Nuveen Exchange-Traded Funds
JULY 31, 1997
Annual Report
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NAZ
Arizona
NUM
NMP
Michigan
NUO
Ohio
NTX
Texas
Photographic image of woman and boy fishing.
<PAGE>
Build Your Wealth Automatically
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.
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 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.
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
(continued on inside back cover)
<PAGE>
Photographic image (ghosted) of woman and boy fishing
Contents
2 Dear Shareholder
4 Answering Your Questions
6 Arizona Premium Income
Fund Overview
7 Michigan Quality Income
Fund Overview
8 Michigan Premium Income
Fund Overview
9 Ohio Quality Income
Fund Overview
10 Texas Quality Income
Fund Overview
11 Financial Section
55 Shareholder Information
56 Fund Information
<PAGE>
Dear Shareholder
Photographic image of Timothy R. Schwertfeger.
Timothy R. Schwertfeger
Chairman of the Board
"In addition to solid returns, shareholders continued to enjoy very
attractive current yields generated by a portfolio of quality bonds."
Wealth takes a lifetime to build. Once achieved, it should be preserved.
It's a pleasure to report to you on the performance of your Nuveen
exchange-traded fund. For the fiscal year ended July 31, 1997, the value of the
funds covered in this report rose between 11.19% and 12.97% with tax-free income
dividends reinvested. Over this 12-month period, the total return performance
for these funds outpaced the 9.25% increase (with income reinvested) produced by
the Lehman Brothers Municipal Bond Index, which represents the municipal bond
market on an unmanaged basis. Each fund's individual performance is detailed on
pages 6-10.
In addition to solid returns, shareholders continued to enjoy very attractive
current yields generated by a portfolio of quality bonds, which provide
excellent income for investors. As of July 31, 1997, shareholders were receiving
annual tax-free yields on net asset value that ranged from 5.36% to 5.99%. To
match these yields, investors in the 31% federal income tax bracket would have
had to earn at least 7.77% on taxable alternatives of comparable quality. When
state taxes are taken into account, the power of tax-free investing is even more
apparent.
These results were produced in an environment of continued economic expansion
and the lowest unemployment rates in almost two decades, a combination that in
the past has predictably been accompanied by an increase in inflation. Current
conditions, however, give every indication that inflation is well under control.
After tightening short-term interest rates by 0.25% in March, the Federal
Reserve demonstrated its confidence in the path the economy is taking by
maintaining the status quo at subsequent meetings in May and July. In the first
half of the year, investors and the markets focused their attention on fiscal
issues such as the federal budget accord and tax cut measures, including a
reduction in the capital gains tax. As the economy showed evidence of
moderation, corporate earnings reports continued to exhibit strength, and
interest rates fell in the second quarter. All of this is positive news. The net
effect is that, although we have experienced some volatility, the markets have
performed very well this year.
<PAGE>
Recently, the need for diversification and a renewed emphasis
on asset allocation - as well as attractive tax-free yields - have sparked
increased interest in municipal bonds. The current level of the stock market
reminds investors to re-allocate profits to other segments of the market in
order to limit risk. Nuveen exchange-traded funds provide an excellent
alternative, and their current yields make them very attractive.
On behalf of everyone at Nuveen, I thank you for your confidence in us and our
family of investments. We will continue to strive to provide you with
high-quality investments that withstand the test of time. We look forward to
reporting to you again in six months.
Sincerely,
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
September 15, 1997
<PAGE>
Answering Your Questions
Photographic image of Tom Spalding.
Tom Spalding, head of Nuveen's Chicago-based portfolio management team,
talks about the municipal bond market and offers insights into factors that
affected fund performance over the past year.
What are the investment objectives of these funds?
The primary investment objective of the funds is to maintain a high level of
current tax-free income. Their secondary objective is to enhance portfolio value
through investments in state tax-exempt municipal bonds that are either
underrated or undervalued or that represent undervalued sectors of the municipal
market.
What is your strategy for meeting these objectives?
To meet the funds' objectives of income and enhanced value, our portfolio
management strategy relies on conservative value investing principles, sound
research and credit surveillance activities, and senior management involvement.
At Nuveen, value investing means taking a fundamental approach to finding bonds
that offer the best balance of return and moderated risk. This approach focuses
on the characteristics of individual bonds, such as sector, geographic region,
structure, and intrinsic credit quality, rather than the direction of interest
rates. The idea behind this philosophy is that we, as investment managers, can
control the selection process, but not the direction of the market overall.
Our goal is to determine whether an issue is undervalued by the market, that is,
whether the bond's current price is lower than its long-term value, as evidenced
by its yield, maturity, and credit quality. We also assess whether the issue has
the potential to reach that intrinsic value. For example, we may find an
opportunity to purchase bonds that offer extended call protection at prices
similar to bonds with shorter calls. If interest rates move down, the bonds with
longer call protection will appreciate in value more than those with shorter
calls. Such determinations require in-depth knowledge and understanding of the
municipal market, the issuers, and the characteristics of specific bonds. Proper
implementation of this strategy creates well-constructed portfolios designed to
provide shareholders with a dependable stream of tax-free income.
<PAGE>
What role does research play in helping you achieve the funds' objectives?
As an integral part of our portfolio management strategy, Nuveen Research
provides portfolio managers with objective appraisals of the creditworthiness of
new municipal issues, while maintaining surveillance of the credit performance
for all portfolio holdings. Creditworthiness is evaluated through our research
into factors such as the credit history of the issuer, capital structure, total
debt load, revenue sources and projections, call provisions, and local economic
forecasts. To track the credit performance of individual holdings, each Nuveen
Research analyst is responsible for a specific surveillance portfolio, which is
defined in terms of geography and sector (e.g., healthcare, housing).
Specialization by sector enables members of our Research team to focus their
credit quality evaluation efforts and complement the vantage point of each
portfolio manager.
What is the current outlook for the municipal market?
As we make our way through the seventh year of the current expansion, some
observers believe that a fundamental shift may have occurred in our economy.
Based on past experience and months of reports of economic growth, especially
employment statistics, the markets have long been anticipating an increase in
inflation. However, even with almost full employment, we have not seen the
expected rise in hourly wages that would be considered inflationary. This
disconnect from the traditional economic cause-and-effect relationship has been
variously attributed to the globalization of the economy, to increased
efficiency through the use of technology, and to corporations' recent ability to
downsize as necessary. Whatever the reason, inflation has not ignited. Although
structural changes in the economy appear to have suspended the usual
relationship between faster growth and higher inflation, the risk remains that
inflation may reassert itself if capacity constraints are reached and resources
are stretched too thin.
Given these conditions, speculation about Fed tightening
continues. If the Fed does act to increase interest rates, it will
be perceived as a pre-emptive move against inflation. If the Fed does not
tighten, it will be seen as an indication that the economy is moving at a
moderate, non-inflationary pace.
Under either scenario, the outlook for the remainder of 1997 shows the municipal
market continuing to offer the attractive yields and tax advantages that make it
a good alternative if and when a correction in the stock market occurs. While
money continues to flow into equity mutual funds, investors are beginning to
evaluate the effect of the huge run-up in stock prices on their asset
allocation, and many are rebalancing their portfolios by shifting some assets
into bonds.
<PAGE>
Nuveen Arizona Premium Income Municipal Fund, Inc.
July 31, 1997 Annual Report
Arizona
NAZ
Fund Highlights
- ------------------------------------------------------
Inception Date 11/92
- ------------------------------------------------------
Share Price 15 7/16
- ------------------------------------------------------
Net Asset Value $15.34
- ------------------------------------------------------
Current Yield 5.36%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 7.77%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.18%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 11.74%
- ------------------------------------------------------
3-Year 10.04%
- ------------------------------------------------------
Since Inception 7.58%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 14.80%
- ------------------------------------------------------
3-Year 13.11%
- ------------------------------------------------------
Since Inception 10.52%
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal 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 tax rate
of 34.5%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 34.5%. It
represents the return on a taxable investment necessary to equal the after-tax
return of the Nuveen fund.
PIECHART:
Credit Quality
AAA 65%
AA 22%
A 7%
BBB/NR 6%
PIECHART:
Diversification
General Obligation 20%
Water & Sewer 11%
Health Care 11%
Transportation 6%
Utilities 8%
Housing 8%
Pollution Control 6%
Education 4%
Lease Rental 3%
Escrowed Bonds 17%
Other 6%
BAR CHART:
Dividend History
August 1996 .0675
September 1996 .0675
October 1996 .0675
November 1996 .0675
December 1996 .0675
January 1997 .0675
February 1997 .0690
March 1997 .0690
April 1997 .0690
May 1997 .0690
June 1997 .0690
July 1997 .0690
<PAGE>
Nuveen Michigan Quality Income Municipal Fund, Inc.
July 31, 1997 Annual Report
Michigan Quality
NUM
Fund Highlights
- ------------------------------------------------------
Inception Date 10/91
- ------------------------------------------------------
Share Price 16 5/8
- ------------------------------------------------------
Net Asset Value $15.95
- ------------------------------------------------------
Current Yield 5.74%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.32%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.76%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 11.19%
- ------------------------------------------------------
3-Year 9.07%
- ------------------------------------------------------
5-Year 7.86%
- ------------------------------------------------------
Since Inception 8.95%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 14.58%
- ------------------------------------------------------
3-Year 12.55%
- ------------------------------------------------------
5-Year 11.37%
- ------------------------------------------------------
Since Inception 12.34%
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal 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 tax rate
of 34.5%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 34.5%. It
represents the return on a taxable investment necessary to equal the after-tax
return of the Nuveen fund.
PIECHART:
Credit Quality
AAA 55%
AA 31%
A 12%
BBB/NR 2%
PIECHART:
Diversification
General Obligation 28%
Health Care 17%
Utilities 3%
Housing 9%
Pollution Control 10%
Education 3%
Lease Rental 4%
Escrowed Bonds 19%
Other 7%
BAR CHART:
Dividend History
CAPITAL GAINS
August 1996 .0795
September 1996 .0795
October 1996 .0795
November 1996 .0795
December 1996 .0795 .0256
January 1997 .0795
February 1997 .0795
March 1997 .0795
April 1997 .0795
May 1997 .0795
June 1997 .0795
July 1997 .0795
<PAGE>
Nuveen Michigan Premium Income Municipal Fund, Inc.
July 31, 1997 Annual Report
Michigan Premium
NMP
Fund Highlights
- ------------------------------------------------------
Inception Date 12/92
- ------------------------------------------------------
Share Price 13 15/16
- ------------------------------------------------------
Net Asset Value $15.14
- ------------------------------------------------------
Current Yield 5.77%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.36%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.81%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 12.97%
- ------------------------------------------------------
3-Year 10.08%
- ------------------------------------------------------
Since Inception 7.37%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 16.02%
- ------------------------------------------------------
3-Year 13.19%
- ------------------------------------------------------
Since Inception 10.34%
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal 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 tax rate
of 34.5%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 34.5%. It
represents the return on a taxable investment necessary to equal the after-tax
return of the Nuveen fund.
PIECHART:
Credit Quality
AAA 53%
AA 27%
A 19%
BBB/NR 1%
PIECHART:
Diversification
General Obligation 16%
Health Care 21%
Utilities 9%
Housing 13%
Pollution Control 12%
Education 6%
Escrowed Bonds 3%
Water & Sewer 6%
Other 14%
BAR CHART:
Dividend History
August 1996 .0660
September 1996 .0660
October 1996 .0660
November 1996 .0660
December 1996 .0660
January 1997 .0660
February 1997 .0670
March 1997 .0670
April 1997 .0670
May 1997 .0670
June 1997 .0670
July 1997 .0670
<PAGE>
Nuveen Ohio Quality Income Municipal Fund, Inc.
July 31, 1997 Annual Report
Ohio
NUO
Fund Highlights
- ------------------------------------------------------
Inception Date 10/91
- ------------------------------------------------------
Share Price 17 5/16
- ------------------------------------------------------
Net Asset Value $16.57
- ------------------------------------------------------
Current Yield 5.55%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.04%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.67%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 12.14%
- ------------------------------------------------------
3-Year 10.30%
- ------------------------------------------------------
5-Year 8.64%
- ------------------------------------------------------
Since Inception 9.35%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 15.68%
- ------------------------------------------------------
3-Year 13.91%
- ------------------------------------------------------
5-Year 12.29%
- ------------------------------------------------------
Since Inception 12.87%
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal 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 tax rate
of 36%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 36%. It represents
the return on a taxable investment necessary to equal the after-tax return of
the Nuveen fund.
PIECHART:
Credit Quality
AAA 64%
AA 17%
A 9%
BBB/NR 10%
PIECHART:
Diversification
General Obligation 18%
Health Care 14%
Utilities 4%
Housing 11%
Pollution Control 5%
Education 15%
Escrowed Bonds 13%
Water & Sewer 10%
Transportation 4%
Lease Rental 4%
Other 2%
BAR CHART:
Dividend History
August 1996 .0800
September 1996 .0800
October 1996 .0800
November 1996 .0800
December 1996 .0800
January 1997 .0800
February 1997 .0800
March 1997 .0800
April 1997 .0800
May 1997 .0800
June 1997 .0800
July 1997 .0800
<PAGE>
Nuveen Texas Quality Income Municipal Fund
July 31, 1997 Annual Report
Texas
NTX
Fund Highlights
- ------------------------------------------------------
Inception Date 10/91
- ------------------------------------------------------
Share Price 15 5/8
- ------------------------------------------------------
Net Asset Value $15.86
- ------------------------------------------------------
Current Yield 5.99%
- ------------------------------------------------------
Taxable Equivalent Yield(1) 8.68%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 11.93%
- ------------------------------------------------------
3-Year 9.81%
- ------------------------------------------------------
5-Year 7.93%
- ------------------------------------------------------
Since Inception 8.83%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 14.80%
- ------------------------------------------------------
3-Year 12.80%
- ------------------------------------------------------
5-Year 10.96%
- ------------------------------------------------------
Since Inception 11.76%
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. It is based on the current
yield and a federal tax rate of 31%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a federal income tax rate of 31%. It represents the return on a
taxable investment necessary to equal the after-tax return of the Nuveen fund.
