SEMIANNUAL REPORT December 31, 2002
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
NEW JERSEY
NQJ
NNJ
NXJ
NUJ
PENNSYLVANIA
NQP
NPY
NXM
NVY
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Dear
SHAREHOLDER
Once again, I am pleased to write that during the period covered by this report
your Nuveen Fund continued to meet its objective of providing attractive monthly
income free from regular federal income taxes and, where applicable, state
income taxes. Detailed information on your Fund's performance can be found in
the Portfolio Managers' Comments and on the Performance Overview pages within
this report. Please take the time to read them.
In addition to providing tax-free income, we believe that a municipal bond
investment like your Nuveen Fund also may offer opportunities to reduce the risk
of your overall investment portfolio. This is because the prices of municipal
bonds may move differently than the prices of the common stocks, mutual funds or
other investments you may own. Since one part of your portfolio may be going up
when another is going down, portfolio diversification may reduce your overall
risk. Your financial advisor can explain the advantages of portfolio
diversification in more detail. I urge you to contact him or her soon for more
information on this important investment strategy.
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For more than 100 years, Nuveen has specialized in offering quality investments
such as your Nuveen Fund to those seeking to accumulate and preserve wealth. Our
commitment to careful research, constant surveillance and judicious trading by
our seasoned portfolio management team has never been stronger. Our mission
continues to be to assist you and your financial advisor by offering the
investment solutions and services that can help you meet your financial
objectives. We thank you for choosing us as a partner as you work toward that
goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
February 18, 2003
1
Nuveen New Jersey and Pennsylvania Municipal Closed-End Exchange-Traded Funds
(NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY )
Portfolio Managers'
COMMENTS
Portfolio managers Tom Spalding and Tom O'Shaughnessy discuss U.S. and state
economic conditions, key investment strategies, and the recent performance of
the New Jersey and Pennsylvania Funds. A 26-year veteran of Nuveen, Tom Spalding
has managed NQJ, NNJ, and NXJ since 2001, adding NUJ at its inception in March
2002. Tom O'Shaughnessy, who joined Nuveen in 1983, has managed NQP since 1991,
NPY since 1995, NXM since 2001, and NVY since its inception in March 2002.
(In January 2003, as part of a general realignment of portfolio management
assignments, Paul Brennan assumed primary management responsibility for these
New Jersey and Pennsylvania Funds. Paul has eleven years of investment
management experience.)
WHAT WERE THE MAJOR FACTORS AFFECTING THE U.S. ECONOMY AND THE MUNICIPAL MARKET
DURING THIS REPORTING PERIOD?
In a number of ways, economic and market conditions have not changed
significantly since our last shareholder report dated June 30, 2002. We believe
the most influential factors shaping the U.S. economy and the municipal market
continue to be the slow pace of economic growth and the relatively low level of
interest rates. Continued geopolitical uncertainty and the ongoing threat of
terrorism also had an economic and market impact during the reporting period.
In the municipal market, the sluggish economic recovery and lack of inflationary
pressures created conditions that encouraged many issuers to bring new
securities to market. New municipal supply nationwide topped $357 billion in
2002, a 25% increase over 2001. This eclipsed the previous record issuance of
$292 billion set in 1993. Demand for municipal bonds remained strong over most
of the year, as many individual investors continued to seek tax-free income and
increased diversification within their portfolios. Institutional investors,
especially traditional municipal bond purchasers such as property/ casualty
insurance companies, also were active buyers in the municipal market.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN NEW JERSEY AND PENNSYLVANIA?
New Jersey's diverse economy, convenient location, high income and wealth
levels, and highly skilled workforce provide a solid economic base for the long
term. Like many other states, however, New Jersey is currently grappling with
budgetary stress brought on by declining tax revenues. After using reserve funds
to close the fiscal 2002 budget deficit, the state is addressing a projected $6
billion shortfall for fiscal 2003 by instituting a corporate alternative minimum
tax, borrowing against tobacco settlement proceeds and reducing expenditures.
Given the one-time nature of some of these and other proposed remedies, some
believe that budgetary imbalances are likely to persist and that the fiscal 2004
budget process may begin with a deficit of about $4 billion.
On the economic front, New Jersey's recovery continued to be weak. While the
state's employment picture benefited from its sizable pharmaceutical industry as
well as an influx of financial services jobs from New York City, this was offset
to some degree by continuing losses in the manufacturing sector. As of December
2002, New Jersey's unemployment stood at 5.5%, up from 4.8% a year earlier but
still below the national average of 6.0%. In 2002, New Jersey issued $11 billion
in new municipal debt, an increase of 13% over 2001 levels. New Jersey's
declining tax revenues and increased spending pressures, especially for Medicaid
and pensions, led both Moody's and Standard & Poor's to downgrade the state's
general obligation debt to Aa2/AA from Aa1/AA+, respectively, during the course
of 2002.
Although increasingly diverse, Pennsylvania's economy still has substantial
exposure to old-line manufacturing industries. As a result, the commonwealth's
economy mirrored the national slowdown during 2002. Most major industry groups
cut jobs, with employment in the manufacturing sector down 5% from 2001. This
was offset
2
somewhat by new jobs in pharmaceuticals, software, tourism, and business
services as well as modest growth in construction. As a whole, unemployment in
Pennsylvania rose over the past year, standing at 6.0% in December 2002,
compared with 5.1% a year earlier.
In fiscal 2002, the erosion of tax revenues and a decline in reserves required
Pennsylvania to use a complete $1 billion drawdown of its rainy day fund in
order to balance the budget. Fiscal 2003 budget estimates, which were based on a
modest economic recovery, may now require a mid-year revision. However,
Pennsylvania's debt levels are moderate relative to those of other large states,
and state pension plans are fully funded. Although the commonwealth will
probably not totally escape the budget problems currently prevalent across the
nation, Pennsylvania has a history of conservative fiscal management, which is
expected to help it make the necessary adjustments to balance operations. In
2002, Pennsylvania issued $14.7 billion in municipal bonds, up 13% over 2001.
Over the past 12 months, both Moody's and S&P maintained the commonwealth's
credit ratings at Aa2/AA, respectively.
HOW DID THESE FUNDS PERFORM OVER THE TWELVE MONTHS ENDED DECEMBER 31, 2002?
Individual results for the Funds, as well as relevant benchmarks, are presented
in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
-----------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
12/31/02 EQUIVALENT3 12/31/02 12/31/02 12/31/02
-----------------------------------------------------------------------------
NQJ 6.10% 9.31% 11.45% 9.60% 13.15%
-----------------------------------------------------------------------------
NNJ 5.92% 9.04% 12.49% 9.60% 13.15%
-----------------------------------------------------------------------------
NXJ 6.11% 9.33% 14.21% 9.60% 13.15%
-----------------------------------------------------------------------------
NUJ 6.23% 9.51% NA - -
-----------------------------------------------------------------------------
NQP 6.18% 9.09% 14.69% 9.60% 13.80%
-----------------------------------------------------------------------------
NPY 6.36% 9.35% 12.36% 9.60% 13.80%
-----------------------------------------------------------------------------
NXM 6.09% 8.96% 16.19% 9.60% 13.80%
-----------------------------------------------------------------------------
NVY 6.30% 9.26% NA - -
-----------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended December 31, 2002, all of the New Jersey and
Pennsylvania Funds in this report having at least one year of performance
history significantly outperformed the unleveraged, unmanaged Lehman Brothers
Municipal Bond Index. Some of this performance difference can be traced to the
built-in inequalities of comparing a national index with results obtained within
a specific state. In addition, the Funds benefited from their leveraged
structure, which can provide additional income for investors while adding
additional volatility to the Fund's NAV and share price.
NXJ, NQP, and NXM also outperformed their Lipper peer group averages for the
twelve-month period. NXJ and NXM are relatively new, while NQPs portfolio has
been repositioned in recent years as a result of bond calls. As a result their
leverage-adjusted durations4 were longer than many of their Fund peers. A longer
duration generally will help a Fund perform well in a declining interest rate
environment like the one we experienced in 2002. (Please see the individual
Performance Overview pages for each Fund's duration.)
The modest underperformance of NQJ, NNJ and NPY when compared with their Lipper
peer group average resulted from the cumulative effects of several factors,
including relative durations and specific sector weightings. For example, NQJ
and NNJ had leverage-adjusted durations as of December 31, 2002, of 8.15 and
7.20, respectively . While there are advantages in having relatively short
durations (as will be discussed in a later section), the municipal market
environment in 2002 generally favored longer duration funds. In addition to a
somewhat shorter duration, NPY also held a relatively small amount of education
bonds over the twelve-month period. Education bonds were one of the best
performing sectors in Pennsylvania. As a result, NPY did not receive the total
return benefit from its education holdings to the same extent as other funds
with higher education bond concentrations.
