NUVEEN Exchange-Traded Funds
DECEMBER 31, 1999
SEMIANNUAL REPORT
DEPENDABLE, TAX-FREE INCOME
TO HELP YOU KEEP MORE OF
WHAT YOU EARN.
NQJ
NNJ
New Jersey
NQP
NPY
Pennsylvania
Photo of: Couple gardening.
<PAGE>
FINANCIAL INFORMATION
As of December 31, 1999
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ)
o Dividend per share of $.0765
o Market yield on share price of 7.27%
o Taxable-equivalent yield on share price
of 11.27% *
PIE CHART:
AAA/U.S. Guaranteed 68%
AA 15%
A 5%
BBB/NR 10%
Other 2%
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ)
o Dividend per share of $.072
o Market yield on share price of 7.02%
o Taxable-equivalent yield on share price
of 10.88% *
PIE CHART:
AAA/U.S. Guaranteed 65%
AA 8%
A 16%
BBB/NR 7%
Other 4%
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP)
o Dividend per share of $.081
o Market yield on share price of 7.34%
o Taxable-equivalent yield on share price
of 10.96% *
PIE CHART:
AAA/U.S. Guaranteed 78%
AA 11%
A 7%
BBB/NR 4%
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY)
o Dividend per share of $.0675
o Market yield on share price of 6.75%
o Taxable-equivalent yield on share price
of 10.07% *
PIE CHART:
AAA/U.S. Guaranteed 78%
AA 7%
A 6%
BBB/NR 8%
Other 1%
CONTENTS
1 Dear Shareholder
3 New Jersey Portfolio Manager's Comments
6 NQJ Performance Overview
7 NNJ Performance Overview
8 Pennsylvania Portfolio Manager's Comments
11 NQP Performance Overview
12 NPY Performance Overview
13 Shareholder Meeting Report
15 Portfolio of Investments
34 Statement of Net Assets
35 Statement of Operations
36 Statement of Changes in Net Assets
37 Notes to Financial Statements
42 Financial Highlights
44 Build Your Wealth Automatically
45 Fund Information
Past performance is not predictive of future results
* For investors in the 31% federal plus applicable state income tax bracket.
See your fund's Performance Overview in this report for more information.
<PAGE>
Photo of: TIMOTHY R. SCHWERTFEGER CHAIRMAN OF THE BOARD
SIDEBAR TEXT: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
DEAR SHAREHOLDER
I am pleased to report to you on the performance of your Nuveen Exchange-Traded
Fund. Providing a stable, attractive tax-free dividend is the Fund's main
objective, and over the past six months, your Fund continued to achieve this
goal. During the period covered by this report, we have seen some changes in the
U.S. investment climate and the fixed-income environment in which your Nuveen
Exchange-Traded Fund operates. I appreciate the opportunity to review the
current investment environment with you, as does the portfolio manager of your
Fund, who discusses fund performance later in this report.
A CHALLENGING INVESTMENT ENVIRONMENT
During 1999, the U.S. economy enjoyed its ninth consecutive year of continuous
expansion, characterized by surprisingly robust growth, benign inflation, and
unemployment levels that remained among the lowest in three decades. However,
concerns about the persistent pace of economic expansion continued to test the
new paradigm, which holds that the improvements in productivity achieved through
technology enable us to have both economic growth and low inflation at the same
time. As investors watched and reacted to every economic report, volatility
increased, especially in the equity markets, and the spectre of inflation seemed
to lurk behind each statistic. Especially worrisome to the Federal Reserve was
the possibility that tight labor markets would eventually have an inflationary
effect on wages and, consequently, on consumer prices.
In an effort to pre-empt this threat of inflation, the Fed moved to raise
interest rates by a quarter-point on three separate occasions between June and
November 1999. This brought the federal funds rate - which represents the
amount banks charge one another on overnight loans, setting the standard for
short-term market rates - from 4.75% to 5.50%. This series of rate increases,
however, had little impact on consumer confidence, which went on to hit a
31-year high, or on consumer spending, which continued to serve as the main
engine powering the country's economic expansion.
At its November meeting, the Fed announced that it would shift to a neutral
stance following that month's interest rate increase, giving the markets some
respite during the Y2K transition. However, the Fed's indication that it would
continue to closely watch the pace of economic growth for any signs of
inflationary pressure left the door open for additional tightenings. In January
2000, the annual rotation among members of the Fed's Open Market Committee, the
body that ultimately decides interest rate policy, put several members
considered more "hawkish" on inflation-fighting into voting slots. As a result,
on February 2, the Fed again raised interest rates another 25 basis points. The
federal funds rate now stands at 5.75%, though the Fed hinted at additional
increases throughout 2000.
MUNICIPAL BOND PERFORMANCE
Despite the evidence of the Federal Reserve's continued vigilance on the
inflation front, the cumulative effect of these economic events was negative
for the fixed-income markets, including municipal bonds. As the Fed's monetary
tightenings prompted a rise in bond yields, bond prices slumped, and all but the
shortest maturity bond funds suffered losses.
<PAGE>
On a more positive note, over the past year our exchange-traded municipal bond
funds continued to offer attractive, stable income in a market that places a
high premium on yield. At the end of December 1999, long-term municipal yields,
represented by the Bond Buyer 25 Revenue Index, offered 96% of 30-year Treasury
yields, compared with the historical average of 86% for the period 1986-1999.
For investors, this meant that yields on quality long-term municipal bonds were
comparable to those of long-term Treasury bonds - even before the tax advantages
of municipals were taken into account. Of course, Treasuries are backed by
the full faith and credit of the U.S. government. Even so, on an after-tax
basis, municipal bonds continued to present an exceptionally attractive
investment option relative to Treasuries.
During 1999, we saw the supply of municipal bonds drop off from the near-record
levels of 1998. This was largely due to the increase in interest rates, which
deterred municipal governments from issuing new debt and removed much of the
incentive to refund existing bonds. For the year, municipal supply declined by
21% from 1998 levels. We anticipate that demand from individual investors will
strengthen as they increasingly look at rebalancing their portfolios. With the
outlook for tighter supply and continued demand in the months ahead, Nuveen's
established market position as the leading sponsor of exchange-traded municipal
bond funds should give us excellent access to bond offerings that have the
potential to add value for our shareholders.
NUVEEN FUNDS: AN ANSWER TO YOUR INVESTMENT NEEDS
In light of the recent changes in the investment environment, your financial
adviser can serve as a valuable resource in helping you determine if
adjustments are needed in your current asset allocation plan and suggesting
investments that can add diversification to your portfolio. By investing in
other Nuveen funds, you can bring balance to your portfolio and gain exposure
to the different types of investments that can enhance your potential for
success. Your adviser can also establish a reinvestment plan designed to
purchase additional shares of your Nuveen Exchange-Traded Fund. For more
information on Nuveen's expanding array of funds, contact your financial
adviser for a prospectus detailing all charges and expenses, or call Nuveen at
(800) 257-8787. Please read the prospectus carefully before you invest or send
money.
THE NEW MILLENNIUM
During 1999, Nuveen committed significant resources - both financial and
personal - to ensuring that the transition to the year 2000 caused no
disruptions for our shareholders. Our preparations included advance testing of
all critical operating systems and careful review of each municipal issuer's
Y2K compliance, with special attention to the largest and more volatile
holdings in our Funds' portfolios. We were assisted in our efforts by
securities industry oversight organizations, including the Securities Industry
Association, the Municipal Securities Rulemaking Board, and the Securities and
Exchange Commission, as well as various rating agencies and insurance
companies. As a result, we were fully prepared for the transition, from an
operational as well as an investment perspective. As expected, the Y2K
transition was a non-event for our company and our shareholders as well as
throughout the general economy. The diligence of the financial industry as a
whole in dealing with the Y2K transition should prove to have ongoing benefits
for investors.
Since 1898, Nuveen has been synonymous with investments that stand the test of
time. As we enter the new millennium, we remain committed to maintaining that
reputation and finding the best ways to serve your evolving investment needs.
Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
February 15, 2000
Sidebar text: "With the outlook for tighter supply and continued demand in the
months ahead, Nuveen's established market position as the leading sponsor of
exchange-traded municipal bond funds should give us excellent access to bond
offerings that have the potential to add value for our shareholders."
<PAGE>
Nuveen New Jersey Exchange-Traded Funds
PORTFOLIO MANAGER'S COMMENTS
PORTFOLIO MANAGER TOM FUTRELL DISCUSSES THE NEW JERSEY ECONOMY, RECENT FUND
PERFORMANCE, AND THE OUTLOOK FOR THE NUVEEN NEW JERSEY FUNDS. A 16-YEAR VETERAN
OF NUVEEN, TOM HAS MANAGED THE NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL
FUND, INC. (NQJ) AND THE NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
(NNJ) SINCE JULY 1998.
WHAT FACTORS AFFECTED NEW JERSEY'S ECONOMY DURING THE 12 MONTHS ENDED DECEMBER
31, 1999?
New Jersey's economy continued to grow at a healthy pace in 1999, as the state
benefited from its strategic location, highly skilled workforce, and its
position as the U.S. center for telecommunications and research. Many of the
employees of Wall Street's investment firms and brokerage houses commute to
Manhattan from New Jersey, and the success and growth of the financial industry
over the past nine years have created substantial wealth for the state's
residents. According to Moody's Investor Services, per capita income in New
Jersey was 138% of the national average in 1999. The state is also seeing a type
of "reverse commute," as New York companies move their back office operations to
New Jersey in order to reduce costs. This has created a boom in the state's
commercial real estate market, especially in northern New Jersey. The state also
benefits from a highly diverse economy, with a significant presence of
scientific and high-tech industries and strong job growth in the financial,
retail and wholesale trade, and services sectors. In December 1999, New Jersey's
unemployment equaled the national average of 4.1%, down from 4.4% in December
1998.
Because of its location, New Jersey also serves as a major transportation hub on
the East Coast, and current improvement projects are designed to solidify this
position and increase jobs and economic opportunities. Among these are a $1
billion expansion of Newark International Airport and a $545 million project
designed to link the Port of New York-New Jersey with nearby rail, road, and
airport facilities.
DID THESE EVENTS IMPACT MUNICIPAL BOND SUPPLY AND DEMAND IN NEW JERSEY?
In 1999, New Jersey's new municipal issuance remained stable, totaling $8.5
billion, a decline of just 2% from 1998 levels. This was in sharp contrast to
the availability of new paper in most other states and to the national supply,
which dropped 21% in 1999. Because New Jersey is one of the wealthiest states in
the country in terms of per capita income, demand for municipal bonds by
individual investors continued to be good through most of the year. Another
reason for the continued demand is New Jersey's status as a specialty state,
which means its bonds have historically traded well in the secondary market.
WERE THE FUNDS' DIVIDENDS AFFECTED BY THIS ENVIRONMENT?
Over the past 12 months, the Nuveen New Jersey Funds continued to provide
stable, attractive dividends, supported by good call protection and Nuveen's
dividend management strategies, as well as the prudent use of leverage. As of
December 31, 1999, NNJ had provided shareholders with 74 consecutive months of
steady or increasing dividends, while NQJ had provided steady dividends for 14
consecutive months. Both of the Funds continued to provide competitive market
yields, as shown in the table on page four.
Both of the Nuveen New Jersey Funds are leveraged, which means they issue
MuniPreferred shares that pay short-term interest rates to investors seeking
short-term liquidity. The proceeds from these preferred shares are then used to
buy additional long-term bonds for the Funds' portfolios. Since short-term
interest rates usually - but not always - remain below long-term rates, common
shareholders can potentially earn extra net income from the difference between
the rate earned on a fund's long-term portfolio and the short-term rate paid to
preferred shareholders. While the use of leverage can increase the volatility of
a fund's net asset value (NAV) and income, adding higher risk than that
associated with non-leveraged funds, the leveraged fund is usually compensated
for this additional risk in the form of higher yields.
During the first half of 1999, the leverage ratio of NQJ fell below the Nuveen
guideline of 35%. This led to the issuance of new MuniPreferred shares for the
Fund in June. (There was no need to issue new preferred
<PAGE>
shares for NNJ because its leverage ratio remained above Nuveen's 35% guideline
over the past 12 months.) Nuveen releveraged NQJ both to restore the original
leverage ratio of 35% and to provide the potential for increased incremental
tax-free income for common shareholders.
OVERALL, HOW DID THE NUVEEN NEW JERSEY FUNDS PERFORM OVER THE PAST YEAR?
For the 12 months ended December 31, 1999, the Nuveen New Jersey Funds produced
total returns on NAV as shown in the accompanying table. For comparison
purposes, the annual returns for the Funds' benchmark - the Lehman Brothers
Municipal Bond Index1 - and the Funds' Lipper Peer Group2 are also presented.
In recognition of its risk-adjusted performance, NQJ was awarded a Morningstar3
rating of 4 stars, representing the Fund's overall rating among 193 closed-end
municipal bond funds, as of December 31, 1999.
<TABLE>
<CAPTION>
LEHMAN
TOTAL RETURN TOTAL LIPPER
MARKET YIELD ON NAV RETURN(1) AVERAGE(2)
------------------------- ------------------------ --------- ----------
<S> <C> <C> <C> <C>
1-Year 1-Year 1-Year
Taxable- Ended Taxable- Ended Ended
12/31/99 Equivalent(4) 12/31/99 Equivalent(4) 12/31/99 12/31/99
-------- ------------- -------- ------------- -------- --------
NQJ 7.27% 11.27% -3.04% 0.27% -2.06% -9.06%
-------- -------- -------- -------- -------- --------
NNJ 7.02% 10.88% -4.94% -1.80% -2.06% -9.06%
-------- -------- -------- -------- -------- --------
</TABLE>
Past performance is not predictive of future results. For additional
information on your Fund, see its Performance Overview in this report.
The underperformance of the Funds' total returns on NAV relative to their Lehman
benchmark can be attributed largely to the Funds' longer durations5. As of
December 31, 1999, the durations of NQJ and NNJ were 9.49 and 13.02,
respectively, compared with the Lehman Municipal Bond Index's 7.68. Duration
measures a bond fund's price volatility, or reaction to interest rate movements.
The longer the duration, the more sensitive the fund's NAV is to changes in
interest rates. During a period of falling interest rates, a long duration
enables a fund's NAV to participate more fully in market gains. However, when
interest rates rise (and bond values correspondingly fall), a long duration can
make the fund's NAV more vulnerable to price declines.
For the 12 months ended December 1999, the yield on the Bond Buyer 25 Revenue
Bond Index6 rose from 5.26% to 6.23%. This meant that funds with longer
durations, like the Nuveen New Jersey Funds, were more likely to underperform
the market, as represented by the unleveraged Lehman Brothers Municipal Bond
Index. Over the past 12 months, the durations of both New Jersey Funds
lengthened considerably, due largely to market action. In addition, proceeds
from sold or called bonds were reinvested in issues with longer durations, which
benefited the Funds by providing attractive yields and better call protection.
The Funds' longer durations should help position the New Jersey Funds to regain
net asset value if the bond market recovers and interest rates decline.
In outperforming the other funds in their Lipper Peer Group, the Nuveen New
Jersey Funds benefited from their overall structure, the relative lack of credit
issues, and their small exposure to the healthcare sector. Over the past year,
we reduced NQJ's exposure to healthcare from 11% to 8%, while NNJ had less than
5% of its assets allocated to this sector.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
Over the past year, concerns about rising interest rates, inflation, and the
Federal Reserve's monetary policies created a negative environment in the
fixed-income markets. In addition, worries about the transition to the year
2000 precipitated an early start to tax-swap season, as investors attempted to
offset profits in the equity markets by selling fixed-income investments at a
loss. The liquidity concerns engendered by Y2K also prompted some investors to
opt for money market funds and other short-term instruments as the best place
to park cash over the year end. All of these factors negatively impacted the
market demand for exchange-traded funds, including the Nuveen New Jersey Funds.
This resulted in declines in the Funds' share prices. Since interest rates were
generally higher in December 1999 than a year earlier, the Funds' NAVs also
declined, as bond prices fell while interest rates rose. As a result of these
factors, both Funds saw their premiums (share price above NAV) move to discounts
(share price below NAV). Because the market price of these Funds is currently
lower than the actual value of the bonds in their portfolios, this could be an
opportune time for shareholders to consider purchasing additional shares of
their Nuveen New Jersey Fund.
TOTAL RETURN ON SHARE PRICE PREMIUM/DISCOUNT(7)
--------------------------- -------------------
1-Year
Ended Taxable-
12/31/99 Equivalent(4) 12/31/98 12/31/99
---------- -------------- -------- --------
NQJ -20.74% -17.68% 8.02% -11.53%
---------- -------------- -------- --------
NNJ -21.58% -18.65% 7.19% -11.48%
---------- -------------- -------- --------
1 NQJ and NNJ's performances are compared with that of the Lehman Brothers
Municipal Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the index do not reflect any
expenses.
2 The total returns for the Nuveen New Jersey Funds are compared with the
average annualized return of the 10 funds in the Lipper New Jersey
Municipal Debt Funds category. Fund and Lipper returns assume reinvestment
of dividends.
3 Morningstar proprietary ratings reflect historical risk-adjusted
performance as of December 31, 1999. The ratings are subject to change
every month. Past performance is no guarantee of future results.
Morningstar ratings are calculated from the fund's three-, five-, and
ten-year average annual returns (if applicable) in excess of 90-day
Treasury bill returns with appropriate fee adjustments and a risk factor
that reflects fund performance below 90-day T-bill returns. NQJ received 4
stars for the three- and five-year periods. The top 10% of the funds in a
broad asset class receive 5 stars, the next 22.5% receive 4 stars, and the
next 35% receive 3 stars. The fund was rated among 193 funds for the
three-year and five-year periods.
4 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the
yield/total return of the Nuveen fund on an after-tax basis. The
taxable-equivalent yield is based on the fund's current market yield and a
combined federal and state income tax rate of 35.5%, while the
taxable-equivalent total return is based on the annualized total return and
the combined 35.5% federal and state income tax rate. 5 Fund duration, also
known as leverage-adjusted duration, takes into account the leveraging
process for the funds and therefore differs from the duration of the actual
portfolio of individual bonds that make up the funds. Unless otherwise
noted, references to duration in this commentary are intended to indicate
fund duration.
6 The Bond Buyer 25 Revenue Bond Index is an unmanaged index of long-term
municipal revenue bonds.
7 A fund's premium/discount represents the percentage difference between the
fund's share price and its NAV.
<PAGE>
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN NEW JERSEY FUNDS DURING THE
PERIOD COVERED BY THIS REPORT?
In 1999, fixed-income investments, especially long-term, leveraged funds such as
the Nuveen New Jersey Funds, faced a difficult market. As we focused on the
Funds' primary objective of stable tax-free dividends, we also tried to take
advantage of this market through strategies designed to strengthen the Funds'
long-term dividend-paying capabilities and enhance their tax efficiency by
offsetting potential capital gains with capital losses. During this period, we
kept the Funds fully invested in the market, using Nuveen research and taking a
selective approach to purchasing the best bonds available in both the primary
and secondary markets.