PIECHART:
Credit Quality
AAA 59%
AA 13%
A 21%
BBB/NR 7%
PIECHART:
Diversification
General Obligation 13%
Health Care 13%
Housing 10%
Pollution Control 8%
Education 10%
Escrowed Bonds 18%
Water & Sewer 6%
Transportation 13%
Other 9%
BAR CHART:
Dividend History
August 1996 .0780
September 1996 .0780
October 1996 .0780
November 1996 .0780
December 1996 .0780
January 1997 .0780
February 1997 .0780
March 1997 .0780
April 1997 .0780
May 1997 .0780
June 1997 .0780
July 1997 .0780
<PAGE>
Financial Section
Photographic image (ghosted) of woman and boy fishing
Contents
12 Portfolio of Investments
35 Statement of Net Assets
37 Statement of Operations
39 Statement of Changes in Net Assets
41 Notes to Financial Statements
49 Financial Highlights
54 Independent Auditor's Report
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Arizona Premium Income
Municipal Fund, Inc. (NAZ)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,150,000 Arizona Municipal Financing Program of 1992, Refunding Certificates of Participation, 8/02 at 101 Aaa $2,255,737
Series 1, 6.000%, 8/01/17
1,500,000 State of Arizona, Arizona Transportation Board, Highway Revenue Bonds, Series 1990, 7/00 at 101 Aaa 1,595,340
6.000%, 7/01/10 (Pre-refunded to 7/01/00)
1,750,000 Student Loan Acquisition Authority of Arizona (A nonprofit corporation organized 5/04 at 102 Aa 1,911,490
pursuant to the laws of the State of Arizona), Student Loan Revenue Bonds, Series
1994, 6.600%, 5/01/10 (Alternative Minimum Tax)
500,000 Wastewater Management Authority of Arizona, Wastewater Treatment Financial 7/05 at 102 Aaa 529,415
Assistance Revenue Bonds, Series 1995, 5.750%, 7/01/15
City of Bullhead City, Bullhead Parkway Improvement District Improvement Bonds:
910,000 6.100%, 1/01/08 1/03 at 103 Baa 979,870
970,000 6.100%, 1/01/09 1/03 at 103 Baa 1,038,744
1,600,000 City of Lake Havasu City Municipal Property Corporation, Municipal Facilities Revenue 6/02 at 101 Aaa 1,720,336
Bonds, Series 1993, 6.000%, 6/01/08
1,400,000 Maricopa Rural Road Improvement District of Pinal County, Arizona, Refunding Bonds,
Series 1994, 7.000%, 7/01/07 7/99 at 101 N/R 1,469,258
1,500,000 The Industrial Development Authority of the County of Maricopa (Arizona), Insured 7/02 at 102 Aaa 1,577,565
Health Facility Revenue Bonds (Catholic Healthcare West), 1992 Series A,
5.750%, 7/01/11
3,500,000 The Industrial Development Authority of the County of Maricopa (Arizona), Samaritan No Opt. Call Aaa 4,355,785
Health Services, Hospital System Revenue Refunding Bonds, Series 1990A,
7.000%, 12/01/16
600,000 The Industrial Development Authority of the County of Maricopa, Arizona, Baptist 9/05 at 101 Aaa 613,014
Hospital System Revenue Refunding Bonds, Series 1995, 5.500%, 9/01/16
Kyrene Elementary School District No. 28 of Maricopa County, Arizona, School
Improvement Bonds, Project of 1990, Series E (1993):
3,195,000 6.000%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 100 Aaa 3,456,063
605,000 6.000%, 7/01/12 7/02 at 100 Aaa 636,164
1,500,000 Paradise Valley Unified School District No. 69 of Maricopa County, Arizona, School 7/03 at 102 Aaa 1,603,575
Improvement Bonds, Project of 1990, Series D (1993), 5.875%, 7/01/12
1,400,000 Chandler Unified School District No. 80 of Maricopa County, Arizona, General 7/03 at 101 Aaa 1,499,148
Obligation Refunding Bonds, Series 1993, 5.950%, 7/01/10
450,000 Mesa Industrial Development Authority Health Care Facilities, Refunding Revenue 1/99 at 102 Aaa 478,616
Bonds (Western Health Network, Inc.), Series 1988B-1, 7.500%, 1/01/04
The Industrial Development Authority of the County of Mohave, Hospital System
Revenue Refunding Bonds (Medical Environments, Inc. and Phoenix Baptist Hospital
and Medical Center, Inc.), Series 1993:
5,000,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 5,724,200
1,000,000 7.000%, 7/01/16 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 1,157,790
2,000,000 The Industrial Development Authority of the County of Mohave (Arizona), Industrial 11/03 at 101 AA+ 2,144,180
Development Revenue Bonds, 1994 Series (Citizens Utilities Company Projects),
6.600%, 5/01/29 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,000,000 Hospital District No. One, Mohave County, Arizona, Refunding General Obligation 6/02 at 101 Aaa $2,186,180
Bonds (Kingman Regional Medical Center Project), Series 1992, 6.500%, 6/01/15
1,000,000 The Industrial Development Authority of the County of Mohave, Health Care Revenue 5/06 at 103 AAA 1,078,850
Refunding Bonds, Series 1996 (GNMA Collateralized - Chris Ridge and Silver
Ridge Village Projects), 6.375%, 11/01/31
1,400,000 Navajo County, Arizona, Pollution Control Corporation, Pollution Control Revenue 8/03 at 102 Baa1 1,432,886
Refunding Bonds (Arizona Public Service Company), 1993 Series A, 5.875%, 8/15/28
2,500,000 City of Phoenix, Arizona, General Obligation Refunding Bonds, Series 1992, 7/02 at 102 Aa1 2,752,925
6.375%, 7/01/13
1,600,000 City of Phoenix, Arizona, General Obligation Refunding Bonds, Series 1995A, 7/05 at 101 Aa1 1,576,880
5.000%, 7/01/19
3,700,000 City of Phoenix (Arizona), Civic Improvement Corporation, Wastewater System Lease 7/03 at 102 AAA 4,120,209
Revenue Bonds, Series 1993, 6.125%, 7/01/23 (Pre-refunded to 7/01/03)
2,500,000 City of Phoenix Civic Improvement Corporation (Arizona), Wastewater System Lease 7/04 at 102 A1 2,510,600
Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/10
2,150,000 Phoenix Civic Plaza Building Corporation, Senior Lien Excise Tax Revenue Bonds, 7/05 at 101 AA+ 2,303,059
Series 1994, 6.000%, 7/01/14
470,000 The Industrial Development Authority of the City of Phoenix, Arizona, Statewide 6/05 at 102 AAA 484,993
Single Family Mortgage Revenue Bonds, Series 1995, 6.150%, 6/01/08
(Alternative Minimum Tax)
1,990,000 The Industrial Development Authority of the County of Pima (Arizona), Industrial 1/02 at 103 Aaa 2,236,044
Development Lease Obligation Refunding Revenue Bonds, 1988 Series A (Irvington
Project), 7.250%, 7/15/10
1,510,000 Metropolitan Domestic Water Improvement District of Pima County, Arizona, Special 1/03 at 101 Aaa 1,620,638
Assessment and Water Revenue Bonds, Series 1992, 6.200%, 1/01/12
405,000 The Industrial Development Authority of the County of Pima (Arizona), Single Family 8/05 at 102 A 428,174
Mortgage Revenue Refunding Bonds, Series 1995A, 6.500%, 2/01/17
2,750,000 The Industrial Development Authority of the County of Pima, Single Family Mortgage 5/07 at 102 AAA 2,868,360
Revenue Bonds, Series 1997A, 6.250%, 11/01/30
4,530,000 Salt River Project Agricultural Improvement and Power District, Arizona, Salt River 1/02 at 100 Aa 4,671,970
Project Electric System Revenue Bonds, 1992 Series D, 5.750%, 1/01/19
2,400,000 Salt River Project Agricultural Improvement and Power District, Electric System 1/04 at 102 Aa 2,354,592
Revenue Refunding Bonds, 1993 Series C, 5.000%, 1/01/16
2,000,000 Tempe Union High School District No. 213 of Maricopa County, Arizona, School 7/04 at 101 Aaa 2,152,940
Improvement and Refunding Series 1994, 6.000%, 7/01/12
3,000,000 City of Tucson, Arizona, General Obligation Bonds, Series 1984-G (1994), 6.250%, 7/01/18 7/04 at 101 Aaa 3,362,340
1,290,000 City of Tucson, Arizona, General Obligation Bonds, Series 1994-B (1996), 5.750%, 7/01/18 7/06 at 101 AA 1,352,913
5,000,000 Tucson Airport Authority, Inc. (Arizona), Airport Revenue Bonds, Refunding 6/03 at 102 Aaa 5,243,350
Series 1993, 5.700%, 6/01/13
725,000 City of Tucson, Arizona, Certificates of Participation, Series 1994, 6.375%, 7/01/09 7/04 at 100 AA 796,420
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,000,000 The Industrial Development Authority of The City of Tucson, Arizona, Tax-exempt 12/06 at 102 AAA $4,120,120
Multifamily Housing Revenue Refunding Bonds, Series 1996, 5.900%, 12/20/31
3,500,000 City of Tucson, Arizona, Water System Revenue Refunding Bonds, Series 1992A, 7/02 at 102 A1 3,637,234
5.750%, 7/01/18
1,500,000 City of Tucson, Arizona, Water System Revenue Bonds, Series 1994-A (1996), 7/06 at 101 Aaa 1,616,430
6.000%, 7/01/21
100,000 University of Arizona Telecommunications System, Certificates of Participation, 7/02 at 102 A+ 111,200
Series 1991, 6.500%, 7/15/12
650,000 Certificate of Participation, Series 1994B (University of Arizona Administrative and 7/04 at 102 Aaa 690,657
Parking Facilities Project), 6.000%, 7/15/23
2,000,000 University Medical Center Corporation (Tucson, Arizona), Hospital Revenue Refunding 7/02 at 102 Aaa 2,142,680
Bonds, Series 1992, 6.250%, 7/01/16
1,000,000 Arizona Board of Regents, University of Arizona, System Revenue Refunding Bonds, 6/02 at 102 AA 1,090,400
Series 1992, 6.250%, 6/01/11
- -----------------------------------------------------------------------------------------------------------------------------------
$87,200,000 Total Investments - (cost $86,151,401) - 97.9% 93,689,334
===========------------------------------------------------------------------------------------------------------------------------
Temporary Investments in Short-Term Municipal Securities - 1.3%
$ 500,000 Maricopa County, Arizona Pollution Control Corporation, Pollution Control Revenue A-1+ 500,000
Refunding Bonds (Arizona Public Service Company Palo Verde Project), 1994 Series C,
Variable Rate Demand Bonds, 3.650%, 5/01/29+
300,000 Maricopa County, Arizona Pollution Control Corporation, Pollution Control Revenue A-1+ 300,000
Refunding Bonds (Arizona Public Service Company Palo Verde Project), 1994
Series F, Variable Rate Demand Bonds, 3.700%, 5/01/29+
400,000 Maricopa County, Arizona Pollution Control Corporation, Pollution Control Revenue A-1+ 400,000
Refunding Bonds (Arizona Public Service Company Palo Verde Project), 1994
Series B, Variable Rate Demand Bonds, 3.700%, 5/01/29+
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,200,000 Total Temporary Investments - 1.3% 1,200,000
===========------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 841,981
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $95,731,315
===================================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Michigan Quality Income
Municipal Fund, Inc. (NUM)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
Michigan Higher Education Student Loan Authority, Student Loan
and Refunding Revenue Bonds, Series XV-A:
$ 1,000,000 6.800%, 10/01/07 (Alternative Minimum Tax) 10/02 at 102 A $1,080,300
1,250,000 6.800%, 10/01/08 (Alternative Minimum Tax) 10/02 at 102 A 1,347,438
990,000 6.800%, 10/01/09 (Alternative Minimum Tax) 10/02 at 102 A 1,064,844
2,000,000 Michigan Municipal Bond Authority, Local Government Loan Program Revenue Bonds, 5/02 at 102 A 2,167,660
Series 1992D, 6.650%, 5/01/12
3,100,000 Michigan Municipal Bond Authority, State Revolving Fund Reserve Bonds, Series 10/02 at 102 Aa1 3,489,825
1992A, 6.600%, 10/01/18 (Pre-refunded to 10/01/02)
2,390,000 Michigan South Central Power Agency, Power Supply System Revenue Refunding 11/01 at 102 Baa1 2,586,864
Bonds, 1991 Series, 6.750%, 11/01/10
Michigan State Hospital Finance Authority, Hospital Revenue and
Refunding Bonds (The Detroit Medical Center Obligated Group),
Series 1988B:
5,090,000 8.125%, 8/15/08 (Pre-refunded to 8/15/98) 8/98 at 102 A 5,406,700
410,000 8.125%, 8/15/08 8/98 at 102 A 433,817
1,450,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (McLaren 9/01 at 102 Aaa 1,658,191
Obligated Group), Series 1991A, 7.500%, 9/15/21 (Pre-refunded to 9/15/01)
10,355,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Daughters 11/01 at 102 Aa 11,444,553
of Charity National Health System-Providence Hospital), Series 1991,
7.000%, 11/01/21
8,800,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mercy Mount 5/01 at 100 Aa 9,002,048
Clemens Corporation), Series 1992, 6.000%, 5/15/17
3,035,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (MidMichigan 12/02 at 102 A 3,337,893
Obligated Group), Series 1992, 6.900%, 12/01/24
1,250,000 Michigan State Hospital Finance Authority, Revenue Bonds (Presbyterian Villages 1/07 at 102 N/R 1,285,138
of Michigan Obligated Group), Series 1997, 6.375%, 1/01/25
4,415,000 Michigan State Housing Development Authority, Single-Family Mortgage Revenue 12/01 at 102 AA+ 4,679,723
Bonds, 1991 Series B, 6.950%, 12/01/20
2,390,000 Michigan State Housing Development Authority, Single-Family Mortgage Revenue 6/02 at 102 AA+ 2,519,227
Bonds, 1992 Series A, 6.875%, 6/01/23
5,250,000 Michigan State Housing Development Authority, Limited Obligation Revenue Bonds 10/02 at 103 Aaa 5,635,613
(Parkway Meadows Project), Series 1991, 6.850%, 10/15/18
7,185,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1/02 at 102 A+ 7,615,094
1991 Series B, 7.100%, 4/01/21
1,570,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1/02 at 102 A+ 1,676,462
1991 Series A, 7.150%, 4/01/10 (Alternative Minimum Tax)
3,630,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue Bonds (The Detroit No Opt. Call Aaa 4,555,469
Edison Company Pollution Control Bonds Project), Series 1991BB, 7.000%, 5/01/21
4,330,000 Michigan Strategic Fund, Limited Obligation Refunding Bonds (The Detroit Edison 9/01 at 102 Aaa 4,812,579
Company Pollution Control Bonds Project), Collateralized Series 1991CC,
6.950%, 9/01/21
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 7,600,000 Michigan Strategic Fund Limited Obligation Refunding Revenue Bonds (The Detroit 12/01 at 102 Aaa $8,460,016
Edison Company Pollution Control Bonds Project), Collateralized Series 1991DD,
6.875%, 12/01/21
4,095,000 State Building Authority, State of Michigan, 1991 Revenue Bonds, Series II, 10/01 at 102 AA- 4,471,085
6.800%, 10/01/21
4,800,000 State Building Authority, State of Michigan, 1991 Revenue Refunding Bonds, 10/01 at 102 AA- 5,144,064
Series I, 6.250%, 10/01/20
7,200,000 State of Michigan, State Trunk Line Fund Bonds, Series 1989A, 7.000%, 8/15/17 8/99 at 102 AAA 7,759,656
(Pre-refunded to 8/15/99)
