LOGO: Nuveen Investments
Annual Report July 31, 2000
Municipal Closed-End
Exchange-Traded Funds
Dependable, tax-free income to help you keep more of what you earn.
ARIZONA
NAZ
MICHIGAN
NUM
NMP
OHIO
NUO
TEXAS
NTX
Invest well.
Look ahead.
LEAVE YOUR MARK. SM
Photo of: Water
Photo of: People standing with horses.
<PAGE>
Credit Quality
HIGHLIGHTS As of July 31, 2000
Contents
1 Dear Shareholder
3 NAZ Portfolio Managers' Comments
6 NAZ Performance Overview
7 Michigan Portfolio Managers' Comments
10 NUM Performance Overview
11 NMP Performance Overview
12 NUO Portfolio Managers' Comments
15 NUO Performance Overview
16 NTX Portfolio Managers' Comments
19 NTX Performance Overview
20 Report of Independent Auditors
21 Portfolio of Investments
43 Statement of Net Assets
44 Statement of Operations
45 Statement of Changes in Net Assets
47 Notes to Financial Statements
53 Financial Highlights
56 Build Your Wealth Automatically
57 Fund Information
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC. (NAZ)
Pie Chart:
AAA/U.S. GUARANTEED 65%
AA 15%
A 4%
BBB 11%
NR 1%
Other 4%
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. (NUM)
Pie Chart:
AAA/U.S. GUARANTEED 82%
AA 10%
A 5%
BBB 3%
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. (NMP)
Pie Chart:
AAA/U.S. GUARANTEED 66%
AA 22%
A 5%
BBB 7%
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC. (NUO)
Pie Chart:
AAA/U.S. GUARANTEED 71%
AA 14%
A 4%
BBB 7%
NR 4%
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND (NTX)
Pie Chart:
AAA/U.S. GUARANTEED 57%
AA 11%
A 9%
BBB 22%
NR 1%
--------------------------------------------------------------------------------
COMPOUND YOUR WEALTH - AUTOMATICALLY
All Nuveen Municipal Closed-End Exchange-Traded Funds let you reinvest dividends
and capital gains directly into additional shares of your Fund. This is a great
way to see your investment grow through the power of tax-free compounding.
For more information about Dividend Reinvestment, see the last page of this
report or speak with your financial advisor.
--------------------------------------------------------------------------------
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "Building and sustaining wealth requires sound, ongoing advice."
Dear SHAREHOLDER
The primary objective of your Nuveen Municipal Closed-End Exchange-Traded Fund
is to provide dependable, attractive tax-free dividends. I am very happy to
report that your Fund continued to achieve this goal during the period covered
by this report. For more specifics on this performance, I encourage you to read
the Portfolio Manager's Comments and Performance Overview pages that follow this
letter.
We believe that your Nuveen Municipal Closed-End Exchange-Traded Fund, as an
income-oriented investment, is well positioned to be a core element of your
long-term investment program. With the help of your financial advisor, all of us
at Nuveen Investments are dedicated to providing the services, products,
perspectives, and solutions that you need to help you meet your personal and
family financial goals.
New Ways to Think About Wealth
Over the past few years, much attention has been directed toward the ways
investors are accumulating wealth. At Nuveen, we believe it is equally important
for investors to focus on preserving that wealth, on the responsibilities that
accompany wealth, and on the legacies we will leave for future generations.
This long-term perspective is key to understanding our portfolio management
strategies, our insistence on quality, and our determination to provide
investments that can withstand the test of time. It is a philosophy that we
think is well encapsulated in our brand theme: Invest Well. Look Ahead. Leave
Your Mark.
Invest Well
Building and sustaining the wealth that can result in lasting legacies requires
a well-developed plan, sound ongoing advice, and the discipline to remain
focused on long-term results. With today's abundance of investment products and
offers, it also increasingly requires an experienced and trusted advisor who can
guide you through the opportunities and the pitfalls. With so much potentially
at stake, Nuveen Investments is dedicated to delivering quality products like
your Nuveen Fund through the financial advisors who assist you in making wise
investment choices and help you manage your most important financial assets.
<PAGE>
Look Ahead
We urge all our investors to look ahead, not only toward their own goals and
futures, but those of future generations as well. We now stand on the threshold
of a new century, anticipating a time of change, discovery, and potential that
may one day make the year 2000 seem as archaic as the year 1900. While we cannot
know all that the future will bring, we do know that a well-diversified,
carefully monitored investment program that combines elements of growth, income,
and capital preservation forms a solid foundation that can help us meet whatever
opportunities and challenges the new century has to offer.
Leave Your Mark
With the enormous wealth creation of the past decade and the considerable
intergenerational transfer of wealth that is expected to occur over the next 20
years, investors today have a significant opportunity to shape the financial
future for themselves and their families. These opportunities may include
establishing trusts, endowments, or legacies that can directly affect our
families and communities for generations to come. We at Nuveen Investments are
committed to facilitating and raising the level of dialogue between investors
and their financial advisors in ways that help meet goals that extend far beyond
the boundaries of a single life span.
Since 1898, the name Nuveen has been synonymous with quality investments,
careful research and prudent management. Today, more than ever, the investments
and services we offer through financial advisors are designed to be well suited
to those who recognize and embrace the need for building and managing wealth. We
encourage you to speak with your financial advisor about how you can enhance
your investment program in ways that can help you Invest Well, Look Ahead, and
Leave Your Mark.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
September 18, 2000
Sidebar text: "We believe your Nuveen Municipal Closed-End Exchange-Traded Fund
is well positioned to be a core element of your long-term investment program."
<PAGE>
Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ)
Portfolio Manager's COMMENTS
Portfolio manager Mike Davern reviews the state economy, its impact on the
municipal market and recent Fund performance, and the key strategies used to
manage the Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ). Mike, who
has more than 17 years of experience as an investment professional, including
eight years with Nuveen, has managed NAZ since 1998.
WHAT FACTORS AFFECTED THE ARIZONA ECONOMY OVER THE PAST 12 MONTHS?
To gain some perspective on what's been happening in Arizona, let's first take a
look at the national economy. The U.S. is now well into its tenth year of
uninterrupted economic expansion, the longest continuous expansion in the
nation's history. Recently. the rapid pace of this growth has concerned the
Federal Reserve, which continued to watch for any resurgence of inflation. To
pre-empt this threat, the Fed in June 1999 began a series of six short-term
interest rate increases that, by May 2000, had raised the federal funds target
rate from 4.75% to 6.50%, the highest level in almost a decade. As the Fed
signaled its willingness to continue tightening as long as it perceived the risk
of inflationary pressures, investor uncertainty grew, the equity markets became
increasingly volatile, and bond prices declined as yields pushed higher.
In recent months, however, several economic indicators have begun to suggest
that the Fed's tightening strategy may be having the desired effect of slowing
the economy. Although the Fed has said it is too early to conclude that the risk
of inflation is over, these positive trends could mean that the tightening cycle
may be nearing its end. Investors continue to hope that the Fed successfully
engineers a soft landing for the U.S. economy.
During the period under review, Arizona's economy continued to steam ahead at
the second fastest pace in the nation (after Nevada), propelled by rapid job
growth in the technology sector and continued population growth. Much of the
employment increase within the high-tech sector stemmed from semiconductor
manufacturing, the Internet, and business services. This expansion is expected
to continue, as technology firms plan to add thousands of jobs to the Arizona
economy, especially in the Phoenix area. The state also benefited from
increasing amounts of venture capital, which led to strong employment gains in
communications as well as business services. As of July 2000, the unemployment
rate in Arizona was 3.6%, down from 4.4% in July 1999 and below the national
average of 4.0%.
While a tight labor market has slowed employment growth in many other states,
Arizona's rapidly expanding population has served to offset potential labor
shortage problems. Since 1996, the state's population has grown at nearly four
times the national rate, as both retirees and younger people continued to find
Arizona attractive. This, in turn, has stimulated demand for housing and
services in the state. Despite the overall economic growth, Arizona's per capita
income levels continued to lag slightly behind the national average, due in part
to the fixed incomes of the large retiree population. Although growth could slow
slightly in the near term, Arizona is expected to remain one of the fastest
growing states in the nation, fueled by the continued growth of Internet-related
industries and strong infusions of venture capital. Overall, the economic
prosperity of the past decade has benefited the balance sheets of many local
governments in Arizona as well as the state itself. Tax receipts have generally
exceeded budget projections, putting municipalities in the best financial shape
in years while reducing credit concerns.
HOW HAVE THESE EVENTS IMPACTED THE MUNICIPAL MARKET?
In general, the cumulative effects of the economic events of the past 12 months
were negative for the fixed-income markets, including municipal bonds. The Fed's
six interest rate hikes pushed municipal yields higher, with a corresponding
drop in municipal bond prices. During this period, the U.S. Treasury announced
that it would buy back up to $30 billion of government debt in 2000 and reduce
additional new issuance of certain maturities. The possibility of decreased
supply in the Treasury market helped support the prices of these securities.
Municipal bonds, on the other hand, were
<PAGE>
unaffected by this repurchase policy and felt the full effects of market forces.
Over the 12 months ended July 2000, long-term municipal yields nationally rose
20 basis points, while 30-year Treasury yields dropped 30 basis points. This
resulted in long-term municipal yields that were more than 101% of 30-year
Treasury yields as of July 31, 2000, compared with the historical average of 86%
for the period 1986-1999.
During the first seven months of 2000, new municipal issuance nationwide fell
20% from 1999 levels, as higher interest rates deterred municipalities from
issuing new bonds and refinancing older debt. Arizona's year-to-date issuance
also declined, but not as severely as the broad municipal market. Arizona's
total of $1.4 billion of new bonds was down only 6% from the first seven months
of 1999. Arizona is among the smaller states in terms of total municipal
issuance, due in part to the fact that the state government is restricted from
issuing general obligation bonds. Instead, the state relies on leases and
pay-as-you-go financing to fund capital improvements.
Overall, the decline in supply helped to offset some of the negative impact that
higher interest rates and equity market activity had on the demand for municipal
bonds and, ultimately, on bond prices. Over the past six months, demand from
individual investors looking for diversification and income has improved,
providing support for a municipal market experiencing a decline in demand from
institutional investors, particularly mutual and money market funds. More
recently, the combination of tight supply, encouraging economic reports, the
Fed's stand-pat approach, and generally favorable market technicals have fueled
a rally in the municipal market and boosted the prices of many individual bonds,
with general obligation bonds, essential services revenue issues, and
noncallable bonds most in demand.
HOW WAS NAZ'S DIVIDEND AFFECTED BY THIS ENVIRONMENT?
One of the strategies NAZ uses in an effort to enhance the dividends paid to
common shareholders is leverage. The extent of this benefit, however, is tied in
large degree to the short-term rates the Fund pays its MuniPreferred(R)
shareholders. When short-term rates rise, the Fund must pay out more income to
preferred shareholders, decreasing the amount of income available for common
shareholders. As noted, the Federal Reserve raised short-term rates six times
between June 1999 and May 2000. As higher short-term rates had a corresponding
impact on short-term municipal rates, NAZ's common share dividend was decreased
in June 2000.
OVERALL, HOW DID NAZ PERFORM OVER THE PAST YEAR?
For the fiscal year ended July 31, 2000, NAZ produced a total return on net
asset value (NAV) as shown in the accompanying table. For comparison
purposes,the annual returns for the Lehman Brothers Municipal Bond Index1 and
appropriate Lipper Peer Group2 are also presented.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
-------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
7/31/00 EQUIVALENT3 7/31/00 7/31/00 7/31/00
-------------------------------------------------------------------
NAZ 5.58% 8.52% 1.61% 4.31% 2.10%
-------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for NAZ in
this report.
In recent months, as inflation fears continued to diminish, the prices of
individual securities in the Fund began to show signs of recovery. Overall,
however, the past 12 months were a period of rising interest rates. In this
environment, NAZ's duration4 contributed to the relative underperformance of the
Fund's total return on NAV compared with the Lehman Brothers Municipal Bond
Index. Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. NAZ is a leveraged Fund, which, as noted, can enhance the
dividends paid to common shareholders. However, leverage also has the effect of
lengthening a Fund's duration. In addition, Fund durations are often lengthened
as we implement strategies to maintain or improve call protection within a
portfolio.
As of July 31, 2000, NAZ's duration was 9.91, compared with the unleveraged
Lehman index's 7.50. We believe the longer duration and call protection of this
Fund should help to strengthen the relative stability of its common share
dividend over the long term and position the Fund to benefit from any market
recovery.
WHAT ABOUT NAZ'S SHARE PRICE PERFORMANCE?
Over the past 12 months, the uncertainty of the economic environment, coupled
with investors' focus on equity market performance, tended to dampen interest in
most fixed-income products. This lack of demand put pressure
1 The performance of NAZ is compared with that of the national Lehman
Brothers Municipal Bond Index, an unleveraged index comprising a broad
range of investment-grade municipal bonds. Results for the Lehman index do
not reflect any expenses.
2 The Fund's total return is compared with the average annualized return of
the 19 funds in the Lipper Other States Municipal Debt Funds category. Fund
and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a combined federal and state income tax
rate of 34.5%.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Fund and therefore is generally longer than
the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
<PAGE>
on the prices of many municipal bond investments, including NAZ. As shown in the
chart on NAZ's Performance Overview page, the Fund's share price declined over
the past year. Since the decline in share price was greater than the decline in
the Fund's NAV, NAZ saw its premium (share price above NAV) narrow over the past
12 months. In our opinion, the fact that NAZ continued to trade at a premium
despite the challenging bond market of the past 12 months demonstrates the
market's recognition of the value of an investment in this Fund.
WHAT KEY STRATEGIES WERE USED TO MANAGE NAZ DURING THE 12 MONTHS ENDED JULY 31,
2000?
The past 12 months represented a challenging period for all fixed-income
investments. However, we were able to take advantage of market conditions during
this period to strengthen NAZ's long-term dividend-paying capabilities, extend
the Fund's call protection, and enhance tax efficiency by offsetting potential
capital gains with capital losses.
One purchase over the past year involved Maricopa County Education Facility
bonds to support a charter school project. These bonds, which were classified as
Baa3/non-rated, offered approximately 100 basis points of incremental yield
compared with similarly structured AAA bonds. Since charter schools are an
important part of the educational system in Arizona, these types of bonds
historically have been well supported by the issuing agencies. To fund purchases
such as this, we sold prerefunded or short call bonds at attractive prices that
are favored by retail investors.
From a sector perspective, we continued to carefully watch the healthcare
industry, which has been under considerable pressure from consolidation,
reimbursement issues, and financial constraints. In our opinion, these
conditions created several opportunities to purchase bonds from relatively
strong issuers within the healthcare sector that carried very attractive prices
relative to our estimation of their true underlying value. Over the past 12
months, we increased the Fund's healthcare exposure to 14% from 12%. This is an
area where we rely on our research analysts for expert assessments, both on an
industry and individual issuer level.
As of July 31, 2000, NAZ offered excellent credit quality, with 80% of its
portfolio invested in bonds rated AAA/U.S. guaranteed and AA. The Fund's high
allocation of AAA and AA securities enabled us to explore opportunities to
enhance income by adding bonds from the lower credit quality groupings. At the
end of July, NAZ had a 12% allocation of BBB and non-rated bonds, up from 8% a
year ago. Additions in this area included the previously mentioned Maricopa
County education bonds as well as pollution control revenue bonds issued by
Coconino County for a Nevada Power Company project.
WHAT IS YOUR OUTLOOK FOR NAZ?
In terms of bond calls, NAZ currently offers excellent levels of call
protection, with no scheduled calls until 2002. In November 2002, NAZ will reach
its 10-year anniversary, which means that the Fund will begin to see the
increased potential for calls. We already have begun to implement strategies
designed to reduce the Fund's call exposure over this period, taking advantage
of the market conditions of the past 12 months to eliminate approximately 6% of
the portfolio scheduled to be called in 2002. As of July 31, 2000, NAZ's
potential call exposure for 2002 stands at 16%. We plan to continue to actively
manage the Fund in an effort to mitigate the longer-term effects of the bond
call process, using strategies such as selling bonds with short calls,
evaluating each sale on a case-by-case basis in light of market conditions at
the time. We will also continue to closely monitor the market for opportunities
to add bonds that extend call protection.
Going forward, we plan to focus on the same strategies that we have emphasized
over the past year, including strengthening dividend-payment capabilities and
enhancing the structure of the Fund. We believe the resurgence in demand for
individual bonds on the part of retail investors could eventually have a
favorable impact on the demand for bond funds, benefiting their share prices.
Overall, we expect the market to continue to work its way through the current
period of uncertainty, which may last beyond the fall elections. Opportunities
often arise in these types of markets, and we are ready to take advantage of
developing situations. We believe NAZ continues to be well positioned to provide
attractive income and a measure of portfolio diversification that can be a
valuable benefit to investors now and in the years ahead.
<PAGE>
NAZ
Nuveen Arizona Premium Income Municipal Fund, Inc.
Performance OVERVIEW As of July 31, 2000
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 11/92
--------------------------------------------------
Share Price $14 5/8
--------------------------------------------------
Net Asset Value $14.25
--------------------------------------------------
Market Yield 5.58%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.09%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.52%
--------------------------------------------------
Fund Net Assets ($000) $92,287
--------------------------------------------------
Average Effective Maturity (Years) 17.87
--------------------------------------------------
Leverage-Adjusted Duration 9.91
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -8.80% 1.61%
--------------------------------------------------
5-Year 7.14% 5.91%
--------------------------------------------------
Since Inception 5.26% 5.85%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S.Guaranteed 21%
--------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Utilities 13%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
Bar Chart:
1999-2000 Monthly Tax-Free Dividends Per Share2
8/99 0.0705
9/99 0.0705
10/99 0.0705
11/99 0.0705
12/99 0.0705
1/00 0.0705
2/00 0.0705
3/00 0.0705
4/00 0.0705
5/00 0.0705
6/00 0.068
7/00 0.068
Line Chart:
Share Price Performance
8/6/99 16.75
16.625
16.56
16.25
16.25
16.25
15.94
15.5
15.56
15.56
15.38
15.31
15.38
15.44
15.19
15.25
15.19
14.88
14.5
14.13
13.88
13.94
13.69
13.75
14.06
14.38
14.25
14.06
14.06
14.06
14
13.81
13.81
13.75
13.94
13.88
13.94
13.94
14.19
14.13
13.94
14.13
14.38
14.5
14.44
14.38
14.31
14.5
14.5
14.56
14.63
7/31/00 14.625
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%. The rate shown for federal and state highlights the added value of
owning shares that also are exempt from state income taxes. It is based on
a combined federal and state income tax rate of 34.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 1999 of $0.0131 per share.
<PAGE>
Nuveen Michigan Exchange-Traded Funds (NUM NMP)
Portfolio Manager's COMMENTS
Portfolio manager Mike Davern looks at the state economy, its impact on the
municipal market and recent Fund performance, and the outlook for the Nuveen
Michigan Exchange-Traded Funds. Mike, who has more than 17 years of experience
as an investment professional, including eight years with Nuveen, has managed
NUM and NMP since 1998.
WHAT FACTORS AFFECTED THE ECONOMY OVER THE PAST 12 MONTHS?
To gain some perspective on what's been happening in Michigan, let's first take
a look at the national economy. The U.S. is now well into its tenth year of
uninterrupted economic expansion, the longest continuous such expansion in the
nation's history. The rapid pace of this expansion has been of great concern to
the Federal Reserve, which continued to watch carefully for any resurgence of
inflation. To pre-empt this threat, the Fed in June 1999 began a series of six
short-term interest rate increases that, by May 2000, had raised the federal
funds target rate from 4.75% to 6.50%, the highest level in almost a decade. As
the Fed signaled its willingness to continue tightening as long as it perceived
the risk of inflationary pressures, investor uncertainty grew, the equity
markets became increasingly volatile, and bond prices declined as yields pushed
higher.
In recent months, however, several economic indicators have begun to suggest
that the Fed's tightening strategy may be having the desired effect of slowing
the economy. Although it is too early to conclude that the risk of inflation is
over, these positive trends could mean that the tightening cycle may be nearing
its end.
During the period under review, Michigan's economy continued to expand, although
at a more moderate pace than national averages. The state's manufacturing
sector, especially auto manufacturing, remained - and is expected to remain -
the anchor of the Michigan economy. Although the state benefited from increasing
diversification within the manufacturing sector as a whole, growing efficiency
in the auto manufacturing process led to a number of job cuts in this industry.
Michigan responded with an effort to attract more auto research and development
companies to the state, creating additional high-tech jobs and increasing the
demand for skilled workers. As of July 2000, the unemployment rate in Michigan
was 3.5%, on par with July 1999's figure of 3.4% and below the national average
of 4.0%.
Michigan's efforts to attract new companies have been somewhat hampered by the
state's high cost of doing business, which is currently above the national
average. In an attempt to enhance its competitive position, the state has
instituted aggressive economic initiatives and plans to gradually phase out the
state's single business tax. In the near term, Michigan's economy is expected to
continue to show moderate growth, with job growth led by the construction and
service industries.
HOW HAVE THESE EVENTS IMPACTED THE MUNICIPAL MARKET?
In general, the cumulative effects of the economic events of the past 12 months
were negative for the fixed-income markets, including municipal bonds. The Fed's
six interest rate hikes pushed municipal yields higher, with a corresponding
drop in municipal bond prices. During this period, the U.S. Treasury announced
that it would buy back up to $30 billion of government debt in 2000 and reduce
additional new issuance of certain maturities. The possibility of decreased
supply in the Treasury market helped support the prices of these securities.
Municipal bonds, on the other hand, were unaffected by this repurchase policy
and felt the full effects of market forces. Over the 12 months ended July 2000,
long-term municipal yields nationally rose 20 basis points, while 30-year
Treasury yields dropped 30 basis points. This resulted in long-term municipal
yields that were more than 101% of 30-year Treasury yields, compared with the
historical average of 86% for the period 1986-1999.
