Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
SEMIANNUAL REPORT/DECEMBER 31, 1995
Photographic image of man seating at breakfast table with wife standing behind
him.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
10 Fund performance
12 Commonly used terms
14 Shareholder meeting report
15 Portfolio of investments
38 Statement of net assets
39 Statement of operations
40 Statement of changes in net assets
42 Notes to financial statements
52 Financial highlights
<PAGE>
Dear shareholder
Photographic image of Richard Franke, Chairman of Nuveen.
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
During 1995, we enjoyed a strong rebound in the bond markets--a welcome change
from 1994, which was one of the most volatile periods in bond market history.
In fact, 1995 turned out to be one of the best years for bonds in a decade.
The juxtaposition of these two contrasting periods serves as a reminder that
weathering the ups and downs of the markets is a normal part of the investment
process. We can gain a better perspective on this process if we remember one
of the basic principles of investing: A financial plan that focuses on your
long-term goals can minimize the impact of short-term market volatility.
Because they offer steady tax-free income and diversification across market
sectors, municipal bond funds continue to be an attractive way to invest for
the long term. Throughout the past year, we have kept our sights focused on
successfully meeting your objectives: seeking to provide you with a solid
source of current income and enhanced share price relative to the market as a
whole.
As of December 31, 1995, current annual yields on share prices for the funds
covered in this report ranged from 6.03% to 6.35%. To match these yields, an
investor in the 36% federal income tax bracket would have had to earn at least
9.42% on taxable alternatives. And when state taxes are taken into account,
taxable equivalent yields become even more dramatic. Without question, taxable
yields at these levels on investments of comparable quality are difficult to
achieve in today's markets. The effect of state taxes further enhances the
after-tax yield advantage provided by municipal bonds.
<PAGE>
Reflecting the rebound in the bond market, each of these funds reported
gains in net asset value over December 31, 1994, as well as substantial
increases in share price. The 12-month total returns on net asset value,
reflecting share price gains plus reinvested dividend income, ranged from
17.87% to 29.69%, which translates to 22.38% to 34.03% on a taxable-equivalent
basis. These performance results remind us of the important role that
municipal bonds--and the tax-free income they provide--can play as part of an
investment strategy focused on diversification and long-term performance.
The value and dependability of your municipal bond investments are enhanced
by the fact that you have chosen tax-free exchange-traded funds managed by
Nuveen. We offer a combination of professional management, award-winning
research, and shareholder service that distinguishes Nuveen as a fund manager.
Our portfolio management strategy, which we call value investing, relies on
a disciplined approach to security selection and portfolio construction
designed to deliver above-market performance by emphasizing securities that
are underpriced or undervalued by the market. This approach is supported by
the strength of Nuveen Research, which provides the insights and experience to
assist portfolio managers in identifying and selecting bonds with strong
credit quality. Our research professionals continually monitor our holdings in
order to alert portfolio managers concerning changes that may affect quality.
Nuveen also prides itself on its exceptional service to shareholders.
Through annual and semiannual reports, regular statements, and our toll-free
information lines, our communication programs help us stay in touch with your
needs and concerns. We also provide support to financial advisers across the
nation by supplying them with the information they need to answer your
questions and recommend products to meet your needs.
As you review the following pages detailing the solid performance of your
funds, we trust you will come away with the feeling that these results,
coupled with Nuveen's continued pledge of premium service, add up to a
rewarding investment experience. We look forward to serving your tax-free
investment needs in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
February 15, 1996
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
the bond market recovery and the outlook for 1996.
How has the recovery of the municipal bond market affected Nuveen funds?
In short, the recent market recovery has helped most Nuveen funds regain some
of the share price they lost during 1994. To put this in perspective, the
setback in the bond market in 1994--which goes on record as one of the most
volatile periods in decades--was the first downturn experienced by many Nuveen
exchange-traded fund investors, and some reacted by selling their shares.
This, in turn, drove share prices down even further. Since the beginning of
the recovery in early 1995, however, municipal bond prices have increased, and
most Nuveen funds have seen their prices rise 12% to 15%. Because of their
capital structure, leveraged funds such as the ones covered in this report
experienced greater price declines in 1994 than unleveraged funds, and they
generally responded more quickly to the stabilizing interest rate environment
with recovering prices in 1995.
<PAGE>
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
Why do some of these funds continue to trade at a discount despite the
recovery?
To understand why this is happening, it may be helpful to remember that each
share has two prices: the net asset value (NAV), which represents the
underlying value of the fund, and the share price, which reflects the market's
assessment of the fund.
As the market turned around in 1995, net asset values appreciated more
quickly than share prices. This is typical of a market that sometimes takes
time to recognize underlying value balanced against the various factors that
affect share price, such as interest rates, inflation forecasts, the relative
strength of the stock market, and legislative and tax outlooks.
Nuveen investors should be aware that the net asset values for the funds
covered in this report remain quite strong. For long-term investors, in fact,
the current period may present a buying opportunity, as shares can be
purchased at discount prices and at a time when the bond market is strong.
What does Nuveen see as the impact of the flat tax proposals?
We have been closely monitoring the various flat tax proposals currently being
debated in Congress and their implications for tax-free funds. Four major tax
reform proposals are currently under discussion, all with the common goal of
simplifying the federal tax code and increasing incentives for saving and
investment. It is important to note that none of the proposals has gained a
strong consensus and that implementation of any measure that manages to pass
both houses is at least two years away. We believe that some action on the tax
reform front is likely, as federal tax laws are constantly being reevaluated
and revised, although changes of the magnitude outlined in these proposals are
rare.
As we look at the bond market today, we can see some evidence that the
market is already compensating investors for the uncertainty of the tax reform
situation. Yields on municipal bonds are currently at levels equal to 90% or
more of long-term Treasury bond yields, an historically high position; the
typical yield ratio is 80-85%. On average, current municipal yields are
comparable to taxable yields in the 10% range, providing good value that is
difficult to match.
Once the tax reform issue is resolved, we're confident that municipal
bonds--because of their high credit quality and attractive yields--will
continue to hold a strategic place in the prudent investor's portfolio. The
importance of municipal bonds is enhanced by the integral role they play in
maintaining our way of life in this country. Our cities, counties, and states
will always have a need for financing to build and upgrade projects such as
roads, hospitals, and water treatment systems, and municipal bonds will
continue to be an essential way to match America's long-term needs for capital
improvements with investors' long-term needs for secure income.
<PAGE>
What is Nuveen's outlook as we head into 1996?
Inflation remains low, and the economy seems to be expanding at a reasonable
pace. While both of these factors can change and have an impact on the bond
market, the current environment is favorable for bonds. Although the supply of
municipal bonds is down from past years, demand from institutional investors
such as insurance companies was strong in 1995, contributing to the rebound in
municipal prices. If we experience continued slow and steady economic growth,
combined with low inflation and stable interest rates, that should attract
greater numbers of individual investors as well.
What does Nuveen mean by "value investing"? Where are Nuveen analysts finding
value today?
At Nuveen, we define value investing as a disciplined approach to security
selection and portfolio construction designed to deliver above-market
performance by emphasizing securities that offer good intrinsic value but that
are underpriced or undervalued by the market. Our value investing approach
concentrates on identifying individual bonds with current yields, prices,
credit quality, and future prospects that are exceptionally attractive in
relation to other bonds in the market.
As we search for value in the market today, our analysts continue to assess
investment potential across the entire spectrum of geographical and sector
opportunities. During 1995, we saw many credit upgrades on portfolio holdings,
meaning that our judgments about credit quality have been rewarded. We
currently favor revenue bonds that offer a dedicated revenue stream (such as
those issued for tollways or recycling plants) over general obligation bonds,
which rely on the taxing power of a state or municipality.
One example of revenue bonds that have performed exceptionally well for us
recently are those issued for the Denver International Airport. Although the
well-publicized delay in the opening of this new airport negatively affected
its outstanding debt, we at Nuveen did our own research, focusing on long-term
factors, and were satisfied that the airport would meet or exceed traffic
projections while continuing as a major hub for United Airlines. Our
expectation that the airport's debt would, in fact, increase in value has
happened, to the benefit of our shareholders.
<PAGE>
<TABLE>
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQJ
While the dividend income remained attractive compared with other fixed income
alternatives, the Fund adjusted its monthly dividend in August 1995 to a level
more in line with its earnings.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/04/95 $0.0810
2/09/95 $0.0810
3/09/95 $0.0810
4/07/95 $0.0810
5/09/95 $0.0810
6/13/95 $0.0810
7/12/95 $0.0810
8/11/95 $0.0785
9/13/95 $0.0785
10/11/95 $0.0785
11/13/95 $0.0785
12/13/95 $0.0785
<CAPTION>
FUND HIGHLIGHTS 12/31/95
<S> <C>
Yield 6.03%
Taxable-equivalent yield 10.05%
Annual total return on NAV 17.97%
Taxable-equivalent total return 22.63%
Combined state and federal tax rate 40.00%
Share price $15.625
NAV $15.65
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NNJ
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed a dividend increase in March 1995.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/09/95 $0.0660
2/09/95 $0.0660
3/09/95 $0.0675
4/07/95 $0.0675
5/09/95 $0.0675
6/13/95 $0.0675
7/12/95 $0.0675
8/11/95 $0.0675
9/13/95 $0.0675
10/11/95 $0.0675
11/13/95 $0.0675
12/13/95 $0.0675
<CAPTION>
FUND HIGHLIGHTS 12/31/95
<S> <C>
Yield 6.11%
Taxable-equivalent yield 10.18%
Annual total return on NAV 24.87%
Taxable-equivalent total return 29.23%
Combined state and federal tax rate 40.00%
Share price $13.25
NAV $14.96
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NQP
In keeping with the Fund's objective of providing dependable tax-free income,
shareholders enjoyed 12 months of stable dividends. In addition, the Fund paid
shareholders a capital gains distribution in December 1995.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/04/95 $0.0880
2/09/95 $0.0880
3/09/95 $0.0880
4/07/95 $0.0880
5/09/95 $0.0880
6/13/95 $0.0880
7/12/95 $0.0880
8/11/95 $0.0880
9/13/95 $0.0880
10/11/95 $0.0880
11/13/95 $0.0880
12/13/95 $0.0880 $0.0307
<CAPTION>
FUND HIGHLIGHTS 12/31/95
<S> <C>
Yield 6.17%
Taxable-equivalent yield 9.95%
Annual total return on NAV 17.87%
Taxable-equivalent total return 22.38%
Combined state and federal tax rate 38.00%
Share price $17.125
NAV $16.32
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
NPY
While the dividend income remained attractive compared with other fixed income
alternatives, the Fund adjusted its monthly level twice during the year,
seeking a level in line with its earnings.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/09/95 $0.0660
2/09/95 $0.0660
3/09/95 $0.0685
4/07/95 $0.0685
5/09/95 $0.0685
6/13/95 $0.0685
7/12/95 $0.0685
8/11/95 $0.0655
9/13/95 $0.0655
10/11/95 $0.0655
11/13/95 $0.0655
12/13/95 $0.0655
<CAPTION>
FUND HIGHLIGHTS 12/31/95
<S> <C>
Yield 6.35%
Taxable-equivalent yield 10.24%
Annual total return on NAV 29.69%
Taxable-equivalent total return 34.03%
Combined state and federal tax rate 38.00%
Share price $12.375
NAV $14.22
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, December 31, 1995) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor subject to a given state and federal income tax rate
would need to obtain from a fully taxable investment to equal the fund's
stated annualized yield on share price. In this report, these tax rates are
assumed to be 40% for NJ and 38% for PA, based on 1995 incomes of
$117,950-$256,500 for investors filing singly, $143,600-$256,500 for those
filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value, both up and down, are also magnified by
leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as are deemed advisable. No
shares were repurchased during the 6-month period ended December 31, 1995. Any
future repurchases will be reported to shareholders.
