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)
SEMIANNUAL REPORT/DECEMBER 31, 1996
Photographic image of couple walking on beach.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Commonly used terms
13 Shareholder meeting report
14 Portfolio of investments
47 Statement of net assets
48 Statement of operations
49 Statement of changes in net assets
51 Notes to financial statements
60 Financial highlights
<PAGE>
"These funds continue to achieve their goal of delivering attractive tax-free
income."
Photographic image of headshot of Chairman and Chief Executive
Officer of Nuveen.
Dear
shareholder
As we begin a new year, I am pleased to have this opportunity to report to you
on the performance of your funds, which continue to achieve their goal of
delivering attractive tax-free income from portfolios of investment-grade
quality municipal bonds. Because the proceeds from these bonds are used to
maintain and improve the infrastructure of the states where you live, your
investment has several advantages: As you support the publicly funded projects
that enhance your communities, you benefit from the credit strength of these
communities and also receive income that is exempt from federal and state
income taxes.
As of December 31, 1996, investors in the New Jersey and Pennsylvania funds
were receiving annual tax-free yields that ranged from 6.15% to 6.31%. To
match these yields, an investor in the 36% federal income tax bracket would
have had to earn at least 9.61% on taxable alternatives; the addition of state
taxes to this equation further enhances the yield advantage provided by
tax-free bonds. In addition to providing highly attractive levels of tax-free
income, some of these funds saw an increase in share price over that
of 12 months ago.
Over the past year, the funds covered in this report posted total returns
<PAGE>
on net asset value of 3.40% to 4.75%, equivalent to taxable total
returns of 7.17% to 8.16%. This performance is especially encourag ing in light
of 1996's bond market, which offset a mid-year decline with a post-election
rally to end the year essentially where it began.
Several aspects of our conservative approach to management help position
these funds to perform well in changing market environments. First, we
enhance income through prudent use of a leveraged, dual class structure in
periods of falling rates. In addition, our conservative dividend policy
promotes stability by setting dividends at levels that are expected to remain
consistent for at least six months. In this way, Nuveen works to smooth out
fluctuations in short-term rates, enabling investors to depend on their
tax-free income.
Nuveen continues to meet the challenge of our investors' expanding needs for
capital preservation, current income, and future growth. In November 1996, we
introduced the Nuveen Growth and Income Stock Fund, the first of three
equity-based mutual funds designed to provide a complement to our current
municipal bond funds.
In an additional move to increase the range of investment solutions
available to our investors, Nuveen has acquired Flagship Resources, Inc., a
highly regarded fixed income mutual fund specialist that shares our views on
the importance of research and emphasizes a conservative, value-oriented
approach to portfolio management. We have completed the combination of our
tax-exempt mutual fund activities, which resulted in the broadest selection of
municipal bond funds available in the U.S.
We at Nuveen are excited about these recent developments, and we are pleased
to be bringing our investors expanded options for achieving wealth
preservation, dependable income, and long-term asset growth. Thank you for
your continued confidence in Nuveen and our family of investments.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
February 17, 1997
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, talks about the
municipal bond market and offers insights into factors that affected performance
over the past 12 months.
How would you categorize the bond market over the past 12 months?
In 1996, the bond market--despite some fluctuations--was relatively stable
compared with recent years. While 1994 represented the worst period in recent
bond market history and 1995 the best in a decade, last year's bond market
finished the year mostly unchanged, with a late second-half rebound reclaiming
much of the territory lost in a mid-year decline.
Throughout 1996, the municipal bond market continued to reward investors
with solid returns, dependable income, and opportunities to purchase bonds
with strong credit quality.
A look at the current economy shows a positive tone, reflecting a
combination of factors that historically bode well for the bond market,
especially long-term issues. Yields remain attractive, as inflation maintains
the same modest pace that it has demonstrated over the past five years, giving
<PAGE>
every indication of being well under control. At the same time, economic
expansion continues to be slow and steady, as evidenced by lack of price
pressure at the consumer and producer levels, strong consumer confidence, and
a stable money supply.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on develop ments in the municipal market.
What were the principal factors affecting the bond market and Nuveen funds?
Following a strong start to the year, a succession of mixed reports affecting
interest rate and inflation forecasts caused investors to view the markets
alternatively with enthusiasm, then uncertainty. In the third quarter of 1996,
evidence of an economic slowdown, the strong U.S. dollar, and lack of
inflationary pressures combined to allay investor fears, sparking a rally in
bonds that continued through the post-election period.
The continued euphoria in the equity market focused investors' attention on
stocks and brought record amounts of new money into stock-based mutual funds,
bypassing the bond market. Some investors, concerned about a possible
correction in the stock market, decided to take their profits, but adopted a
wait-and-see attitude about investing capital gains, electing to go with
short-term vehicles until a clearer picture of market trends emerged. Both of
these events affected demand for bond issues of all types.
Last year also saw an improvement in discounts on Nuveen funds. Over the
past 12 months, rising share prices and lower net asset values as long-term
rates increased combined to narrow the discounts on many Nuveen funds, with
some funds trading at a premium.
<PAGE>
We believe that the current yields, stable dividends, and insulation against
bond calls offered by these exchange-traded funds present an attractive
investment opportunity, one that allows investors to lock in rates that will
be even more attractive if the equity market undergoes a long-expected
correction.
In light of current market conditions, has Nuveen changed the way it manages
these funds?
No. We continue to believe that value investing is the best investment strategy
for the funds we manage.
Successful value investing depends on obtaining detailed insights into the
outlook for individual issuers and the characteristics of specific
bonds--information that may go beyond that used by the market as a whole.
That's where our award-winning Research Department excels. To find the
municipal bonds we consider for our portfolios, Nuveen Research uses insights
gained from years of experience to help portfolio managers target bonds that
may be upgraded, which results in a higher level of quality and safety in the
portfolios, as well as bonds that are anticipated to increase in value as the
result of factors as yet unrecognized by the investment community in general.
We continue to be committed to maintaining Nuveen's tradition of value
<PAGE>
investing and prudent management, with a focus on building shareholder value,
providing research-oriented management, and delivering dependable performance,
in the belief that this will contribute to many more years of investment
success for our fund shareholders.
What effect will bond calls have on these portfolios?
The funds covered in this report, which were issued between February 1991 and
March 1993, have virtually no call exposure. It is important to understand that
the bond market has dealt with the issue of bond calls and pre-refundings for
years. Although this has put some pressure on the dividends of the older Nuveen
funds issued prior to 1991, all of our funds have performed very well through
this period.
In addition to strong call protection, shareholders in these funds continue
to enjoy attractive dividends. This positive trend in dividend payment can be
traced to the leveraged structure of these funds, which enables them to invest
the proceeds from the sale of short-term preferred shares in the purchase of
additional intermediate and long-term bonds, thereby increasing the
portfolio's income stream for the benefit of shareholders.
<PAGE>
<TABLE>
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQJ
The Fund's monthly tax-free dividend was increased during the 12 months ended
December 1996. Shareholders continue to benefit from the Fund's leveraged
structure. In addition, the portfolio continues to have significant call
protection.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/10/96 $0.0785
2/13/96 $0.0785
3/13/96 $0.0785
4/11/96 $0.0785
5/13/96 $0.0785
6/12/96 $0.0785
7/11/96 $0.0785
8/13/96 $0.0785
9/11/96 $0.0785
10/10/96 $0.0785
11/13/96 $0.0795
12/11/96 $0.0795
<CAPTION>
FUND HIGHLIGHTS 12/31/96
<S> <C>
Yield 6.15%
Taxable-equivalent yield 10.25%
Annual total return on NAV 4.72%
Taxable-equivalent total return 8.86%
Share price $15.50
NAV $15.41
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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<TABLE>
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NNJ
The Fund's monthly tax-free dividend was increased twice during the 12 months
ended December 1996. Shareholders continue to benefit from the Fund's
leveraged structure. In addition, the portfolio continues to have significant
call protection.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/10/96 $0.0675
2/13/96 $0.0675
3/13/96 $0.0675
4/11/96 $0.0675
5/13/96 $0.0675
6/12/96 $0.0690
7/11/96 $0.0690
8/13/96 $0.0690
9/11/96 $0.0690
10/10/96 $0.0690
11/13/96 $0.0710
12/11/96 $0.0710
<CAPTION>
FUND HIGHLIGHTS 12/31/96
<S> <C>
Yield 6.31%
Taxable-equivalent yield 10.52%
Annual total return on NAV 3.40%
Taxable-equivalent total return 7.17%
Share price $13.50
NAV $14.61
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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<TABLE>
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NQP
While the dividend income remains highly attractive compared with other
fixed-income alternatives, the Fund adjusted its monthly rate twice during the
year, seeking a level in line with its earnings.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/10/96 $0.0880
2/13/96 $0.0865
3/13/96 $0.0865
4/11/96 $0.0865
5/13/96 $0.0865
6/12/96 $0.0865
7/11/96 $0.0865
8/13/96 $0.0840
9/11/96 $0.0840
10/10/96 $0.0840
11/13/96 $0.0840
12/11/96 $0.1096
<CAPTION>
FUND HIGHLIGHTS 12/31/96
<S> <C>
Yield 6.30%
Taxable-equivalent yield 10.16%
Annual total return on NAV 4.52%
Taxable-equivalent total return 8.50%
Share price $16.00
NAV $15.97
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
NPY
The Fund adjusted its monthly tax-free dividend twice, seeking a level in line
with the portfolio's earnings rate. The portfolio continues to have
significant call protection, and should deliver a more stable dividend over
the near term.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/10/96 $0.0655
2/13/96 $0.0640
3/13/96 $0.0640
4/11/96 $0.0640
5/13/96 $0.0640
6/12/96 $0.0640
7/11/96 $0.0640
8/13/96 $0.0640
9/11/96 $0.0640
10/10/96 $0.0640
11/13/96 $0.0650
12/11/96 $0.0650
<CAPTION>
FUND HIGHLIGHTS 12/31/96
<S> <C>
Yield 6.24%
Taxable-equivalent yield 10.06%
Annual total return on NAV 4.75%
Taxable-equivalent total return 8.16%
Share price $12.50
NAV $14.09
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, December 31, 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 December 31, 1996. Any
future repur-chases will be reported to shareholders in the next annual or
semiannual report.