<PAGE>
During the first seven months of 2000, new municipal issuance nationwide fell
20% from 1999 levels. The decline in Michigan's issuance for this period
exceeded that of the broad municipal market. Michigan's total of $2.3 billion
was down 25% from the first seven months of 1999. This decline continued the
trend begun last year, as rising interest rates deterred municipalities from
issuing new bonds or refinancing old debt.
The decline in supply helped to offset some of the negative impact that higher
interest rates and equity market activity had on the demand for municipal bonds
and, ultimately, on bond prices. Over the past six months, demand from
individual investors looking for diversification and income has improved,
providing support for a municipal market experiencing a decline in demand from
institutional investors, particularly mutual and money market funds. More
recently, the combination of tight supply, encouraging economic reports, the
Fed's stand-pat approach, and generally favorable market technicals rallied the
municipal market and boosted the prices of many individual bonds, with general
obligation bonds, essential services revenue issues, and noncallable bonds most
in demand.
Overall, the economic prosperity of the past decade benefited the balance sheets
of many municipalities, including the city of Detroit. In May, Fitch upgraded
the credit quality rating for Detroit to A from A-, citing the city's improved
fiscal management and economic resurgence. The state of Michigan maintained its
rating of Aa1/AA+/AA+ by Moody's, Standard & Poor's and Fitch.
WERE THE DIVIDENDS OF THE NUVEEN MICHIGAN FUNDS AFFECTED BY THIS ENVIRONMENT?
Both Michigan Funds use leverage in an effort to enhance the dividends paid to
common shareholders. The extent of this benefit, however, is tied in large part
to the short-term rates the Funds pay their MuniPreferred, shareholders. As
short-term rates rise, the income available for common shareholder dividends
decreases. As noted, the Federal Reserve raised short-term rates six times
between June 1999 and May 2000, and these actions had a corresponding impact on
short-term municipal rates. Higher rates, combined with the eroding effect of a
number of bond calls, led to a decrease in the common share dividend of NUM in
June 2000. For NMP, however, good call protection helped reduce forced turnover
and helped this Fund maintain its dividend over the past 12 months. As of July
31, 2000, NMP had provided shareholders with 63 consecutive months of steady or
increasing dividends. Although we cannot control the direction of interest
rates, we will continue to actively manage both Funds in an effort to mitigate
the longer-term effects of the bond call process.
OVERALL, HOW DID THE FUNDS PERFORM OVER THE PAST YEAR?
For the fiscal year ended July 31, 2000, the Nuveen Michigan Exchange-Traded
Funds produced total returns on net asset value (NAV) as shown in the
accompanying table. For comparison purposes, the annual returns for the Lehman
Brothers Municipal Bond Index1 and appropriate Lipper Peer Group2 are also
presented.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
---------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
7/31/00 EQUIVALENT3 7/31/00 7/31/00 7/31/00
---------------------------------------------------------------------------
NUM 6.30% 9.55% 2.51% 4.31% 2.37%
---------------------------------------------------------------------------
NMP 6.25% 9.47% 2.95% 4.31% 2.37%
---------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
In recent months, as inflation fears continued to diminish, the prices of
individual securities held by the Michigan Funds began to show signs of
recovery. Overall, however, the past 12 months were a period of rising interest
rates. In this environment, the Funds' durations4 contributed to the relative
underperformance of their total returns on NAV compared with the Lehman Brothers
Municipal Bond Index. Duration is a measure of a Fund's NAV volatility in
reaction to interest rate movements. Both NUM and NMP are leveraged Funds,
which, as noted, can enhance the dividends paid to common shareholders. However,
leverage also has the effect of lengthening Fund duration. In addition,
durations are often lengthened as we implement strategies to maintain or improve
call protection within a portfolio.
As of July 31, 2000, the durations of NUM and NMP were 10.21 and 12.22,
respectively, compared with the unleveraged Lehman Index's 7.50. We believe the
longer durations of these Funds should help to strengthen the relative stability
of their common share dividends over the long term and position the Funds to
benefit from any market recovery.
1 The performance of NUM and NMP is compared with that of the national Lehman
Brothers Municipal Bond Index, an unleveraged index comprising a broad
range of investment-grade municipal bonds. Results for the Lehman index do
not reflect any expenses.
2 The Funds' total returns are compared with the average annualized return of
the four funds in the Lipper Michigan Municipal Debt Funds category. Fund
and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a combined federal and state income tax
rate of 34%.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Fund and therefore is generally longer than
the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
<PAGE>
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
Over the past 12 months, the uncertainty of the economic environment, coupled
with investors' focus on equity market performance, tended to dampen interest in
most fixed-income products. This lack of demand put pressure on the prices of
many municipal bond investments, including the Nuveen Michigan Funds. As shown
in the charts on the individual Performance Overview pages, the Funds' share
prices declined over the past year. Since the declines in share price were
greater than the declines in the Funds' NAVs, NUM and NMP saw their premiums
(share price above NAV) move to discounts (share price below NAV) over the past
12 months. With the market prices of these Funds lower than the actual value of
the bonds in their portfolios, shareholders may want to consider taking
advantage of this opportunity to add to their holdings of NUM and NMP.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN MICHIGAN EXCHANGE-TRADED
FUNDS DURING THE FISCAL YEAR ENDED JULY 31, 2000?
The past 12 months represented a challenging period for all fixed-income
investments. However, we were able to take advantage of market conditions during
this period to strengthen the Funds' long-term dividend-paying capabilities,
extend call protection, and enhance tax efficiency by offsetting potential
capital gains with capital losses.
As active managers during this time of tight supply, we relied on our extensive
network of broker/dealer relationships to help us find the well-structured bonds
that have the potential to add value for our shareholders. Over the past 12
months, we used 20 different broker/ dealers to purchase bonds for NUM, while 13
dealers provided bonds for NMP. Among the bonds added to NMP were water and
sewer issues that enhanced the Fund's call protection and improved its
structure. These included insured bonds issued by the Detroit Sewage Disposal
System that have subsequently performed well. Overall, the water and sewer
sector has one of the lowest default rates in the municipal market, and these
strong credit characteristics led to our increasing NMP's allocation to this
sector to 14% from 7% a year ago.
We also continued to keep a careful watch on Michigan's healthcare sector, which
has been under considerable pressure from consolidation, reimbursement issues,
and financial constraints. In our opinion, these conditions created several
opportunities to purchase bonds of strong healthcare systems that carried very
attractive prices relative to our estimation of their true underlying value.
Over the past 12 months, we took advantage of these opportunities to increase
NUM's healthcare allocation to 10% from 7%. We also maintained NMP's healthcare
weighting at 20%, the largest sector allocation in this Fund. With potential
changes in reimbursement procedures on the horizon and signs of improving
stability in selected healthcare credits, this is an area where we rely on
Nuveen research analysts for expert assessments, both on an industry and
individual issuer level.
As of July 31, 2000, NUM and NMP offered excellent credit quality, with 92% and
88% of their portfolios, respectively, invested in bonds rated AAA/U.S.
guaranteed and AA. NUM also had a 3% allocation of BBB bonds, while NMP carried
a 7% allocation of this credit sector.
WHAT IS YOUR OUTLOOK FOR THE NUVEEN MICHIGAN FUNDS?
In terms of bond calls, NMP currently offers excellent levels of call
protection, with only 18% of its portfolio subject to calls between now and the
end of 2002. NUM also is well protected for the remainder of 2000, with no
scheduled calls over the next five months. However, this Fund, which reaches its
10-year anniversary in October 2001, will soon begin to see an increased
potential for calls. Over 2001 and 2002, as much as 47% of NUM's portfolio could
be called. We plan to manage through this period using strategies such as
selling bonds with short calls, evaluating each sale on a case-by-case basis in
light of market conditions at the time. We will also continue to closely monitor
the market for opportunities to add bonds that extend call protection.
Going forward, we plan to focus on the same strategies that we have emphasized
over the past year, including strengthening dividend-payment capabilities. The
port-folio turnover in NUM due to bond calls should provide us with several
opportunities to enhance the structure of this Fund. Overall, we expect the
market to continue to work its way through the current period of uncertainty,
which may last beyond the fall elections. Opportunities often arise in these
types of markets, and we are ready to take advantage of developing situations.
We believe both NUM and NMP continue to be well positioned to provide attractive
income and a measure of portfolio diversification that can be a valuable benefit
to investors now and in the years ahead.
<PAGE>
NUM
Nuveen Michigan Quality Income Municipal Fund, Inc.
Performance OVERVIEW As of July 31, 2000
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 10/91
--------------------------------------------------
Share Price $14
--------------------------------------------------
Net Asset Value $14.54
--------------------------------------------------
Market Yield 6.30%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.13%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.55%
--------------------------------------------------
Fund Net Assets ($000) $261,429
--------------------------------------------------
Average Effective Maturity (Years) 17.82
--------------------------------------------------
Leverage-Adjusted Duration 10.21
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -9.92% 2.51%
--------------------------------------------------
5-Year 5.20% 5.81%
--------------------------------------------------
Since Inception 5.60% 7.00%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Tax Obligation/General 23%
--------------------------------------------------
U.S. Guaranteed 22%
--------------------------------------------------
Utilities 15%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Water and Sewer 8%
--------------------------------------------------
Bar Chart:
1999-2000 Monthly Tax-Free Dividends Per Share2
8/99 0.0765
9/99 0.0765
10/99 0.0765
11/99 0.0765
12/99 0.0765
1/00 0.0765
2/00 0.0765
3/00 0.0765
4/00 0.0765
5/00 0.0765
6/00 0.0735
7/00 0.0735
Line Chart:
Share Price Performance
8/6/99 16.56
16.4375
16.38
16.38
16.5
16.25
15.75
15.31
15.31
15.25
14.69
14.31
14.38
14.38
14.06
14.13
14.06
13.75
12.81
13.06
12.69
13.06
13.06
12.81
13.13
13.5
13.19
13.13
13.25
13.19
13.19
13.13
13.06
13
13.63
13.56
13.31
13.81
13.63
13.56
13.5
13.63
13.81
13.56
13.56
13.56
13.94
14
14.13
13.75
13.75
7/31/00 14
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%. The rate shown for federal and state highlights the added value of
owning shares that also are exempt from state income taxes. It is based on
a combined federal and state income tax rate of 34%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 1999 of $0.0799 per share.
<PAGE>
NMP
Nuveen Michigan Premium Income Municipal Fund, Inc.
Performance OVERVIEW As of July 31, 2000
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 12/92
--------------------------------------------------
Share Price $13 1/4
--------------------------------------------------
Net Asset Value $14.24
--------------------------------------------------
Market Yield 6.25%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.06%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.47%
--------------------------------------------------
Fund Net Assets ($000) $165,565
--------------------------------------------------
Average Effective Maturity (Years) 18.43
--------------------------------------------------
Leverage-Adjusted Duration 12.22
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -6.16% 2.95%
--------------------------------------------------
5-Year 8.18% 6.45%
--------------------------------------------------
Since Inception 4.28% 5.86%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Healthcare 20%
--------------------------------------------------
Tax Obligation/Limited 18%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
Water and Sewer 14%
--------------------------------------------------
Tax Obligation/General 11%
--------------------------------------------------
Bar Chart:
1999-2000 Monthly Tax-Free Dividends Per Share
8/99 0.069
9/99 0.069
10/99 0.069
11/99 0.069
12/99 0.069
1/00 0.069
2/00 0.069
3/00 0.069
4/00 0.069
5/00 0.069
6/00 0.069
7/00 0.069
Line Chart:
Share Price Performance
8/6/99 15
14.75
14.63
14.44
14.44
14.31
14.13
14.06
14.13
14
13.63
13.31
13.25
13.63
13.31
13.13
12.75
12.88
12.06
12.13
11.94
12.13
12.06
11.69
12.19
12.5
12.19
12
12.13
12.25
12
11.81
11.94
12.06
12.25
12.25
12.25
12.25
12.38
12.19
12.19
12.25
12.56
12.81
12.94
12.75
12.75
13
13.25
13.13
13.13
7/31/00 13.25
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%. The rate shown for federal and state highlights the added value of
owning shares that also are exempt from state income taxes. It is based on
a combined federal and state income tax rate of 34%.
<PAGE>
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio Manager's COMMENTS
Portfolio manager Tom Futrell examines national and state economic conditions,
their impact on the municipal market and Fund performance, and the outlook for
the Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO). Tom, who has more
than 17 years of experience as an investment professional at Nuveen, has managed
NUO since 1998.
WHAT FACTORS AFFECTED THE STATE ECONOMY OVER THE PAST 12 MONTHS?
A brief look at the national economy will help us gain a better perspective on
Ohio's situation. Over the past 12 months, the rapid pace of the decade-long
U.S. economic expansion continued to be of immense concern to the Federal
Reserve, which remained on alert for any signs of re-emerging inflation. In June
1999, the Fed to begin a series of six short-term interest rate increases that
eventually raised the federal funds rate by 1.75% to 6.50% in May 2000. As the
Fed acted and then kept the door open for additional tightenings, investor
uncertainty grew, the equity markets became increasingly volatile, and bond
prices declined as yields moved higher.
During the past three months, however, we have begun to see some signs that the
Fed's tightening strategy may be having the desired effect. While it is still
too early to conclude that the economy has slowed enough to avoid all risk of
inflation, a number of indicators suggest that the tightening cycle may be near
an end. In the coming months, investors will be closely watching economic
reports for continued confirmation of a slowdown, in hopes that the economy may
truly be headed for a soft landing.
During the past 12 months, Ohio's economy continued to lag national growth
averages due to slowing construction activity and labor shortages brought on by
continued population losses and a tightening job market. Over the year, the
state's labor pool contracted considerably, with an unemployment rate of 4.1%
for July 2000, down from 4.6% in July 1999 but still above the national average
of 4.0%. While Ohio has seen some growth in the trade and service industries,
the state remains heavily reliant on manufacturing. The majority of the Ohio
economy is centered around its three major metropolitan areas of Columbus,
Cincinnati, and Cleveland, which now account for approximately 50% of Ohio's
population and income. Unlike much of the state, both Columbus and Cincinnati
have strong, diverse economies that are projected to continue to grow faster
than the overall state economy. However, economic growth has not been as robust
in the Cleveland area. The city has made some strides in business development
initiatives in the downtown area, which have led to expansion of its tax base
and new jobs. Despite this recent improvement, employment growth in Cleveland
remained below state averages.
HOW HAVE THESE EVENTS IMPACTED THE MUNICIPAL MARKET?
The cumulative effects of the economic events of the past 12 months were
generally negative for the fixed-income markets, including municipal bonds. Once
the Fed began its series of interest rate hikes, municipal yields responded by
moving higher, accompanied by a corresponding decline in prices. During this
period, the U.S. Treasury announced plans to buy back up to $30 billion of
government debt in 2000 and reduce additional new issuance of certain
maturities. The possibility of decreased supply in this market helped to support
the prices of U.S. Treasuries. Municipal bonds, on the other hand, were
unaffected by the repurchase policy and felt the full effects of market forces.
Over the 12 months ended July 2000, long-term municipal yields nationally rose
20 basis points, compared with a 30-point decline in 30-year Treasury yields. As
a result, long-term municipal yields were over 101% of 30-year Treasury yields
at the end of July 2000, compared with the historical average of 86% for the
period 1986-1999.
During the first seven months of 2000, higher interest rates led to fewer new
issues and refinancings nationwide, and new municipal issuance dropped 20% from
the same period in 1999. The decline in Ohio issuance
<PAGE>
was even more pronounced, as new supply in the state during the January-July
2000 period totaled $2.9 billion, down 32% from 1999 levels. Tight supply helped
to offset some of the negative impact of higher interest rates and equity market
activity. In addition, demand for state-exempt paper by individual investors
remained strong due to Ohio's high income taxes. Over the past six months, this
demand provided support for a municipal market experiencing a decline in demand
from institutional investors, particularly mutual and money market funds. More
recently, the combination of declining supply, encouraging economic reports, the
Fed's stand-pat approach, and generally favorable market technicals rallied the
municipal market and boosted the prices of many individual bonds, with general
obligation bonds, essential services revenue issues, and noncallable bonds most
in demand.
Overall, the economic prosperity of the past decade increased tax receipts and
benefited many of the state's municipalities, including Cleveland. Just after
the close of the period covered in this report, Standard & Poor's upgraded the
city's credit quality rating to A from A-. The state of Ohio maintained its
credit rating at Aa1/AA+/AA+ by Moody's, Standard & Poor's and Fitch.
WAS NUO'S DIVIDEND AFFECTED BY THIS ENVIRONMENT?
Over the past 12 months, a number of calls, combined with the impact of higher
short-term interest rates on leveraged funds, affected the income stream of NUO
and resulted in a dividend decrease in June 2000. Prior to this adjustment,
NUO's record of steady or increasing dividends had extended to 101 consecutive
months.
Leverage is a strategy we use in an effort to enhance the dividends paid to
common shareholders. However, the extent of this benefit is tied in large part
to the short-term rates the Fund pays its MuniPreferred shareholders. As
short-term rates rise, the income available for common shareholder dividends
decreases. As noted, the Federal Reserve raised short-term rates six times
between June 1999 and May 2000, and these actions had a corresponding impact on
short-term municipal rates. If short-term rates remain at recent high levels,
this may continue to exert an influence on the Fund's common share dividends in
the future. While we can-not control the direction of interest rates, we
continue to actively manage NUO in an effort to mitigate the longer-term effects
of the bond call process on the Fund's dividends.
OVERALL, HOW DID NUO PERFORM OVER THE PAST YEAR?
For the fiscal year ended July 31, 2000, NUO produced a total return on net
asset value (NAV) as shown in the accompanying table. For comparison purposes,
the annual returns for the Lehman Brothers Municipal Bond Index1 and appropriate
Lipper Peer Group2 are also presented.
Total Return Lehman Lipper
Market Yield on NAV Total Return1 Average2
-------------------------------------------------------------------------------
1 Year 1 Year 1 Year
Taxable- Ended Ended Ended
7/31/00 Equivalent3 7/31/00 7/31/00 7/31/00
-------------------------------------------------------------------------------
NUO 5.56% 8.69% 2.50% 4.31% 2.10%
-------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for NUO in
this report.
In recent months, as economic reports indicated a potential slowdown and
inflation fears continued to diminish, the prices of individual securities in
the Fund began to show signs of recovery. Overall, however, the past 12 months
were a period of rising interest rates. In this environment, NUO's duration,4 or
measure of the Fund's NAV volatility in reaction to interest rate movements, was
a contributing factor in the relative underperformance of the Fund's total
return on NAV compared with the Lehman Brothers Municipal Bond Index. NUO is a
leveraged Fund, which, as noted, can enhance the dividends paid to common
shareholders. However, leverage also has the effect of lengthening Fund
duration. In addition, durations are often lengthened as we implement strategies
to maintain or improve call protection within a portfolio.
WHAT ABOUT NUO'S SHARE PRICE PERFORMANCE?
Over the past 12 months, the uncertainty of the economic environment, coupled
with investors' focus on equity market performance, tended to dampen interest in
most fixed-income products. The lack of demand put pressure on the prices of
many municipal bond investments, including NUO. As shown in the chart on NUO's
individual Performance Overview page, the Fund's share price declined over the
past year. This decline in share price was greater than the decline in the
Fund's NAV. As a result, over the past year, NUO saw its premium (share price
above NAV) narrow. We believe the fact that NUO continued to trade at a premium
despite the challenging bond market of the past 12 months demonstrates the
market's recognition of the value of an investment in this Fund.
1 NUO's performance is compared with that of the national Lehman Brothers
Municipal Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 The Fund's total return is compared with the average annualized return of
the 19 funds in the Lipper Other States Municipal Debt Funds category. Fund
and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a combined federal and state income tax
rate of 36%.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Fund and therefore is generally longer than
the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
<PAGE>
WHAT KEY STRATEGIES WERE USED TO MANAGE NUO DURING THE FISCAL YEAR ENDED JULY
31, 2000?
Like all fixed-income investments, NUO has endured a challenging 12 months. The
decline in new issuance supply in the Ohio market acted to compound this
situation. Overall, however, market conditions during this period offered
opportunities to improve NUOstructure, strengthen the Fund's long-term
dividend-paying capabilities, and enhance tax efficiency by offsetting potential
capital gains with capital losses.
During the past year, we focused on judicious trading designed to add income and
enhance structure. Our ability to carry out trades and take advantage of
opportunities despite the tight supply situation was enhanced by our excellent
relationships with dealers in the state. Over the past 12 months, we focused on
selling bonds at attractive prices that were in demand by individual investors,
including current coupon bonds, issues with short calls, and bonds that were
priced near par. Among the bonds we added to the portfolio were multifamily
housing bonds, raising our allocation in this sector to 12% from 8% a year ago,
and general obligation school district bonds that offered incremental yield and
lower price volatility.
We also continued to keep a careful eye on Ohio's healthcare sector, which has
been under pressure as hospitals adjust to consolidation and tighter federal
reimbursement guidelines. This has resulted, in our opinion, in selected
opportunities to purchase bonds from strong issuers that carried very attractive
prices relative to our estimation of their underlying value. Over the past 12
months, we added stable, high-quality hospital bonds with A ratings that offered
100 basis points of yield over AAA bonds. This is an area where we rely on
Nuveen research analysts for expert assessments, both on an industry and
individual issuer level.
As of July 31, 2000, NUO offered excellent credit quality, with 85% of its
portfolio invested in bonds rated AAA/U.S. guaranteed and AA. The Fund also had
an 11% allocation of BBB and non-rated bonds.
WHAT IS YOUR OUTLOOK FOR NUO?
In terms of bond calls, NUO is well protected for the remainder of 2000, with
only 2% of its portfolio subject to calls. However, this Fund, which reaches its
10-year anniversary in October 2001, will soon begin to see the increased
potential for calls. Over 2001 and 2002, approximately 41% of NUO's portfolio
could be called. We plan to manage through this period using strategies such as
selectively selling bonds with short calls, which we have already begun to do.
We will also continue to closely monitor call activity in an effort to take
advantage of opportunities to add bonds that extend call protection.
