Nuveen Exchange-Traded Funds
JUNE 30, 1997
Annual Report
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NQJ
NNJ
New Jersey
NQP
NPY
Pennsylvania
Photographic image of woman and man gardening.
<PAGE>
Build Your Wealth Automatically
Managing your portfolio takes skill, experience, and informed judgment, but our
efforts to help you build your wealth don't stop there. At Nuveen, we offer a
number of convenient ways to add to your tax-free portfolio and earn the
tax-free income you need to achieve your financial goals.
Nuveen exchange-traded funds dividend reinvestment plan
Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check, or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also benefit from dollar-cost averaging, a technique of
investing at regular intervals, which allows you to build a high-quality,
tax-free portfolio conveniently and cost-effectively over time. All
reinvestments are invested in full fractional shares and are kept in
non-certificated form by the Plan Agent, Chase Manhattan Bank.
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
The shares you acquire by reinvesting will either be purchased on the open
market or be newly issued by the fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will be
invested within 30 days of the dividend payment date; no interest will be paid
on dividends and distributions awaiting reinvestment. Because the market price
of shares may increase
(continued on inside back cover)
<PAGE>
Contents
2 DEAR SHAREHOLDER
4 ANSWERING YOUR QUESTIONS
6 NEW JERSEY INVESTMENT QUALITY OVERVIEW
7 NEW JERSEY PREMIUM INCOME OVERVIEW
8 PENNSYLVANIA INVESTMENT QUALITY OVERVIEW
9 PENNSYLVANIA PREMIUM INCOME 2 OVERVIEW
10 INDEPENDENT AUDITOR'S REPORT
11 PORTFOLIO OF INVESTMENTS
40 STATEMENT OF NET ASSETS
42 STATEMENT OF OPERATIONS
44 STATEMENT OF CHANGES IN NET ASSETS
46 NOTES TO FINANCIAL STATEMENTS
54 FINANCIAL HIGHLIGHTS
56 FUND INFORMATION
Screened image of woman and man gardening.
<PAGE>
Dear Shareholder
Photographic image of Timothy R. Schwertfeger, CEO.
"In addition to solid returns, shareholders continue to enjoy very attractive
current yields generated by portfolios of quality bonds."
It's a pleasure to report to you on the performance of the New Jersey and
Pennsylvania exchange-traded funds. For the fiscal year ended June 30, 1997, the
value of your investment rose between 8.01% and 10.61% if you chose to reinvest
your tax-free income dividends and capital gain distribution, if any.
Over this 12-month period, the total return performance for three out of four of
these funds outpaced the 8.25% increase (with income reinvested) produced by the
Lehman Brothers Municipal Bond Index, which represents the municipal bond market
on an unmanaged basis.
In addition to solid returns, shareholders in the New Jersey and Pennsylvania
funds continued to enjoy very attractive current yields generated by a portfolio
of quality bonds, which provide excellent income for investors. As of June 30,
1997, shareholders were receiving annual tax-free yields on net asset value that
ranged from 5.75% to 5.97%. To match these yields, investors in the 31% federal
income tax bracket would have had to earn at least 8.33% on taxable alternatives
of comparable quality. Factoring in the after-tax advantage of single-state
municipal bond funds makes the yield comparison even more dramatic.
These results were produced in an environment of continued economic
expansion and the lowest unemployment rates in almost two decades, a combination
that in the past has predictably been accompanied by an increase in inflation.
Current conditions, however, give every indication that inflation is well under
control. After tightening short-term interest rates by 0.25% in March, the
Federal Reserve demonstrated its confidence in the path the economy is taking by
maintaining the status quo at subsequent meetings in May and July. In the first
half of the year, investors and the markets focused their attention on fiscal
issues such as the federal budget accord and tax cut measures, including a
reduction in the capital gains tax. As the economy showed evidence of
moderation, corporate earnings reports continued to exhibit strength, and
interest rates fell in the second quarter. of this is positive news. The net
effect is that, although we have experienced some volatility, the markets have
performed very well this year and continue to improve.
<PAGE>
Recently, the need for diversification and a renewed emphasis on asset
allocation - as well as attractive tax-free yields - have sparked increased
interest in municipal bonds. The current level of the stock market reminds
investors to re-allocate profits to other segments of the market in order to
limit risk. Nuveen exchange-traded funds provide an excellent alternative, and
their current yields make them very attractive.
On behalf of everyone at Nuveen, I thank you for your confidence in us and our
family of investments. We will continue to strive to provide you with
high-quality investments that withstand the test of time. We look forward to
reporting to you again in six months.
Sincerely,
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
August 15, 1997
<PAGE>
Answering Your Questions
Photographic image of Tom Spalding, Portfolio Manager.
Tom Spalding, head of Nuveen's Chicago-based portfolio management team,
talks about the municipal bond market and offers insights into factors that
affected fund performance over the past year.
What are the investment objectives of these funds?
The primary investment objective of these funds is to maintain a high level of
current tax-free income consistent with the preservation of capital. Their
secondary objective is to enhance portfolio value through investments in state
tax-exempt municipal bonds that are either underrated or undervalued, or that
represent undervalued sectors of the municipal market.
What is your strategy for meeting these objectives?
To meet these funds' objectives of income and enhanced value, our portfolio
management strategy relies on conservative value investing principles, sound
research and credit surveillance activities, and senior management involvement.
At Nuveen, value investing means taking a fundamental approach to finding bonds
that offer the best balance of return and low risk. This approach focuses on the
characteristics of individual bonds, such as sector, geographic region,
structure, and intrinsic credit quality, rather than the direction of interest
rates. The idea behind this philosophy is that we, as investment managers, can
control the selection process, but not the direction of the market overall.
Our goal is to determine whether an issue is undervalued by the market, that is,
whether the bond's current market value, or price, is lower than its long-term
value, as evidenced by its yield, maturity, and credit quality. We also assess
whether the issue has the potential to reach that intrinsic value. For example,
we may find an opportunity to purchase bonds that offer extended call protection
at prices similar to bonds with shorter calls. If interest rates move down, the
bonds with longer call protection will appreciate in value more than those with
shorter calls. Such determinations require in-depth knowledge and understanding
of the municipal market, the issuers, and the characteristics of specific bonds.
Proper implementation of this strategy creates well-constructed portfolios
designed to provide shareholders with a dependable stream of tax-free income.
<PAGE>
What role does research play in helping you achieve the funds' objectives?
As an integral part of our portfolio management strategy, Nuveen Research
provides portfolio managers with objective appraisals of the creditworthiness of
new municipal issues while maintaining surveillance of the credit performance
for all portfolio holdings. Creditworthiness is evaluated through our research
into factors such as the credit history of the issuer, capital structure, total
debt load, revenue sources and projections, call provisions, and local economic
forecasts. To track the credit performance of individual holdings, each Nuveen
Research analyst is responsible for a specific surveillance portfolio, which is
defined in terms of geography and sector (e.g., healthcare, housing).
Specialization by sector enables members of our Research team to focus their
credit quality evaluation efforts and complement the vantage point of each
portfolio manager.
What is the current outlook for the municipal market?
As we make our way through the seventh year of the current expansion, some
observers believe that a fundamental shift may have occurred in our economy.
Based on past experience and months of reports of economic growth, especially
employment statistics, the markets have long been anticipating an increase in
inflation. However, even with almost full employment, we have not seen the
expected rise in hourly wages that would be considered inflationary. This change
in the traditional economic cause-and-effect relationship has been variously
attributed to the globalization of the economy, to increased efficiency through
the use of technology, and to corporations' recent ability to downsize as
necessary. Whatever the reason, inflation has not ignited. Although structural
changes in the economy appear to have suspended the usual relationship between
faster growth and higher inflation, the risk remains that inflation may reassert
itself if capacity constraints are reached and resources are stretched too thin.
Given these conditions, speculation about Fed tightening may continue. If the
Fed does act to increase interest rates, it will be perceived as a pre-emptive
move against inflation. If the Fed does not tighten, it will be seen as an
indication that the economy is moving at a moderate, non-inflationary pace.
Under either scenario, the outlook for the remainder of 1997 shows the municipal
market continuing to offer the attractive yields and tax advantages that make it
a good alternative if and when a correction in the stock market occurs. While
money continues to flow into equity mutual funds, investors are beginning to
evaluate the effect of the huge run-up in stock prices on their asset alloca-
tion, and many are rebalancing their portfolios by shifting some assets into
bonds.
<PAGE>
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
June 30, 1997 Annual Report
New Jersey Investment Quality
NQJ
Fund Highlights
- ----------------------------------------------------------
Inception Date 2/91
- ----------------------------------------------------------
Share Price 16 5/16
- ----------------------------------------------------------
Net Asset Value $15.41
- ----------------------------------------------------------
Current Yield 5.85%
- ----------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.48%
- ----------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 9.07%
- ----------------------------------------------------------
Annualized Total Return
- ----------------------------------------------------------
1-Year 8.92%
- ----------------------------------------------------------
3-Year 8.27%
- ----------------------------------------------------------
5-Year 7.71%
- ----------------------------------------------------------
Since Inception 8.23%
- ----------------------------------------------------------
Taxable Equivalent Total Return(2)
- ----------------------------------------------------------
1-Year 12.50%
- ----------------------------------------------------------
3-Year 11.94%
- ----------------------------------------------------------
5-Year 11.45%
- ----------------------------------------------------------
Since Inception 11.87%
- ----------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 35.5%.
2 Taxable equivalent total return is based on the annualized total return and a
federal and state income tax rate of 35.5%. It represents the return on a
taxable investment necessary to equal the after-tax return of the Nuveen fund.
PIE CHART:
Credit Quality
AAA 59%
AA 18%
A 7%
BBB 7%
BB 3%
NR 6%
PIE CHART:
Diversification
General Obligation 10%
Water & Sewer 8%
Health Care Facilities 12%
Transportation 11%
Utilities 5%
Housing Facilities 19%
Lease Rental 4%
Escrowed Bonds 21%
Other 10%
BAR CHART:
Dividend History
July 1996 .0785
August 1996 .0785
September 1996 .0785
October 1996 .0785
November 1996 .0795
December 1996 .0795
January 1997 .0795
February 1997 .0795
March 1997 .0795
April 1997 .0795
May 1997 .0795
June 1997 .0795
<PAGE>
Nuveen New Jersey Premium Income Municipal Fund, Inc.
June 30, 1997 Annual Report
New Jersey Premium Income
NNJ
Fund Highlights
- -----------------------------------------------------------
Inception Date 12/92
- -----------------------------------------------------------
Share Price 14 13/16
- -----------------------------------------------------------
Net Asset Value $14.71
- -----------------------------------------------------------
Current Yield 5.75%
- -----------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.33%
- -----------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.91%
- -----------------------------------------------------------
Annualized Total Return
- -----------------------------------------------------------
1-Year 9.94%
- -----------------------------------------------------------
3-Year 9.20%
- -----------------------------------------------------------
Since Inception 6.70%
- -----------------------------------------------------------
Taxable Equivalent Total Return(2)
- -----------------------------------------------------------
1-Year 13.30%
- -----------------------------------------------------------
3-Year 12.54%
- -----------------------------------------------------------
Since Inception 9.83%
- -----------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 35.5%.
2 Taxable equivalent total return is based on the annualized total return and a
federal and state income tax rate of 35.5%. It represents the return on a
taxable investment necessary to equal the after-tax return of the Nuveen fund.
PIE CHART:
Credit Quality
AAA 50%
AA 12%
A 19%
BBB 7%
BB 8%
NR 4%
PIE CHART:
Diversification
General Obligation 18%
Lease Rental 4%
Health Care Facilities 8%
Other 15%
Transportation 23%
Educational Facilities 8%
Escrowed Bonds 7%
Water & Sewer 6%
Housing Facilities 11%
BAR CHART:
Dividend History
July 1996 .0690
August 1996 .0690
September 1996 .0690
October 1996 .0690
November 1996 .0710
December 1996 .0710
January 1997 .0710
February 1997 .0710
March 1997 .0710
April 1997 .0710
May 1997 .0710
June 1997 .0710
<PAGE>
Nuveen Pennsylvania Investment Quality Municipal Fund
June 30, 1997 Annual Report
Pennsylvania Investment Quality
NQP
Fund Highlights
- ---------------------------------------------------------
Inception Date 2/91
- ---------------------------------------------------------
Share Price 16 7/8
- ---------------------------------------------------------
Net Asset Value $15.91
- ---------------------------------------------------------
Current Yield 5.97%
- ---------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.65%
- ---------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.91%
- ---------------------------------------------------------
Annualized Total Return
- ---------------------------------------------------------
1-Year 8.01%
- ---------------------------------------------------------
3-Year 7.90%
- ---------------------------------------------------------
5-Year 8.22%
- ---------------------------------------------------------
Since Inception 9.04%
- ---------------------------------------------------------
Taxable Equivalent Total Return(1)
- ---------------------------------------------------------
1-Year 11.28%
- ---------------------------------------------------------
3-Year 11.27%
- ---------------------------------------------------------
5-Year 11.72%
- ---------------------------------------------------------
Since Inception 12.44%
- ---------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 33%.
2 Taxable equivalent total return is based on the annualized total return and a
federal and state income tax rate of 33%. It represents the return on a
taxable investment necessary to equal the after-tax return of the Nuveen fund.
PIE CHART:
Credit Quality
AAA 59%
AA 22%
A 6%
BBB/NR 13%
PIECHART:
Diversification
Housing Facilities 12%
General Obligation 4%
Health Care Facilities 7%
Transportation 5%
Escrowed Bonds 46%
Pollution Control 6%
Utilities 4%
Other 5%
Educational Facilities 11%
BAR CHART:
Dividend History
July 1996 .0865
August 1996 .0840
September 1996 .0840
October 1996 .0840
November 1996 .0840
December 1996 .0840
January 1997 .0840
February 1997 .0840
March 1997 .0840
April 1997 .0840
May 1997 .0840
June 1997 .0840
<PAGE>
Nuveen Pennsylvania Premium Income Municipal Fund 2
June 30, 1997 Annual Report
Pennsylvania Premium Income 2
NPY
Fund Highlights
- ---------------------------------------------------------
Inception Date 3/93
- ---------------------------------------------------------
Share Price 13 3/8
- ---------------------------------------------------------
Net Asset Value $14.20
- ---------------------------------------------------------
Current Yield 5.83%
- ---------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.45%
- ---------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.70%
- ---------------------------------------------------------
Annualized Total Return
- ---------------------------------------------------------
1-Year 10.61%
- ---------------------------------------------------------
3-Year 10.58%
- ---------------------------------------------------------
Since Inception 5.98%
- ---------------------------------------------------------
Taxable Equivalent Total Return(2)
- ---------------------------------------------------------
1-Year 13.50%
- ---------------------------------------------------------
3-Year 13.63%
- ---------------------------------------------------------
Since Inception 8.83%
- ---------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 33%.
2 Taxable equivalent total return is based on the annualized total return and a
federal and state income tax rate of 33%. It represents the return on a
taxable investment necessary to equal the after-tax return of the Nuveen fund.
