Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND
SEMIANNUAL REPORT/JANUARY 31, 1996
Photographic image of man seating at breakfast table with wife standing behind
him.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
12 Commonly used terms
14 Shareholder meeting report
15 Portfolio of investments
37 Statement of net assets
39 Statement of operations
41 Statement of changes in net assets
44 Notes to financial statements
56 Financial highlights
<PAGE>
Dear shareholder
Photographic image of Richard J. Franke, Chairman of Nuveen.
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
During 1995, we enjoyed a welcome rebound in the bond markets--a sharp
contrast to 1994, which was one of the most volatile periods in bond market
history. In fact, 1995 unfolded as one of the best years for bonds in a
decade, as the bond market responded to a climate of slowing economic growth
and diminished inflationary pressure.
The changing profile of the bond market over the past two years serves to
remind us that weathering the ups and downs of the markets is a normal part of
the investment process. By maintaining a long-term perspective on your
investments, you can minimize the impact of short-term fluctuations and keep
the focus on achieving your goals. Municipal bond funds continue to be an
attractive way to invest for the long term, offering a solid source of current
tax-free income and the diversification across municipal market sectors that
our investors seek.
Throughout the past year, we have kept our sights focused on successfully
meeting the funds' objectives. As of January 31, 1996, the current annual
yield on share price for the exchange-traded funds covered in this report
ranged from 5.47% to 6.35%. To match these yields, an investor in the 36%
federal income tax bracket would have had to earn at least 8.55% on taxable
alternatives. Without question, taxable yields at this level on investments of
comparable quality are difficult to achieve in today's markets. The effect of
state taxes further enhances the after-tax yield advantage provided by
municipal bonds.
<PAGE>
Reflecting the rebound in the bond market, each of these funds reported
gains in net asset value over January 31, 1995, as well as substantial
increases in share price. The 12-month total returns on net asset value,
reflecting per share gains plus reinvested dividend income, ranged from 17.48%
to 22.10%, which translate to 22.07% to 26.28% on a taxable-equivalent basis.
As some of you may know, on June 30, 1996, I will be retiring as the
chairman and chief executive officer of John Nuveen & Co. Incorporated, and as
chairman of the board of the Nuveen Funds. As I look back over the 41 years I
have spent at Nuveen, I realize how fortunate I have been to spend my entire
working career at a firm that holds integrity, honesty, and value as the
cornerstones of its business.
I'm confident that these traditions will continue to be the hallmarks of
your relationship with Nuveen. Over the past few years, I have been working
closely with other Nuveen managers to ensure that the company and the funds
continue to be guided by strong and talented management following my
retirement. Timothy Schwertfeger has been named as my successor as Chief
Executive Officer and Chairman of Nuveen. He is currently Executive Vice
President of Nuveen and President of the Nuveen Funds. I am very enthusiastic
about and confident in his abilities and the abilities of the entire Nuveen
management team.
The transition in management has been carefully planned so that it will have
no effect on fund dividends, portfolio management, or company values. Our
management team is committed to continuing Nuveen's successful tradition of
value investing and prudent management, helping our shareholders meet their
needs for tax-free investment income with a full range of investment choices.
Our commitment to the municipal marketplace remains as strong as ever. Our
focus will continue to be on building shareholder value, providing
research-oriented management, and maintaining our leadership role in the
municipal bond market. With this focus, we anticipate many more years of
progress and accomplishment for our shareholders and our firm.
As this will be the last letter for these funds in which I have the
opportunity to address you, I'd like to take this occasion to thank you for
selecting Nuveen municipal bond fund investments.
Sincerely,
Richard J. Franke
Chairman of the Board
March 15, 1996
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
the bond market recovery and the outlook for 1996.
How did the investment climate over the past year affect municipal bonds?
In 1995, the combination of slow economic growth and low inflation created the
ideal environment for the bond markets, which responded with a sustained
rally. Citing the lack of significant inflation, the Federal Reserve Board
moved to cut interest rates in July and December 1995 and again at the end of
January 1996. This succession of rate cuts acted to bring down long-term
municipal bond yields by 127 basis points from their position at the beginning
of 1995. The municipal bond rebound was smaller than that of taxable bonds due
to the high-profile discussion of major tax reform legislation--and concern
about the potential impact of this legislation on tax-free investments. Yet,
in 1995, most Nuveen exchange-traded funds enjoyed taxable-equivalent total
returns of 20% or better.
Why do many of the funds continue to trade at a discount despite the recovery?
It may be helpful to remember that each share has two prices: the net asset
value (NAV), which represents the underlying value of the bonds, and the share
price, which is the price on the stock exchange. As the market turned around
in 1995, net asset values appreciated more quickly than share prices. This is
typical of a market that may take time to recognize underlying value balanced
against the various factors that affect share price, such as interest rates,
inflation forecasts, the relative strength of the stock market, and
legislative and tax outlooks. Most of the discounts have narrowed considerably
in recent months and some funds are trading at premiums.
The net asset values for the funds covered in this report remain quite
strong. For long-term investors, in fact, the current period may present a
buying opportunity, as some shares can be purchased at discount prices at a
time when the bond market is generally strong.
<PAGE>
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
What does Nuveen see as the impact of the flat tax proposals on the municipal
market?
Because of the implications for tax-free investments such as municipal bonds
and bond funds, we have been closely monitoring the various flat tax proposals
currently being debated in Congress. While election-year politics have focused
a spotlight on the debate, it is important to note that none of the proposals
currently under discussion has gained a strong consensus. In addition,
implementation of any measure that manages to pass both houses is two
years--or more--away. However, the high-profile discussion--and the attendant
concern about the potential impact of tax reform on tax-free investments--did
affect the market for municipal bonds in 1995, causing these bonds to
underperform their taxable counterparts for the year.
Given the uncertainty surrounding this issue and its eventual outcome,
Nuveen has determined that it is inadvisable to manage our funds toward one
specific outcome. Instead, we will continue to follow our value investing
philosophy as the optimal way to meet our investors' objectives. We believe
that this approach offers investors greater price stability in the event of a
volatile market. Once the tax issue is resolved, we're confident that
municipal bonds--because of their high credit quality and attractive
yields--will continue to hold a strategic place in the prudent investor's
portfolio. We will continue to monitor developments in the tax debate as well
as changes in other economic and political conditions while keeping our focus
on achieving the objectives of your fund.
What is Nuveen's outlook for 1996?
Although inflation currently remains low and economic growth is moderating, we
continue to watch these factors for potential changes and impact on the bond
market. During this election year, we are also closely monitoring any changes
in economic policy that may impact the municipal market. With the supply of
municipal bonds down from past years, we see the potential for the value of
outstanding bonds increasing in coming years, as a growing number of
individual investors seek to diversify their portfolios and increase their
tax-free income.
<PAGE>
What does Nuveen mean by "value investing"? Where are Nuveen analysts finding
value today?
At Nuveen, we define value investing as a disciplined approach to security
selection and portfolio construction designed to deliver above-market
performance by emphasizing securities that offer good intrinsic value but that
are underpriced or undervalued by the market. This approach was rewarded over
the past year, as we saw many of our portfolio holdings upgraded by the rating
agencies, exhibiting that our Research Department's judgments about credit
quality were on target.
As we search for value in the market today, we are constantly on the lookout
for attractive issues. Our analysts continuously assess investment potential
across the entire spectrum of geographical and sector opportunities
nationwide. Currently, we favor revenue bonds for essential services (such as
those issued by water and sewer facilities and utilities, especially public
power authorities providing electricity at competitive rates) over general
obligation bonds issued by counties and cities, which have suffered strained
financial backing as the result of spending cuts at the state and federal
levels. We also moved to protect current income by investing more of our
portfolio in non-callable bonds when possible. These bonds cannot be redeemed
before maturity so that their yield is assured for the long term in the event
of falling interest rates. As is our policy, we continue to invest only in
investment-grade quality securities.
<PAGE>
<TABLE>
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC.
NAZ
In keeping with the Fund's objective of providing dependable tax-free income,
shareholders enjoyed 12 months of stable dividends. This dividend has remained
constant for the past 27 months.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
2/9/95 $0.0650
3/9/95 $0.0650
4/7/95 $0.0650
5/9/95 $0.0650
6/13/95 $0.0650
7/12/95 $0.0650
8/11/95 $0.0650
9/13/95 $0.0650
10/11/95 $0.0650
11/13/95 $0.0650
12/13/95 $0.0650
1/10/96 $0.0650
<CAPTION>
FUND HIGHLIGHTS 1/31/96
<S> <C>
Yield 5.47%
Taxable-equivalent yield 9.04%
Annual total return on NAV 20.74%
Taxable-equivalent total return 24.67%
Share price $14.25
NAV $15.21
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC.
NUM
While the dividend income remained attractive compared with other fixed income
alternatives, the Fund adjusted its monthly dividend in June, seeking a level
in line with its earnings.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
2/9/95 $0.0825
3/9/95 $0.0825
4/7/95 $0.0825
5/9/95 $0.0825
6/13/95 $0.0795
7/12/95 $0.0795
8/11/95 $0.0795
9/13/95 $0.0795
10/11/95 $0.0795
11/13/95 $0.0795
12/13/95 $0.0795 $0.0681
1/10/96 $0.0795
<CAPTION>
FUND HIGHLIGHTS 1/31/96
<S> <C>
Yield 5.92%
Taxable-equivalent yield 9.87%
Annual total return on NAV 17.48%
Taxable-equivalent total return 22.07%
Share price $16.125
NAV $15.89
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC.
NMP
While the dividend income remained attractive compared with other fixed income
alternatives, the Fund adjusted its monthly dividend in May, seeking a level
in line with its earnings.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
2/9/95 $0.0675
3/9/95 $0.0675
4/7/95 $0.0675
5/9/95 $0.0645
6/13/95 $0.0645
7/12/95 $0.0645
8/11/95 $0.0645
9/13/95 $0.0645
10/11/95 $0.0645
11/13/95 $0.0645
12/13/95 $0.0645
1/10/96 $0.0645
<CAPTION>
FUND HIGHLIGHTS 1/31/96
<S> <C>
Yield 5.84%
Taxable-equivalent yield 9.73%
Annual total return on NAV 22.10%
Taxable-equivalent total return 26.28%
Share price $13.25
NAV $14.80
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC.
NUO
Shareholders benefited from a dividend increase in November, made possible by
the low short-term rates paid on the Fund's preferred shares.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
2/9/95 $0.0775
3/9/95 $0.0775
4/7/95 $0.0775
5/9/95 $0.0775
6/13/95 $0.0775
7/12/95 $0.0775
8/11/95 $0.0775
9/13/95 $0.0775
10/11/95 $0.0775
11/13/95 $0.0800
12/13/95 $0.0800
1/10/96 $0.0800
<CAPTION>
FUND HIGHLIGHTS 1/31/96
<S> <C>
Yield 5.86%
Taxable-equivalent yield 9.93%
Annual total return on NAV 19.09%
Taxable-equivalent total return 23.68%
Share price $16.375
NAV $16.35
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND
NTX
In keeping with the Fund's objective of providing dependable tax-free income,
shareholders enjoyed 12 months of stable dividends. This dividend has remained
constant for the past 27 months.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
2/9/95 $0.0800
3/9/95 $0.0800
4/7/95 $0.0800
5/9/95 $0.0800
6/13/95 $0.0800
7/12/95 $0.0800
8/11/95 $0.0800
9/13/95 $0.0800
10/11/95 $0.0800
11/13/95 $0.0800
12/13/95 $0.0800 $0.0366
1/9/96 $0.0800
<CAPTION>
FUND HIGHLIGHTS 1/31/96
<S> <C>
Yield 6.35%
Taxable-equivalent yield 9.92%
Annual total return on NAV 17.90%
Taxable-equivalent total return 21.82%
Share price $15.125
NAV $15.66
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, January 31, 1996) divided by its closing price per share
on that date. Taxable equivalent yield The return an investor subject to a
given federal and state income tax rate would need to obtain from a fully
taxable investment to equal the fund's stated annualized yield on share price.