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman
Brothers Municipal Bond Index, an unleveraged national 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 10 funds in the Lipper New Jersey
Municipal Debt Funds category, while the total returns of the Nuveen
Pennsylvania Funds are compared with the average annualized return of the
10 funds in the Lipper Pennsylvania Municipal Debt Funds 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% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: New Jersey 34.5% and Pennsylvania 32%.
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. References to duration in this commentary are
intended to indicate Fund duration unless otherwise noted.
3
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates relatively low, the dividend-paying capabilities
of these Funds benefited from their use of leverage, a strategy that can
potentially enhance the dividends paid to common shareholders. The amount of
this benefit is tied in part to the short-term rates the Funds pay their
MuniPreferred, shareholders. Low short-term rates can enable the Funds to reduce
the amount of income they pay preferred shareholders, which can leave more
earnings to support common share dividends.
During the twelve-months ended December 31, 2002, we were able to implement four
dividend increases in NNJ, three in NPY and NXM, and one in NXJ. NQJ and NQP
continued to pay steady, attractive monthly dividends during this period,
marking 50 and 31 consecutive months, respectively, of stable dividends for
these two Funds. The two Funds introduced in March 2002 -- NUJ and NVY -- paid
their first monthly dividends in May 2002.
Over the course of the twelve-month period, NNJ, NPY, and NXM saw their share
prices finish 2002 higher than where they had begun the year. Share prices of
the other five Funds fell slightly over the course of 2002, affected by the
general weakening of bond prices during October and November 2002. Over the
twelve months ended December 31, 2002, NQJ, NXJ, NQP, and NXM moved from trading
at a premium to their common share net asset values to trading at a discount,
while NNJ and NPY continued to trade at discounts. The two new Funds -- NUJ and
NVY -- were also trading at discounts as of December 31, 2002 (Please see charts
on individual Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE YEAR ENDED
DECEMBER 31, 2002?
Over the twelve-month period, our strategic focus continued to be on
diversifying holdings, enhancing call protection, and positioning the Funds more
defensively in anticipation of potential changes in the interest rate
environment. Given the recent steepness of the municipal yield curve, we
concentrated on finding value in the long-intermediate part of the yield curve
(approximately 15 to 20 years to maturity). In many cases, these bonds were
offering yields similar to those of longer bonds, but in our opinion carried
less inherent risk. The addition of these long-intermediate bonds should help to
moderate the Funds' durations over time, making the portfolios less sensitive to
interest rate changes while still allowing the Funds to provide competitive
yields and returns. We think bonds in this maturity range offer excellent
opportunities for price appreciation and should perform well relative to
longer-maturity bonds if and when interest rates begin to rise. Over the past
year, the addition of such bonds resulted in a shortening of duration in all of
the Funds.
In addition to an emphasis on yield curve positioning and risk reduction, we
also continued to look for individual issues that we believed would perform well
regardless of the future direction of interest rates. Many of our purchases were
insured general-purpose municipal bonds, rather than from specific sectors like
housing or healthcare. We also participated in New Jersey's sale of the tobacco
settlement bonds, which modestly increased our weighting in these bonds to 2%-5%
of each portfolio. This is in line with our 5% cap for this type of credit.
NNJ marked its 10-year anniversary in December 2002, and we have been actively
working to mitigate the effects of increasing bond calls that can occur around
this point in a Fund's lifecycle. We were successful in transitioning out of
several callable issues into bonds with greater call production, reducing the
amount of potential calls in 2003 to about 10% of the Fund, and to about 4% in
2004.
4
Although issuance in the Pennsylvania municipal market was up in both 2001 and
2002, we found relatively few trading opportunities for our Funds. This was
because the Pennsylvania new issue supply has been somewhat atypical over the
past two years, with a large amount of very high-quality issuance and relatively
few lower-rated securities with larger coupons that would help us enhance the
Funds' earning streams. Therefore, we continued to hold most of our
higher-yielding securities in anticipation of improved buying prospects over the
next few years.
The Pennsylvania opportunities we did pursue often were within the education
sector. With an unusually large number of colleges and universities within
Pennsylvania, much of the commonwealth's municipal issuance traditionally comes
in this area. During 2002, this sector offered some of the few opportunities to
purchase uninsured BBB paper. We also continued to invest in general obligation
bonds, especially those issued by small local school districts, and in water and
sewer bonds.
In the geopolitical and economic climate of the past year, we believed that
maintaining strong credit quality was a key requirement. As of December 31,
2002, each of these Funds continued to offer excellent credit quality, with
allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 56% to 89%.
Our weightings in higher quality and insured bonds generally benefited the
performance of these Funds during the past year.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE FUNDS IN
PARTICULAR?
In general, our outlook for the fixed income markets remains positive. We
believe the U.S. economy is headed for an eventual recovery, but one that may be
less robust and slower to arrive than some are predicting. We expect inflation
and interest rates to remain relatively low over the near term, while new
municipal volume nationally should continue to be strong, although probably
below the record levels seen in 2002, as issuers take advantage of the low rate
environment for both new issues and refinancings.
We think issuance in New Jersey may increase once current budget issues are
resolved. In Pennsylvania, we expect to see a wider credit quality range among
new offerings, especially as many of the higher-coupon bonds issued in the early
1990s start to be called. In addition, we believe that the healthcare sector of
the Pennsylvania market is fully priced, and we may begin to reduce the Funds'
holdings in this area.
We believe these Nuveen New Jersey and Pennsylvania Funds generally offer good
levels of call protection. One exception is NPY, which marks its tenth
anniversary in March 2003. This Fund is entering a period typically associated
with increased call exposure, and NPY faces potential calls on 26% of its
portfolio over the next two years. We plan to actively take advantage of what we
anticipate will be opportunities in the Pennsylvania market to eliminate much of
the near-term call exposure of this Fund.
In the months ahead, we expect to continue the process of shortening the
durations of many of these Funds in an effort to better position them in the
event of a rise in interest rates. More generally, we plan to remain focused on
adding value for our shareholders and supporting the Funds' long-term
dividend-payment capabilities. We remain convinced that the attractive tax-free
income and portfolio diversification potential offered by these Funds will
continue to benefit shareholders in the period ahead.
5
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
Performance
OVERVIEW As of December 31, 2002
NQJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 72%
AA 9%
A 8%
BBB 6%
NR 2%
BB or Lower 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.04
--------------------------------------------------
Common Share Net Asset Value $15.43
--------------------------------------------------
Market Yield 6.10%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.71%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.31%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $312,633
--------------------------------------------------
Average Effective Maturity (Years) 20.54
--------------------------------------------------
Leverage-Adjusted Duration 8.15
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 2/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 4.83% 11.45%
--------------------------------------------------
5-Year 4.19% 6.05%
--------------------------------------------------
10-Year 5.92% 6.96%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 26%
--------------------------------------------------
Healthcare 13%
--------------------------------------------------
Tax Obligation/Limited 9%
--------------------------------------------------
Tax Obligation/General 9%
--------------------------------------------------
Education and Civic Organizations 9%
--------------------------------------------------
Bar Chart:
2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
1/02 0.0765
2/02 0.0765
3/02 0.0765
4/02 0.0765
5/02 0.0765
6/02 0.0765
7/02 0.0765
8/02 0.0765
9/02 0.0765
10/02 0.0765
11/02 0.0765
12/02 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/02 15.45
15.5
15.8
15.6
15.8
15.81
15.73
15.75
15.93
15.5
15.27
14.7
14.65
14.79
14.77
14.6
14.88
15.29
15.25
15.01
15.25
15.33
15.5
15.35
15.36
15.22
15.35
15.55
15.55
15.57
15.68
15.75
15.44
15.55
15.47
15.79
15.6
15.55
15.88
15.64
15.5
14.84
14.6
15.03
15
15.19
14.94
15.08
15.13
14.79
14.73
12/31/02 14.86
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%. 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 34.5%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.0664 per share.
