7/01/00) Aa1 7/00 at 102 6,241,329
15,850,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding
Revenue Bonds, Series 1993B, 5.600%, 7/01/15 Aaa 7/03 at 102 15,428,390
4,500,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding
Revenue Bonds, Series 1993C, 5.375%, 7/01/15 Aa1 7/03 at 102 4,232,025
13,900,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding
Revenue Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded
to 1/01/00) Aaa 1/00 at 102 15,314,880
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.4%
3,145,000 Wisconsin Housing and Economic Development Authority, Home
Ownership Revenue Bonds, 1989 Series B, 7.600%, 3/01/15 Aa 9/99 at 102 3,312,000
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4%
3,450,000 Puerto Rico Highway and Transportation Authority, Highway Revenue
Bonds (Series X), 5.500%, 7/01/19 A 7/03 at 101 1/2 3,288,747
- ------------------------------------------------------------------------------------------------------------------------------------
$725,295,000 Total Investments - (cost $727,338,246) - 97.9% 781,881,599
============------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.4%
$ 500,000 California Pollution Control Financing Authority, Pollution Control
Revenue Bonds (Shell Oil Company Project), 1991 Series A, Variable
Rate Demand Bonds, 3.500%, 10/01/08+ VMIG-1 $ 500,000
500,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility
Revenue Bonds (American Airlines, Inc. Project), Series 1983B, Variable
Rate Demand Bonds, 3.650%, 12/01/17+ P-1 500,000
500,000 New York City Municipal Water Finance, Water and Sewer System
Revenue 1944 G, Variable Rate Demand Bonds, 3.600%, 6/15/24+ VMIG-1 500,000
1,300,000 North Central Texas Health Facilities Development Corporation, Hospital
Revenue Bonds, Series 1985-B (Methodist Hospitals of Dallas), Variable
Rate Demand Bonds, 3.650%, 10/01/15+ A-1 1,300,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,800,000 Total Temporary Investments - 0.4% 2,800,000
===========-------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 13,667,767
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $798,349,366
====================================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 53 $425,640,123 55%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 20 143,002,475 18
PORTFOLIO OF A+ A1 5 32,376,077 4
INVESTMENTS A, A- A, A2, A3 15 51,461,526 7
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 16 111,989,366 14
TEMPORARY Non-rated Non-rated 3 17,412,032 2
INVESTMENTS):
- -----------------------------------------------------------------------------------------------------------------------
TOTAL 112 $781,881,599 100%
=======================================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. (NQS)
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.4%
$ 2,900,000 The Water Works Board of the City of Arab (Alabama), Water Revenue
Bonds, Series 1991, 7.050%, 8/01/16 Aaa 8/01 at 102 $ 3,247,188
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.4%
4,915,000 Arkansas Development Finance Authority, Single Family Mortgage
Revenue Refunding Bonds, 1991 Series A (FHA Insured or VA
Guaranteed Mortgage Loans), 8.000%, 8/15/11 AA 8/01 at 103 5,309,576
4,500,000 City of Little Rock, Arkansas, Hotel and Restaurant Gross Receipts Tax
Refunding Bonds, Series 1993, 7.375%, 8/01/15 A No Opt. Call 5,369,535
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.8%
4,000,000 Sisters of Charity of Leavenworth Health Services Corporation,
Certificates of Participation, California Statewide Communities
Development Authority, Sisters of Charity of Leavenworth Health
Services Corporation, 5.000%, 12/01/23 Aa at 102 3,528,200
3,200,000 State of California, Department of Water Resources, Central Valley Project,
Water System Revenue Bonds, Series M, 4.875%, 12/01/27 Aa 12/03 at 101 2,769,632
7,000,000 Department of Water and Power of The City of Los Angeles, Electric Plant
Refunding Revenue Bonds, Issue of 1993, 5.375%, 9/01/23 Aa 9/03 at 102 6,556,480
6,710,000 Department of Water and Power of The City of Los Angeles, Water Works
Refunding Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/11 Aa 5/03 at 102 5,966,935
21,800,000 Los Angeles County Metropolitan Transportation Authority (California),
Proposition A Sales Tax Revenue Refunding Bonds, Series 1993-A,
6.750%, 7/01/20 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 24,367,822
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.0%
20,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A, 8.750%, 11/15/23 (Alternative Minimum Tax) Baa 11/01 at 102 23,679,600
5,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D, 7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 5,540,700
12,150,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C, 6.750%, 11/15/22 (Alternative Minimum Tax) Baa 11/02 at 102 12,602,588
2,560,000 Jefferson County, Colorado, Single Family Revenue Refunding Bonds,
Series 1991A, 8.875%, 10/01/13 Aaa 4/01 at 103 2,760,653
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.3%
7,500,000 Connecticut Development Authority, Health Facility Refunding Revenue
Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, 1991
Series A, 10.000%, 8/15/21 (Pre-refunded to 8/15/01) N/R 8/01 at 103 9,246,975
7,885,000 Connecticut Development Authority, Health Facility Refunding Revenue
Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project,
1994 Series A, 7.250%, 8/15/21 N/R 8/04 at 102 8,184,709
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2%
1,615,000 District of Columbia Housing Finance Agency, Collateralized Single
Family Mortgage Revenue Bonds, Series 1990A, 8.100%, 12/01/23
(Alternative Minimum Tax) AAA 12/00 at 102 1,704,746
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.7%
4,500,000 Jacksonville Electric Authority (Jacksonville, Florida), Electric System
Revenue Bonds, Series Two, 1987A-2, 7.500%, 10/01/02
(Pre-refunded to 10/01/97) Aaa 10/97 at 101 1/2 4,715,010
14,250,000 Jacksonville Electric Authority (Jacksonville, Florida), Bulk Power Supply
System Revenue Bonds (Scherer 4 Project, Issue One, Series 1991A),
6.750%, 10/01/21 (Pre-refunded to 10/01/00) Aaa 10/00 at 101 1/2 15,652,058
7,400,000 State of Florida, Orlando-Orange County Expressway Authority, Junior
Lien Revenue Refundings Bonds, Series of 1993A, 5.125%, 7/01/20 Aaa 7/03 at 102 6,872,972
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
GEORGIA - 0.4%
$ 2,505,000 Urban Residential Finance Authority of the City of Atlanta, Georgia,
Single Family Mortgage Revenue Bonds (GNMA Collateralized Home
Mortgage Program), Series 1988, in cooperation with the Housing
Authority of Fulton County, Georgia, 8.250%, 10/01/21 (Alternative
Minimum Tax) AAA 10/98 at 103 $ 2,621,733
- ------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.5%
16,000,000 Department of Budget and Finance of the State of Hawaii, Special Purpose
Revenue Bonds, Kapiolani Health Care System Obligated Group (Pali
Momi Medical Center Project), Series 1991, 7.650%, 7/01/19
(Pre-refunded to 7/01/01) Aaa 7/01 at 102 18,347,840
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 5.3%
Illinois Development Finance Authority, Multi-Family
Housing Bonds, Series 1990 (Affordable Housing
Preservation Foundation Project), Subseries A (FHA
Insured Mortgage Loans-Lawless Gardens Project):
775,000 7.650%, 7/01/07 AAA 1/02 at 105 861,769
6,780,000 7.650%, 12/31/31 AAA 1/02 at 105 7,426,676
10,875,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue
Bonds, The University of Chicago, Series 1985, Conversion To A Fixed
Interest Rate, 5.700%, 12/01/25 Aa1 12/03 at 102 10,566,368
1,585,000 Illinois Housing Development Authority, Multi-Family Housing Bonds,
1991 Series C, 7.400%, 7/01/23 A1 7/01 at 102 1,670,606
14,605,000 City of Chicago, General Obligation Bonds (Emergency Telephone System),
Series 1993, 5.625%, 1/01/23 Aaa 1/03 at 102 14,194,746
5,000,000 City of Chicago, General Obligation Bonds, Project and Refunding Series
1995B, 5.125%, 1/01/25 Aaa 1/06 at 102 4,582,450
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5%
5,060,000 Indiana State Office Building Commission, Capital Complex Revenue
Bonds, Series 1987 (State Office Building IIFacility), 8.750%, 7/01/12
(Pre-refunded to 7/01/97) Aaa 7/97 at 102 5,323,980
8,640,000 Avon Community School Building Corporation, First Mortgage Bonds,
Series 1994 (Hendricks County, Indiana), 5.500%, 1/01/16 Aaa 1/04 at 101 8,356,262
5,310,000 Beacon Heights Housing Development Corporation, 1991 Multi-Family
Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-Section 8
Assisted Project), Series A, 7.625%, 2/01/21 AAA 6/01 at 100 5,611,820
5,770,000 Fremont Middle School Building Corporation, First Mortgage Refunding
Bonds, Series 1994 A, Steuben County, Indiana, 5.250%, 1/15/13 Aaa 1/04 at 101 5,547,336
1,125,000 Michigan City Housing Development Corporation, 1991 Multi-Family
Mortgage Revenue Refunding Bonds (FHA Insured Mortgage-Section 8
Assisted Project), Series A, 7.625%, 2/01/21 AAA 6/01 at 100 1,188,945
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.6%
9,405,000 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series
1991C (Shawnee Mission Medical Center, Inc. Project), 7.250%, 9/01/04 A- 9/01 at 102 9,998,361
8,800,000 City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991B
(Shawnee Mission Medical Center, Inc. Project), 7.250%, 9/01/21 A- 9/01 at 102 9,319,816
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.9%
3,015,000 Lakeland Wesley Village, Inc., Mortgage Revenue Refunding Bonds
(Lakeland Wesley Village I Elderly Section 8 Assisted Project/FHA
Insured Mortgage), Series 1991, 7.500%, 11/01/21 Aa 11/01 at 103 3,201,176
3,500,000 Regional Airport Authority of Louisville and Jefferson County, Kentucky,
Airport System Revenue Bonds, 1993 Series C, 5.500%, 7/01/23
(Alternative Minimum Tax) Aaa 7/03 at 102 3,351,215
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.2%
1,655,000 Calcasieu Parish Public Trust Authority, Mortgage Revenue Refunding
Bonds, 1991 Series A, 7.750%, 6/01/12 A1 6/01 at 103 1,781,608
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT.CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS - 4.8%
$ 2,000,000 Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, Lowell General Hospital Issue, Series A, 8.400%, 6/01/11 Baa1 6/01 at 102 $ 2,183,860
2,100,000 Massachusetts Housing Finance Agency, Residential Housing Revenue
Bonds, 1988 Series A, 8.400%, 8/01/21 (Alternative Minimum Tax) BBB+ 8/98 at 102 2,208,633
1,660,000 Massachusetts Housing Finance Agency, Residential Housing Revenue
Bonds, 1989 Series A, 8.200%, 8/01/27 (Alternative Minimum Tax) BBB+ 8/99 at 102 1,752,877
19,025,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1990
Series A, 6.000%, 4/01/20 A 4/00 at 100 19,079,031
4,385,000 Boston Housing Development Corporation, Mortgage Revenue Refunding
Bonds, Series 1994A (FHA Insured Mortgage Loans-Section 8 Assisted
Projects), 5.500%, 7/01/24 Aaa 1/04 at 102 4,187,017
6,300,000 Somerville Housing Authority, Mortgage Revenue Bonds, Series 1990
(GNMA Collateralized - Clarendon Hill Towers Project),
7.950%, 11/20/30 AAA 5/00 at 102 6,714,603
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.2%
7,890,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds
(The Detroit Medical Center Obligated Group), Series 1991A,
7.500%, 8/15/11 A 8/01 at 102 8,651,464
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.4%
4,431,644 The Chisago County Housing and Redevelopment Authority, The
Southcentral Multi-County Housing and Redevelopment Authority,
The Stearns County Housing and Redevelopment Authority, Single