PIE CHART:
Credit Quality
AAA 73%
AA 16%
A 6%
BBB/NR 5%
PIE CHART:
Diversification
General Obligations 12%
Escrowed Bonds 7%
Health Care Facilities 16%
Utilities 4%
Educational Facilities 17%
Water & Sewer 6%
Pollution Control 11%
Housing Facilities 16%
Other 11%
BAR CHART:
Dividend History
July 1996 .0640
August 1996 .0640
September 1996 .0640
October 1996 .0640
November 1996 .0650
December 1996 .0650
January 1997 .0650
February 1997 .0650
March 1997 .0650
April 1997 .0650
May 1997 .0650
June 1997 .0650
<PAGE>
Independent Auditor's Report
THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen New Jersey Investment Quality Municipal
Fund, Inc., Nuveen New Jersey Premium Income Municipal Fund, Inc., Nuveen
Pennsylvania Investment Quality Municipal Fund and Nuveen Pennsylvania Premium
Income Municipal Fund 2 as of June 30, 1997, and the related statements of
operations, changes in net assets and the financial highlights for the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of June
30, 1997, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen New Jersey Investment Quality Municipal Fund, Inc., Nuveen New Jersey
Premium Income Municipal Fund, Inc., Nuveen Pennsylvania Investment Quality
Municipal Fund and Nuveen Pennsylvania Premium Income Municipal Fund 2 at June
30, 1997, and the results of their operations, changes in their net assets and
financial highlights for the periods then ended in conformity with generally
accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
August 14, 1997
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,100,000 The Delaware River and Bay Authority, Revenue Bonds, 1/06 at 102 Aaa $ 2,969,769
Series 1996, 5.250%, 1/01/26
330,000 Higher Education Assistance Authority (State of New 7/01 at 102 A 345,074
Jersey), Senior Student Loan Revenue Bonds, 1991
Series A, 7.200%, 7/01/09 (Alternative Minimum Tax)
400,000 New Jersey Economic Development Authority, Adjustable - 7/01 at 103 Baa1 431,516
Fixed Rate Pollution Control Revenue Bonds, 1985
Series (Jersey Central Power and Light Company
Project), 7.100%, 7/01/15
3,260,000 New Jersey Economic Development Authority, Natural 3/98 at 102 A 3,372,274
Gas Facilities Refunding Revenue Bonds, Series 1991A
(New Jersey Natural Gas Company Project),
7.050%, 3/01/16
2,000,000 New Jersey Economic Development Authority, Natural 3/98 at 102 A 2,069,860
Gas Facilities Revenue Bonds, Series 1991B (New
Jersey Natural Gas Company Project), 7.250%, 3/01/21
(Alternative Minimum Tax)
5,000,000 New Jersey Economic Development Authority, Gas 10/97 at 101 Baa1 5,083,650
Facilities Revenue Bonds, 1991 Series (Elizabethtown
Gas Company Project), 6.625%, 10/01/21 (Alternative
Minimum Tax) (Pre-refunded to 10/01/97)
5,600,000 New Jersey Economic Development Authority, Lease 3/02 at 102 Aaa 6,245,288
Rental Bonds, 1992 Series (Liberty State Park Project),
6.800%, 3/15/22 (Pre-refunded to 3/15/02)
1,300,000 New Jersey Economic Development Authority, Economic No Opt. Call N/R 1,345,383
Development Bonds, Bridgewater Resources Inc.,
Series 1991, 9.500%, 2/01/01 (Alternative Minimum Tax)
3,000,000 New Jersey Economic Development Authority, Economic 11/01 at 102 Baa2 3,240,690
Development Bonds (American Airlines, Inc. Project),
7.100%, 11/01/31 (Alternative Minimum Tax)
5,000,000 New Jersey Economic Development Authority, Water No Opt. Call N/R 5,110,550
Facilities Revenue Bonds, Series 1991 (New Jersey-
American Water Company, Inc. Project),
7.400%, 11/01/01 (Alternative Minimum Tax)
7,500,000 New Jersey Economic Development Authority, Water 5/06 at 102 Aaa 7,664,175
Facilities Revenue Bonds, New Jersey-American
Water Company, Series 96, 6.000%, 5/01/36
(Alternative Minimum Tax)
5,000,000 New Jersey Economic Development Authority, Economic 12/01 at 100 N/R 5,154,400
Development Revenue Bonds (J&J Snack Foods
Corporation of New Jersey Project), Series 91,
7.250%, 12/01/05 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
New Jersey Economic Development Authority Revenue Bonds (New
Jersey Performing Arts Center Site Acquisition Project),
1991 Series:
$ 610,000 6.600%, 6/15/04 (Pre-refunded to 6/15/01) 6/01 at 102 Aaa $ 669,573
3,800,000 6.750%, 6/15/12 (Pre-refunded to 6/15/01) 6/01 at 102 Aaa 4,191,628
New Jersey Educational Facilities Authority, Seton Hall
University Project Revenue Bonds, 1991 Series,
Project D:
500,000 6.875%, 7/01/10 (Pre-refunded to 7/01/01) 7/01 at 102 Baa1 531,240
2,500,000 7.000%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 Baa1 2,644,200
300,000 New Jersey Health Care Facilities Financing Authority, 7/00 at 102 Aaa 323,238
Revenue Bonds, Community Medical Center/
Kensington Manor Care Center Issue, Series E,
7.000%, 7/01/20
4,875,000 New Jersey Health Care Facilities Financing Authority, 7/01 at 102 Aaa 5,398,185
Revenue Bonds, St. Peter's Medical Center Issue,
Series E, 6.875%, 7/01/11 (Pre-refunded to 7/01/01)
3,600,000 New Jersey Health Care Facilities Financing Authority, 7/02 at 102 A- 3,894,156
Refunding Revenue Bonds, Atlantic City Medical
Center Issue, Series C, 6.800%, 7/01/05
7,500,000 New Jersey Health Care Facilities, Financing Authority, 7/01 at 102 Aaa 8,103,300
Revenue Bonds, JFK Health Systems, Obligated
Group Issue, Series 1991, 6.600%, 7/01/08
9,300,000 New Jersey Health Care Facilities Financing Authority, 7/01 at 102 Aaa 9,985,968
Revenue Bonds, Centrastate Medical Center Issue,
Series A, 6.625%, 7/01/11
3,000,000 New Jersey Health Care Facilities Financing Authority, 7/99 at 100 Aaa 3,092,220
Revenue Bonds, Beth Israel Hospital Association of
Passaic Issue, Series B, 6.250%, 7/01/14
2,070,000 New Jersey Health Care Facilities Financing Authority, 7/01 at 102 Aaa 2,222,683
Revenue Bonds, Robert Wood Johnson University
Hospital, Series B, 6.625%, 7/01/16
4,350,000 New Jersey Health Care Facilities Financing Authority, 7/01 at 102 Aaa 4,651,368
Revenue Bonds, Mercer Medical Center Issue,
Series 1991, 6.500%, 7/01/10
5,025,000 New Jersey Health Care Facilities Financing Authority, 7/01 at 102 BBB+ 5,199,368
Revenue Bonds, Pascack Valley Hospital Association
Issue, Series 1991, 6.700%, 7/01/11
New Jersey Health Care Facilities Financing Authority,
Refunding Revenue Bonds, Barnert Hospital (FHA
Insured Mortgage) Series B:
90,000 6.750%, 8/01/11 (Pre-refunded to 2/01/01) 2/01 at 100 AAA 98,623
755,000 6.750%, 8/01/11 2/01 at 102 AAA 805,736
355,000 6.800%, 8/01/19 (Pre-refunded to 2/01/01) 2/01 at 102 AAA 389,598
2,845,000 6.800%, 8/01/19 2/01 at 102 AAA 3,031,148
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,150,000 New Jersey Health Care Facilities Financing Authority, 7/02 at 102 Ba1 $ 4,326,583
Revenue Bonds, Palisades Medical Center, Obligated
Group Issue, Series 1992, 7.500%, 7/01/06
2,800,000 New Jersey Health Care Facilities Financing Authority, 7/02 at 102 A- 3,009,552
Refunding Revenue Bonds, Atlantic City Medical
Center Issue, Series C, 6.800%, 7/01/11
2,535,000 New Jersey Health Care Facilities, Financing Authority, 7/03 at 102 Baa1 2,591,860
Revenue Bonds, Deborah Heart and Lung Center
Issue, Series of 1993, 6.200%, 7/01/13
3,200,000 New Jersey Health Care Facilities Financing Authority, 7/07 at 102 Aaa 3,046,208
Revenue and Refunding Bonds, Holy Name Hospital
Issue, Series 1997, 5.250%, 7/01/20
6,000,000 New Jersey Higher Educational Assistance Authority, 6/07 at 102 AAA 6,048,480
Student Loan Revenue Bonds, NJ Class Loan Program,
Series 1997 A, 5.800%, 6/01/16 (Alternative
Minimum Tax)
9,300,000 New Jersey Highway Authority (Garden State Parkway), 1/99 at 102 Aaa 9,904,128
Senior Parkway Revenue Bonds, 1989 Series,
7.250%, 1/01/16 (Pre-refunded to 1/01/99)
3,500,000 New Jersey Highway Authority (Garden State Parkway), 1/02 at 102 AA- 3,725,400
Senior Parkway Revenue Refunding Bonds, 1992
Series, 6.250%, 1/01/14
4,500,000 New Jersey Housing Mortgage Finance Agency, Multi- 5/06 at 102 Aaa 4,613,490
Family Housing Revenue Bonds, 1996 Series A,
6.250%, 5/01/28 (Alternative Minimum Tax)
12,000,000 New Jersey Housing and Mortgage Finance Agency, 11/01 at 102 AAA 12,884,160
Multi-Family Housing Revenue Refunding Bonds
(Presidential Plaza at Newport Project-FHA-Insured
Mortgages), 1991 Series 1, 7.000%, 5/01/30
1,500,000 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102 Aaa 1,537,935
Multi-Family Housing Revenue Bonds, 1995 Series A,
6.000%, 11/01/14
New Jersey Housing and Mortgage Finance Agency, Section 8
Bonds, 1991 Series A:
3,000,000 6.800%, 11/01/05 11/02 at 102 AA+ 3,215,010
2,500,000 6.900%, 11/01/07 11/01 at 103 AA+ 2,668,675
4,700,000 6.950%, 11/01/08 11/01 at 103 AA+ 5,007,286
1,000,000 7.100%, 11/01/11 11/01 at 103 AA+ 1,059,180
3,255,000 New Jersey Housing and Mortgage Finance Agency, 10/99 at 102 Aaa 3,390,017
Home Buyer Revenue Bonds, 1989 Series D,
7.600%, 10/01/09 (Alternative Minimum Tax)
9,650,000 New Jersey Housing and Mortgage Finance Agency, 5/02 at 102 A+ 10,333,510
Housing Revenue Bonds, 1992 Series A,
6.950%, 11/01/13
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 5,500,000 New Jersey Housing and Mortgage Finance Agency, 10/00 at 102 Aaa $ 5,590,090
Home Buyer Revenue Bonds, 1990 Series F-2,
6.300%, 4/01/25 (Alternative Minimum Tax)
3,250,000 New Jersey Housing and Mortgage Finance Agency, 11/02 at 102 A+ 3,420,463
Housing Revenue Refunding Bonds, 1992 Series One,
6.700%, 11/01/28
2,605,000 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101 1/2 Aaa 2,687,865
Revenue Bonds (Home Buyer), 1995 Series O,
6.350%, 10/01/27 (Alternative Minimum Tax)
10,000,000 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101 1/2 Aaa 9,998,900
Home Buyer Revenue Bonds, 1997 Series U,
5.850%, 4/01/29 (Alternative Minimum Tax) (DD)
5,000,000 New Jersey Housing and Mortgage Finance Agency, 4/07 at 101 1/2 Aaa 5,096,350
Revenue Bonds (Home Buyer), 1996 Series S,
6.050%, 10/01/28 (Alternative Minimum Tax)
2,445,000 New Jersey Sports and Exposition Authority, State 3/02 at 102 Aa 2,615,099
Contract Bonds, 1992 Series A, 6.500%, 3/01/19
5,000,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/97 at 100 Baa1 5,012,300
Series 1991 A (Refunding Bonds), 6.900%, 1/01/14
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991 C:
9,000,000 6.500%, 1/01/08 No Opt. Call Aaa 10,127,970
1,675,000 6.500%, 1/01/16 No Opt. Call Baa1 1,854,493
35,000 New Jersey Wastewater Treatment Trust, Wastewater 5/98 at 102 Aaa 36,638
Treatment Insured Bonds, Series 1988 A,
7.375%, 5/15/08
2,250,000 New Jersey Water Supply Authority, Water System 11/98 at 102 A+ 2,385,810
Revenue Bonds, Series 1988 (Delaware and Raritan
System), 7.875%, 11/01/13 (Alternative Minimum Tax)
State of New Jersey, General Obligation Bonds
(Various Bonds):
8,200,000 6.750%, 9/15/07 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 9,039,680
850,000 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 938,655
5,000,000 6.375%, 8/01/11 8/02 at 101 1/2 Aa1 5,322,850
State of New Jersey, General Obligation Bonds, Series D:
5,000,000 5.750%, 2/15/06 No Opt. Call Aa1 5,362,950
5,000,000 6.000%, 2/15/11 No Opt. Call Aa1 5,435,150
2,500,000 The Atlantic County Utilities Authority (New Jersey), No Opt. Call Aaa 2,409,650
Sewer Revenue Refunding Bonds, 1987 Series,
5.000%, 1/15/13
1,500,000 The Board of Education of the Township of Bedminster, 3/01 at 102 A1 1,644,585
Certificates of Participation, In the county of
Somerset, New Jersey, 7.125%, 9/01/10
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 7,000,000 The Bergen County Utilities Authority, 1992 Water 6/02 at 102 Aaa $ 7,746,270
Pollution Control System Revenue Bonds, Series A,
6.500%, 12/15/12 (Pre-refunded to 6/15/02)
3,700,000 Pollution Control Financing Authority of Camden County 12/01 at 102 Ba 3,727,306
(Camden County, New Jersey), Solid Waste Disposal
and Resource Recovery System Revenue Bonds,
Series 1991B, 7.500%, 12/01/09 (Alternative
Minimum Tax)
3,500,000 Pollution Control Financing Authority of Camden County 12/01 at 102 Ba 3,525,830
(Camden County, New Jersey), Solid Waste Disposal
and Resource Recovery System Revenue Bonds,
Series 1991A, 7.500%, 12/01/10 (Alternative
Minimum Tax)
Cape May County Municipal Utilities Authority, Sewer
Revenue Refunding Bonds, Series 1992-A:
2,000,000 6.000%, 1/01/11 1/03 at 102 Aaa 2,098,980
7,600,000 5.750%, 1/01/16 1/03 at 102 Aaa 7,717,876
