NUVEEN Exchange-Traded Funds
October 31, 1998
Annual Report
Dependable, tax-free income to help you keep more of what you earn.
NQM
Investment Quality
NQS
Select Quality
NQU
Quality Income
NPF
Premier Income
Photo of: People looking into canyon.
<PAGE>
Highlights
As of October 31, 1998
Contents
1 Dear Shareholder
3 Portfolio Manager Roundtable
5 NQM Performance Overview
6 NQS Performance Overview
7 NQU Performance Overview
8 NPF Performance Overview
9 Shareholder Meeting Report
13 Portfolio of Investments
39 Statement of Net Assets
40 Statement of Operations
41 Statement of Changes in Net Assets
42 Notes to Financial Statements
46 Financial Highlights
48 Report of Independent Auditors
49 Fund Information
================================================================================
Nuveen Investment Quality Municipal Fund, Inc. (NQM)
o Graphic: 4 stars
Four-star Morningstar Rating(TM)*
o Competitive taxable-equivalent yield of
8.97% for investors in the 31% federal
income tax bracket
o One-year taxable-equivalent total return
on share price of 8.89% for investors in
the 31% federal income tax bracket
Pie Chart:
AAA/U.S. Guaranteed 70%
AA 15%
A 7%
BBB/NR 8%
Nuveen Select Quality Municipal Fund, Inc. (NQS)
o Graphic: 4 stars
Four-star Morningstar Rating(TM)*
o Competitive taxable-equivalent yield of
8.54% for investors in the 31% federal
income tax bracket
o One-year taxable-equivalent total return
on share price of 13.86% for investors in
the 31% federal income tax bracket
Pie Chart:
AAA/U.S. Guaranteed 74%
AA 6%
A 9%
BBB/NR 11%
Nuveen Quality Income Municipal Fund, Inc. (NQU)
o Graphic: 4 stars
Four-star Morningstar Rating(TM)*
o Competitive taxable-equivalent yield of
8.84% for investors in the 31% federal
income tax bracket
o One-year taxable-equivalent total return
on share price of 12.54% for investors in
the 31% federal income tax bracket
Pie Chart:
AAA/U.S. Guaranteed 59%
AA 14%
A 8%
BBB/NR 19%
Nuveen Premier Municipal Income Fund, Inc. (NPF)
o Graphic: 4 stars
Four-star Morningstar Rating(TM)*
o Competitive taxable-equivalent yield of
8.17% for investors in the 31% federal
income tax bracket
o One-year taxable-equivalent total return
on share price of 13.08% for investors in
the 31% federal income tax bracket
Pie Chart:
AAA/U.S. Guaranteed 53%
AA 14%
A 15%
BBB/NR 18%
*Overall rating within the municipal bond category for the period ended
October 31, 1998. Morningstar proprietary ratings reflect his torical
risk-adjusted performance. The ratings are subject to change every month.
Past performance is no guarantee of future results. Morningstar ratings are
calculated from a fund's three-, five- and 10-year average annual returns (if
applicable) in excess of 90-day Treasury bill returns with appropriate fee
adjustments, and a risk factor that reflects fund performance below 90-day
T-bill returns. NQS, NQU and NPF received 4 stars for the three- and
five-year periods. NQM received 3 stars and 4 stars, for the three- and five-
year periods, respectively. The top 10% of the funds in an investment class
receive 5 stars, the next 22.5% receive 4 stars, and the next 35% receive 3
stars. The funds were rated among 195, 188, and 19 funds for the three-,
five-, and 10-year periods, respectively.
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: Wealth takes a lifetime to build. Once achieved, it should
be preserved.
Dear Shareholder
I'm pleased to report that over the 12 months ended October 31, 1998, the Nuveen
Exchange-Traded Funds covered in this report have continued to perform well,
meeting their primary objective of providing you with attractive levels of
tax-free income and after-tax total returns. The strong market for fixed-income
securities, bolstered by investor demand for quality investments, benefited
these funds and led to generally higher share prices than those posted a year
ago. Attractive tax-free income, enhanced by strong share price performance,
illustrates once again that Nuveen's Exchange-Traded Funds can provide an
excellent investment option for income-oriented investors.
The Year in Review
Over the past year, the markets endured bouts of volatility, as the Asian
financial crisis spilled over into emerging markets and affected economies
around the globe. Investors responded by seeking a haven from the uncertainty in
more conservative investments, such as municipal bond funds. As interest rates
continued to trend downward, the competitive yields offered by our
exchange-traded funds stimulated additional investor interest and demand, which
led to improved share prices overall. In this environment, the market for
exchange-traded municipal bond funds has been exceptionally strong. These funds
continue to represent a bright spot among fixed-income investments, offering
attractive income in a market that places a high premium on yield.
In the coming months, we will continue to watch several key factors affecting
the future of the economy, including corporate earnings reports, wage and
employment figures, U.S. consumer confidence levels, the continuing impact of
foreign financial turmoil, and any further interest rate indications from the
Federal Reserve. These factors will influence the outlook for fixed-income
markets into the coming year.
Municipals Very Attractively Priced
Over the past year, rising prices drove yields on 30-year Treasuries to their
lowest levels since 1977. The story in the municipal market, however, was quite
different. With yields on the long Treasury bond pushing below 5% at times, the
yield on the Bond Buyer 40, an unmanaged index of long-term municipal bonds,
fell just 27 basis points - from 5.40% to 5.13% - compared with the 100-basis
point drop in Treasury yields over the past 12 months. As of October 31, 1998,
the ratio of municipal yields to Treasury yields stood at 98.8%, compared with
the more typical range of 86-87%. Over the past few months, this ratio has
ranged as high as 100.6%. For investors, this means that quality municipal bonds
currently offer about the same yield as Treasury bonds with comparable
maturities - even before the tax advantages of municipal bonds are taken into
account. On an after-tax basis in today's market, municipal bonds present an
exceptionally attractive investment option relative to Treasuries.
One of the main factors in the steep decline in Treasury yields during the past
year was the strong interest in these investments by international investors. As
the financial turmoil in Asia continued to spread to economies worldwide and the
dollar strengthened against foreign currencies, the demand for U.S.
dollar-denominated Treasury securities increased. In the municipal market, where
foreign demand was limited by an inability to benefit from the tax advantages of
munis, low interest rates and a strong economy combined to generate high levels
of new issuance and a dramatic increase in the refinancing of existing bonds.
The first ten months of 1998 saw $234 billion of municipal issuance, up 32% over
the same period in 1997. In terms of total municipal issuance, this puts 1998 on
pace to be the second largest year on record.
In addition, the continued strength of the U.S. economy has brought about
improvements in the fundamental financial health of many municipalities and
boosted the overall credit quality of municipal bonds. In the third quarter of
1998, upgraded issues by the two major rating agencies outnumbered downgrades by
a margin of 7 to 2.
Nuveen Expertise Is Key
The key to taking advantage of the exceptional values currently available in the
municipal market is the expertise of a proven investment manager. At Nuveen, we
recognize the value of time-tested expertise. The high level of recent municipal
issuance, for example, highlights the value of Nuveen's in-depth knowledge of
the municipal market, as our portfolio management teams carefully analyze the
flood of issues to select those securities best suited to help the funds achieve
their investment objectives.
As a further enhancement to our manage ment capabilities, Nuveen has assembled a
strong core of Premier Advisers(SM), managers who are experts in their
particular area of the market who can provide time-tested experience and
insight. In addition to Nuveen Advisory Corp., our Premier Adviser for tax-free
investing, you can rely on other Nuveen Premier AdvisersSM to share their wisdom
on the equity market, including Institutional Capital Corporation for equity
value investing and Rittenhouse Financial Services for equity growth investing.
For more information about our funds, including charges and expenses, contact
your financial adviser for a prospectus, or call Nuveen at (800) 621-7227.
Please read the prospectus carefully before you invest or send money.
We encourage you to talk with your financial adviser about the ways Nuveen's
expanding selection of investments can assist you in establishing a diversified
portfolio designed to help you build and sustain long-term financial security.
For more than 100 years, investors have known they can count on Nuveen. We are
grateful for the confidence you have shown in us, and we intend to continue
earning your trust in the years ahead.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
December 15, 1998
Sidebar text: "The key to taking advantage of the exceptional values currently
available in the municipal market is the expertise of a proven investment
manager."
<PAGE>
Nuveen Exchange-Traded Fund
Portfolio Manager Roundtable
Portfolio managers Tom Futrell, Rick Huber, Bill Fitzgerald, and Steve Peterson
discuss the municipal market environment, fund performance, and the outlook for
the Nuveen national exchange-traded funds. The most recent addition to this
team, Rick assumed management responsibility for the Select Quality fund on July
1, 1998, as part of Nuveen's efforts to maximize the efficient use of staff
resources and portfolio manager expertise.
What outside factors influenced the municipal bond market the most over the past
year?
The third quarter of 1998 saw an acceleration of trends that has been apparent
in the fixed-income markets over the past 12 months: declining interest rates
and the increased ratio of municipal to Treasury yields. The cause in both cases
was heightened concern about the condition of the global financial system. While
the U.S. economy exhibited continued growth, the impact of the financial turmoil
in Southeast Asia, Russia, and other emerging markets was felt in the U.S.
equity market.
A desire to cushion this impact and avert a domestic credit crunch prompted the
Federal Reserve to ease short-term interest rates in late September, the first
rate cut in almost three years. In response to concerns that the initial
quarter-point cut might not be sufficient, the Fed reduced rates again in
October and November, bringing the federal funds rate to 4.75%. The Fed
indicated that this accommodative stance was intended to sustain U.S. economic
growth going forward, while also adding some stability to global markets.
How have these outside factors affected municipal bond issuance?
In response to an environment of low interest rates and continued economic
growth, municipal bond issuance over the past year has been among the heaviest
in years. As of the end of October, total municipal issuance in 1998 - both new
deals and refundings - was on pace to become the second largest year on record.
Another point concerns the level of insured bonds that have been brought to
market. For the month of September, insured bonds made up 56% of all issuance.
Most notable among the flood of new bonds was the $7 billion Long Island Power
Authority (LIPA) offering. The first part of the LIPA issuance, which exceeded
$3.5 billion, the largest issuance in municipal bond history, came to market in
May, and another segment was brought out in October. Increased municipal supply
has been met with strong investor demand, due in part to recent volatility in
the equity markets. Demand from institutional buyers such as insurance companies
has also increased, as these investors recognize the exceptionally attractive
values currently offered by municipal bonds.
What were the funds' total returns for the past year?
For the fiscal year ended October 31, 1998, the Nuveen Exchange-Traded Funds
covered in this report produced the following total returns on net asset value,
compared to the total return of the Lehman Brothers Municipal Bond Index *:
Lehman Brothers
Total Taxable-Equivalent Municipal Bond Index
Fund Return Total Return Total Return
- ------------------------------------------------------------
NQM 7.97% 10.85% 8.02%
- ------------------------------------------------------------
NQS 7.77% 10.67% 8.02%
- ------------------------------------------------------------
NQU 7.37% 10.39% 8.02%
- ------------------------------------------------------------
NPF 7.49% 10.45% 8.02%
- ------------------------------------------------------------
What were the funds' durations, and what role does duration play regarding
investment risk?
The following chart illustrates the funds' durations compared to that of the
Lehman index, as of October 31, 1998:
Fund Fund Duration * Lehman Brothers Duration
- ---------------------------------------------------
NQM 7.98 years 7.30 years
- ---------------------------------------------------
NQS 6.92 years 7.30 years
- ---------------------------------------------------
NQU 6.60 years 7.30 years
- ---------------------------------------------------
NPF 7.94 years 7.30 years
- ---------------------------------------------------
Fund duration measures a bond fund's price volatility, or reaction to interest
rate movements. The longer the duration, the more sensitive the fund is to
changes in interest rates. During a period of falling interest rates, longer
duration enables a fund to participate more fully in market gains. However, when
rates rise, longer duration can make the fund more vulnerable to potential price
declines. As interest rates trended downward over the past year, funds with
durations longer than that of the index generally tended to outperform the
market.
Can you explain how duration affected each of these funds differently?
For NQS and NQU, which had durations shorter than that of the Lehman index, we
held bonds purchased during higher interest rate environments rather than sell
them in an attempt to lengthen duration and capture slightly higher total
returns. In the current interest rate environment, any bonds we would have sold
would have been replaced with issues offering lower yields, which could have
impacted the monthly dividend. In NQM and NPF, which have begun to face bond
calls, market anticipation of the effect of these calls may have contributed to
this year's slight underperformance. In keeping with the funds' objectives, our
focus in all four funds will continue to be on maintaining the attractiveness
and stability of the funds' dividends as long as possible.
How have the dividends been affected?
In this low interest rate environment, good call protection helped support the
dividend of NQU and protect the income of this fund from erosion. As of October
31, 1998, NQU has provided shareholders with 45 consecutive months of steady
income. However, declining interest rates worked to reduce the income levels of
the other three funds, as proceeds from higher-yielding bonds that matured or
were called were reinvested in bonds paying relatively lower current interest
rates. The high level of single-family mortgage revenue bonds (9-16%) in these
portfolios also contributed to the number of calls when interest rates fell, and
bonds were prepaid. Over the past year, the change in income level earned by
NQM, NQS, and NPF necessitated dividend reductions. Despite these adjustments,
the Nuveen national funds continue to provide very competitive current market
yields. The following chart highlights the four funds' market yields and their
taxable-equivalent yields at the 31% federal income tax bracket, as of October
31, 1998:
Fund Market Yield Taxable-Equivalent Yield
- ------------------------------------------------------
NQM 6.19% 8.97%
- ------------------------------------------------------
NQS 5.89% 8.54%
- ------------------------------------------------------
NQU 6.10% 8.84%
- ------------------------------------------------------
NPF 5.64% 8.17%
- ------------------------------------------------------
What effect was there to the funds' share price performance?
As Tim mentioned in his letter to shareholders, share price performance among
many of the Nuveen Exchange-Traded Funds has been strong over the past 12
months. As interest rates fell, active demand for these funds generally
benefited share prices. As of October 31, 1998, NQS, NQU, and NPF were trading
at premiums to their net asset values. Over the past year, NQM saw a slight
decline in share price, while strong bond market performance boosted the fund's
net asset value. This increased the spread between the fund's NAV and share
price, causing NQM to continue trading at a discount. The other funds in this
report also saw their NAVs increase from where they were October 31, 1997. The
accompanying chart highlights the funds' market prices and net asset values, as
of October 31, 1998:
Premium (+)
Fund Market Price Net Asset Value Discount (-)
- ---------------------------------------------------------
NQM $15.50 $16.00 -3.13%
- ---------------------------------------------------------
NQS $16.1875 $15.68 +3.24%
- ---------------------------------------------------------
NQU $16.8125 $15.83 +6.21%
- ---------------------------------------------------------
NPF $17.125 $15.76 +8.66%
- ---------------------------------------------------------
What key strategies were used in managing the funds over the course of the year?
Also, are there any particular sectors where Nuveen is looking for undervalued
securities? For the past twelve months, these funds have generally focused on
enhancing call protection by investing the proceeds of pre-refunded and called
bonds into issues offering at least 10 years of call protection as well as into
noncallable bonds. This should help stabilize the funds' dividends. Over the
past year, we found value in the healthcare and utilities sectors, currently the
two largest issuers in the municipal market, by taking advantage of the
competitive environment created by deregulation and consolidation. Within the
utilities sector, we concentrated on public power issues, where Nuveen's
excellent surveillance and research help to point out the unique aspects of
these credits. The heavy volume in these two sectors also created additional
opportunities to find value, as hospital and utility bonds often offered
above-market yields and special call provisions to attract buyers.
Specific strategies for NQU over the past year included investing in AAA-rated
and AA-rated issues that provided the highest levels of liquidity. These issues,
which now make up 73% of the portfolio, positioned the fund to take advantage of
value investing opportunities presented by the current market. These
opportunities included general obligation bonds, which performed well as the tax
receipts for most municipali ties increased more than anticipated, one of the
dramatic benefits of the strong and steady economic expansion.
When we reinvested the proceeds from bonds called from NPF, we looked for bonds
that we anticipate will be refunded in order to realize the gain in price. The
fund continues to be well diversified across sectors and states. For NQM, we
continued to buy high-quality, investment-grade revenue bonds that we believe
are undervalued when analyzed from the perspective of credit quality, yield
curve position, or sector. Most of these bonds were in the 20- to 30-year
maturity range. We also looked for bonds issued by states where we could pick up
incremental yield.
What is Nuveen's outlook for the future?
Looking ahead for these funds, our focus will continue to be on supporting the
stability of the funds' income streams, especially if we remain in a lower
interest rate environment. NQM, NQS, and NPF have already entered into a period
where bond calls can affect the portfolios. Our goal is to manage through this
call risk by improving the structure of the portfolios. We plan on doing this by
investing in bonds with good call protection, longer durations, and high yields.
We also will attempt to pre-empt some of these calls by selling bonds prior to
their call dates and replacing them with high-quality bonds offering attractive
yields.
