Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams
NEW JERSEY INVESTMENT QUALITY (NQJ)
NEW JERSEY PREMIUM INCOME (NNJ)
PENNSYLVANIA INVESTMENT QUALITY (NQP)
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
ANNUAL REPORT/JUNE 30, 1996
Photographic image of couple walking on beach.
<PAGE>
Photographic image of financial adviser reviewing financial statements/plans
with older couple.
Tax-informed investing
An important part of any successful investment program is gauging how
well your investments have performed and measuring your progress toward your
long-term goals.
<PAGE>
The imposition of taxes dramatically alters the relative returns of the five
asset classes. Graph showing after-tax returns, 1976-1996.
Municipals 8.26
Treasuries 5.62
Corporates 6.11
Stocks 10.51
Treasury Bills 3.87
Traditionally, the most common way to measure performance has been to compare
pre-tax rates of return for your different investments across similar time
periods. The rationale behind this method is that each investor is taxed at a
different rate, making pre-tax comparisons the seemingly logical way to ensure
you are comparing apples to apples.
This, however, is precisely the rationale that can make a pre-tax
performance assessment misleading. When returns are presented on a pre-tax
basis, you may lose sight of the major impact taxes can have on your earnings,
and fail to get the complete picture of your progress toward your investment
goals. At Nuveen, we've built our reputation helping investors realize that
it's not what you earn, it's what you keep.
TAX-INFORMED INVESTING: THE KEY TO MEASURING LONG-TERM RESULTS
The true measure of an investment is its performance on an after-tax basis.
Analyzing after-tax returns gains added significance when you realize that the
taxes you pay can never be regained. Once that money is "lost," it can't be
put to work through compounding, earning additional dollars for you.
To better illustrate the ways that taxes can affect the amount you keep
versus the amount you earn, Nuveen Research recently studied 20 years of
investment returns, both pre-tax and after-tax, to determine the impact of
taxes on various asset classes. We were particularly interested in the study
results for municipal bonds, an asset class that is commonly excluded from the
top performance rankings when only pre-tax returns are considered.
MEASURING WHAT YOU KEEP
The study showed that, once the impact of taxes was figured into the equation,
municipal bonds offered a distinct advantage over other fixed income
investments. Over the study period, municipal bonds outperformed both
corporate and Treasury bonds (see accompanying tables), as high tax rates and
the loss of compounding income took their toll on corporate and Treasury
results.
As investors are well aware, performance over the long term--and the
purchasing power of their earnings--can be eroded by inflation as well as
taxes. The study showed that, over the past 20 years, only municipal bonds and
stocks provided significant after-tax gains over the Consumer Price Index, the
most recognized measure of inflation.
<PAGE>
ABOUT THE STUDY
The study, "Measuring What You Keep: Historical After-Tax Returns," compared
pre-tax and after-tax total returns over the past 20 years for five asset
classes: municipal bonds, Treasury bonds, Treasury bills, corporate bonds, and
large company stocks. Returns for each asset class were represented by the
returns on commonly used market indexes compiled by Lehman Brothers and
Ibbotson & Associates.
A hypothetical investment of $100,000 was made in each of these asset
classes at the beginning of 1976, with all dividends and interest reinvested
through the end of 1995. In addition, the after-tax proceeds of an assumed
annual 20% turnover rate were reinvested. The study assumed that taxes were
paid annually at the applicable federal income tax rates for an investor
earning the equivalent of $100,000 in 1995. Of course, this hypothetical
investment performance neither reflects past performance nor predicts future
results of any Nuveen investment.
INCORPORATING TAX-INFORMED INVESTING IN YOUR PORTFOLIO
The Nuveen study confirms what many investors have known for years: that
municipal bonds can play a critical role in the long-term financial strategies
of tax-informed investors.
Balancing short-term and long-term investments
Combining shorter- and longer-term tax-free investments may help you manage
cumulative risk in your portfolio while still capturing the potential for
attractive overall rates. Shorter-term investments can help reduce the current
volatility of your portfolio and provide a source of investable funds to take
advantage of additional investment opportunities as they arise. Longer-term
leveraged exchange-traded funds have provided attractive yields and offer
trading flexibility that allows quick and easy portfolio adjustments.
Dividend reinvestment
Studies indicate that weathering market cycles by maintaining an investment
plan with long-term goals can help shield investors in the event of a
declining market. The purchase of additional shares on a regular schedule,
such as through dividend reinvestment, is another strategy for navigating
market changes. Dividend reinvestment is an easy and convenient way to set
aside dollars on a regular basis, helping you take advantage of dollar-cost
averaging while gaining the benefits of tax-free compounding.
CONSISTENT AFTER-TAX PERFORMANCE
For the long-term investor, performance--even after the impact of taxes and
inflation--is the true measure of an investment's merit. While most investors
choose municipal bonds for their tax-free income advantage, the positive news
about their after-tax returns reinforces their potential value as part of a
tax-informed investment strategy designed to meet long-term objectives.
Understanding the impact of taxes can mean that you keep more of what you
earn, and municipal bonds can help you do just that.
<PAGE>
Only municipals and equities generated significant increases in purchasing
power over the twenty-year period, with after-tax and inflation-adjusted
returns in excess of 2.75% annually.
<TABLE>
ANNUAL AFTER-TAX REAL RETURNS, 1976-1995
<CAPTION>
PERIOD MUNICIPALS TREASURIES CORPORATES STOCKS BILLS
<S> <C> <C> <C> <C> <C>
1976-1985 .69% -3.32% -2.14% 2.75% -2.67%
1986-1995 5.15 4.21 3.91 7.31 0.13
1976-1995 2.88% 0.37% 0.84% 5.02% -1.30%
</TABLE>
<PAGE>
Photographic image of couple walking on beach.
CONTENTS
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
13 Fund performance
15 Commonly used terms
17 Portfolio of investments
43 Statement of net assets
44 Statement of operations
45 Statement of changes in net assets
47 Notes to financial statements
54 Financial highlights
56 Report of independent auditors
57 Nuveen Exchange-Traded Funds
dividend reinvestment program
<PAGE>
Municipal market perspective
Following the outstanding performance of 1995, the beginning of 1996 saw a
slight price decline in the overall bond market. Municipal bonds, however,
maintained an edge over Treasuries and finished off the first half of the year
on a positive note with a rally in bond prices. Over the past 12 months, the
municipal market continued to reward investors with solid returns and
opportunities to purchase higher yielding bonds with strong credit quality.
A look at the current economy shows that inflation continues to amble along at
the same modest pace that it has demonstrated over the past five years.
Generally level producer prices, low wage pressure, and a stable money supply
are supportive of a moderately expanding economy.
Despite this ideal combination of slow expansion and low inflation, investors
continue to maintain a watchful eye for any indication of acceleration or the
reappearance of inflation. These investors may draw some reassurance from the
fact that recent meetings of the Federal Reserve Open Market Committee appear
to confirm the Fed's continued commitment to a policy of controlled inflation
and economic growth, which bodes well for the bond markets and bond investors.
<PAGE>
Dear shareholder
Photographic image of head shot of Chairman and Chief Executive Officer of
Nuveen.
"Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors."
As I begin my duties as the new chairman and chief executive officer of John
Nuveen & Co. Incorporated and chairman of the board of the Nuveen
exchange-traded funds, I am pleased to have this opportunity to report to you
on the performance of your funds. My experience at Nuveen over the past 19
years has shaped my commitment to maintaining Nuveen's tradition of value
investing and prudent management. We strive to help our shareholders meet
their need for tax-free investment income with a full range of investment
choices. Our focus will continue to be on building shareholder value,
providing research-oriented management, and delivering dependable performance.
We believe this focus will contribute to many more years of investment success
for our fund shareholders.
Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors. The performance of the exchange-traded funds
covered in this report demonstrates the ability of quality investments to
provide attractive tax-free income. As of June 30, 1996, the current annual
yield on share price for these funds ranged from 6.21% to 6.37%. To match
these yields, an investor in the 40% New Jersey, and 38% Pennsylvania income
tax brackets would have had to earn at least 10.55% and 10.02%, respectively,
on taxable alternatives. Without question, taxable yields at this level on
investments of comparable quality can be difficult to achieve in today's
markets.
With the strength of the bond market last year, some of these funds saw an
increase in share price, further improving investors' overall experience for
the year ending June 30, 1996, while producing returns that continue to be
very attractive. Total returns, representing changes in net asset value and
reinvestment of all dividends and capital gains, if any, ranged from 6.00% to
8.39%, equivalent to taxable investments with total returns of 10.18% to
12.11%.
The years ahead present opportunities as well as challenges for all of us. I
want to thank you for your continued confidence in Nuveen exchange-traded
funds, and I look forward to sharing reports of continued progress with you.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
August 15, 1996
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, discusses the
investment environment and recent factors affecting the municipal market.
Photographic image of montage of letters received by Nuveen.
What has been Nuveen's investment approach over the past year?
Nuveen continues to pursue its value investing strategy, a disciplined
approach to security selection and portfolio construction designed to deliver
above-market performance by identifying individual bonds with current yields,
prices, credit quality, and future prospects that are exceptionally attractive
relative to other bonds in the market. This approach was rewarded over the
past year, as many of our portfolio holdings were upgraded by the national
rating agencies, indicating that our Research Department's judgments about
credit quality were on target.
As opportunity allowed, we purchased an increased number of bonds at
discounts from their par value. These bonds, which have coupon rates slightly
below market levels, are less likely to be called from our portfolios,
assuring more stable yields for our investors.
<PAGE>
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
Some funds' discounts seem to have narrowed over the past few months. What
caused this improvement?
To understand the reasons for this improvement, it may be helpful to
remember that each share has two prices: the net asset value (NAV), which
represents the underlying value of the bonds, and the share price, which is
the fund's price on the stock exchange. As with other securities, share prices
for municipal bond funds change frequently, driven by investors' demand for
shares and the available supply. When a fund's NAV is higher than its share
price, we say that the shares can be purchased at a discount.
In 1995, the recovery of the bond market meant that the net asset values for
some funds appreciated more quickly than their share prices, widening
discounts for a while. This is not unusual, as the market often takes time to
reflect underlying value balanced against the various factors that affect
individual investor decisions, such as the outlook for the direction of
interest rates, inflation forecasts, the relative strength of the stock
market, and legislative and tax outlooks. As investor worries about tax
reform--and the potential effect of a flat tax proposal on tax-free
investments--waned over the first half of the year, the demand for tax-free
products grew. The combination of higher yields, concerns about the direction
of the stock market, and broker recommendations has also prompted greater
demand for municipal bonds and bond funds. With increased demand, share prices
have risen, resulting in narrower discounts. In fact, some exchange-traded
funds are now trading at a premium, that is, their share prices are higher
than their NAVs.
<PAGE>
What are some of the factors affecting dividend stability and changes?
All Nuveen funds are structured to provide an attractive stream of tax-free
income. For many investors, stability of income is another important
objective. To help investors satisfy this objective, we set dividends on
Nuveen funds conservatively, seeking a level that we expect will be
sustainable for at least several months. Many of the funds that have seen
dividend reductions over the past year had previously enjoyed prolonged
periods without dividend changes. Still, dividends ultimately depend on the
overall earnings of each fund, which can be reduced by bond calls,
fluctuations in long- and short-term interest rates, and other portfolio
changes.
The funds in this report use leverage as an additional way to enhance income
for common shareholders. The dividends of leveraged funds, however, can be
affected by a sudden or prolonged rise in short-term interest rates. In fact,
short-term rates on average have been higher over the past two years than they
were in the early 1990s. This has resulted in higher rates for preferred
shareholders and less income available for common shareholders. It is
important to remember that leverage can increase NAV volatility as well as
investment potential. Greater stability in both long- and short-term interest
rates in 1996 has reduced some of the pressures on dividends and NAVs for many
leveraged funds.
Another factor that can act to lower dividends is bond calls. When the
Federal Reserve Board cut rates between July 1995 and January 1996, long-term
municipal bond yields reacted by declining almost 130 basis points from their
levels at the beginning of 1995. As older, higher-yielding bonds were called
from some portfolios, they were replaced with the bonds available in the
market today, reducing fund earnings. To reduce the effect of bond calls and
protect investors' current income, Nuveen has taken advantage of opportunities
to invest in an increased number of non-callable bonds as well as bonds priced
at a discount from their par value.
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<TABLE>
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQJ
The fund's dividend was decreased in August 1995 to reflect the current
earnings of the portfolio. Dividends have remained stable for the past 11
months, at a level above those of other comparable long-term bond funds.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
07/12/95 $0.0810
08/11/95 $0.0785
09/13/95 $0.0785
10/11/95 $0.0785
11/13/95 $0.0785
12/13/95 $0.0785
01/10/96 $0.0785
02/13/96 $0.0785
03/13/96 $0.0785
04/11/96 $0.0785
05/13/96 $0.0785
06/12/96 $0.0785
<CAPTION>
FUND HIGHLIGHTS 6/30/96
<S> <C>
Yield 6.33%
Taxable-equivalent yield 10.55%
Annual total return on NAV 6.28%
Taxable-equivalent total return 10.58%
Share price $14.875
NAV $15.05
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>
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<TABLE>
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NNJ
Shareholders in this fund enjoyed an increase in the monthly tax-free dividend
in June 1996, reflecting improved fund earnings. This fund has been less
affected by bond calls than funds with higher dividends.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
07/12/95 $0.0675
08/11/95 $0.0675
09/13/95 $0.0675
10/11/95 $0.0675
11/13/95 $0.0675
12/13/95 $0.0675
01/10/96 $0.0675
02/13/96 $0.0675
03/13/96 $0.0675
04/11/96 $0.0675
05/13/96 $0.0675
06/12/96 $0.0690
<CAPTION>
FUND HIGHLIGHTS 6/30/96
<S> <C>
Yield 6.37%
Taxable-equivalent yield 10.62%
Annual total return on NAV 7.37%
Taxable-equivalent total return 11.34%
Share price $13.00
NAV $14.18
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>
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<TABLE>
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NQP
In addition to a capital gains distribution in December, this fund paid
attractive dividends throughout the year. Despite bond calls that reduce
income over time, these dividends remain higher than those of many comparable
funds.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
07/12/95 $0.0880
08/11/95 $0.0880
09/13/95 $0.0880
10/11/95 $0.0880
11/13/95 $0.0880
12/13/95 $0.0880 $0.0307
01/10/96 $0.0880
02/13/96 $0.0865
03/13/96 $0.0865
04/11/96 $0.0865
05/13/96 $0.0865
06/12/96 $0.0865
<CAPTION>
FUND HIGHLIGHTS 6/30/96
<S> <C>
Yield 6.34%
Taxable-equivalent yield 10.23%
Annual total return on NAV 6.00%
Taxable-equivalent total return 10.18%
Share price $16.375
NAV $15.72
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>
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<TABLE>
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
NPY
In response to changes in both long- and short-term interest rates,
shareholders experienced modest dividend rate changes over the past 12 months.