3,935,000 Anchor Bay School District, Counties of Macomb and St. Clair, State of Michigan, 5/03 at 101 1/2 Aaa 3,986,509
1993 School Building and Site Bonds (General Obligation Unlimited Tax),
5.550%, 5/01/19
1,200,000 Berkley School District, County of Oakland, State of Michigan, 1995 School 1/05 at 101 Aaa 1,279,560
Building and Site Bonds (General Obligation-Unlimited Tax), 6.000%, 1/01/19
1,930,000 Central Michigan University, Revenue Bonds, Series 1997, 5.500%, 10/01/17 4/07 at 101 Aaa 1,975,201
6,680,000 Chippewa Valley Schools, County of Macomb, State of Michigan, 1993 Refunding 5/03 at 102 Aaa 6,419,213
Bonds (General Obligation-Unlimited Tax), 5.000%, 5/01/21
2,000,000 School District of the City of Detroit, Wayne County, Michigan, School Building 5/06 at 102 Aaa 2,084,720
and Site Improvement Bonds (Unlimited Tax General Obligation), Series 1996A,
5.700%, 5/01/25
7,000,000 The Economic Development Corporation of the City of Detroit, Resource Recovery 5/01 at 102 Aaa 7,639,870
Revenue Bonds, Series 1991A, 6.875%, 5/01/09 (Alternative Minimum Tax)
520,000 City of Detroit, County of Wayne, Michigan, Sewage Disposal System Revenue 12/97 at 101 Aaa 540,602
Bonds (1979 Series), 6.900%, 12/15/99
6,000,000 City of Detroit, Michigan, Water Supply System Revenue and Revenue Refunding 7/04 at 102 Aaa 5,747,640
Bonds, Series 1993, 5.000%, 7/01/23
1,000,000 Essexville-Hampton Public Schools, County of Bay, State of Michigan, 1997 School 5/07 at 100 Aaa 1,024,940
Building and Site Bonds (General Obligation-Unlimited Tax), 5.500%, 5/01/17
1,600,000 Gaylord Community Schools, Counties of Ostego and Antrim, State of Michigan, 5/02 at 102 AA 1,788,832
1992 School Building and Site and Refunding Bonds, 6.600%, 5/01/21
(Pre-refunded to 5/01/02)
3,075,000 Goodrich Area Schools, Counties of Genesee, Oakland and Lapeer, State of 5/05 at 102 Aaa 3,236,714
Michigan, 1995 School Building and Site and Refunding Bonds (General
Obligation-Unlimited Tax), 5.875%, 5/01/24
3,000,000 Grand Rapids Community College, Community College Bonds, Series 1993 5/03 at 102 AA- 2,930,460
(General Obligation Limited Tax), 5.000%, 5/01/21
1,325,000 Greenville Public Schools, Counties of Montcalm, Kent and Ionia, State of Michigan, 5/04 at 101 Aaa 1,388,388
1995 School Building and Site Bonds (General Obligation-Unlimited Tax),
5.750%, 5/01/14
1,000,000 Grosse Ile Township School District, School Improvement Refunding Bonds, 5/07 at 100 Aaa 1,073,940
General Obligation, Series 1996, 6.000%, 5/01/22
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,250,000 Gull Lake Community Schools, Counties of Kalamazoo, Barry and Calhoun, 5/01 at 102 Aaa $1,387,350
State of Michigan, 1991 School Building and Site Bonds, 6.800%, 5/01/21
(Pre-refunded to 5/01/01)
3,100,000 Hemlock Public School District Counties of Saginaw and Midland, State of 5/02 at 102 AA 3,501,450
Michigan, 1992 School Building and Site and Refunding Bonds,
6.750%, 5/01/21 (Pre-refunded to 5/01/02)
1,000,000 Huron Valley School District, Counties of Oakland and Livingston, State of Michigan, 5/07 at 100 Aaa 1,059,660
1996 School Building and Site Bonds (General Obligation-Unlimited Tax),
5.875%, 5/01/16
3,725,000 Lake Orion Community School District, County of Oakland, State of Michigan, 5/05 at 101 Aaa 3,776,293
1995 Refunding Bonds (General Obligation-Unlimited Tax), 5.500%, 5/01/20
2,500,000 Lake Shore Public Schools, County of Macomb, State of Michigan 1997 School 5/07 at 100 Aaa 2,547,000
Building and Site Bonds (General Obligation-Unlimited Tax), 5.500%, 5/01/17
2,000,000 Lincoln Park School District, General Obligation Bonds, Series 1996, 5.900%, 5/01/26 5/06 at 101 Aaa 2,112,880
1,500,000 Livonia Public Schools District, County of Wayne, State of Michigan, 1995 5/04 at 102 Aaa 1,463,910
Refunding Bonds, 5.125%, 5/01/22
1,000,000 Mancelona Public School District, General Obligation Bonds, Series 1997 (Antrim 5/06 at 100 Aaa 993,810
& Kalkaska Counties), 5.200%, 5/01/17
1,000,000 Marquette Area Public Schools, County of Marquette, State of Michigan, 1991 5/01 at 102 Aaa 1,106,440
School Building and Site Bonds, Series B (General Obligation-Unlimited Tax),
6.700%, 5/01/21 (Pre-refunded to 5/01/01)
6,400,000 Mattawan Consolidated School, Counties of Van Buren and Kalamazoo, State of 5/02 at 102 AA 6,939,200
Michigan, 1992 Refunding Bonds (General Obligation-Unlimited Tax),
6.300%, 5/01/17
7,000,000 County of Monroe, Michigan, Pollution Control Revenue Bonds (The Detroit Edison 9/02 at 102 Aaa 7,747,880
Company Monroe and Fermi Plants Project), Collateralized Series I-1992,
6.875%, 9/01/22 (Alternative Minimum Tax)
2,500,000 Montrose Township School District, Michigan, School Building and Site Bonds, No Opt. Call Aaa 2,787,650
Series 1997, 6.000%, 5/01/22
1,045,000 Nice Community School District, Counties of Marquette and Baraga, State of 5/04 at 101 Aaa 1,025,856
Michigan, 1995 School Building and Site Bonds (General Obligation-Unlimited
Tax), 5.250%, 5/01/20
2,150,000 North Branch Area Schools, County of Lapeer, State of Michigan, 1992 School 5/02 at 102 AA 2,403,743
Building and Site and Refunding Bonds (General Obligation-Unlimited Tax),
6.600%, 5/01/17 (Pre-refunded to 5/01/02)
1,225,000 North Branch Area Schools, County of Lapeer, State of Michigan, 1993 Refunding 5/03 at 101 1/2 Aaa 1,222,440
Bonds (General Obligation-Unlimited Tax), 5.375%, 5/01/21
2,000,000 Board of Trustees of Oakland University, Michigan, General Revenue Bonds, Series 5/05 at 102 Aaa 2,103,760
1995, 5.750%, 5/15/15
1,500,000 Perry Public Schools, Counties of Shiawassee and Ingham, State of Michigan, 5/02 at 101 1/2 Aaa 1,657,860
1992 School Building and Site Bonds (General Obligation-Unlimited Tax),
6.375%, 5/01/22 (Pre-refunded to 5/01/02)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,650,000 Plymouth-Canton Community Schools, Counties of Wayne and Washtenaw, State 5/01 at 101 AA $5,117,604
of Michigan, 1991 School Building and Site and Refunding Bonds, Series B,
6.800%, 5/01/11 (Pre-refunded to 5/01/01)
1,805,000 Reeths-Puffer Schools, County of Muskegon, State of Michigan, 1995 School 5/05 at 101 Aaa 1,894,943
Building and Site and Refunding Bonds, 5.750%, 5/01/15
6,385,000 City of Royal Oak Hospital Finance Authority (Michigan), Hospital Revenue Bonds 1/01 at 102 Aaa 7,031,290
(William Beaumont Hospital), Series 1991D, 6.750%, 1/01/20 (Pre-refunded
to 1/01/01)
4,845,000 Saginaw-Midland Municipal Water Supply Corporation, State of Michigan, Water 9/04 at 102 A 5,517,922
Supply Revenue Bonds (Limited Tax General Obligation), Series 1992,
6.875%, 9/01/16
2,400,000 Three Rivers Community Schools, Counties of Cass and St. Joseph, State of Michigan, 5/06 at 102 Aaa 2,578,464
1996 School Building and Site Bonds (General Obligation-Unlimited Tax),
6.000%, 5/01/23
Regents of the University of Michigan, Medical Service Plan Revenue Bonds,
Series 1991:
2,195,000 0.000%, 12/01/10 No Opt. Call Aa 1,148,117
9,250,000 6.500%, 12/01/21 12/01 at 102 Aa2 10,008,500
4,200,000 Warren Consolidated Schools, Counties of Macomb and Oakland, State of Michigan, 5/01 at 102 Aa 4,643,940
1991 School Building and Site and Refunding Bonds (General Obligation-
Unlimited Tax), 6.700%, 5/01/21 (Pre-refunded to 5/01/01)
5,280,000 The Economic Development Corporation of the City of Warren, Nursing Home 3/02 at 101 Aaa 5,617,022
Revenue Refunding Bonds (GNMA Mortgage-Backed Security-Autumn Woods
Project), Series 1992, 6.900%, 12/20/22
2,505,000 Charter County of Wayne, Michigan, Airport Revenue Bonds (Detroit Metropolitan 12/01 at 102 Aaa 2,740,846
Wayne County Airport), Subordinate Lien, Series 1991B, 6.750%, 12/01/21
(Alternative Minimum Tax)
1,450,000 Board of Trustees of Western Michigan University, General Revenue Bonds, Series 7/03 at 102 Aaa 1,393,232
1993A, 5.000%, 7/15/21
1,895,000 Western Townships Utilities Authority, Sewage Disposal System Bonds, Series 1/99 at 102 BBB+ 2,034,490
1989, 8.300%, 1/01/19
Western Townships Utilities Authority, Sewage Disposal System Refunding Bonds,
Series 1991:
1,500,000 6.750%, 1/01/15 1/02 at 100 Aaa 1,634,370
6,250,000 6.500%, 1/01/19 1/02 at 100 Aaa 6,750,562
2,725,000 Williamston Community School District, General Obligation-Unlimited Tax, Series No Opt. Call Aaa 2,881,470
1996 (Q-SBLF), 5.500%, 5/01/25
5,000,000 City of Wyandotte, County of Wayne, State of Michigan, 1992 Electric Revenue 10/02 at 102 Aaa 5,422,900
Refunding Bonds, 6.250%, 10/01/17
1,500,000 School District of Ypsilanti, County of Washtenaw, State of Michigan, 1996 5/07 at 100 Aaa 1,507,214
School Building and Site and Refunding Bonds (General Obligation-Unlimited
Tax), 5.375%, 5/01/26
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series X, 7/05 at 100 Baa1 $1,005,040
5.500%, 7/01/25
- -----------------------------------------------------------------------------------------------------------------------------------
$239,580,000 Total Investments - (cost $233,291,610) - 98.2% 255,515,956
============-----------------------------------------------------------------------------------------------------------------------
Temporary Investments in Short-Term Municipal Securities - 0.7%
$ 400,000 The Economic Development Corporation of the County of Delta, Michigan, P-1 400,000
Environmental Improvement Revenue Refunding Bonds, 1985 Series F
(Mead-Escanaba Paper Company Project), Variable Rate Demand Bonds,
3.650%, 12/01/13+
400,000 The Economic Development Corporation of the County of Delta Michigan, P-1 400,000
Environmental Improvement Revenue Refunding Bonds, 1985 Series D
(Mead-Escanaba Paper Company Project), Variable Rate Demand Bonds,
3.650%, 12/01/23+
1,000,000 City of Royal Oak Hospital Finance Authority, Hospital Revenue Bonds (William VMIG-1 1,000,000
Beaumont Hospital), Series 1996J, Variable Rate Demand Bonds,
3.650%, 1/01/03+
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,800,000 Total Temporary Investments - 0.7% 1,800,000
===========------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,930,910
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $260,246,866
===================================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Michigan Premium Income
Municipal Fund, Inc. (NMP)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,250,000 Michigan Higher Education Student Loan Authority, Student Loan and Refunding 10/02 at 102 A $1,344,800
Revenue Bonds, Series XV-A, 6.700%, 10/01/05 (Alternative Minimum Tax)
1,950,000 Michigan Municipal Bond Authority, State Revolving Fund Revenue Bonds, Series No Opt. Call Aa1 2,234,096
1994, 7.000%, 10/01/03
4,020,000 Michigan Public Power Agency, Belle River Project Refunding Revenue Bonds, 1/03 at 102 AA- 3,989,971
1993 Series A, 5.250%, 1/01/18
1,775,000 Michigan South Central Power Agency, Power Supply System Revenue Refunding No Opt. Call Aaa 1,919,751
Bonds, 1992 Series, 5.700%, 11/01/04
2,500,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Daughters 11/01 at 102 Aa 2,763,050
of Charity National Health System-Providence Hospital), Series 1991,
7.000%, 11/01/21
4,000,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds 9/02 at 102 AA 4,097,840
(Henry Ford Health System), Series 1992A, 5.750%, 9/01/17
3,000,000 Michigan State Hospital Finance Authority (Michigan), Hospital Revenue Refunding 5/03 at 102 Aaa 3,189,330
Bonds (St. John Hospital), Series 1993A, 6.000%, 5/15/13
Michigan State Hospital Finance Authority, Revenue and Refunding
Bonds (The Detroit Medical Center Obligated Group), Series 1993A:
3,000,000 6.250%, 8/15/13 8/03 at 102 A 3,206,760
3,200,000 6.500%, 8/15/18 8/03 at 102 A 3,467,392
4,000,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds 11/03 at 102 Aaa 4,106,320
(Oakwood Hospital Obligated Group), Series 1993A, 5.500%, 11/01/13
1,500,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds No Opt. Call A 1,540,590
(The Detroit Medical Center Obligated Group), Series 1993B, 5.000%, 8/15/02
2,000,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds 1/05 at 102 AA- 2,162,820
(Otsego Memorial Hospital Gaylord, Michigan), Series 1995, 6.250%, 1/01/20
5,250,000 Michigan State Housing Development Authority, Single Family Mortgage Revenue 6/05 at 102 AA+ 5,622,435
Bonds, 1995 Series A, 6.800%, 12/01/16
2,400,000 Michigan State Housing Development Authority, Limited Obligation Revenue Bonds 4/04 at 103 Aaa 2,469,072
(Walled Lake Villa Project), Series 1993, 6.000%, 4/15/18
1,500,000 Michigan State Housing Development Authority, Limited Obligation Revenue Bonds 10/03 at 103 Aaa 1,508,955
(Brenton Village Green Project), Series 1993, 5.625%, 10/15/18
Michigan State Housing Development Authority, Rental Housing Revenue Bonds,
1992 Series A:
4,000,000 6.500%, 4/01/06 10/02 at 102 A+ 4,269,520
4,300,000 6.600%, 4/01/12 10/02 at 102 A+ 4,550,045
1,000,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 4/03 at 102 Aaa 1,022,490
1993 Series A, 5.875%, 10/01/17
3,050,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Waste Management, 12/02 at 102 A1 3,327,337
Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax)
8,500,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue Bonds (Consumers 6/03 at 102 Aaa 9,040,940
Power Company Project), Collateralized Series 1993B, 5.800%, 6/15/10
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,000,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (WMX Technologies, 12/03 at 102 A $1,035,450
Inc. Project), Series 1993, 6.000%, 12/01/13 (Alternative Minimum Tax)
1,000,000 State Building Authority, State of Michigan, 1991 Revenue Bonds, Series II, 10/01 at 102 AA- 1,071,680
6.250%, 10/01/20
2,750,000 State Building Authority, State of Michigan, 1991 Revenue Refunding Bonds, Series I, 10/01 at 102 AA- 2,947,120
6.250%, 10/01/20
3,275,000 State of Michigan, Comprehensive Transportation Bonds, Series 1992A, 5/02 at 100 AA- 3,396,503
5.750%, 5/15/12