Basically, NUO is a well-structured portfolio offering high levels of credit
quality and attractive yields. In the months ahead, we plan to focus on the same
strategies that we have emphasized over the past year, selling bonds at
attractive prices and buying bonds that improve current income or long-term
return potential. Because of NUO's relatively small size, even modestly
successful execution of these strategies can have a major impact on the Fund's
long-term prospects. We believe that NUO continues to provide an attractive
investment option for Ohio residents. In our opinion, the Fund is well
positioned for the short term as well as for any potential recovery of the bond
market in the long term.
<PAGE>
NUO
Nuveen Ohio Quality Income Municipal Fund, Inc.
Performance OVERVIEW As of July 31, 2000
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 10/91
--------------------------------------------------
Share Price $16 5/8
--------------------------------------------------
Net Asset Value $15.52
--------------------------------------------------
Market Yield 5.56%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.06%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.69%
--------------------------------------------------
Fund Net Assets ($000) $224,045
--------------------------------------------------
Average Effective Maturity (Years) 14.99
--------------------------------------------------
Leverage-Adjusted Duration 7.97
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -1.80% 2.50%
--------------------------------------------------
5-Year 7.94% 6.45%
--------------------------------------------------
Since Inception 7.28% 7.46%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S. Guaranteed 25%
--------------------------------------------------
Tax Obligation/General 16%
--------------------------------------------------
Housing/Multifamily 12%
--------------------------------------------------
Healthcare 9%
--------------------------------------------------
Water and Sewer 9%
--------------------------------------------------
Bar Chart:
1999-2000 Monthly Tax-Free Dividends Per Share
8/99 0.082
9/99 0.082
10/99 0.082
11/99 0.082
12/99 0.082
1/00 0.082
2/00 0.082
3/00 0.082
4/00 0.082
5/00 0.082
6/00 0.077
7/00 0.077
Line Chart:
Share Price Performance
8/6/99 17.75
17.4375
17.25
17.25
17.44
17.06
16.81
16.56
16.38
16.19
15.94
15.63
15.63
15.75
15.94
15.88
15.69
15.5
15.44
15.31
15.13
15.5
15.38
15.44
15.5
16
15.94
15.5
15.38
15.5
15.44
15.44
15.63
16
15.81
15.88
15.63
15.56
15.69
15.75
15.69
15.56
15.94
15.75
15.75
15.88
15.88
16.13
16.31
16.25
16.63
7/31/00 16.625
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%. The rate shown for federal and state highlights the added value of
owning shares that also are exempt from state income taxes. It is based on
a combined federal and state income tax rate of 36%.
<PAGE>
Nuveen Texas Quality Income Municipal Fund (NTX)
Portfolio Manager's COMMENTS
Portfolio manager Mike Davern discusses the state economy, its impact on the
municipal market and recent Fund performance, and the outlook for the Nuveen
Texas Quality Income Municipal Fund (NTX). Mike, who has more than 17 years of
experience as an investment professional, including eight years with Nuveen, has
managed NTX since 1998.
WHAT FACTORS AFFECTED THE ECONOMY OVER THE PAST 12 MONTHS?
To gain some perspective on what's been happening in Texas, let's first take a
look at the national economy. The U.S. is now well into its tenth year of
uninterrupted economic expansion, the longest continuous such expansion in the
nation's history. The rapid pace of this expansion has been of great concern to
the Federal Reserve, which continues to watch carefully for any resurgence of
inflation. To pre-empt this threat, the Fed in June 1999 began a series of six
short-term interest rate increases that, by May 2000, had raised the federal
funds target rate from 4.75% to 6.50%, the highest level in almost a decade. As
the Fed signaled its willingness to continue tightening as long as it perceived
the risk of inflationary pressures, investor uncertainty grew, the equity
markets became increasingly volatile, and bond prices declined as yields pushed
higher.
In recent months, however, several economic indicators have begun to suggest
that the Fed's tightening strategy may be having the desired effect of slowing
the economy. Although it is too early to conclude that the risk of inflation is
over, these positive signals could mean that the tightening cycle may be nearing
its end.
Over the past 12 months, the Texas economy continued to diversify away from
energy-related industries into the services, construction, and technology
sectors. The services sector currently accounts for almost 30% of total
employment in Texas, while construction, fueled by the strong housing starts of
the past decade, has become the fastest growing sector in the state. In terms of
high-tech jobs, Texas is second only to California, and growth in this area
helped to offset recent volatility in the oil and gas sector. During the second
quarter of 2000, venture capitalists invested a record $1.1 billion in the
state, mostly in start-up technology firms. Statewide, job growth continued to
accelerate, especially in Houston and Dallas. As of July 2000, the unemployment
rate in Texas was 4.1%, down from 4.5% in July 1999 but slightly higher than the
national average of 4.0%. The resurgence of the Mexican economy also contributed
to the growth of the Texas economy, as state exports to that country increased
33% during the first quarter of 2000. The state's general economic health is
reflected in its credit quality ratings of Aa1/AA/AA+ by Moody's, Standard &
Poor's and Fitch.
HOW HAVE THESE EVENTS IMPACTED THE MUNICIPAL MARKET?
In general, the cumulative effects of the economic events of the past 12 months
were negative for the fixed-income markets, including municipal bonds. The Fed's
six interest rate hikes pushed municipal yields higher, with a corresponding
drop in municipal bond prices. During this period, the U.S. Treasury announced
that it would buy back up to $30 billion of government debt in 2000 and reduce
additional new issuance of certain maturities. The possibility of decreased
supply in the Treasury market helped support the prices of these securities.
Municipal bonds, on the other hand, were unaffected by this repurchase policy
and felt the full effects of market forces. Over the 12 months ended July 2000,
long-term municipal yields nationally rose 20 basis points, while 30-year
Treasury yields dropped 30 basis points. This resulted in long-term municipal
yields that were more than 101% of 30-year Treasury yields, compared with the
historical average of 86% for the period 1986-1999.
<PAGE>
During the first seven months of 2000, new municipal issuance nationwide fell
20% from 1999 levels. The year-to-date decline in Texas issuance exceeded that
of the broad municipal market, with a total of $7.3 billion of new Texas bonds,
down 29% from 1999. This decline continued the trend begun last year, as rising
interest rates deterred municipalities from issuing new bonds or refinancing old
debt.
The decline in supply helped to offset some of the negative impact that higher
interest rates and equity market activity had on the demand for municipal bonds
and, ultimately, on bond prices. Over the past six months, demand from
individual investors looking for diversification and income has improved,
providing support for a municipal market experiencing a decline in demand from
institutional investors, particularly mutual and money market funds. Although
the lack of a state income tax impacts in-state demand for Texas municipal
bonds, the current tight supply situation across the nation has attracted
yield-seeking buyers to Texas, offering additional support for the state's
municipal market. More recently, the combination of lack of supply, encouraging
economic reports, the Fed stand-pat approach, and generally favorable market
technicals rallied the municipal market and boosted the prices of many
individual bonds, with general obligation bonds, essential services revenue
issues, and noncallable bonds most in demand.
WAS NTX'S DIVIDEND AFFECTED BY THIS ENVIRONMENT?
One of the strategies NTX uses to potentially enhance the dividends paid to
common shareholders is leverage. The extent of this benefit, however, is tied in
large part to the short-term rates the Fund pays its MuniPreferred,
shareholders. When short-term rates rise, the income available for common
shareholder dividends decreases. As noted, the Federal Reserve raised short-term
rates six times between June 1999 and May 2000, and these actions had a
corresponding impact on short-term municipal rates. Higher rates, combined with
the effect of a small number of bond calls, led to a decrease in NTX's common
share dividend effective June 2000. Although we cannot control the direction of
interest rates, we will continue to actively manage the Fund in an effort to
mitigate the longer-term effects of the bond call process.
OVERALL, HOW DID NTX PERFORM OVER THE PAST YEAR?
For the fiscal year ended July 31, 2000, NTX produced a total return on net
asset value (NAV) as shown in the accompanying table. For comparison purposes,
the annual returns for the Lehman Brothers Municipal Bond Index1 and appropriate
Lipper Peer Group2 are also presented.
Lehman
Total Return Lehman Lipper
Market Yield on NAV Total Return1 Average2
-------------------------------------------------------------------------------
1 Year 1 Year 1 Year
Taxable- Ended Ended Ended
7/31/00 Equivalent3 7/31/00 7/31/00 7/31/00
-------------------------------------------------------------------------------
NTX 6.77% 9.81% 1.15% 4.31% 2.10%
-------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for NTX in
this report.
In recent months, as inflation fears continued to diminish, the prices of
individual securities in the Fund began to show signs of recovery. Overall,
however, the past 12 months were a period of rising interest rates. In this
environment, NTX's duration4 contributed to the relative underperformance of the
Fund's total return on NAV compared with the Lehman Brothers Municipal Bond
Index. Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. NTX is a leveraged Fund, which, as noted, can enhance the
dividends paid to common shareholders. However, leverage also has the effect of
lengthening a Fund's duration. In addition, durations are often lengthened as we
implement strategies to maintain or improve call protection within a portfolio.
As of July 31, 2000, NTX's duration was 11.18, compared with the unleveraged
Lehman index's 7.50. We believe the longer duration and call protection of this
Fund should help to strengthen the relative stability of its common share
dividends over the long term and position the Fund to benefit from any market
recovery.
WHAT ABOUT NTX'S SHARE PRICE PERFORMANCE?
Over the past 12 months, the uncertainty of the economic environment, coupled
with investors' focus on equity market performance, tended to dampen interest in
most fixed-income products. This lack of demand put pressure on the prices of
many municipal bond investments, including NTX. As shown in the chart on the
individual
1 The performance of NTX is compared with that of the national Lehman
Brothers Municipal Bond Index, an unleveraged index comprising a broad
range of investment-grade municipal bonds. Results for the Lehman index do
not reflect any expenses.
2 The Fund's total return is compared with the average annualized return of
the 19 funds in the Lipper Other States Municipal Debt Funds category. Fund
and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 31%.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Fund and therefore is generally longer than
the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
<PAGE>
Performance Overview page for NTX, the Fund's share price declined over the past
year. Since the decline in share price was greater than the decline in the
Fund's NAV, NTX saw its premium (share price above NAV) move to a discount
(share price below NAV) over the past 12 months. With the market price of this
Fund lower than the actual value of the bonds in its portfolio, shareholders may
want to consider taking advantage of this opportunity to add to their holdings
of NTX.
WHAT KEY STRATEGIES WERE USED TO MANAGE NTX DURING THE FISCAL YEAR ENDED JULY
31, 2000?
The past 12 months represented a challenging period for all fixed-income
investments. The tight supply of new issuance in the Texas municipal market over
the past seven months only intensified this challenge. However, we were able to
take advantage of market conditions during this period to strengthen NTX's
long-term dividend-paying capabilities, extend the Fund's call protection, and
enhance tax efficiency by offsetting potential capital gains with capital
losses. To finance additions to the portfolio, we focused on selling bonds at
attractive prices that were in demand by individual investors, including
prerefunded bonds and bonds with short call dates.
Among the bonds added to the Fund's portfolio over the past 12 months were
pollution control revenue bonds issued by Matagorda County for a Central Power
and Light Company project. We purchased this insured issue at discounted prices
in the secondary market as municipal market conditions began to improve, and the
bonds have subsequently performed well for the Fund. We also added water and
sewer bonds that enhanced the Fund's call protection and improved its structure.
Overall, the water and sewer sector has one of the lowest default rates in the
municipal market, and its strong credit characteristics led to our increasing
NTX's allocation in this sector to 11% from 4% a year ago.
We continued to carefully watch the healthcare sector, which has been under
considerable pressure from consolidation, reimbursement issues, and financial
constraints. In our opinion, these conditions created opportunities to purchase
bonds from strong issuers that carried very attractive prices relative to our
estimation of their true underlying value. This is an area where we rely on
Nuveen research analysts for expert assessments, both on an industry and
individual issuer level. With a July 31, 2000, allocation of 14%, the healthcare
sector continued to represent NTX's second largest sector weighting.
As of July 31, 2000, NTX offered good credit quality, with 68% of its portfolio
invested in bonds rated AAA/U.S. guaranteed and AA. This was balanced by a 23%
allocation of BBB and non-rated bonds, up from 15% a year ago.
WHAT IS YOUR OUTLOOK FOR NTX?
In terms of bond calls, NTX currently offers good levels of call protection,
with less than 11% of its portfolio subject to calls between now and the end of
2001. In October 2001, NTX will reach its 10-year anniversary, which means that
the Fund will begin to see the increased potential for calls. We have already
begun to implement strategies designed to reduce the Fund's call exposure over
this period, taking advantage of the market conditions of the past 12 months to
eliminate approximately 8% of the portfolio scheduled to be called in 2002. As
of July 31, 2000, NTX's potential call exposure for 2002 stands at 21%. We plan
to continue to actively manage the Fund in an effort to mitigate the longer-term
effects of the bond call process, using strategies such as selling bonds with
short calls, evaluating each sale on a case-by-case basis in light of market
conditions at the time. We will also continue to closely monitor the market for
opportunities to add bonds that extend call protection.
Going forward, we plan to focus on the same strategies that we have emphasized
over the past year, including strengthening dividend-payment capabilities and
increasing call protection. The portfolio turnover in NTX due to bond calls
should provide us with several opportunities to enhance the structure of this
Fund. Overall, we expect the market to continue to work its way through the
current period of uncertainty, which may last beyond the fall elections.
Opportunities often arise in these types of markets, and we are ready to take
advantage of developing situations. We believe NTX continues to be well
positioned to provide attractive income and a measure of portfolio
diversification that can be a valuable benefit to investors now and in the years
ahead.
<PAGE>
NTX
Nuveen Texas Quality Income Municipal Fund
Performance OVERVIEW As of July 31, 2000
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 10/91
--------------------------------------------------
Share Price $12 15/16
--------------------------------------------------
Net Asset Value $14.26
--------------------------------------------------
Market Yield 6.77%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.81%
--------------------------------------------------
Fund Net Assets ($000) $203,637
--------------------------------------------------
Average Effective Maturity (Years) 20.39
--------------------------------------------------
Leverage-Adjusted Duration 11.18
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -7.93% 1.15%
--------------------------------------------------
5-Year 5.26% 5.57%
--------------------------------------------------
Since Inception 4.91% 6.75%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Tax Obligation/General 15%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Transportation 13%
--------------------------------------------------
U.S. Guaranteed 12%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
Bar Chart:
1999-2000 Monthly Tax-Free Dividends Per Share2
8/99 0.076
9/99 0.076
10/99 0.076
11/99 0.076
12/99 0.076
1/00 0.076
2/00 0.076
3/00 0.076
4/00 0.076
5/00 0.076
6/00 0.073
7/00 0.073
Line Chart:
Share Price Performance
8/6/99 15.13
14.875
14.69
14.75
14.75
14.63
14.38
14.13
14.13
14.13
13.88
13.31
13.25
13.56
13.31
12.94
12.63
12.5
11.75
11.88
11.94
12.25
11.94
12.13
12.25
12.63
12.63
12.5
12.63
12.31
12.06
12
12.19
12.56
13.06
12.75
12.5
12.5
12.5
12.44
12.38
12.31
12.81
12.81
12.81
12.75
12.75
12.88
12.94
12.88
12.81
7/31/00 12.9375
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 The Fund also paid shareholders capital gains distributions in December
1999 of $0.0927 per share.
<PAGE>
Report of INDEPENDENT AUDITORS
THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Arizona Premium Income Municipal Fund,
Inc., Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan
Premium Income Municipal Fund, Inc., Nuveen Ohio Quality Income Municipal Fund,
Inc. and Nuveen Texas Quality Income Municipal Fund as of July 31, 2000, and the
related statements of operations, changes in net assets and the financial
highlights for the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of July 31, 2000, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Arizona Premium Income Municipal Fund, Inc., Nuveen Michigan Quality
Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund,
Inc., Nuveen Ohio Quality Income Municipal Fund, Inc. and Nuveen Texas Quality
Income Municipal Fund at July 31, 2000, and the results of their operations,
changes in their net assets and financial highlights for the periods indicated
therein in conformity with accounting principles generally accepted in the
United States.