At current interest rates, this fund should be less affected by bond calls
than other comparable funds.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
07/12/95 $0.0685
08/11/95 $0.0655
09/13/95 $0.0655
10/11/95 $0.0655
11/13/95 $0.0655
12/13/95 $0.0655
01/10/96 $0.0655
02/13/96 $0.0640
03/13/96 $0.0640
04/11/96 $0.0640
05/13/96 $0.0640
06/12/96 $0.0640
<CAPTION>
FUND HIGHLIGHTS 6/30/96
<S> <C>
Yield 6.21%
Taxable-equivalent yield 10.02%
Annual total return on NAV 8.39%
Taxable-equivalent total return 12.11%
Share price $12.375
NAV $13.57
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>
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Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, June 30, 1996) 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 1996 incomes of
$121,300-$263,750 for investors filing singly, $147,700-$263,750 for those
filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any 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.
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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, 1996. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
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<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>
$ 375,000 Higher Education Assistance Authority (State of New
New Jersey), Senior Student Loan Revenue Bonds, 1991
Series A, 7.200%, 7/01/09 (Alternative Minimum Tax) 7/01 at 102 A $ 381,893
400,000 New Jersey Economic Development Authority, Adjustable -
Fixed Rate Pollution Control Revenue Bonds, 1985
Series (Jersey Central Power & Light Company Project),
7.100%, 7/01/15 7/01 at 103 A- 413,384
3,260,000 New Jersey Economic Development Authority, Natural
Gas Facilities Refunding Revenue Bonds, Series 1991A
(New Jersey Natural Gas Company Project),
7.050%, 3/01/16 3/98 at 102 A 3,424,076
2,000,000 New Jersey Economic Development Authority, Natural
Gas Facilities Revenue Bonds, Series 1991B (New Jersey
Natural Gas Company Project), 7.250%, 3/01/21
(Alternative Minimum Tax) 3/98 at 102 A 2,098,760
5,000,000 New Jersey Economic Development Authority, Gas
Facilities Revenue Bonds, 1991 Series (Elizabethtown
Gas Company Project), 6.625%, 10/01/21 (Alternative
Minimum Tax) 10/96 at 102 A3 5,114,450
5,600,000 New Jersey Economic Development Authority, Lease
Rental Bonds, 1992 Series (Liberty State Park Project),
6.800%, 3/15/22 (Pre-refunded to 3/15/02) 3/02 at 102 A1 6,201,664
1,500,000 New Jersey Economic Development Authority, Economic
Development Bonds, Bridgewater Resources Inc., Series
1991, 9.500%, 2/01/01 (Alternative Minimum Tax) No Opt. Call N/R 1,542,030
3,000,000 New Jersey Economic Authority, Economic Development
Bonds (American Airlines, Inc. Project), 7.100%, 11/01/31
(Alternative Minimum Tax) 11/01 at 102 Baa2 3,148,860
5,000,000 New Jersey Economic Development Authority, Water
Facilities Revenue Bonds, Series 1991 (New Jersey-
American Water Company, Inc. Project), 7.400%, 11/01/01
(Alternative Minimum Tax) No Opt. Call N/R 5,044,750
1,975,000 New Jersey Economic Development Authority, Water
Facilities Revenue Bonds (Hackensack Water Company
Project 1987 Series C), 7.000%, 10/01/17 (Alternative
Minimum Tax) 10/96 at 102 A 2,021,808
2,850,000 New Jersey Economic Development Authority, Water
Facilities Revenue Bonds (Hackensack Water Company
Project 1987 Series D), 7.000%, 10/01/17 (Alternative
Minimum Tax) 10/96 at 102 A 2,917,545
5,000,000 New Jersey Economic Development Authority, Economic
Development Revenue Bonds (J & JSnack Foods
Corporation of New Jersey Project), Series 91,
7.250%, 12/01/05 (Alternative Minimum Tax) 12/96 at 105 N/R 5,094,200
7,500,000 New Jersey Economic Development Authority, Water
Facilities Revenue Bonds, New Jersey-American Water
Company, Series 96, 6.000%, 5/01/36 (Alternative
Minimum Tax) 5/06 at 102 Aaa 7,459,875
New Jersey Economic Development Authority Revenue
Bonds (New Jersey Performing Arts Center Site
Acquisition Project), 1991 Series:
610,000 6.600%, 6/15/04 6/01 at 102 A+ 655,268
3,800,000 6.750%, 6/15/12 6/01 at 102 A+ 3,946,604
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,500,000 New Jersey Economic Development Authority, Market
Transition Facility Senior Lien Revenue Bonds, Series
1994A, 7.000%, 7/01/04 No Opt. Call Aaa $ 2,804,725
New Jersey Educational Facilities Authority, Seton Hall
University Project Revenue Bonds, 1991 Series, Project D:
500,000 6.875%, 7/01/10 7/01 at 102 Baa 528,970
2,500,000 7.000%, 7/01/21 7/01 at 102 Baa 2,607,250
7,000,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, St. Peter's Medical Center Issue,
Series D, 7.250%, 7/01/13 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 7,378,070
300,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Community Medical Center/Kensington
Manor Care Center Issue, Series E, 7.000%, 7/01/20 7/00 at 102 Aaa 323,685
4,875,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, St. Peter's Medical Center Issue, Series E,
6.875%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 5,407,838
New Jersey Health Care Facilities Financing Authority,
Refunding Revenue Bonds, Atlantic City Medical
Center Issue, Series C:
3,600,000 6.800%, 7/01/05 7/02 at 102 A 3,876,192
2,800,000 6.800%, 7/01/11 7/02 at 102 A 2,978,248
7,500,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, JFK Health Systems, Obligated Group
Issue, Series 1991, 6.600%, 7/01/08 7/01 at 102 Aaa 8,072,025
9,300,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Centrastate Medical Center Issue,
Series A, 6.625%, 7/01/11 7/01 at 102 Aaa 9,955,557
3,000,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Beth Israel Hospital Association of
Passaic Issue, Series B, 6.250%, 7/01/14 7/99 at 100 Aaa 3,042,120
2,070,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Robert Wood Johnson University
Hospital, Series B, 6.625%, 7/01/16 7/01 at 102 Aaa 2,193,434
4,350,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Mercer Medical Center Issue, Series
1991, 6.500%, 7/01/10 7/01 at 102 Aaa 4,583,378
5,025,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Pascack Valley Hospital Association
Issue, Series 1991, 6.700%, 7/01/11 7/01 at 102 BBB+ 5,109,872
New Jersey Health Care Facilities Financing Authority,
Refunding Revenue Bonds, Barnert Hospital (FHA
Insured Mortgage), Series B:
90,000 6.750%, 8/01/11 (Pre-refunded to 2/01/01) 2/01 at 100 AAA 98,931
995,000 6.750%, 8/01/11 2/01 at 102 AAA 1,045,825
355,000 6.800%, 8/01/19 (Pre-refunded to 2/01/01) 2/01 at 102 AAA 390,951
2,845,000 6.800%, 8/01/19 2/01 at 102 AAA 2,994,846
4,400,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Palisades Medical Center, Obligated
Group Issue, Series 1992, 7.500%, 7/01/06 7/02 at 102 Ba1 4,437,796
3,535,000 New Jersey Health Care Facilities, Financing Authority,
Revenue Bonds, Deborah Heart and Lung Center Issue,
Series of 1993, 6.200%, 7/01/13 7/03 at 102 Baa1 3,509,301
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 9,300,000 New Jersey Highway Authority (Garden State Parkway),
Senior Parkway Revenue Bonds, 1989 Series,
7.250%, 1/01/16 (Pre-refunded to 1/01/99) 1/99 at 102 Aaa $ 10,088,547
New Jersey Highway Authority (Garden State
Parkway), Senior Parkway Revenue Refunding
Bonds, 1992 Series:
3,500,000 6.250%, 1/01/14 1/02 at 102 AA- 3,638,950
1,000,000 5.750%, 1/01/19 1/02 at 100 AA- 996,870
12,000,000 New Jersey Housing and Mortgage Finance Agency,
Multi-Family Housing Revenue Refunding Bonds
(Presidential Plaza at Newport Project-FHA Insured
Mortgages), 1991 Series 1, 7.000%, 5/01/30 11/01 at 102 AAA 12,507,720
1,500,000 New Jersey Housing and Mortgage Finance Agency,
Multi-Family Housing Revenue Bonds, 1995 Series A,
6.000%, 11/01/14 5/05 at 102 Aaa 1,506,975
New Jersey Housing and Mortgage Finance Agency,
Section 8 Bonds, 1991 Series A:
3,000,000 6.800%, 11/01/05 11/02 at 102 AA+ 3,205,740
2,500,000 6.900%, 11/01/07 11/01 at 103 AA+ 2,658,975
4,700,000 6.950%, 11/01/08 11/01 at 103 AA+ 4,984,397
1,000,000 7.100%, 11/01/11 11/01 at 103 AA+ 1,057,760
3,255,000 New Jersey Housing and Mortgage Finance Agency,
Home Buyer Revenue Bonds, 1989 Series D,
7.600%, 10/01/09 (Alternative Minimum Tax) 10/99 at 102 Aaa 3,387,641
9,650,000 New Jersey Housing and Mortgage Finance Agency,
Housing Revenue Bonds, 1992 Series A,
6.950%, 11/01/13 5/02 at 102 A+ 10,203,428
5,500,000 New Jersey Housing and Mortgage Finance Agency,
Home Buyer Revenue Bonds, 1990 Series F-2,
6.300%, 4/01/25 (Alternative Minimum Tax) 10/00 at 102 Aaa 5,510,560
3,250,000 New Jersey Housing and Mortgage Finance Agency,
Housing Revenue Refunding Bonds, 1992 Series One,
6.700%, 11/01/28 11/02 at 102 A+ 3,349,970
2,605,000 New Jersey Housing and Mortgage Finance Agency,
Revenue Bonds (Home Buyer), 1995 Series O,
6.350%, 10/01/27 (Alternative Minimum Tax) (DD) 10/05 at 101 1/2 Aaa 2,623,417
2,445,000 New Jersey Sports and Exposition Authority, State
Contract Bonds, 1992 Series A, 6.500%, 3/01/19 3/02 at 102 Aa 2,554,952
2,575,000 New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, 1995 Series B,
6.500%, 6/15/11 No Opt. Call Aaa 2,836,620
5,000,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991 A (Refunding Bonds), 6.900%, 1/01/14 7/96 at 100 Baa1 5,003,250
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991 C:
9,000,000 6.500%, 1/01/08 No Opt. Call Aaa 9,868,680
1,675,000 6.500%, 1/01/16 No Opt. Call Baa1 1,795,600
3,000,000 New Jersey Wastewater Treatment Trust, Wastewater
Treatment Insured Bonds, Series 1988 A,
7.375%, 5/15/08 5/98 at 102 Aaa 3,212,280
2,250,000 New Jersey Water Supply Authority, Water System Revenue
Bonds, Series 1988 (Delaware and Raritan System),
7.875%, 11/01/13 (Alternative Minimum Tax) 11/98 at 102 A+ 2,424,128
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
State of New Jersey, General Obligation Bonds
(Various Bonds):
$ 8,200,000 6.750%, 9/15/07 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ $ 9,027,134
850,000 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 937,678
5,000,000 State of New Jersey, General Obligation Bonds, Various
Series, 6.375%, 8/01/11 8/02 at 101 1/2 Aa1 5,273,450
State of New Jersey, General Obligation Bonds, Series D:
5,000,000 5.750%, 2/15/06 No Opt. Call Aa1 5,231,000
5,000,000 6.000%, 2/15/11 No Opt. Call Aa1 5,266,700
2,500,000 The Atlantic County Utilities Authority (New Jersey),
Sewer Revenue Refunding Bonds, 1987 Series,
5.000%, 1/15/13 1/97 at 100 Aaa 2,312,775
1,500,000 The Board of Education of the Township of Bedminster,
Certificates of Participation, In the County of Somerset,
New Jersey, 7.125%, 9/01/10 3/01 at 102 A1 1,649,475
3,000,000 County of Bergen, New Jersey, General Improvement
Bonds, 5.500%, 8/15/07 No Opt. Call Aaa 3,073,860
7,000,000 The Bergen County Utilities Authority, 1992 Water
Pollution Control System Revenue Bonds, Series A,
6.500%, 12/15/12 6/02 at 102 Aaa 7,416,290
3,700,000 Pollution Control Financing Authority of Camden
County (Camden County, New Jersey), Solid Waste
Disposal and Resource Recovery System Revenue
Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax) 12/01 at 102 BBB+ 3,723,458
3,500,000 Pollution Control Financing Authority of Camden
County (Camden County, New Jersey), Solid Waste
Disposal and Resource Recovery System Revenue
Bonds, Series 1991A, 7.500%, 12/01/10
(Alternative Minimum Tax) 12/01 at 102 BBB+ 3,522,190
Cape May County Municipal Utilities Authority, Sewer
Revenue Refunding Bonds, Series 1992-A:
2,000,000 6.000%, 1/01/11 1/03 at 102 Aaa 2,052,860
