Annual Report June 30, 2001
LOGO: NUVEEN Investments
Municipal Closed-End Exchange-Traded Funds
Dependable, tax-free income to help you keep more of what you earn.
NEW JERSEY
NQJ
NNJ
NXJ
PENNSYLVANIA
NQP
NPY
NXM
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2 woman and child looking out into a field
Invest well.
Look ahead.
Leave your MARK.(SM)
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Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "Your Nuveen Fund also features several characteristics that can
help make it an essential part of your overall investment strategy."
Dear
Shareholder
I am pleased to have this opportunity to report on the recent performance of
your Nuveen Fund. During the period covered by this report, your Fund continued
to meet its primary objective of providing you with attractive monthly tax-free
income from a portfolio of quality municipal bonds. Detailed information on your
Fund can be found in the Portfolio Managers' Comments and Performance Overview
sections later in this report. I urge you to take the time to read them.
In addition to providing you with steady tax-free income, your Nuveen Fund also
features several characteristics that can help make it an essential part of your
overall investment strategy. These include careful research, constant
surveillance and judicious trading by Nuveen's seasoned portfolio management
team, with every action designed to supplement income, improve Fund structure,
better adapt to current market conditions or increase diversification. In
turbulent times like these, prudent investors understand the importance of
diversification, balance, and risk management, all attributes your Nuveen Fund
can bring to your portfolio. With strong long-term performance achieved through
consistent, disciplined professional management, your Nuveen Fund also
illustrates the power of taking a long-term view toward financial growth and
success.
Invest Well.Look Ahead.Leave Your Mark.
Today, perhaps more than ever, investors have the ability to make a lasting
impact on their families and their world for generations to come. For more than
100 years, Nuveen has specialized in offering quality investments, such as the
Nuveen Funds, to those seeking to accumulate and preserve wealth to establish a
lasting legacy. Our mission continues to be to provide assistance to you and
your financial advisor by offering investment services and products that can
help you leave your mark. We thank you for continuing to choose Nuveen
Investments as your partner as you work toward that goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
August 17, 2001
Sidebar text: "Today, perhaps more than ever, investors have the ability to make
a lasting impact on their families and their world for generations to come."
Nuveen New Jersey and Pennsylvania Closed-End Exchange-Traded Funds
(NQJ, NNJ, NXJ, NQP, NPY, NXM)
Portfolio Managers'
Comments
Portfolio managers Tom Spalding and Tom O'Shaughnessy examine national and state
economic conditions, key investment strategies, and the performance of the
Nuveen Closed-End Exchange-Traded Municipal Funds for New Jersey and
Pennsylvania. Spalding, who has been with Nuveen since 1976, assumed portfolio
management responsibility for NQJ and NNJ in March 2001. At that time, he also
added the new Nuveen Dividend Advantage Fund for New Jersey (NXJ). An 18-year
Nuveen veteran, O'Shaughnessy has managed NQP since 1991 and NPY since 1995; he
added the Nuveen Pennsylvania Dividend Advantage Fund (NXM) upon its inception
in March 2001.
WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL
MARKET DURING THIS REPORTING PERIOD?
The major factors affecting the economy and the municipal market over the past
twelve months were the Federal Reserve's increase and reduction of short-term
interest rates, and the general slowdown in economic growth. After a series of
rate increases through 1999 and 2000, the Fed embarked in January 2001 on a
series of rate cuts designed to stimulate the sluggish U.S. economy. Over the
first half of 2001, the Fed announced six reductions totaling 275 basis points,
bringing the target federal funds rate to 3.75%, its lowest point since 1994.
The consensus among many market observers is that the Fed is prepared to
continue easing rates as long as signs of a significant economic slowdown
remain.
In the municipal market, the overall economic environment combined with tight
municipal supply helped many bonds perform well over this reporting period. As
2001 got underway, the Fed's interest rate cuts created more favorable
conditions for both new municipal issuance and refundings, which totaled $133.6
billion nationwide during the first six months of the year, an increase of 39%
over January-June 2000 and up 30% from July-December 2000.
On the demand side, municipal bonds continued to be highly sought after by
individual investors looking for diversification, tax-free income, and an
alternative to a volatile stock market. We believe municipal bonds continue to
represent good value in today's market.
HOW WAS THE MARKET ENVIRONMENT IN NEW JERSEY AND PENNSYLVANIA?
TOM SPALDING: In sharp contrast to the expanding national supply, new municipal
issuance in New Jersey during the first six months of 2001 totaled only $2.5
billion, a decrease of 45% from the same period a year ago and down 32% from the
last half of 2000. This decline was due largely to last year's heavy issuance by
the state's transportation sector. Overall, the New Jersey economy remained
healthy, although growth has slowed in line with national trends. One area of
concern is the tele-communications industry, where restructuring could lead to
thousands of job cuts at some of the state's largest employers. Slowdowns in the
financial markets also continued to have adverse effects on the New Jersey
economy. However, over the near term, the state's central location,
transportation infrastructure, high-tech industries, skilled workforce, and high
per-capita income are expected to provide a solid economic base. In June 2001,
state unemployment stood at 4.5%, up from 3.7% in June 2000 and in line with the
current national average of 4.5%.
TOM O'SHAUGHNESSY: Mirroring events at the national level, Pennsylvania's
economy also showed signs of slowing, due largely to downturns in retail trade,
service industries, and construction as well as a recession in the state's
manufacturing sector. Pennsylvania remains heavily reliant on manufacturing -
this slowdown could have a detrimental effect on the overall state economy.
However, this may be somewhat offset by continued growth in the state's
high-tech and FIRE (financial,
insurance, real estate) sectors, especially in the housing market if interest
rates continue to decline. As of June 2001, Pennsylvania unemployment was 4.8%,
up from 4.3% in June 2000 and slightly higher than the current national average
of 4.5%. Despite the economic slowdown, the state's highly skilled workforce
helped Pennsylvania's per-capita income average rank 19th overall in 2000, above
the national average. Aided by the lower interest rate environment, Pennsylvania
municipal issuance came back from a decline of 42% in 2000 with a total of $6.1
billion in new state paper during the first six months of 2001, up 143% over the
same period in 2000 and up 57% from the previous six months. Currently, the
market is anticipating continued heavy issuance from the Pennsylvania Turnpike
Commission.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THIS REPORTING PERIOD?
For the year ended June 30, 2001, the four older Nuveen Closed-End
Exchange-Traded Funds covered in this report - NQJ, NNJ, NQP, and NPY - produced
total returns on net asset value (NAV) as shown in the accompanying table. The
annual returns for the Lehman Brothers Municipal Bond Index1 and the Funds'
Lipper Peer Groups2 are also presented.
Total Lehman
Return Total Lipper
Market Yield on NAV Return1 Average2
-------------------------------------------------------------
1 Year 1 Year 1 Year
Taxable- Ended Ended Ended
6/30/01 Equivalent3 6/30/01 6/30/01 6/30/01
-------------------------------------------------------------
NQJ 5.92% 9.11% 10.62% 9.98% 14.61%
-------------------------------------------------------------
NNJ 5.49% 8.45% 12.90% 9.98% 14.61%
-------------------------------------------------------------
NXJ 5.68% 8.74%
-------------------------------------------------------------
NQP 6.03% 8.93% 7.75% 9.98% 12.12%
-------------------------------------------------------------
NPY 5.93% 8.79% 13.25% 9.98% 12.12%
-------------------------------------------------------------
NXM 6.00% 8.89%
-------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Over the past twelve months, municipal bonds enjoyed a generally positive total
return environment as a result of relatively tight municipal supply, Fed
easings, and favorable technicals. The Funds' participation in these market
gains is reflected in the total returns on NAV listed in the previous table.
Between June 30, 2000, and June 30, 2001, the yield on the Bond Buyer 25 Revenue
Bond Index fell from 5.98% to 5.52%. In this environment of falling yields (and
rising bond values), funds with longer durations4 would be expected to perform
well. As of June 30, 2001, the durations of the four older Nuveen Funds ranged
from 7.10 to 10.90, compared with 7.89 for the unleveraged Lehman Brothers
Municipal Bond Index, while the longer durations of NXJ and NXM (14.58 and
16.78, respectively) are typical of newly established Funds. The older Funds'
relative performance was also influenced by differences in their structure and
individual portfolio holdings. For example, NQP's holdings of high coupon bonds
have helped this Fund provide one of the most attractive yields in the
Pennsylvania market. However, as these bonds approach their call dates, their
price performance has had an impact on the Fund's total return on NAV.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
During the year ended June 30, 2001, Nuveen's dividend management strategies
helped to support the income streams of all four older Nuveen Funds. As of June
30, 2001, NNJ and NPY had each offered shareholders 13 consecutive months of
steady or increasing dividends, while NQJ and NQP had provided 32 and 13
consecutive months, respectively, of stable income.
The two newer Funds, NXJ and NXM, declared their first monthly tax-free
dividends in May and began paying them in June.
All of these Funds use leverage as a way to potentially enhance the dividends
paid to common shareholders. This benefit is tied in part to the short-term
rates the Funds pay their MuniPreferred(R) shareholders. When short-term rates
rise or fall, the Funds must adjust the amount of income they pay to preferred
shareholders, which affects the income available for common shareholders.
In coming months, lower short-term rates could continue to have beneficial
effects on the Funds' dividends. However, this trend could be offset by the
effect of bond
1 The Funds' performances are compared with that of the national Lehman
Brothers Municipal Bond Index, an unleveraged index comprising a broad
range of investment-grade municipal bonds. Results for the Lehman index do
not reflect any expenses.
2 The total returns of the Nuveen New Jersey Funds are compared with the
average annualized return of the eight funds in the Lipper New Jersey
Municipal Debt Funds category, while the returns of the Pennsylvania Funds
are compared with the average return of the nine funds in the Lipper
Pennsylvania category. Fund and Lipper returns assume reinvestment of
dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 30.5% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: New Jersey 35% and Pennsylvania 32.5%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a Fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the Fund. Unless otherwise noted, references to duration
in this commentary are intended to indicate Fund duration.
calls on the higher-yielding bonds held by these port-folios. This is especially
true of NQJ and NQP, which have entered the part of their life cycle when they
can expect an increased level of call activity. The level of short-term rates,
the amount of bond calls, and the interest rates at which we can reinvest the
proceeds of any calls will all influence the dividends of these Nuveen Funds
over the next twelve months.
During the past year, as the stock market remained volatile and the bond market
continued to perform well, many investors turned to tax-free fixed-income
investments as a way to add balance to their portfolios and reduce overall risk.
As a result, the share prices of the four older Nuveen Funds improved (see the
charts on the individual Performance Overview pages). As investors recognized
the opportunity offered by these Funds, increased demand caused the discounts on
NQJ and NQP to move to premiums over the past twelve months, while the discounts
on NNJ and NPY narrowed significantly.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NUVEEN FUNDS DURING THE YEAR ENDED
JUNE 30, 2001?
As evidenced by their twelve-month total returns on NAV, the four older Nuveen
Funds were well structured going into this period. Despite the relatively tight
supply of new municipal issuance during most of the past year, especially in New
Jersey, the Funds continued to meet their goal of keeping assets fully invested
and working for shareholders. However, tight supply, as well as the types of
bonds that did come to market, meant relatively fewer opportunities to make
trades that would substantially enhance the Funds' holdings. As appropriate
opportunities became available, we focused on strengthening long-term
dividend-payment capabilities, enhancing call protection, and purchasing bonds
with the potential to add value and diversification to the Funds' portfolios.
In NQJ and NNJ, our focus over the past year was on reinvesting proceeds from
bond calls in the most attractive bonds available that would support the Funds'
dividends. We also selectively trimmed some positions that had become relatively
high-priced in order to invest in issues that offered potentially superior
performance.
In Pennsylvania, although we saw new issuance increase significantly during the
first six months of 2001, much of the supply was rated AAA or insured and
provided fewer opportunities to improve the income streams of NQP and NPY. As we
did find opportunities to enhance the Funds' portfolios, we financed our
purchases by selling bonds at attractive prices. The market of the past twelve
months represented a good time to sell bonds with short calls as well as
pre-refunded bonds.
As of June 30, 2001, all six of the Nuveen Funds covered in this report offered
excellent credit quality, with between 74% and 90% of their portfolios invested
in bonds rated AAA/U.S. guaranteed and AA. NQJ and NPY each also had a 10%
allocation of BBB and non-rated bonds, which generally provided higher returns
during 2000.
In March 2001, we introduced new Nuveen Dividend Advantage Municipal Funds for
New Jersey (NXJ) and Pennsylvania (NXM). As of June 30, 2001, the portfolios of
both of these Funds were invested in intermediate and longer-term bonds that are
expected to help achieve the Funds' objective of attractive monthly income. In
assembling NXJ's portfolio, we focused on quality bonds in the healthcare sector
as well as a variety of revenue bonds that spanned several sectors, including
water and sewer, transportation, and education. Our largest healthcare purchase
was $15 million of A+ rated Robert Wood Johnson University Hospital bonds, which
added attractive yields to the Fund. Because of the extremely tight supply of
New Jersey municipal paper, we also bought a number of Puerto Rico territorial
bonds that we plan to replace with New Jersey paper as we find better
opportunities in the market.
In contrast to the situation in New Jersey, ample issuance in the Pennsylvania
municipal market helped us structure NXM with all in-state paper. However, much
of the new supply was insured or high-quality paper that did not carry the types
of yields we were seeking. In purchasing bonds for this portfolio, therefore, we
focused on sectors of the market that we believed had the greatest yield
potential, including industrial development bonds, healthcare and long-term care
issues, and housing. We were able to take advantage of an offering by the
Allegheny County Residential Finance Authority to purchase more than $5 million
of GNMA-backed single-family housing bonds, the Fund's top holding. As of June
30, 2001, our three largest sector weightings were general obligation bonds,
healthcare, and education.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE NUVEEN FUNDS
IN PARTICULAR?
Overall, our outlook for the fixed-income markets during the next 12 months
continues to be positive. Demand for tax-exempt municipal bonds is anticipated
to remain strong, as investors look for ways to rebalance their portfolios and
reduce potential risk. If interest rates continue to fall and the pace of
refundings accelerates, new municipal issuance nationwide in 2001 could exceed
$250 billion.
Looking specifically at these Nuveen Funds, NNJ and NPY provide good levels of
call protection during the remainder of 2001 and in 2002, with 12% of NNJ's
portfolio and 15% of NPY subject to calls over the next 18 months. However, both
NQJ and NQP, which reached the 10-year anniversary of their inception in
February 2001, have entered the part of the bond market cycle where they are
experiencing a typical increase in call exposure. Over the next 18 months, these
two Funds could see up to 35% and 36% of their portfolios, respectively,
affected by bond calls, depending on market interest rates during this time. The
newly established NXJ has no scheduled bond calls in 2001 and 2002, while NXM's
portfolio has a 8% call exposure over this period.
Our expectations for future bond calls are already being integrated into the
overall investment strategies of these Funds. The absolute level of interest
rates, new issue and secondary market supply, and credit and sector spreads will
help dictate how called bond proceeds are reinvested. Given the current tight
supply in the New Jersey municipal market, we may continue to hold bonds with
short calls in anticipation of increased new issuance in the months ahead. In
Pennsylvania, we plan to keep the Funds fully invested while we wait for
opportunities that may offer the potential of greater total returns.
In general, we believe these Nuveen Funds are well positioned for the market
environment of the next 12 months. As value-oriented investors, we plan to
remain focused on adding value for our shareholders, providing support for the
Funds' dividends, and watching new issuance for opportunities to purchase the
research-intensive credits that fully utilize Nuveen's expertise in this area,
especially in the healthcare and housing sectors. Overall, we believe these
Nuveen Funds will continue to play an important role in investors' long-range
financial programs, providing balance and diversification, dependable tax-free
income, and quality investments.
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
Performance
Overview As of June 30, 2001
NQJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 65%
AA 15%
A 8%
BBB 5%
NR 5%
Other 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.50
--------------------------------------------------
Net Asset Value $15.03
--------------------------------------------------
Market Yield 5.92%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.52%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.11%
--------------------------------------------------
Fund Net Assets ($000) $463,785
--------------------------------------------------
Average Effective Maturity (Years) 17.52
--------------------------------------------------
Leverage-Adjusted Duration 7.10
==================================================
ANNUALIZED TOTAL RETURN (Inception 2/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 17.13% 10.62%
--------------------------------------------------
5-Year 7.13% 6.43%
--------------------------------------------------
10-Year 6.49% 7.48%
==================================================
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 20%
--------------------------------------------------
Housing/Multifamily 12%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Healthcare 9%
==================================================
Bar Chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
7/00 0.0765
8/00 0.0765
9/00 0.0765
10/00 0.0765
11/00 0.0765
12/00 0.0765
1/01 0.0765
2/01 0.0765
3/01 0.0765
4/01 0.0765
5/01 0.0765
6/01 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
7/1/00 14.06
14
14.19
14.44
14.81
14.5
14.75
15.13
15.19
14.94
14.56
14.38
14.56
14.75
14.5
14.31
14.25
14.75
15.13
14.56
14.63
14.94
14.75
15.38
15.81
16
15.94
16
15.5
15.56
15.85
15.65
15.58
15.29
15.54
15.16
14.65
14.83
14.94
14.79
14.97
14.96
14.99
15.06
15.15
15.17
15.32
15.44
15.48
15.44
6/30/01 15.5
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. The rate shown for federal and state highlights the added value
of owning shares that are also exempt from state income taxes. It is based
on a combined federal and state income tax rate of 35%.
Nuveen New Jersey Premium Income Municipal Fund, Inc.