/s/ Ernst & Young LLP
Chicago, Illinois
September 8, 2000
<PAGE>
<TABLE>
Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BASIC MATERIALS - 4.2%
$ 5,000 The Industrial Development Authority of the County of Gila, Arizona, 1/08 at 102 B+ $ 3,883,200
Environmental Revenue Refunding Bonds (ASARCO Incorporated
Project), Series 1998, 5.550%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.3%
1,750 Student Loan Acquisition Authority of Arizona, Student Loan 5/04 at 102 Aa1 1,862,490
Revenue Bonds, Series 1994B, Subordinated Fixed Rate Bonds,
6.600%, 5/01/10 (Alternative Minimum Tax)
100 University of Arizona Telecommunications System, Certificates 7/02 at 102 A+ 105,088
of Participation, Series 1991, 6.500%, 7/15/12
1,000 Arizona Board of Regents, University of Arizona, System Revenue 6/02 at 102 AA 1,044,800
Refunding Bonds, Series 1992, 6.250%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 13.6%
1,000 Arizona Health Facilities Authority, Hospital Revenue Bonds 11/09 at 100 A2 984,370
(Phoenix Children's Hospital), Series 1999A, 6.125%, 11/15/22
2,000 Arizona Health Facilities Authority, Revenue Bonds (Catholic 7/10 at 101 BBB+ 1,992,180
Healthcare West), 1999 Series A, 6.625%, 7/01/20
500 The Industrial Development Authority of the County of Maricopa, 7/02 at 102 AAA 511,470
Arizona, Insured Health Facility Revenue Bonds (Catholic
Healthcare West), 1992 Series A, 5.750%, 7/01/11
500 The Industrial Development Authority of the County of Maricopa, 9/05 at 101 AAA 523,330
Arizona, Baptist Hospital System Revenue Refunding Bonds,
Series 1995, 5.500%, 9/01/16
3,000 The Industrial Development Authority of the City of Mesa, 1/10 at 101 AAA 3,015,000
Arizona, Revenue Bonds (Discovery Health System),
Series 1999A, 5.750%, 1/01/25
2,000 Hospital District No. One, Mohave County, Arizona, Refunding 6/02 at 101 AAA 2,075,200
General Obligation Bonds (Kingman Regional Medical Center
Project), Series 1992, 6.500%, 6/01/15
515 Puerto Rico Industrial, Tourist, Educational, Medical 11/10 at 101 AA 560,361
and Environmental Control Facilities Financing Authority,
Hospital Revenue Bonds, 2000 Series A (Hospital de la
Concepcion Project), 6.375%, 11/15/15
2,000 University Medical Center Corporation (Tucson, Arizona), 7/02 at 102 AAA 2,055,980
Hospital Revenue Refunding Bonds, Series 1992,
6.250%, 7/01/16
1,055 The Industrial Development Authority of the City of Winslow, 6/08 at 101 N/R 833,714
Arizona, Hospital Revenue Bonds (Winslow Memorial
Hospital Project), Series 1998, 5.500%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.1%
2,011 The Industrial Development Authority of the City of Glendale, 10/10 at 105 Aaa 2,298,714
Arizona, Multifamily Housing Revenue Bonds, Series 2000A
(GNMA Collateralized Mortgage Loan - Maridale Apartments
Project), 7.500%, 10/20/35 (WI)
1,670 The Industrial Development Authority of the City of Phoenix, 12/05 at 103 AAA 1,491,694
Arizona, Multifamily Housing Revenue Bonds, Series 1998A
(Heather Ridge Apartments Project), 5.200%, 12/15/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.9%
350 The Industrial Development Authority of the City of Phoenix, 6/05 at 102 AAA 368,435
Arizona, Statewide Single Family Mortgage Revenue Bonds,
Series 1995, 6.150%, 6/01/08 (Alternative Minimum Tax)
1,500 The Industrial Development Authority of the City of Phoenix, 6/10 at 105 AAA 1,660,230
Arizona, Single Family Mortgage Revenue Bonds, Series 2000-1B,
6.000%, 6/01/31 (Alternative Minimum Tax)
295 The Industrial Development Authority of the County of Pima, 8/05 at 102 A 299,631
Arizona, Single Family Mortgage Revenue Refunding Bonds,
Series 1995A, 6.500%, 2/01/17
2,205 The Industrial Development Authority of the County of Pima, 5/07 at 102 AAA 2,226,918
Arizona, Single Family Mortgage Revenue Bonds, Series 1997A,
6.250%, 11/01/30 (Alternative Minimum Tax)
<PAGE>
Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM CARE - 1.1%
$ 1,000 The Industrial Development Authority of the County of Mohave, 5/06 at 103 AAA $ 1,010,350
Arizona, Health Care Revenue Refunding Bonds, Series 1996
(GNMA Collateralized - Chris Ridge and Silver Ridge Village
Projects), 6.375%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.9%
1,400 Chandler Unified School District No. 80 of Maricopa County, 7/03 at 101 AAA 1,448,314
Arizona, General Obligation Refunding Bonds, Series 1993,
5.950%, 7/01/10
3,625 City of Mesa, Arizona, General Obligation Bonds, Series 1999, 7/09 at 100 AAA 3,461,694
5.000%, 7/01/18
2,500 City of Phoenix, Arizona, General Obligation Refunding Bonds, 7/02 at 102 AA+ 2,624,825
Series 1992, 6.375%, 7/01/13
2,825 Commonwealth of Puerto Rico, Public Improvement Bonds 7/10 at 100 AAA 2,872,884
of 2000 (General Obligation Bonds), 5.750%, 7/01/26
585 Tempe Union High School District No. 213 of Maricopa County, 7/04 at 101 AAA 610,687
Arizona, School Improvement and Refunding Bonds, Series 1994,
6.000%, 7/01/12
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.8%
City of Bullhead, Bullhead Parkway Improvement District
Improvement Bonds:
910 6.100%, 1/01/08 1/03 at 103 Baa2 944,926
970 6.100%, 1/01/09 1/03 at 103 Baa2 1,005,376
1,600 City of Lake Havasu Municipal Property Corporation, Municipal 6/02 at 101 AAA 1,658,928
Facilities Revenue Bonds, Series 1993, 6.000%, 6/01/08
3,000 The Industrial Development Authority of the County of Maricopa, 7/10 at 102 Baa3 2,980,890
Education Revenue Bonds (Arizona Charter Schools Project I ),
Series 2000A, 6.750%, 7/01/29
2,150 Phoenix Civic Plaza Building Corporation, Senior Lien Excise 7/05 at 101 AA+ 2,234,861
Tax Revenue Bonds, Series 1994, 6.000%, 7/01/14
1,000 Puerto Rico Highway and Transportation Authority, Transportation 7/08 at 101 A 896,680
Revenue Bonds, Series A, 5.000%, 7/01/38
1,000 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101 A 1,102,420
Revenue Bonds, Series B, 6.500%, 7/01/27
500 City of Surprise, Arizona, Municipal Property Corporation, Excise 7/09 at 101 AAA 506,460
Tax Revenue Bonds, Series 2000, 5.700%, 7/01/20
725 City of Tucson, Arizona, Certificates of Participation, Series 1994, 7/04 at 100 AA 771,277
6.375%, 7/01/09
500 City of Tucson, Arizona, Certificates of Participation, Series 2000, 7/08 at 100 AAA 505,045
5.700%, 7/01/20
2,100 City of Tucson, Arizona, Junior Lien Street and Highway User 7/10 at 100 AAA 2,005,395
Revenue Bonds, Series 1994-E, 5.000%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.2%
2,000 Tucson Airport Authority, Inc. (Arizona), Airport Revenue Bonds, 6/03 at 102 AAA 2,040,460
Refunding Series 1993, 5.700%, 6/01/13
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.3%
3,500 The Industrial Development Authority of the County of Maricopa, No Opt. Call AAA 4,026,960
Arizona, Samaritan Health Services, Hospital System Revenue
Refunding Bonds, Series 1990A, 7.000%, 12/01/16
The Industrial Development Authority of the County of Mohave,
Arizona, Hospital System Revenue Refunding Bonds (Medical
Environments, Inc. and Phoenix Baptist Hospital and
Medical Center, Inc.), Series 1993:
5,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 5,388,300
1,000 7.000%, 7/01/16 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 1,084,130
2,700 City of Phoenix (Arizona), Civic Improvement Corporation, 7/03 at 102 AAA 2,865,591
Wastewater System Lease Revenue Bonds, Series 1993,
6.125%, 7/01/23 (Pre-refunded to 7/01/03)
1,510 Metropolitan Domestic Water Improvement District of Pima 1/03 at 101 AAA 1,581,483
County, Arizona, Special Assessment and Water Revenue
Bonds, Series 1992, 6.200%, 1/01/12 (Pre-refunded to 1/01/03)
1,415 Tempe Union High School District No. 213 of Maricopa County, 7/04 at 101 AAA 1,499,391
Arizona, School Improvement and Refunding Bonds,
Series 1994, 6.000%, 7/01/12 (Pre-refunded to 7/01/04)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 3,000 City of Tucson, Arizona, General Obligation Bonds, 7/04 at 101 AAA $ 3,205,530
Series 1984-G, 6.250%, 7/01/18 (Pre-refunded to 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.1%
3,000 Arizona Pollution Control Corporation, Coconino County, 10/06 at 102 BBB 2,867,550
Pollution Control Revenue Bonds (Nevada Power Company Project),
Series 1996, 6.375%, 10/01/36 (Alternative Minimum Tax)
2,000 The Industrial Development Authority of the County of Mohave, 11/03 at 101 A1 2,035,880
Arizona, Industrial Development Revenue Bonds, 1994 Series
(Citizen Utilities Company Projects), 6.600%, 5/01/29
(Alternative Minimum Tax)
1,000 Navajo County, Arizona, Pollution Control Corporation, Pollution 8/03 at 102 AAA 1,009,240
Control Revenue Refunding Bonds (Arizona Public Service Company),
1993 Series A, 5.875%, 8/15/28
1,580 The Industrial Development Authority of the County of Pima, 1/02 at 103 AAA 1,669,807
Arizona, Industrial Development Lease Obligation Refunding
Revenue Bonds, 1988 Series A (Irvington Project),
7.250%, 7/15/10
1,030 Agricultural Improvement and Power District, Arizona, Salt River 1/02 at 100 AA 1,033,337
Project Electric System Revenue Bonds, 1992 Series D,
5.750%, 1/01/19
1,650 Agricultural Improvement and Power District, Arizona, Salt River 1/04 at 102 AA 1,572,317
Project Electric System Revenue Refunding Bonds, 1993 Series C
(Arizona), 5.000%, 1/01/16
2,000 The Industrial Development Authority of the County of Yavapai, 6/07 at 101 A1 1,863,060
Arizona, Industrial Development Revenue Bonds, 1998 Series
(Citizens Utilities Company Project), 5.450%, 6/01/33
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.0%
500 The Industrial Development Authority of the County of Maricopa, 12/07 at 102 AAA 474,790
Arizona, Water System Improvement Revenue Bonds (Chaparral City
Water Company Project), Series 1997A, 5.400%, 12/01/22
(Alternative Minimum Tax)
2,000 City of Phoenix Civic Improvement Corporation, Arizona, Junior 7/10 at 101 AAA 2,080,320
Lien Wastewater System Revenue Bonds, Series 2000,
6.000%, 7/01/24
2,000 City of Tucson, Arizona, Water System Revenue Refunding Bonds, 7/02 at 102 Aa3 2,019,740
Series 1992A, 5.750%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 91,726 Total Investments (cost $90,907,107) - 100.5% 92,751,703
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.5)% (464,891)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $92,286,812
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAPITAL GOODS - 0.4%
$ 1,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/03 at 102 BBB $ 928,000
(WMX Technologies, Inc. Project), Series 1993,
6.000%, 12/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.5%
1,720 Board of Trustees of Ferris State University (Michigan), General 4/08 at 100 AAA 1,562,998
Revenue Bonds, Series 1998, 5.000%, 10/01/23
965 Michigan Higher Education Student Loan Authority, Student 10/02 at 102 A 1,005,048
Loan and Refunding Revenue Bonds, Series XV-A,
6.800%, 10/01/07 (Alternative Minimum Tax)
1,500 Michigan Higher Education Student Loan Authority, Student Loan No Opt. Call AAA 1,507,485
and Refunding Revenue Bonds, Series XII-T, 5.300%, 9/01/10
(Alternative Minimum Tax)
1,000 Board of Trustees of Oakland University, General Revenue Bonds, 5/05 at 102 AAA 1,019,300
Series 1995, 5.750%, 5/15/15
1,450 Board of Trustees of Western Michigan University, General 7/03 at 102 AAA 1,325,895
Revenue Bonds, Series 1993A, 5.000%, 7/15/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.7%
2,900 The Economic Development Corporation of the City of Dearborn, 11/05 at 102 AAA 2,925,346
Hospital Revenue Bonds (Oakwood Obligated Group),
Series 1995A, 5.875%, 11/15/25
2,235 City of Hancock Hospital Finance Authority, FHA-Insured 8/08 at 100 AAA 2,075,957
Mortgage Hospital Revenue Bonds (Portage Health System,
Inc.), Series 1998, 5.450%, 8/01/47
1,000 Michigan State Hospital Finance Authority, Revenue Refunding 11/09 at 101 A 978,870
Bonds, Series 1999 (OSF Healthcare System), 6.125%, 11/15/19
Michigan State Hospital Finance Authority, Revenue Bonds
(Ascension Health Credit Group), Series 1999A:
1,000 6.125%, 11/15/23 11/09 at 101 AAA 1,021,320
2,500 6.125%, 11/15/26 11/09 at 101 AA 2,511,075
1,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/09 at 101 AAA 1,707,021
and Refunding Bonds (Mercy Health Services Obligated Group),
1999 Series X, 5.750%, 8/15/19
Michigan State Hospital Finance Authority, Hospital Revenue and
Refunding Bonds (Mercy Mount Clemens Corporation Obligated
Group), Series 1999A:
3,385 5.750%, 5/15/17 5/09 at 101 AAA 3,423,826
500 5.750%, 5/15/29 5/09 at 101 AAA 494,745
4,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 3,200,850
Bonds (The Detroit Medical Center Obligated Group),
Series 1998A, 5.250%, 8/15/28
1,000 Michigan State Hospital Finance Authority, Revenue and 11/09 at 101 BBB+ 857,630
Refunding Bonds (Memorial Healthcare Center Obligated
Group), Series 1999, 5.875%, 11/15/21
5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101 AA- 4,908,600
Bonds (Henry Ford Health System), Series 1999A,
6.000%, 11/15/24
2,195 Regents of the University of Michigan, Medical Service Plan No Opt. Call Aa2 1,286,204
Revenue Bonds, Series 1991, 0.000%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.0%
5,250 Michigan State Housing Development Authority, Limited 10/02 at 103 AAA 5,489,243
Obligation Revenue Bonds (Parkway Meadows Project),
Series 1991, 6.850%, 10/15/18
310 Michigan State Housing Development Authority, Rental 1/02 at 102 AA- 322,602
Housing Revenue Bonds, 1991 Series A, 7.150%, 4/01/10
(Alternative Minimum Tax)
3,695 Michigan State Housing Development Authority, Rental Housing 1/02 at 102 AA- 3,829,868
Revenue Bonds, 1991 Series B, 7.100%, 4/01/21
6,795 Michigan State Housing Development Authority, Rental 4/09 at 101 AAA 6,117,471
Housing Revenue Bonds, 1999 Series A, 5.300%, 10/01/37
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY - 0.6%
$ 1,530 Michigan State Housing Development Authority, Single Family 12/01 at 102 AA+ $ 1,561,136
Mortgage Revenue Bonds, 1991 Series B, 6.950%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.6%
2,000 The Economic Development Corporation of the Charter 7/09 at 101 A 1,784,380
Township of Grand Rapids (Michigan), Limited Obligation
Revenue Bonds (Porter Hills Obligated Group, Cook Valley
Estate Project), Series 1999, 5.450%, 7/01/29
1,250 Michigan State Hospital Finance Authority, Revenue Bonds 1/07 at 102 N/R 1,124,237
(Presbyterian Villages of Michigan Obligated Group),
Series 1997, 6.375%, 1/01/25
1,300 Michigan Strategic Fund, Limited Obligation Revenue Bonds 7/08 at 101 A 1,113,099
(Porter Hills Presbyterian Village, Inc. Project), Series 1998,
5.375%, 7/01/28
5,280 The Economic Development Corporation of the City of Warren, 3/02 at 101 Aaa 5,411,578
Nursing Home Revenue Refunding Bonds (GNMA
Mortgage-Backed Security - Autumn Woods Project),
Series 1992, 6.900%, 12/20/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.0%
Allegan Public Schools, County of Allegan, State of Michigan,
2000 General Obligation Bonds:
1,850 5.600%, 5/01/20 (WI) 5/10 at 100 AAA 1,846,966
1,250 5.750%, 5/01/30 (WI) 5/10 at 100 AAA 1,254,037
2,190 Anchor Bay School District, Counties of Macomb and 5/09 at 100 AAA 2,245,911
St. Clair, State of Michigan, 1999 School Building and Site
Bonds, Series I (General Obligation - Unlimited Tax),
6.000%, 5/01/29
1,000 Belding Area Schools, Counties of Ionia, Kent and Montcalm, 5/08 at 100 AAA 900,390
State of Michigan, 1998 Refunding Bonds (General
Obligation - Unlimited Tax), 5.000%, 5/01/26
1,000 Charlotte Public Schools, County of Easton, State of Michigan, 5/09 at 100 AAA 941,240
1999 School Building and Site Bonds (General Obligation -
Unlimited Tax), 5.250%, 5/01/25
1,000 Chippewa Valley Schools, County of Macomb, State of Michigan, 5/03 at 102 AAA 914,800
1993 Refunding Bonds (General Obligation - Unlimited Tax),
5.000%, 5/01/21
2,250 Clarkston Community Schools, County of Oakland, State of 5/07 at 100 AAA 2,128,455
Michigan, 1997 School Building and Site Bonds (General
Obligation - Unlimited Tax), 5.250%, 5/01/23
250 Coopersville Area Public Schools, Counties of Ottawa and 5/09 at 100 AAA 223,278
Muskegon, State of Michigan, 1999 School Building and
Site Bonds (General Obligation - Unlimited Tax), 5.000%, 5/01/29
5,720 School District of the City of Detroit, Wayne County, 5/09 at 101 AAA 4,908,504
Michigan, School Building and Site Improvement Bonds
(General Obligation - Unlimited Tax), Series 1998A,
4.750%, 5/01/28
2,000 East Grand Rapids Public Schools, County of Kent, State of 5/09 at 100 AAA 2,053,840
Michigan, 2000 School Building and Site Bonds (General
Obligation - Unlimited Tax), 6.000%, 5/01/29
3,300 Grand Ledge Public Schools, Counties of Eaton, Clinton and Ionia, 5/05 at 102 AAA 3,146,616
State of Michigan, 1995 Refunding Bonds, 5.375%, 5/01/24
725 Lake Orion Community School District, County of Oakland, State 5/05 at 101 AAA 714,205
of Michigan, 1995 Refunding Bonds (General Obligation -
Unlimited Tax), 5.500%, 5/01/20
1,000 Mancelona Public School District, General Obligation Bonds, 5/06 at 100 AAA 964,910
Series 1997 (Antrim and Kalkaska Counties), 5.200%, 5/01/17
6,400 Mattawan Consolidated School, Counties of Van Buren and 5/02 at 102 AA+ 6,622,144
Kalamazoo, State of Michigan, 1992 Refunding Bonds (General
Obligation - Unlimited Tax), 6.300%, 5/01/17
2,875 Milan Area Schools, Counties of Washtenaw and Monroe, 5/10 at 100 AAA 2,899,265
State of Michigan, 2000 School Building and Site Bonds
(General Obligation - Unlimited Tax), Series A and B,
5.750%, 5/01/24
2,500 Montrose Township School District, Michigan, School Building No Opt. Call AAA 2,645,725
and Site Bonds, Series 1997, 6.000%, 5/01/22
1,000 Muskegon Heights Public Schools, County of Muskegon, 5/09 at 100 AAA 893,110
State of Michigan, 1999 School Building and Site Bonds
(General Obligation - Unlimited Tax), 5.000%, 5/01/29
1,045 Nice Community School District, Counties of Marquette and 5/04 at 101 AAA 998,529
Baraga, State of Michigan, 1995 School Building and Site Bonds
(General Obligation - Unlimited Tax), 5.250%, 5/01/20
1,225 North Branch Area Schools, County of Lapeer, State of Michigan, 5/03 at 101 1/2 AAA 1,183,301
1993 Refunding Bonds (General Obligation - Unlimited Tax),
5.375%, 5/01/21
1,470 Parchment School District, County of Kalamazoo, State of No Opt. Call AAA 1,358,986
Michigan, 1998 School Building and Site Bonds (General
Obligation - Unlimited Tax), 5.000%, 5/01/25
<PAGE>
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL (continued)
$ 4,000 Pinckney Community Schools, Counties of Livingston and 5/07 at 100 AAA $ 3,886,200
Washtenaw, State of Michigan, 1997 School Building and
Site Bonds (General Obligation - Unlimited Tax), 5.500%, 5/01/27
685 Reeths-Puffer Schools, County of Muskegon, State of Michigan, 5/05 at 101 AAA 698,152
Refunding Bonds, 5.750%, 5/01/15
1,000 Rochester Community School District, Counties of Oakland 5/10 at 100 AAA 1,012,930
and Macomb, State of Michigan, 2000 School Building and
Site and Refunding Bonds, Series I (General Obligation -
Unlimited Tax), 5.750%, 5/01/19
2,100 Romulus Community Schools, County of Wayne, State of 5/09 at 100 AAA 2,109,093
Michigan, 1999 School Building and Site Bonds (General
Obligation - Unlimited Tax), 5.750%, 5/01/25
1,980 Washtenaw County Building Authority, Michigan, Building 9/07 at 100 AAA 1,954,913
Authority Bonds, Series 1999 (General Obligation - Limited
Tax Bonds), 5.400%, 9/01/17
2,600 West Bloomfield School District, County Of Oakland, State 5/10 at 100 AAA 2,677,610
of Michigan, 2000 School Building and Site Bonds (General
Obligation - Unlimited Tax), 5.900%, 5/01/18
Western Townships Utilities Authority, Sewage Disposal System
Refunding Bonds, Series 1991:
1,500 6.750%, 1/01/15 1/02 at 100 AAA 1,542,735
5,040 6.500%, 1/01/19 1/02 at 100 AAA 5,164,438
1,725 Williamston Community School District (General Obligation - No Opt. Call AAA 1,705,301
Unlimited Tax), Series 1996 (Q-SBLF), 5.500%, 5/01/25
1,000 Wyoming Public Schools, County of Kent, State of Michigan, 5/09 at 100 AAA 912,690
1999 Refunding Bonds (General Obligation - Unlimited Tax),
5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 6.9%
2,000 Michigan Municipal Bond Authority, Local Government Loan 5/02 at 102 A 2,084,780
Program Revenue Bonds, Series 1992D, 6.650%, 5/01/12
3,800 State Building Authority, State of Michigan, 1991 Revenue 10/01 at 102 AA 3,885,310
Refunding Bonds, Series I, 6.250%, 10/01/20
895 State Building Authority, State of Michigan, 1991 Revenue Bonds, 10/01 at 102 AA 932,402
Series II, 6.800%, 10/01/21
1,000 State Building Authority, State of Michigan, 1998 Revenue Bonds, 10/09 at 100 AA 874,390
Series I (Facilities Program), 4.750%, 10/15/21
2,000 The State of Michigan, Certificates of Participation, 6/10 at 100 AAA 1,971,020
525 Redevco, Inc., 5.500%, 6/01/19 (WI)
1,350 State of Michigan, State Trunk Line Fund Refunding Bonds, 11/08 at 101 AAA 1,184,463
Series 1998A, 4.750%, 11/01/20
Puerto Rico Highway and Transportation Authority, Highway Revenue
Bonds, Series Y of 1996:
4,100 5.500%, 7/01/36 7/16 at 100 A 4,048,504
2,000 5.000%, 7/01/36 7/16 at 100 A 1,794,460
1,125 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101 A 1,167,840