<PAGE>
<TABLE>
SHAREHOLDER MEETING REPORT
On December 14, 1995, the following Nuveen Exchange-Traded Funds held an
Annual Meeting of Shareholders. At the meeting, shareholders voted to elect
directors of the Funds and to ratify selection of Ernst & Young L.L.P. as the
auditors for the Funds. The directors elected at the meeting include: Lawrence
H. Brown, Richard J. Franke, Anne E. Impellizzeri, and Peter R. Sawers.
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Approval of the DIRECTORS
was reached as follows:
Lawrence H. Brown
For 17,556,148 10,793,814 13,749,313 14,340,586
Abstain 242,197 228,850 169,809 219,729
---------- ---------- ---------- ----------
Total 17,798,345 11,022,664 13,919,122 14,560,315
========== ========== ========== ==========
Richard J. Franke
For 17,556,493 10,806,576 13,755,413 14,346,320
Abstain 241,852 216,088 163,709 213,995
---------- ---------- ---------- ----------
Total 17,798,345 11,022,664 13,919,122 14,560,315
========== ========== ========== ==========
Anne E. Impellizzeri
For 17,561,655 10,803,529 13,739,741 14,344,181
Abstain 236,690 219,135 179,381 216,134
---------- ---------- ---------- ----------
Total 17,798,345 11,022,664 13,919,122 14,560,315
========== ========== ========== ==========
Peter R. Sawers
For 17,562,789 10,806,117 13,743,911 14,352,843
Abstain 235,556 216,547 175,211 207,472
---------- ---------- ---------- ----------
Total 17,798,345 11,022,664 13,919,122 14,560,315
========== ========== ========== ==========
Ratification of auditors
was reached as follows:
For 17,503,567 10,869,889 13,749,538 14,351,474
Against 84,430 37,941 47,696 43,719
Abstain 210,348 114,834 121,888 165,122
---------- ---------- ---------- ----------
Total 17,798,345 11,022,664 13,919,122 14,560,315
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 400,000 New Jersey Economic Development Authority
Pollution Control (Jersey Central Power & Light
Company), 7.100%, 7/01/15 7/01 at 103 A3 $ 432,252
3,260,000 New Jersey Economic Development Authority (New
Jersey Natural Gas Company), 7.050%, 3/01/16 3/98 at 102 A2 3,474,410
2,000,000 New Jersey Economic Development Authority
Natural Gas Facilities, Alternative Minimum Tax,
7.250%, 3/01/21 3/98 at 102 A2 2,128,980
5,000,000 New Jersey Economic Development Authority
(Elizabethtown Gas Company), Alternative
Minimum Tax, 6.625%, 10/01/21 10/96 at 102 A3 5,156,100
5,600,000 New Jersey Economic Development Authority
(Liberty State Park Project), 6.800%, 3/15/22 3/02 at 102 A1 6,118,448
1,700,000 New Jersey Economic Development Authority
(Bridgewater Resources, Inc.), 9.500%, 2/01/01 No Opt. Call N/R 1,780,903
3,000,000 New Jersey Economic Development Authority
(American Airlines Inc.), Alternative Minimum Tax,
7.100%, 11/01/31 11/01 at 102 Baa2 3,242,790
5,000,000 New Jersey Economic Development Authority
(New Jersey-American Water Company),
Alternative Minimum Tax, 7.400%, 11/01/01 No Opt. Call N/R 5,146,750
4,825,000 New Jersey Economic Development Authority
(Hackensack Water Company), Alternative
Minimum Tax, 7.000%, 10/01/17 10/96 at 102 A 4,987,024
5,000,000 New Jersey Economic Development Authority
(J & J Snack Foods Corporation), Alternative
Minimum Tax, 7.250%, 12/01/05 12/96 at 105 N/R 5,201,450
New Jersey Economic Development Authority (New
Jersey Performing Arts Center):
610,000 6.600%, 6/15/04 6/01 at 102 A+ 675,020
3,800,000 6.750%, 6/15/12 6/01 at 102 A+ 4,030,166
2,500,000 New Jersey Economic Development Authority,
7.000%, 7/01/04 No Opt. Call Aaa 2,921,275
New Jersey Educational Facilities Authority (Seton
Hall University):
500,000 6.875%, 7/01/10 7/01 at 102 Baa 546,305
2,500,000 7.000%, 7/01/21 7/01 at 102 Baa 2,760,225
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
New Jersey General Obligation:
$ 5,000,000 5.750%, 2/15/06 No Opt. Call Aa1 $ 5,404,250
5,000,000 6.000%, 2/15/11 No Opt. Call Aa1 5,517,500
5,000,000 6.375%, 8/01/11 8/02 at 101 1/2 Aa1 5,421,150
New Jersey Health Care Facilities Financing
Authority (St. Peter's Medical Center):
4,875,000 6.875%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 5,572,076
7,000,000 7.250%, 7/01/13 (Pre-refunded to 7/01/97) 7/97 at 102 AAA 7,497,420
4,410,000 New Jersey Health Care Facilities Financing
Authority (Burlington Geriatric Centers),
9.700%, 7/01/12 (Pre-refunded to 7/01/96) 7/96 at 102 AAA 4,624,238
300,000 New Jersey Health Care Facilities Financing
Authority (Community Medical Center/Kensington
Manor Care Center), 7.000%, 7/01/20 7/00 at 102 Aaa 333,432
3,600,000 New Jersey Health Care Facilities Financing Authority
(Atlantic City Medical Center), 6.800%, 7/01/05 7/02 at 102 A 3,936,780
7,500,000 New Jersey Health Care Facilities Financing Authority
(JFK Health Systems), 6.600%, 7/01/08 7/01 at 102 Aaa 8,313,900
9,300,000 New Jersey Health Care Facilities Financing Authority
(Centrastate Medical Center), 6.625%, 7/01/11 7/01 at 102 Aaa 10,277,337
3,000,000 New Jersey Health Care Facilities Financing
Authority (Beth Israel Hospital Association of
Passaic), 6.250%, 7/01/14 7/99 at 100 Aaa 3,110,910
2,250,000 New Jersey Health Care Facilities Financing
Authority (Robert Wood Johnson University
Hospital), 6.625%, 7/01/16 7/01 at 102 Aaa 2,487,600
4,350,000 New Jersey Health Care Facilities Financing Authority
(Mercer Medical Center), 6.500%, 7/01/10 7/01 at 102 Aaa 4,781,085
5,025,000 New Jersey Health Care Facilities Financing Authority
(Pascack Valley Hospital Association),
6.700%, 7/01/11 7/01 at 102 BBB+ 5,322,078
New Jersey Health Care Facilities Financing Authority
(Barnert Hospital):
995,000 6.750%, 8/01/11 2/01 at 102 AAA 1,074,729
2,845,000 6.800%, 8/01/19 2/01 at 102 AAA 3,058,773
4,700,000 New Jersey Health Care Facilities Financing Authority
(Palisades Medical Center), 7.500%, 7/01/06 7/02 at 102 Ba 4,865,111
1,350,000 New Jersey Health Care Facilities Financing Authority
(Overlook Hospital), 6.700%, 7/01/13 7/97 at 102 Aaa 1,426,856
2,800,000 New Jersey Health Care Facilities Financing Authority
(Atlantic City Medical Center), 6.800%, 7/01/11 7/02 at 102 A 3,080,616
1,000,000 New Jersey Health Care Facilities Financing Authority
(Deborah Heart and Lung Center), 6.200%, 7/01/13 7/03 at 102 Baa1 1,035,560
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 90,000 New Jersey Health Care Facilities, 6.750%, 8/01/11
(Pre-refunded to 2/01/01) 2/01 at 100 AAA $ 101,604
355,000 New Jersey Health Care Facilities Financing Authority,
6.800%, 8/01/19 (Pre-refunded to 2/01/01) 2/01 at 102 AAA 401,576
395,000 New Jersey Higher Education Assistance Authority,
Student Loan, 7.200%, 7/01/09 7/01 at 102 A 411,337
New Jersey Highway Authority (Garden State
Parkway):
3,500,000 6.250%, 1/01/14 1/02 at 102 AA- 3,736,950
9,300,000 7.250%, 1/01/16 (Pre-refunded to 1/01/99) 1/99 at 102 Aaa 10,307,469
1,000,000 5.750%, 1/01/19 1/02 at 100 AA- 1,019,540
1,500,000 New Jersey Housing and Mortgage Finance Agency
Multi-Family, 6.000%, 11/01/14 11/05 at 102 Aaa 1,545,915
New Jersey Housing and Mortgage Finance Agency:
3,000,000 6.800%, 11/01/05 11/02 at 102 AA+ 3,261,060
2,500,000 6.900%, 11/01/07 11/01 at 103 AA+ 2,703,750
4,700,000 6.950%, 11/01/08 11/01 at 103 AA+ 5,070,172
1,000,000 7.100%, 11/01/11 11/01 at 103 AA+ 1,074,740
9,650,000 6.950%, 11/01/13 5/02 at 102 A+ 10,315,368
3,250,000 6.700%, 11/01/28 11/02 at 102 A+ 3,410,778
12,000,000 7.000%, 5/01/30 11/01 at 102 AAA 12,740,400
New Jersey Housing and Mortgage Finance Agency:
Alternative Minimum Tax:
3,255,000 7.600%, 10/01/09 10/99 at 102 Aaa 3,438,387
5,500,000 6.300%, 4/01/25 10/00 at 102 Aaa 5,617,425
2,445,000 New Jersey Sports and Exposition Authority,
6.500%, 3/01/19 3/02 at 102 Aa 2,653,827
New Jersey State General Obligation:
8,200,000 6.750%, 9/15/07 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 9,299,128
850,000 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 966,059
New Jersey Transportation Trust Fund Authority:
5,000,000 6.500%, 6/15/05 No Opt. Call Aaa 5,674,800
2,575,000 6.500%, 6/15/11 No Opt. Call Aaa 2,977,756
New Jersey Turnpike Authority:
9,000,000 6.500%, 1/01/08 No Opt. Call Aaa 10,194,570
5,000,000 6.900%, 1/01/14 1/96 at 100 Baa1 5,009,600
1,675,000 6.500%, 1/01/16 No Opt. Call Baa1 1,884,342
3,000,000 New Jersey Wastewater Treatment Trust,
7.375%, 5/15/08 5/98 at 102 Aaa 3,269,340
2,250,000 New Jersey Water Supply Authority, Water System
(Delaware and Raritan System), Alternative
Minimum Tax, 7.875%, 11/01/13 11/98 at 102 A+ 2,472,278
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,500,000 Atlantic County Utilities Authority Sewer System,
5.000%, 1/15/13 1/97 at 100 Aaa $ 2,461,900
1,500,000 Bedminster Board of Education, Certificates of
Participation, 7.125%, 9/01/10 3/01 at 102 A1 1,686,915
3,000,000 Bergen County General Obligation,
5.500%, 8/15/07 No Opt. Call Aaa 3,189,420
7,000,000 Bergen County Utility Authority, Water Pollution
Control System, 6.500%, 12/15/12 6/02 at 102 Aaa 7,751,100
Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resource Recovery
System), Alternative Minimum Tax:
3,700,000 7.500%, 12/01/09 12/01 at 102 BBB+ 3,906,571
3,500,000 7.500%, 12/01/10 12/01 at 102 BBB+ 3,695,405
Cape May County Municipal Utilities Authority:
2,000,000 6.000%, 1/01/11 1/03 at 102 Aaa 2,127,940