6
Nuveen New Jersey Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of December 31, 2002
NNJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 74%
AA 8%
A 13%
BBB 1%
NR 3%
BB or Lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.31
--------------------------------------------------
Common Share Net Asset Value $16.11
--------------------------------------------------
Market Yield 5.92%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.46%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.04%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $193,521
--------------------------------------------------
Average Effective Maturity (Years) 15.21
--------------------------------------------------
Leverage-Adjusted Duration 7.12
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.23% 12.49%
--------------------------------------------------
5-Year 5.85% 6.80%
--------------------------------------------------
10-Year 6.03% 7.22%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 25%
--------------------------------------------------
Tax Obligation/Limited 15%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
Education and Civic Organizations 10%
--------------------------------------------------
Water and Sewer 10%
--------------------------------------------------
Bar Chart:
2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
1/02 0.0705
2/02 0.0705
3/02 0.072
4/02 0.072
5/02 0.072
6/02 0.073
7/02 0.073
8/02 0.073
9/02 0.0745
10/02 0.0745
11/02 0.0745
12/02 0.0755
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/02 14.94
15.2
15.25
15.15
15.23
15.37
15.15
15.17
15.34
15.19
14.95
14.5
14.32
14.59
14.65
14.5
14.61
14.97
15.19
14.7
14.91
15.25
15.23
15.31
15.3
15.5
15.58
15.45
15.52
15.3
15.35
15.42
15.5
15.37
15.45
15.55
15.58
15.6
16
15.86
15.58
15.21
15.07
15.14
15.09
15.01
15.01
15.02
14.83
14.82
14.85
12/31/02 15.18
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%. 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 34.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0099 per share.
7
Nuveen New Jersey Dividend Advantage Municipal Fund
Performance
OVERVIEW As of December 31, 2002
NXJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 69%
AA 3%
A 17%
BBB 5%
BB or Lower 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.15
--------------------------------------------------
Common Share Net Asset Value $14.89
--------------------------------------------------
Market Yield 6.11%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.73%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.33%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $97,471
--------------------------------------------------
Average Effective Maturity (Years) 24.20
--------------------------------------------------
Leverage-Adjusted Duration 10.66
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 2.81% 14.21%
--------------------------------------------------
Since Inception 2.24% 8.07%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 21%
--------------------------------------------------
Water and Sewer 18%
--------------------------------------------------
Transportation 15%
--------------------------------------------------
Tax Obligation/General 13%
--------------------------------------------------
Education and Civic Organizations 12%
--------------------------------------------------
Bar Chart:
2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
1/02 0.071
2/02 0.071
3/02 0.071
4/02 0.071
5/02 0.071
6/02 0.071
7/02 0.071
8/02 0.071
9/02 0.071
10/02 0.071
11/02 0.071
12/02 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/02 14.52
14.75
14.71
14.75
14.77
14.65
14.5
14.78
14.68
14.38
13.99
13.36
13.64
13.7
14
13.99
13.87
14.24
14.12
14.16
14.2
14.31
14.72
14.7
14.5
14.12
14.49
14.3
14.55
14.26
14.5
14.62
14.4
14.55
14.59
14.71
14.66
14.75
14.82
14.63
14.5
13.91
13.6
13.94
13.67
13.86
13.29
13.38
13.6
13.69
13.8
12/31/02 14.16
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%. 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 34.5%.
8
Nuveen New Jersey Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of December 31, 2002
NUJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 54%
AA 2%
A 19%
BBB 18%
NR 1%
BB or Lower 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.74
--------------------------------------------------
Common Share Net Asset Value $15.00
--------------------------------------------------
Market Yield 6.23%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.90%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.51%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $67,632
--------------------------------------------------
Average Effective Maturity (Years) 22.75
--------------------------------------------------
Leverage-Adjusted Duration 11.40
--------------------------------------------------
CUMULATIVE TOTAL RETURN (Inception 3/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 2.60% 9.34%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 27%
--------------------------------------------------
Healthcare 18%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Tax Obligation/Limited 9%
--------------------------------------------------
Bar Chart:
2002 Monthly Tax-Free Dividends Per Share2
5/02 0.0765
6/02 0.0765
7/02 0.0765
8/02 0.0765
9/02 0.0765
10/02 0.0765
11/02 0.0765
12/02 0.0765
Line Chart:
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
4/1/02 15.35
15.09
15
15.02
15.1
15.06
15.12
15.02
15.1
15.2
15.28
15.5
15.35
15.04
15.55
15.2
15.13
15.22
15.85
15.37
15.16
15.32
15.16
15.48
15.52
15.47
15.54
15.57
15.37
14.84
14.4
14.28
14.2
14.26
13.92
14.03
14.01
14.42
14.35
12/31/02 14.65
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%. 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 34.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0319 per share.
9
Nuveen Pennsylvania Investment Quality Municipal Fund
Performance
OVERVIEW As of December 31, 2002
NQP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 70%
AA 19%
A 8%
BBB 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.75
--------------------------------------------------
Common Share Net Asset Value $15.46
--------------------------------------------------
Market Yield 6.18%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.83%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.09%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $251,602
--------------------------------------------------
Average Effective Maturity (Years) 22.11
--------------------------------------------------
Leverage-Adjusted Duration 11.25
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 2/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 5.20% 14.69%
--------------------------------------------------
5-Year 3.25% 5.80%
--------------------------------------------------
10-Year 5.82% 6.87%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 20%
--------------------------------------------------
Tax Obligation/Limited 17%
--------------------------------------------------
Education and Civic Organizations 13%
--------------------------------------------------
Water and Sewer 12%
--------------------------------------------------
Transportation 8%
--------------------------------------------------
Bar Chart:
2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
1/02 0.076
2/02 0.076
3/02 0.076
4/02 0.076
5/02 0.076
6/02 0.076
7/02 0.076
8/02 0.076
9/02 0.076
10/02 0.076
11/02 0.076
12/02 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/02 14.95
15.19
15.35
15.58
15.52
15.78
15.53
15.55
15.71
15.56
15.12
14.28
14.16
14.2
14.33
14.46
14.56
14.77
14.75
14.73
14.8
14.82
14.8
15
14.95
15.18
15.4
15.3
15.15
15.15
15.24
15.32
15.1
15.12
15.15
15.47
15.4
15.48
15.65
15.6
15.22
14.76
14.25
14.3
14.75
14.6
14.44
14.56
14.89
14.4
14.28
12/31/02 14.5
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%. 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%.
10
Nuveen Pennsylvania Premium Income Municipal Fund 2
Performance
OVERVIEW As of December 31, 2002
NPY
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 72%
AA 9%
A 8%
BBB 8%
NR 2%
BB or Lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.43
--------------------------------------------------
Common Share Net Asset Value $15.33
--------------------------------------------------
Market Yield 6.36%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.09%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.35%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $241,480
--------------------------------------------------
Average Effective Maturity (Years) 18.23
--------------------------------------------------
Leverage-Adjusted Duration 8.62
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.10% 12.36%
--------------------------------------------------
5-Year 6.43% 6.54%
--------------------------------------------------
Since Inception 5.67% 6.70%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 14%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Utilities 12%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
Bar Chart:
2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
1/02 0.0725
2/02 0.0725
3/02 0.074
4/02 0.074
5/02 0.074
6/02 0.0755
7/02 0.0755
8/02 0.0755
9/02 0.0755
10/02 0.0755
11/02 0.0755
12/02 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/02 14.13
14.35
14.62
14.67
14.61
14.73
14.49
14.56
14.47
14.3
14.26
13.91
13.92
13.92
13.96
13.99
14.29
14.3
14.34
14.25
14.38
14.74
14.81
14.75
14.64
14.79
14.95
15.17
14.84
15.06
15.05
15.1
14.92
14.8
14.79
14.89
14.95
15.14
15.13
15.08
14.74
14.33
13.93
14.02
14.27
14.18
14.23
14.04
14.27
14.09
14.15
12/31/02 14.22
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%. 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%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0053 per share.