2,500,000 State of Michigan, State Trunk Line Fund Bonds, Series 1989A, 7.000%, 8/15/17 8/99 at 102 AAA 2,694,325
(Pre-refunded to 8/15/99)
1,750,000 State of Michigan, State Trunk Line Fund Bonds, Series 1994A, 5.700%, 11/15/15 11/04 at 102 AA- 1,826,510
1,500,000 City of Ann Arbor, County of Washtenaw, State of Michigan, Water Supply System 2/03 at 101 1/2 Aaa 1,548,270
Revenue Bonds, Series T, 5.500%, 2/01/13
2,400,000 Chippewa Valley Schools, County of Macomb, State of Michigan, 1993 Refunding 5/03 at 102 Aaa 2,306,304
Bonds (General Obligation-Unlimited Tax), 5.000%, 5/01/21
3,000,000 Clarkston Community Schools, County of Oakland, State of Michigan, 1993 School 5/03 at 102 AA 3,120,630
Building and Site and Refunding Bonds, 5.900%, 5/01/16
2,500,000 School District of the City of Detroit Wayne County, Michigan, School Building 5/01 at 102 AA 2,668,250
and Site Bonds (Unlimited Tax General Obligation), Series 1992, 6.250%, 5/01/12
6,500,000 City of Detroit, Michigan, Convention Facility Limited Tax Revenue Refunding 9/03 at 102 Aaa 6,555,315
Bonds (Cobo Hall Expansion Project), Series 1993, 5.250%, 9/30/12
4,550,000 City of Detroit, Michigan, Sewage Disposal System Revenue and Revenue Refunding 7/03 at 102 Aaa 4,746,242
Bonds, Series 1993-A, 5.700%, 7/01/13
4,500,000 City of Detroit, Michigan, Water Supply System Revenue and Revenue Refunding 7/04 at 102 Aaa 4,197,780
Bonds, Series 1993, 4.750%, 7/01/19
3,000,000 Dexter Community Schools, Counties of Washtenaw and Livingston, State of 5/03 at 102 AA 2,904,660
Michigan, 1993 School Building and Site and Refunding Bonds (General
Obligation Unlimited Tax), 5.000%, 5/01/17
1,950,000 Board of Regents of Eastern Michigan University, General Revenue Bonds, Series 12/06 at 101 Aaa 1,997,795
1997, 5.500%, 6/01/17
2,000,000 Board of Control of Ferris State University, General Revenue Bonds, Series 1993, 10/03 at 102 Aaa 2,184,040
6.250%, 10/01/19
6,750,000 The City of Grand Haven, Michigan, Electric System Revenue Refunding Bonds, 7/03 at 102 Aaa 6,677,910
1993 Series, 5.250%, 7/01/16
4,000,000 City of Kalamazoo Hospital Finance Authority, Hospital Revenue Refunding and 5/06 at 102 Aaa 4,182,920
Improvement Bonds (Bronson Methodist Hospital), Series 1996, 5.750%, 5/15/16
1,000,000 Kent Hospital Finance Authority (Michigan), Hospital Revenue Refunding No Opt. Call A1 1,034,860
Bonds (Butterworth Hospital), Series 1993A, 5.100%, 1/15/07
2,000,000 City of Lansing, Board of Water and Light, Ingham and Easton Counties, 7/01 at 100 Aa 1,982,800
State of Michigan, Water Supply and Electric Utility System Revenue
Bonds, Series 1994A, 4.900%, 7/01/11
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 6,000,000 County of Monroe, Michigan, Pollution Control Revenue Bonds (The Detroit No Opt. Call Aaa $6,660,660
Edison Company Project), Series A-1994, 6.350%, 12/01/04 (Alternative
Minimum Tax)
County of Monroe, Michigan, Pollution Control Revenue Bonds (The
Detroit Edison Company Project), Series CC-1992:
2,500,000 6.550%, 6/01/24 (Alternative Minimum Tax) 6/03 at 102 Aaa 2,739,250
1,500,000 6.550%, 9/01/24 (Alternative Minimum Tax) 9/03 at 103 Aaa 1,647,780
Mount Clemens Housing Corporation, Multifamily Housing Refunding
Revenue Bonds, Series 1992A (FHA Insured Mortgage Loan-Section 8
Assisted Project):
1,000,000 6.600%, 6/01/13 6/03 at 102 AAA 1,061,960
1,500,000 6.600%, 6/01/22 6/03 at 102 AAA 1,574,535
1,130,000 Board of Trustees of Oakland University, Michigan, General Revenue Bonds, Series 5/05 at 102 Aaa 1,188,624
1995, 5.750%, 5/15/15
1,000,000 Reeths-Puffer Schools, County of Muskegon, State of Michigan, 1995 School Building 5/05 at 101 Aaa 1,049,830
and Site and Refunding Bonds, 5.750%, 5/01/15
3,615,000 Saginaw-Midland Municipal Water Supply Corporation, State of Michigan, Water 9/02 at 101 1/2 A 3,630,906
Supply System Revenue Bonds (Limited Tax General Obligation), Series 1993,
5.250%, 9/01/16
2,650,000 Regents of the University of Michigan, Hospital Revenue Bonds, Series 1990, 12/00 at 100 AA 2,760,373
6.375%, 12/01/24
3,000,000 Regents of the University of Michigan, Hospital Revenue Refunding Bonds, Series 12/02 at 102 AA 3,021,330
1993A, 5.500%, 12/01/21
Charter County of Wayne, Michigan, Detroit Metropolitan Wayne County Airport,
Airport Revenue Bonds (Detroit Metropolitan Wayne County Airport), Subordinated
Lien, Series 1993B:
1,000,000 4.750%, 12/01/02 (Alternative Minimum Tax) No Opt. Call Aaa 1,018,800
1,000,000 4.800%, 12/01/03 (Alternative Minimum Tax) No Opt. Call Aaa 1,018,520
3,250,000 Board of Trustees of Western Michigan University, General Revenue Bonds, Series 7/03 at 102 Aaa 3,293,745
1993A, 5.500%, 7/15/16
1,000,000 Western Townships Utilities Authority, Sewage Disposal System Refunding Bonds, 1/02 at 100 Aaa 1,085,920
Series 1991, 6.500%, 1/01/10
5,625,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds, Series 1993 No Opt. Call Aaa 6,073,031
(General Obligation Bonds), 5.375%, 7/01/06
4,100,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds, Series 1997 7/07 at 101 1/2 A 4,320,620
(General Obligation Bonds), 5.750%, 7/01/17
1,000,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1993 Series A 6/03 at 102 Baa3 1,059,069
(American Airlines, Inc. Project), 6.300%, 6/01/23 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
$160,990,000 Total Investments - (cost $156,934,925) - 97.6% 168,117,831
============-----------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
Temporary Investments in Short-Term Municipal Securities - 1.3%
$ 1,300,000 The Economic Development Corporation of the County of Delta, Michigan, P-1 $1,300,000
Environmental Improvement Revenue Refunding Bonds, 1985 Series F
(Mead-Escanaba Paper Company Project), Variable Rate Demand Bonds,
3.650%, 12/01/13+
500,000 The Economic Development Corporation of the County of Delta, Michigan, P-1 500,000
Environmental Improvement Revenue Refunding Bonds, 1985 Series D
(Mead-Escanaba Paper Company Project), Variable Rate Demand Bonds,
3.650%, 12/01/23+
500,000 Regents of The University of Michigan, Hospital Revenue Bonds, Series 1995A VMIG-1 500,000
(Adjustable Rate Demand), Variable Rate Demand Bonds, 3.800%, 12/01/27+
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,300,000 Total Temporary Investments - 1.3% 2,300,000
===========------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 1,856,975
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $172,274,806
===================================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Ohio Quality Income
Municipal Fund, Inc. (NUO)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,250,000 Ohio Air Quality Development Authority, State of Ohio, Air Quality Development 4/01 at 102 Baa1 $2,379,960
Refunding Revenue Bonds, Series 1992 (Ashland Oil, Inc. Project), 6.850%, 4/01/10
4,000,000 Ohio Air Quality Development Authority, State of Ohio, Collateralized Pollution 6/02 at 103 Aaa 4,698,480
Control Revenue Refunding Bonds, Series 1992 (The Cleveland Electric
Illuminating Company Project), 8.000%, 12/01/13
2,000,000 Ohio Air Quality Development Authority, Air Quality Development Revenue 10/04 at 102 Aaa 2,162,860
Refunding Bonds (JMG Funding Limited Partnership Project), Series 1994,
6.375%, 1/01/29 (Alternative Minimum Tax)
205,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA 2/98 at 103 AAA 213,159
Mortgage-Backed Securities Program), 1988 Series A, 8.250%, 2/01/16
(Alternative Minimum Tax)
7,910,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA 9/99 at 102 AAA 8,342,756
Mortgage-Backed Securities Program), 1989 Series A, 7.650%, 3/01/29
(Alternative Minimum Tax)
500,000 Ohio Water Development Authority, State of Ohio, Water Development Revenue 12/00 at 100 AAA 535,625
Refunding Bonds, Refunding and Improvement Series, 8.000%, 12/01/18
(Pre-refunded to 12/01/00)
1,000,000 Ohio Water Development Authority, State of Ohio, Water Development Revenue 6/05 at 102 Aaa 1,061,180
Bonds, 1995 Fresh Water Series, 5.900%, 12/01/21
3,205,000 Ohio Water Development Authority, Revenue Bonds, USA Waste Services, Series 3/02 at 102 N/R 3,474,829
1992, 7.750%, 9/01/07 (Alternative Minimum Tax)
1,500,000 State of Ohio (OPFC), Higher Education Capital Facilities Bonds, Series II-1992A, 12/01 at 102 AA- 1,584,315
5.500%, 12/01/06
2,400,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational 12/03 at 102 Aaa 2,699,760
Facility Mortgage Revenue Bonds (University of Dayton 1992 Project),
6.600%, 12/01/17
1,000,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational 12/04 at 102 Aaa 1,059,930
Facility Revenue Bonds (University of Dayton 1994 Project), 5.800%, 12/01/14
1,200,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational 9/06 at 101 N/R 1,248,912
Facility Revenue Bonds (The University of Findlay 1996 Project), 6.125%, 9/01/16
3,000,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational 5/07 at 102 Aaa 3,021,900
Facility Revenue Bonds (Xavier University 1997 Project), 5.375%, 5/15/22
2,435,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational 12/07 at 101 Aaa 2,461,566
Facility Revenue Bonds (University of Dayton 1997 Project), 5.400%, 12/01/22
1,000,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher Educational 10/02 at 102 Aa 1,055,220
Facility Revenue Bonds, Series 1992 (Case Western Reserve University Project),
6.000%, 10/01/22
3,000,000 State of Ohio Department of Transportation, Certificates of Participation (Richenbacker 10/97 at 105 AA- 3,019,680
Port Authority Improvements), 6.125%, 4/15/15 (Alternative Minimum Tax)
1,000,000 State of Ohio (Ohio Building Authority), State Facilities Bonds (Juvenile Correctional 10/02 at 102 AA- 1,055,220
Building Fund Projects), 1992 Series B, 6.000%, 10/01/12
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,000,000 State of Ohio (Ohio Building Authority), State Facilities Bonds (Adult Correctional 10/03 at 102 AA- $3,214,590
Building Fund Projects), 1993 Series A, 6.125%, 10/01/12
3,665,000 State of Ohio, Education Loan Revenue Bonds, Series 1997A (Supplemental Student 6/07 at 102 Aaa 3,755,929
Loan Program), 1997A1, 5.850%, 12/01/19 (Alternative Minimum Tax)
4,000,000 State of Ohio, Ohio Air Quality Development Authority, Air Quality Development 10/04 at 102 Aaa 4,325,720
Revenue Refunding Bonds (JMG Funding, Limited Partnership Project), Series 1994,
6.375%, 4/01/29 (Alternative Minimum Tax)
1,575,000 The Ohio State University (A State University of Ohio), General Receipts Bonds, 12/02 at 102 Aa2 1,637,055
Series 1992 A1, 5.875%, 12/01/12
1,500,000 City of Akron, Ohio, Waterworks System Mortgage Revenue Improvement Bonds, 3/01 at 102 Aaa 1,649,565
Series 1991, 6.550%, 3/01/12 (Pre-refunded to 3/01/01)
2,000,000 County of Ashtabula, Ohio, Industrial Development Refunding Revenue Bonds, 1992 5/02 at 102 Baa1 2,146,160
Series A (Ashland Oil, Inc. Project), 6.900%, 5/01/10
2,000,000 City of Barberton, Ohio Hospital Facilities Revenue Bonds, Series 1992 (The 1/02 at 102 A 2,270,260
Barberton Citizens Hospital Company Project), 7.250%, 1/01/12 (Pre-refunded
to 1/01/02)
Berea City School District, Ohio, School Improvement Bonds,
Series 1993 (General Obligation Unlimited Tax Bonds):
650,000 7.500%, 12/15/06 12/03 at 102 Aaa 777,147
680,000 7.450%, 12/15/07 12/03 at 102 Aaa 804,420
825,000 Bowling Green State University, Ohio, General Receipts Bonds, Series 1991, 6/01 at 102 A 897,221
6.700%, 6/01/07
1,750,000 Brecksville-Broadview Heights City School District, Ohio, School Improvement Bonds, 12/06 at 102 Aaa 1,986,933
Series 1996 (General Obligation Unlimited Tax Bonds), 6.500%, 12/01/16
1,000,000 Buckeye Local School District General Obligation, 5.625%, 12/01/11 12/03 at 102 Aaa 1,053,940
1,000,000 County of Butler, Ohio, Hospital Facilities Revenue Refunding and Improvement 1/02 at 102 Baa 1,089,860
Bonds, Series 1991 (Fort Hamilton-Hughes Memorial Hospital Center),
7.500%, 1/01/10
445,000 City of Hamilton and County of Butler, Hospital Facilities Revenue Refunding, No Opt. Call Baa 464,010
Fort Hamilton-Hughes Memorial Hospital Center, 7.250%, 1/01/01
City of Cambridge, Ohio, Hospital Revenue Refunding Bonds, Series
1991 (Guernsey Memorial Hospital Project):
1,680,000 8.000%, 12/01/06 12/01 at 102 BBB 1,872,763
750,000 8.000%, 12/01/11 12/01 at 102 BBB 832,860
2,000,000 County of Carroll, Ohio, Hospital Improvement Revenue Bonds, Series 1991 12/01 at 102 AAA 2,270,940
(Timken Mercy Medical Center), 7.125%, 12/01/18 (Pre-refunded to 12/01/01)
2,675,000 County of Clermont, Ohio, Hospital Facilities Revenue Refunding Bonds, Series 1/03 at 102 Aaa 2,805,781
1993 A (Mercy Health System), 5.875%, 1/01/15
1,385,000 County of Clermont, Ohio, Mortgage Revenue Bonds, Series 1994 (GNMA 8/03 at 103 Aaa 1,415,055
Collateralized-S.E.M. Villa II Project), Series 1994-A, 5.950%, 2/20/30
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,500,000 County of Clermont, Ohio, Waterworks System Revenue Bonds, Series 1991, 12/01 at 102 Aaa $2,791,650
Clermont County Sewer District, 6.625%, 12/01/14 (Pre-refunded to 12/01/01)
1,000,000 City of Cleveland, Ohio, Various Purpose General Obligation Bonds, Series 1991A, 10/01 at 102 Aaa 1,117,980
6.750%, 10/01/11 (Pre-refunded to 10/01/01)
2,075,000 City of Cleveland, Ohio, Airport System Revenue Bonds, 1990 Series A, 1/00 at 102 Aaa 2,246,499
7.400%, 1/01/20 (Alternative Minimum Tax)
3,430,000 City of Cleveland, Ohio, Parking Facilities Revenue Bonds, Series 1996, 5.500%, 9/15/22 9/06 at 102 Aaa 3,498,429
3,000,000 City of Cleveland, Ohio, Public Power System Improvement First Mortgage Revenue 11/01 at 102 Aaa 3,351,360
Bonds, Series 1991B, 7.000%, 11/15/17
2,000,000 City of Cleveland, Ohio, Public Power System First Mortgage Revenue Bonds, 11/04 at 102 Aaa 2,355,020
Series 1994A, 7.000%, 11/15/24 (Pre-refunded to 11/15/04)
1,000,000 City of Cleveland, Ohio, Regional Sewer District, 6.750%, 4/01/07 (Pre-refunded 5/04 at 100 Aaa 1,138,740