5,600,000 5.750%, 1/01/16 1/03 at 102 Aaa 5,784,688
1,000,000 Dover Board of Education, Certificates of Participation,
6.600%, 6/01/11 12/01 at 100 Aaa 1,086,690
1,265,000 East Brunswick Township General Obligation,
5.125%, 4/01/13 4/03 at 101 Aa 1,265,822
7,800,000 Essex County Fiscal Year Adjustment,
6.500%, 12/01/11 12/01 at 101 Aaa 8,570,952
Evesham Municipal Utility Authority:
620,000 5.650%, 7/01/15 7/05 at 100 Aaa 641,043
1,010,000 5.700%, 7/01/20 7/05 at 100 Aaa 1,041,462
4,095,000 Evesham Township Board of Education, Certificates
of Participation, 6.875%, 9/01/11 9/01 at 102 Aaa 4,619,529
2,320,000 Hoboken General Obligation, 8.900%, 8/01/06 No Opt. Call Aaa 3,115,180
5,250,000 Howell Township General Obligation,
6.800%, 1/01/14 1/02 at 102 Aaa 5,881,418
3,790,000 Hudson County Improvement Authority, Multi-Family
Housing (Observer Park Project), Alternative
Minimum Tax, 6.900%, 6/01/22 6/04 at 100 AAA 4,007,584
Jersey City Fiscal Year Adjustment:
3,675,000 8.400%, 5/15/06 No Opt. Call Aaa 4,760,558
8,200,000 6.600%, 5/15/11 5/01 at 102 Aaa 9,074,448
1,585,000 Long Branch Housing Finance Corporation
(Washington Manor Association), 10.000%, 10/01/11 4/96 at 102 N/R 1,625,196
2,535,000 Mansfield Township Board of Education, Certificates
of Participation, 5.900%, 3/01/15 3/06 at 102 Aaa 2,687,480
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Mercer County Improvement Authority Custodial
Receipts:
$ 3,000,000 6.050%, 1/01/09 No Opt. Call Aa $ 3,001,440
1,585,000 6.050%, 1/01/13 No Opt. Call Aa 1,585,491
1,000,000 6.050%, 1/01/14 No Opt. Call Aa 1,000,260
1,720,000 6.050%, 1/01/16 No Opt. Call Aa 1,720,310
2,000,000 6.050%, 1/01/17 No Opt. Call Aa 2,000,360
950,000 Mercer County Improvement Authority (County
Courthouse), 6.600%, 11/01/14 (Pre-refunded to
11/01/00) 11/00 at 102 Aa1 1,063,924
8,000,000 Middlesex County Pollution Control Authority
(Amerada Hess), 6.875%, 12/01/22 12/02 at 102 N/R 8,415,600
3,545,000 Monmouth County Improvement Authority,
5.500%, 7/01/15 (DD) 7/06 at 102 Aaa 3,623,947
3,500,000 Monmouth County Improvement Authority, Sewage
Facilities, 6.750%, 2/01/13 (Pre-refunded to 2/01/01) 2/01 at 102 Aaa 3,951,255
2,000,000 Morristown General Obligation, 6.500%, 8/01/19 8/05 at 102 Aaa 2,237,280
1,200,000 Passaic County General Obligation, 6.700%, 9/01/10
(Pre-refunded to 9/01/99) 9/99 at 102 N/R 1,325,520
4,000,000 Passaic Valley Sewer Commissioners, 5.800%, 12/01/18 12/02 at 102 Aaa 4,141,960
1,180,000 Raritan Township Municipal Utility Authority,
6.450%, 5/01/12 5/02 at 102 A+ 1,264,795
Rutgers State University:
2,900,000 6.500%, 5/01/13 5/02 at 102 AA 3,168,540
1,725,000 6.500%, 5/01/18 5/02 at 102 AA 1,887,685
6,250,000 Salem County Pollution Control Authority
(E.I. DuPont--Chambers Works Project),
Alternative Minimum Tax, 6.500%, 11/15/21 11/01 at 102 Aa2 6,603,875
1,465,000 South Toms River Sewerage Authority,
7.400%, 11/01/05 11/02 at 102 N/R 1,575,388
10,000,000 Union County Utilities Authority, Solid Waste System,
Alternative Minimum Tax, 6.850%, 6/15/14 6/02 at102 Aaa 10,747,500
2,450,000 University of Medicine and Dentistry of New Jersey,
6.500%, 12/01/18 12/01 at 102 AA 2,772,665
Western Monmouth Utilities Authority:
1,000,000 5.300%, 2/01/10 2/05 at 102 Aaa 1,008,720
2,690,000 5.600%, 2/01/14 2/05 at 102 Aaa 2,764,379
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,400,000 Port Authority of New York and New Jersey,
8.000%, 12/01/23 2/96 at 102 AA- $ 2,455,871
4,300,000 Port Authority of New York and New Jersey, Special
Project, LaGuardia Airport Passenger Terminal
(Delta Air Lines), 6.950%, 6/01/08 6/02 at 102 Ba1 4,616,522
4,500,000 Port Authority of New York and New Jersey,
Alternative Minimum Tax, 6.000%, 1/15/28 1/03 at 101 AA- 4,691,294
2,500,000 Delaware River Port Authority, 5.400%, 1/01/14 1/06 at 102 Aaa 2,518,674
Puerto Rico Electric Power Authority:
8,500,000 7.000%, 7/01/07 No Opt. Call Aaa 10,113,554
6,000,000 7.000%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 A- 6,894,420
710,000 Puerto Rico Housing Finance Corporation, Single
Family Mortgage, 6.750%, 10/15/13 10/01 at 102 Aaa 749,490
$390,000,000 Total Investments - (cost $391,405,633) - 97.6% 422,183,690
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.3%
$ 1,000,000 Port Authority of New York and New Jersey,
Special Obligation, Versatile Structure Obligations,
Alternative Minimum Tax, Variable Rate Demand
Bonds, 6.150%, 8/01/28t VMIG-1 1,000,000
4,600,000 Port Authority of New York and New Jersey,
Versatile Structure Obligations, Variable
Rate Demand Bonds, 5.750%, 5/01/19t A-1+ 4,600,000
$ 5,600,000 Total Temporary Investments - 1.3% 5,600,000
============
Other Assets Less Liabilities - 1.1% 4,938,814
Net Assets - 100% $432,722,504
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 50 $220,407,024 52%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 25 79,345,663 19
PORTFOLIO OF A+ A1 8 29,973,768 7
INVESTMENTS A, A- A, A2, A3 9 30,501,919 7
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 9 27,402,876 7
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 2 9,481,633 2
INVESTMENTS): Non-rated Non-rated 7 25,070,807 6
TOTAL 110 $422,183,690 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(DD) Security purchased on a delayed delivery basis (note 1).
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,145,000 New Jersey Economic Development Authority,
Natural Gas Facilities, Alternative Minimum Tax,
7.250%, 3/01/21 3/98 at 102 A2 $ 1,218,841
3,600,000 New Jersey Economic Development Authority
(Yeshiva K'tana of Passaic), 8.000%, 9/15/18 No Opt. Call N/R 4,308,732
7,000,000 New Jersey Economic Development Authority
(Bridgewater Resources, Inc.), Alternative Minimum
Tax, 8.375%, 11/01/04 No Opt. Call N/R 7,454,580
1,485,000 New Jersey Economic Development Authority
(Elizabethtown Water Company), Alternative
Minimum Tax, 6.700%, 8/01/21 8/01 at 102 A3 1,564,151
1,500,000 New Jersey Economic Development Authority
(New Jersey American Water Company),
Alternative Minimum Tax, 5.500%, 6/01/23 6/03 at 102 Aaa 1,486,290
3,100,000 New Jersey Economic Development Authority
(Hackensack Water Company), Alternative
Minimum Tax, 5.900%, 3/01/24 3/04 at 102 Aaa 3,189,249
3,255,000 New Jersey Economic Development Authority
(Morris Hall/St. Lawrence, Inc.), 6.150%, 4/01/13 4/03 at 102 A+ 3,365,963
3,485,000 New Jersey Economic Development Authority
(Public School Small Project Loan Program),
5.400%, 8/15/12 8/03 at 102 AAA 3,547,869
New Jersey Economic Development Authority,
Alternative Minimum Tax:
1,255,000 5.000%, 10/01/05 10/03 at 102 AA- 1,316,156
4,185,000 5.300%, 12/01/07 12/03 at 102 Aa1 4,375,376
1,500,000 New Jersey Economic Development Authority,
7.000%, 7/01/04 No Opt. Call Aaa 1,752,765
New Jersey Educational Facilities Authority (Trenton
State College):
1,000,000 6.750%, 7/01/08 1/96 at 100 1/2 A+ 1,007,390
2,095,000 6.000%, 7/01/09 7/02 at 102 Aaa 2,255,666
1,500,000 New Jersey Educational Facilities Authority (Higher
Education Facilities Trust Fund), 5.125%, 9/01/02 No Opt. Call Aaa 1,557,360
1,000,000 New Jersey Educational Facilities Authority (New
Jersey Institute of Technology), 6.000%, 7/01/24 7/04 at 102 Aaa 1,057,900
1,940,000 New Jersey Educational Facilities Authority
(Princeton University), 5.875%, 7/01/20 7/04 at 100 Aaa 2,016,242
New Jersey General Obligation:
5,260,000 5.750%, 2/15/06 No Opt. Call Aa1 5,685,271
4,000,000 5.800%, 2/15/07 No Opt. Call Aa1 4,347,960
2,500,000 6.000%, 2/15/11 No Opt. Call Aa1 2,758,750
2,385,000 6.800%, 9/15/11 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 2,710,648
1,560,000 6.000%, 2/15/13 No Opt. Call Aa1 1,729,400
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,250,000 New Jersey Health Care Facilities Financing
Authority (Community Memorial Hospital),
8.000%, 7/01/14 7/98 at 102 A $ 1,366,975
New Jersey Health Care Facilities Financing
Authority (Dover General Hospital and Medical
Center):
1,015,000 7.000%, 7/01/03 No Opt. Call Aaa 1,164,327
800,000 7.000%, 7/01/04 No Opt. Call Aaa 924,448
2,000,000 New Jersey Health Care Facilities Financing
Authority (Overlook Hospital), 6.700%, 7/01/13 7/97 at 102 Aaa 2,113,860
2,450,000 New Jersey Health Care Facilities Financing
Authority (Mountainside Hospital), 5.500%, 7/01/14 7/03 at 102 Aaa 2,465,313
New Jersey Health Care Facilities Financing
Authority (St. Peter's Medical Center):
4,300,000 5.000%, 7/01/11 7/03 at 102 Aaa 4,206,991
2,000,000 5.000%, 7/01/13 7/03 at 102 Aaa 1,953,260
970,000 New Jersey Health Care Facilities Financing
Authority (Wayne General Hospital),
5.750%, 8/01/11 8/04 at 102 AAA 993,513
1,400,000 New Jersey Health Care Facilities Financing
Authority (Allegheny Health System-Our Lady of
Lourdes Medical Center), 5.125%, 7/01/13 7/04 at 102 Aaa 1,385,650
2,000,000 New Jersey Health Care Facilities Financing
Authority (Monmouth Medical Center),
6.250%, 7/01/16 7/04 at 102 Aaa 2,157,400
New Jersey Higher Educational Assistance
Authority, Student Loan, Alternative Minimum Tax:
940,000 6.125%, 7/01/09 7/02 at 102 A+ 965,032
5,645,000 5.300%, 7/01/10 7/03 at 102 A+ 5,541,414
2,250,000 New Jersey Housing Finance Agency, Special Pledge
Revenue Obligations, 9.000%, 11/01/18 11/99 at 100 A1 2,350,575