11
Nuveen Pennsylvania Dividend Advantage Municipal Fund
Performance
OVERVIEW As of December 31, 2002
NXM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 54%
AA 17%
A 13%
BBB 11%
NR 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.07
--------------------------------------------------
Common Share Net Asset Value $15.67
--------------------------------------------------
Market Yield 6.09%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.70%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.96%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $51,654
--------------------------------------------------
Average Effective Maturity (Years) 21.60
--------------------------------------------------
Leverage-Adjusted Duration 11.52
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 8.42% 16.19%
--------------------------------------------------
Since Inception 6.48% 11.64%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 26%
--------------------------------------------------
Education and Civic Organizations 19%
--------------------------------------------------
Healthcare 12%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Long-Term Care 8%
--------------------------------------------------
Bar Chart:
2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
1/02 0.0725
2/02 0.0725
3/02 0.0735
4/02 0.0735
5/02 0.0735
6/02 0.0735
7/02 0.0735
8/02 0.0735
9/02 0.0745
10/02 0.0745
11/02 0.0745
12/02 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/02 14.9
14.77
14.9
14.97
14.98
15.06
15
14.85
15.08
14.75
14.64
14.15
14.45
13.98
13.83
13.95
14.08
14.45
14.4
14.5
14.78
15
14.82
14.95
14.89
14.89
15.19
15.2
14.92
14.92
15.5
15.28
15.25
15.1
15.09
15.3
15.25
15.3
15.65
15.7
15.4
14.83
14.68
14.3
14.49
14.59
14.27
14.6
14.59
14.31
14.32
12/31/02 14.42
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%. 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%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.0995 per share.
12
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of December 31, 2002
NVY
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 58%
AA 27%
A 3%
BBB 11%
NR 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.58
--------------------------------------------------
Common Share Net Asset Value $15.39
--------------------------------------------------
Market Yield 6.30%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.00%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.26%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $57,314
--------------------------------------------------
Average Effective Maturity (Years) 19.29
--------------------------------------------------
Leverage-Adjusted Duration 11.02
--------------------------------------------------
CUMULATIVE TOTAL RETURN (Inception 3/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 1.45% 12.07%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 29%
--------------------------------------------------
Tax Obligation/Limited 22%
--------------------------------------------------
Education and Civic Organizations 13%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Healthcare 6%
--------------------------------------------------
Bar Chart:
2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/02 0.0765
6/02 0.0765
7/02 0.0765
8/02 0.0765
9/02 0.0765
10/02 0.0765
11/02 0.0765
12/02 0.0765
Line Chart:
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
4/1/02 15.1
15.02
15.1
15
15.01
15.09
15.25
15
15.22
15.24
15.38
15.15
15.05
14.74
15.21
15.1
15
15.05
15.25
15.65
15.35
15.09
15.2
15.4
15.32
15.65
15.66
15.95
15.59
15.38
15.01
14.99
14.8
14.42
14.4
14.2
14.53
14.3
14.06
12/31/02 14.53
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%. 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%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0295 per share.
13
Shareholder
MEETING REPORT
The Shareholder Meeting was held in Chicago, Illinois on December 18, 2002.
NQJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Shares Shares
Shares Series-M Series-TH Series-F
====================================================================================================================================
Robert P. Bremner
For 18,411,783 3,160 1,951 1,216
Withhold 183,927 -- 3 16
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,710 3,160 1,954 1,232
====================================================================================================================================
Lawrence H. Brown
For 18,408,632 3,160 1,951 1,216
Withhold 187,078 -- 3 16
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,710 3,160 1,954 1,232
====================================================================================================================================
Anne E. Impellizzeri
For 18,404,229 3,160 1,951 1,216
Withhold 191,481 -- 3 16
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,710 3,160 1,954 1,232
====================================================================================================================================
Peter R. Sawers
For 18,415,723 3,160 1,951 1,208
Withhold 179,987 -- 3 24
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,710 3,160 1,954 1,232
====================================================================================================================================
Judith M. Stockdale
For 18,397,339 3,160 1,951 1,216
Withhold 198,371 -- 3 16
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,710 3,160 1,954 1,232
====================================================================================================================================
William J. Schneider
For -- 3,160 1,951 1,216
Withhold -- -- 3 16
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,160 1,954 1,232
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,160 1,951 1,216
Withhold -- -- 3 16
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,160 1,954 1,232
====================================================================================================================================
14
NNJ NXJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred
Common Shares Shares Shares Common Shares
Shares Series-T Series-W Series-TH Shares Series-T
====================================================================================================================================
Robert P. Bremner
For 11,150,750 592 1,367 1,518 6,474,015 1,877
Withhold 106,626 4 28 -- 55,290 --
------------------------------------------------------------------------------------------------------------------------------------
Total 11,257,376 596 1,395 1,518 6,529,305 1,877
====================================================================================================================================
Lawrence H. Brown
For 11,150,091 592 1,367 1,518 6,473,349 1,877
Withhold 107,285 4 28 -- 55,956 --
------------------------------------------------------------------------------------------------------------------------------------
Total 11,257,376 596 1,395 1,518 6,529,305 1,877
====================================================================================================================================
Anne E. Impellizzeri
For 11,149,565 592 1,367 1,518 6,468,630 1,877
Withhold 107,811 4 28 -- 60,675 --
------------------------------------------------------------------------------------------------------------------------------------
Total 11,257,376 596 1,395 1,518 6,529,305 1,877
====================================================================================================================================
Peter R. Sawers
For 11,147,192 588 1,367 1,512 6,473,349 1,877
Withhold 110,184 8 28 6 55,956 --
------------------------------------------------------------------------------------------------------------------------------------
Total 11,257,376 596 1,395 1,518 6,529,305 1,877
====================================================================================================================================
Judith M. Stockdale
For 11,152,082 592 1,367 1,518 6,467,030 1,877
Withhold 105,294 4 28 -- 62,275 --
------------------------------------------------------------------------------------------------------------------------------------
Total 11,257,376 596 1,395 1,518 6,529,305 1,877
====================================================================================================================================
William J. Schneider
For -- 592 1,367 1,518 -- 1,877
Withhold -- 4 28 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 596 1,395 1,518 -- 1,877
====================================================================================================================================
Timothy R. Schwertfeger
For -- 592 1,367 1,518 -- 1,877
Withhold -- 4 28 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 596 1,395 1,518 -- 1,877
====================================================================================================================================
15
