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 QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND 2
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND 3
SEMIANNUAL REPORT/DECEMBER 31, 1994
Photo of man reading statement on porch.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
12 Getting to know your fund
14 Portfolio of investments
31 Statement of net assets
33 Statement of operations
35 Statement of changes in net assets
39 Notes to financial statements
52 Financial highlights
<PAGE>
Dear shareholder
"Providing secure income remains our top priority"
Photo of Richard J. Franke, Chairman of the Board
1994 was one of the most difficult periods the bond markets have experienced
in decades. As the Federal Reserve Board pushed interest rates steadily higher
to fend off future inflation, the prices of all bonds and bond funds declined.
The unusually high volatility of the past 12 months has caused uncertainty
and has brought home the basic fact of fixed-income securities: Interest rates
are subject to change, and sometimes the changes can have marked effects on
net asset values.
At Nuveen, we believe that the best approach to tax-free investing in such
tumultuous markets is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives relatively well,
providing an attractive level of tax-free income while holding portfolio
values in line with or better than the market as a whole.
Looking first at income, current yields on share prices for the New Jersey
funds covered in this report ranged from 6.99% to 7.48%. To equal these
yields, investors in the combined 40.5% federal and state income tax bracket
would need to earn at least 11.75% on taxable alternatives. This taxable yield
is difficult to achieve on investments of comparable quality.
The fact that your Fund is leveraged means that it will be more sensitive to
interest rate changes, both upward and downward, than unleveraged funds.
Nonetheless, for the one-year period ended December 31, our three most
seasoned New Jersey funds--Investment Quality Municipal Fund Inc., Quality
Income Municipal Fund, Inc. and Premium Income Municipal Fund, Inc.--ranked
number one, number two, and number four, respectively, among 11 closed-end New
Jersey municipal funds ranked by Lipper Analytical Services on total return.
The newer New Jersey funds, holding bonds issued when interest rates were
moving lower and bond prices were correspondingly higher, were more affected
by changing interest rates and could be expected to rebound more quickly if
interest rates decline.
When we take a long-range view of the municipal market, we believe the
outlook for your Fund is positively supported by several considerations.
As we have noted in past reports, the municipal market's supply and demand
fundamentals continue to be sound. To put these trends in perspective, in
1994, the supply of new municipal bonds declined by approximately 40% from
1993, a trend expected to continue in 1995. At the same time, demand for
tax-free bonds, which has been subdued over the past 12 months due to the
market's extraordinary volatility, is likely to resume its long-term upward
trend as investors recognize the exceptional yields tax-free bonds offer at
current price levels.
This combination of lower supply--which may be reduced further by the high
volume of bond calls expected in 1995--and the likelihood of rising demand
should help support municipal bond prices in the long term.
At Nuveen we are taking steps to increase the value our funds provide to
shareholders--steps reflected in the merger of Nuveen New Jersey Quality
Income Municipal Fund, Inc. (NUJ) into Nuveen New Jersey Investment Quality
Municipal Fund, Inc. (NQJ) and of Nuveen New Jersey Premium Income Municipal
Funds 2 and 3 (NJP and NJU) into Nuveen New Jersey Premium Income Municipal
Fund, Inc. (NNJ). Through the merger of these funds, we will achieve
management efficiencies and improve liquidity for our shareholders.
All of us at Nuveen appreciate your confidence in our family of municipal
bond funds, and we look forward to helping you reach your tax-free investment
objectives in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
February 15, 1995
<PAGE>
Answering your questions
In February, we spoke with Tom Spalding, head of Nuveen's portfolio management
team, and asked him about recent developments in the municipal market and the
outlook for Nuveen funds.
Why did my Fund's net asset value decline over the past year?
These have been difficult times for all fixed-income investors. The Bond Buyer
40 index--a measure of municipal market performance--declined by 18% in 1994.
Even 30-year Treasury bonds declined by 17.5% during the year.
Viewed in that context, the Nuveen New Jersey funds held their value
relatively well for the year ended December 31, 1994. Still, a few of the
funds were more affected by changing interest rates, for two reasons.
First, some of our New Jersey funds are relatively new, and their portfolios
hold bonds issued when interest rates were lower than they are today. As a
result, their net asset values were more sensitive to rising interest rates.
The fact that these funds are leveraged also increases the impact of
interest rate changes on the funds' net asset values per common share. Keep in
mind that leverage has enabled these funds to generate a higher level of
tax-free income than unleveraged funds.
Since my Fund is leveraged, will rising short-term interest rates affect my
dividends?
With long-term municipal bonds in these funds yielding around 7% and the
current average 7-day rate on short-term preferred shares under 3.8%, leverage
has provided an important income benefit to our shareholders over the past
year.
Although the funds' core dividends are set to provide relatively stable
income, steady increases in short-term interest rates will affect these
dividends over time.
In general, leveraged funds' dividends continue to be attractive compared
with both unleveraged and taxable alternatives. All things considered, prudent
leverage can provide highly attractive returns in a variety of market
conditions to investors who understand its uses, benefits, and
characteristics, and are willing to accept somewhat higher short-term NAV
fluctuations in anticipation of greater long-range returns.
Will bond calls affect my income or the stability of the net asset value of my
shares?
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher need to be replaced with today's lower-yielding bonds. The effect of
bond calls, however, depends to some extent on the age of a Fund and the
characteristics of the bonds in its portfolio.
For example, some of the New Jersey funds are relatively new, and primarily
hold bonds that can't be called for several years. As a result, calls
shouldn't significantly affect their income in the near future.
Older funds hold bonds which may be subject to calls, but these bonds often
are priced at premiums to their par values. This premium is a "cushion" that
can soften the effect of rising interest rates. Yet, as these bonds approach
their call dates the premiums gradually approach the bonds' par values,
reducing net asset values. Newer funds, on the other hand, primarily hold
bonds priced at discounts to their par values. As a result, these funds are
more sensitive to interest rate changes, both up and down, but they are
unaffected by the declining premium values related to called bonds.
Of course, we're continuing to manage all of our portfolios with calls in
mind. As part of our basic management process, we continually evaluate
opportunities to sell bonds approaching their call dates and to reinvest the
proceeds in bonds we think have high potential to provide above-market
returns.
What's the outlook for New Jersey tax-free bonds?
Our outlook is optimistic for reasons related both to municipal markets in
general and to the New Jersey economy specifically.
Looking first at the municipal market overall, inflation remains under
control, the financial condition of issuers across the country is generally
strengthening, and the market's supply and demand characteristics are
positive. That is all good news for tax-free investors.
As for New Jersey itself, the outlook is, if anything, even more positive.
The state's economy recovered reasonably well from the recession; its finances
and its budget are in relatively good shape overall. The state still needs to
address some significant fiscal challenges in education and other areas, but
the supply of state paper is limited, while demand for its securities is
rising. This combination of factors should help support New Jersey municipal
bond prices over time.
<PAGE>
<TABLE>
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQJ
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends, as well as
supplemental dividends totaling 8.5 cents per common share.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/94 $0.0810
2/94 $0.0810 $0.0300
3/94 $0.0810
4/94 $0.0810
5/94 $0.0810 $0.0200
6/94 $0.0810
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
<CAPTION>
FUND HIGHLIGHTS 12/31/94
<S> <C>
Yield 7.48%
Taxable-equivalent yield 12.57%
Annual total return on NAV -5.43%
Taxable-equivalent total return -0.81%
Share price $13.00
NAV $14.14
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN NEW JERSEY QUALITY INCOME MUNICIPAL FUND, INC.
NUJ
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends, as well as
supplemental dividends totaling 6.2 cents per common share.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/94 $0.0785
2/94 $0.0785 $0.0220
3/94 $0.0785
4/94 $0.0785
5/94 $0.0785 $0.0200
6/94 $0.0785
7/94 $0.0785
8/94 $0.0785 $0.0200
9/94 $0.0785
10/94 $0.0785
11/94 $0.0785
12/94 $0.0785
<CAPTION>
FUND HIGHLIGHTS 12/31/94
<S> <C>
Yield 7.46%
Taxable-equivalent yield 12.54%
Annual total return on NAV -5.83%
Taxable-equivalent total return -1.36%
Share price $12.625
NAV $13.86
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NNJ
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed a dividend increase in November to 6.6 cents per
common share, along with a supplemental dividend of 1.5 cents per common
share.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/94 $0.0640
2/94 $0.0640
3/94 $0.0640
4/94 $0.0640
5/94 $0.0640
6/94 $0.0640
7/94 $0.0640
8/94 $0.0640
9/94 $0.0640
10/94 $0.0640
11/94 $0.0660 .0150
12/94 $0.0660 .0131
<CAPTION>
FUND HIGHLIGHTS 12/31/94
<S> <C>
Yield 7.12%
Taxable-equivalent yield 11.97%
Annual total return on NAV -10.16%
Taxable-equivalent total return -6.49%
Share price $11.125
NAV $12.69
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND 2
NJP
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/94 $0.0625
2/94 $0.0625
3/94 $0.0625
4/94 $0.0625
5/94 $0.0625
6/94 $0.0625
7/94 $0.0625
8/94 $0.0625
9/94 $0.0625
10/94 $0.0625
11/94 $0.0625
12/94 $0.0625
<CAPTION>
FUND HIGHLIGHTS 12/31/94
<S> <C>
Yield 7.41%
Taxable-equivalent yield 12.45%
Annual total return on NAV -12.55%
Taxable-equivalent total return -8.89%
Share price $10.125
NAV $11.81
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND 3
NJU
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 8 months of steady dividends, following
a modest reduction in May.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/94 $0.0605
2/94 $0.0605
3/94 $0.0605
4/94 $0.0605
5/94 $0.0590
6/94 $0.0590
7/94 $0.0590
8/94 $0.0590
9/94 $0.0590
10/94 $0.0590
11/94 $0.0590
12/94 $0.0590
<CAPTION>
FUND HIGHLIGHTS 12/31/94
<S> <C>
Yield 6.99%
Taxable-equivalent yield 11.75%
Annual total return on NAV -14.71%
Taxable-equivalent total return -11.16%
Share price $10.125
NAV $11.31
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
Amendment to Dividend Reinvestment Plan
Effective June 1, 1995, your Fund's Dividend Reinvestment Plan will be amended
in order to enhance the ability of the Plan Agent to obtain the best execution
when making open-market purchases of Fund shares in connection with the Plan.