Family Mortgage Revenue Bonds, FNMA, Series 1994B,
7.050%, 9/01/27 (Alternative Minimum Tax) AAA3/04 at 102 27/32 4,718,105
The Dakota Washington, and Stearns Counties Housing and Redevelopment
Authority, Single Family Mortgage Revenue Refunding Bonds
(Fannie Mae Mortgage-Backed Securities Program), Series
1994A:
3,195,000 6.600%, 9/01/17 (Alternative Minimum Tax) AAA 3/04 at 102 3,330,149
2,255,000 6.700%, 3/01/21 (Alternative Minimum Tax) AAA 3/04 at 102 2,359,767
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.2%
1,475,000 Goodman Housing Development Corporation, 1991 Multi-Family
Mortgage Revenue Refunding Bonds (Goodhaven Manor-FHA Insured
Mortgage, Section 8 Assisted Project), Series A, 7.625%, 2/01/22 AAA 8/01 at 100 1,559,518
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.5%
10,550,000 Nebraska Investment Finance Authority, Single Family Housing Revenue
Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 10,977,486
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.4%
10,000,000 Clark County School District, Nevada, General Obligation (Limited
Tax), School Improvement Bonds, Series 1996, 6.000%, 6/15/15 Aaa 6/06 at 101 10,271,900
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.1%
4,420,000 New Jersey Housing and Mortgage Finance Agency, Section 8 Bonds,
1991 Series A, 6.850%, 11/01/06 AA+ 11/01 at 102 4,757,246
18,835,000 The Pollution Control Financing Authority of Salem County, Pollution
Control Revenue Refunding Bonds, 1993 Series C (Public Service Electric
& Gas Company Project), 5.550%, 11/01/33 Aaa 11/03 at 102 18,246,218
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.3%
1,690,000 New Mexico Mortgage Finance Authority, Single Family Mortgage
Program Senior Bonds, 1989 Series A (Federally Insured or Guaranteed
Mortgage Loans), 7.800%, 3/01/21 (Alternative Minimum Tax) AA- 9/99 at 102 1,765,543
14,050,000 City of Farmington, New Mexico, Pollution Control Refunding Revenue
Bonds (Southern California Edison Company Four Corners Project),
1991 Series A, 7.200%, 4/01/21 A+ 4/01 at 102 15,296,657
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK - 7.1%
$ 6,000,000 New York Local Government Assistance Corporation (A Public Benefit
Corporation of the State of New York), Series 1991D Bonds,
7.000%, 4/01/18 (Pre-refunded to 4/01/02) Aaa 4/02 at 102 $ 6,797,100
1,750,000 New York State Medical Care Facilities Finance Agency, Hospital and
Nursing Home, FHA Insured Mortgage Revenue Bonds, 1988,
8.000%, 2/15/28 (Pre-refunded to 8/15/98) AAA 8/98 at 102 1,899,713
New York State Medical Care Facilities Finance Agency,
Mental Health Service Facilities Improvement Revenue
Bonds, 1991 Series B:
1,615,000 7.600%, 2/15/06 Baa1 8/01 at 102 1,771,849
1,590,000 7.600%, 8/15/06 Baa1 8/01 at 102 1,744,421
8,050,000 7.625%, 8/15/17 Baa1 8/01 at 102 9,024,131
5,425,000 New York State Medical Care Facilities Finance Agency, Mental Health
Services Facilities Improvement Revenue Bonds, 1991 Series D,
7.400%, 2/15/18 Baa1 2/02 at 102 6,016,868
6,000,000 New York State Urban Development Corporation, Correctional Capital
Facilities Revenue Bonds, Series 2, 7.500%, 1/01/18 (Pre-refunded
to 1/01/01) Aaa 1/01 at 102 6,792,060
3,410,000 State of New York Mortgage Agency, Mortgage Revenue Bonds, Ninth
Series B, 8.000%, 10/01/02 (Alternative Minimum Tax) Aa 7/97 at 102 3,519,870
The City of New York General Obligation Bonds, Fiscal 1991 Series F,
Tax-Exempt Bonds:
4,600,000 8.250%, 11/15/10 (Pre-refunded to 11/15/01) Aaa 11/01 at 101 1/2 5,432,554
400,000 8.250%, 11/15/10 Baa1 11/01 at 101 1/2 450,228
7,130,000 8.250%, 11/15/15 (Pre-refunded to 11/15/01) Aaa 11/01 at 101 1/2 8,420,459
620,000 8.250%, 11/15/15 Baa1 11/01 at 101 1/2 708,114
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.4%
18,555,000 North Carolina Eastern Municipal Power Agency, Power System Revenue
Bonds, Refunding Series 1993 B, 5.500%, 1/01/17 Aaa 1/03 at 100 18,036,202
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.7%
2,865,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), Series 1989D, 8.500%, 11/15/00
(Alternative Minimum Tax) N/R 11/97 at 101 2,931,697
1,355,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), Series 1989C, 8.400%, 11/15/09
(Alternative Minimum Tax) N/R 11/00 at 102 1,412,086
535,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), Series 1990D, 8.500%, 5/15/00
(Alternative Minimum Tax) N/R No Opt. Call 600,559
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 5.3%
16,090,000 Oklahoma County Home Finance Authority (Oklahoma County,
Oklahoma), Single Family Mortgage Revenue Refunding Bonds, 1991
Series A, 8.750%, 7/01/12 A1 7/01 at 102 17,036,414
21,025,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series
1991, 7.600%, 12/01/30 (Alternative Minimum Tax) Baa2 6/01 at 102 22,648,551
- ------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5%
3,750,000 Hospital Facility Authority of Hillsboro, Oregon, Hospital Revenue and
Advance Refunding Bonds, Series 1993 (Tuality Healthcare),
5.750%, 10/01/12 BBB+ 10/04 at 102 3,583,500
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.9%
3,000,000 Pennsylvania Higher Education Assistance Agency Student Loan Revenue
Bonds, Fixed Rate Bonds, 1991 Series C, 7.150%, 9/01/21 (Alternative
Minimum Tax) Aaa 9/01 at 102 3,201,330
10,000,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue Bonds,
Sixteenth Series, 7.000%, 8/01/18 (Pre-refunded to 8/01/01) AAA 8/01 at 100 11,059,800
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
RHODE ISLAND - 1.1%
Rhode Island Housing and Mortgage Finance Corporation,
Homeownership Opportunity Bonds:
$ 4,650,000 8.200%, 10/01/17 (Alternative Minimum Tax) AA+ 10/98 at 102 $ 4,882,733
3,535,000 8.250%, 10/01/22 (Alternative Minimum Tax) AA+ 10/98 at 102 3,683,647
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.7%
5,000,000 Oconee County, South Carolina, Pollution Control Facilities Revenue
Refunding Bonds, Series 1993 (Duke Power Company Project),
5.800%, 4/01/14 Aa2 4/03 at 102 5,099,700
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.3%
7,790,000 City of Sioux Falls, South Dakota, Variable Rate Demand Industrial
Revenue Refunding Bonds, Series 1989 (Great Plains Hotel Corporation
Project), 8.500%, 11/01/16 (Alternative Minimum Tax) (Pre-refunded
to 10/15/14) AAA 10/14 at 100 9,975,329
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.4%
9,810,000 Tennessee Housing Development Agency, Homeownership Program
Bonds, Issue V, 7.650%, 7/01/22 (Alternative Minimum Tax) Aa 7/01 at 102 10,274,209
7,220,000 The Metropolitan Government of Nashville and Davidson County
(Tennessee), General Obligation Multi-Purpose Improvement Bonds,
Series 1994, 6.150%, 5/15/25 Aa 5/02 at 102 7,436,672
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.6%
9,505,000 City of Austin, Texas, Water, Sewer and Electric Refunding Revenue
Bonds, Series 1982, 14.250%, 11/15/06 (Pre-refunded to 5/15/97) Aaa 5/97 at 100 10,032,337
8,580,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue
Bonds (Texas Utilities Electric Company Project), Series 1990A,
8.125%, 2/01/20 (Alternative Minimum Tax) BBB+ 2/00 at 102 9,418,352
6,480,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue
Bonds (Texas Utilities Electric Company Project), Series 1989A,
8.250%, 1/01/19 (Alternative Minimum Tax) BBB+ 1/99 at 102 6,991,790
3,500,000 Comal County Health Facilities Development Corporation, Hospital
Revenue Refunding Bonds (McKenna Memorial Hospital FHA Insured
Project), Series 1991, 7.375%, 1/15/21 AAA 1/01 at 102 3,668,735
13,310,000 El Paso Housing Finance Corporation, Single Family Mortgage Revenue
Refunding Bonds, Series 1991A, 8.750%, 10/01/11 A 4/01 at 103 14,415,396
3,225,000 The Harrison County Finance Corporation, Single Family Mortgage
Revenue Refunding Bonds, Series 1991, 8.875%, 12/01/11 A 12/01 at 103 3,430,626
2,195,000 Panhandle Regional Housing Finance Corporation, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series
1991A, 6.500%, 5/01/24 (Alternative Minimum Tax) AAA 5/01 at 100 2,285,258
7,020,000 Winter Garden Housing Finance Corporation, Single Family Mortgage
Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities
Program), Series 1994, 6.950%, 10/01/27 (Alternative Minimum Tax) AAA 4/04 at 103 7,386,093
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.3%
16,145,000 Intermountain Power Agency (Utah), Power Supply Revenue Bonds,
Series 1987B, 7.200%, 7/01/19 Aa 7/97 at 102 16,775,624
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.6%
5,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding
Revenue Bonds, Series 1990C, 8.000%, 7/01/17 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 5,689,100
4,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding
Revenue Bonds, Series 1989B, 7.400%, 7/01/09 (Pre-refunded to 1/01/00) Aa1 1/00 at 102 4,429,760
2,000,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding
Revenue Bonds, Series 1990A, 7.375%, 7/01/12 (Pre-refunded to 7/01/00) AAA 7/00 at 102 2,227,980
5,000,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding
Revenue Bonds, Series 1990B, 7.000%, 7/01/12 (Pre-refunded to 7/01/00) Aa1 7/00 at 102 5,523,300
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 10,010,000 Washington Public Power Supply System Nuclear Project No. 2 Refunding
Revenue Bonds, Series 1992A, 6.250%, 7/01/12 Aa1 7/02 at 102 $ 10,225,615
5,000,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding
Revenue Bonds, Series 1994A, 5.375%, 7/01/11 Aa1 7/04 at 102 4,793,950
7,560,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding
Revenue Bonds, Series 1989B, 5.500%, 7/01/17 Aa1 1/00 at 100 7,136,338
3,935,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding
Revenue Bonds, Series 1993C 5.375%, 7/01/15 Aa1 7/03 at 102 3,700,671
24,060,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding
Revenue Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 26,509,067
Municipality of Metropolitan Seattle, (Seattle, Washington), Sewer
Refunding Revenue Bonds, Series Z:
2,160,000 5.450%, 1/01/16 Aaa 1/03 at 102 2,076,667
3,095,000 5.450%, 1/01/17 Aaa 1/03 at 102 2,972,252
2,490,000 5.450%, 1/01/19 Aaa 1/03 at 102 2,365,474
1,800,000 5.450%, 1/01/20 Aaa 1/03 at 102 1,708,037
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.8%
11,080,000 Wisconsin Center District, Junior Dedicated Tax Revenue Bonds, Series
1996B, 5.750%, 12/15/27 A 12/06 at 101 11,023,491
2,100,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds
(Wausau Hospitals, Inc. Project), Series 1991B, 6.700%, 8/15/20 Aaa 2/01 at 102 2,259,494
- ------------------------------------------------------------------------------------------------------------------------------------
$683,571,644 Total Investments - (cost $674,808,932) - 96.8% 721,573,363
============------------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.6%
$ 1,500,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility
Revenue Bonds (American Airlines, Inc. Project), Series 1983B, Variable
Rate Demand Bonds, 3.650%, 12/01/17+ P-1 1,500,000
1,900,000 The Metropolitan Nashville Airport Authority, Special Facility Revenue
Bonds (American Airlines, Inc. Project), Series B, Variable Rate Demand
Bonds, 3.650%, 10/01/12+ A-1+ 1,900,000
1,000,000 Parish of West Feliciana, State of Louisiana, Multiple Rate Demand
Pollution Control Revenue Bonds (Gulf States Utilities Company
Project), Series 1986, Variable Rate Demand Bonds, 3.650%, 4/01/16+ VMIG-1 1,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 4,400,000 Total Temporary Investments - 0.6% 4,400,000
===========-------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 19,085,426
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $745,058,789