to 5/15/04)
City of Cleveland, Ohio, Waterworks Improvement First Mortgage
Revenue Refunding Bonds, Series F, 1992B:
2,965,000 6.500%, 1/01/11 1/02 at 102 Aaa 3,268,824
3,720,000 6.250%, 1/01/16 1/02 at 102 Aaa 4,023,515
1,575,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage Revenue Bonds, 1/02 at 102 Aaa 1,747,478
Series F, 1992 A, 6.500%, 1/01/21 (Pre-refunded to 1/01/02)
1,000,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage Refunding Revenue No Opt. Call Aaa 1,054,270
Bonds, Series G, 1993, 5.500%, 1/01/21
4,000,000 City of Cleveland, Waterworks Improvement and Refunding Revenue Bonds, 1/06 at 102 Aaa 4,207,920
1st Mortgage Series 1996-H, 5.750%, 1/01/26
35,000 City of Cleveland, Ohio, First Mortgage Revenue Refunding Bonds, Series F, 1992-B, 1/02 at 102 Aaa 38,833
6.500%, 1/01/11 (Pre-refunded to 1/01/02)
2,000,000 City of Columbus, Ohio, General Obligation Refunding Bonds, Series 1992B, 1/02 at 102 Aaa 2,212,600
6.500%, 1/01/10
1,950,000 City School District of Columbus, Franklin County, Ohio, School Building Renovation 12/02 at 102 Aaa 2,209,779
and Improvement Bonds, Series 1992 (General Obligation-Unlimited Tax),
6.650%, 12/01/12 (Pre-refunded to 12/01/02)
Columbus Municipal Airport Authority, Airport Improvement Revenue
Bonds, Series 1994A (Port Columbus International Airport
Project):
830,000 5.950%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102 Aaa 893,952
1,000,000 6.000%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102 Aaa 1,057,410
2,500,000 City of Columbus, Ohio, Sewerage System Revenue Refunding Bonds, Series 1992, 6/02 at 102 AA- 2,730,575
6.250%, 6/01/08
1,500,000 County of Cuyahoga, Ohio, Hospital Improvement Revenue Bonds, Series 1992 1/02 at 102 Aa 1,611,030
(University Hospitals Health System, Inc. Project), 6.500%, 1/15/19
1,170,000 County of Cuyahoga, Ohio, Hospital Facilities Revenue Bonds, Series 1993, Health 2/03 at 102 A1 1,256,440
Cleveland, Inc. (Fairview General Hospital Project), 6.300%, 8/15/15
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,250,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia Health System), Series 8/01 at 102 A1 $3,524,528
1991, 7.000%, 8/15/23
1,000,000 County of Cuyahoga, Ohio, Hospital Improvement and Refunding Revenue Bonds, 2/07 at 102 Aaa 1,032,120
Series 1997 (The MetroHealth System Project), 5.625%, 2/15/17
1,435,000 County of Cuyahoga, Ohio, Multifamily Housing Revenue Bonds (Water Street 6/08 at 105 Aaa 1,495,672
Associates PJ), Series 1997, 6.150%, 12/20/26 (Alternative Minimum Tax)
2,000,000 Dublin City School District, Franklin, Delaware and Union Counties, Ohio, Various 12/02 at 102 Aaa 2,173,120
Purpose School Building Construction and Improvement Bonds (General
Obligation-Unlimited Tax), 6.200%, 12/01/19
4,085,000 County of Franklin, Ohio, Refunding Bonds, Series 1993 (Limited Tax General Obligation 12/08 at 102 Aaa 4,184,470
Bonds), 5.375%, 12/01/20
3,280,000 County of Franklin, Ohio, First Mortgage Revenue, Series 1979 (OCLC Inc. Project), No Opt. Call Aaa 3,829,728
7.500%, 6/01/09
1,365,000 County of Franklin, Ohio, Health Care Facilities Revenue Bonds, Series 1993 (Ohio 7/03 at 102 N/R 1,368,999
Presbyterian Retirement Services), 6.500%, 7/01/23
1,500,000 County of Franklin, Ohio, Hospital Revenue Refunding and Improvement Bonds, 1992 11/02 at 102 Aa 1,645,035
Series A (The Children's Hospital Project), 6.600%, 5/01/13
County of Franklin, Ohio, Hospital Refunding and Revenue Bonds,
1996 Series A (The Children's Hospital Project):
1,000,000 5.750%, 11/01/20 11/06 at 101 Aa 1,034,340
1,500,000 5.875%, 11/01/25 11/06 at 101 Aa 1,566,195
990,000 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue Bonds, Series 1994A 1/05 at 103 Aa 968,299
(FHA Insured Mortgage Loan-Hamilton Creek Apartments Project), 5.550%, 7/01/24
(Alternative Minimum Tax)
6,180,000 County of Franklin, Ohio, Mortgage Revenue Bonds, Series 1992A (FHA Insured 1/02 at 103 Aa 6,472,623
Mortgage Loan - Kensington Place Project), 6.750%, 1/01/34
500,000 County of Franklin, Ohio, Revenue Bonds, Series 1993 (OCLC Online Computer Library 4/03 at 100 N/R 502,630
Center, Incorporated Project), 6.000%, 4/15/13
3,250,000 City of Garfield Heights, Ohio, Hospital Improvement and Refunding Revenue Bonds, 11/02 at 102 A 3,530,443
Series 1992B (Marymount Hospital Project), 6.650%, 11/15/11
1,505,000 Greater Cleveland Regional Transit Authority, General Obligation, Capital Improvement 12/06 at 101 Aaa 1,573,553
Bonds, Series 1996, 5.650%, 12/01/16
6,500,000 Hamilton County Multi-Family Housing Revenue Bonds (Huntington Meadows Project), 1/07 at 102 AAA 6,548,490
1997 FNMA, 5.700%, 1/01/27 (DD)
1,250,000 City of Hamilton, Ohio, Electric System Mortgage Revenue Bonds, 1992 Series B, 10/02 at 102 Aaa 1,374,950
6.300%, 10/15/25
1,000,000 Hamilton County, Ohio, Sewer System Improvement and Refunding Revenue Bonds, 6/01 at 102 AAA 1,108,980
1991 Series A (The Metropolitan Sewer District of Greater Cincinnati),
6.700%, 12/01/13 (Pre-refunded to 6/01/01)
3,000,000 Kent State University (A State University of Ohio), General Receipts Bonds, Series 1992, 5/02 at 102 Aaa 3,307,770
6.500%, 5/01/22
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,000,000 City of Lakewood, Ohio, Various Purpose General Obligation Bonds, Series 1992 12/02 at 102 Aa $1,107,580
(Limited Tax Obligation), 6.500%, 12/01/12
2,100,000 Lakota Local School District, County of Butler, Ohio, School Improvement Unlimited 12/05 at 100 Aaa 2,313,024
Tax General Obligation Bonds, Series 1994, 6.250%, 12/01/14
1,000,000 County of Marion, Ohio, Health Care Facilities Refunding and Improvement Revenue 11/03 at 102 BBB- 1,043,790
Bonds, Series 1993 (United Church Homes, Inc. Project), 6.300%, 11/15/15
2,500,000 County of Marion, Ohio, Hospital Refunding and Improvement Revenue Bonds, 5/06 at 102 BBB+ 2,619,125
1996 (The Community Hospital), 6.375%, 5/15/11
1,400,000 City of Middleburg Heights, Ohio, Hospital Improvement Revenue Bonds, Series 1991 8/01 at 102 AAA 1,560,258
(Southwest General Hospital Project), 6.750%, 8/15/21 (Pre-refunded to 8/15/01)
1,500,000 County of Montgomery, Ohio, Hospital Facilities Revenue Refunding and Improvement 4/06 at 102 Aaa 1,546,620
Bonds, Series 1996 (Kettering Medical Center), 5.625%, 4/01/16
1,000,000 County of Montgomery, Ohio, Water Revenue Bonds, Greater Moraine-Beavercreek 11/02 at 102 Aaa 1,091,340
Sewer District Series 1992, 6.250%, 11/15/17
2,415,000 City of Mount Vernon, Ohio, Hospital Refunding Revenue Bonds, Series 1986A (Knox 6/02 at 100 N/R 2,478,780
Community Hospital), 7.875%, 6/01/12
1,000,000 City of Newark, Ohio, Water System Improvement Bonds (Limited Tax General 12/03 at 102 Aaa 1,068,800
Obligation), 6.000%, 12/01/18
North Canton City School District, Ohio, School Improvement
Bonds, Series 1994 (General Obligation Unlimited Tax):
650,000 9.750%, 12/01/03 No Opt. Call Aaa 841,042
715,000 9.700%, 12/01/04 No Opt. Call Aaa 945,966
2,000,000 Northeast Ohio Regional Sewer District, Wastewater Improvement Revenue Refunding 11/05 at 101 Aaa 2,066,180
Bonds, Series 1995, 5.600%, 11/15/16
1,250,000 City of Oxford, Ohio, Water Supply System Mortgage Revenue, Series 1992 Refunding 12/02 at 102 Aaa 1,330,588
Bonds, 6.000%, 12/01/14
1,000,000 Revere Local School District, Ohio, School Improvement Bonds, Series 1993 (General 12/03 at 102 Aaa 1,071,620
Obligation Unlimited Tax Bonds), 6.000%, 12/01/16
1,400,000 Reynoldsburg City School District, Franklin, Fairfield and Licking Counties, Ohio, 12/02 at 102 Aaa 1,565,214
General Obligation Bonds (Unlimited Tax), For School Building Construction and
Improvement, 6.550%, 12/01/17
1,000,000 Solon City School District, Ohio, School Improvement Bonds, Series 1990, General 12/01 at 102 N/R 1,133,030
Obligation Unlimited Tax Bonds, 7.150%, 12/01/13 (Pre-refunded to 12/01/01)
2,000,000 Southwest Regional Water District (Ohio), Waterworks System Revenue Bonds, 12/05 at 101 Aaa 2,150,640
Series 1995, 6.000%, 12/01/20
2,870,000 City of Strongsville, Ohio, Various Purpose Improvement Bonds, Series 1996 (General 12/06 at 102 Aa 3,032,184
Obligation-Limited Tax), 5.950%, 12/01/21
3,500,000 The Student Loan Funding Corporation, Cincinnati, Ohio, Student Loan Subordinated 7/02 at 100 A 3,700,690
Revenue Refunding Bonds, Series 1992 D, 6.600%, 7/01/05 (Alternative Minimum Tax)
1,700,000 The Student Loan Funding Corporation, Cincinnati, Ohio, Student Loan Senior 8/03 at 100 A1 1,768,136
Subordinated Revenue Bonds, Series 1993 A, 6.150%, 8/01/10 (Alternative
Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,000,000 Sylvania City School District, General Obligation (Unlimited Tax), Series 1995, 12/05 at 101 Aaa $1,059,160
5.800%, 12/01/15
1,135,000 City of Toledo, Ohio, General Obligation (Limited Tax), Various Purpose Improvement No Opt. Call Aaa 1,306,634
Bonds, Series 1994, 7.000%, 12/01/03
750,000 County of Tuscarawas, Ohio, Hospital Facilities Revenue Bonds, Series 1993A 10/03 at 102 Baa3 782,354
(Union Hospital Project), 6.500%, 10/01/21
1,400,000 The University of Akron (A State University of Ohio), General Receipts Bonds, Series 1/07 at 102 Aaa 1,398,025
1997, 5.250%, 1/01/22
3,500,000 University of Cincinnati, General Receipts Bonds, Series O, 6.300%, 6/01/12 12/02 at 102 AA- 3,904,670
1,400,000 University of Cincinnati, General Receipts Revenue Bonds, Series 1997-AB, 6/07 at 100 Aaa 1,407,853
5.375%, 6/01/20
1,000,000 The University of Toledo (A State University of Ohio), General Receipts Bonds, Series 12/02 at 102 Aaa 1,048,360
1992B, 5.900%, 6/01/20
1,000,000 Upper Arlington City School District, General Obligation Bonds, Series 1996, 12/06 at 101 Aaa 998,530
5.250%, 12/01/22
2,000,000 Board of Education, Wayne Local School District, County of Warren, Ohio, School 12/06 at 102 Aaa 2,178,060
Improvement Bonds, Series 1996 (Unlimited Tax General Obligation),
6.100%, 12/01/24
3,000,000 Board of Education, West Clermont Local School District, County of Clermont, 12/05 at 100 Aaa 3,208,500
Ohio, School Improvement Bonds, 1995 (Unlimited Tax General Obligation),
6.000%, 12/01/18
1,000,000 City of Westlake, Ohio, General Obligation, Various Purpose Improvement and 12/08 at 101 Aa1 1,035,230
Refunding Bonds (Series 1997), 5.550%, 12/01/17
1,820,000 Worthington City School District Franklin County, Ohio, General Obligation Refunding 6/02 at 102 Aaa 2,006,840
Bonds (Unlimited Tax), 6.375%, 12/01/12
2,500,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1992 (General 7/02 at 101 1/2 Aaa 2,810,524
Obligation Bonds), 6.600%, 7/01/13 (Pre-refunded to 7/01/02)
2,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 (General 7/06 at 101 1/2 A 2,001,540
Obligation Bonds), 5.400%, 7/01/25
1,300,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds, Series 1997 7/07 at 101 1/2 A 1,369,952
(General Obligation Bonds), 5.750%, 7/01/17
1,000,000 Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities 1/02 at 103 AA 1,106,350
Financing Authority, Adjustable Rate Industrial Revenue Bonds, 1983 Series A
(Motorola, Inc. Project), 6.750%, 1/01/14
- -----------------------------------------------------------------------------------------------------------------------------------
$211,830,000 Total Investments - (cost $212,428,121) - 98.4% 227,456,999
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 3,774,602
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $231,231,601
===================================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(DD) Security purchased on a delayed delivery basis (see note 1 of the
Notes to Financial Statements).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Texas Quality Income
Municipal Fund, Inc. (NTX)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,000,000 Board of Regents of Texas Southern University, Consolidated Revenue Refunding 8/03 at 101 Aaa $2,081,260
Bonds, Series 1993-A, 5.750%, 8/01/18
4,900,000 Board of Regents of Texas Tech University, Revenue Financing System Refunding 2/06 at 100 Aaa 4,931,556
and Improvement Bonds, Third Series (1996), 5.375%, 2/15/17
3,070,000 State of Texas, Veterans' Bonds, Series 1985, General Obligation Bonds, 12/99 at 100 AAA 3,362,602
8.300%, 12/01/16 (Pre-refunded to 12/01/99)
4,595,000 State of Texas, Veterans' Housing Assistance Bonds, Series 1993, General Obligation 12/03 at 102 Aa 4,876,076
Bonds, 6.800%, 12/01/23 (Alternative Minimum Tax)
2,000,000 State of Texas, Veteran's Land Bonds, Series 1994, General Obligation Bonds, 12/04 at 100 Aa 2,154,700
6.400%, 12/01/24 (Alternative Minimum Tax)
4,900,000 Texas Department of Housing and Community Affairs, Single Family Mortgage Revenue 9/06 at 102 Aaa 5,109,328
Bonds, 1996 Series E, 6.000%, 9/01/17
1,500,000 Texas Health Facilities Development Corporation, Hospital Revenue Bonds (All Saints 8/03 at 102 Aaa 1,614,855
Episcopal Hospitals of Fort Worth Project), Series 1993B, 6.250%, 8/15/22
625,000 Texas Municipal Power Agency, Refunding Revenue Bonds, Series 1992, 5.750%, 9/01/12 9/02 at 100 Aaa 669,050
(Pre-refunded to 9/01/02)
2,015,000 Texas Turnpike Authority, Dallas North Tollway Revenue Bonds, Series 1989, 1/98 at 100 A 2,024,934
6.000%, 1/01/20
3,500,000 Abilene Health Facilities Development Corporation, Hospital Revenue Refunding and 9/05 at 102 Aaa 3,755,325
Improvement Bonds (Hendrick Medical Center Project), Series 1995C,
6.150%, 9/01/25
330,000 Abilene Housing Development Corporation, First Lien Revenue Bonds, Series 1978, No Opt. Call N/R 334,521
7.000%, 7/01/08
Alamo Community College District, General Obligation Bonds, Series 1992:
1,000,000 5.000%, 2/15/10 2/00 at 100 AA 1,000,690
1,000,000 5.000%, 2/15/11 2/00 at 100 AA 999,000
5,295,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, Series 1990 12/00 at 102 Baa2 5,762,760
(American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax)
4,500,000 Amarillo Health Facilities Corporation Hospital Revenue Bonds (High Plains Baptist 1/02 at 102 Aaa 4,938,210