Performance
Overview As of June 30, 2001
NNJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 67%
AA 10%
A 17%
NR 3%
Other 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.19
--------------------------------------------------
Net Asset Value $15.27
--------------------------------------------------
Market Yield 5.49%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.90%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.45%
--------------------------------------------------
Fund Net Assets ($000) $275,051
--------------------------------------------------
Average Effective Maturity (Years) 15.61
--------------------------------------------------
Leverage-Adjusted Duration 8.22
==================================================
ANNUALIZED TOTAL RETURN (Inception 12/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 20.13% 12.90%
--------------------------------------------------
5-Year 9.27% 7.45%
--------------------------------------------------
Since Inception 6.04% 6.76%
==================================================
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 23%
--------------------------------------------------
Tax Obligation/Limited 15%
--------------------------------------------------
Education and Civic Organizations 10%
--------------------------------------------------
Housing/Multifamily 10%
--------------------------------------------------
Tax Obligation/General 9%
==================================================
Bar Chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
7/00 0.0675
8/00 0.0675
9/00 0.0675
10/00 0.0675
11/00 0.0675
12/00 0.0675
1/01 0.0675
2/01 0.0675
3/01 0.0685
4/01 0.0685
5/01 0.0685
6/01 0.0695
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
7/1/00 13.69
13.5
13.5
13.44
14.06
13.88
14.69
14.44
14.44
14.5
14.13
13.75
14
13.94
13.5
13.5
13.44
13.75
13.44
13.5
13.69
14
14.06
14.13
14.5
15
15.19
15.13
14.88
15.36
15.48
15.25
15.13
14.93
15.03
14.71
14.15
14.39
14.76
14.58
14.8
14.91
15.06
14.91
15.03
14.75
14.62
14.72
14.86
15
6/30/01 15.19
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. The rate shown for federal and state highlights the added value
of owning shares that are also exempt from state income taxes. It is based
on a combined federal and state income tax rate of 35%.
Nuveen New Jersey Dividend Advantage Municipal Fund
Performance
Overview As of June 30, 2001
NXJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 66%
AA 8%
A 16%
NR 3%
Other 7%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.99
--------------------------------------------------
Net Asset Value $14.39
--------------------------------------------------
Market Yield 5.68%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.17%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.74%
--------------------------------------------------
Fund Net Assets ($000) $142,187
--------------------------------------------------
Average Effective Maturity (Years) 27.31
--------------------------------------------------
Leverage-Adjusted Duration 14.58
==================================================
TOTAL RETURN (Inception 3/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 0.87% 1.42%
==================================================
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 19%
--------------------------------------------------
Transportation 19%
--------------------------------------------------
Water and Sewer 17%
--------------------------------------------------
Tax Obligation/General 14%
--------------------------------------------------
Education and Civic Organizations 11%
==================================================
Bar Chart:
2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/01 0.071
6/01 0.071
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
3/30/01 15
15.08
15.09
15.09
15.1
15.19
15.21
15.15
15.03
14.99
14.97
14.93
14.95
6/30/01 14.99
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. The rate shown for federal and state highlights the added value
of owning shares that are also exempt from state income taxes. It is based
on a combined federal and state income tax rate of 35%.
Nuveen Pennsylvania Investment Quality Municipal Fund
Performance
Overview As of June 30, 2001
NQP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 72%
AA 18%
A 9%
BBB 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.13
--------------------------------------------------
Net Asset Value $14.57
--------------------------------------------------
Market Yield 6.03%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.68%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.93%
--------------------------------------------------
Fund Net Assets ($000) $367,188
--------------------------------------------------
Average Effective Maturity (Years) 17.86
--------------------------------------------------
Leverage-Adjusted Duration 10.90
==================================================
ANNUALIZED TOTAL RETURN (Inception 2/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 11.99% 7.75%
--------------------------------------------------
5-Year 4.89% 5.20%
--------------------------------------------------
10-Year 6.41% 7.40%
==================================================
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 25%
--------------------------------------------------
Tax Obligation/General 16%
--------------------------------------------------
Housing/Single Family 11%
--------------------------------------------------
Education and Civic Organizations 10%
--------------------------------------------------
Transportation 9%
==================================================
Bar Chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
7/00 0.076
8/00 0.076
9/00 0.076
10/00 0.076
11/00 0.076
12/00 0.076
1/01 0.076
2/01 0.076
3/01 0.076
4/01 0.076
5/01 0.076
6/01 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
7/1/00 14.56
14.63
14.69
14.75
14.5
14.31
14.44
14.69
14.63
14.63
14.44
14.25
14.31
14.13
13.56
13.63
13.75
14
13.5
13.63
13.94
14
13.94
14
13.75
14.88
15.25
15.19
15.31
15.15
15.04
15.02
15.05
15.15
15.36
15.25
14.9
14.66
15.04
14.88
14.88
15.19
15.02
15.2
15.25
15
15.12
15.12
15.09
15.17
6/30/01 15.13
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. The rate shown for federal and state highlights the added value
of owning shares that are also exempt from state income taxes. It is based
on a combined federal and state income tax rate of 32.5%.
Nuveen Pennsylvania Premium Income Municipal Fund 2
Performance
Overview As of June 30, 2001
NPY
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 74%
AA 8%
A 7%
BBB 6%
NR 4%
Other 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $13.87
--------------------------------------------------
Net Asset Value $14.44
--------------------------------------------------
Market Yield 5.93%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.53%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.79%
--------------------------------------------------
Fund Net Assets ($000) $345,477
--------------------------------------------------
Average Effective Maturity (Years) 18.95
--------------------------------------------------
Leverage-Adjusted Duration 10.51
==================================================
ANNUALIZED TOTAL RETURN (Inception 3/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 19.04% 13.25%
--------------------------------------------------
5-Year 8.55% 6.99%
--------------------------------------------------
Since Inception 5.06% 6.04%
==================================================
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------
U.S.Guaranteed 13%
--------------------------------------------------
Utilities 12%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Water and Sewer 11%
==================================================
Bar Chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
7/00 0.065
8/00 0.065
9/00 0.065
10/00 0.065
11/00 0.065
12/00 0.065
1/01 0.065
2/01 0.065
3/01 0.0665
4/01 0.0665
5/01 0.0665
6/01 0.0685
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
7/1/00 12.56
12.94
12.56
12.44
12.81
12.5
12.75
12.63
12.75
12.81
12.75
12.63
12.5
12.5
12.38
12.19
12.13
12.19
12.25
12.31
12.38
12.5
12.31
12.63
12.94
13.5
13.69
13.63
13.63
13.65
13.54
13.52
13.53
13.9
13.65
13.55
13.55
13.27
13.52
13.59
13.8
13.64
13.65
13.37
13.51
13.45
13.55
13.74
13.83
13.73
6/30/01 13.87
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. The rate shown for federal and state highlights the added value
of owning shares that are also exempt from state income taxes. It is based
on a combined federal and state income tax rate of 32.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2000 of $0.0023 per share.
Nuveen Pennsylvania Dividend Advantage Municipal Fund
Performance
Overview As of June 30, 2001
NXM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 67%
AA 14%
A 7%
BBB 9%
NR 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.49
--------------------------------------------------
Net Asset Value $14.48
--------------------------------------------------
Market Yield 6.00%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.63%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.89%
--------------------------------------------------
Fund Net Assets ($000) $72,723
--------------------------------------------------
Average Effective Maturity (Years) 24.28
--------------------------------------------------
Leverage-Adjusted Duration 16.78
==================================================
TOTAL RETURN (Inception 3/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception -2.45% 2.06%
==================================================
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 20%
--------------------------------------------------
Education and Civic Organizations 14%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
Utilities 10%
==================================================
Bar Chart:
2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/01 0.0725
6/01 0.0725
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
3/30/01 15
15.01
15.1
15.25
15.25
15
15.01
15
15.09
14.96
14.8
14.66
14.67
6/30/01 14.49
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. The rate shown for federal and state highlights the added value
of owning shares that are also exempt from state income taxes. It is based
on a combined federal and state income tax rate of 32.5%.
Report of
Independent Auditors
THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND
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 New
Jersey Dividend Advantage Municipal Fund, Nuveen Pennsylvania Investment Quality
Municipal Fund, Nuveen Pennsylvania Premium Income Municipal Fund 2 and Nuveen
Pennsylvania Dividend Advantage Municipal Fund as of June 30, 2001, 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 auditing standards generally accepted
in the United States. 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, 2001, by correspondence with the custodian and brokers or
alternative procedures for confirmations not received. 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 New Jersey Dividend Advantage
Municipal Fund, Nuveen Pennsylvania Investment Quality Municipal Fund, Nuveen
Pennsylvania Premium Income Municipal Fund 2 and Nuveen Pennsylvania Dividend
Advantage Municipal Fund at June 30, 2001, and the results of their operations,
changes in their net assets and financial highlights for the periods indicated
therein in conformity with accounting principles generally accepted in the
United States.
/s/ Ernst & Young LLP
Chicago, Illinois
August 10, 2001
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 1.4%
$ 6,250 The Pollution Control Financing Authority of Salem County, New Jersey, 11/01 at 102 AA- $ 6,404,750
Waste Disposal Revenue Bonds (E.I. du Pont de Nemours and
Company - Chambers Works Project), 1991 Series A, 6.500%,
11/15/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 2.6%
6,600 The Children's Trust Fund, Commonwealth of Puerto Rico, Tobacco 7/10 at 100 Aa3 6,884,922
Settlement Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
5,000 New Jersey Economic Development Authority, Economic Development 12/01 at 100 N/R 5,010,200
Revenue Bonds (J & J Snack Foods Corporation of New Jersey
Project), Series 1991, 7.250%, 12/01/05 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.7%
4,390 Higher Education Student Assistance Authority of the State of 6/10 at 101 AAA 4,690,935
New Jersey, Student Loan Revenue Bonds, 2000 Series A,
6.125%, 6/01/17 (Alternative Minimum Tax)
135 Higher Education Assistance Authority of the State of New Jersey, 7/01 at 102 A 137,908
Senior Student Loan Revenue Bonds, 1991 Series A,
7.200%, 7/01/09 (Alternative Minimum Tax)
5,365 Higher Education Assistance Authority of the State of 6/07 at 102 AAA 5,720,324
New Jersey, Student Loan Revenue Bonds (NJ Class Loan
Program), Series 1997A, 5.800%, 6/01/16 (Alternative Minimum Tax)
2,900 New Jersey Economic Development Authority, School Revenue 2/08 at 101 N/R 2,823,150
Bonds (Gill/St. Bernard School), Series 1998, 6.000%, 2/01/25
New Jersey Educational Facilities Authority, Revenue Bonds
(St. Peter's College Issue), 1998 Series B:
1,000 5.375%, 7/01/18 7/08 at 102 BBB 981,430
1,750 5.500%, 7/01/27 7/08 at 102 BBB 1,730,908
1,250 New Jersey Educational Facilities Authority, Revenue Refunding 7/08 at 101 AAA 1,249,213
Bonds (Seton Hall University Project), 1998 Series F, 5.000%, 7/01/21
4,235 Puerto Rico Industrial, Educational, Medical, and Environmental 9/11 at 100 BBB 4,164,826
Control Facilities Financing Authority, Higher Education Revenue
Bonds (University of the Sacred Heart Project), Series 2001,
5.250%, 9/01/21 (DD, settling 7/02/01)
The State University of New Jersey, General Obligation Refunding
Bonds (Rutgers), 1992 Series A:
2,900 6.500%, 5/01/13 5/02 at 102 AA 3,031,486
1,725 6.500%, 5/01/18 5/02 at 102 AA 1,800,262
------------------------------------------------------------------------------------------------------------------------------------
Energy - 1.8%
8,000 Pollution Control Financing Authority of Middlesex County, 12/02 at 102 N/R 8,212,400
New Jersey, Pollution Control Revenue Refunding Bonds (Amerada
Hess Corporation Project), Series 1992, 6.875%, 12/01/22
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 8.2%
2,070 New Jersey Healthcare Facilities Financing Authority, Revenue Bonds 7/01 at 102 AAA 2,116,927
(Robert Wood Johnson University Hospital), Series B,
6.625%, 7/01/16
4,350 New Jersey Healthcare Facilities Financing Authority, Revenue 7/01 at 102 AAA 4,449,485
Bonds (Mercer Medical Center Issue), Series 1991, 6.500%, 7/01/10
New Jersey Healthcare Facilities Financing Authority, Refunding
Revenue Bonds (Atlantic City Medical Center Issue), Series C:
3,600 6.800%, 7/01/05 7/02 at 102 A- 3,798,072
2,800 6.800%, 7/01/11 7/02 at 102 A- 2,946,608
2,535 New Jersey Healthcare Facilities Financing Authority, Revenue 7/03 at 102 Baa2 2,505,467
Bonds (Deborah Heart and Lung Center Issue), Series 1993,
6.200%, 7/01/13
New Jersey Health Facilities Financing Authority, Revenue Bonds
(Robert Wood Johnson University Hospital), Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100 A+ 4,021,826
2,000 5.750%, 7/01/31 7/10 at 100 A+ 2,077,560
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
$ 4,320 New Jersey Healthcare Facilities Financing Authority, Revenue and 7/08 at 101 Aaa $ 4,294,339
Refunding Bonds (St. Barnabas Medical Center - West Hudson
Hospital Obligated Group), Series 1998A, 5.000%, 7/01/23
5,040 New Jersey Health Facilities Financing Authority, Revenue Bonds 7/10 at 100 AAA 5,144,530
(The Society of the Valley Obligated Group Issue), Series 2000,
5.375%, 7/01/31
2,000 New Jersey Health Facilities Financing Authority, Revenue Bonds 7/10 at 100 BBB 2,023,360
(St. Peter's University Hospital Issue), Series 2000A,
6.875%, 7/01/20
1,030 New Jersey Healthcare Facilities Financing Authority, Revenue 7/02 at 102 Baa3 1,060,447
Bonds (Palisades Medical Center Obligated Group Issue),
Series 1992, 7.500%, 7/01/06
3,500 New Jersey Healthcare Facilities Financing Authority, Revenue 7/09 at 101 AAA 3,533,740
Bonds (Meridian Health System Obligated Group Issue),
Series 1999, 5.250%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 11.1%