As interest rates rose over the last half of 1999, we found opportunities to
purchase bonds with higher yields and better call protection, thus strengthening
the Funds' dividend-paying capabilities. NNJ, which was first offered in
December 1992, currently provides excellent levels of protection, with 7% of its
portfolio subject to calls over the next two years. This should provide
additional protection and stability for the Fund's dividend over this period.
While only 3% of NQJ is callable in 2000, the Fund, which was assembled in
February 1991, is now approaching the normal part of the bond market cycle when
the likelihood of bond calls increases. Ten years after the original issue date,
issuers typically have their first opportunity to call, or redeem, outstanding
bonds. Calls are more likely to occur if current interest rates are more
favorable to the issuer than the rates that prevailed when the bonds were first
issued.
To reduce the effect of calls, we continuously work on strategies designed to
enhance call protection. As mentioned earlier, we have been active buyers in
the current market as we try to take advantage of the higher interest rate
environment. These recent purchases should also benefit the Funds by extending
call protection. Given the current level of bond yields, we have been evaluating
suitable replacements for older bonds, focusing on undervalued bonds that have
the potential to support the Funds' dividend and enhance portfolio structure.
When we find large blocks of such bonds in the marketplace, we can consider
replacing the bonds that are most likely to be called away. This should enable
the Funds to continue providing competitive levels of dividends for
shareholders.
Enhanced tax efficiency has also been an increasing focus for us over the past
six months. This involved selling selected bonds that were trading at a loss,
realizing the capital losses, and then rolling the proceeds into bonds with
similar characteristics, but offering attractive yields and better call
protection. Some of the bonds we sold were due to mature or scheduled to be
called within the next few months, while others were bonds that we had purchased
earlier this year that were now producing a lower income stream than that
recently available in the market. This trading not only gave us capital losses
with which to offset current and future capital gains, thereby protecting
shareholders from additional taxes, but also - in most cases - increased the net
earnings of the Funds. If current market conditions persist, we will continue
to focus on implementing this strategy.
Overall, both NQJ and NNJ offered excellent credit quality, with 83% and 73%,
respectively, of the Funds' assets invested in bonds rated AAA/U.S. guaranteed
and AA at the end of December 1999. The Funds also had allocations of 10% and
7%, respectively, in BBB/non-rated bonds, which generally provided enhanced
levels of yield, especially as credit spreads widened in recent months.
WHAT IS NUVEEN'S OUTLOOK FOR THE NEW JERSEY FUNDS?
Based on current interest rates, we expect New Jersey's municipal supply in
2000 to be on par with that of 1999, which could bode well for the market. New
Jersey continues to be a very wealthy state, and this should result in continued
demand for municipal bonds. Over the next 12 months, we will try to take
advantage of the higher yields currently available in the municipal market to
enhance the structure of our portfolio holdings and the dividend-paying
capabilities of the Funds. If current market conditions persist, our strategies
will also continue to include tax swaps. We will continue to rely on Nuveen
Research to help us explore opportunities in all areas of the market. Our
research capabilities and our ability to implement strategies such as these
demonstrate the value that can be added by the experience and active management
approach of a bond manager such as Nuveen.
<PAGE>
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
PERFORMANCE OVERVIEW
As of December 31, 1999
NQJ
- --------------------------------------------------------------------------------
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
Inception Date 2/91
- --------------------------------------------------------------------------------
Share Price $12 5/8
- --------------------------------------------------------------------------------
Net Asset Value $14.27
- --------------------------------------------------------------------------------
Market Yield 7.27%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield (Federal Tax Rate)(1) 10.54%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield (Federal and State Tax Rate)(1) 11.27%
- --------------------------------------------------------------------------------
Fund Net Assets ($000) $447,059
- --------------------------------------------------------------------------------
Average Effective Maturity (Years) 15.21
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.49
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
1-Year -20.74% -3.04%
- --------------------------------------------------------------------------------
5-Year 5.64% 6.66%
- --------------------------------------------------------------------------------
Since Inception 4.30% 6.80%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
1-Year -17.68% 0.27%
- --------------------------------------------------------------------------------
5-Year 9.10% 10.16%
- --------------------------------------------------------------------------------
Since Inception 7.78% 10.36%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
- --------------------------------------------------------------------------------
U.S. Guaranteed 20%
Transportation 15%
Tax Obligation/General 12%
Housing/Multifamily 11%
Healthcare 8%
Bar Chart:
1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE(3)
Jan 0.0765
Feb 0.0765
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0765
Jul 0.0765
Aug 0.0765
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
12/31/98 16.9375
17
16.1875
16.25
16.375
16.6875
16.9375
17
17
17.1875
17.125
17.3125
17.25
17.375
17.4375
17.1875
17
16.75
16.125
16
16.125
16.1875
16.125
16.1875
15.8125
16.0625
16.1875
16.125
16.375
16.1875
16
15.75
15.8125
15.8125
15.875
15.9375
15.9375
15.875
15.875
16
15.75
14.875
14.625
14.75
14.1875
13.5625
13.375
13.3125
12.5625
12.625
12/31/99 12.625
Weekly Closing Price
Past performance is not predictive of future results.
1 A taxable-equivalent represents the yield on a taxable investment necessary
to equal that of the Nuveen fund on an after-tax basis. The federal only
rate is based on the current market yield and a federal income tax rate of
31%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state taxes. It is based on a
combined federal and state income tax rate of 35.5%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 35.5%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
3 The Fund also paid shareholders capital gains distributions in December of
$0.0376 per share.
<PAGE>
Nuveen New Jersey Premium Income Municipal Fund, Inc.
PERFORMANCE OVERVIEW
As of December 31, 1999
NNJ
- --------------------------------------------------------------------------------
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
Inception Date 12/92
- --------------------------------------------------------------------------------
Share Price $12 5/16
- --------------------------------------------------------------------------------
Net Asset Value $13.91
- --------------------------------------------------------------------------------
Market Yield 7.02%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield (Federal Tax Rate)(1) 10.17%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield (Federal and State Tax Rate)(1) 10.88%
- --------------------------------------------------------------------------------
Fund Net Assets ($000) $258,657
- --------------------------------------------------------------------------------
Average Effective Maturity (Years) 16.96
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.02
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
1-Year -21.58% -4.94%
- --------------------------------------------------------------------------------
5-Year 8.16% 7.85%
- --------------------------------------------------------------------------------
Since Inception 2.94% 5.59%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
1-Year -18.65% -1.80%
- --------------------------------------------------------------------------------
5-Year 11.62% 11.12%
- --------------------------------------------------------------------------------
Since Inception 6.22% 8.73%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
- --------------------------------------------------------------------------------
Transportation 24%
- --------------------------------------------------------------------------------
Tax Obligation/Limited 13%
- --------------------------------------------------------------------------------
Housing/Multifamily 12%
- --------------------------------------------------------------------------------
Water and Sewer 9%
- --------------------------------------------------------------------------------
Education and Civic Organizations 9%
- --------------------------------------------------------------------------------
Bar Chart:
1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.072
Feb 0.072
Mar 0.072
Apr 0.072
May 0.072
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.072
Oct 0.072
Nov 0.072
Dec 0.072
Line Chart:
Share Price Performance
12/31/98 16.625
16.0625
15.9375
15.875
15.5
15.8125
16
16
16.25
16.4375
16.5625
16.6875
16.625
16.6875
16.5
16.5625
16.5625
16.75
16.375
16.375
16.3125
16.1875
16.1875
16.125
15.875
16.0625
16.125
16
16
15.875
15.5625
15.1875
15.125
15.125
15.125
15.0625
14.75
14.5
14
14.3125
14.125
13.9375
13.75
14.0625
13.7333
13.6875
13.5625
13.1875
12.125
12.1875
12/31/99 12.3125
Weekly Closing Price
Past performance is not predictive of future results.
1 A taxable-equivalent represents the yield on a taxable investment necessary
to equal that of the Nuveen fund on an after-tax basis. The federal only
rate is based on the current market yield and a federal income tax rate of
31%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state taxes. It is based on a
combined federal and state income tax rate of 35.5%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 35.5%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
<PAGE>
Nuveen Pennsylvania Exchange-Traded Funds
PORTFOLIO MANAGER'S COMMENTS
PORTFOLIO MANAGER TOM O'SHAUGHNESSY REVIEWS THE MARKET ENVIRONMENT IN
PENNSYLVANIA, FUND PERFORMANCE, AND THE KEY STRATEGIES USED TO MANAGE THE
NUVEEN PENNSYLVANIA FUNDS. TOM, WHO HAS MORE THAN 16 YEARS OF EXPERIENCE AS AN
INVESTMENT PROFESSIONAL AT NUVEEN, HAS HAD PORTFOLIO MANAGEMENT RESPONSIBILITY
FOR THE NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP) SINCE ITS
INCEPTION IN FEBRUARY 1991 AND FOR THE NUVEEN PENNSYLVANIA PREMIUM INCOME
MUNICIPAL FUND 2 (NPY) SINCE MARCH 1995.
WHAT FACTORS AFFECTED PENNSYLVANIA'S ECONOMY DURING THE 12 MONTHS ENDED DECEMBER
31, 1999?
Pennsylvania continued to enjoy healthy, diversified economic growth in 1999.
However, the continued decline in manufacturing - one of Pennsylvania's major
sources of employment - threatens to limit the state's economic growth in the
years ahead. Compounding this was the state's low population growth, resulting
from low birth rates as well as the net relocation of residents to other
states. On the positive side, the diversity of Pennsylvania's economy provided
a long-term advantage, with employment growth spread across several sectors,
including construction, FIRE (finance, insurance, real estate), services, and
retail trade. In December 1999, unemployment in the state was 4.1%, down from
4.4% in December 1998 and on par with the national average. Solid per capita
income growth in 1999 continued to put Pennsylvania ahead of the national
average. Current development projects include residential and retail space on
the edge of Old City Philadelphia, mixed-use waterfront space in Pittsburgh, and
Erie's bayfront conference center, hotel, and retail project.
HOW DID THESE EVENTS IMPACT THE MUNICIPAL MARKET IN PENNSYLVANIA?
The state's continued economic growth translated into strong tax collections and
municipal revenues and helped to bolster the overall creditworthiness of the
Pennsylvania municipal market. In 1999, new municipal issuance in Pennsylvania
totaled $11.3 billion, down 28% from 1998. This compared with a drop of 21% in
national supply in 1999. State issuance during the first half of 1999 was much
stronger than that of the most recent six months, however, with $7.8 billion of
new issuance in the first half versus $3.5 billion in the second. Some of the
decline can be attributed to the rising interest rate environment, as the
refunding activity involving older debt typically declines as interest rates
move higher. In 1999, demand from individual investors in Pennsylvania failed to
keep pace with state supply, even with the tighter supply situation in the
second half of the year. This, in turn, had a negative impact on the prices of
bonds issued by Pennsylvania municipalities.
WERE THE FUNDS' DIVIDENDS AFFECTED BY THIS ENVIRONMENT?
During the past year, good call protection helped to support the dividend of
NPY and shield the income of this Fund from erosion. In addition, specific
dividend management strategies, as well as the prudent use of leverage, enabled
us to increase NPY's dividend in both February and May 1999. As of December 31,
1999, NPY had provided shareholders with steady or increasing dividends for 20
consecutive months. For NQP, however, the eroding effect of a small number of
bond calls that removed some high-coupon bonds from its portfolio led to a
dividend cut in December. Prior to this adjustment, NQP had provided
shareholders with 40 consecutive months of steady dividends. Both of the
Nuveen Pennsylvania Funds continued to provide competitive market yields, as
shown in the table on page 9.
As leveraged funds, both Pennsylvania Funds issue MuniPreferred shares that pay
short-term interest rates to investors seeking short-term liquidity. Short-term
municipal rates are usually - but not always - lower than long-term rates. The
proceeds from these preferred shares are then used to buy additional long-term
bonds for the Funds' portfolios. When short-term interest rates remain below
long-term rates, common shareholders can potentially earn extra net income from
the difference between the rate earned on a fund's long-term portfolio and the
short-term rate paid to preferred shareholders. While the use of leverage can
increase the volatility of a fund's net asset value (NAV) and income, adding
higher risk than that associated with non-leveraged funds, the leveraged fund is
usually compensated for this additional risk in the form of higher yields.
<PAGE>
During the past year, the leverage ratio of NQP fell below the Nuveen guideline
of 35%. This led to the issuance of new MuniPreferred shares for the Fund in
June. (NPY's leverage ratio remained above Nuveen's 35% guideline over the past
12 months.) Nuveen releveraged NQP both to restore the original leverage ratio
of 35% and to provide the potential for increased incremental tax-free income
for common shareholders.
OVERALL, HOW DID THE NUVEEN PENNSYLVANIA FUNDS PERFORM OVER THE PAST YEAR?
For the 12 months ended December 31, 1999, the Nuveen Pennsylvania Funds
produced total returns on NAV as shown in the accompanying table. For
comparison purposes, the annual returns for the Funds' benchmark - the Lehman
Brothers Municipal Bond Index1 - and the Funds' Lipper Peer Group2 are also
presented.
<TABLE>
<CAPTION>
LEHMAN
TOTAL RETURN TOTAL LIPPER
MARKET YIELD ON NAV RETURN(1) AVERAGE(2)
------------------------- ------------------------ --------- ----------
<S> <C> <C> <C> <C>
1-Year 1-Year 1-Year
Taxable- Ended Taxable- Ended Ended
12/31/99 Equivalent(3) 12/31/99 Equivalent(3) 12/31/99 12/31/99
-------- ------------- -------- ------------- -------- --------
NQP 7.34% 10.96% -4.10% -0.90% -2.06% -5.48%
-------- -------- -------- -------- -------- --------
NPY 6.75% 10.07% -7.61% -4.94% -2.06% -5.48%
-------- -------- -------- -------- -------- --------
</TABLE>
Past performance is not predictive of future results.
For additional information on your Fund, see its Performance Overview in this
report.
The underperformance of the Funds' total returns on NAV relative to their Lehman
benchmark can be attributed largely to the Funds' longer durations4. As of
December 31, 1999, the durations of NQP and NPY were 9.38 and 13.54,
respectively, compared with the Lehman Municipal Bond Index's 7.68. Duration
measures a bond fund's price volatility, or reaction to interest rate movements.
The longer the duration,the more sensitive the fund's NAV is to changes in
interest rates. During a period of falling interest rates,a long duration
enables a fund's NAV to participate more fully in market gains. However, when
interest rates rise (and bond values correspondingly fall), a long duration can
make the fund's NAV more vulnerable to price declines. For the 12 months ended
December 1999, the yield on the Bond Buyer 25 Revenue Bond Index5 rose from
5.26% to 6.23%. This meant that funds with longer durations, like the Nuveen
Pennsylvania Funds, were more likely to underperform the market, as represented
by the unleveraged Lehman Brothers Municipal Bond Index.
Over the past 12 months, the durations of both Pennsylvania Funds lengthened
considerably, due largely to market action. In addition, proceeds from sold or
called bonds were reinvested in issues with longer durations, which benefited
the Funds by providing attractive yields and better call protection. The Funds'
longer durations should help position the Pennsylvania Funds to regain net asset
value if the bond market recovers and interest rates decline.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
In 1999, rising interest rates, inflation worries, and constant speculation
about the Federal Reserve's next move created a negative environment in the
fixed-income markets. In addition, concerns about the impact of the transition
to the year 2000 precipitated an early start to tax-swap season, as investors
attempted to offset profits in the equity markets by selling fixed-income
investments at a loss. The liquidity concerns engendered by Y2K also prompted
some investors to opt for money market funds and other short-term instruments
as the best place to park cash over the year end.
All of these factors negatively impacted the market demand for exchange-traded
funds, including the Nuveen Pennsylvania Funds. This resulted in declines in the
Funds' share prices. Since the prevailing interest rate environment in December
1999 was higher than that of a year earlier, the Funds' NAVs also declined, as
bond prices fell while interest rates rose. The supply/demand imbalance in
Pennsylvania also hurt the prices of the bonds held by the Funds. As a result of
these factors, NQP saw its premium (share price above NAV) move to a discount
(share price below NAV), while the discount on NPY widened. With the market
prices of these Funds lower than the actual value of the bonds in the Funds'
portfolios, shareholders may want to consider taking advantage of this
opportunity to add to their holdings of the Nuveen Pennsylvania Funds.
TOTAL RETURN ON SHARE PRICE PREMIUM/DISCOUNT(6)
--------------------------- -------------------
1-Year
Ended Taxable-
12/31/99 Equivalent(3) 12/31/98 12/31/99
---------- -------------- -------- --------
NQP -21.48% -18.66% 13.32% -6.95%
---------- -------------- -------- --------
NPY -10.16% -7.32% -5.79% -8.68%
---------- -------------- -------- --------
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN PENNSYLVANIA FUNDS DURING THE
PERIOD COVERED BY THIS REPORT?
1999 was a difficult period for fixed-income investments, including leveraged,
long-term funds such as the Nuveen Pennsylvania Funds. However, it did provide
opportunities to enhance the Funds' tax efficiency and to support and
strengthen the Funds' long-term dividend-paying capabilities. These strategies,
of course, were in
1 NQP and NPY's performances are compared with that of the Lehman Brothers
Municipal Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the index do not reflect any
expenses.
2 The total returns for the Nuveen Pennsylvania Funds are compared with the
average annualized return of the eight funds in the Lipper Pennsylvania
Municipal Debt Funds category. Fund and Lipper returns assume reinvestment
of dividends.
3 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the
yield/total return of the Nuveen fund on an after-tax basis. The
taxable-equivalent yield is based on the fund's current market yield and a
combined federal and state income tax rate of 33%, while the
taxable-equivalent total return is based on the annualized total return and
the combined 33% federal and state income tax rate.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the funds and therefore differs from the
duration of the actual portfolio of individual bonds that make up the
funds. Unless otherwise noted, references to duration in this commentary
are intended to indicate fund duration.
5 The Bond Buyer 25 Revenue Bond Index is an unmanaged index of long-term
municipal revenue bonds.
6 A fund's premium/discount represents the percentage difference between the
fund's share price and its NAV.
<PAGE>
addition to managing the Funds toward their primary objective of providing
attractive tax-free dividends.
In both Pennsylvania Funds, enhanced tax efficiency has become an increasing
focus over the past six months, as the rising interest rate environment offered
opportunities to benefit the Funds through active trading. Our strategy has
been to sell selected bonds that are trading at a loss, realize the capital
losses, and then roll the proceeds into bonds with similar structure and
quality as well as attractive yields and better call protection. Some of the
bonds we sold were due to mature or scheduled to be called within the next few
months, while others were bonds that we had purchased earlier this year that
were now producing a lower income stream than that recently available in the
market. This trading not only gave us realized capital losses with which to
offset current and future realized capital gains, thereby protecting
shareholders from additional taxes, but also - in most cases - increased the
net earnings of the Funds. If current market conditions persist, we will
continue to focus on implementing this strategy.
Both NQP and NPY offered excellent credit quality, with 89% and 85%,
respectively, of the Funds' assets invested in bonds rated AAA/U.S. guaranteed
and AA at the end of December 1999. The Funds also had allocations of 4% and
8%, respectively, in the BBB/non-rated category. As credit spreads (or the
difference in yield between higher credit quality securities and those of lower
credit quality) widened, we were rewarded with higher yields for assuming the
incremental risk associated with these lower-rated securities. Many of the BBB
bonds we hold in our portfolios are from the healthcare sector.