In this report, these tax rates are assumed to be 39.5% for AZ, 40% for MI,
41% for OH, and 36% for TX, based on incomes of $121,300-$263,750 for
investors filing singly, $147,700-$263,750 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabili-ties. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by the total number of shares
outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
<PAGE>
Taxable equivalent total return
The total return that would be generated by a taxable income fund that
produced the same amount of after-tax income as the portfolio, assuming a
specified tax rate.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value, both up and down, are also magnified by
leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 6-month period ended January 31, 1996. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
SHAREHOLDER MEETING REPORT
On October 19, 1995, the following Nuveen Exchange-Traded Funds held an Annual
Meeting of Shareholders. At the meeting, shareholders voted to elect directors
of the Funds and to ratify selection of Ernst & Young L.L.P. as the auditors
for the Funds. The directors elected at the meeting include: Lawrence H. Brown,
Richard J. Franke, Anne E. Impellizzeri, and Peter R. Sawers.
<CAPTION>
NAZ NUM NMP NUO NTX
<S> <C> <C> <C> <C> <C>
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Lawrence H. Brown
For 4,052,647 9,959,574 6,935,680 8,127,092 8,524,705
Abstain 41,892 147,037 130,975 112,639 102,033
---------- ---------- ---------- ---------- ----------
Total 4,094,539 10,106,611 7,066,655 8,239,731 8,626,738
========== ========== ========== ========== ==========
Richard J. Franke
For 4,053,647 9,965,690 6,937,982 8,127,647 8,531,955
Abstain 40,892 140,921 128,673 112,084 94,783
---------- ---------- ---------- ---------- ----------
Total 4,094,539 10,106,611 7,066,655 8,239,731 8,626,738
========== ========== ========== ========== ==========
Anne E. Impellizzeri
For 4,054,647 9,965,691 6,943,682 8,126,005 8,523,405
Abstain 39,892 140,920 122,973 113,726 103,333
---------- ---------- ---------- ---------- ----------
Total 4,094,539 10,106,611 7,066,655 8,239,731 8,626,738
========== ========== ========== ========== ==========
Peter R. Sawers
For 4,054,647 9,956,469 6,941,282 8,127,999 8,527,005
Abstain 39,892 150,142 125,373 111,732 99,733
---------- ---------- ---------- ---------- ----------
Total 4,094,539 10,106,611 7,066,655 8,239,731 8,626,738
========== ========== ========== ========== ==========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 4,032,153 9,904,939 6,895,821 8,062,580 8,503,558
Against 20,453 36,648 40,684 37,685 29,032
Abstain 41,933 165,024 130,150 139,466 94,148
---------- ---------- ---------- ---------- ----------
Total 4,094,539 10,106,611 7,066,655 8,239,731 8,626,738
========== ========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC. (NAZ)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$2,150,000 Arizona Municipal Financing Program, Certificates
of Participation, 6.000%, 8/01/17 8/02 at 101 Aaa $ 2,259,113
1,500,000 Arizona State Transportation Board, 6.000%, 7/01/10
(Pre-refunded to 7/01/00) 7/00 at 101 Aaa 1,634,160
1,800,000 Arizona State University, Research Park,
5.125%, 7/01/14 7/02 at 100 Aaa 1,727,406
500,000 Arizona State University, 5.750%, 7/01/12 7/02 at 101 AA 514,705
1,750,000 Arizona Student Loan Acquisition Authority,
Alternative Minimum Tax, 6.600%, 5/01/10 5/04 at 102 Aa 1,813,718
500,000 Arizona Wastewater Management Authority,
5.750%, 7/01/15 7/05 at 102 Aaa 522,770
Bullhead City Special Assessment:
910,000 6.100%, 1/01/08 1/03 at 103 Baa 969,159
970,000 6.100%, 1/01/09 1/03 at 103 Baa 1,024,611
2,000,000 Central Arizona Conservation District,
5.500%, 11/01/10 No Opt. Call AA- 2,112,940
1,600,000 Lake Havasu Municipal Property Corporation,
6.000%, 6/01/08 6/02 at 101 Aaa 1,731,456
1,400,000 Maricopa Rural Road Improvement District,
7.000%, 7/01/07 7/99 at 101 N/R 1,486,688
1,500,000 Maricopa County Industrial Development Authority
(Catholic Healthcare West), 5.750%, 7/01/11 7/02 at 102 Aaa 1,559,205
3,500,000 Maricopa County Industrial Development Authority
(Samaritan Health Services), 7.000%, 12/01/16 No Opt. Call Aaa 4,354,700
600,000 Maricopa County Industrial Development Authority
(Baptist Hospital), 5.500%, 9/01/16 9/05 at 101 Aaa 603,804
Maricopa County School District No. 28, General
Obligation:
3,195,000 6.000%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 100 Aaa 3,517,312
605,000 6.000%, 7/01/12 7/02 at 100 Aaa 638,680
2,500,000 Maricopa County Unified School District No. 69,
General Obligation, 5.875%, 7/01/12 7/03 at 102 Aaa 2,652,925
1,400,000 Maricopa County Unified School District No. 80,
General Obligation, 5.950%, 7/01/10 7/03 at 101 Aaa 1,495,970
Mohave County Industrial Development Authority
(Medical Environments Inc. and Phoenix Baptist
Hospital):
5,000,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 5,829,700
1,000,000 7.000%, 7/01/16 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 1,181,640
2,000,000 Mohave County Industrial Development Authority
(Citizens Utilities Company), Alternative Minimum
Tax, 6.600%, 5/01/29 11/03 at 101 AAA 2,115,380
2,000,000 Mohave County Hospital District No. 1, General
Obligation, 6.500%, 6/01/15 6/02 at 101 Aaa 2,175,040
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Navajo County Pollution Control Corporation
(Arizona Public Service Company), 5.875%, 8/15/28 8/03 at 102 Baa1 $ 993,510
2,500,000 Phoenix General Obligation, 6.375%, 7/01/13 7/02 at 102 Aa1 2,705,050
Phoenix Civic Improvement Corporation,
Wastewater System:
2,500,000 5.000%, 7/01/10 7/04 at 102 A1 2,445,900
4,700,000 6.125%, 7/01/23 (Pre-refunded to 7/01/03) 7/03 at 102 AAA 5,311,329
1,475,000 4.750%, 7/01/23 7/04 at 102 A1 1,329,831
2,150,000 Phoenix Civic Plaza Building Corporation,
6.000%, 7/01/14 7/05 at 101 AA+ 2,287,772
2,720,000 Phoenix Water System, 5.500%, 7/01/22 7/03 at 101 AA 2,699,274
470,000 Phoenix Industrial Development Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.150%, 6/01/08 6/05 at 102 AAA 474,498
2,400,000 Pima County Industrial Development Authority
(Tucson Electric), 7.250%, 7/15/10 1/02 at 103 Aaa 2,722,752
1,510,000 Pima County, Metropolitan Domestic Water
Improvement District, 6.200%, 1/01/12 1/03 at 101 Aaa 1,632,416
460,000 Pima County Single Family Mortgage,
6.500%, 2/01/17 8/05 at 102 A 474,283
Salt River Project, Agricultural Improvement and
Power District:
3,400,000 5.000%, 1/01/16 1/04 at 102 Aa 3,277,328
1,800,000 5.750%, 1/01/19 1/02 at 100 Aa 1,816,488
2,000,000 Tempe Union High School District No. 213, General
Obligation, 6.000%, 7/01/12 7/04 at 101 Aaa 2,145,580
3,000,000 Tucson General Obligation, 6.250%, 7/01/18 7/04 at 101 Aaa 3,269,310
5,000,000 Tucson Airport Authority, 5.700%, 6/01/13 6/03 at 102 Aaa 5,142,400
725,000 Tucson Certificates of Participation, 6.375%,
7/01/09 7/04 at 100 AA 797,210
2,000,000 Tucson Junior Lien, Street and Highway,
5.500%, 7/01/12 7/03 at 102 Aaa 2,055,380
2,000,000 Tucson Senior Lien, Street and Highway,
5.500%, 7/01/09 7/03 at 102 A1 2,065,940
3,500,000 Tucson Water System, 5.750%, 7/01/18 7/02 at 102 A1 3,573,500
University of Arizona, Certificates of Participation:
100,000 6.500%, 7/15/12 7/02 at 102 A+ 109,320
650,000 6.000%, 7/15/23 7/04 at 102 Aaa 686,412
2,000,000 University Medical Center Corporation(Tucson),
6.250%, 7/01/16 7/02 at 102 Aaa 2,159,660
1,000,000 University of Arizona, 6.250%, 6/01/11 6/02 at 102 AA 1,076,880
1,000,000 Puerto Rico General Obligation, 5.250%, 7/01/18 7/03 at 101 1/2 A 956,190
$88,440,000 Total Investments - (cost $87,065,318) - 99.0% 94,129,295
===========
Other Assets Less Liabilities - 1.0% 976,743
Net Assets - 100% $95,106,038
===========
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 26 $59,598,998 63%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 10 19,101,365 20
PORTFOLIO OF A+ A1 5 9,524,491 10
INVESTMENTS: A, A- A, A2, A3 2 1,430,473 2
BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 3 2,987,280 3
Non-rated Non-rated 1 1,486,688 2
TOTAL 47 $94,129,295 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. (NUM)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Michigan Building Authority:
$ 4,800,000 6.250%, 10/01/20 10/01 at 102 AA- $ 5,091,552
4,255,000 6.800%, 10/01/21 10/01 at 102 AA- 4,643,184
4,000,000 Michigan Comprehensive Transportation,
5.750%, 5/15/11 5/02 at 100 AA- 4,080,920
Michigan Higher Education, Student Loan Authority,
Alternative Minimum Tax:
1,000,000 6.800%, 10/01/07 10/02 at 102 A 1,050,240
1,250,000 6.800%, 10/01/08 10/02 at 102 A 1,308,513
990,000 6.800%, 10/01/09 10/02 at 102 A 1,036,342
1,450,000 Michigan Hospital Finance Authority (McLaren
Obligated Group), 7.500%, 9/15/21
(Pre-refunded to 9/15/01) 9/01 at 102 Aaa 1,715,887
8,800,000 Michigan Hospital Finance Authority (Mercy
Mt. Clemens), 6.000%, 5/15/17 5/01 at 100 Aa 8,952,328
Michigan Hospital Finance Authority (Daughters
of Charity):
2,200,000 5.250%, 11/01/15 11/05 at 101 Aa 2,156,110
9,355,000 7.000%, 11/01/21 11/01 at 102 Aa 10,210,983
Michigan Housing Development Authority, Single
Family Mortgage:
4,740,000 6.950%, 12/01/20 12/01 at 102 AA 4,999,468
2,440,000 6.875%, 6/01/23 6/02 at 102 AA 2,568,344
5,250,000 Michigan Housing Development Authority, Limited
Obligation Revenue (Parkway Meadows Project),
6.850%, 10/15/18 10/02 at 103 Aaa 5,574,083
9,750,000 Michigan Housing Development Authority, Rental
Housing, 7.100%, 4/01/21 1/02 at 102 A+ 10,341,825
1,860,000 Michigan Housing Development Authority, Rental
Housing, Alternative Minimum Tax,
7.150%, 4/01/10 1/02 at 102 A+ 1,983,467
Michigan Municipal Bond Authority:
2,000,000 6.650%, 5/01/12 5/02 at 102 A 2,124,120
3,100,000 6.600%, 10/01/18 10/02 at 102 Aa 3,355,471
5,750,000 Michigan Public Power Agency (Belle River Project),
5.250%, 1/01/18 1/03 at 102 AA- 5,571,463
2,390,000 Michigan South Central Power Agency,
6.750%, 11/01/10 11/01 at 102 A 2,606,176
Michigan State Hospital Finance Authority (The
Detroit Medical Center):
5,090,000 8.125%, 8/15/08 (Pre-refunded to 8/15/98) 8/98 at 102 Aaa 5,701,156
410,000 8.125%, 8/15/08 8/98 at 102 A 448,807
3,035,000 Michigan State Hospital Finance Authority
(Mid-Michigan Obligated Group),
6.900%, 12/01/24 12/02 at 102 A 3,231,607
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Michigan State Trunk Line:
$ 7,200,000 7.000%, 8/15/17 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa $ 8,064,216
5,000,000 5.500%, 10/01/21 10/02 at 100 AA- 4,935,300
Michigan Strategic Fund (The Detroit Edison
Company):
4,330,000 6.950%, 9/01/21 9/01 at 102 Aaa 4,812,492