As of the effective date, the Plan Agent, United States Trust Company of New
York, may make Plan purchases in advance of the payment date of the applicable
Fund distribution, provided that settlement for such purchases shall occur no
earlier than the payment date for such distribution.
<PAGE>
Getting to know your fund
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, December 31, 1994) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor who is subject to a given income tax rate would need to
obtain from a fully taxable investment to equal the fund's stated annualized
yield on share price. For shareholders in this report, the combined state and
federal rate is assumed to be 40.5%, based on incomes of $115,000-$250,000 for
investors filing singly, $140,000-$250,000 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 its total number of common
shares outstanding.
Annual total return on NAV
The percentage change in a fund's NAV per share over the previous 12 months,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor, who is subject to a given income tax rate would
need to obtain from a fully taxable investment to equal the Fund's stated
total return on NAV.
Leverage
A fund structure that enhances the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. Preferred shareholders receive short-term tax-free income, while the
proceeds can be used to purchase additional long-term bonds, thus increasing
the portfolio's income for common shareholders. Changes in net asset value per
common share, both up and down, are also magnified.
Each fund intends to repurchase shares of its common or preferred stock in the
future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 6-month period ended December 31, 1994. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
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 (Jersey Central Power and Light
Company), 7.100%, 7/01/15 7/01 at 103 A3 $ 388,464
3,260,000 New Jersey Economic Development Authority (New
Jersey Natural Gas Company), 7.050%, 3/01/16 3/98 at 102 A2 3,279,104
New Jersey Economic Development Authority (New
Jersey Natural Gas Company), Alternative
Minimum Tax:
5,000,000 8.500%, 6/01/18 6/95 at 102 A2 5,181,950
1,500,000 7.250%, 3/01/21 3/98 at 102 A2 1,519,050
5,000,000 New Jersey Economic Development Authority
(Elizabethtown Gas Company), Alternative
Minimum Tax, 6.625%, 10/01/21 10/96 at 102 A3 4,727,900
1,900,000 New Jersey Economic Development Authority
(Bridgewater Resources, Inc.), 9.500%, 2/01/01 No Opt. Call N/R 1,902,299
New Jersey Economic Development Authority (New
Jersey-American Water Company), Alternative
Minimum Tax:
5,000,000 7.400%, 11/01/01 No Opt. Call N/R 4,856,300
2,900,000 5.500%, 6/01/23 (DD) 6/03 at 102 Aaa 2,425,125
1,975,000 New Jersey Economic Development Authority
(Hackensack Water Company), Alternative
Minimum Tax, 7.000%, 10/01/17 10/96 at 102 A 1,978,555
New Jersey Economic Development Authority (New
Jersey Performing Arts Center):
610,000 6.600%, 6/15/04 6/01 at 102 A+ 621,425
3,800,000 6.750%, 6/15/12 6/01 at 102 A+ 3,671,560
1,000,000 New Jersey Educational Facilities Authority
(Princeton University), 5.875%, 7/01/20 7/04 at 100 Aaa 905,430
5,000,000 New Jersey Health Care Facilities Financing
Authority (Passaic Hospital), 10.375%, 7/01/14
(Pre-refunded to 7/01/95) 7/95 at 103 Baa1 5,293,150
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 307,008
4,875,000 New Jersey Health Care Facilities Finance Authority
(St. Peter's Medical Center), 6.875%, 7/01/11
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 5,241,893
New Jersey Health Care Facilities Financing
Authority (Atlantic City Medical Center):
3,600,000 6.800%, 7/01/05 7/02 at 102 A- 3,643,884
1,000,000 6.800%, 7/01/11 7/02 at 102 A- 992,660
7,500,000 New Jersey Health Care Facilities Financing
Authority (JFK Health Systems), 6.600%, 7/01/08 7/01 at 102 Aaa 7,592,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 9,300,000 New Jersey Health Care Facilities Financing
Authority (Centrastate Medical Center),
6.625%, 7/01/11 7/01 at 102 Aaa $ 9,411,228
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 2,911,320
2,750,000 New Jersey Health Care Facilities Financing
Authority (Robert Wood Johnson University
Hospital), 6.625%, 7/01/16 7/01 at 102 Aaa 2,742,190
4,350,000 New Jersey Health Care Facilities Financing
Authority (Mercer Medical Center),
6.500%, 7/01/10 7/01 at 102 Aaa 4,352,784
1,500,000 New Jersey Health Care Facilities Financing
Authority (Bayonne Hospital),
6.250%, 7/01/12 (DD) 7/04 at 102 Aaa 1,447,485
445,000 New Jersey Higher Education Assistance Authority,
Student Loan, 7.200%, 7/01/09 7/01 at 102 A 445,556
9,300,000 New Jersey Highway Authority (Garden State
Parkway), 7.250%, 1/01/16 (Pre-refunded
to 1/01/99) 1/99 at 102 Aaa 10,002,615
New Jersey Housing and Mortgage Finance Agency:
3,000,000 6.800%, 11/01/05 11/02 at 102 AA+ 3,089,850
4,700,000 6.950%, 11/01/08 11/01 at 103 AA+ 4,800,298
1,000,000 7.100%, 11/01/11 11/01 at 103 AA+ 1,016,890
2,100,000 6.700%, 11/01/28 11/02 at 102 A+ 2,018,499
12,000,000 7.000%, 5/01/30 11/01 at 102 AAA 12,155,760
New Jersey Housing and Mortgage Finance Agency,
Alternative Minimum Tax:
3,255,000 7.600%, 10/01/09 10/99 at 102 Aaa 3,358,086
5,500,000 6.300%, 4/01/25 10/00 at 102 Aaa 5,098,775
1,000,000 5.950%, 4/01/25 10/00 at 102 Aaa 856,430
1,075,000 5.500%, 10/01/26 10/03 at 102 Aaa 851,228
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+ 8,724,636
850,000 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 906,228
2,600,000 New Jersey Turnpike Authority, 6.500%, 1/01/16 No Opt. Call A 2,573,584
3,000,000 New Jersey Wastewater Treatment Trust,
7.375%, 5/15/08 5/98 at 102 Aaa 3,177,810
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+ 2,467,890
2,500,000 Atlantic County Utilities Authority, Sewer System,
5.000%, 1/15/13 1/97 at 100 Aaa 2,084,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 Bedminster Board of Education, Certificates of
Participation, 7.125%, 9/01/10 3/01 at 102 A1 $ 1,555,605
3,000,000 Bergen County General Obligation, 5.500%, 8/15/07 No Opt. Call Aaa 2,842,890
3,700,000 Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resource Recovery
System), Alternative Minimum Tax,
7.500%, 12/01/09 12/01 at 102 Baa1 3,631,439
Cape May County Municipal Utilities Authority:
2,000,000 6.000%, 1/01/11 1/03 at 102 Aaa 1,925,440
2,205,000 9.000%, 1/01/16 1/96 at 102 Aaa 2,325,966
5,200,000 5.750%, 1/01/16 1/03 at 102 Aaa 4,723,420
1,000,000 Dover Board of Education, Certificates of
Participation, 6.600%, 6/01/11 12/01 at 100 Aaa 1,010,960
1,265,000 East Brunswick Township General Obligation,
5.125%, 4/01/13 4/03 at 101 Aa 1,078,134
7,800,000 Essex County Fiscal Year Adjustment,
6.500%, 12/01/11 12/01 at 101 Aaa 7,864,974
4,095,000 Evesham Township Board of Education, Certificates
of Participation, 6.875%, 9/01/11 9/01 at 102 Aaa 4,222,355
8,200,000 Jersey City Fiscal Year Adjustment, 6.600%, 5/15/11 5/01 at 102 Aaa 8,337,596
1,525,000 Long Branch Housing Finance Corporation
(Washington Manor Association),
10.000%, 10/01/11 4/95 at 102 N/R 1,598,963
Mercer County Improvement Authority,
Custodial Receipts:
3,000,000 6.050%, 1/01/09 No Opt. Call AA- 2,991,570
1,585,000 6.050%, 1/01/13 No Opt. Call AA- 1,503,531
8,000,000 Midlesex County Pollution Control Authority
(Amerada Hess), 6.875%, 12/01/22 12/02 at 102 N/R 7,716,240
3,500,000 Monmouth County Improvement Authority, Sewage
Facilities, 6.750%, 2/01/13 2/01 at 102 Aaa 3,730,580
Ocean County General Obligation:
1,661,000 6.250%, 10/01/10 10/01 at 102 Aa 1,626,634
1,661,000 6.300%, 10/01/11 10/01 at 102 Aa 1,630,504
1,200,000 Passaic County General Obligation, 6.700%, 9/01/10
(Pre-refunded to 9/01/99) 9/99 at 102 N/R 1,272,996
4,000,000 Passaic Valley Sewer Commissioners,
5.800%, 12/01/18 12/02 at 102 Aaa 3,635,280
1,100,000 Salem County Pollution Control Authority
(E I DuPont - Chambers Works Project), Alternative
Minimum Tax, 6.500%, 11/15/21 11/01 at 102 Aa2 1,045,132
5,000,000 Union County Utilities Authority, Solid Waste
System, Alternative Minimum Tax,
6.850%, 6/15/14 6/02 at 102 Aaa 4,925,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Port Authority of New York and New Jersey:
$ 3,400,000 7.750%, 1/15/23 1/95 at 102 AA- $ 3,472,386
2,400,000 8.000%, 12/01/23 2/96 at 102 AA- 2,499,600
2,150,000 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 2,063,097
12,000,000 Port Authority of New York and New Jersey,
Consolidated Bonds, Alternative Minimum Tax,
8.250%, 4/01/23 4/95 at 102 AA- 12,346,080
3,355,000 Port Authority of New York and New Jersey,
Alternative Minimum Tax, 8.125%, 8/15/23 8/95 at 102 AA- 3,491,884
6,000,000 Puerto Rico Electric Power Authority,
7.000% 7/01/11 7/01 at 102 A- 6,111,300
Puerto Rico Housing Finance Corporation, Single
Family Mortgage:
1,000,000 6.750%, 10/15/13 10/01 at 102 Aaa 1,002,479
5,500,000 6.850%, 10/15/24 10/01 at 102 Aaa 5,542,459
$246,297,000 Total Investments - (cost $244,911,565) - 97.6% 246,746,543
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.5%
$ 1,100,000 New Jersey Economic Development Authority, Dock
Facility (Bayonne/IMTT), Variable Rate Demand
Bonds, 5.850%, 12/01/27t VMIG-1 1,100,000
100,000 Port Authority of New York and New Jersey, Special
Obligation, Versatile Structure, Alternative
Minimum Tax, Variable Rate Demand Bonds,
5.400%, 8/01/28t VMIG-1 100,000
$ 1,200,000 Total Temporary Investments - 0.5% 1,200,000
============
Other Assets Less Liabilities - 1.9% 4,954,236
Net Assets - 100% $252,900,779
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 31 $127,011,716 51%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 50,223,357 20
PORTFOLIO OF A+ A1 5 10,334,979 4
INVESTMENTS A, A- A, A2, A3 11 30,842,007 13
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 8,924,589 4
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 2,063,097 1
INVESTMENTS): Non-rated Non-rated 5 17,346,798 7
TOTAL 70 $246,746,543 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
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
(Unaudited)
NUVEEN NEW JERSEY QUALITY INCOME MUNICIPAL FUND, INC. (NUJ)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 500,000 New Jersey Economic Development Authority
(Natural Gas Facilities), Alternative Minimum Tax,
7.250%, 3/01/21 3/98 at 102 A2 $ 506,350
5,600,000 New Jersey Economic Development Authority
(Liberty State Park Project), 6.800%, 3/15/22 3/02 at 102 A1 5,558,056
3,000,000 New Jersey Economic Development Authority
(AMR Corporation), Alternative Minimum Tax,
7.100%, 11/01/31 11/01 at 102 Baa2 2,825,340
2,850,000 New Jersey Economic Development Authority
(Hackensack Water Company), Alternative
Minimum Tax, 7.000%, 10/01/17 10/96 at 102 A 2,855,130
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 4,874,850
2,500,000 New Jersey Economic Development Authority,
7.000%, 7/01/04 No Opt. Call Aaa 2,688,400
New Jersey Educational Facilities Authority (Seton
Hall University):
500,000 6.875%, 7/01/10 7/01 at 102 BBB 502,390
2,500,000 7.000%, 7/01/21 7/01 at 102 BBB 2,501,575
5,000,000 New Jersey General Obligation, 6.375%, 8/01/11 8/02 at 101 1/2 Aa1 4,986,950
6,885,000 New Jersey Health Care Facilities Financing
Authority (St. Peter's Medical Center),
7.250%, 7/01/13 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 7,317,998
4,515,000 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 4,877,509
5,025,000 New Jersey Health Care Facilities Financing
Authority (Pascack Valley Hospital Association),
6.700%, 7/01/11 7/01 at 102 A- 4,775,358
New Jersey Health Care Facilities Financing
Authority (Barnert Hospital):
1,380,000 6.750%, 8/01/11 8/01 at 102 Aaa 1,377,157
3,200,000 6.800%, 8/01/19 8/01 at 102 Aaa 3,103,296
4,950,000 New Jersey Health Care Facilities Financing
Authority (Palisades Medical Center),
7.500%, 7/01/06 7/02 at 102 Ba 4,886,442
500,000 New Jersey Health Care Facilities Financing
Authority (Overlook Hospital), 6.700%, 7/01/13 7/97 at 102 Aaa 504,180
1,800,000 New Jersey Health Care Facilities Financing
Authority (Atlantic City Medical Center),
6.800%, 7/01/11 7/02 at 102 A- 1,786,788
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 887,460
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
New Jersey Housing and Mortgage Finance Agency:
$ 2,500,000 6.900%, 11/01/07 11/01 at 103 AA+ $ 2,557,675
9,650,000 6.950%, 11/01/13 5/02 at 102 A+ 9,747,562
1,150,000 6.700%, 11/01/28 11/02 at 102 A+ 1,105,369
2,445,000 New Jersey Sports and Exposition Authority,
6.500%, 3/01/19 3/02 at 102 Aa 2,424,120
New Jersey Turnpike Authority:
5,000,000 6.900%, 1/01/14 1/96 at 100 A 5,013,800
5,160,000 6.500%, 1/01/16 No Opt. Call A 5,107,574
7,000,000 Bergen County Utility Authority, Water Pollution
Control System, 6.500%, 12/15/12 6/02 at 102 Aaa 7,053,690
3,500,000 Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resource Recovery),
Alternative Minimum Tax, 7.500%, 12/01/10 12/01 at 102 Baa1 3,423,525
400,000 Cape May County Municipal Utilities Authority,
5.750%, 1/01/16 1/03 at 102 Aaa 363,340
2,320,000 Hoboken General Obligation, 8.900%, 8/01/06 No Opt. Call Aaa 2,891,254
5,250,000 Howell Township General Obligation,
6.800%, 1/01/14 1/02 at 102 Aaa 5,366,760
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 3,721,098
3,675,000 Jersey City Fiscal Year Adjustment, 8.400%, 5/15/06 No Opt. Call Aaa 4,417,718
Mercer County Improvement Authority,
Custodial Receipts:
1,000,000 6.050%, 1/01/14 AA- 936,820
1,720,000 6.050%, 1/01/16 AA- 1,600,426
2,000,000 6.050%, 1/01/17 AA- 1,857,980
950,000 Mercer County Improvement Authority (County
Courthouse), 6.600%, 11/01/14 (Pre-refunded
to 11/01/00) 11/00 at 102 Aa1 1,004,055
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 2,662,704
1,180,000 Raritan Township Municipal Utility Authority,
6.450%, 5/01/12 5/02 at 102 A+ 1,178,643
Rutgers State University:
2,900,000 6.500%, 5/01/13 5/02 at 102 AA 2,927,898
1,725,000 6.500%, 5/01/18 5/02 at 102 AA 1,714,547
5,150,000 Salem County Pollution Control Authority
(E I DuPont - Chambers Works Project),
Alternative Minimum Tax, 6.500%, 11/15/21 11/01 at 102 Aa2 4,893,118
1,465,000 South Toms River Sewerage Authority,
7.400%, 11/01/05 11/02 at 102 N/R 1,473,907
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 5,000,000 Union County Utilities Authority, Solid Waste
System, Alternative Minimum Tax, 6.850%, 6/15/14 6/02 at 102 Aaa $ 4,925,900
2,450,000 University of Medicine and Dentistry of New Jersey,
6.500%, 12/01/18 12/01 at 102 AA 2,458,011
2,150,000 Port Authority of New York and New Jersey,
LaGuardia Airport Passenger Terminal (Delta
Air Lines), 6.950%, 6/01/08 6/02 at 102 Ba1 2,063,096
7,900,000 Port Authority of New York and New Jersey,
Consolidated Bonds, Alternative Minimum Tax,
8.250%, 4/01/23 4/95 at 102 AA- 8,127,835
$146,610,000 Total Investments - (cost $148,584,778) - 98.2% 147,833,654
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 100,000 Port Authority of New York and New Jersey,
============ Special Obligation, Versatile Structure, Alternative
Minimum Tax, Variable Rate Demand
Bonds, 5.400%, 8/01/28t VMIG-1 100,000
Other Assets Less Liabilities - 1.7% 2,587,258
Net Assets - 100% $150,520,912
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 13 $ 48,608,300 33%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 38,152,139 26
PORTFOLIO OF A+ A1 4 17,589,630 12
INVESTMENTS A, A- A, A2, A3 6 20,045,000 14
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 5 10,140,290 7
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 2 6,949,538 4
INVESTMENTS): Non-rated Non-rated 2 6,348,757 4
TOTAL 45 $147,833,654 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
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
(Unaudited)
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,600,000 New Jersey Economic Development Authority
(Yeshiva K'tana of Passaic), 8.000%, 9/15/18 No Opt. Call N/R $ 3,838,896
3,000,000 New Jersey Economic Development Authority
(Bridgewater Resources, Inc.), Alternative
Minimum Tax, 8.375%, 11/01/04 No Opt. Call N/R 2,986,560
1,485,000 New Jersey Economic Development Authority
(Elizabethtown Water Company), Alternative
Minimum Tax, 6.700%, 8/01/21 8/01 at 102 A 1,419,408
1,785,000 New Jersey Economic Development Authority
(New Jersey-American Water Company), Alternative
Minimum Tax, 5.500%, 6/01/23 6/03 at 102 Aaa 1,492,706
2,000,000 New Jersey Economic Development Authority
(Morris Hall/St. Lawrence, Inc.), 6.150%, 4/01/13 4/03 at 102 A+ 1,835,680