5,600,000 5.750%, 1/01/16 1/03 at 102 Aaa 5,583,704
1,000,000 The Board of Education of the Town of Dover, in the
County of Morris, New Jersey, as Lessee, Certificates of
Participation, 6.600%, 6/01/11 12/01 at 100 Aaa 1,065,630
1,265,000 Township of East Brunswick, in the County of Middlesex,
New Jersey, General Obligation Refunding Bonds,
Series 1993, 5.125%, 4/01/13 4/03 at 101 Aa 1,195,514
7,800,000 County of Essex, New Jersey, Fiscal Year Adjustment
Bonds, Series 1991, 6.500%, 12/01/11 12/01 at 101 Aaa 8,180,016
The Evesham Municipal Utilities Authority (Burlington
County, New Jersey), Revenue Bonds, 1995 Series A:
620,000 5.650%, 7/01/15 7/05 at 100 Aaa 614,649
1,010,000 5.700%, 7/01/20 7/05 at 100 Aaa 997,638
4,095,000 The Board of Education of the Township of Evesham, in
the County of Burlington New Jersey, Certificates of
Participation, 6.875%, 9/01/11 9/01 at 102 Aaa 4,435,008
2,320,000 City of Hoboken, Fiscal Year Adjustment General
Obligation Bonds, Series 1991, 8.900%, 8/01/06 No Opt. Call Aaa 3,011,754
5,250,000 Township of Howell, in the County of Monmouth, New
Jersey, General Obligation Refunding Bonds, Series
1991, 6.800%, 1/01/14 1/02 at 102 Aaa 5,647,110
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,790,000 The Hudson County Improvement Authority,
Multi-Family Housing Revenue Bonds, Series 1992 A
(Conduit Financing-Observer Park Project),
6.900%, 6/01/22 (Alternative Minimum Tax) 6/04 at 100 AAA $ 3,937,090
3,675,000 The City of New Jersey (Hudson County, New Jersey),
Fiscal Year Adjustment Bonds, Series B 1991,
8.400%, 5/15/06 No Opt. Call Aaa 4,575,963
8,200,000 The City of Jersey City (Hudson County, New Jersey),
Fiscal Year Adjustment Bonds, Series A 1991,
6.600%, 5/15/11 5/01 at 102 Aaa 8,763,094
1,585,000 Housing Finance Corporation of the City of Long Branch,
Long Branch, New Jersey, Section 8 Assisted Housing
Revenue Bonds, Washington Manor Associates, Ltd.,
1980 Elderly Project, 10.000%, 10/01/11 10/96 at 101 N/R 1,624,165
2,535,000 The Board of Education of the Township of Mansfield, in
the County of Warren, New Jersey, Certificates of
Participation, 5.900%, 3/01/15 3/06 at 102 Aaa 2,567,854
The State of New Jersey, as Lessee, and The Mercer
County Improvement Authority, as Lessor, Relating to
the Richard J. Hughes Justice Complex:
3,000,000 6.050%, 1/01/09 No Opt. Call Aa 2,999,820
1,585,000 6.050%, 1/01/13 No Opt. Call Aa 1,564,664
1,000,000 6.050%, 1/01/14 No Opt. Call Aa 983,580
1,720,000 6.050%, 1/01/16 No Opt. Call Aa 1,673,027
2,000,000 6.050%, 1/01/17 No Opt. Call Aa 1,943,980
950,000 The Mercer County Improvement Authority, Mercer
County, New Jersey, Revenue Bonds (County Courthouse
Project, Series 1991), 6.600%, 11/01/14 (Pre-refunded
to 11/01/00) 11/00 at 102 Aa1 1,034,227
8,000,000 Pollution Control Financing, Authority of Middlesex
County (New Jersey), Pollution Control Revenue
Refunding Bonds, Series 1992 (Amerada Hess
Corporation Project), 6.875%, 12/01/22 12/02 at 102 N/R 8,237,680
3,545,000 The Monmouth County Improvement Authority
(Monmouth County, New Jersey) Government Loan
Revenue Bonds, Series 1995, 5.500%, 7/15/15 7/06 at 102 Aaa 3,445,102
3,500,000 The Monmouth County Improvement Authority
(Monmouth County, New Jersey), Sewage Facilities
Revenue Refunding Bonds, Series 1991,
6.750%, 2/01/13 (Pre-refunded to 2/01/01) 2/01 at 102 Aaa 3,847,305
2,000,000 Town of Morristown, In the County of Morris, New Jersey,
General Obligation Refunding Bonds, Series 1995,
6.500%, 8/01/19 8/05 at 102 Aaa 2,119,100
1,200,000 County of Passaic, New Jersey, General Improvement
Bonds, 6.700%, 9/01/10 (Pre-refunded to 9/01/99) 9/99 at 102 N/R 1,296,732
4,000,000 Passaic Valley Sewerage Commissioners (State of New
Jersey), Sewer System Bonds, Series D, 5.800%, 12/01/18 12/02 at 102 Aaa 3,987,360
1,180,000 The Raritan Township Municipal Utilities Authority
(Hunterdon County, New Jersey), (Secured by a Service
Contract with the Township of Raritan), Revenue Bonds,
Series 1992 (Bank Qualified), 6.450%, 5/01/12 5/02 at 102 A+ 1,232,840
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Rutgers, The State University (The State University of
New Jersey), General Obligation Refunding Bonds,
1992 Series A:
$ 2,900,000 6.500%, 5/01/13 5/02 at 102 AA $ 3,056,977
1,725,000 6.500%, 5/01/18 5/02 at 102 AA 1,807,231
6,250,000 The Pollution Control Financing Authority of Salem
County (New Jersey), Waste Disposal Revenue Bonds
(E. I. du Pont de Nemours and Company-Chambers
Works Project), 1991 Series A, 6.500%, 11/15/21
(Alternative Minimum Tax) 11/01 at 102 AA 6,426,125
1,465,000 The South Toms River Sewerage Authority (Ocean
County, New Jersey), Sewer Refunding Revenue Bonds
(Series 1992), (Bank-Qualified), 7.400%, 11/01/05 11/02 at 102 N/R 1,536,682
10,000,000 The Union County Utilities Authority (New Jersey),
Solid Waste System Revenue Bonds, Series D,
6.850%, 6/15/14 (Alternative Minimum Tax) 6/02 at 102 Aaa 10,517,400
2,450,000 University of Medicine and Dentistry of New Jersey
Bonds, Series E, 6.500%, 12/01/18 (Pre-refunded
to 12/01/01) 12/01 at 102 AA 2,690,198
5,350,000 Township of West Deptford, County of Gloucester, New
Jersey, General Obligation Bonds, Series of 1996,
5.250%, 3/01/14 3/06 at 102 Aaa 5,069,338
2,400,000 The Port Authority of New York and New Jersey
Consolidated Bonds, Sixty-Second Series,
8.000%, 12/01/23 (Alternative Minimum Tax) 8/96 at 102 AA- 2,454,623
4,300,000 The Port Authority of New York and New Jersey, Special
Project Bonds, Series 1R, Delta Air Lines, Inc. Project,
LaGuardia Airport Passenger Terminal, 6.950%, 6/01/08 6/02 at 102 Baa3 4,489,672
4,500,000 The Port Authority of New York and New Jersey
Consolidated Bonds, Eighty-Fourth Series,
6.000%, 1/15/28 (Alternative Minimum Tax) 1/03 at 101 AA- 4,537,215
1,300,000 The Port Authority of New York and New Jersey
Consolidated Bonds, One Hundred Fourth Series,
5.200%, 7/15/21 1/06 at 102 Aaa 1,191,982
6,000,000 Delaware River Port Authority, Revenue Bonds, Series of
1995, 5.500%, 1/01/26 1/06 at 102 Aaa 5,734,800
8,500,000 Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series Y, 7.000%, 7/01/07 No Opt. Call Aaa 9,789,450
6,000,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series P, 7.000%, 7/01/11 (Pre-refunded
to 7/01/01) 7/01 at 102 Aaa 6,731,760
710,000 Puerto Rico Housing Finance Corporation, Single Family
Mortgage Revenue Bonds, Portfolio One, Series C,
6.750%, 10/15/13 10/01 at 102 Aaa 736,810
$397,640,000 Total Investments - (cost $397,668,480) - 98.7% 417,042,380
===============
Other Assets Less Liabilities - 1.3% 5,295,749
Net Assets - 100% $422,338,129
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 50 $224,699,402 54%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 25 77,200,787 18
PORTFOLIO OF A+ A1 8 29,663,377 7
INVESTMENTS: A, A- A, A2, A3 9 23,226,356 6
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 10 33,438,423 8
BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 4,437,796 1
Non-rated Non-rated 7 24,376,239 6
TOTAL 110 $417,042,380 100%
<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).
See accompanying notes to financial statements.
</FN>
</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>
$ 7,100,000 The Delaware River and Bay Authority, Revenue Bonds,
Series 1993, 5.000%, 1/01/17 1/04 at 102 Aaa $ 6,475,413
920,000 Higher Education Assistance Authority (State of New
Jersey), Student Loan Revenue Bonds, 1992 Series A,
NJ Class Loan Program, 6.125%, 7/01/09 (Alternative
Minimum Tax) 7/02 at 102 A+ 927,222
5,440,000 Higher Education Assistance Authority (State of New
Jersey), Student Loan Revenue Bonds, 1993 Series A,
NJ Class Loan Program, 5.300%, 7/01/10 (Alternative
Minimum Tax) 7/03 at 102 A+ 5,159,024
1,145,000 New Jersey Economic Development Authority, Natural
Gas Facilities Revenue Bonds, Series 1991 B (New Jersey
Natural Gas Company Project), 7.250%, 3/01/21
(Alternative Minimum Tax) 3/98 at 102 A 1,201,540
4,000,000 New Jersey Economic Development Authority, Gas
Facilities Revenue Bonds, 1991 Series A (Elizabethtown
Gas Company Project), 6.750%, 10/01/21 (Alternative
Minimum Tax) 10/96 at 102 A3 4,093,960
3,600,000 New Jersey Economic Development Authority, Economic
Development Bonds (Yeshiva K'Tana of Passaic-1992
Project), 8.000%, 9/15/18 No Opt. Call N/R 4,108,068
7,000,000 New Jersey Economic Development Authority, Economic
Development Bonds (Bridgewater Resources Inc. Project),
1994 Series A, 8.375%, 11/01/04 (Alternative
Minimum Tax) No Opt. Call N/R 7,254,380
1,485,000 New Jersey Economic Development Authority, Water
Facilities Refunding Bonds (Elizabeth Water Company
Project-1991 Series A), 6.700%, 8/01/21 (Alternative
Minimum Tax) 8/01 at 102 A 1,534,703
3,100,000 New Jersey Economic Development Authority, Water
Facilities Revenue Refunding Bonds (Hackensack Water
Company Project-1994 Series B), 5.900%, 3/01/24
(Alternative Minimum Tax) 3/04 at 102 Aaa 3,098,016
1,050,000 New Jersey Economic Development Authority, Water
Facilities Revenue Bonds, Series 1995 (Elizabethtown
Water Company Project), 5.600%, 12/01/25 (Alternative
Minimum Tax) 12/05 at 102 Aaa 996,114
3,255,000 New Jersey Economic Development Authority (Morris
Hall/St. Lawrence, Inc. Project), Series 1993 A,
6.150%, 4/01/13 4/03 at 102 A+ 3,289,275
3,485,000 New Jersey Economic Development Authority, Revenue
Bonds (Public Schools Small Project Loan Program),
Series 1993, 5.400%, 8/15/12 8/03 at 102 AAA 3,402,301
2,835,000 New Jersey Economic Development Authority, Economic
Growth Bond, Composite Issue-1992 Second Series H,
5.300%, 12/01/07 (Alternative Minimum Tax) 12/03 at 102 Aa3 2,782,297
1,255,000 New Jersey Economic Development Authority, Economic
Growth Bonds, Richard L Tauber Composite Issue-
1993 Series H-2, 5.000%, 10/01/05 (Alternative
Minimum Tax) 10/03 at 102 AA- 1,280,640
1,350,000 New Jersey Economic Development Authority, Economic
Growth Bonds, Composite Issue-1992 Second Series T,
5.300%, 12/01/07 (Alternative Minimum Tax) 12/03 at 102 Aa3 1,324,904
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 New Jersey Economic Development Authority, Market
Transition Facility Senior Lien Revenue Bonds, Series
1994 A, 7.000%, 7/01/04 No Opt. Call Aaa $ 1,682,835
1,000,000 New Jersey Educational Facilities Authority, Trenton
State College Issue, Revenue Bonds, Series 1976 D,
6.750%, 7/01/08 7/96 at 100 A+ 1,002,060
2,095,000 New Jersey Educational Facilities Authority, Refunding
Revenue Bonds, Trenton State College Issue, Series
1992 E, 6.000%, 7/01/09 7/02 at 102 Aaa 2,161,412
1,500,000 New Jersey Educational Facilities Authority, Higher
Education Facilities Trust Fund Bonds, Series 1995 A,
5.125%, 9/01/02 No Opt. Call Aaa 1,527,690
1,000,000 New Jersey Educational Facilities Authority, Revenue
Bonds, New Jersey Institute of Technology Issue, Series
1994 A, 6.000%, 7/01/24 7/04 at 102 Aaa 1,013,120
2,500,000 New Jersey Educational Facilities Authority, Revenue
Bonds, Rowan College of New Jersey Issue, Series
1996 E, 6.000%, 7/01/21 7/06 at 101 Aaa 2,530,925
1,250,000 New Jersey Health Care Facilities Financing Authority
Revenue Bonds, Community Memorial Hospital
Association Issue, Series C, 8.000%, 7/01/14 7/98 at 102 A 1,340,588
2,000,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Newton Memorial Hospital Issue,
Series A, 7.500%, 7/01/19 7/99 at 102 A- 2,132,300
New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Dover General Hospital and Medical
Center Issue, Series 1994:
1,015,000 7.000%, 7/01/03 No Opt. Call Aaa 1,131,552