7,600,000 6.875%, 12/01/21 12/01 at 102 Aaa 8,502,500
1,500,000 Ann Arbor Water Supply System, 5.500%, 2/01/13 2/03 at 101 1/2 Aaa 1,524,795
1,200,000 Berkley School District, General Obligation,
6.000%, 1/01/19 1/05 at 101 Aaa 1,265,664
Carrollton Public School District, General
Obligation:
1,000,000 5.200%, 5/01/20 5/05 at 101 Aa 983,000
1,005,000 5.200%, 5/01/25 5/05 at 102 Aa 986,397
2,450,000 Dearborn Economic Development Corporation
(Oakwood Obligated Group), 5.750%, 11/15/13 11/05 at 102 Aaa 2,531,389
7,000,000 Detroit Economic Development Corporation,
Resource Recovery, Alternative Minimum Tax,
6.875%, 5/01/09 5/01 at 102 Aaa 7,756,490
685,000 Detroit Sewage Disposal System, 6.900%, 12/15/99 No Opt. Call Aaa 723,593
6,500,000 Detroit Water Supply System, 5.000%, 7/01/23 7/04 at 102 Aaa 6,205,940
1,600,000 Gaylord Community Schools, General Obligation,
6.600%, 5/01/21 (Pre-refunded to 5/01/02) 5/02 at 102 Aa 1,826,112
3,075,000 Goodrich Area Schools, General Obligation,
5.875%, 5/01/24 5/05 at 102 Aaa 3,208,517
2,000,000 Grand Ledge Public Schools District, General
Obligation, 5.375%, 5/01/24 5/05 at 102 Aaa 1,985,460
3,000,000 Grand Rapids Community College District, Limited
Tax, General Obligation, 5.000%, 5/01/21 5/03 at 102 AA- 2,877,270
Greenville Public Schools, General Obligation:
1,325,000 5.750%, 5/01/14 5/04 at 101 Aaa 1,383,300
1,350,000 5.750%, 5/01/24 5/04 at 101 Aaa 1,385,087
1,250,000 Gull Lake Community Schools, 6.800%, 5/01/21
(Pre-refunded to 5/01/01) 5/01 at 102 Aaa 1,426,150
2,000,000 Hart Public Schools, General Obligation,
5.800%, 5/01/16 5/05 at 101 Aaa 2,081,160
3,100,000 Hemlock Public Schools, General Obligation,
6.750%, 5/01/21 (Pre-refunded to 5/01/02) 5/02 at 102 AA 3,563,326
4,225,000 Lake Orion Community School District, General
Obligation, 5.500%, 5/01/20 5/05 at 101 Aaa 4,221,789
1,000,000 Marquette Area Public Schools, General Obligation,
6.700%, 5/01/21 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 1,136,240
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 Mason Public School District, General Obligation,
5.400%, 5/01/15 5/05 at 101 1/2 Aaa $ 1,996,260
6,400,000 Mattawan Consolidated School District,
6.300%, 5/01/17 5/02 at 102 AA 6,750,400
7,000,000 Monroe County Economic Development Corporation
Pollution Control (The Detroit Edison Company),
Alternative Minimum Tax, 6.875%, 9/01/22 9/02 at 102 Aaa 7,723,310
North Branch Area Schools, General Obligation:
2,150,000 6.600%, 5/01/17 (Pre-refunded to 5/01/02) 5/02 at 102 AA 2,453,838
1,475,000 5.375%, 5/01/21 5/03 at 101 1/2 Aaa 1,456,799
4,600,000 Novi Community Schools, General Obligation,
5.300%, 5/01/21 5/04 at 101 Aaa 4,545,950
2,000,000 Oakland University, 5.750%, 5/15/15 5/05 at 102 Aaa 2,064,380
2,000,000 Oxford Area Community School District, General
Obligation, 5.500%, 5/01/21 5/06 at 101 Aaa 2,008,980
1,500,000 Perry Public Schools, General Obligation,
6.375%, 5/01/22 (Pre-refunded to 5/01/02) 5/02 at 101 1/2 Aaa 1,692,285
4,650,000 Plymouth-Canton Community School District,
6.800%, 5/01/11 (Pre-refunded to 5/01/01) 5/01 at 101 Aa 5,255,988
6,385,000 Royal Oak Hospital Finance Authority (William
Beaumont Hospital), 6.750%, 1/01/20 1/01 at 102 Aa 6,846,443
4,845,000 Saginaw-Midland Municipal Water Supply
Corporation, 6.875%, 9/01/16 9/04 at 102 A 5,375,866
University of Michigan, Medical Service Plan:
2,195,000 0.000%, 12/01/10 No Opt. Call Aa 995,805
9,250,000 6.500%, 12/01/21 12/01 at 102 AA- 9,982,230
4,200,000 Warren Consolidated Schools, 6.700%, 5/01/21
(Pre-refunded to 5/01/01) 5/01 at 102 Aa 4,750,913
5,280,000 Warren Economic Development Corporation (Autumn
Woods Project-GNMA), 6.900%, 12/20/22 3/02 at 101 Aaa 5,590,570
2,505,000 Wayne County (Detroit Metropolitan Airport),
Alternative Minimum Tax, 6.750%, 12/01/21 12/01 at 102 Aaa 2,731,802
1,250,000 Wayne County (Detroit Metropolitan Airport),
6.000%, 12/01/20 12/00 at 100 Aaa 1,286,500
1,500,000 Western Michigan University, 5.500%, 7/15/16 7/03 at 102 Aaa 1,502,700
Western Township Utilities Authority Sewage
Disposal System:
1,500,000 6.750%, 1/01/15 1/02 at 100 Aaa 1,663,274
1,895,000 8.300%, 1/01/19 1/99 at 102 BBB+ 2,131,836
6,250,000 6.500%, 1/01/19 1/02 at 100 Aaa 6,683,500
5,000,000 Wyandotte Electric System, 6.250%, 10/01/17 10/02 at 102 Aaa 5,373,450
1,000,000 Puerto Rico Electric Power Authority,
5.500%, 7/01/25 7/05 at 100 A- 980,660
$240,140,000 Total Investments - (cost $232,669,536) - 98.8% 253,981,972
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 200,000 University of Michigan Hospital, Adjustable Rate
==========
Demand Bonds, 3.500%, 12/01/27+ VMIG-1 $ 200,000
Other Assets Less Liabilities - 1.1% 2,762,034
Net Assets - 100% $256,944,006
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 34 $117,525,668 46%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 23 103,836,845 41
PORTFOLIO OF A+ A1 2 12,325,292 5
INVESTMENTS A, A- A, A2, A3 9 18,162,331 7
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 2,131,836 1
TEMPORARY
INVESTMENTS):
TOTAL 69 $253,981,972 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. (NMP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,750,000 Michigan Building Authority, 6.250%, 10/01/20 10/01 at 102 AA- $ 3,977,775
Michigan Comprehensive Transportation:
1,090,000 5.750%, 5/15/11 5/02 at 100 AA- 1,112,051
3,275,000 5.750%, 5/15/12 5/02 at 100 AA- 3,332,509
1,250,000 Michigan Higher Education Student Loan Authority,
Alternative Minimum Tax, 6.700%, 10/01/05 10/02 at 102 A 1,341,350
2,000,000 Michigan Hospital Finance Authority (Otsego
Memorial Hospital Gaylord), 6.250%, 1/01/20 1/05 at 102 AA 2,079,300
5,250,000 Michigan Housing Development Authority, Single
Family Mortgage, 6.800%, 12/01/16 6/05 at 102 AA+ 5,502,683
2,400,000 Michigan Housing Development Authority (Walled
Lake Villa Project), 6.000%, 4/15/18 4/04 at 103 Aaa 2,431,008
Michigan Housing Development Authority:
3,500,000 5.875%, 10/01/17 4/03 at 102 Aaa 3,545,430
1,500,000 5.625%, 10/15/18 10/03 at 103 Aaa 1,468,800
Michigan Housing Development Authority, Rental
Housing:
4,000,000 6.500%, 4/01/06 10/02 at 102 A+ 4,241,320
4,300,000 6.600%, 4/01/12 10/02 at 102 A+ 4,483,739
1,950,000 Michigan Municipal Bond Authority, State
Revolving Fund, 7.000%, 10/01/03 No Opt. Call Aa 2,273,310
3,750,000 Michigan Public Power Agency (Belle River Project),
5.250%, 1/01/18 1/03 at 102 AA- 3,633,563
1,775,000 Michigan South Central Power Agency,
5.700%, 11/01/04 No Opt. Call Aaa 1,932,212
700,000 Michigan State Hospital Finance Authority
(Daughters of Charity Health System),
7.000%, 11/01/21 11/01 at 102 Aa 764,050
4,000,000 Michigan State Hospital Finance Authority (Henry
Ford Health System), 5.750%, 9/01/17 9/02 at 102 Aa 4,022,640
3,000,000 Michigan State Hospital Finance Authority (St. John
Hospital), 6.000%, 5/15/13 5/03 at 102 Aaa 3,162,330
Michigan State Hospital Finance Authority (Detroit
Medical Center):
1,500,000 5.000%, 8/15/02 No Opt. Call A 1,485,975
3,000,000 6.250%, 8/15/13 8/03 at 102 A 3,127,890
3,200,000 6.500%, 8/15/18 8/03 at 102 A 3,382,656
4,000,000 Michigan State Hospital Finance Authority
(Oakwood Hospital), 5.500%, 11/01/13 11/03 at 102 Aaa 4,035,680
Michigan State Trunk Line:
1,750,000 5.700%, 11/15/15 11/04 at 102 AA- 1,807,243
2,500,000 7.000%, 8/15/17 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa 2,800,075
3,595,000 Michigan State University, 5.500%, 8/15/22 8/02 at 100 AA- 3,547,977
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,050,000 Michigan Strategic Fund (Waste Management, Inc.),
Alternative Minimum Tax, 6.625%, 12/01/12 12/02 at 102 A1 $ 3,234,678
8,500,000 Michigan Strategic Fund (Consumers Power),
5.800%, 6/15/10 6/03 at 102 Aaa 8,987,050
1,000,000 Michigan Strategic Fund (WMX Technologies),
Alternative Minimum Tax, 6.000%, 12/01/13 12/03 at 102 A1 1,024,350
1,500,000 Ann Arbor Water Supply System, 5.500%, 2/01/13
2/03 at 101 1/2 Aaa 1,524,795
3,000,000 Clarkston Community Schools, General Obligation,
5.900%, 5/01/16 5/03 at 102 AA 3,069,420
2,500,000 Detroit City School District, General Obligation,
6.250%, 5/01/12 5/01 at 102 AA 2,634,275
6,500,000 Detroit Convention Facility (Cobo Hall),
5.250%, 9/30/12 9/03 at 102 A 6,296,095
4,550,000 Detroit Sewage Disposal System, 5.700%, 7/01/13 7/03 at 102 Aaa 4,691,141
4,500,000 Detroit Water Supply System, 4.750%, 7/01/19 7/04 at 102 Aaa 4,167,180
3,000,000 Dexter Community Schools, General Obligation,
5.000%, 5/01/17 5/03 at 102 AA 2,836,470
2,000,000 Ferris State University, 6.250%, 10/01/19 10/03 at 102 Aaa 2,158,580
6,750,000 Grand Haven Electric System, 5.250%, 7/01/16 7/03 at 102 Aaa 6,629,445
1,000,000 Kent Hospital Finance Authority (Butterworth
Hospital), 5.100%, 1/15/07 No Opt. Call A1 1,001,220
2,000,000 Lansing Board of Water and Light, 4.900%, 7/01/11 7/01 at 100 Aa 1,932,080
Monroe County Pollution Control (Detroit Edison),
Alternative Minimum Tax:
6,000,000 6.350%, 12/01/04 No Opt. Call Aaa 6,763,980
2,500,000 6.550%, 6/01/24 6/03 at 102 Aaa 2,706,575
1,500,000 6.550%, 9/01/24 9/03 at 103 Aaa 1,641,360
Mount Clemens Housing Corporation, Multi-Family:
1,000,000 6.600%, 6/01/13 6/03 at 102 AAA 1,053,990
1,500,000 6.600%, 6/01/22 6/03 at 102 AAA 1,554,764
1,130,000 Oakland University, 5.750%, 5/15/15 5/05 at 102 Aaa 1,166,375
1,000,000 Reeths-Puffer Schools, General Obligation,
5.750%, 5/01/15 5/05 at 101 Aaa 1,029,550
3,615,000 Saginaw-Midland Municipal Water Supply
Corporation, Limited Tax, 5.250%, 9/01/16 9/02 at 101 1/2 A 3,541,361
University of Michigan Hospital:
1,000,000 5.750%, 12/01/12 12/02 at 102 Aa 1,009,210
3,000,000 5.500%, 12/01/21 12/02 at 102 Aa 2,952,990
2,650,000 6.375%, 12/01/24 12/00 at 100 Aa 2,733,979
Wayne County (Detroit Metropolitan Airport),
Alternative Minimum Tax:
1,000,000 4.750%, 12/01/02 No Opt. Call Aaa 1,016,860
1,000,000 4.800%, 12/01/03 No Opt. Call Aaa 1,015,600
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Wayne County (Detroit Metropolitan Wayne County
Airport), 8.000%, 12/01/14 12/96 at 102 Aaa $ 1,052,710
3,750,000 Western Michigan University, 5.500%, 7/15/16 7/03 at 102 Aaa 3,756,750
1,000,000 Western Township Utilities Authority, Sewage
Disposal System, 6.500%, 1/01/10 1/02 at 100 AAA 1,083,670
5,625,000 Puerto Rico General Obligation, 5.375%, 7/01/06 No Opt. Call Aaa 6,023,250
1,000,000 Puerto Rico Commonwealth, General Obligation,
5.750%, 7/01/24 7/05 at 101 1/2 Aaa 1,037,690
5,750,000 Puerto Rico Public Buildings Authority,
5.750%, 7/01/15 7/03 at 101 1/2 A 5,776,622
1,000,000 Puerto Rico Ports Authority, Special Facilities
(American Airlines, Inc. Project),
6.300%, 6/01/23 6/03 at 102 Baa3 1,037,010