Healthcare, specifically hospitals, is a dynamic and volatile area of the market
that has been beset with concerns about deregulation and profitability. In
Pennsylvania, much of the healthcare sector still operates under the shadow
cast by the 1998 bankruptcy of the Philadelphia-based hospitals of the Allegheny
Health Education and Research Foundation (AHERF). This created credit and rating
pressures for other healthcare organizations and caused some investors to avoid
the sector entirely. Since one of Nuveen's strategies is to look for value in
sectors and bonds that have been overlooked by the rest of the market, the
healthcare sector has been an area where Nuveen research and our prudent
investment approach have enabled us to find, analyze, and exploit
research-intensive opportunities that can add value for our shareholders.
In the area of bond calls, NPY, which was first offered in March 1993,
currently provides excellent levels of protection, with only 2% of its portfolio
subject to calls over the next two years. This should provide additional
protection and stability for the Fund's dividend over this period. While only 1%
of NQP is callable in 2000, the Fund, which was assembled in February 1991, is
now approaching the normal part of the bond market cycle when the likelihood of
bond calls increases. Ten years after the original issue date, issuers typically
have their first opportunity to call, or redeem, outstanding bonds. Calls are
more likely to occur if current interest rates are more favorable to the issuer
than the rates that prevailed when the bonds were first issued. In 2001, 42% of
NQP's portfolio is subject to calls.
If any of these bonds are called from our portfolios, we will reinvest the
proceeds in the best structured bonds available in the market at the time the
redemption is made. This should help the Funds continue toprovide competitive
levels of dividends for shareholders. As mentioned earlier, we have been active
buyers in the current market as we try to take advantage of the higher interest
rate environment. Our recent purchases should also benefit the Funds by
extending call protection.
WHAT IS NUVEEN'S OUTLOOK FOR THE PENNSYLVANIA FUNDS?
In the months ahead, we will try to take advantage of the higher yields
currently available in the municipal market to enhance our portfolio holdings
and the dividend-paying capabilities of both funds. If current market
conditions persist, our strategies will continue to include enhancing the Funds'
tax efficiency and identifying research-intensive BBB credits that have the
potential to increase income. Because of its greater number of bonds with lower
purchase yields, NPY may offer more opportunities than NQP to implement these
strategies. Nuveen Research will continue to play a key role in helping us
explore opportunities in all areas of the market. As an experienced investment
manager knowledgeable about the unique aspects of the Pennsylvania municipal
market, Nuveen continues to focus on selecting the appropriate bonds and
implementing the strategies that can add value for our shareholders.
<PAGE>
Nuveen Pennsylvania Investment Quality Municipal Fund
PERFORMANCE OVERVIEW
As of December 31, 1999
NQP
- --------------------------------------------------------------------------------
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
Inception Date 2/91
- --------------------------------------------------------------------------------
Share Price $13 1/4
- --------------------------------------------------------------------------------
Net Asset Value $14.24
- --------------------------------------------------------------------------------
Market Yield 7.34%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield (Federal Tax Rate)(1) 10.64%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield (Federal and State Tax Rate)(1) 10.96%
- --------------------------------------------------------------------------------
Fund Net Assets ($000) $360,941
- --------------------------------------------------------------------------------
Average Effective Maturity (Years) 13.74
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.38
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
1-Year -21.48% -4.10%
- --------------------------------------------------------------------------------
5-Year 5.84% 6.05%
- --------------------------------------------------------------------------------
Since Inception 5.15% 7.10%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
1-Year -18.66% -0.90%
- --------------------------------------------------------------------------------
5-Year 9.02% 9.33%
- --------------------------------------------------------------------------------
Since Inception 8.35% 10.44%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
- --------------------------------------------------------------------------------
U.S. Guaranteed 42%
- --------------------------------------------------------------------------------
Housing/Single Family 11%
- --------------------------------------------------------------------------------
Tax Obligation/General 10%
- --------------------------------------------------------------------------------
Education and Civic Organizations 10%
- --------------------------------------------------------------------------------
Utilities 7%
- --------------------------------------------------------------------------------
Bar Chart:
1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE(3)
Jan 0.084
Feb 0.084
Mar 0.084
Apr 0.084
May 0.084
Jun 0.084
Jul 0.084
Aug 0.084
Sep 0.084
Oct 0.084
Nov 0.084
Dec 0.081
Line Chart:
Share Price Performance
12/31/98 18.0625
17.9375
17.4375
17.0625
16.9375
17.3125
17.0625
17.125
17.125
17.125
17.3125
17.1875
17.25
17.4375
17.5
17.5
17.625
17.5
17.25
17
17
17.0625
16.9375
17.1875
16.625
16.9375
17.0625
17.125
17.125
17
16.6875
16.5625
16.25
16.25
15.875
15.6875
15.375
15.25
15.25
15.4375
15.125
15.125
14.9375
15.1875
14.75
14.4375
14.5
14.125
13.6875
13.0625
12/31/99 13.25
Weekly Closing Price
Past performance is not predictive of future results.
1 A taxable-equivalent represents the yield on a taxable investment necessary
to equal that of the Nuveen fund on an after-tax basis. The federal only
rate is based on the current market yield and a federal income tax rate of
31%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state taxes. It is based on a
combined federal and state income tax rate of 33%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 33%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
3 The Fund also paid shareholders capital gains distributions in December of
$0.073 per share.
<PAGE>
Nuveen Pennsylvania Premium Income Municipal Fund 2
PERFORMANCE OVERVIEW
As of December 31, 1999
NPY
- --------------------------------------------------------------------------------
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
Inception Date 3/93
- --------------------------------------------------------------------------------
Share Price $12
- --------------------------------------------------------------------------------
Net Asset Value $13.14
- --------------------------------------------------------------------------------
Market Yield 6.75%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield (Federal Tax Rate)(1) 9.78%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield (Federal and State Tax Rate)(1) 10.07%
- --------------------------------------------------------------------------------
Fund Net Assets ($000) $324,946
- --------------------------------------------------------------------------------
Average Effective Maturity (Years) 18.25
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.54
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
1-Year -10.16% -7.61%
- --------------------------------------------------------------------------------
5-Year 8.72% 8.28%
- --------------------------------------------------------------------------------
Since Inception 2.55% 4.61%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
1-Year -7.32% -4.94%
- --------------------------------------------------------------------------------
5-Year 11.84% 11.13%
- --------------------------------------------------------------------------------
Since Inception 5.50% 7.37%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
- --------------------------------------------------------------------------------
U.S. Guaranteed 18%
- --------------------------------------------------------------------------------
Tax Obligation/Limited 16%
- --------------------------------------------------------------------------------
Utilities 13%
- --------------------------------------------------------------------------------
Education and Civic Organizations 13%
- --------------------------------------------------------------------------------
Healthcare 11%
- --------------------------------------------------------------------------------
Bar Chart:
1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE(3)
Jan 0.062
Feb 0.065
Mar 0.065
Apr 0.065
May 0.0675
Jun 0.0675
Jul 0.0675
Aug 0.0675
Sep 0.0675
Oct 0.0675
Nov 0.0675
Dec 0.0675
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
12/31/98 14.1875
14.25
13.8125
13.75
13.8125
14.1875
14.25
14.5625
14.3125
14.3125
14.4375
14.1875
14.125
14.5
14
14.1875
14.1875
14.375
14.3125
14.25
14.3125
14.3125
14.25
14.125
13.625
13.8125
14
14
13.875
13.9375
13.75
13.375
13.25
13.4375
13.4375
13.375
13.125
12.8125
12.875
13.125
12.8125
12.3125
12.625
13.125
12.8125
12.75
12.625
12.3125
12
11.375
12/31/99 12
Weekly closing Price
Past performance is not predictive of future results.
1 A taxable-equivalent represents the yield on a taxable investment necessary
to equal that of the Nuveen fund on an after-tax basis. The federal only
rate is based on the current market yield and a federal income tax rate of
31%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state taxes. It is based on a
combined federal and state income tax rate of 33%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 33%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
3 The Fund also paid shareholders capital gains distributions in December of
$0.015 per share.
<PAGE>
SHAREHOLDER MEETING REPORT
<TABLE>
<CAPTION>
NQJ NNJ
- ---------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Common Shares Shares Shares
Shares Series-M Series-TH Series-F Shares Series-T Series-W Series-TH
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 17,213,358 3,068 1,907 1,248 10,575,642 598 1,349 1,333
Withhold 273,701 12 -- -- 111,791 1 -- 5
- ---------------------------------------------------------------------------------------------------------------------------------
Total 17,487,059 3,080 1,907 1,248 10,687,433 599 1,349 1,338
=================================================================================================================================
Lawrence H. Brown
For 17,219,864 3,068 1,907 1,248 10,575,508 598 1,349 1,333
Withhold 267,195 12 -- -- 111,925 1 -- 5
- ---------------------------------------------------------------------------------------------------------------------------------
Total 17,487,059 3,080 1,907 1,248 10,687,433 599 1,349 1,338
=================================================================================================================================
Anne E. Impellizzeri
For 17,200,558 3,068 1,907 1,248 10,571,023 598 1,349 1,333
Withhold 286,501 12 -- -- 116,410 1 -- 5
- ---------------------------------------------------------------------------------------------------------------------------------
Total 17,487,059 3,080 1,907 1,248 10,687,433 599 1,349 1,338
=================================================================================================================================
Peter R. Sawers
For 17,210,491 3,068 1,907 1,248 10,574,296 598 1,349 1,333
Withhold 276,568 12 -- -- 113,137 1 -- 5
- ---------------------------------------------------------------------------------------------------------------------------------
Total 17,487,059 3,080 1,907 1,248 10,687,433 599 1,349 1,338
=================================================================================================================================
William J. Schneider
For -- 3,068 1,907 1,248 -- 598 1,349 1,333
Withhold -- 12 -- -- -- 1 -- 5
- ---------------------------------------------------------------------------------------------------------------------------------
Total -- 3,080 1,907 1,248 -- 599 1,349 1,338
=================================================================================================================================
Timothy R. Schwertfeger
For -- 3,068 1,907 1,248 -- 598 1,349 1,333
Withhold -- 12 -- -- -- 1 -- 5
- ---------------------------------------------------------------------------------------------------------------------------------
Total -- 3,080 1,907 1,248 -- 599 1,349 1,338
=================================================================================================================================
Judith M. Stockdale
For 17,206,437 3,068 1,907 1,248 10,566,209 598 1,349 1,333
Withhold 280,622 12 -- -- 121,224 1 -- 5
- ---------------------------------------------------------------------------------------------------------------------------------
Total 17,487,059 3,080 1,907 1,248 10,687,433 599 1,349 1,338
=================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 17,141,141 2,813 1,905 1,248 10,497,887 596 1,345 1,338
Against 125,402 264 1 -- 78,699 -- 2 --
Abstain 220,516 3 1 -- 110,847 3 2 --
- ---------------------------------------------------------------------------------------------------------------------------------
Total 17,487,059 3,080 1,907 1,248 10,687,433 599 1,349 1,338
=================================================================================================================================
</TABLE>
<PAGE>
SHAREHOLDER MEETING REPORT
<TABLE>
<CAPTION>
NQP NPY
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Common Shares Shares Shares
Shares Series-T Series-W Series-TH Shares Series-M Series-TH Series-F
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 13,447,712 880 2,349 1,954 13,896,902 838 1,789 1,507
Withhold 225,937 -- 18 15 132,584 -- 11 208
- ---------------------------------------------------------------------------------------------------------------------------------
Total 13,673,649 880 2,367 1,969 14,029,486 838 1,800 1,715
=================================================================================================================================
Lawrence H. Brown
For 13,431,766 880 2,350 1,954 13,895,587 838 1,789 1,508
Withhold 241,883 -- 17 15 133,899 -- 11 207
- ---------------------------------------------------------------------------------------------------------------------------------
Total 13,673,649 880 2,367 1,969 14,029,486 838 1,800 1,715
=================================================================================================================================
Anne E. Impellizzeri
For 13,417,210 880 2,350 1,954 13,873,919 838 1,789 1,508
Withhold 256,439 -- 17 15 155,567 -- 11 207
- ---------------------------------------------------------------------------------------------------------------------------------
Total 13,673,649 880 2,367 1,969 14,029,486 838 1,800 1,715
=================================================================================================================================
Peter R. Sawers
For 13,428,948 880 2,350 1,954 13,883,631 838 1,789 1,508
Withhold 244,701 -- 17 15 145,855 -- 11 207
- ---------------------------------------------------------------------------------------------------------------------------------
Total 13,673,649 880 2,367 1,969 14,029,486 838 1,800 1,715
=================================================================================================================================
William J. Schneider
For -- 880 2,345 1,954 -- 838 1,800 1,508
Withhold -- -- 22 15 -- -- -- 207
- ---------------------------------------------------------------------------------------------------------------------------------
Total -- 880 2,367 1,969 -- 838 1,800 1,715
=================================================================================================================================
Timothy R. Schwertfeger
For -- 880 2,350 1,954 -- 838 1,800 1,508
Withhold -- -- 17 15 -- -- -- 207
- ---------------------------------------------------------------------------------------------------------------------------------
Total -- 880 2,367 1,969 -- 838 1,800 1,715
=================================================================================================================================
Judith M. Stockdale
For 13,422,081 880 2,349 1,954 13,874,904 838 1,789 1,507
Withhold 251,568 -- 18 15 154,582 -- 11 208
- ---------------------------------------------------------------------------------------------------------------------------------
Total 13,673,649 880 2,367 1,969 14,029,486 838 1,800 1,715
=================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 13,442,587 880 2,366 1,966 13,813,389 838 1,762 1,508
Against 97,469 -- 1 3 48,389 -- 38 207
Abstain 133,593 -- -- -- 167,708 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total 13,673,649 880 2,367 1,969 14,029,486 838 1,800 1,715
=================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BASIC MATERIALS - 1.4%
$ 6,250,000 The Pollution Control Financing Authority of Salem County 11/01 at 102 AA- $6,266,938
(New Jersey), Waste Disposal Revenue Bonds (E.I. du Pont
de Nemours and Company - Chambers Works Project), 1991 Series A,
6.500%, 11/15/21 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.1%
5,000,000 New Jersey Economic Development Authority, Economic 12/01 at 100 N/R 5,042,050
Development Revenue Bonds (J and J Snack Foods Corporation
Project), Series 1991, 7.250%, 12/01/05
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.2%
3,000,000 New Jersey Economic Development Authority, School Revenue 2/08 at 101 N/R 2,691,990
Bonds (Gill/St. Bernard School), Series 1998, 6.000%, 2/01/25