New Jersey Economic Development Authority,
Alternative Minimum Tax:
1,380,000 5.000%, 10/01/05 10/03 at 102 AA- 1,262,465
1,550,000 5.300%, 12/01/07 12/03 at 102 Aa1 1,429,751
1,250,000 New Jersey Educational Facilities Authority (New
Jersey Institute of Technology), 6.000%, 7/01/24 7/04 at 102 Aaa 1,157,650
New Jersey General Obligation:
5,260,000 5.750%, 2/15/06 No Opt. Call Aa1 5,091,838
4,000,000 5.800%, 2/15/07 No Opt. Call Aa1 3,881,240
2,500,000 6.000%, 2/15/11 No Opt. Call Aa1 2,400,100
2,385,000 6.800%, 9/15/11 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 2,542,768
1,760,000 New Jersey Health Care Facilities Financing Authority
(JFK Health System), 5.400%, 7/01/13 7/03 at 102 Aaa 1,529,475
1,000,000 New Jersey Health Care Facilities Financing Authority
(Wayne General Hospital), 5.750%, 8/01/11 8/04 at 102 AAA 929,280
1,000,000 New Jersey Higher Educational Assistance Authority,
Student Loan, Alternative Minimum Tax,
6.125%, 7/01/09 7/02 at 102 A+ 900,070
New Jersey Housing Finance Agency:
1,425,000 8.250%, 11/01/20 5/95 at 100 A1 1,457,063
1,400,000 7.250%, 11/01/23 5/95 at 100 A1 1,402,268
New Jersey Housing and Mortgage Finance Agency:
2,365,000 6.700%, 5/01/05 5/02 at 102 A+ 2,397,424
2,000,000 6.950%, 11/01/13 5/02 at 102 A+ 2,020,220
4,250,000 6.600%, 11/01/14 11/02 at 102 A+ 4,130,660
1,250,000 6.700%, 11/01/28 11/02 at 102 A+ 1,201,488
2,000,000 New Jersey Sports and Exposition Authority,
5.500%, 9/01/23 9/03 at 101 Aa 1,682,440
New Jersey Turnpike Authority:
1,750,000 10.375%, 1/01/03 No Opt. Call AAA 2,076,445
1,200,000 6.500%, 1/01/16 No Opt. Call A 1,187,808
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,750,000 Atlantic City Municipal Utilities Authority Water
System, 5.750%, 5/01/17 5/02 at 102 A- $ 1,545,740
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 1,064,870
2,500,000 5.500%, 6/15/13 6/02 at 100 Aaa 2,250,750
2,655,000 Bergen County Utility Authority, Water Pollution
Control System, 5.500%, 12/15/15 6/02 at 100 Aaa 2,334,064
3,600,000 Camden County Pollution Control Financing
Authority, Solid Waste Disposal and Resource
Recovery, Alternative Minimum Tax,
7.125%, 12/01/01 No Opt. Call Baa1 3,541,284
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 Baa1 3,406,480
3,000,000 Cape May County Municipal Utilities Authority,
5.750%, 1/01/16 1/03 at 102 Aaa 2,725,050
500,000 Essex County Improvement Authority,
6.000%, 12/01/17 12/02 at 102 Aaa 469,815
2,690,000 Lacey Municipal Utility Authority,
5.500%, 12/01/19 12/03 at 102 Aaa 2,327,469
3,500,000 Mercer County Improvement Authority, Solid Waste,
Alternative Minimum Tax, 6.700%, 4/01/13 4/02 at 102 Aaa 3,521,035
750,000 Monmouth County Improvement Authority, General
Obligation, 5.650%, 4/15/08 4/03 at 102 Aaa 702,623
2,275,000 Northwest Bergen County Utilities Authority,
7.500%, 7/15/13 (Pre-refunded to 7/15/96) 7/96 at 102 Aaa 2,395,120
1,195,000 South Jersey Port Corporation, 4.900%, 1/01/08 No Opt. Call A+ 1,034,583
1,950,000 South Jersey Port Corporation, Alternative Minimum
Tax, 5.750%, 1/01/13 1/03 at 102 A+ 1,717,190
1,000,000 Sussex County General Obligation, 5.000%, 12/01/05 No Opt. Call Aaa 899,160
1,220,000 Sussex County Municipal Utilities Authority, General
Obligation, 5.250%, 12/01/08 12/03 at 102 Aaa 1,092,974
3,500,000 Sussex County Municipal Utility Authority,
7.875%, 12/01/13 (Pre-refunded to 12/01/98) 12/98 at 102 AAA 3,852,170
3,500,000 Sussex County Municipal Utility Authority, Solid
Waste, 5.500%, 12/01/13 12/02 at 100 Aaa 3,114,895
4,425,000 Union County Utilities Authority, Solid Waste System,
Alternative Minimum Tax, 7.200%, 6/15/14 6/02 at 102 A- 4,365,616
3,000,000 Port Authority of New York and New Jersey,
Alternative Minimum Tax, 6.600%, 10/01/23 10/04 at 101 Aaa 2,961,540
5,000,000 Puerto Rico Public Buildings Authority,
5.750%, 7/01/15 7/03 at 101 1/2 A 4,403,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Puerto Rico Electric Power Authority:
$ 3,230,000 5.875%, 7/01/06 1/95 at 101 A $ 3,134,262
2,000,000 6.250%, 7/01/17 7/02 at 101 1/2 A- 1,876,340
3,500,000 Puerto Rico Industrial Medical Educational and
Environmental Authority (American Home
Products), 5.100%, 12/01/18 12/03 at 103 A2 2,787,644
$112,835,000 Total Investments - (cost $113,800,617) - 98.7% 107,778,277
============
Other Assets Less Liabilities - 1.3% 1,454,091
Net Assets - 100% $109,232,368
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 19 $ 36,897,091 34%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 7 18,290,602 17
PORTFOLIO OF A+ A1 10 18,096,646 17
INVESTMENTS: A, A- A, A2, A3 8 20,720,718 19
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 6,947,764 7
Non-rated Non-rated 2 6,825,456 6
TOTAL 48 $107,778,277 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND 2 (NJP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 4,000,000 New Jersey Economic Development Authority
(Bridgewater Resources, Inc.), Alternative
Minimum Tax, 8.375%, 11/01/04 No Opt. Call N/R $ 3,982,080
4,450,000 New Jersey Economic Development Authority (New
Jersey American Water Company), Alternative
Minimum Tax, 5.500%, 6/01/23 6/03 at 102 Aaa 3,721,313
1,255,000 New Jersey Economic Development Authority (Morris
Hall/St. Lawrence, Inc.), 6.150%, 4/01/13 4/03 at 102 A+ 1,151,889
3,485,000 New Jersey Economic Development Authority
(Public School Small Project Loan Program),
5.400%, 8/15/12 8/03 at 102 AAA 3,089,313
3,130,000 New Jersey Economic Development Authority,
Alternative Minimum Tax, 5.300%, 12/01/07 12/03 at 102 Aa1 2,887,175
1,000,000 New Jersey Educational Facilities Authority, Trenton
State College Issue, 6.750%, 7/01/08 1/95 at 100 1/2 A+ 1,004,500
1,560,000 New Jersey General Obligation, 6.000%, 2/15/13 No Opt. Call Aa1 1,480,674
New Jersey Health Care Facilities Financing
Authority, St. Peter's Medical Center Issue:
4,300,000 5.000%, 7/01/11 7/03 at 102 Aaa 3,595,617
860,000 8.600%, 7/01/17 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 940,943
2,450,000 New Jersey Health Care Facilities Financing Authority
(Mountainside Hospital), 5.500%, 7/01/14 7/03 at 102 Aaa 2,156,760
3,765,000 New Jersey Higher Educational Assistance Authority,
Student Loan, Alternative Minimum Tax,
5.300%, 7/01/10 7/03 at 102 A+ 3,171,674
New Jersey Housing Finance Agency:
8,355,000 8.250%, 11/01/20 5/95 at 100 A1 8,535,669
1,395,000 7.250%, 11/01/23 5/95 at 100 A1 1,397,260
New Jersey Housing and Mortgage Finance Agency:
1,000,000 6.950%, 11/01/13 5/02 at 102 A+ 1,010,110
1,000,000 6.600%, 11/01/14 11/02 at 102 A+ 971,920
3,000,000 6.700%, 11/01/28 11/02 at 102 A+ 2,883,570
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+ 3,518,295
New Jersey Turnpike Authority:
1,250,000 10.375%, 1/01/03 No Opt. Call AAA 1,483,175
1,000,000 6.500%, 1/01/16 No Opt. Call A 989,840
500,000 Bayshore Regional Sewerage Authority,
5.400%, 5/01/12 5/03 at 102 Aaa 447,560
2,500,000 Bergen County Utility Authority, Solid Waste System,
5.500%, 6/15/13 6/02 at 100 Aaa 2,250,750
2,000,000 Bergen County Utility Authority, Water Pollution
Control System, 5.500%, 12/15/15 6/02 at 100 Aaa 1,758,240
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,000,000 Camden County Pollution Control Financing
Authority, Solid Waste Disposal and Resource
Recovery, Alternative Minimum Tax,
7.125%, 12/01/01 No Opt. Call Baa1 $ 2,951,070
Cape May County Municipal Utilities Authority:
2,250,000 5.750%, 1/01/16 1/03 at 102 Aaa 2,043,788
1,000,000 5.000%, 1/01/16 1/03 at 102 Aaa 818,590
5,000,000 Delaware River and Bay Authority, 5.000%, 1/01/17 1/04 at 102 Aaa 4,033,850
Egg Harbor Township School District,
General Obligation:
1,430,000 4.750%, 2/15/09 2/03 at 100 Aaa 1,186,385
1,160,000 4.750%, 2/15/10 9/03 at 100 Aaa 949,796
1,000,000 Mercer County Improvement Authority, Solid Waste,
Alternative Minimum Tax, 6.400%, 4/01/06 4/02 at 102 Aaa 1,014,500
600,000 Montville Township Municipal Utilities Authority,
5.500%, 12/01/13 12/03 at 102 Aaa 535,176
525,000 New Brunswick Housing and Urban Development
Authority, 5.500%, 8/01/16 8/03 at 102 Aaa 445,678
1,000,000 New Brunswick Parking Authority, 5.400%, 9/01/15 9/03 at 102 Aaa 869,650
1,740,000 Ocean County Utilities Authority, 5.750%, 1/01/18 1/02 at 102 AA- 1,543,745