$162,905,000 Total Investments - (cost $158,974,102) - 98.8% 167,632,641
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 400,000 University of Michigan Hospital, Adjustable Rate
============
Demand Bonds, 3.500%, 12/01/27+ VMIG-1 400,000
Other Assets Less Liabilities - 1.0% 1,577,414
Net Assets - 100% $169,610,055
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 27 $ 78,436,850 47%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 18 49,221,525 29
PORTFOLIO OF A+ A1 5 13,985,307 8
INVESTMENTS A, A- A, A2, A3 7 24,951,949 15
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 1,037,010 1
TEMPORARY
INVESTMENTS):
TOTAL 58 $167,632,641 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC. (NUO)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,250,000 Ohio Air Quality Development Authority (Ashland
Oil, Inc.), 6.850%, 4/01/10 4/01 at 102 Baa1 $ 2,362,500
4,000,000 Ohio Air Quality Development Authority, Pollution
Control (Cleveland Electric Illuminating Company),
8.000%, 12/01/13 6/02 at 103 Aaa 4,838,120
Ohio Air Quality Development Authority (JMG
Funding Limited Partnership Project), Alternative
Minimum Tax:
2,000,000 6.375%, 1/01/29 10/04 at 102 Aaa 2,197,340
4,000,000 6.375%, 4/01/29 10/04 at 102 Aaa 4,394,680
Ohio Building Authority (Adult Correction
Building Fund):
1,250,000 6.300%, 10/01/11 10/02 at 102 A+ 1,342,450
3,000,000 6.125%, 10/01/12 10/03 at 102 A+ 3,193,260
1,000,000 Ohio Building Authority (Juvenile Correction
Building Fund), 6.000%, 10/01/12 10/02 at 102 A+ 1,049,120
3,000,000 Ohio Department of Transportation, Certificates of
Participation (Rickenbacker Port Authority
Improvements), 6.125%, 4/15/15 (WI) 10/97 at 105 A+ 3,008,820
1,000,000 Ohio General Obligation, 0.000%, 9/01/99 No Opt. Call Aa 864,950
1,600,000 Ohio Higher Educational Facility Commission (Case
Western Reserve University), 6.000%, 10/01/22 10/02 at 102 Aa 1,669,552
Ohio Higher Educational Facility Commission
(John Carroll University):
750,000 5.600%, 10/01/13 10/03 at 102 A 752,438
1,350,000 5.300%, 11/15/14 11/03 at 102 A 1,330,155
500,000 Ohio Higher Educational Facility Commission
(Kenyon College), 5.375%, 12/01/16 12/03 at 102 A+ 488,930
2,500,000 Ohio Higher Educational Facility Commission
(Oberlin College), 5.375%, 10/01/15 10/03 at 102 AA 2,509,150
1,100,000 Ohio Higher Educational Facility Commission
(Ohio Northern University), 5.650%, 5/01/18 5/04 at 102 AAA 1,097,822
Ohio Higher Educational Facility Commission
(University of Dayton):
1,000,000 5.800%, 12/01/14 12/04 at 102 Aaa 1,048,720
2,400,000 6.600%, 12/01/17 12/03 at 102 Aaa 2,694,576
295,000 Ohio Housing Finance Agency, Single Family
Mortgage, 8.250%, 2/01/16 2/98 at 103 AAA 313,317
9,980,000 Ohio Housing Finance Agency, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.650%, 3/01/29 9/99 at 102 AAA 10,438,282
1,500,000 Ohio State Public Facilities Commission, Higher
Education, 5.500%, 12/01/06 12/01 at 102 A+ 1,581,315
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,575,000 Ohio State University General Receipts,
5.875%, 12/01/12 12/02 at 102 AA- $ 1,639,780
4,000,000 Ohio Turnpike Commission, 5.750%, 2/15/24 2/04 at 102 AA- 4,096,400
Ohio Water Development Authority:
660,000 8.000%, 12/01/18 (Pre-refunded to 12/01/00) 12/00 at 100 AAA 708,055
1,000,000 5.900%, 12/01/21 6/05 at 102 Aaa 1,047,510
3,500,000 Ohio Water Development Authority (Pennsylvania
Power Company), Alternative Minimum Tax,
5.900%, 5/01/18 5/03 at 102 Aaa 3,603,915
1,830,000 Akron Bath Copley Joint Township Hospital
District (Summa Health System),
5.500%, 11/15/13 11/03 at 102 A 1,804,325
1,500,000 Akron Waterworks System Mortgage,
6.550%, 3/01/12 3/01 at 102 Aaa 1,645,290
2,000,000 Ashtabula County Industrial Development
(Ashland Oil Inc.), 6.900%, 5/01/10 5/02 at 102 Baa1 2,135,640
2,000,000 Barberton (Barberton Citizens Hospital),
7.250%, 1/01/12 1/02 at 102 A 2,183,980
Berea City School District, General Obligation:
650,000 7.500%, 12/15/06 12/03 at 102 Aaa 786,929
680,000 7.450%, 12/15/07 12/03 at 102 Aaa 821,018
825,000 Bowling Green State University, 6.700%, 6/01/07 6/01 at 102 A 907,657
1,000,000 Buckeye Local School District, General Obligation,
5.625%, 12/01/11 12/03 at 102 Aaa 1,044,850
Butler County (Fort Hamilton-Hughes Memorial
Hospital):
535,000 7.250%, 1/01/01 No Opt. Call Baa 557,770
1,000,000 7.500%, 1/01/10 1/02 at 102 Baa 1,062,600
Cambridge (Guernsey Memorial Hospital):
1,680,000 8.000%, 12/01/06 12/01 at 102 BBB 1,842,523
750,000 8.000%, 12/01/11 12/01 at 102 BBB 815,265
2,000,000 Carroll County Hospital Improvement (Timken
Mercy Medical Center), 7.125%, 12/01/18
(Pre-refunded to 12/01/01) 12/01 at 102 AAA 2,339,060
1,000,000 Clermont County Limited Tax, 5.600%, 9/01/14 9/03 at 102 Aaa 1,007,020
2,675,000 Clermont County (Mercy Health System),
5.875%, 1/01/15 1/03 at 102 Aaa 2,782,080
1,385,000 Clermont County Mortgage (GNMA),
5.950%, 2/20/30 8/03 at 103 Aaa 1,390,332
2,500,000 Clermont County Waterworks System,
6.625%, 12/01/14 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 2,859,625
1,000,000 Cleveland General Obligation, 6.750%, 10/01/11
(Pre-refunded to 10/01/01) 10/01 at 102 Aaa 1,146,960
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,075,000 Cleveland Airport System, Alternative Minimum
Tax, 7.400%, 1/01/20 1/00 at 102 Aaa $ 2,297,938
Cleveland Public Power System:
3,000,000 7.000%, 11/15/17 11/01 at 102 Aaa 3,422,130
2,000,000 7.000%, 11/15/24 11/04 at 102 Aaa 2,331,580
1,000,000 Cleveland State University, 5.500%, 6/01/13 6/03 at 102 Aaa 1,023,740
Cleveland Waterworks Mortgage:
3,000,000 6.500%, 1/01/11 1/02 at 102 Aaa 3,310,890
2,000,000 5.500%, 1/01/13 No Opt. Call Aaa 2,095,640
3,720,000 6.250%, 1/01/16 1/02 at 102 Aaa 3,996,098
1,575,000 6.500%, 1/01/21 (Pre-refunded to 1/01/02) 1/02 at 102 Aaa 1,784,932
1,000,000 5.500%, 1/01/21 No Opt. Call Aaa 1,049,490
2,000,000 Columbus General Obligation, Unlimited Tax,
6.500%, 1/01/10 1/02 at 102 Aaa 2,183,400
1,950,000 Columbus City School District, General Obligation,
Unlimited Tax, 6.650%, 12/01/12 (Pre-refunded
to 12/01/02) 12/02 at 102 Aaa 2,256,677
Columbus Municipal Airport Authority, Alternative
Minimum Tax:
830,000 5.950%, 1/01/08 1/04 at 102 Aaa 885,270
1,000,000 6.000%, 1/01/14 1/04 at 102 Aaa 1,061,720
2,500,000 Columbus Sewerage System, 6.250%, 6/01/08 6/02 at 102 AA- 2,716,325
500,000 Cuyahoga County General Obligation,
5.650%, 5/15/18 No Opt. Call AA 519,550
3,000,000 Cuyahoga County (Meridia Health System),
7.000%, 8/15/23 8/01 at 102 A1 3,223,170
1,500,000 Cuyahoga County (University Hospitals),
6.500%, 1/15/19 1/02 at 102 Aa 1,581,240
1,170,000 Cuyahoga County (Fairview General Hospital),
6.300%, 8/15/15 2/03 at 102 A1 1,207,756
3,200,000 Dayton (James M. Cox International Airport),
5.800%, 12/01/11 12/02 at 101 1/2 Aaa 3,342,400
2,000,000 Dublin City School District, General Obligation,
6.200%, 12/01/19 12/02 at 102 Aaa 2,154,380
1,400,000 Fairfield County (Lancaster-Fairfield Community
Hospital), 5.500%, 6/15/21 6/03 at 102 Aaa 1,395,156
1,300,000 Franklin County Limited Tax, 5.375%, 12/01/20 12/08 at 102 Aaa 1,326,598
2,200,000 Franklin County Convention Facility Authority,
5.850%, 12/01/19 12/02 at 102 Aaa 2,277,220
1,365,000 Franklin County, Hospital Facilities (Ohio
Presbyterian Retirement Services),
6.500%, 7/01/23 7/03 at 102 N/R 1,317,580
1,000,000 Franklin County (Mt. Carmel Health),
7.650%, 6/01/10 (Pre-refunded to 6/01/00) 6/00 at 102 Aaa 1,159,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 Franklin County (Children's Hospital),
6.600%, 5/01/13 11/02 at 102 Aa $ 1,603,020
4,300,000 Franklin County, Hospital Facilities (Riverside
United Methodist Hospital), 5.750%, 5/15/20 5/03 at 102 Aa 4,301,118
1,000,000 Franklin County Multi-Family Housing (Hamilton
Creek Apartments), Alternative Minimum Tax,
5.550%, 7/01/24 1/05 at 103 Aa 951,990
6,200,000 Franklin County (Kensington Place Project),
6.750%, 1/01/34 1/02 at 103 Aa 6,430,454
Franklin County (Online Computer Library Center
Project):
3,600,000 7.500%, 6/01/09 No Opt. Call Aaa 3,957,948
500,000 6.000%, 4/15/13 4/03 at 100 N/R 502,120
3,250,000 Garfield Heights (Marymount Hospital),
6.650%, 11/15/11 11/02 at 102 A 3,452,703
1,250,000 Hamilton Electric System Mortgage,
6.300%, 10/15/25 10/02 at 102 Aaa 1,353,863
1,000,000 Hamilton County Sewer System, 6.700%, 12/01/13
(Pre-refunded to 6/01/01) 6/01 at 102 AAA 1,137,910
500,000 Hudson Local School District, General Obligation,
Unlimited Tax, 5.600%, 12/15/14 12/03 at 102 Aaa 504,720
3,000,000 Kent State University, General Receipts,
6.500%, 5/01/22 5/02 at 102 Aaa 3,298,920
1,000,000 Lakewood General Obligation, 6.500%, 12/01/12 12/02 at 102 Aa 1,114,600
2,100,000 Lakota Local School District, General Obligation,
6.250%, 12/01/14 12/05 at 100 Aaa 2,283,918
1,000,000 Marion County, Health Care Facilities (United Church
Homes Project), 6.300%, 11/15/15 11/03 at 102 BBB- 982,150
1,800,000 Marysville Exempted Village School District, General
Obligation, 5.750%, 12/01/23 12/05 at 101 Aaa 1,865,214
1,250,000 Miami University, 5.600%, 12/01/13 12/03 at 102 Aaa 1,293,175
1,400,000 Middleburg Heights (Southwest General Hospital),
6.750%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 102 AAA 1,594,768
1,800,000 Montgomery County Sewer System (Greater Moraine-
Beavercreek Sewer District), 5.600%, 9/01/11 9/02 at 102 Aaa 1,868,562
1,000,000 Montgomery County Water (Greater Moraine-
Beavercreek Sewer District), 6.250%, 11/15/17 11/02 at 102 Aaa 1,082,110
2,500,000 Mount Vernon (Knox Community Hospital),
7.875%, 6/01/12 6/96 at 103 N/R 2,592,400
1,000,000 Newark Water System, Limited Tax, General
Obligation, 6.000%, 12/01/18 12/03 at 102 Aaa 1,070,840
North Canton City School District, General
Obligation:
650,000 9.750%, 12/01/03 No Opt. Call Aaa 876,291
715,000 9.700%, 12/01/04 No Opt. Call Aaa 981,195
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 Northeast Ohio Regional Sewer District,
Wastewater Improvement, 5.600%, 11/15/16 11/05 at 101 Aaa $ 2,030,000
1,250,000 Oxford Water Supply System Mortgage,
6.000%, 12/01/14 12/02 at 102 Aaa 1,328,650
1,000,000 Pickerington Local School District, General
Obligation, 5.375%, 12/01/19 12/04 at 102 Aaa 989,320
1,000,000 Revere Local School District, General Obligation,
Unlimited Tax, 6.000%, 12/01/16 12/03 at 102 Aaa 1,063,670
1,400,000 Reynoldsburg City School District, General
Obligation, Unlimited Tax, 6.550%, 12/01/17 12/02 at 102 Aaa 1,554,924
Solon City School District, General Obligation:
1,000,000 7.150%, 12/01/13 (Pre-refunded to 12/01/01) 12/01 at 102 N/R 1,165,140
1,085,000 5.300%, 12/01/13 12/04 at 102 Aa 1,097,857