====================================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 49 $339,895,025 48%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 22 131,903,245 18
PORTFOLIO OF A+ A1 4 35,785,285 5
INVESTMENTS A, A- A, A2, A3 8 81,287,720 11
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 16 110,326,062 15
TEMPORARY Non-rated Non-rated 5 22,376,026 3
INVESTMENTS):
- -----------------------------------------------------------------------------------------------------------------------
TOTAL 104 $721,573,363 100%
=======================================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. (NQU)
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 2.0%
$ 2,100,000 Alaska Housing Finance Corporation, Collateralized Bonds, 1991 First
Series (Veterans Mortgage Program) Issue A-1, 7.125%, 12/01/30 Aaa 6/01 at 102 $ 2,195,487
6,750,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds,
1992 Series A, 6.600%, 12/01/23 (Pre-refunded to 12/01/02) Aa 12/02 at 102 7,515,923
14,590,000 Alaska State Housing Finance Corporation, Governmental Purpose Bonds,
1995 Series A, 5.875%, 12/01/30 Aaa 12/05 at 102 14,535,871
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.7%
2,215,000 The Industrial Development Authority of the County of Maricopa
(Arizona), Single Family Mortgage Revenue Refunding Bonds, 1991
Series A, 7.500%, 8/01/12 Aa 8/01 at 102 2,442,702
5,610,000 Yuma Regional Medical Center on behalf of Hospital District No. 1 of
Yuma County, Arizona, Hospital Revenue Improvement and Refunding
Bond (Yuma Regional Medical Center Project) Series 1992,
8.000%, 8/01/17 A 8/02 at 101 1/2 6,379,524
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9%
4,445,000 Arkansas Development Finance Authority, Single Family Mortgage
Revenue Refunding Bonds, 1991 Series A (FHA Insured or VA
Guaranteed Mortgage Loans), 8.000%, 8/15/11 AA 8/01 at 103 4,801,845
6,500,000 Arkansas Development Finance Authority, Single Family Mortgage
Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program),
6.700%, 7/01/27 (Alternative Minimum Tax) AAA 7/05 at 102 6,720,935
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.7%
3,000,000 California Health Facilities Financing Authority, Kaiser Permanente,
Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 AA 5/03 at 102 2,859,270
4,310,000 California Housing Finance Agency Home Mortgage Revenue Bonds,
1991 Series G, 7.050%, 8/01/27 (Alternative Minimum Tax) Aa 8/01 at 102 4,508,993
3,500,000 State Public Works Board of the State of California, Lease Revenue Bonds
(The Trustees of The California State University), 1992 Series A (Various
California State University Projects), 6.625%, 10/01/10 A 10/02 at 102 3,783,150
17,000,000 State Public Works Board of the State of California Lease Revenue Bonds
(Department of Corrections), 1994 Series A (California State of Prison-
Monterey County (Soledad II)), 7.000%, 11/01/19 (Pre-refunded to
11/01/04) A 11/04 at 102 19,885,240
Brea Public Financing Authority (Orange County,
California), 1991 Tax Allocation Revenue Bonds, Series A
(Redevelopment Project AB):
10,580,000 7.000%, 8/01/15 (Pre-refunded to 8/01/01) Aaa 8/01 at 102 11,955,188
4,420,000 7.000%, 8/01/15 Aaa 8/01 at 102 4,901,780
5,000,000 The Community Redevelopment Agency of the City of Los Angeles,
California, Central Business District Redevelopment Project Tax
Allocation Refunding Bonds, Series G, 6.750%, 7/01/10 BBB 7/97 at 102 5,105,500
5,000,000 Department of Water and Power of the City of Los Angeles, California,
` Water Works Revenue Bonds, Issue of 1992, 6.500%, 4/15/32 Aa 4/02 at 102 5,275,700
7,210,000 Northern California Power Agency, Hydroelectric Project Number One
Revenue Bonds, Refunding Series E, 7.150%, 7/01/24 A 7/98 at 102 7,573,817
3,000,000 County of Orange, California, 1996 Recovery Certificates of Participation,
Series A, 6.000%, 7/01/26 Aaa 7/06 at 102 3,084,660
2,000,000 City of Redwood City Public Financing Authority, 1991 Local Agency
Revenue Bonds, Series B, 7.250%, 7/15/11 A- 7/01 at 102 2,185,900
10,000,000 The City of San Diego, Industrial Development Revenue Refunding Bonds
(San Diego Gas & Electric Company) 1993 Series C, 5.900%, 9/01/18 Aaa 9/03 at 102 10,098,400
9,190,000 City of San Jose Financing Authority (Santa Clara County, California) 1993
Revenue Bonds, Series C (Convention Center Refunding Project),
6.400%, 9/01/22 A1 9/01 at 102 9,457,429
3,375,000 Southern California Home Financing Authority, Single Family Mortgage
Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities
Program), 1991 Issue A, 7.350%, 9/01/24 (Alternative Minimum Tax) AAA 3/01 at 102 3,539,396
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 6.3%
$ 4,690,000 Colorado Housing Finance Authority, Multi-Family Housing Insured
Mortgage Revenue Bonds, 1979 Series A, 6.900%, 10/01/21 Aa 10/97 at 100 $ 4,700,271
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A:
9,535,000 8.500%, 11/15/23 (Alternative Minimum Tax) Baa 11/00 at 102 10,926,157
17,350,000 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/00 at 102 19,512,678
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
12,910,000 8.750%, 11/15/23 (Alternative Minimum Tax) Baa 11/01 at 102 15,285,182
4,140,000 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 4,646,984
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
4,000,000 7.300%, 11/15/00 (Alternative Minimum Tax) Baa No Opt. Call 4,340,960
4,000,000 7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 4,432,560
4,850,000 7.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 5,093,470
1,500,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C, 6.350%, 11/15/01 (Alternative Minimum Tax) Baa No Opt. Call 1,583,040
5,110,000 County of Pueblo, Colorado, Hospital Refunding and Improvement
Revenue Bonds (Parkview Episcopal Medical Center, Inc. Project), Series
1991B, 8.300%, 9/01/11 (Pre-refunded to 9/01/01) BBB 9/01 at 100 5,937,820
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.8%
7,725,000 Charlotte County, Florida, Utility System Refunding Revenue Bonds,
Series 1996A, 6.200%, 10/01/23 Aaa 10/97 at 100 7,775,367
5,250,000 Dade County Industrial Development Authority, Solid Waste Disposal
Revenue Bonds (Florida Power and Light Company Project), Series 1991,
7.150%, 2/01/23 (Alternative Minimum Tax) AA- 2/01 at 102 5,706,068
13,870,000 Palm Beach County Health Facilities Authority, Hospital Revenue
Refunding Bonds, Series 1988 (JFK Medical Center, Inc. Projects),
8.875%, 12/01/18 (Pre-refunded to 12/01/98) N/R 12/98 at 102 15,351,732
8,485,000 St. Lucie County, Florida, Solid Waste Disposal Revenue Bonds (Florida
Power and Light Company Project), Series 1991, 7.150%, 2/01/23
(Alternative Minimum Tax) AA- 2/01 at 102 9,239,062
City of Tampa, Florida, Capital Improvement Program Revenue Bonds,
Series 1988A:
1,665,000 8.000%, 10/01/02 AA 10/98 at 100 1,778,670
5,830,000 8.250%, 10/01/18 AA 10/98 at 100 6,211,923
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.1%
9,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series O,
8.125%, 1/01/17 A 1/98 at 102 9,566,100
Clayton County Hospital Authority Revenue Anticipation
Certificates (Southern Regional Medical Center Project),
Georgia, Series 1991:
2,900,000 6.500%, 8/01/10 Aaa 8/01 at 102 3,111,555
4,500,000 7.000%, 8/01/13 Aaa 8/01 at 102 4,968,225
3,000,000 Clayton County Housing Authority, Multi-Family Housing Revenue
Bonds, Spring Lake Apartments Project, 8.125%, 12/01/05 (Mandatory
put 12/01/97) Baa1 No Opt. Call 3,056,850
15,900,000 The Fulton-DeKalb Hospital Authority, Georgia, Revenue Certificates,
Series 1991 (Grady Memorial Hospital), 6.900%, 1/01/20
(Pre-refunded to 1/01/01) Aaa 1/01 at 102 17,601,300
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 7.8%
6,460,000 Illinois Development Finance Authority, Multi-Family Housing Revenue
Bonds, Series 1992 (Town and Garden Apartments Project),
7.800%, 3/01/06 (Alternative Minimum Tax) BBB+ 3/02 at 102 6,823,504
14,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1991
(Northwestern Memorial Hospital), 6.750%, 8/15/11 Aa 8/01 at 102 15,416,110
3,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1991
(Sherman Hospital Project), 6.750%, 8/01/21 Aaa 8/01 at 102 3,252,750
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 5,265,000 Illinois Health Facilities Authority (Rockford Memorial Hospital), Revenue
Refunding Bonds, Series 1991A, 6.000%, 8/15/21 Aaa 8/01 at 100 $ 5,278,531
2,835,000 Illinois Housing Development Authority, Section 8 Elderly Housing
Revenue Bonds (Garden House of Maywood Development), Series 1992,
7.000%, 9/01/18 A 9/02 at 102 2,980,889
6,000,000 Central Lake County Joint Action Water Agency, Lake County, Illinois,
Water Revenue Bonds, Series 1990A, 7.000%, 5/01/19 (Pre-refunded
to 5/01/00) Aaa 5/00 at 102 6,596,820
10,000,000 Central Lake County Joint Action Water Agency, Lake County, Illinois,
Water Revenue Bonds, Series 1991, 7.000%, 5/01/20 (Pre-refunded to
5/01/01) Aaa 5/01 at 102 11,161,100
7,610,000 City of Chicago, Chicago O'Hare International Airport, Special Facility
Revenue Bonds (United Air Lines, Inc. Project), Series 1984C,
8.200%, 5/01/18 Baa2 5/99 at 103 8,274,810
6,665,000 City of Chicago, Chicago O'Hare International Airport, Special Facility
Revenue Bonds (United Air Lines, Inc. Project), Series 1984B,
8.850%, 5/01/18 Baa2 11/00 at 103 7,606,298
24,430,000 The County of Cook, Illinois, General Obligation Bonds, Series 1991,
6.750%, 11/01/18 (Pre-refunded to 11/01/01) Aaa 11/01 at 102 27,228,701
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.3%
5,905,000 Indiana Health Facility Finance Authority, Hospital Revenue Bonds,
Series 1992 (Community Hospitals Projects), 7.000%, 7/01/11
(Pre-refunded to 7/01/01) Aaa 7/01 at 102 6,611,651
4,000,000 The Indianapolis Local Public Improvement Bond Bank, Series 1992 D
Bonds, 6.500%, 2/01/22 A+ 2/98 at 100 4,054,240
5,125,000 City of Petersburg, Indiana, Pollution Control Refunding Revenue Bonds,
Series 1995A (Indianapolis Power and Light Company Project)
6.625%, 12/01/24 Aa2 12/04 at 102 5,507,684
- ------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
4,500,000 Polk County, Iowa, Health Facilities Revenue Bonds, Catholic Health
Corporation (Mercy Health Center of Central Iowa Project), Series 1991,
6.750%, 11/01/15 Aaa 11/01 at 101 4,882,860
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.5%
City of Merriam, Kansas, Hospital Refunding Revenue Bonds, Series 1991B
(Shawnee Mission Medical Center, Inc. Project):
7,380,000 7.250%, 9/01/11 A- 9/01 at 102 7,896,231
10,000,000 7.250%, 9/01/21 A- 9/01 at 102 10,590,700
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.3%
3,000,000 Kentucky Development Finance Authority, Hospital Facilities Revenue
Bonds, Series 1991 (St. Claire Medical Center, Inc. Project),
7.125%, 9/01/21 (Pre-refunded to 9/01/01) N/R 9/01 at 102 3,348,600
10,225,000 Kentucky Housing Corporation, Housing Revenue Bonds (Federally
Insured or Guaranteed Mortgage Loans), 1995 Series B, 6.625%, 7/01/26
(Alternative Minimum Tax) Aaa 1/05 at 102 10,594,838
10,000,000 City of Danville, Kentucky, Multi-City Lease Revenue Bonds (Louisville
and Jefferson County Metropolitan Sewer District Sewer and Drainage
System Revenue Project), Fixed Rate Series 1991-G, 6.800%, 3/01/19
(Pre-refunded to 3/01/02) Aaa 3/02 at 102 11,178,600
2,950,000 Greater Kentucky Housing Assistance Corporation, Mortgage Revenue
Refunding Bonds, Series 1992B (FHA Insured Mortgage Loans-Section 8
Assisted Projects), 7.625%, 1/01/25 Aaa 1/00 at 102 3,126,204
9,100,000 Jefferson County, Kentucky, Multi-Family Housing Revenue Refunding
Bonds (Canter Chase Project), Series 1991, 6.750%, 10/01/21