Hospital Project), Series 1992C, 6.500%, 1/01/07
3,500,000 City of Austin, Texas, Combined Utility Systems Revenue Refunding Bonds, Series 1991, 5/01 at 102 A 3,874,990
6.750%, 5/15/12 (Pre-refunded to 5/15/01)
1,725,000 Baytown Housing Finance Corporation, Single Family Mortgage Revenue Refunding 9/02 at 103 A1 1,967,069
Bonds, Series 1992-A, 8.500%, 9/01/11
1,000,000 The City of Beaumont, Texas, Public Improvement Bonds, Series 1992, 6.250%, 3/01/10 3/02 at 100 Aaa 1,084,840
(Pre-refunded to 3/01/02)
1,225,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas 2/00 at 102 Baa1 1,340,371
Utilities Electric Company Project), Series 1990A, 8.125%, 2/01/20 (Alternative
Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,110,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas 10/97 at 102 Baa1 $2,172,540
Utilities Electric Company Project), Series 1987A, 9.875%, 10/01/17 (Alternative
Minimum Tax)
2,000,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas 3/01 at 102 Baa1 2,219,760
Utilities Electric Company Project), Series 1994A, 7.875%, 3/01/21 (Alternative
Minimum Tax)
1,500,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Refunding 12/02 at 102 Aaa 1,634,490
Bonds (Texas Utilities Electric Company Project), Series 1992, 6.500%, 12/01/27
(Alternative Minimum Tax)
5,500,000 Brazos River Authority (Texas), Collateralized Revenue Refunding Bonds (Houston 10/98 at 102 A- 5,798,925
Lighting and Power Company Project), Series 1988D, 7.750%, 10/01/15
1,200,000 Brazos River Authority (Texas), Collateralized Revenue Refunding Bonds (Houston 12/03 at 102 Aaa 1,236,120
Lighting and Power Company Project), Series 1993, 5.600%, 12/01/17
2,300,000 Brazos Higher Education Authority, Inc., Student Loan Revenue Refunding Bonds, 3/02 at 102 A 2,501,871
Series 1992-A, 6.875%, 9/01/04
1,055,000 Brazos Higher Education Authority, Inc., Student Loan Revenue Refunding Bonds, No Opt. Call Aa 1,156,649
Series 1992C-1, 6.650%, 11/01/04 (Alternative Minimum Tax)
250,000 Brazos Higher Education Authority, Inc., Student Loan Revenue Refunding Bonds, No Opt. Call A 271,648
Subordinate Series 1993A-2, 6.800%, 12/01/04 (Alternative Minimum Tax)
2,000,000 City of Brownsville, Texas, General Obligation Refunding Bonds, Series 1991, 2/01 at 100 Aaa 2,174,620
6.750%, 2/15/12 (Pre-refunded to 2/15/01)
3,500,000 City of Brownsville, Texas Utilities System Priority Revenue Bonds, Series 1990, 9/00 at 102 Aaa 3,808,455
6.500%, 9/01/17 (Pre-refunded to 9/01/00)
4,035,000 City of Bryan, Texas (Brazos County), Lease Revenue Bonds (Blinn College Project), 10/05 at 100 Aaa 4,015,471
Series 1995, 5.300%, 10/01/16
2,500,000 Burleson Independent School District (Johnson and Tarrant Counties, Texas), 8/06 at 100 Aaa 2,531,125
Unlimited Tax Refunding Bonds, Series 1995, 5.375%, 8/01/19
1,000,000 Caddo Mills Independent School District (Hunt County, Texas), Unlimited Tax School 2/05 at 100 AAA 1,080,900
Building and Refunding Bonds, Series 1995, 6.375%, 8/15/25
4,130,000 Coppell Independent School District (Dallas County, Texas), Unlimited Tax School 8/09 at 75 10/32 Aaa 1,611,650
Building and Refunding Bonds, Series 1992, 0.000%, 8/15/14
City of Corpus Christi, Texas, General Improvement and Refunding Bonds, Series 1992:
1,975,000 6.700%, 3/01/08 (Pre-refunded to 3/01/02) 3/02 at 100 Aaa 2,179,255
1,475,000 6.700%, 3/01/08 3/02 at 100 Aaa 1,622,058
5,020,000 Dallas-Fort Worth International Airport, Facility Improvement Corporation, United 5/02 at102 Aaa 5,474,461
Parcel Service, Inc. Revenue Bonds, Series 1992, 6.600%, 5/01/32 (Alternative
Minimum Tax)
1,500,000 City of Dallas, Texas (Dallas, Denton and Collin Counties), Combination Tax and Surplus 1/02 at 100 Aaa 1,569,180
Revenue, Certificates of Obligation, Series 1992, 6.250%, 1/01/20
1,000,000 City of Dallas, Texas (Dallas County), Civic Center Convention Complex, Senior Lien No Opt. Call A 1,018,970
Revenue Bonds, 1985 Series, 8.000%, 1/01/09
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,130,000 City of Dallas, Texas (Dallas, Denton and Collin Counties), Waterworks and Sewer 4/02 at 101 1/2 Aa $1,960,537
System Revenue Refunding and Improvement Bonds, Series 1995, 4.500%, 4/01/14
1,545,000 El Paso Housing Finance Corporation, Single Family Mortgage Revenue Refunding 4/01 at 103 A 1,758,318
Bonds, Series 1991A, 8.750%, 10/01/11
2,800,000 City of Ennis, Texas (Ennis County), General Obligation Refunding and Improvement 8/02 at 100 Aaa 3,061,352
Bonds, Series 1992, 6.500%, 8/01/13
1,185,000 Fort Bend County Levee Improvement District No. 11 (APolitical Subdivision of the 9/04 at 100 Aaa 1,338,185
State of Texas, located within Fort Bend County), Unlimited Tax Levee Improvement
Bonds, Series 1994, 6.900%, 9/01/17
1,450,000 Industrial Development Corporation of The City of Galveston, Sales Tax Revenue Bonds, 9/05 at 100 Aaa 1,513,684
Series 1995, 5.750%, 9/01/15
1,075,000 City of Galveston Property Finance Authority, Inc., Single Family Mortgage Revenue 9/01 at 103 A 1,173,255
Bonds, Series 1991A, 8.500%, 9/01/11
1,000,000 City of Georgetown Higher Education, Finance Corporation, Higher Education Revenue 2/04 at 100 A1 1,056,320
Bonds, Series 1994 (Southwestern University Project), 6.300%, 2/15/14
3,000,000 Guadalupe-Blanco River Authority, Sewage and Solid Waste Disposal Facility Bonds
(E.I. du Pont de Nemours and Company Project), Series 1996, 6.400%, 4/01/26 4/06 at 102 AA- 3,246,900
(Alternative Minimum Tax)
320,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds, Series 1992B, 8/97 at 102 Aaa 327,302
6.625%, 8/15/17
2,000,000 Harris County, Texas, Toll Road Unlimited Tax and Subordinate Lien, Revenue Refunding 8/02 at 102 AA 2,207,600
Bonds, Series 1992A, 6.500%, 8/15/15
3,500,000 Harris County, Texas, Toll Road Senior Lien, Revenue Refunding Bonds, Series 1994, 8/04 at 102 Aaa 3,488,450
5.375%, 8/15/20
Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds, Series 1992A:
1,780,000 6.500%, 8/15/17 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa 1,993,458
320,000 6.500%, 8/15/17 8/02 at 102 Aaa 355,206
4,000,000 Harris County Health Facilities Development Corporation, Hospital Revenue Bonds (Texas 10/99 at 102 Aaa 4,322,000
Children's Hospital Project), Series 1989A, 7.000%, 10/01/19 (Pre-refunded
to 10/01/99)
6,110,000 Harris County Health Facilities Development Corporation (Texas), Hospital Revenue Bonds 6/02 at 102 A2 7,072,386
(Memorial Hospital System Project), Series 1992, 7.125% 6/01/15 (Pre-refunded
to 6/01/02)
2,925,000 The Harrison County Finance Corporation, Single Family Mortgage Revenue Refunding 12/01 at 103 A 3,117,582
Bonds, Series 1991, 8.875%, 12/01/11
1,000,000 City of Houston, Texas, Airport System Senior Lien, Revenue Bonds, 8.000%, 7/01/08 7/98 at 102 1/2 A 1,055,210
(Alternative Minimum Tax)
5,000,000 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, Series 1991A, 7/01 at 102 Aaa 5,440,250
6.750%, 7/01/21 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,300,000 City of Houston, Texas Airport System Special Facilities Revenue Bonds (Automated 7/07 at 100 Aaa $3,340,260
People Mover Project), Series 1997A, 5.500%, 7/15/17 (Alternative Minimum Tax)
1,700,000 Houston Housing Finance Corporation, Single Family Mortgage Revenue Refunding 6/03 at 102 Aaa 1,762,237
Bonds, Series 1993A, 5.950%, 12/01/10
1,000,000 City of Houston, Texas, Water and Sewer System, Prior Lien Revenue Refunding Bonds, 12/02 at 102 A 1,081,410
Series 1992B, 6.375%, 12/01/14
City of Houston, Texas, Water and Sewer System, Junior Lien
Revenue Refunding Bonds, Series 1991C:
250,000 6.375%, 12/01/17 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 276,495
3,750,000 6.375%, 12/01/17 12/01 at 102 Aaa 4,108,950
800,000 City of Laredo, Texas (Webb County), Combination Tax and Waterworks System, 8/04 at 100 Aaa 835,616
Revenue Certificates of Obligation, Series 1994, 5.625%, 8/15/11
1,125,000 City of Laredo, Texas (Webb County), International Toll Bridge System, Revenue Bonds, 10/06 at 100 Aaa 1,199,126
Series 1996, 5.700%, 10/01/10
1,850,000 Lubbock Health Facilities Development Corporation, Hospital Revenue Bonds 12/03 at 102 Aaa 1,859,047
(Methodist Hospital, Lubbock, Texas Project), 5.500%, 12/01/14
1,500,000 Matagorda County Navigation District Number One (Texas), Pollution Control Revenue 7/03 at 102 A- 1,547,535
Refunding Bonds (Central Power and Light Company Project), Series 1993,
6.000%, 7/01/28
1,800,000 Matagorda County, Navigation District Number One (Texas), Collateralized Pollution 2/98 at 102 A 1,866,348
Control Revenue Bonds (Houston Lighting and Power Company Project), Series
1989A, 7.875%, 2/01/19 (Alternative Minimum Tax)
5,750,000 Midland County Hospital District, Hospital Revenue Bonds, Series 1992, No Opt. Call BBB 2,542,880
0.000%, 6/01/11
1,000,000 North Central Texas Health Facilities Development Corporation, Hospital Revenue 6/06 at 102 Aaa 1,039,160
Bonds (Presbyterian Healthcare System Project), Series 1996-A, 5.750%, 6/01/26
1,000,000 North Central Texas Health Facilities Development Corporation Hospital Revenue Bonds, 6/06 at 102 Aaa 1,013,770
1996 Series B (Presbyterian Healthcare System Proj), 5.500%, 6/01/21
2,500,000 North Texas Higher Educational Authority, Inc., Student Loan Revenue Bonds, Series 4/03 at 102 Aa 2,589,425
1993C, 6.100%, 4/01/08 (Alternative Minimum Tax)
1,000,000 North Texas Municipal Water District, Regional Solid Waste Disposal System, 9/03 at 100 Aaa 1,015,550
Refunding and Improvement Revenue Bonds, Series 1993, 5.250%, 9/01/12
1,025,000 Port Arthur Housing Finance Corporation, Single Family Mortgage Revenue Refunding 9/02 at 103 A 1,153,556
Bonds, Series 1992, 8.700%, 3/01/12
4,500,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution Control Revenue 4/02 at 102 A+ 4,888,935
Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative
Minimum Tax)
2,500,000 Retama Development Corporation, Special Facilities Revenue Bonds (Retama Park No Opt. Call Aaa 3,625,025
Racetrack Project), Series 1993, 8.750%, 12/15/17
2,000,000 City of San Antonio, Texas, Electric and Gas System Revenue Refunding Bonds, New 2/02 at 101 Aa1 1,946,560
Series 1992, 5.000%, 2/01/17
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,580,000 City of San Antonio, Texas, Hotel Occupancy Tax Revenue Bonds (Henry B Gonzalez 8/06 at 102 Aaa $4,778,222
Convention Center Project), 5.700%, 8/15/26
4,500,000 City of San Antonio, Texas, Water System Revenue Refunding Bonds, Series 1992, 5/02 at 102 Aaa 4,989,150
6.500%, 5/15/10
1,825,000 Socorro Independent School District (El Paso County, Texas), Unlimited Tax School 2/06 at 100 Aaa 1,883,309
Building Bonds, Series 1996, 5.750%, 2/15/21
2,500,000 Tarrant County Water Control and Improvement District Number One (Tarrant County, 3/01 at 100 Aaa 2,638,200
Texas), Water Revenue Refunding and Improvement Bonds, Series 1992,
5.750%, 3/01/13 (Pre-refunded to 3/01/01)
2,500,000 City of Terrell Hills, Texas, Higher Education Facilities Corporation, Higher 3/03 at 101 1/2 AAA 2,586,500
Education Revenue and Refunding Bonds (Incarnate Word College Project),
Series 1993, 5.750%, 3/15/13
5,400,000 Travis County Health Facilities Development Corporation, Hospital Revenue Bonds 11/03 at 102 Aa 5,719,734
(Daughters of Charity National Health System - Daughters of Charity Health
Services of Austin), Series 1993B, 6.000%, 11/15/22
3,200,000 Travis County Housing Finance Corporation (Texas), Residential Mortgage Bonds 12/01 at 103 AAA 3,431,040
(GNMA and FNMA Mortgage-Backed Securities Program), Senior Bonds,
Series 1991A, 7.050%, 12/01/25
1,445,000 Tyler Junior College District (Smith and Van Zanlt Counties, Texas), Combined Fee 8/04 at 100 Aaa 1,527,119
Improvement Revenue and Refunding Bonds, Series 1994, 5.900%, 8/15/13
2,000,000 Board of Regents of The University of Houston System, Consolidated Revenue Bonds, 2/05 at 100 Aaa 2,125,580
Series 1995, 6.000%, 2/15/17
1,680,000 Victoria Housing Finance Corporation, Single Family Mortgage Revenue Refunding No Opt. Call Aaa 1,842,102
Bonds, Series 1995, 8.125%, 1/01/11
1,225,000 Weslaco Independent School District (Hidalgo County, Texas), Unlimited Tax School 2/06 at 100 Aaa 1,279,476
Building and Refunding Bonds, Series 1996, 5.700%, 2/15/15
- -----------------------------------------------------------------------------------------------------------------------------------
$203,075,000 Total Investments - (cost $195,104,064) - 96.8% 210,940,597
============-----------------------------------------------------------------------------------------------------------------------
Temporary Investments in Short-Term Municipal Securities - 0.9%
$ 2,000,000 Harris County Health Facilities Development Corporation, Hospital Revenue Bonds A-1+ 2,000,000
============ (The Methodist Hospital), Series 1994, Variable Rate Demand Bonds,
3.700%, 12/01/25+
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 5,058,234
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $217,998,831
===================================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
July 31, 1997
<CAPTION>
Arizona Premium Michigan Quality
<S> <C> <C>
Assets
Investments in municipal securities, at market value (note 1) $ 93,689,334 $255,515,956
Temporary investments in short-term municipal securities, at amortized
cost, which approximates market value (note 1) 1,200,000 1,800,000
Cash 524,779 204,243
Receivables:
Interest 712,812 3,908,508
Investments sold 10,000 --
Other assets 13,911 18,111
------------ ------------
Total assets 96,150,836 261,446,818
------------ ------------
Liabilities
Payable for investments purchased -- --
Accrued expenses:
Management fees (note 6) 52,256 140,852
Other 57,877 105,394
Preferred share dividends payable 13,812 55,552
Common share dividends payable 295,576 898,154
------------ ------------
Total liabilities 419,521 1,199,952