Specific strategies for NQU over the next year include moving from high-grade to
uninsured A-rated bonds in the public power and healthcare sectors, where we
expect industry restructuring to result in continued demand. We also plan to
increase our holdings in single-family and multifamily housing bonds, as changes
in public policy concerning low-income housing should result in increased
issuance and expanded opportunities to find value. We will continue to invest
the proceeds of bond calls into bonds with maturities of 20-30 years to maximize
yield.
Over the next few years, our goal for NQS is to enhance the structure of the
fund by focusing on upcoming calls and by finding ways to increase the yield of
the fund. We also plan to diversify NQS by adding general obligation bonds as
well as those issued by airports and other revenue-based obligations.
Additionally, we will look to add noncallable bonds from all sectors. For NPF,
our focus will remain on the yield-enhancing strategies mentioned earlier in
order to support the fund's attractive income stream. We also plan to continue
adding non-rated, investment-grade quality bonds to the portfolio to capture
additional yield and to provide strength and stability for the fund's dividend.
Nuveen's expertise as an experienced investment manager knowledgeable about the
unique aspects of the municipal bond market is key to our ability to select the
right securities for our funds and add value for our investors.
The current market environment - influenced by declining interest rates, benign
inflation, and strong municipal supply - has helped to position municipal bonds
as one of the most compelling values in today's marketplace. We expect that the
excellent municipal-to-Treasury ratio, combined with continued volatility in the
equity markets and investors' increasing awareness of the need for asset
allocation rebalancing, will result in growing demand for municipal bond funds.
We believe that investors who take advantage of current opportunities in the
municipal market should be rewarded with healthy returns and attractive yields
in the months ahead, as the market recognizes the value of these quality
investments.
*The Lehman Brothers Municipal Bond Index is an unleveraged index comprised of a
broad range of investment-grade municipal bonds, and does not reflect any
initial or ongoing expenses.
* The fund duration listed in the chart takes into account the leveraging
process for each fund and therefore differs from the duration of the actual
portfolio of individual bonds that com prise the fund. Fund duration is also
known as leverage adjusted duration. Any future reference to duration, unless
otherwise noted, will be to fund duration.
<PAGE>
Nuveen Investment Quality Municipal Fund, Inc.
Performance Overview
As of October 31, 1998
NQM
Portfolio Statistics
==================================================
Inception Date 6/90
- --------------------------------------------------
Share Price $15 1/2
- --------------------------------------------------
Net Asset Value $16.00
- --------------------------------------------------
Current Market Yield Per Share 6.19%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 8.97%
- --------------------------------------------------
Fund Net Assets ($000) $820,150
- --------------------------------------------------
Effective Maturity (Years) 16.87
- --------------------------------------------------
Fund Duration (Years) 7.98
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 5.97% 7.97%
- --------------------------------------------------
3-Year 7.61% 7.44%
- --------------------------------------------------
5-Year 4.50% 6.36%
- --------------------------------------------------
Since Inception 7.49% 8.81%
==================================================
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 8.89% 10.85%
- --------------------------------------------------
3-Year 10.68% 10.43%
- --------------------------------------------------
5-Year 7.69% 9.47%
- --------------------------------------------------
Since Inception 10.70% 12.04%
==================================================
Top Five Sectors (as of % of total investments)
U.S. Guaranteed 32%
- --------------------------------------------------
Housing (Single Family) 16%
- --------------------------------------------------
Health Care 14%
- --------------------------------------------------
Utilities 11%
- --------------------------------------------------
Tax Obligation (Limited) 7%
- --------------------------------------------------
Bar Chart:
1997-1998 Monthly Tax-Free Dividends Per Share(3)
11/97 0.0825
12/97 0.0825
1/98 0.0825
2/98 0.0825
3/98 0.0825
4/98 0.0825
5/98 0.0825
6/98 0.0825
7/98 0.0825
8/98 0.0800
9/98 0.0800
10/98 0.0800
Line Chart:
Share Price Performance
11/7/97 15.75
15.625
15.688
15.75
15.813
15.938
16
16.063
16.063
16.313
16.438
16.5
16.5
16.625
16.375
16.25
16.188
16.125
16.063
16.125
15.813
16.063
16
15.75
15.5
15.75
15.75
15.813
15.938
15.875
15.813
15.938
15.938
16.125
16.25
16.125
16.063
16.125
15.938
15.813
15.938
16
15.813
15.5
15.438
15.5
16.438
16.063
16.25
15.63
10/31/98 15.5
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income tax
rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
3 The Fund also paid shareholders taxable distributions in December of $0.0104
per share.
<PAGE>
Nuveen Select Quality Municipal Fund, Inc.
Performance Overview
As of October 31, 1998
NQS
Portfolio Statistics
==================================================
Inception Date 3/91
- --------------------------------------------------
Share Price $16 3/16
- --------------------------------------------------
Net Asset Value $15.68
- --------------------------------------------------
Current Market Yield Per Share 5.89%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 8.54%
- --------------------------------------------------
Fund Net Assets ($000) $769,774
- --------------------------------------------------
Effective Maturity (Years) 16.53
- --------------------------------------------------
Fund Duration (Years) 6.92
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 10.96% 7.77%
- --------------------------------------------------
3-Year 10.03% 7.60%
- --------------------------------------------------
5-Year 6.62% 6.40%
- --------------------------------------------------
Since Inception 8.05% 8.56%
==================================================
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 13.86% 10.67%
- --------------------------------------------------
3-Year 13.08% 10.62%
- --------------------------------------------------
5-Year 9.80% 9.53%
- --------------------------------------------------
Since Inception 11.24% 11.74%
==================================================
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 34%
- --------------------------------------------------
Utilities 16%
- --------------------------------------------------
Transportation 10%
- --------------------------------------------------
Housing (Single Family) 9%
- --------------------------------------------------
Tax Obligation (General) 8%
- --------------------------------------------------
11/97 0.0815
12/97 0.0815
1/98 0.0815
2/98 0.0815
3/98 0.0815
4/98 0.0815
5/98 0.0815
6/98 0.0815
7/98 0.0795
8/98 0.0795
9/98 0.0795
10/98 0.0795
Line Chart:
Share Price Performance
11/7/97 15.5
15.5
15.75
15.875
15.938
16.063
16.188
16.188
16.313
16.438
16.313
16.375
16.438
16.5
16.25
16.25
16.188
16.125
16.188
16.125
15.938
16
16.188
15.938
15.688
15.875
15.625
15.563
15.625
15.688
15.875
15.938
16
16.125
16.063
15.938
15.813
15.813
15.813
15.688
15.813
15.938
15.875
15.625
15.688
15.688
16
16.125
16.188
16.06
10/31/98 16.19
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
<PAGE>
Nuveen Quality Income Municipal Fund, Inc.
Performance Overview
As of October 31, 1998
NQU
Portfolio Statistics
==================================================
Inception Date 6/91
- --------------------------------------------------
Share Price $16 13/16
- --------------------------------------------------
Net Asset Value Per Share $15.83
- --------------------------------------------------
Current Market Yield 6.10%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 8.84%
- --------------------------------------------------
Fund Net Assets ($000) $1,251,408
- --------------------------------------------------
Effective Maturity (Years) 15.90
- --------------------------------------------------
Fund Duration (Years) 6.60
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 9.64% 7.37%
- --------------------------------------------------
3-Year 11.47% 7.70%
- --------------------------------------------------
5-Year 7.63% 6.27%
- --------------------------------------------------
Since Inception 8.60% 8.66%
==================================================
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 12.54% 10.39%
- --------------------------------------------------
3-Year 14.55% 10.76%
- --------------------------------------------------
5-Year 10.85% 9.40%
- --------------------------------------------------
Since Inception 11.78% 11.81%
==================================================
Top Five Sectors (as of % of total investments)
U.S. Guaranteed 36%
- --------------------------------------------------
Housing (Single Family) 12%
- --------------------------------------------------
Transportation 12%
- --------------------------------------------------
Utilities 9%
- --------------------------------------------------
Health Care 7%
- --------------------------------------------------
Bar Chart:
1997-1998 Monthly Tax-Free Dividends Per Share
11/97 0.0855
12/97 0.0855
1/98 0.0855
2/98 0.0855
3/98 0.0855
4/98 0.0855
5/98 0.0855
6/98 0.0855
7/98 0.0855
8/98 0.0855
9/98 0.0855
10/98 0.0855
Line Chart:
Share Price Performance
11/7/97 16.438
16.75
16.688
16.688
16.75
16.75
16.5
16.563
16.688
16.875
17.063
17.063
17.125
17.125
16.813
16.875
17
16.75
16.813
16.563
15.938
16.5
16.5
16.438
16.125
16.25
16.313
16.5
16.375
16.563
16.563
16.438
16.563
16.75
16.938
16.938
16.875
16.875
16.938
16.375
16.5
16.5
16.375
16.25
16.25
16.313
16.813
16.813
16.75
16.69
10/31/98 16.81
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income tax
rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
<PAGE>
Nuveen Premier Municipal Income Fund, Inc.
Performance Overview
As of October 31, 1998
NPF
Portfolio Statistics
==================================================
Inception Date 12/91
- --------------------------------------------------
Share Price $17 1/8
- --------------------------------------------------
Net Asset Value Per Share $15.76
- --------------------------------------------------
Current Market Yield 5.64%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 8.17%
- --------------------------------------------------
Fund Net Assets ($000) $454,149
- --------------------------------------------------
Effective Maturity (Years) 13.73
- --------------------------------------------------
Fund Duration (Years) 7.94
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 10.29% 7.49%
- --------------------------------------------------
3-Year 12.66% 7.95%
- --------------------------------------------------
5-Year 9.72% 6.84%
- --------------------------------------------------
Since Inception 8.97% 8.65%
==================================================
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 13.08% 10.45%
- --------------------------------------------------
3-Year 15.72% 11.00%
- --------------------------------------------------
5-Year 12.94% 9.94%
- --------------------------------------------------
Since Inception 12.06% 11.67%
==================================================
Top Five Sectors (as of % of total investments)
U.S. Guaranteed 29%
- --------------------------------------------------
Housing (Multifamily) 14%
- --------------------------------------------------
Health Care 11%
- --------------------------------------------------
Housing (Single Family) 9%
- --------------------------------------------------
Tax Obligation (Limited) 8%
- --------------------------------------------------
Bar Chart:
1997-1998 Monthly Tax-Free Dividends Per Share
11/97 0.0860
12/97 0.0860
1/98 0.0860
2/98 0.0830
3/98 0.0830
4/98 0.0830
5/98 0.0830
6/98 0.0830
7/98 0.0830
8/98 0.0805
9/98 0.0805
10/98 0.0805
Line Chart:
Share Price Performance
11/7/97 16.25
16.313
16.375
16.25
16.563
16.563
16.625
16.688
16.688
16.938
17
16.938
17.063
16.813
16.625
16.813
16.625
16.313
16.313
16.25
16.25
16.125
16.125
15.875
16.063
15.938
15.75
15.688
15.875
16
16.125
16.125
16.125
16.313
16.75
16.563
16.563
16.5
15.813
15.688
15.625
15.75
16.188
16.5
16.438
16.438
17.125
16.563
16.938
17.19
10/31/98 17.13
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
<PAGE>
<TABLE>
Shareholder Meeting Report
<CAPTION>
NQM
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-F
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Robert P. Bremner
For 32,133,296 2,367 2,296 2,013 2,331
Withhold 244,526 -- 2 2 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,377,822 2,367 2,298 2,015 2,333
====================================================================================================================================
Lawrence H. Brown
For 32,134,911 2,367 2,296 2,013 2,331
Withhold 242,911 -- 2 2 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,377,822 2,367 2,298 2,015 2,333
====================================================================================================================================
Anthony T. Dean
For 32,140,550 2,367 2,296 2,013 2,331
Withhold 237,272 -- 2 2 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,377,822 2,367 2,298 2,015 2,333
====================================================================================================================================
Anne E. Impellizzeri
For 32,116,985 2,367 2,296 2,013 2,331
Withhold 260,837 -- 2 2 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,377,822 2,367 2,298 2,015 2,333
====================================================================================================================================
Peter R. Sawers
For 32,129,865 2,367 2,296 2,013 2,331
Withhold 247,957 -- 2 2 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,377,822 2,367 2,298 2,015 2,333
====================================================================================================================================
William J. Schneider
For -- 2,367 2,296 2,013 2,331
Withhold -- -- 2 2 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,367 2,298 2,015 2,333
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,367 2,296 2,013 2,331
Withhold -- -- 2 2 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,367 2,298 2,015 2,333
====================================================================================================================================
Judith M. Stockdale
For 32,109,599 2,367 2,296 2,012 2,331
Withhold 268,223 -- 2 3 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,377,822 2,367 2,298 2,015 2,333
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 31,993,510 2,366 2,298 2,014 2,329
Against 98,439 1 -- -- 4
Abstain 285,873 -- -- 1 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,377,822 2,367 2,298 2,015 2,333
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
SHAREHOLDER MEETING REPORT
<CAPTION>
NQS
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-F
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Robert P. Bremner
For 30,958,908 1,460 1,648 2,446 2,156
Withhold 324,812 4 -- -- 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total 31,283,720 1,464 1,648 2,446 2,161
====================================================================================================================================
Lawrence H. Brown
For 30,979,330 1,460 1,648 2,446 2,156
Withhold 304,390 4 -- -- 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total 31,283,720 1,464 1,648 2,446 2,161
====================================================================================================================================
Anthony T. Dean
For 30,994,718 1,460 1,648 2,446 2,156
Withhold 289,002 4 -- -- 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total 31,283,720 1,464 1,648 2,446 2,161
====================================================================================================================================
Anne E. Impellizzeri
For 30,976,472 1,460 1,648 2,440 2,156
Withhold 307,248 4 -- 6 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total 31,283,720 1,464 1,648 2,446 2,161
====================================================================================================================================
Peter R. Sawers
For 30,989,024 1,460 1,648 2,440 2,156