Passaic County General Obligation:
4,000,000 5.125%, 9/01/12 No Opt. Call Aaa 3,400,640
500,000 5.200%, 9/01/16 9/03 at 101 Aaa 417,850
2,040,000 Passaic Valley Sewer Commissioners,
5.750%, 12/01/10 12/02 at 102 Aaa 1,916,437
2,510,000 Piscataway Township School District, Certificates of
Participation, 5.375%, 12/15/10 6/03 at 102 Aaa 2,234,327
2,000,000 Rutgers State University, 8.125%, 5/01/17
(Pre-refunded to 5/01/97) 5/97 at 102 Aaa 2,155,820
2,720,000 Sussex County Municipal Utilities Authority, General
Obligation, 5.375%, 12/01/14 12/03 at 102 Aaa 2,364,333
1,000,000 Sussex County Municipal Utility Authority, Solid
Waste, 5.500%, 12/01/13 12/02 at 100 Aaa 889,970
3,000,000 Union County Utilities Authority, Solid Waste System,
Alternative Minimum Tax, 7.200%, 6/15/14 6/02 at 102 A- 2,959,740
1,585,000 Warren County Municipal Utilities Authority,
Wastewater System, 5.300%, 12/01/11 12/03 at 101 Aaa 1,365,192
1,000,000 Puerto Rico Public Buildings Authority,
5.750%, 7/01/15 7/03 at 101 1/2 A 880,780
1,500,000 Puerto Rico Electric Power Authority,
6.250%, 7/01/17 7/02 at 101 1/2 A- 1,407,255
3,500,000 Puerto Rico Industrial, Medical, Educational, and
Environmental Authority (American Home
Products), 5.100%, 12/01/18 12/03 at 103 A2 2,787,644
$99,615,000 Total Investments - (cost $99,991,683) - 98.1% 91,600,543
===========
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.5%
$ 500,000 Port Authority of New York and New Jersey, Versatile
=========== Structure Obligations, Variable Rate Demand
Bonds, 5.500%, 5/01/19t A-1+ $ 500,000
Other Assets Less Liabilities - 1.4% 1,272,127
Net Assets - 100% $93,372,670
===========
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 26 $46,085,653 50%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 4 9,429,889 10
PORTFOLIO OF A+ A1 8 20,126,592 22
INVESTMENTS A, A- A, A2, A3 5 9,025,259 10
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 2,951,070 3
TEMPORARY Non-rated Non-rated 1 3,982,080 5%
INVESTMENTS):
TOTAL 45 $91,600,543 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
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
(Unaudited)
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND 3 (NJU)
<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 $ 1,159,542
1,500,000 New Jersey Economic Development Authority,
7.000%, 7/01/04 No Opt. Call Aaa 1,613,040
2,095,000 New Jersey Educational Facilities Authority (Trenton
State College), 6.000%, 7/01/09 7/02 at 102 Aaa 2,037,744
1,940,000 New Jersey Educational Facilities Authority (Princeton
University), 5.875%, 7/01/20 7/04 at 100 Aaa 1,756,534
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 1,082,508
800,000 7.000%, 7/01/04 No Opt. Call Aaa 854,304
2,000,000 New Jersey Health Care Facilities Financing Authority
(Overlook Hospital), 6.700%, 7/01/13 7/97 at 102 Aaa 2,016,720
2,000,000 New Jersey Health Care Facilities Financing Authority
(St. Peter's Medical Center), 5.000%, 7/01/13 7/03 at 102 Aaa 1,651,700
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 1,182,552
2,000,000 New Jersey Health Care Facilities Financing Authority
(Monmouth Medical Center), 6.250%, 7/01/16 7/04 at 102 Aaa 1,909,160
2,000,000 New Jersey Higher Educational Assistance Authority,
Student Loan, Alternative Minimum Tax,
5.300%, 7/01/10 7/03 at 102 A+ 1,684,820
1,000,000 New Jersey Housing Finance Agency, Multi-Family
Mortgage, 8.250%, 11/01/20 5/95 at 100 A1 1,022,500
2,150,000 New Jersey Housing and Mortgage Finance Agency,
Alternative Minimum Tax, 5.500%, 10/01/26 10/03 at 102 Aaa 1,702,456
2,000,000 New Jersey Turnpike Authority, 6.500%, 1/01/16 No Opt. Call A 1,979,680
890,000 Camden Board of Education, 5.000%, 10/01/06 10/03 at 101 Aaa 799,656
2,100,000 Delaware River and Bay Authority, 5.000%, 1/01/17 1/04 at 102 Aaa 1,694,217
2,000,000 East Brunswick Township General Obligation,
5.125%, 4/01/13 4/03 at 101 Aa 1,704,560
250,000 Franklin Township Somerset County School District,
Certificates of Participation, 6.900%, 12/15/00 6/99 at 100 Aaa 262,550
1,000,000 Jersey City Sewerage Authority, 6.250%, 1/01/14 No Opt. Call Aaa 977,200
1,000,000 Long Branch Housing Finance Corporation
(Washington Manor Association), 10.000%, 10/01/11 4/95 at 102 N/R 1,048,500
1,000,000 Mercer County Improvement Authority, Custodial
Receipts, 6.050%, 1/01/12 No Opt. Call AA- 963,050
1,500,000 New Brunswick Parking Authority, 5.400%, 9/01/15 9/03 at 102 Aaa 1,304,475
600,000 North Arlington General Obligation, 4.800%, 2/01/10 No Opt. Call Aaa 495,774
1,200,000 Ocean County Utilities Authority, 5.750%, 1/01/18 1/02 at 102 AA- 1,064,652
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Parsippany-Troy Hills Township, General Obligation,
5.000%, 2/01/08 No Opt. Call Aa1 $ 874,710
890,000 Pinelands Regional Board of Education, Certificates
of Participation, 5.500%, 4/01/98 No Opt. Call N/R 871,559
750,000 Port Authority of New York and New Jersey,
5.000%, 10/01/14 10/03 at 101 AA- 604,387
1,000,000 Rutgers State University, 5.000%, 5/01/19 5/03 at 102 AA 797,210
650,000 Southern Gloucester County Board of Education,
General Obligation, 5.000%, 10/01/14 No Opt. Call Aaa 534,196
1,000,000 Stony Brook Regional Sewer Authority,
5.450%, 12/01/12 No Opt. Call AA- 883,960
1,500,000 Wanaque Valley Regional Sewer Authority,
5.750%, 9/01/18 No Opt. Call Aaa 1,353,165
$41,375,000 Total Investments - (cost $40,884,861) - 96.7% 37,887,081
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.0%
$ 400,000 Port Authority of New York and New Jersey, Special
=========== Obligation, Versatile Structure, Alternative
Minimum Tax, Variable Rate Demand Bonds,
5.400%, 8/01/28t VMIG-1 400,000
Other Assets Less Liabilities - 2.3% 894,169
Net Assets - 100% $39,181,250
==========
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 18 $23,227,951 62%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 7 6,892,529 18
PORTFOLIO OF A+ A1 2 2,707,320 7
INVESTMENTS A, A- A, A2, A3 2 3,139,222 8
(EXCLUDING Non-Rated Non-Rated 2 1,920,059 5
TEMPORARY
INVESTMENTS):
TOTAL 31 $37,887,081 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
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
(Unaudited)
<CAPTION>
NQJ NUJ NNJ NJP
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $246,746,543 $147,833,654 $107,778,277 $91,600,543
Temporary investments in short-term municipal
securities, at market value which equals cost (note 1) 1,200,000 100,000 -- 500,000
Cash 138,656 68,507 128,099 144,099
Receivables:
Interest 5,263,824 3,140,553 1,844,630 1,530,571
Investments sold 4,892,500 115,000 65,000 --
Other assets 9,112 5,761 7,922 9,151
------------ ------------ ------------ -----------
Total assets 258,250,635 151,263,475 109,823,928 93,784,364
------------ ------------ ------------ -----------
LIABILITIES
Payable for investments purchased 3,826,128 -- -- --
Accrued expenses:
Management fees (note 6) 137,393 82,227 59,800 51,057
Other 95,016 73,994 86,367 45,215
Preferred share dividends payable 54,789 17,126 13,719 11,837
Common share dividends payable 990,692 569,216 360,183 303,585
Capital gain distributions payable 245,838 -- 71,491 --
------------ ------------ ------------ -----------
Total liabilities 5,349,856 742,563 591,560 411,694
------------ ------------ ------------ -----------
Net assets (note 7) $252,900,779 $150,520,912 $109,232,368 $93,372,670
============ ============ ============ ===========
Preferred shares, at liquidation value $ 80,000,000 $ 50,000,000 $ 40,000,000 $36,000,000
============ ============ ============ ===========
Preferred shares outstanding 3,200 2,000 1,600 1,440
============ ============ ============ ===========
Common shares outstanding 12,230,768 7,251,162 5,457,321 4,857,358
============ ============ ============ ===========
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 14.14 $ 13.86 $ 12.69 $ 11.81
============ ============ ============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NJU
<S> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $37,887,081
Temporary investments in short-term municipal
securities, at market value which equals cost (note 1) 400,000
Cash 77,655
Receivables:
Interest 1,005,011
Investments sold --
Other assets 13,108
-----------