1,575,000 New Jersey Educational Facilities Authority, Seton Hall University 7/01 at 102 A- 1,660,145
Project Revenue Bonds, 1991 Series, Project D, 7.000%, 7/01/21
New Jersey Educational Facilities Authority, Revenue Bonds,
Saint Peters College Issue, 1998 Series B:
1,000,000 5.375%, 7/01/18 7/08 at 102 BBB 893,260
1,750,000 5.500%, 7/01/27 7/08 at 102 BBB 1,523,725
1,250,000 New Jersey Educational Facilities Authority, Seton Hall University 7/08 at 101 AAA 1,092,613
Project Revenue Refunding Bonds, 1998 Series, Project F,
5.000%, 7/01/21
245,000 New Jersey Higher Education Assistance Authority, Senior 7/01 at 102 A 256,123
Student Loan Revenue Bonds, 1991 Series A,
7.200%, 7/01/09 (Alternative Minimum Tax)
5,675,000 New Jersey Higher Educational Assistance Authority, Student 6/07 at 102 AAA 5,636,126
Loan Revenue Bonds, New Jersey Class Loan Program,
1997 Series A, 5.800%, 6/01/16 (Alternative Minimum Tax)
Rutgers, The State University (The State University of New
Jersey), General Obligation Refunding Bonds, 1992 Series A:
2,900,000 6.500%, 5/01/13 5/02 at 102 AA 3,054,338
1,725,000 6.500%, 5/01/18 5/02 at 102 AA 1,808,990
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.8%
8,000,000 Pollution Control Financing Authority of Middlesex County 12/02 at 102 N/R 8,157,920
(New Jersey), Pollution Control Revenue Refunding Bonds,
Series 1992 (Amerada Hess Corporation Project), 6.875%, 12/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 7.9%
300,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/00 at 102 AAA 309,201
Bonds, Community Medical Center/Kensington Manor Care
Center Issue, Series E, 7.000%, 7/01/20
415,000 New Jersey Health Care Facilities Financing Authority, Refunding 2/01 at 102 Aa2 433,712
Revenue Bonds, Barnert Hospital (FHA-Insured Mortgage),
Series B, 6.750%, 8/01/11
9,300,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/01 at 102 AAA 9,758,304
Bonds, Centrastate Medical Center Issue, Series 1991A,
6.625%, 7/01/11
2,070,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/01 at 102 AAA 2,153,794
Bonds, Robert Wood Johnson University Hospital, Series B,
6.625%, 7/01/16
4,350,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/01 at 102 AAA 4,532,961
Bonds, Mercer Medical Center Issue, Series 1991, 6.500%, 7/01/10
New Jersey Health Care Facilities Financing Authority, Refunding
Revenue Bonds, Atlantic City Medical Center Issue, Series C:
3,600,000 6.800%, 7/01/05 7/02 at 102 A- 3,810,672
2,800,000 6.800%, 7/01/11 7/02 at 102 A- 2,946,272
2,535,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/03 at 102 Baa2 2,409,518
Bonds, Deborah Heart and Lung Center Issue, Series of 1993,
6.200%, 7/01/13
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HEALTH CARE (continued)
$ 4,320,000 New Jersey Health Care Facilities Financing Authority, Revenue and 7/08 at 101 Aaa $3,713,947
Refunding Bonds (Saint Barnabas Medical Center / West Hudson
Hospital Obligated Group), Series 1998A, 5.000%, 7/01/23
1,355,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/02 at 102 Baa3 1,415,447
Bonds, Palisades Medical Center Obligated Group Issue, Series 1992,
7.500%, 7/01/06
4,500,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101 AAA 3,960,045
Bonds, Meridian Health System Obligated Group Issue,
Series 1999, 5.250%, 7/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.3%
3,790,000 The Hudson County Improvement Authority, Multifamily Housing 6/04 at 100 AA 3,917,420
Revenue Bonds (Conduit Financing - Observer Park Project),
Series 1992 A, 6.900%, 6/01/22 (Alternative Minimum Tax)
1,385,000 Housing Finance Corporation of the City of Long Branch, Long Branch, 4/00 at 100 N/R 1,391,440
New Jersey, Section 8 Assisted Housing Revenue Bonds,
Washington Manor Associates Ltd., 1980 Elderly Project,
10.000%, 10/01/11
12,000,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/01 at 102 AAA 12,579,600
Housing Revenue Refunding Bonds (Presidential Plaza at
Newport Project - FHA-Insured Mortgages), 1991 Series 1,
7.000%, 5/01/30
4,500,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/05 at 102 AAA 4,534,020
Housing Revenue Bonds, 1995 Series A, 6.000%, 11/01/14
4,500,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/06 at 102 AAA 4,481,730
Housing Revenue Bonds, 1996 Series A, 6.250%, 5/01/28
(Alternative Minimum Tax)
New Jersey Housing and Mortgage Finance Agency, Section 8 Bonds,
1991 Series A:
3,000,000 6.800%, 11/01/05 11/01 at 102 AA+ 3,116,340
2,500,000 6.900%, 11/01/07 11/01 at 102 AA+ 2,601,250
4,700,000 6.950%, 11/01/08 11/01 at 102 AA+ 4,894,392
1,000,000 7.100%, 11/01/11 11/01 at 102 AA+ 1,043,940
9,650,000 New Jersey Housing and Mortgage Finance Agency, Housing 5/02 at 102 A+ 10,171,583
Revenue Bonds, 1992 Series A, 6.950%, 11/01/13
1,810,000 New Jersey Housing and Mortgage Finance Agency, Housing 11/02 at 102 A+ 1,894,708
Revenue Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.7%
5,500,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/00 at 102 AAA 5,525,410
Revenue Bonds, 1990 Series F-2, 6.300% 4/01/25
(Alternative Minimum Tax)
2,605,000 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101 1/2 AAA 2,655,693
Home Buyer Revenue Bonds, 1995 Series O, 6.350% 10/01/27
(Alternative Minimum Tax)
5,000,000 New Jersey Housing and Mortgage Finance Agency, 4/07 at 101 1/2 AAA 4,999,450
Home Buyer Revenue Bonds, 1996 Series S,
6.050%, 10/01/28 (Alternative Minimum Tax)
10,000,000 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101 1/2 AAA 9,554,900
Home Buyer Revenue Bonds, 1997 Series U,
5.850% 4/01/29 (Alternative Minimum Tax)
13,000,000 Puerto Rico Housing Finance Corporation, Homeownership 12/08 at 101 AAA 10,928,580
Mortgage Revenue Bonds (GNMA-Guaranteed Mortgage Loans),
1998 Series A, 5.200%, 12/01/32 (Alternative Minimum Tax)
710,000 Puerto Rico Housing Finance Corporation, Single Family Mortgage 10/01 at 102 AAA 729,106
Revenue Bonds, Portfolio One, Series C, 6.750%, 10/15/13
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.8%
1,265,000 Township of East Brunswick, in the County of Middlesex, 4/03 at 101 Aa2 1,220,093
New Jersey, General Obligation Refunding Bonds,
Series 1993, 5.125%, 4/01/13
County of Essex, New Jersey, General Obligation Refunding Bonds,
Tax-Exempt Bonds of 1996, Series A-1:
3,000,000 6.000%, 11/15/07 No Opt. Call Aaa 3,200,700
1,000,000 5.000%, 11/15/11 11/07 at 101 Aaa 973,320
2,320,000 City of Hoboken, Fiscal Year Adjustment General Obligation Bonds, No Opt. Call AAA 2,828,498
Series 1991, 8.900%, 8/01/06
5,250,000 Township of Howell, in the County of Monmouth, New Jersey, 1/02 at 102 AAA 5,535,758
General Obligation Refunding Bonds, Series 1991, 6.800%, 1/01/14
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAX OBLIGATION/GENERAL (continued)
$ 3,675,000 The City of New Jersey (Hudson County, New Jersey), Fiscal Year No Opt. Call AAA $4,343,630
Adjustment Bonds, Series B 1991, 8.400%, 5/15/06
1,000,000 The Monmouth County Improvement Authority (Monmouth County, 7/07 at 101 AAA 999,420
New Jersey), Revenue Bonds, Series 1997 (Howell Township
Board of Education Project), 5.800%, 7/15/17
2,000,000 Town of Morristown, in the County of Morris, New Jersey, General 8/05 at 102 AAA 2,097,160
Obligation Refunding Bonds, Series 1995, 6.500%, 8/01/19
8,000,000 State of New Jersey, General Obligation Refunding Bonds, Series F, 8/09 at 100 AA+ 7,901,840
5.250%, 8/01/12
5,000,000 State of New Jersey, General Obligation Bonds, Various Series, 8/02 at 101 1/2 AA+ 5,274,650
6.375%, 8/01/11
State of New Jersey, General Obligation Bonds, Series D:
4,000,000 5.750%, 2/15/06 No Opt. Call AA+ 4,182,680
5,000,000 6.000%, 2/15/11 No Opt. Call AA+ 5,336,450
10,000,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds 7/08 at 101 AAA 7,989,600
(General Obligation Bonds), Series 1998, 4.500%, 7/01/23
1,000,000 Township of West Deptford, County of Gloucester, New Jersey, 3/06 at 102 AAA 967,420
General Obligation Bonds, Series of 1996, 5.250%, 3/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 5.1%
The Bergen County Utilities Authority, 1998 Water Pollution
Control System Revenue Bonds, Series A:
2,760,000 5.000%, 12/15/13 12/07 at 101 AAA 2,607,400
3,400,000 5.000%, 12/15/14 12/07 at 101 AAA 3,170,636
1,000,000 The Board of Education of the Town of Dover, in the County of Morris, 12/01 at 100 AAA 1,030,500
New Jersey, as Lessee, Certificates of Participation, 6.600%, 6/01/11
2,535,000 The Board of Education of the Township of Mansfield, in the 3/06 at 102 AAA 2,576,599
County of Warren, New Jersey, Certificates of Participation,
5.900%, 3/01/15
4,000,000 New Jersey Economic Development Authority, Lease Revenue Bonds 11/08 at 101 Aaa 3,274,720
(Bergen County Administration Complex), Series 1998,
4.750%, 11/15/26
2,045,000 New Jersey Sports and Exposition Authority, State Contract Bonds, 3/02 at 102 AA- 2,129,990
1992 Series A, 6.500%, 3/01/19
1,895,000 North Bergen Township Municipal Utility Authority, Sewer Revenue No Opt. Call AAA 2,278,283
Refunding Bonds, Series 1993, 7.875%, 12/15/09
1,250,000 The Ocean County Utilities Authority (New Jersey), Wastewater 1/11 at 101 Aa2 1,096,112
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18 (WI)
1,180,000 The Raritan Township Municipal Utilities Authority (Hunterdon 5/02 at 102 A+ 1,231,649
County, New Jersey) (Secured by a Service Contract with the
Township of Raritan), Revenue Bonds (Bank Qualified), Series 1992,
6.450%, 5/01/12
1,175,000 The South Toms River Sewerage Authority (Ocean County, New Jersey), 11/02 at 102 N/R 1,212,177
Sewer Refunding Revenue Bonds (Bank-Qualified), Series 1992,
7.400%, 11/01/05
2,000,000 The Board of Education of the Township of West Orange, in the 10/09 at 101 Aaa 2,003,960
County of Essex, New Jersey, Certificates of Participation,
6.000%, 10/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 14.5%
7,000,000 Delaware River Port Authority (New Jersey and Pennsylvania), 1/06 at 102 AAA 6,494,460
Revenue Bonds, Series of 1995, 5.500%, 1/01/26
3,500,000 Delaware River Port Authority (New Jersey and Pennsylvania), 1/10 at 100 AAA 3,421,040
Revenue Bonds, Series of 1999, 5.750%, 1/01/22 (DD)
3,000,000 New Jersey Economic Development Authority, Economic Development 11/01 at 102 Baa2 3,082,410
Bonds (American Airlines Inc. Project), 7.100%, 11/01/31
(Alternative Minimum Tax)
3,500,000 New Jersey Highway Authority (Garden State Parkway), Senior 1/02 at 102 AA- 3,627,995
Parkway Revenue Refunding Bonds, 1992 Series, 6.250%, 1/01/14
3,000,000 New Jersey Highway Authority (Garden State Parkway), Senior 1/10 at 101 AA- 2,838,360
Parkway Revenue Refunding Bonds, 1999 Series, 5.625%, 1/01/30
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TRANSPORTATION (continued)
$ 5,000,000 New Jersey Turnpike Authority, Turnpike Revenue Refunding Bonds, 1/00 at 100 BBB+ $5,003,600
Series 1991 A, 6.900%, 1/01/14
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C:
9,000,000 6.500%, 1/01/08 No Opt. Call AAA 9,828,540
2,100,000 6.500%, 1/01/16 No Opt. Call BBB+ 2,231,796
3,150,000 The Port Authority of New York and New Jersey, Consolidated 7/04 at 101 AA- 3,124,391
Bonds, Ninety-Fifth Series, 6.125%, 7/15/29
(Alternative Minimum Tax)
4,300,000 The Port Authority of New York and New Jersey, Special Project 6/02 at 102 BBB- 4,526,567
Bonds, Series 1R Delta Air Lines, Inc. Project, LaGuardia Airport
Passenger Terminal, 6.950%, 6/01/08
4,500,000 The Port Authority of New York and New Jersey, Consolidated 1/03 at 101 AA- 4,392,585
Bonds, Eighty-Fourth Series, 6.000%, 1/15/28
(Alternative Minimum Tax)
5,000,000 The Port Authority of New York and New Jersey, Consolidated 10/02 at 101 AAA 4,896,250
Bonds, One Hundred Second Series, 5.875%, 10/15/27
12,130,000 The Port Authority of New York and New Jersey, Special Project 12/07 at 100 AAA 11,557,221
Bonds, JFK International Air Terminal LLC Project, Series 6,
5.750%, 12/01/25 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.9%
1,500,000 The Board of Education of the Township of Bedminster, County 3/01 at 102 A1*** 1,575,090
of Somerset, New Jersey, Certificates of Participation,
7.125%, 9/01/10 (Pre-refunded to 3/01/01)
7,000,000 The Bergen County Utilities Authority, 1992 Water Pollution 6/02 at 102 AAA 7,430,360
Control System Revenue Bonds, Series A, 6.500%, 12/15/12
(Pre-refunded to 6/15/02)
7,800,000 County of Essex, New Jersey, Fiscal Year Adjustment Bonds, 12/01 at 101 AAA 8,159,814
Series 1991, 6.500%, 12/01/11 (Pre-refunded to 12/01/01)
4,095,000 The Board of Education of the Township of Evesham, in the 9/01 at 102 AAA 4,327,227
County of Burlington, New Jersey, Certificates of Participation,
6.875%, 9/01/11 (Pre-refunded to 9/01/01)
8,200,000 Jersey City, Hudson County, New Jersey, Fiscal Year Adjustment 5/01 at 102 AAA 8,589,500
Bonds, Series A 1991, 6.600%, 5/15/11 (Pre-refunded to 5/15/01)
950,000 The Mercer County Improvement Authority, Mercer County, 11/00 at 102 Aa2*** 988,342
New Jersey, Revenue Bonds (County Courthouse Project),
Series 1991, 6.600%, 11/01/14 (Pre-refunded to 11/01/00)
3,500,000 The Monmouth County Improvement Authority, Monmouth County, 2/01 at 102 AAA 3,660,125
New Jersey, Sewage Facilities Revenue Refunding Bonds,
Series 1991, 6.750%, 2/01/13 (Pre-refunded to 2/01/01)
5,600,000 New Jersey Economic Development Authority, Lease Rental 3/02 at 102 AAA 5,958,232
Bonds (Liberty State Park Project), 1992 Series, 6.800%, 3/15/22
(Pre-refunded to 3/15/02)
2,845,000 New Jersey Health Care Facilities Financing Authority, Refunding 2/01 at 102 Aa2*** 2,974,732
Revenue Bonds, Barnert Hospital, (FHA-Insured Mortgage),
Series B, 6.800%, 8/01/19 (Pre-refunded to 2/01/01)
4,875,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/01 at 102 AAA 5,132,351
Bonds, St. Peteris Medical Center Issue, Series E,
6.875%, 7/01/11 (Pre-refunded to 7/01/01)
7,500,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/01 at 102 AAA 7,866,900
Bonds, JFK Health Systems Obligated Group Issue, Series 1991,
6.600%, 7/01/08 (Pre-refunded to 7/01/01)
5,025,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/01 at 102 N/R*** 5,263,034
Bonds, Pascack Valley Hospital Association Issue, Series 1991,
6.700%, 7/01/11 (Pre-refunded to 7/01/01)
90,000 New Jersey Health Care Facilities Financing Authority, Refunding 2/01 at 100 Aa2*** 92,339
Revenue Bonds, Barnett Hospital (FHA-Insured Mortgage),
Series B, 6.750%, 8/01/11 (Pre-refunded to 2/01/01)
2,080,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/02 at 102 Baa3*** 2,201,680
Bonds, Palisades Medical Center Obligated Group Issue,
Series 1992, 7.500%, 7/01/06 (Pre-refunded to 7/01/02)
3,800,000 New Jersey Economic Development Authority, Revenue Bonds 6/01 at 102 Aaa 3,993,116
(New Jersey Performing Arts Center Site Acquisition Project),
1991 Series, 6.750%, 6/15/12 (Pre-refunded to 6/15/01)
State of New Jersey, General Obligation Bonds (Various Bonds):
8,200,000 6.750%, 9/15/07 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+*** 8,613,608
850,000 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+*** 893,537
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 400,000 New Jersey Sports and Exposition Authority, State Contract 3/02 at 102 AAA $ 422,908
Bonds, 1992 Series A, 6.500%, 3/01/19 (Pre-refunded to 3/01/02)
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) 7/01 at 102 A-*** 525,795
925,000 7.000%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 A-*** 975,006
6,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/01 at 102 AAA 6,343,260
Series P, 7.000%, 7/01/11 (Pre-refunded to 7/01/01)
2,450,000 University of Medicine and Dentistry of New Jersey, Series E, 12/01 at 102 AA-*** 2,584,138
6.500%, 12/01/18 (Pre-refunded to 12/01/01)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.7%
3,700,000 Pollution Control Financing Authority of Camden County (Camden 12/01 at 102 B2 3,512,706
County, New Jersey), Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
3,500,000 Pollution Control Financing Authority of Camden County (Camden 12/01 at 102 B2 3,320,310
County, New Jersey), Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991A, 7.500%, 12/01/10
(Alternative Minimum Tax)
400,000 New Jersey Economic Development Authority, Pollution Control 7/01 at 103 A2 422,004
Revenue Bonds, 1985 Series (Jersey Central Power and Light
Company Project), 7.100%, 7/01/15
8,950,000 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101 1/2 AAA 8,818,256
Bonds, Series FF, 5.250%, 7/01/13
6,000,000 Puerto Rico Electric Power Authority, Power Revenue Refunding No Opt. Call AAA 6,780,900
Bonds, Series Y, 7.000%, 7/01/07
3,000,000 The Union County Utilities Authority (New Jersey), Solid Waste 6/08 at 101 AAA 2,556,540
Facility, Senior Lease Revenue Bonds (Ogden Martin Systems of
Union, Inc. Lessee), Series 1998 A, 5.000%, 6/01/23
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.0%
Cape May County Municipal Utilities Authority, Sewer Revenue
Refunding Bonds, Series 1992-A:
2,000,000 6.000%, 1/01/11 1/03 at 102 AAA 2,080,360
7,600,000 5.750%, 1/01/16 1/03 at 102 AAA 7,596,044
5,000,000 New Jersey Economic Development Authority, Water Facilities No Opt. Call N/R 5,015,750
Revenue Bonds, New Jersey - American Water Company,
Series 1991, 7.400%, 11/01/01 (Alternative Minimum Tax)
7,500,000 New Jersey Economic Development Authority, Water Facilities 5/06 at 102 AAA 7,318,500
Revenue Bonds, New Jersey - American Water Company,
Series 1996, 6.000%, 5/01/36 (Alternative Minimum Tax)
6,250,000 New Jersey Economic Development Authority, Water Facilities 7/08 at 102 AAA 5,347,500
Revenue Bonds, New Jersey - American Water Company,
Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax)
4,000,000 Passaic Valley Sewerage Commissioners (State of New Jersey), 12/02 at 102 AAA 3,992,960
Sewer System Bonds, Series D, 5.800%, 12/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
$ 442,580,000 Total Investments - (cost $441,605,269) - 99.4% 444,369,037
=============
Other Assets Less Liabilities - 0.6% 2,689,859
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $447,058,896
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis (note
1).