Shareholder
MEETING REPORT (continued)
NQP
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Shares Shares
Shares Series-T Series-W Series-TH
====================================================================================================================================
Robert P. Bremner
For 14,484,028 836 2,291 1,976
Withhold 166,546 6 13 4
------------------------------------------------------------------------------------------------------------------------------------
Total 14,650,574 842 2,304 1,980
====================================================================================================================================
Lawrence H. Brown
For 14,485,433 836 2,292 1,976
Withhold 165,141 6 12 4
------------------------------------------------------------------------------------------------------------------------------------
Total 14,650,574 842 2,304 1,980
====================================================================================================================================
Anne E. Impellizzeri
For 14,448,945 836 2,292 1,974
Withhold 201,629 6 12 6
------------------------------------------------------------------------------------------------------------------------------------
Total 14,650,574 842 2,304 1,980
====================================================================================================================================
Peter R. Sawers
For 14,460,714 836 2,292 1,974
Withhold 189,860 6 12 6
------------------------------------------------------------------------------------------------------------------------------------
Total 14,650,574 842 2,304 1,980
====================================================================================================================================
Judith M. Stockdale
For 14,470,892 836 2,291 1,976
Withhold 179,682 6 13 4
------------------------------------------------------------------------------------------------------------------------------------
Total 14,650,574 842 2,304 1,980
====================================================================================================================================
William J. Schneider
For -- 836 2,291 1,976
Withhold -- 6 13 4
------------------------------------------------------------------------------------------------------------------------------------
Total -- 842 2,304 1,980
====================================================================================================================================
Timothy R. Schwertfeger
For -- 836 2,292 1,976
Withhold -- 6 12 4
------------------------------------------------------------------------------------------------------------------------------------
Total -- 842 2,304 1,980
====================================================================================================================================
16
NPY NXM
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred
Common Shares Shares Shares Common Shares
Shares Series-M Series-TH Series-F Shares Series-T
====================================================================================================================================
Robert P. Bremner
For 14,443,685 807 2,009 1,701 3,235,893 992
Withhold 108,297 2 13 24 43,774 1
------------------------------------------------------------------------------------------------------------------------------------
Total 14,551,982 809 2,022 1,725 3,279,667 993
====================================================================================================================================
Lawrence H. Brown
For 14,435,648 800 2,009 1,698 3,234,467 992
Withhold 116,334 9 13 27 45,200 1
------------------------------------------------------------------------------------------------------------------------------------
Total 14,551,982 809 2,022 1,725 3,279,667 993
====================================================================================================================================
Anne E. Impellizzeri
For 14,431,251 800 2,009 1,698 3,227,467 992
Withhold 120,731 9 13 27 52,200 1
------------------------------------------------------------------------------------------------------------------------------------
Total 14,551,982 809 2,022 1,725 3,279,667 993
====================================================================================================================================
Peter R. Sawers
For 14,437,018 800 2,009 1,698 3,227,467 992
Withhold 114,964 9 13 27 52,200 1
------------------------------------------------------------------------------------------------------------------------------------
Total 14,551,982 809 2,022 1,725 3,279,667 993
====================================================================================================================================
Judith M. Stockdale
For 14,436,441 807 2,009 1,701 3,235,893 992
Withhold 115,541 2 13 24 43,774 1
------------------------------------------------------------------------------------------------------------------------------------
Total 14,551,982 809 2,022 1,725 3,279,667 993
====================================================================================================================================
William J. Schneider
For -- 807 2,009 1,701 -- 992
Withhold -- 2 13 24 -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 809 2,022 1,725 -- 993
====================================================================================================================================
Timothy R. Schwertfeger
For -- 807 2,009 1,702 -- 992
Withhold -- 2 13 23 -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 809 2,022 1,725 -- 993
====================================================================================================================================
17
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 2.0%
$ 6,250 Pollution Control Financing Authority of Salem County, New Jersey, 5/03 at 101.00 AA- $ 6,324,250
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 - 2.8%
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
8,000 5.750%, 6/01/32 6/12 at 100.00 A1 7,719,440
1,000 6.000%, 6/01/37 6/12 at 100.00 A1 975,090
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.8%
2,500 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 2,480,325
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
4,390 Higher Education Student Assistance Authority of the State 6/10 at 101.00 AAA 4,811,703
of New Jersey, Student Loan Revenue Bonds, 2000 Series A,
6.125%, 6/01/17 (Alternative Minimum Tax)
2,865 New Jersey Economic Development Authority, School Revenue 2/08 at 101.00 N/R 2,878,752
Bonds (Gill/St. Bernard School), Series 1998, 6.000%, 2/01/25
New Jersey Educational Facilities Authority, Revenue Bonds,
Saint Peters College Issue, 1998 Series B:
1,000 5.375%, 7/01/18 7/08 at 102.00 BBB 1,040,650
1,750 5.500%, 7/01/27 7/08 at 102.00 BBB 1,789,673
1,250 New Jersey Educational Facilities Authority, Seton Hall University 7/08 at 101.00 AAA 1,285,238
Project Revenue Refunding Bonds, 1998 Series Project F,
5.000%, 7/01/21
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,019,070
Ramapo College of New Jersey, Series 2001D, 5.000%, 7/01/31
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2001G:
1,000 5.250%, 7/01/20 7/11 at 100.00 AAA 1,065,210
1,945 5.250%, 7/01/21 7/11 at 100.00 AAA 2,060,475
750 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AA 794,498
Rider University, Refunding Series 2002A, 5.000%, 7/01/17
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 2,040,940
New Jersey City University, Series 2002A, 5.000%, 7/01/32
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 2,010,420
Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32
5,505 New Jersey Higher Educational Assistance Authority, Student 6/07 at 102.00 AAA 5,899,598
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1997A, 5.800%, 6/01/16 (Alternative Minimum Tax)
4,235 Puerto Rico Industrial, Educational, Medical, and Environmental 9/11 at 100.00 BBB 4,345,872
Control Facilities Financing Authority, Higher Education Revenue
Bonds, Series 2001, University of the Sacred Heart Project,
5.250%, 9/01/21
University of Medicine and Dentistry, New Jersey, Revenue Bonds,
Series 2002A:
2,000 5.000%, 12/01/24 12/12 at 100.00 AAA 2,057,440
4,000 5.500%, 12/01/27 12/12 at 100.00 AAA 4,310,680
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.8%
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/07 at 102.00 BBB- 1,445,100
Bonds, Saint Elizabeth Hospital Obligated Group, Series
1997 Refunding, 6.000%, 7/01/27
2,070 New Jersey Health Care Facilities Financing Authority, 1/03 at 101.00 AAA 2,148,246
Revenue Bonds, Robert Wood Johnson University Hospital,
Series B, 6.625%, 7/01/16
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 4,350 New Jersey Health Care Facilities Financing Authority, Revenue 1/03 at 101.00 AAA $ 4,411,727
Bonds, Mercer Medical Center Issue, Series 1991,
6.500%, 7/01/10
