Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
ANNUAL REPORT/JUNE 30, 1995
Photographic image of man seated at breakfast table with wife standing behind
him.
Photographic image of Nuveen Research Department. Four people around a table
working.
Research: a foundation
Your financial plan is in place. You and your adviser have made asset
allocation decisions. For the tax-free portion of your portfolio, you want
dependable income, safety of principal, and
diversification. Solid, reliable Nuveen research helps to keep your tax-free
investments on the path you have chosen.
Paul Williams, Vice President and Manager of Investment Strategies and
Research, emphasizes fundamental research as a strategy for finding value.
<PAGE>
The strength of Nuveen's Research Department is illustrated by the numerous
awards and press coverage we receive. Annual industry polls consistently
recognize the quality and depth of Nuveen Research.
Photographic image of a grouping of awards/statuettes.
At Nuveen, we believe that attention to detail combined with years of
experience is the foundation for sound research. Sound research means finding
quality bonds that deliver timely and ependable income over many decades.
Beyond this, it means adding value by identifying bonds whose credit strengths
are not yet understood by the market.
USING RESEARCH TO TRACK QUALITY AND VALUE
With tens of thousands of bonds available for investment today, the municipal
market is one of the nation's largest--and most complex--securities markets.
At the same time, the number of analysts devoted to researching the municipal
market is comparatively small. While more than 12,000 analysts at nearly 2,000
firms and investment organizations research the 7,500 common stocks available
in the equity market, approximately 1,000 analysts at 400 firms and rating
agencies cover 60,000 municipal bond issues.
Selecting those bonds that will outperform the market and help you achieve
your investment goals depends upon an ability to analyze and understand
complexities ranging from the demand for a new highway or airport to the
impact of an industry closure on the financial position of a town's water and
sewer system.
At Nuveen, we can provide this depth because we have the largest research
staff in the investment banking industry devoted exclusively to the analysis
of municipal bonds. Our award-winning team of more than 30 research
professionals provides invaluable support to our portfolio managers, assisting
them in careful analysis of bond issues considered for purchase--even those
rated AAA.
On a daily basis, our research analysts prepare credit reviews to assist in
the selection of bonds that offer the best combination of yield and security,
monitor the continued creditworthiness of portfolio holdings, and analyze
economic, political, and demographic trends affecting the markets.
The scope of this analysis is broad. We understand the beneficial insights
that can be obtained by assessing the impact of local elections in small towns
or gaining an understanding of the global wood pulp market to accurately
evaluate a municipal issue in Alaska. Recently a financial adviser noticed a
large number of clippings on salmon fishing on one Nuveen analyst's desk. The
analyst explained that the articles provided information on salmon spawning, a
conservation issue having a major impact on public hydroelectric projects in
the Pacific Northwest. With the largest research staff in the industry, we can
analyze subtle but essential details such as this--and apply our findings to
enhance the performance of your portfolio.
<PAGE>
BENEFITING OUR INVESTORS
The Nuveen Research Department supports the investment goals of fund investors
through three major activities:
Primary research and surveillance
Every year, our research staff reviews thousands of tax-exempt issues valued
at more than $100 billion to help our portfolio managers select the most
appropriate bonds based on current yield, price, credit quality, and future
prospects.
A recent example of the way Nuveen Research benefits our shareholders was
our successful investment in Philadelphia water and sewer bonds. When the city
decided to issue bonds to fund badly needed capital improvements, the city's
fiscal difficulties resulted in an issue that was priced below that of other
cities for similar bonds, generating higher income. However, Nuveen's own
research performed independently from the rating agencies indicated that the
city water and sewer system was economically sound and that adequate legal
safeguards would be in place to protect the investment. Following the
completion of the improvements, the prices of these bonds resulted in a
sizable portfolio gain to our shareholders.
Research reports
Just as you rely on your financial adviser for seasoned, prudent advice,
financial advisers depend on Nuveen's research reports to keep current on
market developments. Reports cover issues ranging from credit analysis of
specific states to comprehensive examinations of tax-free investment
strategies and the impact of national and state elections on municipal issues.
(For a list of research reports currently available to you and your adviser,
please refer to the attached reply card.)
Investor interests
We take our responsibility to our shareholders seriously by actively
representing their interests before the industry and government groups that
oversee and regulate the markets. We testified before a U.S. Senate
subcommittee to support better disclosure of financial information by bond
issuers. Our analysis of the effect of the Orange County bankruptcy on other
California issuers helped a California Senate subcommittee understand the
importance of fiscal conservatism and prudent policy decisions. By providing
informed opinions backed by years of experience, we help to define and set
policy that benefits you.
At Nuveen, quality research is one of the core elements of our disciplined
approach to providing you with dependable income, credit quality, and
diversification--key elements of a successful
investment program.
Nuveen's research reports are often used by the press as background when
covering the municipal market in depth.
Photographic image of a grouping of research reports and newspapers.
<PAGE>
Photographic image of man seated at breakfast table with wife standing behind
him.
contents
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
13 Fund performance
15 Commonly used terms
17 Portfolio of investments
35 Statement of net assets
36 Statement of operations
37 Statement of changes in net assets
39 Notes to financial statements
48 Financial highlights
52 Report of independent auditors
53 Nuveen Exchange-Traded Funds dividend reinvestment program
<PAGE>
Municipal market perspective
The year ending June 30, 1995, was an eventful one for the municipal bond
market. During the second half of 1994, as the Federal Reserve Board steadily
raised short-term interest rates in an effort to forestall inflation, the
prices of all bonds and bond funds moved lower. Then, in December, the sudden
announcement of the bankruptcy of Orange County, California, put further
pressure on the municipal market.
During the first six months of 1995, as it appeared that the economy was
indeed headed for a soft landing and that inflation had been thwarted, the
bond market rebounded. In July, the Federal Reserve Board reversed course,
easing short-term interest rates. We're already beginning to see positive
effects from the Fed's program. Since the beginning of the year, interest
rates have moved closer to the levels prevailing before the Fed's tightening
began. Inflation seems to have been held in check, however, a strong stock
market and continued debate about tax reform, including a proposed flat tax,
have had a tempering effect on the performance of the municipal bond market.
<PAGE>
Dear shareholder
Photographic image of Richard Franke, Chairman of Nuveen.
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
Over the past 12 months, we have endured somewhat of a roller-coaster ride in
the municipal bond market. First, we saw the conclusion of one of the worst
periods in recent bond market history, capped by the December bankruptcy of
Orange County, California, a major municipal issuer with a seemingly healthy
credit rating. Then, in early 1995, we experienced a welcome rebound in the
bond markets.
Throughout this turbulent time, we have kept our sights focused on
successfully meeting the objectives of your funds: providing you with a source
of stable current income, credit quality, and enhanced share price relative to
the market as a whole.
As of June 30, 1995, current yields on share prices for the funds covered in
this report ranged from 6.11% to 6.81%. To match these yields, an investor in
the 36% federal income tax bracket would have had to earn at least 9.55% on
taxable alternatives of comparable quality; when state taxes are added to this
equation, the tax advantage provided by municipal bonds is even greater. As we
all know, taxable yields of this level can be difficult to achieve in today's
markets.
These yields remind us of the important role that municipal bonds--with
their tax-free income--play as part of a successful investment strategy
focused on diversification and long-term performance. As we saw in 1994,
fluctuations in interest rates, the markets, and the economy in general can
cause us to reconsider our investment strategies. At such times, it is
important to remember that performance over the long term is the true measure
of an investment. And over time, municipal bonds have proven to be a valuable
and dependable component of successful investment programs.
It is your long-term financial plan that prompted you to make the initial
choice to include municipal bonds as an integral part of our investment
portfolio. As part of a long-term strategy, Nuveen offers not only the income
and credit safety of municipal bonds, but also the convenience of investment
products that provide direct access to diversification, professional
management, and stock exchange trading convenience. Our exchange-traded funds
make it easier for you to be well diversified across market sectors, while
saving you the time and effort involved if you were to structure and monitor a
portfolio of individual municipal bonds yourself.
<PAGE>
As 1995 concludes, we will be keeping a close eye on credit trends. With the
expansion of the economy, the financial strength of municipal issuers is
continuing to improve. By now, most observers have concluded that the Orange
County default was an anomaly, related to an unusually speculative investment
approach rather than any inherent weakness in the municipal bond market
itself. Of course, since the funds in this report specialize in bonds of
certain states, they did not hold any California bonds. If you are interested
in credit quality, you may want to read the article at the beginning of this
report to learn more about the role and activities of our award-winning
research department, including the tracking and monitoring of developments in
the credit arena.
We expect that municipal bonds will continue to be fundamentally sound
investments for attractive, tax-free income. As a higher percentage of our
population enters retirement and pre-retirement years, we anticipate the
demand for tax-free municipal bonds to remain strong.
In closing, I'd like to take this opportunity to assure you that your choice
of Nuveen as your fund manager is a wise one. We appreciate your continued
confidence and look forward to providing you with quality tax-free investments
in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
August 15, 1995
<PAGE>
Answering your questions
Photographic image of montage of letters received by Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
recent developments in the municipal market and the outlook for Nuveen's
Exchange-Traded Funds
I have read that some of Nuveen's Funds are "leveraged." How exactly does
leverage work? What are the advantages of leverage to me as a common
shareholder?
All Nuveen exchange-traded funds issue common shares and provide an attractive
stream of monthly tax-free income. Many of our funds, including all funds in
this report, are able to generate a higher level of income for common
shareholders through a strategy called leverage.
Here's how leverage works: Some investors look for investments offering
short-term liquidity. To meet the needs of these investors, certain Nuveen
exchange-traded funds issue preferred shares paying a short-term rate that is
lower than the rate earned on the fund's long-term portfolio. Proceeds from
the issuance of the preferred shares are used to buy additional
investment-grade long-term bonds. Common shareholders benefit from these
additional holdings through the extra income generated by the difference
between the long-term rates earned by the fund and the short-term rates paid
to preferred shareholders.
For example, if we pay out 4% to investors who want short-term liquidity
while investing for the long term at 7%, the difference of 3% increases the
income available to the common shareholders.
However, leverage can add volatility to fund shares because all changes in
value are attributed to the common shareholder--both up and down. At Nuveen,
we take a prudent approach to leverage, carefully balancing risk and return,
limiting the percentage of leverage in a given portfolio at the time of
issuance, and moderating portfolio fluctuations through conservative portfolio
management.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
What do you see happening to dividends over the next few months?
Over the past year, even with the uneven markets, the monthly dividends paid
by Nuveen's exchange-traded funds has remained relatively stable. This is
mainly due to two factors: our dividend policy and our emphasis on credit
quality.
<PAGE>
At Nuveen, we set our core dividend rates at levels that we consider
sustainable over time, factoring in such influences as short-term interest
rate trends, the expected number of bond calls, and reinvestment. Nonetheless,
eventually changes in dividend rates should be expected in response to
interest rate movements.
What impact have interest rates had on bond portfolios? Where are these rates
trending over the next year?
Over the past 15 months, all bond investors, including holders of
exchange-traded municipal bond funds, have felt the effect of rising interest
rates on the value of their fixed income portfolios.
At Nuveen, we don't believe it is consistently possible to forecast
directions in interest rates or the economy as a whole. We concentrate on
those aspects of fund performance where we can exercise some control: credit
quality, relative value, and diversification.
If you are concerned about the direction of interest rates, you may want to
consider "laddering" your portfolio. Laddering is a strategy in which an
investor purchases three or more funds with varying average maturities. Mixing
the maturity and yield profile of funds within a total portfolio can reduce
the overall effect of increases and decreases in interest rates.
What about the future?
At Nuveen, we recommend viewing your investment as part of a long-term
strategy. The benefits of taking the long view are two-fold. First, market
timing is rarely successful. That is the attempt to buy when the market is at
its lowest point and to sell at its peak. Statistics show that, over time, the
rewards of investing tend to go to those who set and maintain clear investment
objectives and strategies, rather than to those who change their approach with
every change in the markets.
Second, you must also consider your long-term needs for diversification and
dependable income, the reasons you chose Nuveen's exchange-traded municipal
funds in the first place. While the markets may fluctuate, your investment
needs are more constant. With municipal bonds being one of the last remaining
tax shelters, Nuveen's exchange-traded funds continue to provide the
risk/reward balance and the steady source of tax-free income that are
important elements of a prudent investment program.
<PAGE>
<TABLE>
nuveen new jersey investment quality municipal fund, INC.