1,000,000 The Board of Education of the Town of Dover, in the 12/01 at 100 Aaa 1,069,430
County of Morris, New Jersey, as Lessee, Certificates
of Participation, 6.600%, 6/01/11
1,265,000 Township of East Brunswick, In the County of Middlesex, 4/03 at 101 Aa 1,240,788
New Jersey, General Obligation Refunding Bonds,
Series 1993, 5.125%, 4/01/13
County of Essex, New Jersey, General Obligation
Refunding Bonds of 1996, Tax-Exempt Bonds of
1996, Series A-1:
3,000,000 6.000%, 11/15/07 No Opt. Call Aaa 3,269,520
1,000,000 5.000%, 11/15/11 8/07 at 101 Aaa 975,420
7,800,000 County of Essex, New Jersey, Fiscal Year Adjustment 12/01 at 101 Aaa 8,530,158
Bonds, Series 1991, 6.500%, 12/01/11
(Pre-refunded to 12/01/01)
4,095,000 The Board of Education of the Township of Evesham, in 9/01 at 102 Aaa 4,552,698
the County of Burlington New Jersey, Certificates of
Participation, 6.875%, 9/01/11 (Pre-refunded to
9/01/01)
2,320,000 City of Hoboken, Fiscal Year Adjustment General No Opt. Call Aaa 3,021,058
Obligation Bonds, Series 1991, 8.900%, 8/01/06
5,250,000 Township of Howell, In the County of Monmouth, 1/02 at 102 Aaa 5,725,335
New Jersey, General Obligation Refunding Bonds,
Series 1991, 6.800%, 1/01/14
3,790,000 The Hudson County Improvement Authority, Multi-Family 6/04 at 100 AAA 3,963,165
Housing Revenue Bonds, Series 1992 A (Conduit
Financing - Observer Park Project), 6.900%, 6/01/22
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,675,000 The City of New Jersey (Hudson County, New Jersey), No Opt. Call Aaa $ 4,579,712
Fiscal Year Adjustment Bonds, Series B 1991,
8.400%, 5/15/06
8,200,000 The City of Jersey City (Hudson County, New Jersey), 5/01 at 102 Aaa 8,988,184
Fiscal Year Adjustment Bonds, Series A 1991,
6.600%, 5/15/11 (Pre-refunded to 5/15/01)
1,540,000 Housing Finance Corporation of the City of Long Branch, 10/98 at 100 N/R 1,562,961
Long Branch, New Jersey, Section 8 Assisted Housing
Revenue Bonds, Washington Manor Associates, Ltd.,
1980 Elderly Project, 10.000%, 10/01/11
2,535,000 The Board of Education of the Township of Mansfield, 3/06 at 102 Aaa 2,615,790
in the County of Warren, New Jersey, Certificates
of Participation, 5.900%, 3/01/15
The State of New Jersey, as Lessee, and The Mercer
County Improvement Authority, as Lessor, Relating
to the Richard J. Hughes Justice Complex:
3,000,000 6.050%, 1/01/09 No Opt. Call Aa 3,000,780
1,585,000 6.050%, 1/01/13 No Opt. Call Aa 1,585,190
1,000,000 6.050%, 1/01/14 No Opt. Call Aa 1,000,090
1,720,000 6.050%, 1/01/16 No Opt. Call Aa 1,720,189
2,000,000 6.050%, 1/01/17 No Opt. Call Aa 2,000,200
950,000 The Mercer County Improvement Authority, Mercer 11/00 at 102 Aa2 1,033,809
County, New Jersey, Revenue Bonds (County
Courthouse Project, Series 1991), 6.600%, 11/01/14
(Pre-refunded to 11/01/00)
8,000,000 Pollution Control Financing, Authority of Middlesex 12/02 at 102 N/R 8,510,560
County (New Jersey), Pollution Control Revenue
Refunding Bonds, Series 1992 (Amerada Hess
Corporation Project), 6.875%, 12/01/22
1,000,000 The Monmouth County Improvement Authority 7/07 at 101 AAA 1,025,140
(Monmouth County, New Jersey), Revenue Bonds,
Series 1997 (Howell Township Board of Education
Project), 5.800%, 7/15/17
3,500,000 The Monmouth County Improvement Authority 2/01 at 102 Aaa 3,839,010
(Monmouth County, New Jersey), Sewage
Facilities Revenue Refunding Bonds, Series 1991,
6.750%, 2/01/13 (Pre-refunded to 2/01/01)
2,000,000 Town of Morristown, In the County of Morris, New 8/05 at 102 Aaa 2,196,860
Jersey, General Obligation Refunding Bonds,
Series 1995, 6.500%, 8/01/19
1,895,000 North Bergen Township Municipal Utility Authority, No Opt. Call Aaa 2,382,072
Sewer Revenue Refunding Bonds, Series 1993,
7.875%, 12/15/09
1,200,000 County of Passaic, New Jersey, General Improvement 9/99 at 102 N/R 1,283,376
Bonds, 6.700%, 9/01/10 (Pre-refunded to 9/01/99)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,000,000 Passaic Valley Sewerage Commissioners (State of 12/02 at 102 Aaa $ 4,070,880
New Jersey), Sewer System Bonds, Series D,
5.800%, 12/01/18
1,180,000 The Raritan Township Municipal Utilities Authority 5/02 at 102 A+ 1,241,738
(Hunterdon County, New Jersey) (Secured by a
Service Contract with the Township of Raritan),
Revenue Bonds, Series 1992 (Bank Qualified),
6.450%, 5/01/12
Rutgers, The State University (The State University of
New Jersey), General Obligation Refunding Bonds,
1992 Series A:
2,900,000 6.500%, 5/01/13 5/02 at 102 AA 3,112,744
1,725,000 6.500%, 5/01/18 5/02 at 102 AA 1,853,099
6,250,000 The Pollution Control Financing Authority of Salem 11/01 at 102 AA- 6,569,750
County (New Jersey), Waste Disposal Revenue Bonds
(E.I. du Pont de Nemours and Company-Chambers
Works Project), 1991 Series A, 6.500%, 11/15/21
(Alternative Minimum Tax)
1,465,000 The South Toms River Sewerage Authority (Ocean 11/02 at 102 N/R 1,546,453
County, New Jersey), Sewer Refunding Revenue
Bonds, (Series 1992) (Bank-Qualified),
7.400%, 11/01/05
10,000,000 The Union County Utilities Authority (New Jersey), 6/02 at 102 Aaa 10,765,300
Solid Waste System Revenue Bonds, Series D,
6.850%, 6/15/14 (Alternative Minimum Tax)
2,450,000 University of Medicine and Dentistry of New Jersey 12/01 at 102 AA- 2,696,470
Bonds, Series E, 6.500%, 12/01/18 (Pre-refunded
to 12/01/01)
1,000,000 Township of West Deptford, County of Gloucester, 3/06 at 102 Aaa 987,360
New Jersey, General Obligation Bonds, Series of
1996, 5.250%, 3/01/14
4,300,000 The Port Authority of New York and New Jersey, 6/02 at 102 Baa3 4,601,902
Special Project Bonds, Series 1R, Delta Air Lines,
Inc. Project, LaGuardia Airport Passenger Terminal,
6.950%, 6/01/08
4,500,000 The Port Authority of New York and New Jersey 1/03 at 101 AA- 4,583,070
Consolidated Bonds, Eighty-Fourth Series,
6.000%, 1/15/28 (Alternative Minimum Tax)
3,150,000 The Port Authority of New York and New Jersey 7/04 at 101 AA- 3,217,820
Consolidated Bonds, Ninety-Fifth Series,
6.125%, 7/15/29 (Alternative Minimum Tax)
5,000,000 Port Authority of New York and New Jersey, 10/02 at 101 Aaa 5,079,400
Consolidated Bonds, One Hundred Second Series
(Revenue Bonds), Non-Amt Bonds, 5.875%, 10/15/27
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,350,000 The Port Authority of New York and New Jersey, 12/07 at 100 Aaa $ 4,351,435
Special Project Bonds, Series 6, JFK International
Air Terminal LLC Project, 5.750%, 12/01/25
(Alternative Minimum Tax)
6,000,000 Puerto Rico Electric Power Authority, Power Revenue No Opt. Call Aaa 7,057,140
Refunding Bonds, Series Y, 7.000%, 7/01/07
6,000,000 Puerto Rico Electric Power Authority, Power Revenue 7/01 at 102 Aaa 6,704,040
Bonds, Series P, 7.000%, 7/01/11 (Pre-refunded
to 7/01/01)
710,000 Puerto Rico Housing Finance Corporation, Single Family 10/01 at 102 Aaa 742,710
- ------------- Mortgage Revenue Bonds, Portfolio One, Series C, ------------
6.750%, 10/15/13
$ 403,465,000 Total Investments - (cost $402,837,627) - 99.2% 428,274,901
============= ------------
Other Assets Less Liabilities - 0.8% 3,347,072
------------
Net Assets - 100% $431,621,973
============
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(DD) Security purchased on a delayed delivery basis (see note 1 of the
Notes to Financial Statements).
</FN>
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
<CAPTION>
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 5,100,000 The Delaware River and Bay Authority, Revenue Bonds, 1/04 at 102 Aaa $ 4,765,491
Series 1993, 5.000%, 1/01/17
855,000 Higher Education Assistance Authority (State of New 7/02 at 102 A+ 864,687
Jersey), Student Loan Revenue Bonds, 1992 Series A,
NJ Class Loan Program, 6.125%, 7/01/09
(Alternative Minimum Tax)
5,110,000 Higher Education Assistance Authority (State of New 7/03 at 102 A+ 5,004,325
Jersey), Student Loan Revenue Bonds, 1993 Series A,
NJ Class Loan Program, 5.300%, 7/01/10
(Alternative Minimum Tax)
1,145,000 New Jersey Economic Development Authority, 3/98 at 102 A 1,184,995
Natural Gas Facilities Revenue Bonds, Series 1991B
(New Jersey Natural Gas Company Project),
7.250%, 3/01/21 (Alternative Minimum Tax)
4,000,000 New Jersey Economic Development Authority, Gas 10/97 at 101 Baa1 4,068,160
Facilities Revenue Bonds, 1991 Series A
(Elizabethtown Gas Company Project),
6.750%, 10/01/21 (Alternative Minimum Tax)
(Pre-refunded to 10/01/97)
3,600,000 New Jersey Economic Development Authority, Economic No Opt. Call N/R 4,277,448
Development Bonds (Yeshiva K'Tana of Passaic-
1992 Project), 8.000%, 9/15/18
5,980,000 New Jersey Economic Development Authority, Economic No Opt. Call N/R 6,311,830
Development Bonds (Bridgewater Resources Inc.
Project), 1994 Series A, 8.375%, 11/01/04
(Alternative Minimum Tax)
1,485,000 New Jersey Economic Development Authority, Water 8/01 at 102 A 1,573,966
Facilities Refunding Bonds (Elizabeth Water
Company Project-1991 Series A), 6.700%, 8/01/21
(Alternative Minimum Tax)
3,100,000 New Jersey Economic Development Authority, Water 3/04 at 102 Aaa 3,125,854
Facilities Revenue Refunding Bonds (Hackensack
Water Company Project-1994 Series B),
5.900%, 3/01/24 (Alternative Minimum Tax)
3,255,000 New Jersey Economic Development Authority (Morris 4/03 at 102 A+ 3,374,914
Hall/St. Lawrence, Inc. Project)Series 1993A,
6.150%, 4/01/13
3,485,000 New Jersey Economic Development Authority, Revenue 8/03 at 102 AAA 3,495,908
Bonds (Public Schools Small Project Loan Program)
Series 1993, 5.400%, 8/15/12
2,670,000 New Jersey Economic Development Authority, Economic 12/03 at 102 Aa3 2,726,951
Growth Bond, Composite Issue-1992 Second SeriesH,
5.300%, 12/01/07 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,135,000 New Jersey Economic Development Authority, Economic 10/03 at 102 A $ 1,149,460
Growth Bonds, Richard L. Tauber Composite Issue-
1993 Series H-2, 5.000%, 10/01/05 (Alternative
Minimum Tax)
1,245,000 New Jersey Economic Development Authority, Economic 12/03 at 102 Aa3 1,271,556
Growth Bonds, Composite Issue-1992 Second Series T,
5.300%, 12/01/07 (Alternative Minimum Tax)
1,500,000 New Jersey Economic Development Authority, Market No Opt. Cal Aaa 1,698,120
Transition Facility Senior Lien Revenue Bonds,
Series 1994A, 7.000%, 7/01/04
945,000 New Jersey Educational Facilities Authority, Trenton 7/97 at 100 A+ 946,928
State College Issue, Revenue Bonds, Series 1976 D,
6.750%, 7/01/08
2,095,000 New Jersey Educational Facilities Authority, Refunding 7/02 at 102 Aaa 2,205,490
Revenue Bonds, Trenton State College Issue,
Series 1992 E, 6.000%, 7/01/09
1,500,000 New Jersey Educational Facilities Authority, Higher No Opt. Call Aaa 1,544,460
Education Facilities Trust Fund Bonds, Series 1995 A,
5.125%, 9/01/02
1,000,000 New Jersey Educational Facilities Authority, Revenue 7/04 at 102 Aaa 1,038,360
Bonds, New Jersey Institute of Technology Issue,
Series 1994A, 6.000%, 7/01/24
2,500,000 New Jersey Educational Facilities Authority, Revenue 7/06 at 101 Aaa 2,596,925
Bonds, Rowan College of New Jersey Issue,
Series 1996 E, 6.000%, 7/01/21
3,330,000 New Jersey Educational Facilities Authority, Revenue 7/06 at 101 Aaa 3,348,382
Bonds, Montclair State University, Series 1996-C
(Dormitory/Cafeteria Facility), 5.400%, 7/01/12
1,250,000 New Jersey Health Care Facilities Financing Authority 7/98 at 102 A+ 1,316,025
Revenue Bonds, Community Memorial Hospital
Association Issue, Series C, 8.000%, 7/01/14
2,000,000 New Jersey Health Care Facilities Financing Authority, 7/99 at 102 A- 2,117,600
Revenue Bonds, Newton Memorial Hospital Issue,
Series A, 7.500%, 7/01/19
NewJersey Health Care Facilities Financing Authority,
Revenue Bonds, Dover General Hospital and Medical
Center Issue, Series 1994:
1,015,000 7.000%, 7/01/03 No Opt. Call Aaa 1,140,099
800,000 7.000%, 7/01/04 No Opt. Call Aaa 907,952
2,000,000 New Jersey Health Care Facilities Financing Authority, 7/97 at 102 Aaa 2,044,900
Revenue Bonds, The Overlook Hospital Association
Issue, Series E, 6.700%, 7/01/13
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 45,000 New Jersey Health Care Facilities Financing Authority, 7/03 at 102 Aaa $ 43,916
Revenue Bonds, St. Peter's Medical Center Issue,
Series F, 5.000%, 7/01/11
935,000 New Jersey Health Care Facilities Financing Authority, 8/04 at 102 AAA 941,190
Refunding Revenue Bonds, Wayne General Hospital Corp.