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ)
December 31,1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BASIC MATERIALS - 0.4%
$ 930,000 New Jersey Economic Development Authority, Economic Growth 12/03 at 102 Aa3 $ 933,562
Bonds, Composite Issue, 1992 Second Series T, 5.300%, 12/01/07
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.1%
3,450,000 New Jersey Economic Development Authority, Economic Development No Opt. Call N/R 3,831,225
Bonds (Yeshiva Ktana of Passaic - 1992 Project), 8.000%, 9/15/18
3,000,000 New Jersey Economic Development Authority, School Revenue 2/08 at 101 N/R 2,691,990
Bonds (Gill/St. Bernard School), Series 1998, 6.000%, 2/01/25
825,000 New Jersey Educational Facilities Authority, Trenton State College 1/00 at 100 A+ 826,518
Issue, Revenue Bonds, Series 1976 D, 6.750%, 7/01/08
2,095,000 New Jersey Educational Facilities Authority, Refunding Revenue 7/02 at 102 AAA 2,184,729
Bonds, Trenton State College Issue, Series 1992E,
6.000%, 7/01/09
1,000,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/04 at 102 AAA 1,001,330
New Jersey Institute of Technology Issue, Series 1994A,
6.000%, 7/01/24
3,330,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/06 at 101 AAA 3,325,505
Montclair State University, Series 1996-C (Dormitory/Cafeteria
Facility), 5.400%, 7/01/12
2,500,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/06 at 101 AAA 2,509,075
Rowan College of New Jersey Issue, Series 1996 E, 6.000%, 7/01/21
710,000 New Jersey Higher Education Assistance Authority, Student Loan 7/02 at 102 A+ 731,463
Revenue Bonds, Series 1992 A, NJ Class Loan Program,
6.125%, 7/01/09 (Alternative Minimum Tax)
4,460,000 New Jersey Higher Education Assistance Authority, Student Loan 7/03 at 102 A+ 4,335,923
Revenue Bonds, Series 1993 A, NJ Class Loan Program,
5.300%, 7/01/10 (Alternative Minimum Tax)
2,250,000 New Jersey Higher Education Assistance Authority, Student 6/09 at 101 AAA 2,055,128
Loan Revenue Bonds, Series 1999 A, 5.250%, 6/01/18
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 4.3%
840,000 New Jersey Health Care Facilities Financing Authority, Refunding 8/04 at 102 AAA 886,494
Revenue Bonds, Wayne General Hospital Corporation Issue
(FHA-Insured Mortgage), Series B, 5.750%, 8/01/11
2,000,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/04 at 102 AAA 2,148,860
Bonds, Monmouth Medical Center Issue, Series C, 6.250%, 7/01/16
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Dover General Hospital and Medical Center Issue, Series
1994:
1,015,000 7.000%, 7/01/03 No Opt. Call AAA 1,086,669
800,000 7.000%, 7/01/04 No Opt. Call AAA 867,952
7,000,000 Puerto Rico Industrial, Medical, Educational and Environmental 12/03 at 103 A2 6,055,770
Pollution Control Facilities Financing Authority, Adjustable Rate
Industrial Revenue Bonds (American Home Products
Corporation), 1983 Series A, 5.100%, 12/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.6%
845,000 Housing Finance Corporation of the City of Long Branch, Long 4/00 at 100 N/R 848,929
Branch, New Jersey, Section 8 Assisted Housing Revenue
Bonds, Washington Manor Associates Ltd., 1980 Elderly Project,
10.000%, 10/01/11
4,000,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/01 at 102 AAA 4,193,200
Housing Revenue Refunding Bonds (Presidential Plaza at
Newport Project n FHA-Insured Mortgages), 1991 Series 1,
7.000%, 5/01/30
2,875,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/05 at 102 AAA 2,896,735
Housing Revenue Bonds, 1995 Series A, 6.000%, 11/01/14
7,000,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101 1/2 AAA 6,490,330
Multifamily Housing Revenue Bonds, 1997 Series A,
5.550%, 5/01/27 (Alternative Minimum Tax)
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HOUSING/MULTIFAMILY (continued)
$ 2,250,000 New Jersey Housing and Mortgage Finance Agency, 5/00 at 100 A+ $2,258,370
Special Pledge Revenue Obligations, 1975 Series One,
9.000%, 11/01/18
New Jersey Housing and Mortgage Finance Agency, Housing Revenue
Bonds, 1992 Series A:
2,365,000 6.700%, 5/01/05 5/02 at 102 A+ 2,466,742
8,000,000 6.950%, 11/01/13 5/02 at 102 A+ 8,432,400
2,370,000 New Jersey Housing and Mortgage Finance Agency, Housing 11/02 at 102 A+ 2,480,916
Revenue Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.2%
1,000,000 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101 1/2 AAA 1,016,400
Home Buyer Revenue Bonds, 1995 Series O, 6.300% 10/01/23
(Alternative Minimum Tax)
525,000 New Jersey Housing and Mortgage Finance Agency, 4/06 at 101 1/2 AAA 520,391
Home Buyer Revenue Bonds, Series 1996-P, 5.650%, 4/01/14
1,000,000 New Jersey Housing and Mortgage Finance Agency, 4/06 at 101 1/2 AAA 982,360
Home Buyer Revenue Bonds, 1996 Series Q, 5.875% 4/01/17
(Alternative Minimum Tax)
2,500,000 New Jersey Housing and Mortgage Finance Agency, 4/07 at 101 1/2 AAA 2,499,725
Home Buyer Revenue Bonds, 1996 Series S, 6.050%, 10/01/28
(Alternative Minimum Tax)
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Revenue Bonds, 1997 Series U:
1,965,000 5.700%, 10/01/14 (Alternative Minimum Tax) 10/07 at 101 1/2 AAA 1,953,190
1,500,000 5.850%, 4/01/29 (Alternative Minimum Tax) 10/07 at 101 1/2 AAA
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 0.3%
775,000 New Jersey Economic Development Authority, Economic Growth 10/03 at 102 A+ 775,054
Bonds, Richard L. Tauber Composite Issue, 1993 Series H-2,
5.000%, 10/01/05 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.3%
3,255,000 New Jersey Economic Development Authority (Morris Hall/ 4/03 at 103 A+ 3,339,532
St. Lawrence, Inc. Project), Series 1993A, 6.150%, 4/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.8%
785,000 County of Morris, New Jersey, General Improvement Bonds of 1993, No Opt. Call AAA 782,606
5.125%, 5/13/11
State of New Jersey, General Obligation Bonds, Series D:
2,760,000 5.750%, 2/15/06 No Opt. Call AA+ 2,886,049
4,000,000 5.800%, 2/15/07 No Opt. Call AA+ 4,202,480
2,500,000 6.000%, 2/15/11 No Opt. Call AA+ 2,668,225
1,560,000 6.000%, 2/15/13 No Opt. Call AA+ 1,653,865
4,000,000 County of Passaic, State of New Jersey, General Obligation No Opt. Call AAA 3,937,520
Refunding Bonds, Series 1993, 5.125%, 9/01/12
5,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds 7/05 at 101 1/2 AAA 4,862,500
of 1995 (General Obligation Bonds), 5.750%, 7/01/24
1,800,000 The Township of Woodbridge, in the County of Middlesex, 7/09 at 102 Aaa 1,659,078
State of New Jersey, Sewer Utility Bonds, Series 1999,
5.300%, 7/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 12.8%
1,275,000 Camden County Improvement Authority (Camden County, 10/05 at 102 AAA 1,256,564
New Jersey), County Guaranteed Lease Revenue Bonds,
Series 1995, 5.625%, 10/01/15
1,000,000 Hudson County Improvement Authority (State of New Jersey), 1/08 at 101 1/2 AAA 910,030
Utility System Revenue Bonds (Harrison Franchise Acquisition
Project), Series 1997, 5.350%, 1/01/27
1,000,000 The Jersey City Sewerage Authority (Hudson County, New Jersey), No Opt. Call AAA 1,072,060
Sewer Revenue Refunding Bonds, Series 1993, 6.250%, 1/01/14
2,000,000 New Jersey Economic Development Authority, Lease Revenue 11/08 at 101 Aaa 1,637,360
Bonds (Bergen County Administration Complex), Series 1998,
4.750%, 11/15/26
1,000,000 New Jersey Economic Development Authority, Revenue Bonds 8/03 at 102 AAA 1,001,610
(Public Schools Small Project Loan Program), Series 1993,
5.400%, 8/15/12
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAX OBLIGATION/LIMITED (continued)
$ 1,500,000 New Jersey Economic Development Authority, Market Transition No Opt. Call AAA $1,630,560
Facility Senior Lien Revenue Bonds, 1994 Series A, 7.000%, 7/01/04
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, 1995 Series A:
750,000 5.500%, 6/15/12 6/05 at 102 AAA 753,848
5,000,000 5.000%, 6/15/15 6/05 at 102 AAA 4,592,800
1,100,000 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102 AAA 1,075,910
System Bonds, 1995 Series B, 5.500%, 6/15/15
510,000 The Board of Education of the Township of Piscataway, in the 6/03 at 102 AAA 513,096
County of Middlesex, New Jersey, Certificates of Participation,
1993 Series, 5.375%, 12/15/10
8,160,000 Puerto Rico Public Buildings Authority, Public Education and 7/03 at 101 1/2 A 8,131,032
Health Facilities Refunding Bonds, Series M, Guaranteed
by the Commonwealth of Puerto Rico, 5.750%, 7/01/15
7,500,000 Puerto Rico Municipal Finance Agency, 1999 Series A Bonds, 8/09 at 101 AAA 7,330,350
5.500%, 8/01/17
1,000,000 The Stony Brook Regional Sewerage Authority (Princeton, No Opt. Call AA- 1,012,450
New Jersey), Revenue Refunding Bonds, 1993 Series B,
5.450%, 12/01/12
2,250,000 Western Monmouth Utilities Authority (Monmouth County, 2/05 at 102 AAA 2,254,433
New Jersey), Revenue Refunding Bonds, 1995 Series A,
5.600%, 2/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.3%
5,000,000 Delaware River Port Authority, Port District Project Bonds, 1/08 at 101 AAA 4,429,900
Series B of 1998, 5.000%, 1/01/19
4,245,000 Delaware River Port Authority, Revenue Bonds, Series of 1995, 1/06 at 102 AAA 3,938,426
5.500%, 1/01/26
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C:
1,000,000 6.500%, 1/01/08 No Opt. Call BBB+ 1,075,060
5,420,000 6.500%, 1/01/16 No Opt. Call AAA 5,903,464
7,920,000 6.500%, 1/01/16 No Opt. Call BBB+ 8,417,059
The Port Authority of New York and New Jersey, Consolidated
Bonds, Ninety-Ninth Series:
1,200,000 5.750%, 11/01/09 (Alternative Minimum Tax) 5/05 at 101 AAA 1,235,088
2,500,000 5.750%, 11/01/14 (Alternative Minimum Tax) 5/05 at 101 AAA 2,504,950
3,000,000 6.600%, 10/01/23 (Alternative Minimum Tax) 10/04 at 101 AAA 3,162,900
1,500,000 The Port Authority of New York and New Jersey, Consolidated Bonds, 7/06 at 101 AA- 1,500,495
One Hundred and Sixth Series, 6.000%, 7/01/16
(Alternative Minimum Tax)
2,500,000 The Port Authority of New and New Jersey, Consolidated Bonds, 6/05 at 101 AAA 2,439,025
One Hundredth Series, 5.750%, 12/15/20
6,000,000 The Port Authority of New York and New Jersey, Consolidated 6/05 at 101 AA- 5,695,740
Bonds, One Hundred Twelfth Series, 5.250%, 12/01/13
(Alternative Minimum Tax)
The Port Authority of New York and New Jersey, Special Project
Bonds, Series 6, JFK International Air Terminal LLC Project:
10,000,000 5.750%, 12/01/22 (Alternative Minimum Tax) 12/07 at 102 AAA 9,588,200
11,000,000 5.750%, 12/01/25 (Alternative Minimum Tax) 12/07 at 100 AAA 10,480,580
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.3%
1,000,000 The Essex County Utilities Authority (Essex County, New Jersey), 4/06 at 102 AAA 1,051,600
Solid Waste System Revenue Bonds (Secured by a County
Deficiency Agreement with the County of Essex), Solid Waste
System Tax Exempt Revenue Bonds, 5.600%, 4/01/16
(Pre-refunded to 4/01/06)
1,000,000 State of New Jersey, General Obligation Bonds (Various Series), 9/01 at 101 1/2 AA+*** 1,051,220
6.800%, 9/15/11 (Pre-refunded to 9/15/01)
New Jersey Educational Facilities Authority, Revenue Bonds,
Trenton State College Issue, Series 1996 A:
4,000,000 5.100%, 7/01/21 (Pre-refunded to 7/01/06) 7/06 at 101 AAA 4,073,280
3,750,000 5.125%, 7/01/24 (Pre-refunded to 7/01/06) 7/06 at 101 AAA 3,823,875
1,595,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 1,761,279
1984 Series, 10.375%, 1/01/03
3,500,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/02 at 101 1/2 AAA 3,694,950
Series R, 6.250%, 7/01/17 (Pre-refunded to 7/01/02)
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GUARANTEED (continued)
Sparta Township School District, General Obligation Bonds
(Unlimited Tax):
$ 1,100,000 5.800%, 9/01/19 (Pre-refunded to 9/01/06) 9/06 at 100 AAA $1,154,747
1,100,000 5.800%, 9/01/20 (Pre-refunded to 9/01/06) 9/06 at 100 AAA 1,154,747
1,100,000 5.800%, 9/01/21 (Pre-refunded to 9/01/06) 9/06 at 100 AAA 1,154,747
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.5%
4,510,000 Pollution Control Financing Authority of Camden County No Opt. Call B2 4,398,017
(Camden County, New Jersey), Solid Waste Disposal and
Resource Recovery System Revenue Bonds, Series 1991 C,
7.125%, 12/01/01 (Alternative Minimum Tax)
6,500,000 Pollution Control Financing Authority of Camden County 12/01 at 102 B2 6,197,295
(Camden County, New Jersey), Solid Waste Disposal and
Resource Recovery System Revenue Bonds, Series 1991 D,
7.250%, 12/01/10
2,000,000 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101 1/2 AAA 1,970,560
Bonds, Series FF, 5.250%, 7/01/13
1,000,000 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/05 at 100 AAA 908,390
Bonds, Series Z, 5.250%, 7/01/21
3,500,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100 AAA 3,270,750
Series X, 5.500%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.3%
5,250,000 Cape May County Municipal Utilities Authority, Sewer 1/03 at 102 AAA 5,247,270
Revenue Refunding Bonds, Series 1992-A, 5.750%, 1/01/16
1,485,000 New Jersey Economic Development Authority, Water Facilities 8/01 at 102 A 1,547,712
Refunding Bonds (Elizabeth Water Company Project),
1991 Series A, 6.700%, 8/01/21 (Alternative Minimum Tax)
3,100,000 New Jersey Economic Development Authority, Water Facilities 3/04 at 102 AAA 3,019,927
Revenue Refunding Bonds (Hackensack Water Company
Project), 1994 Series B, 5.900%, 3/01/24 (Alternative Minimum Tax)
6,250,000 New Jersey Economic Development Authority, Water Facilities 7/08 at 102 AAA 5,347,500
Revenue Bonds (New Jersey-American Water Company Project),
1998 Series A, 5.250%, 7/01/38 (Alternative Minimum Tax)
7,000,000 The North Hudson Sewerage Authority (New Jersey), Sewer 8/06 at 101 AAA 6,243,440
Revenue Bonds, Series 1996, 5.125%, 8/01/22
1,040,000 Passaic Valley Sewerage Commissioners (New Jersey), 12/02 at 102 AAA 1,067,204
Sewer System Bonds, Series D, 5.750%, 12/01/10
1,500,000 The Wanaque Valley Regional Sewerage Authority No Opt. Call AAA 1,499,010
(Passaic County, New Jersey), Sewer Revenue Refunding Bonds,
1993 Series B, 5.750%, 9/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
$ 257,445,000 Total Investments - (cost $256,051,895) - 98.2% 253,892,535
=============
Other Assets Less Liabilities - 1.8% 4,763,993
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $258,656,528
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP)
December 31,1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSUMER CYCLICALS - 3.0%
$ 12,150,000 Pennsylvania Economic Development Finance Authority, 6/09 at 102 BBB+ $10,945,085
Solid Waste Disposal Revenue Bonds (USG Corporation Project),
Series 1999, 6.000%, 6/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.4%
2,000,000 Allegheny County Higher Education Building Authority 9/08 at 102 BBB 1,706,720
(Commonwealth of Pennsylvania), College Revenue Bonds,
Series A of 1998 (Chatham College), 5.250%, 9/01/18
1,030,000 Delaware County Authority (Commonwealth of Pennsylvania), 8/01 at 100 AAA 1,062,960
University Revenue Bonds, Series of 1991 (Villanova University),
6.900%, 8/01/16
1,000,000 The General Municipal Authority of the Borough of Harveyis Lake, 11/09 at 100 A 958,560
Pennsylvania, College Revenue Bonds (College Misericordia
Project), Series of 1999, 6.000%, 5/01/19
1,450,000 Indiana County Industrial Development Authority, Pennsylvania, 11/06 at 100 AAA 1,383,315
Revenue Bonds (The Student Cooperative Association, Inc./
Indiana University of Pennsylvania Student Union Project), Series A
of 1999, 5.875%, 11/01/29
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds (The Student Cooperative Association, Inc./Indiana
University of Pennsylvania Student Union Project), Series B of
1999:
815,000 0.000%, 11/01/15 No Opt. Call AAA 317,182
815,000 0.000%, 11/01/16 No Opt. Call AAA 295,429
815,000 0.000%, 11/01/17 No Opt. Call AAA 275,274
815,000 0.000%, 11/01/18 No Opt. Call AAA 256,668
815,000 0.000%, 11/01/19 No Opt. Call AAA 239,080
4,970,000 Pennsylvania Higher Education Assistance Agency, Student No Opt. Call AAA 5,074,817
Loan Adjustable Rate Tender Revenue Refunding Bonds,
1985 Series A, 6.800%, 12/01/00
4,000,000 Pennsylvania Higher Education Assistance Agency, Student 9/01 at 102 AAA 4,228,080
Loan Revenue Bonds, Fixed Rate Bonds, 1991 Series C,
7.150%, 9/01/21 (Alternative Minimum Tax)
3,000,000 Pennsylvania Higher Education Assistance Agency, Student 9/02 at 102 AAA 3,013,440
Loan Revenue Bonds, Fixed Rate Bonds, 1992 Series C,
6.400%, 3/01/22 (Alternative Minimum Tax)
3,825,000 The Pennsylvania State University, Refunding Bonds, Series 1992, 3/01 at 102 AA- 3,976,814
6.250%, 3/01/11
2,900,000 Scranton-Lackawanna Health and Welfare Authority, City 3/02 at 102 A- 3,015,130
of Scranton, Lackawanna County, Pennsylvania, University Revenue
Bonds (University of Scranton Project), 1992 Series A,
6.500%, 3/01/13
8,445,000 Swarthmore Borough Authority (Pennsylvania), Swarthmore 9/08 at 100 Aaa 7,108,748
College Revenue Bonds, Series of 1998, 5.000%, 9/15/28
405,000 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at 102 N/R 427,927
College Misericordia Revenue Refunding Bonds, Series B
of 1992, 7.750%, 12/01/12
645,000 The General Municipal Authority of the City of Wilkes-Barre, 12/00 at 100 N/R 706,023
College Misericordia Revenue Refunding Bonds, Series A
of 1992, 7.750%, 12/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 2.6%
3,520,000 The Hospitals and Higher Education Facilities Authority of 12/01 at 102 AAA 3,715,642
Philadelphia, Hospital Revenue Refunding Bonds (Magee
Rehabilitation Hospital Project), Series of 1991, 7.000%, 12/01/10
5,500,000 Health Care Facilities Authority of Sayre, Variable Rate Hospital 6/01 at 103 AAA 5,827,525
Revenue Bonds (VHA of Pennsylvania, Inc., Capital Asset
Financing Program), Guthrie Healthcare System
Conversion, Series of 1985E, 7.200%, 12/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.3%
995,000 Urban Redevelopment Authority of Pittsburgh, Redevelopment 2/02 at 102 A 1,015,129
Mortgage Revenue Bonds, 1992 Series C, 7.125%, 8/01/13
(Alternative Minimum Tax)
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HOUSING/SINGLE FAMILY - 10.7%
$ 1,995,000 Allegheny County Residential Finance Authority, Single Family 11/08 at 102 Aaa $1,737,805
Mortgage Revenue Bonds, 1998 Series DD-2, 5.400%, 11/01/29
(Alternative Minimum Tax)
10,885,000 Allegheny County Residential Finance Authority, Single Family No Opt. Call Aaa 1,481,884
Mortgage Revenue Bonds, 1994 Series Y, 0.000%, 5/01/27
(Alternative Minimum Tax)
210,000 Redevelopment Authority of the City of Altoona (Pennsylvania), 12/01 at 102 A3 216,023
Home Improvement Loan Revenue Bonds, Cities of Altoona and
Meadville Program (FHA-Insured Title 1 Loans), Series of 1991,
7.150%, 12/01/09 (Alternative Minimum Tax)
1,815,000 Redevelopment Authority of the County of Berks (Pennsylvania), No Opt. Call A+ 1,861,736
Senior Single Family Mortgage Revenue Bonds, 1986 Series A,
8.000%, 12/01/17 (Alternative Minimum Tax)
3,860,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/02 at 102 AA+ 3,959,086
Revenue Bonds, Series 1992-33, 6.900%, 4/01/17
1,000,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/02 at 102 AA+ 1,024,870
Revenue Bonds, Series 1992-34B, 7.000%, 4/01/24
(Alternative Minimum Tax)
2,000,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/05 at 102 AA+ 2,008,300
Revenue Bonds, Series 1995-46, 6.200%, 10/01/14
(Alternative Minimum Tax)
1,000,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 991,020
Revenue Bonds, Series 1996-48, 6.150%, 4/01/25
(Alternative Minimum Tax)
5,725,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 5,797,250
Revenue Bonds, Series 1996-49, 6.450%, 4/01/25
(Alternative Minimum Tax)
4,000,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 4,027,560
Revenue Bonds, Series 1996-50B, 6.350%, 10/01/27
(Alternative Minimum Tax)
5,000,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 5,008,950