NQJ
In keeping with the Fund's objective of providing steady tax-free income,
shareholders enjoyed 12 months of steady dividends, in addition to two
supplemental dividends and a capital gains dividend.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
7/94 $0.0810
8/94 $0.0810 $0.0200
9/94 $0.0810
10/94 $0.0810
11/94 $0.0810 $0.0150
12/94 $0.0810 $0.0201
1/95 $0.0810
2/95 $0.0810
3/95 $0.0810
4/95 $0.0810
5/95 $0.0810
6/95 $0.0810
<CAPTION>
FUND HIGHLIGHTS 7/30/95
<S> <C>
Yield 6.65%
Taxable-equivalent yield 11.08%
Annual total return on NAV 9.71%
Taxable-equivalent total return 14.42%
Share price $14.625
NAV $15.06
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
nuveen new jersey premium income municipal fund, INC.
NNJ
Shareholders benefitted from an attractive level of income; the core dividend
rate was raised twice during the period. In addition, shareholders received a
supplemental dividend in November and a capital gains distribution in
December.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
7/94 $0.0640
8/94 $0.0640
9/94 $0.0640
10/94 $0.0640
11/94 $0.0640 $0.0150
12/94 $0.0660 $0.0131
1/95 $0.0660
2/95 $0.0660
3/95 $0.0675
4/95 $0.0675
5/95 $0.0675
6/95 $0.0675
<CAPTION>
FUND HIGHLIGHTS 6/30/95
<S> <C>
Yield 6.11%
Taxable-equivalent yield 10.18%
Annual total return on NAV 10.39%
Taxable-equivalent total return 14.49%
Share price $13.250
NAV $13.97
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
nuveen Pennsylvania investment quality municipal fund
NQP
In keeping with the Fund's objective of providing steady tax-free income,
shareholders enjoyed 12 months of steady dividends, in addition to a
supplemental dividend in August.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
7/94 $0.0880
8/94 $0.0880 $0.0100
9/94 $0.0880
10/94 $0.0880
11/94 $0.0880
12/94 $0.0880
1/95 $0.0880
2/95 $0.0880
3/95 $0.0880
4/95 $0.0880
5/95 $0.0880
6/95 $0.0880
<CAPTION>
FUND HIGHLIGHTS 6/30/95
<S> <C>
Yield 6.81%
Taxable-equivalent yield 10.98%
Annual total return on NAV 9.77%
Taxable-equivalent total return 14.12%
Share price $15.50
NAV $15.86
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
<TABLE>
nuveen pennsylvania premium income municipal fund 2
NPY
Shareholders benefitted from an attractive level of income; the core dividend
rate was raised twice during the period. In addition, shareholders received a
supplemental dividend in August.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
7/94 $0.0650
8/94 $0.0650 $0.0100
9/94 $0.0650
10/94 $0.0650
11/94 $0.0660
12/94 $0.0660
1/95 $0.0660
2/95 $0.0660
3/95 $0.0685
4/95 $0.0685
5/95 $0.0685
6/95 $0.0685
<CAPTION>
FUND HIGHLIGHTS 6/30/95
<S> <C>
Yield 6.38%
Taxable-equivalent yield 10.29%
Annual total return on NAV 12.87%
Taxable-equivalent total return 16.95%
Share price $12.875
NAV $13.25
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly
dividend on a given date (in the case of this report, June 30, 1995) divided
by its closing price per share on that date.
Taxable equivalent yield
The return an investor subject to a given state and federal income tax rate
would need to obtain from a fully taxable investment to equal the fund's
stated annualized yield on share price. In this report, these tax rates are
assumed to be 40% for NJ, and 38% for PA, based on incomes of
$117,950-$256,500 for investors filing singly, $143,600-$256,500 for those
filing jointly.
Net Asset Value
(NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by the total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
<PAGE>
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value per share, both up and down, are also
magnified by leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended June 30, 1995. Any future
repur-chases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 400,000 New Jersey Economic Development Authority, Pollution
Control (New Jersey Central Power and Light
Company), 7.100%, 7/01/15 7/01 at 103 A3 $ 422,508
3,260,000 New Jersey Economic Development Authority (New
Jersey Natural Gas Company), 7.050%, 3/01/16 3/98 at 102 A2 3,423,293
New Jersey Economic Development Authority (New
Jersey Natural Gas Company), Alternative Minimum Tax:
5,000,000 8.500%, 6/01/18 6/97 at 100 A2 5,140,850
2,000,000 7.250%, 3/01/21 3/98 at 102 A2 2,097,260
5,000,000 New Jersey Economic Development Authority
(Elizabethtown Gas Company), Alternative Minimum
Tax, 6.625%, 10/01/21 10/96 at 102 A3 5,112,650
5,600,000 New Jersey Economic Development Authority (Liberty
State Park Project), 6.800%, 3/15/22 3/02 at 102 A1 5,942,608
1,700,000 New Jersey Economic Development Authority
(Bridgewater Resources, Inc.), 9.500%, 2/01/01 No Opt. Call N/R 1,758,174
3,000,000 New Jersey Economic Development Authority (American
Airlines Inc.), Alternative Minimum Tax,
7.100%, 11/01/31 11/01 at 102 Baa2 3,110,160
5,000,000 New Jersey Economic Development Authority (New
Jersey-American Water Company), Alternative Minimum
Tax, 7.400%, 11/01/01 No Opt. Call N/R 5,064,600
4,825,000 New Jersey Economic Development Authority (Hackensack
Water Company), Alternative Minimum Tax,
7.000%, 10/01/17 10/96 at 102 A 4,988,568
5,000,000 New Jersey Economic Development Authority (J and J
Snack Foods Corporation), Alternative Minimum Tax,
7.250%, 12/01/05 12/96 at 105 N/R 5,117,650
New Jersey Economic Development Authority (New Jersey
Performing Arts Center):
610,000 6.600%, 6/15/04 6/01 at 102 A+ 656,055
3,800,000 6.750%, 6/15/12 6/01 at 102 A+ 3,917,534
2,500,000 New Jersey Economic Development Authority,
7.000%, 7/01/04 No Opt. Call Aaa 2,853,075
New Jersey Educational Facilities Authority (Seton Hall
University):
500,000 6.875%, 7/01/10 7/01 at 102 Baa 522,960
2,500,000 7.000%, 7/01/21 7/01 at 102 Baa 2,631,100
New Jersey General Obligation:
5,000,000 5.750%, 2/15/06 No Opt. Call Aa1 5,221,950
5,000,000 6.000%, 2/15/11 No Opt. Call Aa1 5,137,700
5,000,000 6.375%, 8/01/11 8/02 at 101 1/2 Aa1 5,256,500
1,000,000 New Jersey Health Care Facilities Financing Authority
(Deborah Heart and Lung Center), 6.200%, 7/01/13 7/03 at 102 Baa1 987,200
420,000 New Jersey Higher Education Assistance Authority,
Student Loan, 7.200%, 7/01/09 7/01 at 102 A 435,733
New Jersey Highway Authority (Garden State Parkway):
3,500,000 6.250%, 1/01/14 1/02 at 102 AA- 3,586,835
9,300,000 7.250%, 1/01/16 (Pre-refunded to 1/01/99) 1/99 at 102 AAA 10,314,630
1,000,000 5.750%, 1/01/19 1/02 at 100 AA- 966,270
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
New Jersey Housing and Mortgage Finance Agency:
$ 3,000,000 6.800%, 11/01/05 11/02 at 102 AA+ $ 3,199,830
2,500,000 6.900%, 11/01/07 11/01 at 103 AA+ 2,665,875
4,700,000 6.950%, 11/01/08 11/01 at 103 AA+ 5,011,187
1,000,000 7.100%, 11/01/11 11/01 at 103 AA+ 1,060,450
9,650,000 6.950%, 11/01/13 5/02 at 102 A+ 10,162,415
3,250,000 6.700%, 11/01/28 11/02 at 102 A+ 3,335,703
12,000,000 7.000%, 5/01/30 11/01 at 102 AAA 12,560,520
New Jersey Housing and Mortgage Finance Agency,
Alternative Minimum Tax:
3,255,000 7.600%, 10/01/09 10/99 at 102 Aaa 3,487,960
5,500,000 6.300%, 4/01/25 10/00 at 102 Aaa 5,555,000
1,000,000 5.950%, 4/01/25 10/00 at 102 Aaa 976,060
1,075,000 5.500%, 10/01/26 10/03 at 102 Aaa 989,516
New Jersey Health Care Facilities Financing Authority
(St. Peter's Medical Center):
4,875,000 6.875%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 5,511,431
7,000,000 7.250%, 7/01/13 (Pre-refunded to 7/01/97) 7/97 at 102 AAA 7,516,530
4,410,000 New Jersey Health Care Facilities Financing Authority
(Burlington Geriatric Centers), 9.700%, 7/01/12
(Pre-refunded to 7/01/96) 7/96 at 102 AAA 4,720,464
300,000 New Jersey Health Care Facilities Financing Authority
(Community Medical Center/Kensington Manor Care
Center), 7.000%, 7/01/20 7/00 at 102 Aaa 327,603
5,800,000 New Jersey Health Care Facilities Financing Authority
(St. Clare's Riverside Medical Center), 7.750%, 7/01/14
(Pre-refunded to 7/01/97) 7/97 at 102 Aaa 6,320,608
3,600,000 New Jersey Health Care Facilities Financing Authority
(Atlantic City Medical Center), 6.800%, 7/01/05 7/02 at 102 A 3,821,184
7,500,000 New Jersey Health Care Facilities Financing Authority
(JFK Health Systems), 6.600%, 7/01/08 7/01 at 102 Aaa 8,041,125
9,300,000 New Jersey Health Care Facilities Financing Authority
(Centrastate Medical Center), 6.625%, 7/01/11 7/01 at 102 Aaa 9,840,516
3,000,000 New Jersey Health Care Facilities Financing Authority
(Beth Israel Hospital Association of Passaic),
6.250%, 7/01/14 7/99 at 100 Aaa 3,055,080
2,250,000 New Jersey Health Care Facilities Financing Authority
(Robert Wood Johnson University Hospital),
6.625%, 7/01/16 7/01 at 102 Aaa 2,386,688
4,350,000 New Jersey Health Care Facilities Financing Authority
(Mercer Medical Center), 6.500%, 7/01/10 7/01 at 102 Aaa 4,617,003
5,025,000 New Jersey Health Care Facilities Financing Authority
(Pascack Valley Hospital Association), 6.700%, 7/01/11 7/01 at 102 A- 5,188,011
New Jersey Health Care Facilities Financing Authority
(Barnert Hospital):
1,365,000 6.750%, 8/01/11 8/01 at 102 Aaa 1,427,408
3,200,000 6.800%, 8/01/19 8/01 at 102 Aaa 3,279,584
4,705,000 New Jersey Health Care Facilities Financing Authority
(Palisades Medical Center), 7.500%, 7/01/06 7/02 at 102 Ba 4,778,633
500,000 New Jersey Health Care Facilities Financing Authority
(Overlook Hospital), 6.700%, 7/01/13 7/97 at 102 Aaa 526,635
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,800,000 New Jersey Health Care Facilities Financing Authority
(Atlantic City Medical Center), 6.800%, 7/01/11 7/02 at 102 A $ 2,920,456
2,445,000 New Jersey Sports and Exposition Authority,
6.500%, 3/01/19 3/02 at 102 Aa 2,563,460
New Jersey State General Obligation:
8,200,000 6.750%, 9/15/07 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 9,201,630
850,000 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 956,097
New Jersey Turnpike Authority:
9,000,000 6.500%, 1/01/08 No Opt. Call Aaa 9,814,410
5,000,000 6.900%, 1/01/14 7/95 at 101 A 5,066,300
6,875,000 6.500%, 1/01/16 No Opt. Call A 7,378,938
3,000,000 New Jersey Wastewater Treatment Trust, 7.375%, 5/15/08 5/98 at 102 Aaa 3,261,480
2,250,000 New Jersey Water Supply Authority, Water System
(Delaware and Raritan System), Alternative Minimum
Tax, 7.875%, 11/01/13 11/98 at 102 A+ 2,503,553
2,500,000 Atlantic County Utilities Authority, Sewer System,
5.000%, 1/15/13 1/97 at 100 Aaa 2,279,000
1,500,000 Bedminster Board of Education, Certificates of Participation,
7.125%, 9/01/10 3/01 at 102 A1 1,629,675
3,000,000 Bergen County General Obligation, 5.500%, 8/15/07 No Opt. Call Aaa 3,071,850
7,000,000 Bergen County Utility Authority, Water Pollution Control
System, 6.500%, 12/15/12 6/02 at 102 Aaa 7,418,600
Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resource Recovery System),
Alternative Minimum Tax:
3,700,000 7.500%, 12/01/09 12/01 at 102 Baa1 3,759,496
3,500,000 7.500%, 12/01/10 12/01 at 102 Baa1 3,556,280