(Mandatory put 10/01/98) Baa1 10/97 at 100 9,110,829
3,030,000 City of Owensboro, Kentucky, Water Revenue Improvement and
Refunding Bonds, Series 1992, 6.250%, 9/15/17 Aaa 9/02 at 100 3,166,411
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MARYLAND - 1.8%
Community Development Administration, Department of Housing and
Community Development, State of Maryland, Single Family Program
Bonds, 1991 Fourth Series:
$ 13,235,000 7.450%, 4/01/20 (Alternative Minimum Tax) Aa 4/01 at 102 $ 13,930,367
3,990,000 7.450%, 4/01/32 (Alternative Minimum Tax) Aa 4/01 at 102 4,190,258
3,385,000 Community Development Administration, Department of Housing and
Community Development, State of Maryland, Multi-Family Housing
Revenue Bonds (Insured Mortgage Loans), 1991 Series E, 7.100%, 5/15/28 Aa 5/01 at 102 3,550,323
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.9%
Massachusetts Bay Transportation Authority, General Transportation
System Bonds, 1991 Series A:
10,225,000 7.000%, 3/01/11 (Pre-refunded to 3/01/01) Aaa 3/01 at 102 11,408,339
19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) Aaa 3/01 at 102 21,868,308
5,100,000 Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, New England Medical Center Hospitals Issue, Series F,
6.625%, 7/01/25 Aaa 7/02 at 102 5,527,227
15,000,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue
Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 N/R 7/01 at 103 16,721,850
3,300,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue
Bonds, SEMASS Projects, Series 1991B, 9.250%, 7/01/15 (Alternative
Minimum Tax) N/R 7/01 at 103 3,690,192
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7%
5,000,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (The
Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 A 8/01 at 102 5,482,550
17,875,000 Michigan Strategic Fund Limited Obligation Refunding Revenue Bonds
(The Detroit Edison Company Pollution Control Bonds Project),
Collateralized Series 1991DD, 6.875%, 12/01/21 Aaa 12/01 at 102 19,754,914
8,500,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Waste
Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative
Minimum Tax) A1 12/02 at 102 9,179,235
7,000,000 City of Grand Rapids, Michigan, Water Supply System Refunding
Revenue Bonds Series 1991, 6.250%, 1/01/11 Aaa 1/01 at 102 7,362,180
3,275,000 Whitehall District Schools General Obligation, 6.150%, 5/01/18 AA 5/02 at 102 3,383,075
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.0%
4,900,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds,
1994 Series J, 6.950%, 7/01/26 (Alternative Minimum Tax) AA+ 1/04 at 102 5,136,033
3,655,000 The Dakota County Housing and Redevelopment Authority, The
Washington County Housing and Redevelopment Authority, and The
City of Bloomington, Minnesota, Single Family Residential Mortgage
Revenue Bonds (GNMA Mortgage-Backed Program), Series 1988,
8.450%, 9/01/19 (Alternative Minimum Tax) Aaa No Opt. Call 4,622,259
2,465,000 Washington County Housing and Redevelopment Authority, Multi-
Family Housing Revenue Bonds (FHA Insured Mortgage Loan-
Cottages Phase III Project), Series 1991, 7.650%, 8/01/32 (Alternative
Minimum Tax) AAA 8/01 at 102 2,635,110
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6%
3,405,000 Canton Housing Development Corporation, 1990 Multi-Family
Mortgage Revenue Refunding Bonds (Canton Estates Apartments
Project - FHA Insured Mortgage, Section 8 Assisted Project), Series A,
7.750%, 8/01/24 AAA No Opt. Call 4,156,994
1,245,000 Charter Mortgage Corporation, 1990 Multi-Family Mortgage Revenue
Refunding Bonds (Church Garden Apartments - FHA Insured Mortgage,
Section 8 Assisted Project), Series A, 7.750%, 8/01/21 AAA 8/01 at 100 1,496,390
1,365,000 Pearl Housing Development Corporation, 1990 Multi-Family Mortgage
Revenue Refunding Bonds (Rose Garden Apartments Project - FHA
Insured Mortgage, Section 8 Assisted Project), Series A, 7.750%, 8/01/22 AAA 2/01 at 100 1,430,684
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MISSOURI - 1.8%
Health and Educational Facilities Authority of the State of Missouri, Health
Facilities Refunding and Improvement Revenue Bonds (Heartland
Health System's Project), Series 1989:
$ 3,070,000 7.625%, 10/01/00 BBB+ 10/99 at 102 1/2 $ 3,388,727
6,500,000 8.125%, 10/01/10 BBB+ 10/99 at 102 1/2 7,262,580
The Industrial Development Authority of the County of Jackson, State of
Missouri, Health Care System Revenue Bonds, St. Mary's Hospital of
Blue Springs Issue, Series 1994:
5,730,000 6.500%, 7/01/12 Baa1 7/02 at 102 5,794,061
5,605,000 7.000%, 7/01/22 Baa1 7/02 at 102 5,835,870
- ------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.6%
7,000,000 City of Forsyth, Rosebud County, Montana, Pollution Control Revenue
Refunding Bonds (Puget Sound Power and Light Company Colstrip
Project), Series 1992, 7.050%, 8/01/21 Aaa 8/01 at 102 7,838,040
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6%
11,000,000 Nebraska Investment Finance Authority, Single Family Housing Revenue
Bonds, 1995 Series A, 6.800%, 3/01/35 (Alternative Minimum Tax) AAA 3/05 at 101 1/2 11,445,720
8,000,000 Nebraska Investment Finance Authority, Single Family Housing Revenue
Bonds, 1995 Series B, 6.450%, 3/01/35 AAA 3/05 at 101 1/2 8,119,600
- ------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.6%
2,570,000 New Hampshire Housing Finance Authority, Single Family Residential
Mortgage Bonds, 1988 Series A, 8.500%, 7/01/14 (Alternative
Minimum Tax) Aa 7/98 at 103 2,705,902
4,515,000 New Hampshire Housing Finance Authority, Single Family Residential
Mortgage Bonds, 1991 Series C, 7.100%, 1/01/23 Aa 7/01 at 102 4,748,696
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.1%
13,000,000 Pollution Control Financing Authority of Camden County (Camden
County, New Jersey), Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991 D, 7.250%, 12/01/10 BBB+ 12/01 at 102 13,391,820
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.2%
Dormitory Authority of the State of New York, State
University Educational Facilities, Revenue Bonds, Series
1990A:
13,000,000 7.400%, 5/15/01 Baa1 5/00 at 102 14,107,990
11,750,000 7.400%, 5/15/12 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 13,223,568
8,325,000 Dormitory Authority of the State of New York, Menorah Campus, Inc.,
FHA-Insured Mortgage Revenue Bonds, Series 1991, 7.400%, 2/01/31 AA 8/01 at 102 9,229,678
21,075,000 New York Local Government Assistance Corporation, New York, Series
1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) Aaa 4/01 at 102 23,986,301
New York State Medical Care Facilities Finance Agency, FHA-Insured
Mortgage Project Revenue Bonds, 1995 Series F:
4,400,000 6.200%, 8/15/15 Aa 8/05 at 102 4,555,276
4,250,000 6.300%, 8/15/25 Aa 8/05 at 102 4,378,648
8,000,000 New York State Medical Care Facilities Finance Agency, New York
Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A
(AMBAC Insured Series), 6.500%, 8/15/29 Aaa 2/05 at 102 8,611,600
5,000,000 New York State Medical Care Facilities Finance Agency, Brookdale
Hospital Medical Center Secured Hospital Revenue Bonds, 1995
Series A, 6.850%, 2/15/17 Baa 2/05 at 102 5,232,250
8,025,000 New York State Thruway Authority, General Revenue Bonds, Series C,
6.000%, 1/01/25 Aaa 1/05 at 102 8,236,138
2,185,000 N.F. Housing and Commercial Rehabilitation Corporation, 1992 Multi-
Family Mortgage Revenue Refunding Bonds (FHA Insured Mortgage,
Section 8 Assisted Project), 7.350%, 8/01/23 AA 8/03 at 100 2,498,242
5,500,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series A,
3.000%, 8/15/02 Baa1 No Opt. Call 4,868,545
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 2,090,000 The City of New York (New York), General Obligation Bonds, Fiscal
1992 Series H, 7.000%, 2/01/18 Baa1 2/02 at 101 1/2 $ 2,233,416
6,000,000 The City of New York (New York), General Obligation Bonds, Fiscal
1993 Series B, 6.750%, 10/01/17 Baa1 10/02 at 101 1/2 6,235,860
5,500,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series B,
7.250%, 8/15/19 Baa1 8/04 at 101 6,041,365
6,750,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series F,
6.625%, 2/15/25 Baa1 2/05 at 101 6,983,145
11,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series J
(Subseries J-1), 6.000%, 2/15/24 Baa1 2/06 at 101 1/2 10,675,830
14,190,000 New York City, New York, Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, Fiscal 1996 Series A, 5.875%, 6/15/25 Aaa 6/05 at 101 14,322,818
3,415,000 Penfield-Crown Oak Housing Development Corporation, 1991 Multi-
Family Mortgage Revenue Refunding Bonds (Crown Oak Estates - FHA
Insured Mortgage, Section 8 Assisted Project), Series A, 7.350%, 8/01/23 AAA 2/03 at 100 3,613,651
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.9%
10,500,000 North Carolina Eastern Municipal Power Agency, Power System Revenue
Bonds, Refunding Series 1991 A, 6.250%, 1/01/03 Baa1 1/02 at 102 10,973,130
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.0%
6,945,000 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program), 1995 Series A-2,
6.625%, 3/01/26 (Alternative Minimum Tax) AAA 3/05 at 102 7,172,310
4,800,000 County of Butler, Ohio, Hospital Facilities Revenue Refunding and
Improvement Bonds, Series 1991 (Fort Hamilton-Hughes Memorial
Hospital Center), 7.500%, 1/01/10 Baa 1/02 at 102 5,116,032
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 5.1%
16,295,000 Oklahoma County Home Finance Authority (Oklahoma County,
Oklahoma), Single Family Mortgage Revenue Refunding Bonds, 1991
Series A, 8.750%, 7/01/12 A1 7/01 at 102 17,253,472
17,510,000 Pottawatomie County Home Finance Authority (Oklahoma), Municipal
Refunding, Collateralized Mortgage Obligations (MR CMO) Series
1991 A, 8.625%, 7/01/10 Aaa No Opt. Call 23,128,609
10,000,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable Rate
Revenue Obligations, 7.375%, 12/01/20 (Alternative Minimum Tax) Baa2 12/00 at 102 10,636,600
10,100,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series 1991,
7.600%, 12/01/30 (Alternative Minimum Tax) Baa2 6/01 at 102 10,879,922
- ------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.6%
8,125,000 Hospital Facility Authority of Hillsboro, Oregon, Hospital Revenue and
Advance Refunding Bonds,Series 1993 (Tuality Healthcare),
5.750%, 10/01/12 BBB+ 10/04 at 102 7,764,250
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.6%
Falls Township Hospital Authority, Refunding Revenue Bonds, The
Delaware Valley Medical Center Project (FHA Insured Mortgage)
Series 1992:
4,525,000 6.900%, 8/01/11 AAA 8/02 at 102 4,726,906
3,000,000 7.000%, 8/01/22 AAA 8/02 at 102 3,133,350
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.5%
5,260,000 Rhode Island Housing and Mortgage Finance Corporation, Mortgage
Finance Revenue Bonds, 1988 Series A (Corporation Supplemental
Insurance Program), 8.250%, 10/01/08 A1 4/98 at 102 5,522,106
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.6%
6,500,000 Lexington County Health Services District, Inc., South Carolina, Hospital
Revenue Bonds, Series 1991, 6.750%, 10/01/18 Aaa 10/01 at 102 7,066,800
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TENNESSEE - 1.1%
$ 2,020,000 Metropolitan Government Nashville and Davidson County Water and
Sewer System, 7.000%, 1/01/14 A1 11/96 at 102 $ 2,065,511
10,300,000 Metropolitan Nashville Airport Authority (Tennessee), Airport Improvement
Revenue Bonds, Refunding Series 1991C, 6.625%, 7/01/07 Aaa 7/01 at 102 11,335,047
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.3%
14,360,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, Series
1990 (American Airlines, Inc. Project), 7.500%, 12/01/29
(Alternative Minimum Tax) Baa2 12/00 at 102 15,306,037