<PAGE>
<TABLE>
<CAPTION>
SHAREHOLDER MEETING REPORT
On December 12, 1996, the following Nuveen Exchange-Traded Funds held
an Annual Meeting of Shareholders. At the meeting, shareholders voted
to elect directors of the Funds and to ratify selection of Ernst &
Young L.L.P. as the auditors for the Funds. The directors elected at
the meeting include: Lawrence H. Brown, Anthony T. Dean, Anne E.
Impellizzeri, and Peter R. Sawers.
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Lawrence H. Brown
For 15,986,549 9,941,413 12,541,460 12,247,111
Abstain 162,872 91,234 187,335 222,554
---------- ---------- ---------- ----------
Total 16,149,421 10,032,647 12,728,795 12,469,665
========== ========== ========== ==========
Anthony T. Dean
For 15,987,061 9,943,711 12,548,094 12,253,239
Abstain 162,360 88,936 180,701 216,426
---------- ---------- ---------- ----------
Total 16,149,421 10,032,647 12,728,795 12,469,665
========== ========== ========== ==========
Anne E. Impellizzeri
For 15,986,995 9,942,780 12,545,057 12,246,380
Abstain 162,426 89,867 183,738 223,285
---------- ---------- ---------- ----------
Total 16,149,421 10,032,647 12,728,795 12,469,665
========== ========== ========== ==========
Peter R. Sawers
For 15,986,549 9,945,196 12,456,671 12,254,541
Abstain 162,872 87,451 182,124 215,124
---------- ---------- ---------- ----------
Total 16,149,421 10,032,647 12,638,795 12,469,665
========== ========== ========== ==========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 15,889,578 9,886,834 12,526,373 12,288,727
Against 94,243 39,579 78,728 50,391
Abstain 165,060 106,234 128,740 130,547
---------- ---------- ---------- ----------
Total 16,148,881 10,032,647 12,733,841 12,469,665
========== ========== ========== ==========
</TABLE>
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<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 3,600,000 The Delaware River and Bay Authority, Revenue
Bonds, Series 1996, 5.250%, 1/01/26 Aaa 1/06 at 102 $ 3,467,772
350,000 Higher Education Assistance Authority (State of
New Jersey), Senior Student Loan Revenue Bonds,
1991 Series A, 7.200%, 7/01/09 (Alternative
Minimum Tax) A 7/01 at 102 361,235
400,000 New Jersey Economic Development Authority,
Adjustable - Fixed Rate Pollution Control Revenue
Bonds, 1985 Series (Jersey Central Power and
Light Company Project), 7.100%, 7/01/15 Baa1 7/01 at 103 430,112
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 A 3/98 at 102 3,408,591
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) A 3/98 at 102 2,089,820
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) BBB 4/97 at 102 5,106,000
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) Aaa 3/02 at 102 6,272,112
1,500,000 New Jersey Economic Development Authority,
Economic Development Bonds, Bridgewater
Resources Inc., Series 1991, 9.500%, 2/01/01
(Alternative Minimum Tax) N/R No Opt. Call 1,552,680
3,000,000 New Jersey Economic Development Authority,
Economic Development Bonds (American Airlines,
Inc. Project), 7.100%, 11/01/31 (Alternative
Minimum Tax) Baa2 11/01 at 102 3,220,290
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) N/R No Opt. Call 5,098,350
5,000,000 New Jersey Economic Development Authority,
Economic Development Revenue Bonds ( J and J
Snack Foods Corporation of New Jersey Project),
Series 91, 7.250%, 12/01/05 (Alternative
Minimum Tax) N/R 12/01 at 100 5,145,550
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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) Aaa 5/06 at 102 $ 7,726,350
New Jersey Economic Development Authority
Revenue Bonds (New Jersey Performing Arts
Center Site Acquisition Project), 1991 Series:
610,000 6.600%, 6/15/04 (Pre-refunded to 6/15/01) Aaa 6/01 at 102 672,257
3,800,000 6.750%, 6/15/12 (Pre-refunded to 6/15/01) Aaa 6/01 at 102 4,209,640
2,500,000 New Jersey Economic Development Authority,
Market Transition Facility Senior Lien Revenue
Bonds, Series 1994A, 7.000%, 7/01/04 Aaa No Opt. Call 2,836,275
New Jersey Educational Facilities Authority, Seton
Hall University Project Revenue Bonds, 1991
Series, Project D:
500,000 6.875%, 7/01/10 (Pre-refunded to 7/01/01) Baa1 7/01 at 102 533,365
2,500,000 7.000%, 7/01/21 (Pre-refunded to 7/01/01) Baa1 7/01 at 102 2,641,875
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) Aaa 7/97 at 102 7,266,070
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 Aaa 7/00 at 102 327,588
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) Aaa 7/01 at 102 5,429,141
3,600,000 New Jersey Health Care Facilities Financing
Authority, Refunding Revenue Bonds, Atlantic
City Medical Center Issue, Series C,
6.800%, 7/01/05 A 7/02 at 102 3,915,036
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 Aaa 7/01 at 102 8,182,500
9,300,000 New Jersey Health Care Facilities Financing
Authority, Revenue Bonds, Centrastate Medical
Center Issue, Series A, 6.625%, 7/01/11 Aaa 7/01 at 102 10,053,207
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 Aaa 7/99 at 100 3,072,600
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,070,000 New Jersey Health Care Facilities Authority,
Revenue Bonds, Robert Wood Johnson University
Hospital, Series B, 6.625%, 7/01/16 Aaa 7/01 at 102 $ 2,233,302
4,350,000 New Jersey Health Care Facilities Financing
Authority, Revenue Bonds, Mercer Medical Center
Issue, Series 1991, 6.500%, 7/01/10 Aaa 7/01 at 102 4,680,644
5,025,000 New Jersey Health Care Facilities Financing
Authority, Revenue Bonds, Pascack Valley Hospital
Association Issue, Series 1991, 6.700%, 7/01/11 BBB+ 7/01 at 102 5,176,152
New Jersey Health Care Facilities Financing
Authority, Refunding Revenue Bonds, Barnett
Hospital (FHA Insured Mortgage), Series B:
830,000 6.750%, 8/01/11 AAA 2/01 at 102 865,358
2,845,000 6.800%, 8/01/19 AAA 2/01 at 102 2,957,178
4,400,000 New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Pallisades Medical Center,
Obligated Group Issue, Series 1992,
7.500%, 7/01/06 Ba1 7/02 at 102 4,563,768
2,800,000 New Jersey Health Care Facilities Financing Authority,
Refunding Revenue Bonds, Atlantic City Issue,
Series C, 6.800%, 7/01/11 A 7/02 at 102 3,017,140
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 Baa1 7/03 at 102 3,587,636
New Jersey Health Care Facilities Financing Authority,
Refunding Revenue Bonds, Barnett Hospital (FHA
Insured Mortgage), Series B:
90,000 6.750%, 8/01/11 (Pre-refunded to 2/01/01) AAA 2/01 at 100 99,168
355,000 6.800%, 8/01/19 (Pre-refunded to 2/01/01) AAA 2/01 at 102 391,821
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) Aaa 1/99 at 102 10,046,139
New Jersey Highway Authority (Garden State
Parkway), Senior Parkway Revenue Refunding
Bonds, 1992 Series:
3,500,000 6.250%, 1/01/14 AA- 1/02 at 102 3,674,650
1,000,000 5.750%, 1/01/19 AA- 1/02 at 100 1,006,250
4,500,000 New Jersey Housing Mortgage Finance Agency,
Multi-Family Housing Revenue Bonds,
1996 Series A, 6.250%, 5/01/28 (Alternative
Minimum Tax) Aaa 5/06 at 102 4,591,080
12,000,000 New Jersey Housing and Mortgage Finance Agency,
Multifamily Housing Revenue Refunding Bonds
(Presidential Plaza at Newport Project-FHA Insured
Mortgages), 1991 Series 1, 7.000%, 5/01/30 AAA 11/02 at 102 12,806,400
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 New Jersey Housing and Mortgage Finance Agency,
Multi-Family Housing Revenue Bonds, 1995
Series A, 6.000%, 11/01/14 Aaa 5/05 at 102 $ 1,536,990
New Jersey Housing and Mortgage Finance Agency,
Section B Bonds, 1991 Series A:
3,000,000 6.800%, 11/01/05 AA+ 11/02 at 102 3,226,650
2,500,000 6.900%, 11/01/07 AA+ 11/01 at 103 2,677,300
4,700,000 6.950%, 11/01/08 AA+ 11/01 at 103 5,022,467
1,000,000 7.100%, 11/01/11 AA+ 11/01 at 103 1,061,780
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) Aaa 10/99 at 102 3,396,690
9,650,000 New Jersey Housing and Mortgage Finance Agency,
Housing Revenue Bonds, 1992 Series A,
6.950%, 11/01/13 A+ 5/02 at 102 10,396,524
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) Aaa 10/00 at 102 5,589,265
3,250,000 New Jersey Housing and Mortgage Finance Agency,
Housing Revenue Refunding Bonds, 1992 Series
One, 6.700%, 11/01/28 A+ 11/02 at 102 3,381,950
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) Aaa 10/05 at 101 1/2 2,670,359
5,000,000 New Jersey Housing and Mortgage Finance Agency,
Revenue Bonds (Home Buyer), 1996 Series S,
6.050%, 10/01/28 (Alternative Minimum Tax) Aaa 4/07 at 101 1/2 5,033,850
2,445,000 New Jersey Sports and Exposition Authority, State
Contract Bonds, 1992 Series A, 6.500%, 3/01/19 Aa 3/02 at 102 2,602,336
2,575,000 New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, 1995 Series B,
6.500%, 6/15/11 Aaa No Opt. Call 2,916,394
5,000,000 New Jersey Turnpike Authority, Turnpike Revenue
Bond, Series 1991 A (Refunding Bonds),
6.900%, 1/01/14 Baa1 1/97 at 100 5,014,650
New Jersey Turnpike Authority, Turnpike Revenue
Bond, Series 1991 C:
9,000,000 6.500%, 1/01/08 Aaa No Opt. Call 10,143,900
1,675,000 6.500%, 1/01/16 Baa1 No Opt. Call 1,853,069
New Jersey Wastewater Treatment Trust, Wastewater
Treatment Insured Bonds, Series 1988 A:
2,965,000 7.375%, 5/15/08 (Pre-refunded to 5/15/98) Aaa 5/98 at 102 3,160,512
35,000 7.375%, 5/15/08 Aaa 5/98 at 102 37,031
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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) A+ 11/98 at 102 $ 2,409,638
State of New Jersey, General Obligation Bonds
(Various Bonds):
8,200,000 6.750%, 9/15/07 (Pre-refunded to 9/1501) AA+ 9/01 at 101 1/2 9,112,414
850,000 6.800%, 9/15/10 (Pre-refunded to 9/15/01) AA+ 9/01 at 101 1/2 946,365
5,000,000 State of New Jersey, General Obligation Bonds,
Various Series, 6.375%, 8/01/11 Aa1 8/02 at 101 1/2 5,336,350
State of New Jersey, General Obligation Bonds,
Series D:
5,000,000 5.750%, 2/15/06 Aa1 No Opt. Call 5,364,450
5,000,000 6.000%, 2/15/11 Aa1 No Opt. Call 5,419,800
2,500,000 The Atlantic County Utilities Authority (New Jersey),
Sewer Revenue Refunding Bonds, 1987 Series,
5.000%, 1/15/13 Aaa 1/97 at 100 2,389,675
1,500,000 The Board of Education of the Township of