Withhold 294,696 4 -- 6 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total 31,283,720 1,464 1,648 2,446 2,161
====================================================================================================================================
William J. Schneider
For -- 1,459 1,648 2,446 2,156
Withhold -- 5 -- -- 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,464 1,648 2,446 2,161
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,459 1,648 2,446 2,156
Withhold -- 5 -- -- 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,464 1,648 2,446 2,161
====================================================================================================================================
Judith M. Stockdale
For 30,953,415 1,455 1,648 2,446 2,156
Withhold 330,305 9 -- -- 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total 31,283,720 1,464 1,648 2,446 2,161
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 30,944,977 1,457 1,644 2,442 2,154
Against 74,946 4 2 -- 5
Abstain 263,797 3 2 4 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 31,283,720 1,464 1,648 2,446 2,161
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SHAREHOLDER MEETING REPORT
NQU
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 49,397,346 2,345 2,744 2,341 3,634 2,579
Withhold 346,121 1 63 18 50 24
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,743,467 2,346 2,807 2,359 3,684 2,603
====================================================================================================================================
Lawrence H. Brown
For 49,412,198 2,345 2,744 2,341 3,637 2,579
Withhold 331,269 1 63 18 47 24
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,743,467 2,346 2,807 2,359 3,684 2,603
====================================================================================================================================
Anthony T. Dean
For 49,422,368 2,345 2,744 2,341 3,637 2,579
Withhold 321,099 1 63 18 47 24
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,743,467 2,346 2,807 2,359 3,684 2,603
====================================================================================================================================
Anne E. Impellizzeri
For 49,379,073 2,345 2,747 2,325 3,637 2,579
Withhold 364,394 1 60 34 47 24
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,743,467 2,346 2,807 2,359 3,684 2,603
====================================================================================================================================
Peter R. Sawers
For 49,417,613 2,345 2,744 2,341 3,637 2,579
Withhold 325,854 1 63 18 47 24
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,743,467 2,346 2,807 2,359 3,684 2,603
====================================================================================================================================
William J. Schneider
For -- 2,345 2,744 2,341 3,634 2,579
Withhold -- 1 63 18 50 24
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,346 2,807 2,359 3,684 2,603
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,345 2,744 2,341 3,637 2,579
Withhold -- 1 63 18 47 24
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,346 2,807 2,359 3,684 2,603
====================================================================================================================================
Judith M. Stockdale
For 49,353,876 2,345 2,747 2,340 3,634 2,570
Withhold 389,591 1 60 19 50 33
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,743,467 2,346 2,807 2,359 3,684 2,603
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 49,261,019 2,344 2,766 2,359 3,652 2,595
Against 124,899 2 40 -- 1 --
Abstain 357,549 -- 1 -- 31 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,743,467 2,346 2,807 2,359 3,684 2,603
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
SHAREHOLDER MEETING REPORT
<CAPTION>
NPF
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred
Common Shares Shares
Shares Series-T Series-TH
====================================================================================================================================
<S> <C> <C> <C>
Robert P. Bremner
For 18,403,453 2,346 2,496
Withhold 83,352 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,486,805 2,346 2,498
====================================================================================================================================
Lawrence H. Brown
For 18,416,537 2,346 2,496
Withhold 70,268 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,486,805 2,346 2,498
====================================================================================================================================
Anthony T. Dean
For 18,417,847 2,346 2,498
Withhold 68,958 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,486,805 2,346 2,498
====================================================================================================================================
Anne E. Impellizzeri
For 18,402,008 2,346 2,496
Withhold 84,797 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,486,805 2,346 2,498
====================================================================================================================================
Peter R. Sawers
For 18,418,780 2,346 2,498
Withhold 68,025 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,486,805 2,346 2,498
====================================================================================================================================
William J. Schneider
For -- 2,346 2,496
Withhold -- -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,346 2,498
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,346 2,498
Withhold -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,346 2,498
====================================================================================================================================
Judith M. Stockdale
For 18,398,033 2,346 2,496
Withhold 88,772 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,486,805 2,346 2,498
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 18,392,073 2,344 2,478
Against 26,355 -- 20
Abstain 68,377 2 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,486,805 2,346 2,498
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen Investment Quality Municipal Fund, Inc. (NQM)
OCTOBER 31, 1998
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.9%
<S> <C> <C> <C> <C>
$ 14,850,000 Alaska Housing Finance Corporation, General
Housing Purpose Bonds, 1994 Series A,
5.400%, 12/01/13 6/04 at 102 Aa2 $15,324,606
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.3%
7,000,000 Arkansas Development Finance Authority, Home Mortgage
Revenue Bonds, 1998 Series A
(Non-AMT), 5.150%, 7/01/17 7/08 at 101 1/2 AAA 7,079,100
3,250,000 City of North Little Rock, Arkansas, Health Facilities
Board (Baptist Health), Healthcare Revenue Bonds,
Series 1996A, 5.400%, 12/01/16 12/06 at 101 AAA 3,362,808
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.9%
9,650,000 Certificates of Participation (1991 Financing Project),
County of Alameda, California, Alameda
County Public Facilities Corporation, 6.000%, 9/01/21 9/06 at 102 AAA 10,648,100
22,400,000 California Health Facilities Financing Authority,
Kaiser Permanente Revenue Bonds, 1993 Series C,
5.600%, 5/01/33 5/03 at 102 A 23,157,120
9,625,000 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) 6/01 at 102 Aaa 10,668,735
5,925,000 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 6/03 at 102 Aa3 6,175,213
7,140,000 Culver City Redevelopment Financing Authority, 1993 Tax
Allocation Refunding Revenue Bonds,
5.000%, 11/01/23 11/03 at 102 AAA 7,134,931
9,740,000 Huntington Park Redevelopment Agency, Single Family
Residential Mortgage Revenue Refunding
Bonds, 1986 Series A, 8.000%, 12/01/19 No Opt. Call AAA* 13,624,604
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 12/03 at 102 BBB 4,322,920
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 5/03 at 102 AAA 6,695,506
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 No Opt. Call AAA 21,714,344
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) No Opt. Call AAA 18,002,078
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.7%
4,940,000 Castle Pines Metropolitan District, Douglas County,
Colorado, General Obligation Refunding and
Improvement Bonds, Series 1990, 7.625%, 12/01/15
(Pre-refunded to 12/01/00) 12/00 at 102 AAA 5,445,362
2,285,000 Colorado Housing Finance Authority, Single Family
Program Senior and Subordinate Bonds,
1996 Series B, 7.450%, 11/01/27 5/06 at 105 Aa2 2,636,593
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991A:
820,000 8.000%, 11/15/25 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 100 Aaa 921,541
2,265,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 2,490,979
7,865,000 Colorado Springs School District No. 11, El Paso County,
Colorado, General Obligation Improvement
Bonds, Series 1996, 7.125%, 12/01/21 12/07 at 125 AA- 10,300,555
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.1%
Connecticut Housing Finance Authority, Housing
Mortgage Finance Program Bonds, 1997 Series C:
1,000,000 5.700%, 11/15/17 (Alternative Minimum Tax) 11/07 at 102 AA 1,048,430
8,605,000 5.850%, 11/15/28 (Alternative Minimum Tax) 11/07 at 102 AA 9,055,386
6,985,000 Connecticut Housing Finance Authority, Housing
Mortgage Finance Program Bonds, 1996 Series D,
Subseries D-2, 6.200%, 11/15/27 (Alternative Minimum Tax) 5/06 at 102 AA 7,461,656
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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) 12/00 at 102 AAA $ 5,586,830
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.8%
4,000,000 Hillsborough County Port District, Florida (Tampa
Port Authority), Revenue Bonds, Series 1990,
8.250%, 6/01/09 (Pre-refunded to 12/01/00) 12/00 at 102 Baa1*** 4,453,080
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) 11/00 at 102 Aaa 21,941,200
Orange County Housing Finance Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds, 1990 Series A:
1,300,000 7.500%, 7/01/10 7/00 at 103 AAA 1,371,903
11,035,000 7.600%, 1/01/24 7/00 at 103 AAA 11,720,936
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.6%
2,250,000 Municipal Electric Authority of Georgia, Project One
Special Obligation Bonds, Fourth Crossover Series,
6.500%, 1/01/20 No Opt. Call A 2,643,413
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 10/99 at 102 A+ 10,382,700
7,325,000 Wayne County Development Authority, Solid Waste
Disposal Revenue Bonds (ITT Rayonier, Inc. Project),
Series 1990, 8.000%, 7/01/15 (Alternative Minimum Tax) 7/00 at 102 BBB+ 7,825,810
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 5.3%
7,500,000 Community College District No. 508, Cook County,
Illinois, Certificates of Participation,
8.750%, 1/01/07 No Opt. Call AAA 9,807,000
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) 11/00 at 102 A3*** 3,616,959
5,000,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1989B (ServantCor), 7.875%, 8/15/19
(Pre-refunded to 8/15/99) 8/99 at 102 N/R*** 5,282,950
5,900,000 Community Unit School District Number 7, Madison County,
Illinois, School Building Bonds,
Series 1994, 5.850%, 2/01/13 No Opt. Call AAA 6,707,474
3,585,000 City of Pekin, Illinois, Multifamily Housing Refunding
Revenue Bonds, Series 1992A (FHA Insured
Mortgage Loan - Section 8 Assisted Project), 6.875%, 5/01/22 5/03 at 103 AAA 3,851,545
1,960,000 City of Peoria, Peoria County, City of Pekin,
Tazewell and Peoria Counties, and City of Waukegan,
Lake County (Illinois) Jointly, GNMA Collateralized
Mortgage Revenue Bonds, Series 1990,
7.875%, 8/01/22 (Alternative Minimum Tax) 8/00 at 103 AA+ 2,058,274
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 No Opt. Call AAA 7,254,778
860,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992B, 9.000%, 6/01/07 No Opt. Call AAA 1,157,534
Southwestern Illinois Development Authority, Solid Waste
Disposal Revenue Bonds (Laclede Steel Company Project), Series 1990:
660,000 8.375%, 8/01/08 (Alternative Minimum Tax) 8/00 at 103 A 717,506
2,910,000 8.500%, 8/01/20 (Alternative Minimum Tax) 8/00 at 103 A 3,169,601
- ------------------------------------------------------------------------------------------------------------------------------------
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 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 6,576,960
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.5%
4,500,000 Sedgwick County, Kansas and Shawnee County,
Kansas, Single Family Mortgage Revenue Bonds
(Mortgaged-Backed Securities Program),
1997 Series A-1, 6.950%, 6/01/29
(Alternative Minimum Tax) No Opt. Call Aaa 5,017,455
4,870,000 City of Topeka, Kansas, Variable Rate Demand
Industrial Revenue Refunding Bonds, Series 1988
(Sunwest Hotel Corporation Project), 9.500%,
10/01/16 (Pre-refunded to 8/15/16)
(Alternative Minimum Tax) 8/16 at 100 AAA 6,950,026
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KENTUCKY - 2.7%
$ 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 4/05 at 102 Aa2 $13,408,625
1,480,000 Kentucky Housing Corporation, Housing Revenue
Bonds (FHA Insured/VA Guaranteed), 1990 Series C
Bonds, 8.100%, 1/01/22 (Alternative Minimum Tax) 7/00 at 102 AAA 1,559,654
7,740,000 County of Warren, Kentucky, Hospital Revenue Bonds,
Series 1998 (Bowling Green-Warren County
Community Hospital Corporation), 4.875%, 4/01/27 4/08 at 101 AAA 7,418,248
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.1%
4,945,000 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) 8/00 at 102 Aaa 5,174,102
4,600,000 East Baton Rouge Mortgage Finance Authority,
Single Family Mortgage Revenue Refunding Bonds
(GNMA and FNMA Mortgage-Backed Securities Program),
Series 1997D, 5.900%, 10/01/30
(Alternative Minimum Tax) 10/07 at 102 Aaa 4,818,592
2,550,000 Louisiana Public Facilities Authority (West
Jefferson Medical Center), 7.900%, 12/01/15
(Pre-refunded to 12/01/98) 12/98 at 102 AAA 2,611,277
15,890,000 Louisiana Public Facilities Authority, Fixed
Rate Health and Education Capital Facilities Revenue Bonds
(West Jefferson Medical Center), Series 1985D, 7.900%, 12/01/15 6/99 at 102 AAA 16,268,023
4,560,000 Louisiana Public Facilities Authority, Extended
Care Facilities Revenue Bonds (Comm-Care Corporation
Project), Series 1994, 11.000%, 2/01/04 No Opt. Call BBB 5,480,345
11,545,000 Orleans Parish School Board, Public School
Refunding Bonds, Series 1987,
9.000%, 2/01/09 No Opt. Call AAA 16,010,375
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.6%
4,880,000 Maine State Housing Authority, Mortgage Purchase
Bonds, 1994 Series C-2, 6.875%, 11/15/23
(Alternative Minimum Tax) 10/04 at 102 AA 5,255,126
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.3%
2,000,000 City of Gaithersburg (Maryland), First Mortgage
Economic Development Revenue Bonds (Asbury
Methodist Home, Incorporated Facility),
Series 1990, 7.850%, 1/01/20
(Pre-refunded to 1/01/00) 1/00 at 102 N/R*** 2,135,300
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 8.3%
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) 8/00 at 102 Aaa 17,694,625
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Goddard Memorial Hospital Issue, Series B:
3,810,000 9.000%, 7/01/15 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 4,221,518
5,705,000 9.000%, 7/01/15 7/00 at 102 BBB 6,174,407
535,000 Massachusetts Housing Finance Agency,
Residential Housing Revenue Bonds, 1988 Series B,
8.100%, 8/01/23 (Alternative Minimum Tax) 8/99 at 102 A- 553,869
Massachusetts Water Resources Authority,
General Revenue Bonds, 1990 Series A:
15,000,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 16,148,700
4,000,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 4,299,440
4,000,000 Massachusetts Water Resources Authority,
General Revenue Refunding Bonds, Series 1993,
5.000%, 3/01/22 3/03 at 100 AAA 3,932,120
15,000,000 Massachusetts Water Resources Authority,
General Revenue Refunding Bonds, 1997 Series D,
5.000%, 8/01/24 8/08 at 101 AAA 14,816,850
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.9%
10,000,000 City of Detroit, Michigan, Water Supply
System Revenue and Revenue Refunding Bonds,
Series 1993, 6.500%, 7/01/15 No Opt. Call AAA 11,953,800
3,650,000 City of Detroit, Michigan, Water Supply
System Revenue (Senior Lien) Bonds, Series 1997-A,
5.000%, 7/01/27 7/07 at 101 AAA 3,597,769
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA - 1.4%
$ 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 (Mortgage Backed Program),
Series 1988, 8.450%, 9/01/19
(Alternative Minimum Tax) No Opt. Call AAA $ 7,130,350
1,330,000 The Dakota County Housing and Redevelopment
Authority, Minnesota, Governmental Housing
Development Bonds (Dakota County, Minnesota,
General Obligation - Burnsville Senior Housing
Facility), Series 1998, 4.750%, 1/01/23 1/08 at 100 AAA 1,313,907
2,860,000 City of Hopkins, Minnesota, Elderly Housing
Revenue Refunding Bonds (St. Therese Southwest, Inc.