Arlington Independent School District (Tarrant County, Texas),
Unlimited Tax Refunding and Improvement Bonds, Series
1995:
11,635,000 0.000%, 2/15/11 Aaa 2/05 at 71 15/16 5,129,988
13,985,000 0.000%, 2/15/14 Aaa 2/05 at 58 11/16 4,970,828
5,000,000 Brazos River Authority (Texas), Collateralized Revenue Refunding Bonds
(Houston Lighting and Power Company Project), Series 1988D,
7.750%, 10/01/15 A2 10/98 at 102 5,344,250
5,600,000 Dallas-Fort Worth International Airport Facility Improvement
Corporation, American Airlines, Inc. Revenue Bonds, Series 1990,
7.500%, 11/01/25 (Alternative Minimum Tax) Baa2 11/00 at 102 5,964,112
10,960,000 Fort Worth Housing Finance Corporation, Home Mortgage Revenue
Refunding Bonds, Series 1991A, 8.500%, 10/01/11 Aa 10/01 at 103 11,987,500
7,765,000 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds,
Series 1991B, 6.625%, 7/01/22 Aaa 7/01 at 102 8,418,891
18,500,000 City of Houston, Texas, Water and Sewer System, Junior Lien Revenue
Refunding Bonds, Series 1991C, 6.375%, 12/01/17 Aaa 12/01 at 102 19,610,370
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.7%
Vermont Housing Finance Agency, Single Family Housing Bonds,
Series 2:
6,405,000 7.300%, 5/01/25 (Alternative Minimum Tax) A1 11/01 at 102 6,682,593
1,595,000 6.875%, 5/01/25 (Alternative Minimum Tax) A1 11/01 at 102 1,641,734
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.7%
1,000,000 Virginia College Building Authority, Educational Facilities Revenue
Bonds (University of Richmond Project), Series of 1991,
6.400%, 11/01/22 (Mandatory put 11/01/01) Aa 11/99 at 102 1,055,180
10,500,000 Virginia Housing Development Authority, Commonwealth Mortgage
Bonds, 1992 Series A, 7.150%, 1/01/33 Aa1 1/02 at 102 11,050,305
4,000,000 Prince Edward County School Board (Prince Edward County, Virginia
School Construction Project), Certificates of Participation, Series 1996,
5.400%, 1/15/99 N/R 7/97 at 100 4,026,640
3,860,000 Industrial Development Authority of the City of Roanoke, Virginia,
Hospital Revenue Bonds (Roanoke Memorial Hospitals, Community
Hospital of Roanoke Valley and Franklin Memorial Hospital Project),
Series 1990, 6.500%, 7/01/25 (Pre-refunded to 7/01/00) Aaa 7/00 at 100 4,132,091
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.4%
4,750,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1991
(Yakima Valley Memorial Hospital Association, Yakima),
7.250%, 1/01/21 (Pre-refunded to 1/01/01) A 1/01 at 102 5,311,118
15,100,000 Washington Public Power Supply System, Nuclear Project No. 2,
Refunding Revenue Bonds, Series 1990B, 7.000%, 7/01/12
(Pre-refunded to 7/01/00) Aa1 7/00 at 102 16,680,366
4,000,000 Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/11 Aa1 7/04 at 102 3,835,160
14,500,000 Washington Public Power Supply System, Nuclear Project No. 3
Refunding Revenue Bonds, Series 1989B, 7.400%, 7/01/09
(Pre-refunded to 1/01/00) Aa1 1/00 at 102 16,057,880
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 12,445,000 Public Utility District No. 1 of Chelan County, Washington, Columbia-
River Rock Island Hydro-Electric System Revenue Bonds, Series of
1976, 6.375%, 6/01/29 A1 12/96 at 102 $ 12,550,657
3,010,000 Camas School District No. 117, Clark County, Washington, Unlimited
Tax General Obligation Bonds, 1995, 6.000%, 12/01/14 Aaa 12/05 at 100 3,091,420
4,185,000 Douglas County Public Utility District No. 1 Wells Hydroelectric
Project, 8.750%, 9/01/18 A+ 9/06 at 106 5,382,495
12,415,000 Federal Way School District No. 210, King County, Washington,
Unlimited Tax General Obligation Bonds, 1991, 6.950%, 12/01/11
(Pre-refunded to 12/01/03) A1 12/03 at 100 14,028,950
Municipality of Metropolitan Seattle (Seattle, Washington),
Limited Sales Tax General Obligation Bonds, Series 1991 (Refunding):
9,810,000 6.625%, 1/01/11 Aa 1/97 at 102 10,041,612
10,310,000 6.875%, 1/01/20 Aa 1/97 at 102 10,558,161
4,000,000 North Thurston School District No. 3, Thurston County, Washington,
Unlimited Tax General Obligation Bonds, 1992, 6.500%, 12/01/09 A 12/02 at 100 4,284,120
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6%
10,820,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Series 1991-B (Novus Health Group), 6.750%, 12/15/20 Aaa 12/01 at 102 11,779,733
7,000,000 Wisconsin Housing and Economic Development Authority, Housing
Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 A1 1/02 at 102 7,333,410
- ------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.6%
2,390,000 Wyoming Community Development Authority, Single Family Mortgage
Bonds, 1991 Series B, 7.400%, 6/01/31 Aa 6/01 at 102 2,532,970
4,500,000 Wyoming Community Development Authority, Single Family Mortgage
Bonds 1988 Series G (Federally Insured or Guaranteed Mortgage Loans),
7.250%, 6/01/21 (Alternative Minimum Tax) Aa 11/01 at 103 4,739,624
- ------------------------------------------------------------------------------------------------------------------------------------
$1,128,230,000 Total Investments - (cost $1,113,125,203) - 98.4% 1,199,714,910
==============----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 19,947,925
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,219,662,835
====================================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 55 $476,922,814 40%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 34 222,809,477 18
PORTFOLIO OF A+ A1 12 95,151,832 8
INVESTMENTS: A, A- A, A2, A3 13 91,263,589 8
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 35 270,428,184 22
Non-rated Non-rated 5 43,139,014 4
- ----------------------------------------------------------------------------------------------------------------------
TOTAL 154 $1,199,714,910 100%
======================================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. (NPF)
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.0%
$ 4,360,000 Alabama Higher Education Loan Corporation, Student Loan Revenue
Refunding Bonds, Series 1994-D, 5.850%, 9/01/04 (Alternative
Minimum Tax) Aaa No Opt. Call $ 4,540,678
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.4%
1,695,000 Municipality of Anchorage, Alaska, Home Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), 1992, 8.000%, 3/01/09 AAA 3/02 at 102 1,832,007
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.3%
5,500,000 Arizona Educational Loan Marketing Corporation, 1992 Educational Loan
Revenue Bonds, Series B, 6.950%, 3/01/01 (Alternative Minimum Tax) A No Opt. Call 5,930,925
3,650,000 Gilbert Unified School District No. 41 of Maricopa County, Arizona,
School Improvement Bonds, Project of 193, Series C (1994),
6.100%, 7/01/14 (Pre-refunded to 7/01/04) Aaa 7/04 at 100 3,958,133
12,035,000 Yuma Regional Medical Center on behalf of Hospital District No. 1 of
Yuma County, Arizona, Hospital Revenue Improvement and Refunding
Bond (Yuma Regional Medical Center Project), Series 1992,
8.000%, 8/01/17 A 8/02 at 101 1/2 13,685,841
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.4%
2,000,000 Arkansas Development Finance Authority, Single Family Mortgage
Revenue Bonds, 1995 Series B (Mortgage-Backed Securities Program),
6.550%, 7/01/18 (Alternative Minimum Tax) AAA 7/05 at 102 2,074,360
1,400,000 Arkansas Development Finance Authority, Single Family Mortgage
Revenue Bonds, 1994 Series C (Mortgage-Backed Securities Program),
6.600%, 7/01/17 AAA 7/05 at 102 1,472,086
412,111 Drew County (Arkansas) Public Facilities Board, Single Family Mortgage
Revenue Refunding Bond, Series 1993A, 7.900%, 8/01/11 Aaa 8/03 at 103 444,112
1,310,000 Residential Housing Facilities Board of Greene County, Arkansas,
Subordinated Mortgage Revenue Bonds, Series 1991-1, 7.250%, 1/01/10 Aa 1/02 at 103 1,396,512
568,322 Public Facilities Board of Stuttgart, Arkansas, Single Family Mortgage
Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11 Aaa 9/03 at 103 621,107
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.1%
33,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds
Series 1995A, 0.000%, 1/01/17 Baa No Opt. Call 9,227,130
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.4%
Colorado Health Facilities Authority, Hospital Refunding Revenue Bonds
(National Jewish Center For Immunology and Respiratory Medicine
Project), Series 1992:
1,500,000 6.600%, 2/15/02 BBB- No Opt. Call 1,483,395
1,250,000 6.875%, 2/15/12 BBB- 2/02 at 102 1,258,213
3,000,000 7.100%, 2/15/22 BBB- 2/02 at 102 3,011,040
550,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A, 8.100%, 11/15/00 (Alternative Minimum Tax) Baa No Opt. Call 612,002
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.0%
2,275,000 Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, 1994 Series D, Subseries D-2, 6.900%, 5/15/20
(Alternative Minimum Tax) Aa 5/04 at 102 2,396,667
2,000,000 Connecticut Housing Finance Authority Housing Mortgage Finance
Program Bonds, 1996 Series C-2, 6.250%, 11/15/18 Aa 5/06 at 102 2,039,480
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.1%
6,250,000 District of Columbia (Washington, D.C.), Hospital Revenue Bonds
(National Rehabilitation Hospital, Inc. Issue), Series 1989A, Medlantic
Healthcare Group, 7.125%, 11/01/19 (Pre-refunded to 11/01/99) Aaa 11/99 at 102 6,851,125
2,000,000 District of Columbia, Hospital Revenue Refunding Bonds (Washington
Hospital Center Issue), Series 1992A, 7.000%, 8/15/05 Baa1 8/02 at 102 2,109,140
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA (CONTINUED)
District of Columbia Housing Finance Agency, Multi-Family Housing
Refunding Revenue Bonds, Series 1992B (FHA Insured Mortgage
Loan-Section 8 Assisted Project):
$ 920,000 7.200%, 9/01/12 Aa 9/02 at 102 $ 980,968
3,505,000 7.250%, 3/01/24 Aa 9/02 at 102 3,710,183
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.4%
1,880,000 State of Florida, Full Faith and Credit, State Board of Education, Public
Education Capital Outlay Bonds, Series 1991-B, 6.700%, 6/01/22
(Pre-refunded to 6/01/01) Aaa 6/01 at 101 2,070,312
4,000,000 Dade County, Florida, Aviation Bonds, Series 1996A, 5.750%, 10/01/18
(Alternative Minimum Tax) Aaa 10/06 at 102 3,967,800
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6%
2,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds,
Series EE, 7.250%, 1/01/24 Aaa No Opt. Call 2,502,040
- ------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
1,500,000 Idaho Housing and Finance Association, Single Family Mortgage Bonds,
1996 Series E, 6.350%, 7/01/14 (Alternative Minimum Tax) Aa 7/06 at 102 1,523,310
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 17.4%
Illinois Development Finance Authority, Multi-Family
Housing Bonds, Series 1990 (Affordable Housing
Preservation Foundation Project), Subseries B (FHA
Insured Mortgage Loans Lawless Gardens Project):
600,000 7.650%, 7/01/07 AAA 1/02 at 105 667,176
5,270,000 7.650%, 12/31/31 AAA 1/02 at 105 5,772,653
8,800,000 Illinois Development Finance Authority, Multi-Family Housing Revenue
Bonds, Series 1992 (Town and Garden Apartments Project),
7.800%, 3/01/06 (Alternative Minimum Tax) BBB+ 3/02 at 102 9,295,176
865,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series
1992A (Evangelical Hospitals Corporation), 6.750%, 4/15/12 AA- 4/02 at 102 911,200
7,400,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 (Trinity
Medical Center), 7.000%, 7/01/12 Baa 7/02 at 102 7,570,496
4,790,000 Illinois Housing Development Authority, Section 8 Elderly Housing
Revenue Bonds (Garden House of Maywood Development), Series
1992, 7.000%, 9/01/18 A 9/02 at 102 5,036,493
865,000 Illinois Housing Development Authority, Section 8 Elderly Housing
Revenue Bonds (Morningside North Development), Series 1992D,
6.600%, 1/01/07 A 1/03 at 102 914,227
State of Illinois, Build Illinois Bonds (Sales Tax Revenue Bonds), Series S:
2,000,000 6.800%, 6/15/10 AAA 6/99 at 102 2,109,740
6,390,000 6.800%, 6/15/12 (Pre-refunded to 6/15/00) Aaa 6/00 at 102 7,008,233
4,500,000 City of Chicago (Illinois), General Obligation Adjustable Rate Bonds,
Central Public Library Project, Series C of 1988, 6.850%, 1/01/17
(Pre-refunded to 7/01/02) Aaa 7/02 at 101 1/2 5,045,850
4,900,000 City of Chicago, Illinois, Tax Increment Allocation Revenue Bonds
(Stockyards Southeast Quadrant Industrial Redevelopment Project),
Series 1994 B, 9.250%, 1/01/14 N/R No Opt. Call 5,414,255
8,075,000 Town of Cicero, Cook County, Illinois, General Obligation Tax Increment
Bonds, Series 1995A, 8.125%, 12/01/12 (Pre-refunded to 12/01/04) N/R 12/04 at 102 9,699,367
2,000,000 Onterie Center Housing Finance Corporation (An Illinois Not For Profit
Corporation), Mortgage Revenue Refunding Bonds, Series 1992A
(FHA Insured Mortgage Loan-Onterie Center Project), 7.050%, 7/01/27 Aaa 7/02 at 102 2,118,100
2,835,000 Village of Sugar Grove, Kane County, Illinois, Waterworks and Sewerage
Refunding Revenue Bonds, Series 1992, 7.500%, 5/01/17 N/R 5/02 at 102 3,030,728
6,000,000 Town of Wood River, Wood River Township Hospital, Madison County,
Illinois, General Obligation Bonds (Alternate Revenue Source), Series
1993, 6.625%, 2/01/14 BBB 2/04 at 102 6,352,020
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 5,945,000 Town of Wood River, Wood River Township Hospital, Madison County,
Illinois, General Obligation Tort Immunity Bonds, Series 1993,
6.500%, 2/01/14 BBB 2/04 at 102 $ 6,236,840
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.2%
2,000,000 City of Indianapolis, Indiana, Exempt Facility Revenue Bonds, Series 1991
(Mid America Energy Resources, Inc. Project), 7.250%, 12/01/11
(Alternative Minimum Tax) A+ 6/99 at 102 2,089,040
2,860,000 PHM Elementary/Middle School Building Corporation (St. Joseph
County, Indiana), First Mortgage Bonds, Series 1994, 6.300%, 1/15/09 A No Opt. Call 3,057,226
- ------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
1,655,000 Iowa Student Loan Liquidity Corporation, Student Loan Revenue Bonds,
Senior Series B, 5.750%, 12/01/06 (Alternative Minimum Tax) Aaa 12/02 at 102 1,667,131
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.0%
4,000,000 City of Hutchinson, Kansas, Single Family Mortgage Revenue Refunding
Bonds, Series 1992, 8.875%, 12/01/12 A 6/02 at 103 4,316,560
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.2%
5,000,000 Kentucky Rural Economic Development Authority, Economic
Development Project Revenue Bonds, Series 1992 (Donnelly
Corporation Project), 8.125%, 7/01/12 (Alternative Minimum Tax) N/R 7/02 at 102 5,167,750
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.3%
1,310,000 Louisiana Housing Finance Agency, Mortgage Revenue Bonds (GNMA
Collateralized Mortgage Loan-St. Dominic Assisted Care Facility),
Series 1995, 6.850%, 9/01/25 AAA 9/05 at 103 1,409,914
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 2.0%
8,470,000 Maine Educational Loan Marketing Corporation, Subordinate Student
Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06 (Alternative
Minimum Tax) A No Opt. Call 8,973,711
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.4%
6,000,000 Anne Arundel County, Maryland, Multi-Family Housing Revenue Bonds
(Woodside Apartments Project), Series 1994, 7.450%, 12/01/24
(Alternative Minimum Tax) (Mandatory put 12/01/03) BBB+ No Opt. Call 6,319,020
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.5%
3,875,000 Massachusetts Health and Educational, Facilities Authority, Revenue
Refunding Bonds, Youville Hospital Issue (FHA Insured Project),
Series B, 6.000%, 2/15/25 Aa 2/04 at 102 3,923,554
2,450,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds,
New England Deaconess Hospital Issue, Series D, 6.875%, 4/01/22 A 4/02 at 102 2,602,978
9,070,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue
Bonds, SEMASS Project, Series 1991B, 9.250%, 7/01/15 (Alternative
Minimum Tax) N/R 7/01 at 103 10,142,437
Massachusetts Municipal Wholesale Electric Company, Power Supply
System Revenue Bonds, 1987 Series A:
945,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) Aaa 7/97 at 102 994,433
45,000 8.750%, 7/01/18 BBB+ 7/97 at 102 51,893
9,780,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1992
Series A, 6.750%, 7/15/12 (Pre-refunded to 7/15/02) Aaa 7/02 at 102 11,003,674
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.7%
2,500,000 Wayne County Building Authority (State of Michigan), Building
Authority (Capital Improvement), Bonds, Series 1992A (Limited Tax
General Obligation), 8.000%, 3/01/17 (Pre-refunded to 3/01/02) Baa 3/02 at 102 2,919,475
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA - 2.6%
$ 11,180,000 Northwest Minnesota Multi-County, Housing and Redevelopment
Authority, Governmental Housing Revenue Bonds (Pooled Housing
Program), Series 1994A, 8.125%, 10/01/26 N/R 10/04 at 102 $ 11,496,394
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6%
8,610,000 Mississippi Home Corporation, Residual Revenue Capital Appreciation
Bonds, Series 1992-I, 0.000%, 9/15/16 Aaa 3/04 at 41 21/32 2,481,144
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 4.2%
2,350,000 Nebraska Higher Education Loan Program Inc., Senior Subordinate
Bonds, Series A-5B, 6.250%, 6/01/18 (Alternative Minimum Tax) Aa No Opt. Call 2,393,264
4,145,000 City of Grand Island, Nebraska, Electric System Revenue Bonds, 1977
Series, 6.100%, 9/01/12 A1 9/97 at 100 4,152,088
10,935,000 Omaha Public Power District (Nebraska), Electric System Revenue Bonds,
1992, Series A, 6.500%, 2/01/17 (Pre-refunded to 2/01/02) AAA 2/02 at 101 1/2 12,041,294
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.1%
325,000 Nevada Housing Division, Single Family Program Senior Bonds, 1988
Issue B (Federally Insured or Guaranteed Mortgage Loans),
8.050%, 10/01/19 (Alternative Minimum Tax) AA No Opt. Call 330,957
- ------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.5%
1,440,000 New Hampshire Municipal Bond Bank, Educational Institutions Division
Revenue Bonds (1994 Coe-Brown Northwood Academy Project),
7.250%, 5/01/09 N/R No Opt. Call 1,496,074
9,200,000 The Industrial Development Authority of the State of New Hampshire,
Resource Recovery Revenue Bonds, Series 1987 (SES Concord Project),
8.500%, 1/01/09 A+ 1/98 at 102 9,724,032
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.7%
3,000,000 New Jersey Economic Development Authority, Economic Development
Bonds (Bridgewater Resources Inc. Project), 1994 Series A,
8.375%, 11/01/04 (Alternative Minimum Tax) N/R No Opt. Call 3,140,580
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.8%
6,500,000 Dormitory Authority of the State of New York, City University System
Consolidated Revenue Bonds, Series 1990A, 7.625%, 7/01/20
(Pre-refunded to 7/01/00) Aaa 7/00 at 102 7,321,210
5,000,000 New York Local Government Assistance Corporation, New York, Series
1991B, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) Aaa 4/01 at 102 5,690,700
6,000,000 New York State Medical Care Facilities Finance Agency, Hospital and
Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series B,
6.200%, 8/15/22 AAA 8/02 at 102 6,184,080
8,450,000 New York State Urban Development Corporation, State Facilities Revenue
Bonds, Series 1991, 7.500%, 4/01/20 (Pre-refunded to 4/01/01) Aaa 4/01 at 102 9,617,283
3,500,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series B,
7.500%, 2/01/01 Baa1 No Opt. Call 3,799,565
The City of New York, General Obligation Bonds, Fiscal 1995 Series E:
1,550,000 6.500%, 8/01/02 Baa1 No Opt. Call 1,637,064
3,080,000 6.600%, 8/01/04 Baa1 No Opt. Call 3,285,128
1,000,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series A,
7.000%, 8/01/04 Baa1 No Opt. Call 1,091,530
2,075,000 The City of New York, General Obligation Bonds, Fiscal 1990 Series F,
8.400%, 11/15/05 (Pre-refunded to 11/15/01) Aaa 11/01 at 101 1/2 2,464,249
2,000,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series C,
Fixed Rate Bonds, Subseries C-1, 6.625%, 8/01/12 (Pre-refunded
to 8/01/02) Aaa 8/02 at 101 1/2 2,230,880
4,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series J
(Subseries J-1), 5.875%, 2/15/19 Baa1 2/06 at 101 1/2 3,846,000
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
The City of New York, General Obligation Bonds, Fiscal 1991 Series D:
$ 1,915,000 9.500%, 8/01/02 (Pre-refunded to 8/01/01) Baa1 8/01 at 101 1/2 $ 2,329,617
2,085,000 9.500%, 8/01/02 Baa1 8/01 at 101 1/2 2,468,723
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.5%
2,130,000 North Carolina Housing Finance Agency, Multi-Family Revenue
Refunding Bonds (1992 Refunding Bond Resolution), Series B,
6.900%, 7/01/24 Aa 7/02 at 102 2,232,879
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.7%
14,055,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program), 1989 Series A,
7.650%, 3/01/29 (Alternative Minimum Tax) AAA 9/99 at 102 14,891,975
8,500,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital
Facilities Revenue Bonds, Series 1987 (Akron City Hospital Project),
8.875%, 11/15/07 (Pre-refunded to 11/15/97) Aaa 11/97 at 102 9,093,725
955,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), Series 1992A, 7.750%, 5/15/07
(Alternative Minimum Tax) N/R 5/00 at 102 1,004,144
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.4%
2,000,000 Falls Township Hospital Authority, Refunding Revenue Bonds, The
Delaware Valley Medical Center Project (FHA Insured Mortgage), Series
1992, 7.000%, 8/01/22 AAA 8/02 at 102 2,088,900
1,365,000 Northampton County Hospital Authority (Pennsylvania), Hospital
Revenue Bonds (Easton Hospital), Series A of 1992, 6.900%, 1/01/02 BBB No Opt. Call 1,420,460
7,660,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue Bonds,
Tenth Series, 7.350%, 9/01/04 Aaa No Opt. Call 8,711,029
2,500,000 The Hospitals and Higher Education Facilities Authority of Philadelphia
Hospital Revenue Bonds (Children's Seashore House), Series 1992A,
7.000%, 8/15/12 A- 8/02 at 102 2,660,625
4,450,000 The Hospitals and Higher Education Facilities Authority of Philadelphia,
Hospital Revenue Bonds (Children's Seashore House), Series 1992B,
7.000%, 8/15/22 A- 8/00 at 100 4,733,065
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.5%
6,510,000 South Dakota Student Loan Assistance Corporation, Student Loan Revenue
Bonds, Series 1989-B, 7.400%, 8/01/99 (Alternative Minimum Tax) A No Opt. Call 6,800,476
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 3.7%
4,347,931 General Services Commission (an Agency of the State of Texas), as Lessee,
Participation Interests, 7.500%, 9/01/22 A 9/97 at 102 4,404,585
9,500,000 Harris County Health Facilities Development Corporation, Adjustable
Convertible Extendable Securities (Greater Houston Pooled Health Care
Loan Program), Series 1985B, 7.375%, 12/01/25 (Mandatory
put 12/01/98) Aa3 11/96 at 100 1/2 9,576,950
2,345,000 Victoria Housing Finance Corporation, Single Family Mortgage Revenue
Refunding Bonds, Series 1995, 8.125%, 1/01/11 Aaa No Opt. Call 2,534,640
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3%
1,250,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1996
Series C, 6.450%, 7/01/14 (Alternative Minimum Tax) Aa 1/07 at 102 1,266,688
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.0%
5,000,000 Virginia Housing Development Authority, Commonwealth Mortgage
Bonds, 1992 Series A, 7.100%, 1/01/22 Aa1 1/02 at 102 5,252,200
3,200,000 Suffolk Redevelopment and Housing Authority, Multi-Family Housing
Revenue Refunding Bonds, Series 1994 (Chase Heritage at Dulles
Project), 7.000%, 7/01/24 (Mandatory put 7/01/04) Baa3 7/02 at 104 3,386,944
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON - 4.2%