2,000,000 Southwest Regional Water District,
6.000%, 12/01/20 12/05 at 101 Aaa 2,137,060
3,895,000 Student Loan Funding Corporation of Cincinnati,
Alternative Minimum Tax, 6.600%, 7/01/05 7/02 at 100 A 4,039,699
1,700,000 Student Loan Funding Corporation of Cincinnati,
6.150%, 8/01/10 8/03 at 100 A1 1,718,802
Toledo General Obligation, Limited Tax:
1,135,000 7.000%, 12/01/03 No Opt. call Aaa 1,335,657
3,400,000 5.700%, 12/01/10 12/05 at 102 Aaa 3,604,475
750,000 Tuscarawas County, Hospital Facilities (Union
Hospital), 6.500%, 10/01/21 10/03 at 102 Baa 741,607
3,500,000 University of Cincinnati, General Receipts,
6.300%, 6/01/12 12/02 at 102 AA- 3,802,855
1,500,000 University of Toledo, 5.900%, 6/01/20 12/02 at 102 Aaa 1,574,025
1,000,000 Washington Water System Mortgage,
5.375%, 12/01/19 12/03 at 101 Aaa 988,010
3,000,000 West Clermont Local School District, General
Obligation, 6.000%, 12/01/18 12/05 at 100 Aaa 3,193,380
1,750,000 Worthington City School District, General
Obligation, Unlimited Tax, 6.375%, 12/01/12 6/02 at 102 Aaa 1,917,212
Puerto Rico General Obligation:
1,500,000 3.000%, 7/01/06 7/97 at 100 A 1,253,775
2,500,000 6.600%, 7/01/13 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 2,872,175
1,735,000 Puerto Rico Highway and Transportation Authority,
5.500%, 7/01/19 7/03 at 101 1/2 A 1,695,840
1,300,000 Puerto Rico Public Buildings Authority,
5.750%, 7/01/15 7/03 at 101 1/2 A 1,306,018
1,000,000 Puerto Rico Industrial Medical Educational and
Environmental Authority, Pollution Control
(Motorola, Inc.), 6.750%, 1/01/14 1/02 at 103 Aa3 1,107,210
$209,220,000 Total Investments - (cost $209,680,435) - 97.9% 222,942,111
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.0%
$ 400,000 Cuyahoga County (University Hospital of Cleveland),
Variable Rate Demand Bonds, 3.800%, 1/01/16+ VMIG-1 $ 400,000
4,300,000 Hamilton County (Franciscan Sisters of the Poor),
Variable Rate Demand Bonds, 3.800%, 3/01/17+ VMIG-1 4,300,000
$ 4,700,000 Total Temporary Investments - 2.0% 4,700,000
===========
Other Assets Less Liabilities - 0.1% 59,512
Net Assets - 100% $227,701,623
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 67 $135,318,552 61%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 16 36,006,051 16
PORTFOLIO OF A+ A 19 16,813,623 8
INVESTMENTS A, A- A, A2, A3 10 18,726,590 8
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 8 10,500,055 5
TEMPORARY Non-rated- Non-rated 4 5,577,240 2
INVESTMENTS):
TOTAL 114 $222,942,111 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND (NTX)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 Texas Health Facilities Development Corporation
(All Saints Episcopal Hospitals of Fort Worth),
6.250%, 8/15/22 8/03 at 102 Aaa $ 1,608,480
2,245,000 Texas Housing Agency, Single Family Mortgage,
8.250%, 3/01/17 3/96 at 102 Aa 2,276,946
625,000 Texas Municipal Power Agency, Refunding Bonds,
5.750%, 9/01/12 (Pre-refunded to 9/01/02) 9/02 at 100 Aaa 679,069
4,490,000 Texas Southern University, 5.750%, 8/01/18 8/03 at 101 Aaa 4,603,911
2,015,000 Texas Turnpike Authority, Dallas North Tollway,
6.000%, 1/01/20 1/98 at 100 A 2,028,440
5,015,000 Texas Veterans' Housing General Obligation,
Alternative Minimum Tax, 6.800%, 12/01/23 12/03 at 102 Aa 5,214,798
Texas Veterans' Land General Obligation, Alternative
Minimum Tax:
3,000,000 7.625%, 12/01/13 6/99 at 102 Aa 3,288,870
2,000,000 6.400%, 12/01/24 12/04 at 100 Aa 2,105,120
3,070,000 Texas Veterans' General Obligation, 8.300%, 12/01/16
(Pre-refunded to 12/01/99) 12/99 at 100 AAA 3,549,933
3,500,000 Abilene Health Facilities Development Corporation
(Hendrick Medical Center), 6.150%, 9/01/25 9/05 at 102 Aaa 3,753,330
370,000 Abilene Housing Development Corporation,
7.000%, 7/01/08 No Opt. Call N/R 394,683
Alamo Community College District, General
Obligation:
1,000,000 5.000%, 2/15/10 2/00 at 100 Aa 982,670
1,000,000 5.000%, 2/15/11 2/00 at 100 Aa 975,720
5,295,000 Alliance Airport Authority (American Airlines),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 5,712,193
4,500,000 Amarillo (High Plains Baptist Hospital),
6.500%, 1/01/07 1/02 at 102 Aaa 4,978,620
Austin Combined Utility System:
3,500,000 6.750%, 5/15/12 5/01 at 102 A 3,781,610
2,500,000 5.750%, 11/15/16 11/02 at 100 Aaa 2,551,075
2,320,000 Baytown Housing Finance Corporation, Single
Family Mortgage, 8.500%, 9/01/11 9/02 at 103 A1 2,569,168
1,000,000 Beaumont General Obligation, 6.250%, 3/01/10 3/02 at 100 Aaa 1,107,310
1,000,000 Bexar Metropolitan Water District, 5.000%, 5/01/19
(Pre-refunded to 5/01/15) 5/15 at 100 Aaa 963,990
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Brazos River Authority, Pollution Control (Texas
Utilities Electric Company), Alternative
Minimum Tax:
$ 2,110,000 9.875%, 10/01/17 10/97 at 102 Baa2 $ 2,321,169
1,225,000 8.125%, 2/01/20 2/00 at 102 Baa2 1,366,745
2,000,000 7.875%, 3/01/21 3/01 at102 Baa2 2,242,160
1,000,000 6.050%, 4/01/25 4/03 at 102 Aaa 1,043,850
1,500,000 6.500%, 12/01/27 12/02 at 102 Aaa 1,618,875
Brazos River Authority (Houston Lighting and
Power Project):
5,500,000 7.750%, 10/01/15 10/98 at 102 A3 5,982,075
1,200,000 5.600%, 12/01/17 12/03 at 102 Aaa 1,208,472
Brazos Higher Education Authority, Student Loan,
Alternative Minimum Tax:
2,395,000 6.875%, 9/01/04 3/02 at 102 A 2,597,593
1,070,000 6.650%, 11/01/04 No Opt. Call Aa 1,206,714
250,000 Brazos Higher Education Authority, Inc., Student
Loan, 6.800%, 12/01/04 No Opt. Call A 272,475
1,000,000 Brazosport Water Authority, 5.500%, 9/01/18 9/03 at 100 Aaa 986,590
2,000,000 Brownsville General Obligation, 6.750%, 2/15/12
(Pre-refunded to 2/15/01) 2/01 at 100 Aaa 2,236,140
3,500,000 Brownsville Utility System, 6.500%, 9/01/17
(Pre-refunded to 9/01/00) 9/00 at 102 Aaa 3,918,215
2,500,000 Burleson Independent School District, General
Obligation, 5.375%, 8/01/19 8/06 at 100 Aaa 2,500,000
1,000,000 Caddo Mills Independent School District, General
Obligation, 6.375%, 8/15/25 2/05 at 100 AAA 1,073,050
1,400,000 Coastal Bend Health Facilities Corporation (Incarnate
Word Health Services), 6.000%, 11/15/22 11/02 at 102 Aaa 1,459,528
2,500,000 Conroe Independent School District, General
Obligation, 5.000%, 2/01/18 2/04 at 100 Aaa 2,392,300
4,130,000 Coppell Independent School District, General
Obligation, 0.000%, 8/15/14 8/09 at 75 3/10 Aaa 1,312,514
1,475,000 Corpus Christi Limited Tax, 6.700%, 3/01/08 3/02 at 100 Aaa 1,640,554
1,975,000 Corpus Christi General Obligation, 6.700%, 3/01/08
(Pre-refunded to 3/01/02) 3/02 at 100 Aaa 2,234,160
5,020,000 Dallas-Fort Worth International Airport (United
Parcel Service, Inc.), Alternative Minimum Tax,
6.600%, 5/01/32 5/02 at 102 Aaa 5,421,299
Dallas (Civic Center Convention Complex):
1,000,000 8.000%, 1/01/09 7/96 at 100 A 1,017,350
1,500,000 6.250%, 1/01/20 1/02 at 100 AAA 1,575,750
1,890,000 El Paso Housing Finance Corporation, Single Family
Mortgage, 8.750%, 10/01/11 4/01 at 103 A 2,076,845
2,800,000 Ennis General Obligation, 6.500%, 8/01/13 8/02 at 100 Aaa 3,037,916
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,185,000 Fort Bend County Levee Improvement, District
No. 11, General Obligation, 6.900%, 9/01/17 9/04 at 100 Aaa $ 1,346,267
3,400,000 Frisco Independent School District, General
Obligation, 5.400%, 8/15/23 8/04 at 100 Aaa 3,373,412
1,450,000 Galveston Industrial Development Corporation, Sales
Tax, 5.750%, 9/01/15 9/05 at 100 Aaa 1,495,719
1,405,000 Galveston Property Finance Authority, Single Family
Mortgage, 8.500%, 9/01/11 9/01 at 103 A 1,547,608
1,000,000 Georgetown Higher Education Finance Corporation
(Southwestern University), 6.300%, 2/15/14 2/04 at 100 A1 1,051,720
2,000,000 Harris County Toll Road, Unlimited Tax and
Subordinate Lien, 6.500%, 8/15/15 8/02 at 102 AA+ 2,181,000
Harris County Toll Road Senior Lien:
1,680,000 6.625%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 102 Aaa 1,789,284
320,000 6.625%, 8/15/17 8/97 at 102 Aaa 335,651
1,780,000 6.500%, 8/15/17 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa 2,035,750
320,000 6.500%, 8/15/17 8/02 at 102 Aaa 351,024
5,500,000 5.375%, 8/15/20 8/04 at 102 Aaa 5,455,450
4,000,000 Harris County Health Facilities Development
Corporation (Texas Children's Hospital),
7.000%, 10/01/19 (Pre-refunded to 10/01/99) 10/99 at 102 Aaa 4,493,400
6,110,000 Harris County Health Facilities Development
Corporation (Memorial Hospital System),
7.125%, 6/01/15 6/02 at 102 A 6,726,132
3,470,000 Harrison County Housing Finance Corporation,
Single Family Mortgage, 8.875%, 12/01/11 12/01 at 103 N/R 3,725,947
1,000,000 Houston Airport System, Alternative Minimum
Tax, 8.000%, 7/01/08 7/98 at 102 1/2 A 1,114,800
5,000,000 Houston Airport System, Subordinate Lien,
Alternative Minimum Tax, 6.750%, 7/01/21 7/01 at 102 Aaa 5,418,700
1,930,000 Houston Housing Finance Corporation, Single Family
Mortgage, 5.950%, 12/01/10 6/03 at 102 Aaa 1,995,427
4,000,000 Houston Water and Sewer System, Junior Lien,
6.375%, 12/01/17 12/01 at 102 Aaa 4,293,880
1,000,000 Houston Water and Sewer System, 6.375%, 12/01/14 12/02 at 102 A 1,070,950
800,000 Laredo Waterworks System, 5.625%, 8/15/11 8/04 at 100 Aaa 826,808
190,000 Lower Colorado River Authority, Junior Lien,
5.625%, 1/01/17 (Pre-refunded to 1/01/02) 1/02 at 100 Aaa 199,639
1,310,000 Lower Colorado River Authority, 5.625%, 1/01/17 1/02 at 102 Aaa 1,319,078
2,350,000 Lubbock Health Facilities Development Corporation
(Methodist Hospital), 5.500%, 12/01/14 12/03 at 102 Aaa 2,340,248
3,250,000 Matagorda County Navigation District No. 1,
Pollution Control (Central Power and Light
Company), 6.000%, 7/01/28 7/03 at 102 A3 3,310,613
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,800,000 Matagorda County Navigation District No. 1,
Pollution Control (Houston Lighting and Power
Company), Alternative Minimum Tax,
7.875%, 2/01/19 2/98 at 102 A3 $ 1,936,746
5,750,000 Midland County Hospital District, 0.000%, 6/01/11 No Opt. Call BBB 2,261,303
2,500,000 North Texas Higher Educational Authority, Student
Loan, 6.100%, 4/01/08 4/03 at 102 Aa 2,569,325
1,500,000 North Texas Municipal Water District, Regional
Solid Waste Disposal System, 5.250%, 9/01/12 9/03 at 100 Aaa 1,501,320
1,265,000 Port Arthur Housing Finance Corporation, Single
Family Mortgage, 8.700%, 3/01/12 9/02 at 103 A 1,393,613
4,500,000 Port of Corpus Christi, Authority of Nueces County,
Pollution Control (Hoechst Celanese Corporation
Project), Alternative Minimum Tax,
6.875%, 4/01/17 4/02 at 102 A+ 4,847,040
2,000,000 San Antonio Electric and Gas System,
5.000%, 2/01/17 2/02 at 101 Aa1 1,896,640
4,500,000 San Antonio Water System, 6.500%, 5/15/10 5/02 at 102 Aaa 4,973,535
3,250,000 Tarrant County Health Facilities Development