2,535 New Jersey Health Care Facilities Financing Authority, Revenue 7/03 at 102.00 Baa2 2,580,072
Bonds, Deborah Heart and Lung Center Issue, Series of 1993,
6.200%, 7/01/13
6,150 New Jersey Health Care Facilities Financing Authority, Revenue 8/11 at 100.00 AAA 6,219,495
Bonds, Jersey City Medical Center Issue, FHA-Insured
Mortgage, Series 2001, 5.000%, 8/01/41
3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A3 3,080,910
Bonds, Kennedy Health System, Series 2001, 5.500%, 7/01/21
3,135 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 3,206,447
Bonds, Bayshore Community Hospital, Series 2002 Refunding,
5.125%, 7/01/32
7,400 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 7,578,488
Bonds, South Jersey Hospital, Series 2002, 5.875%, 7/01/21
2,155 New Jersey Health Care Facilities Financing Authority, Kennedy No Opt. Call AAA 2,368,022
Health System Obligated Group, Revenue Bonds, Series 1998B,
5.750%, 7/01/05
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100.00 A+ 4,106,795
2,000 5.750%, 7/01/31 7/10 at 100.00 A+ 2,125,600
4,320 New Jersey Health Care Facilities Financing Authority, Revenue 7/08 at 101.00 Aaa 4,400,352
and Refunding Bonds, Saint Barnabas Medical Center/West
Hudson Hospital Obligated Group, Series 1998A,
5.000%, 7/01/23
5,040 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 AAA 5,254,553
Bonds, Society of the Valley Obligated Group Issue, Series 2000,
5.375%, 7/01/31
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa1 2,167,800
Bonds, Series 2000A, Saint Peter's University Hospital Issue,
6.875%, 7/01/20
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 3,610,460
Bonds, Meridian Health System Obligated Group Issue,
Series 1999, 5.250%, 7/01/29
3,965 Newark Healthcare Facility, New Jersey, Revenue Bonds, 6/12 at 102.00 Aaa 4,111,824
GNMA Collateralized - New Community Urban Renewal
Corporation, Series 2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.5%
3,790 Hudson County Improvement Authority, New Jersey, Multifamily 6/04 at 100.00 AA- 3,880,316
Housing Revenue Bonds, Series 1992 A (Conduit Financing-
Observer Park Project), 6.900%, 6/01/22 (Alternative
Minimum Tax)
1,175 Housing Finance Corporation of the City of Long Branch, 4/03 at 100.00 N/R 1,180,640
New Jersey, 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 5/03 at 101.00 AAA 12,255,000
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 102.00 AAA 4,734,360
Housing Revenue Bonds, 1995 Series A, 6.000%, 11/01/14
4,500 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/06 at 102.00 AAA 4,745,295
Housing Revenue Bonds, 1996 Series A, 6.250%, 5/01/28
(Alternative Minimum Tax)
2,743 Housing Authority of the City of Newark, New Jersey, Housing 10/09 at 102.00 Aaa 2,934,445
Revenue Bonds (GNMA Collateralized - Fairview Apartments
Project), 2000 Series A, 6.400%, 10/20/34 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.3%
1,205 New Jersey Housing and Mortgage Finance Agency, 4/03 at 100.00 AAA 1,206,133
Home Buyer Revenue Bonds, 1990 Series F-2, 6.300%, 4/01/25
(Alternative Minimum Tax)
2,180 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/05 at 101.50 AAA 2,279,539
Revenue Bonds, 1995 Series O, 6.350%, 10/01/27
(Alternative Minimum Tax)
4,160 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/07 at 101.50 AAA 4,368,416
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 101.50 AAA 10,454,200
Revenue Bonds, 1997 Series U, 5.850%, 4/01/29
(Alternative Minimum Tax)
19
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 10,285 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 AAA $10,819,306
Revenue Bonds, 2000 Series CC, 5.875%, 10/01/31 (Alternative
Minimum Tax)
3,000 Puerto Rico Housing Finance Corporation, Home Mortgage Revenue 6/11 at 100.00 AAA 3,084,060
Bonds, Mortgage-Backed Securities, 2001 Series A,
5.200%, 12/01/33
3,000 Puerto Rico Housing Finance Corporation, Home Mortgage Revenue 6/11 at 100.00 AAA 3,072,690
Bonds, Mortgage-Backed Securities, 2001 Series B,
5.300%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 1.6%
5,000 New Jersey Economic Development Authority, Economic No Opt. Call Baa3 4,982,450
Development Revenue Bonds, Kakpkowski Road Landfill Project
Refunding, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8%
New Jersey Health Care Facilities Financing Authority, Health
Care Facilities Revenue Bonds, House of the Good Shepherd
Obligated Group Issue, Series 2001:
1,000 5.100%, 7/01/21 7/11 at 100.00 AA 1,037,770
1,500 5.200%, 7/01/31 7/11 at 100.00 AA 1,544,115
2,980 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa 3,087,518
Collateralized Mortgage Revenue Bonds, Series 2001A, Victoria
Health Corporation Project, 5.200%, 12/20/36
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.9%
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 1/11 at 100.00 AAA 1,763,155
1,625 5.000%, 1/15/22 1/11 at 100.00 AAA 1,677,601
1,110 East Brunswick Township, Middlesex County, New Jersey, 4/03 at 101.00 Aa2 1,131,079
General Obligation Bonds, Series 1993 Refunding,
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 3,494,910
1,000 5.000%, 11/15/11 11/07 at 101.00 Aaa 1,109,460
2,320 City of Hoboken, New Jersey, Fiscal Year Adjustment General No Opt. Call AAA 2,870,814
Obligation Bonds, Series 1991, 8.900%, 8/01/06
3,675 Jersey City, Hudson County, New Jersey, Fiscal Year Adjustment No Opt. Call AAA 4,438,555
Bonds, Series B 1991, 8.400%, 5/15/06
Board of Education of the Township of Middleton in the County of
Monmouth, New Jersey, Refunding School Bonds:
3,500 5.000%, 8/01/22 8/10 at 100.00 AAA 3,612,385
1,500 5.000%, 8/01/27 8/10 at 100.00 AAA 1,533,750
2,000 Morristown, New Jersey, General Obligation Bonds, Series 1995 8/05 at 102.00 AAA 2,262,720
Refunding, 6.500%, 8/01/19
State of New Jersey, General Obligation Bonds, Series D:
4,000 5.750%, 2/15/06 No Opt. Call AA 4,474,280
5,000 6.000%, 2/15/11 No Opt. Call AA 5,891,950
2,000 Commonwealth of Puerto Rico, Public Improvement Refunding 7/11 at 100.00 AAA 2,068,640
Series of 2001, General Obligation Bonds, 5.125%, 7/01/30
Sayreville School District, Middlesex County, New Jersey, General
Obligation Bonds, Series 2002:
1,470 5.000%, 3/01/24 3/12 at 100.00 AAA 1,517,378
1,545 5.000%, 3/01/25 3/12 at 100.00 AAA 1,591,288
900 Township of West Deptford, County of Gloucester, New Jersey, 3/06 at 102.00 AAA 982,674
General Obligation Bonds, Series of 1996, 5.250%, 3/01/14
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.3%
3,320 Atlantic County Improvement Authority, New Jersey, Egg Harbor 11/10 at 100.00 Aaa 3,497,056
Township Guaranteed Revenue Bonds, Series 2000, Egg Harbor
Township Golf Corporation Project, 5.400%, 11/01/30
10,000 Essex County Improvement Authority, New Jersey, County of 10/10 at 100.00 Aaa 11,352,900
Essex General Obligation Guaranteed Lease Revenue Bonds,
Series 2000 (County Correctional Facility Project),
6.000%, 10/01/25
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,535 Board of Education of the Township of Mansfield in the County 3/06 at 102.00 AAA $ 2,852,154
of Warren, New Jersey, Certificates of Participation,
5.900%, 3/01/15
1,500 County of Middlesex, New Jersey, Certificates of Participation, 8/11 at 100.00 AAA 1,534,080
Series 2001, 5.000%, 8/01/31
New Jersey Economic Development Authority, Lease Revenue Bonds,
Series 1998 (Bergen County Administration Complex):
500 4.050%, 11/15/03 No Opt. Call Aaa 512,655
4,000 4.750%, 11/15/26 11/08 at 101.00 Aaa 4,006,320
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 5,887,558
System Bonds, 2001 Series B, 5.000%, 12/15/21
1,895 Township of North Bergen Municipal Utilities Authority, No Opt. Call AAA 2,460,373
Hudson County, New Jersey, Sewer Revenue Refunding Bonds,
Series 1993, 7.875%, 12/15/09
1,000 Ocean County Utilities Authority, New Jersey, Wastewater Revenue 1/07 at 102.00 Aa1 1,109,050
Bonds, Refunding Series 1997, 5.125%, 1/01/10
1,250 Ocean County Utilities Authority, New Jersey, Wastewater Revenue 1/11 at 101.00 Aa1 1,319,988
Bonds, Refunding Series 2000, 5.000%, 1/01/18
4,000 Passaic Valley Sewerage Commissioners, New Jersey, Sewer 6/03 at 102.00 AAA 4,092,840
System Bonds, Series D, 5.800%, 12/01/18
660 South Toms River Sewerage Authority, Ocean County, New Jersey, 5/03 at 102.00 N/R 675,028
Sewer Refunding Revenue Bonds, Series 1992 (Bank-Qualified),
7.400%, 11/01/05
2,000 Board of Education of the Township of West Orange in the County 10/09 at 101.00 Aaa 2,222,780
of Essex, New Jersey, Certificates of Participation,
6.000%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 37.7%
3,275 Delaware River and Bay Authority of the States of Delaware 1/10 at 101.00 AAA 3,614,028
and New Jersey, Revenue Bonds, Series 2000A, 5.750%, 1/01/29
2,960 Delaware River Port Authority, States of Pennsylvania and 1/12 at 100.00 AAA 3,073,102
New Jersey, Port District Project Revenue Refunding Bonds,
Series 2001A, 5.200%, 1/01/27
7,000 Delaware River Port Authority, New Jersey and Pennsylvania, 1/06 at 102.00 AAA 7,308,700
Revenue Bonds, Series of 1995, 5.500%, 1/01/26