Cape May County Municipal Utilities Authority:
2,000,000 6.000%, 1/01/11 1/03 at 102 Aaa 2,065,760
2,205,000 9.000%, 1/01/16 1/96 at 102 Aaa 2,297,808
5,600,000 5.750%, 1/01/16 1/03 at 102 Aaa 5,494,272
1,000,000 Dover Board of Education, Certificates of Participation,
6.600%, 6/01/11 12/01 at 100 Aaa 1,047,750
1,265,000 East Brunswick Township General Obligation,
5.125%, 4/01/13 4/03 at 101 Aa 1,151,416
7,800,000 Essex County Fiscal Year Adjustment, 6.500%, 12/01/11 12/01 at 101 Aaa 8,289,060
4,095,000 Evesham Township Board of Education, Certificates of
Participation, 6.875%, 9/01/11 9/01 at 102 Aaa 4,489,512
2,320,000 Hoboken General Obligation, 8.900%, 8/01/06 No Opt. Call Aaa 3,047,738
5,250,000 Howell Township General Obligation, 6.800%, 1/01/14 1/02 at 102 Aaa 5,698,665
3,790,000 Hudson County Improvement Authority Multi-Family
Housing (Observer Park Project), Alternative Minimum
Tax, 6.900%, 6/01/22 6/04 at 100 AAA 3,927,388
Jersey City Fiscal Year Adjustment:
3,675,000 8.400%, 5/15/06 No Opt. Call Aaa 4,666,772
8,200,000 6.600%, 5/15/11 5/01 at 102 Aaa 8,791,794
1,625,000 Long Branch Housing Finance Corporation (Washington
Manor Association), 10.000%, 10/01/11 10/98 at 100 N/R 1,664,358
Mercer County Improvement Authority, Custodial
Receipts:
3,000,000 6.050%, 1/01/09 No Opt. Call Aa 2,929,800
1,585,000 6.050%, 1/01/13 No Opt. Call Aa 1,528,701
1,000,000 6.050%, 1/01/14 No Opt. Call Aa 963,400
1,720,000 6.050%, 1/01/16 No Opt. Call Aa 1,653,677
2,000,000 6.050%, 1/01/17 No Opt. Call Aa 1,921,080
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 950,000 Mercer County Improvement Authority (County
Courthouse), 6.600%, 11/01/14 (Pre-refunded
to 11/01/00) 11/00 at 102 Aa1 $ 1,052,629
8,000,000 Middlesex County Pollution Control Authority
(Amerada Hess), 6.875%, 12/01/22 12/02 at 102 N/R 8,191,280
3,500,000 Monmouth County Improvement Authority, Sewage
Facilities, 6.750%, 2/01/13 (Pre-refunded to 2/01/01) 2/01 at 102 Aaa 3,911,880
2,000,000 Morristown General Obligation, 6.500%, 8/01/19 8/05 at 102 Aaa 2,149,120
2,475,000 Ocean County Utilities Authority Wastewater System,
8.375%, 1/01/18 (Pre-refunded to 1/01/97) 1/97 at 102 Aa 2,676,911
1,200,000 Passaic County General Obligation, 6.700%, 9/01/10
(Pre-refunded to 9/01/99) 9/99 at 102 N/R 1,324,008
4,000,000 Passaic Valley Sewer Commissioners, 5.800%, 12/01/18 12/02 at 102 Aaa 3,890,000
1,180,000 Raritan Township Municipal Utility Authority,
6.450%, 5/01/12 5/02 at 102 A+ 1,217,937
Rutgers State University:
2,900,000 6,500%, 5/01/13 5/02 at 102 AA 3,063,125
1,725,000 6.500%, 5/01/18 5/02 at 102 AA 1,818,357
6,250,000 Salem County Pollution Control Authority (E.I. DuPont -
Chambers Works Project), Alternative Minimum Tax,
6.500%, 11/15/21 11/01 at 102 Aa2 6,407,375
1,465,000 South Toms River Sewerage Authority, 7.400%, 11/01/05 11/02 at 102 N/R 1,525,841
10,000,000 Union County Utilities Authority, Solid Waste System,
Alternative Minimum Tax, 6.850%, 6/15/14 6/02 at 102 Aaa 10,275,400
2,450,000 University of Medicine and Dentistry of New Jersey,
6.500%, 12/01/18 12/01 at 102 AA 2,576,126
2,400,000 Port Authority of New York and New Jersey,
8.000%, 12/01/23 2/96 at 102 AA- 2,502,240
4,300,000 Port Authority of New York and New Jersey , Special
Project, LaGuardia Airport Passenger Terminal (Delta
Air Lines), 6.950%, 6/01/08 6/02 at 102 Ba1 4,465,894
3,355,000 Port Authority of New York and New Jersey, Alternative
Minimum Tax, 8.125%, 8/15/23 8/95 at 102 AA- 3,439,378
6,000,000 Puerto Rico Electric Power Authority, 7.000%, 7/01/11 7/01 at 102 A- 6,480,660
Puerto Rico Housing Finance Corporation, Single
Family Mortgage:
1,000,000 6.750%, 10/15/13 10/01 at 102 Aaa 1,044,929
5,500,000 6.850%, 10/15/24 10/01 at 102 Aaa 5,753,714
$385,425,000 Total Investments - (cost $386,805,284) - 96.4% 405,805,862
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.7%
$ 1,350,000 New Jersey Economic Development Authority, Dock
Facility (Bayonne/IMTT), Variable Rate Demand
Bonds, 4.550%, 12/01/27t VMIG-1 1,350,000
1,700,000 Port Authority of New York and New Jersey, Special
Obligation, Versatile Structure, Variable Rate
Demand Bonds, Alternative Minimum Tax,
4.250%, 8/01/28t VMIG-1 1,700,000
$ 3,050,000 Total Temporary Investments - 0.7% 3,050,000
============
Other Assets Less Liabilities - 2.9% 12,087,704
Net Assets - 100% $420,943,566
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 42 $196,994,338 49%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 26 78,511,999 19
PORTFOLIO OF A+ A1 8 29,365,480 7
INVESTMENTS A, A- A, A2, A3 13 52,476,411 13
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 6 14,567,196 4
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 2 9,244,527 2
INVESTMENTS): Non-rated Non-rated 7 24,645,911 6
TOTAL 104 $405,805,862 100%
<FN>
* 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.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security.
The rate disclosed is that currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,145,000 New Jersey Economic Development Authority, Natural
Gas Facilities, Alternative Minimum Tax,
7.250%, 3/01/21 3/98 at 102 A2 $ 1,200,681
3,600,000 New Jersey Economic Development Authority (Yeshiva
K'tana of Passaic), 8.000%, 9/15/18 No Opt. Call N/R 4,054,428
7,000,000 New Jersey Economic Development Authority (Bridgewater
Resources, Inc.), Alternative Minimum Tax,
8.375%, 11/01/04 No Opt. Call N/R 7,299,810
1,485,000 New Jersey Economic Development Authority
(Elizabethtown Water Company), Alternative Minimum
Tax, 6.700%, 8/01/21 8/01 at 102 A3 1,521,130
6,235,000 New Jersey Economic Development Authority (New
Jersey American Water Company), Alternative
Minimum Tax, 5.500%, 6/01/23 6/03 at 102 Aaa 5,767,250
3,255,000 New Jersey Economic Development Authority (Morris
Hall/St. Lawrence, Inc.), 6.150%, 4/01/13 4/03 at 102 A+ 3,247,644
3,485,000 New Jersey Economic Development Authority (Public
School Small Project Loan Program), 5.400%, 8/15/12 8/03 at 102 AAA 3,349,294
New Jersey Economic Development Authority, Alternative
Minimum Tax:
1,380,000 5.000%, 10/01/05 10/03 at 102 AA- 1,371,140
4,435,000 5.300%, 12/01/07 12/03 at 102 Aa1 4,434,779
1,500,000 New Jersey Economic Development Authority,
7.000%, 7/01/04 No Opt. Call Aaa 1,711,845
New Jersey Educational Facilities Authority (Trenton
State College):
1,000,000 6.750%, 7/01/08 7/95 at 100 1/2 A+ 1,008,200
2,095,000 6.000%, 7/01/09 7/02 at 102 Aaa 2,159,589
1,000,000 New Jersey Educational Facilities Authority (New Jersey
Institute of Technology), 6.000%, 7/01/24 7/04 at 102 Aaa 1,006,390
1,940,000 New Jersey Educational Facilities Authority (Princeton
University), 5.875%, 7/01/20 7/04 at 100 Aaa 1,908,785
New Jersey General Obligation:
5,260,000 5.750%, 2/15/06 No Opt. Call Aa1 5,493,491
4,000,000 5.800%, 2/15/07 No Opt. Call Aa1 4,143,480
2,500,000 6.000%, 2/15/11 No Opt. Call Aa1 2,568,850
2,385,000 6.800%, 9/15/11 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 2,682,696
1,560,000 6.000%, 2/15/13 No Opt. Call Aa1 1,607,970
New Jersey Health Care Facilities Financing Authority
(Dover General Hospital and Medical Center):
1,015,000 7.000%, 7/01/03 No Opt. Call Aaa 1,139,713
800,000 7.000%, 7/01/04 No Opt. Call Aaa 901,248
2,000,000 New Jersey Health Care Facilities Financing Authority
(Overlook Hospital), 6.700%, 7/01/13 7/97 at 102 Aaa 2,106,540
1,760,000 New Jersey Health Care Facilities Financing Authority
(JFK Health System), 5.400%, 7/01/13 7/03 at 102 Aaa 1,661,334
2,450,000 New Jersey Health Care Facilities Financing Authority
(Mountainside Hospital), 5.500%, 7/01/14 7/03 at 102 Aaa 2,328,162
New Jersey Health Care Facilities Financing Authority
(St. Peter's Medical Center):
4,300,000 5.000%, 7/01/11 7/03 at 102 Aaa 3,919,321
2,000,000 5.000%, 7/01/13 7/03 at 102 Aaa 1,797,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 New Jersey Health Care Facilities Financing Authority
(Wayne General Hospital), 5.750%, 8/01/11 8/04 at 102 AAA $ 986,530
1,400,000 New Jersey Health Care Facilities Financing Authority
(Allegheny Health System-Our Lady of Lourdes
Medical Center), 5.125%, 7/01/13 7/04 at 102 Aaa 1,279,208
2,000,000 New Jersey Health Care Facilities Financing Authority
(Monmouth Medical Center), 6.250%, 7/01/16 7/04 at 102 Aaa 2,049,540
New Jersey Higher Educational Assistance Authority,
Student Loan, Alternative Minimum Tax:
1,000,000 6.125%, 7/01/09 7/02 at 102 A+ 989,360
5,645,000 5.300%, 7/01/10 7/03 at 102 A+ 5,087,048
New Jersey Housing Finance Agency:
10,880,000 8.250%, 11/01/20 11/95 at 100 A1 10,988,800
2,795,000 7.250%, 11/01/23 11/95 at 100 A1 2,802,910
2,250,000 New Jersey Housing Finance Agency, Special Pledge
Revenue Obligations, 9.000%, 11/01/18 11/95 at 104 A1 2,366,910
New Jersey Housing and Mortgage Finance Agency:
2,365,000 6.700%, 5/01/05 5/02 at 102 A+ 2,510,282
8,000,000 6.950%, 11/01/13 5/02 at 102 A+ 8,424,800
250,000 6.600%, 11/01/14 11/02 at 102 A+ 257,158
4,250,000 6.700%, 11/01/28 11/02 at 102 A+ 4,362,073
2,150,000 New Jersey Housing and Mortgage Finance Agency,
Alternative Minimum Tax, 5.500%, 10/01/26 10/03 at 102 Aaa 1,979,032
2,000,000 New Jersey Sports and Exposition Authority,
5.500%, 9/01/23 9/03 at 101 Aa 1,887,960
3,300,000 New Jersey State General Obligation, 6.800%, 9/15/10
(Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 3,711,906
New Jersey Turnpike Authority:
3,400,000 10.375%, 1/01/03 No Opt. Call AAA 4,127,464
1,000,000 6.500%, 1/01/08 No Opt. Call A 1,082,010
7,700,000 6.500%, 1/01/16 No Opt. Call A 8,264,410
500,000 Bayshore Regional Sewerage Authority, 5.400%, 5/01/12 5/03 at 102 Aaa 480,200
Bergen County Utility Authority, Solid Waste System:
1,000,000 7.750%, 3/15/13 (Pre-refunded to 3/15/98) 3/98 at 100 Aaa 1,089,890
5,000,000 5.500%, 6/15/13 6/02 at 100 Aaa 4,828,450
4,655,000 Bergen County Utility Authority, Water Pollution Control
System, 5.500%, 12/15/15 6/02 at 100 Aaa 4,483,417
6,600,000 Camden County Pollution Control Financing Authority,
Solid Waste Disposal and Resource Recovery, Alternative
Minimum Tax, 7.125%, 12/01/01 No Opt. Call BBB+ 6,544,164
3,500,000 Camden County Pollution Control Finance Authority,
Solid Waste Disposal and Resource Recovery System,
7.250%, 12/01/10 12/01 at 102 BBB+ 3,552,430
890,000 Camden Board of Education, 5.000%, 10/01/06 10/03 at 101 Aaa 863,843
Cape May County Municipal Utilities Authority:
5,250,000 5.750%, 1/01/16 1/03 at 102 Aaa 5,150,880
1,000,000 5.000%, 1/01/16 1/03 at 102 Aaa 910,350
7,100,000 Delaware River and Bay Authority, 5.000%, 1/07/17 1/04 at 102 Aaa 6,342,998
2,000,000 East Brunswick Township General Obligation,
5.125%, 4/01/13 4/03 at 101 Aa 1,820,420
500,000 Essex County Improvement Authority, 6.000%, 12/01/17 12/02 at 102 Aaa 503,185
250,000 Franklin Township Somerset County School District,
Certificates of Participation, 6.900%, 12/15/00 6/99 at 100 Aaa 272,660