Bedminister, Certificates of Participation, In the
County of Somerset, New Jersey, 7.125%, 9/01/10 A1 3/01 at 102 1,655,070
3,000,000 County of Bergen, New Jersey, General Improvement
Bonds, 5.500%, 8/15/07 Aaa No Opt. Call 3,169,140
7,000,000 The Bergen County Utilities Authority, 1992 Water
Pollution Control System Revenue Bonds, Series A,
6.500%, 12/15/12 Aaa 6/02 at 102 7,643,090
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) BBB+ 12/01 at 102 3,713,653
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) BBB+ 12/01 at 102 3,513,300
Cape May County Municipal Utilities Authority,
Sewer Revenue Refunding Bonds, Series 1992-A:
2,000,000 6.000%, 1/01/11 Aaa 1/03 at 102 2,098,960
7,600,000 5.750%, 1/01/16 Aaa 1/03 at 102 7,699,560
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 Aaa 12/01 at 100 1,081,360
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 Aa 4/03 at 101 1,236,259
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
County of Essex, New Jersey, General Obligation
Refunding Bonds of 1996, Tax-Exempt Bonds of
1996, Series A-1:
$ 3,000,000 6.000%, 11/15/07 (WI) Aaa No Opt. Call $ 3,263,520
1,000,000 5.000%, 11/15/11 (WI) Aaa 8/07 at 101 967,840
7,800,000 County of Essex, New Jersey, Fiscal Year Adjustment
Bonds, Series 1991, 6.500%, 12/01/11 Aaa 12/01 at 101 8,455,590
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 (Pre-refunded
to 9/01/01) Aaa 9/01 at 102 4,538,120
2,320,000 City of Hoboken, Fiscal Year Adjustment General
Obligation Bonds, Series 1991, 8.900%, 8/01/06 Aaa No Opt. Call 3,051,241
5,250,000 Township of Howell, In the County of Monmouth,
New Jersey, General Obligation Refunding Bonds,
Series 1991, 6.800%, 1/01/14 Aaa 1/02 at 102 5,773,740
3,790,000 The Hudson County Improvement Authority,
Multifamily Housing Revenue Bonds, Series
1992 A (Conduit Financing-Observer Park Project),
6.900%, 6/01/22 (Alternative Minimum Tax) AAA 6/04 at 100 3,966,159
3,675,000 The City of New Jersey (Hudson County, New Jersey),
Fiscal Year Adjustment Bonds, Series B 1991,
8.400%, 5/15/06 Aaa No Opt. Call 4,641,893
8,200,000 The City of Jersey City (Hudson County, New Jersey),
Fiscal Year Adjustment Bonds, Series A 1991,
6.600%, 5/15/11 (Pre-refunded to 5/15/01) Aaa 5/01 at 102 9,038,942
1,540,000 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 N/R 4/97 at 101 1,562,915
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 Aaa 3/06 at 102 2,617,489
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 Aa No Opt. Call 3,000,240
1,585,000 6.050%, 1/01/13 Aa No Opt. Call 1,585,159
1,000,000 6.050%, 1/01/14 Aa No Opt. Call 1,000,100
1,720,000 6.050%, 1/01/16 Aa No Opt. Call 1,720,103
2,000,000 6.050%, 1/01/17 Aa No Opt. Call 2,000,120
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) Aa 11/00 at 102 1,042,920
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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 N/R 12/02 at 102 $ 8,418,000
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) Aaa 2/01 at 102 3,862,110
2,000,000 Town of Morristown, In the County of Morris, New
Jersey, General Obligation Refunding Bonds, Series
1995, 6.500%, 8/01/19 Aaa 8/05 at 102 2,207,480
1,200,000 County of Passaic, New Jersey, General Improvement
Bonds, 6.700%, 9/01/10 (Pre-refunded to 9/01/99) N/R 9/99 at 102 1,296,684
4,000,000 Passaic Valley Sewerage Commissioners (State of
New Jersey), Sewer System Bonds, Series D,
5.800%, 12/01/18 Aaa 12/02 at 102 4,072,120
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 A+ 5/02 at 102 1,242,316
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 AA 5/02 at 102 3,119,588
1,725,000 6.500%, 5/01/18 AA 5/02 at 102 1,856,462
6,250,000 The Pollution Control Financing Authority of
Salem County (New Jersey), Waste Disposal
Revenue Bonds (E. I. duPont de Nemours and
Company-Chambers Works Project), 1991 Series
A, 6.500%, 11/15/21 (Alternative Minimum Tax) AA- 11/01 at 102 6,625,125
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 N/R 11/02 at 102 1,553,501
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) Aaa 6/02 at 102 10,650,500
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) AA 12/01 at 102 2,708,377
4,000,000 Township of West Deptford, County of Gloucester,
New Jersey, General Obligation Bonds, Series of
1996, 5.250%, 3/01/14 Aaa 3/06 at 102 3,935,280
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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 Baa3 6/02 at 102 $ 4,558,516
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) AA- 1/03 at 101 4,578,705
1,300,000 The Port Authority of New York and New Jersey
Consolidated Bonds, One Hundred Fourth Series,
5.200%, 7/15/21 Aaa 1/06 at 102 1,243,567
3,000,000 Delaware River Port Authority, Revenue Bonds,
Series of 1995, 5.500%, 1/01/26 Aaa 1/06 at 102 2,959,350
6,000,000 Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series Y, 7.000%, 7/01/07 Aaa No Opt. Call 7,032,780
6,000,000 Puerto Rico Electric Power Authority, Power
Revenue Bonds, Series P, 7.000%, 7/01/11
(Pre-refunded to 7/01/01) Aaa 7/01 at 102 6,762,120
710,000 Puerto Rico Housing Finance Corporation, Single
Family Mortgage Revenue Bonds, Portfolio One,
Series C, 6.750%, 10/15/13 Aaa 10/01 at 102 743,623
- -------------------------------------------------------------------------------------------------------------------
$397,255,000 Total Investments - (cost $396,855,914) - 98.3% 422,878,198
=================--------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 7,399,117
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $430,277,315
===================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 56 $246,536,842 58%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 24 75,923,970 18
PORTFOLIO OF A+ A1 5 19,085,498 5
INVESTMENTS: A, A- A, A2, A3 5 12,791,822 3
BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 12 39,348,618 9
BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 4,563,768 1
Non-rated Non-rated 7 24,627,680 6
- -----------------------------------------------------------------------------------------------------------------
TOTAL 110 $422,878,198 100%
=================================================================================================================
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
(WI) Security purchased on a when-issued basis (note 1).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 7,100,000 The Delaware River and Bay Authority, Revenue
Bonds, Series 1993, 5.000%, 1/01/17 Aaa 1/04 at 102 $ 6,603,426
885,000 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) A+ 7/02 at 102 898,001
5,250,000 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 MinimumTax) A+ 7/03 at 102 5,128,883
1,145,000 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) A 3/98 at 102 1,196,422
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) A3 4/97 at 102 4,085,600
3,600,000 New Jersey Economic Development Authority,
Economic Development Bonds (Yeshiva K'Tana
of Passaic-1992 Project), 8.000%, 9/15/18 N/R No Opt. Call 4,231,872
5,980,000 New Jersey Economic Development Authority,
Economic Development Bonds (Bridgewater
Resources Inc. Project), 1994 Series A,
8.375%, 11/01/04 (Alternative Minimum Tax) N/R No Opt. Call 6,287,970
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) A 8/01 at 102 1,561,492
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) Aaa 3/04 at 102 3,146,810
3,255,000 New Jersey Economic Development Authority
(Morris Hall/St. Lawrence, Inc. Project),
Series 1993A, 6.150%, 4/01/13 A+ 4/03 at 102 3,354,310
3,485,000 New Jersey Economic Development Authority,
Revenue Bonds (Public Schools Small Project Loan
Program)Series 1993, 5.400%, 8/15/12 AAA 8/03 at 102 3,489,287
2,670,000 New Jersey Economic Development Authority,
Economic Growth Bond, Composite Issue-1992
Second Series H, 5.300%, 12/01/07 (Alternative
Minimum Tax) Aa3 12/03 at 102 2,698,409
1,135,000 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) A 10/03 at 102 1,147,508
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 1,245,000 New Jersey Economic Development Authority,
Economic Growth Bonds, Composite Issue-
1992 Second Series T, 5.300%, 12/01/07
(Alternative Minimum Tax) Aa3 12/03 at 102 $ 1,258,247
1,500,000 New Jersey Economic Development Authority,
Market Transition Facility Senior Lien Revenue
Bonds, Series 1994A, 7.000%, 7/01/04 Aaa No Opt. Call 1,701,765
1,000,000 New Jersey Educational Facilities Authority, Trenton
State College Issue, Revenue Bonds, Series 1976 D,
6.750%, 7/01/08 A+ 1/97 at 100 1,002,230
2,095,000 New Jersey Educational Facilities Authority,
Refunding Revenue Bonds, Trenton State College
Issue, Series 1992 E, 6.000%, 7/01/09 Aaa 7/02 at 102 2,205,302
1,500,000 New Jersey Educational Facilities Authority, Higher
Education Facilities Trust Fund Bonds,
Series 1995 A, 5.125%, 9/01/02 Aaa No Opt. Call 1,544,985
1,000,000 New Jersey Educational Facilities Authority, Revenue
Bonds, New Jersey Institute of Technology Issue,
Series 1994A, 6.000%, 7/01/24 Aaa 7/04 at 102 1,041,500
2,500,000 New Jersey Educational Facilities Authority, Revenue
Bonds, Rowan College of New Jersey Issue, Series
1996 E, 6.000%, 7/01/21 Aaa 7/06 at 101 2,616,875
1,250,000 New Jersey Health Care Facilities Financing
Authority Revenue Bonds, Community Memorial
Hospital Association Issue, Series C, 8.000%, 7/01/14 A 7/98 at 102 1,328,363
2,000,000 New Jersey Health Care Facilities Financing
Authority, Revenue Bonds, Newton Memorial
Hospital Issue, Series A, 7.500%, 7/01/19 A- 7/99 at 102 2,132,740
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 Aaa No Opt. Call 1,147,123
800,000 7.000%,7/01/04 Aaa No Opt. Call 911,656
2,000,000 New Jersey Health Care Facilities Financing
Authority, Revenue Bonds, The Overlook Hospital
Association Issue, Series E, 6.700%, 7/01/13 Aaa 7/97 at 102 2,066,140
3,300,000 New Jersey Health Care Facilities Financing
Authority, Revenue Bonds, St. Peter's Medical
Center Issue, Series F, 5.000%, 7/01/11 Aaa 7/03 at 102 3,195,819