Corporation (Harris Methodist Health System),
6.000%, 9/01/24 9/04 at 102 A1 3,299,400
2,500,000 Tarrant County Water Control and Improvement
District, 5.750%, 3/01/13 (Pre-refunded to
3/01/01) 3/01 at 100 Aaa 2,683,900
2,500,000 Terrell Hills Higher Education Facilities Corporation
(Incarnate Word College), 5.750%, 3/15/13 3/03 at 101 1/2 AAA 2,555,625
Travis County Health Facilities Development
Corporation (Daughters of Charity Health System):
1,865,000 5.250%, 11/01/11 11/05 at 102 Aa 1,832,698
5,400,000 6.000%, 11/15/22 11/03 at 102 Aa 5,472,954
3,310,000 Travis County Residential Mortgage, GNMA and
FNMA, 7.050%, 12/01/25 12/01 at 103 AAA 3,526,572
1,445,000 Tyler Junior College District, 5.900%, 8/15/13 8/04 at 100 Aaa 1,516,527
2,000,000 University of Houston, 6.000%, 2/15/17 2/05 at 100 Aaa 2,103,140
2,345,000 Victoria Housing Finance Corporation, Single Family
Mortgage, 8.125%, 1/01/11 No Opt. Call Aaa 2,553,985
1,030,000 Webb County Limited Tax, 5.400%, 2/15/09 2/03 at 100 Aaa 1,057,800
$205,795,000 Total Investments - (cost $197,806,418) - 98.0% 211,648,905
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.6%
$ 700,000 Harris County Industrial Development Corporation,
Pollution Control (Exxon), Variable Rate Demand
Bonds, 3.600%, 3/01/24+ A-1+ $ 700,000
600,000 North Central Texas Health Facilities Development
Corporation (Methodist Hospitals of Dallas),
Variable Rate Demand Bonds, 3.800%, 10/01/15+ A-1 600,000
$ 1,300,000 Total Temporary Investments - 0.6% 1,300,000
===========
Other Assets Less Liabilities - 1.4% 3,025,850
Net Assets - 100% $215,974,755
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 50 $116,997,072 55%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 30,003,455 14
PORTFOLIO OF A+ A1 4 11,767,328 6
INVESTMENTS A, A- A, A2, A3 14 34,856,850 16
(EXCLUDING BBB+, BBB, BBB- BAA1, BAA, BAA2, BAA3 5 13,903,570 7
TEMPORARY NON-RATED NON-RATED 2 4,120,630 2
INVESTMENTS):
TOTAL 87 $211,648,905 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value
(note 1) $94,129,295 $253,981,972 $167,632,641 $222,942,111
Temporary investments in short-term municipal
securities, at amortized cost (note 1) -- 200,000 400,000 4,700,000
Cash 8,858 92,235 41,240 105,898
Receivables:
Interest 680,283 3,832,135 2,217,187 2,807,555
Investments sold 2,001,570 -- -- 1,119,109
Other assets 1,622 1,482 14,188 8,347
------------ ------------ ------------ ------------
Total assets 96,821,628 258,107,824 170,305,256 231,683,020
------------ ------------ ------------ ------------
LIABILITIES
Payable for investments purchased 1,325,064 -- -- 3,008,167
Accrued expenses:
Management fees (note 6) 52,111 139,550 92,531 123,885
Other 46,622 91,263 81,678 77,996
Preferred share dividends payable 13,557 48,000 25,781 33,969
Common share dividends payable 278,236 885,005 495,211 737,380
------------ ------------ ------------ ------------
Total liabilities 1,715,590 1,163,818 695,201 3,981,397
------------ ------------ ------------ ------------
Net assets (note 7) $95,106,038 $256,944,006 $169,610,055 $227,701,623
============ ============ ============ ============
Preferred shares, at liquidation value $30,000,000 $ 80,000,000 $ 56,000,000 $ 77,000,000
============ ============ ============ ============
Preferred shares outstanding 1,200 3,200 2,240 3,080
============ ============ ============ ============
Common shares outstanding 4,280,555 11,132,141 7,677,686 9,217,250
============ ============ ============ ============
Net asset value per Common share outstanding
(net assets less Preferred
shares at liquidation value,
divided by Common shares outstanding) $ 15.21 $ 15.89 $ 14.80 $ 16.35
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NTX
<S> <C>
ASSETS
Investments in municipal securities, at market value
(note 1) $211,648,905
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 1,300,000
Cash 38,530
Receivables:
Interest 3,894,153
Investments sold 46,547
Other assets 11,879
------------
Total assets 216,940,014
------------
LIABILITIES
Payable for investments purchased --
Accrued expenses:
Management fees (note 6) 117,605
Other 62,502
Preferred share dividends payable 34,285
Common share dividends payable 750,867
------------
Total liabilities 965,259
------------
Net assets (note 7) $215,974,755
============
Preferred shares, at liquidation value $ 69,000,000
============
Preferred shares outstanding 2,760
============
Common shares outstanding 9,385,839
============
Net asset value per Common share outstanding
(net assets less Preferred shares at
liquidation value, divided by Common
shares outstanding) $ 15.66
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended January 31, 1996
(Unaudited)
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $2,663,852 $ 7,707,813 $ 4,739,242 $ 6,604,703
---------- ----------- ----------- -----------
Expenses:
Management fees (note 6) 302,986 817,151 538,362 722,788
Preferred shares--auction fees 37,808 100,822 70,575 97,041
Preferred shares--dividend disbursing agent fees 7,562 7,562 15,123 22,685
Shareholders' servicing agent fees and expenses 2,844 19,523 15,699 20,729
Custodian's fees and expenses 20,364 28,217 23,975 18,383
Directors'/Trustees' fees and expenses (note 6) 1,080 1,857 1,459 1,876
Professional fees 5,152 1,693 12,861 14,697
Shareholders' reports--printing and mailing expenses 17,763 30,532 22,889 27,188
Stock exchange listing fees 8,931 12,388 9,795 14,060
Investor relations expense 6,732 8,060 4,819 6,395
Other expenses 6,717 9,468 6,656 17,161
---------- ----------- ----------- -----------
Total expenses 417,939 1,037,273 722,213 963,003
---------- ----------- ----------- -----------
Net investment income 2,245,913 6,670,540 4,017,029 5,641,700
---------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(note 3) 150,197 115,432 122,004 253,788
Net change in unrealized appreciation or depreciation
of investments 4,487,339 9,645,276 7,982,583 9,033,530
---------- ----------- ----------- -----------
Net gain from investments 4,637,536 9,760,708 8,104,587 9,287,318
---------- ----------- ----------- -----------
Net increase in net assets from operations $6,883,449 $16,431,248 $12,121,616 $14,929,018
========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended January 31, 1996
(Unaudited)
<CAPTION>
NTX
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 6,549,742
------------
Expenses:
Management fees (note 6) 689,166
Preferred shares--auction fees 86,959
Preferred shares--dividend disbursing agent fees 15,123
Shareholders' servicing agent fees and expenses 5,671
Custodian's fees and expenses 21,449
Directors'/Trustees' fees and expenses (note 6) 1,814
Professional fees 16,263
Shareholders' reports--printing and mailing expenses 16,145
Stock exchange listing fees 8,896
Investor relations expense 5,314
Other expenses 6,090
------------
Total expenses 872,890
------------
Net investment income 5,676,852
------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(note 3) (20,920)
Net change in unrealized appreciation or depreciation
of investments 7,584,433
------------
Net gain from investments 7,563,513
------------
Net increase in net assets from operations $ 13,240,365
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NAZ NUM
6 months ended Year ended 6 months ended Year ended
1/31/96 7/31/95 1/31/96 7/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,245,913 $ 4,560,118 $ 6,670,540 $ 13,441,368
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) 150,197 (659,916) 115,432 964,241
Net change in unrealized appreciation or depreciation
of investments 4,487,339 2,747,931 9,645,276 1,087,592
------------ ------------ ------------- -------------
Net increase in net assets from operations 6,883,449 6,648,133 16,431,248 15,493,201
------------ ------------ ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (1,669,418) (3,338,836) (5,312,090) (11,081,980)
Preferred shareholders (541,980) (1,137,849) (1,289,737) (2,869,083)
From accumulated net realized gains from investment transactions:
Common shareholders -- -- (756,492) (544,244)
Preferred shareholders -- -- (208,288) (87,936)
In excess of net realized gains from investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------ ------------ ------------- -------------
Decrease in net assets from distributions to shareholders (2,211,398) (4,476,685) (7,566,607) (14,583,243)
------------ ------------ ------------- -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition of
NMH, NOH and NOO, or NTE, as applicable
(note 1) -- -- -- --
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- -- 172,077 915,423
------------ ------------ ------------- -------------
Net increase in net assets derived from capital
share transactions -- -- 172,077 915,423
------------ ------------ ------------- -------------
Net increase in net assets 4,672,051 2,171,448 9,036,718 1,825,381
Net assets at beginning of period 90,433,987 88,262,539 247,907,288 246,081,907
------------ ------------ ------------- -------------
Net assets at end of period $ 95,106,038 $ 90,433,987 $ 256,944,006 $ 247,907,288
============ ============ ============= =============
Balance of undistributed net investment income at
end of period $ 164,757 $ 130,243 $ 620,009 $ 551,296
============ ============ ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NMP NUO
6 months ended Year ended 6 months ended Year ended
1/31/96 7/31/95 1/31/96 7/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 4,017,029 $ 7,080,742 $ 5,641,700 $ 9,571,454
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) 122,004 (1,991,858) 253,788 (688,907)
Net change in unrealized appreciation or depreciation
of investments 7,982,583 10,074,721 9,033,530 13,173,012
------------- ------------- ------------- -------------
Net increase in net assets from operations 12,121,616 15,163,605 14,929,018 22,055,559
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (2,971,268) (5,398,921) (4,355,155) (7,169,390)
Preferred shareholders (1,000,087) (1,885,432) (1,284,179) (2,317,977)
From accumulated net realized gains from investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
In excess of net realized gains from investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions to shareholders (3,971,355) (7,284,353) (5,639,334) (9,487,367)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from shares issued in acquisition of
NMH, NOH and NOO, or NTE, as applicable
(note 1) -- 52,646,603 -- 104,177,336
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions 45,789 -- 76,695 254,340
------------- ------------- ------------- -------------