$ 9,500,000 State of Washington, General Obligation and General Obligation
Refunding Bonds, Series 1992A and AT-6, 6.250%, 2/01/11 Aa No Opt. Call $ 10,398,795
2,500,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992
(Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12 AA- 2/02 at 102 2,699,750
3,000,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding
Revenue Bonds, Series 1989A, 7.500%, 7/01/07 (Pre-refunded to 7/01/99) Aa1 7/99 at 102 3,298,740
2,000,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding
Revenue Bonds, Series 1990B, 7.375%, 7/01/04 Aa1 7/00 at 102 2,197,600
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.5%
2,000,000 West Virginia Housing Development Fund, Housing Finance Bonds,
1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax) Aa1 5/02 at 102 2,111,160
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1%
5,950,000 Wisconsin Housing and Economic Development Authority, Housing
Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 A1 1/02 at 102 6,233,399
2,985,000 Silver Lake Sanitary District, Waushara County, Wisconsin, Sewer System
Mortgage Revenue Bonds, 8.000%, 10/01/18 N/R 10/02 at 100 3,163,533
- ------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.9%
4,000,000 Wyoming Community Development Authority, Single Family Mortgage
Bonds (Federally Insured or Guaranteed Mortgage Loans), 1988
Series E, 7.750%, 6/01/09 (Alternative Minimum Tax) Aa 11/99 at 103 4,196,715
- ------------------------------------------------------------------------------------------------------------------------------------
$435,798,364 Total Investments - (cost $407,786,328) - 98.4% 435,100,749
============------------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 800,000 The Port Authority of New York and New Jersey, Versatile Structure
=========== Obligations, Series 2, Variable Rate Demand Bonds, 3.550%, 5/01/19+ A-1+ 800,000
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 6,252,390
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $442,153,139
====================================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 34 $153,481,773 36%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 20 62,837,572 14
PORTFOLIO OF A+ A1 4 22,198,559 5
INVESTMENTS A, A- A, A2, A3 12 63,116,712 15
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 22 79,710,871 18
TEMPORARY Non-rated Non-rated 10 53,755,262 12
INVESTMENTS):
- ----------------------------------------------------------------------------------------------------------------------
TOTAL 102 $435,100,749 100%
======================================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $781,881,599 $721,573,363 $1,199,714,910 $435,100,749
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 2,800,000 4,400,000 -- 800,000
Cash 269,211 170,485 1,339,412 67,633
Receivables:
Interest 16,068,981 14,465,009 24,334,432 8,239,817
Investments sold 132,344 7,930,577 -- 30,000
Other assets 926,098 51,428 31,594 16,539
----------- ----------- ------------- -----------
Total assets 802,078,233 748,590,862 1,225,420,348 444,254,738
----------- ----------- ------------- -----------
LIABILITIES
Accrued expenses:
Management fees (note 6) 421,521 394,808 638,167 237,416
Other 259,381 259,821 451,475 146,234
Preferred share dividends payable 53,774 55,114 129,717 57,776
Common share dividends payable 2,994,191 2,822,330 4,538,154 1,660,173
----------- ----------- ------------- -----------
Total liabilities 3,728,867 3,532,073 5,757,513 2,101,599
----------- ----------- ------------- -----------
Net assets (note 7) $798,349,366 $745,058,789 $1,219,662,835 $442,153,139
============ ============ ============== ============
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 35,434,213 33,400,359 53,077,819 19,647,018
============ ============ ============== ============
Netasset value per Common share outstanding (net assets
less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 15.48 $ 15.12 $ 15.44 $ 15.38
============ ============ ============== ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended October 31, 1996
<CAPTION>
NQM NQS NQU NPF
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $51,750,523 $48,176,865 $78,301,721 $28,453,942
----------- ----------- ----------- -----------
Expenses:
Management fees (note 6) 4,993,582 4,671,075 7,531,213 2,798,986
Preferred shares--auction fees 643,375 616,831 1,026,230 371,957
Preferred shares--dividend disbursing agent fees 52,650 52,841 68,443 22,150
Shareholders' servicing agent fees and expenses 100,344 91,854 150,242 54,483
Custodian's fees and expenses 108,875 103,850 149,025 74,755
Directors' fees and expenses (note 6) 4,371 5,516 13,656 5,609
Professional fees 19,555 21,953 26,816 21,397
Shareholders' reports--printing and mailing expenses 188,489 142,413 242,879 116,428
Stock exchange listing fees 22,421 30,670 43,479 32,511
Investor relations expense 46,462 43,116 71,331 27,812
Other expenses 44,826 39,823 66,575 21,751
----------- ----------- ----------- -----------
Total expenses 6,224,950 5,819,942 9,389,889 3,547,839
----------- ----------- ----------- -----------
Net investment income 45,525,573 42,356,923 68,911,832 24,906,103
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions, net of
taxes, if applicable (notes 1 and 3) 1,504,856 (606,382) (491,071) 959,626
Net change in unrealized appreciation or depreciation
of investments (7,671,673) (4,774,830) 1,379,318 1,395,464
----------- ----------- ----------- -----------
Net gain (loss) from investments (6,166,817) (5,381,212) 888,247 2,355,090
----------- ----------- ----------- -----------
Net increase in net assets from operations $39,358,756 $36,975,711 $69,800,079 $27,261,193
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NQM NQS
Year ended Year ended Year ended Year ended
10/31/96 10/31/95 10/31/96 10/31/95
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 45,525,573 $ 46,997,092 $ 42,356,923 $ 43,187,088
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) 1,504,856 (315,370) (606,382) (424,861)
Net change in unrealized appreciation or depreciation
of investments (7,671,673) 37,219,824 (4,774,830) 43,774,909
------------ ------------ ------------ ------------
Net increase in net assets from operations 39,358,756 83,901,546 36,975,711 86,537,136
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (36,524,778) (38,289,980) (33,838,039) (34,858,659)
Preferred shareholders (9,160,050) (10,113,285) (8,711,507) (9,685,635)
From accumulated net realized gains from investment
transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (45,684,828) (48,403,265) (42,549,546) (44,544,294)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions 454,280 -- 749,508 502,250
------------ ------------ ------------ ------------
Net increase in net assets derived from capital share
transactions 454,280 -- 749,508 502,250
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (5,871,792) 35,498,281 (4,824,327) 42,495,092
Net assets at beginning of year 804,221,158 768,722,877 749,883,116 707,388,024
------------ ------------ ------------ ------------
Net assets at end of year $798,349,366 $804,221,158 $745,058,789 $749,883,116
============ ============ ============ ============
Balance of undistributed net investment income at end of year $ 1,004,129 $ 1,163,384 $ 845,543 $ 1,038,166
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NQU NPF
Year ended Year ended Year ended Year ended
10/31/96 10/31/95 10/31/96 10/31/95
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 68,911,832 $ 69,562,345 $ 24,906,103 $ 25,047,650
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (491,071) (757,201) 959,626 10,181
Net change in unrealized appreciation or depreciation
of investments 1,379,318 67,418,921 1,395,464 26,319,291
-------------- -------------- ------------ ------------
Net increase in net assets from operations 69,800,079 136,224,065 27,261,193 51,377,122
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (54,457,859) (54,776,337) (19,922,661) (19,804,205)
Preferred shareholders (14,584,206) (16,271,551) (5,053,788) (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 (69,042,065) (71,047,888) (26,489,111) (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 758,014 65,176,177 772,082 24,814,706
Net assets at beginning of year 1,218,904,821 1,153,728,644 441,381,057 416,566,351
-------------- -------------- ------------ ------------
Net assets at end of year $1,219,662,835 $1,218,904,821 $442,153,139 $441,381,057
============== ============== ============ ============
Balance of undistributed net investment income at end of year $ 1,904,403 $ 2,034,636 $ 1,324,626 $ 1,394,972
============== ============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At October 31, 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).
Each Fund invests primarily in a diversified
portfolio of municipal obligations issued by state
and local government authorities. The Funds are
registered under the Investment Company Act of
1940 as closed-end, diversified management
investment companies.
The following is a summary of significant
accounting policies followed by the Funds in the
preparation of their financial statements in
accordance with 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 October 31, 1996, there were no such purchase
commitments in any of the Funds.
Interest Income Interest income is determined on the basis
of interest accrued, adjusted for amortization of
premiums and accretion of discounts on long-term
debt securities when required for federal income
tax purposes.
Federal Income Taxes The Funds intend to comply with the requirements of
the Internal Revenue Code applicable to regulated
investment companies by distributing to shareholders
all of their tax-exempt net investment income, in
addition to any significant amounts of net realized
capital gains and/or market discount realized from
investment transactions. The Funds currently
consider significant net realized capital gains
and/or market discount as amounts in excess of $.01
per Common share. Furthermore, each Fund intends to
satisfy conditions which will enable interest from
municipal securities, which is exempt from regular
federal income tax, to retain such tax-exempt status
when distributed to shareholders of the Funds. All
regular monthly income dividends paid during the
year ended October 31, 1996, have been designated
Exempt Interest Dividends which are exempt from
regular federal personal income tax. Net realized
capital gain and market discount distributions are
subject to federal taxation.
<PAGE>
Dividends and Tax-exempt net investment income is declared as a
Distributions to dividend monthly and payment is made or reinvestment
Shareholders is credited to shareholder accounts after month-end.
Net realized capital gains and/or market discount
from investment transactions are distributed to
shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to
the extent they exceed available capital loss
carryovers.
Distributions to shareholders of tax-exempt net
investment income, net realized capital gains
and/or market discount are recorded on the
ex-dividend date. The amount and timing of such
distributions are determined in accordance with
federal income tax regulations, which may differ
from generally accepted accounting principles.
Accordingly, temporary over-distributions as a
result of these differences may occur and will be
classified as either distributions in excess of
net investment income, distributions in excess of
net realized gains and/or distributions in excess
of net ordinary taxable income from investment
transactions, where applicable.