800,000 7.000%, 7/01/04 No Opt. Call Aaa 897,512
2,000,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, The Overlook Hospital Association
Issue, Series E, 6.700%, 7/01/13 7/97 at 102 Aaa 2,079,820
2,450,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, The Mountainside Hospital Issue,
Series 1993, 5.500%, 7/01/14 7/03 at 102 Aaa 2,375,177
4,300,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, St. Peter's Medical Center Issue,
Series F, 5.000%, 7/01/11 7/03 at 102 Aaa 4,001,150
970,000 New Jersey Health Care Facilities Financing Authority,
Refunding Revenue Bonds, Wayne General Hospital
Corp. Issue (FHA Insured Mortgage), Series B,
5.750%, 8/01/11 8/04 at 102 AAA 944,673
1,400,000 New Jersey Health Care Facilities, Financing Authority
Revenue Bonds, Allegany Health System-Our Lady of
Lourdes Medical Center Issue, Series 1993,
5.125%, 7/01/13 7/04 at 102 Aaa 1,303,680
2,000,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Monmouth Medical Center Issue,
Series C, 6.250%, 7/01/16 7/04 at 102 Aaa 2,060,720
2,250,000 New Jersey Housing Finance Agency, Special Pledge
Revenue Obligations, 1975 Series One,
9.000%, 11/01/18 11/96 at 104 A1 2,349,113
2,875,000 New Jersey Housing and Mortgage Finance Agency,
Multi-Family Housing Revenue Bonds, 1995 Series A,
6.000%, 11/01/14 5/05 at 102 Aaa 2,888,369
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
New Jersey Housing and Mortgage Finance Agency,
Housing Revenue Bonds, 1992 Series A:
$ 2,365,000 6.700%, 5/01/05 5/02 at 102 A+ $ 2,506,522
8,000,000 6.950%, 11/01/13 5/02 at 102 A+ 8,458,800
4,250,000 New Jersey Housing and Mortgage Finance Agency,
Housing Revenue Refunding Bonds, 1992 Series One,
6.700%, 11/01/28 11/02 at 102 A+ 4,380,730
525,000 New Jersey Housing and Mortgage Finance Agency,
Home Buyer Revenue Bonds, Series 1996-P,
5.650%, 4/01/14 4/06 at 101 1/2 Aaa 510,059
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, 1995 Series A:
750,000 5.500%, 6/15/12 6/05 at 102 Aaa 738,638
5,000,000 5.000%, 6/15/15 6/05 at 102 Aaa 4,594,650
1,100,000 New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, 1995 Series B,
5.500%, 6/15/15 6/05 at 102 Aaa 1,075,294
3,110,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds,
1984 Series, 10.375%, 1/01/03 No Opt. Call AAA 3,725,065
7,700,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991 C, 6.500%, 1/01/16 NoOpt. Call Baa1 8,254,400
1,000,000 New Jersey Turnpike Authority, Turnpike Revenue
Refunding Bonds, Series 1991-C, 6.500%, 1/01/08 No Opt. Call A 1,074,710
State of New Jersey, General Obligation Bonds (Various
Bonds):
3,300,000 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 3,640,395
2,385,000 6.800%, 9/15/11 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 2,631,013
State of New Jersey, General Obligation Bonds, Series D:
5,260,000 5.750%, 2/15/06 No Opt. Call Aa1 5,503,012
4,000,000 5.800%, 2/15/07 No Opt. Call Aa1 4,182,840
2,500,000 6.000%, 2/15/11 No Opt. Call Aa1 2,633,350
1,560,000 6.000%, 2/15/13 No Opt. Call Aa1 1,636,331
500,000 Bayshore Regional Sewerage Authority, Monmouth County,
New Jersey, Subordinated Sewer Revenue Bonds (Series
1993A), 5.400%, 5/01/12 5/03 at 102 Aaa 488,265
1,000,000 The Bergen County Utilities Authority, Bergen County,
New Jersey, 1988 Solid Waste System Revenue Bonds,
Series A, 7.750%, 3/15/13 (Pre-refunded to 3/15/98) 3/98 at 100 Aaa 1,060,350
6,600,000 Pollution Control Financing Authority of Camden County,
(Camden County, New Jersey), Solid Waste Disposal and
Resource Recovery System Revenue Bonds, Series
1991 C, 7.125%, 12/01/01 (Alternative Minimum Tax) No Opt. Call BBB+ 6,700,848
6,500,000 Pollution Control Financing Authority of Camden County,
(Camden County, New Jersey), Solid Waste Disposal and
Resource Recovery System Revenue Bonds, Series 1991 D,
7.250%, 12/01/10 12/01 at 102 BBB+ 6,671,275
1,275,000 Camden County Improvement Authority (Camden County,
New Jersey), County Guaranteed Lease Revenue Bonds,
Series of 1995, 5.625%, 10/01/15 10/05 at 102 Aaa 1,260,108
5,250,000 Cape May County Municipal Utilities Authority, Sewer
Revenue Refunding Bonds, Series 1992-A,
5.750%, 1/01/16 1/03 at 102 Aaa 5,234,723
1,000,000 The Essex County Utilities Authority, (Essex County, New
Jersey), Solid Waste System Revenue Bonds, (Secured
by a County Deficiency Agreement with the County of
Essex), Solid Waste System Revenue Bonds, Tax Exempt
Series 1996A, 5.600%, 4/01/16 4/06 at 102 Aaa 980,590
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 The Evesham Municipal Utilities Authority, (Burlington
County, New Jersey), Revenue Bonds, 1993 Series A,
5.600%, 7/01/15 7/03 at 102 Aaa $ 979,390
250,000 The Board of Education of the Township of Franklin, in
the County of Somerset, New Jersey, Certificates of
Participation, Series 1989, 6.900%, 12/15/00 (Pre-
refunded to 6/15/99) 6/99 at 100 Aaa 268,750
1,000,000 The Jersey City Sewerage Authority, (Hudson County,
New Jersey), Sewer Revenue Refunding Bonds (Series
1993), 6.250%, 1/01/14 No Opt. Call Aaa 1,062,130
2,000,000 Lacey Municipal Utilities Authority (Ocean County, New
Jersey), Water Revenue Bonds (Series 1993A),
5.500%, 12/01/19 12/03 at 102 Aaa 1,919,860
975,000 Housing Finance Corporation of the City of Long Branch,
Long Branch, New Jersey, Section 8 Assisted Housing
Revenue Bonds, Washington Manor Associates, Ltd.,
1980 Elderly Project, 10.000%, 10/01/11 10/96 at 101 N/R 999,092
The State of New Jersey, as Lessee, and The Mercer County
Improvement Authority, as Lessor, Relating to the
Richard J. Hughes Justice Complex:
750,000 6.050%, 1/01/11 7/96 at 100 Aa 749,940
1,000,000 6.050%, 1/01/12 No Opt. Call Aa 987,630
The Mercer County Improvement Authority, Mercer County,
New Jersey, Insured Solid Waste Revenue Bonds (Resource
Recovery Project, Refunding Series A of 1992):
1,000,000 6.400%, 4/01/06 (Alternative Minimum Tax) 4/02 at 102 Aaa 1,002,110
3,500,000 6.700%, 4/01/13 (Alternative Minimum Tax) 4/02 at 102 Aaa 3,553,375
785,000 County of Morris, New Jersey, General Improvement
Bonds of 1993, 5.125%, 5/13/11 No Opt. Call Aaa 756,465
600,000 The Borough of North Arlington, in the County of
Bergen, New Jersey, General and Water Improvement
Bonds of 1994, 4.800%, 2/01/10 No Opt. Call Aaa 551,982
2,275,000 Northwest Bergen County Utilities Authority, Bergen
County, New Jersey, Revenue Refunding Bonds, 1986
Series, (General Obligation Bonds), 7.500%, 7/15/13
(Pre-refunded to 7/15/96) 7/96 at 102 Aaa 2,324,481
4,000,000 County of Passaic, State of New Jersey, General Obligation
Refunding Bonds, Series 1993, 5.125%, 9/01/12 No Opt.Call Aaa 3,825,920
1,040,000 Passaic Valley Sewerage Commissioners (State of New
Jersey), Sewer System Bonds, Series D, 5.750%, 12/01/10 12/02 at 102 Aaa 1,052,054
470,000 The Pinelands Regional Board of Education, in the
Counties of Ocean and Burlington, New Jersey,
Certificates of Participation, 5.500%, 4/01/98 No Opt. Call N/R 476,237
2,510,000 The Board of Education of the Township of Piscataway in
the County of Middlesex, New Jersey, Certificates of
Participation, 1993 Series, 5.375%, 12/15/10 6/03 at 102 Aaa 2,472,777
2,000,000 Rutgers, The State University (The State University of
New Jersey), General Obligation Bonds, 1987 Series A,
8.125%, 5/01/17 (Pre-refunded to 5/01/97) 5/97 at 102 Aaa 2,112,420
440,000 South Jersey Port Corporation, (An Instrumentality of the
State of New Jersey), Marine Terminal Revenue Bonds,
1993 Series, 4.900%, 1/01/08 No Opt. Call A+ 406,314
650,000 The Board of Education of the Southern Gloucester
County, Regional High School District, Gloucester
County, New Jersey, School District Bonds, Series 1993,
5.000%, 10/01/14 No Opt. Call Aaa 599,073
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 The Stony Brook Regional Sewerage Authority, (Princeton,
New Jersey), Revenue Refunding Bonds, 1993 Series B,
5.450%, 12/01/12 No Opt. Call Aa $ 976,120
3,500,000 The Sussex County Municipal Utilities Authority, County
of Sussex, New Jersey, Solid Waste Revenue Bonds,
Series A, 7.875%, 12/01/13 (Pre-refunded to 12/01/98) 12/98 at 102 AAA 3,852,905
7,425,000 The Union County Utilities Authority, (New Jersey), Solid
Waste System Revenue Bonds, 1991 Series A,
7.200%, 6/15/14 (Alternative Minimum Tax) 6/02 at 102 A- 7,591,766
1,500,000 The Wanaque Valley Regional Sewerage Authority
(Passaic County, New Jersey), Sewer Revenue Refunding
Bonds, (1993 Series B), Insured, 5.750%, 9/01/18 No Opt. Call Aaa 1,510,185
1,585,000 The Warren County (Pequest River), Municipal Utilities
Authority, Wastewater Revenue Refunding Bonds, Series
1993, 5.300%, 12/01/11 12/03 at 101 Aaa 1,540,224
2,250,000 Western Monmouth Utilities Authority, (Monmouth
County, New Jersey), Revenue Refunding Bonds, 1995
Series A, 5.600%, 2/01/14 2/05 at 102 Aaa 2,206,733
3,000,000 The Port Authority of New York and New Jersey,
Consolidated Bonds, Ninety Sixth Series,
6.600%, 10/01/23 (Alternative Minimum Tax) 10/04 at 101 Aaa 3,169,020
The Port Authority of New York and New Jersey,
Consolidated Bonds, Ninety-Ninth Series:
1,200,000 5.750%, 11/01/09 (Alternative Minimum Tax) 5/05 at 101 Aaa 1,210,980
2,500,000 5.570%, 11/01/14 (Alternative Minimum Tax) 5/05 at 101 Aaa 2,462,224
1,300,000 Port Authority of New York and New Jersey, Consolidated
Bonds, One Hundred Second Series (Revenue Bonds),
Non-Amt Bonds, 5.625%, 10/15/17 10/02 at 101 Aaa 1,273,037
Delaware River Port Authority, Revenue Bonds, Series of
1995:
1,000,000 5.400%, 1/01/14 1/06 at 102 Aaa 967,570
865,000 5.400%, 1/01/15 1/06 at 102 Aaa 828,410
5,115,000 5.400%, 1/01/16 1/06 at 102 Aaa 4,892,190
15,995,000 5.500%, 1/01/26 1/06 at 102 Aaa 15,288,020
5,000,000 Commonwealth of Puerto Rico, Public Improvement
Bonds of 1995 (General Obligation Bonds),
5.750%, 7/01/24 7/05 at 101 1/2 Aaa 4,975,850
8,160,000 Puerto Rico Public Buildings Authority, Public Education
and Health Facilities Refunding Bonds, Series M,
Guaranteed by the Commonwealth of Puerto Rico,
5.750%, 7/01/15 7/03 at 101 1/2 A 7,962,037
3,500,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series R, 6.250%, 7/01/17 7/02 at 101 1/2 A- 3,560,514
7,000,000 Puerto Rico Industrial, Medical, Educational, and
Environmental Pollution Control Facilities Financing
Authority, Adjustable Rate Industrial Revenue Bonds,
1983 Series A, (American Home Products Corporation
Project), 5.100%, 12/01/18 12/03 at 103 A2 6,417,950
$252,995,000 Total Investments - (cost $254,113,892) - 98.2% 255,078,256
===============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 100,000 New Jersey Economic Development Authority, Dock
Facility Revenue Refunding Bonds, (Bayonne/IMTT-
Bayonne Project), Series 1993A, Variable Rate Demand
Bonds, 3.400%, 12/01/27+ VMIG-1 $ 100,000
600,000 The Port Authority of New York and New Jersey,
Versatile Structure Obligations, Series 2, Variable Rate
Demand Bonds, 3.500%, 5/01/19+ A-1+ 600,000
$ 700,000 Total Temporary Investments - 0.3% 700,000
===============
Other Assets Less Liabilities - 1.5% 3,929,382
Net Assets - 100% $259,707,638
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 55 $126,896,356 50%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 28,328,472 11
PORTFOLIO OF A+ A1 9 28,479,060 11
INVESTMENTS A, A- A, A2, A3 10 36,910,068 14
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 3 21,626,523 9
TEMPORARY Non-rated Non-rated 4 12,837,777 5
INVESTMENTS):
TOTAL 93 $255,078,256 100%
<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.
+ 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.