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Jersey City Sewerage Authority, 6.250%, 1/01/14 No Opt. Call Aaa $ 1,056,490
2,000,000 Lacey Municipal Utility Authority, 5.500%, 12/01/19 12/03 at 102 Aaa 1,902,020
1,000,000 Long Branch Housing Finance Corporation (Washington
Manor Association), 10.000%, 10/01/11 10/98 at 100 N/R 1,024,220
Mercer County Improvement Authority, Custodial Receipts:
750,000 6.050%, 1/01/11 7/95 at 100 Aa 728,003
1,000,000 6.050%, 1/01/12 No Opt. Call Aa 969,590
Mercer County Improvement Authority, Solid Waste,
Alternative Minimum Tax:
1,000,000 6.400%, 4/01/06 4/02 at 102 Aaa 1,068,910
3,500,000 6.700%, 4/01/13 4/02 at 102 Aaa 3,666,915
525,000 New Brunswick Housing and Urban Development
Authority, 5.500%, 8/01/16 8/03 at 102 Aaa 497,999
2,500,000 New Brunswick Parking Authority, 5.400%, 9/01/15 9/03 at 102 Aaa 2,373,225
600,000 North Arlington General Obligation, 4.800%, 2/01/10 No Opt. Call Aaa 545,304
2,275,000 Northwest Bergen County Utilities Authority,
7.500%, 7/15/13 (Pre-refunded to 7/15/96) 7/96 at 102 Aaa 2,403,378
2,940,000 Ocean County Utilities Authority, 5.750%, 1/01/18 1/02 at 102 Aa 2,860,473
1,000,000 Parsippany-Troy Hills Township General Obligation,
5.000%, 2/01/08 No Opt. Call Aa1 958,470
Passaic County General Obligation:
4,000,000 5.125%, 9/01/12 No Opt. Call Aaa 3,770,760
500,000 5.200%, 9/01/16 9/03 at 101 Aaa 459,370
1,040,000 Passaic Valley Sewer Commissioners, 5.750%, 12/01/10 12/02 at 102 Aaa 1,043,692
685,000 Pinelands Regional Board of Education, Certificates of
Participation, 5.500%, 4/01/98 No Opt. Call N/R 695,755
2,510,000 Piscataway Township School District, Certificates of
Participation, 5.375%, 12/15/10 6/03 at 102 Aaa 2,424,334
Rutgers State University:
2,000,000 8.125%, 5/01/17 (Pre-refunded to 5/01/97) 5/97 at 102 Aaa 2,182,040
1,000,000 5.000%, 5/01/19 5/03 at 102 AA 867,150
865,000 South Jersey Port Corporation, 4.900%, 1/01/08 No Opt. Call A+ 797,893
1,950,000 South Jersey Port Corporation, Alternative Minimum
Tax, 5.750%, 1/01/13 1/03 at 102 A+ 1,872,137
650,000 Southern Gloucester County Board of Education,
General Obligation, 5.000%, 10/01/14 No Opt. Call Aaa 595,036
1,000,000 Stony Brook Regional Sewer Authority, 5.450%, 12/01/12 No Opt. Call Aa 949,290
Sussex County Municipal Utilities Authority, General
Obligation:
1,220,000 5.250%, 12/01/08 12/03 at 102 Aaa 1,194,648
2,720,000 5.375%, 12/01/14 12/03 at 102 Aaa 2,577,118
3,500,000 Sussex County Municipal Utility Authority,
7.875%, 12/01/13 (Pre-refunded to 12/01/98) 12/98 at 102 AAA 3,966,270
4,500,000 Sussex County Municipal Utility Authority, Solid Waste,
5.500%, 12/01/13 12/02 at 100 Aaa 4,343,265
7,425,000 Union County Utilities Authority, Solid Waste System,
Alternative Minimum Tax, 7.200%, 6/15/14 6/02 at 102 A- 7,686,880
1,500,000 Wanaque Valley Regional Sewer Authority,
5.750%, 9/01/18 No Opt. Call Aaa 1,488,480
1,585,000 Warren County Municipal Utilities Authority, Wastewater
System, 5.300%, 12/01/11 12/03 at 101 Aaa 1,474,732
750,000 Port Authority of New York and New Jersey,
5.000%, 10/01/14 10/03 at 101 AA- 669,697
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,000,000 Port Authority of New York and New Jersey, Alternative
Minimum Tax, 6.600%, 10/01/23 10/04 at 101 Aaa $ 3,176,250
6,000,000 Puerto Rico Public Buildings Authority, 5.750%, 7/01/15 7/03 at 101 1/2 A 5,706,060
Puerto Rico Electric Power Authority:
3,230,000 5.875%, 7/01/06 7/95 at 101 A 3,249,185
3,500,000 6.250%, 7/01/17 7/02 at 101 1/2 A- 3,509,520
7,000,000 Puerto Rico Industrial Medical Educational and
Environmental Authority (American Home Products),
5.100%, 12/01/18 12/03 at 103 A2 6,269,200
$251,435,000 Total Investments - (cost $252,461,030) - 97.7% 251,415,717
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.9%
$ 1,450,000 New Jersey Economic Development Authority, Dock
Facility (Bayonne/IMTT), Variable Rate Demand Bonds,
4.550%, 12/01/27t VMIG-1 1,450,000
600,000 Port Authority of New York and New Jersey, Special
Obligation, Versatile Structure, Variable Rate
Demand Bonds, Alternative Minimum Tax,
4.250%, 8/01/28t VMIG-1 600,000
300,000 Port Authority of New York and New Jersey, Special
Obligation Bonds, Versatile Structure, Variable Rate
Demand Bonds, 4.150%, 6/01/20t VMIG-1 300,000
$ 2,350,000 Total Temporary Investments - 0.9% 2,350,000
============
Other Assets Less Liabilities - 1.4% 3,485,073
Net Assets - 100% $257,250,790
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 49 $107,315,254 43%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 17 37,725,365 15
PORTFOLIO OF A+ A1 13 44,715,215 18
INVESTMENTS A, A- A, A2, A3 9 38,489,076 15
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 10,096,594 4
TEMPORARY Non-rated Non-rated 4 13,074,213 5
INVESTMENTS):
TOTAL 94 $251,415,717 100%
<FN>
* 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.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 4,000,000 Pennsylvania Economic Development Financing
Authority (MacMillan Bloedel Limited Partnership),
Alternative Minimum Tax, 7.600%, 12/01/20 12/05 at 102 Baa2 $ 4,326,320
Pennsylvania General Obligation:
1,000,000 5.375%, 4/15/11 4/03 at 101 1/2 AA- 953,350
6,000,000 6.375%, 9/15/11 3/02 at 101 1/2 AA- 6,284,220
4,970,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, 6.800%, 12/01/00 No Opt. Call Aaa 5,290,466
4,000,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, Alternative Minimum Tax,
7.150%, 9/01/21 9/01 at 102 Aaa 4,211,440
2,000,000 Pennsylvania Higher Educational Facilities Authority
(Lycoming College), 8.375%, 10/01/18 (Pre-refunded
to 10/01/98) 10/98 at 102 N/R 2,283,500
4,250,000 Pennsylvania Higher Educational Facilities Authority
(University of Pennsylvania), 6.625%, 1/01/17 1/97 at 100 Aa 4,351,235
10,580,000 Pennsylvania Higher Educational Facilities Authority
(Thomas Jefferson University), 6.000%, 7/01/19 7/99 at 102 Aa 10,343,220
6,780,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, 6.900%, 4/01/17 4/02 at 102 Aa 7,131,001
Pennsylvania Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax:
5,000,000 7.625%, 10/01/10 10/99 at 102 Aa 5,310,250
2,750,000 6.250%, 10/01/15 (DD) 4/05 at 102 Aa 2,737,158
1,000,000 7.000%, 4/01/24 4/02 at 102 Aa 1,042,990
3,825,000 Pennsylvania State University, 6.250%, 3/01/11 3/01 at 102 A 3,966,946
Pennsylvania Turnpike Commission:
1,650,000 6.500%, 12/01/13 12/01 at 102 A1 1,725,966
4,500,000 7.200%, 12/01/17 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 5,197,320
1,865,000 5.500%, 12/01/17 12/02 at 102 Aaa 1,755,133
Allegheny County (Greater Pittsburgh International
Airport), Alternative Minimum Tax:
8,000,000 8.200%, 1/01/08 1/98 at 102 Aaa 8,738,640
5,785,000 7.750%, 1/01/19 1/98 at 100 Aaa 6,205,512
2,500,000 6.625%, 1/01/22 1/02 at 102 Aaa 2,606,250
6,300,000 Allegheny County Hospital Development Authority
(St. Margaret Memorial Hospital), 7.125%, 10/01/21 10/01 at 100 A- 6,472,746
14,180,000 Allegheny County Residential Finance Authority, Single
Family (GNMA), Alternative Minimum Tax,
0.000%, 5/01/27 No Opt. Call Aaa 1,381,416
395,000 Altoona Redevelopment Authority, Home Improvement,
Alternative Minimum Tax, 7.150%, 12/01/09 12/01 at 102 A 417,969
5,000,000 Beaver County Industrial Development Authority,
Pollution Control (Ohio Edison Project),
7.750%, 9/01/24 9/99 at 102 Baa3 5,197,200
1,800,000 Berks County Municipal Authority, Pennsylvania Higher
Education Pooled Financing Program (University of
Pennsylvania Project), 6.700%, 9/01/07 (Pre-refunded
to 9/01/97) 9/97 at 100 AAA 1,899,900
2,180,000 Berks County Redevelopment Authority, Senior Single
Family Mortgage, Alternative Minimum Tax,
8.000%, 12/01/17 No Opt. Call A 2,451,388
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Bethlehem Authority Water System:
$ 3,045,000 6.250%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 100 Aaa $ 3,310,920
4,000,000 6.250%, 11/15/21 (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 4,349,320
8,250,000 Blair County Hospital Authority (Mercy Hospital),
8.125%, 2/01/14 2/99 at 102 BBB+ 8,623,890
5,000,000 Butler County Hospital Authority (North Hills Passavant
Hospital), 7.000%, 6/01/22 6/01 at 102 Aaa 5,413,750
3,300,000 Chester County Hospital Authority (Paoli Memorial
Hospital), 7.625%, 10/01/13 (Pre-refunded to 10/01/96) 10/96 at 102 N/R 3,514,830
4,500,000 Delaware County Authority (Villanova University),
6.900%, 8/01/16 8/01 at 100 Aaa 4,766,985
3,750,000 Delaware County Industrial Development Authority
(Philadelphia Electric Project), 7.375%, 4/01/21 4/01 at 102 Baa1 3,909,750
3,400,000 Erie County Hospital Authority (Hamot Medical Center),
7.100%, 2/15/10 2/01 at 102 Aaa 3,704,776
4,390,000 Fairview Township Authority, Sewer System,
6.700%, 11/01/21 11/01 at 100 Aaa 4,617,885
2,875,000 Franklin County Industrial Development Authority
(Chambersburg Hospital), 6.700%, 7/01/08 7/99 at 102 Aaa 3,036,259
400,000 Greater Lebanon Refuse Authority, Solid Waste,
7.000%, 11/15/04 11/02 at 100 A- 411,556
2,000,000 Hampton Township School District, General Obligation,
6.750%, 11/15/21 (Pre-refunded to 11/15/04) 11/04 at 100 Aaa 2,278,540
3,400,000 Lehigh County General Purpose Authority (Allentown
College of St. Francis de Sales), 6.750%, 12/15/12 6/02 at 100 AAA 3,570,748
4,000,000 Lower Pottsgrove Township Authority Sewer System,
6.700%, 11/01/16 11/99 at 100 Aaa 4,206,120
Luzerne County Industrial Development Authority
(Pennsylvania Gas and Water Company), Alternative
Minimum Tax:
3,000,000 7.200%, 10/01/17 10/02 at 102 Baa3 3,068,550
5,000,000 7.000%, 12/01/17 12/04 at 102 Aaa 5,585,650
3,550,000 7.125%, 12/01/22 12/02 at 102 Baa3 3,610,492
3,130,000 McKean County Solid Waste Authority, 6.650%, 1/01/12 1/02 at 100 Aaa 3,270,694
5,000,000 Montgomery County Industrial Development (Philadelphia
Electric Co. Project), 8.875%, 6/01/16 6/96 at 102 BBB+ 5,269,050
5,500,000 Montgomery County Industrial Development Authority,
Resource Recovery, 7.500%, 1/01/12 1/99 at 100 AA 5,883,020
1,000,000 Philadelphia Authority for Industrial Development (PGH
Development Corporation), 7.000%, 7/01/17
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,111,660
4,885,000 Philadelphia Authority for Industrial Development,
Convertible Project, 7.125%, 7/01/17 (Pre-refunded to
7/01/99) 7/99 at 102 AA 5,448,827
1,250,000 Philadelphia Authority for Industrial Development
(National Board of Medical Examiners), 6.750%, 5/01/12 5/02 at 102 A+ 1,307,325
Philadelphia Gas Works:
3,345,000 7.875%, 7/01/17 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 3,653,208
4,270,000 7.700%, 6/15/21 (Pre-refunded to 6/15/01) 6/01 at 102 Aaa 5,003,373
8,530,000 Philadelphia Hospital and Higher Educational Facilities
Authority (St. Agnes Medical Center), 7.250%, 8/15/31 8/01 at 102 Aa 8,906,088