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,847,235
Revenue Bonds, Series of 1999, 5.750%, 1/01/22
3,000 New Jersey Economic Development Authority, Economic 5/03 at 101.00 BB- 1,292,310
Development Bonds, American Airlines, Inc. Project,
7.100%, 11/01/31 (Alternative Minimum Tax)
3,000 New Jersey Highway Authority (Garden State Parkway), 1/10 at 101.00 AA- 3,227,400
Senior Parkway Revenue and Refunding Bonds, 1999 Series,
5.625%, 1/01/30
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991C:
9,000 6.500%, 1/01/08 No Opt. Call AAA 10,656,630
740 6.500%, 1/01/16 No Opt. Call AAA 914,551
2,770 6.500%, 1/01/16 No Opt. Call A- 3,364,026
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 2000A:
9,275 5.500%, 1/01/25 1/10 at 100.00 AAA 9,909,874
10,000 5.500%, 1/01/27 1/10 at 100.00 A- 10,604,000
2,000 5.500%, 1/01/30 1/10 at 100.00 AAA 2,130,700
5,000 Port Authority of New York and New Jersey, Consolidated Bonds, 6/05 at 101.00 AAA 5,378,950
One Hundredth Series, 5.750%, 6/15/30
21
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 3,150 Port Authority of New York and New Jersey, Consolidated Bonds, 7/04 at 101.00 AA- $ 3,308,697
Ninety-Fifth Series, 6.125%, 7/15/29 (Alternative Minimum Tax)
4,300 Port Authority of New York and New Jersey, Special Project Bonds, 6/03 at 101.00 BB 4,212,882
Series 1R Delta Air Lines, Inc. Project, LaGuardia Airport
Passenger Terminal, 6.950%, 6/01/08
3,930 Port Authority of New York and New Jersey, Consolidated Bonds, 7/08 at 101.00 AA- 3,950,633
One Hundred Twenty Second Series, 5.125%, 1/15/36
(Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Bonds,
One Hundred Twenty Fifth Series:
2,280 5.000%, 10/15/26 4/12 at 101.00 AAA 2,338,231
5,000 5.000%, 4/15/32 4/12 at 101.00 AAA 5,108,750
6,850 Port Authority of New York and New Jersey, Consolidated Bonds, 10/07 at 101.00 AAA 7,120,232
One Hundred Twenty First Series, 5.375%, 10/15/35
Port Authority of New York and New Jersey, Special Project
Bonds, Series 6, JFK International Air Terminal LLC Project:
3,500 7.000%, 12/01/12 (Alternative Minimum Tax) No Opt. Call AAA 4,316,235
6,605 5.750%, 12/01/22 (Alternative Minimum Tax) 12/07 at 102.00 AAA 7,107,641
12,130 5.750%, 12/01/25 (Alternative Minimum Tax) 12/07 at 100.00 AAA 12,972,914
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 2,007,000
Revenue Bonds, Series 2002K Refunding, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.4%
6,220 Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 6,977,098
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
500 Mercer County Improvement Authority, New Jersey, Library 12/03 at 102.00 Aa2*** 531,915
System Revenue Bonds, Series 1994A, 6.000%, 12/01/14
(Pre-refunded to 12/01/03)
760 County of Middlesex, New Jersey, Certificates of Participation, 2/04 at 101.00 AAA 809,263
Series 1994, 6.125%, 2/15/19 (Pre-refunded to 2/15/04)
1,000 Monmouth County Improvement Authority, New Jersey, Revenue 7/07 at 101.00 AAA 1,160,770
Bonds, Series 1997, Howell Township Board of Education Project,
5.800%, 7/15/17 (Pre-refunded to 7/15/07)
5,000 Commonwealth of Puerto Rico, Public Improvement Refunding 7/05 at 101.50 AAA 5,604,300
Bonds of 1995, 5.750%, 7/01/24 (Pre-refunded to 7/01/05)
7,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 8,112,900
Bonds, 2000 Series A, 5.500%, 10/01/34
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.0%
3,255 Pollution Control Financing Authority of Camden County, 6/03 at 101.00 B2 3,232,280
New Jersey, 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, 6/03 at 101.00 B2 3,469,934
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 1/03 at 102.50 A2 418,800
Rate Pollution Control Revenue Bonds, 1985 Series (Jersey
Central Power and Light Company Project), 7.100%, 7/01/15
5,950 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101.50 AAA 6,631,096
Bond, Series FF, 5.250%, 7/01/13
5,000 Puerto Rico Electric Power Authority, Power Revenue Refunding No Opt. Call AAA 6,000,350
Bonds, Series Y, 7.000%, 7/01/07
2,500 Pollution Control Financing Authority of Salem County, 4/12 at 101.00 Baa1 2,426,424
New Jersey, Pollution Control Revenue Refunding Bonds,
2001 Series A, PSEG Power LLC Project, 5.750%, 4/01/31
(Alternative Minimum Tax)
3,000 Union County Utilities Authority, New Jersey, Solid Waste Facility 6/08 at 101.00 AAA 2,952,750
Senior Lease Revenue Bonds (Ogden Martin Systems of
Union, Inc. Lessee-Series 1998A), 5.000%, 6/01/23 (Alternative
Minimum Tax)
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.3%
$ 3,000 Jersey City Municipal Utilities Authority, Hudson County, 7/08 at 102.00 AAA $ 3,081,000
New Jersey, Sewer Revenue Bonds, Series 2001A-2,
5.200%, 7/15/21 (Alternative Minimum Tax)
7,500 New Jersey Economic Development Authority, Water Facilities 5/06 at 102.00 AAA 7,983,750
Revenue Bonds (New Jersey-American Water Company),
Series 1996, 6.000%, 5/01/36 (Alternative Minimum Tax)
5,250 New Jersey Economic Development Authority, Water Facilities 7/08 at 102.00 AAA 5,369,122
Revenue Bonds (New Jersey-American Water Company),
Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax)
3,000 North Hudson Sewerage Authority, New Jersey, Sewer Revenue 8/12 at 100.00 Aaa 3,257,400
Bonds, Series 2002A Refunding, 5.250%, 8/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 432,703 Total Long-Term Investments (cost $433,275,790) - 146.2% 457,118,762
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.6% 17,514,592
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.8)% (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $312,633,354
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
23
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 0.3%
$ 600 New Jersey Economic Development Authority, Economic Growth 12/03 at 102.00 Aa3 $ 625,452
Bonds, Composite Issue-1992 Second Series T,
5.300%, 12/01/07 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.5%
1,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 A1 964,930
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.7%
New Jersey Higher Education Student Assistance Authority,
Student Loan Revenue Bonds, 2000 Series A:
3,180 5.700%, 6/01/08 (Alternative Minimum Tax) No Opt. Call AAA 3,557,307
2,140 6.000%, 6/01/15 (Alternative Minimum Tax) 6/10 at 101.00 AAA 2,355,819
3,180 New Jersey Economic Development Authority, Economic No Opt. Call N/R 3,475,422
Development Bonds (Yeshiva Ktana of Passaic-1992 Project),
8.000%, 9/15/18
2,965 New Jersey Economic Development Authority, School Revenue 2/08 at 101.00 N/R 2,979,232
Bonds (Gill/St. Bernard School), Series 1998, 6.000%, 2/01/25
600 New Jersey Educational Facilities Authority, Revenue Bonds, 1/03 at 100.00 A- 602,646
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/04 at 102.00 AAA 1,081,270
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 101.00 AAA 3,695,501
Montclair State University, Series 1996-C (Dormitory/Cafeteria
Facility), 5.400%, 7/01/12
2,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/10 at 100.00 AAA 2,784,600
Princeton University, Series 2000E, 5.500%, 7/01/17
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 502,605
Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32
475 New Jersey Higher Education Assistance Authority, Student 1/03 at 102.00 A+ 485,203
Loan Revenue Bonds, 1992 Series A, New Jersey Class Loan
Program, 6.125%, 7/01/09 (Alternative Minimum Tax)
3,640 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA 3,848,135
Loan Revenue Bonds, Series 1999A, 5.250%, 6/01/18
(Alternative Minimum Tax)
3,000 University of Medicine and Dentistry, New Jersey, Revenue 12/12 at 100.00 AAA 3,064,590
Bonds, Series 2002A, 5.000%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.5%
New Jersey Health Care 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 1,043,978
800 7.000%, 7/01/04 No Opt. Call AAA 865,456
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A3 3,595,095
Bonds, Kennedy Health System, Series 2001, 5.625%, 7/01/31
1,710 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 1,754,238
Bonds, Bayshore Community Hospital, Series 2002 Refunding,
5.000%, 7/01/22
1,130 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A- 1,160,363
Bonds, Atlantic City Medical Center, Series 2002 Refunding,
5.750%, 7/01/25
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 1,536,180
Bonds, South Jersey Hospital, Series 2002, 5.875%, 7/01/21
2,900 New Jersey Health Care Facilities Financing Authority, Revenue 1/10 at 101.00 A2 3,016,609
Bonds, Hackensack University Medical Center Issue, Series 2000,
6.000%, 1/01/34
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA $ 2,295,300
Revenue Bonds, Society of the Valley Obligated Group Issue,
Series 2000, 5.750%, 7/01/15
1,800 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 2,052,486
Bonds, Meridian Health System Obligated Group Issue,
Series 1999, 5.625%, 7/01/12
2,900 Puerto Rico Industrial, Medical, Educational, and Environmental 12/03 at 103.00 A2 2,973,718