3,790 The Hudson County Improvement Authority, New Jersey, 6/04 at 100 AA 3,914,729
Multifamily Housing Revenue Bonds (Conduit Financing - Observer
Park Project), Series 1992A, 6.900%, 6/01/22 (Alternative Minimum Tax)
1,320 Housing Finance Corporation of the City of Long Branch, New Jersey, 10/01 at 100 N/R 1,326,389
Section 8 Assisted Housing Revenue Bonds (Washington Manor
Associates Ltd. - 1980 Elderly Project), 10.000%, 10/01/11
12,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/01 at 102 AAA 12,327,480
Housing Revenue Refunding Bonds (Presidential Plaza at Newport
Project - FHA-Insured Mortgages), 1991 Series 1, 7.000%, 5/01/30
4,500 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/05 at 102 AAA 4,725,090
Housing Revenue Bonds, 1995 Series A, 6.000%, 11/01/14
4,500 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/06 at 102 AAA 4,721,130
Housing Revenue Bonds, 1996 Series A, 6.250%, 5/01/28
(Alternative Minimum Tax)
New Jersey Housing and Mortgage Finance Agency, Section 8 Bonds,
1991 Series A:
3,000 6.800%, 11/01/05 11/01 at 102 AA- 3,074,280
2,500 6.900%, 11/01/07 11/01 at 102 AA- 2,562,725
4,700 6.950%, 11/01/08 11/01 at 102 AA- 4,818,675
1,000 7.100%, 11/01/11 11/01 at 102 AA- 1,025,750
9,650 New Jersey Housing and Mortgage Finance Agency, Housing 5/02 at 102 A+ 9,995,953
Revenue Bonds, 1992 Series A, 6.950%, 11/01/13
100 New Jersey Housing and Mortgage Finance Agency, Housing 11/02 at 102 A+ 104,798
Revenue Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
2,743 Housing Authority of the City of Newark, New Jersey, Housing 10/09 at 102 Aaa 2,888,232
Revenue Bonds (GNMA Collateralized - Fairview Apartments
Project), 2000 Series A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single-Family - 7.0%
3,505 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/01 at 101 AAA 3,550,740
Revenue Bonds, 1990 Series F-2, 6.300%, 4/01/25
(Alternative Minimum Tax)
2,580 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/05 at 101 1/2 AAA 2,697,854
Revenue Bonds, 1995 Series O, 6.350%, 10/01/27
(Alternative Minimum Tax)
4,415 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/07 at 101 1/2 AAA 4,604,668
Revenue Bonds, 1996 Series S, 6.050%, 10/01/28
(Alternative Minimum Tax)
10,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/07 at 101 1/2 AAA 10,396,900
Revenue Bonds, 1997 Series U, 5.850%, 4/01/29
(Alternative Minimum Tax)
10,325 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100 AAA 10,609,454
Revenue Bonds, 2000 Series CC, 5.875%, 10/01/31
(Alternative Minimum Tax)
710 Puerto Rico Housing Finance Corporation, Single Family Mortgage 10/01 at 102 AAA 726,174
Revenue Bonds (Portfolio One), Series C, 6.750%, 10/15/13
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 9.6%
$ 1,110 Township of East Brunswick, County of Middlesex, New Jersey, 4/03 at 101 Aa2 $ 1,131,112
General Obligation Refunding Bonds, Series 1993, 5.125%, 4/01/13
County of Essex, New Jersey, General Obligation Refunding Bonds
of 1996, Series A-1:
3,000 6.000%, 11/15/07 No Opt. Call Aaa 3,364,230
1,000 5.000%, 11/15/11 11/07 at 101 Aaa 1,044,130
2,320 City of Hoboken, New Jersey, Fiscal Year Adjustment General No Opt. Call AAA 2,867,149
Obligation Bonds, Series 1991, 8.900%, 8/01/06
5,250 Township of Howell, County of Monmouth, New Jersey, General 1/02 at 102 AAA 5,447,190
Obligation Refunding Bonds, Series 1991, 6.800%, 1/01/14
3,675 Jersey City, Hudson County, New Jersey, Fiscal Year Adjustment No Opt. Call AAA 4,422,238
Bonds, 1991 Series B, 8.400%, 5/15/06
The Board of Education of the Township of Middleton, County of
Monmouth, New Jersey, Refunding School Bonds:
3,500 5.000%, 8/01/22 8/10 at 100 AAA 3,506,195
1,500 5.000%, 8/01/27 8/10 at 100 AAA 1,495,380
1,000 The Monmouth County Improvement Authority, New Jersey, Revenue 7/07 at 101 AAA 1,062,060
Bonds (Howell Township Board of Education Project), Series 1997,
5.800%, 7/15/17
2,000 Town of Morristown, County of Morris, New Jersey, General 8/05 at 102 AAA 2,220,420
Obligation Refunding Bonds, Series 1995, 6.500%, 8/01/19
5,000 State of New Jersey, General Obligation Bonds, Various Series, 8/02 at 101 1/2 AA+ 5,268,850
6.375%, 8/01/11
State of New Jersey, General Obligation Bonds, Series D:
4,000 5.750%, 2/15/06 No Opt. Call AA+ 4,353,640
5,000 6.000%, 2/15/11 No Opt. Call AA+ 5,649,300
2,000 Commonwealth of Puerto Rico, General Obligation Bonds, Public 7/11 at 100 AAA 1,985,360
Improvement Refunding Series of 2001, 5.125%, 7/01/30
900 Township of West Deptford, County of Gloucester, New Jersey, 3/06 at 102 AAA 932,967
General Obligation Bonds, Series 1996, 5.250%, 3/01/14
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 7.8%
3,320 The Atlantic County Improvement Authority, New Jersey, Egg 11/10 at 100 Aaa 3,408,677
Harbor Township Guaranteed Revenue Bonds (The Egg Harbor
Township Golf Corporation Project), Series 2000, 5.400%, 11/01/30
1,000 The Board of Education of the Town of Dover, County of Morris, 12/01 at 100 AAA 1,014,580
New Jersey, Certificates of Participation (as Lessee), 6.600%, 6/01/11
10,000 The Essex County Improvement Authority, New Jersey, General 10/10 at 100 Aaa 10,930,400
Obligation Guaranteed Lease Revenue Bonds (County Correctional
Facility Project), Series 2000, 6.000%, 10/01/25
2,535 The Board of Education of the Township of Mansfield, County of 3/06 at 102 AAA 2,721,931
Warren, New Jersey, Certificates of Participation, 5.900%, 3/01/15
4,000 New Jersey Economic Development Authority, Lease Revenue Bonds 11/08 at 101 Aaa 3,804,480
(Bergen County Administration Complex), Series 1998,
4.750%, 11/15/26
2,045 New Jersey Sports and Exposition Authority, State Contract Bonds, 3/02 at 102 AA 2,126,289
1992 Series A, 6.500%, 3/01/19
1,895 North Bergen Township Municipal Utility Authority, New Jersey, No Opt. Call AAA 2,389,045
Sewer Revenue Refunding Bonds, Series 1993, 7.875%, 12/15/09
1,250 The Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101 Aa2 1,251,513
Revenue Bonds, Refunding Series 2000, 5.000%, 1/01/18
4,000 Passaic Valley Sewerage Commissioners, New Jersey, Sewer System 12/02 at 102 AAA 4,129,120
Bonds, Series D, 5.800%, 12/01/18
1,180 The Raritan Township Municipal Utilities Authority, Hunterdon County, 5/02 at 102 A+ 1,224,580
New Jersey, Revenue Bonds (Secured by a Service Contract with
the Township of Raritan), Series 1992 (Bank Qualified),
6.450%, 5/01/12
1,015 The South Toms River Sewerage Authority, Ocean County, 11/02 at 102 N/R 1,057,011
New Jersey, Sewer Refunding Revenue Bonds, Series 1992
(Bank-Qualified), 7.400%, 11/01/05
2,000 The Board of Education of the Township of West Orange, County 10/09 at 101 Aaa 2,180,340
of Essex, New Jersey, Certificates of Participation, 6.000%, 10/01/24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 18.9%
$ 3,275 Delaware River and Bay Authority, New Jersey and Delaware, 1/10 at 101 AAA $ 3,489,611
Revenue Bonds, Series 2000A, 5.750%, 1/01/29
7,000 Delaware River Port Authority, New Jersey and Pennsylvania, 1/06 at 102 AAA 7,217,770
Revenue Bonds, Series of 1995, 5.500%, 1/01/26
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100 AAA 3,721,165
Revenue Bonds, Series of 1999, 5.750%, 1/01/22
3,000 New Jersey Economic Development Authority, Economic 11/01 at 102 BBB- 3,079,980
Development Bonds (American Airlines, Inc. Project),
7.100%, 11/01/31 (Alternative Minimum Tax)
3,000 New Jersey Highway Authority, Senior Parkway Revenue and 1/10 at 101 AA- 3,155,760
Refunding Bonds (Garden State Parkway), 1999 Series,
5.625%, 1/01/30
3,065 New Jersey Highway Authority, Senior Parkway Revenue Refunding 1/02 at 102 AA- 3,168,597
Bonds (Garden State Parkway), 1992 Series, 6.250%, 1/01/14
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C:
9,000 6.500%, 1/01/08 No Opt. Call AAA 10,263,780
2,100 6.500%, 1/01/16 No Opt. Call A- 2,426,004
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 2000A:
9,275 5.500%, 1/01/25 1/10 at 100 AAA 9,648,504
10,000 5.500%, 1/01/27 1/10 at 100 A- 10,346,400
2,000 5.500%, 1/01/30 1/10 at 100 AAA 2,073,500
3,150 The Port Authority of New York and New Jersey, Consolidated Bonds, 7/04 at 101 AA- 3,265,574
Ninety-Fifth Series, 6.125%, 7/15/29 (Alternative Minimum Tax)
4,300 The Port Authority of New York and New Jersey, Special Project 6/02 at 102 BBB- 4,468,087
Bonds (Delta Airlines, Inc. Project - LaGuardia Airport Passenger
Terminal), Series 1R, 6.950%, 6/01/08
3,930 The Port Authority of New York and New Jersey, Consolidated 7/08 at 101 AA- 3,809,310
Bonds, One Hundred Twenty-Second Series, 5.125%, 1/15/36
(Alternative Minimum Tax)
The Port Authority of New York and New Jersey, Special Project
Bonds (JFK International Air Terminal LLC Project), Series 6:
4,755 5.750%, 12/01/22 (Alternative Minimum Tax) (DD, settling 7/02/01) 12/07 at 102 AAA 5,002,498
12,130 5.750%, 12/01/25 (Alternative Minimum Tax) 12/07 at 100 AAA 12,600,401
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 10.3%
7,000 The Bergen County Utilities Authority, New Jersey, 1992 Water 6/02 at 102 AAA 7,388,570
Pollution Control System Revenue Bonds, Series A,
6.500%, 12/15/12 (Pre-refunded to 6/15/02)
7,800 County of Essex, New Jersey, Fiscal Year Adjustment Bonds, 12/01 at 101 AAA 8,002,956
Series 1991, 6.500%, 12/01/11 (Pre-refunded to 12/01/01)
4,095 The Board of Education of the Township of Evesham, County 9/01 at 102 AAA 4,205,770
of Burlington, New Jersey, Certificates of Participation,
6.875%, 9/01/11 (Pre-refunded to 9/01/01)
5,600 New Jersey Economic Development Authority, Lease Rental 3/02 at 102 AAA 5,872,496
Bonds (Liberty State Park Project), 1992 Series, 6.800%, 3/15/22
(Pre-refunded to 3/15/02)
1,845 New Jersey Healthcare Facilities Financing Authority, Revenue 7/02 at 102 Baa3*** 1,941,254
Bonds (Palisades Medical Center Obligated Group Issue),
Series 1992, 7.500%, 7/01/06 (Pre-refunded to 7/01/02)
State of New Jersey, General Obligation Bonds, Various Series:
8,200 6.750%, 9/15/07 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+*** 8,392,044
850 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+*** 870,001
400 New Jersey Sports and Exposition Authority, State Contract Bonds, 3/02 at 102 AAA 418,048
1992 Series A, 6.500%, 3/01/19 (Pre-refunded to 3/01/02)
435 New Jersey Highway Authority, Senior Parkway Revenue Refunding 1/02 at 102 AA-*** 451,365
Bonds (Garden State Parkway), 1992 Series, 6.250%, 1/01/14
(Pre-refunded to 1/01/02)
7,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 7,762,725
Bonds, 2000 Series A, 5.500%, 10/01/34
2,450 University of Medicine and Dentistry of New Jersey, Revenue Bonds, 12/01 at 102 AA-*** 2,537,759
Series E, 6.500%, 12/01/18 (Pre-refunded to 12/01/01)
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 4.9%
$ 3,700 Pollution Control Financing Authority of Camden County, New Jersey, 12/01 at 102 B2 $ 3,593,329
Solid Waste Disposal and Resource Recovery System Revenue
Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax)
3,500 Pollution Control Financing Authority of Camden County, 12/01 at 102 B2 3,400,635
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991A, 7.500%, 12/01/10
(Alternative Minimum Tax)
400 New Jersey Economic Development Authority, Adjustable Fixed- 7/01 at 103 A2 417,000
Rate Pollution Control Revenue Bonds (Jersey Central Power
and Light Company Project), 1985 Series, 7.100%, 7/01/15
5,950 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101 1/2 AAA 6,318,662
Bonds, Series FF, 5.250%, 7/01/13
5,000 Puerto Rico Electric Power Authority, Power Revenue Refunding No Opt. Call AAA 5,832,950
Bonds, Series Y, 7.000%, 7/01/07
3,000 The Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101 AAA 2,946,960
Facility Senior Lease Revenue Bonds (Ogden Martin Systems of
Union, Inc. (Lessee)), Series 1998A, 5.000%, 6/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 6.3%
Cape May County Municipal Utilities Authority, New Jersey, Sewer
Revenue Refunding Bonds, Series 1992-A:
2,000 6.000%, 1/01/11 1/03 at 102 AAA 2,116,760
7,600 5.750%, 1/01/16 1/03 at 102 AAA 7,851,408
5,000 New Jersey Economic Development Authority, Water Facilities No Opt. Call N/R 5,002,450
Revenue Bonds (New Jersey-American Water Company, Inc.
Project), Series 1991, 7.400%, 11/01/01 (Alternative Minimum Tax)
7,500 New Jersey Economic Development Authority, Water Facilities 5/06 at 102 AAA 7,959,300
Revenue Bonds (New Jersey-American Water Company, Inc.
Project), Series 1996, 6.000%, 5/01/36 (Alternative Minimum Tax)
6,250 New Jersey Economic Development Authority, Water Facilities 7/08 at 102 AAA 6,256,620
Revenue Bonds (New Jersey-American Water Company, Inc.
Project), Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 424,983 Total Investments (cost $424,191,943) - 95.6% 443,150,286
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.4% 20,634,533
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 463,784,819
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
See accompanying notes to financial statements.
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 0.3%
$ 820 New Jersey Economic Development Authority, Economic Growth 12/03 at 102 Aa3 $ 857,400
Bonds (Composite Issue), 1992 Second Series T, 5.300%, 12/01/07
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 2.5%
6,600 The Children's Trust Fund, Commonwealth of Puerto Rico, 7/10 at 100 Aa3 6,884,922
Tobacco Settlement Asset-Backed Bonds, Series 2000,
5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 9.8%
Higher Education Student Assistance Authority of the State of
New Jersey, Student Loan Revenue Bonds, 2000 Series A:
3,180 5.700%, 6/01/08 (Alternative Minimum Tax) No Opt. Call AAA 3,434,909
2,140 6.000%, 6/01/15 (Alternative Minimum Tax) 6/10 at 101 AAA 2,290,142
3,370 New Jersey Economic Development Authority, Economic No Opt. Call N/R 3,741,340
Development Bonds (Yeshiva Ktana of Passaic - 1992 Project),
8.000%, 9/15/18
3,000 New Jersey Economic Development Authority, School Revenue 2/08 at 101 N/R 2,920,500
Bonds (Gill/St. Bernard School), Series 1998, 6.000%, 2/01/25
755 New Jersey Educational Facilities Authority, Revenue Bonds 7/01 at 100 A 757,235
(Trenton State College Issue), Series 1976D, 6.750%, 7/01/08
2,095 New Jersey Educational Facilities Authority, Refunding Revenue 7/02 at 102 AAA 2,201,321
Bonds (Trenton State College Issue), Series 1992E, 6.000%, 7/01/09
1,000 New Jersey Educational Facilities Authority, Revenue Bonds 7/04 at 102 AAA 1,051,560
(New Jersey Institute of Technology Issue), Series 1994A,
6.000%, 7/01/24
3,330 New Jersey Educational Facilities Authority, Revenue Bonds 7/06 at 101 AAA 3,498,964
(Montclair State University - Dormitory/Cafeteria Facility),
Series 1996-C, 5.400%, 7/01/12
2,500 New Jersey Educational Facilities Authority, Revenue Bonds 7/10 at 100 AAA 2,631,400
(Princeton University), Series 2000E, 5.500%, 7/01/17
580 Higher Education Assistance Authority of the State of New Jersey, 7/02 at 102 A+ 597,533
Student Loan Revenue Bonds (NJ Class Loan Program),
1992 Series A, 6.125%, 7/01/09 (Alternative Minimum Tax)
3,640 Higher Education Assistance Authority of the State of New Jersey, 6/09 at 101 AAA 3,700,388
Student Loan Revenue Bonds, 1999 Series A, 5.250%, 6/01/18
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 5.1%
795 New Jersey Healthcare Facilities Financing Authority, Refunding 8/04 at 102 Aa2 864,014
Revenue Bonds (Wayne General Hospital Corp. Issue -
FHA-Insured Mortgage), Series B, 5.750%, 8/01/11
New Jersey Healthcare Facilities Financing Authority, Revenue
Bonds (Dover General Hospital and Medical Center Issue), Series
1994:
1,015 7.000%, 7/01/03 No Opt. Call AAA 1,090,881
800 7.000%, 7/01/04 No Opt. Call AAA 881,504
1,900 New Jersey Healthcare Facilities Financing Authority, Revenue 1/10 at 101 A3 1,984,607
Bonds (Hackensack University Medical Center Issue),
Series 2000, 6.000%, 1/01/34
2,000 New Jersey Health Facilities Financing Authority, Revenue 7/10 at 100 AAA 2,162,660
Bonds (The Society of the Valley Obligated Group Issue),
Series 2000, 5.750%, 7/01/15
7,000 Puerto Rico Industrial, Medical, Educational, and Environmental 12/03 at 103 A2 6,935,180
Pollution Control Facilities Financing Authority, Adjustable Rate
Industrial Revenue Bonds (American Home Products Corporation),
1983 Series A, 5.100%, 12/01/18
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 9.4%
$ 800 Housing Finance Corporation of the City of Long Branch, 10/01 at 100 N/R $ 803,872