Total assets 39,382,855
-----------
LIABILITIES
Payable for investments purchased --
Accrued expenses:
Management fees (note 6) 21,423
Other 49,493
Preferred share dividends payable 7,695
Common share dividends payable 122,994
Capital gain distributions payable --
-----------
Total liabilities 201,605
-----------
Net assets (note 7) $39,181,250
===========
Preferred shares, at liquidation value $15,600,000
===========
Preferred shares outstanding 624
===========
Common shares outstanding 2,084,643
===========
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 11.31
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended December 31, 1994
(Unaudited)
<CAPTION>
NQJ NUJ NNJ NJP
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $ 8,373,335 $ 4,960,854 $ 3,393,936 $ 2,880,475
----------- ----------- ----------- -----------
Expenses:
Management fees (note 6) 831,023 497,884 364,728 310,893
Preferred shares--auction fees 100,822 63,014 50,411 45,370
Preferred shares--dividend disbursing agent fees 7,562 7,562 7,562 7,562
Shareholders' servicing agent fees and expenses 22,448 13,495 13,991 12,896
Custodian's fees and expenses 25,133 23,839 22,777 21,586
Directors'/Trustees' fees and expenses (note 6) 1,868 679 769 718
Professional fees 10,125 9,577 9,653 9,773
Shareholders' reports--printing and mailing expenses 33,707 28,589 26,362 24,380
Stock exchange listing fees 11,065 10,140 8,690 7,432
Investor relations expense 6,633 5,248 3,310 2,825
Other expenses 5,539 4,853 4,693 9,793
----------- ----------- ----------- -----------
Total expenses 1,055,925 664,880 512,946 453,228
----------- ----------- ----------- -----------
Net investment income 7,317,410 4,295,974 2,880,990 2,427,247
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (375,013) (61,048) (731,935) (845,281)
Net change in unrealized appreciation or depreciation
of investments (6,378,200) (4,368,228) (3,423,477) (2,766,159)
----------- ----------- ----------- -----------
Net gain (loss) from investments (6,753,213) (4,429,276) (4,155,412) (3,611,440)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets from operations $ 564,197 $ (133,302) $(1,274,422) $(1,184,193)
=========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended December 31, 1994
(Unaudited)
<CAPTION>
NJU
<S> <C>
INVESTMENT INCOME
Interest income (note 1) $ 1,169,659
-----------
Expenses:
Management fees (note 6) 130,836
Preferred shares--auction fees 19,660
Preferred shares--dividend disbursing agent fees 7,562
Shareholders' servicing agent fees and expenses 4,223
Custodian's fees and expenses 18,532
Directors'/Trustees' fees and expenses (note 6) 578
Professional fees 9,428
Shareholders' reports--printing and mailing expenses 16,884
Stock exchange listing fees 3,280
Investor relations expense 1,894
Other expenses 6,756
-----------
Total expenses 219,633
-----------
Net investment income 950,026
-----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (613,369)
Net change in unrealized appreciation or depreciation
of investments (1,058,597)
-----------
Net gain (loss) from investments (1,671,966)
-----------
Net increase (decrease) in net assets from operations $ (721,940)
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES
IN NET ASSETS
(Unaudited)
<CAPTION>
NQJ NUJ
6 months ended Year ended 6 months ended Year ended
12/31/94 6/30/94 12/31/94 6/30/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 7,317,410 $ 14,535,113 $ 4,295,974 $ 8,547,672
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (375,013) 338,311 (61,048) (17,678)
Net change in unrealized appreciation or depreciation
of investments (6,378,200) (13,317,707) (4,368,228) (7,019,912)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations 564,197 1,555,717 (133,302) 1,510,082
------------ ------------ ------------ ------------
Distributions to Shareholders (note 1)
From net investment income:
Common shareholders (6,368,826) (13,013,662) (3,558,324) (7,540,212)
Preferred shareholders (1,240,348) (1,716,020) (765,266) (1,161,347)
From net realized gains from investment transactions:
Common shareholders (245,839) (748,468) -- (79,133)
Preferred shareholders (31,040) (120,064) -- (13,060)
------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders (7,886,053) (15,598,214) (4,323,590) (8,793,752)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from sale of Common shares -- -- -- --
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 504,968 2,882,625 297,364 1,481,802
Preferred shares--net proceeds from sale of shares -- -- -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from
capital share transactions 504,968 2,882,625 297,364 1,481,802
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (6,816,888) (11,159,872) (4,159,528) (5,801,868)
Net assets at beginning of period 259,717,667 270,877,539 154,680,440 160,482,308
------------ ------------ ------------ ------------
Net assets at end of period $252,900,779 $259,717,667 $150,520,912 $154,680,440
============ ============ ============ ============
Balance of undistributed net investment income
at end of period $ 731,789 $ 1,023,553 $ 583,321 $ 610,937
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES
IN NET ASSETS
(Unaudited)
<CAPTION>
NNJ
6 months ended 11 months ended 12/17/92 to
12/31/94 6/30/94 7/31/93
<S> <C> <C> <C>
OPERATIONS
Net investment income $ 2,880,990 $ 5,132,596 $ 2,148,200
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (731,935) 86,388 1,592
Net change in unrealized appreciation or depreciation
of investments (3,423,477) (6,218,838) 3,619,975
------------ ------------ ------------
Net increase (decrease) in net assets
from operations (1,274,422) (999,854) 5,769,767
------------ ------------ ------------
Distributions to Shareholders (note 1)
From net investment income:
Common shareholders (2,199,300) (3,888,804) (1,813,876)
Preferred shareholders (663,239) (919,450) (292,054)
From net realized gains from investment transactions:
Common shareholders (71,491) -- --
Preferred shareholders (16,688) -- --
------------ ------------ ------------
Decrease in net assets from distributions
to shareholders (2,950,718) (4,808,254) (2,105,930)
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from sale of Common shares -- -- 75,370,095
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 -- 380,535 522,679
Preferred shares--net proceeds from sale of shares -- -- 39,228,462
------------ ------------ ------------
Net increase in net assets derived from
capital share transactions -- 380,535 115,121,236
------------ ------------ ------------
Net increase (decrease) in net assets (4,225,140) (5,427,573) 118,785,073
Net assets at beginning of period 113,457,508 118,885,081 100,008
------------ ------------ ------------
Net assets at end of period $109,232,368 $113,457,508 $118,885,081
============ ============ ============
Balance of undistributed net investment income
at end of period $ 385,063 $ 366,612 $ 42,270
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES
IN NET ASSETS
(Unaudited)
<CAPTION>
NJP
6 months ended 11 months ended 3/18/93 to
12/31/94 6/30/94 7/31/93
<S> <C> <C> <C>
OPERATIONS
Net investment income $ 2,427,247 $ 4,285,595 $ 715,202
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (845,281) (964,396) --
Net change in unrealized appreciation or depreciation
of investments (2,766,159) (6,419,910) 794,929
----------- ------------ ------------
Net increase (decrease) in net assets
from operations (1,184,193) (3,098,711) 1,510,131
----------- ------------ ------------
Distributions to Shareholders (note 1)
From net investment income:
Common shareholders (1,821,513) (3,338,626) (605,987)
Preferred shareholders (540,205) (762,408) (38,242)
From net realized gains from investment transactions:
Common shareholders -- -- --
Preferred shareholders -- -- --
----------- ------------ ------------
Decrease in net assets from distributions
to shareholders (2,361,718) (4,101,034) (644,229)
----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from sale of Common shares -- -- 67,698,073
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 -- 131,391 22,952
Preferred shares--net proceeds from sale of shares -- -- 35,300,000
----------- ------------ ------------