935,000 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 AAA 8/04 at 102 933,579
2,000,000 New Jersey Health Care Facilities Financing
Authority, Revenue Bonds, Monmouth Medical
Center Issue, Series C, 6.250%, 7/01/16 Aaa 7/04 at 102 2,131,940
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,250,000 New Jersey Housing Finance Agency, Special Pledge
Revenue Obligations, 1975 Series One,
9.000%, 11/01/18 A1 11/97 at 103 $ 2,328,480
2,875,000 New Jersey Housing and Mortgage Finance Agency,
Multi-Family Housing Revenue Bonds,
1995 Series A, 6.000%, 11/01/14 Aaa 5/05 at 102 2,945,898
New Jersey Housing and Mortgage Finance Agency,
Housing Revenue Bonds, 1992 Series A:
2,365,000 6.700%, 5/01/05 A+ 5/02 at 102 2,536,652
8,000,000 6.950%, 11/01/13 A+ 5/02 at 102 8,618,880
4,250,000 New Jersey Housing and Mortgage Finance Agency,
Housing Revenue Refunding Bonds,
1992 Series One, 6.700%, 11/01/28 A+ 11/02 at 102 4,422,550
1,000,000 New Jersey Housing and Mortgage Finance Agency,
Revenue Bonds (Home Buyer), 1995 Series O,
6.300%, 10/01/23 (Alternative MinimumTax) Aaa 10/05 at 101 1/2 1,027,390
525,000 New Jersey Housing and Mortgage Finance
Agency, Home Buyer Revenue Bonds,
Series 1996-P, 5.650%, 4/01/14 Aaa 4/06 at 101 1/2 525,814
1,000,000 New Jersey Housing and Mortgage Finance Agency,
Revenue Bonds (Home Buyer), 1996 Series Q,
5.875%, 4/01/17 (Alternative Minimum Tax) Aaa 4/06 at 101 1/2 1,006,850
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, 1995 Series A:
750,000 5.500%, 6/15/12 Aaa 6/05 at 102 761,003
5,000,000 5.000%, 6/15/15 Aaa 6/05 at 102 4,726,150
1,100,000 New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, 1995 Series B,
5.500%, 6/15/15 Aaa 6/05 at 102 1,096,810
2,780,000 New Jersey Turnpike Authority, Turnpike Revenue
Bonds, 1984 Series, 10.375%, 1/01/03 AAA No Opt. Call 3,320,432
New Jersey Turnpike Authority, Turnpike Revenue
Bonds, Series 1991 C:
1,000,000 6.500%, 1/01/08 Baa1 No Opt. Call 1,107,870
7,920,000 6.500%, 1/01/16 Baa1 No Opt. Call 8,761,975
7,140,000 6.500%, 1/01/16 Aaa No Opt. Call 8,079,695
3,300,000 State of New Jersey, General Obligation Bonds
(Various Bonds), 6.800%, 9/15/10
(Pre-refunded to 9/15/01) AA+ 9/01 at 101 1/2 3,674,121
2,385,000 State of New Jersey, General Obligation Bonds
(Various Series), 6.800%, 9/15/11
(Pre-refunded to 9/15/01) AA+ 9/01 at 101 1/2 2,647,851
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
State of New Jersey, General Obligation Bonds,
Series D:
$ 5,260,000 5.750%, 2/15/06 Aa1 No Opt. Call $ 5,643,401
4,000,000 5.800%, 2/15/07 Aa1 No Opt. Call 4,297,240
2,500,000 6.000%, 2/15/11 Aa1 No Opt. Call 2,709,900
1,560,000 6.000%, 2/15/13 Aa1 No Opt. Call 1,685,221
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) Aaa 3/98 at 100 1,047,150
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) BBB+ No Opt. Call 6,776,286
6,500,000 Pollution Control Financing Authority of Camden
County (Camden County, New Jersey), Solid Waste
Disposal and Resource Recovery System Bonds,
Series 1991 D, 7.250%, 12/01/10 BBB+ 12/01 at 102 6,717,620
1,275,000 Camden County Improvement Authority
(Camden County, New Jersey), County
Guaranteed Lease Revenue Bonds, Series of
1995, 5.625%, 10/01/15 Aaa 10/05 at 102 1,277,933
5,250,000 Cape May County Municipal Utilities
Authority, Sewer Revenue Refunding Bonds,
Series 1992-A, 5.750%, 1/01/16 Aaa 1/03 at 102 5,318,775
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 Aaa 4/06 at 102 999,320
1,000,000 The Evesham Municipal Utilities Authority
(Burlington County, New Jersey), Revenue Bonds,
1993 Series A, 5.600%, 7/01/15 Aaa 7/03 at 102 997,150
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) Aaa 6/99 at 100 268,715
1,000,000 The Jersey City Sewerage Authority
(Hudson County, New Jersey), Sewer
Revenue Refunding Bonds (Series 1993),
6.250%, 1/01/14 Aaa No Opt. Call 1,100,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 945,000 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 N/R 4/97 at 101 $ 959,062
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 Aa 2/97 at 100 750,045
1,000,000 6.050%, 1/01/12 Aa No Opt. Call 1,000,070
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) Aaa 4/02 at 102 1,001,940
3,500,000 6.700%, 4/01/13 (Alternative Minimum Tax) Aaa 4/02 at 102 3,505,880
785,000 County of Morris, New Jersey, General
Improvement Bonds of 1993, 5.125%, 5/13/11 Aaa No Opt. Call 780,141
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 Aaa No Opt. Call 571,320
4,000,000 County of Passaic, State of New Jersey, General
Obligation Refunding Bonds, Series 1993,
5.125%, 9/01/12 Aaa No Opt. Call 3,953,080
1,040,000 Passaic Valley Sewerage Commissioners (State of
New Jersey), Sewer System Bonds, Series D,
5.750%, 12/01/10 Aaa 12/02 at 102 1,072,261
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 N/R No Opt. Call 475,899
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 Aaa 6/03 at 102 2,525,186
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) Aaa 5/97 at 102 2,069,720
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 A+ No Opt. Call 436,643
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 Aaa No Opt. Call 625,885
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
Sparta Township School District, General
Obligation Bonds (Unlimited Tax):
$ 1,100,000 5.800%, 9/01/19 AAA 9/06 at 100 $ 1,122,825
1,100,000 5.800%, 9/01/20 AAA 9/06 at 100 1,122,000
1,100,000 5.800%, 9/01/21 AAA 9/06 at 100 1,121,175
1,000,000 The Stony Brook Regional Sewerage Authority
(Princeton, New Jersey), Revenue Refunding
Bonds, 1993 Series B, 5.450%, 12/01/12 Aa No Opt. Call 1,008,120
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) Aaa 12/98 at 102 3,817,730
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) BB 6/02 at 102 7,557,981
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 Aaa No Opt. Call 1,565,474
1,585,000 The Warren County (Pequest River), Municipal
Utilities Authority, Wastewater Revenue
Refunding Bonds, Series 1993, Insured,
5.300%, 12/01/11 Aaa 12/03 at 101 1,579,261
2,250,000 Western Monmouth Utilities Authority
(Monmouth County, New Jersey), Revenue
Refunding Bonds, 1995 Series A,
5.600%, 2/01/14 Aaa 2/05 at 102 2,285,054
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) Aaa 10/04 at 101 3,289,980
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) Aaa 5/05 at 101 1,240,523
2,500,000 5.750%, 11/01/14 (Alternative Minimum Tax) Aaa 5/05 at 101 2,528,900
1,500,000 Port Authority of New York and New Jersey,
Consolidated Bonds, One Hundred and Sixth
Series, 6.000%, 7/01/16 (Alternative
Minimum Tax) AA- 7/06 at 101 1,550,384
2,500,000 Port Authority of New York and New Jersey,
One Hundredth Series, 5.750%, 12/15/20 Aaa 6/05 at 101 2,520,450
Delaware River Port Authority, Revenue Bonds,
Series of 1995:
1,000,000 5.400%, 1/01/14 Aaa 1/06 at 102 993,740
15,995,000 5.500%, 1/01/26 Aaa 1/06 at 102 15,778,267
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 5,000,000 Commonwealth of Puerto Rico, Public Improvement
Bonds of 1995 (General Obligation Bonds),
5.750%, 7/01/24 Aaa 7/05 at 101 1/2 $ 5,096,700
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 A 7/03 at 101 1/2 8,109,490
3,500,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series R, 6.250%, 7/01/17 Baa1 7/02 at 101 1/2 3,615,080
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 A2 12/03 at 103 6,432,720
- -------------------------------------------------------------------------------------------------------------------
$249,670,000 Total Investments - (cost $251,387,348) - 97.2% 257,538,622
=================--------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.1%
$ 600,000 New Jersey Economic Development Authority,
Dock Facility Revenue Refunding Bonds
(Bayonne/IMTT - Bayonne Project), Series
1993A, Variable Rate Demand Bonds,
4.700%, 12/01/27+ VMIG-1 600,000
2,400,000 The Port Authority of New York and New Jersey,
Versatile Structure Obligations, Series 2,
Variable Rate Demand Bonds,
5.250%, 5/01/19+ A-1+ 2,400,000
- -------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Total Temporary Investments - 1.1% 3,000,000
=================--------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 4,337,685
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $264,876,307
===================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 53 $127,403,034 50%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 28,923,009 11
PORTFOLIO OF A+ A1 9 28,726,629 11
INVESTMENTS A, A- A, A2, A3 8 25,994,335 10
(EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 5 26,978,831 10
TEMPORARY BB+, BB, BB- Bal, Ba, Ba2, Ba3 1 7,557,981 3
INVESTMENTS): Non-rated Non-rated 4 11,954,803 5
- -------------------------------------------------------------------------------------------------------------------
TOTAL 92 $257,538,622 100%
===================================================================================================================
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 6,000,000 Commonwealth of Pennsylvania General Obligation
Bonds, First Series of 1992, 6.375%, 9/15/11 AA- 3/02 at 101 1/2 $ 6,401,820
4,970,000 Pennsylvania Higher Education Assistance Agency,
Student Loan Adjustable Rate Tender Revenue
Refunding Bonds, 1985 Series A, 6.800%, 12/01/00 Aaa No Opt. Call 5,320,832
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) Aaa 9/01 at 102 4,261,080
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) Aaa 9/02 at 102 3,116,400
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) N/R 10/98 at 102 2,183,120
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 Aa 7/99 at 102 10,677,336
5,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series W,
7.625%, 10/01/10 (Alternative Minimum Tax) AA+ 10/99 at 102 5,252,750
5,855,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1992-33,
6.900%, 4/01/17 AA+ 4/02 at 102 6,175,854
1,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1992-34B,
7.000%, 4/01/24 (Alternative Minimum Tax) AA+ 4/02 at 102 1,048,400