New Jersey Housing and Mortgage Finance Agency:
2,365,000 6.700%, 5/01/05 5/02 at 102 A+ 2,553,751
8,000,000 6.950%, 11/01/13 5/02 at 102 A+ 8,551,600
4,250,000 6.700%, 11/01/28 11/02 at 102 A+ 4,460,248
3,300,000 New Jersey State General Obligation,
6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 3,750,582
New Jersey Transportation Trust Fund Authority:
750,000 5.500%, 6/15/12 6/05 at 102 Aaa 770,205
6,000,000 5.000%, 6/15/15 6/05 at 102 Aaa 5,937,300
2,150,000 New Jersey Transportation, 5.500%, 6/15/15 6/05 at 102 Aaa 2,172,726
New Jersey Turnpike Authority:
3,120,000 10.375%, 1/01/03 No Opt. Call AAA 3,901,560
1,000,000 6.500%, 1/01/08 No Opt. Call A 1,131,760
7,700,000 6.500%, 1/01/16 No Opt. Call Baa1 8,662,346
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 500,000 Bayshore Regional Sewerage Authority,
5.400%, 5/01/12 5/03 at 102 Aaa $ 508,805
1,000,000 Bergen County Utility Authority, Solid Waste
System, 7.750%, 3/15/13 (Pre-refunded to 3/15/98) 3/98 at 100 Aaa 1,080,280
6,600,000 Camden County Pollution Control Financing
Authority, Solid Waste Disposal and Resource
Recovery, Alternative Minimum Tax,
7.125%, 12/01/01 No Opt. Call BBB+ 6,835,620
6,500,000 Camden County Pollution Control Finance Authority,
Solid Waste Disposal and Resource Recovery
System, 7.250%, 12/01/10 12/01 at 102 BBB+ 6,900,855
1,275,000 Camden County Improvement Authority,
5.625%, 10/01/15 10/05 at 102 Aaa 1,294,610
Cape May County Municipal Utilities Authority:
5,250,000 5.750%, 1/01/16 1/03 at 102 Aaa 5,423,145
1,000,000 5.000%, 1/01/16 1/03 at 102 Aaa 986,930
7,100,000 Delaware River and Bay Authority, 5.000%, 1/01/17 1/04 at 102 Aaa 7,013,593
Delaware River Port Authority:
4,415,000 5.400%, 1/01/16 1/06 at 102 Aaa 4,406,964
10,550,000 5.500%, 1/01/26 1/06 at 102 Aaa 10,637,670
1,000,000 East Brunswick Township General Obligation,
5.125%, 4/01/13 4/03 at 101 Aa 1,000,650
500,000 Essex County Improvement Authority,
6.000%, 12/01/17 12/02 at 102 Aaa 527,330
250,000 Franklin Township Somerset County School District,
Certificates of Participation, 6.900%, 12/15/00
(Pre-refunded to 6/15/99) 6/99 at 100 Aaa 272,705
1,000,000 Jersey City Sewerage Authority, 6.250%, 1/01/14 No Opt. Call Aaa 1,138,890
2,000,000 Lacey Municipal Utility Authority, 5.500%, 12/01/19 12/03 at 102 Aaa 2,014,340
975,000 Long Branch Housing Finance Corporation
(Washington Manor Association),
10.000%, 10/01/11 4/96 at 102 N/R 999,726
Mercer County Improvement Authority, Custodial
Receipts:
750,000 6.050%, 1/01/11 No Opt. Call Aa 750,263
1,000,000 6.050%, 1/01/12 No Opt. Call Aa 1,000,310
Mercer County Improvement Authority, Solid
Waste, Alternative Minimum Tax:
1,000,000 6.400%, 4/01/06 4/02 at 102 Aaa 1,053,890
3,500,000 6.700%, 4/01/13 4/02 at 102 Aaa 3,691,030
785,000 Morris County General Obligation, 5.125%, 5/13/11 No Opt. Call Aaa 792,450
525,000 New Brunswick Housing and Urban Development
Authority, 5.500%, 8/01/16 8/03 at 102 Aaa 521,136
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 600,000 North Arlington General Obligation,
4.800%, 2/01/10 No Opt. Call Aaa $ 582,918
2,275,000 Northwest Bergen County Utilities Authority,
7.500%, 7/15/13 (Pre-refunded to 7/15/96) 7/96 at 102 Aaa 2,367,979
4,000,000 Passaic County General Obligation, 5.125%, 9/01/12 No Opt. Call Aaa 4,031,000
1,040,000 Passaic County Valley Sewer Commissioners,
5.750%, 12/01/10 12/02 at 102 Aaa 1,089,067
685,000 Pinelands Regional Board of Education, Certificates
of Participation, 5.500%, 4/01/98 No Opt. Call N/R 698,453
2,510,000 Piscataway Township School District, Certificates of
Participation, 5.375%, 12/15/10 6/03 at 102 Aaa 2,559,347
2,000,000 Rutgers State University, 8.125%, 5/01/17
(Pre-refunded to 5/01/97) 5/97 at 102 Aaa 2,154,420
795,000 South Jersey Port Corporation, 4.900%, 1/01/08 No Opt. Call A+ 777,367
650,000 Southern Gloucester County, Board of Education,
General Obligation, 5.000%, 10/01/14 No Opt. Call Aaa 648,772
1,000,000 Stony Brook Regional Sewer Authority,
5.450%, 12/01/12 No Opt. Call Aa 1,025,930
1,220,000 Sussex County Municipal Utilities Authority, General
Obligation, 5.250%, 12/01/08 12/03 at 102 Aaa 1,245,010
3,500,000 Sussex County Municipal Utilities Authority,
7.875%, 12/01/13 (Pre-refunded to 12/01/98) 12/98 at 102 AAA 3,936,870
7,425,000 Union County Utilities Authority, Solid Waste,
Alternative Minimum Tax, 7.200%, 6/15/14 6/02 at 102 A- 7,952,101
1,500,000 Wanaque Valley Regional Sewer Authority,
5.750%, 9/01/18 No Opt. Call Aaa 1,628,955
1,585,000 Warren County Municipal Utilities Authority,
Wastewater System, 5.300%, 12/01/11 12/03 at 101 Aaa 1,600,153
2,250,000 Western Monmouth Utilities Authority,
5.600%, 2/01/14 2/05 at 102 Aaa 2,312,213
Port Authority of New York and New Jersey:
3,300,000 5.625%, 10/15/17 10/02 at 101 Aaa 3,333,891
2,500,000 5.750%, 12/15/20 6/05 at 101 AA- 2,553,625
Port Authority of New York and New Jersey,
Alternative Minimum Tax:
2,500,000 5.750%, 11/01/14 5/05 at 101 Aaa 2,587,224
3,000,000 6.600%, 10/01/23 10/04 at 101 Aaa 3,287,940
5,000,000 Puerto Rico Commonwealth General Obligation,
5.750%, 7/01/24 7/05 at 101 1/2 Aaa 5,185,400
8,160,000 Puerto Rico Public Buildings Authority,
5.750%, 7/01/15 7/03 at 101 1/2 A 8,246,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,500,000 Puerto Rico Electric Power Authority,
6.250%, 7/01/17 7/02 at 101 1/2 A- $ 3,699,464
7,000,000 Puerto Rico Industrial Medical Educational and
Environmental Authority (American Home
Products), 5.100%, 12/01/18 12/03 at 103 A2 6,756,680
$245,875,000 Total Investments - (cost $246,731,006) - 95.7% 257,299,616
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.8%
$ 6,700,000 Port Authority of New York and New Jersey, Versatile
Structure Obligations, Variable Rate Demand
Bonds, 5.750%, 5/01/19t A-1+ 6,700,000
800,000 Port Authority of New York and New Jersey, Variable
Rate Demand Bonds, 5.900%, 6/01/20t VMIG-1 800,000
$ 7,500,000 Total Temporary Investments - 2.8% 7,500,000
============
Other Assets Less Liabilities - 1.5% 4,184,228
Net Assets - 100% $268,983,844
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 53 $126,924,821 50%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 33,004,921 13
PORTFOLIO OF A+ A1 9 29,573,340 11
INVESTMENTS A, A- A, A2, A3 8 31,936,222 12
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 3 22,398,821 9
TEMPORARY Non-rated Non-rated 4 13,461,491 5
INVESTMENTS):
TOTAL 90 $257,299,616 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 6,000,000 Pennsylvania General Obligation, 6.375%, 9/15/11 3/02 at 101 1/2 AA- $ 6,526,680
4,970,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, 6.800%, 12/01/00 No Opt. Call Aaa 5,400,004
4,000,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, Alternative Minimum Tax,
7.150%, 9/01/21 9/01 at 102 Aaa 4,342,560
3,000,000 Pennsylvania Higher Education Assistance Agency,
6.400%, 3/01/22 9/02 at 102 Aaa 3,159,660
2,000,000 Pennsylvania Higher Educational Facilities Authority
(Lycoming College), 8.375%, 10/01/18
(Pre-refunded to 10/01/98) 10/98 at 102 N/R 2,258,460
4,250,000 Pennsylvania Higher Educational Facilities Authority
(University of Pennsylvania), 6.625%, 1/01/17 1/97 at 100 Aa 4,337,593
10,580,000 Pennsylvania Higher Educational Facilities Authority
(Thomas Jefferson University), 6.000%, 7/01/19 7/99 at 102 Aa 10,861,111
6,780,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, 6.900%, 4/01/17 4/02 at 102 Aa 7,244,633
Pennsylvania Housing Finance Agency Single Family
Mortgage, Alternative Minimum Tax:
5,000,000 7.625%, 10/01/10 10/99 at 102 Aa 5,328,650
2,000,000 6.200%, 10/01/14 10/05 at 102 Aa 2,055,260
1,000,000 7.000%, 4/01/24 4/02 at 102 Aa 1,055,580
3,825,000 Pennsylvania State University, 6.250%, 3/01/11 3/01 at 102 A 4,114,323
Pennsylvania Turnpike Commission:
1,650,000 6.500%, 12/01/13 12/01 at 102 A1 1,781,076
4,500,000 7.200%, 12/01/17 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 5,256,000
1,865,000 5.500%, 12/01/17 12/02 at 102 Aaa 1,872,087
Allegheny County (Greater Pittsburgh International
Airport), Alternative Minimum Tax:
8,000,000 8.200%, 1/01/08 1/98 at 102 Aaa 8,715,200
5,785,000 7.750%, 1/01/19 1/98 at 100 Aaa 6,148,009
2,500,000 6.625%, 1/01/22 1/02 at 102 Aaa 2,686,925
6,300,000 Allegheny County Hospital Development
Authority (St. Margaret Memorial Hospital),
7.125%, 10/01/21 10/01 at 100 A- 6,630,498
14,180,000 Allegheny County Residential Finance Authority,
Single Family (GNMA), Alternative Minimum
Tax, 0.000%, 5/01/27 No Opt. Call Aaa 1,726,131
395,000 Altoona Redevelopment Authority, Home
Improvement, Alternative Minimum Tax,
7.150%, 12/01/09 12/01 at 102 A 425,980
5,000,000 Beaver County Industrial Development Authority,
Pollution Control (Ohio Edison Project),
7.750%, 9/01/24 9/99 at 102 Baa3 5,359,300
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,800,000 Berks County Municipal Authority, Pennsylvania
Higher Education Pooled Financing Program
(University of Pennsylvania Project),
6.700%, 9/01/07 (Pre-refunded to 9/01/97) 9/97 at 100 AAA $ 1,884,276
2,180,000 Berks County Redevelopment Authority, Senior
Single Family Mortgage, Alternative Minimum
Tax, 8.000%, 12/01/17 No Opt. Call A 2,382,130
Bethlehem Authority Water System:
3,045,000 6.250%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 3,356,991
4,000,000 6.250%, 11/15/21 (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 4,409,840
8,250,000 Blair County Hospital Authority (Mercy Hospital),
8.125%, 2/01/14 2/99 at 102 BBB+ 8,799,780
5,000,000 Butler County Hospital Authority (North Hills
Passavant Hospital), 7.000%, 6/01/22 6/01 at 102 Aaa 5,610,800
3,300,000 Chester County Hospital Authority (Paoli
Memorial Hospital), 7.625%, 10/01/13
(Pre-refunded to 10/01/96) 10/96 at 102 N/R 3,464,043
4,500,000 Delaware County Authority (Villanova University),
6.900%, 8/01/16 8/01 at 100 Aaa 5,027,040
3,750,000 Delaware County Industrial Development Authority
(Philadelphia Electric Project), 7.375%, 4/01/21 4/01 at 102 Baa1 4,085,363
3,400,000 Erie County Hospital Authority (Hamot Medical
Center), 7.100%, 2/15/10 2/01 at 102 Aaa 3,822,178
4,390,000 Fairview Township Authority, Sewer System,
6.700%, 11/01/21 11/01 at 100 Aaa 4,778,559
2,875,000 Franklin County Industrial Development Authority
(Chambersburg Hospital), 6.700%, 7/01/08 7/99 at 102 Aaa 3,151,288
400,000 Greater Lebanon Refuse Authority, Solid Waste,
7.000%, 11/15/04 11/02 at 100 A- 431,096
2,000,000 Hampton Township School District, General
Obligation, 6.750%, 11/15/21 (Pre-refunded
to 11/15/04) 11/04 at 100 Aaa 2,318,300
3,000,000 Indiana County Industrial Development Authority,
Pollution Control (Pennsylvania Electric Company),
5.350%, 11/01/10 No Opt. Call Aaa 3,072,480
3,400,000 Lehigh County General Purpose Authority
(Allentown College of St. Francis de Sales),
6.750%, 12/15/12 6/02 at 100 AAA 3,716,166
4,000,000 Lehigh County Industrial Development Authority,
6.150%, 8/01/29 8/05 at 102 Aaa 4,271,720
4,000,000 Lower Pottsgrove Township Authority Sewer System,
6.700%, 11/01/16 11/99 at 100 Aaa 4,371,600
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Luzerne County Industrial Development Authority
(Pennsylvania Gas & Water Company), Alternative
Minimum Tax:
$ 3,000,000 7.200%, 10/01/17 10/02 at 102 Baa3 $ 3,179,160
5,000,000 7.000%, 12/01/17 12/04 at 102 Aaa 5,685,450
3,550,000 7.125%, 12/01/22 12/02 at 102 Baa3 3,727,571
3,130,000 McKean County Solid Waste Authority,
6.650%, 1/01/12 1/02 at 100 Aaa 3,385,815
5,000,000 Montgomery County Industrial Development
Authority (Philadelphia Electric Co. Project),
8.875%, 6/01/16 6/96 at 102 BBB+ 5,161,200
5,500,000 Montgomery County Industrial Development
Authority, Resource Recovery, 7.500%, 1/01/12 1/99 at 100 AA 6,032,015
1,000,000 Philadelphia Authority for Industrial Development
(PGH Development Corporation), 7.000%, 7/01/17
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,112,540
4,885,000 Philadelphia Authority for Industrial Development,
Convertible Project, 7.125%, 7/01/17
(Pre-refunded to 7/01/99) 7/99 at 102 AA 5,445,993
1,250,000 Philadelphia Authority for Industrial Development
(National Board of Medical Examiners),
6.750%, 5/01/12 5/02 at 102 A+ 1,368,588
Philadelphia Gas Works:
3,345,000 7.875%, 7/01/17 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 3,606,880
4,270,000 7.700%, 6/15/21 (Pre-refunded to 6/15/01) 6/01 at 102 Aaa 5,046,713
8,530,000 Philadelphia Hospital and Higher Educational
Facilities Authority (St. Agnes Medical Center),
7.250%, 8/15/31 8/01 at 102 Aa 9,284,649
Philadelphia Hospitals and Higher Educational
Facilities Authority (Children's Hospital of
Philadelphia):
1,410,000 7.000%, 7/01/15 (Pre-refunded to 7/01/97) 7/97 at 100 Aaa 1,475,833
4,100,000 6.500%, 2/15/21 (Pre-refunded to 2/15/02) 2/02 at 102 Aaa 4,630,089
8,800,000 Philadelphia Hospital and Higher Educational
Facilities Authority (Presbyterian Medical Center),
7.250%, 12/01/21 (Pre-refunded to 12/01/01) 12/01 at 102 A- 10,150,800
3,520,000 Philadelphia Hospitals and Higher Educational
Facilities Authority (Magee Rehabilitation Hospital),
7.000%, 12/01/10 12/01 at 102 Aaa 3,955,459
630,000 Philadelphia Hospital and Higher Educational
Facilities Authority (Children's Seashore House),
7.000%, 8/15/03 8/02 at 102 A- 694,770
Philadelphia School District General Obligation:
850,000 6.500%, 5/15/05 (Pre-refunded to 5/15/02) 5/02 at 100 3/4 Aaa 955,120
3,250,000 7.000%, 7/01/05 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 3,723,330
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Philadelphia Water and Sewer:
$ 1,500,000 7.900%, 7/01/05 (Pre-refunded to 7/01/96) 7/96 at 102 AAA $ 1,562,100
5,750,000 7.250%, 7/01/14 (Pre-refunded to 7/01/96) 7/96 at 102 AAA 5,913,013
10,625,000 7.000%, 8/01/18 (Pre-refunded to 8/01/01) 8/01 at 100 AAA 12,058,844
Philadelphia Municipal Authority, Justice Lease
Revenue:
1,500,000 7.100%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,742,775
9,900,000 7.125%, 11/15/18 (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 11,514,987
2,865,000 Pittsburgh Urban Redevelopment Authority,
Alternative Minimum Tax, 7.050%, 4/01/23 10/01 at 102 A1 3,010,972
1,000,000 Pittsburgh Urban Redevelopment Authority,
FHA-Insured Project, Alternative Minimum Tax,
7.125%, 8/01/13 8/02 at 102 A 1,052,880
3,000,000 Pittsburgh Water and Sewer Authority, Water and
Sewer System, 7.625%, 9/01/04 No Opt. Call Aaa 3,588,090
Pittsburgh Water and Sewer Authority:
3,250,000 6.500%, 9/01/14 (Pre-refunded to 9/01/01) 9/01 at 102 Aaa 3,664,343
1,990,000 4.750%, 9/01/16 9/03 at 102 Aaa 1,864,073
2,500,000 St. Mary's Hospital Authority (Franciscan Health
System/St. Mary of Langhorne), 6.500%, 7/01/12 7/02 at 102 Aaa 2,713,975
5,500,000 Sayre Health Care Facilities Authority (Guthrie
Healthcare System), 7.200%, 12/01/20 12/01 at 103 Aaa 6,266,590
Scranton-Lackawanna Health and Welfare Authority
(University of Scranton):
3,730,000 7.400%, 6/15/10 (Pre-refunded to 6/15/00) 6/00 at 102 Aaa 4,254,811
2,900,000 6.500%, 3/01/13 3/02 at 102 A- 3,128,462
8,475,000 Somerset County General Authority, Commonwealth
Lease, 7.000%, 10/15/13 (Pre-refunded to 10/15/01) 10/01 at 100 Aaa 9,655,568
5,000,000 Southeastern Pennsylvania Transportation Authority,
5.750%, 3/01/20 3/05 at 101 Aaa 5,129,250
5,000,000 State Public School Building Authority (Hazleton
Area School District), 6.500%, 3/01/08 3/01 at 100 Aaa 5,426,500
2,545,000 Temple University, Commonwealth System, Higher
Education (FHA Insured), 7.250%, 8/01/11
(Pre-refunded to 8/01/98) 8/98 at 100 Aaa 2,748,982
3,500,000 Upper Merion Area School District, General
Obligation, 6.900%, 9/01/16 (Pre-refunded
to 9/01/01) 9/01 at 100 Aa 3,951,570
3,000,000 Warrington Township Municipal Authority, Water
and Sewer, 7.100%, 12/01/21 12/99 at 100 Aaa 3,292,710
5,000,000 West Chester Area School District, General
Obligation, 6.700%, 1/15/11 (Pre-refunded
to 1/15/01) 1/01 at 100 Aa 5,541,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 5,450,000 West View Municipal Authority, 9.500% 11/15/14 No Opt. Call Aaa $ 7,869,092
5,000,000 Westmoreland County General Obligation,
6.700%, 8/01/09 (Pre-refunded to 8/01/01) 8/01 at 100 Aaa 5,600,850
Wilkes-Barre General Municipal Authority (College
Misericordia), Alternative Minimum Tax:
645,000 7.750%, 12/01/12 12/00 at 100 N/R 712,630
665,000 7.750%, 12/01/12 12/02 at 102 N/R 734,732
$338,180,000 Total Investments - (cost $323,611,986) - 98.3% 357,860,394
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.4%
$ 1,465,000 Allegheny County Hospital Development Authority
============
(Presbyterian-University Health System), Variable
Rate Demand Bonds, 5.000%, 3/01/18t VMIG-1 1,465,000
Other Assets Less Liabilities - 1.3% 4,547,972
Net Assets - 100% $363,873,366
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 50 $217,541,596 61%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 67,664,984 19
PORTFOLIO OF A+ A1 3 6,160,636 2
INVESTMENTS A, A- A, A2, A3 9 29,010,939 8
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 6 30,312,374 8
TEMPORARY Non-rated Non-rated 4 7,169,865 2
INVESTMENTS):
TOTAL 84 $357,860,394 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 6,500,000 Pennsylvania Certificates of Participation,
5.250%, 7/01/10 7/03 at 102 Aaa $ 6,521,710
1,000,000 Pennsylvania General Obligation, 5.300%, 5/01/04 No Opt. Call AA- 1,044,090
10,000,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, Alternative Minimum Tax,
6.050%, 1/01/19 1/03 at 102 Aaa 10,414,200
11,500,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, 4.625%, 12/01/00 No Opt. Call AAA 11,512,190
Pennsylvania Higher Educational Facilities Authority:
7,000,000 5.700%, 6/15/15 6/03 at 100 Aaa 7,133,840
1,805,000 7.625%, 7/01/15 No Opt. Call Aaa 2,250,348
1,840,000 Pennsylvania Higher Educational Facilities Authority
(Carnegie Mellon University), 6.000%, 11/01/03 No Opt. Call AA- 2,014,763
5,025,000 Pennsylvania Higher Educational Facilities Authority
(University of Pennsylvania), 6.625%, 1/01/17 1/97 at 100 Aa 5,128,565
1,250,000 Pennsylvania Higher Educational Facilities Authority
(Allegheny College), 6.000%, 11/01/22 11/03 at 102 BBB+ 1,252,175
4,140,000 Pennsylvania Higher Educational Facilities Authority
(Duquesne University), 5.500%, 9/01/20 9/03 at 102 Aaa 4,156,601
1,450,000 Pennsylvania Higher Educational Facilities Authority
(Drexel University), 6.375%, 5/01/17 5/03 at 102 BBB+ 1,508,798
4,615,000 Pennsylvania Higher Educational Facilities Authority