Net increase in net assets derived from
capital share transactions -- 131,391 103,021,025
----------- ------------ ------------
Net increase (decrease) in net assets (3,545,911) (7,068,354) 103,886,927
Net assets at beginning of period 96,918,581 103,986,935 100,008
----------- ------------ ------------
Net assets at end of period $93,372,670 $ 96,918,581 $103,986,935
=========== ============ ============
Balance of undistributed net investment income
at end of period $ 321,062 $ 255,534 $ 70,973
=========== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES
IN NET ASSETS
(Unaudited)
<CAPTION>
NJU
6 months ended 11 months ended 6/18/93 to
12/31/94 6/30/94 7/31/93
<S> <C> <C> <C>
OPERATIONS
Net investment income $ 950,026 $ 1,563,132 $ 43,770
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (613,369) (1,537,426) --
Net change in unrealized appreciation or depreciation
of investments (1,058,597) (1,947,458) 8,275
----------- ----------- -----------
Net increase (decrease) in net assets
from operations (721,940) (1,921,752) 52,045
----------- ----------- -----------
Distributions to Shareholders (note 1)
From net investment income:
Common shareholders (737,965) (1,254,124) --
Preferred shareholders (237,126) (264,589) --
From net realized gains from investment transactions:
Common shareholders -- -- --
Preferred shareholders -- -- --
----------- ----------- -----------
Decrease in net assets from distributions
to shareholders (975,091) (1,518,713) --
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from sale of Common shares -- 2,458,750 26,385,000
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 -- 103,910 --
Preferred shares--net proceeds from sale of shares -- 15,219,033 --
----------- ----------- -----------
Net increase in net assets derived from
capital share transactions -- 17,781,693 26,385,000
----------- ----------- -----------
Net increase (decrease) in net assets (1,697,031) 14,341,228 26,437,045
Net assets at beginning of period 40,878,281 26,537,053 100,008
----------- ----------- -----------
Net assets at end of period $39,181,250 $40,878,281 $26,537,053
=========== =========== ===========
Balance of undistributed net investment income
at end of period $ 63,124 $ 88,189 $ 43,770
=========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At December 31, 1994, the state Funds (the "Funds") covered in this report and
their corresponding stock exchange symbols are Nuveen New Jersey Investment
Quality Municipal Fund, Inc. (NQJ), Nuveen New Jersey Quality Income Municipal
Fund, Inc. (NUJ), Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ),
Nuveen New Jersey Premium Income Municipal Fund 2 (NJP) and Nuveen New Jersey
Premium Income Municipal Fund 3 (NJU). All of the above mentioned funds are
traded on the New York Stock Exchange except for NJU which is traded on the
American Stock Exchange.
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
Effective June 30, 1994, NNJ, NJP and NJU changed their fiscal year ends
for financial reporting purposes to June 30 from July 31.
Prior to commencement of their investment operations, each Fund had no
operations other than those relating to organizational matters and the initial
capital contributions from Nuveen Advisory Corp. (the "Adviser"), a wholly
owned subsidiary of The John Nuveen Company.
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 Directors/Trustees. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at principal amount.
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 December 31, 1994, NQJ had outstanding purchase commitments of
$3,826,128. There were no such purchase commitments in any of the other Funds.
Interest Income
Interest income is determined on the basis of interest accrued and discount
earned, adjusted for amortization of premiums or discounts on long-term debt
securities when required for federal income tax purposes.
Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, to retain such tax exempt status when
distributed to shareholders of the Funds.
<PAGE>
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 net realized gains from
investment transactions, if applicable.
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in one Series. The dividend
rate on each Series may change every 7 days, as set by the Auction Agent. The
number of shares outstanding by Series at December 31, 1994, for each Fund is
as follows:
<CAPTION>
NQJ NUJ NNJ NJP
<S> <C> <C> <C> <C>
Number of shares:
Series M 3,200 -- -- --
Series T -- -- -- --
Series W -- -- -- 1,440
Series Th -- 2,000 1,600 --
===== ===== ===== =====
<CAPTION>
NJU
<S> <C>
Number of shares:
Series M --
Series T 624
Series W --
Series Th --
====
Organization and Offering Costs
Costs incurred by the Funds in connection with the organization and offerings
of both the Common and Preferred shares were as follows:
<CAPTION>
NNJ NJP NJU
<S> <C> <C> <C>
$1,130,943 $998,876 $620,179
========== ======== ========
These costs were recorded as a reduction of the proceeds from the sale of the
shares.
</TABLE>
<PAGE>
Proposed Reorganizations
As approved by shareholders on December 22, 1994, NQJ will acquire
substantially all of the assets of NUJ in exchange for newly issued shares of
NQJ and the assumption by NQJ of substantially all of the liabilities of NUJ.
Following receipt of the NQJ shares, NUJ will be liquidated and the NQJ shares
will be distributed to the shareholders of NUJ. As a result of this
reorganization, the assets and liabilities of the Funds will be combined and
the shareholders of NUJ will thus become shareholders in NQJ. This
reorganization is expected to be completed on January 10, 1995. The investment
objectives and policies of the larger combined Fund would be virtually
identical to that of each of the separate Funds.
As approved by shareholders on January 13, 1995, NNJ will acquire
substantially all of the assets of NJP and NJU in exchange for newly issued
shares of NNJ and the assumption by NNJ of substantially all of the
liabilities of NJP and NJU. Following receipt of the NNJ shares, NJP and NJU
will be liquidated and the NNJ shares will be distributed to the shareholders
of NJP and NJU. As a result of this reorganization, the assets and liabilities
of the Funds will be combined and the shareholders of NJP and NJU will thus
become shareholders in NNJ. This reorganization is expected to be completed on
February 6, 1995. The investment objectives and policies of the larger
combined Fund would be virtually identical to that of each of the separate
Funds.
<TABLE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<CAPTION>
NQJ NUJ
6 months ended Year ended 6 months ended Year ended
12/31/94 6/30/94 12/31/94 6/30/94
<S> <C> <C> <C> <C>
Common shares:
Shares sold -- -- -- --
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 20,091 92,729
------ -------- ------ ------
Net increase 33,541 174,739 20,091 92,729
====== ======= ====== ======
Preferred shares sold -- -- -- --
====== ======= ====== ======
<CAPTION>
NNJ
6 months ended 11 months ended 12/17/92 to
12/31/94 6/30/94 7/31/93
<S> <C> <C> <C>
Common shares:
Shares sold -- -- 5,390,000
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment transactions -- 25,426 34,777
----- ------- ---------
Net increase -- 25,426 5,424,777
===== ====== =========
Preferred shares sold -- -- 1,600
===== ====== =========
<PAGE>
<CAPTION>
NJP
6 months ended 11 months ended 3/18/93 to
12/31/94 6/30/94 7/31/93
<S> <C> <C> <C>
Common shares:
Shares sold -- -- 4,840,000
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment transactions -- 8,697 1,543
----- ------ ---------
Net increase -- 8,697 4,841,543
===== ===== =========
Preferred shares sold -- -- 1,440
===== ===== =========
<CAPTION>
NJU
6 months ended 11 months ended 6/18/93 to
12/31/94 6/30/94 7/31/93
<S> <C> <C> <C>
Common shares:
Shares sold -- 175,000* 1,900,000
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment transactions -- 2,525 --
----- ------- ---------
Net increase -- 177,525 1,900,000
===== ======= =========
Preferred shares sold -- 624 --
===== ======= =========
<FN>
*Amount shown reflects overallotment for shares sold in the initial public
offering, which occurred during the Fund's initial period ended July 31, 1993.