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 8,800,000 Philadelphia Hospital and Higher Educational Facilities
Authority (Presbyterian Medical Center),
7.250%, 12/01/21 (Pre-refunded to 12/01/01) 12/01 at 102 A- $ 10,081,984
3,520,000 Philadelphia Hospitals and Higher Educational Facilities
Authority (Magee Rehabilitation Hospital),
7.000%, 12/01/10 12/01 at 102 Aaa 3,839,792
Philadelphia Hospitals and Higher Educational Facilities
Authority (Children's Hospital of Philadelphia):
1,000,000 5.375%, 2/15/14 2/03 at 102 Aa 928,280
1,410,000 7.000%, 7/01/15 (Pre-refunded to 7/01/97) 7/97 at 100 Aaa 1,490,356
4,100,000 6.500%, 2/15/21 (Pre-refunded to 2/15/02) 2/02 at 102 Aaa 4,568,466
630,000 Philadelphia Hospital and Higher Educational Facilities
Authority (Children's Seashore House), 7.000%, 8/15/03 8/02 at 102 A- 673,325
Philadelphia Municipal Authority, Justice Lease Revenue:
1,500,000 7.100%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,723,005
9,900,000 7.125%, 11/15/18 (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 11,385,396
Philadelphia School District General Obligation:
850,000 6.500%, 5/15/05 (Pre-refunded to 5/15/02) 5/02 at 100 3/4 Aaa 941,987
3,250,000 7.000%, 7/01/05 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 3,602,300
Philadelphia Water and Sewer:
1,500,000 7.900%, 7/01/05 (Pre-refunded to 7/01/96) 7/96 at 102 AAA 1,588,530
5,750,000 7.250%, 7/01/14 (Pre-refunded to 7/01/96) 7/96 at 102 AAA 5,997,538
10,625,000 7.000%, 8/01/18 (Pre-refunded to 8/01/01) 8/01 at 100 Baa 11,877,156
2,865,000 Pittsburgh Urban Redevelopment Authority, Alternative
Minimum Tax, 7.050%, 4/01/23 10/01 at 102 A1 2,964,014
1,000,000 Pittsburgh Urban Redevelopment Authority, FHA-Insured
Project, Alternative Minimum Tax, 7.125%, 8/01/13 8/02 at 102 A 1,026,670
3,000,000 Pittsburgh Water and Sewer Authority, Water and Sewer
System, 7.625%, 9/01/04 No Opt. Call Aaa 3,483,300
3,250,000 Pittsburgh Water and Sewer Authority, 6.500%, 9/01/14
(Pre-refunded to 9/01/01) 9/01 at 102 Aaa 3,617,933
2,500,000 St. Mary's Hospital Authority (Franciscan Health
System/St. Mary of Langhorne), 6.500%, 7/01/12 7/02 at 102 Aaa 2,608,025
5,500,000 Sayre Health Care Facilities Authority (Guthrie
Healthcare System), 7.200%, 12/01/20 12/01 at 103 Aaa 6,089,214
Scranton-Lackawanna Health and Welfare Authority
(University of Scranton):
3,730,000 7.400%, 6/15/10 (Pre-refunded to 6/15/00) 6/00 at 102 Aaa 4,231,760
2,900,000 6.500%, 3/01/13 3/02 at 102 A- 3,028,440
8,475,000 Somerset County General Authority Commonwealth
Lease, 7.000%, 10/15/13 (Pre-refunded to 10/15/01) 10/01 at 100 Aaa 9,549,800
5,000,000 Southeastern Pennsylvania Transportation Authority,
5.750%, 3/01/20 3/05 at 101 Aaa 4,790,050
5,000,000 State Public School Building Authority (Hazleton Area
School District), 6.500%, 3/01/08 3/01 at 100 Aaa 5,235,250
2,545,000 Temple University, Commonwealth System, Higher
Education, FHA Insured, 7.250%, 8/01/11
(Pre-refunded to 8/01/98) 8/98 at 100 Aaa 2,767,356
3,500,000 Upper Merion Area School District, General Obligation,
6.900%, 9/01/16 (Pre-refunded to 9/01/01) 9/01 at 100 Aa 3,909,920
3,000,000 Warrington Township Municipal Authority, Water and
Sewer, 7.100%, 12/01/21 12/99 at 100 Aaa 3,249,330
5,000,000 West Chester Area School District, General Obligation,
6.700%, 1/15/11 (Pre-refunded to 1/15/01) 1/01 at 100 Aa 5,485,300
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 5,450,000 West View Municipal Authority, 9.500%, 11/15/14 No Opt. Call Aaa $ 7,476,745
5,000,000 Westmoreland County General Obligation,
6.700%, 8/01/09 (Pre-refunded to 8/01/01) 8/01 at 100 Aaa 5,537,650
1,350,000 Wilkes-Barre General Municipal Authority (College
Misericordia), Alternative Minimum Tax,
7.750%, 12/01/12 12/00 at 100 N/R 1,462,278
$332,980,000 Total Investments - (cost $318,659,688) - 97.0% 345,325,952
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.6%
Allegheny County Hospital Development Authority
(Presbyterian-University Health System), Variable Rate
Demand Bonds:
$ 1,095,000 4.100%, 3/01/18t VMIG-1 1,095,000
1,101,000 4.100%, 3/01/20t VMIG-1 1,101,000
3,500,000 Delaware County Industrial Development Authority,
Airport Facility (UPS), Variable Rate Demand Bonds,
4.250%, 12/01/15t A-1+ 3,500,000
$ 5,696,000 Total Temporary Investments - 1.6% 5,696,000
============
Other Assets Less Liabilities - 1.4% 4,809,042
Net Assets - 100% $355,830,994
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 45 $188,939,748 55%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 68,714,859 20
PORTFOLIO OF A+ A1 3 5,997,305 2
INVESTMENTS A, A- A, A2, A3 9 28,531,024 8
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 8 45,882,408 13
TEMPORARY Non-rated Non-rated 3 7,260,608 2
INVESTMENTS):
TOTAL 82 $345,325,952 100%
<FN>
* 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.
(DD) Security purchased on a delayed delivery basis (note 1).
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 6,500,000 Pennsylvania Certificates of Participation, 5.250%, 7/01/10 7/03 at 102 Aaa $ 6,132,555
2,000,000 Pennsylvania Finance Authority (Beaver County
Municipal Capital Improvement), 6.600%, 11/01/09 11/03 at 102 A 2,069,420
1,000,000 Pennsylvania General Obligation, 5.300%, 5/01/04 No Opt. Call AA- 1,011,170
11,000,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, Alternative Minimum Tax,
6.050%, 1/01/19 1/03 at 102 Aaa 10,730,830
1,805,000 Pennsylvania Higher Educational Facilities Authority,
7.625%, 7/01/15 No Opt. Call Aaa 2,184,663
2,075,000 Pennsylvania Higher Educational Facilities Authority
(University of Pennsylvania), 6.625%, 1/01/17 1/97 at 100 Aa 2,124,427
1,250,000 Pennsylvania Higher Educational Facilities Authority
(Allegheny College), 6.000%, 11/01/22 11/03 at 102 BBB+ 1,201,263
4,140,000 Pennsylvania Higher Educational Facilities Authority
(Duquesne University), 5.500%, 9/01/20 9/03 at 102 Aaa 3,923,891
1,450,000 Pennsylvania Higher Educational Facilities Authority
(Drexel University), 6.375%, 5/01/17 5/03 at 102 BBB+ 1,445,607
Pennsylvania Higher Educational Facilities Authority:
7,000,000 5.700%, 6/15/15 6/03 at 100 Aaa 6,804,840
1,250,000 5.375%, 6/15/18 6/03 at 100 Aaa 1,163,550
4,615,000 Pennsylvania Higher Educational Facilities Authority
(Widener University), 5.250%, 7/15/11 7/03 at 102 AAA 4,329,192
Pennsylvania Higher Educational Facilities Authority
(Thomas Jefferson University):
1,000,000 5.300%, 11/01/15 11/03 at 102 AA 927,160
6,365,000 6.000%, 7/01/19 7/99 at 102 AA 6,222,551
Pennsylvania Housing Finance Agency, Rental Housing
(FNMA):
5,000,000 6.400%, 7/01/12 7/02 at 102 Aaa 5,130,550
1,500,000 5.750%, 7/01/14 7/03 at 102 Aaa 1,461,120
9,625,000 5.800%, 7/01/18 7/03 at 102 Aaa 9,316,615
Pennsylvania Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax:
2,000,000 5.450%, 10/01/17 10/03 at 102 Aa 1,851,800
11,000,000 5.600%, 10/01/25 10/03 at 102 Aa 9,936,300
Pennsylvania Industrial Development Authority:
2,000,000 7.000%, 7/01/06 No Opt. Call Aaa 2,286,100
1,550,000 7.000%, 1/01/07 No Opt. Call Aaa 1,764,009
1,000,000 7.000%, 7/01/07 No Opt. Call Aaa 1,140,940
Pennsylvania Intergovernmental Cooperative Authority
(City of Philadelphia Funding Program):
1,000,000 5.600%, 6/15/15 6/03 at 100 Aaa 956,020
1,000,000 5.600%, 6/15/16 6/03 at 100 Aaa 954,900
5,000,000 5.625%, 6/15/23 6/03 at 100 Aaa 4,714,950
Pennsylvania State University:
2,000,000 6.750%, 7/01/14 (Pre-refunded to 7/01/99) 7/99 at 102 N/R 2,204,380
6,600,000 5.500%, 8/15/16 8/02 at 102 AA- 6,207,234
Pennsylvania Turnpike Commission:
1,000,000 5.500%, 12/01/17 12/01 at 100 Aaa 941,090
8,000,000 5.500%, 12/01/17 12/02 at 102 Aaa 7,528,720
Allegheny County (Pittsburgh International Airport),
Alternative Minimum Tax:
1,000,000 5.625%, 1/01/16 1/03 at 102 Aaa 940,390
4,500,000 5.625%, 1/01/23 1/03 at 102 Aaa 4,171,635
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 750,000 Allegheny County Hospital Development Authority
(Rehabilitation Institute of Pittsburgh),
7.000%, 6/01/22 6/02 at 102 BBB $ 746,333
Allegheny County Hospital Development Authority
(Presbyterian University Health System):
3,000,000 6.250%, 11/01/23 11/02 at 100 Aaa 3,029,490
5,000,000 6.000%, 11/01/23 11/02 at 102 Aaa 4,915,900
1,625,000 Allegheny County Residential Finance Authority,
Single Family Mortgage, Alternative Minimum Tax,
5.625%, 11/01/23 11/03 at 102 Aaa 1,465,961
1,070,000 Allegheny Composite Housing Development
Corporation, FHA-Insured Mortgage (Grayson Court
Project), 6.100%, 2/01/24 8/03 at 100 Aa 1,033,481
1,070,000 Berks County General Obligation,
7.800%, 11/15/05 (Pre-refunded to 11/15/98) 11/98 at 100 Aaa 1,189,958
9,065,000 Bethlehem Area School District, General Obligation,
5.600%, 9/01/12 3/01 at 100 Aaa 8,897,660
Bethlehem Authority Water System:
3,785,000 6.100%, 11/15/18 (Pre-refunded to 11/15/02) 11/02 at 100 Aaa 4,104,416
3,100,000 6.100%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 100 Aaa 3,361,609
4,570,000 Bucks County Redevelopment Authority (Country
Commons Apartments), Alternative Minimum Tax,
6.200%, 8/01/14 8/03 at 100 A 4,529,327
Bucks County Water and Sewer Authority:
3,000,000 5.400%, 12/01/12 12/03 at 100 Aaa 2,844,180
1,235,000 5.375%, 12/01/19 12/03 at 100 Aaa 1,151,600
1,250,000 Center Township Sewer Authority, 5.500%, 4/15/16 4/02 at 102 Aaa 1,196,188
1,000,000 Central Bucks School District, General Obligation,
5.400%, 5/15/14 5/04 at 100 Aaa 945,630
2,500,000 Delaware County General Obligation, 6.000%, 11/15/22 11/02 at 100 Aa 2,516,050
2,250,000 Delaware County Authority (Haverford College),
5.500%, 11/15/23 11/03 at 102 Aaa 2,106,045
Delaware County Authority (Crozer-Chester Medical
Center):
1,000,000 6.000%, 12/15/09 12/03 at 102 Baa1 960,780
2,100,000 5.300%, 12/15/11 12/03 at 102 Aaa 1,978,938
4,085,000 6.000%, 12/15/20 12/03 at 102 Baa1 3,615,674
1,500,000 5.300%, 12/15/20 12/03 at 102 Aaa 1,351,185
1,975,000 Delaware County Industrial Development Authority
(Philadelphia Suburban Water Company),
6.500%, 6/01/10 6/02 at 102 Aaa 2,085,561
2,000,000 Falls Township General Obligation, 5.200%, 12/15/11 12/01 at 100 Aaa 1,885,920
1,500,000 Fort LeBoeuf School District, General Obligation,
5.800%, 1/01/16 1/03 at 100 Aaa 1,473,540
2,000,000 Governor Mifflin School District, General Obligation,
5.400%, 9/15/12 9/03 at 100 Aaa 1,919,740
3,500,000 Hollidaysburg Sewer Authority, 6.100%, 1/01/23 1/03 at 100 Aaa 3,506,230
1,350,000 Lancaster Higher Education Authority (Franklin and
Marshall College), 5.700%, 4/15/13 4/03 at 100 Aaa 1,318,910
Lehigh County General Purpose Authority (St. Luke's
Hospital of Bethlehem):
1,335,000 5.300%, 11/15/05 No Opt. Call Aaa 1,342,316
500,000 5.300%, 11/15/06 No Opt. Call Aaa 498,275
500,000 5.300%, 11/15/07 No Opt. Call Aaa 492,835
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 Ligonier Valley School District, General Obligation,
6.000%, 3/01/23 3/04 at 100 Aaa $ 1,485,855