(Widener University), 5.250%, 7/15/11 7/03 at 102 AAA 4,590,633
Pennsylvania Higher Educational Facilities Authority
(Thomas Jefferson University):
1,000,000 5.300%, 11/01/15 11/03 at 102 Aa 994,460
6,365,000 6.000%, 7/01/19 7/99 at 102 Aa 6,534,118
Pennsylvania Housing Finance Agency, Rental
Housing (FNMA):
5,000,000 6.400%, 7/01/12 7/02 at 102 Aaa 5,155,200
1,500,000 5.750%, 7/01/14 7/03 at 102 Aaa 1,519,710
9,625,000 5.800%, 7/01/18 7/03 at 102 Aaa 9,715,956
11,000,000 Pennsylvania Housing Finance Agency, Single
Family Mortgage, Alternative Minimum Tax,
5.600%, 10/01/25 10/03 at 102 Aa 10,494,330
2,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, 5.450%, 10/01/17 10/03 at 102 Aa 1,935,500
Pennsylvania Industrial Development Authority:
2,000,000 7,000%, 7/01/06 No Opt. Call Aaa 2,355,200
1,550,000 7.000%, 1/01/07 No Opt. Call Aaa 1,835,262
1,000,000 7.000%, 7/01/07 No Opt. Call Aaa 1,191,790
Pennsylvania State University:
2,000,000 6.750%, 7/01/14 (Pre-refunded to 7/01/99) 7/99 at 102 N/R 2,205,420
8,850,000 5.500%, 8/15/16 8/02 at 102 AA- 8,918,853
8,000,000 Pennsylvania Turnpike Commission, 5.500%, 12/01/17 12/02 at 102 Aaa 8,030,400
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 4,500,000 Allegheny County (Pittsburgh International Airport),
Alternative Minimum Tax, 5.625%, 1/01/23 1/03 at 102 Aaa $ 4,487,580
750,000 Allegheny County Hospital Development Authority
(Rehabilitation Institute of Pittsburgh),
7.000%, 6/01/22 6/02 at 102 BBB 774,953
Allegheny County Hospital Development Authority
(Presbyterian University Health System):
3,000,000 6.250%, 11/01/23 11/02 at 100 Aaa 3,155,310
5,000,000 6.000%, 11/01/23 11/02 at 102 Aaa 5,195,750
1,625,000 Allegheny County Residential Finance Authority,
Single Family Mortgage, Alternative Minimum
Tax, 5.625%, 11/01/23 11/03 at 102 Aaa 1,559,838
1,070,000 Allegheny Composite Housing Development
Corporation, FHA-Insured Mortgage (Grayson
Court Project), 6.100%, 2/01/24 8/03 at 100 Aa 1,079,619
1,070,000 Berks County General Obligation, 7.800%, 11/15/05
(Pre-refunded to 11/15/98) 11/98 at 100 Aaa 1,180,649
9,065,000 Bethlehem Area School District, General Obligation,
5.600%, 9/01/12 3/01 at 100 Aaa 9,248,657
Bethlehem Authority Water System:
3,785,000 6.100%, 11/15/18 (Pre-refunded to 11/15/02) 11/02 at 100 Aaa 4,172,508
3,100,000 6.100%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 100 Aaa 3,417,378
4,345,000 Bucks County Redevelopment Authority (Country
Commons Apartments), Alternative Minimum Tax,
6.200%, 8/01/14 8/03 at 100 A 4,415,563
3,000,000 Bucks County Water and Sewer Authority,
5.400% 12/01/12 12/03 at 100 Aaa 3,031,830
2,500,000 Delaware County General Obligation,
6.000%, 11/15/22 11/02 at 100 Aa 2,569,875
Delaware County Authority (Crozer-Chester Medical
Center):
1,000,000 6.000%, 12/15/09 12/03 at 102 Baa1 1,021,010
2,100,000 5.300%, 12/15/11 12/03 at 102 Aaa 2,111,088
4,085,000 6.000%, 12/15/20 12/03 at 102 Baa1 3,877,686
1,975,000 Delaware County Industrial Development Authority
(Philadelphia Suburban Water Company),
6.500%, 6/01/10 6/02 at 102 Aaa 2,173,290
2,000,000 Delaware River Port Authority, 5.300%, 1/01/10 1/06 at 102 Aaa 2,020,360
1,500,000 Fort LeBoeuf School District, General Obligation,
5.800%, 1/01/16 1/03 at 100 Aaa 1,538,565
2,000,000 Governor Mifflin School District, General Obligation,
5.400%, 9/15/12 9/03 at 100 Aaa 2,030,180
3,500,000 Hollidaysburg Sewer Authority, 6.100%, 1/01/23 1/03 at 100 Aaa 3,648,575
1,350,000 Lancaster Higher Education Authority (Franklin &
Marshall College), 5.700%, 4/15/13 4/03 at 100 Aaa 1,389,677
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Lehigh County General Purpose Authority (St. Luke's
Hospital of Bethlehem):
$ 1,335,000 5.300%, 11/15/05 No Opt. Call Aaa $ 1,391,751
500,000 5.300%, 11/15/06 No Opt. Call Aaa 517, 265
500,000 5.300%, 11/15/07 No Opt. Call Aaa 513,315
1,500,000 Ligonier Valley School District, General Obligation,
6.000%, 3/01/23 3/04 at 100 Aaa 1,564,230
1,805,000 Luzerne County Housing Corporation,
6.125%, 7/15/23 7/03 at 100 Aaa 1,832,923
Luzerne County Industrial Development Authority
(Pennsylvania Gas and Water Company),
Alternative Minimum Tax:
7,350,000 7.200%, 10/01/17 10/02 at 102 Baa3 7,788,942
4,500,000 7.125%, 12/01/22 12/02 at 102 Baa3 4,725,090
2,500,000 Montgomery County Higher Educational and Health
Authority (Abington Memorial Hospital),
6.000%, 6/01/22 6/03 at 102 Aaa 2,602,950
2,165,000 Montgomery County Industrial Development
Authority (ECRI Project), 6.850%, 6/01/13 6/03 at 102 N/R 2,256,298
3,675,000 Montgomery County Industrial Development Authority,
Pollution Control (Philadelphia Electric Company),
6.700%, 12/01/21 12/01 at 102 Aaa 4,057,494
1,000,000 Montoursville Area School District, General
Obligation, 5.750%, 5/01/13 5/98 at 100 Aaa 1,011,780
1,500,000 Nazareth Area School District, General Obligation,
5.500%, 11/15/15 5/05 at 100 Aaa 1,510,275
2,000,000 New Morgan Industrial Development Authority,
Solid Waste Disposal, Alternative Minimum Tax,
6.500%, 4/01/19 4/04 at 102 A2 2,132,500
5,500,000 Northumberland County Industrial Development
Authority (Roaring Creek Water Company),
Alternative Minimum Tax, 6.375%, 10/15/23 10/03 at 102 N/R 5,335,880
4,830,000 Philadelphia Authority for Industrial Development
(PGH Development Corporation), 5.250%, 7/01/17 7/03 at 102 AA 4,568,262
4,000,000 Philadelphia Hospital and Higher Educational
Facilities Authority (Philadelphia MR Project),
5.625%, 8/01/04 8/03 at 102 BBB+ 4,033,640
1,750,000 Philadelphia Hospital and Higher Educational
Facilities Authority (Graduate Health System),
6.250%, 7/01/13 7/03 at 102 Baa1 1,746,307
1,005,000 Philadelphia Hospital and Higher Educational
Facilities Authority (Community College of
Philadelphia), 6.100%, 5/01/10 5/04 at 102 Aaa 1,081,470
Philadelphia School District, General Obligation:
5,500,000 5.200%, 7/01/03 No Opt. Call Aaa 5,723,355
2,000,000 6.250%, 9/01/09 No Opt. Call Aaa 2,229,500
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Philadelphia Water and Sewer, 7.500%, 8/01/10
(Pre-refunded to 8/01/01) 8/01 at 102 AAA $ 1,175,380
Philadelphia Water and Wastewater System:
3,000,000 6.750%, 8/01/05 No Opt. Call Aaa 3,436,500
2,335,000 5.750%, 6/15/13 6/03 at 102 Aaa 2,414,974
2,300,000 5.500%, 6/15/14 6/03 at 102 Aaa 2,290,708
5,000,000 5.000%, 6/15/16 6/03 at 100 Aaa 4,810,900
1,500,000 5.000%, 6/15/19 6/03 at 100 Aaa 1,429,305
Philadelphia Hospital and Higher Educational
Facilities Authority (Presbyterian Medical Center
of Philadelphia):
1,000,000 6.500%, 12/01/11 12/03 at 102 A- 1,065,080
3,690,000 6.650%, 12/01/19 12/03 at 102 A- 4,440,915
Philadelphia Hospitals and Higher Educational
Facilities Authority (Children's Hospital of
Philadelphia):
7,250,000 5.375%, 2/15/14 2/03 at 102 Aa 7,117,833
1,750,000 6.500%, 2/15/21 (Pre-refunded to 2/15/02) 2/02 at 102 Aaa 1,976,258
10,000,000 Philadelphia Hospital and Higher Education
Facilities Authority (Temple University Hospital),
6.625%, 11/15/23 11/03 at 102 A- 10,425,800
6,300,000 Philadelphia Municipal Authority Justice Lease
Revenue, 7.125%, 11/15/18 (Pre-refunded
to 11/15/01) 11/01 at 102 Aaa 7,327,719
2,940,000 Philadelphia Municipal Authority, 5.625%, 11/15/18 11/03 at 102 Aaa 2,970,870
1,750,000 Pine-Richland School District, General Obligation,
6.100%, 9/01/18 9/03 at 100 Aaa 1,836,608
1,500,000 Pittsburgh School District, General Obligation,
5.500%, 9/01/16 9/01 at 101 Aaa 1,498,950
Pittsburgh Urban Redevelopment Authority,
Alternative Minimum Tax:
750,000 6.950%, 10/01/10 4/04 at 102 A1 802,703
2,460,000 6.800%, 10/01/25 4/03 at 102 A1 2,560,688
Pittsburgh Urban Redevelopment Authority:
1,375,000 6.500%, 4/01/17 4/03 at 102 A1 1,430,055
2,370,000 5.650%, 10/01/24 10/03 at 102 A1 2,285,035
3,660,000 Rose Tree Media School District, General Obligation,
6.700%, 3/15/12 (Pre-refunded to 9/15/01) 9/01 at 100 Aaa 4,108,204
2,500,000 Schuylkill Valley School District, General Obligation,
5.850%, 4/15/13 4/03 at 100 Aaa 2,599,075
South Fork Municipal Authority (Lee Hospital):
1,850,000 5.500%, 7/01/11 7/03 at 102 A 1,854,736
3,000,000 5.500%, 7/01/23 7/03 at 102 A 2,816,400
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,340,000 State Public School Building Authority
(Northampton County Area Community College),
5.850%, 3/15/15 3/03 at 100 Aaa $ 3,469,893
2,345,000 Swissvale Housing Development Corporation,
6.100%, 7/01/22 7/03 at 100 Aa 2,363,221
5,360,000 University of Pittsburgh, 6.125%, 6/01/21 6/02 at 102 Aaa 5,644,025
4,000,000 Wallenpaupack Area School District, General
Obligation, 5.500%, 4/01/11 4/01 at 100 Aaa 4,066,160
3,000,000 Washington County Hospital Authority (The
Washington Hospital), 5.625%, 7/01/23 7/03 at 102 Aaa 3,021,930
1,650,000 West View Municipal Authority, 9.500%, 11/15/14 No Opt. Call Aaa 2,382,385
1,740,000 Wilkes-Barre General Municipal Authority (College
Misericordia), Alternative Minimum Tax,
7.750%, 12/01/12 12/02 at 102 N/R 1,922,456
$323,965,000 Total Investments - (cost $323,929,791) - 97.8% 334,682,046
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.0%
$ 3,400,000 Schuylkill County Industrial Development Authority,
============
Resource Recovery (Northeastern Power Co.