Preferred Shares The Funds have issued and outstanding
$25,000 stated value Preferred shares. Each Fund's
Preferred shares are issued in more than one
Series. The dividend rate on each Series may
change every seven days, as set by the auction
agent. The number of shares outstanding, by Series
and in total, for each Fund is as follows:
<TABLE>
<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
====== ===== ====== =====
</TABLE>
Derivative Financial In October 1994, the Financial Accounting Standards
Instruments Board (FASB) issued Statement of Financial
Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of
Financial Instruments which prescribes disclosure
requirements for transactions in certain derivative
financial instruments including futures, forward,
swap, and option contracts, and other financial
instruments with similar characteristics. Although
the Funds are authorized to invest in such financial
instruments, and may do so in the future, they did
not make any such investments during the year ended
October 31, 1996.
Use of Estimates The preparation of financial statements in
conformity with generally accepted
accounting principles requires management to make
estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of
the financial statements and the reported amounts
of increases and decreases in net assets from
operations during the reporting period.
<PAGE>
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
NQM NQS
- -----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
10/31/96 10/31/95 10/31/96 10/31/95
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Shares:
Shares issued to shareholders due to reinvestment
of distributions 29,711 -- 49,729 34,939
====== ====== ====== ======
<CAPTION>
NQU NPF
- -----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
10/31/96 10/31/95 10/31/96 10/31/95
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Shares:
Shares issued to shareholders due to reinvestment
of distributions -- -- -- --
====== ====== ====== ======
</TABLE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the year ended
October 31, 1996, were as follows:
<TABLE>
<CAPTION>
NQM NQS NQU NPF
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $71,936,839 $94,679,230 $127,508,823 $33,849,475
Temporary municipal investments 64,380,000 70,060,000 38,400,000 47,400,000
SALES AND MATURITIES
Investments in municipal securities 62,814,120 94,483,838 125,830,076 35,054,338
Temporary municipal investments 71,280,000 75,460,000 40,300,000 46,600,000
=========== =========== ============ ===========
</TABLE>
At October 31, 1996, the identified cost of
investments owned for federal income tax purposes
was the same as the cost for financial reporting
purposes for each Fund.
At October 31, 1996, the following Funds had unused
capital loss carryovers available for federal
income tax purposes to be applied against future
capital gains, if any. If not applied the carryovers
will expire as follows:
<TABLE>
<CAPTION>
NQM NQS NQU
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Expiration Year:
2001 $1,088,991 $ -- $ --
2002 -- 6,626,291 5,529,513
2003 315,370 424,861 757,201
2004 -- 606,382 486,077
---------- ---------- ----------
Total $1,404,361 $7,657,534 $6,772,791
========== ========== ==========
</TABLE>
<PAGE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On November 1, 1996, the Funds declared Common
share dividend distributions from their tax-exempt
net investment income which were paid December 2,
1996, to shareholders of record on November 15,
1996, as follows:
<TABLE>
<CAPTION>
NQM NQS NQU NPF
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $.0845 $.0845 $.0855 $.0860
====== ====== ====== ======
</TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at October 31, 1996,
were as follows:
<TABLE>
<CAPTION>
NQM NQS NQU NPF
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $56,267,652 $48,782,679 $86,859,306 $27,315,910
Depreciation (1,724,299) (2,018,248) (269,599) (1,489)
----------- ----------- ----------- -----------
Net unrealized appreciation $54,543,353 $46,764,431 $86,589,707 $27,314,421
===+===+=== ===+===+=== ===+===+=== ===+===+===
</TABLE>
<PAGE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS
WITH AFFILIATES
Under the Funds' investment management agreements
with Nuveen Advisory Corp. (the "Adviser"), a
wholly owned subsidiary of The John Nuveen
Company, each Fund pays 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:
<TABLE>
<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
</TABLE>
The fee compensates the Adviser for overall
investment advisory and administrative services
and general office facilities. The Funds pay no
compensation directly to those Directors who are
affiliated with the Adviser or to their officers,
all of whom receive remuneration for their
services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At October 31, 1996, net assets consisted of:
<TABLE>
<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 354,342 334,004 530,778 196,470
Paid-in surplus 493,851,903 464,772,345 737,410,738 272,359,877
Balance of undistributed net investment income 1,004,129 845,543 1,904,403 1,324,626
Accumulated net realized gain (loss) from investment
transactions (1,404,361) (7,657,534) (6,772,791) 957,745
Net unrealized appreciation of investments 54,543,353 46,764,431 86,589,707 27,314,421
----------- ----------- ------------- -----------
Net assets $798,349,366 $745,058,789 $1,219,662,835 $442,153,139
============ ============ ============== ============
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>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At October 31, 1996, the revenue sources by
municipal purpose for these investments, expressed
as a percent of total investments, were as
follows:
<TABLE>
<CAPTION>
NQM NQS NQU NPF
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 18% 21% 22% 28%
Health Care Facilities 12 7 11 13
Pollution Control Facilities 9 11 11 3
Electric Utilities 7 9 4 2
Transportation 1 7 8 3
Educational Facilities 4 2 2 7
Water / Sewer Facilities 2 6 5 1
Lease Rental Facilities 3 -- 1 1
Other 8 2 6 6
General Obligation Bonds 3 10 5 10
Escrowed Bonds 33 25 25 26
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
</TABLE>
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
(54% for NQM, 41% for NQS, 42% for NQU and 29% 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.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments** shareholders shareholders++
<S> <C> <C> <C> <C> <C>
NQM
Year ended 10/31,
1996 $15.650 $1.286 $ (.165) $(1.032) $(.259)
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>
Year ended 10/31,
1996 15.290 1.269 (.164) (1.014) (.261)
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
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholders++ discounts of period of period
<S> <C> <C> <C> <C> <C>
NQM
Year ended 10/31,
1996 $ -- $ -- $ -- $15.480 $15.000
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>
Year ended 10/31,
1996 -- -- -- 15.120 15.125
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
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
value+ value+ (in thousands) assets+++ net assets+++ rate
<S> <C> <C> <C> <C> <C> <C>
NQM
Year ended 10/31,
1996 6.13% 5.70% $798,349 .78% 5.71% 8%
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>
Year ended 10/31,
1996 9.71 5.71 745,059 .78 5.69 13
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
See notes on page 58.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments** shareholders shareholders++
NQU
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1996 $15.430 $1.299 $ .012 $(1.026) $(.275)
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>
Year ended 10/31,
1996 15.340 1.267 .121 (1.014) (.257)
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
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholders++ discounts of period of period
NQU
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1996 $ -- $ -- $ -- $15.440 $15.250
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>
Year ended 10/31,
1996 (.060) (.017) -- 15.380 15.125
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
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
value+ value+ (in thousands) assets+++ net assets+++ rate
NQU
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1996 10.61% 6.93% $1,219,663 .77% 5.67% 11%
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>
Year ended 10/31,
1996 11.00 7.51 442,153 .81 5.66 8
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>
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders
Nuveen Investment Quality Municipal Fund, Inc.
Nuveen Select Quality Municipal Fund, Inc.
Nuveen Quality Income Municipal Fund, Inc.
Nuveen Premier Municipal Income Fund, Inc.
We have audited the accompanying statements of net
assets, including the portfolios of investments,
of Nuveen Investment Quality Municipal Fund, Inc.,
Nuveen Select Quality Municipal Fund, Inc., Nuveen
Quality Income Municipal Fund, Inc. and Nuveen
Premier Municipal Income Fund, Inc. as of October
31, 1996, and the related statements of operations
and changes in net assets and the financial
highlights for the periods indicated therein.
These financial statements and financial
highlights are the responsibility of the Funds'
management. Our responsibility is to express an
opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with
generally accepted auditing standards. Those
standards require that we plan and perform the
audit to obtain reasonable assurance about whether
the financial statements and financial highlights
are free of material misstatement. An audit
includes examining, on a test basis, evidence
supporting the amounts and disclosures in the
financial statements. Our procedures included
confirmation of investments owned as of October
31, 1996, by correspondence with the custodian. An
audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall
financial statement presentation. We believe that
our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and
financial highlights referred to above present
fairly, in all material respects, the financial
positions of Nuveen Investment Quality Municipal
Fund, Inc., Nuveen Select Quality Municipal Fund,
Inc., Nuveen Quality Income Municipal Fund, Inc.
and Nuveen Premier Municipal Income Fund, Inc. at
October 31, 1996, and the results of their
operations, changes in their net assets and
financial highlights for the periods indicated
therein in conformity with generally accepted
accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
December 13, 1996
<PAGE>
Build your wealth automatically
Photographic image of Customer Service Rep at Nuveen.
Managing your portfolio takes skill, experience, and informed judgment, but our
efforts to help you build your wealth don't stop there. At Nuveen, we offer a
number of convenient ways to add to your tax-free portfolio and earn the
tax-free income you need to achieve your financial goals.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen exchange-traded fund allows you to conveniently
reinvest dividends and/or capital gains distributions in additional fund
shares. If you do not elect to reinvest distributions, all distributions are
paid by check, or can be deposited directly your bank or brokerage account.
By choosing to reinvest, you'll be able to set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also benefit from dollar-cost averaging, a technique of
investing at regular intervals, which allows you to build a high-quality,
tax-free portfolio conveniently and cost effectively over time. All
reinvestments are invested in full and fractional shares and are kept in
non-certificated form by the Plan Agent, Chase Manhattan Bank.
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number
of shares you own. Income or capital gains taxes may be payable on dividends
or distributions that are reinvested.
The shares you acquire by reinvesting will either be purchased on the open
market or be newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation, the Fund will issue new shares at
<PAGE>
the then-current market price. If the shares are trading at less than net
asset value, shares for your account will be purchased on the open market.
Dividends and distributions received to purchase shares in the open market
will be invested within 30 days of the dividend payment date; no interest will
be paid on dividends and distributions awaiting reinvestment. Because the
market price of shares may increase before purchases are completed, the
average purchase price per share may exceed the market price at the time of
valuation resulting in the acquisition of fewer shares than if the dividend or
distribution had been paid in shares issued by the Fund. A pro rata portion of
any applicable brokerage commissions on open market purchases will be paid by
Plan participants. These commissions usually will be lower than those charged
on individual transactions.
You may, of course, change your distribution option or withdraw from the
Plan at any time, should your needs or situation change. Should you withdraw,
you can receive a certificate for all whole shares credited to your
reinvestment account and cash payment for fractional shares, or cash payment
for all reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You also can reinvest if your shares are registered in the name of a
brokerage firm, bank, or other nominee. Just ask your investment adviser if
the firm will participate on your behalf. If not, it's easy to have the shares
registered in your name and to apply for a reinvestment account directly.
Participants whose shares are registered in the name of one firm may not be
able to transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although the Fund reserves the right to amend the Plan to include a service
charge payable by the participants, there is no direct service charge to
participants in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll
in or withdraw from the Plan, speak with your financial adviser or call us
toll-free at 1.800.257.8787.
Photographic image of Customer Service Rep at Nuveen.
"When it comes to financial planning, your investment adviser knows
your situation best. Nuveen is pleased to provide the account information you
and your adviser need to plan effectively."
Photographic image of Customer Service Rep at Nuveen.
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set up
your reinvestment account."
<PAGE>
Photographic image of Customer Service Rep at Nuveen.
"When questions come up about your investment, we're happy to provide the
up-to-date information you and your adviser need."
More than just a number
If you've ever called our toll-free customer service line, you've spoken with
one of Nuveen's customer service representatives. These reps are ready to
assist you with answers to your questions about current account balances,
yields, and previous transactions on your accounts. They can also supply
additional information about any of Nuveen's tax-free unit trusts and
mutual funds.
If you have a question about your account, or whenever you need help, just
call 800.257.8787. Our customer service reps are available Monday through
Friday from 8:00 a.m. to 8:00 p.m. Eastern time.
Photographic image of woman seated and man standing behind her representing
Nuveen investors.
<PAGE>
Your
investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free
income specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois
60606-1286
FAN-3-10.96