New Jersey, Section 8 Assisted Housing Revenue Bonds
(Washington Manor Associates Ltd. - 1980 Elderly Project),
10.000%, 10/01/11
4,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/01 at 102 AAA 4,109,160
Housing Revenue Refunding Bonds (Presidential Plaza at Newport
Project - FHA-Insured Mortgages), 1991 Series 1, 7.000%, 5/01/30
2,875 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/05 at 102 AAA 3,018,808
Housing Revenue Bonds, 1995 Series A, 6.000%, 11/01/14
7,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101 1/2 AAA 7,072,940
Housing Revenue Bonds, 1997 Series A, 5.550%, 5/01/27
(Alternative Minimum Tax)
New Jersey Housing and Mortgage Finance Agency, Housing Revenue
Bonds, 1992 Series A:
2,365 6.700%, 5/01/05 5/02 at 102 A+ 2,440,018
8,000 6.950%, 11/01/13 5/02 at 102 A+ 8,286,800
135 New Jersey Housing and Mortgage Finance Agency, Housing 11/02 at 102 A+ 141,477
Revenue Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.2%
1,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/05 at 101 1/2 AAA 1,044,730
Revenue Bonds, 1995 Series O, 6.300%, 10/01/23
(Alternative Minimum Tax)
525 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/06 at 101 1/2 AAA 547,187
Revenue Bonds, 1996 Series P, 5.650%, 4/01/14
6,130 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/07 at 101 1/2 AAA 6,393,345
Revenue Bonds, 1996 Series S, 6.050%, 10/01/28
(Alternative Minimum Tax)
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Revenue Bonds, 1997 Series U:
1,965 5.700%, 10/01/14 (Alternative Minimum Tax) 10/07 at 101 1/2 AAA 2,076,081
1,500 5.850%, 4/01/29 (Alternative Minimum Tax) 10/07 at 101 1/2 AAA 1,559,535
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.2%
3,255 New Jersey Economic Development Authority, Revenue Bonds 4/03 at 103 A+ 3,419,215
(Morris Hall/St. Lawrence, Inc. Project), Series 1993A,
6.150%, 4/01/13
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 8.8%
State of New Jersey, General Obligation Bonds, Series D:
2,760 5.750%, 2/15/06 No Opt. Call AA+ 3,004,012
4,000 5.800%, 2/15/07 No Opt. Call AA+ 4,393,440
2,500 6.000%, 2/15/11 No Opt. Call AA+ 2,824,650
1,560 6.000%, 2/15/13 No Opt. Call AA+ 1,769,196
4,000 County of Passaic, New Jersey, General Improvement Refunding No Opt. Call AAA 4,240,840
Bonds, Series 1993, 5.125%, 9/01/12
5,000 Commonwealth of Puerto Rico, General Obligation Bonds, Public 7/05 at 101 1/2 AAA 5,206,300
Improvement Refunding Series of 1995, 5.750%, 7/01/24
1,000 Commonwealth of Puerto Rico, General Obligation Bonds, Public 7/11 at 100 AAA 992,680
Improvement Refunding Series of 2001, 5.125%, 7/01/30
1,800 The Township of Woodbridge in the County of Middlesex, State 7/09 at 102 Aaa 1,847,088
of New Jersey, Sewer Utility Bonds, Series 1999, 5.300%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 14.4%
1,275 Camden County Improvement Authority, New Jersey, County 10/05 at 102 AAA 1,335,716
Guaranteed Lease Revenue Bonds, Series of 1995,
5.625%, 10/01/15
1,000 Hudson County Improvement Authority, State of New Jersey, 1/08 at 101 1/2 AAA 1,022,270
Utility System Revenue Bonds (Harrison Franchise Acquisition
Project), Series 1997, 5.350%, 1/01/27
2,250 New Jersey Building Authority, State Building Revenue Bonds, 6/10 at 100 AA 2,270,880
Series 2000A, 5.125%, 6/15/20
2,000 New Jersey Economic Development Authority, Lease Revenue 11/08 at 101 Aaa 1,902,240
Bonds (Bergen County Administration Complex), Series 1998,
4.750%, 11/15/26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 1,000 New Jersey Economic Development Authority, Revenue Bonds 8/03 at 102 AAA $ 1,035,450
(Public Schools Small Project Loan Program), Series 1993,
5.400%, 8/15/12
1,500 New Jersey Economic Development Authority, Market Transition No Opt. Call AAA 1,652,370
Facility Senior Lien Revenue Bonds, Series 1994A, 7.000%, 7/01/04
2,000 New Jersey Transit Corporation, Certificates of Participation 9/09 at 100 AAA 2,214,380
(Federal Transit Administration Grants), Series 2000A,
6.125%, 9/15/15
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, 1995 Series A:
500 5.500%, 6/15/12 6/05 at 102 AAA 528,480
5,000 5.000%, 6/15/15 6/05 at 102 AAA 5,065,450
1,100 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102 AAA 1,147,883
System Bonds, 1995 Series B, 5.500%, 6/15/15
1,040 Passaic Valley Sewerage Commissioners, State of New Jersey, 12/02 at 102 AAA 1,081,226
Sewer System Bonds, Series D, 5.750%, 12/01/10
510 The Board of Education of the Township of Piscataway, County 6/03 at 102 AAA 530,216
of Middlesex, New Jersey, Certificates of Participation,
1993 Series, 5.375%, 12/15/10
8,160 Puerto Rico Public Building Authority, Public Education and Health 7/03 at 101 1/2 A 8,434,421
Facilities Refunding Bonds (Guaranteed by the Commonwealth
of Puerto Rico), Series M, 5.750%, 7/01/15
7,500 Puerto Rico Municipal Finance Agency, 1999 Series A Bonds, 8/09 at 101 AAA 7,912,200
5.500%, 8/01/17
1,000 The Stony Brook Regional Sewerage Authority, Princeton, No Opt. Call AA- 1,089,220
New Jersey, Revenue Refunding Bonds, 1993 Series B,
5.450%, 12/01/12
2,250 Western Monmouth Utilities Authority, Monmouth County, 2/05 at 102 AAA 2,365,673
New Jersey, Revenue Refunding Bonds, 1995 Series A,
5.600%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 22.5%
5,000 Delaware River Port Authority, New Jersey, Port District Project 1/08 at 101 AAA 5,007,750
Bonds, Series B of 1998, 5.000%, 1/01/19
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C:
1,000 6.500%, 1/01/08 No Opt. Call A- 1,127,620
2,185 6.500%, 1/01/16 No Opt. Call AAA 2,581,293
3,505 6.500%, 1/01/16 No Opt. Call AAA 4,140,702
8,420 6.500%, 1/01/16 No Opt. Call A- 9,727,121
2,495 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 1/10 at 100 AAA 2,595,474
Series 2000A, 5.500%, 1/01/25
3,000 The Port Authority of New York and New Jersey, Consolidated 10/04 at 101 AAA 3,229,140
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 5.750%, 11/01/09 (Alternative Minimum Tax) 5/05 at 101 AAA 1,270,428
2,500 5.750%, 11/01/14 (Alternative Minimum Tax) 5/05 at 101 AAA 2,608,825
1,500 The Port Authority of New York and New Jersey, Consolidated Bonds, 7/06 at 101 AA- 1,583,880
One Hundred Sixth Series, 6.000%, 7/01/16
(Alternative Minimum Tax)
2,500 The Port Authority of New York and New Jersey, Consolidated Bonds, 6/05 at 101 AAA 2,605,875
One Hundredth Series, 5.750%, 12/15/20
2,000 The Port Authority of New York and New Jersey, Consolidated Bonds, 6/05 at 101 AA- 2,051,560
One Hundred Twelfth Series, 5.250%, 12/01/13
(Alternative Minimum Tax)
The Port Authority of New York and New Jersey, Special Project
Bonds (JFK International Air Terminal LLC Project), Series 6:
10,000 5.750%, 12/01/22 (Alternative Minimum Tax) 12/07 at 102 AAA 10,520,500
11,000 5.750%, 12/01/25 (Alternative Minimum Tax) 12/07 at 100 AAA 11,426,580
1,435 South Jersey Transportation Authority, New Jersey, Transportation 11/09 at 101 AAA 1,445,217
System Revenue Bonds, 1999 Series, 5.125%, 11/01/22
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 8.3%
$ 1,000 The Essex County Utilities Authority, New Jersey, Solid Waste 4/06 at 102 AAA $ 1,099,590
System Revenue Bonds (Secured by a County Deficiency
Agreement), Series 1996A, 5.600%, 4/01/16 (Pre-refunded
to 4/01/06)
2,000 New Jersey Healthcare Facilities Financing Authority, Revenue 7/04 at 102 AAA 2,200,420
Bonds (Monmouth Medical Center Issue), Series C,
6.250%, 7/01/16 (Pre-refunded to 7/01/04)
New Jersey Educational Facilities Authority, Revenue Bonds
(Trenton State College Issue), Series 1996A:
4,000 5.100%, 7/01/21 (Pre-refunded to 7/01/06) 7/06 at 101 AAA 4,289,880
3,750 5.125%, 7/01/24 (Pre-refunded to 7/01/06) 7/06 at 101 AAA 4,026,000
2,500 New Jersey Educational Facilities Authority, Revenue Bonds 7/06 at 101 AAA 2,783,175
(Rowan College of New Jersey Issue), Series 1996E,
6.000%, 7/01/21 (Pre-refunded to 7/01/06)
1,115 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 1,198,937
1984 Series, 10.375%, 1/01/03
3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/02 at 101 1/2 AAA 3,675,525
Series R, 6.250%, 7/01/17 (Pre-refunded to 7/01/02)
Sparta Township School District, New Jersey, General Obligation
Bonds (Unlimited Tax):
1,100 5.800%, 9/01/19 (Pre-refunded to 9/01/06) 9/06 at 100 AAA 1,208,592
1,100 5.800%, 9/01/20 (Pre-refunded to 9/01/06) 9/06 at 100 AAA 1,208,592
1,100 5.800%, 9/01/21 (Pre-refunded to 9/01/06) 9/06 at 100 AAA 1,208,592
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 3.7%
2,310 Pollution Control Financing Authority of Camden County, No Opt. Call B2 2,297,203
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991C, 7.125%, 12/01/01
(Alternative Minimum Tax)
5,890 Pollution Control Financing Authority of Camden County, 12/01 at 102 B2 5,840,877
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
2,000 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101 1/2 AAA 2,123,920
Bonds, Series FF, 5.250%, 7/01/13
------------------------------------------------------------------------------------------------------------------------------------
Water-and-Sewer - 8.5%
5,250 Cape May County Municipal Utilities Authority, New Jersey, 1/03 at 102 AAA 5,423,670
Sewer Revenue Refunding Bonds, Series 1992-A, 5.750%, 1/01/16
1,000 The Jersey City Sewerage Authority, Hudson County, New Jersey, No Opt. Call AAA 1,154,040
Sewer Revenue Refunding Bonds, Series 1993, 6.250%, 1/01/14
1,485 New Jersey Economic Development Authority, Water Facilities 8/01 at 102 A+ 1,516,423
Refunding Bonds (Elizabethtown Water Company Project),
1991 Series B, 6.700%, 8/01/21 (Alternative Minimum Tax)
3,100 New Jersey Economic Development Authority, Water Facilities 3/04 at 102 AAA 3,225,054
Revenue Refunding Bonds (Hackensack Water Company
Project), 1994 Series B, 5.900%, 3/01/24 (Alternative
Minimum Tax)
3,250 New Jersey Economic Development Authority, Water Facilities 7/08 at 102 AAA 3,253,445
Revenue Bonds (New Jersey-American Water Company, Inc.
Project), Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax)
7,000 The North Hudson Sewerage Authority, New Jersey, Sewer Revenue 8/06 at 101 AAA 7,036,820
Bonds, Series 1996, 5.125%, 8/01/22
1,500 The Wanaque Valley Regional Sewerage Authority, Passaic No Opt. Call AAA 1,649,534
County, New Jersey, Sewer Revenue Refunding Bonds (Insured),
1993 Series B, 5.750%, 9/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 258,465 Total Investments (cost $256,756,642) - 98.7% 271,608,163
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 3,442,746
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 275,050,909
====================================================================================================================
* 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.
See accompanying notes to financial statements.
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 4.2%
$ 5,715 The Children's Trust Fund, Commonwealth of Puerto Rico, Tobacco 7/10 at 100 Aa3 $ 6,000,636
Settlement Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 10.5%
2,000 New Jersey Educational Facilities Authority, Revenue Bonds 7/11 at 101 AAA 1,977,000
(Rowan University), Series 2001C, 5.000%, 7/01/31
200 New Jersey Educational Facilities Authority, Revenue Bonds 7/11 at 100 AAA 207,004
(Seton Hall University Project), Series 2001A Refunding,
5.250%, 7/01/16
New Jersey Educational Facilities Authority, Revenue Bonds
(Seton Hall University Project), Series 2001G Refunding:
3,820 4.875%, 7/01/21 7/11 at 100 Aaa 3,752,921
1,600 5.000%, 7/01/26 7/11 at 100 Aaa 1,589,824
1,565 New Jersey Educational Facilities Authority, Revenue Bonds 7/10 at 100 AAA 1,618,899
(Princeton University), Series 2000E, 5.250%, 7/01/16
Puerto Rico Industrial, Educational, Medical, and Environmental
Control Facilities Financing Authority, Higher Education Revenue
Bonds (University of the Sacred Heart Project), Series 2001:
2,000 5.250%, 9/01/21 9/11 at 100 BBB 1,966,860
2,000 5.250%, 9/01/31 9/11 at 100 BBB 1,939,500
1,905 University of Puerto Rico, University System Revenue Bonds, 6/05 at 101 1/2 AAA 1,923,726
Series M, 5.250%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 18.9%
500 New Jersey Healthcare Facilities Financing Authority, Revenue 7/10 at 101 BBB- 507,470
Bonds (Trinitas Hospital Obligated Group Issue), Series 2000,
7.500%, 7/01/30
New Jersey Health Facilities Financing Authority, Revenue Bonds
(Robert Wood Johnson University Hospital), Series 2000:
3,000 5.750%, 7/01/25 7/10 at 100 A+ 3,133,890
14,735 5.750%, 7/01/31 7/10 at 100 A+ 15,306,423
6,000 New Jersey Healthcare Facilities Financing Authority, Revenue 1/09 at 101 AAA 5,418,360
Bonds (Virtua Health System), Series 1998, 4.500%, 7/01/28
2,500 New Jersey Healthcare Facilities Financing Authority, Revenue 7/09 at 101 A2 2,522,075
Bonds (Burdette Tomlin Memorial Hospital), Series 1999 Refunding,
5.500%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
Industrial/Other - 0.4%
500 New Jersey Economic Development Authority, District Heating 12/03 at 102 BBB- 505,725
and Cooling Revenue Bonds (Trigen-Trenton Project), 1993 Series B,
6.100%, 12/01/04 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.0%
New Jersey Economic Development Authority, Economic Development
Revenue Bonds (Masonic Charity Foundation Project), Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102 A+ 1,079,150
335 5.500%, 6/01/31 6/11 at 102 A+ 340,407
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 14.3%
Board of Education of the Township of Hamilton, County of
Mercer, New Jersey, General Obligation Bonds, Series 2001:
1,850 4.750%, 8/15/18 8/10 at 100 AAA 1,813,148
1,630 4.750%, 8/15/19 8/10 at 100 AAA 1,588,712
Commonwealth of Puerto Rico, General Obligation Bonds, Public
Improvement Refunding Series of 2001:
3,500 5.250%, 7/01/27 7/11 at 100 AAA 3,544,275
13,500 5.125%, 7/01/30 7/11 at 100 AAA 13,401,180
------------------------------------------------------------------------------------------------------------------------------------
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 7.9%
New Jersey Economic Development Authority, School Facilities
Construction Bonds, 2001 Series A:
$ 2,000 5.250%, 6/15/19 6/11 at 100 AAA $ 2,045,900
2,400 5.000%, 6/15/21 6/11 at 100 AAA 2,402,736
3,110 New Jersey Transportation Trust Fund Authority, Transportation 6/09 at 100 AA 3,127,167
System Bonds, 1998 Series A, 5.000%, 6/15/17
2,350 Puerto Rico Highway and Transportation Authority, Transportation 7/18 at 100 AAA 2,171,635
Revenue Bonds, Series A, 4.750%, 7/01/38
1,500 Virgin Islands Public Finance Authority, Revenue and Refunding 10/08 at 101 AA 1,519,950
Bonds (Virgin Islands Matching Fund Loan Notes), Series 1998A
(Senior Lien/Refunding), 5.500%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 18.4%
10,000 New Jersey Economic Development Authority, Special Facilities 11/10 at 101 BB 10,281,000
Revenue Bonds (Continental Airlines, Inc. Project), Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
3,000 The Port Authority of New York and New Jersey, Consolidated 1/07 at 101 AAA 3,059,520
Bonds, One Hundred Ninth Series, 5.375%, 1/15/32
3,500 The Port Authority of New York and New Jersey, Consolidated 10/07 at 101 AAA 3,551,135
Bonds, One Hundred Twentieth Series, 5.500%, 10/15/35
(Alternative Minimum Tax)
5,000 The Port Authority of New York and New Jersey, Special 12/07 at 102 AAA 5,260,250
Project Bonds (JFK International Air Terminal LLC Project),
Series 6, 5.750%, 12/01/22 (Alternative Minimum Tax)
4,000 South Jersey Transportation Authority, New Jersey, Transportation 11/09 at 101 AAA 4,028,480
System Revenue Bonds, 1999 Series, 5.125%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 2.9%
4,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 4,133,960
Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 3.4%
5,000 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds 8/11 at 100 AAA 4,807,150
(1998 General Ordinance), Third Series, 5.125%, 8/01/31
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 17.2%
4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102 AAA 4,698,778
Revenue Bonds (New Jersey-American Water Company, Inc.
Project), Series 1997B, 5.375%, 5/01/32
5,000 New Jersey Economic Development Authority, Water Facilities 7/08 at 102 AAA 5,005,300
Revenue Bonds (New Jersey-American Water Company, Inc.