Issue (FHA Insured Mortgage), Series B, 5.750%, 8/01/11
2,000,000 New Jersey Health Care Facilities Financing Authority, 7/04 at 102 Aaa 2,110,460
Revenue Bonds, Monmouth Medical Center Issue,
Series C, 6.250%, 7/01/16
2,250,000 New Jersey Housing Finance Agency, Special Pledge 11/97 at 103 A1 2,328,548
Revenue Obligations, 1975 Series One, 9.000%, 11/01/18
2,875,000 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102 Aaa 2,947,709
Multi-Family Housing Revenue Bonds, 1995 Series A,
6.000%, 11/01/14
NewJersey Housing and Mortgage Finance Agency, Housing
Revenue Bonds, 1992 Series A:
2,365,000 6.700%, 5/01/05 5/02 at 102 A+ 2,533,790
8,000,000 6.950%, 11/01/13 5/02 at 102 A+ 8,566,640
4,250,000 New Jersey Housing and Mortgage Finance Agency, 11/02 at 102 A+ 4,472,913
Housing Revenue Refunding Bonds, 1992 Series One,
6.700%, 11/01/28
1,000,000 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101 1/2 Aaa 1,029,560
Revenue Bonds (Home Buyer), 1995 Series O,
6.300%, 10/01/23 (Alternative Minimum Tax)
525,000 New Jersey Housing and Mortgage Finance Agency, 4/06 at 101 1/2 Aaa 527,893
Home Buyer Revenue Bonds, Series 1996-P,
5.650%, 4/01/14
1,000,000 New Jersey Housing and Mortgage Finance Agency, 4/06 at 101 1/2 Aaa 1,009,820
Revenue Bonds (Home Buyer), 1996 Series Q,
5.875%, 4/01/17 (Alternative Minimum Tax)
1,500,000 New Jersey Housing and Mortgage Finance Agency Home 10/07 at 101 1/2 Aaa 1,499,835
Buyer Revenue Bonds, 1997 Series U, 5.850%, 4/01/29
(Alternative Minimum Tax)
2,500,000 New Jersey Housing and Mortgage Finance Agency, 4/07 at 101 1/2 Aaa 2,548,175
Revenue Bonds (Home Buyer), 1996 Series S,
6.050%, 10/01/28 (Alternative Minimum Tax)
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, 1995 Series A:
750,000 5.500%, 6/15/12 6/05 at 102 Aaa 760,020
5,000,000 5.000%, 6/15/15 6/05 at 102 Aaa 4,763,450
1,100,000 New Jersey Transportation Trust Fund Authority, 6/05 at 102 Aaa 1,104,576
Transportation System Bonds, 1995 Series B,
5.500%, 6/15/15
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,780,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA $ 3,281,151
1984 Series, 10.375%, 1/01/03
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991 C:
1,000,000 6.500%, 1/01/08 No Opt. Call Baa1 1,112,760
7,920,000 6.500%, 1/01/16 No Opt. Call Baa1 8,768,707
8,575,000 6.500%, 1/01/16 No Opt. Call Aaa 9,707,929
State of New Jersey, General Obligation Bonds
(Various Bonds):
3,300,000 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 3,644,190
2,385,000 6.800%, 9/15/11 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+ 2,633,756
State of New Jersey, General Obligation Bonds,
Series D:
5,260,000 5.750%, 2/15/06 No Opt. Call Aa1 5,641,823
4,000,000 5.800%, 2/15/07 No Opt. Call Aa1 4,316,400
2,500,000 6.000%, 2/15/11 No Opt. Call Aa1 2,717,575
1,560,000 6.000%, 2/15/13 No Opt. Call Aa1 1,691,399
1,000,000 The Bergen County Utilities Authority, Bergen County, 3/98 at 100 Aaa 1,027,630
New Jersey, 1988 Solid Waste System Revenue
Bonds, Series A, 7.750%, 3/15/13 (Pre-refunded
to 3/15/98)
6,600,000 Pollution Control Financing Authority of Camden No Opt. Call Ba 6,774,306
County (Camden County, New Jersey), Solid Waste
Disposal and Resource Recovery System Revenue
Bonds, Series 1991 C, 7.125%, 12/01/01
(Alternative Minimum Tax)
6,500,000 Pollution Control Financing Authority of Camden 12/01 at 102 Ba 6,713,590
County (Camden County, New Jersey), Solid Waste
Disposal and Resource Recovery System Revenue
Bonds, Series 1991 D, 7.250%, 12/01/10
1,275,000 Camden County Improvement Authority (Camden 10/05 at 102 Aaa 1,292,735
County, New Jersey), County Guaranteed Lease
Revenue Bonds, Series 1995, 5.625%, 10/01/15
5,250,000 Cape May County Municipal Utilities Authority, Sewer 1/03 at 102 Aaa 5,331,428
Revenue Refunding Bonds, Series 1992-A,
5.750%, 1/01/16
1,000,000 The Essex County Utilities Authority (Essex County, 4/06 at 102 Aaa 1,005,120
New Jersey), Solid Waste System Revenue Bonds
(Secured by a County Deficiency Agreement with
the County of Essex), Solid Waste System Revenue
Bonds, Tax Exempt Series 1996A, 5.600%, 4/01/16
250,000 The Board of Education of the Township of Franklin, in 6/99 at 100 Aaa 266,175
the County of Somerset, New Jersey, Certificates of
Participation, Series 1989, 6.900%, 12/15/00
(Pre-refunded to 6/15/99)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,000,000 The Jersey City Sewerage Authority (Hudson County, No Opt. Call Aaa $ 1,097,260
New Jersey), Sewer Revenue Refunding Bonds
(Series 1993), 6.250%, 1/01/14
945,000 Housing Finance Corporation of the City of Long Branch, 10/98 at 100 N/R 959,090
Long Branch, New Jersey, Section 8 Assisted
Housing Revenue Bonds, Washington Manor
Associates, Ltd., 1980 Elderly Project,
10.000%, 10/01/11
The State of New Jersey, as Lessee, and The Mercer
County Improvement Authority, as Lessor, Relating
to the Richard J. Hughes Justice Complex:
750,000 6.050%, 1/01/11 No Opt. Call Aa 750,158
1,000,000 6.050%, 1/01/12 No Opt. Call Aa 1,000,170
1,500,000 6.050%, 1/01/16 No Opt. Call Aa 1,500,165
785,000 County of Morris, New Jersey, General Improvement No Opt. Call Aaa 785,644
Bonds of 1993, 5.125%, 5/13/11
600,000 The Borough of North Arlington, in the County of No Opt. Call Aaa 578,274
Bergen, New Jersey, General and Water
Improvement Bonds of 1994, 4.800%, 2/01/10
4,000,000 County of Passaic, State of New Jersey, General No Opt. Call Aaa 3,983,040
Obligation Refunding Bonds, Series 1993,
5.125%, 9/01/12
1,040,000 Passaic Valley Sewerage Commissioners (State of 12/02 at 102 Aaa 1,071,242
New Jersey), Sewer System Bonds, Series D,
5.750%, 12/01/10
240,000 The Pinelands Regional Board of Education, in the No Opt. Call N/R 242,410
Counties of Ocean and Burlington, New Jersey,
Certificates of Participation, 5.500%, 4/01/98
510,000 The Board of Education of the Township of Piscataway 6/03 at 102 Aaa 513,927
in the County of Middlesex, New Jersey, Certificates
of Participation, 1993 Series, 5.375%, 12/15/10
650,000 The Board of Education of the Southern Gloucester No Opt. Call Aaa 629,863
County, Regional High School District, Gloucester
County, New Jersey, School District Bonds,
Series 1993, 5.000%, 10/01/14
Sparta Township School District, General Obligation
Bonds (Unlimited Tax):
1,100,000 5.800%, 9/01/19 9/06 at 100 Aaa 1,123,342
1,100,000 5.800%, 9/01/20 9/06 at 100 Aaa 1,121,758
1,100,000 5.800%, 9/01/21 9/06 at 100 Aaa 1,120,878
1,000,000 The Stony Brook Regional Sewerage Authority No Opt. Call Aa 1,012,570
(Princeton, New Jersey), Revenue Refunding Bonds,
1993 Series B, 5.450%, 12/01/12
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,500,000 The Sussex County Municipal Utilities Authority, County 12/98 at 102 Aaa $ 3,753,330
of Sussex, New Jersey, Solid Waste Revenue
Bonds, Series A, 7.875%, 12/01/13 (Pre-refunded
to 12/01/98)
7,425,000 The Union County Utilities Authority (New Jersey), 6/02 at 102 BB 7,501,329
Solid Waste System Revenue Bonds, 1991 Series A,
7.200%, 6/15/14 (Alternative Minimum Tax)
1,500,000 The Wanaque Valley Regional Sewerage Authority No Opt.Call Aaa 1,578,270
(Passaic County, New Jersey), Sewer Revenue
Refunding Bonds (1993 Series B), Insured,
5.750%, 9/01/18
1,585,000 The Warren County (Pequest River), Municipal Utilities 12/03 at 101 Aaa 1,587,378
Authority, Wastewater Revenue Refunding Bonds,
Series 1993, 5.300%, 12/01/11
2,250,000 Western Monmouth Utilities Authority (Monmouth 2/05 at 102 Aaa 2,282,715
County, New Jersey), Revenue Refunding Bonds,
1995 Series A, 5.600%, 2/01/14
3,000,000 The Port Authority of New York and New Jersey, 10/04 at 101 Aaa 3,247,830
Consolidated Bonds, Ninety Sixth Series,
6.600%, 10/01/23 (Alternative Minimum Tax)
The Port Authority of New York and New Jersey,
Consolidated Bonds, Ninety-Ninth Series:
1,200,000 5.750%, 11/01/09 (Alternative Minimum Tax) 5/05 at 101 Aaa 1,246,487
2,500,000 5.750%, 11/01/14 (Alternative Minimum Tax) 5/05 at 101 Aaa 2,535,400
1,500,000 Port Authority of New York and New Jersey, 7/06 at 101 AA- 1,552,530
Consolidated Bonds, One Hundred and Sixth Series,
6.000%, 7/01/16 (Alternative Minimum Tax)
2,500,000 Port Authority of New York and New Jersey, One 6/05 at 101 Aaa 2,527,324
Hundredth Series, 5.750%, 12/15/20
The Port Authority of New York and New Jersey,
Special Project Bonds, Series 6, JFK International
Air Terminal LLC Project:
10,000,000 5.750%, 12/01/22 (Alternative Minimum Tax) 12/07 at 102 Aaa 10,012,600
11,000,000 5.750%, 12/01/25 (Alternative Minimum Tax) 12/07 at 100 Aaa 11,003,630
5,245,000 Delaware River Port Authority, Revenue Bonds, Series 1/06 at 102 Aaa 5,189,140
of 1995, 5.500%, 1/01/26
5,000,000 Commonwealth of Puerto Rico Public Improvement 7/05 at 101 1/2 Aaa 5,089,400
Bonds of 1995 (General Obligation Bonds),
5.750%, 7/01/24
8,160,000 Puerto Rico Public Buildings Authority, Public Education 7/03 at 101 1/2 A 8,193,700
and Health Facilities Refunding Bonds, Series M,
Guaranteed by the Commonwealth of Puerto Rico,
5.750%, 7/01/15
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,500,000 Puerto Rico Electric Power Authority, Power Revenue 7/02 at 101 1/2 Baa1 $ 3,666,774
Bonds, Series R, 6.250%, 7/01/17
7,000,000 Puerto Rico Industrial, Medical, Educational, and 12/03 at 103 A2 6,570,270
- ------------ Environmental Pollution Control Facilities Financing ------------
Authority, Adjustable Rate Industrial Revenue Bonds,
1983 Series A (American Home Products
Corporation Project), 5.100%, 12/01/18
$253,535,000 Total Investments - (cost $254,247,467) - 98.6% 262,243,853
============ ------------
Other Assets Less Liabilities - 1.4% 3,829,774
------------
Net Assets - 100% $266,073,627
============
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 6,000,000 Commonwealth of Pennsylvania General Obligation 3/02 at 101 1/2 AA- $ 6,422,220
Bonds, First Series of 1992, 6.375%, 9/15/11
4,970,000 Pennsylvania Higher Education Assistance Agency, No Opt. Call Aaa 5,318,248
Student Loan Adjustable Rate Tender Revenue
Refunding Bonds, 1985 Series A, 6.800%, 12/01/00
4,000,000 Pennsylvania Higher Education Assistance Agency 9/01 at 102 Aaa 4,238,360
Student Loan Revenue Bonds, Fixed Rate Bonds,
1991 Series C, 7.150%, 9/01/21 (Alternative
Minimum Tax)
3,000,000 Pennsylvania Higher Education Assistance Agency 9/02 at 102 Aaa 3,083,700
Student Loan Revenue Bonds, Fixed Rate Bonds,
1992 Series C, 6.400%, 3/01/22 (Alternative
Minimum Tax)
2,000,000 Pennsylvania Higher Educational Facilities Authority 10/98 at 102 N/R 2,143,260
(Commonwealth of Pennsylvania), Lycoming College
Revenue Bonds, Series of 1988, 8.375%, 10/01/18
(Pre-refunded to 10/01/98)
10,580,000 Pennsylvania Higher Educational Facilities Authority, 7/99 at 102 Aa 10,682,732
Revenue Bonds (Thomas Jefferson University - Life
Sciences Building Project), 1989 Series A,
6.000%, 7/01/19
5,000,000 Pennsylvania Housing Finance Agency, Single Family 10/99 at 102 AA+ 5,231,200
Mortgage Revenue Bonds, Series W,
7.625%, 10/01/10 (Alternative Minimum Tax)
5,615,000 Pennsylvania Housing Finance Agency, Single Family 4/02 at 102 AA+ 5,923,320
Mortgage Revenue Bonds, Series 1992-33,
6.900%, 4/01/17
1,000,000 Pennsylvania Housing Finance Agency, Single Family 4/02 at 102 AA+ 1,051,900
Mortgage Revenue Bonds, Series 1992-34B,
7.000%, 4/01/24 (Alternative Minimum Tax)
2,000,000 Pennsylvania Housing Finance Agency, Single Family 10/05 at 102 AA+ 2,053,180
Mortgage Revenue Bonds, Series 1995-46,
6.200%, 10/01/14 (Alternative Minimum Tax)
1,000,000 Pennsylvania Housing Finance Agency, Single Family 4/06 at 102 AA+ 1,015,610
Mortgage Revenue Bonds, Series 1996-48,
6.150%, 4/01/25 (Alternative Minimum Tax)
5,725,000 Pennsylvania Housing Finance Agency, Single Family 4/06 at 102 AA+ 5,930,871
Mortgage Revenue Bonds, Series 1996-49,