</FN>
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 6,000,000 Commonwealth of Pennsylvania General Obligation
Bonds, First Series of 1992, 6.375%, 9/15/11 3/02 at 101 1/2 AA- $ 6,294,240
4,970,000 Pennsylvania Higher Education Assistance Agency,
Student Loan Adjustable Rate Tender Revenue
Refunding Bonds, 1985 Series A, 6.800%, 12/01/00 No Opt. Call Aaa 5,308,755
4,000,000 Pennsylvania Higher Education Assistance Agency
Student Loan Revenue Bonds, Fixed Rate Bonds, 1991
Series C, 7.150%, 9/01/21 (Alternative Minimum Tax) 9/01 at 102 Aaa 4,196,880
3,000,000 Pennsylvania Higher Education Assistance Agency
Student Loan Revenue Bonds, Fixed Rate Bonds, 1992
Series C, 6.400%, 3/01/22 (Alternative Minimum Tax) 9/02 at 102 Aaa 3,002,490
2,000,000 Pennsylvania Higher Educational Facilities Authority
(Commonwealth of Pennsylvania), Lycoming College
Revenue Bonds, Series of 1988, 8.375%, 10/01/18
(Pre-refunded to 10/01/98) 10/98 at 102 N/R 2,208,140
4,250,000 Pennsylvania Higher Educational Facilities Authority
(Commonwealth of Pennsylvania), The Trustees of the
University of Pennsylvania Revenue Bonds, Series A
of 1987, 6.625%, 1/01/17 (Pre-refunded to 1/01/97) 1/97 at 100 Aa 4,312,645
10,580,000 Pennsylvania Higher Educational Facilities Authority,
Revenue Bonds (Thomas Jefferson University-Life
Sciences Building Project), 1989 Series A,
6.000%, 7/01/19 7/99 at 102 Aa 10,618,405
5,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series W, 7.625%, 10/01/10
(Alternative Minimum Tax) 10/99 at 102 AA+ 5,255,750
6,780,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1992-33,
6.900%, 4/01/17 4/02 at 102 AA+ 7,106,186
1,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1992-34B,
7.000%, 4/01/24 (Alternative Minimum Tax) 4/02 at 102 AA+ 1,041,060
2,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1995-46,
6.200%, 10/01/14 (Alternative Minimum Tax) 10/05 at 102 AA+ 2,001,360
1,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1996-48,
6.150%, 4/01/25 (Alternative Minimum Tax) 4/06 at 102 Aa 974,890
5,725,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1996-49,
6.450%, 4/01/25 (Alternative Minimum Tax) 4/06 at 102 AA+ 5,775,953
4,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1996-50B,
6.350%, 10/01/27 (Alternative Minimum Tax) (DD) 4/06 at 102 AA+ 4,002,800
4,500,000 Pennsylvania Turnpike Commission, Pennsylvania Turnpike
Revenue Bonds, Series I of 1986, 7.200%, 12/01/17
(Pre-refunded to 12/01/01) 12/01 at 102 Aaa 5,097,150
1,650,000 Pennsylvania Turnpike Commission, Pennsylvania Turnpike
Revenue Bonds, Series N of 1991, 6.500%, 12/01/13 12/01 at 102 A1 1,721,313
735,000 Pennsylvania Turnpike Commission, Pennsylvania Turnpike
Bonds, Series O of 1992, 5.500%, 12/01/17 12/02 at 102 Aaa 700,756
3,825,000 The Pennsylvania State University Bonds Refunding Series
1992, 6.250%, 3/01/11 3/01 at 102 A 3,950,345
8,000,000 County of Allegheny, Pennsylvania, Airport Revenue
Bonds, Series 1988C (Greater Pittsburgh International
Airport), 8.200%, 1/01/08 (Alternative Minimum Tax) 1/98 at 102 Aaa 8,537,120
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 5,785,000 County of Allegheny, Pennsylvania Airport Revenue
Bonds, Series 1988D (Greater Pittsburgh International
Airport), 7.750%, 1/01/19 (Alternative Minimum Tax) 1/98 at 102 Aaa $ 6,028,317
2,500,000 County of Allegheny, Pennsylvania Airport Revenue
Bonds, Series 1992A and 1992B (Greater Pittsburgh
International Airport), 6.625%, 1/01/22 (Alternative
Minimum Tax) 1/02 at 102 Aaa 2,601,750
6,300,000 Allegheny County Hospital Development Authority
(Allegheny County, Pennsylvania) Hospital Revenue
Bonds, Series 1991 A (St. Margaret Memorial Hospital),
7.125%, 10/01/21 10/01 at 100 A- 6,506,010
3,180,000 Allegheny County Higher Education Building Authority
(Commonwealth of Pennsylvania), University Revenue
Bonds (Duquesne University Project), Series A of 1996,
5.000%, 3/01/21 3/06 at 102 Aaa 2,812,074
14,180,000 Allegheny County Residential Finance Authority, Single
Family Mortgage Revenue Bonds, 1994 Series Y,
0.000%, 5/01/27 (Alternative Minimum Tax) No Opt. Call Aaa 1,624,461
395,000 Redevelopment Authority of the City of Altoona (Altoona,
Pennsylvania)Home Improvement Loan Revenue Bonds,
Series of 1991 (Cities of Altoona and Meadville Program)
(FHA Title I Insured Loans), 7.150%, 12/01/09
(Alternative Minimum Tax) 12/01 at 102 A 418,238
5,000,000 Beaver County Industrial Development Authority
(Pennsylvania), Pollution Control Revenue Refunding
Bonds, 1989 Series A (Ohio Edison Company Beaver
Valley Project), 7.750%, 9/01/24 9/99 at 102 BBB- 5,269,150
1,355,000 Bensalem Township School District, Bucks County,
Pennsylvania General Obligation Bonds, Series of 1996,
5.850%, 7/15/12 (WI) 7/06 at 100 Aaa 1,371,680
1,800,000 Berks County Municipal Authority (Commonwealth of
Pennsylvania), Higher Education Revenue Bonds, Series
of 1985 (Pennsylvania Higher Education Pooled
Financing Program), The Trustees of the University of
Pennsylvania Project, 6.700%, 9/01/07 (Pre-refunded
to 9/01/97) 9/97 at 100 AAA 1,859,814
2,180,000 Redevelopment Authority of the County of Berks
(Pennsylvania), Senior Single Family Mortgage Revenue
Bonds, 1986 Series A, 8.000%, 12/01/17 (Alternative
Minimum Tax) No Opt. Call A+ 2,302,581
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Water Revenue Bonds, Series of 1992:
3,045,000 6.250%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 3,263,174
4,000,000 6.250%, 11/15/21 (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 4,286,600
8,250,000 Blair County Hospital Authority, Hospital First Mortgage
Revenue Bonds, Series of 1989 (Mercy Hospital,
Sublessee), 8.125%, 2/01/14 2/99 at 102 BBB+ 8,734,440
5,000,000 Butler County Hospital Authority (Butler County,
Pennsylvania) Hospital Revenue Bonds, Series 1991 A
(North Hills Passavant Hospital), 7.000%, 6/01/22 6/01 at 102 Aaa 5,385,900
3,300,000 Chester County Hospital Authority Hospital Revenue
Bonds, Series of 1986 (Paoli Memorial Hospital),
7.625%, 10/01/13 (Pre-refunded to 10/01/96) 10/96 at 102 N/R 3,398,736
4,500,000 Delaware County Authority (Commonwealth of
Pennsylvania) University Revenue Bonds, Series of 1991
(Villanova University), 6.900%, 8/01/16 8/01 at 100 Aaa 4,816,305
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,750,000 Delaware County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds, 1991
Series A (Philadelphia Electric Company Project),
7.375%, 4/01/21 4/01 at 102 Baa1 $ 3,973,763
3,400,000 Erie County Hospital Authority, Hospital Revenue Bonds
(Hamot Medical Center), 1991 Series A, 7.100%, 2/15/10 2/01 at 102 Aaa 3,713,956
4,390,000 Fairview Township Authority, York County, Pennsylvania
Guaranteed Sewer Revenue Bonds Series of 1991
(Guaranteed by the Township of Fairview, York County,
Pennsylvania), 6.700%, 11/01/21 11/01 at 100 Aaa 4,650,327
2,875,000 Franklin County Industrial Development Authority
Hospital Revenue Refunding Bonds (The Chambersburg
Hospital), Series of 1991, 6.700%, 7/01/08 7/99 at 102 Aaa 3,059,086
400,000 Greater Lebanon Refuse Authority, Lebanon County,
Pennsylvania Solid Waste Revenue Bonds, Series of 1992,
7.000%, 11/15/04 11/02 at 100 A- 422,208
2,000,000 Hampton Township School District (Allegheny County,
Pennsylvania) General Obligation Bonds, Series of 1995,
6.750%, 11/15/21 (Pre-refunded to 11/15/04) 11/04 at 100 Aaa 2,236,360
2,250,000 Indiana County Industrial Development Authority
Pollution Control Refunding Revenue Bonds
(Pennsylvania Electric Company), Series 1995,
5.350%, 11/01/10 No Opt. Call Aaa 2,208,983
3,400,000 Lehigh County General Purpose Authority College
Revenue Bonds, Series of 1992 (Allentown College of
St. Francis de Sales Project), 6.750%, 12/15/12 6/02 at 100 AAA 3,579,146
4,000,000 Lehigh County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds, 1995
Series A (Pennsylvania Power &Light Company
Project), 6.150%, 8/01/29 8/05 at 102 Aaa 4,068,880
4,000,000 Lower Pottsgrove Township Authority Montgomery
County, Pennsylvania, Guaranteed Sewer Revenue
Bonds-Series of 1991 (Guaranteed by the Township of
Lower Pottsgrove), 6.700%, 11/01/16 (Pre-refunded
to 11/01/99) 11/99 at 100 Aaa 4,267,960
3,000,000 Luzerne County Industrial Development Authority, Exempt
Facilities Revenue Refunding Bonds, 1992 Series A
(Pennsylvania Gas and Water Company Project),
7.200%, 10/01/17 (Alternative Minimum Tax) 10/02 at 102 Baa1 3,165,060
3,550,000 Luzerne County Industrial Development Authority, Exempt
Facilities Revenue Refunding Bonds, 1992 Series B
(Pennsylvania Gas and Water Company Project),
7.125%, 12/01/22 (Alternative Minimum Tax) 12/02 at 102 Baa1 3,707,869
5,000,000 Luzerne County Industrial Development Authority Exempt
Facilities Revenue Refunding Bonds, 1994 Series A
(Pennsylvania Gas and Water Company Project),
7.000%, 12/01/17 (Alternative Minimum Tax) 12/04 at 102 Aaa 5,472,700
3,130,000 McKean County Solid Waste Authority (McKean County,
Pennsylvania) Guaranteed Solid Waste Revenue Bonds,
Series of 1992, 6.650%, 1/0/12 1/02 at 100 Aaa 3,283,151
3,225,000 Montgomery County Higher Education and Health
Authority Mortgage Revenue Bonds, Series of 1996,
(Waverly Heights Project), 6.375%, 1/01/26 1/06 at 101 BBB 3,084,938
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 5,500,000 Montgomery County Industrial Development Authority
(Pennsylvania) Resource Recovery Revenue Bonds
(Montgomery County Project), Series 1989,
7.500%, 1/01/12 1/99 at 100 AA $ 5,847,325
1,000,000 Philadelphia Authority for Industrial Development
Convertible Project Revenue Bonds (PGH Development
Corporation), Series of 1989, 7.000%, 7/01/17
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,087,840
4,885,000 Philadelphia Authority for Industrial Development
Convertible Project Revenue Bonds (PGH/CHDC
Parking Facilities), Series of 1989, 7.125%, 7/01/17
(Pre-refunded to 7/01/99) 7/99 at 102 AA 5,325,334
1,250,000 Philadelphia Authority for Industrial Development
Revenue Bonds, Series of 1992 (National Board of
Medical Examiners Project), 6.750%, 5/01/12 5/02 at 102 A+ 1,341,225
3,345,000 City of Philadelphia, Pennsylvania, Gas Works Revenue
Bonds, Eleventh Series A, 7.875%, 7/01/17
(Pre-refunded to 7/01/97) 7/97 at 102 Aaa 3,546,168
4,270,000 City of Philadelphia, Pennsylvania Gas Works Revenue
Bonds, Thirteenth Series, 7.700%, 6/15/21
(Pre-refunded to 6/15/01) 6/01 at 102 Aaa 4,893,078
8,530,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia Refunding Revenue Bonds, Saint Agnes
Medical Center Project (FHAInsured Mortgage),
Series 1991, 7.250%, 8/15/31 (Pre-refunded to 8/15/01) 8/01 at 102 Aa 9,597,274
3,250,000 The School District of Philadelphia, Pennsylvania General
Obligation Bonds, Series B of 1991, 7.000%, 7/01/05
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 3,591,348
850,000 The School District of Philadelphia, Pennsylvania General
Obligation Bonds, Series A of 1992, 6.500%, 5/15/05
(Pre-refunded to 5/15/02) 5/02 at 100 3/4 Aaa 927,359
10,625,000 City of Philadelphia, Pennsylvania, Water and Sewer
Revenue Bonds, Sixteenth Series, 7.000%, 8/01/18
(Pre-refunded to 8/01/01) 8/01 at 100 AAA 11,706,944
1,410,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia Hospital Revenue Bonds, The Children's
Hospital of Philadelphia Project, Series A of 1988,
7.000%, 7/01/15 (Pre-refunded to 7/01/97) 7/97 at 100 Aaa 1,455,515
8,800,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia Hospital Revenue Bonds, Series of 1991
(Presbyterian Medical Center of Philadelphia),
7.250%, 12/01/21 (Pre-refunded to 12/01/01) 12/01 at 102 A- 9,853,712
3,520,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia Hospital Revenue Bonds, Series of 1991
(Magee Rehabilitation Hospital Project),
7.000%, 12/01/10 12/01 at 102 Aaa 3,828,282
4,100,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia Hospital Revenue Bonds, (The Children's
Hospital of Philadelphia Project), Series A of 1992,
6.500%, 2/15/21 (Pre-refunded to 2/15/02) 2/02 at 102 Aaa 4,499,627
630,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia Hospital Revenue Bonds (Children's
Seashore House), Series 1992A, 7.000%, 8/15/03 8/02 at 102 A- 682,366
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
The Philadelphia Municipal Authority, Philadelphia,
Pennsylvania, Justice Lease Revenue Bonds, 1991 Series B:
$ 1,500,000 7.100%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 102 Aaa $ 1,690,740
9,900,000 7.125%, 11/15/18 (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 11,170,566
2,865,000 Urban Redevelopment Authority of Pittsburgh Mortgage
Revenue Bonds, 1991 Series G, 7.050%, 4/01/23
(Alternative Minimum Tax) 10/01 at 102 A1 2,956,308
1,000,000 Urban Redevelopment Authority of Pittsburgh,
Redevelopment Mortgage Revenue Bonds, 1992 Series C,
7.125%, 8/01/13 (Alternative Minimum Tax) 8/02 at 102 A 1,035,090
3,000,000 The Pittsburgh Water and Sewer Authority, Water and
Sewer System Revenue Refunding Bonds, Series of 1986,
7.625%, 9/01/04 No Opt. Call Aaa 3,428,490
3,250,000 The Pittsburgh Water and Sewer Authority Water and
Sewer System Revenue Refunding Bonds, Series A of
1991, 6.500%, 9/01/14 (Pre-refunded to 9/01/01) 9/01 at 102 Aaa 3,562,878
1,990,000 The Pittsburgh Water and Sewer Authority Water and
Sewer System Revenue Refunding Bonds, Series A of
1993, 4.750%, 9/01/16 9/03 at 102 Aaa 1,702,087
2,500,000 Saint Mary Hospital Authority Hospital Revenue Bonds,
Series 1992A (Franciscan Health System/Saint Mary
Hospital of Langhorne, Inc.), 6.500%, 7/01/12 7/02 at 102 Aaa 2,623,050
5,500,000 Health Care Facilities Authority of Sayre, Variable Rate
Hospital Revenue Bonds, (VHA of Pennsylvania, Inc.