2,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1995-46,
6.200%, 10/01/14 (Alternative Minimum Tax) AA+ 10/05 at 102 2,040,660
1,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1996-48,
6.150%, 4/01/25 (Alternative Minimum Tax) AA+ 4/06 at 102 1,012,030
5,725,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1996-49,
6.450%, 4/01/25 (Alternative Minimum Tax) AA+ 4/06 at 102 5,862,286
4,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1996-50B,
6.350%, 10/01/27 (Alternative Minimum Tax) AA+ 4/06 at 102 4,086,600
3,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1996-52B,
6.250%, 10/01/24 (Alternative Minimum Tax) AA+ 4/06 at 102 3,040,770
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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) Aaa 12/01 at 102 $ 5,118,705
1,650,000 Pennsylvania Turnpike Commission, Pennsylvania
Turnpike Revenue Bonds, Series N of 1991,
6.500%, 12/01/13 A1 12/01 at 102 1,737,467
735,000 Pennsylvania Turnpike Commission, Pennsylvania
Turnpike Revenue Bonds, Series O of 1992,
5.500%, 12/01/17 Aaa 12/02 at 102 718,448
3,825,000 The Pennsylvania State University Bonds Refunding
Series 1992, 6.250%, 3/01/11 AA- 3/01 at 102 4,012,272
8,000,000 County of Allegheny, Pennsylvania Airport Revenue
Bonds, Series 1988C (Greater Pittsburgh
International Airport), 8.200%, 1/01/08
(Alternative Minimum Tax) Aaa 1/98 at 102 8,451,120
5,785,000 County of Allegheny, Pennsylvania Airport Revenue
Bonds, Series 1988D (Greater Pittsburgh
International Airport), 7.750%, 1/01/19
(Alternative Minimum Tax) Aaa 1/98 at 100 5,975,731
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) Aaa 1/02 at 102 2,674,925
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 BBB+ 10/01 at 100 6,558,048
14,180,000 Allegheny County Residential Finance Authority,
Single Family Mortgage Revenue Bonds,
1994 Series Y, 0.000%, 5/01/27
(Alternative Minimum Tax) Aaa No Opt. Call 1,738,610
295,000 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) A 12/01 at 102 313,653
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 Baa3 9/99 at 102 5,273,400
1,355,000 Bensalem Township School District, Bucks County,
Pennsylvania General Obligation Bonds, Series of
1996, 5.850%, 7/15/12 Aaa 7/06 at 100 1,404,349
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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) Aaa 9/97 at 100 $ 1,837,692
2,060,000 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) A+ No Opt. Call 2,208,856
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) Aaa 11/01 at 100 3,287,352
4,000,000 6.250%, 11/15/21 (Pre-refunded to 11/15/01) Aaa 11/01 at 100 4,318,360
8,250,000 Blair County Hospital Authority, Hospital First
Mortgage Revenue Bonds, Series of 1989
(Mercy Hospital, Sublessee), 8.125%, 2/01/14
(Pre-refunded to 2/01/99) N/R 2/99 at 102 9,048,023
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 Aaa 6/01 at 102 5,515,000
4,500,000 Delaware County Authority (Commonwealth of
Pennsylvania), University Revenue Bonds,
Series of 1991 (Villanova University),
6.900%, 8/01/16 Aaa 8/01 at 100 4,902,750
3,750,000 Delaware County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds,
1991 Series A (Philadelphia Electric Company
Project), 7.375%, 4/10/21 Baa1 4/01 at 102 4,012,313
3,400,000 Erie County Hospital Authority, Hospital Revenue
Bonds (Hamot Medical Center), 1991 Series A,
7.100%, 2/15/10 Aaa 2/01 at 102 3,740,306
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 Aaa 11/01 at 100 4,740,717
2,875,000 Franklin County Industrial Development Authority
Hospital Revenue Refunding Bonds (The
Chambersburg Hospital), Series of 1991,
6.700%, 7/01/08 Aaa 7/99 at 102 3,071,248
400,000 Greater Lebanon Refuse Authority, Lebanon
County, Pennsylvania Solid Waste Revenue Bonds,
Series of 1992, 7.000%, 11/15/04 A- 11/02 at 100 431,808
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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) Aaa 11/04 at 100 $ 2,277,620
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 AAA 6/02 at 100 3,698,690
7,805,000 Lehigh County Industrial Development Authority
Pollution Control Revenue Bonds (Pennsylvania
Power and Light Co), Series 1994-A,
5.500%, 2/15/27 Aaa 2/04 at 102 7,608,392
4,000,000 Lehigh County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds,
1995 Series A (Pennsylvania Power and Light
Company Project), 6.150%, 8/01/29 Aaa 8/05 at 102 4,201,360
4,000,000 Lower Pottsgrove Township Authority, Montgomery
Country, Pennsylvania, (Guaranteed by the
Township of Lower Pottsgrove), 6.700%, 11/01/16
(Pre-refunded to 11/01/99) Aaa 11/99 at 100 4,268,080
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) A3 10/02 at 102 3,219,780
3,550,000 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) A3 12/02 at 102 3,782,419
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) Aaa 12/04 at 102 5,674,000
3,130,000 McKean County Solid Waste Authority (McKean
County, Pennsylvania), Guaranteed Solid
Waste Revenue Bonds, Series of 1992,
6.650%, 1/01/12 Aaa 1/02 at 100 3,372,481
3,225,000 Montgomery County Higher Education and Health
Authority Mortgage Revenue Bonds, Series of 1996
(Waverly Heights Project), 6.375%, 1/01/26 BBB 1/06 at 101 3,240,190
5,500,000 Montgomery County Industrial Development
Authority (Pennsylvania), Resource Recovery
Revenue Bonds (Montgomery County Project),
Series 1989, 7.500%, 1/01/12 A- 1/99 at 100 5,927,790
2,000,000 North Penn School District Montgomery and Bucks
Counties, Pennsylvania, General Obligation Bonds,
Series of 1996, 5.400%, 3/01/13 (DD) Aa 3/06 at 100 1,998,780
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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) Aaa 7/99 at 102 $ 1,085,440
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) AA 7/99 at 102 5,311,851
1,250,000 Philadelphia Authority for Industrial Development
Revenue Bonds, Series of 1992 (National Board of
Medical Examiners Project), 6.750%, 5/01/12 A+ 5/02 at 102 1,358,138
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) Aaa 7/97 at 102 3,482,847
4,270,000 City of Philadelphia, Pennsylvania Gas Works
Revenue Bonds, Thirteenth Series,
7.700%, 6/15/21 (Pre-refunded to 6/15/01) Aaa 6/01 at 102 4,900,039
8,530,000 The Hospitals and Higher Education Facilities
Authority of Philadelphia Refunding Revenue
Bonds, Saint Agnes Medical Center Project
(FHA Insured Mortgage), Series 1991,
7.250%, 8/15/31 (Pre-refunded to 8/15/01) Aa 8/01 at 102 9,627,811
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) Aaa 7/01 at 102 3,600,773
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) Aaa 5/02 at 100 3/4 936,063
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) AAA 8/01 at 100 11,748,275
1,410,000 The Hospitals and Higher Education Facilities
Authority of Philadelphia Hospital Revenue Bonds,
The Children's Hospital of Philadelphia Project,
Series Aof 1988, 7.000%, 7/01/15
(Pre-refunded to 7/01/97) Aaa 7/97 at 100 1,434,139
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) A- 12/01 at 102 9,966,440
3,520,000 The Hospitals and Higher Education Facilities
Authority of Philadelphia Hospital Revenue
Refunding Bonds, Series of 1991 (Magee
Rehabilitation Hospital Project), 7.000%, 12/01/10 Aaa 12/01 at 102 3,931,699
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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) Aaa 2/02 at 102 $ 4,532,878
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 A- 8/02 at 102 695,022
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) Aaa 11/01 at 102 1,698,270
9,900,000 7.125%, 11/15/18 (Pre-refunded to 11/15/01) Aaa 11/01 at 102 11,219,274
2,865,000 Urban Redevelopment Authority of Pittsburgh
Mortgage Revenue Bonds, 1991 Series G,
7.050%, 4/01/23 (Alternative Minimum Tax) A1 10/01 at 102 2,974,930
1,000,000 Urban Redevelopment Authority of Pittsburgh,
Redevelopment Mortgage Revenue Bonds,
1992 Series C, 7.125%, 8/01/13
(Alternative Minimum Tax) A 8/02 at 102 1,048,230
1,635,000 Urban Redevelopment Authority of Pittsburgh
Mortgage Revenue Bonds, 1996 Series C,
6.550%, 4/01/28 (Alternative Minimum Tax) A1 4/06 at 102 1,656,206
3,000,000 The Pittsburgh Water and Sewer Authority, Water
and Sewer System Revenue Refunding Bonds,
Series of 1986, 7.625%, 9/01/04 Aaa No Opt. Call 3,434,250
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) Aaa 9/01 at 102 3,585,725
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 Aaa 7/02 at 102 2,710,825
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 Aaa 12/01 at 103 6,182,660
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) N/R 6/00 at 102 4,143,433
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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 A- 3/02 at 102 $ 3,059,935
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) Aaa 10/01 at 100 9,406,742
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 Aaa 3/01 at 100 5,331,700
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) Aaa 8/98 at 100 2,674,082
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) Aa 9/01 at 100 3,855,180
3,000,000 Warrington Township Municipal Authority, Bucks
County, Pennsylvania, Water and Sewer Revenue
Bonds, Series of 1991, 7.100%, 12/01/21
(Pre-refunded to 11/15/15) Aaa 11/15 at 100 3,523,020
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) Aa1 1/01 at 100 5,412,950
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 Aaa No Opt. Call 7,616,593
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) Aaa 8/01 at 100 5,467,400
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 N/R 12/00 at 100 695,671
620,000 The General Municipal Authority of the City of
Wilkes-Barre, College Misericordia Revenue Bonds,
Refunding Series B of 1992, 7.750%, 12/01/12 N/R 12/02 at 102 667,110
- -------------------------------------------------------------------------------------------------------------------
$335,815,000 Total Investments - (cost $321,579,098) - 97.0% 349,816,274
=================--------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.1%