6.450%, 4/01/25 (Alternative Minimum Tax)
4,000,000 Pennsylvania Housing Finance Agency, Single Family 4/06 at 102 AA+ 4,109,280
Mortgage Revenue Bonds, Series 1996-50B,
6.350%, 10/01/27 (Alternative Minimum Tax)
5,000,000 Pennsylvania Housing Finance Agency Single Family 4/06 at 102 AA+ 5,129,300
Mortgage Revenue Bonds, Series 1996-52B,
6.250%, 10/01/24 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 8,505,000 Pennsylvania Intergovernmental Cooperation Authority, 6/03 at 100 Aaa $ 7,764,555
Special Tax Revenue Refunding Bonds (City of
Philadelphia Funding Program), Series of 1993A,
5.000%, 6/15/22
4,500,000 Pennsylvania Turnpike Commission, Pennsylvania 12/01 at 102 Aaa 5,079,960
Turnpike Revenue Bonds, Series I of 1986,
7.200%, 12/01/17 (Pre-refunded to 12/01/01)
1,650,000 Pennsylvania Turnpike Commission, Pennsylvania 12/01 at 102 A1 1,775,202
Turnpike Revenue Bonds, Series N of 1991,
6.500%, 12/01/13
735,000 Pennsylvania Turnpike Commission, Pennsylvania 12/02 at 102 Aaa 725,643
Turnpike Revenue Bonds, Series O of 1992,
5.500%, 12/01/17
3,825,000 The Pennsylvania State University Bonds, Refunding 3/01 at 102 AA- 4,061,768
Series 1992, 6.250%, 3/01/11
8,000,000 County of Allegheny, Pennsylvania, Airport Revenue 1/98 at 102 Aaa 8,305,440
Bonds, Series 1988C (Greater Pittsburgh International
Airport), 8.200%, 1/01/08 (Alternative Minimum Tax)
5,785,000 County of Allegheny, Pennsylvania Airport Revenue 1/98 at 100 Aaa 5,879,874
Bonds, Series 1988D (Greater Pittsburgh International
Airport), 7.750%, 1/01/19 (Alternative Minimum Tax)
2,500,000 County of Allegheny, Pennsylvania Airport Revenue 1/02 at 102 Aaa 2,672,225
Bonds, Series 1992A and 1992B (Greater Pittsburgh
International Airport), 6.625%, 1/01/22
(Alternative Minimum Tax)
6,300,000 Allegheny County Hospital Development Authority, 10/01 at 100 BBB+ 6,939,450
Hospital Revenue Bonds, Series 1991 A(St. Margaret
Memorial Hospital), 7.125%, 10/01/21 (Pre-refunded
to 10/01/01)
12,575,000 Allegheny County Residential Finance Authority, Single No Opt. Call Aaa 1,642,421
Family Mortgage Revenue Bonds, 1994 Series Y,
0.000%, 5/01/27 (Alternative Minimum Tax)
255,000 Redevelopment Authority of the City of Altoona (Altoona, 12/01 at 102 A 270,453
Pennsylvania) Home Improvement Loan Revenue
Bonds, Series of 1991 (Cities of Altoona and
Meadville Program) (FHA Title I Insured Loans),
7.150%, 12/01/09 (Alternative Minimum Tax)
5,000,000 Beaver County Industrial Development Authority 9/99 at 102 Baa3 5,276,800
(Pennsylvania), Pollution Control Revenue Refunding
Bonds, 1989 Series A (Ohio Edison Company Beaver
Valley Project), 7.750%, 9/01/24
1,355,000 Bensalem Township School District, Bucks County, 7/06 at 100 Aaa 1,404,701
Pennsylvania General Obligation Bonds, Series of
1996, 5.850%, 7/15/12
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,800,000 Berks County Municipal Authority (Commonwealth of 9/97 at 100 Aaa $ 1,808,730
Pennsylvania), Higher Education Revenue Bonds,
Series of 1985 (Pennsylvania Higher Education
Pooled Financing Program), The Trustees of the
University of Pennsylvania Project, 6.700%, 9/01/07
(Pre-refunded to 9/01/97)
2,060,000 Redevelopment Authority of the County of Berks No Opt. Call A+ 2,216,457
(Pennsylvania), Senior Single Family Mortgage
Revenue Bonds, 1986 Series A, 8.000%, 12/01/17
(Alternative Minimum Tax)
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Water Revenue Bonds, Series of 1992:
3,045,000 6.250%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 3,269,904
4,000,000 6.250%, 11/15/21 (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 4,295,440
8,250,000 Blair County Hospital Authority, Hospital First Mortgage 2/99 at 102 N/R 8,888,550
Revenue Bonds, Series of 1989 (Mercy Hospital,
Sublessee), 8.125%, 2/01/14 (Pre-refunded
to 2/01/99)
5,000,000 Butler County Hospital Authority (Butler County, 6/01 at 102 Aaa 5,546,450
Pennsylvania), Hospital Revenue Bonds, Series 1991 A
(North Hills Passavant Hospital), 7.000%, 6/01/22
(Pre-refunded to 6/01/01)
4,500,000 Delaware County Authority (Commonwealth of 8/01 at 100 Aaa 4,840,560
Pennsylvania), University Revenue Bonds, Series of
1991 (Villanova University), 6.900%, 8/01/16
3,750,000 Delaware County Industrial Development Authority, 4/01 at 102 Baa1 4,068,600
Pollution Control Revenue Refunding Bonds, 1991
Series A (Philadelphia Electric Company Project),
7.375%, 4/01/21
3,400,000 Erie County Hospital Authority, Hospital Revenue Bonds 2/01 at 102 Aaa 3,687,674
(Hamot Medical Center), 1991 Series A,
7.100%, 2/15/10
4,390,000 Fairview Township Authority, York County, Pennsylvania 11/01 at 100 Aaa 4,718,899
Guaranteed Sewer Revenue Bonds, Series of 1991
(Guaranteed by the Township of Fairview, York
County, Pennsylvania), 6.700%, 11/01/21
2,875,000 Franklin County Industrial Development Authority 7/99 at 102 Aaa 3,040,341
Hospital Revenue Refunding Bonds (The
Chambersburg Hospital), Series of 1991,
6.700%, 7/01/08
400,000 Greater Lebanon Refuse Authority, Lebanon County, 11/02 at 100 A- 428,712
Pennsylvania Solid Waste Revenue Bonds, Series
of 1992, 7.000%, 11/15/04
2,000,000 Hampton Township School District (Allegheny County, 11/04 at 100 Aaa 2,258,880
Pennsylvania), General Obligation Bonds, Series of
1995, 6.750%, 11/15/21 (Pre-refunded to 11/15/04)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,400,000 Lehigh County General Purpose Authority College 6/02 at 100 AAA $ 3,649,866
Revenue Bonds, Series of 1992 (Allentown College
of St. Francis de Sales Project), 6.750%, 12/15/12
4,700,000 Lehigh County Industrial Development Authority 2/04 at 102 Aaa 4,556,133
Pollution Control Revenue Bonds (Pennsylvania
Power and Light Co.), Series 1994-A, 5.500%, 2/15/27
4,000,000 Lehigh County Industrial Development Authority, 8/05 at 102 Aaa 4,191,120
Pollution Control Revenue Refunding Bonds, 1995
Series A (Pennsylvania Power and Light Company
Project), 6.150%, 8/01/29
4,000,000 Lower Pottsgrove Township Authority Montgomery 11/99 at 100 Aaa 4,225,960
County, Pennsylvania, Guaranteed Sewer Revenue
Bonds - Series of 1991 (Guaranteed by the Township of Lower
Pottsgrove), 6.700%, 11/01/16 (Pre-refunded to 11/01/99)
3,000,000 Luzerne County Industrial Development Authority, Exempt 10/02 at 102 A3 3,253,650
Facilities Revenue Refunding Bonds, 1992 Series A
(Pennsylvania Gas and Water Company Project),
7.200%, 10/01/17 (Alternative Minimum Tax)
3,550,000 Luzerne County Industrial Development Authority 12/02 at 102 A3 3,816,712
Exempt Facilities Revenue Bonds, 1992 Series B
(Pennsylvania Gas and Water Company Project),
7.125%, 12/01/22 (Alternative Minimum Tax)
5,000,000 Luzerne County Industrial Development Authority 12/04 at 102 Aaa 5,568,700
Exempt Facilities Revenue Refunding Bonds, 1994
Series A (Pennsylvania Gas and Water Company
Project), 7.000%, 12/01/17 (Alternative Minimum Tax)
3,130,000 McKean County Solid Waste Authority (McKean County, 1/02 at 100 Aaa 3,418,179
Pennsylvania), Guaranteed Solid Waste Revenue
Bonds, Series of 1992, 6.650%, 1/01/12
(Pre-refunded to 1/01/02)
3,225,000 Montgomery County Higher Education and Health 1/06 at 101 BBB 3,264,861
Authority Mortgage Revenue Bonds, Series of 1996
(Waverly Heights Project), 6.375%, 1/01/26
5,500,000 Montgomery County Industrial Development Authority 1/03 at 100 A- 5,984,440
(Pennsylvania), Resource Recovery Revenue Bonds
(Montgomery County Project), Series 1989,
7.500%, 1/01/12 (Mandatory put 1/01/99)
1,000,000 Philadelphia Authority for Industrial Development 7/99 at 102 Aaa 1,072,550
Convertible Project Revenue Bonds (PGH
Development Corporation), Series of 1989,
7.000%, 7/01/17 (Pre-refunded to 7/01/99)
4,885,000 Philadelphia Authority for Industrial Development 7/99 at 102 AA 5,248,102
Convertible Project Revenue Bonds (PGH/CHDC
Parking Facilities), Series of 1989, 7.125%, 7/01/17
(Pre-refunded to 7/01/99)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,250,000 Philadelphia Authority for Industrial Development 5/02 at 102 A+ $ 1,358,188
Revenue Bonds, Series of 1992 (National Board of
Medical Examiners Project), 6.750%, 5/01/12
4,270,000 CIty of Philadelphia, Pennsylvania Gas Works Revenue 6/01 at 102 Aaa 4,852,727
Bonds, Thirteenth Series, 7.700%, 6/15/21
(Pre-refunded to 6/15/01)
8,530,000 The Hospitals and Higher Education Facilities Authority 8/01 at 102 Aa 9,296,762
of Philadelphia Refunding Revenue Bonds, Saint
Agnes Medical Center Project (FHA Insured
Mortgage), Series 1991, 7.250%, 8/15/31
(Pre-refunded to 8/15/01)
3,250,000 The School District of Philadelphia, Pennsylvania General 7/01 at 102 Aaa 3,564,925
Obligation Bonds, Series B of 1991, 7.000%, 7/01/05
(Pre-refunded to 7/01/01)
850,000 The School District of Philadelphia, Pennsylvania 5/02 at 100 3/4 Aaa 930,113
General Obligation Bonds, Series A of 1992,
6.500%, 5/15/05 (Pre-refunded to 5/15/02)
10,625,000 City of Philadelphia, Pennsylvania, Water and Sewer 8/01 at 100 AAA 11,657,750
Revenue Bonds, Sixteenth Series, 7.000%, 8/01/18
(Pre-refunded to 8/01/01)
8,800,000 The Hospitals and Higher Education Facilities Authority of 12/01 at 102 N/R 9,913,728
Philadelphia Hospital Revenue Bonds, Series of 1991
(Presbyterian Medical Center of Philadelphia),
7.250%, 12/01/21 (Pre-refunded to 12/01/01)
3,520,000 The Hospitals and Higher Education Facilities Authority of 12/01 at 102 Aaa 3,848,803
Philadelphia Hospital Revenue Refunding Bonds, Series
of 1991 (Magee Rehabilitation Hospital Project),
7.000%, 12/01/10
4,100,000 The Hospitals and Higher Education Facilities Authority of 2/02 at 102 Aaa 4,506,351
Philadelphia Hospital Revenue Bonds (The Children's
Hospital of Philadelphia Project), Series A of1992,
6.500%, 2/15/21 (Pre-refunded to 2/15/02)
630,000 The Hospitals and Higher Education Facilities Authority of 8/02 at 102 A- 691,205
Philadelphia Hospital Revenue Bonds (Children's
Seashore House), Series 1992A, 7.000%, 8/15/03
1,250,000 The Hospitals and Higher Education Facilities Authority of 2/03 at 102 Aa 1,143,913
Philadelphia, Hospital Revenue Refunding Bonds (The
Children's Hospital of Philadelphia Project), Series A of
1993, 5.000%, 2/15/21
The Philadelphia Municipal Authority, Philadelphia,
Pennsylvania, Justice Lease Revenue Bonds, 1991
Series B:
1,500,000 7.100%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,685,880
9,900,000 7.125%, 11/15/18 (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 11,136,510
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,865,000 Urban Redevelopment Authority of Pittsburgh Mortgage 10/01 at 102 AAA $ 3,004,382
Revenue Bonds, 1991 Series G, 7.050%, 4/01/23
(Alternative Minimum Tax)
1,000,000 Urban Redevelopment Authority of Pittsburgh, 8/02 at 102 AAA 1,047,120
Redevelopment Mortgage Revenue Bonds, 1992 Series
C, 7.125%, 8/01/13 (Alternative Minimum Tax)
1,635,000 Urban Redevelopment Authority of Pittsburgh Mortgage 4/06 at 102 AAA 1,702,673
Revenue Bonds, 1996 Series C, 6.550%, 4/01/28
(Alternative Minimum Tax)
1,450,000 Urban Redevelopment Authority of Pittsburgh Mortgage 10/07 at 102 AAA 1,483,771
Revenue Bonds, 1997 Series A, 6.250%, 10/01/28
(Alternative Minimum Tax)
3,000,000 The Pittsburgh Water and Sewer Authority, Water and No Opt. Call Aaa 3,453,300
Sewer System Revenue Refunding Bonds, Series of
1986, 7.625%, 9/01/04
3,250,000 The Pittsburgh Water and Sewer Authority Water and 9/01 at 102 Aaa 3,564,633
Sewer System Revenue Refunding Bonds, Series A of
1991, 6.500%, 9/01/14 (Pre-refunded to 9/01/01)
2,500,000 Saint Mary Hospital Authority Hospital Revenue Bonds, 7/02 at 102 Aaa 2,693,425
Series 1992A (Franciscan Health System/Saint Mary
Hospital of Langhorne, Inc.), 6.500%, 7/01/12
5,500,000 Health Care Facilities Authority of Sayre, Variable Rate 12/01 at 103 Aaa 6,056,325
Hospital Revenue Bonds (VHA of Pennsylvania, Inc.