Project), Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax)
7,000 New Jersey Economic Development Authority, Water Facilities 2/08 at 102 AAA 7,070,210
Revenue Bonds (Middlesex Water Company Project), Series 1998,
5.350%, 2/01/38 (Alternative Minimum Tax)
2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101 AAA 2,605,503
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 The North Hudson Sewerage Authority, New Jersey, Sewer No Opt. Call Aaa 5,047,574
Revenue Bonds, Series 2001A Refunding, 0.000%, 8/01/23
------------------------------------------------------------------------------------------------------------------------------------
$ 150,965 Total Investments (cost $139,546,079) - 99.1% 140,953,433
=============-----------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 4.2%
2,000 The Port Authority of New York and New Jersey, Versatile VMIG-1 2,000,000
Structure Obligations, Series 5, Variable Rate Demand Bonds,
3.100%, 8/1/24+
4,000 City of Valdez, Alaska, Marine Terminal Revenue Refunding VMIG-1 4,000,000
Bonds, (Exxon Pipeline Company Project), 1993 Series B,
Variable Rate Demand Bonds, 3.250%, 12/01/33+
------------------------------------------------------------------------------------------------------------------------------------
$ 6,000 Total Short-Term Investments (cost $6,000,000) 6,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (3.3)% (4,766,930)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 142,186,503
====================================================================================================================
* 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.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 3.5%
$ 13,300 Pennsylvania Economic Development Financing Authority, No Opt. Call AA $ 13,028,414
Solid Waste Disposal Revenue Bonds (Procter & Gamble Paper
Project), Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 9.6%
2,000 Allegheny County Higher Education Building Authority 9/08 at 102 BBB 1,854,560
(Commonwealth of Pennsylvania), College Revenue Bonds
(Chatham College), Series A of 1998, 5.250%, 9/01/18
3,000 Delaware County Authority (Commonwealth of Pennsylvania), 11/10 at 101 AA 3,146,790
Haverford College Revenue Bonds, Series of 2000,
5.750%, 11/15/29
1,030 Delaware County Authority (Commonwealth of Pennsylvania), 8/01 at 100 AAA 1,033,286
University Revenue Bonds (Villanova University), Series of 1991,
6.900%, 8/01/16
1,000 The General Municipal Authority of the Borough of Harveys Lake, 11/09 at 100 A 1,021,930
Pennsylvania, College Revenue Bonds (College Misericordia
Project), Series of 1999, 6.000%, 5/01/19
1,450 Indiana County Industrial Development Authority, Pennsylvania, 11/06 at 100 AAA 1,491,949
Revenue Bonds (The Student Cooperative Association, Inc./
Indiana University of Pennsylvania Student Union Project),
Series 1999A, 5.875%, 11/01/29
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds (The Student Cooperative Association, Inc./Indiana
University of Pennsylvania Student Union Project), Series 1999B:
815 0.000%, 11/01/15 No Opt. Call AAA 388,739
815 0.000%, 11/01/16 No Opt. Call AAA 365,332
815 0.000%, 11/01/17 No Opt. Call AAA 343,963
815 0.000%, 11/01/18 No Opt. Call AAA 323,531
815 0.000%, 11/01/19 No Opt. Call AAA 304,565
2,750 Northeastern Pennsylvania Hospital and Education Authority, 10/08 at 100 AAA 2,495,130
Luzerne County, Pennsylvania, School Revenue Bonds (Wyoming
Seminary Project), Series of 1998, 4.750%, 10/01/28
4,000 Pennsylvania Higher Education Assistance Agency, Fixed-Rate 9/01 at 102 AAA 4,127,360
Student Loan Revenue Bonds, 1991 Series C, 7.150%, 9/01/21
(Alternative Minimum Tax)
3,000 Pennsylvania Higher Education Assistance Agency, Student Loan 9/02 at 102 AAA 3,085,230
Revenue Bonds, 1992 Series C, 6.400%, 3/01/22 (Alternative
Minimum Tax)
3,825 The Pennsylvania State University, Refunding Bonds, Series 1992, 3/02 at 102 Aa2 3,982,437
6.250%, 3/01/11
2,900 Scranton-Lackawanna Health and Welfare Authority, City of 3/02 at 102 A- 3,011,302
Scranton, Lackawanna County, Pennsylvania, University Revenue
Bonds (University of Scranton Project), 1992 Series A,
6.500%, 3/01/13
8,445 Swarthmore Borough Authority, Pennsylvania, Swarthmore College 9/08 at 100 Aaa 8,067,424
Revenue Bonds, Series of 1998, 5.000%, 9/15/28
340 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at 102 N/R 357,367
Pennsylvania, College Misericordia Revenue Bonds, Refunding
Series B of 1992, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 5.2%
9,500 Pennsylvania Higher Educational Facilities Authority, UPMC 1/11 at 101 A+ 9,644,210
Health System Revenue Bonds, Series 2001A, 6.000%, 1/15/31
3,520 The Hospitals and Higher Education Facilities Authority of 12/01 at 102 AAA 3,648,973
Philadelphia, Pennsylvania, Hospital Revenue Refunding Bonds
(Magee Rehabilitation Hospital Project), Series of 1991,
7.000%, 12/01/10
5,500 Healthcare Facilities Authority of Sayre, Pennsylvania, Variable 12/01 at 103 AAA 5,752,945
Rate Hospital Revenue Bonds (VHA of Pennsylvania, Inc. -
Capital Asset Financing Program), Series of 1985E (Guthrie
Healthcare System Conversion), 7.200%, 12/01/20
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 0.3%
$ 990 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 2/02 at 102 A $ 1,015,344
Redevelopment Mortgage Revenue Bonds, 1992 Series C,
7.125%, 8/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 9.9%
8,750 Allegheny County Residential Finance Authority, Pennsylvania, No Opt. Call Aaa 1,453,200
Single Family Mortgage Revenue Bonds, 1994 Series Z,
0.000%, 5/01/27 (Alternative Minimum Tax)
50 Redevelopment Authority of the City of Altoona, Pennsylvania, 12/01 at 102 A3 51,220
Home Improvement Loan Revenue Bonds (Cities of Altoona
and Meadville Program), Series of 1991 (FHA Title 1 Insured
Loans), 7.150%, 12/01/09 (Alternative Minimum Tax)
1,385 Redevelopment Authority of the County of Berks, Pennsylvania, No Opt. Call A+ 1,469,776
Senior Single Family Mortgage Revenue Bonds, 1986 Series A,
8.000%, 12/01/17 (Alternative Minimum Tax)
3,015 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/02 at 102 AA+ 3,167,348
Revenue Bonds, Series 1992-33, 6.900%, 4/01/17
1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/02 at 102 AA+ 1,027,930
Revenue Bonds, Series 1992-34B, 7.000%, 4/01/24
(Alternative Minimum Tax)
2,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/05 at 102 AA+ 2,105,880
Revenue Bonds, Series 1995-46, 6.200%, 10/01/14
(Alternative Minimum Tax)
1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 1,032,070
Revenue Bonds, Series 1996-48, 6.150%, 4/01/25
(Alternative Minimum Tax)
5,725 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 5,996,308
Revenue Bonds, Series 1996-49, 6.450%, 4/01/25
(Alternative Minimum Tax)
4,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 4,187,440
Revenue Bonds, Series 1996-50B, 6.350%, 10/01/27
(Alternative Minimum Tax)
5,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 5,194,400
Revenue Bonds, Series 1996-52B, 6.250%, 10/01/24
(Alternative Minimum Tax)
5,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/07 at 101 1/2 AA+ 5,094,850
Revenue Bonds, Series 1997-59A, 5.750%, 10/01/23
(Alternative Minimum Tax)
1,475 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/06 at 102 AAA 1,521,817
Mortgage Revenue Bonds, 1996 Series C, 6.550%, 4/01/28
(Alternative Minimum Tax)
1,095 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/07 at 102 AAA 1,144,067
Mortgage Revenue Bonds, 1997 Series A, 6.250%, 10/01/28
(Alternative Minimum Tax)
2,865 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 10/01 at 102 AAA 2,923,589
Mortgage Revenue Bonds, 1991 Series G, 7.050%, 4/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.3%
3,225 Montgomery County Higher Education and Health Authority, 1/06 at 101 BBB 2,965,710
Pennsylvania, Mortgage Revenue Bonds (Waverly Heights Project),
Series 1996, 6.375%, 1/01/26
1,500 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101 AAA 1,478,430
Revenue Bonds (The Philadelphia Corporation for the Aging
Project), Series 2001B, 5.250%, 7/01/26
485 The Hospitals and Higher Education Facilities Authority of 8/02 at 102 A+ 508,450
Philadelphia, Pennsylvania, Hospital Revenue Bonds (Children's
Seashore House), Series 1992A, 7.000%, 8/15/03
------------------------------------------------------------------------------------------------------------------------------------
Tax-Obligation/General - 15.1%
3,550 County of Alleghney, Pennsylvania, General Obligation Bonds, 5/11 at 100 AAA 3,553,799
Series 52, 5.250%, 11/01/23
3,120 County of Allegheny, Pennsylvania, General Obligation Refunding 5/11 at 100 AAA 3,142,433
Bonds, Series C-53, 5.250%, 11/01/20
2,000 Canon-McMillan School District, Washington County, Pennsylvania, No Opt. Call AAA 517,840
General Obligation Bonds, 0.000%, 12/01/25
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Redevelopment Authority of the City of Harrisburg, Dauphin
County, Pennsylvania, Guaranteed Revenue Bonds, Series B of
1998:
$ 2,750 0.000%, 5/01/24 5/16 at 68 1/32 AAA $ 745,113
2,750 0.000%, 11/01/24 5/16 at 66 5/16 AAA 724,130
5,160 0.000%, 5/01/25 5/16 at 64 9/16 AAA 1,314,304
Mckeesport Area School District, Allegheny County, Pennsylvania,
General Obligation Bonds, Series of 1999C:
3,430 0.000%, 10/01/23 No Opt. Call AAA 1,007,734
3,380 0.000%, 10/01/24 No Opt. Call AAA 937,747
3,420 0.000%, 10/01/25 No Opt. Call AAA 893,714
2,340 0.000%, 10/01/26 No Opt. Call AAA 577,161
2,340 0.000%, 10/01/27 No Opt. Call AAA 544,518
2,340 0.000%, 10/01/29 No Opt. Call AAA 484,731
7,500 County of Montgomery, Pennsylvania, General Obligation Bonds, 7/09 at 100 Aaa 7,324,350
Series 1999, 5.000%, 7/15/24
6,000 Commonwealth of Pennsylvania, General Obligation Bonds, 3/02 at 101 1/2 AA 6,234,420
First Series of 1992, 6.375%, 9/15/11
4,000 City of Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100 AAA 3,793,400
Series 2000, 5.000%, 9/15/31
15,000 The School District of Philadelphia, Pennsylvania, General Obligation 9/05 at 101 AAA 15,190,350
Bonds, Series B of 1995, 5.500%, 9/01/25
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100 AAA 6,067,914
General Obligation Bonds, Series 2001, 5.250%, 9/15/30
2,000 Sto-Rox School District, Allegheny County, Pennsylvania, General 12/10 at 100 AAA 2,236,920
Obligation Bonds, Series 2000, 5.800%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 7.7%
5,500 Port Authority of Allegheny County, Pennsylvania, Special 3/11 at 101 AAA 5,249,970
Transportation Revenue Bonds, Series 2001, 5.000%, 3/01/29
4,390 Fairview Township Authority, York County, Pennsylvania, Guaranteed 11/01 at 100 AAA 4,434,602
Sewer Revenue Bonds, Series of 1991, 6.700%, 11/01/21
9,225 Pennsylvania Intergovernmental Cooperation Authority, Special 6/09 at 100 AAA 8,497,886
Tax Revenue Refunding Bonds (City of Philadelphia Funding
Program), Series of 1999, 4.750%, 6/15/23
3,500 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/08 at 100 AAA 3,184,370
Revenue Bonds, Series A of 1998, 4.750%, 12/01/27
5,000 Public Auditorium Authority of Pittsburgh and Allegheny County, 8/09 at 101 AAA 4,773,150
Pennsylvania, Regional Asset District Sales Tax Revenue Bonds,
Series of 1999, 5.000%, 2/01/29
1,090 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, Tax 11/09 at 100 A2 1,132,434
Increment Bonds (Center Triangle Tax Increment Financing
District - PNC Bank Corp. Project), Series A of 1999,
6.100%, 5/01/19
1,200 Southeastern Pennsylvania Transportation Authority, Special 3/09 at 101 AAA 1,086,300
Revenue Bonds, Series A of 1999, 4.750%, 3/01/29
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 8.7%
2,500 County of Allegheny, Pennsylvania, Airport Revenue Bonds 1/02 at 102 AAA 2,588,900
(Greater Pittsburgh International Airport), Series 1992B,
6.625%, 1/01/22 (Alternative Minimum Tax)
2,000 Lehigh-Northampton Airport Authority, Pennsylvania, Airport 5/10 at 100 Aaa 2,105,940
Revenue Bonds (Lehigh Valley Airport System), Series 2000A,
6.000%, 5/15/30 (Alternative Minimum Tax)
5,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101 A3 5,052,450
Facilities Revenue Bonds (Amtrak Project), Series 2001A,
6.375%, 11/01/41 (Alternative Minimum Tax)
1,650 Pennsylvania Turnpike Commission, Pennsylvania Turnpike Revenue 12/01 at 102 AA- 1,703,873
Bonds, Series N of 1991, 6.500%, 12/01/13
735 Pennsylvania Turnpike Commission, Pennsylvania Turnpike Revenue 12/02 at 102 AAA 747,436
Bonds, Series O of 1992, 5.500%, 12/01/17
5,000 Pennsylvania Turnpike Commission, Pennsylvania Turnpike Revenue 12/11 at 101 AAA 4,795,450
Bonds, Series R of 2001, 5.000%, 12/01/30
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
Philadelphia Authority for Industrial Development, Pennsylvania,
Airport Revenue Bonds (Philadelphia Airport System Project),
Series 1998A:
$ 7,315 5.000%, 7/01/23 (Alternative Minimum Tax) 7/08 at 101 AAA $ 6,963,441
5,085 5.125%, 7/01/28 (Alternative Minimum Tax) 7/08 at 101 AAA 4,875,600
3,250 The Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101 AAA 3,209,700
Revenue Bonds, Series of 1999, 5.250%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 23.8%
6,300 Allegheny County Hospital Development Authority, Pennsylvania, 10/01 at 100 BBB+*** 6,367,977
Hospital Revenue Bonds (St. Margaret Memorial Hospital),
Series 1991A, 7.125%, 10/01/21 (Pre-refunded to 10/01/01)
1,355 Bensalem Township School District, Bucks County, Pennsylvania, 7/06 at 100 AAA 1,486,936
General Obligation Bonds, Series of 1996, 5.850%, 7/15/12
(Pre-refunded to 7/15/06)
2,000 Hampton Township School District, Allegheny County, 11/04 at 100 AAA 2,214,360
Pennsylvania, General Obligation Bonds, Series of 1995,
6.750%, 11/15/21 (Pre-refunded to 11/15/04)
3,400 Lehigh County General Purpose Authority, Pennsylvania, College 6/02 at 100 AAA 3,530,118
Revenue Bonds (Allentown College of St. Francis de Sales
Project), Series of 1992, 6.750%, 12/15/12 (Pre-refunded to 6/15/02)
3,130 McKean County Solid Waste Authority, Pennsylvania, 1/02 at 100 AAA 3,192,381
Guaranteed Solid Waste Revenue Bonds, Series of 1992,
6.650%, 1/01/12 (Pre-refunded to 1/01/02)
4,500 Pennsylvania Turnpike Commission, Pennsylvania Turnpike Revenue 12/01 at 102 AAA 4,674,195
Bonds, Series I of 1986, 7.200%, 12/01/17 (Pre-refunded to 12/01/01)
1,250 Philadelphia Authority for Industrial Development, Pennsylvania, 5/02 at 102 N/R*** 1,313,750
Revenue Bonds (National Board of Medical Examiners Project),
Series of 1992, 6.750%, 5/01/12 (Pre-refunded to 5/01/02)
8,440 The Hospitals and Higher Education Facilities Authority of 8/01 at 102 Aa*** 8,650,662
Philadelphia, Pennsylvania, Refunding Revenue Bonds (St. Agnes
Medical Center Project - FHA-Insured Mortgage), Series of 1991,
7.250%, 8/15/31 (Pre-refunded to 8/15/01)
8,800 The Hospitals and Higher Education Facilities Authority of 12/01 at 102 N/R*** 9,135,456
Philadelphia, Pennsylvania, Hospital Revenue Bonds (Presbyterian
Medical Center of Philadelphia), Series of 1991, 7.250%, 12/01/21
(Pre-refunded to 12/01/01)
6,110 The Hospitals and Higher Education Facilities Authority of 2/02 at 102 Aaa 6,374,441
Philadelphia, Pennsylvania, Hospital Revenue Bonds (The
Children's Hospital of Philadelphia Project), Series A of 1992,
6.500%, 2/15/21 (Pre-refunded to 2/15/02)
1,850 The School District of Philadelphia, Pennsylvania, General Obligation 5/02 at 100 3/4 AAA 1,924,481
Bonds, Series A of 1992, 6.500%, 5/15/05 (Pre-refunded to 5/15/02)
The Philadelphia Municipal Authority, Philadelphia,
Pennsylvania, Justice Lease Revenue Bonds, 1991 Series B:
1,500 7.100%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 102 AAA 1,554,465
9,900 7.125%, 11/15/18 (Pre-refunded to 11/15/01) 11/01 at 102 AAA 10,260,261
3,000 The Pittsburgh Water and Sewer Authority, Pennsylvania, No Opt. Call AAA 3,278,730
Water and Sewer System Revenue Refunding Bonds,
Series of 1986, 7.625%, 9/01/04
2,500 St. Mary Hospital Authority, Pennsylvania, Hospital Revenue Bonds 7/02 at 102 AAA 2,641,900
(Franciscan Health System/St. Mary Hospital of Langhorne, Inc.),
Series 1992A, 6.500%, 7/01/12 (Pre-refunded to 7/01/02)
8,475 Somerset County General Authority, Commonwealth of Pennsylvania, 10/01 at 100 AAA 8,582,124
Commonwealth Lease Revenue Bonds, Series of 1991,
7.000%, 10/15/13 (Pre-refunded to 10/15/01)
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100 AAA 3,667,470
Pennsylvania, Water and Sewer Revenue Bonds, Series of 1991,
7.100%, 12/01/21 (Pre-refunded to 11/15/15)
5,450 The Municipal Authority of the Borough of West View, No Opt. Call AAA 7,470,914
Allegheny County, Pennsylvania, Special Obligation Bonds,
Series of 1985A, 9.500%, 11/15/14
645 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at 102 N/R*** 698,503
Pennsylvania, College Misericordia Revenue Bonds, Refunding
Series A of 1992, 7.750%, 12/01/12 (Pre-refunded to 12/01/02)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 2.8%
$ 325 Greater Lebanon Refuse Authority, Lebanon County, Pennsylvania, 11/02 at 100 A- $ 337,080
Solid Waste Revenue Bonds, Series of 1992, 7.000%, 11/15/04
4,000 Lehigh County Industrial Development Authority, Pollution Control 8/05 at 102 AAA 4,231,520
Revenue Refunding Bonds (Pennsylvania Power and Light
Company Project), 1995 Series A, 6.150%, 8/01/29
5,500 Montgomery County Industrial Development Authority, Pennsylvania, 1/03 at 100 AA- 5,763,780
Resource Recovery Revenue Bonds (Montgomery County Project),
Series 1989, 7.500%, 1/01/12
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 5.7%
3,000 Luzerne County Industrial Development Authority, Exempt Facilities 10/02 at 102 A3 3,132,990
Revenue Refunding Bonds (Pennsylvania Gas and Water
Company Project), 1992 Series A, 7.200%, 10/01/17
(Alternative Minimum Tax)
3,550 Luzerne County Industrial Development Authority, Exempt Facilities 12/02 at 102 A3 3,706,058
Revenue Bonds (Pennsylvania Gas and Water Company Project),
1992 Series B, 7.125%, 12/01/22 (Alternative Minimum Tax)
5,000 Luzerne County Industrial Development Authority, Exempt Facilities 12/04 at 102 AAA 5,563,300
Revenue Refunding Bonds (Pennsylvania Gas and Water Company
Project), 1994 Series A, 7.000%, 12/01/17 (Alternative Minimum Tax)
20,000 The Pittsburgh Water and Sewer Authority, Pennsylvania, Water No Opt. Call AAA 4,907,600
and Sewer System First Lien Revenue Bonds, Series B of 1998,
0.000%, 9/01/26
12,625 Municipal Authority of Westmoreland County, Pennsylvania, No Opt. Call AAA 3,703,414
Municipal Service Revenue Bonds, Series of 1999A,
0.000%, 8/15/23
------------------------------------------------------------------------------------------------------------------------------------
$ 393,420 Total Investments (cost $331,683,401) - 93.6% 343,870,212
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.4% 23,317,736
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 367,187,948
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 0.1%
$ 500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101 Baa1 $ 505,670