Revenue Bonds, Series 1996-52B, 6.250%, 10/01/24
(Alternative Minimum Tax)
5,000,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/07 at 101 1/2 AA+ 4,692,200
Revenue Bonds, Series 1997-59A, 5.750%, 10/01/23
(Alternative Minimum Tax)
1,585,000 Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue 4/06 at 102 AAA 1,603,893
Bonds, 1996 Series C, 6.550%, 4/01/28 (Alternative Minimum Tax)
1,105,000 Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue 4/07 at 102 AAA 1,109,486
Bonds, 1997 Series A, 6.250%, 10/01/28 (Alternative Minimum Tax)
2,865,000 Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue 10/01 at 102 AAA 2,921,068
Bonds, 1991 Series G, 7.050%, 4/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0%
3,225,000 Montgomery County Higher Education and Health Authority, 1/06 at 101 BBB 2,977,965
Mortgage Revenue Bonds (Waverly Heights Project),
Series 1996, 6.375%, 1/01/26
630,000 The Hospitals and Higher Education Facilities Authority of 8/02 at 102 A- 657,140
Philadelphia, Hospital Revenue Bonds (Childrenis Seashore House),
Series 1992A, 7.000%, 8/15/03
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.3%
Redevelopment Authority of the City of Harrisburg, Dauphin
County, Pennsylvania, Guaranteed Revenue Bonds, Series B of
1998:
2,750,000 0.000%, 5/01/24 5/16 at 68 1/32 AAA 588,143
2,750,000 0.000%, 11/01/24 5/16 at 66 5/16 AAA 569,800
5,160,000 0.000%, 5/01/25 5/16 at 64 9/16 AAA 1,033,290
McKeesport Area School District (Allegheny County,
Pennsylvania), General Obligation Bonds, Series of 1999C:
3,430,000 0.000%, 10/01/23 No Opt. Call AAA 775,352
3,380,000 0.000%, 10/01/24 No Opt. Call AAA 715,985
3,420,000 0.000%, 10/01/25 No Opt. Call AAA 678,733
2,340,000 0.000%, 10/01/26 No Opt. Call AAA 434,983
2,340,000 0.000%, 10/01/27 No Opt. Call AAA 408,026
2,340,000 0.000%, 10/01/29 No Opt. Call AAA 359,143
7,500,000 County of Montgomery, Pennsylvania, General Obligation Bonds, 7/09 at 100 Aaa 6,385,200
Series 1999, 5.000%, 7/15/24
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAX OBLIGATION/GENERAL (continued)
$ 6,000,000 Commonwealth of Pennsylvania, General Obligation Bonds, 3/02 at 101 1/2 AA $6,263,760
First Series of 1992, 6.375%, 9/15/11
15,000,000 The School District of Philadelphia, Pennsylvania, General 9/05 at 101 AAA 13,703,100
Obligation Bonds, Series B of 1995, 5.500%, 9/01/25
5,000,000 State Public School Building Authority (Commonwealth of 3/01 at 100 AAA 5,111,000
Pennsylvania), School Revenue Bonds (Hazelton Area School
District Project), Series J of 1991, 6.500%, 3/01/08
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 5.3%
4,390,000 Fairview Township Authority, York County, Pennsylvania, Guaranteed 11/01 at 100 AAA 4,521,349
Sewer Revenue Bonds (Guaranteed by the Township of Fairview),
Series of 1991, 6.700%, 11/01/21
9,225,000 Pennsylvania Intergovernmental Cooperation Authority, Special Tax 6/09 at 100 AAA 7,460,719
Revenue Refunding Bonds (City of Philadelphia Funding Program),
Series of 1999, 4.750%, 6/15/23
1,090,000 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 11/09 at 100 A2 1,065,595
Tax Increment Bonds (Center Triangle Tax Increment Financing
District - PNC Bank Corporation Project), Series A of 1999,
6.100%, 5/01/19
7,450,000 Southeastern Pennsylvania Transportation Authority, Special Revenue 3/09 at 101 AAA 5,929,157
Bonds, Series A of 1999, 4.750%, 3/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.0%
2,500,000 County of Allegheny, Pennsylvania, Airport Revenue Bonds 1/02 at 102 AAA 2,552,350
(Greater Pittsburgh International Airport), Series 1992A and
1992B, 6.625%, 1/01/22 (Alternative Minimum Tax)
1,650,000 Pennsylvania Turnpike Commission, Pennsylvania, Turnpike Revenue 12/01 at 102 AA- 1,732,979
Bonds, Series N of 1991, 6.500%, 12/01/13
735,000 Pennsylvania Turnpike Commission, Pennsylvania, Turnpike Revenue 12/02 at 102 AAA 701,535
Bonds, Series O of 1992, 5.500%, 12/01/17
Philadelphia Authority for Industrial Development, Airport
Revenue Bonds, Series 1998A (Philadelphia Airport System
Project):
7,315,000 5.000%, 7/01/23 (Alternative Minimum Tax) 7/08 at 101 AAA 6,098,296
5,085,000 5.125%, 7/01/28 (Alternative Minimum Tax) 7/08 at 101 AAA 4,239,059
3,250,000 The Philadelphia Parking Authority, Airport Parking Revenue Bonds, 9/09 at 101 AAA 2,811,510
Series of 1999, 5.250%, 9/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 41.9%
6,300,000 Allegheny County Hospital Development Authority, Hospital 10/01 at 100 BBB+*** 6,555,276
Revenue Bonds (St. Margaret Memorial Hospital), Series 1991 A,
7.125%, 10/01/21 (Pre-refunded to 10/01/01)
1,355,000 Bensalem Township School District, Bucks County, Pennsylvania, 7/06 at 100 AAA 1,422,845
General Obligation Bonds, Series of 1996, 5.850%, 7/15/12
(Pre-refunded to 7/15/06)
Bethlehem Authority, Northampton and Lehigh Counties, Pennsylvania,
Water Revenue Bonds, Series of 1992:
3,045,000 6.250%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 100 AAA 3,140,278
4,000,000 6.250%, 11/15/21 (Pre-refunded to 11/15/01) 11/01 at 100 AAA 4,125,160
5,000,000 Butler County Hospital Authority (Butler County, Pennsylvania), 6/01 at 102 AAA 5,263,700
Hospital Revenue Bonds (North Hills Passavant Hospital),
Series 1991 A, 7.000%, 6/01/22 (Pre-refunded to 6/01/01)
3,470,000 Delaware County Authority (Commonwealth of Pennsylvania), 8/01 at 100 AAA 3,596,204
University Revenue Bonds (Villanova University), Series of 1991,
6.900%, 8/01/16 (Pre-refunded to 8/01/01)
3,400,000 Erie County Hospital Authority, Pennsylvania, Hospital Revenue 2/01 at 102 AAA 3,567,654
Bonds (Hamot Medical Center), 1991 Series A, 7.100%, 2/15/10
(Pre-refunded to 2/15/01)
2,000,000 Hampton Township School District (Allegheny County, 11/04 at 100 AAA 2,169,760
Pennsylvania), General Obligation Bonds, Series of 1995,
6.750%, 11/15/21 (Pre-refunded to 11/15/04)
3,400,000 Lehigh County General Purpose Authority, College Revenue 6/02 at 100 AAA 3,566,124
Bonds (Allentown College of St. Francis de Sales Project),
Series of 1992, 6.750%, 12/15/12 (Pre-refunded to 6/15/02)
3,130,000 McKean County Solid Waste Authority (McKean County, 1/02 at 100 AAA 3,252,195
Pennsylvania), Guaranteed Solid Waste Revenue Bonds,
Series of 1992, 6.650%, 1/01/12 (Pre-refunded to 1/01/02)
4,500,000 Pennsylvania Turnpike Commission, Pennsylvania, Turnpike 12/01 at 102 AAA 4,802,895
Revenue Bonds, Series I of 1986, 7.200%, 12/01/17
(Pre-refunded to 12/01/01)
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 1,250,000 Philadelphia Authority for Industrial Development, Revenue Bonds 5/02 at 102 N/R*** $1,324,275
(National Board of Medical Examiners Project), Series of 1992,
6.750%, 5/01/12 (Pre-refunded to 5/01/02)
4,270,000 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 6/01 at 102 AAA 4,541,017
Thirteenth Series, 7.700%, 6/15/21 (Pre-refunded to 6/15/01)
8,530,000 The Hospitals and Higher Education Facilities Authority of 8/01 at 102 Aa*** 9,020,902
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)
1,850,000 The School District of Philadelphia, Pennsylvania, General 5/02 at 100 3/4 AAA 1,939,836
Obligation Bonds, Series A of 1992, 6.500%, 5/15/05
(Pre-refunded to 5/15/02)
3,250,000 The School District of Philadelphia, Pennsylvania, General 7/01 at 102 AAA 3,441,133
Obligation Bonds, Series B of 1991, 7.000%, 7/01/05
(Pre-refunded to 7/01/01)
10,625,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue 8/01 at 100 AAA 11,026,838
Bonds, Sixteenth Series, 7.000%, 8/01/18
(Pre-refunded to 8/01/01)
8,800,000 The Hospitals and Higher Education Facilities Authority of 12/01 at 102 N/R*** 9,369,712
Philadelphia, Hospital Revenue Bonds (Presbyterian Medical
Center of Philadelphia), Series of 1991, 7.250%, 12/01/21
(Pre-refunded to 12/01/01)
6,110,000 The Hospitals and Higher Education Facilities Authority of 2/02 at 102 Aaa 6,448,250
Philadelphia (Pennsylvania), 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)
The Philadelphia Municipal Authority, Philadelphia,
Pennsylvania, Justice Lease Revenue Bonds, 1991 Series B:
1,500,000 7.100%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 102 AAA 1,596,795
9,900,000 7.125%, 11/15/18 (Pre-refunded to 11/15/01) 11/01 at 102 AAA 10,543,104
3,000,000 The Pittsburgh Water and Sewer Authority, Water and Sewer No Opt. Call AAA 3,278,190
System Revenue Refunding Bonds, Series of 1986, 7.625%, 9/01/04
7,065,000 The Pittsburgh Water and Sewer Authority (Pennsylvania), Water 9/01 at 102 AAA 7,421,853
and Sewer System Revenue Refunding Bonds, Series A of 1991,
6.500%, 9/01/14 (Pre-refunded to 9/01/01)
2,500,000 Saint Mary Hospital Authority, Hospital Revenue Bonds 7/02 at 102 AAA 2,651,625
(Franciscan Health System/Saint Mary Hospital of Langhorne Inc.),
Series 1992A, 6.500%, 7/01/12 (Pre-refunded to 7/01/02)
3,730,000 Scranton-Lackawanna Health and Welfare Authority, City 6/00 at 102 N/R*** 3,857,976
of Scranton, Lackawanna County, Pennsylvania, University
Revenue Bonds, 1990 Series A, 7.400%, 6/15/10
(Pre-refunded to 6/15/00)
8,475,000 Somerset County General Authority, Commonwealth of 10/01 at 100 AAA 8,835,188
Pennsylvania, Commonwealth Lease Revenue Bonds,
Series of 1991, 7.000%, 10/15/13 (Pre-refunded to 10/15/01)
3,500,000 Upper Merion Area School District, Montgomery County, 9/01 at 100 Aa2*** 3,631,950
Pennsylvania, General Obligation Bonds, Series of 1993,
6.900%, 9/01/16 (Pre-refunded to 9/01/01)
3,000,000 Warrington Township Municipal Authority, Bucks County, Pennsylvania, 11/15 at 100 AAA 3,455,430
Water and Sewer Revenue Bonds, Series of 1991,
7.100%, 12/01/21 (Pre-refunded to 11/15/15)
5,000,000 West Chester Area School District, Chester and Delaware Counties, 1/01 at 100 Aa1*** 5,125,800
Pennsylvania, General Obligation Bonds, Series A of 1991,
6.700%, 1/15/11 (Pre-refunded to 1/15/01)
5,450,000 The Municipal Authority of the Borough of West View (Allegheny No Opt. Call AAA 7,107,018
County, Pennsylvania), Special Obligation Bonds, Series of 1985A,
9.500%, 11/15/14
5,000,000 County of Westmoreland, Commonwealth of Pennsylvania, General 8/01 at 100 AAA 5,164,900
Obligation Bonds, Series of 1992, 6.700%, 8/01/09
(Pre-refunded to 8/01/01)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.3%
3,750,000 Delaware County Industrial Development Authority, Pollution 4/01 at 102 A 3,918,675
Control Revenue Refunding Bonds (Philadelphia Electric Company
Project), 1991 Series A, 7.375%, 4/01/21
400,000 Greater Lebanon Refuse Authority, Lebanon County, Pennsylvania, 11/02 at 100 A- 411,676
Solid Waste Revenue Bonds, Series of 1992, 7.000%, 11/15/04
4,000,000 Lehigh County Industrial Development Authority, Pollution 8/05 at 102 AAA 3,986,240
Control Revenue Refunding Bonds (Pennsylvania Power and
Light Company Project), 1995 Series A, 6.150%, 8/01/29
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UTILITIES (continued)
$ 3,000,000 Luzerne County Industrial Development Authority, Exempt Facilities 10/02 at 102 A $3,184,980
Revenue Refunding Bonds (Pennsylvania Gas and Water
Company Project), 1992 Series A, 7.200%, 10/01/17
(Alternative Minimum Tax)
3,550,000 Luzerne County Industrial Development Authority, Exempt Facilities 12/02 at 102 A 3,768,822
Revenue Bonds (Pennsylvania Gas and Water Company Project),
1992 Series B, 7.125%, 12/01/22 (Alternative Minimum Tax)
5,000,000 Luzerne County Industrial Development Authority, Exempt Facilities 12/04 at 102 AAA 5,376,500
Revenue Refunding Bonds (Pennsylvania Gas and Water Company
Project), 1994 Series A, 7.000%, 12/01/17
(Alternative Minimum Tax)
5,500,000 Montgomery County Industrial Development Authority (Pennsylvania), 1/03 at 100 A+ 5,663,570
Resource Recovery Revenue Bonds (Montgomery County Project),
Series 1989, 7.500%, 1/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.8%
20,000,000 The Pittsburgh Water and Sewer Authority, Water and Sewer System No Opt. Call AAA 3,737,400
First Lien Revenue Bonds, Series B of 1998, 0.000%, 9/01/26
12,625,000 Municipal Authority of Westmoreland County (Westmoreland County, No Opt. Call AAA 2,857,161
Pennsylvania), Municipal Service Revenue Bonds,
Series of 1999A, 0.000%, 8/15/23
- ------------------------------------------------------------------------------------------------------------------------------------
$ 416,140,000 Total Investments - (cost $354,292,121) - 98.6% 355,913,755
=============
Other Assets Less Liabilities - 1.4% 5,026,825
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $360,940,580
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY)
December 31,1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL GOODS - 0.6%
$ 2,000,000 New Morgan Industrial Development Authority (Pennsylvania), 4/04 at 102 BB- $1,853,140
Solid Waste Disposal Revenue Bonds (New Morgan Landfill
Company, Inc. Project), Series 1994, 6.500%, 4/01/19
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.5%
4,000,000 Allegheny County Higher Education Building Authority (Commonwealth 11/09 at 102 A 3,402,880
of Pennsylvania), College Revenue Bonds (Thiel College),
Series A of 1999, 5.375%, 11/15/29
3,000,000 Chester County Health and Education Facilities Authority 10/08 at 102 BBB- 2,599,800
(Pennsylvania), College Revenue Bonds (Immaculata College),
Series of 1998, 5.625%, 10/15/27
1,350,000 Lancaster Higher Education Authority, City of Lancaster, 4/03 at 100 AAA 1,353,753
Pennsylvania, College Revenue Bonds (Franklin and Marshall
College Project), Series of 1993, 5.700%, 4/15/13
10,000,000 Pennsylvania Higher Education Assistance Agency, Student Loan 1/03 at 102 AAA 9,905,400
Revenue Bonds, 1988 Series D, 6.050%, 1/01/19
(Alternative Minimum Tax)
10,000,000 Pennsylvania Higher Education Assistance Agency, Student Loan No Opt. Call AAA 10,017,000
Revenue Bonds, 1984 Series A, 4.625%, 12/01/00
3,250,000 Pennsylvania Higher Educational Facilities Authority, 11/03 at 102 AAA 3,404,603
College Revenue Refunding Bonds (Allegheny College),
Series 1993A, 6.100%, 11/01/08
1,000,000 Pennsylvania Higher Educational Facilities Authority, LaSalle 5/08 at 101 Aaa 890,880
University Revenue Bonds, Series of 1998, 5.250%, 5/01/23
4,615,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/03 at 102 AAA 4,542,406
Bonds (Widener University), 1993 Series A, 5.250%, 7/15/11
3,340,000 State Public School Building Authority (Commonwealth of 3/03 at 100 AAA 3,344,977
Pennsylvania), College Revenue Bonds (Northamption County Area
Community College Project), Series U of 1993, 5.850%, 3/15/15
1,035,000 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at 102 N/R 1,093,591
College Misericordia Revenue Refunding Bonds, Series B of 1992,
7.750%, 12/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.0%
8,500,000 Allegheny County Hospital Development Authority (Pennsylvania), 5/06 at 102 AAA 8,126,935
Hospital Revenue Bonds (South Hills Health System),
Series A of 1996, 5.875%, 5/01/26
14,000,000 Allegheny County Hospital Development Authority (Pennsylvania), 4/07 at 102 AAA 12,849,900
Health Center Revenue Bonds (University of Pittsburgh Medical
Center System), Series 1997A, 5.625%, 4/01/27
8,400,000 Montgomery County Higher Education and Health Authority, Revenue 1/09 at 101 AAA 6,939,744
Bonds (Pottstown Healthcare Corporation), Series 1998,
5.000%, 1/01/27
485,000 Montgomery County Higher Education and Health Authority, 6/03 at 102 AAA 474,742
Hospital Revenue Bonds, (Abington Memorial Hospital),
Series A of 1993, 6.000%, 6/01/22
4,700,000 Pennsylvania Higher Educational Facilities Authority, 1/06 at 101 A 4,057,181
The University of Pennsylvania Health Services Revenue Bonds,
Series A of 1996, 5.750%, 1/01/22
City of Pottsville Hospital Authority, Hospital Revenue Bonds
(The Pottsville Hospital and Warne Clinic), Series of 1998:
2,000,000 5.500%, 7/01/18 7/08 at 100 BBB 1,681,420
2,000,000 5.625%, 7/01/24 7/08 at 100 BBB 1,666,740
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.2%
4,345,000 Bucks County Redevelopment Authority, Pennsylvania, Second Lien 8/03 at 100 Baa2 4,263,097
Multifamily Mortgage Revenue Bonds, Section 8 Assisted
(Country Commons Apartments), Series 1993A, 6.200%, 8/01/14
(Alternative Minimum Tax)
1,695,000 Luzerne County Housing Corporation, Mortgage Revenue Refunding 7/03 at 100 Aaa 1,698,407
Bonds (FHA-Insured Mortgage Loan - Freeland Apartments
Section 8 Assisted Project), Series 1993, 6.125%, 7/15/23
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HOUSING/MULTIFAMILY (continued)
$ 5,000,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding 7/02 at 102 AAA $5,230,750
Bonds, Issue 1992, 6.400%, 7/01/12
2,345,000 Swissvale Housing Development Corporation (An Instrumentality 7/03 at 100 Aa 2,319,557
of the Allegheny County Housing Authority), Multifamily Mortgage
Revenue Refunding Bonds (FHA-Insured Mortgage Loan -
Section 8 Assisted Swissvale Project), Series 1993C, 6.100%, 7/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.4%
860,000 Allegheny County Residential Finance Authority, Single Family 11/08 at 102 Aaa 773,518
Mortgage Revenue Bonds, 1998 Series DD-1, 5.350%, 11/01/19
(Alternative Minimum Tax)
3,250,000 Allegheny County Residential Finance Authority, Single Family 11/08 at 102 Aaa 2,831,010
Mortgage Revenue Bonds, 1998 Series DD-2, 5.400%, 11/01/29
(Alternative Minimum Tax)
2,000,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102 AA+ 1,866,180
Revenue Bonds, Series 1993-37A, 5.450%, 10/01/17
1,120,000 Pennsylvania Housing Finance Agency, Single Family Mortgage No Opt. Call AA+ 1,214,998
Revenue Bonds, Series 1996-47, 6.750%, 10/01/06
(Alternative Minimum Tax)
3,305,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 3,330,911
Revenue Bonds, Series 1996-51, 6.375%, 4/01/28
(Alternative Minimum Tax)
2,750,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/06 at 102 AA+ 2,685,898
Revenue Bonds, Series 1997-54A, 6.150%, 10/01/22
(Alternative Minimum Tax)
Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 1997-56A:
1,500,000 6.050%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102 AA+ 1,485,825
4,000,000 6.150%, 10/01/27 (Alternative Minimum Tax) 4/07 at 102 AA+ 3,962,720
1,645,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/07 at 101 1/2 AA+ 1,568,787
Revenue Bonds, Series 1997-58A, 5.950%, 10/01/28
(Alternative Minimum Tax)
1,645,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/07 at 101 1/2 AA+ 1,565,119
Revenue Bonds, Series 1997-59A, 5.700%, 4/01/17
(Alternative Minimum Tax)
1,700,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/08 at 101 1/2 AA+ 1,542,291
Revenue Bonds, Series 1998-62A Bonds, 5.500%, 10/01/22
(Alternative Minimum Tax)
1,500,000 Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue 4/06 at 102 AAA 1,521,765
Bonds, 1996 Series C, 6.500%, 10/01/23 (Alternative Minimum Tax)
Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue
Bonds, 1997 Series A:
845,000 6.150%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102 AAA 848,448
765,000 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102 AAA 767,043
1,375,000 Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue 4/03 at 102 AAA 1,392,463
Bonds, 1992 Series D, 6.500%, 4/01/17
2,460,000 Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue 4/03 at 102 AAA 2,509,544
Bonds, 1992 Series C-1, 6.800%, 10/01/25 (Alternative Minimum Tax)
615,000 Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue 4/04 at 102 AAA 649,920
Bonds, 1994 Series B, 6.950%, 10/01/10 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 0.7%
2,165,000 Montgomery County Industrial Development Authority, Health 6/03 at 102 N/R 2,146,121
Facilities Revenue Bonds, Series of 1993 (ECRI Project),
6.850%, 6/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3%
1,230,000 Pennsylvania Economic Development Financing Authority, Revenue Bonds 6/08 at 100 BBB 963,447