------------ ------------
Net assets (note 7) $ 95,731,315 $260,246,866
============ ============
Preferred shares, at liquidation value $ 30,000,000 $ 80,000,000
============ ============
Preferred shares outstanding 1,200 3,200
============ ============
Common shares outstanding 4,283,715 11,297,535
============ ============
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 15.34 $ 15.95
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
July 31, 1997
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
<S> <C> <C> <C>
Assets
Investments in municipal securities,
at market value (note 1) $168,117,831 $227,456,999 $210,940,597
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) 2,300,000 -- 2,000,000
Cash 443,395 126,724 473,453
Receivables:
Interest 2,137,711 2,773,859 3,812,669
Investments sold -- 9,409,741 1,729,038
Other assets 7,466 22,694 18,258
------------ ------------ ------------
Total assets 173,006,403 239,790,017 218,974,015
------------ ------------ ------------
Liabilities
Payable for investments purchased -- 7,535,458 --
Accrued expenses:
Management fees (note 6) 93,581 125,306 118,336
Other 100,314 114,108 83,957
Preferred share dividends payable 23,297 38,935 40,281
Common share dividends payable 514,405 744,609 732,610
------------ ------------ ------------
Total liabilities 731,597 8,558,416 975,184
------------ ------------ ------------
Net assets (note 7) $172,274,806 $231,231,601 $217,998,831
============ ============ ============
Preferred shares, at liquidation value $ 56,000,000 $ 77,000,000 $ 69,000,000
============ ============ ============
Preferred shares outstanding 2,240 3,080 2,760
============ ============ ============
Common shares outstanding 7,677,686 9,307,612 9,392,432
============ ============ ============
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 15.14 $ 16.57 $ 15.86
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year ended July 31, 1997
<CAPTION>
Arizona Premium Michigan Quality
<S> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $ 5,333,892 $15,369,282
----------- -----------
Expenses
Management fees (note 6) 604,258 1,631,803
Preferred shares - auction fees 75,033 200,091
Preferred shares - dividend disbursing agent fees 13,205 13,205
Shareholders' servicing agent fees and expenses 7,887 37,980
Custodian's fees and expenses 36,664 52,670
Directors'/Trustees' fees and expenses (note 6) 981 2,125
Professional fees 17,979 20,346
Shareholders' reports - printing and mailing expenses 22,795 71,508
Stock exchange listing fees 16,165 24,449
Investor relations expense 6,870 20,586
Other expenses 10,789 20,873
----------- -----------
Total expenses 812,626 2,095,636
----------- -----------
Net investment income 4,521,266 13,273,646
----------- -----------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions notes 1 and 4) 107,716 191,099
Net change in unrealized appreciation or depreciation of investments 3,426,284 7,824,042
----------- -----------
Net gain from investments 3,534,000 8,015,141
----------- -----------
Net increase in net assets from operations $ 8,055,266 $21,288,787
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year ended July 31, 1997
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
<S> <C> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $ 9,481,528 $ 13,333,802 $ 12,974,559
------------ ------------ ------------
Expenses
Management fees (note 6) 1,078,394 1,448,301 1,370,797
Preferred shares - auction fees 140,063 192,587 172,579
Preferred shares - dividend disbursing agent fees 21,966 40,834 27,229
Shareholders' servicing agent fees and expenses 25,579 39,163 17,666
Custodian's fees and expenses 43,299 51,076 49,036
Directors'/Trustees' fees and expenses (note 6) 1,447 1,884 1,750
Professional fees 16,462 17,901 18,380
Shareholders' reports - printing and mailing expenses 55,033 61,261 48,131
Stock exchange listing fees 12,547 13,455 14,859
Investor relations expense 14,024 19,015 14,848
Other expenses 22,716 31,135 23,979
------------ ------------ ------------
Total expenses 1,431,530 1,916,612 1,759,254
------------ ------------ ------------
Net investment income 8,049,998 11,417,190 11,215,305
------------ ------------ ------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions
(notes 1 and 4) 58,728 658,154 (4,927)
Net change in unrealized appreciation or depreciation
of investments 7,429,576 7,424,361 7,599,310
------------ ------------ ------------
Net gain from investments 7,488,304 8,082,515 7,594,383
------------ ------------ ------------
Net increase in net assets from operations $ 15,538,302 $ 19,499,705 $ 18,809,688
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
Arizona Premium Michigan Quality
Year ended Year ended Year ended Year ended
7/31/97 7/31/96 7/31/97 7/31/96
<S> <C> <C> <C> <C>
Operations
Net investment income $ 4,521,266 $ 4,505,540 $ 13,273,646 $ 13,315,397
Net realized gain (loss) from investment transactions
(notes 1 and 4) 107,716 54,640 191,099 208,789
Net change in unrealized appreciation or
depreciation of investments 3,426,284 1,535,012 7,824,042 2,733,144
----------- ----------- ------------ ------------
Net increase in net assets from operations 8,055,266 6,095,192 21,288,787 16,257,330
----------- ----------- ------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (3,505,995) (3,403,044) (10,753,701) (10,639,239)
Preferred shareholders (959,751) (1,031,544) (2,664,110) (2,634,651)
From accumulated net realized gains from investment transactions:
Common shareholders -- -- (270,793) (756,492)
Preferred shareholders -- -- (65,600) (208,288)
In excess of net realized gains:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
----------- ----------- ------------ ------------
Decrease in net assets from distributions to shareholders (4,465,746) (4,434,588) (13,754,204) (14,238,670)
----------- ----------- ------------ ------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions 47,204 -- 1,679,295 1,107,040
----------- ----------- ------------ ------------
Net increase in net assets from capital share transactions 47,204 -- 1,679,295 1,107,040
----------- ----------- ------------ ------------
Net increase in net assets 3,636,724 1,660,604 9,213,878 3,125,700
Net assets at beginning of year 92,094,591 90,433,987 251,032,988 247,907,288
----------- ----------- ------------ ------------
Net assets at end of year $95,731,315 $92,094,591 $260,246,866 $251,032,988
=========== =========== ============ ============
Balance of undistributed net investment income at end of year $ 256,715 $ 201,195 $ 448,638 $ 592,803
=========== =========== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
Year ended Year ended Year ended Year ended Year ended Year ended
7/31/97 7/31/96 7/31/97 7/31/96 7/31/97 7/31/96
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income $ 8,049,998 $ 8,038,253 $ 11,417,190 $ 11,313,562 $ 11,215,305 $ 11,325,508
Net realized gain (loss) from investment
transactions (notes 1 and 4) 58,728 (8,455) 658,154 (201,089) (4,927) (107,896)
Net change in unrealized appreciation or
depreciation of investments 7,429,576 3,077,375 7,424,361 3,376,371 7,599,310 1,979,168
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets from operations 15,538,302 11,107,173 19,499,705 14,488,844 18,809,688 13,196,780
------------ ------------ ------------ ------------ ------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (6,126,793) (5,919,781) (8,909,679) (8,787,207) (8,791,315) (8,899,833)
Preferred shareholders (1,824,440) (1,913,660) (2,471,778) (2,468,189) (2,442,360) (2,485,682)
From accumulated net realized gains
from investment transactions:
Common shareholders -- -- -- -- -- (270,977)
Preferred shareholders -- -- -- -- -- (85,046)
In excess of net realized gains:
Common shareholders -- -- -- -- -- (72,545)
Preferred shareholders -- -- -- -- -- (22,768)
------------ ------------ ------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders (7,951,233) (7,833,441) (11,381,457) (11,255,396) (11,233,675) (11,836,851)
------------ ------------ ------------ ------------ ------------ ------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- -- 962,543 582,118 -- 138,670
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets from capital
share transactions -- -- 962,543 582,118 -- 138,670
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets 7,587,069 3,273,732 9,080,791 3,815,566 7,576,013 1,498,599
Net assets at beginning of year 164,687,737 161,414,005 222,150,810 218,335,244 210,422,818 208,924,219
------------ ------------ ------------ ------------ ------------ ------------
Net assets at end of year $172,274,806 $164,687,737 $231,231,601 $222,150,810 $217,998,831 $210,422,818
============ ============ ============ ============ ============ ============
Balance of undistributed net investment
income at end of year $ 503,611 $ 404,846 $ 713,095 $ 677,362 $ 273,355 $ 291,725
============ ============ ============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
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 Arizona Premium Income
Municipal Fund, Inc. (NAZ), Nuveen Michigan Quality Income Municipal Fund, Inc.
(NUM), Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP), Nuveen Ohio
Quality Income Municipal Fund, Inc. (NUO) and Nuveen Texas Quality Income
Municipal Fund (NTX).
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 the 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 their when-issued and delayed delivery purchase commitments. At
July 31, 1997, NUO had an outstanding purchase commitment of $6,530,875. There
were no such purchase commitments in any of the other Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and 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 Fund
intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal income tax, to retain such
tax-exempt status when distributed to shareholders of the Funds. All income
dividends paid during the fiscal year ended July 31, 1997, have been designated
Exempt Interest Dividends. Net realized capital gain and market discount
distributions are subject to federal taxation.
<PAGE>
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly 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 are distributed to shareholders not less frequently
than annually. Furthermore, capital gains are distributed only to the extent
they exceed available capital loss carryovers.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, if any, are recorded on the ex-dividend
date. The amount and timing of distributions are determined in accordance with
federal income tax regulations, which may differ from generally accepted
accounting principles. Accordingly, temporary over-distributions as a result of
these differences may occur and will be classified as either distributions in
excess of net investment income, distributions in excess of net realized gains
and/or distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set by the Auction Agent. The
number of shares outstanding, by Series and in total, for each Fund is as
follows:
<TABLE>
<CAPTION>
Arizona Premium Michigan Quality
<S> <C> <C>
Number of shares:
Series M -- --
Series Th 1,200 3,200
Series Th2 -- --
----- -----
Total 1,200 3,200
===== =====
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
<S> <C> <C> <C>
Dividend per share:
Series M 840 680 760
Series Th 1,400 1,400 2,000
Series Th2 -- 1,000 --
----- ----- -----
Total 2,240 3,080 2,760
===== ===== =====
</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 fiscal year ended July 31, 1997.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period.
<PAGE>
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
Arizona Premium Michigan Quality
Year ended Year ended Year ended Year ended
7/31/97 7/31/96 7/31/97 7/31/96
<S> <C> <C> <C> <C>
Shares issued to shareholders due
to reinvestment of distributions 3,160 -- 105,844 70,927
----- ----- ------- ------
Net increase 3,160 -- 105,844 70,927
===== ===== ======= ======
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
Year ended Year ended Year ended Year ended Year ended Year ended
7/31/97 7/31/96 7/31/97 7/31/96 7/31/97 7/31/96
<S> <C> <C> <C> <C> <C> <C>
Shares issued to shareholders due
to reinvestment of distributions -- -- 58,958 31,404 -- 6,593
------ ------ ------ ------ ------ -----
Net increase -- -- 58,958 31,404 -- 6,593
====== ====== ====== ====== ====== =====
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On August 1, 1997, the Funds declared Common share dividend distributions from
their tax-exempt net investment income which were paid September 1, 1997, to
shareholders of record on August 15, 1997, as follows:
<TABLE>
<CAPTION>
Arizona Premium Michigan Quality
<S> <C> <C>
Dividend per share $.0690 $.0795
------ ------
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
<S> <C> <C> <C>
Dividend per share $.0680 $.0810 $.0780
------ ------ ------
</TABLE>
<PAGE>
<TABLE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the fiscal year ended July
31, 1997, were as follows:
<CAPTION>
Arizona Premium Michigan Quality
<S> <C> <C>
Purchases:
Investments in municipal securities $10,025,500 $28,209,679
Temporary municipal investments 8,900,000 10,900,000
Sales and Maturities:
Investments in municipal securities 11,083,322 27,946,068
Temporary municipal investments 7,900,000 13,000,000
=========== ===========
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
<S> <C> <C> <C>
Purchases:
Investments in municipal securities $6,217,897 $56,432,023 $27,052,515
Temporary municipal investments 5,200,000 20,600,000 15,600,000
Sales and Maturities:
Investments in municipal securities 8,209,592 55,487,678 30,713,428
Temporary municipal investments 3,400,000 21,700,000 13,900,000
========== =========== ===========
</TABLE>
At July 31, 1997, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for each
Fund.