Project), Series 1994A, 6.500%, 3/01/19 (Pre-refunded to 3/01/04) 3/04 at 102 AAA 3,262,202
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
1,950,000 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) 10/99 at 102 AAA 2,035,605
895,000 Mississippi Home Corporation, Single Family
Senior Revenue Refunding Bonds, Series 1990A,
9.250%, 3/01/12 9/00 at 103 AAA 957,426
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.3%
2,125,000 Missouri Housing Development Commission,
Single Family Mortgage Revenue Bonds
(Homeownership Loan Program),
1997 Series A-2, 7.300%, 3/01/28
(Alternative Minimum Tax) 3/07 at 105 AAA 2,424,880
- ------------------------------------------------------------------------------------------------------------------------------------
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) 3/04 at 102 AAA 3,432,198
13,330,000 Nebraska Investment Finance Authority, Single
Family Housing Revenue Bonds, 1995 Series B,
6.450%, 3/01/35 (Alternative Minimum Tax) 3/05 at 101 1/2 AAA 14,132,999
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.2%
The City of New York, General Obligation Bonds, Fiscal 1997 Series G:
95,000 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A-*** 109,270
9,905,000 6.000%, 10/15/26 10/07 at 101 10/07 at 101 A- 10,792,686
7,000,000 New York City (New York), Municipal Water Finance
Authority, Water and Sewer System Revenue
Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 6/06 at 101 AAA 7,532,420
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) 6/00 at 101 1/2 Aaa 10,999,170
11,500,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) at 100 Aaa 11,971,040
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) 1/99 at 102 Baa2 4,311,048
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 No Opt. Call BBB+ 16,555,447
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) 7/00 at 102 Aaa 10,907,800
8,960,000 Dormitory Authority of the State of New York, State
University Educational Facilities, Revenue Bonds,
Series 1989B, 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 9,644,455
3,500,000 State of New York Mortgage Agency, Homeowner Mortgage
Revenue Bonds, Series HH-3,
7.950%, 4/01/22 (Alternative Minimum Tax) 6/00 at 102 Aa2 3,669,470
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) 2/00 at 102 AAA 5,348,950
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.9%
2,795,000 Charlotte Mortgage Revenue Refunding Bonds (FHA
Insured Mortgage-Double Oaks Apartments),
7.350%, 5/15/26 11/07 at 100 AAA 3,127,717
19,200,000 North Carolina Eastern Municipal Power Agency,
Power System Revenue Bonds, Refunding
Series 1996 B, 5.875%, 1/01/21 1/07 at 102 AAA 20,959,296
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OREGON - 1.8%
$ 8,990,000 Northern Wasco County Peoples Utility District,
Wasco County, Oregon, McNary Dam Fishway
Hydroelectric Project Revenue Bonds, Series 1993
(Bonneville Power Administration),
5.200%, 12/01/24 12/03 at 102 Aa1 $ 9,039,805
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) 9/00 at 102 AAA 2,727,225
2,500,000 Hillsboro School District No. 1J, Washington,
Multnomah and Yamhill Counties, Oregon,
General Obligation Refunding Bonds, Series 1998, 5.000%, 11/01/12 No Opt. Call Aa3 2,640,800
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.3%
4,905,000 McKean County Hospital Authority, Hospital
Revenue Bonds, Series of 1990 (Bradford Hospital
Project), 8.875%, 10/01/20 10/00 at 102 BBB- 5,461,374
6,395,000 Pennsylvania Housing Finance Agency, Single
Family Mortgage Revenue Bonds, Series 1990-28,
7.650%, 10/01/23 (Alternative Minimum Tax) 10/00 at 102 AA+ 6,545,091
7,040,000 City of Philadelphia, Pennsylvania, Water and
Wastewater Revenue Bonds, Series 1993,
5.000%, 6/15/16 6/03 at 100 AAA 7,049,645
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 4.0%
4,835,000 Newport Housing Development Corporation, 1995
Multifamily Mortgage Revenue Refunding Bonds
(Broadway-West Broadway Apartments - FHA
Insured Mortgage Section 8 Assisted Project),
Series A, 6.800%, 8/01/24 6/03 at 100 AAA 5,400,018
25,250,000 Rhode Island Health and Educational Building
Corporation, Hospital Financing Revenue Bonds,
Lifespan Obligated Group Issue, Series 1996, 5.750%, 5/15/23 5/07 at 102 AAA 26,989,220
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.4%
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) 7/00 at 102 AA 3,648,403
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.2%
1,895,000 Tennessee Housing Development Agency,
Homeownership Program Bonds, Issue H, Series 1988,
7.825%, 7/01/15 (Alternative Minimum Tax) 7/12 at 100 AA 1,970,345
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 3.9%
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) 1/99 at 102 BBB+ 4,407,314
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) 2/00 at 102 BBB+ 2,125,040
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 11/03 at 102 AAA 3,664,360
2,260,000 The Cameron County Housing Finance Corporation,
GNMA Collateralized Mortgage Revenue
Refunding Bonds, 1990 Series B, 7.850%, 3/01/24 9/00 at 103 AAA 2,392,617
Dallas Housing Corporation Refunding and Capital Program Revenue
Bonds (Section 8 Assisted Projects), Series 1990:
1,000,000 7.700%, 8/01/05 8/00 at 102 Baa2 1,052,470
2,000,000 7.850%, 8/01/13 8/00 at 102 Baa2 2,104,680
13,175,000 Harris County Hospital District Refunding Revenue Bonds,
Texas, Series 1990,
7.400%, 2/15/10 No Opt. Call AAA 16,023,435
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.5%
3,955,000 Vermont Housing Finance Agency, Single Family Housing Bonds,
Series 1, 8.150%, 5/01/25
(Alternative Minimum Tax) 11/00 at 102 A+ 4,168,926
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.6%
11,320,000 State of Washington, General Obligation Bonds, Series 1994A,
4.750%, 10/01/1310/03 at 100 AA+ 11,326,905
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
(Pre-refunded to 7/01/00) 7/00 at 102 AAA 3,241,140
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 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) 7/00 at 102 AAA $ 2,183,860
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) 7/99 at 102 AAA 1,832,022
1,460,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,532,517
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) 7/00 at 102 Aaa 6,076,631
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) 1/00 at 102 AAA 14,773,892
16,060,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds,
Series 1993B, 5.600%, 7/01/15 7/03 at 102 AAA 16,806,147
4,500,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds,
Series 1993C, 5.375%, 7/01/15 7/03 at 102 Aa1 4,598,234
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.4%
3,145,000 Wisconsin Housing and Economic Development
Authority, Home Ownership
Revenue Bonds, 1989 Series B, 7.600%, 3/01/15 9/99 at 102 AA 3,251,773
- ------------------------------------------------------------------------------------------------------------------------------------
$ 728,750,000 Total Investments - (cost $730,329,939) - 97.9% 802,549,491
=============-----------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.6%
4,500,000 City of Chicago, Chicago Midway Airport,
Second Lien Revenue Bonds, Series 1998A,
Variable Rate Demand Bonds, 3.850%, 1/01/29+ (Alternative Minimum Tax) VMIG-1 4,500,000
800,000 Geisinger Authority Health System,
Series 1998B, Variable Rate Demand Bonds,
3.700%, 8/15/28+ VMIG-1 800,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,300,000 Total Temporary Investments - 0.6% 5,300,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 12,300,997
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $820,150,488
====================================================================================================================
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using
the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. government or U.S. government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
+ 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.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen Select Quality Municipal Fund, Inc. (NQS)
OCTOBER 31, 1998
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 0.8%
$ 2,900,000 The Water Works Board of the City of Arab (Alabama),
Water Revenue Bonds, Series 1991,
7.050%, 8/01/16 8/01 at 102 AAA $3,190,174
2,625,000 Jefferson County, Alabama, Sewer Revenue Refunding
Warrants, Series 1997-A,
5.375%, 2/01/27 2/07 at 100 AAA 2,700,521
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.2%
3,230,000 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 8/01 at 103 AA 3,434,491
4,500,000 City of Little Rock, Arkansas, Hotel and
Restaurant Gross Receipts Tax Refunding Bonds,
Series 1993, 7.375%, 8/01/15 No Opt. Call A 5,741,280
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.8%
3,125,000 State of California Department of Transportation,
Refunding Certificates of Participation,
Series 1997A, 5.250%, 3/01/16 3/07 at 102 AAA 3,242,188
3,200,000 State of California Department of Water Resources,
Central Valley Project, Water System
Revenue Bonds, Series M, 4.875%, 12/01/27 12/03 at 101 AA 3,126,880
4,000,000 California Statewide Communities Development
Authority, Certificates of Participation
(Sisters of Charity of Leavenworth Health
Services Corporation), 5.000%, 12/01/23 12/03 at 102 AA 3,940,760
7,285,000 Department of Water and Power of The City of
Los Angeles (California), Electric Plant
Refunding Revenue Bonds, Issue of 1993, 5.375%, 9/01/23 9/03 at 102 Aa3 7,528,319
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) 7/01 at 102 Aaa 24,036,898
10,000,000 San Joaquin Hills Transportation Corridor Agency,
Toll Road Refunding Revenue Bonds,
Series 1997A, 5.250%, 1/15/30 1/07 at 102 AAA 10,249,500
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.6%
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1992C:
2,560,000 6.750%, 11/15/22 (Pre-refunded to 11/15/02) (Alternative Minimum Tax) 11/02 at 102 Aaa 2,892,442
9,590,000 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 Baa1 10,500,091
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991A:
5,305,000 8.750%, 11/15/23 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 102 Aaa 6,170,458
14,695,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Baa1 16,755,533
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991D:
1,040,000 7.750%, 11/15/21 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 102 Aaa 1,179,994
3,960,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Baa1 4,402,490
1,360,000 Jefferson County, Colorado, Single Family Revenue
Refunding Bonds, Series 1991A,
8.875%, 10/01/13 4/01 at 103 AAA 1,451,650
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.5%
7,340,000 Connecticut Development Authority, Health Facility
Refunding Revenue Bonds, Alzheimer's Resource
Center of Connecticut, Inc. Project, Series 1991A,
10.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 103 N/R*** 8,745,096
9,785,000 Connecticut Development Authority, Health Facility
Refunding Revenue Bonds, Alzheimer's Resource
Center of Connecticut, Inc. Project, Series 1994A, 7.250%, 8/15/21 8/04 at 102 N/R 10,688,743
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.0%
5,000,000 District of Columbia (Washington, D.C.), General
Obligation Bonds, Series 1998B,
6.000%, 6/01/11 No Opt. Call AAA 5,680,950
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) 12/00 at 102 AAA 1,730,150
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA - 3.0%
$ 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) 10/00 at 101 1/2 Aaa $15,336,56
7,400,000 State of Florida, Orlando-Orange County Expressway
Authority, Junior Lien Revenue Refunding Bonds,
Series of 1993A, 5.125%, 7/01/20 7/03 at 102 AAA 7,432,634
- ------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.3%
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) 7/01 at 102 AAA 17,909,760
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 7.4%
14,605,000 City of Chicago, General Obligation Bonds (Emergency
Telephone System), Series 1993,
5.625%, 1/01/23 1/03 at 102 AAA 15,420,251
5,000,000 City of Chicago (Illinois), General Obligation Bonds,
Project and Refunding, Series 1995B,
5.125%, 1/01/25 1/06 at 102 AAA 4,985,350
30,000,000 Chicago School Reform Board of Trustees of the
Board of Education of the City of Chicago, Illinois,
Unlimited Tax General Obligation Bonds (Dedicated
Tax Revenues), Series 1998A,
0.000%, 12/01/25 No Opt. Call AAA 7,449,000
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 1/02 at 105 AAA 857,096
6,780,000 7.650%, 12/31/31 1/02 at 105 AAA 7,424,575
10,375,000 Illinois Educational Facilities Authority,
Adjustable Demand Revenue Bonds, The University of Chicago,
Series 1985 Remarketed, 5.700%, 12/01/25 (Pre-refunded to 12/01/03) 12/03 at 102 Aa1*** 11,438,126
1,585,000 Illinois Housing Development Authority,
Multi-Family Housing Bonds, 1991 Series C,
7.400%, 7/01/23 7/01 at 102 A+ 1,670,289
7,375,000 Metropolitan Pier and Exposition Authority (Illinois),
McCormick Place Expansion Project Refunding Bonds,
Series 1998A, 5.500%, 12/15/23 No Opt. Call AAA 7,981,963
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.8%
8,640,000 Avon Community School Building Corporation, First
Mortgage Bonds, Series 1994 (Hendricks County,
Indiana), 5.500%, 1/01/16 1/04 at 101 AAA 8,948,707
5,145,000 Beacon Heights Housing Development Corporation, 1991
Multifamily Mortgage Revenue Refunding
Bonds (FHA Insured Mortgage-Section 8
Assisted Project), Series A, 7.625%, 2/01/21 6/01 at 100 AAA 5,384,706
5,770,000 Fremont Middle School Building Corporation, First
Mortgage Refunding Bonds, Series 1994 A,
Steuben County, Indiana, 5.250%, 1/15/13 1/04 at 101 AAA 5,943,446
1,090,000 Michigan City Housing Development Corporation, 1991
Multifamily Mortgage Revenue Refunding
Bonds (FHA Insured Mortgage-Section 8 Assisted
Project), Series A, 7.625%, 2/01/21 6/01 at 100 AAA 1,139,715
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.4%
7,875,000 City of Merriam, Kansas, Hospital Refunding
Revenue Bonds, Series 1991C (Shawnee Mission
Medical Center, Inc. Project),
7.250%, 9/01/04 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 8,458,774
8,800,000 City of Merriam, Kansas, Hospital Refunding
Revenue Bonds, Series 1991B (Shawnee Mission
Medical Center, Inc. Project), 7.250%, 9/01/21
(Pre-refunded to 9/01/01) 9/01 at 102 AAA 9,793,784
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4%
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 11/01 at 103 Aa 3,195,749
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.2%
1,565,000 Calcasieu Parish Public Trust Authority (Louisiana),
Mortgage Revenue Refunding Bonds,
1991 Series A, 7.750%, 6/01/12 6/01 at 103 A1 1,666,381
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.7%
7,375,000 Boston Housing Development Corporation, Mortgage
Revenue Refunding Bonds, Series 1994A
(FHA Insured Mortgage Loans - Section 8
Assisted Projects), 5.500%, 7/01/24 1/04 at 102 AAA 7,514,240
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$ 2,000,000 Massachusetts Health and Educational
Facilities Authority, Revenue Bonds, Lowell General Hospital
Issue, Series A, 8.400%, 6/01/11 (Pre-refunded to 6/01/01) 6/01 at 102 A3*** $2,266,340
19,025,000 Massachusetts Water Resources Authority,
General Revenue Bonds, 1990 Series A, 6.000%, 4/01/20
(Pre-refunded to 4/01/00) 4/00 at 100 AAA 19,700,197
6,300,000 Somerville Housing Authority (Massachusetts),
Mortgage Revenue Bonds, Series 1990
(GNMA Collateralized - Clarendon Hill
Towers Project), 7.950%, 11/20/30 5/00 at 102 AAA 6,623,316
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
3,625,000 Fowlerville Community Schools, Counties of
Livingston, Ingham, and Shiawassee, State of Michigan,
1996 School Building and Site Bonds, 5.600%, 5/01/26 5/07 at 100 AAA 3,831,988
7,890,000 Michigan State Hospital Finance Authority,
Hospital Revenue Bonds (The Detroit Medical Center
Obligated Group), Series 1991A,
7.500%, 8/15/11 (Pre-refunded to 8/15/01) 8/01 at 102 Aaa 8,837,589
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.9%
3,465,000 Chisago County, Southcentral Minnesota
Multi-County, and Stearns County, Housing and
Redevelopment Authorities, Single Family
Mortgage Revenue Refunding Bonds (Fannie Mae
Mortgage-Backed Securities Program), Series
1994B, 7.050%, 9/01/27 (Alternative Minimum Tax) 3/04 at 102 27/32 AAA 3,764,826
The Dakota, Washington, and Stearns Counties
Housing and Redevelopment Authority, Single
Family Mortgage Revenue Refunding Bonds (Fannie
Mae Mortgage-Backed Securities Program),
Series 1994A:
1,750,000 6.600%, 9/01/17 (Alternative Minimum Tax) 3/04 at 102 AAA 1,866,533
1,235,000 6.700%, 3/01/21 (Alternative Minimum Tax) 3/04 at 102 AAA 1,318,140
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.2%
1,435,000 Goodman Housing Development Corporation, 1991
Multifamily Mortgage Revenue Refunding
Bonds (Goodhaven Manor-FHA Insured Mortgage,
Section 8 Assisted Project), Series A,
7.625%, 2/01/22 8/01 at 100 AAA 1,501,297
- ------------------------------------------------------------------------------------------------------------------------------------
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) 3/05 at 101 1/2 AAA 11,292,931
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.5%
10,000,000 Clark County School District, Nevada, General
Obligation (Limited Tax), School Improvement Bonds,
Series 1996, 6.000%, 6/15/15 6/06 at 101 AAA 11,351,900
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.5%
4,420,000 New Jersey Housing and Mortgage Finance Agency,
Section 8 Bonds, 1991 Series A,
6.850%, 11/01/06 11/01 at 102 AA+ 4,736,958
13,920,000 The Pollution Control Financing Authority of
Salem County (New Jersey), Pollution Control
Revenue Refunding Bonds, 1993 Series C (Public
Service Electric and Gas Company Project),
5.550%, 11/01/33 11/03 at 102 AAA 14,742,533
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.1%
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 4/01 at 102 A+ 15,267,995
1,130,000 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) 9/99 at 102 AA- 1,169,686
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.9%
12,750,000 The City of New York, General Obligation Bonds,
Fiscal 1991 Series F, 8.250%, 11/15/10
(Pre-refunded to 11/15/01) 11/01 at 101 1/2 AAA 14,614,943
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 4,000,000 The City of New York, New York, General Bonds,
Fiscal 1998 Series F, 5.250%, 8/01/14 2/08 at 101 A- $4,117,920
The City of New York, General Obligation Bonds,
Fiscal 1997 Series G:
90,000 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A-*** 103,519
9,200,000 6.000%, 10/15/26 10/07 at 101 A- 10,024,504
10,000,000 Dormitory Authority of the State of New York,
Mental Health Services Facilities Improvement
Revenue Bonds, Series 1998D, 5.000%, 2/15/23 8/08 at 101 AAA 9,909,000
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) 4/02 at 102 AAA 6,739,200
100,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA Insured
Mortgage Revenue Bonds, 1988, 8.000%, 2/15/28 No Opt. Call AAA 102,392
New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1991
Series B:
1,020,000 7.600%, 2/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A-*** 1,144,379
1,010,000 7.600%, 8/15/06 (Pre-refunded to 8/15/01) 8/01 at 102 A-*** 1,133,159
5,970,000 7.625%, 8/15/17 (Pre-refunded to 8/15/01) 8/01 at 102 A-*** 6,701,862
New York Medical Care Facilities Finance Agency, Mental Health
Services Facilities Improvement Revenue Bonds, 1991 Series D:
5,380,000 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A-*** 6,077,571
40,000 7.400%, 2/15/18 2/02 at 102 A- 44,545
New York Medical Care Facilities Finance Agency, Mental Health
Services Facilities Improvement Revenue Bonds, 1991 Series B:
595,000 7.600%, 2/15/06 8/01 at 102 A- 659,058
580,000 7.600%, 8/15/06 8/01 at 102 A- 642,443
1,980,000 7.625%, 8/15/17 8/01 at 102 A- 2,196,137
12,940,000 New York State Urban Development Corporation,
1996 Corporate Purpose Senior Lien Bonds,
5.500%, 7/01/26 7/06 at 102 AAA 13,516,089
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) 1/01 at 102 Aaa 6,599,400
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.1%
5,000,000 North Carolina Medical Care Commission Health Care
Revenue Bonds (Novant Health Project),
Series 1998B, 5.000%, 10/01/28 10/08 at 101 AAA 4,927,250
18,555,000 North Carolina Eastern Municipal Power Agency,
Power System Revenue Bonds, Refunding
Series 1993 B, 5.500%, 1/01/17 1/03 at 100 AAA 19,014,607
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.5%
1,295,000 Toledo-Lucas County Port Authority,
Development Revenue Bonds (Northwest Ohio Bond Fund),
Series 1989C, 8.400%, 11/15/09 (Alternative Minimum Tax) 11/00 at 102 N/R 1,359,387
2,235,000 Toledo-Lucas County Port Authority,
Development Revenue Bonds (Northwest Ohio Bond Fund),
Series 1989D, 8.500%, 11/15/00 (Alternative Minimum Tax) 11/98 at 100 N/R 2,243,091
320,000 Toledo-Lucas County Port Authority,
Development Revenue Bonds (Northwest Ohio Bond Fund),
Series 1990D, 8.500%, 5/15/00 (Alternative Minimum Tax) No Opt. Call N/R 329,008
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.2%
9,250,000 Oklahoma County Home Finance Authority (Oklahoma
County, Oklahoma), Single Family Mortgage
Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 7/01 at 102 Aaa 9,834,508
21,025,000 Trustees of the Tulsa Municipal Airport Trust,
Revenue Bonds, Series 1991, 7.600%, 12/01/30
(Alternative Minimum Tax) 6/01 at 102 Baa2 22,806,028
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.7%
2,000,000 Philadelphia Authority for Industrial Development,
Airport Revenue Bonds, Series 1998A (Philadelphia
Airport System Project), 5.000%, 7/01/23 (Alternative Minimum Tax) 7/08 at 101 AAA 1,943,260
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) 8/01 at 100 AAA 10,886,000
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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 4/03 at 102 Aa2 $5,318,850
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.0%
7,490,000 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 (Pre-refunded to
10/15/14) (Alternative Minimum Tax) 10/14 at 100 AAA 9,992,109
5,000,000 South Dakota Housing Development Authority,
Homeownership Mortgage Bonds, 1996 Series D,
6.300%, 5/01/27 (Alternative Minimum Tax) 11/06 at 102 AAA 5,392,400
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.4%
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 (Pre-refunded to 5/15/02) 5/02 at 102 AAA 7,937,668
5,500,000 The Tennessee Energy Acquisition Corporation,
Gas Revenue Bonds, Series 1998A,
4.500%, 9/01/08 No Opt. Call AAA 5,598,230
4,865,000 Tennessee Housing Development Agency,
Homeownership Program Bonds, Issue V,
7.650%, 7/01/22 (Alternative Minimum Tax) 7/01 at 102 AA 5,085,725
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.8%
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) 1/99 at 102 BBB+ 6,649,452
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) 2/00 at 102 BBB+ 9,116,422
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 1/01 at 102 AAA 3,756,655
9,450,000 El Paso Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds, Series 1991A,
8.750%, 10/01/11 4/01 at 103 A2 10,481,846
2,600,000 The Harrison County Finance Corporation, Single
Family Mortgage Revenue Refunding Bonds,
Series 1991, 8.875%, 12/01/11 12/01 at 103 A1 2,764,424
5,000,000 City of Houston, Texas, Airport System Subordinate
Lien Revenue Bonds, Series 1998B,
5.000%, 7/01/25 (Alternative Minimum Tax) (WI) 7/08 at 100 AAA 4,821,700
7,000,000 Matagorda County Navigation District Number
One (Texas), Collateralized Revenue Refunding
Bonds (Houston Lighting and Power Company
Project), Series 1997, 5.125%, 11/01/28
(Alternative Minimum Tax) (WI, settling on 11/24/98) No Opt. Call AAA 7,000,000
2,395,000 Panhandle Regional Housing Finance Corporation,
Single Family Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program),
Series 1991A, 7.500%, 5/01/24
(Alternative Minimum Tax) 5/01 at 100 AAA 2,482,944
4,560,000 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) 4/04 at 103 AAA 4,918,690
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.0%
13,650,000 Intermountain Power Agency, Power Supply
Revenue Refunding Bonds, 1993 Series A,
5.500%, 7/01/20 7/03 at 102 AAA 14,256,197
16,550,000 Utah County, Utah, Hospital Revenue Bonds,
Series 1997 (IHC Health Services, Inc.),
5.250%, 8/15/26 8/07 at 101 AAA 16,643,011
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.1%
Municipality of Metropolitan Seattle, Washington,
Sewer Refunding Revenue Bonds, Series Z:
2,160,000 5.450%, 1/01/16 1/03 at 102 AAA 2,236,745
3,095,000 5.450%, 1/01/17 1/03 at 102 AAA 3,198,280
2,490,000 5.450%, 1/01/19 1/03 at 102 AAA 2,559,969
1,800,000 5.450%, 1/01/20 1/03 at 102 AAA 1,850,580
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 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) 1/00 at 102 AAA $4,258,040
10,000,000 Washington Public Power Supply System, Nuclear
Project No. 1, Refunding Revenue Bonds,
Series 1997A, 5.125%, 7/01/16 7/07 at 102 AAA 10,081,100
Washington Public Power Supply System, Nuclear
Project No. 2, Refunding Revenue Bonds,
Series 1992A:
7,880,000 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 Aa1*** 8,690,773
2,130,000 6.250%, 7/01/12 7/02 at 102 Aa1 2,314,628
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) 7/00 at 102 AAA 2,163,940
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) 7/00 at 102 Aaa 5,377,550
5,000,000 Washington Public Power Supply System, Nuclear
Project No. 2, Refunding Revenue Bonds,
Series 1994A, 5.375%, 7/01/11 7/04 at 102 Aa1 5,148,350
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) 1/00 at 102 AAA 25,572,652
3,935,000 Washington Public Power Supply System, Nuclear
Project No. 3, Refunding Revenue Bonds,
Series 1993C, 5.375%, 7/01/15 7/03 at 102 Aa1 4,020,901
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.8%
11,080,000 Wisconsin Center District, Junior Dedicated Tax
Revenue Bonds, Series 1996B, 5.750%, 12/15/27 12/06 at 101 A 11,778,151
2,100,000 Wisconsin Health and Educational Facilities
Authority, Revenue Bonds (Wausau Hospitals, Inc.