1,820,000 Luzerne County Housing Corporation, 6.125%, 7/15/23 7/03 at 100 Aaa 1,782,945
Luzerne County Industrial Development Authority
(Pennsylvania Gas and Water Company), Alternative
Minimum Tax:
7,350,000 7.200%, 10/01/17 10/02 at 102 Baa3 7,517,948
4,500,000 7.125%, 12/01/22 12/02 at 102 Baa3 4,576,680
2,500,000 Montgomery County Higher Educational and
Health Authority (Abington Memorial Hospital),
6.000%, 6/01/22 6/03 at 102 Aaa 2,473,500
2,165,000 Montgomery County Industrial Development
Authority (ECRI Project), 6.850%, 6/01/13 6/03 at 102 N/R 2,180,285
3,675,000 Montgomery County Industrial Development
Authority, Pollution Control (Philadelphia Electric
Company), 6.700%, 12/01/21 12/01 at 102 Aaa 3,930,486
1,000,000 Montoursville Area School District, General Obligation,
5.750%, 5/01/13 5/98 at 100 Aaa 982,410
1,250,000 Moon Township Municipal Authority, 5.650%, 12/01/09 6/03 at 100 Aaa 1,257,063
2,000,000 New Morgan Industrial Development Authority,
Solid Waste Disposal, Alternative Minimum Tax,
6.500%, 4/01/19 4/04 at 102 A2 2,013,560
5,500,000 Northumberland County Industrial Development
Authority (Roaring Creek Water Company),
Alternative Minimum Tax, 6.375%, 10/15/23 10/03 at 102 N/R 5,059,340
4,830,000 Philadelphia Authority for Industrial Development
(PGH Development Corporation), 5.250%, 7/01/17 7/03 at 102 AA 4,133,514
4,000,000 Philadelphia Hospital and Higher Educational
Facilities Authority (Philadelphia MR Project),
5.625%, 8/01/04 8/03 at 102 BBB+ 3,970,320
1,750,000 Philadelphia Hospital and Higher Educational Facilities
Authority (Graduate Health System), 6.250%, 7/01/13 7/03 at 102 Baa1 1,633,746
1,005,000 Philadelphia Hospital and Higher Educational Facilities
Authority (Community College of Philadelphia),
6.100%, 5/01/10 5/04 at 102 Aaa 1,022,839
Philadelphia Hospital and Higher Educational
Facilities Authority (Presbyterian Medical Center
of Philadelphia):
1,000,000 6.500%, 12/01/11 12/03 at 102 A- 1,004,430
3,690,000 6.650%, 12/01/19 12/03 at 102 A- 3,700,701
Philadelphia Hospitals and Higher Educational
Facilities Authority (Children's Hospital of
Philadelphia):
7,250,000 5.375%, 2/15/14 2/03 at 102 Aa 6,730,030
1,750,000 6.500%, 2/15/21 (Pre-refunded to 2/15/02) 2/02 at 102 Aaa 1,949,955
10,400,000 Philadelphia Hospital and Higher Education Facilities
Authority (Temple University Hospital),
6.625%, 11/15/23 11/03 at 102 A- 10,456,992
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Philadelphia Municipal Authority:
$ 2,125,000 5.250%, 4/01/18 4/03 at 102 Aaa $ 1,916,198
2,940,000 5.625%, 11/15/18 11/03 at 102 Aaa 2,791,530
5,500,000 Philadelphia School District, General Obligation,
5.200%, 7/01/03 No Opt. Call Aaa 5,560,940
1,000,000 Philadelphia Water and Sewer, 7.500%, 8/01/10
(Pre-refunded to 8/01/01) 8/01 at 102 Baa 1,158,390
Philadelphia Water and Wastewater System:
3,000,000 6.750%, 8/01/05 No Opt. Call Aaa 3,328,860
2,335,000 5.750%, 6/15/13 6/03 at 102 Aaa 2,268,779
2,300,000 5.500%, 6/15/14 6/03 at 102 Aaa 2,153,444
5,000,000 5.000%, 6/15/16 6/03 at 100 Aaa 4,424,200
1,500,000 5.000%, 6/15/19 6/03 at 100 Aaa 1,307,175
1,750,000 Pine-Richland School District, General Obligation,
6.100%, 9/01/18 9/03 at 100 Aaa 1,765,488
1,500,000 Pittsburgh School District, General Obligation,
5.500%, 9/01/16 9/01 at 101 Aaa 1,436,595
Pittsburgh Urban Redevelopment Authority,
Alternative Minimum Tax:
750,000 6.950%, 10/01/10 4/04 at 102 A1 794,775
1,750,000 6.800%, 10/01/25 4/03 at 102 A1 1,787,240
Pittsburgh Urban Redevelopment Authority:
1,375,000 6.500%, 4/01/17 4/03 at 102 A1 1,392,641
2,410,000 5.650%, 10/01/24 10/03 at 102 A1 2,172,013
1,590,000 Pleasant Valley School District, General Obligation,
5.300%, 3/15/13 9/03 at 100 Aaa 1,500,896
3,660,000 Rose Tree Media School District, General Obligation,
6.700%, 3/15/12 (Pre-refunded to 9/15/01) 9/01 at 100 Aaa 4,060,258
2,500,000 Schuylkill Valley School District, General Obligation,
5.850%, 4/15/13 4/03 at 100 Aaa 2,483,350
South Fork Municipal Authority (Lee Hospital):
1,850,000 5.500%, 7/01/11 7/03 at 102 A 1,726,846
3,000,000 5.500%, 7/01/23 7/03 at 102 A 2,547,540
3,340,000 State Public School Building Authority (Northampton
County Area Community College), 5.850%, 3/15/15 3/03 at 100 Aaa 3,297,348
2,345,000 Swissvale Housing Development Corporation,
6.100%, 7/01/22 7/03 at 100 Aa 2,266,793
5,360,000 University of Pittsburgh, 6.125%, 6/01/21 6/02 at 102 Aaa 5,398,055
4,000,000 Wallenpaupack Area School District, General Obligation,
5.500%, 4/01/11 4/01 at 100 Aaa 3,900,920
1,150,000 Washington County Authority, 5.625%, 6/01/22 6/03 at 100 Aaa 1,079,585
3,000,000 Washington County Hospital Authority (The Washington
Hospital), 5.625%, 7/01/23 7/03 at 102 Aaa 2,813,610
1,650,000 West View Municipal Authority, 9.500%, 11/15/14 No Opt. Call Aaa 2,263,600
1,840,000 Wilkes-Barre General Municipal Authority (College
Misericordia), Alternative Minimum Tax,
7.750%, 12/01/12 12/02 at 102 N/R 1,993,033
$322,295,000 Total Investments - (cost $320,464,943) - 96.6% 315,694,305
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.1%
$ 1,000,000 Allegheny County Hospital Development Authority
(Presbyterian University Health System), Variable
Rate Demand Bonds, 4.100%, 3/01/20t VMIG-1 $ 1,000,000
1,000,000 Geisinger Authority (Montaur Co.), Variable Rate
Demand Bonds, 4.350%, 7/01/22t A-1+ 1,000,000
5,000,000 Schuylkill County Industrial Development Authority,
Resource Recovery (Northeastern Power Co. Project),
Variable Rate Demand Bonds, 4.200%, 12/01/11t A-1 5,000,000
$ 7,000,000 Total Temporary Investments - 2.1% 7,000,000
============
Other Assets Less Liabilities - 1.3% 4,076,489
Net Assets - 100% $326,770,794
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 70 $198,274,531 63%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 44,960,510 14
PORTFOLIO OF A+ A1 4 6,146,669 2
INVESTMENTS A, A- A, A2, A3 8 28,048,816 9
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 10 26,826,741 8
TEMPORARY Non-rated Non-rated 4 11,437,038 4
INVESTMENTS):
TOTAL 108 $315,694,305 100%
<FN>
* 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.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $405,805,862 $251,415,717 $345,325,952 $315,694,305
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 3,050,000 2,350,000 5,696,000 7,000,000
Cash 78,205 93,660 4,678 203,735
Receivables:
Interest 8,436,128 4,461,472 6,604,722 5,224,788
Investments sold 5,500,102 -- 2,687,700 50,000
Other assets 49,437 54,733 44,622 58,333
----------- ----------- ----------- ------------
Total assets 422,919,734 258,375,582 360,363,674 328,231,161
----------- ----------- ----------- ------------
LIABILITIES
Payable for investments purchased -- -- 2,779,601 --
Accrued expenses:
Management fees (note 6) 221,910 137,900 188,166 174,633
Other 146,092 169,678 181,413 170,277
Preferred share dividends payable 42,881 16,765 19,344 36,756
Common share dividends payable 1,565,285 800,449 1,364,156 1,078,701
----------- ----------- ----------- ------------
Total liabilities 1,976,168 1,124,792 4,532,680 1,460,367
----------- ----------- ----------- ------------
Net assets (note 7) $420,943,566 $257,250,790 $355,830,994 $326,770,794
============ ============ ============ ============
Preferred shares, at liquidation value $130,000,000 $ 91,600,000 $110,000,000 $118,100,000
============ ============ ============ ============
Preferred shares outstanding 5,200 3,664 4,400 4,724
============ ============ ============ ============
Common shares outstanding 19,324,502 11,858,497 15,501,774 15,747,465
============ ============ ============ ============
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by Common
shares outstanding) $ 15.06 $ 13.97 $ 15.86 $ 13.25
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended June 30, 1995
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $21,263,992 $10,143,282 $17,454,532 $12,867,601
Taxable market discount 5,506 45 1,765 --
----------- ----------- ----------- -----------
Total income 21,269,498 10,143,327 17,456,297 12,867,601
----------- ----------- ----------- -----------
Expenses:
Management fees (note 6) 2,119,897 1,088,164 1,702,633 1,351,597
Preferred shares--auction fees 258,561 150,894 208,903 194,740
Preferred shares--dividend disbursing agent fees 22,027 26,836 22,068 26,753
Shareholders' servicing agent fees and expenses 68,876 25,276 68,066 26,318
Custodian's fees and expenses 50,464 52,058 52,556 57,907
Directors'/Trustees' fees and expenses (note 6) 5,827 1,871 5,347 3,667
Professional fees 59,200 58,829 59,509 53,687
Shareholders' reports--printing and mailing expenses 157,795 117,691 149,782 146,779
Stock exchange listing fees 25,469 20,010 15,231 13,210
Investor relations expense 14,188 10,457 17,047 7,427
Other expenses 23,665 27,640 14,804 57,653
----------- ----------- ----------- -----------
Total expenses 2,805,969 1,579,726 2,315,946 1,939,738
----------- ----------- ----------- -----------
Net investment income 18,463,529 8,563,601 15,140,351 10,927,863
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions, net of
taxes, if applicable (notes 1 and 3) 10,875 (1,062,514) 337,814 (437,728)
Net change in unrealized appreciation or depreciation
of investments 11,002,142 7,717,615 10,175,559 11,453,910
----------- ----------- ----------- -----------
Net gain from investments 11,013,017 6,655,101 10,513,373 11,016,182
----------- ----------- ----------- -----------
Net increase in net assets from operations $29,476,546 $15,218,702 $25,653,724 $21,944,045
============ ============ ============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NQJ NNJ
Year ended Year ended Year ended 11 months ended
6/30/95 6/30/94 6/30/95 6/30/94
<S> <C> <C> <C> <C>
Operations
Net investment income $ 18,463,529 $ 14,535,113 $ 8,563,601 $ 5,132,596
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 10,875 338,311 (1,062,514) 86,388
Net change in unrealized appreciation or depreciation
of investments 11,002,142 (13,317,707) 7,717,615 (6,218,838)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations 29,476,546 1,555,717 15,218,702 (999,854)
------------ ------------ ------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (15,185,945) (13,013,662) (6,272,466) (3,888,804)
Preferred shareholders (3,677,673) (1,716,020) (2,235,019) (919,450)
From accumulated net realized gains from investment transactions:
Common shareholders (245,839) (748,468) (71,491) --
Preferred shareholders (31,040) (120,064) (16,688) --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (19,140,497) (15,598,214) (8,595,664) (4,808,254)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from sale of Common shares issued in
acquisition of NUJ, and NJP and NJU, respectively (note 1) 150,384,883 -- 137,170,244 --
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions from net investment income