At July 31, 1997, the following Funds had unused capital loss carryovers
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryovers will expire as follows:
<TABLE>
<CAPTION>
Arizona Premium Michigan Premium
<S> <C> <C>
Expiration year:
2002 $ -- $ 288,696
2003 1,316,276 627,148
2004 -- 1,807,234
2005 -- --
---------- ----------
Total $1,316,276 $2,723,078
========== ==========
<CAPTION>
Ohio Quality Texas Quality
<S> <C> <C>
Expiration year:
2002 $1,148,495 $ --
2003 16,493 --
2004 622,243 --
2005 -- 208,136
---------- ----------
Total $1,787,231 $ 208,136
========== ==========
</TABLE>
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at July 31, 1997, were as follows:
<TABLE>
<CAPTION>
Arizona Premium Michigan Quality
<S> <C> <C>
Gross unrealized:
appreciation $7,537,933 $22,224,346
depreciation -- --
---------- -----------
Net unrealized appreciation $7,537,933 $22,224,346
========== ===========
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
<S> <C> <C> <C>
Gross unrealized:
appreciation $11,182,906 $15,028,878 $15,836,533
depreciation -- -- --
----------- ----------- -----------
Net unrealized appreciation $11,182,906 $15,028,878 $15,836,533
=========== =========== ===========
</TABLE>
<PAGE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net asset value of each Fund as follows:
<TABLE>
<CAPTION>
Average daily net asset value Management fee
<S> <C>
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
</TABLE>
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors/Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
<PAGE>
7. COMPOSITION OF NET ASSETS
At July 31, 1997, net assets consisted of:
<TABLE>
<CAPTION>
Arizona Premium Michigan Quality
<S> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 30,000,000 $ 80,000,000
Common shares, $.01 par value per share 42,837 112,975
Paid-in surplus 59,210,106 157,398,248
Balance of undistributed net investment income 256,715 448,638
Accumulated net realized gain (loss) from
investment transactions (1,316,276) 62,659
Net unrealized appreciation of investments 7,537,933 22,224,346
------------- -------------
Net assets $ 95,731,315 $ 260,246,866
============= =============
Authorized shares:
Common 200,000,000 200,000,000
Preferred 1,000,000 1,000,000
============= =============
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 56,000,000 $ 77,000,000 $ 69,000,000
Common shares, $.01 par value per share 76,777 93,076 93,924
Paid-in surplus 107,234,590 140,199,731 133,003,155
Balance of undistributed net investment income 503,611 713,095 273,355
Accumulated net realized gain (loss) from
investment transactions (2,723,078) (1,803,179) (208,136)
Net unrealized appreciation of investments 11,182,906 15,028,878 15,836,533
------------- ------------- -------------
Net assets $ 172,274,806 $ 231,231,601 $ 217,998,831
============= ============= =============
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
============= ============= =============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At July 31, 1997, the revenue sources by municipal
purpose for these investments, expressed as a percent of total investments,
were as follows:
<CAPTION>
Arizona Premium Michigan Quality
<S> <C> <C>
Revenue Bonds:
Health Care Facilities 11% 17%
Educational Facilities 4 3
Housing Facilities 8 9
Transportation 6 1
Pollution Control Facilities 6 10
Water / Sewer Facilities 11 2
Utilities 8 3
Lease Rental Facilities 3 4
Other 6 4
General Obligation Bonds 20 28
Escrowed Bonds 17 19
--- ---
100% 100%
=== ===
<CAPTION>
Michigan Premium Ohio Quality Texas Quality
<S> <C> <C> <C>
Revenue Bonds:
Health Care Facilities 21% 14% 13%
Educational Facilities 6 15 10
Housing Facilities 13 11 10
Transportation 2 4 13
Pollution Control Facilities 12 5 8
Water / Sewer Facilities 6 10 6
Utilities 9 4 1
Lease Rental Facilities 2 4 2
Other 10 2 6
General Obligation Bonds 16 18 13
Escrowed Bonds 3 13 18
--- --- ---
100% 100% 100%
=== === ===
</TABLE>
Certain long-term and intermediate-term investments owned by the Funds are
either covered by insurance issued by several private insurers or are backed by
an escrow or trust containing U.S. Government or U.S. Government agency
securities, both of which ensure the timely payment of principal and interest in
the event of default (57% for Arizona Premium, 63% for Michigan Quality, 55% for
Michigan Premium, 59% for Ohio Quality and 56% for Texas Quality). Such
insurance or escrow, however, does not guarantee the market value of the
municipal securities or the value of any of the Funds' shares.
Certain temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by third
party domestic or foreign banks or other institutions (100% for Arizona Premium,
100% for Michigan Quality, 100% for Michigan Premium, N/A for Ohio Quality and
100% for Texas Quality).
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
Financial Highlights
Financial Highlights
Selected data for a common share outstanding
throughout each period is as follows:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net asset Net realized
value Net and unrealized
beginning investment gain (loss) To Common To Preferred
of period income from investments Shareholders Shareholders
<S> <C> <C> <C> <C> <C>
Arizona Premium
Year ended 7/31:
1997 $ 14.51 $ 1.06 $ .81 $ (.82) $ (.22)
1996 14.12 1.05 .38 (.80) (.24)
1995 13.61 1.07 .49 (.78) (.27)
1994 14.49 1.07 (.84) (.79) (.26)
11/19/92 to
7/31/93 14.05 .52 .69 (.42) (.11)
<CAPTION>
Michigan Quality
<S> <C> <C> <C> <C> <C>
Year ended 7/31:
1997 15.28 1.18 .72 (.95) (.24)
1996 15.10 1.19 .27 (.95) (.24)
1995 15.02 1.21 .19 (1.00) (.26)
1994 15.85 1.21 (.82) (1.05) (.17)
1993 15.23 1.21 .57 (.97) (.17)
Two months ended
7/31/92 14.29 .20 .92 (.15) (.03)
10/17/91 to
5/31/92 14.05 .47 .41 (.38) (.07)
<CAPTION>
Michigan Premium
<S> <C> <C> <C> <C> <C>
Year ended 7/31:
1997 14.16 1.05 .97 (.80) (.24)
1996 13.73 1.05 .41 (.78) (.25)
1995 13.46 1.04 .31 (.80) (.28)
1994 14.47 1.03 (1.01) (.81) (.17)
12/17/92 to
7/31/93 14.05 .41 .62 (.34) (.05)
<PAGE>
<CAPTION>
Distributions from
capital gains
Organization and
offering costs and Per common
Preferred share Net asset share
To Common To Preferred underwriting value market value
Shareholders Shareholders discounts end of period end of period
<S> <C> <C> <C> <C> <C>
Arizona Premium
Year ended 7/31:
1997 $-- $-- $ -- $15.34 $15.4375
1996 -- -- -- 14.51 13.8750
1995 -- -- -- 14.12 13.6250
1994 (.05) (.01) -- 13.61 13.1250
11/19/92 to
7/31/93 -- -- (.24) 14.49 15.7500
<CAPTION>
Michigan Quality
<S> <C> <C> <C> <C> <C>
Year ended 7/31:
1997 (.03) (.01) -- 15.95 16.6250
1996 (.07) (.02) -- 15.28 15.5000
1995 (.05) (.01) -- 15.10 14.8750
1994 -- -- -- 15.02 15.2500
1993 (.02) -- -- 15.85 16.0000
Two months ended
7/31/92 -- -- -- 15.23 15.5000
10/17/91 to
5/31/92 -- -- (.19) 14.29 15.1250
<CAPTION>
Michigan Premium
<S> <C> <C> <C> <C> <C>
Year ended 7/31:
1997 -- -- -- 15.14 13.9375
1996 -- -- -- 14.16 12.8750
1995 -- -- -- 13.73 12.0000
1994 (.04) (.01) -- 13.46 12.5000
12/17/92 to
7/31/93 -- -- (.22) 14.47 15.0000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio of net
Total Ratio of investment
investment Total return Net assets expenses to income to Portfolio
return on on net end of period average average turnover
market value** asset value** (in thousands) net assetstt net assetstt rate
<S> <C> <C> <C> <C> <C> <C>
Arizona Premium
Year ended 7/31:
1997 17.81% 11.74% $ 95,731 .87% 4.86% 11%
1996 7.83 8.48 92,095 .90 4.88 15
1995 10.42 9.98 90,434 .86 5.21 11
1994 (11.66) (.43) 88,263 .84 4.97 21
11/19/92 to
7/31/93 7.92 6.19 91,363 .91* 4.22* 40
<CAPTION>
Michigan Quality
<S> <C> <C> <C> <C> <C> <C>
Year ended 7/31:
1997 14.02 11.19 260,247 .83 5.23 11
1996 11.32 8.07 251,033 .83 5.29 15
1995 4.77 8.02 247,907 .84 5.54 18
1994 1.82 1.33 246,082 .85 5.27 4
1993 9.97 11.09 253,881 .88 5.36 6
Two months ended
7/31/92 3.51 7.69 244,930 .85 5.45* --
10/17/91 to
5/31/92 3.38 4.46 234,439 .82 4.54* 1
<CAPTION>
Michigan Premium
<S> <C> <C> <C> <C> <C> <C>
Year ended 7/31:
1997 14.95 12.97 172,275 .86 4.83 4
1996 14.00 8.88 164,688 .87 4.87 17
1995 2.59 8.45 161,414 1.01 5.02 32
1994 (11.43) (1.27) 100,888 .94 4.82 17
12/17/92 to
7/31/93 2.25 5.44 105,494 .92 3.73* 15
See notes on page 52.
</TABLE>
<PAGE>
<TABLE>
Financial Highlights - continued
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net asset Net realized
value Net and unrealized
beginning investment gain (loss) To Common To Preferred
of period income from investments Shareholders Shareholders
<S> <C> <C> <C> <C> <C>
Ohio Quality
Year ended 7/31:
1997 $ 15.69 $ 1.23 $ .88 $ (.96) $ (.27)
1996 15.33 1.23 .35 (.95) (.27)
1995 14.84 1.22 .52 (.95) (.30)
1994 15.72 1.19 (.82) (1.03) (.18)
1993 15.02 1.18 .69 (.93) (.19)
Two months ended
7/31/92 14.07 .20 .94 (.15) (.04)
10/17/91 to
5/31/92 14.05 .46 .27 (.37) (.07)
<CAPTION>
Texas Quality
<S> <C> <C> <C> <C> <C>
Year ended 7/31:
1997 15.06 1.19 .81 (.94) (.26)
1996 14.91 1.21 .21 (.95) (.27)
1995 14.53 1.22 .42 (.98) (.28)
1994 15.41 1.21 (.83) (1.06) (.17)
1993 15.09 1.20 .31 (.97) (.18)
Two months ended
7/31/92 14.19 .20 .89 (.15) (.04)
10/17/91 to
5/31/92 14.05 .49 .32 (.38) (.07)
<PAGE>
<CAPTION>
Distributions from
capital gains
Organization and
offering costs and Per common
Preferred share Net asset share
To Common To Preferred underwriting value market value
Shareholders Shareholders discounts end of period end of period
<S> <C> <C> <C> <C> <C>
Ohio Quality
Year ended 7/31:
1997 $-- $-- $ -- $16.57 $17.3125
1996 -- -- -- 15.69 16.0000
1995 -- -- -- 15.33 15.1250
1994 (.03) (.01) -- 14.84 15.1250
1993 (.04) (.01) -- 15.72 15.7500
Two months ended
7/31/92 -- -- -- 15.02 15.2500
10/17/91 to
5/31/92 -- -- (.27) 14.07 15.0000
<CAPTION>
Texas Quality
<S> <C> <C> <C> <C> <C>
Year ended 7/31:
1997 -- -- -- 15.86 15.6250
1996 (.04)ttt (.01)ttt -- 15.06 14.8750
1995 -- -- -- 14.91 13.8750
1994 (.03) -- -- 14.53 14.7500
1993 (.03) (.01) -- 15.41 15.8750
Two months ended
7/31/92 -- -- -- 15.09 15.3750
10/17/91 to
5/31/92 -- -- (.22) 14.19 14.8750
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio of net
Total Ratio of investment
investment Total return Net assets expenses to income to Portfolio
return on on net end of period average average turnover
market value** asset value** (in thousands) net assetstt net assetstt rate
<S> <C> <C> <C> <C> <C> <C>
Ohio Quality
Year ended 7/31:
1997 14.70% 12.14% $231,232 .85% 5.08% 25%
1996 12.39 8.68 222,151 .87 5.09 19
1995 6.80 10.16 218,335 .94 5.24 19
1994 2.72 1.06 101,335 .94 5.09 2
1993 9.89 11.64 104,507 1.00 5.13 23
Two months ended
7/31/92 2.66 7.84 100,696 1.00 5.25* 5
10/17/91 to
5/31/92 2.43 2.79 96,465 .89* 4.40* 4
<CAPTION>
Texas Quality
<S> <C> <C> <C> <C> <C> <C>
Year ended 7/31:
1997 11.76 11.93 217,999 .83 5.27 13
1996 14.60 7.72 210,423 .83 5.36 17
1995 1.14 9.89 208,924 .91 5.54 8
1994 (.27) 1.28 153,724 .86 5.43 10
1993 10.24 9.19 159,329 .89 5.49 6
Two months ended
7/31/92 4.44 7.46 156,031 .86 5.60* 4
10/17/91 to
5/31/92 1.68 3.74 149,694 .86 5.65* --
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share.
t Total Return on Net Asset Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in net asset
value per share. The amounts shown are based on Common share equivalents.
tt Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
ttt The amounts shown include distributions in excess of capital gains of
$.008 for Common shareholders and $.002 for Preferred shareholders.
</FN>
</TABLE>
Independent Auditor's Report
THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Arizona Premium Income Municipal Fund,
Inc., Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan
Premium Income Municipal Fund, Inc., Nuveen Ohio Quality Income Municipal Fund,
Inc. and Nuveen Texas Quality Income Municipal Fund as of July 31, 1997, and the
related statements of operations, changes in net assets and the financial
highlights for the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of July
31, 1997, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Arizona Premium Income Municipal Fund, Inc., Nuveen Michigan Quality
Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund,
Inc., Nuveen Ohio Quality Income Municipal Fund, Inc. and Nuveen Texas Quality
Income Municipal Fund at July 31, 1997, and the results of their operations,
changes in their net assets and financial highlights for the periods indicated
therein in conformity with generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
September 12, 1997
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Shareholder Information
Nuveen Family of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals.
Growth and Income Funds
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
Municipal Bond Funds
National Funds
Long-Term
Insured
Intermediate
State Funds
Alabama Michigan
Arizona Missouri
California New Jersey
Colorado New Mexico
Connecticut New York
Florida North Carolina
Georgia Ohio
Kansas Pennsylvania
Kentucky South Carolina
Louisiana Tennessee
Maryland Virginia
Massachusetts Wisconsin
To purchase additional shares of your Nuveen Municipal Bond Fund, contact your
financial adviser. If you would like to add to your current investment on a
monthly or semi-annual basis, you can sign up for Nuveen's systematic investing
program, which allows you to invest a fixed dollar amount every month
automatically.
You can also invest automatically through dividend reinvestment. By reinvesting
your fund's dividends back into the fund, you gain the added growth potential of
long-term compounding.
For more information on any of these service options call your adviser, or
Nuveen at (800) 257-8787.
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Fund Information
Board of Directors/Trustees
Lawrence H. Brown
Anthony T. Dean
Anne E. Impellizzeri
Peter R. Sawers
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Custodian
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
Legal Counsel
Fried, Frank, Harris
Shriver & Jacobson
Washington, D.C.
Independent Auditors
Ernst & Young LLP
Chicago, Illinois
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Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
(continued from inside front cover)
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
toll-free at (800) 257-8787.
<PAGE>
Serving Investors for Generations
Photographic image of John Nuveen, Sr.
Since our founding in 1898, John Nuveen &Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for mature investors whose portfolios are the principal
source of their ongoing financial security. More than 1.3 million investors have
trusted Nuveen to help them maintain the lifestyle they currently enjoy.
A value investing approach - purchasing securities of strong companies and
communities that represent good long-term value - is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of equity and fixed-income mutual funds,
unit trusts, exchange-traded funds, individual managed account services, and
cash management products, including many that generate tax-free income.
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.
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
(800) 257-8787
www.nuveen.com
FAN-1-7.97