Project), Variable Rate Demand Bonds,
5.900%, 12/01/11t A-1 3,400,000
Other Assets Less Liabilities - 1.2% 4,016,930
Net Assets - 100% $342,098,976
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 60 $207,240,427 62%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 54,763,489 16
PORTFOLIO OF A+ A1 4 7,078,481 2
INVESTMENTS A, A- A, A2, A3 7 27,150,994 8
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 9 26,728,601 8
TEMPORARY Non-rated Non-rated 4 11,720,054 4
INVESTMENTS):
TOTAL 97 $334,682,046 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $422,183,690 $257,299,616 $357,860,394 $334,682,046
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 5,600,000 7,500,000 1,465,000 3,400,000
Cash 174,555 561,805 180,297 58,766
Receivables:
Interest 8,008,203 4,407,630 6,614,962 5,364,942
Investments sold 2,249,100 350,000 -- 15,000
Other assets 34,157 40,036 26,303 58,648
------------ ------------ ------------ ------------
Total assets 438,249,705 270,159,087 366,146,956 343,579,402
------------ ------------ ------------ ------------
LIABILITIES
Payable for investments purchased 3,561,790 -- -- --
Accrued expenses:
Management fees (note 6) 232,369 145,652 196,164 184,162
Other 153,550 197,043 189,712 191,604
Preferred share dividends payable 60,984 32,098 41,254 73,200
Common share dividends payable 1,518,508 800,450 1,768,230 1,031,460
Capital gains distribution payable -- -- 78,230 --
------------ ------------ ------------ ------------
Total liabilities 5,527,201 1,175,243 2,273,590 1,480,426
------------ ------------ ------------ ------------
Net assets (note 7) $432,722,504 $268,983,844 $363,873,366 $342,098,976
============ ============ ============ ============
Preferred shares, at liquidation value $130,000,000 $ 91,600,000 $110,000,000 $118,100,000
============ ============ ============ ============
Preferred shares outstanding 5,200 3,664 4,400 4,724
============ ============ ============ ============
Common shares outstanding 19,344,042 11,858,499 15,555,679 15,747,463
============ ============ ============ ============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 15.65 $ 14.96 $ 16.32 $ 14.22
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended December 31, 1995
(Unaudited)
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $13,041,044 $ 7,582,141 $11,398,737 $ 9,641,914
----------- ----------- ----------- -----------
Expenses:
Management fees (note 6) 1,360,095 846,129 1,151,822 1,067,496
Preferred shares--auction fees 163,687 115,337 138,504 148,703
Preferred shares--dividend disbursing agent fees 15,124 22,665 15,110 22,686
Shareholders' servicing agent fees and expenses 32,267 42,239 45,370 56,975
Custodian's fees and expenses 31,167 38,830 34,502 33,759
Directors'/Trustees' fees and expenses (note 6) 1,141 984 1,480 1,728
Professional fees 4,247 9,372 15,847 19,862
Shareholders' reports--printing and mailing expenses 60,546 30,101 39,021 17,895
Stock exchange listing fees 17,653 9,519 8,932 7,729
Investor relations expense 20,190 12,831 12,009 10,522
Other expenses 16,097 20,905 13,081 13,509
----------- ----------- ----------- -----------
Total expenses 1,722,214 1,148,912 1,475,678 1,400,864
----------- ----------- ----------- -----------
Net investment income 11,318,830 6,433,229 9,923,059 8,241,050
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (141,585) 93,749 475,346 18,821
Net change in unrealized appreciation or depreciation
of investments 11,777,479 11,613,923 7,582,144 15,522,893
----------- ----------- ----------- -----------
Net gain from investments 11,635,894 11,707,672 8,057,490 15,541,714
----------- ----------- ----------- -----------
Net increase in net assets from operations $22,954,724 $18,140,901 $17,980,549 $23,782,764
=========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQJ NNJ
6 months ended Year ended 6 months ended Year ended
12/31/95 6/30/95 12/31/95 6/30/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 11,318,830 $ 18,463,529 $ 6,433,229 $ 8,563,601
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (141,585) 10,875 93,749 (1,062,514)
Net change in unrealized appreciation or depreciation
of investments 11,777,479 11,002,142 11,613,923 7,717,615
------------ ------------ ------------ ------------
Net increase in net assets from operations 22,954,724 29,476,546 18,140,901 15,218,702
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (9,157,825) (15,185,945) (4,802,670) (6,272,466)
Preferred shareholders (2,315,943) (3,677,673) (1,605,177) (2,235,019)
From accumulated net realized gains from investment
transactions:
Common shareholders -- (245,839) -- (71,491)
Preferred shareholders -- (31,040) -- (16,688)
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (11,473,768) (19,140,497) (6,407,847) (8,595,664)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition of
NUJ (note 1) -- 150,384,883 -- --
Net proceeds from shares issued in acquisition of
NJP and NJU (note 1) -- -- -- 137,170,244
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net realized
gains from investment transactions 297,982 504,967 -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions 297,982 150,889,850 -- 137,170,244
------------ ------------ ------------ ------------
Net increase in net assets 11,778,938 161,225,899 11,733,054 143,793,282
Net assets at beginning of period 420,943,566 259,717,667 257,250,790 113,457,508
------------ ------------ ------------ ------------
Net assets at end of period $432,722,504 $420,943,566 $268,983,844 $257,250,790
============ ============ ============ ============
Balance of undistributed net investment income at
end of period $ 606,015 $ 760,953 $ 535,914 $ 510,564
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQP NPY
6 months ended Year ended 6 months ended Year ended
12/31/95 6/30/95 12/31/95 6/30/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 9,923,059 $ 15,140,351 $ 8,241,050 $ 10,927,863
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 475,346 337,814 18,821 (437,728)
Net change in unrealized appreciation or depreciation
of investments 7,582,144 10,175,559 15,522,893 11,453,910
------------ ------------ ------------ ------------
Net increase in net assets from operations 17,980,549 25,653,724 23,782,764 21,944,045
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (8,200,501) (12,146,828) (6,236,027) (8,077,846)
Preferred shareholders (2,008,874) (3,068,414) (2,218,555) (2,951,304)
From accumulated net realized gains from investment
transactions:
Common shareholders (473,871) -- -- --
Preferred shareholders (132,928) -- -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (10,816,174) (15,215,242) (8,454,582) (11,029,150)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition of
NUP (note 1) -- 152,750,727 -- --
Net proceeds from shares issued in acquisition of
NPA and NAP (note 1) -- -- -- 176,762,321
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net realized
gains from investment transactions 877,997 923,694 -- 40,956
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions 877,997 153,674,421 -- 176,803,277
------------ ------------ ------------ ------------
Net increase in net assets 8,042,372 164,112,903 15,328,182 187,718,172
Net assets at beginning of period 355,830,994 191,718,091 326,770,794 139,052,622
------------ ------------ ------------ ------------
Net assets at end of period $363,873,366 $355,830,994 $342,098,976 $326,770,794
============ ============ ============ ============
Balance of undistributed net investment income at
end of period $ 545,871 $ 832,187 $ 283,521 $ 497,032
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At December 31, 1995, the state Funds (the "Funds") covered in this report and
their corresponding New York Stock Exchange symbols are Nuveen New Jersey
Investment Quality Municipal Fund, Inc. (NQJ), Nuveen New Jersey Premium
Income Municipal Fund, Inc. (NNJ), Nuveen Pennsylvania Investment Quality
Municipal Fund (NQP) and Nuveen Pennsylvania Premium Income Municipal Fund 2
(NPY).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
On January 10, 1995, NQJ acquired all of the net assets of NUJ pursuant to a
plan of reorganization approved by the shareholders of the Funds on December
22, 1994. The acquisition was accomplished by a tax-free exchange of 7,093,734
shares of NQJ for the 7,251,162 shares of NUJ outstanding on January 10, 1995.
NUJ's net assets at that date of $150,384,883 included $214,743 of unrealized
depreciation and $50,000,000 of preferred shares at liquidation value which
was combined with that of NQJ. The combined net assets of NQJ immediately
after the acquisition were $403,464,971.
On February 6, 1995, NNJ acquired all of the net assets of NJP and NJU
pursuant to a plan of reorganization approved by the shareholders of the Funds
on January 13, 1995. The acquisition was accomplished by a tax-free exchange
of 6,401,176 shares of NNJ for the 4,857,358 shares of NJP and the 2,084,643
shares of NJU outstanding on February 6, 1995. NJP's and NJU's net assets at
that date of $96,377,670 and $40,792,574, respectively, included unrealized
depreciation of $4,881,709 and $1,282,356, respectively, as well as
$36,000,000 and $15,600,000 of preferred shares at liquidation value,
respectively, which were combined with that of NNJ. The combined net assets of
NNJ immediately after the acquisition were $250,123,139.
On January 9, 1995, NQP acquired all of the net assets of NUP pursuant to a
plan of reorganization approved by the shareholders of the Funds on December
22, 1994. The acquisition was accomplished by a tax-free exchange of 6,940,191
shares of NQP for the 7,142,414 shares of NUP outstanding on January 9, 1995.
NUP's net assets at that date of $152,750,727 included $3,801,585 of
unrealized appreciation and $50,000,000 of preferred shares at liquidation
value which was combined with that of NQP. The combined net assets of NQP
immediately after the acquisition were $338,903,055.
<PAGE>
On February 7, 1995, NPY acquired all of the net assets of NPA and NAP
pursuant to a plan of reorganization approved by the shareholders of the Funds
on January 13, 1995. The acquisition was accomplished by a tax-free exchange
of 8,799,348 shares of NPY for the 5,803,736 shares of NPA and the 2,820,654
shares of NAP outstanding on February 7, 1995. NPA's and NAP's net assets at
that date of $121,701,228 and $55,061,093, respectively, included unrealized
depreciation of $3,152,366 and $3,900,897, respectively, as well as
$45,000,000 and $21,100,000 of preferred shares at liquidation value,
respectively, which were combined with that of NPY. The combined net assets of
NPY immediately after the acquisition were $316,143,201.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Directors/Trustees. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At December 31, 1995, NQJ had outstanding purchase commitments of
$3,561,790. There were no such purchase commitments in any of the other Funds.
<PAGE>
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each New Jersey Fund intends to satisfy conditions which will
enable interest from municipal securities, which is exempt from regular
federal and New Jersey state income taxes, to retain such tax exempt status
when distributed to the shareholders of the New Jersey Funds. Each
Pennsylvania Fund intends to satisfy conditions which will enable interest
from municipal securities, which is exempt from regular federal, Pennsylvania
Personal Income and the Philadelphia School District Investment Income taxes,
to retain such tax exempt status when distributed to shareholders of the
Pennsylvania Funds. Capital gain distributions are subject to federal taxation
and may be subject to state and local taxation.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of net realized capital gains, if
applicable.
<PAGE>
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in more than one Series. The
dividend rate on each Series may change every seven days, as set by the
Auction Agent. The number of shares outstanding by Series and in total, at
December 31, 1995, for each Fund is as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Number of shares:
Series M 3,200 -- -- 844
Series T -- 624 -- --
Series W -- 1,440 2,400 --
Series Th 2,000 1,600 2,000 2,080
Series F -- -- -- 1,800
----- ----- ----- -----
Total 5,200 3,664 4,400 4,724
===== ===== ===== =====
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments which
prescribes disclosure requirements for transactions in certain derivative
financial instruments including futures, forward, swap, and option contracts,
and other financial instruments with similar characteristics. Although the
Funds are authorized to invest in such financial instruments, and may do so in
the future, they did not make any such investments during the six months ended
December 31, 1995.