Capital Asset Financing Program), Series of 1985E
(Guthrie Healthcare System Conversion),
7.200%, 12/01/20 12/01 at 103 Aaa 6,078,820
3,730,000 Scranton-Lackawanna Health and Welfare Authority, City
of Scranton, Lackawanna County, Pennsylvania, University
Revenue Bonds, Series of 1990 (University of Scranton
Project), 1990 Series A, 7.400%, 6/15/10 (Pre-refunded
to 6/15/00) 6/00 at 102 Aaa 4,134,146
2,900,000 Scranton-Lackawanna Health and Welfare Authority, City
of Scranton, Lackawanna County, Pennsylvania, University
Revenue Bonds, Series of 1992 (University of Scranton
Project), 1992 Series A, 6.500%, 3/01/13 3/02 at 102 A- 3,028,586
8,475,000 Somerset County General Authority, Commonwealth of
Pennsylvania, Commonwealth Lease Revenue Bonds,
Series of 1991, 7.000%, 10/15/13 (Pre-refunded to
10/15/01) 10/01 at 100 Aaa 9,368,435
5,000,000 State Public School Building Authority (Commonwealth of
Pennsylvania) School Revenue Bonds (Hazelton Area
School District Project), Series J of 1991,
6.500%, 3/01/08 3/01 at 100 Aaa 5,277,900
2,545,000 Temple University of the Commonwealth System of
Higher Education Hospital Revenue Bonds, (FHA
Insured Mortgage), Series A, 7.250%, 8/01/11
(Pre-refunded to 8/01/98) 8/98 at 100 Aaa 2,699,838
3,500,000 Upper Merion Area School District, Montgomery County,
Pennsylvania General Obligation Bonds, Series of 1993,
6.900%, 9/01/16 (Pre-refunded to 9/01/01) 9/01 at 100 Aa 3,838,835
1,725,000 Valley View School District (Lackawanna County,
Pennsylvania) General Obligation Bonds, Series of 1996A,
5.000%, 11/15/21 11/06 at 100 Aaa 1,536,423
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,000,000 Warrington Township Municipal Authority, Bucks County,
Pennsylvania, Water and Sewer Revenue Bonds, Series of
1991, 7.100%, 12/01/21 12/99 at 100 Aaa $ 3,208,080
5,000,000 West Chester Area School District, Chester and Delaware
Counties, Pennsylvania, General Obligation Bonds,
Series A of 1991, 6.700%, 1/15/11 (Pre-refunded
to 1/15/01) 1/01 at 100 Aa1 5,399,700
5,450,000 The Municipal Authority of the Borough of West View
(Allegheny County, Pennsylvania), Special Obligation
Bonds, Series of 1985A, 9.500%, 11/15/14 No Opt. Call Aaa 7,479,580
5,000,000 County of Westmoreland, Commonwealth of Pennsylvania,
General Obligation Bonds, Series of 1992,
6.700%, 8/01/09 (Pre-refunded to 8/01/01) 8/01 at 100 Aaa 5,442,000
645,000 The General Municipal Authority of the City of Wilkes-
Barre, College Misericordia Revenue Bonds, Refunding
Series A of 1992, 7.750%, 12/01/12 12/00 at 100 N/R 687,377
665,000 The General Municipal Authority of the City of Wilkes-
Barre, College Misericordia Revenue Bonds, Refunding
Series B of 1992, 7.750%, 12/01/12 12/02 at 102 N/R 691,356
$339,260,000 Total Investments - (cost $324,511,231) - 98.1% 348,903,537
===============
Other Assets Less Liabilities - 1.9% 6,919,949
Net Assets - 100% $355,823,486
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 50 $202,372,969 59%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 77,391,757 22
PORTFOLIO OF A+ A1 4 8,321,427 2
INVESTMENTS: A, A- A, A2, A3 8 25,896,555 7
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 6 27,935,220 8
Non-rated Non-rated 4 6,985,609 2
TOTAL 87 $348,903,537 100%
<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).
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 6,500,000 Commonwealth of Pennsylvania, Certificates of
Participation, Series 1993A, 5.250%, 7/01/10 7/03 at 102 Aaa $ 6,229,405
10,000,000 Pennsylvania Higher Education Assistance Agency
Student Loan Revenue Bonds, 1988 Series D,
6.050%, 1/01/19 (Alternative Minimum Tax) 1/03 at 102 Aaa 10,017,100
11,500,000 Pennsylvania Higher Education Assistance Agency
Student Loan Revenue Bonds, 1984 Series A,
4.625%, 12/01/00 No Opt. Call AAA 11,424,790
1,760,000 Pennsylvania Higher Educational Facilities Authority,
College and University Revenue Bonds, 9th Series,
7.625%, 7/01/15 No Opt. Call Aaa 2,053,427
1,840,000 Pennsylvania Higher Educational Facilities Authority, The
RIDC Regional Growth Fund Revenue Refunding Bonds
(Carnegie Mellon University Software Engineering
Institute Facility) Series 1995, 6.000%, 11/01/03 No Opt. Call AA- 1,959,324
1,575,000 Pennsylvania Higher Educational Facilities Authority
(Commonwealth of Pennsylvania), The Trustees of the
University of Pennsylvania Revenue Bonds, Series A of
1987, 6.625%, 1/01/17 (Pre-refunded to 1/01/97) 1/97 at 100 Aa 1,598,216
1,250,000 Pennsylvania Higher Educational (Commonwealth of
Pennsylvania), College Revenue Capital Improvement
and Refunding Bonds Series 1993B, (Allegheny College
Project), 6.000%, 11/01/22 11/03 at 102 BBB+ 1,179,350
4,140,000 Pennsylvania Higher Educational Facilities Authority
(Commonwealth of Pennsylvania), University Revenue
and Refunding Bonds (Duquesne University Project),
Series A of 1993, 5.500%, 9/01/20 9/03 at 102 Aaa 3,961,111
9,700,000 Pennsylvania Higher Educational Facilities Authority,
(Commonwealth of Pennsylvania), The University of
Pennsylvania Health Services Revenue Bonds, Series A
of 1996, 5.750%, 1/01/22 1/06 at 101 Aa 9,490,480
6,365,000 Pennsylvania Higher Educational Facilities Authority,
Revenue Bonds (Thomas Jefferson University-Life Sciences
Building Project), 1989 Series A, 6.000%, 7/01/19 7/99 at 102 Aa 6,388,105
7,000,000 Pennsylvania Higher Educational Facilities Authority,
(Commonwealth of Pennsylvania), Revenue Bonds, State
System of High Education, Series I, 5.700%, 6/15/15 6/03 at 100 Aaa 6,963,740
4,615,000 Pennsylvania Higher Educational Facilities Authority,
(Commonwealth of Pennsylvania), Revenue Bonds,
(Widener University), 1993 Series A, 5.250%, 7/15/11 7/03 at 102 AAA 4,389,003
1,000,000 Pennsylvania Higher Educational Facilities Authority
(Commonwealth of Pennsylvania), Revenue Bonds
(Thomas Jefferson University), 1993 Series A,
5.300%, 11/01/15 11/03 at 102 Aa 941,690
11,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1993-37B,
5.600%, 10/01/25 (Alternative Minimum Tax) 10/03 at 102 AA+ 10,030,130
5,000,000 Pennsylvania Housing Finance Agency, Rental Housing
Refunding Bonds, Issue 1992, 6.400%, 7/01/12 7/02 at 102 Aaa 5,190,000
9,625,000 Pennsylvania Housing Finance Agency, Rental Housing
Refunding Bonds, Issue 1993, 5.800%, 7/01/18 7/03 at 102 Aaa 9,449,055
2,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1993-37A,
5.450%, 10/01/17 10/03 at 102 AA+ 1,843,860
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,120,000 Pennsylvania Housing Finance Agency Single Family
Mortgage Revenue Bonds, Series 1996-47,
6.750%, 10/01/06 (Alternative Minimum Tax) No Opt. Call AA+ $ 1,223,925
3,305,000 Pennsylvania Housing Finance Agency Single Family
Mortgage Revenue Bonds, Series 1996-51,
6.375%, 4/01/28 (Alternative Minimum Tax) (DD) 4/06 at 102 AA+ 3,314,089
Pennsylvania Industrial Development Authority,
Economic Development Revenue Bonds, Series 1994:
2,000,000 7.000%, 7/01/06 No Opt. Call Aaa 2,275,620
1,550,000 7.000%, 1/01/07 No Opt. Call Aaa 1,762,242
1,000,000 7.000%, 7/01/07 No Opt. Call Aaa 1,141,760
7,565,000 Pennsylvania Turnpike Commission, Pennsylvania
Turnpike Revenue Bonds, Series O of 1992,
5.500%, 12/01/17 12/02 at 102 Aaa 7,212,547
8,850,000 The Pennsylvania State University Bonds, Second
Refunding Series 1992, 5.500%, 8/15/16 8/02 at 102 AA- 8,561,844
4,500,000 County of Allegheny, Pennsylvania, Airport Revenue
Bonds, Series 1993A, 1993B and 1993C (Pittsburgh
International Airport), 5.625%, 1/01/23 (Alternative
Minimum Tax) 1/03 at 102 Aaa 4,274,550
750,000 Allegheny County Hospital Development Authority,
(Allegheny County, Pennsylvania), Health and Education
Revenue Bonds, Series 1992 (The Rehabilitation
Institute of Pittsburgh Project), 7.000%, 6/01/22 6/02 at 102 BBB 758,108
3,000,000 Allegheny County Hospital Development Authority
(Pennsylvania), Health Center Revenue Bonds, Series
1992A (Presbyterian University Health System, Inc.