and from net realized gains from investment transactions 504,967 2,882,625 -- 380,535
Preferred shares--net proceeds from sale of shares -- -- -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from capital share transactions 150,889,850 2,882,625 137,170,244 380,535
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 161,225,899 (11,159,872) 143,793,282 (5,427,573)
Net assets at beginning of period 259,717,667 270,877,539 113,457,508 118,885,081
------------ ------------ ------------ ------------
Net assets at end of period $420,943,566 $259,717,667 $257,250,790 $113,457,508
============ ============ ============ ============
Balance of undistributed net investment income at end of period $ 760,953 $ 1,023,553 $ 510,564 $ 366,612
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NQP NPY
Year ended Year ended Year ended Year ended
6/30/95 6/30/94 6/30/95 6/30/94
<S> <C> <C> <C> <C>
Operations
Net investment income $ 15,140,351 $ 10,982,602 $ 10,927,863 $ 6,905,880
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 337,814 (95,453) (437,728) (581,956)
Net change in unrealized appreciation or depreciation
of investments 10,175,559 (7,307,262) 11,453,910 (11,315,458)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations 25,653,724 3,579,887 21,944,045 (4,991,534)
------------ ------------ ------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (12,146,828) (9,780,088) (8,077,846) (5,485,252)
Preferred shareholders (3,068,414) (1,369,672) (2,951,304) (1,240,297)
From accumulated net realized gains from investment transactions:
Common shareholders -- (341,075) -- --
Preferred shareholders -- (50,664) -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (15,215,242) (11,541,499) (11,029,150) (6,725,549)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from sale of Common shares issued in
acquisition of NUP, and NPA and NAP, respectively (note 1) 152,750,727 -- 176,762,321 --
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions from net investment income
and from net realized gains from investment transactions 923,694 1,759,538 40,956 166,329
Preferred shares--net proceeds from sale of shares -- -- -- 51,042,325
------------ ------------ ------------ ------------
Net increase in net assets derived from capital share transactions 153,674,421 1,759,538 176,803,277 51,208,654
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 164,112,903 (6,202,074) 187,718,172 39,491,571
Net assets at beginning of period 191,718,091 197,920,165 139,052,622 99,561,051
------------ ------------ ------------ ------------
Net assets at end of period $355,830,994 $191,718,091 $326,770,794 $139,052,622
============ ============ ============ ============
Balance of undistributed net investment income at end of period $ 832,187 $ 786,795 $ 497,032 $ 500,701
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At June 30, 1995, the state Funds (the "Funds") covered in this report and
their corresponding New York Stock Exchange symbols are Nuveen New Jersey
Investment Quality Municipal Fund, Inc. (NQJ), Nuveen New Jersey Premium
Income Municipal Fund, Inc. (NNJ), Nuveen Pennsylvania Investment Quality
Municipal Fund (NQP) and Nuveen Pennsylvania Premium Income Municipal Fund 2
(NPY).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
Effective June 30, 1994, NNJ changed its fiscal year end for financial
reporting purposes to June 30 from July 31.
On January 10, 1995, NQJ acquired all of the net assets of NUJ pursuant to a
plan of reorganization approved by the shareholders of both Funds on December
22, 1994. The acquisition was accomplished by a tax-free exchange of 7,093,734
shares of NQJ for the 7,251,162 share of NUJ outstanding on January 10, 1995.
NUJ's net assets at that date of $150,384,883 included $214,743 of unrealized
depreciation and $50,000,000 of preferred shares at liquidation value which
was combined with that of NQJ. The combined net assets of NQJ immediately
after the acquisition were $403,464,971.
On February 6, 1995, NNJ acquired all of the net assets of NJP and NJU
pursuant to a plan of reorganization approved by the shareholders of each of
the respective Funds on January 13, 1995. The acquisition was accomplished by
a tax-free exchange of 6,401,176 shares of NNJ for the 4,857,358 shares of NJP
and the 2,084,643 shares of NJU outstanding on February 6, 1995. NJP's and
NJU's net assets at that date of $96,377,670 and $40,792,574, respectively,
included unrealized depreciation of $4,881,709 and $1,282,356, respectively,
as well as $36,000,000 and $15,000,000 of preferred shares at liquidation
value, respectively, which were combined with that of NNJ. The combined net
assets of NNJ immediately after the acquisition were $250,123,139.
On January 9, 1995, NQP acquired all of the net assets of NUP pursuant to a
plan of reorganization approved by the shareholders of both Funds on December
22, 1994. The acquisition was accomplished by a tax-free exchange of 6,940,191
shares of NQP for the 7,142,414 shares of NUP outstanding on January 9, 1995.
NUP's net assets at that date of $152,750,727 included $3,801,585 of
unrealized appreciation and $50,000,000 of preferred shares at liquidation
value which was combined with that of NQP. The combined net assets of NQP
immediately after the acquisition were $338,903,055.
<PAGE>
On February 7, 1995, NPY acquired all of the net assets of NPA and NAP
pursuant to a plan of reorganization approved by the shareholders of each of
the respective Funds on January 13, 1995. The acquisition was accomplished by
a tax-free exchange of 8,799,348 shares of NPY for the 5,803,736 shares of NPA
and the 2,820,654 shares of NAP outstanding on February 7, 1995. NPA's and
NAP's net assets at that date of $121,701,228 and $55,061,093, respectively,
included unrealized depreciation of $3,152,366 and $3,900,897, respectively,
as well as $45,000,000 and $21,100,000 of preferred shares at liquidation
value, respectively, which were combined with that of NPY. The combined net
assets of NPY immediately after the acquisition were $316,143,201.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors/Trustees. Temporary
investments in securities that have variable rate and demand features
qualifying them as short-term securities are traded and valued at amortized
cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At June 30, 1995, NQP had outstanding purchase commitments of
$2,779,601. There were no such purchase commitments in any of the other Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretions of discounts on long-term debt
securities when required for federal income tax purposes.
<PAGE>
Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each New Jersey Fund intends to satisfy conditions which will
enable interest from municipal securities, which is exempt from regular
federal and New Jersey state income taxes, to retain such tax exempt status
when distributed to the shareholders of the New Jersey Funds. Each
Pennsylvania Fund intends to satisfy conditions which will enable interest
from municipal securities, which is exempt from regular federal, Pennsylvania
Personal Income, and Philadelphia School District Investment Income Taxes to
retain such tax exempt status when distributed to shareholders of the
Pennsylvania Funds. All income dividends paid during the fiscal year ended
June 30, 1995, have been designated Exempt Interest Dividends. Capital gain
distributions are subject to federal taxation. However, capital gain
distributions are exempt from Pennsylvania Personal Income and Philadelphia
School District Investment Income Taxes.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of accumulated net realized
capital gains, if applicable.
<PAGE>
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in more than one Series. The
dividend rate on each Series may change every seven days, as set by the
Auction Agent. The number of shares outstanding by Series and in total, at
June 30, 1995, for each Fund is as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Number of shares:
Series M 3,200 -- -- 844
Series T -- 624 -- --
Series W -- 1,440 2,400 --
Series Th 2,000 1,600 2,000 2,080
Series F -- -- -- 1,800
----- ----- ----- -----
Total 5,200 3,664 4,400 4,724
===== ===== ===== =====
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments which
prescribes disclosure requirements for transactions in certain derivative
financial instruments including 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 June 30, 1995, other than occasional purchases of high quality synthetic
money market securities which were held temporarily pending the re-investment
in long-term portfolio securities.
</TABLE>
<PAGE>
<TABLE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<CAPTION>
NQJ NNJ
Year ended Year ended Year ended 11 months ended
6/30/95 6/30/94 6/30/95 6/30/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NUJ, and NJP and NJU,
respectively (note 1) 7,093,734 -- 6,401,176 --
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions 33,541 174,739 -- 25,426
--------- ------- --------- ------
Net increase 7,127,275 174,739 6,401,176 25,426
========= ======= ========= ======
Preferred shares acquired from NUJ, and NJP and NJU,
respectively (note 1) 2,000 -- 2,064 --
========= ======= ========= ======
<CAPTION>
NQP NPY
Year ended Year ended Year ended Year ended
6/30/95 6/30/94 6/30/95 6/30/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NUP, and NPA and NAP,
respectively (note 1) 6,940,191 -- 8,799,348 --
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions 58,618 103,077 3,244 7,755
--------- ------- --------- -----
Net increase 6,998,809 103,077 8,802,592 7,755
========= ======= ========= =====
Preferred shares sold -- -- -- 2,080
========= ======= ========= =====
Preferred shares acquired from NUP, and NPA and NAP,
respectively (note 1) 2,000 -- 2,644 --
========= ======= ========= =====
</TABLE>
<PAGE>
<TABLE>
3. Securities Transactions
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the fiscal year ended
June 30, 1995, were as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $ 42,663,558 $ 25,076,543 $ 23,141,094 $ 9,561,276
Investments in municipal securities in acquisition of NUJ,
NJP and NJU, NUP, and NPA and NAP, respectively (note 1) 148,689,400 140,262,615 146,872,349 177,073,099
Temporary municipal investments 27,350,000 20,250,000 31,365,000 25,074,000
Temporary municipal investments in acquisition of NUJ, NJP
and NJU, and NPA and NAP, respectively (note 1) 100,000 400,000 -- 4,100,000
SALES AND MATURITIES
Investments in municipal securities 53,623,557 25,964,699 24,173,925 11,750,979
Temporary municipal investments 27,400,000 18,300,000 28,969,000 22,174,000
============ ============ ============ ============
At June 30, 1995, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for
each Fund.