Project), Series 1991B, 6.700%, 8/15/20 (Pre-refunded to 2/15/01) 2/01 at 102 AAA 2,280,763
- ------------------------------------------------------------------------------------------------------------------------------------
$ 738,035,000 Total Investments - (cost $702,670,022) - 99.6% 767,029,951
=============-----------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.5%
$ 3,500,000 Development Authority of Monroe County (Georgia),
============= Pollution Control Revenue Bonds (Georgia Power
Company Plant, Scherer Project), First Series
1995, Variable Rate Demand Bonds,
3.700%, 7/01/25+ VMIG-1 3,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.1%) (755,545)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $769,774,406
====================================================================================================================================
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely payment
of principal and interest. Securities are normally considered to be equivalent
to AAA rated securities.
+ 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.
(WI) Security purchased on a when-issued basis (note 1). N/R Investment is not
rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen Quality Income Municipal Fund, Inc. (NQU)
OCTOBER 31, 1998
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 3.1%
$ 8,180,000 Alabama Drinking Water Finance Authority, Revolving Fund
Loan Bonds, Series 1998 A,
4.850%, 8/15/22 9/08 at 100 AAA $ 7,948,833
6,500,000 The Governmental Utility Services Corporation of the
City of Bessemer (Alabama), Water Supply
Revenue Bonds, Series 1998, 5.200%, 6/01/24 6/08 at 102 AAA 6,587,295
17,000,000 The Industrial Development Board of the Town of
Courtland, Pollution Control Refunding Revenue
Bonds (Champion International Corporation Project),
Series 1995, 6.150%, 6/01/19 6/05 at 102 Baa1 17,943,500
6,480,000 The Industrial Development Board of the Town of
Courtland (Alabama), Solid Waste Disposal Revenue
Bonds (Champion International Corporation Project),
Refunding Series 1998A, 5.700%, 10/01/28
(Alternative Minimum Tax) 10/08 at 102 Baa1 6,465,809
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.0%
1,665,000 Alaska Housing Finance Corporation, Collateralized Bonds,
1991 First Series (Veterans Mortgage Program),
Issue A-1, 7.125%, 12/01/30 6/01 at 102 AAA 1,749,982
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) 12/02 at 102 Aa2*** 7,579,170
14,590,000 Alaska State Housing Finance Corporation, Governmental
Purpose Bonds, 1995 Series A,
5.875%, 12/01/30 12/05 at 102 AAA 15,381,653
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.5%
5,375,000 Yuma Regional Medical Center on behalf of Hospital
District No. 1 of Yuma County, Arizona, Hospital
Revenue Improvement and Refunding Bonds (Yuma
Regional Medical Center Project), Series 1992,
8.000%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 N/R*** 6,248,330
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1%
2,915,000 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 8/01 at 103 AA 3,099,549
5,990,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Bonds, 1995 Series B
(Mortgage-Backed Securities Program),
6.700%, 7/01/27 (Alternative Minimum Tax) 7/05 at 102 AAA 6,487,110
1,690,000 Little River County, Arkansas, Refunding Revenue
Bonds (Georgia-Pacific Corporation Project),
Series 1998, 5.600%, 10/01/26 (Alternative Minimum Tax) 10/07 at 102 Baa2 1,694,022
2,500,000 Board of Trustees of the University of Arkansas, Parking System
Revenue Construction and Refunding Bonds (UAMS Campus), Series
1998, 5.050%, 7/01/19 7/08 at 100 AAA 2,516,000
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 9.7%
10,580,000 Brea Public Financing Authority (Orange County,
California), 1991 Tax Allocation Revenue Bonds, Series A
(Redevelopment Project AB), 7.000%, 8/01/15 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 11,756,602
4,420,000 Brea Public Financing Authority, Tax Allocation, 7.000%, 8/01/15 8/01 at 102 AAA 4,861,425
3,855,000 California Housing Finance Agency, Home Mortgage
Revenue Bonds, 1991 Series G, 7.050%, 8/01/27
(Alternative Minimum Tax) 8/01 at 102 Aa2 4,079,785
5,860,000 California Housing Finance Agency, Multifamily
Housing Revenue Bonds III, 1998 Series A,
5.450%, 8/01/28 (Alternative Minimum Tax) 8/08 at 102 AAA 6,007,848
3,000,000 California Health Facilities Financing Authority,
Kaiser Permanente, Revenue Bonds, 1993 Series C,
5.600%, 5/01/33 5/03 at 102 A 3,101,400
5,000,000 State of California, Veterans General
Obligation Bonds, Series BH, 5.600%, 12/01/32
(Alternative Minimum Tax) 12/03 at 102 Aa3 5,161,850
9,250,000 State of California, Veterans General
Obligation Bonds, Series BL, 5.300%, 12/01/12
(Alternative Minimum Tax) 12/08 at 101 Aa3 9,444,065
10,500,000 State of California, General Obligation Bonds, 5.000%, 2/01/21 2/08 at 101 Aa3 10,492,230
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 10,000,000 State of California, Veterans General
Obligation Bonds, Series BN (Non-AMT),
5.450%, 12/01/28 12/03 at 101 Aa3 $10,191,100
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
(Pre-refunded to 10/01/02) 10/02 at 102 Aaa 3,958,325
17,000,000 State Public Works Board of the State of California,
Lease Revenue Bonds (Department of Corrections),
1994 Series A (California State Prison-Monterey
County (Soledad II)), 7.000%, 11/01/19
(Pre-refunded to 11/01/04) 11/04 at 102 Aaa 20,252,780
2,500,000 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 7/00 at 100 BBB 2,600,950
3,000,000 Department of Water and Power of the City of
Los Angeles, California, Water Works Revenue Bonds,
Issue of 1992, 6.500%, 4/15/32 4/02 at 102 AA 3,313,320
3,395,000 City of Norco Refunding Certificates of Participation,
Series 1998 (Sewer System and Water System
Improvement Project), 5.125%, 10/01/28 10/08 at 102 AAA 3,425,012
6,700,000 County of Orange, California, 1996 Recovery
Certificates of Participation, Series A,
6.000%, 7/01/26 7/06 at 102 AAA 7,521,956
2,000,000 City of Redwood City Public Financing Authority,
1991 Local Agency Revenue Bonds, Series B,
7.250%, 7/15/11 (Pre-refunded to 7/15/01) 7/01 at 102 A-*** 2,230,840
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 9/01 at 102 A+ 9,840,652
3,235,000 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) 3/01 at 102 AAA 3,412,407
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.0%
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1990A:
8,765,000 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 Baa1 9,636,767
1,505,000 8.000%, 11/15/25 (Pre-refunded to 11/15/00) (Alternative Minimum Tax) 11/00 at 102 Aaa 1,665,975
15,910,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 Baa1 17,305,784
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991A:
3,425,000 8.750%, 11/15/23 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 102 Aaa 3,983,755
9,485,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Baa1 10,814,987
1,100,000 8.000%, 11/15/25 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 100 Aaa 1,236,213
3,040,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 3,343,301
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991D:
3,165,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Baa1 3,518,657
1,025,000 7.000%, 11/15/25 (Pre-refunded to 11/15/01) (Alternative Minimum Tax) 11/01 at 100 Aaa 1,122,990
3,825,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 4,104,569
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) 9/01 at 100 N/R*** 5,730,814
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.2%
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) 2/01 at 102 AA- 5,686,013
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) 2/01 at 102 AA- 9,187,728
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.0%
Clayton County Hospital Authority, Revenue Anticipation
Certificates (Southern Regional Medical Center Project),
Georgia, Series 1991:
2,900,000 6.500%, 8/01/10 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 3,171,063
4,500,000 7.000%, 8/01/13 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 4,977,810
15,900,000 The Fulton-De Kalb Hospital Authority, Georgia, Revenue
Certificates, Series 1991 (Grady Memorial
Hospital), 6.900%, 1/01/20 (Pre-refunded to 1/01/01) 1/01 at 102 AAA 17,285,526
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
IDAHO - 0.1%
$ 1,000,000 Idaho Health Facilities Authority, Hospital Revenue Bonds
(Idaho Elks Rehabilitation Hospital Project),
Series 1998, 5.450%, 7/15/23 7/08 at 101 BBB $ 1,006,800
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.6%
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) 5/00 at 102 AAA 6,425,640
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) 5/01 at 102 AAA 10,991,000
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois Unlimited Tax General
Obligation Bonds (Dedicated Tax Revenues), Series 1998B-1:
9,400,000 0.000%, 12/01/14 No Opt. Call AAA 4,240,716
4,400,000 0.000%, 12/01/15 No Opt. Call AAA 1,873,476
6,405,000 City of Chicago, Chicago-O'Hare International Airport,
Special Facility Revenue Bonds (United Air Lines,
Inc. Project), Series 1984B, 8.850%, 5/01/18 11/00 at 103 Baa2 7,091,680
24,430,000 The County of Cook, Illinois, General Obligation
Bonds, Series 1991, 6.750%, 11/01/18
(Pre-refunded to 11/01/01) 11/01 at 102 AAA 27,042,300
Illinois Development Finance Authority, Multi-family Housing
Revenue Bonds, Series 1992 (Town and Garden Apartments Project):
5,570,000 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 BBB+ 6,090,851
1,150,000 7.200%, 9/01/08 (Alternative Minimum Tax) 3/02 at 102 BBB+ 1,236,676
11,000,000 Illinois Health Facilities Authority, Hospital
Revenue Bonds, Series 1993-A (Hinsdale Hospital),
7.000%, 11/15/19 11/03 at 102 AAA 12,815,990
2,800,000 Illinois Housing Development Authority, Section 8
Elderly Housing Revenue Bonds (Garden House of
Maywood Development), Series 1992, 7.000%, 9/01/18 9/02 at 102 A 2,972,676
5,265,000 Illinois Health Facilities Authority (Rockford
Memorial Hospital), Revenue Refunding Bonds, Series 1991A,
6.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 100 AAA 5,596,011
14,500,000 Illinois Health Facilities Authority, Revenue
Bonds, Series 1991 (Northwestern Memorial Hospital),
6.750%, 8/15/11 8/01 at 102 AA 15,832,260
3,000,000 Illinois Health Facilities Authority, Revenue
Refunding Bonds, Series 1991 (Sherman Hospital Project),
6.750%, 8/01/21 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 3,299,070
3,590,000 Joliet Regional Port District Airport Facilities,
Revenue Bonds, Lewis University Airport, Series 1997A,
7.250%, 7/01/18 (Alternative Minimum Tax) 7/07 at 103 N/R 3,846,900
10,575,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992A, 6.125%, 6/01/22 6/02 at 100 AAA 11,254,761
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.3%
5,905,000 Indiana Health Facility Financing Authority, Hospital
Revenue Bonds, Series 1992 (Community Hospitals
Projects), 7.000%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 6,514,632
4,000,000 The Indianapolis Local Public Improvement Bond Bank,
Series 1992 D Bonds,
6.500%, 2/01/22 No Opt. Call AA 4,007,840
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 12/04 at 102 Aa2 5,769,828
- ------------------------------------------------------------------------------------------------------------------------------------
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 (Pre-refunded to 11/01/01) 11/01 at 101 AAA 4,940,730
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.6%
City of Merriam, Kansas, Hospital Refunding Revenue
Bonds, Series 1991B (Shawnee Mission Medical
Center, Inc. Project):
7,380,000 7.250%, 9/01/11 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 8,213,423
10,000,000 7.250%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 AAA 11,129,300
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KENTUCKY - 2.8%
$ 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), Series 1991-G, 6.800%, 3/01/19
(Pre-refunded to 3/01/02) 3/02 at 102 AAA $11,156,300
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) 9/01 at 102 N/R*** 3,324,930
10,000,000 Kentucky Economic Development Finance Authority,
Revenue Refunding and Improvement Bonds
(Catholic Health Initiatives), Series 1998A, 5.000%, 12/01/27 6/08 at 101 AA 9,737,900
10,085,000 Kentucky Housing Corporation, Housing Revenue
Bonds (Federally Insured or Guaranteed Mortgage
Loans), 1995 Series B, 6.625%, 7/01/26 (Alternative Minimum Tax) 1/05 at 102 AAA 10,881,211
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7%
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) 4/01 at 102 Aa2 13,926,396
3,985,000 7.450%, 4/01/32 (Alternative Minimum Tax) 4/01 at 102 Aa2 4,198,716
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 5/01 at 102 Aa2 3,573,172
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.1%
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) 3/01 at 102 Aaa 11,190,036
19,600,000 7.000%, 3/01/22 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 21,449,848
15,000,000 Massachusetts Industrial Finance Agency,
Resource Recovery Revenue Bonds
(SEMASS Project), Series 1991A, 9.000%, 7/01/15 7/01 at 103 N/R 16,694,250
3,300,000 Massachusetts Industrial Finance Agency,
Resource Recovery Revenue Bonds (SEMASS Project),
Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 7/01 at 103 N/R 3,672,801
6,000,000 Massachusetts Industrial Finance Agency,
Resource Recovery Revenue Refunding Bonds (Ogden Haverhill
Project) Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) 12/08 at 102 BBB 6,021,120
17,500,000 Massachusetts Turnpike Authority, Metropolitan
Highway System Revenue Bonds,
1997 Series C (Senior), 5.000%, 1/01/37 1/07 at 102 AAA 17,105,025
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.3%
7,000,000 City of Grand Rapids, Michigan, Water Supply
System Refunding Revenue Bonds, Series 1991,
6.250%, 1/01/11 1/01 at 102 AAA 7,471,100
5,000,000 Michigan State Hospital Finance Authority,
Hospital Revenue Bonds (The Detroit Medical Center Obligated
Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) 8/01 at 102 Aaa 5,600,500
8,500,000 Michigan Strategic Fund, Limited Obligation
Revenue Bonds (Waste Management, Inc. Project),
Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) 12/02 at 102 BBB+ 9,192,495
16,875,000 Michigan Strategic Fund, Limited Obligation Refunding
Revenue Bonds (The Detroit Edison Company
Pollution Control Bonds Project), Collateralized
Series 1991DD, 6.875%, 12/01/21 12/01 at 102 AAA 18,531,450
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.0%
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 (Mortgage Backed Program),
Series 1988, 8.450%, 9/01/19
(Alternative Minimum Tax) No Opt. Call AAA 5,212,286
4,440,000 Minnesota Housing Finance Agency, Single
Family Mortgage Bonds, 1994 Series J, 6.950%, 7/01/26
(Alternative Minimum Tax) 1/04 at 102 AA 4,772,112
2,440,000 Washington County Housing and Redevelopment
Authority, Multifamily Housing Revenue Bonds (FHA
Insured Mortgage Loan-Cottages Phase III Project),
Series 1991., 7.650%, 8/01/32
(Alternative Minimum Tax) 8/01 at 102 AAA 2,603,065
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6%
3,330,000 Canton Housing Development Corporation, 1990
Multifamily Mortgage Revenue Refunding Bonds (Canton
Estates Apartments Project - FHA Insured Mortgage,
Section 8 Assisted Project), Series A,
7.750%, 8/01/24 No Opt. Call AAA 4,229,433
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSISSIPPI (CONTINUED)
$ 1,205,000 Charter Mortgage Corporation, 1990 Multifamily
Mortgage Revenue Refunding Bonds (Church Garden
Apartments - FHA Insured Mortgage, Section 8
Assisted Project), Series A,
7.750%, 8/01/21 8/01 at 100 AAA $ 1,512,167
1,325,000 Pearl Housing Development Corporation, 1990
Multifamily Mortgage Revenue Refunding Bonds (Rose
Garden Apartments Project - FHA Insured Mortgage,
Section 8 Assisted Project), Series A,
7.750%, 8/01/22 2/01 at 100 AAA 1,370,779
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.7%
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 7/02 at 102 Baa1 6,094,084
5,605,000 7.000%, 7/01/22 7/02 at 102 Baa1 6,067,637
Health and Educational Facilities Authority of the State of
Missouri, Health Facilities Refunding and Improvement Revenue
Bonds (Heartland Health Systems Project), Series 1989:
2,105,000 7.625%, 10/01/00 10/99 at 102 1/2 BBB+ 2,238,836
6,500,000 8.125%, 10/01/10 10/99 at 102 1/2 BBB+ 6,942,455
- ------------------------------------------------------------------------------------------------------------------------------------
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 8/01 at 102 AAA 7,665,840
- ------------------------------------------------------------------------------------------------------------------------------------
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) 3/05 at 101 1/2 AAA 11,774,620
8,000,000 Nebraska Investment Finance Authority, Single
Family Housing Revenue Bonds, 1995 Series B,
6.450%, 3/01/35 (Alternative Minimum Tax) 3/05 at 101 1/2 AAA 8,481,920
- ------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
3,560,000 New Hampshire Housing Finance Authority, Single
Family Residential Mortgage Bonds, 1991 Series C,
7.100%, 1/01/23 7/01 at 102 Aa3 3,754,483
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.0%
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 12/01 at 102 B2 13,053,950
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.3%
1,495,000 Dutchess County Resource Recovery Agency (New York),
Solid Waste System Revenue Bonds, Tax
Exempt Forward, Series 1999A, 5.450%, 1/01/14 (WI) 1/10 at 102 AAA 1,535,709
2,155,000 N.F. Housing and Commercial Rehabilitation Corporation,
1992 Multifamily Mortgage Revenue
Refunding Bonds (FHA Insured Mortgage - Section 8
Assisted Project), 7.350%, 8/01/23 No Opt. Call AA 2,590,763
6,000,000 The City of New York, General Obligation Bonds,
Fiscal 1997 Series H, 6.125%, 8/01/25 8/07 at 101 A- 6,595,020
5,475,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series B, 7.250%, 8/15/19
(Pre-refunded to 8/15/04) 8/04 at 101 Aaa 6,462,526
The City of New York, General Obligation Bonds, Fiscal 1996
Series J (Subseries J-1):
1,670,000 6.000%, 2/15/24 (Pre-refunded to 2/15/06) 2/06 at 101 1/2 A-*** 1,895,250
9,330,000 6.000%, 2/15/24 2/06 at 101 1/2 A- 10,083,304
6,700,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series F, 6.625%, 2/15/25
(Pre-refunded to 2/15/05) 2/05 at 101 A-*** 7,735,619
5,660,000 The City of New York (New York), General Obligation
Bonds, Fiscal 1993 Series B, 6.750%, 10/01/17
(Pre-refunded to 10/01/02) 10/02 at 101 1/2 A-*** 6,357,765
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 6/05 at 101 AAA 15,407,786
Dormitory Authority of the State of New York, State University
Educational Facilities Revenue Bonds, Series 1990A:
13,000,000 7.400%, 5/15/01 5/00 at 102 A- 13,953,030
11,750,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 12,724,545
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 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 (Pre-refunded to 8/01/01) 8/01 at 102 AA*** $ 9,295,445
Dormitory Authority of the State of New York, Mental Health
Services Facilities Improvement Revenue Bonds, Series 1997A:
13,060,000 5.750%, 8/15/22 2/07 at 102 A- 14,007,895
5,000,000 5.750%, 2/15/27 2/07 at 102 A- 5,367,100
4,550,000 Dormitory Authority of the State of New York,
Mental Health Services Facilities Improvement Revenue
Bonds, Series 1997B, 5.500%, 8/15/17 2/07 at 102 A- 4,751,429
21,075,000 New York Local Government Assistance Corporation,
New York, Series 1991B, 7.500%, 4/01/20
(Pre-refunded to 4/01/01) 4/01 at 102 AAA 23,356,790
8,000,000 New York State Medical Care Facilities Finance Agency,
New York Hospital FHA-Insured Mortgage
Revenue Bonds, 1994 Series A, 6.500%, 8/15/29 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 9,239,040
5,000,000 New York State Medical Care Facilities Finance Agency,
Hospital Medical Center Secured Hospital
Revenue Bonds, Series 1995-A, 6.850%, 2/15/17 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 5,869,700
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 8/05 at 102 AA 4,812,764
4,250,000 6.300%, 8/15/25 8/05 at 102 AA 4,675,680
8,025,000 New York State Thruway Authority, General
Revenue Bonds, Series C, 6.000%, 1/01/25
(Pre-refunded to 1/01/05) 1/05 at 102 AAA 9,045,860
3,325,000 Penfield-Crown Oak Housing Development Corporation,
1991 Multifamily Mortgage Revenue Refunding
Bonds (Crown Oak Estates - FHA Insured Mortgage
Section 8 Assisted Project), Series A,
7.350%, 8/01/23 2/03 at 100 AAA 3,549,870
- ------------------------------------------------------------------------------------------------------------------------------------
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 1/02 at 102 Baa1 11,269,020
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.0%
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 1/02 at 102 BBB- 5,197,680
6,330,000 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) 3/05 at 102 AAA 6,834,691
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.5%
9,360,000 Oklahoma County Home Finance Authority (Oklahoma
County, Oklahoma), Single Family Mortgage
Revenue Refunding Bonds, 1991 Series A, 8.750%, 7/01/12 7/01 at 102 Aaa 9,951,458
17,510,000 Pottawatomie County Home Finance Authority
(Oklahoma), Municipal Refunding Collateralized Mortgage
Obligations, Series 1991A, 8.625%, 7/01/10 No Opt. Call AAA 24,188,314
10,000,000 Trustees of the Tulsa Municipal Airport Trust,
1988 Adjustable Rate Revenue Obligations,
7.375%, 12/01/20 (Alternative Minimum Tax) 12/00 at 102 Baa2 10,704,500
10,100,000 Trustees of the Tulsa Municipal Airport Trust,
Revenue Bonds, Series 1991, 7.600%, 12/01/30
(Alternative Minimum Tax) 6/01 at 102 Baa2 10,955,571
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.5%
Falls Township Hospital Authority, Refunding Revenue Bonds, The
Delaware Valley Medical Center Project (FHA Insured Mortgage),
Series 1992:
3,215,000 6.900%, 8/01/11 8/02 at 102 AAA 3,436,256
3,000,000 7.000%, 8/01/22 8/02 at 102 AAA 3,336,030
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.4%
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 4/00 at 100 Aa2 5,373,932
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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 (Pre-refunded to 10/01/01) 10/01 at 102 AAA $ 7,186,205
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.9%
10,300,000 Metropolitan Nashville Airport Authority (Tennessee),
Airport Improvement Revenue Bonds,
Refunding Series 1991C, 6.625%, 7/01/07 7/01 at 102 AAA 11,225,867
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.7%
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) 12/00 at 102 Baa2 15,398,084
Arlington Independent School District (Tarrant County, Texas),
Unlimited Tax Refunding and Improvement Bonds, Series 1995:
11,635,000 0.000%, 2/15/11 2/05 at 71 15/16 Aa 6,284,413
13,985,000 0.000%, 2/15/14 2/05 at 58 11/16 Aa 6,171,581
6,500,000 Bell County Health Facilities Development Corporation,
Retirement Facility Revenue Bonds (Buckner
Retirement Services, Inc. Obligated Group Project),
Series 1998, 5.250%, 11/15/19 11/08 at 101 A- 6,438,575
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) 11/00 at 102 Baa2 5,996,200
7,985,000 Fort Worth Housing Finance Corporation, Home
Mortgage Revenue Refunding Bonds, Series 1991A,
8.500%, 10/01/11 10/01 at 103 Aa 8,587,548
7,815,000 City of Houston, Texas, Airport System Subordinate
Lien Revenue Bonds, Series 1991B, 6.625%, 7/01/22
(Pre-refunded to 7/01/01) 7/01 at 102 AAA 8,556,331
17,345,000 City of Houston, Texas, Water and Sewer System, Junior
Lien Revenue Refunding Bonds, Series 1991C,
6.375%, 12/01/17 (Pre-refunded to 12/01/01) 12/01 at 102 AAA 18,822,794
7,650,000 Port of Corpus Christi Authority of Nueces County, Texas,
Revenue Refunding Bonds, Series 1992
(Union Pacific Corporation Project), 5.350%, 11/01/10 5/06 at 101 BBB- 7,718,697
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5%
5,800,000 Carbon County, Utah, Solid Waste Disposal Refunding
Revenue Bonds (Laidlaw Inc./ECDC Environmental,
L.C. Project), 1995 Series A, 7.500%, 2/01/10 (Alternative Minimum Tax) 2/05 at 102 BBB+ 6,617,916
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.7%
Vermont Housing Finance Agency, Single Family Housing Bonds, Series 2:
6,405,000 7.300%, 5/01/25 (Alternative Minimum Tax) 11/01 at 102 A+ 6,788,724
1,595,000 6.875%, 5/01/25 (Alternative Minimum Tax) 11/01 at 102 A+ 1,676,616
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.0%
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) 7/00 at 100 AAA 4,050,761
8,320,000 Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series A,
7.150%, 1/01/33 1/02 at 102 AA+ 8,755,053
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.5%
3,010,000 Camas School District No. 117, Clark County,
Washington, Unlimited Tax General Obligation Bonds,
Series 1995, 6.000%, 12/01/14 (Pre-refunded to 12/01/05) 12/05 at 100 AAA 3,385,076
4,185,000 Public Utility District No. 1 of Douglas County,
Washington, Wells Hydro- Electric Revenue Bonds,
Series of 1986, 8.750%, 9/01/18 9/06 at 106 A+ 5,517,086
12,415,000 Federal Way School District No. 210, King County,
Washington, Unlimited Tax General Obligation Bonds,
Series 1991, 6.950%, 12/01/11 (Pre-refunded to 12/01/03) 12/03 at 100 A1*** 14,194,690
1,675,000 Spokane Downtown Foundation, Parking Revenue Bonds,
Series 1998 (River Park Square Project),
5.600%, 8/01/19 8/08 at 102 BBB- 1,687,043
4,000,000 North Thurston School District No. 3, Thurston County,
Washington, Unlimited Tax General Obligation
Bonds, Series 1992, 6.500%, 12/01/09 12/02 at 100 A 4,367,360
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 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) 1/01 at 102 A*** $ 5,187,380
18,000,000 Washington Health Care Facilities Authority,
Revenue Bonds, Series 1998 (Harrison Memorial Hospital),
5.000%, 8/15/28 (WI) 8/13 at 102 AAA 17,416,620
14,850,000 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) 7/00 at 102 Aaa 15,971,324
4,000,000 Washington Public Power Supply System, Nuclear Project
No. 2 Refunding Revenue Bonds,
Series 1994A, 5.375%, 7/01/11 7/04 at 102 Aa1 4,118,680
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) 1/00 at 102 AAA 15,435,394
2,500,000 Washington Public Power Supply System, Nuclear Project
No. 3 Refunding Revenue Bonds,
Series 1998A, 5.125%, 7/01/18 7/08 at 102 Aa1 2,481,449
4,175,000 Washington State University, Recreation Center
Revenue Bonds, Series 1998,
5.000%, 4/01/28 4/08 at 101 AAA 4,108,450
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6%
7,000,000 Wisconsin Housing and Economic Development Authority,
Housing Revenue Bonds, 1992 Series A,
6.850%, 11/01/12 1/02 at 102 A1 7,565,109
10,820,000 Wisconsin Health and Educational Facilities Authority,
Revenue Bonds, Series 1991-B (Novus Health
Group), 6.750%, 12/15/20 (Pre-refunded to 12/15/01) 12/01 at 102 AAA 12,004,032
- ------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.6%
4,500,000 Wyoming Community Development Authority, Single Family
Mortgage Bonds Series G 1988
(Federally Insured or Guaranteed Mortgage Loans), 7.250%, 6/01/21
(Alternative Minimum Tax) 11/01 at 103 AA 4,824,539
2,390,000 Wyoming Community Development Authority, Single
Family Mortgage Bonds, 1991 Series B,
7.400%, 6/01/31 6/01 at 102 AA 2,526,396
- ------------------------------------------------------------------------------------------------------------------------------------
$1,174,525,000 Total Investments - (cost $1,148,028,013) - 100.0% 1,251,445,564
==============----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.0% (37,314)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,251,408,250
====================================================================================================================================
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely payment
of principal and interest. Securities are normally considered to be equivalent
to AAA rated securities.
(WI) Security purchased on a when-issued basis (note 1).