Revenue Bonds, Series B, 6.000%, 7/01/39
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.0%
2,505 Charter County of Wayne, Michigan, Airport Revenue Bonds 12/01 at 102 AAA 2,612,339
(Detroit Metropolitan Wayne County Airport), Subordinate Lien,
Series 1991B, 6.750%, 12/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.8%
1,600 Gaylord Community Schools, Counties of Ostego and Antrim, 5/02 at 102 AA+*** 1,687,120
State of Michigan, 1992 School Building and Site and Refunding
Bonds, 6.600%, 5/01/21 (Pre-refunded to 5/01/02)
1,000 Grosse IIe Township School District, School Improvement 5/07 at 100 AAA 1,074,660
Refunding Bonds, General Obligation, Series 1996,
6.000%, 5/01/22 (Pre-refunded to 5/01/07)
1,250 Gull Lake Community Schools, Counties of Kalamazoo, Barry 5/01 at 102 AAA 1,297,300
and Calhoun, State of Michigan, 1991 School Building and
Site Bonds, 6.800%, 5/01/21 (Pre-refunded to 5/01/01)
3,100 Hemlock Public School District, Counties of Saginaw and 5/02 at 102 AA+*** 3,279,242
Midland, State of Michigan, 1992 School Building and Site
and Refunding Bonds, 6.750%, 5/01/21 (Pre-refunded to 5/01/02)
2,000 Lincoln Park School District, General Obligation Bonds, 5/06 at 101 AAA 2,139,540
Series 1996, 5.900%, 5/01/26 (Pre-refunded to 5/01/06)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 1,000 Marquette Area Public Schools, County of Marquette, State 5/01 at 102 AAA $ 1,037,110
of Michigan, 1991 School Building and Site Bonds, Series B
(General Obligation - Unlimited Tax), 6.700%, 5/01/21
(Pre-refunded to 5/01/01)
3,100 Michigan Municipal Bond Authority, State Revolving Fund 10/02 at 102 AA+*** 3,292,665
Revenue Bonds, Series 1992A, 6.600%, 10/01/18
(Pre-refunded to 10/01/02)
3,035 Michigan State Hospital Finance Authority, Hospital Revenue 12/02 at 102 AAA 3,252,518
Bonds (Mid-Michigan Obligated Group), Series 1992,
6.900%, 12/01/24 (Pre-refunded to 12/01/02)
1,450 Michigan State Hospital Finance Authority, Hospital Revenue 9/01 at 102 Aaa 1,526,923
Bonds (McLaren Obligated Group), Series 1991A,
7.500%, 9/15/21 (Pre-refunded to 9/15/01)
9,355 Michigan State Hospital Finance Authority, Hospital Revenue 11/01 at 102 Aa2*** 9,821,815
Bonds (Daughters of Charity National Health System -
Providence Hospital), Series 1991, 7.000%, 11/01/21
(Pre-refunded to 11/01/01)
1,550 Michigan State Hospital Finance Authority, Hospital Revenue 5/01 at 100 AA-*** 1,569,763
Bonds (Mercy Mount Clemens Corporation), Series 1992,
6.000%, 5/15/17 (Pre-refunded to 5/15/01)
2,150 North Branch Area Schools, County of Lapeer, State of Michigan, 5/02 at 102 AA+*** 2,267,068
1992 School Building and Site and Refunding Bonds (General
Obligation - Unlimited Tax), 6.600%, 5/01/17
(Pre-refunded to 5/01/02)
1,500 Perry Public Schools, Counties of Shiawassee and Ingham, 5/02 at 101 1/2 AAA 1,569,630
State of Michigan, 1992 School Building and Site Bonds
(General Obligation - Unlimited Tax), 6.375%, 5/01/22
(Pre-refunded to 5/01/02)
4,650 Plymouth-Canton Community Schools, Counties of Wayne 5/01 at 101 AA+*** 4,780,200
and Washtenaw, State of Michigan, 1991 School Building
and Site and Refunding Bonds, Series B, 6.800%, 5/01/11
(Pre-refunded to 5/01/01)
4,845 Saginaw-Midland Municipal Water Supply Corporation, 9/04 at 102 A2*** 5,323,686
State of Michigan, Water Supply Revenue Bonds (General
Obligation - Limited Tax), Series 1992, 6.875%, 9/01/16
(Pre-refunded to 9/01/04)
8,250 Regents of the University of Michigan, Medical Service Plan 12/01 at 102 Aa2*** 8,624,633
Revenue Bonds, Series 1991, 6.500%, 12/01/21
(Pre-refunded to 12/01/01)
4,200 Warren Consolidated Schools, Counties of Macomb and Oakland, 5/01 at 102 Aa*** 4,355,190
State of Michigan, 1991 School Building and Site and Refunding
Bonds (General Obligation - Unlimited Tax), 6.700%, 5/01/21
(Pre-refunded to 5/01/01)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.1%
6,425 The Economic Development Corporation of the City of Detroit, 5/01 at 102 AAA 6,645,763
Resource Recovery Revenue Bonds, Series 1991A,
6.875%, 5/01/09 (Alternative Minimum Tax)
2,390 Michigan South Central Power Agency, Power Supply System 11/01 at 102 Baa1 2,481,656
Revenue Refunding Bonds, 1991 Series, 6.750%, 11/01/10
3,630 Michigan Strategic Fund, Adjustable Rate Demand - Limited No Opt. Call AAA 4,280,895
Obligation Refunding Revenue Bonds (The Detroit Edison
Company, Pollution Control Bonds Project), Series 1990BB,
7.000%, 5/01/21
4,330 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/01 at 102 AAA 4,506,577
Bonds (The Detroit Edison Company, Pollution Control Bonds
Project), Collateralized Series 1991CC, 6.950%, 9/01/21
7,600 Michigan Strategic Fund, Limited Obligation Refunding Revenue 12/01 at 102 AAA 7,937,820
Bonds (The Detroit Edison Company, Pollution Control Bonds
Project), Collateralized Series 1991DD, 6.875%, 12/01/21
7,000 County of Monroe, Michigan, Pollution Control Revenue Bonds 9/02 at 102 AAA 7,392,840
(The Detroit Edison Company, Monroe and Fermi Plants Project),
Collateralized Series I 1992, 6.875%, 9/01/22 (Alternative
Minimum Tax)
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100 BBB+ 988,590
Series X, 5.500%, 7/01/25
5,000 City of Wyandotte, County of Wayne, State of Michigan, 10/02 at 102 AAA 5,147,800
1992 Electric Revenue Refunding Bonds, 6.250%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.9%
5,250 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 100 AAA 4,722,112
Refunding Bonds, Series 1995-B, 5.000%, 7/01/25
City of Detroit, Michigan, Sewage Disposal System Revenue Bonds,
Series 1997-A:
3,000 5.500%, 7/01/20 7/07 at 101 AAA 2,965,890
1,730 5.000%, 7/01/22 7/07 at 101 AAA 1,578,435
1,000 City of Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101 AAA 1,017,000
Bonds, Series 1999-A, 5.875%, 7/01/27
<PAGE>
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER (continued)
$ 6,000 City of Detroit, Michigan, Water Supply System Revenue and 7/04 at 102 AAA $ 5,434,080
Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/23
2,000 City of Detroit, Michigan, Water Supply System Revenue Bonds 1/10 at 101 AAA 2,010,700
(Senior Lien), Series 1999-A, 5.750%, 7/01/26
1,000 City of Grand Rapids, Michigan, Sanitary Sewer System 7/08 at 101 AAA 859,120
Improvement and Refunding Revenue Bonds, Series 1998A,
4.750%, 1/01/28
City of Muskegon Heights, County of Muskegon, State of Michigan,
Water Supply System Revenue Bonds, Series 2000A:
1,040 5.625%, 11/01/25 11/10 at 100 Aaa 1,031,582
1,160 5.625%, 11/01/30 11/10 at 100 Aaa 1,146,590
------------------------------------------------------------------------------------------------------------------------------------
$ 259,005 Total Investments (cost $251,331,182) - 98.5% 257,604,079
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8%
University of Michigan, Hospital Revenue Bonds, Series 1998A2, VMIG-1 2,000,000
$ 2,000 Variable Rate Demand Bonds, 4.250%, 12/01/24+
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.7% 1,824,635
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $261,428,714
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ 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>
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAPITAL GOODS - 2.6%
$ 3,050 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102 BBB $ 3,023,069
(Waste Management, Inc. Project), Series 1992,
6.625%, 12/01/12 (Alternative Minimum Tax)
1,370 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/03 at 102 BBB 1,271,360
(WMX Technologies, Inc. Project), Series 1993,
6.000%, 12/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.5%
3,000 Board of Regents of Eastern Michigan University, General 12/06 at 101 AAA 2,910,150
Revenue Bonds, Series 1997, 5.500%, 6/01/27
1,250 Michigan Higher Education Student Loan Authority, 10/02 at 102 A 1,300,188
Student Loan and Refunding Revenue Bonds, Series XV-A,
6.700%, 10/01/05 (Alternative Minimum Tax)
1,000 Board of Control of Saginaw Valley State University 7/09 at 100 Aaa 988,680
(Michigan), General Revenue Bonds, Series 1999,
5.625%, 7/01/29
2,500 Board of Governors of Wayne State University (Michigan), 11/09 at 101 AAA 2,298,200
General Revenue Bonds, Series 1999, 5.125%, 11/15/29
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.7%
2,050 The Economic Development Corporation of the City of Dearborn, 11/05 at 102 AAA 2,067,917
Hospital Revenue Bonds (Oakwood Obligated Group),
Series 1995A, 5.875%, 11/15/25
2,200 City of Hancock Hospital Finance Authority, FHA-Insured 8/08 at 100 AAA 2,043,448
Mortgage Hospital Revenue Bonds (Portage Health System, Inc.),
Series 1998, 5.450%, 8/01/47
2,500 City of Kalamazoo Hospital Finance Authority, Hospital Revenue 5/06 at 102 AAA 2,528,675
Refunding and Improvement Bonds (Bronson Methodist
Hospital), Series 1996, 5.750%, 5/15/16
Michigan State Hospital Finance Authority, Revenue and Refunding
Bonds (The Detroit Medical Center Obligated Group), Series
1993A:
3,000 6.250%, 8/15/13 8/03 at 102 BBB- 2,663,940
3,200 6.500%, 8/15/18 8/03 at 102 BBB- 2,823,136
4,000 Michigan State Hospital Finance Authority (Michigan), 9/02 at 102 AA- 3,871,000
Hospital Revenue and Refunding Bonds (Henry Ford Health
System), Series 1992A, 5.750%, 9/01/17
2,000 Michigan State Hospital Finance Authority, Hospital Revenue 1/05 at 102 A+ 2,014,020
and Refunding Bonds (Otsego Memorial Hospital Gaylord,
Michigan), Series 1995, 6.250%, 1/01/20
2,500 Michigan State Hospital Finance Authority, Revenue Bonds 11/09 at 101 AA 2,511,075
(Ascension Health Credit Group), Series 1999A,
6.125%, 11/15/26
4,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/09 at 101 AAA 3,957,960
and Refunding Bonds (Mercy Mount Clemens Corporation
Obligated Group), Series 1999A, 5.750%, 5/15/29
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 1,066,950
Bonds (The Detroit Medical Center Obligated Group),
Series 1998A, 5.250%, 8/15/28
4,300 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101 AA- 4,221,396
Bonds (Henry Ford Health System), Series 1999A,
6.000%, 11/15/24
3,000 Regents of the University of Michigan, Hospital Revenue 12/02 at 102 AA 2,867,430
Refunding Bonds, Series 1993A, 5.500%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.4%
2,400 Michigan State Housing Development Authority, Limited 4/04 at 103 AAA 2,435,424
Obligation Revenue Bonds (Walled Lake Villa Project),
Series 1993, 6.000%, 4/15/18
1,500 Michigan State Housing Development Authority, Limited 10/03 at 103 AAA 1,472,235
Obligation Revenue Bonds (Brenton Village Green Project),
Series 1993, 5.625%, 10/15/18
790 Michigan State Housing Development Authority, Rental Housing 4/03 at 102 AAA 790,719
Revenue Bonds, 1993 Series A, 5.875%, 10/01/17
<PAGE>
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/MULTIFAMILY (continued)
Mount Clemens Housing Corporation, Multifamily Housing Refunding
Revenue Bonds, Series 1992A (FHA-Insured Mortgage Loan - Section
8 Assisted Project):
$ 1,000 6.600%, 6/01/13 6/03 at 102 AAA $ 1,030,230
1,500 6.600%, 6/01/22 6/03 at 102 AAA 1,539,015
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.8%
1,290 Michigan State Housing Development Authority, Single Family 6/05 at 102 AA+ 1,306,886
Mortgage Revenue Bonds, 1995 Series A, 6.800%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.7%
1,000 Central Montcalm Public Schools, Counties of Montcalm and Ionia, 5/09 at 100 AAA 1,005,020
State of Michigan, 1999 School Building and Site Bonds
(General Obligation - Unlimited Tax), 5.750%, 5/01/24
730 Clarkston Community Schools, County of Oakland, State 5/03 at 102 AA+ 743,177
of Michigan, 1993 School Building and Site Refunding Bonds,
5.900%, 5/01/16
500 Coopersville Area Public Schools, Counties of Ottawa and 5/09 at 100 AAA 446,555
Muskegon, State of Michigan, 1999 School Building and Site
Bonds (General Obligation - Unlimited Tax), 5.000%, 5/01/29
2,500 School District of the City of Detroit, Wayne County, Michigan, 5/01 at 102 AA+ 2,584,550
School Building and Site Bonds (General Obligation -
Unlimited Tax), Series 1992, 6.250%, 5/01/12
1,500 School District of the City of Detroit, Wayne County, Michigan, 5/09 at 101 AAA 1,287,195
School Building and Site Improvement Bonds (General
Obligation - Unlimited Tax), Series 1998A, 4.750%, 5/01/28
3,000 Dexter Community Schools, Counties of Washtenaw and 5/03 at 102 AA+ 2,807,310
Livingston, State of Michigan, 1993 School Building and Site
Refunding Bonds (General Obligation - Unlimited Tax),
5.000%, 5/01/17
1,240 Milan Area Schools, Counties of Washtenaw and Monroe, State 5/10 at 100 AAA 1,258,476
of Michigan, 2000 School Building and Site Bonds (General
Obligation - Unlimited Tax), Series A and B, 5.625%, 5/01/16
1,100 Commonwealth of Puerto Rico, Public Improvement Bonds 7/07 at 101 1/2 A 1,129,645
of 1997, 5.750%, 7/01/17
380 Reeths-Puffer Schools, County of Muskegon, State of Michigan, 5/05 at 101 AAA 387,296
1995 School Building and Site and Refunding Bonds,
5.750%, 5/01/15
1,000 Rochester Community School District, Counties of Oakland 5/10 at 100 AAA 1,012,930
and Macomb, State of Michigan, 2000 School Building and
Site and Refunding Bonds, Series I (General Obligation -
Unlimited Tax), 5.750%, 5/01/19
1,500 Romulus Community Schools, County of Wayne, State of 5/09 at 100 AAA 1,506,495
Michigan, 1999 School Building and Site Bonds (General
Obligation - Unlimited Tax), 5.750%, 5/01/25
2,500 West Bloomfield School District, County Of Oakland, State 5/10 at 100 AAA 2,561,275
of Michigan, 2000 School Building and Site Bonds (Unlimited
Tax - General Obligation), 5.800%, 5/01/17
1,000 Western Townships Utilities Authority, Sewage Disposal 1/02 at 100 AAA 1,024,070
System Refunding Bonds, Series 1991, 6.500%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.9%
6,500 City of Detroit, Michigan, Convention Facility Limited Tax 9/03 at 102 AAA 6,512,610
Revenue Refunding Bonds (Cobo Hall Expansion Project),
Series 1993, 5.250%, 9/30/12
1,400 City of Detroit, Michigan, Downtown Development Authority, 7/08 at 100 AAA 1,208,298
Tax Increment Refunding Bonds (Development Area No. 1
Projects), Series 1998A, 4.750%, 7/01/25
5,500 Detroit/Wayne County Stadium Authority (State of Michigan), 2/07 at 102 AAA 5,159,440
Building Authority Stadium Bonds, Series 1997 (General
Obligation - Limited Tax), 5.250%, 2/01/27
5,000 Michigan Municipal Bond Authority, State Revolving Fund 10/09 at 101 AA+ 4,910,650
Revenue Bonds and Drinking Water Revolving Fund Revenue
Bonds, Series 1999, 5.500%, 10/01/21
2,750 State Building Authority, State of Michigan, 1991 Revenue 10/01 at 102 AA 2,811,738
Refunding Bonds, Series I, 6.250%, 10/01/20
1,000 State Building Authority, State of Michigan, 1991 Revenue 10/01 at 102 AA 1,022,450
Bonds, Series II, 6.250%, 10/01/20
2,275 State of Michigan, Comprehensive Transportation Bonds, 5/02 at 100 AA 2,299,206
Series 1992A, 5.750%, 5/15/12
1,500 State of Michigan, State Trunk Line Fund Refunding Bonds, 11/08 at 101 AAA 1,349,325
Series 1998A, 5.000%, 11/01/26
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100 A 897,230
Revenue Bonds, Series Y of 1996, 5.000%, 7/01/36
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/LIMITED (continued)
$ 3,615 Saginaw-Midland Municipal Water Supply Corporation, State 9/02 at 101 1/2 A2 $ 3,521,046
of Michigan, Water Supply System Revenue Bonds (General
Obligation - Limited Tax), Series 1993, 5.250%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.7%
1,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/03 at 102 Baa2 997,490
1993 Series A (American Airlines, Inc. Project),
6.300%, 6/01/23 (Alternative Minimum Tax)
2,000 Charter County of Wayne, Michigan, Detroit Metropolitan 12/08 at 101 AAA 1,740,160
Wayne County Airport, Airport Revenue Bonds, Series 1998A,
5.000%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 8.0%
2,000 Board of Control of Ferris State University, General Revenue 10/03 at 102 AAA 2,135,280
Bonds, Series 1993, 6.250%, 10/01/19 (Pre-refunded to 10/01/03)
1,950 Michigan Municipal Bond Authority, State Revolving Fund Revenue No Opt. Call AA+*** 2,088,957
Bonds, Series 1994, 7.000%, 10/01/03
3,000 Michigan State Hospital Finance Authority (Michigan), Hospital 5/03 at 102 AAA 3,099,840
Revenue Refunding Bonds (St. John Hospital), Series 1993A,
6.000%, 5/15/13
2,500 Michigan State Hospital Finance Authority, Hospital Revenue 11/01 at 102 Aa2*** 2,624,750
Bonds (Daughters of Charity National Health System - Providence
Hospital), Series 1991, 7.000%, 11/01/21 (Pre-refunded to 11/01/01)
620 Reeths-Puffer Schools, County of Muskegon, State of Michigan, 5/05 at 101 AAA 654,652
1995 School Building and Site and Refunding Bonds,
5.750%, 5/01/15 (Pre-refunded to 5/01/05)
2,650 Regents of the University of Michigan, Hospital Revenue Bonds, 12/00 at 100 AA*** 2,667,623
Series 1990, 6.375%, 12/01/24 (Pre-refunded to 12/01/00)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.3%
4,750 The City of Grand Haven, Michigan, Electric System Revenue 7/03 at 102 AAA 4,627,355
Refunding Bonds, 1993 Series, 5.250%, 7/01/16
4,020 Michigan Public Power Agency, Belle River Project Refunding 1/03 at 102 AA- 3,832,346
Revenue Bonds, 1993 Series A, 5.250%, 1/01/18
3,500 Michigan Strategic Fund, Limited Obligation Refunding Revenue 6/03 at 102 AAA 3,623,340
Bonds (Consumers Power Company Project), Collateralized
Series 1993B, 5.800%, 6/15/10
1,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102 AAA 957,580
Bonds (The Detroit Edison Company, Pollution Control Bonds
Project), Collateralized Series 1999A, 5.550%, 9/01/29
(Alternative Minimum Tax)
County of Monroe, Michigan, Pollution Control Revenue Bonds (The
Detroit Edison Company Project), Series CC-1992:
2,500 6.550%, 6/01/24 (Alternative Minimum Tax) 6/03 at 102 AAA 2,638,650
1,500 6.550%, 9/01/24 (Alternative Minimum Tax) 9/03 at 102 AAA 1,587,600
6,000 County of Monroe, Michigan, Pollution Control Revenue Bonds No Opt. Call AAA 6,343,860
(The Detroit Edison Company Project), Series A-1994,
6.350%, 12/01/04 (Alternative Minimum Tax)
<PAGE>
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER - 14.2%
$ 3,250 City of Detroit, Michigan, Sewage Disposal System Revenue 7/07 at 101 AAA $ 3,213,048
Bonds, Series 1997-A, 5.500%, 7/01/20
3,755 City of Detroit, Michigan, Sewage Disposal System Revenue 7/03 at 102 AAA 3,826,721
and Revenue Refunding Bonds, Series 1993-A, 5.700%, 7/01/13
City of Detroit, Michigan, Sewage Disposal System Revenue
Bonds, Series 1999-A:
5,000 5.750%, 7/01/26 1/10 at 101 AAA 5,026,750
2,000 5.875%, 7/01/27 1/10 at 101 AAA 2,034,000
4,500 City of Detroit, Michigan, Water Supply System Revenue and 7/04 at 102 AAA 3,949,604
Revenue Refunding Bonds, Series 1993, 4.750%, 7/01/19
4,000 City of Detroit, Michigan, Water Supply System Revenue Bonds 1/10 at 101 AAA 4,021,400
(Senior Lien), Series 1999-A, 5.750%, 7/01/26
1,600 City of Grand Rapids, Michigan, Sanitary Sewer System 7/08 at 101 AAA 1,374,590
Improvement and Refunding Revenue Bonds, Series 1998A,
4.750%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 166,485 Total Investments (cost $160,027,552) - 98.8% 163,514,686
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,050,513
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $165,565,199
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of INVESTMENTS July 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAPITAL GOODS - 1.1%
$ 2,440 Ohio Water Development Authority, Revenue Bonds, USA 3/02 at 102 N/R $ 2,507,734
Waste Services, Series 1992, 7.750%, 9/01/07
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.3%
825 Bowling Green State University, Ohio, General Receipts Bonds, 6/01 at 102 A 854,156
Series 1991, 6.700%, 6/01/07
3,665 State of Ohio, Education Loan Revenue Bonds, Series 1997A 6/07 at 102 AAA 3,680,943
(Supplemental Student Loan Program), 1997A1,
5.850%, 12/01/19 (Alternative Minimum Tax)
1,000 State of Ohio (Ohio Higher Educational Facility Commission), 12/04 at 102 AAA 1,025,170
Higher Educational Facility Revenue Bonds (University of
Dayton, 1994 Project), 5.800%, 12/01/14
2,400 State of Ohio (Ohio Higher Educational Facility Commission), 12/03 at 102 AAA 2,571,240
Higher Educational Facility Mortgage Revenue Bonds (University
of Dayton, 1992 Project), 6.600%, 12/01/17
1,200 State of Ohio (Ohio Higher Educational Facility Commission), 9/06 at 101 N/R 1,213,644
Higher Educational Facility Revenue Bonds (The University of
Findlay, 1996 Project), 6.125%, 9/01/16
1,575 The Ohio State University (A State University of Ohio) General 12/02 at 102 AA 1,623,337
Receipts Bonds, Series 1992 A1, 5.875%, 12/01/12
3,150 The Student Loan Funding Corporation, Cincinnati, Ohio, Student 7/02 at 100 A 3,179,610
Loan Subordinated Revenue Refunding Bonds, Series 1992D,
6.600%, 7/01/05 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 2.0%
2,000 County of Ashtabula, Ohio, Industrial Development Refunding 5/02 at 102 Baa2 2,064,800
Revenue Bonds, 1992 Series A (Ashland Oil, Inc. Project),
6.900%, 5/01/10
2,250 Ohio Air Quality Development Authority, Air Quality Development 4/01 at 102 Baa2 2,321,505
Refunding Revenue Bonds, Series 1992 (Ashland Oil, Inc.