At June 30, 1995, the following Funds had unused capital loss carryovers
available for federal income tax purposes to be applied against future
security gains, if any. If not applied, the carryovers will expire as
follows:
<CAPTION>
NQJ NNJ NPY
<S> <C> <C> <C>
Expiration year:
2002 $75,437* $4,077,935** $1,490,997t
2003 -- 129,409 669,800
======= ========== ==========
Total $75,437 $4,207,344 $2,160,797
======= ========== ==========
* Due to the acquisition of NUJ by NQJ (note 1), NUJ had net realized losses
from investment transactions of $75,437 which were carried forward by NQJ, as
permitted under applicable tax regulations.
** Due to the acquisition of NJP and NJU by NNJ (note 1), NJP and NJU had net
realized losses from investment transactions of $1,927,140 and $2,150,795,
respectively, which were carried forward by NNJ as permitted under applicable
tax regulations.
t Due to the acquisition of NPA and NAP by NPY (note 1), NPA and NAP had net
realized losses from investment transactions of $475,357 and $996,407,
respectively, which were carried forward by NPY, as permitted under applicable
tax regulations.
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On July 3, 1995, the Funds declared Common share dividend distributions from
their ordinary income which were paid August 1, 1995, to shareholders of
record on July 15, 1995, as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Dividend per share $.0810 $.0675 $.0880 $.0685
====== ====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 1995, were as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $19,640,986 $ 4,013,159 $26,711,846 $ 2,836,690
Depreciation (640,408) (5,058,472) (45,582) (7,607,328)
------------ ----------- ----------- -----------
Net unrealized appreciation (depreciation) $19,000,578 $(1,045,313) $26,666,264 $(4,770,638)
=========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
("the Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors / 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.
7. COMPOSITION OF NET ASSETS
At June 30, 1995, net assets consisted of:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $130,000,000 $ 91,600,000 $110,000,000 $118,100,000
Common shares, $.01 par value per share 193,245 118,585 155,018 157,475
Paid-in surplus 271,053,353 171,207,403 218,066,658 215,278,373
Balance of undistributed net investment income 760,953 510,564 832,187 497,032
Accumulated net realized gain (loss) from investment transactions (64,563) (5,140,449) 110,867 (2,491,448)
Net unrealized appreciation or depreciation of investments 19,000,578 (1,045,313) 26,666,264 (4,770,638)
----------- ----------- ----------- -----------
Net assets $420,943,566 $257,250,790 $355,830,994 $326,770,794
============ ============ ============ ============
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
8. Investment Composition
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At June 30, 1995, the revenue sources by municipal
purpose for these investments, expressed as a percent of total investments,
were as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Revenue Bonds:
Educational Facilities 3% 7% 12% 19%
Health Care Facilities 11 8 12 17
Housing Facilities 16 14 10 14
Pollution Control Facilities 14 11 9 11
Transportation 8 9 6 4
Water / Sewer Facilities 5 7 2 7
Lease Rental Facilities 6 5 -- 6
Electric Utilities 1 3 -- --
Other 6 12 4 2
General Obligation Bonds 17 16 5 13
Escrowed Bonds 13 8 40 7
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (43% for NQJ, 43% for NNJ, 67% for NQP, and
58% for NPY). Such insurance or escrow, however, does not guarantee the
market value of the municipal securities or the value of any of the Funds'
shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investmentst shareholders shareholderstt
NQJ
<S> <C> <C> <C> <C> <C>
Year ended 6/30,
1995 $14.730 $1.200 $ .396 $(1.007) $(.237)
1994 15.880 1.198 (1.061) (1.074) (.141)
1993 14.820 1.209 1.045 (.997) (.169)
8 mos. ended
6/30/92 14.320 .824 .451 (.620) (.155)
2/21/91 to
10/31/91 14.050 .614 .447 (.490) (.116)
<CAPTION>
NNJ
<S> <C> <C> <C> <C> <C>
Year ended
6/30/95 13.460 1.063 .549 (.805) (.282)
11 mos. ended
6/30/94 14.520 .941 (1.120) (.713) (.168)
12/17/92 to
7/31/93 14.050 .397 .674 (.335) (.055)
<PAGE>
<CAPTION>
Distributions from capital gains
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholderstt discounts of period of period
NQJ
<S> <C> <C> <C> <C> <C>
Year ended 6/30,
1995 $(.020) $(.002) $ -- $15.060 $14.625
1994 (.062) (.010) -- 14.730 15.250
1993 (.023) (.005) -- 15.880 17.125
8 mos. ended
6/30/92 -- -- -- 14.820 15.375
2/21/91 to
10/31/91 -- -- (.185) 14.320 15.500
<CAPTION>
NNJ
<S> <C> <C> <C> <C> <C>
Year ended
6/30/95 (.013) (.002) -- 13.970 13.250
11 mos. ended
6/30/94 -- -- -- 13.460 12.375
12/17/92 to
7/31/93 -- -- (.211) 14.520 15.000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
value** value** (in thousands) assetsttt net assetsttt rate
NQJ
<S> <C> <C> <C> <C> <C> <C>
Year ended 6/30,
1995 3.03% 9.71% $420,944 .85% 5.57% 13%
1994 (4.63) (.27) 259,718 .82 5.39 5
1993 18.71 14.57 270,878 .83 5.53 12
8 mos. ended
6/30/92 3.29 8.03 255,602 .76* 5.84* 6
2/21/91 to
10/31/91 6.61 5.52 248,154 .76* 5.06* 1
<CAPTION>
NNJ
<S> <C> <C> <C> <C> <C> <C>
Year ended
6/30/95 14.60 10.39 257,251 .94 5.08 15
11 mos. ended
6/30/94 (13.16) (2.61) 113,458 .92* 4.75* 12
12/17/92 to
7/31/93 2.27 5.78 118,885 .97* 3.75* 5
See notes on page 50.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investmentst shareholders shareholderstt
NQP
<S> <C> <C> <C> <C> <C>
Year ended 6/30,
1995 $15.490 $1.289 $ .409 $(1.066) $(.262)
1994 16.420 1.298 (.863) (1.157) (.162)
1993 15.140 1.309 1.276 (1.124) (.181)
8 mos. ended
6/30/92 14.600 .882 .492 (.664) (.170)
2/21/91 to
10/31/91 14.050 .682 .706 (.498) (.123)
<CAPTION>
NPY
<S> <C> <C> <C> <C> <C>
Year ended 6/30,
1995 12.530 1.053 .761 (.808) (.286)
1994 14.350 .995 (1.708) (.790) (.179)
3/18/93 to
6/30/93 14.050 .111 .308 (.065) --
<PAGE>
<CAPTION>
Distributions from capital gains
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholderstt discounts of period of period
NQP
<S> <C> <C> <C> <C> <C>
Year ended 6/30,
1995 $ -- $ -- $ -- $15.860 $15.500
1994 (.040) (.006) -- 15.490 16.250
1993 -- -- -- 16.420 17.500
8 mos. ended
6/30/92 -- -- -- 15.140 15.750
2/21/91 to
10/31/91 -- -- (.217) 14.600 15.500
<CAPTION>
NPY
<S> <C> <C> <C> <C> <C>
Year ended 6/30,
1995 -- -- -- 13.250 12.875
1994 -- -- (.138) 12.530 12.375
3/18/93 to
6/30/93 -- -- (.054) 14.350 14.625
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
value** value** (in thousands) assetsttt net assetsttt rate
NQP
<S> <C> <C> <C> <C> <C> <C>
Year ended 6/30,
1995 2.32% 9.77% $355,831 .87% 5.70% 9%
1994 (.39) 1.23 191,718 .84 5.54 3
1993 18.83 16.50 197,920 .86 5.73 2
8 mos. ended
6/30/92 5.97 8.48 185,576 .78* 6.04* --
2/21/91 to
10/31/91 6.71 7.61 180,203 .81* 5.50* --
<CAPTION>
NPY
<S> <C> <C> <C> <C> <C> <C>
Year ended 6/30,
1995 11.50 12.87 326,771 .92 5.20 5
1994 (10.29) (7.60) 139,053 .90 4.70 11
3/18/93 to
6/30/93 (2.08) 2.60 99,561 .92* 2.99* --
<FN>
* Annualized.
** 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.
t Net of taxes, if applicable (see note 1).
tt The amounts shown are based on Common share equivalents.
ttt Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Boards of Directors, Trustees and Shareholders
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
Nuveen New Jersey Premium Income Municipal Fund, Inc.
Nuveen Pennsylvania Investment Quality Municipal Fund
Nuveen Pennsylvania Premium Income Municipal Fund 2
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen New Jersey Investment Quality Municipal
Fund, Inc., Nuveen New Jersey Premium Income Municipal Fund, Inc., Nuveen
Pennsylvania Investment Quality Municipal Fund and Nuveen Pennsylvania Premium
Income Municipal Fund 2 as of June 30, 1995, 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 generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of June 30, 1995, 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 New Jersey Investment Quality Municipal Fund, Inc., Nuveen New Jersey
Premium Income Municipal Fund, Inc., Nuveen Pennsylvania Investment Quality
Municipal Fund and Nuveen Pennsylvania Premium Income Municipal Fund 2 at June
30, 1995, and the results of their operations, changes in their net assets and
financial highlights for the periods then ended in conformity with generally
accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
August 11, 1995
<PAGE>
Build your wealth automatically
Photographic image of Customer Service Rep at Nuveen.
Managing your portfolio takes skill, experience, and informed judgment, but
our efforts to help you build your wealth don't stop there. At Nuveen, we
offer a number of convenient ways to build your tax-free portfolio and earn
the tax-free income you need to achieve your financial goals.
Nuveen Exchange-Traded Funds Dividend Reinvestment Plan
Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check, or can
be deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Income or capital gains taxes may be payable on dividends or
distributions that are reinvested. You'll also benefit from dollar-cost
averaging, a technique of investing at regular intervals, which allows you to
build a high-quality, tax-free portfolio conveniently and cost effectively
over time. All reinvestments are invested in full and fractional shares and
are kept in non-certificated form by the Plan Agent, Chase Manhattan Bank.
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number
of shares you own.
The shares you acquire by reinvesting will either be purchased on the open
market or be newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation, the Fund will issue new shares at
the then-current market price. If the shares are trading at less than net
asset value, shares for your account will be purchased on the open market.
Dividends and distributions received to purchase shares in the open market
will be invested within 30 days of the dividend payment date; no interest will
be paid on dividends and distributions awaiting reinvestment. Because the
market price of shares may increase before purchases are completed, the
average purchase price per share may exceed the market price at the time of
valuation resulting in the acquisition of fewer shares than if the dividend or
distribution had been paid in shares issued by the Fund. A pro rata portion of
any applicable brokerage commissions on open market purchases will be paid by
Plan participants. These commissions usually will be lower than those charged
on individual transactions.
<PAGE>
You may, of course, change your distribution option or withdraw from the
Plan at any time, should your needs or situation change. Should you withdraw,
you can receive a certificate for all whole shares credited to your
reinvestment account and cash payment for fractional shares, or cash payment
for all reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You also can reinvest if your shares are registered in the name of a
brokerage firm, bank, or other nominee. Just ask your investment adviser if
the firm will participate on your behalf. If not, it's easy to have the shares
registered in your name and to apply for a reinvestment account directly.
Participants whose shares are registered in the name of one firm may not be
able to transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although, the Fund reserves the right to amend the Plan to include a service
charge payable by the participants, there is no direct service charge to
participants in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll
in or withdraw from the Plan, speak with your investment adviser or call us at
toll-free at 1.800.257.8787.
Photographic image of Customer Service Rep at Nuveen.
"When it comes to financial planning, your investment adviser knows your
situation best. And when we can give you the account information you need, our
motto is simple: We're here to help."
Photographic image of Customer Service Rep at Nuveen.
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set up
your reinvestment account."
<PAGE>
Useful Information
Photographic image of Customer Service Rep at Nuveen.
"When questions come up about your investment, we're happy to provide the
up-to-date information you and your adviser need."
Useful information
Nuveen Shareholder Services:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST for information on your
Nuveen Fund's current account balance, yield, dividend, net asset value,
closing price, and general information.
Dividend Reinvestment:
1.800.257.8787
Monday through Friday, 9 a.m. to 6 p.m., EST
Taking Stock Newsletter:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST if you're not currently
getting our quarterly shareholder newsletter and would like to do so. We will
be happy to add your name to our mailing list.
Photographic image of woman seated and man standing behind her representing
Nuveen investors.
Many conservative investors are comfortable with Nuveen's emphasis on long
term value. That's why they depend on Nuveen for the tax-free income they need
to reach their goals.
<PAGE>
Your investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF2-JUN 95