</TABLE>
<PAGE>
<TABLE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<CAPTION>
NQJ NNJ
6 months ended Year ended 6 months ended Year ended
12/31/95 6/30/95 12/31/95 6/30/95
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NUJ (see note 1) -- 7,093,734 -- --
Shares issued in acquisition of NJP and NJU
(see note 1) -- -- -- 6,401,176
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment
transactions 19,540 33,541 -- --
------ --------- ----- ---------
Net increase 19,540 7,127,275 -- 6,401,176
====== ========= ===== =========
Preferred shares acquired from NUJ (see note 1) -- 2,000 -- --
Preferred shares acquired from NJP and NJU
(see note 1) -- -- -- 2,064
====== ========= ===== =========
<CAPTION>
NQP NPY
6 months ended Year ended 6 months ended Year ended
12/31/95 6/30/95 12/31/95 6/30/95
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NUP (see note 1) -- 6,940,191 -- --
Shares issued in acquisition of NPA and NAP
(see note 1) -- -- -- 8,799,348
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment
transactions 53,905 58,618 -- 3,244
------ --------- ----- ---------
Net increase 53,905 6,998,809 -- 8,802,592
====== ========= ===== =========
Preferred shares acquired from NUP (see note 1) -- 2,000 -- --
Preferred shares acquired from NPA and NAP
(see note 1) -- -- -- 2,644
====== ========= ===== =========
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
December 31, 1995, were as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $53,293,908 $55,514,677 $24,575,186 $33,273,683
Temporary municipal investments 30,300,000 28,700,000 21,965,000 19,600,000
SALES AND MATURITIES
Investments in municipal securities 48,172,538 60,988,099 20,084,973 29,705,777
Temporary municipal investments 27,750,000 23,550,000 26,196,000 23,200,000
=========== =========== =========== ===========
At December 31, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At June 30, 1995, the Funds' last fiscal year end, the following Funds had
unused capital loss carryovers available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryovers
will expire as follows:
<CAPTION>
NQJ* NNJ** NPYt
<S> <C> <C> <C>
Expiration year:
2001 $ -- $ 1,784 $ 1,545
2002 40,744 4,076,151 1,489,452
2003 -- 129,409 669,824
------- ---------- ----------
Total $40,744 $4,207,344 $2,160,821
======= ========== ==========
<FN>
* Due to the acquisition of NUJ and NQJ (note 1), NUJ had net realized losses
from investment transactions of $40,744 which were carried forward by NQJ, as
permitted under applicable tax regulations.
** Due to the acquisition of NJP and NJU by NNJ (note 1), NJP and NJU had net
realized losses from investment transactions of $1,927,140 and $2,150,795,
respectively, which were carried forward by NNJ as permitted under applicable
tax regulations.
t Due to the acquisition of NPA and NAP by NPY (note 1), NPA and NAP had net
realized losses from investment transactions of $475,357 and $996,407,
respectively, which were carried forward by NPY, as permitted under applicable
tax regulations.
</TABLE>
<PAGE>
<TABLE>
4. Distributions to COMMON Shareholders
On January 2, 1996, the Funds declared Common share dividend distributions
from their ordinary income which were paid February 1, 1996, to shareholders
of record on January 15, 1996, as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Dividend per share $.0785 $.0675 $.0880 $.0655
====== ====== ====== ======
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of
investments at December 31, 1995, were as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $30,786,416 $10,717,652 $34,248,408 $11,804,079
Depreciation (8,359) (149,042) -- (1,051,824)
----------- ----------- ----------- -----------
Net unrealized appreciation $30,778,057 $10,568,610 $34,248,408 $10,752,255
=========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors/Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. Composition of Net Assets
At December 31, 1995, net assets consisted of:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $130,000,000 $ 91,600,000 $110,000,000 $118,100,000
Common shares, $.01 par value per share 193,440 118,585 155,557 157,475
Paid-in surplus 271,327,321 170,274,330 218,893,917 215,278,351
Balance of undistributed net investment income 606,015 535,914 545,871 283,521
Accumulated net realized gain (loss) from investment
transactions (182,329) (4,113,595) 29,613 (2,472,626)
Net unrealized appreciation or depreciation of
investments 30,778,057 10,568,610 34,248,408 10,752,255
------------ ------------ ------------ ------------
Net assets $432,722,504 $268,983,844 $363,873,366 $342,098,976
============ ============ ============ ============
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
8. Investment Composition
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At December 31, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NQJ NNJ NQP NPY
<S> <C> <C> <C> <C>
Revenue Bonds:
Educational Facilities 3% 7% 13% 23%
Health Care Facilities 12 9 12 17
Transportation 8 17 6 4
Housing Facilities 14 8 9 14
Pollution Control Facilities 12 11 10 10
Lease Rental Facilities 8 9 -- 3
Water / Sewer Facilities 5 5 3 6
Electric Utilities 2 1 -- --
Other 6 11 4 --
General Obligation Bonds 18 14 4 13
Escrowed Bonds 12 8 39 10
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (47% for NQJ, 46% for NNJ, 69% for NQP and
52% for NPY). Such insurance or escrow, however, does not guarantee the market
value of the municipal securities or the value of any of the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as follows:
Operating performance Divdends from net investment income
Net
realized &
unrealized
Net asset Net gain (loss)
value invest- from To To
beginning ment invest- Common Preferred
of period income mentstt shareholders shareholderst
NQJ
<S> <C> <C> <C> <C> <C>
6 mos. ended
12/31/95 $15.060 $ .585 $ .599 $ (.474) $(.120)
Year ended 6/30,
1995 14.730 1.200 .396 (1.007) (.237)
1994 15.880 1.198 (1.061) (1.074) (.141)
1993 14.820 1.209 1.045 (.997) (.169)
8 mos. ended
6/30/92 14.320 .824 .451 (.620) (.155)
2/21/91 to
10/31/91 14.050 .614 .447 (.490) (.116)
<CAPTION>
NNJ
<S> <C> <C> <C> <C> <C>
6 mos. ended
12/31/95 13.970 .542 .988 (.405) (.135)
Year ended
6/30/95 13.460 1.063 .549 (.805) (.282)
11 mos. ended
6/30/94 14.520 .941 (1.120) (.713) (.168)
12/17/92 to
7/31/93 14.050 .397 .674 (.335) (.055)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organiza- Common
tion and share
offering costs market
To To and Preferred Net asset value
Common Preferred underwriting value end end of
shareholders shareholderst discounts of period period
NQJ
<S> <C> <C> <C> <C> <C>
6 mos. ended
12/31/95 $ -- $ -- $ -- $15.650 $15.625
Year ended 6/30,
1995 (.020) (.002) -- 15.060 14.625
1994 (.062) (.010) -- 14.730 15.250
1993 (.023) (.005) -- 15.880 17.125
8 mos. ended
6/30/92 -- -- -- 14.820 15.375
2/21/91 to
10/31/91 -- -- (.185) 14.320 15.500
<CAPTION>
NNJ
<S> <C> <C> <C> <C> <C>
6 mos. ended
12/31/95 -- -- -- 14.960 13.250
Year ended
6/30/95 (.013) (.002) -- 13.970 13.250
11 mos. ended
6/30/94 -- -- -- 13.460 12.375
12/17/92 to
7/31/93 -- -- (.211) 14.520 15.000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets@ net assets@ rate
NQJ
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
12/31/95 10.22% 7.18% $432,723 .80%* 5.28%* 12%
Year ended 6/30,
1995 3.03 9.71 420,944 .85 5.57 13
1994 (4.63) (.27) 259,718 .82 5.39 5
1993 18.71 14.57 270,878 .83 5.53 12
8 mos. ended
6/30/92 3.29 8.03 255,602 .76* 5.84* 6
2/21/91 to
10/31/91 6.61 5.52 248,154 .76* 5.06* 1
<CAPTION>
NNJ
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
12/31/95 3.14 10.14 268,984 .87* 4.87* 22
Year ended
6/30/95 14.60 10.39 257,251 .94 5.08 15
11 mos. ended
6/30/94 (13.16) (2.61) 113,458 .92* 4.75* 12
12/17/92 to
7/31/93 2.27 5.78 118,885 .97* 3.75* 5
<FN>
See notes on page 54.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as follows:
Operating performance Dividends from net investment income
Net
realized &
unrealized
Net asset Net gain (loss)
value invest- from To To
beginning ment invest- Common Preferred
of period income mentstt shareholders shareholderst
<S> <C> <C> <C> <C> <C>
NQP
6 mos. ended
12/31/95 $15.860 $ .639 $ .518 $ (.528) $(.129)
Year ended 6/30,
1995 15.490 1.289 .409 (1.066) (.262)
1994 16.420 1.298 (.863) (1.157) (.162)
1993 15.140 1.309 1.276 (1.124) (.181)
8 mos. ended
6/30/92 14.600 .882 .492 (.664) (.170)
2/21/91 to
10/31/91 14.050 .682 .706 (.498) (.123)
<CAPTION>
NPY
<S> <C> <C> <C> <C> <C>
6 mos. ended
12/31/95 13.250 .523 .984 (.396) (.141)
Year ended 6/30,
1995 12.530 1.053 .761 (.808) (.286)
1994 14.350 .995 (1.708) (.790) (.179)
3/18/93 to
6/30/93 14.050 .111 .308 (.065) --
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organiza- Common
tion and share
offering costs market
To To and Preferred Net asset value
Common Preferred underwriting value end end of
shareholders shareholderst discounts of period period
<S> <C> <C> <C> <C> <C>
NQP
6 mos. ended
12/31/95 $(.031) $(.009) $ -- $16.320 $17.125
Year ended 6/30,
1995 -- -- -- 15.860 15.500
1994 (.040) (.006) -- 15.490 16.250
1993 -- -- -- 16.420 17.500
8 mos. ended
6/30/92 -- -- -- 15.140 15.750
2/21/91 to
10/31/91 -- -- (.217) 14.600 15.500
<CAPTION>
NPY
<S> <C> <C> <C> <C> <C>
6 mos. ended
12/31/95 -- -- -- 14.220 12.375
Year ended 6/30,
1995 -- -- -- 13.250 12.875
1994 -- -- (.138) 12.530 12.375
3/18/93 to
6/30/93 -- -- (.054) 14.350 14.625
<PAGE>
<CAPTION>
Ratio/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets@ net assets@ rate
<S> <C> <C> <C> <C> <C> <C>
NQP
6 mos. ended
12/31/95 14.33% 6.53% $363,873 .81%* 5.48%* 6%
Year ended 6/30,
1995 2.32 9.77 355,831 .87 5.70 9
1994 (.39) 1.23 191,718 .84 5.54 3
1993 18.83 16.50 197,920 .86 5.73 2
8 mos. ended
6/30/92 5.97 8.48 185,576 .78* 6.04* --
2/21/91 to
10/31/91 6.71 7.61 180,203 .81* 5.50* --
<CAPTION>
NPY
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
12/31/95 (.73) 10.48 342,099 .84* 4.92* 9
Year ended 6/30,
1995 11.50 12.87 326,771 .92 5.20 5
1994 (10.29) (7.60) 139,053 .90 4.70 11
3/18/93 to
6/30/93 (2.08) 2.60 99,561 .92* 2.99* --
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share.Total Return on Net Asset Value is the combination of
reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
t The amounts shown are based on Common share equivalents.
tt Net of taxes, if applicable (see note 1).
@ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
Your investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and
in the future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF2-FEB 96