Environmental Improvement Revenue Refunding Bonds,
2000 Series B, 6.000%, 9/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Capital Goods - 0.6%
2,000 New Morgan Industrial Development Authority, Pennsylvania, 4/04 at 102 BB- 1,938,400
Solid Waste Disposal Revenue Bonds (New Morgan Landfill
Company, Inc. Project), Series 1994, 6.500%, 4/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals - 0.9%
4,500 Pennsylvania Economic Development Financing Authority, 11/08 at 102 N/R 3,106,125
Exempt Facilities Revenue Bonds (National Gypsum Project),
Series 1997B, 6.125%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 8.6%
3,250 Allegheny County Higher Education Building Authority, 5/09 at 102 A 3,069,398
Commonwealth of Pennsylvania, College Revenue Bonds
(Thiel College), Series A of 1999, 5.375%, 11/15/29
3,000 Chester County Health and Education Facilities Authority, 10/08 at 102 BBB- 2,823,540
Pennsylvania, College Revenue Bonds (Immaculata College),
Series of 1998, 5.625%, 10/15/27
1,350 Lancaster Higher Education Authority, City of Lancaster, 4/03 at 100 AAA 1,373,679
Pennsylvania, College Revenue Bonds (Franklin and Marshall
College Project), Series of 1993, 5.700%, 4/15/13
10,000 Pennsylvania Higher Education Assistance Agency, Student Loan 1/03 at 102 AAA 10,323,400
Revenue Bonds, 1988 Series D, 6.050%, 1/01/19
(Alternative Minimum Tax)
1,000 Pennsylvania Higher Educational Facilities Authority, Commonwealth 5/08 at 101 Aaa 1,001,520
of Pennsylvania, LaSalle University Revenue Bonds, Series
of 1998, 5.250%, 5/01/23
2,100 Pennsylvania Higher Educational Facilities Authority, Commonwealth 6/10 at 100 AA 2,205,609
of Pennsylvania, Philadelphia University Revenue Bonds,
Series of 2000, 6.000%, 6/01/29
4,615 Pennsylvania Higher Educational Facilities Authority, Commonwealth 7/03 at 102 AAA 4,745,881
of Pennsylvania, Revenue Bonds (Widener University),
1993 Series A, 5.250%, 7/15/11
3,340 State Public School Building Authority, Commonwealth of 3/03 at 100 AAA 3,400,020
Pennsylvania, College Revenue Bonds (Northampton County
Area Community College Project), Series U of 1993,
5.850%, 3/15/15
865 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at 102 N/R 909,184
Pennsylvania, College Misericordia Revenue Bonds, Refunding
Series B of 1992, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 11.3%
8,500 Allegheny County Hospital Development Authority, Pennsylvania, 5/06 at 102 AAA 8,759,420
Hospital Revenue Bonds (South Hills Health System), Series A
of 1996, 5.875%, 5/01/26
14,000 Allegheny County Hospital Development Authority, Pennsylvania, 4/07 at 102 AAA 14,234,220
Health Center Revenue Bonds (University of Pittsburgh Medical
Center System), Series 1997A, 5.625%, 4/01/27
7,900 Montgomery County Higher Education and Health Authority, 1/09 at 101 AAA 7,501,761
Pennsylvania, Revenue Bonds (Pottstown Healthcare
Corporation), Series 1998, 5.000%, 1/01/27
485 Montgomery County Higher Education and Health Authority, 6/03 at 102 AAA 498,498
Pennsylvania, Hospital Revenue Bonds (Abington Memorial
Hospital), Series A of 1993, 6.000%, 6/01/22
4,700 Pennsylvania Higher Educational Facilities Authority, 1/06 at 101 A 4,674,808
Commonwealth of Pennsylvania, Health Services Revenue
Bonds (The University of Pennsylvania), Series A of 1996,
5.750%, 1/01/22
City of Pottsville Hospital Authority, Pennsylvania, Hospital
Revenue Bonds (The Pottsville Hospital and Warne Clinic),
Series of 1998:
2,000 5.500%, 7/01/18 7/08 at 100 BBB- 1,662,740
2,000 5.625%, 7/01/24 7/08 at 100 BBB- 1,633,080
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 3.9%
$ 4,345 Bucks County Redevelopment Authority, Pennsylvania, Second Lien 8/03 at 100 Baa2 $ 4,321,624
Multifamily Mortgage Revenue Bonds (Country Commons
Apartments - Section 8 Assisted), Series 1993A,
6.200%, 8/01/14 (Alternative Minimum Tax)
1,650 Luzerne County Housing Corporation, Pennsylvania, Mortgage 7/03 at 100 Aaa 1,664,306
Revenue Refunding Bonds (FHA-Insured Mortgage Loan -
Section 8 Assisted Freeland Apartments Project), Series 1993,
6.125%, 7/15/23
5,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding 7/02 at 102 AAA 5,168,350
Bonds, Issue 1992, 6.400%, 7/01/12
2,345 Swissvale Housing Development Corporation, Pennsylvania, 7/03 at 100 Aa 2,365,167
(An Instrumentality of the Allegheny County Housing Authority),
Multifamily Mortgage Revenue Refunding Bonds (FHA-Insured
Mortgage Loan - Section 8 Assisted Swissvale Project),
Series 1993C, 6.100%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 8.4%
1,355 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100 Aaa 1,391,070
Single Family Mortgage Revenue Bonds, 2000 Series II-2,
5.900%, 11/01/32 (Alternative Minimum Tax)
2,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102 AA+ 2,020,220
Revenue Bonds, Series 1993-37A, 5.450%, 10/01/17
1,120 Pennsylvania Housing Finance Agency, Single Family Mortgage No Opt. Call AA+ 1,255,027
Revenue Bonds, Series 1996-47, 6.750%, 10/01/06
(Alternative Minimum Tax)
3,305 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 3,435,779
Revenue Bonds, Series 1996-51, 6.375%, 4/01/28
(Alternative Minimum Tax)
2,750 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/06 at 102 AA+ 2,858,487
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 6.050%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102 AA+ 1,572,195
4,000 6.150%, 10/01/27 (Alternative Minimum Tax) 4/07 at 102 AA+ 4,153,760
1,635 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/07 at 101 1/2 AA+ 1,671,461
Revenue Bonds, Series 1997-58A, 5.950%, 10/01/28
(Alternative Minimum Tax)
1,645 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/07 at 101 1/2 AA+ 1,718,910
Revenue Bonds, Series 1997-59A, 5.700%, 4/01/17
(Alternative Minimum Tax)
1,200 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/08 at 101 1/2 AA+ 1,206,516
Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22
(Alternative Minimum Tax)
1,500 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/06 at 102 AAA 1,551,060
Mortgage Revenue Bonds, 1996 Series C, 6.500%, 10/01/23
(Alternative Minimum Tax)
Urban Redevelopment Authority of Pittsburgh, Pennsylvania,
Mortgage Revenue Bonds, 1997 Series A:
845 6.150%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102 AAA 891,644
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102 AAA 800,527
1,375 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/03 at 102 AAA 1,428,666
Mortgage Revenue Bonds, 1992 Series D, 6.500%, 4/01/17
2,460 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/03 at 102 AAA 2,554,169
Mortgage Revenue Bonds, 1992 Series C-1, 6.800%, 10/01/25
(Alternative Minimum Tax)
615 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/04 at 102 AAA 648,843
Mortgage Revenue Bonds, 1994 Series B, 6.950%, 10/01/10
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Industrial/Other - 0.6%
2,165 Montgomery County Industrial Development Authority, Pennsylvania, 6/03 at 102 N/R 2,113,300
Health Facilities Revenue Bonds (Emergency Care Research
Institute), Series of 1993, 6.850%, 6/01/13
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.1%
1,230 Pennsylvania Economic Development Financing Authority, Revenue 6/08 at 100 BBB 845,182
Bonds (Northwestern Human Services, Inc. Project), Series A
of 1998, 5.250%, 6/01/28
Pennsylvania Economic Development Financing Authority, Revenue
Bonds (Dr. Gertrude A. Barber Center, Inc.), Series of 2000:
1,000 6.150%, 12/01/20 No Opt. Call AA 1,000,410
2,000 5.900%, 12/01/30 12/10 at 100 AA 2,045,860
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care (continued)
Philadelphia Authority for Industrial Development, Pennsylvania,
Health Care Facilities Revenue Bonds (Paul's Run), Series 1998A:
$ 1,350 5.750%, 5/15/18 5/08 at 102 N/R $ 1,172,259
1,650 5.875%, 5/15/28 5/08 at 102 N/R 1,396,692
4,000 Philadelphia Hospital and Higher Educational Facilities Authority, 8/03 at 102 BBB+ 4,126,160
Pennsylvania, Revenue Refunding Bonds (Philadelphia MR Project),
Series 1992, 5.625%, 8/01/04
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 5.6%
Chichester School District, Delaware County, Pennsylvania, General
Obligation Bonds, Series of 1999:
3,125 0.000%, 3/01/23 No Opt. Call AAA 969,313
3,125 0.000%, 3/01/24 No Opt. Call AAA 916,313
3,125 0.000%, 3/01/25 No Opt. Call AAA 866,063
2,110 Fayette County, Pennsylvania, General Obligation Bonds, Series 2000, 11/10 at 100 AAA 2,173,532
5.625%, 11/15/28
Redevelopment Authority of the City of Harrisburg, Dauphin
County, Pennsylvania, Guaranteed Revenue Bonds, Series B of
1998:
1,750 0.000%, 5/01/22 5/16 at 75 9/16 AAA 535,395
2,750 0.000%, 11/01/22 5/16 at 73 5/8 AAA 817,768
2,750 0.000%, 5/01/23 5/16 at 71 23/32 AAA 790,295
2,750 0.000%, 11/01/23 5/16 at 69 7/8 AAA 768,048
4,305 County of Montgomery, Pennsylvania, General Obligation Bonds, 10/06 at 100 Aaa 4,361,955
Series B of 1996, 5.375%, 10/15/21
2,000 The School District of Philadelphia, Pennsylvania, General Obligation No Opt. Call AAA 2,265,480
Refunding Bonds, Series A of 1995, 6.250%, 9/01/09
3,500 The School District of Philadelphia, Pennsylvania, General Obligation 4/09 at 100 AAA 3,101,455
Bonds, Series A of 1999, 4.500%, 4/01/23
1,700 Pine-Richland School District, Allegheny County, Pennsylvania, 9/11 at 100 AAA 1,622,106
General Obligation Refunding Bonds, Series of 2001,
5.000%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 15.8%
4,060 Delaware Valley Regional Finance Authority, Pennsylvania, 4/06 at 100 AAA 4,231,697
Local Government Revenue Bonds, Series A, 6.000%, 4/15/26
17,895 The Harrisburg Authority, Dauphin County, Pennsylvania, 9/07 at 100 AAA 18,297,459
Tax-Exempt Revenue Bonds (The City of Harrisburg Project),
Series II of 1997, 5.625%, 9/15/22
Pennsylvania Industrial Development Authority, Economic
Development Revenue Bonds, Series 1994:
2,000 7.000%, 7/01/06 No Opt. Call AAA 2,276,060
1,550 7.000%, 1/01/07 No Opt. Call AAA 1,769,124
1,000 7.000%, 7/01/07 No Opt. Call AAA 1,152,710
9,000 Public Auditorium Authority of Pittsburgh and Allegheny County, 8/09 at 101 AAA 7,758,000
Pennsylvania, Hotel Room Excise Tax Revenue Bonds,
Series of 1999, 4.500%, 2/01/29
20,775 Southeastern Pennsylvania Transportation Authority, Special Revenue 3/09 at 101 AAA 18,806,569
Bonds, Series A of 1999, 4.750%, 3/01/29
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 4.1%
2,300 County of Allegheny, Pennsylvania, Airport Revenue Refunding Bonds 1/08 at 101 AAA 2,313,455
(Pittsburgh International Airport), Series 1997A, 5.250%, 1/01/16
(Alternative Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101 A3 2,017,020
Facilities Revenue Bonds (Amtrak Project), Series 2001A
6.250%, 11/01/31 (Alternative Minimum Tax)
3,575 Pennsylvania Turnpike Commission, Pennsylvania Turnpike Revenue 12/11 at 101 AAA 3,428,747
Bonds, 2001 Series R, 5.000%, 12/01/30
6,525 Sports and Exhibition Authority of Pittsburgh and Allegheny County, 12/06 at 100 Aaa 6,475,410
Pennsylvania, Parking Revenue Bonds, Series A of 2001,
5.350%, 12/01/26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 13.3%
$ 750 Allegheny County Hospital Development Authority, Pennsylvania, 6/02 at 102 N/R*** $ 792,638
Health and Education Revenue Bonds (The Rehabilitation Institute
of Pittsburgh Project), Series 1992, 7.000%, 6/01/22
(Pre-refunded to 6/01/02)
3,000 Allegheny County Hospital Development Authority, Pennsylvania, 11/02 at 100 AAA 3,131,520
Health Center Revenue Bonds (Presbyterian University Health
System, Inc. Project), Series 1992A, 6.250%, 11/01/23
(Pre-refunded to 11/01/02)
2,000 Bangor Area School District, Northampton County, Pennsylvania, 3/06 at 100 AAA 2,152,880
General Obligation Bonds, Series B of 1996, 5.500%, 3/15/18
(Pre-refunded to 3/15/06)
2,500 Bensalem Township School District, Bucks County, Pennsylvania, 7/06 at 100 AAA 2,746,275
General Obligation Bonds, Series of 1996, 5.875%, 7/15/16
(Pre-refunded to 7/15/06)
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Water Revenue Bonds, Series A of 1992:
3,785 6.100%, 11/15/18 (Pre-refunded to 11/15/02) 11/02 at 100 AAA 3,949,383
3,100 6.100%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 100 AAA 3,234,633
1,500 Fort LeBoeuf School District, Erie County, Pennsylvania, General 1/03 at 100 AAA 1,559,415
Obligation Bonds, Series A of 1993, 5.800%, 1/01/16
(Pre-refunded to 1/01/03)
3,500 Hollidaysburg Sewer Authority, Pennsylvania, Guaranteed Sewer 1/03 at 100 AAA 3,653,545
Revenue Bonds, Series of 1993, 6.100%, 1/01/23
(Pre-refunded to 1/01/03)
1,500 Ligonier Valley School District, Westmoreland County, Pennsylvania, 3/04 at 100 AAA 1,600,125
General Obligation Bonds, Series of 1994, 6.000%, 3/01/23
(Pre-refunded to 3/01/04)
2,015 Montgomery County Higher Educational and Health Authority, 6/03 at 102 AAA 2,160,564
Pennsylvania, Hospital Revenue Bonds (Abington Memorial
Hospital), Series A of 1993, 6.000%, 6/01/22 (Pre-refunded
to 6/01/03)
1,570 Pennsylvania Higher Educational Facilities Authority, College and No Opt. Call Aaa 1,893,216
University Revenue Bonds, 9th Series, 7.625%, 7/01/15
1,005 The Hospitals and Higher Education Facilities Authority of 5/04 at 102 AAA 1,096,485
Philadelphia, Pennsylvania, Community College Revenue Bonds
(Community College of Philadelphia), Series of 1994, 6.100%,
5/01/10 (Pre-refunded to 5/01/04)
The Hospitals and Higher Education Facilities Authority of
Philadelphia, Pennsylvania, Hospital Revenue Bonds (Presbyterian
Medical Center of Philadelphia), Series of 1993:
1,000 6.500%, 12/01/11 12/03 at 102 AAA 1,147,380
3,690 6.650%, 12/01/19 12/03 at 102 AAA 4,355,049
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1993:
955 5.750%, 6/15/13 (Pre-refunded to 6/15/03) 6/03 at 102 AAA 1,020,666
915 5.500%, 6/15/14 (Pre-refunded to 6/15/03) 6/03 at 102 AAA 973,597
1,750 Pine-Richland School District, Allegheny County, Pennsylvania, 9/03 at 100 AAA 1,859,568
General Obligation Bonds, Series A of 1993, 6.100%, 9/01/18
(Pre-refunded to 9/01/03)
3,660 Rose Tree Media School District, Delaware County, Pennsylvania, 9/01 at 100 AAA 3,690,854
General Obligation Bonds, Series of 1993, 6.700%, 3/15/12
(Pre-refunded to 9/15/01)
2,500 Schuylkill Valley School District, Berks County, Pennsylvania, 4/03 at 100 AAA 2,619,450
General Obligation Bonds, Series of 1993, 5.850%, 4/15/13
(Pre-refunded to 4/15/03)
1,650 The Municipal Authority of the Borough of West View, Allegheny No Opt. Call AAA 2,261,836
County, Pennsylvania, Special Obligation Bonds, Series of 1985A,
9.500%, 11/15/14
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 11.7%
8,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102 AAA 7,964,640
Exempt Facilities Revenue Bonds (Shippingport Project),
1998 Series A, 5.375%, 6/01/28 (Alternative Minimum Tax)
3,990 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 4,135,037
Resource Recovery Revenue Refunding Bonds (Panther Creek
Partners Project), 2000 Series, 6.650%, 5/01/10 (Alternative
Minimum Tax)
7,590 Indiana County Industrial Development Authority, Pennsylvania, 5/07 at 102 AAA 7,907,945
Pollution Control Revenue Bonds (Metropolitan Edison
Company Project), 1997 Series A, 5.950%, 5/01/27
(Alternative Minimum Tax)
14,000 Lehigh County Industrial Development Authority, Pollution 11/02 at 102 AAA 14,750,260
Control Revenue Refunding Bonds (Pennsylvania Power and
Light Company Project), 1992 Series A, 6.400%, 11/01/21
6,000 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds 7/09 at 101 AAA 5,676,120
(1998 General Ordinance), Second Series, 5.000%, 7/01/29
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 10.6%
$ 2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewer Revenue 12/10 at 101 AAA $ 2,039,860
Bonds, Series of 2000, 5.500%, 12/01/30
1,975 Delaware County Industrial Development Authority, Pennsylvania, 6/02 at 102 AAA 2,049,675
Water Facilities Revenue Refunding Bonds (Philadelphia Suburban
Water Company Project), Series of 1992, 6.500%, 6/01/10
7,350 Luzerne County Industrial Development Authority, Exempt Facilities 10/02 at 102 A3 7,675,826
Revenue Refunding Bonds (Pennsylvania Gas and Water Company
Project), 1992 Series A, 7.200%, 10/01/17 (Alternative Minimum Tax)
4,500 Luzerne County Industrial Development Authority, Exempt Facilities 12/02 at 102 A3 4,697,820
Revenue Bonds (Pennsylvania Gas and Water Company Project),
1992 Series B, 7.125%, 12/01/22 (Alternative Minimum Tax)
3,360 Mercer County Industrial Development Authority, New Jersey, 7/10 at 100 AAA 3,540,230
Water Facilities Revenue Bonds (Consumers Pennsylvania
Water Company - Shenango Valley Division Project), Series
of 2000, 6.000%, 7/01/30 (Alternative Minimum Tax)
5,500 Northumberland County Industrial Development Authority, 10/03 at 102 N/R 5,236,000
Pennsylvania, Exempt Facilities Revenue Bonds (Roaring Creek
Water Company Project), 1993 Series, 6.375%, 10/15/23
(Alternative Minimum Tax)
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1995:
3,000 6.750%, 8/01/05 No Opt. Call AAA 3,337,500
2,730 6.250%, 8/01/10 No Opt. Call AAA 3,101,580
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1993:
1,380 5.750%, 6/15/13 6/03 at 102 AAA 1,433,196
1,385 5.500%, 6/15/14 6/03 at 102 AAA 1,420,313
10,000 The Pittsburgh Water and Sewer Authority, Pennsylvania, Water No Opt. Call AAA 2,176,700
and Sewer System First Lien Revenue Bonds, Series B of 1998,
0.000%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 359,685 Total Investments (cost $327,446,993) - 98.6% 340,500,352
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 4,976,873
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 345,477,225
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals - 2.8%
$ 3,000 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102 N/R $ 2,070,750
Facilities Revenue Bonds (National Gypsum Project), Series 1997B,
6.125%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 5.0%
3,700 Pennsylvania Economic Development Financing Authority, Solid No Opt. Call AA 3,624,446
Waste Disposal Revenue Bonds (Procter & Gamble Paper Project),
Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 14.0%
2,750 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100 Aaa 2,659,580
Revenue Bonds (George School Project), Series of 2001,
5.125%, 9/15/31
2,370 Montgomery County Industrial Development Authority, Pennsylvania, 8/07 at 100 AAA 2,366,208
Revenue Bonds (The Hill School (Project), Series of 1997,
5.350%, 8/15/27
1,800 Pennsylvania Higher Educational Facilities Authority, Commonwealth 4/08 at 102 BBB- 1,649,844
of Pennsylvania, Geneva College Revenue Bonds, Series of 1998,
5.375%, 4/01/23
3,250 Pennsylvania Higher Education Facility Authority, College Revenue 11/03 at 102 AAA 3,507,888
Refunding Bonds (Allegheny College), Series 1993A,
6.100%, 11/01/08
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 11.1%
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101 AA- 2,390,900
Pennsylvania, Health System Revenue Bonds (Jefferson
Health System), Series 1997B, 5.375%, 5/15/27