Capital Asset Financing Program), Series of 1985E
(Guthrie Healthcare System Conversion),
7.200%, 12/01/20
3,730,000 Scranton-Lackawanna Health and Welfare Authority, 6/00 at 102 N/R 4,104,343
City of Scranton, Lackawanna County, Pennsylvania,
University Revenue Bonds (University of Scranton
Project), 1990 Series A, 7.400%, 6/15/10
(Pre-refunded to 6/15/00)
2,900,000 Scranton-Lackawanna Health and Welfare Authority, 3/02 at 102 A- 3,058,978
City of Scranton, Lackawanna County, Pennsylvania,
University Revenue Bonds, (University of Scranton
Project), 1992 Series A, 6.500%, 3/01/13
8,475,000 Somerset County General Authority, Commonwealth of 10/01 at 100 Aaa 9,336,145
Pennsylvania, Commonwealth Lease Revenue Bonds,
Series of 1991, 7.000%, 10/15/13 (Pre-refunded
to 10/15/01)
5,000,000 State Public School Building Authority (Commonwealth 3/01 at 100 Aaa 5,309,200
of Pennsylvania), School Revenue Bonds (Hazelton
Area School District Project), Series J of 1991,
6.500%, 3/01/08
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,545,000 Temple University of the Commonwealth System of Higher 8/98 at 100 Aaa $ 2,635,449
Education Hospital Revenue Bonds (FHA Insured
Mortgage), Series A, 7.250%, 8/01/11 (Pre-refunded
to 8/01/98)
3,500,000 Upper Merion Area School District, Montgomery County, 9/01 at 100 Aa 3,829,035
Pennsylvania General Obligation Bonds, Series of 1993,
6.900%, 9/01/16 (Pre-refunded to 9/01/01)
3,000,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100 Aaa 3,550,049
Pennsylvania, Water and Sewer Revenue Bonds,
Series of 1991, 7.100%, 12/01/21 (Pre-refunded
to 11/15/15)
5,000,000 West Chester Area School District, Chester and Delaware 1/01 at 100 Aa1 5,377,449
Counties, Pennsylvania, General Obligation Bonds, Series
A of 1991, 6.700%, 1/15/11 (Pre-refunded to 1/15/01)
5,450,000 The Municipal Authority of the Borough of West View No Opt. Call Aaa 7,708,915
(Allegheny County, Pennsylvania), Special Obligation
Bonds, Series of 1985A, 9.500%, 11/15/14
5,000,000 County of Westmoreland, Commonwealth of Pennsylvania, 8/01 at 100 Aaa 5,430,449
General Obligation Bonds, Series of 1992,
6.700%, 8/01/09 (Pre-refunded to 8/01/01)
645,000 The General Municipal Authority of the City of Wilkes-Barre, 12/00 at 100 N/R 688,724
College Misericordia Revenue Bonds, Refunding Series
A of 1992, 7.750%, 12/01/12
620,000 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at 102 N/R 662,029
- ------------- College Misericordia Revenue Bonds, Refunding Series ------------
B of 1992, 7.750%, 12/01/12
$ 337,275,000 Total Investments - (cost $323,450,175) - 97.2% 350,734,392
============= ------------
Other Assets Less Liabilities - 2.8% 10,014,416
------------
Net Assets - 100% $360,748,808
============
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
</FN>
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,650,000 Pennsylvania Housing Finance Agency Single Family 4/07 at 101 1/2 AA+ $ 1,659,521
Mortgage Revenue Bonds, Series 1997-58A,
5.950%, 10/01/28 (Alternative Minimum Tax) (WI)
10,000,000 Pennsylvania Higher Education Assistance Agency, 1/03 at 102 Aaa 10,161,400
Student Loan Revenue Bonds, 1988 Series D,
6.050%, 1/01/19 (Alternative Minimum Tax)
10,000,000 Pennsylvania Higher Education Assistance Agency, Student No Opt. Call AAA 10,076,700
Loan Revenue Bonds, 1984 Series A, 4.625%, 12/01/00
1,715,000 Pennsylvania Higher Educational Facilities Authority, No Opt. Call Aaa 2,015,262
College and University Revenue Bonds, 9th Series,
7.625%, 7/01/15
1,640,000 Pennsylvania Higher Educational Facilities Authority 9/03 at 102 Aaa 1,596,934
(Commonwealth of Pennsylvania), University Revenue
and Refunding Bonds (Duquesne University Project),
Series A of 1993, 5.500%, 9/01/20
4,700,000 Pennsylvania Higher Educational Facilities Authority 1/06 at 101 Aa 4,734,968
(Commonwealth of Pennsylvania), The University of
Pennsylvania Health Services Revenue Bonds, Series A
of 1996, 5.750%, 1/01/22
6,365,000 Pennsylvania Higher Educational Facilities Authority, 7/99 at 102 Aa 6,426,804
Revenue Bonds (Thomas Jefferson University - Life
Sciences Building Project), 1989 Series A,
6.000%, 7/01/19
7,000,000 Pennsylvania Higher Educational Facilities Authority 6/03 at 100 Aaa 7,066,220
(Commonwealth of Pennsylvania), Revenue Bonds,
State System of High Education, Series I,
5.700%, 6/15/15
4,615,000 Pennsylvania Higher Educational Facilities Authority 7/03 at 102 AAA 4,556,297
(Commonwealth of Pennsylvania), Revenue Bonds
(Widener University), 1993 Series A, 5.250%, 7/15/11
5,000,000 Pennsylvania Housing Finance Agency, Single Family 10/03 at 102 AA+ 4,861,350
Mortgage Revenue Bonds, Series 1993-37B,
5.600%, 10/01/25 (Alternative Minimum Tax)
5,000,000 Pennsylvania Housing Finance Agency, Rental Housing 7/02 at 102 Aaa 5,214,400
Refunding Bonds, Issue 1992, 6.400%, 7/01/12
9,000,000 Pennsylvania Housing Finance Agency, Rental Housing 7/03 at 102 Aaa 9,057,150
Refunding Bonds, Issue 1993, 5.800%, 7/01/18
2,000,000 Pennsylvania Housing Finance Agency, Single Family 10/03 at 102 AA+ 1,970,880
Mortgage Revenue Bonds, Series 1993 - 37A,
5.450%, 10/01/17
1,120,000 Pennsylvania Housing Finance Agency, Single Family No Opt. Call AA+ 1,252,216
Mortgage Revenue Bonds, Series 1996-47,
6.750%, 10/01/06 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,305,000 Pennsylvania Housing Finance Agency, Single Family 4/06 at 102 AA+ $ 3,401,770
Mortgage Revenue Bonds, Series 1996-51,
6.375%, 4/01/28 (Alternative Minimum Tax)
2,750,000 Pennsylvania Housing Finance Agency, Single Family 10/06 at 102 AA+ 2,801,123
Mortgage Revenue Bonds, Series 1997-54A,
6.150%, 10/01/22 (Alternative Minimum Tax)
Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1997-56A:
1,500,000 6.050%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102 AA+ 1,525,080
4,000,000 6.150%, 10/01/27 (Alternative Minimum Tax) 4/07 at 102 AA+ 4,076,680
Pennsylvania Industrial Development Authority, Economic
Development Revenue Bonds, Series 1994:
2,000,000 7.000%, 7/01/06 No Opt. Call Aaa 2,311,460
1,550,000 7.000%, 1/01/07 No Opt. Call Aaa 1,795,582
1,000,000 7.000%, 7/01/07 No Opt. Call Aaa 1,164,930
4,895,000 Pennsylvania Turnpike Commission, Pennsylvania Turnpike 12/02 at 102 Aaa 4,832,687
Revenue Bonds, Series O of 1992, 5.500%, 12/01/17
8,850,000 The Pennsylvania State University Bonds, Second 8/02 at 102 AA- 8,720,790
Refunding Series 1992, 5.500%, 8/15/16
750,000 Allegheny County Hospital Development Authority 6/02 at 102 BBB 788,708
(Allegheny County, Pennsylvania), Health and Education
Revenue Bonds, Series 1992 (The Rehabilitation
Institute of Pittsburgh Project), 7.000%, 6/01/22
3,000,000 Allegheny County Hospital Development Authority 11/02 at 100 Aaa 3,113,070
(Pennsylvania), Health Center Revenue Bonds, Series
1992A (Presbyterian University Health System, Inc.
Project), 6.250%, 11/01/23
8,500,000 Allegheny County Hospital Development Authority 5/06 at 102 Aaa 8,607,950
(Allegheny County, Pennsylvania), Hospital Revenue
Bonds, Series A of 1996 (South Hills Health System),
5.875%, 5/01/26
14,000,000 Allegheny County Hospital Development Authority Health 4/07 at 102 Aaa 13,839,140
Center Revenue Bonds, Series 1997A (University of
Pittsburgh Medical Center System), 5.625%, 4/01/27
2,000,000 Bangor Area School District Northampton County, 3/06 at 100 Aaa 1,988,820
Pennsylvania, General Obligation Bonds, Series B of
1996, 5.500%, 3/15/18
2,500,000 Bensalem Township School District, Bucks County, 7/06 at 100 Aaa 2,565,125
Pennsylvania General Obligation Bonds, Series of 1996,
5.875%, 7/15/16
9,065,000 Bethlehem Area School District, Northampton and Lehigh 3/01 at 100 Aaa 9,152,387
Counties, Pennsylvania, General Obligation Bonds,
Series of 1993, 5.600%, 9/01/12
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Water Revenue Bonds, Series A of 1992:
$ 3,785,000 6.100%, 11/15/18 (Pre-refunded to 11/15/02) 11/02 at 100 Aaa $ 4,077,618
3,100,000 6.100%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 100 Aaa 3,339,661
4,345,000 Bucks County Redevelopment Authority, Pennsylvania, 8/03 at 100 A 4,388,493
Second Lien Multifamily Mortgage Revenue Bonds,
Section 8 Assisted (Country Commons Apartments),
Series 1993A, 6.200%, 8/01/14 (Alternative Minimum Tax)
Delaware County Authority (Commonwealth of Pennsylvania),
Hospital Revenue Bonds Series of 1993 (Crozer-Chester
Medical Center):
1,000,000 6.000%, 12/15/09 12/03 at 102 Baa1 1,021,290
2,085,000 6.000%, 12/15/20 12/03 at 102 Baa1 2,074,033
2,100,000 Delaware County Authority (Commonwealth of Pennsylvania), 12/03 at 102 Aaa 2,074,905
Hospital Revenue Bonds, Series of 1994 (Crozer-Chester
Medical Center), 5.300%, 12/15/11
1,975,000 Delaware County Industrial Development Authority, Water 6/02 at 102 Aaa 2,150,380
Facilities Revenue Refunding Bonds (Philadelphia
Suburban Water Company Project), Series of 1992,
6.500%, 6/01/10
4,060,000 Delaware Valley Regional Finance Authority Local 4/06 at 100 Aaa 4,192,478
Government Revenue Bonds, Series A, 6.000%, 4/15/26
1,500,000 Fort LeBoeuf School District (Erie County, Pennsylvania), 1/03 at 100 Aaa 1,520,760
General Obligation Bonds, Series A of 1993,
5.800%, 1/01/16
17,900,000 The Harrisburg Authority, Dauphin County, Pennsylvania 9/07 at 100 AAA 17,925,776
Tax-Exempt Revenue Bonds (The City of Harrisburg
Project), Series II of 1997, 5.625%, 9/15/22
3,500,000 Hollidaysburg Sewer Authority Guaranteed Sewer Revenue 1/03 at 100 Aaa 3,592,715
Bonds, Series of 1993, 6.100%, 1/01/23
7,590,000 Indiana County Industrial Development Authority 5/07 at 102 Aaa 7,669,619
(Pennsylvania), Pollution Control Revenue Bonds, 1997
Series A (Metropolitan Edison Company Project),
5.950%, 5/01/27 (Alternative Minimum Tax)
1,350,000 Lancaster Higher Education Authority City of Lancaster, 4/03 at 100 Aaa 1,370,129
Pennsylvania, College Revenue Bonds, Series of 1993
(Franklin and Marshall College Project), 5.700%, 4/15/13
Lehigh County General Purpose Authority, Hospital Revenue
Bonds, Series 1993 (Saint Luke's Hospital of Bethlehem,
Pennsylvania Project):
1,335,000 5.300%, 11/15/05 No Opt. Call Aaa 1,372,166
500,000 5.300%, 11/15/07 No Opt. Call Aaa 508,900
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 15,000,000 Lehigh County Industrial Development Authority Pollution 11/02 at 102 Aaa $ 16,257,300
Control Revenue Refunding Bonds, 1992 Series A
(Pennsylvania Power and Light Company Project),
6.400%, 11/01/21
1,500,000 Ligonier Valley School District (Westmoreland County, 3/04 at 100 Aaa 1,539,165
Pennsylvania), General Obligation Bonds, Series of 1994,
6.000%, 3/01/23
1,770,000 Luzerne County Housing Corporation Mortgage Revenue 7/03 at 100 Aaa 1,794,727
Refunding Bonds, Series 1993 (FHA Insured Mortgage
Loan - Freeland Apartments Section 8 Assisted Project),
6.125%, 7/15/23
7,350,000 Luzerne County Industrial Development Authority, Exempt 10/02 at 102 A3 7,971,443
Facilities Revenue Refunding Bonds, 1992 Series A
(Pennsylvania Gas and Water Company Project),
7.200%, 10/01/17 (Alternative Minimum Tax)
4,500,000 Luzerne County Industrial Development Authority Exempt 12/02 at 102 A3 4,838,085
Facilities Revenue Bonds, 1992 Series B (Pennsylvania
Gas and Water Company Project), 7.125%, 12/01/22
(Alternative Minimum Tax)
4,305,000 County of Montgomery, Pennsylvania, General Obligation 10/06 at 100 Aaa 4,179,638
Bonds, Series B of 1996, 5.735%, 10/15/21
2,500,000 Montgomery County Higher Educational and Health 6/03 at 102 Aaa 2,551,125
Authority (Pennsylvania), Hospital Revenue Bonds,
Series A of 1993 (Abington Memorial Hospital),
6.000%, 6/01/22
2,165,000 Montgomery County Industrial Development Authority 6/03 at 102 N/R 2,249,673
Health Facilities Revenue Bonds, Series of 1993 (ECRI
Project), 6.850%, 6/01/13
7,175,000 Montgomery County Industrial Development Authority, 12/01 at 102 Aaa 7,811,566
Pollution Control Revenue Refunding Bonds, 1991
Series B (Philadelphia Electric Company Project),
6.700%, 12/01/21
2,000,000 New Morgan Industrial Development Authority 4/04 at 102 A 2,075,640
(Pennsylvania), Solid Waste Disposal Revenue Bonds
(New Morgan Landfill Company, Inc. Project), Series
1994, 6.500%, 4/01/19 (Alternative Minimum Tax)
5,500,000 Northumberland County Industrial Development Authority 10/03 at 102 N/R 5,501,100
Exempt Facilities Revenue Bonds, 1993 Series (Roaring
Creek Water Company Project), 6.375%, 10/15/23
(Alternative Minimum Tax)
4,830,000 Philadelphia Authority for Industrial Development Project 7/03 at 102 AA 4,613,036
Revenue Refunding Bonds (PGH Development
Corporation), Series of 1993, 5.250%, 7/01/17
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,000,000 Philadelphia Hospital and Higher Educational Facilities 8/03 at 102 BBB+ $ 4,085,240
Authority of Philadelphia, Revenue Refunding Bonds,
Series of 1992 (Philadelphia MRProject),
5.625%, 8/01/04
1,005,000 The Hospitals and Higher Education Facilities Authority 5/04 at 102 Aaa 1,067,541
of Philadelphia, Community College Revenue Bonds
(Community College of Philadelphia), Series of 1994,
6.100%, 5/01/10
2,000,000 The School District of Philadelphia, Pennsylvania, General No Opt. Call Aaa 2,213,160
Obligation Refunding Bonds, Series A of 1995,
6.250%, 9/01/09
5,500,000 The School District of Philadelphia, Pennsylvania, General No Opt. Call Aaa 5,645,255
Obligation Refunding Bonds, Series A of 1993,
5.200%, 7/01/03
1,000,000 City of Philadelphia, Pennsylvania, Water and Sewer 8/01 at 102 AAA 1,132,480
Revenue Bonds, Sixteenth Series, 7.500%, 8/01/10
(Pre-refunded to 8/01/01)
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1995:
3,000,000 6.750%, 8/01/05 No Opt. Call Aaa 3,382,710
2,730,000 6.250%, 8/01/10 No Opt. Call Aaa 3,031,092
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1993:
2,335,000 5.750%, 6/15/13 6/03 at 102 Aaa 2,383,451
2,300,000 5.500%, 6/15/14 6/03 at 102 Aaa 2,284,912
The Hospitals and Higher Education Facilities Authority
of Philadelphia Hospital Revenue Bonds, Series of
1993 (Presbyterian Medical Center of Philadelphia):
1,000,000 6.500%, 12/01/11 12/03 at 102 AAA 1,093,790
3,690,000 6.650%, 12/01/19 12/03 at 102 AAA 4,192,873
3,000,000 The Hospitals and Higher Education Facilities Authority 2/03 at 102 Aa 2,919,480
of Philadelphia, Hospital Revenue Refunding Bonds
(The Children's Hospital of Philadelphia Project), Series
A of 1993, 5.375%, 2/15/14
1,750,000 Pine-Richland School District (Allegheny County, 9/03 at 100 Aaa 1,893,868
Pennsylvania), General Obligation Bonds, Series A of
1993, 6.100%, 9/01/18 (Pre-refunded to 9/01/03)
2,460,000 Urban Redevelopment Authority of Pittsburgh Mortgage 4/03 at 102 AAA 2,578,720
Revenue Bonds, 1992 Series C-1, 6.800%, 10/01/25
(Alternative Minimum Tax)
1,375,000 Urban Redevelopment Authority of Pittsburgh Mortgage 4/03 at 102 AAA 1,424,720
Revenue Bonds, 1992 Series D, 6.500%, 4/01/17
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 615,000 Urban Redevelopment Authority of Pittsburgh Mortgage 4/04 at 102 AAA $ 652,540
Revenue Bonds, 1994 Series B, 6.950%, 10/01/10
(Alternative Minimum Tax)
1,500,000 Urban Redevelopment Authority of Pittsburgh Mortgage 4/06 at 102 AAA 1,556,220
Revenue Bonds, 1996 Series C, 6.500%, 10/01/23
(Alternative Minimum Tax)
Urban Redevelopment Authority of Pittsburgh Mortgage
Revenue Bonds, 1997 Series A:
1,100,000 6.150%, 10/01/16 (Alternative Minimum Tax) 10/07 at 102 AAA 1,125,762
1,000,000 6.200%, 10/01/21 (Alternative Minimum Tax) 10/07 at 102 AAA 1,023,360
3,660,000 Rose Tree Media School District, Delaware County, 9/01 at 100 Aaa 3,983,544
Pennsylvania, General Obligation Bonds, Series of 1993,
6.700%, 3/15/12 (Pre-refunded to 9/15/01)
2,500,000 Schuylkill Valley School District Berks County, Pennsylvania, 4/03 at 100 Aaa 2,557,200
General Obligation Bonds, Series of 1993,
5.850%, 4/15/13
1,850,000 South Fork Municipal Authority (Cambria County, 7/03 at 102 A- 1,791,244
Pennsylvania), Hospital Revenue Bonds, Series 1993A
(Lee Hospital Project), 5.500%, 7/01/11
3,340,000 State Public School Building Authority (Commonwealth of 3/03 at 100 Aaa 3,397,114
Pennsylvania), College Revenue Bonds (Northampton
County Area Community College Project), Series U of
1993, 5.850%, 3/15/15
2,345,000 Swissvale Housing Development Corporation (An 7/03 at 100 Aa 2,360,196
Instrumentality of the Allegheny County Housing
Authority), Multifamily Mortgage Revenue Refunding
Bonds, Series 1993C (FHA Insured Mortgage Loan -
Section 8 Assisted Swissvale Project), 6.100%, 7/01/22
2,000,000 Titusville Area School District, Venango, Crawford and 7/07 at 100 Aaa 1,936,260
Warren Counties, Pennsylvania, General Obligation
Bonds, Series of 1997, 5.250%, 7/01/17 (WI)
4,000,000 Walenpaupack Area School District, Wayne and Pike 4/01 at 100 Aaa 4,032,640
Counties, Pennsylvania, General Obligation Bonds,
Series of 1993, 5.500%, 4/01/11
1,650,000 The Municipal Authority of the Borough of West View No Opt. Call Aaa 2,333,891
(Allegheny County, Pennsylvania), Special Obligation
Bonds, Series of 1985A, 9.500%, 11/15/14
1,615,000 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at102 N/R 1,724,480
- ------------ College Misericordia Revenue Bonds, Refunding Series ------------
B of 1992, 7.750%, 12/01/12
$318,510,000 Total Investments - (cost $317,429,935) - 95.9% 327,800,568
============
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
Temporary Investments in Short-Term
Municipal Securities - 2.3%
$ 1,125,000 Washington County Authority, Pennsylvania, Lease Revenue A-1+ $ 1,125,000
============
Bonds (Higher Education Pooled Equipment Leasing
Program), Series 1985-A, Variable Rate Demand Bonds,
4.200%, 12/15/18+
Other Assets Less Liabilities - 3.8% 12,825,893
Net Assets - 100% $341,751,461
============
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(WI) Security purchased on a when-issued basis (see note 1 of the Notes
to Financial Statements).