$ 1,400,000 Allegheny Country Hospital Development Authority,
(Allegheny County, Pennsylvania), Health Center
Revenue Bonds, Series 1990 A, (Presbyterian-
University Health System, Inc.), Variable Rate
Demand Bonds, 3.900%, 3/01/20+ VMIG-1 $ 1,400,000
2,500,000 Allegheny County Hospital Development Authority,
(Allegheny County, Pennsylvania), Health Center
Revenue Bonds, Series 1990 D, (Presbyterian-
University Health System, Inc.), Variable Rate
Demand Bonds, 3.900%, 3/01/20+ VMIG-1 2,500,000
- -------------------------------------------------------------------------------------------------------------------
$ 3,900,000 Total Temporary Investment - 1.1% 3,900,000
=================--------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 7,033,767
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $360,750,041
===================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 46 $199,796,942 57%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, A3 16 75,817,350 22
PORTFOLIO OF A+ A1 5 9,935,597 3
INVESTMENTS A, A- A, A2, A3 9 28,445,077 8
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 19,083,951 5
TEMPORARY Non-rated Non-rated 5 16,737,357 5
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 85 $349,816,274 100%
===================================================================================================================
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
(DD) Security purchased on a delayed delivery 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 Commonwealth of Pennsylvania General Obligation
Bonds, Third Series of 1993, 5.000%, 9/01/12 AA- 9/03 at 102 $ 1,923,160
6,500,000 Commonwealth of Pennsylvania, Certificates of
Participation, Series 1993A, 5.250%, 7/01/10 Aaa 7/03 at 102 6,435,000
10,000,000 Pennsylvania Higher Education Assistance Agency
Student Loan Revenue Bonds, 1988 Series D,
6.050%, 1/01/19 (Alternative Minimum Tax) Aaa 1/03 at 102 10,162,600
11,500,000 Pennsylvania Higher Education Assistance Agency
Student Loan Revenue Bonds, 1984 Series A,
4.625%, 12/01/00 AAA No Opt. Call 11,600,050
1,760,000 Pennsylvania Higher Educational Facilities Authority,
College and University Revenue Bonds, 9th Series,
7.625%, 7/01/15 Aaa No Opt. Call 2,051,773
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 AA- No Opt. Call 1,991,469
1,640,000 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 Aaa 9/03 at 102 1,596,491
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 Aa 1/06 at 101 9,733,756
6,365,000 Pennsylvania Higher Education Facilities Authority,
Revenue Bonds (Thomas Jefferson University-Life
Sciences Building Project), 1989 Series A,
6.000%, 7/01/19 Aa 7/99 at 102 6,423,558
7,000,000 Pennsylvania Higher Educational Facilities Authority,
(Commonwealth of Pennsylvania), Revenue Bonds,
State System of Higher Education, Series I,
5.700%, 6/15/15 Aaa 6/03 at 100 7,046,690
4,615,000 Pennsylvania Higher Educational Facilities Authority
(Commonwealth of Pennsylvania), Revenue Bonds,
(Widener University), 1993 Series A,
5.250%, 7/15/11 AAA 7/03 at 102 4,536,637
9,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1993-37B,
5.600%, 10/01/25 (Alternative Minimum Tax) AA+ 10/03 at 102 8,639,460
5,000,000 Pennsylvania Housing Finance Agency, Rental
Housing Refunding Bonds, Issue 1992,
6.400%, 7/01/12 Aaa 7/02 at 102 5,211,200
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 9,000,000 Pennsylvania Housing Finance Agency, Rental
Housing Refunding Bonds, Issue 1993,
5.800%, 7/01/18 Aaa 7/03 at 102 $ 9,059,940
2,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1993-37A,
5.450%, 10/01/17 AA+ 10/03 at 102 1,939,420
1,120,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1996-47,
6.750%, 10/01/06 (Alternative Minimum Tax) AA+ No Opt. Call 1,254,075
3,305,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1996-51,
6.375%, 4/01/28 (Alternative Minimum Tax) AA+ 4/06 at 102 3,380,519
Pennsylvania Industrial Development Authority,
Economic Development Revenue Bonds, Series 1994:
2,000,000 7.000%, 7/01/06 Aaa No Opt. Call 2,318,460
1,550,000 7.000%, 1/01/07 Aaa No Opt. Call 1,792,296
1,000,000 7.000%, 7/01/07 Aaa No Opt. Call 1,162,290
5,895,000 Pennsylvania Turnpike Commission, Pennsylvania
Turnpike Revenue Bonds, Series O of 1992,
5.500%, 12/01/17 Aaa 12/02 at 102 5,762,245
8,850,000 The Pennsylvania State University Bonds, Second
Refunding Series 1992, 5.500%, 8/15/16 AA- 8/02 at 102 8,749,995
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) Aaa 1/03 at 102 4,333,635
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 BBB 6/02 at 102 785,055
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 Aaa 11/02 at 100 3,129,690
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 Aaa 5/06 at 102 8,675,525
3,500,000 Bangor Area School District Northampton County,
Pennsylvania, General Obligation Bonds,
Series B of 1996, 5.500%, 3/15/18 Aaa 3/06 at 100 3,454,430
2,500,000 Bensalem Township School District, Bucks County,
Pennsylvania General Obligation Bonds,
Series of 1996, 5.875%, 7/15/16 Aaa 7/06 at 100 2,564,125
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 9,065,000 Bethlehem Area School District, Northampton and
Lehigh Counties, Pennsylvania, General
Obligation Bonds, Series of 1993, 5.600%, 9/01/12 Aaa 3/01 at 100 $ 9,156,285
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) Aaa 11/02 at 100 4,094,424
3,100,000 6.100%, 11/15/21 (Pre-refunded to 11/15/02) Aaa 11/02 at 100 3,353,425
4,345,000 Bucks County Redevelopment Authority,
Pennsylvania, Second Lien Multifamily Mortgage
Revenue Bonds, Section 8 Assisted (Country
Commons Apartments), Series 1993A,
6.200%, 8/01/14 (Alternative Minimum Tax) A 8/03 at 100 4,389,058
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 B1993,
5.400%, 12/01/12 Aaa 12/03 at 100 3,002,910
4,300,000 Delaware County Authority, Revenue Bonds
Series 1990 (Elwyn Inc Project),
8.350%, 6/01/15 (Pre-refunded to 6/01/00) Baa 6/00 at 102 4,895,120
Delaware County Authority (Commonwealth of
Pennsylvania), Hospital Revenue Bonds Series of
1993 (Crozer-Chester Medical Center):
1,000,000 6.000%, 12/15/09 Baa1 12/03 at 102 1,008,570
3,085,000 6.000%, 12/15/20 Baa1 12/03 at 102 3,037,522
2,100,000 Delaware County Authority (Commonwealth of
Pennsylvania), Hospital Revenue Bonds, Series of
1994 (Crozer-Chester Medical Center):
5.300%, 12/15/11 Aaa 12/03 at 102 2,061,696
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 Aaa 6/02 at 102 2,155,515
1,500,000 Fort LeBoeuf School District (Erie County,
Pennsylvania), General Obligation Bonds,
Series A of 1993, 5.800%, 1/01/16 Aaa 1/03 at 100 1,517,010
2,000,000 Governor Mifflin School District, Berks County,
Pennsylvania, General Obligation Bonds,
Second Series of 1993, 5.400%, 9/15/12 Aaa 9/03 at 100 2,000,820
3,500,000 Hollidaysburg Sewer Authority Guaranteed Sewer
Revenue Bonds, Series of 1993, 6.100%, 1/01/23 Aaa 1/03 at 100 3,605,210
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 Aaa 4/03 at 100 1,370,156
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 Aaa No Opt. Call $ 1,372,006
500,000 5.300%, 11/15/07 Aaa No Opt. Call 507,035
10,000,000 Lehigh County Industrial Development Authority
Pollution Control Revenue Refunding Bonds,
1992 Series A (Pennsylvania Power and Light
Company Project), 6.400%, 11/01/21 Aaa 11/02 at 102 10,673,700
1,500,000 Ligonier Valley School District (Westmoreland
County, Pennsylvania), General Obligation Bonds,
Series of 1994, 6.000%, 3/01/23 Aaa 3/04 at 100 1,543,350
1,780,000 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 Aaa 7/03 at 100 1,802,606
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) A3 10/02 at 102 7,888,461
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) A3 12/02 at 102 4,794,615
6,305,000 County of Montgomery, Pennsylvania, General
Obligation Bonds, Series B of 1996,
5.375%, 10/15/21 Aaa 10/06 at 100 6,194,284
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 Aaa 6/03 at 102 2,577,225
2,165,000 Montgomery County Industrial Development
Authority Health Facilities Revenue Bonds,
Series of 1993 (ECRI Project), 6.850%, 6/01/13 N/R 6/03 at 102 2,235,298
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 Aaa 12/01 at 102 4,031,365
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) A 4/04 at 102 2,084,380
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 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) Aaa 11/04 at 101 $ 5,226,705
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) N/R 10/03 at 102 5,424,980
4,830,000 Philadelphia Authority for Industrial Development
Project Revenue Refunding Bonds (PGH
Development Corporation), Series of 1993,
5.250%, 7/01/17 AA 7/03 at 102 4,597,194
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 BBB+ 8/03 at 102 4,047,760
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 BBB+ 7/03 at 102 1,705,603
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 Aaa 5/04 at 102 1,067,692
2,000,000 The School District of Philadelphia, Pennsylvania,
General Obligation Refunding Bonds,
Series A of 1995, 6.250%, 9/01/09 Aaa No Opt. Call 2,213,500
5,500,000 The School District of Philadelphia, Pennsylvania,
General Obligation Refunding Bonds,
Series A of 1993, 5.200%, 7/01/03 Aaa No Opt. Call 5,694,205
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) AAA 8/01 at 102 1,142,620
3,000,000 City of Philadelphia, Pennsylvania, Water and
Wastewater Revenue Bonds,
Series 1995, 6.750%, 8/01/05 Aaa No Opt. Call 3,395,040
City of Philadelphia, Pennsylvania, Water and
Wastewater Revenue Bonds, Series 1993:
2,335,000 5.750%, 6/15/13 Aaa 6/03 at 102 2,376,353
2,300,000 5.500%, 6/15/14 Aaa 6/03 at 102 2,292,272
5,500,000 5.000%, 6/15/16 Aaa 6/03 at 100 5,114,835
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
The Hospitals and Higher Education Facilities
Authority of Philadelphia Hospital Revenue Bonds,
Series of 1993 (Presbyterian Medical Center
of Philadelphia):
$ 1,000,000 6.500%, 12/01/11 AAA 12/03 at 102 $ 1,084,540