3,000 Geisinger Authority, Montour County, Pennsylvania, Health System 8/08 at 101 AA 2,753,730
Revenue Bonds (Penn State Geisinger Health System), Series A
of 1998, 5.000%, 8/15/28
2,900 Pennsylvania Higher Educational Facilities Authority, UPMC 1/11 at 101 A+ 2,944,022
Health System Revenue Bonds, Series 2001A, 6.000%, 1/15/31
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.0%
1,505 Redevelopment Authority of the City of Philadelphia, Pennsylvania, 2/08 at 100 Aa2 1,486,489
Multifamily Housing Refunding Revenue Bonds (FHA-Insured
Mortgage Loan - Woodstock Mutual Homes, Inc. Project),
Series 1998, 5.450%, 2/01/23
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 7.1%
5,245 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102 Aaa 5,187,515
Single Family Mortgage Revenue Bonds, 1998 Series DD-2,
5.400%, 11/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.9%
2,875 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101 AAA 2,813,360
Revenue Bonds (The Philadelphia Corporation for the Aging
Project), Series 2001B, 5.250%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.9%
Lake-Lehman School District, Luzerne County, Pennsylvania,
General Obligation Bonds, Series 2001:
1,315 0.000%, 4/01/25 No Opt. Call AAA 353,117
1,315 0.000%, 4/01/26 No Opt. Call AAA 333,300
1,065 0.000%, 4/01/27 No Opt. Call AAA 255,185
2,300 City of Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100 AAA 2,181,205
Series 2000, 5.000%, 9/15/31
3,700 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100 AAA 3,680,538
General Obligation Bonds, Series 2001, 5.250%, 9/15/30
9,270 Reading School District, Berks County, Pennsylvania, General 7/11 at 54 19/32 AAA 2,846,446
Obligation Bonds, Series 2001A, 0.000%, 1/15/22
(WI, settling 7/11/01)
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of Investments June 30, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 2,625 Sto-Rox School District, Allegheny County, Pennsylvania, General 12/11 at 100 AAA $ 2,563,470
Obligation Bonds, Series 2001 Refunding, 5.125%, 12/15/29
2,055 Tredyffrin-Easttown School District, Chester County, Pennsylvania, No Opt. Call Aaa 2,191,678
General Obligation Bonds, Series of 2001, 5.250%, 8/01/11
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 9.9%
1,500 Port Authority of Allegheny County, Pennsylvania, Special 3/11 at 101 AAA 1,431,810
Transportation Revenue Bonds, Series 2001, 5.000%, 3/01/29
3,750 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/08 at 100 AAA 3,411,825
Revenue Bonds, Series A of 1998, 4.750%, 12/01/27
2,500 Public Auditorium Authority of Pittsburgh and Allegheny County, 8/09 at 101 AAA 2,386,575
Pennsylvania, Regional Asset District Sales Tax Revenue Bonds,
Series of 1999, 5.000%, 2/01/29
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 8.0%
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101 A3 2,017,020
Exempt Facilities Revenue Bonds (Amtrak Project), Series 2001A,
6.250%, 11/01/31 (Alternative Minimum Tax)
1,600 The Philadelphia Parking Authority, Pennsylvania, Parking System 2/09 at 101 AAA 1,580,352
Revenue Bonds, Series of 1999A, 5.250%, 2/15/29
2,210 Sports and Exhibition Authority of Pittsburgh and Allegheny 12/06 at 100 Aaa 2,193,734
County, Pennsylvania, Parking Revenue Bonds,
Series A of 2001, 5.375%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 4.8%
3,500 Upper Merion Area School District, Montgomery County, 9/01 at 100 Aa2*** 3,525,095
Pennsylvania, General Obligation Bonds, Series of 1993,
6.900%, 9/01/16 (Pre-refunded to 9/01/01)
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 9.6%
2,000 Lehigh County Industrial Development Authority, Pollution 11/02 at 102 AAA 2,107,180
Control Revenue Refunding Bonds (Pennsylvania Power and
Light Company Project), 1992 Series A, 6.400%, 11/01/21
4,840 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 7/03 at 102 BBB 4,846,727
Fourteenth Series, 6.375%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
$ 82,440 Total Investments (cost $70,244,863) - 98.1% 71,359,989
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 1,363,119
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 72,723,108
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
Statement of
Net Assets June 30, 2001
NEW JERSEY NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND INVESTMENT PREMIUM DIVIDEND
QUALITY INCOME ADVANTAGE QUALITY INCOME 2 ADVANTAGE
(NQJ) (NNJ) (NXJ) (NQP) (NPY) (NXM)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal
securities,
at market value $443,150,286 $271,608,163 $140,953,433 $343,870,212 $340,500,352 $71,359,989
Temporary investments in
short-term municipal
securities, at amortized
cost, which approximates
market value -- -- 6,000,000 -- -- --
Cash -- -- -- 5,899,960 1,058,364 3,677,677
Receivables:
Interest 8,468,579 4,812,155 2,061,125 5,436,880 5,337,871 968,885
Investments sold 24,420,500 -- -- 13,448,150 15,000 5,000
Other assets 28,811 28,601 997 31,918 44,376 233
------------------------------------------------------------------------------------------------------------------------------------
Total assets 476,068,176 276,448,919 149,015,555 368,687,120 346,955,963 76,011,784
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,134,483 237,314 6,115,572 -- -- --
Payable for investments purchased 9,212,285 -- -- -- -- 2,840,792
Accrued expenses:
Management fees 241,835 144,970 40,657 192,628 181,383 20,944
Other 108,061 164,388 192,204 50,084 184,876 179,907
Preferred share dividends payable 50,672 16,496 15,782 29,790 33,861 8,080
Common share dividends payable 1,536,021 834,842 464,837 1,226,670 1,078,618 238,953
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 12,283,357 1,398,010 6,829,052 1,499,172 1,478,738 3,288,676
------------------------------------------------------------------------------------------------------------------------------------
Net assets $463,784,819 $275,050,909 $142,186,503 $367,187,948 $345,477,225 $72,723,108
====================================================================================================================================
Preferred shares, at
liquidation value $162,000,000 $ 91,600,000 $ 48,000,000 $132,000,000 $118,100,000 $25,000,000
====================================================================================================================================
Preferred shares outstanding 6,480 3,664 1,920 5,280 4,724 1,000
====================================================================================================================================
Common shares outstanding 20,079,769 12,012,930 6,547,000 16,140,975 15,747,462 3,295,900
====================================================================================================================================
Net asset value per Common share
outstanding (net assets less
Preferred shares at liquidation
value, divided by Common shares
outstanding) $ 15.03 $ 15.27 $ 14.39 $ 14.57 $ 14.44 $ 14.48
====================================================================================================================================
See accompanying notes to financial statements
Statement of
Operations Year Ended June 30, 2001
NEW JERSEY NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND INVESTMENT PREMIUM DIVIDEND
QUALITY INCOME ADVANTAGE QUALITY INCOME 2 ADVANTAGE
(NQJ) (NNJ) (NXJ)* (NQP) (NPY) (NXM)**
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $27,398,019 $15,061,988 $1,085,207 $22,819,359 $19,590,492 $ 550,300
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,917,401 1,740,957 186,215 2,344,609 2,175,349 94,732
Preferred shares - auction fees 405,000 229,001 14,466 330,000 295,249 7,534
Preferred shares - dividend
disbursing agent fees 30,982 40,204 1,205 29,999 30,190 1,205
Shareholders' servicing agent
fees and expenses 51,291 40,238 1,460 57,571 51,990 1,634
Custodian's fees and expenses 108,038 66,503 10,238 95,043 89,799 7,602
Directors'/Trustees' fees
and expenses 6,699 3,918 515 5,503 4,199 510
Professional fees 28,693 14,414 13,926 21,127 17,249 13,780
Shareholders' reports - printing
and mailing expenses 26,879 26,759 13,727 37,533 32,016 17,768
Stock exchange listing fees 28,003 27,490 258 27,927 24,194 255
Investor relations expense 63,142 40,353 -- 58,467 49,703 --
Other expenses 19,886 18,947 90 22,376 11,967 89
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and expense
reimbursement 3,686,014 2,248,784 242,100 3,030,155 2,781,905 145,109
Custodian fee credit (33,266) (26,000) (2,603) (31,414) (24,004) (1,312)
Expense reimbursement -- -- (85,878) -- -- (43,723)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,652,748 2,222,784 153,619 2,998,741 2,757,901 100,074
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 23,745,271 12,839,204 931,588 19,820,618 16,832,591 450,226
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from
investment transactions 610,427 (269,314) (6,266) (4,837,654) 1,159,672 12
Change in net unrealized
appreciation (depreciation) of
investments 10,985,354 12,204,840 1,407,354 7,489,584 13,740,217 1,115,126
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 11,595,781 11,935,526 1,401,088 2,651,930 14,899,889 1,115,138
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations $35,341,052 $24,774,730 $2,332,676 $22,472,548 $31,732,480 $1,565,364
===================================================================================================================================
* For the period March 28, 2001 (commencement of operations) through June 30,
2001.
** For the period March 29, 2001 (commencement of operations) through June 30,
2001.
See accompanying notes to financial statements.
Statement of
Changes in Net Assets
NEW JERSEY INVESTMENT QUALITY (NQJ) NEW JERSEY PREMIUM INCOME (NNJ)
---------------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/01 6/30/00 6/30/01 6/30/00
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 23,745,271 $ 23,967,002 $ 12,839,204 $ 12,986,995
Net realized gain (loss) from investment transactions 610,427 (508,488) (269,314) (369,629)
Change in net unrealized appreciation (depreciation)
of investments 10,985,354 (12,136,060) 12,204,840 (7,043,096)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 35,341,052 11,322,454 24,774,730 5,574,270
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net investment income:
Common shareholders (18,380,712) (18,329,919) (9,790,538) (10,248,237)
Preferred shareholders (5,489,183) (5,763,883) (3,029,141) (3,018,492)
From accumulated net realized gains
from investment transactions:
Common shareholders -- (751,266) -- --
Preferred shareholders -- (220,556) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (23,869,895) (25,065,624) (12,819,679) (13,266,729)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 1,503,374 1,224,251 -- 484,299
Preferred shares:
Net proceeds from sale of shares -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 1,503,374 1,224,251 -- 484,299
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 12,974,531 (12,518,919) 11,955,051 (7,208,160)
Net assets at the beginning of period 450,810,288 463,329,207 263,095,858 270,304,018
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $463,784,819 $450,810,288 $275,050,909 $263,095,858
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end of period $ 518,230 $ 642,854 $ 266,422 $ 246,897
===================================================================================================================================
See accompanying notes to financial statements.
Statement of
Changes in Net Assets (continued)
NEW JERSEY
DIVIDEND
ADVANTAGE (NXJ) PENNSYLVANIA INVESTMENT QUALITY (NQP)
--------------- ------------------------------------
FOR THE
PERIOD 3/28/01
(COMMENCEMENT
OF OPERATIONS) YEAR ENDED YEAR ENDED
THROUGH 6/30/01 6/30/01 6/30/00
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 931,588 $ 19,820,618 $ 20,033,075
Net realized gain (loss) from investment transactions (6,266) (4,837,654) (757,155)
Change in net unrealized appreciation (depreciation) of investments 1,407,354 7,489,584 (12,452,732)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 2,332,676 22,472,548 6,823,188
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net investment income:
Common shareholders (929,674) (14,691,950) (15,781,613)
Preferred shareholders (169,574) (4,889,041) (4,693,796)
From accumulated net realized gains from investment transactions:
Common shareholders -- -- (1,173,604)
Preferred shareholders -- -- (288,698)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (1,099,248) (19,580,991) (21,937,711)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares 93,489,300 -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- 771,056 1,171,443
Preferred shares:
Net proceeds from sale of shares 47,363,500 -- --
----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 140,852,800 771,056 1,171,443
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 142,086,228 3,662,613 (13,943,080)
Net assets at the beginning of period 100,275 363,525,335 377,468,415
----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $142,186,503 $367,187,948 $363,525,335
==================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end of period $ (167,660) $ 132,323 $ (107,304)
==================================================================================================================================
See accompanying notes to financial statements.
PENNSYLVANIA
DIVIDEND
PENNSYLVANIA PREMIUM INCOME 2 (NPY) ADVANTAGE (NXM)
----------------------------------- ----------------
FOR THE
PERIOD 3/29/01
(COMMENCEMENT
YEAR ENDED YEAR ENDED OF OPERATIONS)
6/30/01 6/30/00 THROUGH 6/30/01
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 16,832,591 $ 16,716,116 $ 450,226
Net realized gain (loss) from investment transactions 1,159,672 (3,053,064) 12
Change in net unrealized appreciation (depreciation) of investments 13,740,217 (9,308,011) 1,115,126
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 31,732,480 4,355,041 1,565,364
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net investment income:
Common shareholders (12,445,233) (12,716,093) (477,907)
Preferred shareholders (4,234,820) (4,243,502) (88,700)
From accumulated net realized gains from investment transactions:
Common shareholders -- (236,212) --
Preferred shareholders -- (69,046) --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (16,680,053) (17,264,853) (566,607)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 47,014,826
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- -- --
Preferred shares:
Net proceeds from sale of shares -- -- 24,609,250
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions -- -- 71,624,076
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 15,052,427 (12,909,812) 72,622,833
Net assets at the beginning of period 330,424,798 343,334,610 100,275
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $345,477,225 $330,424,798 $72,723,108
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end of period $ 784,663 $ 632,125 $ (116,381)
===================================================================================================================================
See accompanying notes to financial statements.
Notes to
Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
stock exchange symbols are Nuveen New Jersey Investment Quality Municipal Fund,
Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ), Nuveen
New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen Pennsylvania
Investment Quality Municipal Fund (NQP), Nuveen Pennsylvania Premium Income
Municipal Fund 2 (NPY) and Nuveen Pennsylvania Dividend Advantage Municipal Fund
(NXM). New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ),
Pennsylvania Investment Quality (NQJ) and Pennsylvania Premium Income (NPY) are
traded on the New York Stock Exchange while New Jersey Dividend Advantage (NXJ)
and Pennsylvania Dividend Advantage (NXM) are traded on the American Stock
Exchange. Prior to the commencement of operations of New Jersey Dividend
Advantage (NXJ) and Pennsylvania Dividend Advantage (NXM), each Fund had no
operations other than those related to organizational matters, the initial
capital contribution of $100,275 by Nuveen Advisory Corp. (the "Adviser"), a
wholly owned subsidiary of The John Nuveen Company and the recording of the
organizational expenses ($15,000) and their reimbursement by Nuveen Investments,
also a wholly owned subsidiary of The John Nuveen Company.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing 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 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
accounting principles generally accepted in the United States.
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 the when-issued and delayed delivery purchase commitments. At June
30, 2001, New Jersey Investment Quality (NQJ) and Pennsylvania Dividend
Advantage (NXM) had outstanding when-issued or delayed delivery purchase
commitments of $9,212,285 and $2,840,792, respectively. There were no such
outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
applicable state and local income taxes, to retain such tax-exempt status when
distributed to the shareholders of the Funds. All monthly tax-exempt income
dividends paid during the fiscal year ended June 30, 2001, have been designated
Exempt Interest Dividends.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of such distributions are determined in accordance with
federal income tax regulations, which may differ from accounting principles
generally accepted in the United States. Accordingly, temporary
over-distributions as a result of these differences may occur and will be
classified as either distributions in excess of net investment income,
distributions in excess of net realized gains and/or distributions in excess of
net ordinary taxable income from investment transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set by the auction agent. The
number of shares outstanding, by Series and in total, are as follows:
NEW JERSEY NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND INVESTMENT PREMIUM DIVIDEND
QUALITY INCOME ADVANTAGE QUALITY INCOME 2 ADVANTAGE
(NQJ) (NNJ) (NXJ) (NQP) (NPY) (NXM)
-----------------------------------------------------------------------------------------------------------
Number of Shares:
Series M 3,200 -- -- -- 844 --
Series T -- 624 1,920 880 -- 1,000
Series W -- 1,440 -- 2,400 -- --
Series Th 2,000 1,600 -- 2,000 2,080 --
Series F 1,280 -- -- -- 1,800 --
-----------------------------------------------------------------------------------------------------------
Total 6,480 3,664 1,920 5,280 4,724 1,000
===========================================================================================================
Effective May 18, 2001, New Jersey Dividend Advantage (NXJ) and Pennsylvania
Dividend Advantage (NXM) issued 1,920 and 1,000, respectively, Series T $25,000
stated value Preferred shares.