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen Premier Municipal Income Fund, Inc. (NPF)
OCTOBER 31, 1998
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 1.0%
$ 4,360,000 Alabama Higher Education Loan Corporation,
Student Loan Revenue Refunding Bonds, Series 1994-D,
5.850%, 9/01/04 (Alternative Minimum Tax) No Opt. Call AAA $ 4,692,668
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.3%
1,065,000 Municipality of Anchorage, Alaska, Home Mortgage
Revenue Bonds (Mortgage-Backed Securities
Program), 1992, 8.000%, 3/01/09 3/02 at 102 AAA 1,143,917
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.1%
5,500,000 Arizona Educational Loan Marketing Corporation,
1992 Educational Loan Revenue Bonds, Series B,
6.950%, 3/01/01 (Alternative Minimum Tax) No Opt. Call Aa2 5,839,845
3,650,000 Gilbert Unified School District No. 41 of Maricopa
County, Arizona, School Improvement Bonds, Project
of 1993, Series C, 6.100%, 7/01/14 (Pre-refunded to 7/01/04) 7/04 at 100 AAA 4,057,632
11,540,000 Yuma Regional Medical Center on behalf of Hospital
District No. 1 of Yuma County, Arizona, Hospital
Revenue Improvement and Refunding Bonds
(Yuma Regional Medical Center Project), Series 1992,
8.000%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 N/R*** 13,415,019
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.2%
1,375,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Bonds, 1994 Series C
(Mortgage-Backed Securities Program), 6.600%, 7/01/17 7/05 at 102 AAA 1,497,650
1,685,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Bonds, 1995 Series B
(Mortgage-Backed Securities Program), 6.550%,
7/01/18 (Alternative Minimum Tax) 7/05 at 102 AAA 1,816,767
255,937 Drew County (Arkansas), Public Facilities Board,
Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 8/01/11 8/03 at 103 Aaa 277,545
1,310,000 Residential Housing Facilities Board of Greene
County, Arkansas, Subordinated
Mortgage Revenue 1/02 at 103 Aa 1,399,080
Bonds, Series 1991-1, 7.250%, 1/01/10
418,756 Public Facilities Board of Stuttgart, Arkansas,
Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 9/01/11 9/03 at 103 Aaa 459,074
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.8%
33,000,000 Foothill/Eastern Transportation Corridor Agency
(California), Toll Road Revenue Bonds, Series 1995A,
0.000%, 1/01/17 No Opt. Call Baa 12,779,250
- ------------------------------------------------------------------------------------------------------------------------------------
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 No Opt. Call BBB 1,578,765
1,250,000 6.875%, 2/15/12 (Pre-refunded to 2/15/02) 2/02 at 102 BBB*** 1,389,663
3,040,000 7.100%, 2/15/22 (Pre-refunded to 2/15/02) 2/02 at 102 BBB*** 3,399,723
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.7%
4,960,000 Connecticut Housing Finance Authority, Housing
Mortgage Finance Program Bonds, 1997 Series A,
Subseries A-4, 6.200%, 11/15/22 (Alternative Minimum Tax) 5/06 at 102 AA 5,321,534
2,000,000 Connecticut Housing Finance Authority, Housing
Mortgage Finance Program Bonds, 1996 Series C-2,
6.250%, 11/15/18 5/06 at 102 AA 2,157,900
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.5%
2,000,000 District of Columbia, Hospital Revenue Refunding
Bonds (Washington Hospital Center Issue),
Series 1992A, 7.000%, 8/15/05 8/02 at 102 A3 2,174,640
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA (CONTINUED)
District of Columbia Housing Finance Agency, Multifamily Housing
Refunding Revenue Bonds, Series 1992B (FHA Insured Mortgage
Loans - Section 8 Assisted Project):
$ 920,000 7.200%, 9/01/12 9/02 at 102 Aa $ 982,670
3,505,000 7.250%, 3/01/24 9/02 at 102 Aa 3,729,741
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.9%
4,000,000 Dade County, Florida, Aviation Bonds,
Series 1996A, 5.750%, 10/01/18
(Alternative Minimum Tax) 10/06 at 102 AAA 4,256,320
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.3%
8,000,000 George L. Smith II World Congress Center Authority,
Refunding Revenue Bonds (Domed Stadium
Project), Series 2000, 5.500%, 7/01/20
(Alternative Minimum Tax)
(WI, settling on 4/04/00) 7/10 at 101 AAA 7,980,320
2,000,000 Municipal Electric Authority of Georgia,
Power Revenue Bonds, Series EE,
7.250%, 1/01/24 No Opt. Call AAA 2,662,960
- ------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
1,360,000 Idaho Housing and Finance Association,
Single Family Mortgage Bonds, 1996 Series E, 6.350%, 7/01/14
(Alternative Minimum Tax) 7/06 at 102 Aa 1,476,103
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.2%
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) 7/02 at 101 1/2 AAA 5,044,365
10,000,000 Chicago School Reform Board of Trustees of the
Board of Education of the City of Chicago, Illinois,
Unlimited Tax General Obligation Bonds
(Dedicated Tax Revenues), Series 1998A,
0.000%, 12/01/20 No Opt. Call AAA 3,225,000
1,100,000 Public Building Commission of Chicago (Illinois),
Building Revenue Bonds, Series B of 1990
(Board of Education of the City of Chicago), 7.000%, 1/01/15 No Opt. Call AAA 1,309,242
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) 12/04 at 102 N/R*** 9,708,088
7,695,000 Illinois Development Finance Authority,
Multi-Family Housing Revenue Bonds, Series 1992 (Town
and Garden Apartments Project), 7.800%,
3/01/06 (Alternative Minimum Tax) 3/02 at 102 BBB+ 8,414,559
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 1/02 at 105 AAA 663,558
5,270,000 7.650%, 12/31/31 1/02 at 105 AAA 5,771,019
7,400,000 Illinois Health Facilities Authority,
Revenue Bonds, Series 1992 (Trinity Medical Center),
7.000%, 7/01/12 7/02 at 102 BBB 8,010,796
Illinois Health Facilities Authority,
Revenue Refunding Bonds, Series 1992A (Evangelical
Hospitals Corporation):
125,000 6.750%, 4/15/12 (Pre-refunded to 4/15/02) 4/02 at 102 AA-*** 139,318
740,000 6.750%, 4/15/12 No Opt. Call AA- 893,735
4,715,000 Illinois Housing Development Authority,
Section 8 Elderly Housing Revenue Bonds (Garden House
of Maywood Development), Series 1992, 7.000%, 9/01/18 9/02 at 102 A 5,005,774
750,000 Illinois Housing Development Authority,
Section 8 Elderly Housing Revenue Bonds (Morningside North
Development), Series 1992D, 6.600%, 1/01/07 (Pre-refunded to 1/01/03) 1/03 at 102 A*** 838,560
6,390,000 State of Illinois, Build Illinois Bonds
(Sales Tax Revenue Bonds), Series S, 6.800%, 6/15/12
(Pre-refunded to 6/15/00) 6/00 at 102 AAA 6,849,505
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 7/02 at 102 AAA 2,146,060
2,835,000 Village of Sugar Grove, Kane County, Illinois,
Waterworks and Sewerage Refunding Revenue Bonds,
Series 1992, 7.500%, 5/01/17 5/02 at 102 N/R 3,104,495
5,625,000 Town of Wood River, Wood River Township Hospital,
Madison County, Illinois, General Obligation
Bonds (Alternate Revenue Source), Series 1993, 6.625%, 2/01/14 2/04 at 102 BBB 6,176,925
5,570,000 Town of Wood River, Wood River Township Hospital,
Madison County, Illinois, General Obligation
Tort Immunity Bonds, Series 1993, 6.500%, 2/01/14 2/04 at 102 BBB 6,068,292
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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) 6/99 at 102 A+ $ 2,066,460
2,860,000 PHM Elementary/Middle School Building
Corporation (St. Joseph County, Indiana), First Mortgage
Bonds, Series 1994, 6.300%, 1/15/09 No Opt. Call A 3,298,981
- ------------------------------------------------------------------------------------------------------------------------------------
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) 12/02 at 102 Aaa 1,723,318
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.7%
2,815,000 City of Hutchinson, Kansas, Single Family
Mortgage Revenue Refunding Bonds, Series 1992,
8.875%, 12/01/12 6/02 at 103 A 3,035,189
- ------------------------------------------------------------------------------------------------------------------------------------
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) 7/02 at 102 N/R 5,373,450
- ------------------------------------------------------------------------------------------------------------------------------------
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 9/05 at 103 AAA 1,457,676
- ------------------------------------------------------------------------------------------------------------------------------------
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) No Opt. Call A 8,907,560
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.4%
6,000,000 Anne Arundel County, Maryland, Multifamily Housing
Revenue Bonds (Woodside Apartments Project),
Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) No Opt. Call BBB 6,370,680
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 8.0%
40,000 Massachusetts Municipal Wholesale Electric Company,
Power Supply System Revenue Bonds,
1987 Series A, 8.750%, 7/01/18 No Opt. Call BBB+ 46,102
2,450,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, New England Deaconess
Hospital Issue, Series D, 6.875%, 4/01/22 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 2,741,673
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 2/04 at 102 Aa 4,053,831
6,585,000 Massachusetts Health and Educational Facilities
Authority, Catholic Health East Issue, Series 1998B,
5.000%, 11/18/28 5/08 at 102 AAA 6,449,481
9,120,000 Massachusetts Industrial Finance Agency,
Resource Recovery Revenue Bonds (SEMASS Project),
Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 7/01 at 103 N/R 10,150,286
2,000,000 Massachusetts Housing Finance Agency,
Rental Housing Mortgage Revenue Bonds, 1997 Series C,
5.625%, 7/01/40 (Alternative Minimum Tax) 7/07 at 101 AAA 2,053,940
9,780,000 Massachusetts Water Resources Authority,
General Revenue Bonds, 1992 Series A, 6.750%, 7/15/12
(Pre-refunded to 7/15/02) 7/02 at 102 AAA 10,987,145
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.6%
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) 3/02 at 102 BBB+*** 2,870,675
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.4%
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 10/04 at 102 N/R 10,732,800
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.7%
8,610,000 Mississippi Home Corporation,
Residual Revenue Capital Appreciation Bonds,
Series 1992-I, 0.000%, 9/15/16 3/04 at 41 21/32 Aaa 2,941,262
10/04 at 102 N/R 10,732,800
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSOURI - 1.0%
$ 4,710,000 Missouri State Health and Educational
Facilities Authority, Revenue Bonds (SSM Health Care),
Series 1998A, 5.000%, 6/01/22 6/08 at 101 AAA $ 4,629,742
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 3.9%
2,830,000 City of Grand Island, Nebraska,
Electric System Revenue Bonds, 1977 Series,
6.100%, 9/01/12 No Opt. Call A+ 3,205,145
2,350,000 Nebraska Higher Education Loan Program Inc.,
Senior Subordinate Bonds, Series A-5B,
6.250%, 6/01/18 (Alternative Minimum Tax) No Opt. Call AAA 2,524,323
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) 2/02 at 101 1/2 AAA 12,021,392
- ------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
1,140,000 New Hampshire Municipal Bond Bank,
Educational Institutions Division Revenue Bonds (1994 Coe-Brown
Northwood Academy Project), 7.250%, 5/01/09 No Opt. Call N/R 1,253,863
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.7%
3,000,000 New Jersey Educational Facilities Authority,
Revenue Bonds, Trenton State College Issue,
Series 1996 A, 5.125%, 7/01/24 7/06 at 101 AAA 3,020,250
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.2%
3,500,000 The City of New York, General Obligation Bonds,
Fiscal 1992 Series B, 7.500%, 2/01/01 No Opt. Call A- 3,777,165
1,000,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series A, 7.000%, 8/01/04 No Opt. Call A- 1,146,370
The City of New York, General Obligation Bonds,
Fiscal 1995 Series E:
450,000 6.500%, 8/01/02 No Opt. Call Aaa 494,118
1,100,000 6.500%, 8/01/02 No Opt. Call A- 1,199,066
3,080,000 6.600%, 8/01/04 No Opt. Call A- 3,472,300
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) 11/01 at 101 1/2 AAA 2,387,391
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) 8/02 at 101 1/2 AAA 2,230,940
4,000,000 The City of New York, General Obligation Bonds,
Fiscal 1996 Series J
(Subseries J-1), 5.875%, 2/15/19 2/06 at 101 1/2 A- 4,287,440
The City of New York, General Obligation Bonds,
Fiscal 1991 Series D,
3,850,000 9.500%, 8/01/02 (Pre-refunded to 8/01/01) 8/01 at 101 1/2 Aaa 4,491,872
150,000 9.500%, 8/01/02 8/01 at 101 1/2 A- 173,454
8,480,000 New York City (New York), Transitional Finance Authority,
Future Tax Secured Bonds, Fiscal 1998 Series A,
5.125%, 8/15/21 8/07 at 101 AA 8,456,680
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) 7/00 at 102 Aaa 7,063,940
5,000,000 New York Local Government Assistance Corporation,
New York, Series 1991B, 7.500%, 4/01/20
(Pre-refunded to 4/01/01) 4/01 at 102 AAA 5,541,350
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 8/02 at 102 AAA 6,408,300
4,840,000 New York State Medical Care Facilities Finance Agency,
St. Luke's-Roosevelt Hospital Center,
FHA-Insured Mortgage Revenue Bonds, 1993 Series A, 5.600%, 8/15/13 8/03 at 102 AAA 5,084,952
8,000,000 New York State Medical Care Facilities Finance Agency,
Hospital Insured Mortgage Revenue Bonds,
1994 Series A Refunding, 5.375%, 2/15/25 2/04 at 102 AAA 8,158,720
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) 4/01 at 102 Aaa 9,364,882
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.5%
10,300,000 North Carolina Eastern Municipal Power Agency,
Power System Revenue Bonds, Refunding
Series 1993 B, 6.000%, 1/01/22 No Opt. Call AAA 11,803,594
2,130,000 North Carolina Housing Finance Agency,
Multifamily Revenue Refunding Bonds (1992 Refunding
Bond Resolution), Series B, 6.900%, 7/01/24 7/02 at 102 AA 2,284,638
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NORTH CAROLINA (CONTINUED)
$ 2,000,000 North Carolina Housing Finance Agency,
Home Ownership Revenue Bonds, Series 1-A (1998 Trust
Agreement), 5.375%, 1/01/29 (Alternative Minimum Tax) 7/08 at 101 AA $ 2,033,620
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.6%
2,110,000 Cleveland-Rock Glen Housing Assistance Corporation,
Mortgage Revenue Refunding Bonds, Series 1994A
(FHA Insured Mortgage Loans -
Section 8 Assisted Projects), 6.750%, 1/15/25 7/04 at 103 AAA 2,296,988
8,330,000 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) 9/99 at 102 AAA 8,569,821
860,000 Toledo-Lucas County Port Authority, Development
Revenue Bonds (Northwest Ohio Bond Fund),
Series 1992A, 7.750%, 5/15/07 (Alternative Minimum Tax) 5/00 at 102 N/R 898,485
- ------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.3%
1,230,000 State of Oregon, Housing and Community Services
Department, Mortgage Revenue Bonds
(Single-Family Mortgage Program), 1997 Series H, 5.650%, 7/01/28
(Alternative Minimum Tax) 7/07 at 101 1/2 Aa2 1,272,755
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.3%
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 8/02 at 102 AAA 2,224,020
975,000 Northampton County Hospital Authority (Pennsylvania),
Hospital Revenue Bonds (Easton Hospital),
Series A of 1992, 6.900%, 1/01/02 No Opt. Call BBB 1,023,204
7,585,000 City of Philadelphia, Pennsylvania, Water and Sewer
Revenue Bonds, Tenth Series,
7.350%, 9/01/04 No Opt. Call AAA 8,620,277
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 8/02 at 102 A- 2,746,150
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 8/00 at 100 A- 4,902,877
- ------------------------------------------------------------------------------------------------------------------------------------
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) No Opt. Call A 6,715,325
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 3.5%
9,500,000 Harris County (Texas), Health Facilities Development
Corporation, Adjustable Convertible Extendible
Securities (Greater Houston Pooled Health Care
Loan Program), Series 1985B,
7.375%, 12/01/25 12/98 at 100 A1 9,532,395
4,225,345 General Services Commission (an Agency of the
State of Texas), as Lessee, Participation Interests,
7.500%, 9/01/22 9/99 at 101 1/2 A 4,798,851
1,385,000 Victoria Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds,
Series 1995, 8.125%, 1/01/11 No Opt. Call Aaa 1,541,145
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.8%
1,095,000 Utah Housing Finance Agency, Single Family Mortgage Bonds,
1996 Series C, 6.450%, 7/01/14
(Alternative Minimum Tax) 1/07 at 102 AA 1,175,986
2,250,000 Utah Housing Finance Agency, Single Family Mortgage Bonds,
1997 Series F, 5.750%, 7/01/15
(Alternative Minimum Tax) 7/07 at 101 1/2 AA 2,315,070
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.9%
3,200,000 Suffolk Redevelopment and Housing Authority, Multifamily
Housing Revenue Refunding Bonds,
Series 1994 (Chase Heritage at Dulles Project), 7.000%, 7/01/24 7/02 at 104 Baa2 3,560,032
5,000,000 Virginia Housing Development Authority, Commonwealth
Mortgage Bonds, 1992 Series A,
7.100%, 1/01/22 1/02 at 102 AA+ 5,190,500
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.5%
9,500,000 State of Washington, General Obligation and
General Obligation Refunding Bonds, Series 1992A
and AT-6, 6.250%, 2/01/11 No Opt. Call AA+ 11,115,665
2,500,000 Washington Health Care Facilities Authority,
Revenue Bonds, Series 1992 (Sacred Heart Medical
Center, Spokane), 6.875%, 2/15/12 2/02 at 102 AA- 2,727,175
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 2,000,000 Washington Public Power Supply System,
Nuclear Project No. 3 Refunding Revenue Bonds,
Series 1990B, 7.375%, 7/01/04 7/00 at 102 Aa1 $ 2,142,200
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.4%
1,895,000 West Virginia Housing Development Fund,
Housing Finance Bonds, 1992 Series B, 7.200%, 11/01/20
(Alternative Minimum Tax) 5/02 at 102 AAA 1,977,035
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.2%
2,985,000 Silver Lake Sanitary District, Waushara County, Wisconsin,
Sewer System Mortgage Revenue Bonds,
8.000%, 10/01/18 (Pre-refunded to 10/01/02) 10/02 at 100 N/R*** 3,450,362
5,950,000 Wisconsin Housing and Economic Development Authority,
Housing Revenue Bonds, 1992 Series A,
6.850%, 11/01/12 1/02 at 102 A1 6,430,345
- ------------------------------------------------------------------------------------------------------------------------------------
$ 454,240,038 Total Investments - (cost $418,275,186) - 100.2% 454,860,756
=============-----------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.2%
$ 1,200,000 County of Cuyahoga, Ohio, Hospital Revenue
============= Bonds (the Cleveland Clinic Foundation), Series 1997D,
Variable Rate Demand Bonds, 3.700%, 1/02/26+ VMIG-1 1,200,000
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.4)% (1,912,227)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $454,148,529
====================================================================================================================================
* Optional Call Provisions (not covered by the report of independent auditors):
Dates (month and year) and prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely payment
of principal and interest. Securities are normally considered to be equivalent
to AAA rated securities.