3,690,000 6.650%, 12/01/19 AAA 12/03 at 102 4,154,534
2,750,000 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) Aaa 2/02 at 102 3,040,345
8,750,000 The Hospitals and Higher Education Facilities
Authority of Philadelphia Hospital Revenue Bonds,
Series A of 1993 (Temple University Hospital),
6.625%, 11/15/23 A- 11/03 at 102 9,069,463
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 Aa 2/03 at 102 5,014,813
4,300,000 The Philadelphia Municipal Authority, Philadelphia,
Pennsylvania, Justice Lease Revenue Bonds,
1991 Series B, 7.125%, 11/15/18
(Pre-refunded to 11/15/01) Aaa 11/01 at 102 4,873,018
1,750,000 Pine-Richland School District (Allegheny County,
Pennsylvania), General Obligation Bonds,
Series A of 1993, 6.100%, 9/01/18
(Pre-refunded to 9/01/03) Aaa 9/03 at 100 1,906,030
2,460,000 Urban Redevelopment Authority of Pittsburgh
Mortgage Revenue Bonds, 1992 Series C-1,
6.800%, 10/01/25 (Alternative Minimum Tax) A1 4/03 at 102 2,539,483
1,375,000 Urban Redevelopment Authority of Pittsburgh
Mortgage Revenue Bonds, 1992 Series D,
6.500%, 4/01/17 A1 4/03 at 102 1,418,161
615,000 Urban Redevelopment Authority of Pittsburgh
Mortgage Revenue Bonds, 1994 Series B, 6.950%,
10/01/10 (Alternative Minimum Tax) A1 4/04 at 102 652,798
1,500,000 Urban Redevelopment Authority of Pittsburgh
Mortgage Revenue Bonds, 1996 Series C,
6.500%, 10/01/23 (Alternative Minimum Tax) A1 4/06 at 102 1,518,300
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) Aaa 9/01 at 100 4,010,224
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,500,000 Schuylkill Valley School District Berks County,
Pennsylvania, General Obligation Bonds,
Series of 1993, 5.850%, 4/15/13 Aaa 4/03 at 100 $ 2,558,150
1,850,000 South Fork Municipal Authority (Cambria County,
Pennsylvania), Hospital Revenue Bonds,
Series 1993A (Lee Hospital Project),
5.500%, 7/01/11 A- 7/03 at 102 1,770,745
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 Aaa 3/03 at 100 3,396,045
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 Aa 7/03 at 100 2,359,985
4,000,000 Wallenpaupack Area School District, Wayne and
Pike Counties, Pennsylvania, General Obligation
Bonds, Series 1993, 5.500%, 4/01/11 Aaa 4/01 at 100 4,033,520
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 Aaa No Opt. Call 2,305,941
1,615,000 The General Municipal Authority of the City of
Wilkes-Barre, College Misericordia Revenue Bonds,
Refunding Series B of 1992, 7.750%, 12/01/12 N/R 12/02 at 102 1,737,723
- -------------------------------------------------------------------------------------------------------------------
$319,625,000 Total Investments - (cost $320,088,803) - 96.7% 328,808,167
=================--------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.6%
$ 3,600,000 Allegheny County Hospital Development Authority,
(Allegheny County, Pennsylvania), Health Center
Revenue Bonds, Series 1990 A, (Presbyterian-
University Health System, Inc.), Variable Rate
Demand Bonds, 3.900%, 3/01/20+ VMIG-1 3,600,000
300,000 Allegheny County Hospital Development Authority,
(Allegheny County, Pennsylvania), Health Center
Revenue Bonds, Series 1990 B, (Presbyterian-
University Health System, Inc.), Variable Rate
Demand Bonds, 3.900%, 3/01/20+ VMIG-1 300,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 900,000 Allegheny County Hospital Development Authority,
(Allegheny County, Pennsylvania), Health Center
Revenue Bonds, Series 1990 C, (Presbyterian-
University Health System, Inc.), Variable Rate
Demand Bonds, 3.900%, 3/01/20+ VMIG-1 $ 900,000
600,000 Schuykill County Industrial Development Authority
Resource Recovery (Northeastern Power Co. Project),
1985, Variable Rate Demand Bonds,
5.100% 12/01/11+ A-1 600,000
- -------------------------------------------------------------------------------------------------------------------
$ 5,400,000 Total Temporary Investments - 1.6% 5,400,000
=================--------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 5,696,825
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $339,904,992
===================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 55 $211,797,668 64%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 56,007,404 17
PORTFOLIO OF A+ A1 4 6,128,742 2
INVESTMENTS A, A- A, A2, A3 6 29,996,722 9
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 6 15,479,630 5
TEMPORARY Non-rated Non-rated 3 9,398,001 3
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 86 $328,808,167 100%
===================================================================================================================
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
(Unaudited)
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $422,878,198 $257,538,622 $349,816,274 $328,808,167
Temporary investments in short-term municipal
securities, at amortized cost (note 1) -- 3,000,000 3,900,000 5,400,000
Receivables:
Interest 7,933,003 4,927,830 6,677,773 5,530,707
Investments sold 5,005,938 330,000 4,250,000 1,590,000
Other assets 10,784 27,885 14,232 35,304
------------ ------------ ------------ ------------
Total assets 435,827,923 265,824,337 364,658,279 341,364,178
------------ ------------ ------------ ------------
LIABILITIES
Cash overdraft 388,853 256,032 793,294 739,936
Payable for investments purchased 4,175,906 -- 1,993,980 --
Accrued expenses:
Management fees (note 6) 232,257 144,478 195,491 184,355
Other 171,160 205,079 209,086 211,488
Capital gains distribution payable -- -- 53,104 --
Preferred share dividends payable 41,291 43,233 74,933 49,504
Common share dividends payable 541,141 299,208 588,350 273,903
------------ ------------ ------------ ------------
Total liabilities 5,550,608 948,030 3,908,238 1,459,186
------------ ------------ ------------ ------------
Net assets (note 7) $430,277,315 $264,876,307 $360,750,041 $339,904,992
============ ============ ============ ============
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 19,487,939 11,858,499 15,702,720 15,747,463
============ ============ ============ ============
Net asset value per Common share outstanding
(net assets less Preferred shares at
liquidation value,
divided by Common shares outstanding) $ 15.41 $ 14.61 $ 15.97 $ 14.09
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six months ended December 31, 1996
(Unaudited)
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $13,169,436 $ 7,555,519 $11,360,089 $ 9,612,017
------------ ------------ ------------ ------------
Expenses:
Management fees (note 6) 1,368,138 850,215 1,153,504 1,083,182
Preferred shares--auction fees 162,501 114,500 137,500 147,625
Preferred shares--dividend disbursing agent fees 11,667 21,250 13,333 21,250
Shareholders' servicing agent fees and expenses 27,667 15,267 30,400 24,241
Custodian's fees and expenses 36,330 28,365 33,220 32,409
Directors'/Trustees' fees and expenses (note 6) 1,799 1,259 1,579 1,499
Professional fees 8,204 6,301 7,633 6,506
Shareholders' reports--printing and mailing expenses 54,506 35,087 47,490 52,728
Stock exchange listing fees 12,339 8,085 8,222 8,091
Investor relations expense 11,829 6,853 11,086 9,295
Other expenses 15,987 10,378 14,129 9,582
------------ ------------ ------------ ------------
Total expenses 1,710,967 1,097,560 1,458,096 1,396,408
------------ ------------ ------------ ------------
Net investment income 11,458,469 6,457,959 9,901,993 8,215,609
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 3) 45,045 (158,090) 299,165 (561,925)
Net change in unrealized appreciation or depreciation
of investments 6,648,383 5,186,910 3,844,869 8,474,200
------------ ------------ ------------ ------------
Net gain from investments 6,693,428 5,028,820 4,144,034 7,912,275
------------ ------------ ------------ ------------
Net increase in net assets from operations $18,151,897 $11,486,779 $14,046,027 $16,127,884
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES
IN NET ASSETS
(Unaudited)
NQJ NNJ
Six months ended Year ended Six months ended Year ended
12/31/96 6/30/96 12/31/96 6/30/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 11,458,469 $ 22,681,854 $ 6,457,959 $ 12,823,792
Net realized gain (loss) from investment
transactions (notes 1 and 3) 45,045 (380,328) (158,090) 278,325
Net change in unrealized appreciation or
depreciation of investments 6,648,383 373,323 5,186,910 2,009,677
------------ ------------ ------------ ------------
Net increase in net assets from operations 18,151,897 22,674,849 11,486,779 15,111,794
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (9,201,509) (18,289,306) (4,956,856) (9,623,156)
Preferred shareholders (2,081,856) (4,447,642) (1,361,254) (3,031,790)
From accumulated net realized gains from
investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders (11,283,365) (22,736,948) (6,318,110) (12,654,946)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions 1,070,654 1,456,662 -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions 1,070,654 1,456,662 -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 7,939,186 1,394,563 5,168,669 2,456,848
Net assets at beginning of period 422,338,129 420,943,566 259,707,638 257,250,790
------------ ------------ ------------ ------------
Net assets at end of period $430,277,315 $422,338,129 $264,876,307 $259,707,638
============ ============ ============ ============
Balance of undistributed net investment
income at end of period $ 880,963 $ 705,859 $ 819,227 $ 679,378
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
NQP NPY
Six months ended Year ended Six months ended Year ended
12/31/96 6/30/96 12/31/96 6/30/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 9,901,993 $ 19,852,780 $ 8,215,609 $ 16,353,600
Net realized gain (loss) from investment
transactions (notes 1 and 3) 299,165 955,976 (561,925) 289,626
Net change in unrealized appreciation or
depreciation of investments 3,844,869 (2,273,958) 8,474,200 5,015,802
------------ ------------ ------------ ------------
Net increase in net assets from operations 14,046,027 18,534,798 16,127,884 21,659,028