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
June 30, 1997
<CAPTION>
New Jersey New Jersey
Investment Quality Premium Income
<S> <C> <C>
Assets
Investments in municipal securities, at market value (note 1) $428,274,901 $262,243,853
Temporary investments in short-term municipal securities, at
amortized cost, which approximates market value (note 1) -- --
Cash 82,010 69,409
Receivables:
Interest 7,959,402 4,907,351
Investments sold 7,390,000 55,000
Other assets 12,391 36,164
------------ ------------
Total assets 443,718,704 267,311,777
------------ ------------
Liabilities
Payable for investments purchased 10,048,750 --
Accrued expenses:
Management fees (note 6) 225,694 140,704
Other 189,341 216,601
Preferred share dividends payable 77,189 38,892
Common share dividends payable 1,555,757 841,953
------------ ------------
Total liabilities 12,096,731 1,238,150
------------ ------------
Net assets (note 7) $431,621,973 $266,073,627
============ ============
Preferred shares, at liquidation value $130,000,000 $ 91,600,000
============ ============
Preferred shares outstanding 5,200 3,664
============ ============
Common shares outstanding 19,569,269 11,858,499
============ ============
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by
Common shares outstanding) $ 15.41 $ 14.71
============ ============
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
June 30, 1997
<CAPTION>
Pennsylvania Pennsylvania
Investment Quality Premium Income 2
<S> <C> <C>
Assets
Investments in municipal securities, at market value (note 1) $350,734,392 $327,800,568
Temporary investments in short-term municipal securities, at
amortized cost, which approximates market value (note 1) -- 1,125,000
Cash 459,749 33,911
Receivables:
Interest 6,500,386 5,256,917
Investments sold 4,821,900 12,577,255
Other assets 27,605 35,500
------------ ------------
Total assets 362,544,032 346,829,151
------------ ------------
Liabilities
Payable for investments purchased -- 3,602,788
Accrued expenses:
Management fees (note 6) 189,226 179,638
Other 228,147 230,964
Preferred share dividends payable 54,379 40,715
Common share dividends payable 1,323,472 1,023,585
------------ ------------
Total liabilities 1,795,224 5,077,690
------------ ------------
Net assets (note 7) $360,748,808 $341,751,461
============ ============
Preferred shares, at liquidation value $110,000,000 $118,100,000
============ ============
Preferred shares outstanding 4,400 4,724
============ ============
Common shares outstanding 15,755,615 15,747,463
============ ============
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by
Common shares outstanding) $ 15.91 $ 14.20
============ ============
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year ended June 30, 1997
<CAPTION>
New Jersey New Jersey
Investment Quality Premium Income
<S> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $26,358,983 $15,096,743
----------- -----------
Expenses:
Management fees (note 6) 2,721,593 1,690,720
Preferred shares - auction fees 324,630 228,738
Preferred shares - dividend disbursing agent fees 20,112 35,878
Shareholders' servicing agent fees and expenses 57,179 32,213
Custodian's fees and expenses 70,643 54,102
Directors'/Trustees' fees and expenses (note 6) 3,458 2,222
Professional fees 17,850 15,724
Shareholders' reports - printing and mailing expenses 108,712 73,642
Stock exchange listing fees 24,307 16,818
Investor relations expense 29,395 17,666
Other expenses 29,148 17,818
----------- -----------
Total expenses 3,407,027 2,185,541
----------- -----------
Net investment income 22,951,956 12,911,202
----------- -----------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transaction (notes 1 and 4) 626,155 (823,979)
Net change in unrealized appreciation or depreciation of investments 6,063,373 7,032,022
----------- -----------
Net gain from investments 6,689,528 6,208,043
----------- -----------
Net increase in net assets from operations $29,641,484 $19,119,245
=========== ===========
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year ended June 30, 1997
<CAPTION>
Pennsylvania Pennsylvania
Investment Quality Premium Income 2
<S> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $22,699,187 $19,151,741
----------- -----------
Expenses:
Management fees (note 6) 2,288,982 2,154,294
Preferred shares - auction fees 274,687 294,912
Preferred shares - dividend disbursing agent fees 23,003 35,878
Shareholders' servicing agent fees and expenses 64,558 49,960
Custodian's fees and expenses 63,683 62,868
Directors'/Trustees' fees and expenses (note 6) 2,969 2,742
Professional fees 17,148 15,990
Shareholders' reports - printing and mailing expenses 105,453 109,663
Stock exchange listing fees 17,120 24,906
Investor relations expense 26,844 23,878
Other expenses 24,398 17,680
----------- -----------
Total expenses 2,908,845 2,792,771
----------- -----------
Net investment income 19,790,342 16,358,970
----------- -----------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions (notes 1 and 4) 360,973 (266,763)
Net change in unrealized appreciation or depreciation of investments 2,891,910 10,125,469
----------- -----------
Net gain from investments 3,252,883 9,858,706
----------- -----------
Net increase in net assets from operations $23,043,225 $26,217,676
=========== ===========
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
New Jersey Investment Quality
Year ended Year ended
6/30/97 6/30/96
<S> <C> <C>
Operations
Net investment income $ 22,951,956 $ 22,681,854
Net realized gain (loss) from investment transactions
(notes 1 and 4) 626,155 (380,328)
Net change in unrealized appreciation or
depreciation of investments 6,063,373 373,323
------------- -------------
Net increase in net assets from operations 29,641,484 22,674,849
------------- -------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (18,519,904) (18,289,306)
Preferred shareholders (4,188,974) (4,447,642)
From accumulated net realized gains from
investment transactions:
Common shareholders -- --
Preferred shareholders -- --
------------- -------------
Decrease in net assets from distributions
to shareholders (22,708,878) (22,736,948)
------------- -------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 2,351,238 1,456,662
------------- -------------
Net increase in net assets from capital
share transactions 2,351,238 1,456,662
------------- -------------
Net increase (decrease) in net assets 9,283,844 1,394,563
Net assets at beginning of year 422,338,129 420,943,566
------------- -------------
Net assets at end of year $ 431,621,973 $ 422,338,129
============= =============
Balance of undistributed net investment
income at end of year $ 948,937 $ 705,859
============= =============
<PAGE>
<CAPTION>
New Jersey Premium Income
Year ended Year ended
6/30/97 6/30/96
<S> <C> <C>
Operations
Net investment income $ 12,911,202 $ 12,823,792
Net realized gain (loss) from investment transactions
(notes 1 and 4) (823,979) 278,325
Net change in unrealized appreciation or
depreciation of investments 7,032,022 2,009,677
------------- -------------
Net increase in net assets from operations 19,119,245 15,111,794
------------- -------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (10,008,574) (9,623,156)
Preferred shareholders (2,744,682) (3,031,790)
From accumulated net realized gains from
investment transactions:
Common shareholders -- --
Preferred shareholders -- --
------------- -------------
Decrease in net assets from distributions
to shareholders (12,753,256) (12,654,946)
------------- -------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued
to shareholders due to reinvestment of distributions -- --
------------- -------------
Net increase in net assets from
capital share transactions -- --
------------- -------------
Net increase (decrease) in net assets 6,365,989 2,456,848
Net assets at beginning of year 259,707,638 257,250,790
------------- -------------
Net assets at end of year $ 266,073,627 $ 259,707,638
============= =============
Balance of undistributed net investment
income at end of year $ 837,324 $ 679,378
============= =============
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
Pennsylvania Investment Quality
Year ended Year ended
6/30/97 6/30/96
<S> <C> <C>
Operations
Net investment income $ 19,790,342 $ 19,852,780
Net realized gain (loss) from investment transactions
(notes 1 and 4) 360,973 955,976
Net change in unrealized appreciation or
depreciation of investments 2,891,910 (2,273,958)
------------- -------------
Net increase in net assets from operations 23,043,225 18,534,798
------------- -------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (15,875,077) (16,324,381)
Preferred shareholders (3,710,061) (3,855,705)
From accumulated net realized gains from
investment transactions:
Common shareholders (395,040) (473,871)
Preferred shareholders (90,536) (132,928)
------------- -------------
Decrease in net assets from distributions
to shareholders (20,070,714) (20,786,885)
------------- -------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued
to shareholders due to reinvestment of distributions 1,952,811 2,244,579
------------- -------------
Net increase in net assets from
capital share transactions 1,952,811 2,244,579
------------- -------------
Net increase (decrease) in net assets 4,925,322 (7,508)
Net assets at beginning of year 355,823,486 355,830,994
------------- -------------
Net assets at end of year $ 360,748,808 $ 355,823,486
============= =============
Balance of undistributed net investment
income at end of year $ 710,085 $ 504,881
============= =============
<PAGE>
<CAPTION>
Pennsylvania Premium Income 2
Year ended Year ended
6/30/97 6/30/96
<S> <C> <C>
Operations
Net investment income $ 16,358,970 $ 16,353,600
Net realized gain (loss) from investment transactions
(notes 1 and 4) (266,763) 289,626
Net change in unrealized appreciation or
depreciation of investments 10,125,469 5,015,802
------------- -------------
Net increase in net assets from operations 26,217,676 21,659,028
------------- -------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (12,220,049) (12,306,677)
Preferred shareholders (4,109,035) (4,260,276)
From accumulated net realized gains from
investment transactions:
Common shareholders -- --
Preferred shareholders -- --
------------- -------------
Decrease in net assets from distributions
to shareholders (16,329,084) (16,566,953)
------------- -------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued
to shareholders due to reinvestment of distributions -- --
------------- -------------
Net increase in net assets from
capital share transactions -- --
------------- -------------
Net increase (decrease) in net assets 9,888,592 5,092,075
Net assets at beginning of year 331,862,869 326,770,794
------------- -------------
Net assets at end of year $ 341,751,461 $ 331,862,869
============= =============
Balance of undistributed net investment
income at end of year $ 313,586 $ 283,700
============= =============
</TABLE>
<PAGE>
Notes to Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding New
York Stock Exchange symbols are Nuveen New Jersey Investment Quality Municipal
Fund, Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ),
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) and Nuveen
Pennsylvania Premium Income Municipal Fund 2 (NPY).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities within a single state. The
Funds are registered under the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of their when-issued and delayed delivery purchase commitments. At
June 30, 1997, New Jersey Investment Quality and Pennsylvania Premium Income 2
had such outstanding purchase commitments of $10,048,750 and $3,602,788,
respectively. There were no such purchase commitments in either of the other
Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Income Taxes
Each Fund is a separate tax payer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common share. Furthermore, each New
Jersey Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and New Jersey state
income taxes, to retain such tax-exempt status when distributed to the
shareholders of the New Jersey Funds. Each Pennsylvania Fund intends to satisfy
conditions which will enable interest from municipal securities, which is exempt
from regular federal, Pennsylvania state personal income and the Philadelphia
School District Investment Income taxes, to retain such tax-exempt status when
distributed to shareholders of the Pennsylvania Funds. All income dividends paid
during the fiscal year ended June 30, 1997, have been designated Exempt Interest
Dividends. Net realized capital gain and market discount distributions are
subject to federal taxation.