Project), 6.850%, 4/01/10
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.3%
1,300 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/03 at 102 Baa1 1,151,033
Hospital Facilities Revenue Bonds, Series 1993A (Summa Health
System Project), 5.500%, 11/15/13
County of Butler, Ohio, Hospital Facilities Revenue Refunding
and Improvement Bonds, Series 1991 (Fort Hamilton-Hughes
Memorial Hospital Center):
125 7.250%, 1/01/01 No Opt. Call Baa1 125,286
1,000 7.500%, 1/01/10 1/02 at 102 Baa1 1,029,320
City of Cambridge, Ohio, Hospital Revenue Refunding Bonds,
Series 1991 (Guernsey Memorial Hospital Project):
1,680 8.000%, 12/01/06 12/01 at 102 BBB 1,747,452
750 8.000%, 12/01/11 12/01 at 102 BBB 777,330
2,675 County of Clermont, Ohio, Hospital Facilities Revenue Refunding 1/03 at 102 AAA 2,727,885
Bonds, Series 1993A (Mercy Health System), 5.875%, 1/01/15
1,000 County of Cuyahoga, Ohio, Hospital Improvement and Refunding 2/07 at 102 AAA 1,008,740
Revenue Bonds, Series 1997 (The MetroHealth System
Project), 5.625%, 2/15/17
1,170 County of Cuyahoga, Ohio, Hospital Facilities Revenue Bonds, 2/03 at 102 AA- 1,199,426
Series 1993, Health Cleveland, Inc. (Fairview General
Hospital Project), 6.300%, 8/15/15
County of Franklin, Ohio, Hospital Refunding and Improvement
Revenue Bonds, 1996 Series A (The Children's Hospital Project):
1,000 5.750%, 11/01/20 11/06 at 101 Aa 984,040
1,500 5.875%, 11/01/25 11/06 at 101 Aa 1,484,265
1,500 County of Franklin, Ohio, Hospital Revenue Refunding and 11/02 at 102 Aa 1,583,850
Improvement Bonds, 1992 Series A (The Children's Hospital
Project), 6.600%, 5/01/13
<PAGE>
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTHCARE (continued)
$ 2,500 County of Marion, Ohio, Hospital Refunding and Improvement 5/06 at 102 BBB+ $ 2,424,925
Revenue Bonds, Series 1996 (The Community Hospital),
6.375%, 5/15/11
1,500 County of Montgomery, Ohio, Hospital Facilities Revenue 4/06 at 102 AAA 1,516,620
Refunding and Improvement Bonds, Series 1996 (Kettering
Medical Center), 5.625%, 4/01/16
2,500 County of Richland, Ohio, Hospital Facilities Revenue 11/10 at 101 N/R 2,442,375
Improvement Bonds, Series 2000B, MedCentral Health System
Obligated Group, 6.375%, 11/15/30 (WI)
750 County of Tuscarawas, Ohio, Hospital Facilities Revenue 10/03 at 102 Baa2 689,498
Bonds, Series 1993A (Union Hospital Project), 6.500%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.0%
1,385 County of Clermont, Ohio, Mortgage Revenue Bonds, Series 1994 8/03 at 103 Aaa 1,379,211
(GNMA Collateralized - S.E.M. Villa II Project), Series 1994-A,
5.950%, 2/20/30
1,435 County of Cuyahoga, Ohio, Multifamily Housing Revenue Bonds 6/08 at 105 Aaa 1,441,228
(Water Street Associates Project), Series 1997,
6.150%, 12/20/26 (Alternative Minimum Tax)
990 County of Franklin, Ohio, Multifamily Housing Mortgage 1/05 at 103 Aa 923,066
Revenue Bonds, Series 1994A (FHA- Insured Mortgage
Loan - Hamilton Creek Apartments Project), 5.550%, 7/01/24
(Alternative Minimum Tax)
6,155 County of Franklin, Ohio, Mortgage Revenue Bonds, Series 1992A 1/02 at 103 Aa 6,369,871
(FHA-Insured Mortgage Loan - Kensington Place Project),
6.750%, 1/01/34
5,200 Hamilton County, Multifamily Housing Revenue Bonds (Huntington 1/07 at 102 AAA 5,054,400
Meadows Project), Series 1997, 5.700%, 1/01/27
(Alternative Minimum Tax)
4,060 Lucas Northgate Housing Development Corporation (Ohio), 1/04 at 102 Aaa 4,072,748
Mortgage Revenue Refunding Bonds, Series 1999A (FHA-Insured
Mortgage Loan - Northgate Apartments Section 8 Assisted Project),
6.000%, 7/01/24
3,265 Ohio Housing Finance Agency, Multifamily Housing Revenue 12/09 at 100 AAA 3,287,692
Bonds (Timber Lake Apartments Project), Series 1999C,
6.150%, 12/01/24 (Alternative Minimum Tax)
4,315 Ohio Capital Corporation for Housing, Mortgage Revenue 2/09 at 102 Aa2 4,321,688
Refunding Bonds, Series 1999G (FHA- Insured Mortgage
Loans - Section 8 Assisted Projects), 5.950%, 2/01/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9%
3,000 Ohio Housing Finance Agency, Residential Mortgage 9/09 at 100 Aaa 3,077,160
Revenue Bonds, 2000 Series A1 (Mortgage-Backed
Securities Program), 6.350%, 9/01/31 (Alternative Minimum Tax)
3,980 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/07 at 102 Aaa 3,840,222
Bonds, 1996 Series B-3 (Mortgage-Backed Securities Program),
5.750%, 9/01/28 (Alternative Minimum Tax)
2,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/08 at 101 Aaa 1,788,560
Bonds, 1999 Series A1 (Mortgage-Backed Securities Program),
5.250%, 9/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.9%
1,365 County of Franklin, Ohio, Health Care Facilities Revenue Bonds, 7/03 at 102 N/R 1,221,880
Series 1993 (Ohio Presbyterian Retirement Services),
6.500%, 7/01/23
1,000 County of Marion, Ohio, Health Care Facilities Refunding and 11/03 at 102 BBB- 904,390
Improvement Revenue Bonds, Series 1993 (United Church Homes,
Inc. Project), 6.300%, 11/15/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.8%
1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102 Aaa 975,070
Obligation Bonds, Series 2000, 5.500%, 12/01/22
Berea City School District, Ohio, School Improvement Bonds,
Series 1993 (General Obligation - Unlimited Tax):
650 7.500%, 12/15/06 12/03 at 102 AAA 717,425
680 7.450%, 12/15/07 12/03 at 102 AAA 749,489
1,750 Brecksville-Broadview Heights City School District, Ohio, School 12/06 at 102 AAA 1,914,448
Improvement Bonds, Series 1996 (General Obligation -
Unlimited Tax), 6.500%, 12/01/16
2,000 City of Columbus, Ohio, General Obligation Refunding Bonds, 1/02 at 102 Aaa 2,090,360
Series 1992B, 6.500%, 1/01/10
1,300 County of Franklin, Ohio, Refunding Bonds, Series 1993 (General 12/08 at 102 AAA 1,277,809
Obligation - Limited Tax), 5.375%, 12/01/20
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL (continued)
$ 1,505 Greater Cleveland Regional Transit Authority, General Obligation 12/06 at 101 Aaa $ 1,596,609
Capital Improvement Bonds, Series 1996, 5.650%, 12/01/16
1,000 Hilliard City School District, Ohio, General Obligation Bonds, 12/10 at 101 AAA 1,008,610
School Improvement Bonds, Series2000, 5.750%, 12/01/24
1,260 Morgan Local School District, Counties of Morgan, Muskingum 12/10 at 101 AA- 1,269,488
and Washington, Ohio, School Improvement Bonds (General
Obligation - Unlimited Tax), Series 2000, 5.750%, 12/01/22
North Canton City School District, Ohio, School Improvement
Bonds, Series 1994 (General Obligation - Unlimited Tax):
650 9.750%, 12/01/03 No Opt. Call AAA 752,284
715 9.700%, 12/01/04 No Opt. Call AAA 855,090
1,500 Plain Local School District, Franklin and Licking Counties, Ohio, 12/10 at 100 Aaa 1,563,795
Various Purpose Bonds, Series 2000 (General Obligation -
Unlimited Tax), 6.000%, 12/01/20
2,000 Commonwealth of Puerto Rico, Public Improvement Bonds 7/06 at 101 1/2 A 1,950,440
of 1996 (General Obligation Bonds), 5.400%, 7/01/25
1,300 Commonwealth of Puerto Rico, Public Improvement Bonds 7/07 at 101 1/2 A 1,335,035
of 1997, 5.750%, 7/01/17
2,400 Commonwealth of Puerto Rico, Public Improvement Bonds 7/08 at 101 A 2,188,488
of 1998, 5.000%, 7/01/27
1,000 Revere Local School District, Ohio, School Improvement Bonds, 12/03 at 102 AAA 1,026,700
Series 1993 (General Obligation - Unlimited Tax),
6.000%, 12/01/16
2,870 City of Strongsville, Ohio, Various Purpose Improvement 12/06 at 102 Aa3 2,948,007
Bonds, Series 1996 (General Obligation - Limited Tax),
5.950%, 12/01/21
1,000 Sylvania City School District (General Obligation - Unlimited 12/05 at 101 AAA 1,025,390
Tax), Series 1995, 5.800%, 12/01/15
1,135 City of Toledo, Ohio (General Obligation - Limited Tax), Various No Opt. Call AAA 1,220,556
Purpose Improvement Bonds, Series 1994, 7.000%, 12/01/03
1,000 Upper Arlington City School District, General Obligation Bonds, 12/06 at 101 AAA 955,010
Series 1996 Improvement Bonds, 5.250%, 12/01/22
2,000 Board of Education, Wayne Local School District, County 12/06 at 101 AAA 2,057,840
of Warren, Ohio, School Improvement Bonds, Series 1996
(General Obligation - Unlimited Tax), 6.100%, 12/01/24
3,000 Board of Education, West Clermont Local School District, 12/05 at 100 AAA 3,077,310
County of Clermont, Ohio, School Improvement Bonds,
Series 1995 (General Obligation - Unlimited Tax),
6.000%, 12/01/18
1,000 City of Westlake, Ohio, General Obligation, Various Purpose 12/08 at 101 Aaa 1,011,280
Improvement and Refunding Bonds, Series 1997,
5.550%, 12/01/17
1,820 Worthington City School District, Franklin County, Ohio, 6/02 at 102 AAA 1,907,014
Refunding Bonds (General Obligation - Unlimited Tax),
6.375%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 3.5%
1,250 City of Columbus, Ohio, Tax Increment Financing Bonds, 6/09 at 101 AAA 1,109,813
Series 1999 (Easton Project), 4.875%, 12/01/24
1,000 State of Ohio (Ohio Building Authority), State Facilities Bonds 10/02 at 102 AA 1,049,890
(Juvenile Correctional Building Fund Projects), 1992 Series B,
6.000%, 10/01/12
3,000 State of Ohio (Ohio Building Authority), State Facilities Bonds 10/03 at 102 AA 3,169,170
(Adult Correctional Building Fund Projects), 1993 Series A,
6.125%, 10/01/12
925 State of Ohio, Department of Transportation, Certificates 10/00 at 102 AA 936,091
of Participation (Rickenbacker Port Authority Improvements),
6.125%, 4/15/15 (Alternative Minimum Tax)
1,500 State of Ohio (OPFC), Higher Education Capital Facilities 12/01 at 102 AA 1,543,935
Bonds, Series II-1992A, 5.500%, 12/01/06
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 0.2%
500 County of Franklin, Ohio, Revenue Bonds, Series 1993 (Online 4/03 at 100 N/R 502,355
Computer Library Center, Incorporated Project), 6.000%, 4/15/13
<PAGE>
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION - 3.0%
$ 3,430 City of Cleveland, Ohio, Parking Facilities Refunding Revenue 9/06 at 102 AAA $ 3,367,368
Bonds, Series 1996, 5.500%, 9/15/22
Columbus Municipal Airport Authority, Airport Improvement
Revenue Bonds, Series 1994A (Port Columbus International Airport
Project):
830 5.950%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102 AAA 868,371
1,000 6.000%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102 AAA 1,026,150
1,500 City of Dayton, Ohio, Special Facilities Revenue Refunding 2/08 at 102 BBB 1,348,095
Bonds, Series 1998A (Emery Air Freight Corporation and Emery
Worldwide Airlines, Inc., Guarantors), 5.625%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.9%
1,500 City of Akron, Ohio, Waterworks System Mortgage Revenue 3/01 at 102 AAA 1,548,915
Improvement Bonds, Series 1991, 6.550%, 3/01/12
(Pre-refunded to 3/01/01)
2,000 City of Barberton, Ohio Hospital Facilities Revenue Bonds, 1/02 at 102 N/R*** 2,110,000
Series 1992 (The Barberton Citizen's Hospital Company
Project), 7.250%, 1/01/12 (Pre-refunded to 1/01/02)
2,000 County of Carroll, Ohio, Hospital Improvement Revenue Bonds, 12/01 at 102 AAA 2,107,620
Series 1991 (Timken Mercy Medical Center),
7.125%, 12/01/18 (Pre-refunded to 12/01/01)
2,500 County of Clermont, Ohio, Waterworks System Revenue Bonds, 12/01 at 102 AAA 2,619,525
Series 1991, Clermont County Sewer District,
6.625%, 12/01/14 (Pre-refunded to 12/01/01)
2,000 City of Cleveland, Ohio, Public Power System First Mortgage 11/04 at 102 AAA 2,219,700
Revenue Bonds, Series 1994A, 7.000%, 11/15/24
(Pre-refunded to 11/15/04)
590 City of Cleveland, Ohio, Public Power System Improvement First 11/01 at 102 AAA 620,385
Mortgage Revenue Bonds, Series 1991B, 7.000%, 11/15/17
(Pre-refunded to 11/15/01)
1,575 City of Cleveland, Ohio, Waterworks Improvement First Mortgage 1/02 at 102 AAA 1,649,151
Revenue Bonds, Series F, 1992A, 6.500%, 1/01/21
(Pre-refunded to 1/01/02)
2,745 City of Cleveland, Ohio, First Mortgage Revenue Refunding Bonds, 1/02 at 102 AAA 2,874,235
Series F, 1992-B, 6.500%, 1/01/11 (Pre-refunded to 1/01/02)
3,960 City of Cleveland, Ohio, Waterworks Improvement and 1/06 at 102 AAA 4,219,182
Refunding First Mortgage Revenue Bonds, Series H 1996,
5.750%, 1/01/26 (Pre-refunded to 1/01/06)
1,950 City School District of Columbus, Franklin County, Ohio, School 12/02 at 102 AAA 2,080,241
Building Renovation and Improvement Bonds, Series 1992
(General Obligation - Unlimited Tax), 6.650%, 12/01/12
(Pre-refunded to 12/01/02)
3,250 County of Cuyahoga, Ohio, Hospital Revenue Bonds, Series 1991 8/01 at 102 AAA 3,399,013
(Meridia Health System), 7.000%, 8/15/23
(Pre-refunded to 8/15/01)
1,500 County of Cuyahoga, Ohio, Hospital Improvement Revenue Bonds, 1/02 at 102 AA-*** 1,571,670
Series 1992 (University Hospitals Health System, Inc. Project),
6.500%, 1/15/19 (Pre-refunded to 1/15/02)
2,000 Dublin City School District, Franklin, Delaware and 12/02 at 102 AAA 2,112,940
Union Counties, Ohio, Various Purpose School Building
Construction and Improvement Bonds (General Obligation -
Unlimited Tax), 6.200%, 12/01/19 (Pre-refunded to 12/01/02)
2,705 County of Franklin, Ohio, First Mortgage Revenue, 12/00 at 103 AAA 2,971,929
Series 1979 (Online Computer Library Center Inc. Project),
7.500%, 6/01/09
3,250 City of Garfield Heights, Ohio, Hospital Improvement and 11/02 at 102 AA-*** 3,459,170
Refunding Revenue Bonds, Series 1992B (Marymount
Hospital Project), 6.650%, 11/15/11 (Pre-refunded to 11/15/02)
1,000 Hamilton County, Ohio, Sewer System Improvement and 6/01 at 102 AAA 1,038,840
Refunding Revenue Bonds, 1991 Series A (The Metropolitan
Sewer District of Greater Cincinnati), 6.700%, 12/01/13
(Pre-refunded to 6/01/01)
3,000 Kent State University (A State University of Ohio), General 5/02 at 102 AAA 3,159,390
Receipts Bonds, Series 1992, 6.500%, 5/01/22
(Pre-refunded to 5/01/02)
1,000 City of Lakewood, Ohio, Various Purpose General Obligation 12/02 at 102 Aa3*** 1,063,040
Bonds, Series 1992 (Limited Tax Obligation),
6.500%, 12/01/12 (Pre-refunded to 12/01/02)
2,100 Lakota Local School District, County of Butler, Ohio, School 12/05 at 100 AAA 2,260,524
Improvement Bonds (General Obligation -Unlimited Tax),
Series 1994, 6.250%, 12/01/14 (Pre-refunded to 12/01/05)
1,400 City of Middleburg Heights, Ohio, Hospital Improvement 8/01 at 102 AAA 1,460,144
Revenue Bonds, Series 1991 (Southwest General Hospital
Project), 6.750%, 8/15/21 (Pre-refunded to 8/15/01)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 1,000 City of Newark, Ohio, Water System Improvement Bonds 12/03 at 102 AAA $ 1,062,640
(General Obligation - Limited Tax), 6.000%, 12/01/18
(Pre-refunded to 12/01/03)
50 Ohio Water Development Authority, State of Ohio, Water 12/00 at 100 AAA 50,598
Development Revenue Refunding Bonds, Refunding and
Improvement Series, 8.000%, 12/01/18
(Pre-refunded to 12/01/00)
2,500 Commonwealth of Puerto Rico, Public Improvement Bonds 7/02 at 101 1/2 AAA 2,647,475
of 1992 (General Obligation Bonds), 6.600%, 7/01/13
(Pre-refunded to 7/01/02)
1,400 Reynoldsburg City School District, Ohio, General Obligation 12/02 at 102 AAA 1,490,440
Bonds for School Building Construction and Improvement,
6.550%, 12/01/17 (Pre-refunded to 12/01/02)
1,000 Solon City School District, Ohio, School Improvement Bonds, 12/01 at 102 N/R*** 1,052,930
Series 1990 (General Obligation - Unlimited Tax),
7.150%, 12/01/13 (Pre-refunded to 12/01/01)
3,500 University of Cincinnati, General Receipts Bonds, Series O, 12/02 at 102 AA*** 3,705,310
6.300%, 6/01/12 (Pre-refunded to 12/01/02)
1,000 University of Toledo, Ohio, General Receipts Bonds, Series B, 12/02 at 102 AAA 1,050,350
5.900%, 6/01/20 (Pre-refunded to 12/01/02)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.7%
2,410 City of Cleveland, Ohio, Public Power System Improvement 11/01 at 102 AAA 2,527,463
First Mortgage Revenue Bonds, Series 1991B, 7.000%, 11/15/17
1,250 City of Hamilton, Ohio, Electric System Mortgage Revenue 10/02 at 102 AAA 1,286,913
Bonds, 1992 Series B, 6.300%, 10/15/25
4,000 Ohio Air Quality Development Authority, Collateralized Pollution 6/02 at 103 AAA 4,330,200
Control Revenue Refunding Bonds, Series 1992 (The Cleveland
Electric Illuminating Company Project), 8.000%, 12/01/13
Ohio Air Quality Development Authority, Air Quality Development
Revenue Refunding Bonds (JMG Funding, Limited Partnership
Project) Series 1994:
2,000 6.375%, 1/01/29 (Alternative Minimum Tax) 10/04 at 102 AAA 2,064,460
4,000 6.375%, 4/01/29 (Alternative Minimum Tax) 10/04 at 102 AAA 4,128,920
3,000 Ohio Air Quality Development Authority, Air Quality Development 4/07 at 102 AAA 2,925,270
Revenue Bonds (JMG Funding, Limited Partnership Project)
Series 1997, 5.625%, 1/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.5%
1,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage No Opt. Call AAA 1,000,560
Refunding Revenue Bonds, Series G 1993, 5.500%, 1/01/21
City of Cleveland, Ohio, Waterworks Improvement First Mortgage
Revenue Refunding Bonds, Series F, 1992B:
255 6.500%, 1/01/11 1/02 at 102 AAA 266,521
3,720 6.250%, 1/01/16 1/02 at 102 AAA 3,867,349
2,000 City of Cleveland, Ohio, Waterworks Improvement and 1/08 at 101 AAA 1,797,980
Refunding Revenue Bonds, Series I 1998, 5.000%, 1/01/28
40 City of Cleveland, Ohio, Waterworks Improvement and 1/06 at 102 AAA 40,201
Refunding First Mortgage Revenue Bonds, Series H 1996,
5.750%, 1/01/26
2,500 City of Columbus, Ohio, Sewerage System Revenue Refunding 6/02 at 102 Aa2 2,610,100
Bonds, Series 1992, 6.250%, 6/01/08
2,110 Hamilton County, Ohio, Sewer System Revenue Bonds, 6/10 at 101 AAA 2,125,888
2000 Series A (The Metropolitan Sewer District of Greater
Cincinnati), 5.750%, 12/01/25
1,000 County of Montgomery, Ohio, Water Revenue Bonds, 11/02 at 102 AAA 1,031,480
Greater Moraine Beavercreek Sewer District, Series 1992,
6.250%, 11/15/17
<PAGE>
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER (continued)
$ 2,000 Northeast Ohio Regional Sewer District, Wastewater Improvement 11/05 at 101 AAA $ 2,021,860
Revenue Refunding Bonds, Series 1995, 5.600%, 11/15/16
1,000 Ohio Water Development Authority, State of Ohio, Water 6/05 at 102 AAA 1,017,940
Development Revenue Bonds, 1995 Fresh Water Series,
5.900%, 12/01/21
1,250 City of Oxford, Ohio, Water Supply System Mortgage Revenue, 12/02 at 102 AAA 1,307,821
Series 1992 Refunding Bonds, 6.000%, 12/01/14
2,000 Southwest Regional Water District (Ohio), Waterworks System 12/05 at 101 AAA 2,054,300
Revenue Bonds, Series 1995, 6.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
$ 217,085 Total Investments (cost $216,213,574) - 99.1% 222,021,668
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 2,022,872
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $224,044,540
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Nuveen Texas Quality Income Municipal Fund (NTX)
Portfolio of INVESTMENTS July 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BASIC MATERIALS - 3.8%
$ 4,500 Cass County Industrial Development Corporation (Texas), 3/10 at 101 BBB+ $ 4,568,895
Environmental Improvement Revenue Bonds, 2000 Series A
(International Paper Company Project), 6.600%, 3/15/24
(Alternative Minimum Tax)
3,000 Guadalupe-Blanco River Authority, Sewage and Solid Waste 4/06 at 102 AA- 3,109,260
Disposal Facility Bonds (E.I. du Pont de Nemours and Company
Project), Series 1996, 6.400%, 4/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.9%
2,255 Brazos Higher Education Authority, Inc., Student Loan Revenue 3/02 at 102 A 2,357,016
Refunding Bonds, Series 1992-A, 6.875%, 9/01/04
(Alternative Minimum Tax)
1,055 Brazos Higher Education Authority, Inc., Student Loan Revenue , No Opt. Call Aaa 1,117,456
Refunding Bonds, Series 1992C-1 6.650%, 11/01/04
(Alternative Minimum Tax)
205 Brazos Higher Education Authority, Inc., Student Loan Revenue No Opt. Call A 217,585
Refunding Bonds, Subordinate Series 1993A-2,
6.800%, 12/01/04 (Alternative Minimum Tax)
3,035 City of Bryan, Texas (Brazos County), Lease Revenue Bonds 10/05 at 100 AAA 2,968,716
(Blinn College Project), Series 1995, 5.300%, 10/01/16
1,000 City of Georgetown, Texas, Higher Education Finance Corporation, 2/04 at 100 A+ 1,026,960
Higher Education Revenue Bonds, Series 1994 (Southwestern
University Project), 6.300%, 2/15/14
1,000 Southwest Higher Education Authority (Texas), Higher Educational 10/08 at 101 A+ 885,470
Facilities Revenue Bonds (Southern Methodist University),
Series 1998D, 5.000%, 10/01/22
1,445 Tyler Junior College District (Smith and Van Zanlt Counties, 8/04 at 100 AAA 1,478,582
Texas), Combined Fee Improvement Revenue and Refunding
Bonds, Series 1994, 5.900%, 8/15/13
2,000 Board of Regents of The University of Houston System, 2/05 at 100 AAA 2,039,220
Consolidated Revenue Bonds, Series 1995, 6.000%, 2/15/17
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 5.3%
5,000 Gulf Coast Waste Disposal Authority (Valero Energy Corporation 4/08 at 102 BBB- 4,172,900
Project), Series 1998, 5.600%, 4/01/32 (Alternative Minimum Tax)
5,000 Gulf Coast Industrial Development Authority, Waste Disposal 6/08 at 102 BBB- 4,175,400
Revenue Bonds (Valero Refining and Marketing Company
Project), Series 1997, 5.600%, 12/01/31
(Alternative Minimum Tax)
3,000 Gulf Coast Waste Disposal Authority (Texas), Waste Disposal 4/09 at 101 BBB- 2,542,200
Revenue Bonds (Valero Energy Corporation Project),
Series 1999, 5.700%, 4/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 13.6%
3,500 Abilene Health Facilities Development Corporation (Texas), 9/05 at 102 AAA 3,584,175
Hospital Revenue Refunding and Improvement Bonds (Hendrick
Medical Center Project), Series 1995C, 6.150%, 9/01/25
2,000 Brazos County, Texas, Health Facilities Development Corporation, 7/07 at 102 AAA 1,872,220
Franciscan Services Corporation Obligated Group, Revenue
Bonds, Series 1997B, 5.375%, 1/01/28
Gregg County (Texas), Health Facilities Development Corporation,
Hospital Revenue Bonds (Good Shepherd Medical Center Project),
Series 2000:
2,000 6.875%, 10/01/20 10/10 at 101 AA 2,168,760
3,250 6.375%, 10/01/25 10/10 at 101 AA 3,341,098
1,000 Harris County Health Facilities Development Corporation (Texas 10/09 at 101 AA 901,630
Children's Hospital Project), Series 1999A, Hospital Revenue
Bonds, 5.250%, 10/01/29
5,750 Midland County Hospital District, Hospital Revenue Bonds, No Opt. Call A- 3,064,923
Series 1992, 0.000%, 6/01/11
1,760 Parker County Hospital District, Texas Hospital Revenue Bonds 8/09 at 102 BBB 1,588,101
(Campbell Health System), Series 1999, 6.250%, 8/15/19
4,500 Port of Corpus Christi Authority of Nueces County (Texas), 4/02 at 102 BBB 4,547,880