Project), 6.250%, 11/01/23 11/02 at 100 Aaa 3,027,000
8,500,000 Allegheny County Hospital Development Authority
(Allegheny County, Pennsylvania),Hospital Revenue
Bonds, Series A of 1996 (South Hills Health System),
5.875%, 5/01/26 (DD) 5/06 at 102 Aaa 8,323,540
1,625,000 Allegheny County Residential Finance Authority, Single
Family Mortgage Revenue and Refunding Bonds, (GNMA/
FNMA Mortgage-Backed Securities Program), 1993
Series W., 5.625%, 11/01/23 (Alternative Minimum Tax) 11/03 at 102 Aaa 1,484,649
2,500,000 Bensalem Township School District, Bucks County,
Pennsylvania General Obligation Bonds, Series of 1996,
5.875%, 7/15/16 (WI) 7/06 at 100 Aaa 2,501,775
9,065,000 Bethlehem Area School District, Northampton and Lehigh
Counties, Pennsylvania, General Obligation Bonds,
Series of 1993, 5.600%, 9/01/12 3/01 at 100 Aaa 9,030,825
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Water Revenue Bonds, Series A of 1992:
3,785,000 6.100%, 11/15/18 (Pre-refunded to 11/15/02) 11/02 at 100 Aaa 4,049,231
3,100,000 6.100%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 100 Aaa 3,316,411
4,345,000 Bucks County Redevelopment Authority, Pennsylvania,
Second Lien Multi-Family Mortgage Revenue Bonds,
Section 8 Assisted (Country Commons Apartments), Series
1993A, 6.200%, 8/01/14 (Alternative Minimum Tax) 8/03 at 100 A 4,344,696
3,000,000 Bucks County Water and Sewer Authority (Bucks County,
Pennsylvania), Water Revenue Bonds and Sewer Revenue
Bonds, Neshaminy Interceptor Sewer System, Sewer
Revenue Bonds, Series B 1993, 5.400%, 12/01/12 12/03 at 100 Aaa 2,906,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Delaware County Authority (Commonwealth of Pennsylvania),
Hospital Revenue Bonds Series of 1993 (Crozer-Chester
Medical Center):
$ 1,000,000 6.000%, 12/15/09 12/03 at 102 Baa1 $ 987,270
4,085,000 6.000%, 12/15/20 12/03 at 102 Baa1 3,750,071
2,100,000 Delaware County Authority (Commonwealth of
Pennsylvania), Hospital Revenue Bonds, Series of 1994
(Crozer-Chester Medical Center), 5.300%, 12/15/11 12/03 at 102 Aaa 1,985,487
1,975,000 Delaware County Industrial Development Authority,
Water Facilities Revenue Refunding Bonds (Philadelphia
Suburban Water Company Project), Series of 1992,
6.500%, 6/01/10 6/02 at 102 Aaa 2,091,940
1,500,000 Fort Leboeuf School District (Erie County, Pennsylvania),
General Obligation Bonds, Series A of 1993,
5.800%, 1/01/16 1/03 at 100 Aaa 1,499,115
2,000,000 Governor Mifflin School District, Berks County,
Pennsylvania, General Obligation Bonds, Second Series
of 1993, 5.400%, 9/15/12 9/03 at 100 Aaa 1,950,280
3,500,000 Hollidaysburg Sewer Authority Guaranteed Sewer Revenue
Bonds, Series of 1993, 6.100%, 1/01/23 1/03 at 100 Aaa 3,527,020
1,350,000 Lancaster Higher Education Authority City of Lancaster,
Pennsylvania, College Revenue Bonds, Series of 1993
(Franklin and Marshall College Project), 5.700%, 4/15/13 4/03 at 100 Aaa 1,343,372
Lehigh County General Purpose Authority, Hospital
Revenue Bonds, Series 1993 (Saint Luke's Hospital of
Bethlehem, Pennsylvania Project):
1,335,000 5.300%, 11/15/05 No Opt. Call Aaa 1,350,166
500,000 5.300%, 11/15/07 No Opt. Call Aaa 498,070
10,000,000 Lehigh County Industrial Development Authority
Pollution Control Revenue Refunding Bonds, 1992
Series A (Pennsylvania Power &Light Company Project),
6.400%, 11/01/21 11/02 at 102 Aaa 10,334,700
1,500,000 Ligonier Valley School District (Westmoreland County,
Pennsylvania),General Obligation Bonds, Series of 1994,
6.000%, 3/01/23 3/04 at 100 Aaa 1,507,620
1,795,000 Luzerne County Housing Corporation Mortgage Revenue
Refunding Bonds, Series 1993 (FHA Insured Mortgage
Loan-Freeland Apartments Section 8 Assisted Project),
6.125%, 7/15/23 7/03 at 100 Aaa 1,791,392
7,350,000 Luzerne County Industrial Development Authority Exempt
Facilities Revenue Refunding Bonds, 1992 Series A
(Pennsylvania Gas and Water Company Project),
7.200%, 10/01/17 (Alternative Minimum Tax) 10/02 at 102 Baa1 7,754,397
4,500,000 Luzerne County Industrial Development Authority,
Exempt Facilities Revenue Bonds, 1992 Series B
(Pennsylvania Gas and Water Company Project),
7.125%, 12/01/22 (Alternative Minimum Tax) 12/02 at 102 Baa1 4,700,115
2,500,000 Montgomery County Higher Educational and Health
Authority (Pennsylvania), Hospital Revenue Bonds,
Series A of 1993 (Abington Memorial Hospital),
6.000%, 6/01/22 6/03 at 102 Aaa 2,502,425
2,165,000 Montgomery County Industrial Development Authority
Health Facilities Revenue Bonds, Series of 1993 (ECRI
Project), 6.850%, 6/01/13 6/03 at 102 N/R 2,196,544
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,675,000 Montgomery County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds, 1991
Series B (Philadelphia Electric Company Project),
6.700%, 12/01/21 12/01 at102 Aaa $ 3,915,272
2,000,000 New Morgan Industrial Development Authority
(Pennsylvania), Solid Waste Disposal Revenue Bonds
(New Morgan Landfill Company, Inc. Project),Series
1994, 6.500%, 4/01/19 (Alternative Minimum Tax) 4/04 at 102 A 2,032,660
4,500,000 North Penn Water Authority (Montgomery County,
Pennsylvania), Water Revenue Bonds, Series of 1994,
7.000%, 11/01/24 (Pre-refunded to 11/01/04) 11/04 at 101 Aaa 5,135,490
5,500,000 Northumberland County Industrial Development Authority
Exempt Facilities Revenue Bonds, 1993 Series (Roaring
Creek Water Company Project), 6.375%, 10/15/23
(Alternative Minimum Tax) 10/03 at 102 N/R 5,072,650
4,830,000 Philadelphia Authority for Industrial Development
Project Revenue Refunding Bonds (PGHDevelopment
Corporation), Series of 1993, 5.250%, 7/01/17 7/03 at 102 AA 4,399,502
4,000,000 Philadelphia Hospital and Higher Educational Facilities
Authority of Philadelphia, Revenue Refunding Bonds,
Series of 1992 (Philadelphia MR Project), 5.625%, 8/01/04 8/03 at 102 BBB+ 3,919,720
1,750,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia Revenue Bonds, Hospital Revenue Bonds,
Series A of 1993 (Graduate Health System Obligated
Group), 6.250%, 7/01/13 7/03 at 102 Baa1 1,640,450
1,005,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia, Community College Revenue Bonds
(Community College of Philadelphia),Series of 1994,
6.100%, 5/01/10 5/04 at 102 Aaa 1,044,466
2,000,000 The School District of Philadelphia, Pennsylvania, General
Obligation Refunding Bonds, Series A of 1995,
6.250%, 9/01/09 No Opt. Call Aaa 2,140,060
5,500,000 The School District of Philadelphia, Pennsylvania, General
Obligation Refunding Bonds, Series A of 1993,
5.200%, 7/01/03 No Opt. Call Aaa 5,578,265
1,000,000 City of Philadelphia, Pennsylvania, Water and Sewer
Revenue Bonds, Sixteenth Series, 7.500%, 8/01/10
(Pre-refunded to 8/01/01) 8/01 at 102 AAA 1,139,010
3,000,000 City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1995, 6.750%, 8/01/05 No Opt. Call Aaa 3,325,290
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1993:
2,335,000 5.750%, 6/15/13 6/03 at 102 Aaa 2,313,752
2,300,000 5.500%, 6/15/14 6/03 at 102 Aaa 2,229,804
5,500,000 5.000%, 6/15/16 6/03 at 100 Aaa 4,914,800
1,500,000 City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1993, 5.000%, 6/15/19 6/03 at 100 Aaa 1,325,340
1,000,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia Hospital Revenue Bonds, Series of 1993
(Presbyterian Medical Center of Philadelphia),
6.500%, 12/01/11 12/03 at 102 AAA 1,013,470
1,750,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia Hospital Revenue Bonds (The Children's
Hospital of Philadelphia Project), Series A of 1992,
6.500%, 2/15/21 (Pre-refunded to 2/15/02) 2/02 at 102 Aaa 1,920,573
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,690,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia (Pennsylvania ), Hospital Revenue Bonds,
Series of 1993 (Presbyterian Medical Center of
Philadelphia), 6.650%, 12/01/19 12/03 at 102 AAA $ 4,127,081
8,750,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia, Hospital Revenue Bonds, Series of 1993
(Temple University Hospital), 6.625%, 11/15/23 11/03 at 102 A- 8,822,013
5,150,000 The Hospitals and Higher Education Facilities Authority
of Philadelphia, Hospital Revenue Refunding Bonds
(The Children's Hospital of Philadelphia Project),
Series A of 1993, 5.375%, 2/15/14 2/03 at 102 Aa 4,831,627
6,300,000 The Philadelphia Municipal Authority, Philadelphia,
Pennsylvania, Justice Lease Revenue Bonds, 1991
Series B, 7.125%, 11/15/18 (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 7,108,542
2,940,000 The Philadelphia Municipal Authority Philadelphia,
Pennsylvania, Lease Revenue Refunding Bonds, Series A
(Financial Guaranty Insured), 5.625%, 11/15/18 11/03 at 102 Aaa 2,856,034
1,750,000 Pine-Richland School District (Allegheny County,
Pennsylvania) General Obligation Bonds, Series A of
1993, 6.100%, 9/01/18 9/03 at 100 Aaa 1,764,473
1,500,000 The School District of Pittsburgh (Allegheny County,
Pennsylvania), General Obligation Refunding Bonds,
1993 Series D, 5.500%, 9/01/16 9/01 at 101 Aaa 1,440,735
2,460,000 Urban Redevelopment Authority of Pittsburgh Mortgage
Revenue Bonds, 1992 Series C-1, 6.800%, 10/01/25
(Alternative Minimum Tax) 4/03 at 102 A1 2,514,956
1,375,000 Urban Redevelopment Authority of Pittsburgh Mortgage
Revenue Bonds, 1992 Series D, 6.500%, 4/01/17 4/03 at 102 A1 1,400,534
2,370,000 Urban Redevelopment Authority of Pittsburgh, Mortgage
Revenue Bonds, 1993 Series A, 5.650%, 10/01/24 10/03 at 102 A1 2,196,943
750,000 Urban Redevelopment Authority of Pittsburgh, Mortgage
Revenue Bonds, 1994 Series B, 6.950%, 10/01/10
(Alternative Minimum Tax) 4/04 at 102 A1 787,823
3,660,000 Rose Tree Media School District, Delaware County,
Pennsylvania, General Obligation Bonds, Series of 1993,
6.700%, 3/15/12 (Pre-refunded to 9/15/01) 9/01 at 100 Aaa 3,990,277
2,500,000 Schuylkill Valley School District Berks County,
Pennsylvania, General Obligation Bonds, Series of 1993,
5.850%, 4/15/13 4/03 at 100 Aaa 2,516,024
South Fork Municipal Authority (Cambria County,
Pennsylvania), Hospital Revenue Bonds, Series 1993A,
(Lee Hospital Project):
1,850,000 5.500%, 7/01/11 7/03 at 102 A 1,793,963
3,000,000 5.500%, 7/01/23 7/03 at 102 A 2,753,880
3,340,000 State Public School Building Authority (Commonwealth
of Pennsylvania),College Revenue Bonds (Northampton
County Area Community College Project), Series U
of 1993, 5.850%, 3/15/15 3/03 at 100 Aaa 3,371,929
2,345,000 Swissvale Housing Development Corporation (An
Instrumentality of the Allegheny County Housing
Authority), Multifamily Mortgage Revenue Refunding
Bonds, Series 1993C (FHA Insured Mortgage Loan-
Section 8 Assisted Swissvale Project), 6.100%, 7/01/22 7/03 at 100 Aa 2,305,978
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 4,000,000 Wallenpaupack Area School District, Wayne and Pike
Counties, Pennsylvania, General Obligation Bonds,
Series of 1993, 5.500%, 4/01/11 4/01 at 100 Aaa $ 3,965,759
3,000,000 Washington County Hospital Authority (Commonwealth
of Pennsylvania), Hospital Revenue Bonds, Series of 1993
(The Washington Hospital Project), 5.625%, 7/01/23 7/03 at 102 Aaa 2,883,360
1,650,000 The Municipal Authority of the Borough of West View
(Allegheny County, Pennsylvania), Special Obligation
Bonds, Series of 1985A, 9.500%, 11/15/14 No Opt. Call Aaa 2,264,460
1,740,000 The General Municipal Authority of the City of Wilkes-
Barre, College Misericordia Revenue Bonds, Refunding
Series B of 1992, 7.750%, 12/01/12 12/02 at 102 N/R 1,808,973
$330,850,000 Total Investments - (cost $330,708,606) - 99.7% 330,953,770
===============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.9%
$ 800,000 Allegheny County Hospital Development Authority,
(Allegheny County, Pennsylvania), Health Center
Revenue Bonds, Series 1990 A, (Presbyterian-University
Health System, Inc.), Variable Rate Demand Bonds,
3.550%, 3/01/20+ VMIG-1 800,000
3,500,000 Allegheny County Hospital Development Authority,
(Allegheny County, Pennsylvania), Health Center
Revenue Bonds, Series 1990 B, (Presbyterian-University
Health System, Inc.), Variable Rate Demand Bonds,
3.550%, 3/01/20+ VMIG-1 3,500,000
1,100,000 Allegheny County Hospital Development Authority,
(Allegheny County, Pennsylvania), Health Center
Revenue Bonds, Series 1990 D, (Presbyterian-University
Health System, Inc.), Variable Rate Demand Bonds,
3.550%, 3/01/20+ VMIG-1 1,100,000
4,100,000 Washington County Authority, Pennsylvania, Lease
Revenue Bonds (Higher Education Pooled Equipment
Leasing Program), Series 1985-A, Variable Rate Demand
Bonds, 3.550%, 12/15/18+ A-1+ 4,100,000
$ 9,500,000 Total Temporary Investments - 2.9% 9,500,000
===============
Other Assets Less Liabilities - (2.6%) (8,590,901)
Net Assets - 100% $331,862,869
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 58 $213,649,884 65%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 56,888,770 17
PORTFOLIO OF A+ A1 4 6,900,256 2
INVESTMENTS A, A- A, A2, A3 5 19,747,212 6
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 8 24,689,481 7
TEMPORARY Non-rated Non-rated 3 9,078,167 3
INVESTMENTS):
TOTAL 91 $330,953,770 100%
<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 (note1).
(WI) Security purchased on a when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
See accompanying notes to financial statements.