Net increase in net assets derived from capital
share transactions 45,789 52,646,603 76,695 104,431,676
------------- ------------- ------------- -------------
Net increase in net assets 8,196,050 60,525,855 9,366,379 116,999,868
Net assets at beginning of period 161,414,005 100,888,150 218,335,244 101,335,376
------------- ------------- ------------- -------------
Net assets at end of period $ 169,610,055 $ 161,414,005 $ 227,701,623 $ 218,335,244
============= ============= ============= =============
Balance of undistributed net investment income at
end of period $ 291,496 $ 245,822 $ 621,562 $ 619,196
============= ============= ============= =============
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NTX
6 months ended Year ended
1/31/96 7/31/95
<S> <C> <C>
OPERATIONS
Net investment income $ 5,676,852 $ 10,505,566
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (20,920) 351,434
Net change in unrealized appreciation or depreciation
of investments 7,584,433 7,220,300
------------- -------------
Net increase in net assets from operations 13,240,365 18,077,300
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (4,505,202) (8,438,688)
Preferred shareholders (1,272,207) (2,459,353)
From accumulated net realized gains from investment transactions:
Common shareholders (170,667) --
Preferred shareholders (53,563) --
In excess of net realized gains from investment transactions:
Common shareholders (172,855) --
Preferred shareholders (54,251) --
------------- -------------
Decrease in net assets from distributions to shareholders (6,228,745) (10,898,041)
------------- -------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from shares issued in acquisition of
NMH, NOH and NOO, or NTE, as applicable
(note 1) -- 47,805,776
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions 38,916 215,110
------------- -------------
Net increase in net assets derived from capital
share transactions 38,916 48,020,886
------------- -------------
Net increase in net assets 7,050,536 55,200,145
Net assets at beginning of period 208,924,219 153,724,074
------------- -------------
Net assets at end of period $ 215,974,755 $ 208,924,219
============= =============
Balance of undistributed net investment income at
end of period $ 251,175 $ 351,732
============= =============
See accompanying notes to financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At January 31, 1996, the state Funds (the "Funds") covered in this report
and their corresponding New York Stock Exchange symbols are Nuveen Arizona
Premium Income Municipal Fund, Inc. (NAZ), Nuveen Michigan Quality Income
Municipal Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal Fund,
Inc. (NMP), Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) and Nuveen
Texas Quality Income Municipal Fund (NTX).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
On November 8, 1994, NMP acquired all of the net assets of Nuveen Michigan
Premium Income Municipal Fund 2 (NMH) pursuant to a plan of reorganization
approved by the shareholders of both Funds on October 6, 1994. The acquisition
was accomplished by a tax-free exchange of 2,781,169 shares of NMP for
the 2,871,673 shares of NMH outstanding on November 8, 1994. NMH's net assets
at that date of $52,646,603 included $7,603,233 of unrealized depreciation and
$21,000,000 of preferred shares at liquidation value which was combined with
that of NMP. The combined net assets on NMP immediately after the acquisition
were $143,363,478.
On November 8, 1994, NUO acquired all of the net assets of Nuveen Ohio Premium
Income Municipal Fund, Inc. (NOH) and Nuveen Ohio Premium Income Municipal
Fund 2 (NOO) pursuant to a plan of reorganization approved by the shareholders
of each of the respective Funds on October 6, 1994. The acquisition was
accomplished by a tax-free exchange of 4,728,624 shares of NUO for the
3,341,640 shares of NOH and for the 2,229,722 shares of NOO outstanding on
November 8, 1994. NOH's and NOO's net assets at that date of $63,748,523 and
$40,428,813, respectively, included unrealized depreciation of $7,012,254 and
$6,049,469, respectively, as well as $25,000,000 and $17,000,000 of preferred
shares at liquidation value, respectively, which was combined with that of
NUO. The combined net assets on NUO immediately after the acquisition were
$198,099,459.
<PAGE>
On November 8, 1994, NTX acquired all of the net assets of Nuveen Texas Premium
Income Municipal Fund (NTE) pursuant to a plan of reorganization approved by
the shareholders of both Funds on October 21, 1994. The acquisition was
accomplished by a tax-free exchange of 2,231,243 shares of NTX for the
2,476,985 shares of NTE outstanding on November 8, 1994. NTE's net assets at
that date of $47,805,776 included $5,095,320 of unrealized depreciation and
$19,000,000 of preferred shares at liquidation value which was combined with
that of NTX. The combined net assets on NTX immediately after the acquisition
were $190,172,942.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors/Trustees. Temporary
investments in securities that have variable rate and demand features
qualifying them as short-term securities are traded and valued at amortized
cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may be settled a month or more after the transaction date. The securities so
purchased are subject to market fluctuation during this period. The Funds have
instructed the custodian to segregate assets in a separate account with a
current value at least equal to the amount of their purchase commitments.
At January 31, 1996, NUO had outstanding purchase commitments which amounted to
$3,008,167. There were no such purchase commitments in any of the other Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
<PAGE>
Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their
net investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each Fund intends to satisfy conditions which will enable interest
from municipal securities, which is exempt from regular federal and designated
state income taxes, to retain such tax-exempt status when distributed to
shareholders of the Funds.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized gains
from investment transactions are recorded on the ex-dividend date. The amount
and timing of such distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may result and will be classified as either distributions in
excess of net investment income or distributions in excess of net realized
gains from investment transactions, if applicable.
<PAGE>
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in one or more Series. The
dividend rate on each Series may change every seven days, as set by the
Auction Agent. The number of shares outstanding, by Series and in total, at
January 31, 1996, were as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Number of shares:
Series M -- -- 840 680
Series Th 1,200 3,200 1,400 1,400
Series Th2 -- -- -- 1,000
----- ----- ----- -----
Total 1,200 3,200 2,240 3,080
===== ===== ===== =====
<CAPTION>
NTX
<S> <C>
Number of shares:
Series M 760
Series Th 2,000
Series Th2 --
-----
Total 2,760
=====
</TABLE>
<PAGE>
<TABLE>
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about Derivative
Financial Instruments and Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain derivative financial
instruments including future, forward, swap, and option contracts, and other
financial instruments with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may do so in the
future, they did not make any such investments during the six months ended
January 31, 1996.
2. FUND SHARES
Transactionsin Common and Preferred shares were as follows:
<CAPTION>
NAZ NUM
6 months ended Year ended 6 months ended Year ended
1/31/96 7/31/95 1/31/96 7/31/95
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NMH, NOH and
NOO, or NTE, as applicable (note 1) -- -- -- --
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- -- 11,377 60,995
---------- ---------- ---------- ---------
Net increase -- -- 11,377 60,995
========== ========== ========== =========
Preferred shares acquired from NMH, NOH and
NOO, or NTE, as applicable (note 1) -- -- -- --
========== ========== ========== =========
<CAPTION>
NMP NUO
6 months ended Year ended 6 months ended Year ended
1/31/96 7/31/95 1/31/96 7/31/95
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NMH, NOH and
NOO, or NTE, as applicable (note 1) -- 2,781,169 -- 4,728,624
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- -- -- 17,091
---------- ---------- ---------- ---------
Net increase -- 2,781,169 -- 4,745,715
========== ========= ========== =========
Preferred shares acquired from NMH, NOH and
NOO, or NTE, as applicable (note 1) -- 840 -- 1,680
========== ========= ========== =========
<PAGE>
<CAPTION>
NTX
6 months ended Year ended
1/31/96 7/31/95
<S> <C> <C>
Common shares:
Shares issued in acquisition of NMH, NOH and
NOO, or NTE, as applicable (note 1) -- 2,231,243
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- 14,584
---------- ---------
Net increase -- 2,245,827
========== =========
Preferred shares acquired from NMH, NOH and
NOO, or NTE, as applicable (note 1) -- 760
========== =========
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
January 31, 1996, were as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $4,136,642 $15,592,362 $14,608,605 $16,357,995
Temporary municipal investments 1,500,000 5,200,000 9,200,000 12,000,000
SALES AND MATURITIES
Investments in municipal securities 3,736,646 16,094,721 13,989,993 16,422,470
Temporary municipal investments 2,400,000 5,000,000 8,800,000 10,900,000
========== =========== =========== ===========
<CAPTION>
NTX
<S> <C>
PURCHASES
Investments in municipal securities $22,987,921
Temporary municipal investments 11,900,000
SALES AND MATURITIES
Investments in municipal securities 23,986,218
Temporary municipal investments 11,500,000
===========
At January 31, 1996, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At July 31, 1995, the Funds' last fiscal year end, the following Funds had
unused capital loss carryovers available for federal income tax purposes
to be applied against future capital gains, if any. If not applied, the
carryovers will expire as follows:
<CAPTION>
NAZ NMP* NUO**
<S> <C> <C> <C>
Expiration year:
2002 $ -- $347,424 $1,566,075
2003 1,480,968 627,148 16,493
---------- -------- ----------
Total $1,480,968 $974,572 $1,582,568
========== ======== ==========
<FN>
*Due to the acquisition of NMH by NMP (note 1), NMH had net realized losses
from investment transactions of $347,424 which were carried forward by NMP, as
permitted under applicable tax regulation.