<PAGE>
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions are distributed to shareholders not less frequently
than annually. Furthermore, capital gains are distributed only to the extent
they exceed available capital loss carryovers.
Distributions to shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from generally
accepted accounting principles. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent.
The number of shares outstanding, by Series and in total, were as follows:
<TABLE>
<CAPTION>
New Jersey New Jersey
Investment Quality Premium Income
<S> <C> <C>
Number of Shares:
Series M 3,200 --
Series T -- 624
Series W -- 1,440
Series Th 2,000 1,600
Series F -- --
----- -----
Total 5,200 3,664
===== =====
<CAPTION>
Pennsylvania Pennsylvania
Investment Quality Premium Income 2
<S> <C> <C>
Number of Shares:
Series M -- 844
Series T -- --
Series W 2,400 --
Series Th 2,000 2,080
Series F -- 1,800
----- -----
Total 4,400 4,724
===== =====
</TABLE>
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap, and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the fiscal year ended June 30, 1997.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period.
<PAGE>
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
New Jersey Investment Quality New Jersey Premium Income
Year ended Year ended Year ended Year ended
6/30/97 6/30/96 6/30/97 6/30/96
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of distributions 150,625 94,142 -- --
======= ====== ==== ====
<CAPTION>
Pennsylvania Investment Quality Pennsylvania Premium Income 2
Year ended Year ended Year ended Year ended
6/30/97 6/30/96 6/30/97 6/30/96
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of distributions 118,967 134,874 -- --
======= ====== ==== ====
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On July 1, 1997, the Funds declared Common share dividend distributions from
their tax-exempt net investment income which were paid August 1, 1997, to
shareholders of record on July 15, 1997, as follows:
<TABLE>
<CAPTION>
New Jersey New Jersey
Investment Quality Premium Income
<S> <C> <C>
Dividend per share $.0795 $.0710
====== ======
<CAPTION>
Pennsylvania Pennsylvania
Investment Quality Premium Income 2
<S> <C> <C>
Dividend per share $.0840 $.0650
====== ======
</TABLE>
<PAGE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the fiscal year ended June
30, 1997, were as follows:
<TABLE>
<CAPTION>
New Jersey New Jersey
Investment Quality Premium Income
<S> <C> <C>
Purchases
Investments in municipal securities $69,903,891 $48,953,984
Temporary municipal investments 32,500,000 22,600,000
Sales and Maturities
Investments in municipal securities 65,142,364 47,304,121
Temporary municipal investments 32,500,000 23,300,000
========== ==========
<CAPTION>
Pennsylvania Pennsylvania
Investment Quality Premium Income 2
<S> <C> <C>
Purchases
Investments in municipal securities $28,513,236 $97,754,299
Temporary municipal investments 34,900,000 46,800,000
Sales and Maturities
Investments in municipal securities 29,857,189 110,450,499
Temporary municipal investments 34,900,000 55,175,000
========== ==========
</TABLE>
At June 30, 1997, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for each
Fund.
At June 30, 1997, the following Funds had unused capital loss carryovers
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryovers will expire as follows:
<TABLE>
<CAPTION>
New Jersey Pennsylvania
Premium Income Premium Income 2
<S> <C> <C>
Expiration year:
2001 $ 1,784 $ 1,545
2002 4,076,151 1,489,452
2003 129,409 669,824
2004 650,143 40,999
2005 174,583 169,168
---------- ----------
Total $5,032,070 $2,370,988
========== ==========
</TABLE>
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 1997, were as follows:
<TABLE>
<CAPTION>
New Jersey New Jersey
Investment Quality Premium Income
<S> <C> <C>
Gross unrealized:
appreciation $25,444,033 $8,704,134
depreciation (6,759) (707,748)
----------- ----------
Net unrealized appreciation $25,437,274 $7,996,386
=========== ==========
<CAPTION>
Pennsylvania Pennsylvania
Investment Quality Premium Income 2
<S> <C> <C>
Gross unrealized:
appreciation $27,284,217 $10,611,923
depreciation -- (241,290)
----------- ----------
Net unrealized appreciation $27,284,217 $10,370,633
=========== ==========
</TABLE>
<PAGE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
("the Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net asset value of each Fund:
<TABLE>
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
</TABLE>
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors/Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
<PAGE>
7. COMPOSITION OF NET ASSETS
At June 30, 1997, net assets consisted of:
<TABLE>
<CAPTION>
New Jersey New Jersey
Investment Quality Premium Income
<S> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 130,000,000 $ 91,600,000
Common shares, $.01 par value per share 195,693 118,585
Paid-in surplus 274,858,088 171,205,098
Balance of undistributed net investment income 948,937 837,324
Accumulated net realized gain (loss) from investment transactions 181,981 (5,683,766)
Net unrealized appreciation of investments 25,437,274 7,996,386
------------- -------------
Net assets $ 431,621,973 $ 266,073,627
============= =============
Authorized shares:
Common 200,000,000 200,000,000
Preferred 1,000,000 1,000,000
============= =============
<CAPTION>
Pennsylvania Pennsylvania
Investment Quality Premium Income 2
<S> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 110,000,000 $ 118,100,000
Common shares, $.01 par value per share 157,556 157,475
Paid-in surplus 222,260,090 215,278,352
Balance of undistributed net investment income 710,085 313,586
Accumulated net realized gain (loss) from investment transactions 336,860 (2,468,585)
Net unrealized appreciation of investments 27,284,217 10,370,633
------------- -------------
Net assets $ 360,748,808 $ 341,751,461
============= =============
Authorized shares:
Common Unlimited Unlimited
Preferred Unlimited Unlimited
============= =============
</TABLE>
<PAGE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At June 30, 1997, the revenue sources by municipal
purpose for these investments, expressed as a percent of total investments, were
as follows:
<TABLE>
<CAPTION>
New Jersey New Jersey
Investment Quality Premium Income
<S> <C> <C>
Revenue Bonds:
Transportation 11% 23%
Housing Facilities 19 11
Educational Facilities 3 8
Health Care Facilities 12 8
Pollution Control Facilities -- 2
Water / Sewer Facilities 8 6
Electric Utilities 5 2
Lease Rental Facilities 4 4
Industrial Development 3 2
Other 4 9
General Obligation Bonds 10 18
Escrowed Bonds 21 7
---- ----
100% 100%
==== ====
<CAPTION>
Pennsylvania Pennsylvania
Investment Quality Premium Income 2
<S> <C> <C>
Revenue Bonds:
Transportation 5% 2%
Housing Facilities 12 16
Educational Facilities 11 17
Health Care Facilities 7 16
Pollution Control Facilities 6 11
Water / Sewer Facilities 1 6
Electric Utilities 4 4
Lease Rental Facilities -- --
Industrial Development -- --
Other 4 9
General Obligation Bonds 4 12
Escrowed Bonds 46 7
---- ----
100% 100%
==== ====
</TABLE>
<PAGE>
Certain long-term and intermediate-term investments owned by the Funds are
either covered by insurance issued by several private insurers or are backed by
an escrow or trust containing U.S. Government or U.S. Government agency
securities, both of which ensure the timely payment of principal and interest in
the event of default (58% for New Jersey Investment Quality, 52% for New Jersey
Premium Income, 72% for Pennsylvania Investment Quality and 61% for Pennsylvania
Premium Income 2). Such insurance or escrow, however, does not guarantee the
market value of the municipal securities or the value of any of the Funds'
shares.
All of the temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
Financial Highlights
Selected data for a common share outstanding throughout each period is
as follows:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net asset Net realized
value Net and unrealized
beginning investment gain (loss) To Common To Preferred
of period income from investments Shareholders Shareholders+
<S> <C> <C> <C> <C> <C>
New Jersey
Investment Quality
Year ended 6/30:
1997 $15.05 $1.18 $ .34 $ (.95) $(.21)
1996 15.06 1.17 (.01) (.94) (.23)
1995 14.73 1.20 .40 (1.01) (.24)
1994 15.88 1.20 (1.07) (1.07) (.14)
1993 14.82 1.21 1.05 (1.00) (.17)
Eight months ended
6/30/92 14.32 .82 .46 (.62) (.16)
2/21/91 to
10/31/91 14.05 .61 .46 (.49) (.12)
<CAPTION>
New Jersey
Premium Income
<S> <C> <C> <C> <C> <C>
Year ended 6/30:
1997 14.18 1.09 .51 (.84) (.23)
1996 13.97 1.08 .20 (.81) (.26)
1995 13.46 1.06 .55 (.81) (.28)
11 mos. ended
6/30/94 14.52 .94 (1.12) (.71) (.17)
12/17/92 to
7/31/93 14.05 .40 .68 (.34) (.06)
<CAPTION>
Pennsylvania
Investment Quality
<S> <C> <C> <C> <C> <C>
Year ended 6/30:
1997 15.72 1.26 .22 (1.01) (.24)
1996 15.86 1.28 (.08) (1.05) (.25)
1995 15.49 1.29 .41 (1.07) (.26)
1994 16.42 1.30 (.86) (1.16) (.16)
1993 15.14 1.31 1.27 (1.12) (.18)
Eight months ended
6/30/92 14.60 .88 .49 (.66) (.17)
2/21/91 to
10/31/91 14.05 .68 .71 (.50) (.12)
<CAPTION>
Pennsylvania
Premium Income 2
<S> <C> <C> <C> <C> <C>
Year ended 6/30:
1997 13.57 1.04 .63 (.78) (.26)
1996 13.25 1.04 .33 (.78) (.27)
1995 12.53 1.05 .77 (.81) (.29)
1994 14.35 1.00 (1.71) (.79) (.18)
3/18/93 to
6/30/93 14.05 .11 .31 (.07) --
<PAGE>
<CAPTION>
Distributions from
capital gains
Organization and
offering costs and Per common
Preferred share Net asset share
To Common To Preferred underwriting value market value
Shareholders Shareholders+ discounts end of period end of period
<S> <C> <C> <C> <C> <C>
New Jersey
Investment Quality
Year ended 6/30:
1997 $ -- $ -- $ -- $15.41 $16.3125
1996 -- -- -- 15.05 14.8750
1995 (.02) -- -- 15.06 14.6250
1994 (.06) (.01) -- 14.73 15.2500
1993 (.02) (.01) -- 15.88 17.1250
Eight months ended
6/30/92 -- -- -- 14.82 15.3750
2/21/91 to
10/31/91 -- -- (.19) 14.32 15.5000
<CAPTION>
New Jersey
Premium Income
<S> <C> <C> <C> <C> <C>
Year ended 6/30:
1997 -- -- -- 14.71 14.8125
1996 -- -- -- 14.18 13.0000
1995 (.01) -- -- 13.97 13.2500
11 mos. ended
6/30/94 -- -- -- 13.46 12.3750
12/17/92 to
7/31/93 -- -- (.21) 14.52 15.0000
<CAPTION>
Pennsylvania
Investment Quality
<S> <C> <C> <C> <C> <C>
Year ended 6/30:
1997 (.03) (.01) -- 15.91 16.8750
1996 (.03) (.01) -- 15.72 16.3750
1995 -- -- -- 15.86 15.5000
1994 (.04) (.01) -- 15.49 16.2500
1993 -- -- -- 16.42 17.5000
Eight months ended
6/30/92 -- -- -- 15.14 15.7500
2/21/91 to
10/31/91 -- -- (.22) 14.60 15.5000
<CAPTION>
Pennsylvania
Premium Income 2
<S> <C> <C> <C> <C> <C>
Year ended 6/30:
1997 -- -- -- 14.20 13.3750
1996 -- -- -- 13.57 12.3750
1995 -- -- -- 13.25 12.8750
1994 -- -- (.14) 12.53 12.3750
3/18/93 to
6/30/93 -- -- (.05) 14.35 14.6250
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio of net
Total Ratio of investment
investment Total return Net assets expenses to income to Portfolio
return on on net end of period average average turnover
market value** asset value** (in thousands) net assets++ net assets++ rate
<S> <C> <C> <C> <C> <C> <C>
New Jersey
Investment Quality
Year ended 6/30:
1997 16.50% 8.92% $431,622 .80% 5.36% 15%
1996 8.17 6.28 422,338 .81 5.33 16
1995 3.03 9.71 420,944 .85 5.57 13
1994 (4.63) (.27) 259,718 .82 5.39 5
1993 18.71 14.57 270,878 .83 5.53 12
Eight months 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>
New Jersey
Premium Income
<S> <C> <C> <C> <C> <C> <C>
Year ended 6/30:
1997 20.95 9.94 266,074 .83 4.91 18
1996 4.24 7.37 259,708 .86 4.90 32
1995 14.60 10.39 257,251 .94 5.08 15
11 mos. ended
6/30/94 (13.16) (2.61) 113,458 .91* 4.72* 12
12/17/92 to
7/31/93 2.27 5.78 118,885 .97* 3.75* 5
<CAPTION>
Pennsylvania
Investment Quality
<S> <C> <C> <C> <C> <C> <C>
Year ended 6/30:
1997 9.75 8.01 360,749 .81 5.52 8
1996 12.74 6.00 355,823 .82 5.53 12
1995 2.32 9.77 355,831 .87 5.70 9
1994 (.39) 1.23 191,718 .84 5.54 3
1993 18.83 16.50 197,920 .86 5.73 2
Eight months 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>
Pennsylvania
Premium Income 2
<S> <C> <C> <C> <C> <C> <C>
Year ended 6/30:
1997 14.82 10.61 341,751 .83 4.85 29
1996 2.21 8.39 331,863 .84 4.90 19
1995 11.50 12.87 326,771 .92 5.20 5
1994 (10.29) (7.60) 139,053 .90 4.70 11
3/18/93 to
6/30/93 (2.08) 2.60 99,561 .92* 2.99* --
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of
reinvested dividend income, reinvested capital gains distributions, if any,
and changes in stock price per share. Total Return on Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</FN>
</TABLE>
<PAGE>
Fund Information
BOARD OF DIRECTORS/TRUSTEES
Lawrence H. Brown
Anthony T. Dean
Anne E. Impellizzeri
Peter R. Sawers
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
LEGAL COUNSEL
Fried, Frank, Harris
Shriver & Jacobson
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, Illinois
<PAGE>
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set
up your reinvestment account."
(continued from inside front cover)
before purchases are completed, the average purchase price per share may
exceed the market price at the time of valuation resulting in the acquisition of
fewer shares than if the dividend or distribution had been paid in shares issued
by the fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although the Fund reserves the right to amend the Plan to include a service
charge payable by the participants, there is no direct service charge to
participants in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll
in or withdraw from the Plan, speak with your financial adviser or call us
toll-free at (800) 257-8787.
<PAGE>
Serving Investors for Generations
Photographic image of John Nuveen, Sr.
Since our founding in 1898, John Nuveen &Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for mature investors whose portfolios are the principal
source of their ongoing financial security. More than 1.3 million investors have
trusted Nuveen to help them maintain the lifestyle they currently enjoy.
A value investing approach - purchasing securities of strong companies and
communities that represent good long-term value - is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of equity and fixed-income mutual funds,
unit trusts, exchange-traded funds, individual managed account services, and
cash management products, including many that generate tax-free income.
To find out more about how Nuveen investment products and services can help
you preserve your financial security, talk with your financial adviser, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
NUVEEN
John Nuveen &Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
(800) 257-8787
www.nuveen.com
FAN-2-6.97