Derivative Financial Instruments
The Funds may invest 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, 2001.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments has agreed to pay all offering costs (other than the sales
load) that exceed $.03 per Common share for New Jersey Dividend Advantage (NXJ)
and Pennsylvania Dividend Advantage (NXM). New Jersey Dividend Advantage's (NXJ)
and Pennsylvania Dividend Advantage's (NXM) share of offering costs ($196,200
and $98,667, respectively) were recorded as a reduction of the proceeds from the
sale of common shares.
Costs incurred by New Jersey Dividend Advantage (NXJ) and Pennsylvania Dividend
Advantage (NXM) in connection with their offering of Preferred shares ($636,500
and $390,750, respectively) were recorded as a reduction of the proceeds from
the sale of the Preferred shares.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
Audit Guide
In November 2000, the American Institute of Certified Public Accountants (AICPA)
issued a revised version of the AICPA Audit and Accounting Guide for Investment
Companies (the "Guide"). The Guide is effective for annual financial statements
issued for fiscal years beginning after December 15, 2000. It is not anticipated
that the adoption of the Guide will have a significant effect on the financial
statements.
Notes to
Financial Statements (continued)
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY DIVIDEND
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) ADVANTAGE (NXJ)
------------------------ ---------------------- ---------------------------
FOR THE PERIOD 3/28/01
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
6/30/01 6/30/00 6/30/01 6/30/00 OPERATIONS) THROUGH 6/30/01
----------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- 6,540,000
Shares issued to shareholders
due to reinvestment of
distributions 99,285 78,713 -- 32,233 --
----------------------------------------------------------------------------------------------------------------
99,285 78,713 -- 32,233 6,540,000
================================================================================================================
Preferred shares sold -- -- -- -- 1,920
================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA DIVIDEND
INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY) ADVANTAGE (NXM)
------------------------ ---------------------- ----------------------------
FOR THE PERIOD 3/29/01
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
6/30/01 6/30/00 6/30/01 6/30/00 OPERATIONS) THROUGH 6/30/01
----------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- 3,288,900
Shares issued to shareholders
due to reinvestment of
distributions 51,443 75,763 -- -- --
----------------------------------------------------------------------------------------------------------------
51,443 75,763 -- -- 3,288,900
================================================================================================================
Preferred shares sold -- -- -- -- 1,000
================================================================================================================
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid August 1, 2001, to shareholders of record on
July 15, 2001, as follows:
NEW JERSEY NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND INVESTMENT PREMIUM DIVIDEND
QUALITY INCOME ADVANTAGE QUALITY INCOME 2 ADVANTAGE
(NQJ) (NNJ) (NXJ) (NQP) (NPY) (NXM)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0765 $.0695 $.0710 $.0760 $.0685 $.0725
=========================================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the fiscal year ended June
30, 2001, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND INVESTMENT PREMIUM DIVIDEND
QUALITY INCOME ADVANTAGE QUALITY INCOME 2 ADVANTAGE
(NQJ) (NNJ) (NXJ)* (NQP) (NPY) (NXM)**
---------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal
securities $72,423,206 $17,065,599 $140,021,204 $62,311,411 $33,151,832 $70,273,376
Short-term municipal
securities 7,000,000 4,000,000 12,000,000 -- -- --
Sales and maturities:
Long-term municipal
securities 89,016,903 17,351,250 506,300 80,819,913 41,542,983 5,000
Short-term municipal
securities 7,000,000 5,000,000 6,000,000 -- -- --
=========================================================================================================
* For the period March 28, 2001 (commencement of operations) through June 30,
2001.
** For the period March 29, 2001 (commencement of operations) through June 30,
2001.
At June 30, 2001, the cost of investments owned for federal income tax purposes
were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND INVESTMENT PREMIUM DIVIDEND
QUALITY INCOME ADVANTAGE QUALITY INCOME 2 ADVANTAGE
(NQJ) (NNJ) (NXJ) (NQP) (NPY) (NXM)
------------------------------------------------------------------------------------------------------------
$424,195,321 $256,851,633 $145,546,079 $336,520,885 $327,446,993 $70,244,863
------------------------------------------------------------------------------------------------------------
At June 30, 2001, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
NEW JERSEY NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND INVESTMENT PREMIUM
QUALITY INCOME ADVANTAGE QUALITY INCOME 2
(NQJ) (NNJ) (NXJ) (NQP) (NPY)
-----------------------------------------------------------------------------------------------------------
Expiration year:
2002 $ -- $3,583,548 $ -- $ -- $ --
2003 -- 129,409 -- -- --
2004 -- 650,143 -- -- --
2005 -- 174,583 -- -- --
2006 -- -- -- -- --
2007 -- 244,178 -- -- --
2008 -- 27,220 -- 394,765 1,886,400
2009 612,328 521,212 6,266 362,560 --
-----------------------------------------------------------------------------------------------------------
Total $612,328 $5,330,293 $6,266 $757,325 $1,886,400
===========================================================================================================
Notes to
Financial Statements (continued)
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at June 30, 2001, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND INVESTMENT PREMIUM DIVIDEND
QUALITY INCOME ADVANTAGE QUALITY INCOME 2 ADVANTAGE
(NQJ) (NNJ) (NXJ) (NQP) (NPY) (NXM)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
appreciation $19,276,993 $15,158,040 $1,442,921 $13,600,638 $15,676,058 $1,195,373
depreciation (322,028) (401,510) (35,567) (6,251,311) (2,622,699) (80,247)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation $18,954,965 $14,756,530 $1,407,354 $ 7,349,327 $13,053,359 $1,115,126
============================================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' (excluding New Jersey Dividend Advantage (NXJ) and Pennsylvania
Dividend Advantage (NXM)) investment management agreements with the Adviser,
each Fund pays an annual management fee, payable monthly, at the rates set forth
below, which are based upon the average daily net assets of each Fund as
follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For the next $3 billion .5875 of 1
For net assets over $5 billion .5750 of 1
================================================================================
Under New Jersey Dividend Advantage's (NXJ) and Pennsylvania Dividend
Advantage's (NXM) investment management agreements with the Adviser, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5750 of 1
================================================================================
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of New Jersey Dividend Advantage (NXJ) and Pennsylvania Dividend
Advantage (NXM) in an amount equal to .30% of the average daily net assets for
the period from each Fund's commencement of operations through March 31, 2006,
.25% of the average daily net assets for the year ended March 31, 2007, .20% of
the average daily net assets for the year ended March 31, 2008, .15% of the
average daily net assets for the year ended March 31, 2009, .10% of the average
daily net assets for the year ended March 31, 2010, and .05% of the average
daily net assets for the year ended March 31, 2011. The Adviser has not agreed
to reimburse New Jersey Dividend Advantage (NXJ) and Pennsylvania Dividend
Advantage (NXM) for any portion of its fees and expenses beyond March 31, 2011.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
Notes to
Financial Statements (continued)
7. COMPOSITION OF NET ASSETS
At June 30, 2001, net assets consisted of:
NEW JERSEY NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND INVESTMENT PREMIUM DIVIDEND
QUALITY INCOME ADVANTAGE QUALITY INCOME 2 ADVANTAGE
(NQJ) (NNJ) (NXJ) (NQP) (NPY) (NXM)
------------------------------------------------------------------------------------------------------------
Preferred shares, $25,000
stated value per share,
at liquidation value $162,000,000 $ 91,600,000 $ 48,000,000 $132,000,000 $118,100,000 $25,000,000
Common shares, $.01 par
value per share 200,798 120,129 65,470 161,410 157,475 32,959
Paid-in surplus 282,723,156 173,638,121 92,887,605 228,302,213 215,268,132 46,691,392
Undistributed (Over-
distribution of)
net investment income 518,230 266,422 (167,660) 132,323 784,663 (116,381)
Accumulated net realized
gain (loss)
from investment
transactions (615,708) (5,425,284) (6,266) (5,594,809) (1,886,404) 12
Net unrealized appreciation
of investments 18,958,343 14,851,521 1,407,354 12,186,811 13,053,359 1,115,126
------------------------------------------------------------------------------------------------------------
Net assets $463,784,819 $275,050,909 $142,186,503 $367,187,948 $345,477,225 $72,723,108
============================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited Unlimited Unlimited
============================================================================================================
Financial
Highlights
Financial
Highlights
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------- --------------------------------------------------------
From and From and
in Excess in Excess
of Net of Net
Net Investment Investment Capital Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
=========================================================================================================================
New Jersey
Investment
Quality (NQJ)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001 $14.45 $1.19 $ .58 $1.77 $ (.92) $(.27) $ -- $ -- $(1.19)
2000 15.14 1.20 (.63) .57 (.92) (.29) (.04) (.01) (1.26)
1999 15.65 1.14 (.46) .68 (.93) (.20) (.03) (.01) (1.17)
1998 15.41 1.16 .29 1.45 (.95) (.22) (.03) (.01) (1.21)
1997 15.05 1.18 .34 1.52 (.95) (.21) -- -- (1.16)
New Jersey
Premium
Income (NNJ)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001 14.28 1.07 .99 2.06 (.82) (.25) -- -- (1.07)
2000 14.92 1.08 (.62) .46 (.85) (.25) -- -- (1.10)
1999 15.34 1.08 (.41) .67 (.87) (.22) -- -- (1.09)
1998 14.71 1.10 .65 1.75 (.86) (.26) -- -- (1.12)
1997 14.18 1.09 .51 1.60 (.84) (.23) -- -- (1.07)
New Jersey
Dividend
Advantage (NXJ)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 14.33 .14 .22 .36 (.14) (.03) -- -- (.17)
Pennsylvania
Investment
Quality (NQP)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001 14.39 1.23 .16 1.39 (.91) (.30) -- -- (1.21)
2000 15.33 1.25 (.83) .42 (.98) (.29) (.07) (.02) (1.36)
1999 15.94 1.22 (.59) .63 (1.01) (.21) -- -- (1.22)
1998 15.91 1.23 .10 1.33 (1.01) (.23) (.05) (.01) (1.30)
1997 15.72 1.26 .22 1.48 (1.01) (.24) (.03) (.01) (1.29)
Pennsylvania
Premium
Income 2 (NPY)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001 13.48 1.07 .95 2.02 (.79) (.27) -- -- (1.06)
2000 14.30 1.06 (.78) .28 (.81) (.27) (.02) -- (1.10)
1999 14.86 1.04 (.61) .43 (.76) (.23) -- -- (.99)
1998 14.20 1.02 .67 1.69 (.77) (.26) -- -- (1.03)
1997 13.57 1.04 .63 1.67 (.78) (.26) -- -- (1.04)
Pennsylvania
Dividend
Advantage (NXM)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(b) 14.33 .14 .35 .49 (.15) (.03) -- -- (.18)
=========================================================================================================================
Total Returns
---------------
Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value** Value**
============================================================================
New Jersey
Investment
Quality (NQJ)
----------------------------------------------------------------------------
Year Ended 6/30:
2001 $ -- $15.03 $15.5000 17.13% 10.62%
2000 -- 14.45 14.0625 (4.94) 1.94
1999 (.02) 15.14 15.8125 (2.33) 2.82
1998 -- 15.65 17.1250 11.38 8.12
1997 -- 15.41 16.3125 16.50 8.92
New Jersey
Premium
Income (NNJ)
----------------------------------------------------------------------------
Year Ended 6/30:
2001 -- 15.27 15.1900 20.13 12.90
2000 -- 14.28 13.3750 (9.95) 1.64
1999 -- 14.92 15.8125 7.17 2.87
1998 -- 15.34 15.5625 11.12 10.35
1997 -- 14.71 14.8125 20.95 9.94
New Jersey
Dividend
Advantage (NXJ)
----------------------------------------------------------------------------
Year Ended 6/30:
2001(a) (.13) 14.39 14.9900 .87 1.42
Pennsylvania
Investment
Quality (NQP)
----------------------------------------------------------------------------
Year Ended 6/30:
2001 -- 14.57 15.1300 11.99 7.75
2000 -- 14.39 14.3750 (7.39) .94
1999 (.02) 15.33 16.6875 2.56 2.50
1998 -- 15.94 17.2500 8.77 7.02
1997 -- 15.91 16.8750 9.75 8.01
Pennsylvania
Premium
Income 2 (NPY)
----------------------------------------------------------------------------
Year Ended 6/30:
2001 -- 14.44 13.8700 19.04 13.25
2000 -- 13.48 12.3750 (3.87) .21
1999 -- 14.30 13.7500 7.98 1.27
1998 -- 14.86 13.4375 6.27 10.29
1997 -- 14.20 13.3750 14.82 10.61
Pennsylvania
Dividend
Advantage (NXM)
----------------------------------------------------------------------------
Year Ended 6/30:
2001(b) (.16) 14.48 14.4900 (2.45) 2.06
============================================================================
Ratios/Supplemental Data
------------------------------------------------------------------
Before Credit/Reimbursement
-----------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
=======================================================================================
New Jersey
Investment
Quality (NQJ)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2001 $463,785 1.24% 7.97% .80% 5.16%
2000 450,810 1.22 8.27 .78 5.30
1999 463,329 1.13 7.27 .80 5.12
1998 438,878 1.13 7.40 .79 5.20
1997 431,622 1.14 7.70 .80 5.36
New Jersey
Premium
Income (NNJ)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2001 275,051 1.25 7.14 .83 4.73
2000 263,096 1.24 7.61 .81 4.95
1999 270,304 1.24 7.00 .83 4.68
1998 274,276 1.25 7.24 .83 4.81
1997 266,074 1.27 7.53 .83 4.91
New Jersey
Dividend
Advantage (NXJ)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 142,187 1.05* 3.65* .84* 2.94*
Pennsylvania
Investment
Quality (NQP)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2001 367,188 1.29 8.40 .82 5.38
2000 363,525 1.26 8.57 .81 5.47
1999 377,468 1.16 7.61 .81 5.30
1998 363,139 1.15 7.65 .80 5.34
1997 360,749 1.17 7.96 .81 5.52
Pennsylvania
Premium
Income 2 (NPY)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2001 345,477 1.25 7.55 .82 4.93
2000 330,425 1.26 7.88 .81 5.06
1999 343,335 1.24 6.93 .83 4.61
1998 352,123 1.24 6.99 .82 4.63
1997 341,751 1.27 7.47 .83 4.85
Pennsylvania
Dividend
Advantage (NXM)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2001(b) 72,723 1.26* 3.51* 1.01* 2.81*
=======================================================================================
Ratios/Supplemental Data
----------------------------------------------------------
Municipal Auction Rate Cumulative
After Credit/Reimbursement*** Preferred Stock at End of Period
------------------------------------------------- -----------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total Aggregate Liquidation
Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset
to Common to Common Including Including Turnover Outstanding Value Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Per Share Per Share
=====================================================================================================================
New Jersey
Investment
Quality (NQJ)
---------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001 1.23% 7.99% .80% 5.17% 16% $162,000 $25,000 $71,572
2000 1.21 8.28 .78 5.31 11 162,000 25,000 69,569
1999 1.13 7.27 .80 5.12 8 162,000 25,000 71,501
1998 1.13 7.40 .79 5.20 6 130,000 25,000 84,400
1997 1.14 7.70 .80 5.36 15 130,000 25,000 83,004
New Jersey
Premium
Income (NNJ)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001 1.24 7.15 .82 4.74 6 91,600 25,000 75,068
2000 1.23 7.63 .80 4.96 10 91,600 25,000 71,806
1999 1.24 7.00 .83 4.68 10 91,600 25,000 73,773
1998 1.25 7.24 .83 4.81 13 91,600 25,000 74,857
1997 1.27 7.53 .83 4.91 18 91,600 25,000 72,618
New Jersey
Dividend
Advantage (NXJ)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) .66* 4.03* .54* 3.24* 1 48,000 25,000 74,055
Pennsylvania
Investment
Quality (NQP)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001 1.27 8.41 .82 5.39 17 132,000 25,000 69,543
2000 1.25 8.59 .80 5.48 8 132,000 25,000 68,849
1999 1.16 7.61 .81 5.30 16 132,000 25,000 71,490
1998 1.15 7.65 .80 5.34 9 110,000 25,000 82,532
1997 1.17 7.96 .81 5.52 8 110,000 25,000 81,988
Pennsylvania
Premium
Income 2 (NPY)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001 1.24 7.57 .81 4.94 10 118,100 25,000 73,132
2000 1.25 7.89 .80 5.07 14 118,100 25,000 69,946
1999 1.24 6.93 .82 4.62 9 118,100 25,000 72,679
1998 1.24 6.99 .82 4.63 32 118,100 25,000 74,539
1997 1.27 7.47 .83 4.85 29 118,100 25,000 72,344
Pennsylvania
Dividend
Advantage (NXM)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(b) .87* 3.90* .69* 3.12* -- 25,000 25,000 72,723
====================================================================================================================
* 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. Total
returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 28, 2001 (commencement of operations) through June 30,
2001.
(b) For the period March 29, 2001 (commencement of operations) through June 30,
2001.
See accompanying notes to financial statements.
Build Your Wealth
Automatically
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may 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 reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. 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 advisor or call us at (800)
257-8787.
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
Fund
Information
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT AND SHAREHOLDER SERVICES
J.P. Morgan Chase & Co.
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the twelve-month period ended June 30, 2001. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
Serving Investors
for Generations
Photo of: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Invest well.
Look ahead.
LEAVE YOUR MARK.(SM)
Logo: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com FAN-2-6-01