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (7,946,628) (16,324,381) (6,078,527) (12,306,677)
Preferred shareholders (1,767,671) (3,855,705) (2,007,234) (4,260,276)
From accumulated net realized gains from
investment transactions:
Common shareholders (395,040) (473,871) -- --
Preferred shareholders (90,536) (132,928) -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders (10,199,875) (20,786,885) (8,085,761) (16,566,953)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions 1,080,403 2,244,579 -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions 1,080,403 2,244,579 -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 4,926,555 (7,508) 8,042,123 5,092,075
Net assets at beginning of period 355,823,486 355,830,994 331,862,869 326,770,794
------------ ------------ ------------ ------------
Net assets at end of period $360,750,041 $355,823,486 $339,904,992 $331,862,869
============ ============ ============ ============
Balance of undistributed net investment income at
end of period $ 692,575 $ 504,881 $ 413,548 $ 283,700
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL
STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At December 31, 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.
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
December 31, 1996, NQJ and NQP had outstanding
purchase commitments of $4,175,906 and $1,993,980,
respectively. There were no such purchase commitments
in either of the other Funds.
<PAGE>
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. 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.
Dividends and Tax-exempt net investment income is declared as a
Distributions to dividend monthly and payment is made or reinvestment
Shareholders is credited to shareholder accounts after month-end.
Net realized 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 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 net ordinary
taxable income from investment transactions, where
applicable.
<PAGE>
Preferred Shares The 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, for each
Fund, at December 31, 1996, were 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>
Derivative Financial In October 1994, the Financial Accounting Standards
Instruments Board (FASB) issued Statement of Financial Accounting
Standards No. 119, Disclosure about Derivative
Financial Instruments and Fair Value of Financial
Instruments, which prescribes disclosure requirements
for transactions in certain derivative financial
instruments including futures, forward, swap, and
option contracts, and other financial instruments
with similar characteristics. Although the Funds are
authorized to invest in such financial instruments,
and may do so in the future, they did not make any
such investments during the six months ended
December 31, 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.
<PAGE>
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
NQJ NNJ
Six months ended Year ended Six months ended Year ended
12/31/96 6/30/96 12/31/96 6/30/96
<S> <C> <C> <C> <C>
Shares issued to shareholders due to
reinvestment of distributions 69,295 94,142 -- --
------ ------ ----- -----
Net increase 69,295 94,142 -- --
====== ====== ===== =====
<CAPTION>
NQP NPY
Six months ended Year ended Six months ended Year ended
12/31/96 6/30/96 12/31/96 6/30/96
<S> <C> <C> <C> <C>
Shares issued to shareholders due to
reinvestment of distributions 66,072 134,874 -- --
------ ------- ----- -----
Net increase 66,072 134,874 -- --
====== ======= ===== =====
</TABLE>
<PAGE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the six months ended
December 31, 1996, were as follows:
<TABLE>
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $24,034,773 $18,364,958 $16,460,714 $18,997,400
Temporary municipal investments 18,800,000 11,500,000 20,500,000 15,875,000
SALES AND MATURITIES
Investments in municipal securities 24,779,494 20,593,709 19,659,746 28,916,334
Temporary municipal investments 18,800,000 9,200,000 16,600,000 19,975,000
==+====+=== ==+====+=== ==+====+=== ==+====+===
</TABLE>
At December 31, 1996, the identified cost of
investments owned for federal income tax purposes
was the same as the cost for financial reporting
purposes for each Fund.
At June 30, 1996, the Funds' last fiscal year end,
the following Funds had unused capital loss
carryovers available for federal income tax purposes
to be applied against future capital gains, if any.
If not applied, the carryovers will expire as
follows:
<TABLE>
<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
========= =========== ===========
</TABLE>
<PAGE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On January 2, 1997, the Funds declared Common share
dividend distributions from their tax-exempt net
investment income which were paid February 3, 1997,
to shareholders of record on January 15, 1997, as
follows:
<TABLE>
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Dividend per share $.0795 $.0710 $.0840 $.0650
====== ====== ====== ======
</TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at December 31, 1996,
were as follows:
<TABLE>
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $26,025,593 $7,212,014 $28,237,176 $9,324,586
Depreciation (3,309) (1,060,740) -- (605,222)
------------ ----------- ----------- ----------
Net unrealized appreciation $26,022,284 $6,151,274 $28,237,176 $8,719,364
=========== ========== ============ ===========
</TABLE>
<PAGE>
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:
<TABLE>
<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
</TABLE>
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.
<PAGE>
7. COMPOSITION OF NET ASSETS At December 31, 1996,
net assets consisted of:
<TABLE>
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value
per share, at liquidation value 0,000 $ 91,600,000 $110,000,000 $118,100,000
Common shares, $.01 par value per share 194,879 118,585 157,027 157,475
Paid-in surplus 273,578,318 171,205,109 221,388,211 215,278,352
Balance of undistributed net investment income 880,963 819,227 692,575 413,548
Accumulated net realized gain (loss) from
investment transactions (399,129) (5,017,888) 275,052 (2,763,747)
Net unrealized appreciation of investments 26,022,284 6,151,274 28,237,176 8,719,364
------------ ------------ ------------ ------------
Net assets $430,277,315 $264,876,307 $360,750,041 $339,904,992
============ ============ ============ ============
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
============ ============ ============ ============
</TABLE>
<PAGE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At December 31, 1996, the revenue sources by
municipal purpose for these investments, expressed
as a percent of total investments, were as follows:
<TABLE>
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Revenue Bonds:
Transportation 8% 21% 6% 3%
Health Care Facilities 11 6 10 18
Educational Facilities 1 7 12 18
Housing Facilities 17 10 11 13
Pollution Control Facilities 13 11 10 11
Water / Sewer Facilities 4 4 1 6
Lease Rental Facilities 5 4 -- 2
Electric Utilities 2 1 -- --
Other 5 11 3 2
General Obligation Bonds 15 18 4 14
Escrowed Bonds 19 7 43 13
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
</TABLE>
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 (55% for NQJ, 50% for NNJ,
71% 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.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
Selected data for a common share outstanding throughout each period is as follows:
Dividends from tax-exempt
Operating performance net investment incom
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders+
<S> <C> <C> <C> <C> <C>
NQJ
Six months ended
12/31/96 $15.050 $ .589 $ .351 $ (.473) $(.107)
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>
Six months ended
12/31/96 14.180 .545 .418 (.418) (.115)
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)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
<S> <C> <C> <C> <C> <C>
NQJ
Six months ended
12/31/96 $ -- $ -- $ -- $15.410 $15.500
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>
Six months ended
12/31/96 -- -- -- 14.610 13.500
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
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets++ net assets++ rate
<S> <C> <C> <C> <C> <C> <C>
NQJ
Six months ended
12/31/96 7.43% 5.59% $430,277 .80%* 5.32%* 6%
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>
Six months ended
12/31/96 7.04 6.04 264,876 .83* 4.88* 7
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
See notes on page 62.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
Selected data for a common share outstanding throughout each period is as follows:
Dividends from tax-exempt
Operating performance net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders+
<S> <C> <C> <C> <C> <C>
NQP
Six months ended
12/31/96 $15.720 $ .631 $ .271 $ (.507) $(.113)
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)
NPY
<S> <C> <C> <C> <C> <C>
Six months ended
12/31/96 13.570 .522 .511 (.386) (.127)
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
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
<S> <C> <C> <C> <C> <C>
NQP
Six months ended
12/31/96 $(.026) $(.006) $ -- $15.970 $16.000
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>
Six months ended
12/31/96 -- -- -- 14.090 12.500
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
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets++ net assets++ rate
<S> <C> <C> <C> <C> <C> <C>
NQP
Six months ended
12/31/96 .94% 5.03% $360,750 .81%* 5.48%* 5%
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* --
NPY
<S> <C> <C> <C> <C> <C> <C>
Six months ended
12/31/96 4.15 6.74 339,905 .82* 4.84* 6
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.
++ Ratios do not reflect the effect of dividend payments to
Preferred shareholders.
</FN>
</TABLE>
<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.
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
FSA-2-12.96