**Due to the acquisition of NOH and NOO by NUO (note 1), NOH and NOO had net
realized losses from investment transactions of $359,738 and $1,204,221,
respectively, which were carried forward by NUO, as permitted under applicable
tax regulations.
</TABLE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On February 1, 1996, the Funds declared Common share dividend distributions
from their ordinary income that were paid March 1, 1996, to shareholders of
record on February 15, 1996, as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Dividend per share $.0675 $.0795 $.0645 $.0800
====== ====== ====== ======
<CAPTION>
NTX
<S> <C>
Dividend per share $.0780
======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at January 31, 1996, were as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $ 7,114,131 $ 21,312,436 $ 8,702,072 $ 13,457,548
Depreciation (50,154) -- (43,533) (195,872)
------------ ------------ ----------- ------------
Net unrealized appreciation $ 7,063,977 $ 21,312,436 $ 8,658,539 $ 13,261,676
============ ============ =========== ============
<CAPTION>
NTX
<S> <C>
Gross unrealized:
Appreciation $ 13,906,016
Depreciation (63,529)
------------
Net unrealized appreciation $ 13,842,487
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with the Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company,
each Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset
value of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors/Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At January 31, 1996, net assets consisted of:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $ 30,000,000 $ 80,000,000 $ 56,000,000 $ 77,000,000
Common shares, $.01 par value per share 42,806 111,321 76,777 92,173
Paid-in surplus 59,165,269 154,786,232 107,234,590 138,732,668
Balance of undistributed net investment income 164,757 620,009 291,496 621,562
Accumulated net realized gain (loss)
from investment transactions (1,330,771) 114,008 (2,651,347) (2,006,456)
Distributions in excess of net realized gains from
investment transactions -- -- -- --
Net unrealized appreciation or depreciation
of investments 7,063,977 21,312,436 8,658,539 13,261,676
------------- ------------ ------------- -------------
Net assets $ 95,106,038 $256,944,006 $ 169,610,055 $ 227,701,623
============= ============ ============= =============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000 1,000,000
============= ============ ============= =============
<CAPTION>
NTX
<S> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $ 69,000,000
Common shares, $.01 par value per share 93,858
Paid-in surplus 133,035,261
Balance of undistributed net investment income 251,175
Accumulated net realized gain (loss)
from investment transactions (20,920)
Distributions in excess of net realized gains from
investment transactions (227,106)
Net unrealized appreciation or depreciation
of investments 13,842,487
-------------
Net assets $215,974,755
=============
Authorized shares:
Common Unlimited
Preferred Unlimited
=============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At January 31, 1996, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NAZ NUM NMP NUO
<S> <C> <C> <C> <C>
Revenue Bonds:
Health Care Facilities 9% 18% 18% 16%
Pollution Control Facilities 6 8 15 9
Housing Facilities 1 12 14 8
Educational Facilities 6 3 7 14
Water / Sewer Facilities 11 6 8 11
Electric Utilities 8 6 8 3
Transportation 5 2 2 5
Lease Rental Facilities 5 4 6 5
Other 11 4 7 2
General Obligation Bonds 19 22 13 16
Escrowed Bonds 19 15 2 11
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
<CAPTION>
NTX
<S> <C>
Revenue Bonds:
Health Care Facilities 16%
Pollution Control Facilities 17
Housing Facilities 10
Educational Facilities 9
Water / Sewer Facilities 6
Electric Utilities 4
Transportation 7
Lease Rental Facilities --
Other 2
General Obligation Bonds 17
Escrowed Bonds 12
----
100%
====
</TABLE>
<PAGE>
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (61% for NAZ, 46% for NUM, 45% for NMP, 53%
for NUO and 44% for NTX). Such insurance or escrow, however, does not
guarantee the market value of the municipal securities or the value of any of
the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued
by third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS
AS FOLLOWS:
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments** shareholders shareholders++
<S> <C> <C> <C> <C> <C>
NAZ
6 mos. ended
1/31/96 $14.120 $ .525 $ 1.082 $ (.390) $(.127)
Year ended 7/31,
1995 13.610 1.065 .491 (.780) (.266)
1994 14.490 1.067 (.835) (.789) (.257)
11/19/92 to
7/31/93 14.050 .524 .694 (.420) (.114)
<CAPTION>
NUM
<S> <C> <C> <C> <C> <C>
6 mos. ended
1/31/96 15.100 .599 .871 (.477) (.116)
Year ended 7/31,
1995 15.020 1.212 .183 (.999) (.259)
1994 15.850 1.210 (.817) (1.051) (.172)
1993 15.230 1.205 .583 (.970) (.172)
2 mos. ended
7/31/92 14.290 .201 .923 (.151) (.033)
10/17/91 to
5/31/92 14.050 .473 .402 (.378) (.067)
<CAPTION>
NMP
<S> <C> <C> <C> <C> <C>
6 mos. ended
1/31/96 13.730 .523 1.064 (.387) (.130)
Year ended 7/31,
1995 13.460 1.042 .305 (.801) (.276)
1994 14.470 1.033 (1.015) (.810) (.170)
12/17/92 to
7/31/93 14.050 .405 .622 (.338) (.054)
<PAGE>
<CAPTION>
Distributions from capital gains Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders++ discounts of period period
NAZ
<S> <C> <C> <C> <C> <C>
6 mos. ended
1/31/96 $-- $-- $-- $15.210 $14.250
Year ended 7/31,
1995 -- -- -- 14.120 13.625
1994 (.053) (.013) -- 13.610 13.125
11/19/92 to
7/31/93 -- -- (.244) 14.490 15.750
<CAPTION>
NUM
<S> <C> <C> <C> <C> <C>
6 mos. ended
1/31/96 (.068) (.019) -- 15.890 16.125
Year ended 7/31,
1995 (.049) (.008) -- 15.100 14.875
1994 -- -- -- 15.020 15.250
1993 (.022) (.004) -- 15.850 16.000
2 mos. ended
7/31/92 -- -- -- 15.230 15.500
10/17/91 to
5/31/92 -- -- (.190) 14.290 15.125
<CAPTION>
NMP
<S> <C> <C> <C> <C> <C>
6 mos. ended
1/31/96 -- -- -- 14.800 13.250
Year ended 7/31,
1995 -- -- -- 13.730 12.000
1994 (.040) (.008) -- 13.460 12.500
12/17/92 to
7/31/93 -- -- (.215) 14.470 15.000
<PAGE>
<CAPTION>
Ratio/Supplemental data
Ratio of
net
Net assets Ratio of investment
end of expenses income Portfolio
period (in to average to average turnover
thousands) net assets*** net assets*** rate
NAZ
<S> <C> <C> <C> <C>
6 mos. ended
1/31/96 $95,106 .89%* 4.80%* 4%
Year ended 7/31,
1995 90,434 .86 5.21 11
1994 88,263 .84 4.97 21
11/19/92 to
7/31/93 91,363 .91* 4.22* 40
<CAPTION>
NUM
<S> <C> <C> <C> <C>
6 mos. ended
1/31/96 256,944 .81* 5.24* 6
Year ended 7/31,
1995 247,907 .84 5.54 18
1994 246,082 .85 5.27 4
1993 253,881 .88 5.36 6
2 mos. ended
7/31/92 244,930 .85* 5.45* --
10/17/91 to
5/31/92 234,439 .82* 4.54* 1
<CAPTION>
NMP
<S> <C> <C> <C> <C>
6 mos. ended
1/31/96 169,610 .87* 4.81* 9
Year ended 7/31,
1995 161,414 1.01 5.02 32
1994 100,888 .94 4.82 17
12/17/92 to
7/31/93 105,494 .92* 3.73* 15
See notes on page 58.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS
AS FOLLOWS:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments** shareholders shareholders++
NUO
<S> <C> <C> <C> <C> <C>
6 mos. ended
1/31/96 $15.330 $ .612 $1.020 $ (.473) $(.139)
Year ended 7/31,
1995 14.840 1.220 .514 (.945) (.299)
1994 15.720 1.193 (.830) (1.027) (.175)
1993 15.020 1.175 .697 (.925) (.194)
2 mos. ended
7/31/92 14.070 .197 .935 (.146) (.036)
10/17/91
to 5/31/92 14.050 .464 .261 (.365) (.071)
<CAPTION>
NTX
<S> <C> <C> <C> <C> <C>
6 mos. ended
1/31/96 14.910 .605 .809 (.480) (.136)
Year ended 7/31,
1995 14.530 1.215 .428 (.980) (.283)
1994 15.410 1.206 (.820) (1.062) (.174)
1993 15.090 1.204 .304 (.973) (.181)
2 mos. ended
7/31/92 14.190 .203 .883 (.151) (.035)
10/17/91 to
5/31/92 14.050 .494 .309 (.378) (.067)
<PAGE>
<CAPTION>
Distributions from capital gains
Per Total
Organization Common invest-
and offering share ment
costs and market return Total
To To Preferred share Net asset value on return on
Common Preferred underwriting value end end of market net asset
shareholders shareholders++ discounts of period period value+ value+
NUO
<S> <C> <C> <C> <C> <C> <C> <C>
6 mos. ended
1/31/96 $-- $-- $-- $16.350 $16.375 11.63% 9.88%
Year ended 7/31,
1995 -- -- -- 15.330 15.125 6.80 10.16
1994 (.034) (.007) -- 14.840 15.125 2.72 1.06
1993 (.042) (.011) -- 15.720 15.750 9.89 11.64
2 mos. ended
7/31/92 -- -- -- 15.020 15.250 2.66 7.84
10/17/91
5/31/92 -- -- (.269) 14.070 15.000 2.43 2.79
<CAPTION>
NTX
<S> <C> <C> <C> <C> <C> <C> <C>
6 mos. ended
1/31/96 (.037)+++ (.011)+++ -- 15.660 15.125 12.98 8.63
Year ended 7/31,
1995 -- -- -- 14.910 13.875 1.14 9.89
1994 (.026) (.004) -- 14.530 14.750 (.27) 1.28
1993 (.028) (.006) -- 15.410 15.875 10.24 9.19
2 mos. ended
7/31/92 -- -- -- 15.090 15.375 4.44 7.46
10/17/91 to
5/31/92 -- -- (.218) 14.190 14.875 1.68 3.74
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio of
net
Net assets Ratio of investment
end of expenses income Portfolio
period (in to average to average turnover
thousands) net assets*** net assets*** rate
NUO
<S> <C> <C> <C> <C>
6 mos. ended
1/31/96 $227,702 .86%* 5.02%* 7%
Year ended 7/31,
1995 218,335 .94 5.24 19
1994 101,335 .94 5.09 2
1993 104,507 1.00 5.13 23
2 mos. ended
7/31/92 100,696 1.00* 5.25* 5
10/17/91 to
5/31/92 96,465 .89* 4.40* 4
<CAPTION>
NTX
<S> <C> <C> <C> <C>
6 mos. ended
1/31/96 215,975 .81* 5.30* 11
Year ended 7/31,
1995 208,924 .91 5.54 8
1994 153,724 .86 5.43 10
1993 159,329 .89 5.49 6
2 mos. ended
7/31/92 156,031 .86* 5.60* 4
10/17/91 to
5/31/92 149,694 .86* 5.65* --
<FN>
* Annualized.
** Net of taxes, if applicable.
*** Ratios do not reflect the effect of dividend payments to Preferred
shareholder.
+ Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
++ The amounts shown are based on Common share equivalents.
+++ The amounts shown include distributions in excess of net realized gains
from investment transactions of $.018 to Common shareholders and $.006 to
Preferred shareholders.
</TABLE>
<PAGE>
Your investment partner
Photo of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF1-MAR 96