+ 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.
(WI) Security purchased on a when-issued basis (note 1).
N/R Investment is not rated.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
OCTOBER 31, 1998
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investments in municipal securities, at
market value (note 1) $802,549,491 $767,029,951 $1,251,445,564 $454,860,756
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) 5,300,000 3,500,000 -- 1,200,000
Cash 140,986 388,483 310,452 25,737
Receivables:
Interest 15,545,844 13,740,265 24,334,851 7,595,455
Investments sold 215,000 337,850 -- 169,622
Other assets 23,363 42,888 34,603 17,974
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 823,774,684 785,039,437 1,276,125,470 463,869,544
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased -- 11,833,506 18,894,700 7,669,520
Accrued expenses:
Management fees (note 6) 437,708 410,901 659,148 245,906
Other 239,024 239,996 424,990 167,324
Preferred share dividends payable 96,384 95,006 140,480 34,096
Common share dividends payable 2,851,080 2,685,622 4,597,902 1,604,169
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,624,196 15,265,031 24,717,220 9,721,015
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $820,150,488 $769,774,406 $1,251,408,250 $454,148,529
====================================================================================================================================
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 35,638,508 33,781,410 53,776,630 19,927,567
====================================================================================================================================
Net asset value per Common share outstanding
(net assets less Preferred shares
at liquidation value, divided by Common shares
outstanding) $ 16.00 $ 15.68 $ 15.83 $ 15.76
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1998
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1) $49,663,351 $47,230,461 $77,857,732 $27,875,843
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees (note 6) 5,103,931 4,792,816 7,703,039 2,868,655
Preferred shares - auction fees 625,000 600,002 1,000,001 349,999
Preferred shares - dividend disbursing agent fees 40,000 40,000 48,154 19,998
Shareholders' servicing agent fees and expenses 91,871 82,150 135,463 48,129
Custodian's fees and expenses 106,506 101,965 149,046 73,942
Directors' fees and expenses (note 6) 7,556 7,086 11,567 4,189
Professional fees 21,034 20,845 22,351 19,688
Shareholders' reports - printing and mailing expenses 190,852 178,324 292,930 112,902
Stock exchange listing fees 32,445 32,657 48,410 24,262
Investor relations expense 67,314 62,626 102,072 37,228
Other expenses 44,021 39,253 61,502 26,028
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 6,330,530 5,957,724 9,574,535 3,585,020
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 43,332,821 41,272,737 68,283,197 24,290,823
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 4) (173,095) 1,614,188 2,914,470 90,877
Net change in unrealized appreciation or
depreciation of investments 8,887,953 4,958,232 3,095,167 3,062,136
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 8,714,858 6,572,420 6,009,637 3,153,013
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $52,047,679 $47,845,157 $74,292,834 $27,443,836
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
INVESTMENT QUALITY SELECT QUALITY
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/98 10/31/97 10/31/98 10/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C>
Net investment income $ 43,332,821 $ 44,426,800 $ 41,272,737 $ 41,821,126
Net realized gain (loss) from investment
transactions (notes 1 and 4) (173,095) 1,863,026 1,614,188 (260,112)
Net change in unrealized appreciation or
depreciation of investments 8,887,953 8,788,246 4,958,232 12,637,266
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 52,047,679 55,078,072 47,845,157 54,198,280
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (34,939,388) (35,722,144) (32,677,563) (33,652,304)
Preferred shareholders (8,696,853) (8,784,807) (8,430,282) (8,525,310)
From accumulated net realized gains from
investment transactions:
Common shareholders (369,064) -- -- --
Preferred shareholders (89,825) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (44,095,130) (44,506,951) (41,107,845) (42,177,614)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 2,861,357 416,095 3,267,092 2,690,547
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 10,813,906 10,987,216 10,004,404 14,711,213
Net assets at beginning of year 809,336,582 798,349,366 759,770,002 745,058,789
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $820,150,488 $809,336,582 $769,774,406 $759,770,002
====================================================================================================================================
Balance of undistributed net
investment income at end of year $ 620,558 $ 923,978 $ 653,947 $ 489,055
====================================================================================================================================
<CAPTION>
QUALITY INCOME PREMIER INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/98 10/31/97 10/31/98 10/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C>
Net investment income $ 68,283,197 $ 68,818,095 $ 24,290,823 $ 24,649,131
Net realized gain (loss) from investment
transactions (notes 1 and 4) 2,914,470 1,030,758 90,877 (33,540)
Net change in unrealized appreciation or
depreciation of investments 3,095,167 13,732,677 3,062,136 6,209,013
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 74,292,834 83,581,530 27,443,836 30,824,604
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (54,962,532) (54,531,750) (19,804,242) (20,325,882)
Preferred shareholders (13,962,725) (14,032,699) (4,932,868) (4,752,424)
From accumulated net realized gains
from investment transactions:
Common shareholders -- -- -- (766,737)
Preferred shareholders -- -- -- (192,920)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (68,925,257) (68,564,449) (24,737,110) (26,037,963)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 7,504,802 3,855,955 2,635,126 1,866,897
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 12,872,379 18,873,036 5,341,852 6,653,538
Net assets at beginning of year 1,238,535,871 1,219,662,835 448,806,677 442,153,139
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $1,251,408,250 $1,238,535,871 $454,148,529 $448,806,677
- ------------------------------------------------------------------------------------------------------------------------------------
Balance of undistributed net investment
income at end of year $ 1,515,989 $ 2,158,049 $ 449,164 $ 895,451
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
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 have extended settlement periods. 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 the when-issued and delayed delivery purchase commitments. At
October 31, 1998, Select Quality, Quality Income and Premier Income had
when-issued purchase commitments of $11,833,506, $18,894,700 and $7,669,520
respectively. Investment Quality had no such outstanding purchase commitments.
INVESTMENT 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
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its 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 monthly
tax-exempt income dividends paid during the fiscal year ended October 31, 1998,
have been designated Exempt Interest Dividends. Net realized capital gain and
market discount distributions are subject to federal taxation.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
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 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:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
- --------------------------------------------------------------------------
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
==========================================================================
DERIVATIVE FINANCIAL INSTRUMENTS
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the fiscal year ended October 31, 1998.
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. Actual results may differ
from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
INVESTMENT QUALITY SELECT QUALITY
- ------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/98 10/31/97 10/31/98 10/31/97
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 177,666 26,629 205,528 175,523
============================================================================================================
<CAPTION>
QUALITY INCOME PREMIER INCOME
- ------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/98 10/31/97 10/31/98 10/31/97
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 454,528 244,283 161,445 119,104
============================================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 1998, to shareholders of record
on November 15, 1998, as follows:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $.0800 $.0795 $.0855 $.0805
============================================================================================================
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments for the fiscal year ended October
31, 1998, were as follows:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
- -----------------------------------------------------------------------------------------------------------
Purchases:
<S> <C> <C> <C> <C>
Investments in municipal securities $52,641,133 $73,940,646 $258,333,573 $95,187,244
Temporary municipal investments 67,900,000 67,800,000 41,370,000 64,700,000
Sales and Maturities:
Investments in municipal securities 53,060,117 53,775,359 231,796,827 84,564,153
Temporary municipal investments 65,800,000 71,600,000 41,370,000 65,200,000
===========================================================================================================
</TABLE>
At October 31, 1998, 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, 1998, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied the carryforwards will expire as follows:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
- -----------------------------------------------------------------------------------------------------------
Expiration year:
<S> <C> <C> <C>
2002 $ -- $5,012,103 $1,577,137
2003 -- 424,861 757,201
2004 -- 606,382 486,077
2005 -- 260,112 --
2006 173,095 -- --
- -----------------------------------------------------------------------------------------------------------
Total $173,095 $6,303,458 $2,820,415
===========================================================================================================
</TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 1998, were as follows:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
- -----------------------------------------------------------------------------------------------------------
Gross unrealized:
<S> <C> <C> <C> <C>
appreciation $72,221,837 $64,386,498 $103,499,862 $37,033,105
depreciation (2,285) (26,569) (82,311) (447,535)
- -----------------------------------------------------------------------------------------------------------
Net unrealized appreciation $72,219,552 $64,359,929 $103,417,551 $36,585,570
===========================================================================================================
</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 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 as follows:
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
- ----------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
============================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its 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, 1998, net assets consisted of:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
- ----------------------------------------------------------------------------------------------------------------
<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 356,385 337,814 537,766 199,276
Paid-in surplus 497,127,117 470,726,174 748,757,359 276,857,182
Balance of undistributed net investment income 620,558 653,947 1,515,989 449,164
Accumulated net realized gain (loss) from
investment transactions (173,124) (6,303,458) (2,820,415) 57,337
Net unrealized appreciation of investments 72,219,552 64,359,929 103,417,551 36,585,570
- ----------------------------------------------------------------------------------------------------------------
Net assets $820,150,488 $769,774,406 $1,251,408,250 $454,148,529
- ----------------------------------------------------------------------------------------------------------------
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>
8. INVESTMENT COMPOSITION
At October 31, 1998, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
<CAPTION>
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations 3% --% 2% 6%
Health Care 14 4 7 11
Housing/Multifamily 2 7 3 14
Housing/Single Family 16 9 12 9
Tax Obligation/General 5 8 6 6
Tax Obligation/Limited 7 7 5 8
Transportation 1 10 12 4
U.S. Guaranteed 32 34 36 29
Utilities 11 16 9 6
Water and Sewer 7 3 5 1
Other 2 2 3 6
- --------------------------------------------------------------------------------------------------------
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 (63% for Investment Quality, 63% for Select Quality, 51%
for Quality Income and 43% for Premier Income).
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>
Investment Operations
Net Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
Investment Quality
Year Ended 10/31:
<S> <C> <C> <C> <C>
1998 $15.77 $1.22 $ .25 $1.47
1997 15.48 1.25 .30 1.55
1996 15.65 1.29 (.17) 1.12
1995 14.65 1.33 1.04 2.37
1994 16.45 1.32 (1.76) (.44)
Select Quality
Year Ended 10/31:
1998 15.48 1.23 .19 1.42
1997 15.12 1.25 .37 1.62
1996 15.29 1.27 (.17) 1.10
1995 14.03 1.30 1.30 2.60
1994 16.13 1.31 (2.06) (.75)
Quality Income
Year Ended 10/31:
1998 15.73 1.27 .12 1.39
1997 15.44 1.29 .29 1.58
1996 15.43 1.30 .02 1.32
1995 14.20 1.31 1.26 2.57
1994 16.40 1.32 (2.14) (.82)
Premier Income
Year Ended 10/31:
1998 15.62 1.22 .17 1.39
1997 15.38 1.25 .31 1.56
1996 15.34 1.27 .12 1.39
1995 14.08 1.28 1.34 2.62
1994 15.98 1.26 (1.87) (.61)
=====================================================================================
<CAPTION>
Less Distributions
Net Net
Investment Investment Capital Capital
Income Income Gains Gains
To Common To Preferred To Common To Preferred
Shareholders Shareholders+ Shareholders Shareholders+ Total
Investment Quality
Year Ended 10/31:
<S> <C> <C> <C> <C> <C>
1998 $ (.98) $(.25) $(.01) $ -- $(1.24)
1997 (1.01) (.25) -- -- (1.26)
1996 (1.03) (.26) -- -- (1.29)
1995 (1.08) (.29) -- -- (1.37)
1994 (1.12) (.24) -- -- (1.36)
Select Quality
Year Ended 10/31:
1998 (.97) (.25) -- -- (1.22)
1997 (1.01) (.25) -- -- (1.26)
1996 (1.01) (.26) -- -- (1.27)
1995 (1.05) (.29) -- -- (1.34)
1994 (1.08) (.25) (.02) -- (1.35)
Quality Income
Year Ended 10/31:
1998 (1.03) (.26) -- -- (1.29)
1997 (1.03) (.26) -- -- (1.29)
1996 (1.03) (.28) -- -- (1.31)
1995 (1.03) (.31) -- -- (1.34)
1994 (1.10) (.26) (.02) -- (1.38)
Premier Income
Year Ended 10/31:
1998 (1.00) (.25) -- -- (1.25)
1997 (1.03) (.24) (.04) (.01) (1.32)
1996 (1.01) (.26) (.06) (.02) (1.35)
1995 (1.01) (.28) (.06) (.01) (1.36)
1994 (1.04) (.24) (.01) -- (1.29)
==================================================================================================
<PAGE>
<CAPTION>
Total Returns
Ending
Net Asset Ending Based on Based on Net
Value Market Value Market Value* Asset Value*
Investment Quality
Year Ended 10/31:
<S> <C> <C> <C> <C>
1998 $16.00 $15.5000 5.97% 7.97%
1997 15.77 15.5625 10.82 8.68
1996 15.48 15.0000 6.13 5.70
1995 15.65 15.1250 21.89 14.71
1994 14.65 13.3750 (17.87) (4.32)
Select Quality
Year Ended 10/31:
1998 15.68 16.1875 10.96 7.77
1997 15.48 15.5000 9.43 9.35
1996 15.12 15.1250 9.71 5.71
1995 15.29 14.7500 21.03 17.03
1994 14.03 13.1250 (14.45) (6.43)
Quality Income
Year Ended 10/31:
1998 15.83 16.8125 9.64 7.37
1997 15.73 16.3125 14.22 8.81
1996 15.44 15.2500 10.61 6.93
1995 15.43 14.7500 23.26 16.51
1994 14.20 12.8750 (15.32) (6.86)
Premier Income
Year Ended 10/31:
1998 15.76 17.1250 10.29 7.49
1997 15.62 16.5000 16.81 8.85
1996 15.38 15.1250 11.00 7.51
1995 15.34 14.6250 23.92 17.15
1994 14.08 12.7500 (10.05) (5.51)
<PAGE>
<CAPTION>
Ratios/Supplemental Data
Ratio of Net
Ratio of Investment
Ending Expenses to Income to Portfolio
Net Assets Average Average Turnover
(000) Net Assets++ Net Assets++ Rate
Investment Quality
Year Ended 10/31:
<S> <C> <C> <C> <C>
1998 $820,150 .78% 5.31% 7%
1997 809,337 .78 5.56 14
1996 798,349 .78 5.71 8
1995 804,221 .78 5.97 11
1994 768,723 .79 5.83 7
Select Quality
Year Ended 10/31:
1998 769,774 .78 5.40 7
1997 759,770 .78 5.59 10
1996 745,059 .78 5.69 13
1995 749,883 .79 5.91 7
1994 707,388 .80 5.89 11
Quality Income
Year Ended 10/31:
1998 1,251,408 .77 5.49 19
1997 1,238,536 .77 5.62 9
1996 1,219,663 .77 5.67 11
1995 1,218,905 .78 5.86 17
1994 1,153,729 .79 5.78 12
Premier Income
Year Ended 10/31:
1998 454,149 .79 5.38 19
1997 448,807 .80 5.57 5
1996 442,153 .81 5.66 8
1995 441,381 .80 5.84 22
1994 416,566 .81 5.66 31
</TABLE>
* 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.
Total returns are not annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to preferred
shareholders.
<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,
1998, 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, 1998, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen 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, 1998, 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.
Chicago, Illinois
December 11, 1998
<PAGE>
FUND INFORMATION
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Anthony T. Dean
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
YEAR 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to thoroughly review all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the millennium.
Over the last 10 years, our trading, fund management and pricing systems at
Nuveen - the systems that directly affect our investors and their financial
advisers - have been updated or replaced to address the Year 2000 concerns.
We continue to work closely with our transfer agent, custodian and other service
partners to monitor readiness and address other remaining systems issues. Our
initial testing indicates we are on schedule, and we have targeted year-end 1998
to complete verification of vendor compliance and service partner readiness.
However, we can give no complete assurance at this time that the steps we have
taken will be sufficient to prevent any problems that would impact the Nuveen
Exchange-Traded Funds.
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, 1998. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
SERVING INVESTORS FOR GENERATIONS
PHOTO OF: JOHN NUVEEN, SR.
John Nuveen, Sr.
Since our founding in 1898, John Nuveen &Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for risk-sensitive individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them maintain the lifestyle they currently enjoy.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of products and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and income funds, along with our unit trusts and private asset
management, can form the foundation of a tax-efficient and risk-resistant
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you build and sustain your long-term financial
security. Or call us at (800) 257-8787 for more information, including a
prospectus where applicable. Please read that information carefully before you
invest.
NUVEEN 1898 1998
OUR SECOND CENTURY
helping investors sustain the wealth of a lifetime(tm).
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