(Northwestern Human Services, Inc. Project), Series A of 1998,
5.250%, 6/01/28
Philadelphia Authority for Industrial Development
(Pennsylvania), Health Care Facilities Revenue Bonds, Series
1998A (Paul's Run):
1,350,000 5.750%, 5/15/18 5/08 at 102 N/R 1,131,624
1,650,000 5.875%, 5/15/28 5/08 at 102 N/R 1,349,750
4,000,000 Philadelphia Hospital and Higher Educational Facilities Authority 8/03 at 102 BBB+ 4,041,720
of Philadelphia, Revenue Refunding Bonds (Philadelphia MR Project),
Series 1992, 5.625%, 8/01/04
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAX OBLIGATION/GENERAL - 5.5%
Chichester School District, Delaware County, Pennsylvania,
General Obligation Bonds, Series of 1999:
$ 3,125,000 0.000%, 3/01/23 No Opt. Call AAA $ 740,313
3,125,000 0.000%, 3/01/24 No Opt. Call AAA 692,750
3,125,000 0.000%, 3/01/25 No Opt. Call AAA 648,031
Redevelopment Authority of the City of Harrisburg, Dauphin
County, Pennsylvania, Guaranteed Revenue Bonds, Series B of
1998:
1,750,000 0.000%, 5/01/22 5/16 at 75 9/16 AAA 426,703
2,750,000 0.000%, 11/01/22 5/16 at 73 5/8 AAA 649,688
2,750,000 5/01/23 5/16 at 71 23/32 AAA 628,072
2,750,000 0.000%, 11/01/23 5/16 at 69 7/8 AAA 608,493
4,305,000 County of Montgomery, Pennsylvania, General Obligation Bonds, 10/06 at 100 Aaa 3,938,343
Series B of 1996, 5.375%, 10/15/21
2,000,000 The School District of Philadelphia, Pennsylvania, General Obligation No Opt. Call AAA 2,152,760
Refunding Bonds, Series A of 1995, 6.250%, 9/01/09
3,500,000 The School District of Philadelphia, Pennsylvania, General Obligation 4/09 at 100 AAA 2,730,770
Bonds, Series A of 1999, 4.500%, 4/01/23
4,000,000 County of Somerset (Commonwealth of Pennsylvania), General 4/08 at 100 Aaa 3,356,120
Obligation Bonds, Series A of 1998, 5.000%, 10/01/27
1,305,000 Wallenpaupack Area School District, Wayne and Pike Counties, 4/01 at 100 AAA 1,306,044
Pennsylvania, General Obligation Bonds, Series of 1993, 5.500%, 4/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.2%
4,060,000 Delaware Valley Regional Finance Authority, Local Government 4/06 at 100 AAA 4,009,331
Revenue Bonds, Series A, 6.000%, 4/15/26
17,900,000 The Harrisburg Authority, Dauphin County, Pennsylvania, 9/07 at 100 AAA 16,766,751
Tax-Exempt Revenue Bonds (The City of Harrisburg Project),
Series II of 1997, 5.625%, 9/15/22
Pennsylvania Industrial Development Authority, Economic
Development Revenue Bonds, Series 1994:
2,000,000 7.000%, 7/01/06 No Opt. Call AAA 2,213,240
1,550,000 7.000%, 1/01/07 No Opt. Call AAA 1,721,074
1,000,000 7.000%, 7/01/07 No Opt. Call AAA 1,116,200
9,000,000 Public Auditorium Authority of Pittsburgh and Allegheny County 8/09 at 101 AAA 6,817,590
(Allegheny County, Pennsylvania), Hotel Room Excise Tax
Revenue Bonds, Series of 1999, 4.500%, 2/01/29
4,000,000 Public Auditorium District of Pittsburgh and Allegheny County 8/09 at 101 AAA 3,401,320
(Pennsylvania), Regional Asset District Sales Tax Revenue Bonds,
Series of 1999, 5.000%, 2/01/24
20,775,000 Southeastern Pennsylvania Transportation Authority, Special Revenue 3/09 at 101 AAA 16,533,992
Bonds, Series A of 1999, 4.750%, 3/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.6%
2,300,000 County of Allegheny, Pennsylvania, Airport Revenue Refunding 1/08 at 101 AAA 2,103,143
Bonds (Pittsburgh International Airport), Series 1997A ,
5.250%, 1/01/16 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.4%
750,000 Allegheny County Hospital Development Authority (Pennsylvania), 6/02 at 102 N/R*** 800,243
Health and Education Revenue Bonds (The Rehabilitation Institute
of Pittsburgh Project), Series 1992, 7.000%, 6/01/22
(Pre-refunded to 6/01/02)
3,000,000 Allegheny County Hospital Development Authority (Pennsylvania), 11/02 at 100 AAA 3,124,590
Health Center Revenue Bonds (Presbyterian University Health
System, Inc. Project), Series 1992A, 6.250%, 11/01/23
(Pre-refunded to 11/01/02)
2,000,000 Bangor Area School District, Northampton County, Pennsylvania, 3/06 at 100 AAA 2,059,400
General Obligation Bonds, Series B of 1996, 5.500%, 3/15/18
(Pre-refunded to 3/15/06)
2,500,000 Bensalem Township School District, Bucks County, Pennsylvania, 7/06 at 100 AAA 2,628,500
General Obligation Bonds, Series of 1996, 5.875%, 7/15/16
(Pre-refunded to 7/15/06)
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GUARANTEED (continued)
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Water Revenue Bonds, Series A of 1992:
$ 3,785,000 6.100%, 11/15/18 (Pre-refunded to 11/15/02) 11/02 at 100 AAA $3,933,296
3,100,000 6.100%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 100 AAA 3,221,458
1,500,000 Fort LeBoeuf School District (Erie County, Pennsylvania), General 1/03 at 100 AAA 1,547,910
Obligation Bonds, Series A of 1993, 5.800%, 1/01/16
(Pre-refunded to 1/01/03)
3,500,000 Hollidaysburg Sewer Authority (Pennsylvania), Guaranteed Sewer 1/03 at 100 AAA 3,640,105
Revenue Bonds, Series of 1993, 6.100%, 1/01/23
(Pre-refunded to 1/01/03)
1,500,000 Ligonier Valley School District (Westmoreland County, Pennsylvania), 3/04 at 100 AAA 1,568,970
General Obligation Bonds, Series of 1994, 6.000%, 3/01/23
(Pre-refunded to 3/01/04)
2,015,000 Montgomery County Higher Educational and Health Authority 6/03 at 102 AAA 2,127,679
(Pennsylvania), Hospital Revenue Bonds (Abington Memorial
Hospital), Series A of 1993, 6.000%, 6/01/22
(Pre-refunded to 6/01/03)
7,800,000 North Penn School District, Montgomery and Bucks Counties, 3/06 at 100 Aa3*** 7,864,194
Pennsylvania, General Obligation Bonds, Series of 1996,
5.125%, 3/01/17 (Pre-refunded to 3/01/06)
1,620,000 Pennsylvania Higher Educational Facilities Authority, College and No Opt. Call Aaa 1,838,992
University Revenue Bonds, 9th Series, 7.625%, 7/01/15
1,005,000 The Hospitals and Higher Education Facilities Authority of 5/04 at 102 AAA 1,071,250
Philadelphia, Community College Revenue Bonds (Community
College of Philadelphia), Series of 1994, 6.100%, 5/01/10
(Pre-refunded to 5/01/04)
1,000,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue 8/01 at 102 AAA 1,063,860
Bonds, Sixteenth Series, 7.500%, 8/01/10 (Pre-refunded to 8/01/01)
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1993:
955,000 5.750%, 6/15/13 (Pre-refunded to 6/15/03) 6/03 at 102 AAA 1,002,788
915,000 5.500%, 6/15/14 (Pre-refunded to 6/15/03) 6/03 at 102 AAA 953,567
The Hospitals and Higher Education Facilities Authority of
Philadelphia (Pennsylvania), Hospital Revenue Bonds
(Presbyterian Medical Center of Philadelphia), Series of 1993:
1,000,000 6.500%, 12/01/11 12/03 at 102 AAA 1,080,470
3,690,000 6.650%, 12/01/19 12/03 at 102 AAA 4,025,642
1,750,000 Pine-Richland School District (Allegheny County, Pennsylvania), 9/03 at 100 AAA 1,830,605
General Obligation Bonds, Series A of 1993, 6.100%, 9/01/18
(Pre-refunded to 9/01/03)
3,660,000 Rose Tree Media School District, Delaware County, Pennsylvania, 9/01 at 100 AAA 3,791,357
General Obligation Bonds, Series of 1993, 6.700%, 3/15/12
(Pre-refunded to 9/15/01)
2,500,000 Schuylkill Valley School District, Berks County, Pennsylvania, 4/03 at 100 AAA 2,586,400
General Obligation Bonds, Series of 1993, 5.850%, 4/15/13
(Pre-refunded to 4/15/03)
2,695,000 Wallenpaupack Area School District, Wayne and Pike Counties, 4/01 at 100 AAA 2,730,628
Pennsylvania, General Obligation Bonds, Series of 1993,
5.500%, 4/01/11 (Pre-refunded to 4/01/01)
1,650,000 The Municipal Authority of the Borough of West View (Allegheny No Opt. Call AAA 2,151,666
County, Pennsylvania), Special Obligation Bonds, Series of 1985A,
9.500%, 11/15/14
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.9%
8,000,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102 AAA 6,967,760
Exempt Facilities Revenue Bonds (Shippingport Project),
1998 Series A, 5.375%, 6/01/28 (Alternative Minimum Tax)
7,590,000 Indiana County Industrial Development Authority (Pennsylvania), 5/07 at 102 AAA 7,285,945
Pollution Control Revenue Bonds (Metropolitan Edison Company
Project), 1997 Series A, 5.950%, 5/01/27 (Alternative Minimum Tax)
15,000,000 Lehigh County Industrial Development Authority, Pollution Control 11/02 at 102 AAA 15,162,450
Revenue Refunding Bonds (Pennsylvania Power and Light
Company Project), 1992 Series A, 6.400%, 11/01/21
7,350,000 Luzerne County Industrial Development Authority, Exempt Facilities 10/02 at 102 A 7,803,201
Revenue Refunding Bonds (Pennsylvania Gas and Water Company
Project), 1992 Series A, 7.200%, 10/01/17 (Alternative Minimum Tax)
4,500,000 Luzerne County Industrial Development Authority, Exempt Facilities 12/02 at 102 A 4,777,380
Revenue Bonds (Pennsylvania Gas and Water Company Project),
1992 Series B, 7.125%, 12/01/22 (Alternative Minimum Tax)
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY) (continued)
December 31, 1999
(Unaudited)
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WATER AND SEWER - 5.5%
$ 1,975,000 Delaware County Industrial Development Authority, Water Facilities 6/02 at 102 AAA $2,076,278
Revenue Refunding Bonds (Philadelphia Suburban Water Company
Project), Series of 1992, 6.500%, 6/01/10
5,500,000 Northumberland County Industrial Development Authority, Exempt 10/03 at 102 N/R 5,194,695
Facilities Revenue Bonds (Roaring Creek Water Company Project),
1993 Series, 6.375%, 10/15/23 (Alternative Minimum Tax)
City of Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, Series 1995:
3,000,000 6.750%, 8/01/05 No Opt. Call AAA 3,261,210
2,730,000 6.250%, 8/01/10 No Opt. Call AAA 2,943,623
City of Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, Series 1993:
1,380,000 5.750%, 6/15/13 6/03 at 102 AAA 1,389,246
1,385,000 5.500%, 6/15/14 6/03 at 102 AAA 1,354,594
10,000,000 The Pittsburgh Water and Sewer Authority, Water and Sewer System No Opt. Call AAA 1,644,100
First Lien Revenue Bonds, Series B of 1998, 0.000%, 9/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
$ 358,160,000 Total Investments - (cost $327,188,232) - 98.8% 320,930,785
=============
Other Assets Less Liabilities - 1.2% 4,015,210
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $324,945,995
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
December 31, 1999
(Unaudited)
<CAPTION>
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT QUALITY PREMIUM INCOME INVESTMENT QUALITY PREMIUM INCOME 2
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $444,369,037 $253,892,535 $355,913,755 $320,930,785
Cash -- 74,236 -- --
Receivables:
Interest 7,971,813 4,629,477 5,696,646 5,259,048
Investments sold -- 435,000 -- 15,000
Other assets 26,735 31,875 24,901 31,757
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 452,367,585 259,063,123 361,635,302 326,236,590
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 4,675,147 -- -- --
Accrued expenses:
Management fees (note 6) 242,047 141,718 196,475 177,221
Other 310,280 250,773 460,915 1,058,365
Preferred share dividends payable 81,215 14,104 37,332 55,009
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 5,308,689 406,595 694,722 1,290,595
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $447,058,896 $258,656,528 $360,940,580 $324,945,995
====================================================================================================================================
Preferred shares, at liquidation value $162,000,000 $ 91,600,000 $132,000,000 $118,100,000
====================================================================================================================================
Preferred shares outstanding 6,480 3,664 5,280 4,724
====================================================================================================================================
Common shares outstanding 19,980,489 12,012,933 16,076,767 15,747,463
====================================================================================================================================
Net asset value per Common share outstanding
(net assets less Preferred shares
at liquidation value, divided by
Common shares outstanding) $ 14.27 $ 13.91 $ 14.24 $ 13.14
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six Months Ended December 31, 1999
(Unaudited)
<CAPTION>
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT QUALITY PREMIUM INCOME INVESTMENT QUALITY PREMIUM INCOME 2
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 1) $13,743,166 $ 7,538,805 $11,447,487 $ 9,691,415
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees (note 6) 1,455,940 854,615 1,186,140 1,073,848
Preferred shares - auction fees 163,835 115,442 138,629 148,838
Preferred shares - dividend disbursing agent fees 14,274 15,123 14,274 15,123
Shareholders' servicing agent fees and expenses 23,664 12,049 27,981 25,639
Custodian's fees and expenses 58,928 40,326 109,581 50,109
Directors'/Trustees' fees and expenses (note 6) 2,120 1,312 1,765 1,682
Professional fees 9,187 8,938 9,085 9,043
Shareholders' reports - printing and mailing expenses 54,819 37,386 37,852 45,993
Stock exchange listing fees 12,484 12,230 12,560 12,230
Investor relations expense 19,035 11,831 17,007 15,988
Other expenses 9,234 6,954 7,443 5,295
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,823,520 1,116,206 1,562,317 1,403,788
Custodian fee credit (note 1) (22,284) (11,787) (77,226) (18,355)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,801,236 1,104,419 1,485,091 1,385,433
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,941,930 6,434,386 9,962,396 8,305,982
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 4) 732,647 (64,260) (392,967) (3,124,281)
Change in net unrealized appreciation (depreciation)
of investments (17,345,281) (11,849,137) (15,528,325) (14,878,600)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (16,612,634) (11,913,397) (15,921,292) (18,002,881)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ (4,670,704) $ (5,479,011) $ (5,958,896) $ (9,696,899)
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NEW JERSEY INVESTMENT QUALITY NEW JERSEY PREMIUM INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/99 6/30/99 12/31/99 6/30/99
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,941,930 $ 22,534,913 $ 6,434,386 $ 12,920,003
Net realized gain (loss) from investment
transactions (notes 1 and 4) 732,647 255,510 (64,260) (244,178)
Change in net unrealized appreciation (depreciation)
of investments (17,345,281) (9,880,112) (11,849,137) (4,838,620)
Net increase (decrease) in net assets from operations (4,670,704) 12,910,311 (5,479,011) 7,837,205
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (9,158,874) (18,431,006) (5,184,787) (10,381,899)
Preferred shareholders (2,707,764) (3,894,310) (1,467,993) (2,619,427)
From accumulated net realized gains from
investment transactions:
Common shareholders (751,266) (501,058) -- --
Preferred shareholders (220,556) (118,996) -- --
Decrease in net assets from distributions to shareholders (12,838,460) (22,945,370) (6,652,780) (13,001,326)
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued
to shareholders
due to reinvestment of distributions 1,238,853 2,911,713 484,301 1,192,349
Net proceeds from sale of Preferred shares -- 31,574,604 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital
share transactions 1,238,853 34,486,317 484,301 1,192,349
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (16,270,311) 24,451,258 (11,647,490) (3,971,772)
Net assets at the beginning of period 463,329,207 438,877,949 270,304,018 274,275,790
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $447,058,896 $463,329,207 $258,656,528 $270,304,018
===================================================================================================================================
Balance of undistributed net investment income
at the end of period $ 844,946 $ 769,654 $ 308,237 $ 526,631
===================================================================================================================================
<CAPTION>
PENNSYLVANIA INVESTMENT QUALITY PENNSYLVANIA PREMIUM INCOME 2
- -----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/99 6/30/99 12/31/99 6/30/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 9,962,396 $ 19,256,552 $ 8,305,982 $ 16,317,016
Net realized gain (loss) from investment transactions
(notes 1 and 4) (392,967) 1,496,625 (3,124,281) 580,091
Change in net unrealized appreciation (depreciation)
of investments (15,528,325) (10,804,691) (14,878,600) (10,102,849)
Net increase (decrease) in net assets from operations (5,958,896) 9,948,486 (9,696,899) 6,794,258
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (8,043,580) (16,078,764) (6,377,732) (12,031,069)
Preferred shareholders (2,070,455) (3,372,586) (2,008,726) (3,551,933)
From accumulated net realized gains from
investment transactions:
Common shareholders (1,173,604) (71,740) (236,212) --
Preferred shareholders (288,698) (16,220) (69,046) --
Decrease in net assets from distributions
to shareholders (11,576,337) (19,539,310) (8,691,716) (15,583,002)
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued
to shareholders
due to reinvestment of distributions 1,007,398 2,247,807 -- --
Net proceeds from sale of Preferred shares -- 21,672,384 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital
share transactions 1,007,398 23,920,191 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (16,527,835) 14,329,367 (18,388,615) (8,788,744)
Net assets at the beginning of period 377,468,415 363,139,048 343,334,610 352,123,354
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $360,940,580 $377,468,415 $324,945,995 $343,334,610
==================================================================================================================================
Balance of undistributed net investment income at the
end of period $ 183,391 $ 335,030 $ 795,128 $ 875,604
==================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding New
York Stock Exchange symbols are Nuveen 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
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on a specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
December 31, 1999, New Jersey Investment Quality had when-issued and delayed
delivery purchase commit ments of $4,675,147. There were no such purchase
commitments in any of the other Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common share. Furthermore, each 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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
(Unaudited)
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of such distributions are determined in accordance with
federal income tax regulations, which may differ from generally accepted
accounting principles. Accordingly, temporary over-distributions as a result of
these differences may occur and will be classified as either distributions in
excess of net investment income, distributions in excess of net realized gains
and/or distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in 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, were as follows:
<TABLE>
<CAPTION>
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM INVESTMENT PREMIUM
QUALITY INCOME QUALITY INCOME 2
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Number of Shares:
Series M 3,200 -- -- 844
Series T -- 624 880 --
Series W -- 1,440 2,400 --
Series Th 2,000 1,600 2,000 2,080
Series F 1,280 -- -- 1,800
- ---------------------------------------------------------------------------------------------------------
Total 6,480 3,664 5,280 4,724
=========================================================================================================
</TABLE>
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the six months ended December 31, 1999.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
Reclassification
Certain amounts have been reclassified in the 1999 Financial Highlights to
conform to the 2000 presentation.