</FN>
</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) $417,042,380 $255,078,256 $348,903,537 $330,953,770
Temporary investments in short-term municipal
securities, at amortized cost (note 1) -- 700,000 -- 9,500,000
Cash 1,187,443 40,410 -- 1,345,376
Receivables:
Interest 8,230,755 5,051,381 6,754,642 5,372,379
Investments sold 480,000 -- 7,337,500 55,000
Other assets 22,302 40,006 32,752 49,276
------------ ------------ ------------ ------------
Total assets 426,962,880 260,910,053 363,028,431 347,275,801
------------ ------------ ------------ ------------
LIABILITIES
Payable for investments purchased 2,639,842 -- 5,388,844 13,954,301
Accrued expenses:
Management fees (note 6) 218,797 135,470 185,078 172,142
Other 179,585 217,492 239,048 219,969
Preferred share dividends payable 62,163 31,217 39,405 58,682
Common share dividends payable 1,524,364 818,236 1,352,570 1,007,838
------------ ------------ ------------ ------------
Total liabilities 4,624,751 1,202,415 7,204,945 15,412,932
------------ ------------ ------------ ------------
Net assets (note 7) $422,338,129 $259,707,638 $355,823,486 $331,862,869
============ ============ ============ ============
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 19,418,644 11,858,499 15,636,648 15,747,463
============ ============ ============ ============
Net asset value per Common share outstanding
(net assets less Preferred shares at
liquidation value, divided by Common
shares outstanding) $ 15.05 $ 14.18 $ 15.72 $ 13.57
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended June 30, 1996
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 26,114,320 $ 15,077,817 $ 22,795,241 $ 19,162,587
------------ ------------ ------------ ------------
Expenses:
Management fees (note 6) 2,706,943 1,683,397 2,289,677 2,131,297
Preferred shares--auction fees 325,000 229,000 275,000 295,250
Preferred shares--dividend disbursing agent fees 30,000 45,000 30,000 45,000
Shareholders' servicing agent fees and expenses 63,363 59,969 82,048 101,567
Custodian's fees and expenses 67,636 69,715 67,365 66,400
Directors'/Trustees' fees and expenses (note 6) 1,809 1,857 1,105 1,131
Professional fees 17,152 21,849 28,112 32,448
Shareholders' reports--printing and mailing
expenses 118,393 68,480 102,508 78,915
Stock exchange listing fees 40,814 21,066 18,947 15,820
Investor relations expense 35,565 22,321 26,309 23,499
Other expenses 25,791 31,371 21,390 17,660
------------ ------------ ------------ ------------
Total expenses 3,432,466 2,254,025 2,942,461 2,808,987
------------ ------------ ------------ ------------
Net investment income 22,681,854 12,823,792 19,852,780 16,353,600
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 3) (380,328) 278,325 955,976 289,626
Net change in unrealized appreciation or
depreciation of investments 373,323 2,009,677 (2,273,958) 5,015,802
------------ ------------ ------------ ------------
Net gain (loss) from investments (7,005) 2,288,002 (1,317,982) 5,305,428
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 22,674,849 $ 15,111,794 $ 18,534,798 $ 21,659,028
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NQJ NNJ
Year ended Year ended Year ended Year ended
6/30/96 6/30/95 6/30/96 6/30/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 22,681,854 $ 18,463,529 $ 12,823,792 $ 8,563,601
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 3) (380,328) 10,875 278,325 (1,062,514)
Net change in unrealized appreciation or
depreciation of investments 373,323 11,002,142 2,009,677 7,717,615
------------- ------------- ------------- -------------
Net increase in net assets from operations 22,674,849 29,476,546 15,111,794 15,218,702
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (18,289,306) (15,185,945) (9,623,156) (6,272,466)
Preferred shareholders (4,447,642) (3,677,673) (3,031,790) (2,235,019)
From accumulated net realized gains from investment
transactions:
Common shareholders -- (245,839) -- (71,491)
Preferred shareholders -- (31,040) -- (16,688)
------------- ------------- ------------- -------------
Decrease in net assets from distributions
to shareholders (22,736,948) (19,140,497) (12,654,946) (8,595,664)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition
of NUJ (note 1) -- 150,384,883 -- --
Net proceeds from shares issued in acquisition
of NJP and NJU (note 1) -- -- -- 137,170,244
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 1,456,662 504,967 -- --
------------- ------------- ------------- -------------
Net increase in net assets derived from capital
share transactions 1,456,662 150,889,850 -- 137,170,244
------------- ------------- ------------- -------------
Net increase (decrease) in net assets 1,394,563 161,225,899 2,456,848 143,793,282
Net assets at beginning of year 420,943,566 259,717,667 257,250,790 113,457,508
------------- ------------- ------------- -------------
Net assets at end of year $ 422,338,129 $ 420,943,566 $ 259,707,638 $ 257,250,790
============= ============= ============= =============
Balance of undistributed net investment income
at end of year $ 705,859 $ 760,953 $ 679,378 $ 510,564
============= ============= ============= =============
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
6/30/96 6/30/95 6/30/96 6/30/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 19,852,780 $ 15,140,351 $ 16,353,600 $ 10,927,863
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 3) 955,976 337,814 289,626 (437,728)
Net change in unrealized appreciation or
depreciation of investments (2,273,958) 10,175,559 5,015,802 11,453,910
------------- ------------- ------------- -------------
Net increase in net assets from operations 18,534,798 25,653,724 21,659,028 21,944,045
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (16,324,381) (12,146,828) (12,306,677) (8,077,846)
Preferred shareholders (3,855,705) (3,068,414) (4,260,276) (2,951,304)
From accumulated net realized gains from investment
transactions:
Common shareholders (473,871) -- -- --
Preferred shareholders (132,928) -- -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions
to shareholders (20,786,885) (15,215,242) (16,566,953) (11,029,150)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition
of NUP (note 1) -- 152,750,727 -- --
Net proceeds from shares issued in acquisition
of NPA and NAP (note 1) -- -- -- 176,762,321
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 2,244,579 923,694 -- 40,956
------------- ------------- ------------- -------------
Net increase in net assets derived from capital share
transactions 2,244,579 153,674,421 -- 176,803,277
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (7,508) 164,112,903 5,092,075 187,718,172
Net assets at beginning of year 355,830,994 191,718,091 326,770,794 139,052,622
------------- ------------- ------------- -------------
Net assets at end of year $ 355,823,486 $ 355,830,994 $ 331,862,869 $ 326,770,794
============= ============= ============= =============
Balance of undistributed net investment income
at end of year $ 504,881 $ 832,187 $ 283,700 $ 497,032
============= ============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At June 30, 1996, 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).
Each Fund invests primarily in a diversified portfolio of municipal
obligations issued by state and local government authorities within a single
state. The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
On January 10, 1995, NQJ acquired all of the net assets of Nuveen New
Jersey Quality Income Municipal Fund, Inc. (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 shares of NUJ outstanding on January 10, 1995.
NUJ's net assets at that date of $150,384,883 included $214,743 of net
unrealized depreciation and $50,000,000 of preferred shares at liquidation
value which were 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 Nuveen New
Jersey Premium Income Municipal Fund 2 (NJP) and Nuveen New Jersey Premium
Income Municipal Fund 3 (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 net unrealized depreciation of $4,881,709
and $1,282,356, respectively, as well as $36,000,000 and $15,600,000 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 Nuveen
Pennsylvania Quality Income Municipal Fund (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 net
unrealized appreciation and $50,000,000 of preferred shares at liquidation
value which were 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 Nuveen
Pennsylvania Premium Income Municipal Fund (NPA) and Nuveen Pennsylvania
Premium Income Municipal Fund 3 (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 net 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, 1996, NQJ, NQP and NPY had outstanding purchase
commitments of $2,639,842, $5,388,844 and $13,954,301, respectively. There
were no such purchase commitments in NNJ.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing to shareholders
all of their tax-exempt net investment income, in addition to any significant
amounts of net realized capital gains and/or market discount realized from
investment transactions. The Funds currently consider significant net realized
capital gains and/or market discount as amounts in excess of $.01 per Common
share. Furthermore, each 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
state personal income and the 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 year ended June
30, 1996, have been designated Exempt Interest Dividends which are entirely
exempt from federal and designated state personal income taxes. Net realized
capital gain and market discount distributions are subject to federal
taxation. However, capital gain distributions are exempt from the Pennsylvania
state personal income and the Philadelphia School District Investment Income
taxes.
<PAGE>
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or or reinvestment is credited to shareholder accounts after
month-end. Net realized capital capital gains and/or market discount from
investment transactions are distributed to shareholders not less frequently
than annually. Furthermore, capital gains are distributed only to the extent
they exceed available capital loss carryovers.
Distributions to shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount are recorded on the ex-dividend
date. The amount and timing of 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 occur and will be classified as either distributions
in excess of net investment income, distributions in excess of net realized
gains and/or distributions in excess of ordinary taxable income from
investment transactions, where applicable.
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, 1996, for each Fund is as follows:
<TABLE>
<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
===== ===== ===== =====
</TABLE>
<PAGE>
<TABLE>
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of 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 year ended June
30, 1996.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<CAPTION>
NQJ NNJ
Year ended Year ended Year ended Year ended
6/30/96 6/30/95 6/30/96 6/30/95
<S> <C> <C> <C> <C>
Common Shares:
Shares issued in acquisition of NUJ (note 1) -- 7,093,734 -- --
Shares issued in acquisition of NJP and NJU (note 1) -- -- -- 6,401,176
Shares issued to shareholders due to reinvestment
of distributions 94,142 33,541 -- --
------ --------- --- ---------
Net increase 94,142 7,127,275 -- 6,401,176
====== ========= === =========
Preferred shares acquired from NUJ (note 1) -- 2,000 -- --
Preferred shares acquired from NJP and NJU (note 1) -- -- -- 2,064
====== ========= === =========
<CAPTION>
NQP NPY
Year ended Year ended Year ended Year ended
6/30/96 6/30/95 6/30/96 6/30/95
<S> <C> <C> <C> <C>
Common Shares:
Shares issued in acquisition of NUP (note 1) -- 6,940,191 -- --
Shares issued in acquisition of NPA and NAP (note 1) -- -- -- 8,799,348
Shares issued to shareholders due to reinvestment
of distributions 134,874 58,618 -- 3,244
------- --------- --- ---------
Net increase 134,874 6,998,809 -- 8,802,592
======= ========= === =========
Preferred shares acquired from NUP (note 1) -- 2,000 -- --
Preferred shares acquired from NPA and NAP (note 1) -- -- -- 2,644
======= ========= === =========
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the year ended June 30,
1996, were as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $79,932,557 $83,602,738 $47,466,026 $73,812,986
Temporary municipal investments 37,500,000 34,700,000 41,165,000 42,300,000
SALES AND MATURITIES
Investments in municipal securities 68,121,862 81,497,753 42,444,254 63,541,134
Temporary municipal investments 40,550,000 36,350,000 46,861,000 39,800,000
=========== =========== =========== ===========
At June 30, 1996, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for
each Fund.
At June 30, 1996, the following Funds had unused capital loss carryovers
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryovers will expire as follows:
<CAPTION>
NQJ NNJ NPY
<S> <C> <C> <C>
Expiration year:
2001 $ -- $ 1,784 $ 1,545
2002 40,744 4,076,151 1,489,452
2003 -- 129,409 669,824
2004 393,987 650,143 40,999
---------- ---------- ----------
Total $ 434,731 $4,857,487 $2,201,820
========== ========== ==========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On July 1, 1996, the Funds declared Common share dividend distributions from
their tax-exempt net investment income which were paid August 1, 1996, to
shareholders of record on July 15, 1996, as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Dividend per share $.0785 $.0690 $.0865 $.0640
====== ====== ====== ======
</TABLE>
<PAGE>
<TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of
investments at June 30, 1996, were as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $ 19,758,271 $ 4,267,891 $ 24,743,661 $ 4,114,148
Depreciation (384,371) (3,303,527) (351,355) (3,868,984)
------------ ------------ ------------ ------------
Net unrealized appreciation $ 19,373,900 $ 964,364 $ 24,392,306 $ 245,164
============ ============ ============ ============
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, 1996, 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 194,186 118,585 156,366 157,475
Paid-in surplus 272,508,358 171,207,429 220,308,470 215,278,352
Balance of undistributed net investment income 705,859 679,378 504,881 283,700
Accumulated net realized gain (loss) from
investment transactions (444,174) (4,862,118) 461,463 (2,201,822)
Net unrealized appreciation of investments 19,373,900 964,364 24,392,306 245,164
------------- ------------- ------------- -------------
Net assets $ 422,338,129 $ 259,707,638 $ 355,823,486 $ 331,862,869
============= ============= ============= =============
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, 1996, 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 2% 7% 12% 19%
Health Care Facilities 12 8 12 19
Transportation 8 18 6 4
Housing Facilities 15 9 10 14
Pollution Control Facilities 14 12 8 12
Lease Rental Facilities 7 4 -- 3
Water / Sewer Facilities 5 6 3 6
Electric Utilities 2 1 -- --
Other 6 11 3 1
General Obligation Bonds 16 16 4 11
Escrowed Bonds 13 8 42 11
--- --- --- ---
100% 100% 100% 100%
=== === === ===
Certain long-term and intermediate-term investments owned by the Funds are
either covered by insurance issued by several private insurers or are backed
by an escrow or trust containing U.S. Government or U.S. Government agency
securities, both of which ensure the timely payment of principal and interest
in the event of default (52% for NQJ, 49% for NNJ, 70% for NQP and 56% 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 tax-exempt
net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments++ shareholders shareholders+
<S> <C> <C> <C> <C> <C>
NQJ
Year ended 6/30,
1996 $15.060 $1.171 $ (.006) $ (.945) $(.230)
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,
1996 13.970 1.081 .197 (.812) (.256)
1995 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)
<CAPTION>
NQP
<S> <C> <C> <C> <C> <C>
Year ended 6/30,
1996 15.860 1.275 (.078) (1.049) (.248)
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,
1996 13.250 1.038 .335 (.782) (.271)
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 shareholders+ discounts of period of period
<S> <C> <C> <C> <C> <C>
NQJ
Year ended 6/30,
1996 $ -- $ -- $ -- $15.050 $14.875
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,
1996 -- -- -- 14.180 13.000
1995 (.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
<CAPTION>
NQP
<S> <C> <C> <C> <C> <C>
Year ended 6/30,
1996 (.031) (.009) -- 15.720 16.375
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,
1996 -- -- -- 13.570 12.375
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) assets@ net assets@ rate
<S> <C> <C> <C> <C> <C> <C>
NQJ
Year ended 6/30,
1996 8.17% 6.28% $422,338 .81% 5.33% 16%
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,
1996 4.24 7.37 259,708 .86 4.90 32
1995 14.60 10.39 257,251 .94 5.08 15
11 mos. ended
6/30/94 (13.16) (2.61) 113,458 .91* 4.72* 12
12/17/92 to
7/31/93 2.27 5.78 118,885 .97* 3.75* 5
<CAPTION>
NQP
<S> <C> <C> <C> <C> <C> <C>
Year ended 6/30,
1996 12.74 6.00 355,823 .82 5.53 12
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,
1996 2.21 8.39 331,863 .84 4.90 19
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.
+ The amounts shown are based on Common share equivalents.
++ Net of taxes, if applicable (see note 1).
@ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</FN>
</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, 1996, 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, 1996, 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, 1996, 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 9, 1996
<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 add to 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. 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. Income or capital gains taxes may be payable on dividends
or distributions that are reinvested.
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 financial adviser or call us
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. Nuveen is pleased to provide the account information you and
your adviser need to plan effectively."
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>
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."
More than just a number
If you've ever called our toll-free customer service line, you've spoken with
one of Nuveen's customer service representatives. These reps are ready to
assist you with answers to your questions about current account balances,
yields, and previous transactions on your accounts. They can also supply
additional information about any of Nuveen's tax-free unit trusts and mutual
funds.
If you have a question about your account, or whenever you need help, just
call 800.257.8787. Our customer service reps are available Monday through
Friday from 8:00 a.m. to 8:00 p.m. Eastern time.
Photographic image of woman seated and man standing behind her representing
Nuveen investors.
<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-AUG 96