Pollution Control Revenue Bonds (Hoechst Celanese
Corporation), Series 1992, 6.875%, 4/01/17
(Alternative Minimum Tax)
<PAGE>
Nuveen Texas Quality Income Municipal Fund (NTX) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTHCARE (continued)
$ 5,350 Richardson Hospital Authority (Texas), Hospital Revenue Refunding 12/08 at 101 BBB+ $ 4,240,357
and Improvement Bonds (Baylor/Richardson Medical Center
Project), Series 1998, 5.625%, 12/01/28
1,050 Tarrant County Health Facilities Development Corporation 11/08 at 101 A- 882,756
(Texas), Hospital Revenue Bonds, Series 1998 Adventist
Health System/Sunbelt Obligated Group), 5.375%, 11/15/20
1,500 Texas Health Facilities Development Corporation, Hospital 8/03 at 102 AAA 1,536,630
Revenue Bonds (All Saints Episcopal Hospitals of Fort Worth
Project), Series 1993B, 6.250%, 8/15/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.9%
955 Baytown Housing Finance Corporation, Single Family Mortgage 9/02 at 103 Aa2 1,062,380
Revenue Refunding Bonds, Series 1992-A, 8.500%, 9/01/11
845 El Paso Housing Finance Corporation, Single Family Mortgage 4/01 at 103 A2 919,825
Revenue Refunding Bonds, Series 1991A, 8.750%, 10/01/11
610 City of Galveston Property Finance Authority, Inc., Single 9/01 at 103 A3 659,373
Family Mortgage Revenue Bonds, Series 1991A,
8.500%, 9/01/11
1,675 The Harrison County Finance Corporation, Single Family 12/01 at 103 A1 1,720,527
Mortgage Revenue Refunding Bonds, Series 1991,
8.875%, 12/01/11
1,070 Houston Housing Finance Corporation, Single Family 6/03 at 102 AAA 1,080,614
Mortgage Revenue Refunding Bonds, Series 1993A,
5.950%, 12/01/10
665 Port Arthur Housing Finance Corporation, Single Family 9/02 at 103 A 732,039
Mortgage Revenue Refunding Bonds, Series 1992,
8.700%, 3/01/12
2,375 Texas Department of Housing and Community Affairs, 9/06 at 102 AAA 2,405,163
Single Family Mortgage Revenue Bonds, 1996 Series E,
6.000%, 9/01/17
2,400 Travis County Housing Finance Corporation (Texas), Residential 12/01 at 103 AAA 2,473,464
Mortgage Bonds (GNMA and FNMA Mortgage-Backed
Securities Program), Senior Bonds, Series 1991A,
7.050%, 12/01/25
885 Victoria Housing Finance Corporation, Single Family Mortgage No Opt. Call Aaa 918,188
Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4%
3,400 Bell County Health Facilities Development Corporation, 11/08 at 101 A- 2,862,120
Retirement Facility Revenue Bonds (Buckner Retirement
Services, Inc. Obligated Group Project), Series 1998,
5.250%, 11/15/19
2,000 Tarrant County Health Facilities Development Corporation, 1/08 at 105 AAA 2,006,820
Tax-Exempt Mortgage Revenue Bonds (South Central Nursing
Homes Inc. Project), Series 1997A, 6.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.1%
1,000 Caddo Mills Independent School District (Hunt County, Texas), 2/05 at 100 N/R 1,071,310
Unlimited Tax School Building and Refunding Bonds,
Series 1995, 6.375%, 8/15/25
4,130 Coppell Independent School District (Dallas County, Texas), 8/09 at 75 11/32 AAA 1,849,497
Unlimited Tax School Building and Refunding Bonds,
Series 1992, 0.000%, 8/15/14
1,475 City of Corpus Christi (Texas), General Improvement and 3/02 at 100 AAA 1,522,392
Refunding Bonds, Series 1992, 6.700%, 3/01/08
2,800 City of Ennis, Texas (Ennis County), General Obligation 8/02 at 100 AAA 2,896,236
Refunding and Improvement Bonds, Series 1992,
6.500%, 8/01/13
2,000 Harlingen Consolidated Independent School District (Cameron 8/09 at 100 AAA 1,976,040
County, Texas), Unlimited Tax School Building Bonds,
Series 1999, 5.650%, 8/15/29
3,600 Klein Independent School District (Harris County, Texas), 8/09 at 100 AAA 3,386,160
Unlimited Tax Schoolhouse Bonds, Series 1999A,
5.000%, 8/01/18
5,220 Leander Independent School District (Williamson and Travis 8/09 at 46 3/4 AAA 1,414,777
Counties, Texas) Unlimited Tax School Building and Refunding
Bonds, Series 2000, 0.000%, 8/15/21
1,545 Montgomery County (A political subdivision of the State 9/07 at 72 3/8 AAA 710,638
of Texas), Refunding Bonds, Series 1997, 0.000%, 3/01/14
2,000 Northside Independent School District (Bexar County, Texas), 8/10 at 100 AAA 2,031,760
Unlimited Tax School Building and Refunding Bonds,
Series 2000, 5.875%, 8/15/25
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL (continued)
$ 1,825 Socorro Independent School District (El Pasco County, Texas), 2/06 at 100 Aaa $ 1,835,676
Unlimited Tax School Building Bonds, Series 1996,
5.750%, 2/15/21
2,000 State of Texas, Veterans Land Bonds, Series 1994, General 12/04 at 100 Aa1 2,055,740
Obligation Bonds, 6.400%, 12/01/24 (Alternative Minimum Tax)
3,490 State of Texas, Veterans Housing Assistance Bonds, 12/03 at 102 Aa1 3,626,738
Series 1993, General Obligation Bonds, 6.800%, 12/01/23
(Alternative Minimum Tax)
6,290 State of Texas, College Student Loan Bonds, Series 1997, 8/10 at 100 Aa1 5,558,662
5.000%, 8/01/22 (Alternative Minimum Tax)
West Independent School District (McLennan and Hill Counties,
Texas) Unlimited Tax School Building and Refunding Bonds, Series
1998:
1,000 0.000%, 8/15/22 8/13 at 61 7/32 AAA 267,140
1,000 0.000%, 8/15/23 8/13 at 57 31/32 AAA 250,480
1,000 0.000%, 8/15/24 8/13 at 54 7/8 AAA 235,330
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 7.1%
4,500 City of Austin, Texas, Hotel Occupancy Tax Subordinate 11/09 at 100 AAA 4,532,625
Lien Revenue Refunding Bonds, Series 1999, 5.800%, 11/15/29
1,450 Industrial Development Corporation of The City of Galveston, 9/05 at 100 AAA 1,471,257
Sales Tax Revenue Bonds, Series 1995, 5.750%, 9/01/15
1,575 Harris County, Texas, Toll Road Unlimited Tax and Subordinate 8/02 at 102 Aa1 1,657,971
Lien Revenue Refunding Bonds, Series 1992A, 6.500%, 8/15/15
800 City of Laredo, Texas (Webb County), Combination Tax 8/04 at 100 AAA 830,640
and Waterworks System, Revenue Certificates of Obligation,
Series 1994, 5.625%, 8/15/11
1,500 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100 A 1,481,160
Revenue Bonds, Series Y of 1996, 5.500%, 7/01/36
4,580 City of San Antonio, Texas, Hotel Occupancy Tax Revenue 8/06 at 102 AAA 4,570,611
Bonds (Henry B. Gonzalez Convention Center Project),
5.700%, 8/15/26
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.8%
5,295 Alliance Airport Authority, Inc., Special Facilities Revenue 12/00 at 102 Baa1 5,371,883
Bonds, Series 1990 (American Airlines, Inc. Project),
7.500%, 12/01/29 (Alternative Minimum Tax)
5,020 Dallas-Fort Worth International Airport, Facility Improvement 5/02 at 102 AAA 5,259,956
Corporation, United Parcel Service, Inc. Revenue Bonds,
Series 1992, 6.600%, 5/01/32 (Alternative Minimum Tax)
5,050 Dallas-Fort Worth International Airport Facility Improvement 11/09 at 101 Baa1 4,796,692
Corporation, American Airlines, Inc. Revenue Bonds,
Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax)
3,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/04 at 102 AAA 2,910,450
Bonds, Series 1994, 5.375%, 8/15/20
220 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/02 at 102 AAA 231,493
Bonds, Series 1992A, 6.500%, 8/15/17
320 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/00 at 100 AAA 320,550
Bonds, Series 1992B, 6.625%, 8/15/17
5,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/01 at 102 AAA 5,174,850
Bonds, Series 1991A, 6.750%, 7/01/21 (Alternative Minimum Tax)
2,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/06 at 102 Baa2 1,982,080
1996 Series A (American Airlines, Inc. Project),
6.250%, 6/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.4%
270 Abilene Housing Development Corporation, First Lien Revenue No Opt. Call N/R*** 288,833
Bonds, Series 1978, 7.000%, 7/01/08
4,500 Amarillo Health Facilities Corporation, Hospital Revenue 1/02 at 102 AAA 4,711,860
Bonds (High Plains Baptist Hospital Project), Series 1992C,
6.500%, 1/01/07 (Pre-refunded to 1/01/02)
1,000 The City of Beaumont, Texas, Public Improvement Bonds, 3/02 at 100 AAA 1,027,830
Series 1992, 6.250%, 3/01/10 (Pre-refunded to 3/01/02)
1,975 City of Corpus Christi, Texas, General Improvement and 3/02 at 100 AAA 2,043,394
Refunding Bonds, Series 1992, 6.700%, 3/01/08
(Pre-refunded to 3/01/02)
1,185 Fort Bend County Levee Improvement District No. 11 9/04 at 100 AAA 1,287,147
(A Political Subdivision of the State of Texas), Unlimited Tax
Levee Improvement Bonds, Series 1994, 6.900%, 9/01/17
(Pre-refunded to 9/01/04)
<PAGE>
Nuveen Texas Quality Income Municipal Fund (NTX) (continued)
Portfolio of INVESTMENTS July 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 1,780 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/02 at 102 AAA $ 1,883,774
Bonds, Series 1992A, 6.500%, 8/15/17 (Pre-refunded to 8/15/02)
425 Harris County, Texas, Toll Road Unlimited Tax and Subordinate 8/02 at 102 Aa1*** 449,608
Lien Revenue Refunding Bonds, Series 1992, 6.500%, 8/15/15
(Pre-refunded to 8/15/02)
6,110 Harris County Health Facilities Development Corporation 6/02 at 102 A3*** 6,483,260
(Texas), Hospital Revenue Bonds (Memorial Hospital System
Project), Series 1992, 7.125%, 6/01/15 (Pre-refunded to 6/01/02)
485 City of Houston, Texas, Water and Sewer System, Junior Lien 12/01 at 102 AAA 506,636
Revenue Refunding Bonds, Series 1991C, 6.375%, 12/01/17
(Pre-refunded to 12/01/01)
1,000 North Central Texas Health Facilities Development Corporation, No Opt. Call AAA 1,010,690
Hospital Revenue Bonds (Presbyterian Healthcare System
Project), Series 1996B, 5.750%, 6/01/26
2,500 Retama Development Corporation, Special Facilities Revenue No Opt. Call AAA 3,435,025
Bonds (Retama Park Racetrack Project), Series 1993,
8.750%, 12/15/17
City of San Antonio, Texas, Water System Revenue Refunding
Bonds, Series 1992:
1,310 6.500%, 5/15/10 (Pre-refunded to 5/15/02) 5/02 at 102 AAA 1,380,491
665 6.500%, 5/15/10 No Opt. Call AAA 729,678
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.8%
2,000 Brazos River Authority (Texas), Collateralized Pollution Control 3/01 at 102 BBB+ 2,063,880
Revenue Bonds (Texas Utilities Electric Company Project),
Series 1994A, 7.875%, 3/01/21 (Alternative Minimum Tax)
1,500 Brazos River Authority (Texas), Collateralized Pollution Control 12/02 at 102 AAA 1,544,550
Revenue Refunding Bonds (Texas Utilities Electric Company
Project), Series 1992, 6.500%, 12/01/27
(Alternative Minimum Tax)
5,500 Brazos River Authority (Texas), Revenue Refunding Bonds 4/09 at 101 Baa1 4,729,615
(Reliant Energy, Inc. Project) Series 1999A, 5.375%, 4/01/19
2,000 Harris County, Texas, Health Facilities Development Corporation, 2/10 at 100 AAA 2,007,960
Thermal Utility Revenue Bonds (TECO Project), Series 2000,
5.750%, 2/15/15 (Alternative Minimum Tax)
1,500 Matagorda County Navigation District Number One (Texas), 7/03 at 102 AAA 1,515,780
Pollution Control Revenue Refunding Bonds (Central Power
and Light Company Project), Series 1993, 6.000%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.6%
2,500 Bexar, Texas, Metropolitan Development Corporation, 5/08 at 102 AAA 2,241,950
Water Facility Contract Revenue Bonds, Series 1998,
5.000%, 5/01/28
7,000 City of Houston, Texas, Water and Sewer System, Junior Lien No Opt. Call AAA 1,398,810
Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/27
1,000 City of Houston, Texas, Water and Sewer System, Prior 12/02 at 102 A+ 1,040,800
Lien Revenue Refunding Bonds, Series 1992B, 6.375%, 12/01/14
5,000 City of Houston, Texas, Water and Sewer System Junior Lien 12/10 at 100 AAA 4,652,850
Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30 (WI)
6,200 City of Houston, Texas, Water and Sewer System Junior Lien 12/07 at 101 AAA 5,902,276
Revenue Bonds, Series 1997C, 5.375%, 12/01/27
3,515 City of Houston, Texas, Water and Sewer System, Junior Lien 12/01 at 102 AAA 3,662,771
Revenue Refunding Bonds, Series 1991C, 6.375%, 12/01/17
2,525 City of San Antonio, Texas, Water System Revenue 5/02 at 102 AAA 2,651,473
Refunding Bonds, Series 1992, 6.500%, 5/15/10
------------------------------------------------------------------------------------------------------------------------------------
$ 225,165 Total Investments (cost $203,572,011) - 100.7% 205,160,438
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.7)% (1,523,008)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $203,637,430
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Statement of
NET ASSETS July 31, 2000
<TABLE>
<CAPTION>
ARIZONA MICHIGAN MICHIGAN OHIO TEXAS
PREMIUM QUALITY PREMIUM QUALITY QUALITY
(NAZ) (NUM) (NMP) (NUO) (NTX)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in municipal securities,
at market value $92,751,703 $257,604,079 $163,514,686 $222,021,668 $205,160,438
Temporary investments in short-term municipal
securities, at amortized cost, which
approximates market value -- 2,000,000 -- -- --
Cash 452,340 1,965,870 629,161 -- --
Receivables:
Interest 766,129 3,687,584 2,196,365 2,755,774 3,567,276
Investments sold 1,039,894 2,322,851 -- 3,057,938 1,450,461
Other assets 15,906 16,717 11,680 14,239 19,732
------------------------------------------------------------------------------------------------------------------------------------
Total assets 95,025,972 267,597,101 166,351,892 227,849,619 210,197,907
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- 334,559 952,444
Payable for investments purchased 2,297,095 5,039,832 -- 2,437,000 4,630,396
Accrued expenses:
Management fees 50,602 141,833 90,394 121,946 110,830
Other 80,715 102,951 139,587 142,767 139,852
Preferred share dividends payable 13,645 37,539 25,683 39,148 37,821
Common share dividends payable 297,103 846,232 531,029 729,659 689,134
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,739,160 6,168,387 786,693 3,805,079 6,560,477
------------------------------------------------------------------------------------------------------------------------------------
Net assets $92,286,812 $261,428,714 $165,565,199 $224,044,540 $203,637,430
====================================================================================================================================
Preferred shares, at liquidation value $30,000,000 $ 94,000,000 $ 56,000,000 $ 77,000,000 $ 69,000,000
====================================================================================================================================
Preferred shares outstanding 1,200 3,760 2,240 3,080 2,760
====================================================================================================================================
Common shares outstanding 4,369,696 11,513,997 7,695,609 9,476,358 9,440,806
====================================================================================================================================
Net asset value per Common share outstanding (net
assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 14.25 $ 14.54 $ 14.24 $ 15.52 $ 14.26
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of
OPERATIONS Year Ended July 31, 2000
<TABLE>
<CAPTION>
ARIZONA MICHIGAN MICHIGAN OHIO TEXAS
PREMIUM QUALITY PREMIUM QUALITY QUALITY
(NAZ) (NUM) (NMP) (NUO) (NTX)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME $ 5,427,469 $15,796,919 $ 9,634,232 $13,337,223 $12,609,050
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 594,051 1,665,203 1,053,631 1,432,382 1,306,309
Preferred shares - auction fees 75,206 223,947 140,383 193,028 172,972
Preferred shares - dividend disbursing agent fees 10,028 20,053 20,053 23,998 20,053
Shareholders' servicing agent fees and expenses 5,001 29,371 19,447 34,497 12,532
Custodian's fees and expenses 35,974 65,065 46,103 66,360 56,982
Directors'/Trustees' fees and expenses 4,012 6,922 5,158 5,947 5,796
Professional fees 9,381 11,358 49,251 88,852 63,485
Shareholders' reports - printing and mailing expenses 11,288 27,606 16,834 22,941 20,618
Stock exchange listing fees 14,504 26,068 8,041 9,377 10,093
Investor relations expense 7,387 24,460 15,275 19,397 16,317
Other expenses 7,349 21,095 2,359 1,613 9,653
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 774,181 2,121,148 1,376,535 1,898,392 1,694,810
Custodian fee credit (7,934) (25,985) (11,269) (25,219) (17,128)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 766,247 2,095,163 1,365,266 1,873,173 1,677,682
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,661,222 13,701,756 8,268,966 11,464,050 10,931,368
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment
transactions 110,480 134,066 226,680 (648,266) (1,016,933)
Change in net unrealized appreciation
(depreciation) of investments (2,782,750) (6,273,884) (3,456,913) (4,699,152) (5,912,218)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (2,672,270) (6,139,818) (3,230,233) (5,347,418) (6,929,151)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 1,988,952 $ 7,561,938 $ 5,038,733 $ 6,116,632 $ 4,002,217
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of
CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ARIZONA PREMIUM (NAZ) MICHIGAN QUALITY (NUM) MICHIGAN PREMIUM (NMP)
---------------------------- ------------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
7/31/00 7/31/99 7/31/00 7/31/99 7/31/00 7/31/99
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 4,661,222 $ 4,613,736 $ 13,701,756 $ 13,203,200 $ 8,268,966 $ 8,041,945
Net realized gain (loss) from
investment transactions 110,480 430,224 134,066 1,597,218 226,680 629,510
Change in net unrealized
appreciation (depreciation)
of investments (2,782,750) (2,826,155) (6,273,884) (9,085,760) (3,456,913) (5,477,686)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 1,988,952 2,217,805 7,561,938 5,714,658 5,038,733 3,193,769
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (3,737,712) (3,625,685) (10,559,526) (10,504,407) (6,371,737) (6,315,050)
Preferred shareholders (1,096,502) (905,767) (3,452,672) (2,399,721) (2,058,248) (1,644,995)
From accumulated net realized gains
from investment transactions:
Common shareholders -- -- (871,610) (698,100) -- --
Preferred shareholders -- -- (233,861) (176,288) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (4,834,214) (4,531,452) (15,117,669) (13,778,516) (8,429,985) (7,960,045)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 357,127 542,570 393,288 1,645,159 104,960 167,049
Preferred shares - net proceeds from
sale of shares -- -- -- 13,750,608 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions 357,127 542,570 393,288 15,395,767 104,960 167,049
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets (2,488,135) (1,771,077) (7,162,443) 7,331,909 (3,286,292) (4,599,227)
Net assets at the
beginning of year 94,774,947 96,546,024 268,591,157 261,259,248 168,851,491 173,450,718
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $92,286,812 $94,774,947 $261,428,714 $268,591,157 $165,565,199 $168,851,491
===================================================================================================================================
Balance of undistributed
net investment income
at the end of year $ 120,939 $ 293,931 $ 169,982 $ 480,424 $ 227,429 $ 388,448
===================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of
CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
OHIO QUALITY (NUO) TEXAS QUALITY (NTX)
--------------------------------- --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
7/31/00 7/31/99 7/31/00 7/31/99
--------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C>
Net investment income $ 11,464,050 $ 11,408,295 $ 10,931,368 $ 10,912,402
Net realized gain (loss) from investment
transactions (648,266) 76,311 (1,016,933) 1,295,649
Change in net unrealized appreciation
(depreciation) of investments (4,699,152) (4,993,222) (5,912,218) (7,972,278)
--------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 6,116,632 6,491,384 4,002,217 4,235,773
--------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (9,203,697) (9,243,823) (8,553,372) (8,508,627)
Preferred shareholders (2,750,729) (2,225,720) (2,571,967) (2,109,132)
From accumulated net realized gains
from investment transactions:
Common shareholders -- -- (875,163) (701,466)
Preferred shareholders -- -- (214,112) (203,285)
--------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (11,954,426) (11,469,543) (12,214,614) (11,522,510)
--------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 921,543 998,544 65,432 402,016
Preferred shares - net proceeds from
sale of shares -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions 921,543 998,544 65,432 402,016
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (4,916,251) (3,979,615) (8,146,965) (6,884,721)
Net assets at the beginning of year 228,960,791 232,940,406 211,784,395 218,669,116
--------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $224,044,540 $228,960,791 $203,637,430 $211,784,395
================================================================================================================================
Balance of undistributed net
investment income at the end of year $ 85,304 $ 575,680 $ 200,334 $ 394,305
================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds (the "Funds") covered in this report and their corresponding New
York Stock Exchange symbols are Nuveen Arizona Premium Income Municipal Fund,
Inc. (NAZ), Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM), Nuveen
Michigan Premium Income Municipal Fund, Inc. (NMP), Nuveen Ohio Quality Income
Municipal Fund, Inc. (NUO) and Nuveen Texas Quality Income Municipal Fund (NTX).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities within a single state. The
Funds are registered under the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At July
31, 2000, Arizona Premium (NAZ), Michigan Quality (NUM), Ohio Quality (NUO) and
Texas Quality (NTX) had outstanding when-issued purchase commitments of
$2,297,095, $5,039,832, $2,437,000 and $4,630,396, respectively. There were no
such outstanding purchase commitments in Michigan Premium.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common share. Furthermore, each Fund
intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal and designated state income
taxes, to retain such tax-exempt status when distributed to shareholders of the
Funds. All income dividends paid during the fiscal year ended July 31, 2000,
have been designated Exempt Interest Dividends. Net realized capital gain and
market discount distributions are subject to federal taxation.