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
December 31, 1994, were as follows:
<CAPTION>
NQJ NUJ NNJ NJP
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $ 9,826,552 $3,718,725 $13,048,353 $8,410,743
Temporary municipal investments 6,300,000 3,500,000 8,500,000 8,500,000
SALES AND MATURITIES
Investments in municipal securities 14,108,094 1,998,477 12,996,778 7,333,493
Temporary municipal investments 8,100,000 4,300,000 8,500,000 9,000,000
=========== ========== =========== ==========
<CAPTION>
NJU
<S> <C>
PURCHASES
Investments in municipal securities $12,108,779
Temporary municipal investments 6,200,000
SALES AND MATURITIES
Investments in municipal securities 12,046,163
Temporary municipal investments 6,100,000
===========
At December 31, 1994, 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, 1994, the Funds' last fiscal year end, the following Funds
had unused capital loss carryovers available for federal income tax purposes
to be applied against future security gains, if any. If not applied, the
carryovers will expire as follows:
<CAPTION>
NUJ NJP NJU
<S> <C> <C> <C>
Expiration Year:
2002 $17,678 $963,845 $1,537,426
======= ======== ==========
</TABLE>
<PAGE>
<TABLE>
4. Distributions to COMMON Shareholders
On December 30, 1994, the following Funds declared Common shares dividend
distributions from their ordinary income and supplemental dividend
distributions from their undistributed net investment income which were paid
February 1, 1995, to shareholders of record on January 10, 1995, as follows:
<CAPTION>
NQJ NUJ
<S> <C> <C>
Dividend per share $.0810 $.0785
====== ======
Supplemental dividend per share $ -- $.0259
====== ======
On January 3, 1995, the following Funds declared Common share dividend
distributions from their ordinary income which were paid February 1, 1995, to
shareholders of record on January 15, 1995, as follows:
<CAPTION>
NNJ NJP NJU
<S> <C> <C> <C>
Dividend per share $.0660 $.0625 $.0590
====== ====== ======
</TABLE>
<PAGE>
<TABLE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at December 31, 1994, were as follows:
<CAPTION>
NQJ NUJ NNJ NJP
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $4,517,274 $1,400,348 $ 357,084 $ 249,125
Depreciation (2,682,296) (2,151,472) (6,379,424) (8,640,265)
---------- ---------- ------------ -----------
Net unrealized appreciation (depreciation) $1,834,978 $ (751,124) $(6,022,340) $(8,391,140)
========== ========== =========== ===========
<CAPTION>
NJU
<S> <C>
Gross unrealized:
Appreciation $ 47,013
Depreciation (3,044,793)
-----------
Net unrealized appreciation (depreciation) $(2,997,780)
===========
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT Fee and Other Transactions with Affiliates
Under the Funds' investment management agreements with the Adviser, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors/Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. Composition of Net Assets
At December 31, 1994, net assets consisted of:
<CAPTION>
NQJ NUJ NNJ NJP
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 80,000,000 $ 50,000,000 $ 40,000,000 $36,000,000
Common shares, $.01 par value per share 122,308 72,512 54,573 48,574
Paid-in surplus 170,586,717 100,694,929 75,547,007 67,203,851
Undistributed net investment income 731,789 583,321 385,063 321,062
Accumulated net realized gain (loss) from
investment transactions, net of taxes, if applicable (375,013) (78,726) (731,935) (1,809,677)
Net unrealized appreciation or depreciation
of investments 1,834,978 (751,124) (6,022,340) (8,391,140)
------------ ------------ ------------ -----------
Net assets $252,900,779 $150,520,912 $109,232,368 $93,372,670
============ ============ ============ ===========
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 1,000,000 Unlimited
============ ============ ============ ===========
<CAPTION>
NJU
<S> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $15,600,000
Common shares, $.01 par value per share 20,846
Paid-in surplus 28,645,855
Undistributed net investment income 63,124
Accumulated net realized gain (loss) from
investment transactions, net of taxes, if applicable (2,150,795)
Net unrealized appreciation or depreciation
of investments (2,997,780)
-----------
Net assets $39,181,250
===========
Authorized shares:
Common Unlimited
Preferred Unlimited
===========
</TABLE>
<PAGE>
<TABLE>
8. Investment Composition
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At December 31, 1994, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NQJ NUJ NNJ NJP
<S> <C> <C> <C> <C>
Revenue Bonds:
Health Care Facilities 14% 9% 3% 8%
Housing Facilities 17 14 13 16
Educational Facilities 1 7 5 5
Transportation 11 14 6 5
Pollution Control Facilities 7 8 11 10
Water / Sewer Facilities 9 2 10 10
Electric Utilities 8 1 -- 2
Lease Rental Facilities 6 3 6 3
Other 5 7 20 13
General Obligation Bonds 9 24 15 19
Escrowed Bonds 13 11 11 9
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
<CAPTION>
NJU
<S> <C>
Revenue Bonds:
Health Care Facilities 23%
Housing Facilities 10
Educational Facilities 17
Transportation 11
Pollution Control Facilities --
Water / Sewer Facilities 6
Electric Utilities 3
Lease Rental Facilities 6
Other 4
General Obligation Bonds 20
Escrowed Bonds --
-----
100%
=====
</TABLE>
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 (47% for NQJ, 29% for NUJ, 36% for NNJ, 51%
for NJP, and 57% for NJU). Such insurance or escrow, however, does not
guarantee the market value of the municipal securities or the value of any of
the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
Financial Highlights
(Unaudited)
selected data for a common share outstanding throughout each period is as follows:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income mentstt shareholders shareholderst
NQJ
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 $14.730 $ .598 $ (.543) $ (.521) $(.101)
Year ended 6/30,
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>
NUJ
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 14.480 .593 (.616) (.491) (.106)
Year ended 6/30,
1994 15.480 1.187 (.964) (1.049) (.161)
1993 14.560 1.197 .917 (1.018) (.176)
10/17/91 to
6/30/92 14.050 .632 .624 (.444) (.084)
<CAPTION>
NNJ
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 13.460 .528 (.757) (.403) (.122)
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
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderst offering costs of period period
NQJ
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 $(.020) $(.003) $ -- $14.140 $13.000
Year ended 6/30,
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>
NUJ
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 -- -- -- 13.860 12.625
Year ended 6/30,
1994 (.011) (.002) -- 14.480 14.625
1993 -- -- -- 15.480 16.125
10/17/91 to
6/30/92 -- -- (.218) 14.560 14.500
<CAPTION>
NNJ
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 (.013) (.003) -- 12.690 11.125
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
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets net assets rate
NQJ
<S> <C> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 (11.41)% (.32)% $252,901 .82*% 5.67*% 4%
Year ended 6/30,
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>
NUJ
<S> <C> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 (10.54) (.89) 150,521 .87* 5.59* 1
Year ended 6/30,
1994 (3.03) .23 154,680 .86 5.33 6
1993 18.75 13.83 160,482 .90 5.46 2
10/17/91 to
6/30/92 (.36) 6.93 152,466 .87* 5.19* 9
<CAPTION>
NNJ
<S> <C> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 (6.81) (2.63) 109,232 .91* 5.14* 12
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 54.
<PAGE>
Financial Highlights
(Unaudited)
selected data for a common share outstanding throughout each period is as follows:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income mentstt shareholders shareholderst
NJP
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 $12.540 $.500 $ (.744) $(.375) $(.111)
11 Mos. ended
6/30/94 14.020 .882 (1.517) (.688) (.157)
3/18/93 to
7/31/93 14.050 .148 .166 (.125) (.008)
<CAPTION>
NJU
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 12.130 .456 (.808) (.354) (.114)
11 Mos. ended
6/30/94 13.910 .749 (1.615) (.602) (.128)
6/18/93 to
7/31/93 14.050 .023 -- -- --
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderst offering costs of period period
NJP
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 $ -- $ -- $ -- $11.810 $10.125
11 Mos. ended
6/30/94 -- -- -- 12.540 12.000
3/18/93 to
7/31/93 -- -- (.211) 14.020 14.500
<CAPTION>
NJU
<S> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 -- -- -- 11.310 10.125
11 Mos. ended
6/30/94 -- -- (.184) 12.130 11.125
6/18/93 to
7/31/93 -- -- (.163) 13.910 14.750
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets net assets rate
NJP
<S> <C> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 (12.70)% (2.84)% $ 93,373 .95*% 5.08*% 8%
11 Mos. ended
6/30/94 (12.86) (5.97) 96,919 .94* 4.57* 16
3/18/93 to
7/31/93 (2.52) .67 103,987 .96* 2.83* --
<CAPTION>
NJU
<S> <C> <C> <C> <C> <C> <C>
6 Mos. ended
12/31/94 (5.97) (3.86) 39,181 1.09* 4.72* 31
11 Mos. ended
6/30/94 (21.07) (8.76) 40,878 1.12* 4.17* 85
6/18/93 to
7/31/93 (1.67) (1.00) 26,537 1.17* 1.77* --
<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 The amounts shown are based on Common share equivalents.
tt Net of taxes, if applicable. See note 1.
</TABLE>
<PAGE>
The human bond
Photo of John Nuveen
At John Nuveen & Co. Incorporated, where our tax-free municipal bonds have
helped people live their dreams for nearly 100 years, we still believe our
strongest bond is human.TM
For almost a century, John Nuveen & Company has concentrated its resources and
expertise in one area: municipal bonds. We are one of the oldest and largest
investment banking firms specializing exclusively in municipal securities, and
we strive to be the best.
Our approach to managing our shareholders' investments endures. We maintain
a sharp focus on the needs of prudent investors and their families, offer
investments of quality, and then work to make them better by seeking out
opportunity. We hold to a dedicated belief in the importance of research. And
we sustain a commitment to sound financial management through value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we strive to provide our
shareholders with the attractive level of income they need to achieve their
personal goals and aspirations.
These are the things that matter most, and it's why we say that, at Nuveen,
our strongest bond is human.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF2-FEB 95