Use of Estimates
The preparation of financial statements in conformity with 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. Actual results may differ
from those estimates.
<PAGE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
NEW JERSEY INVESTMENT QUALITY NEW JERSEY PREMIUM INCOME
- --------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/99 6/30/99 12/31/99 6/30/99
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment
of distributions 78,718 170,697 32,236 73,157
- --------------------------------------------------------------------------------------------------------------
Preferred shares sold -- 1,280 -- --
==============================================================================================================
<CAPTION>
PENNSYLVANIA
PENNSYLVANIA INVESTMENT QUALITY PREMIUM INCOME 2
- --------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/99 6/30/99 12/31/99 6/30/99
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 62,998 129,690 -- --
- --------------------------------------------------------------------------------------------------------------
Preferred shares sold -- 880 -- --
==============================================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid February 1, 2000, to shareholders of record on
January 15, 2000, as follows:
<TABLE>
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM INVESTMENT PREMIUM
QUALITY INCOME QUALITY INCOME 2
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $ .0765 $ .0720 $ .0810 $ .0675
=========================================================================================================
</TABLE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the six months ended
December 31, 1999, were as follows:
<TABLE>
<CAPTION>
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM INVESTMENT PREMIUM
QUALITY INCOME QUALITY INCOME 2
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $30,554,345 $7,973,511 $36,669,788 $43,055,567
Short-term municipal securities 26,750,000 5,000,000 40,825,000 11,750,000
Sales and maturities:
Long-term municipal securities 18,513,658 9,966,277 18,986,565 41,943,346
Short-term municipal securities 26,750,000 5,000,000 40,825,000 11,750,000
=========================================================================================================
</TABLE>
At December 31, 1999, the identified cost of investments owned for federal
income tax purposes were as follows:
<TABLE>
<CAPTION>
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM INVESTMENT PREMIUM
QUALITY INCOME QUALITY INCOME 2
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$441,608,647 $256,056,526 $354,292,121 $327,188,232
=============================================================================================================
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
(Unaudited)
At June 30, 1999, the Funds' last fiscal year end, New Jersey Premium Income had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied the
carryforwards will expire as follows:
NEW JERSEY
PREMIUM
INCOME
- --------------------------------------------------------------------------------
Expiration year:
2002 $3,583,548
2003 129,409
2004 650,143
2005 174,583
2006 --
2007 244,178
- --------------------------------------------------------------------------------
Total $4,781,861
================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at December 31, 1999, were as follows:
<TABLE>
<CAPTION>
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM INVESTMENT PREMIUM
QUALITY INCOME QUALITY INCOME 2
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $12,631,840 $ 3,829,451 $ 12,765,320 $ 4,100,443
depreciation (9,871,450) (5,993,442) (11,143,686) (10,357,890)
- ------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $ 2,760,390 $(2,163,991) $ 1,621,634 $ (6,257,447)
============================================================================================================
</TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
================================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
<PAGE>
7. COMPOSITION OF NET ASSETS
At December 31, 1999, net assets consisted of:
<TABLE>
<CAPTION>
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM INVESTMENT PREMIUM
QUALITY INCOME QUALITY INCOME 2
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $162,000,000 $ 91,600,000 $132,000,000 $118,100,000
Common shares, $.01 par value per share 199,805 120,129 160,768 157,475
Paid-in surplus 281,252,547 173,638,274 227,369,085 215,275,699
Balance of undistributed net investment income 844,946 308,237 183,391 795,128
Accumulated net realized gain (loss) from
investment transactions (2,170) (4,850,752) (394,298) (3,124,860)
Net unrealized appreciation (depreciation)
of investments 2,763,768 (2,159,360) 1,621,634 (6,257,447)
- ---------------------------------------------------------------------------------------------------------
Net assets $447,058,896 $258,656,528 $360,940,580 $324,945,995
=========================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
=========================================================================================================
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
Selected data for a Common share outstanding throughout each
period:
<CAPTION>
Investment Operations
-------------------------------------------
Net
Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
NEW JERSEY INVESTMENT
QUALITY
<S> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) $15.14 $ .60 $ (.82) $ (.22)
1999 15.65 1.14 (.46) .68
1998 15.41 1.16 .29 1.45
1997 15.05 1.18 .34 1.52
1996 15.06 1.17 (.01) 1.16
1995 14.73 1.20 .40 1.60
<CAPTION>
NEW JERSEY PREMIUM INCOME
<S> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) 14.92 .54 (1.00) (.46)
1999 15.34 1.08 (.41) .67
1998 14.71 1.10 .65 1.75
1997 14.18 1.09 .51 1.60
1996 13.97 1.08 .20 1.28
1995 13.46 1.06 .55 1.61
<CAPTION>
PENNSYLVANIA INVESTMENT
QUALITY
<S> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) 15.33 .62 (.99) (.37)
1999 15.94 1.22 (.59) .63
1998 15.91 1.23 .10 1.33
1997 15.72 1.26 .22 1.48
1996 15.86 1.28 (.08) 1.20
1995 15.49 1.29 .41 1.70
<CAPTION>
PENNSYLVANIA PREMIUM
INCOME 2
<S> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) 14.30 .53 (1.13) (.60)
1999 14.86 1.04 (.61) .43
1998 14.20 1.02 .67 1.69
1997 13.57 1.04 .63 1.67
1996 13.25 1.04 .33 1.37
1995 12.53 1.05 .77 1.82
<PAGE>
<CAPTION>
Less Distributions
-----------------------------------------------------------------------------
Net Net
Investment Investment Capital Capital
Income Income Gains Gains
to Common to Preferred to Common to Preferred
Shareholders Shareholders+ Shareholders Shareholders+ Total
NEW JERSEY INVESTMENT
QUALITY
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) $ (.46) $(.14) $(.04) $(.01) $ (.65)
1999 (.93) (.20) (.03) (.01) (1.17)
1998 (.95) (.22) (.03) (.01) (1.21)
1997 (.95) (.21) -- -- (1.16)
1996 (.94) (.23) -- -- (1.17)
1995 (1.01) (.24) (.02) -- (1.27)
<CAPTION>
NEW JERSEY PREMIUM
INCOME
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) (.43) (.12) -- -- (.55)
1999 (.87) (.22) -- -- (1.09)
1998 (.86) (.26) -- -- (1.12)
1997 (.84) (.23) -- -- (1.07)
1996 (.81) (.26) -- -- (1.07)
1995 (.81) (.28) (.01) -- (1.10)
<CAPTION>
PENNSYLVANIA INVESTMENT
QUALITY
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) (.50) (.13) (.07) (.02) (.72)
1999 (1.01) (.21) -- -- (1.22)
1998 (1.01) (.23) (.05) (.01) (1.30)
1997 (1.01) (.24) (.03) (.01) (1.29)
1996 (1.05) (.25) (.03) (.01) (1.34)
1995 (1.07) (.26) -- -- (1.33)
<CAPTION>
PENNSYLVANIA PREMIUM
INCOME 2
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) (.41) (.13) (.02) -- (.56)
1999 (.76) (.23) -- -- (.99)
1998 (.77) (.26) -- -- (1.03)
1997 (.78) (.26) -- -- (1.04)
1996 (.78) (.27) -- -- (1.05)
1995 (.81) (.29) -- -- (1.10)
<PAGE>
<CAPTION>
Total Returns
-------------------------
Organization
and Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value** Value**
<S> <C> <C> <C> <C> <C>
NEW JERSEY INVESTMENT
QUALITY
Year Ended 6/30:
2000(a) $-- $14.27 $12.6250 (17.41)% (2.50)%
1999 (.02) 15.14 15.8125 (2.33) 2.82
1998 -- 15.65 17.1250 11.38 8.12
1997 -- 15.41 16.3125 16.50 8.92
1996 -- 15.05 14.8750 8.17 6.28
1995 -- 15.06 14.6250 3.03 9.71
<CAPTION>
NEW JERSEY PREMIUM
INCOME
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) -- 13.91 12.3125 (19.72) (3.92)
1999 -- 14.92 15.8125 7.17 2.87
1998 -- 15.34 15.5625 11.12 10.35
1997 -- 14.71 14.8125 20.95 9.94
1996 -- 14.18 13.0000 4.24 7.37
1995 -- 13.97 13.2500 14.60 10.39
<CAPTION>
PENNSYLVANIA INVESTMENT
QUALITY
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) -- 14.24 13.2500 (17.48) (3.42)
1999 (.02) 15.33 16.6875 2.56 2.50
1998 -- 15.94 17.2500 8.77 7.02
1997 -- 15.91 16.8750 9.75 8.01
1996 -- 15.72 16.3750 12.74 6.00
1995 -- 15.86 15.5000 2.32 9.77
<CAPTION>
PENNSYLVANIA PREMIUM
INCOME 2
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) -- 13.14 12.0000 (9.82) (5.24)
1999 -- 14.30 13.7500 7.98 1.27
1998 -- 14.86 13.4375 6.27 10.29
1997 -- 14.20 13.3750 14.82 10.61
1996 -- 13.57 12.3750 2.21 8.39
1995 -- 13.25 12.8750 11.50 12.87
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------------------------------
Before Credit
------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
<S> <C> <C> <C> <C> <C>
NEW JERSEY INVESTMENT
QUALITY
Year Ended 6/30:
2000(a) $447,059 1.23%* 8.05%* .79%* 5.19%*
1999 463,329 1.13 7.27 .80 5.12
1998 438,878 1.13 7.40 .79 5.20
1997 431,622 1.14 7.70 .80 5.36
1996 422,338 1.16 7.67 .81 5.33
1995 420,944 1.23 8.06 .85 5.57
<CAPTION>
NEW JERSEY PREMIUM
INCOME
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) 258,657 1.28* 7.37* .84* 4.82*
1999 270,304 1.24 7.00 .83 4.68
1998 274,276 1.25 7.24 .83 4.81
1997 266,074 1.27 7.53 .83 4.91
1996 259,708 1.32 7.53 .86 4.90
1995 257,251 1.46 7.89 .94 5.08
<CAPTION>
PENNSYLVANIA INVESTMENT
QUALITY
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) 360,941 1.30* 8.24* .84* 5.30*
1999 377,468 1.17 7.60 .81 5.30
1998 363,139 1.15 7.65 .80 5.34
1997 360,749 1.17 7.96 .81 5.52
1996 355,823 1.18 7.98 .82 5.53
1995 355,831 1.27 8.28 .87 5.70
<CAPTION>
PENNSYLVANIA PREMIUM
INCOME 2
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) 324,946 1.29* 7.61* .83* 4.92*
1999 343,335 1.24 6.93 .83 4.61
1998 352,123 1.24 6.99 .82 4.63
1997 341,751 1.27 7.47 .83 4.85
1996 331,863 1.30 7.59 .84 4.90
1995 326,771 1.46 8.23 .92 5.20
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------------------
After Credit***
-----------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total
Applicable Applicable Net Assets Net Assets Portfolio
to Common to Common Including Including Turnover
Shares++ Shares++ Preferred++ Preferred++ Rate
<S> <C> <C> <C> <C> <C>
NEW JERSEY INVESTMENT
QUALITY
Year Ended 6/30:
2000(a) 1.22%* 8.06%* .78%* 5.20%* 4%
1999 1.13 7.27 .80 5.12 8
1998 1.13 7.40 .79 5.20 6
1997 1.14 7.70 .80 5.36 15
1996 1.16 7.67 .81 5.33 16
1995 1.23 8.06 .85 5.57 13
<CAPTION>
new jersey premium
income
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) 1.27* 7.39* .83* 4.83* 3
1999 1.24 7.00 .83 4.68 10
1998 1.25 7.24 .83 4.81 13
1997 1.27 7.53 .83 4.91 18
1996 1.32 7.53 .86 4.90 32
1995 1.46 7.89 .94 5.08 15
<CAPTION>
PENNSYLVANIA INVESTMENT
QUALITY
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) 1.24* 8.31* .80* 5.34* 5
1999 1.16 7.61 .81 5.30 16
1998 1.15 7.65 .80 5.34 9
1997 1.17 7.96 .81 5.52 8
1996 1.18 7.98 .82 5.53 12
1995 1.27 8.28 .87 5.70 9
<CAPTION>
PENNSYLVANIA PREMIUM
INCOME 2
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000(a) 1.27* 7.63* .82* 4.93* 13
1999 1.24 6.93 .82 4.62 9
1998 1.24 6.99 .82 4.63 32
1997 1.27 7.47 .83 4.85 29
1996 1.30 7.59 .84 4.90 19
1995 1.46 8.23 .92 5.20 5
* Annualized.
** Total Return on Market Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if
any, and changes in net asset value per share. Total returns are not
annualized.
*** After custodian fee credit, where applicable (note 1).
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended December 31, 1999.
</TABLE>
<PAGE>
BUILD YOUR WEALTH AUTOMATICALLY
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also potentially benefit from dollar-cost averaging, a
technique of investing at regular intervals, which allows you to build a
high-quality, tax-free portfolio conveniently and cost effectively over time.
Dollar-cost averaging does not ensure a profit, nor does it protect you against
loss in a declining market. Because such a plan involves continuous investment
regardless of fluctuating prices, investors should consider their financial
ability to continue purchases through periods of low price levels.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
Sidebar text: Nuveen offers a number of convenient ways to add to your portfolio
and earn the tax-free income you need to achieve your financial goals.
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
<PAGE>
FUND INFORMATION
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
FUND POLICIES
The Board of Trustees of your Fund recently modified certain investment policies
of the Fund. The Fund was formerly not permitted to invest more than 5% of its
total assets in Municipal Leases that contain "non-appropriation" clauses. In
addition, your Fund was not permitted to invest more than 10% of its total
assets in Municipal Leases and securities that are unmarketable, illiquid or not
readily marketable. The Municipal Lease market has matured since the Fund's
inception, and non-appropriation leases have become more liquid and widely
accepted. The Nuveen Exchange-Traded Fund Board has eliminated the restrictions
noted above, replacing them with requirements that the Funds limit investments
in non-appropriation Municipal Leases to those that meet one or more of six
criteria that indicate that the issuer will be motivated to continue to
appropriate monies to make the payments under the Municipal Lease.
The Board also eliminated the Fund's policy not to invest more than 5% of its
total assets in unsecured obligations of issuers which, together with their
predecessors, have been in operation for less than three years.
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 6-month period ended December 31, 1999. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
SERVING INVESTORS FOR GENERATIONS
Photo of: John Nuveen Sr.
For over a century, generations of Americans have relied on Nuveen to help them
grow and keep the money they've earned. Financial advisers, investors and their
families have associated Nuveen investments with quality, expertise and
dependability since 1898. That is why financial advisers have entrusted the
assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisers and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
Invest well. Look ahead. Leave your mark.
To find out more about how Nuveen investment products and services can help you
preserve your financial security, talk with your financial adviser, or call us
at (800) 257-8787 for more information, including a prospectus where applicable.
Please read that information carefully before you invest.
LOGO:
NUVEEN
Investments
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FSA-2-12-99