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts after month-end. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in 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, for each Fund is as
follows:
<TABLE>
<CAPTION>
ARIZONA MICHIGAN MICHIGAN OHIO TEXAS
PREMIUM QUALITY PREMIUM QUALITY QUALITY
(NAZ) (NUM) (NMP) (NUO) (NTX)
--------------------------------------------------------------------------------------------------
Number of shares:
<S> <C> <C> <C> <C> <C>
Series M -- -- 840 680 760
Series Th 1,200 3,200 1,400 1,400 2,000
Series Th2 -- -- -- 1,000 --
Series F -- 560 -- -- --
--------------------------------------------------------------------------------------------------
Total 1,200 3,760 2,240 3,080 2,760
==================================================================================================
</TABLE>
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap, and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the fiscal year ended July 31, 2000.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Reclassification
Certain amounts have been reclassified in the 1999 Financial Highlights to
conform to the 2000 presentation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
<PAGE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
ARIZONA PREMIUM (NAZ) MICHIGAN QUALITY (NUM)
------------------------ -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
7/31/00 7/31/99 7/31/00 7/31/99
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions 23,803 32,273 24,984 97,921
=========================================================================================================
Preferred shares sold -- -- -- 560
=========================================================================================================
<CAPTION>
MICHIGAN PREMIUM (NMP) OHIO QUALITY (NUO)
------------------------ -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
7/31/00 7/31/99 7/31/00 7/31/99
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions 7,104 10,819 57,710 53,929
=========================================================================================================
Preferred shares sold -- -- -- --
=========================================================================================================
<CAPTION>
TEXAS QUALITY (NTX)
-----------------------
YEAR ENDED YEAR ENDED
7/31/00 7/31/99
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions 4,269 25,102
=========================================================================================================
Preferred shares sold -- --
=========================================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid September 1, 2000, to shareholders of record
on August 15, 2000, as follows:
<TABLE>
<CAPTION>
ARIZONA MICHIGAN MICHIGAN OHIO TEXAS
PREMIUM QUALITY PREMIUM QUALITY QUALITY
(NAZ) (NUM) (NMP) (NUO) (NTX)
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dividend per share $.0680 $.0735 $.0690 $.0770 $.0730
=================================================================================================
</TABLE>
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the fiscal year ended July
31, 2000, were as follows:
<TABLE>
<CAPTION>
ARIZONA MICHIGAN MICHIGAN OHIO TEXAS
PREMIUM QUALITY PREMIUM QUALITY QUALITY
(NAZ) (NUM) (NMP) (NUO) (NTX)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $31,022,974 $65,053,135 $55,340,267 $23,959,226 $67,470,288
Short-term municipal securities 14,200,000 21,500,000 12,200,000 9,900,000 5,500,000
Sales and maturities:
Long-term municipal securities 29,986,508 64,428,988 55,739,981 23,608,886 64,948,991
Short-term municipal securities 14,200,000 20,500,000 12,200,000 9,900,000 5,500,000
=========================================================================================================
</TABLE>
At July 31, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
<TABLE>
<CAPTION>
ARIZONA MICHIGAN MICHIGAN OHIO TEXAS
PREMIUM QUALITY PREMIUM QUALITY QUALITY
(NAZ) (NUM) (NMP) (NUO) (NTX)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$90,950,858 $253,508,102 $160,186,584 $216,594,480 $204,169,338
===============================================================================================================
</TABLE>
At July 31, 2000, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
<TABLE>
<CAPTION>
ARIZONA MICHIGAN OHIO TEXAS
PREMIUM PREMIUM QUALITY QUALITY
(NAZ) (NMP) (NUO) (NTX)
---------------------------------------------------------------------------------------------------------
Expiration year:
<S> <C> <C> <C> <C>
2002 $ -- $ -- $ 780,558 $ --
2003 261,670 -- 16,493 --
2004 -- 1,571,409 622,243 --
2005 -- -- -- --
2006 -- -- -- --
2007 -- -- -- --
2008 -- -- 279,929 419,606
----------------------------------------------------------------------------------------------------------
Total $261,670 $1,571,409 $1,699,223 $419,606
=========================================================================================================
</TABLE>
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at July 31, 2000, were as follows:
<TABLE>
<CAPTION>
ARIZONA MICHIGAN MICHIGAN OHIO TEXAS
PREMIUM QUALITY PREMIUM QUALITY QUALITY
(NAZ) (NUM) (NMP) (NUO) (NTX)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
<S> <C> <C> <C> <C> <C>
appreciation $ 3,561,348 $ 9,987,736 $ 5,466,000 $ 7,410,804 $ 7,167,420
depreciation (1,760,503) (3,891,759) (2,137,898) (1,983,616) (6,176,320)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 1,800,845 $ 6,095,977 $ 3,328,102 $ 5,427,188 $ 991,100
=========================================================================================================
</TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
================================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/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.
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
7. COMPOSITION OF NET ASSETS
At July 31, 2000, net assets consisted of:
<TABLE>
<CAPTION>
ARIZONA MICHIGAN MICHIGAN
PREMIUM QUALITY PREMIUM
(NAZ) (NUM) (NMP)
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 30,000,000 $ 94,000,000 $ 56,000,000
Common shares, $.01 par value per share 43,697 115,140 76,956
Paid-in surplus 60,583,001 160,751,953 107,504,120
Balance of undistributed net investment income 120,939 169,982 227,429
Accumulated net realized gain (loss) from investment transactions (305,421) 118,742 (1,730,440)
Net unrealized appreciation of investments 1,844,596 6,272,897 3,487,134
-------------------------------------------------------------------------------------------------------------
Net assets $ 92,286,812 $261,428,714 $165,565,199
=============================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
=============================================================================================================
<CAPTION>
OHIO TEXAS
QUALITY QUALITY
(NUO) (NTX)
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 77,000,000 $ 69,000,000
Common shares, $.01 par value per share 94,764 94,408
Paid-in surplus 143,136,506 133,771,194
Balance of undistributed net investment income 85,304 200,334
Accumulated net realized gain (loss) from investment transactions 2,080,128) (1,016,933)
Net unrealized appreciation of investments 5,808,094 1,588,427
-------------------------------------------------------------------------------------------------------------
Net assets $224,044,540 $203,637,430
=============================================================================================================
Authorized shares:
Common 200,000,000 Unlimited
Preferred 1,000,000 Unlimited
=============================================================================================================
</TABLE>
<PAGE>
<TABLE>
Financial HIGHLIGHTS
Selected data for a common share outstanding throughout each year ended July 31:
<CAPTION>
Investment Operations Less Distributions
-------------------------------------- -------------------------------------------------------------
Net Net
Net Investment Investment Capital Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
ARIZONA PREMIUM (NAZ)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $14.90 $1.06 $(.61) $ .45 $(.85) $ (.25) $-- $-- $(1.10)
1999 15.43 1.07 (.55) .52 (.84) (.21) -- -- (1.05)
1998 15.34 1.05 .10 1.15 (.83) (.23) -- -- (1.06)
1997 14.51 1.06 .81 1.87 (.82) (.22) -- -- (1.04)
1996 14.12 1.05 .38 1.43 (.80) (.24) -- -- (1.04)
<CAPTION>
MICHIGAN QUALITY (NUM)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 15.20 1.19 (.53) .66 (.92) (.30) (.08) (.02) (1.32)
1999 15.91 1.15 (.63) .52 (.92) (.21) (.06) (.02) (1.21)
1998 15.95 1.17 (.01) 1.16 (.95) (.24) (.01) -- (1.20)
1997 15.28 1.18 .72 1.90 (.95) (.24) (.03) (.01) (1.23)
1996 15.10 1.19 .27 1.46 (.95) (.24) (.07) (.02) (1.28)
<CAPTION>
MICHIGAN PREMIUM (NMP)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 14.68 1.07 (.41) .66 (.83) (.27) -- -- (1.10)
1999 15.30 1.05 (.64) .41 (.82) (.21) -- -- (1.03)
1998 15.14 1.04 .19 1.23 (.82) (.25) -- -- (1.07)
1997 14.16 1.05 .97 2.02 (.80) (.24) -- -- (1.04)
1996 13.73 1.05 .41 1.46 (.78) (.25) -- -- (1.03)
<CAPTION>
OHIO QUALITY (NUO)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 16.13 1.21 (.56) .65 (.97) (.29) -- -- (1.26)
1999 16.65 1.21 (.51) .70 (.98) (.24) -- -- (1.22)
1998 16.57 1.22 .09 1.31 (.97) (.26) -- -- (1.23)
1997 15.69 1.23 .88 2.11 (.96) (.27) -- -- (1.23)
1996 15.33 1.23 .35 1.58 (.95) (.27) -- -- (1.22)
<CAPTION>
TEXAS QUALITY (NTX)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 15.13 1.16 (.74) .42 (.91) (.27) (.09) (.02) (1.29)
1999 15.90 1.16 (.72) .44 (.90) (.22) (.07) (.02) (1.21)
1998 15.86 1.17 .07 1.24 (.93) (.27) -- -- (1.20)
1997 15.06 1.19 .81 2.00 (.94) (.26) -- -- (1.20)
1996 14.91 1.21 .21 1.42 (.95) (.27) (.04)+++ (.01)+++ (1.27)
<PAGE>
<CAPTION>
Total Returns
--------------------
Organization
and Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
ARIZONA PREMIUM (NAZ)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C>
2000 $-- $14.25 $14.6250 (8.80)% 1.61%
1999 -- 14.90 17.0000 8.67 1.92
1998 -- 15.43 16.4375 12.18 6.14
1997 -- 15.34 15.4375 17.81 11.74
1996 -- 14.51 13.8750 7.83 8.48
<CAPTION>
MICHIGAN QUALITY(NUM)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C>
2000 -- 14.54 14.0000 (9.92) 2.51
1999 (.02) 15.20 16.6875 2.18 1.62
1998 -- 15.91 17.3125 10.27 5.97
1997 -- 15.95 16.6250 14.02 11.19
1996 -- 15.28 15.5000 11.32 8.07
<CAPTION>
MICHIGAN PREMIUM (NMP)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C>
2000 -- 14.24 13.2500 (6.16) 2.95
1999 -- 14.68 15.0625 5.95 1.23
1998 -- 15.30 15.0000 13.74 6.62
1997 -- 15.14 13.9375 14.95 12.97
1996 -- 14.16 12.8750 14.00 8.88
<CAPTION>
OHIO QUALITY (NUO)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C>
2000 -- 15.52 16.6250 (1.80) 2.50
1999 -- 16.13 18.0000 5.09 2.74
1998 -- 16.65 18.0625 10.14 6.53
1997 -- 16.57 17.3125 14.70 12.14
1996 -- 15.69 16.0000 12.39 8.68
<CAPTION>
TEXAS QUALITY (NTX)
<S> <C> <C> <C> <C> <C>
Year Ended 7/31:
2000 -- 14.26 12.9375 (7.93) 1.15
1999 -- 15.13 15.1875 2.97 1.21
1998 -- 15.90 15.6875 6.45 6.27
1997 -- 15.86 15.6250 11.76 11.93
1996 -- 15.06 14.8750 14.60 7.72
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Before Credit After Credit**
------------------------------------------------- --------------------------------------------------
Ratio of Net Ratio of Net Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to Expenses Income to Expenses Income to
to Average Average to Average Average to Average Average to Average Average
Ending Net Assets Net Assets Total Total Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets Applicable Applicable Net Assets Net Assets
Asset to Common to Common Including Including to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++ Shares++ Shares++ Preferred++ Preferred++
ARIZONA PREMIUM (NAZ)
Year Ended 7/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $ 92,287 1.26% 7.58% .85% 5.09% 1.25% 7.59% .84% 5.10%
1999 94,775 1.29 6.88 .89 4.75 1.29 6.88 .89 4.75
1998 96,546 1.28 6.85 .88 4.71 1.28 6.85 .88 4.71
1997 95,731 1.29 7.18 .87 4.86 1.29 7.18 .87 4.86
1996 92,095 1.33 7.22 .90 4.88 1.33 7.22 .90 4.88
<CAPTION>
MICHIGAN QUALITY(NUM)
Year Ended 7/31:
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 261,429 1.29 8.29 .82 5.28 1.27 8.31 .81 5.29
1999 268,591 1.19 7.28 .82 5.02 1.19 7.28 .82 5.03
1998 261,259 1.19 7.35 .82 5.09 1.19 7.35 .82 5.09
1997 260,247 1.21 7.64 .83 5.23 1.21 7.64 .83 5.23
1996 251,033 1.21 7.77 .83 5.29 1.21 7.77 .83 5.29
<CAPTION>
MICHIGAN PREMIUM (NMP)
Year Ended 7/31:
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 165,565 1.29 7.73 .85 5.07 1.28 7.74 .84 5.08
1999 168,851 1.29 6.82 .87 4.62 1.28 6.83 .87 4.63
1998 173,451 1.29 6.87 .87 4.64 1.29 6.87 .87 4.64
1997 172,275 1.29 7.27 .86 4.83 1.29 7.27 .86 4.83
1996 164,688 1.32 7.38 .87 4.87 1.32 7.38 .87 4.87
<CAPTION>
OHIO QUALITY (NUO)
Year Ended 7/31:
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 224,045 1.31 7.88 .85 5.15 1.29 7.89 .84 5.16
1999 228,961 1.26 7.26 .84 4.87 1.25 7.27 .84 4.88
1998 232,940 1.29 7.37 .86 4.92 1.29 7.37 .86 4.92
1997 231,232 1.30 7.73 .85 5.08 1.30 7.73 .85 5.08
1996 222,151 1.32 7.79 .87 5.09 1.32 7.79 .87 5.09
<CAPTION>
TEXAS QUALITY (NTX)
Year Ended 7/31:
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 203,637 1.27 8.18 .84 5.39 1.26 8.19 .83 5.40
1999 211,784 1.23 7.31 .84 5.00 1.23 7.32 .84 5.00
1998 218,669 1.22 7.40 .83 5.06 1.22 7.40 .83 5.06
1997 217,999 1.22 7.81 .83 5.27 1.22 7.81 .83 5.27
1996 210,423 1.23 7.95 .83 5.36 1.23 7.95 .83 5.36
<PAGE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------
Portfolio
Turnover
Rate
ARIZONA PREMIUM (NAZ)
Year Ended 7/31:
<S> <C>
2000 33%
1999 6
1998 17
1997 11
1996 15
<CAPTION>
MICHIGAN QUALITY (NUM)
Year Ended 7/31:
<S> <C>
2000 25
1999 21
1998 8
1997 11
1996 15
<CAPTION>
MICHIGAN PREMIUM (NMP)
Year Ended 7/31:
<S> <C>
2000 34
1999 9
1998 6
1997 4
1996 17
<CAPTION>
OHIO QUALITY (NUO)
Year Ended 7/31:
<S> <C>
2000 11
1999 3
1998 9
1997 25
1996 19
<CAPTION>
TEXAS QUALITY (NTX)
Year Ended 7/31:
<S> <C>
2000 32
1999 19
1998 17
1997 13
1996 17
<PAGE>
<CAPTION>
Municipal Auction Rate Cumulative
Preferred Stock at End of Year
----------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
ARIZONA PREMIUM (NAZ)
Year Ended 7/31:
<S> <C> <C> <C>
2000 $30,000 $25,000 $76,906
1999 30,000 25,000 78,979
1998 30,000 25,000 80,455
1997 30,000 25,000 79,776
1996 30,000 25,000 76,745
<CAPTION>
MICHIGAN QUALITY (NUM)
Year Ended 7/31:
<S> <C> <C> <C>
2000 94,000 25,000 69,529
1999 94,000 25,000 71,434
1998 80,000 25,000 81,644
1997 80,000 25,000 81,327
1996 80,000 25,000 78,448
<CAPTION>
MICHIGAN PREMIUM (NMP)
Year Ended 7/31:
<S> <C> <C> <C>
2000 56,000 25,000 73,913
1999 56,000 25,000 75,380
1998 56,000 25,000 77,433
1997 56,000 25,000 76,908
1996 56,000 25,000 73,521
<CAPTION>
OHIO QUALITY (NUO)
Year Ended 7/31:
<S> <C> <C> <C>
2000 77,000 25,000 72,742
1999 77,000 25,000 74,338
1998 77,000 25,000 75,630
1997 77,000 25,000 75,075
1996 77,000 25,000 72,127
<CAPTION>
TEXAS QUALITY (NTX)
Year Ended 7/31:
<S> <C> <C> <C>
2000 69,000 25,000 73,782
1999 69,000 25,000 76,733
1998 69,000 25,000 79,228
1997 69,000 25,000 78,985
1996 69,000 25,000 76,240
* Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per share. Total
returns are not annualized.
** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
+++ The amounts shown include distributions in excess of capital gains of $.008
for Common shareholders and $.002 for Preferred shareholders.
</TABLE>
<PAGE>
Build Your Wealth
AUTOMATICALLY
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
<PAGE>
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES CUSTODIAN, TRANSFER AGENT
Robert P. Bremner AND SHAREHOLDER SERVICES
Lawrence H. Brown The Chase Manhattan Bank
Anne E. Impellizzeri 4 New York Plaza
Peter R. Sawers New York, NY 10004-2413
William J. Schneider (800) 257-8787
Timothy R. Schwertfeger
Judith M. Stockdale LEGAL COUNSEL
Morgan, Lewis &
FUND MANAGER Bockius LLP
Nuveen Advisory Corp. Washington, D.C.
333 West Wacker Drive
Chicago, IL 60606 INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended July 31, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors
FOR GENERATIONS
Photo of: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
LOGO: Invest well. Look ahead. LEAVE YOUR MARK.(sm) NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive FAN-1-7-00
Chicago, IL 60606 o www.nuveen.com