Pollution Control Facilities Financing Authority, Adjustable
Rate Industrial Revenue Bonds, 1983 Series A (American Home
Products Corporation), 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.0%
340 Essex County Improvement Authority, New Jersey, Multifamily 11/12 at 100.00 Aaa 339,544
Revenue Bonds, Mount Carmel Towers Project (FNMA
Enhanced), Series 2002, 4.750%, 11/01/22 (Alternative
Minimum Tax)
710 Housing Finance Corporation of the City of Long Branch, 4/03 at 100.00 N/R 713,408
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 5/03 at 101.00 AAA 4,085,000
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 102.00 AAA 3,024,730
Housing Revenue Bonds, 1995 Series A, 6.000%, 11/01/14
7,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 7,260,190
Housing Revenue Bonds, 1997 Series A, 5.550%, 5/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.6%
1,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/05 at 101.50 AAA 1,046,650
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 101.50 AAA 553,187
Revenue Bonds, Series 1996-P, 5.650%, 4/01/14
5,765 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/07 at 101.50 AAA 6,053,827
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 101.50 AAA 2,072,132
1,500 5.850%, 4/01/29 (Alternative Minimum Tax) 10/07 at 101.50 AAA 1,568,130
1,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/08 at 101.50 AAA 1,021,020
Revenue Bonds, 1998 Series X, 5.350%, 4/01/29
(Alternative Minimum Tax)
500 New Jersey Housing and Mortgage Finance Agency, Home Buyer No Opt. Call AAA 535,520
Revenue Bonds, 2000 Series CC, 4.600%, 10/01/09
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 0.5%
1,000 New Jersey Economic Development Authority, Economic No Opt. Call Baa3 996,490
Development Revenue Bonds, Kakpkowski Road Landfill
Project Refunding, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
3,255 New Jersey Economic Development Authority, Morris Hall/ 4/03 at 103.00 A+ 3,368,372
St. Lawrence, Inc. Project, Series 1993A, 6.150%, 4/01/13
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.2%
2,460 Board of Education of Freehold Regional High School District No Opt. Call AAA 2,694,610
in the County of Monmouth, New Jersey, School District
Refunding Bonds, Series 2001, 5.000%, 3/01/17
State of New Jersey, General Obligation Bonds, Series D:
2,760 5.750%, 2/15/06 No Opt. Call AA 3,087,253
4,000 5.800%, 2/15/07 No Opt. Call AA 4,567,800
2,500 6.000%, 2/15/11 No Opt. Call AA 2,945,975
1,560 6.000%, 2/15/13 No Opt. Call AA 1,858,958
4,000 County of Passaic, New Jersey, General Improvement Refunding No Opt. Call AAA 4,534,280
Bonds, Series 1993, 5.125%, 9/01/12
1,800 Township of Woodbridge in the County of Middlesex, New Jersey, 7/09 at 102.00 Aaa 1,933,002
Sewer Utility Bonds, Series 1999, 5.300%, 7/01/20
25
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.8%
$ 1,275 Camden County Improvement Authority, New Jersey, County 10/05 at 102.00 AAA $ 1,412,878
Guaranteed Lease Revenue Bonds, Series of 1995,
5.625%, 10/01/15
1,000 Hudson County Improvement Authority, New Jersey, Utility 1/08 at 101.50 AAA 1,046,460
System Revenue Bonds, Series 1997 (Harrison Franchise
Acquisition Project), 5.350%, 1/01/27
2,250 New Jersey Building Authority, State Building Revenue Bonds, 6/10 at 100.00 AA- 2,350,508
Series 2000A, 5.125%, 6/15/20
2,000 New Jersey Economic Development Authority, Lease Revenue 11/08 at 101.00 Aaa 2,003,160
Bonds, Series 1998 (Bergen County Administration Complex),
4.750%, 11/15/26
1,000 New Jersey Economic Development Authority, Revenue Bonds 8/03 at 102.00 AAA 1,044,340
(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 1,624,845
Facility Senior Lien Revenue Bonds, Series 1994A,
7.000%, 7/01/04
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,344,626
System Bonds, 2001 Series B, 6.000%, 12/15/19
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, 1995 Series A:
385 5.500%, 6/15/12 6/05 at 102.00 AAA 425,002
5,000 5.000%, 6/15/15 6/05 at 102.00 AAA 5,344,550
685 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102.00 AAA 752,507
System Bonds, 1995 Series B, 5.500%, 6/15/15
1,040 Passaic Valley Sewerage Commissioners, New Jersey, Sewer 6/03 at 102.00 AAA 1,064,700
System Bonds, Series D, 5.750%, 12/01/10
510 Board of Education of the Township of Piscataway in the County 6/03 at 102.00 AAA 529,722
of Middlesex, New Jersey, Certificates of Participation,
1993 Series, 5.375%, 12/15/10
8,160 Puerto Rico Public Building Authority, Public Education and 7/03 at 101.50 A- 8,427,893
Health Facilities Refunding Bonds, Series M, Guaranteed by the
Commonwealth of Puerto Rico, 5.750%, 7/01/15
7,500 Puerto Rico Municipal Finance Agency, 1999 Series A, 8/09 at 101.00 AAA 8,292,450
5.500%, 8/01/17
1,000 Stony Brook Regional Sewerage Authority, Princeton, New Jersey, No Opt. Call AA- 1,153,110
Revenue Refunding Bonds, 1993 Series B, 5.450%, 12/01/12
2,250 Western Monmouth Utilities Authority, Monmouth County, 2/05 at 102.00 AAA 2,445,233
New Jersey, Revenue Refunding Bonds, 1995 Series A,
5.600%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 35.5%
5,000 Delaware River Port Authority, States of New Jersey and 1/08 at 101.00 AAA 5,182,050
Pennsylvania, Port District Project Bonds, Series 1998B,
5.000%, 1/01/19
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991 C:
1,340 6.500%, 1/01/08 No Opt. Call A- 1,579,766
2,185 6.500%, 1/01/16 No Opt. Call AAA 2,700,398
3,505 6.500%, 1/01/16 No Opt. Call AAA 4,331,759
8,420 6.500%, 1/01/16 No Opt. Call A- 10,225,669
2,495 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 1/10 at 100.00 AAA 2,665,783
Series 2000A, 5.500%, 1/01/25
3,000 Port Authority of New York and New Jersey, Consolidated Bonds, 10/04 at 101.00 AAA 3,260,370
Ninety Sixth Series, 6.600%, 10/01/23 (Alternative Minimum Tax)
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 101.00 AAA 1,305,864
2,500 5.750%, 11/01/14 (Alternative Minimum Tax) 5/05 at 101.00 AAA 2,701,500
1,500 Port Authority of New York and New Jersey, Consolidated Bonds, 7/06 at 101.00 AA- 1,644,390
One Hundred Sixth Series, 6.000%, 7/01/16 (Alternative
Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Bonds,
One Hundredth Series:
2,500 5.750%, 12/15/20 6/05 at 101.00 AAA 2,617,100
2,000 5.750%, 6/15/30 6/05 at 101.00 AAA 2,151,580
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 2,000 Port Authority of New York and New Jersey, Consolidated Bonds, 6/05 at 101.00 AA- $ 2,069,440
One Hundred Thirteenth Series, 5.250%, 12/01/13 (Alternative
Minimum Tax)
2,000 Port Authority of New York and New Jersey, Consolidated Bonds, 4/12 at 101.00 AAA 2,043,500
One Hundred Twenty Fifth Series, 5.000%, 4/15/32
Port Authority of New York and New Jersey, Special Project
Bonds, Series 6, JFK International Air Terminal LLC Project:
10,000 5.750%, 12/01/22 (Alternative Minimum Tax) 12/07 at 102.00 AAA 10,761,000
11,000 5.750%, 12/01/25 (Alternative Minimum Tax) 12/07 at 100.00 AAA 11,764,390
1,435 South Jersey Transportation Authority, New Jersey, 11/09 at 101.00 AAA 1,495,600
Transportation System Revenue Bonds, 1999 Series,
5.125%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 15.4%
6,220 Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 6,977,098
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 Essex County Utilities Authority, New Jersey, Solid Waste 4/06 at 102.00 AAA 1,138,790
System Revenue Bonds, Secured by a County Deficiency
Agreement, Series 1996A, 5.600%, 4/01/16 (Pre-refunded
to 4/01/06)
685 New Jersey Health Care Facilities Financing Authority, 8/04 at 102.00 Aa2*** 745,951
Refunding Revenue Bonds, Wayne General Hospital Corp.
Issue (FHA-Insured Mortgage), Series B, 5.750%, 8/01/11
(Pre-refunded to 8/01/04)
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/04 at 102.00 AAA 2,185,660
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 101.00 AAA 4,471,040
3,750 5.125%, 7/01/24 (Pre-refunded to 7/01/06) 7/06 at 101.00 AAA 4,194,788
2,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/06 at 101.00 AAA 2,870,275
Rowan College of New Jersey Issue, Series 1996 E,
6.000%, 7/01/21 (Pre-refunded to 7/01/06)
2,000 New Jersey Transit Corporation, Federal Transit Administration 9/09 at 100.00 AAA 2,388,240
Grants, Certificates of Participation, Series 2000A,
6.125%, 9/15/15 (Pre-refunded to 9/15/09)
115 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 128,278
System Bonds, 1995 Series A, 5.500%, 6/15/12
415 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102.00 AAA 462,916
System Bonds, 1995 Series B, 5.500%, 6/15/15 (Pre-refunded
to 6/15/05)
580 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 580,000
1984 Series, 10.375%, 1/01/03
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 100.00 AAA 1,250,722
1,100 5.800%, 9/01/20 (Pre-refunded to 9/01/06) 9/06 at 100.00 AAA 1,250,722
1,100 5.800%, 9/01/21 (Pre-refunded to 9/01/06) 9/06 at 100.00 AAA 1,250,722
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.3%
2,330 Pollution Control Financing Authority of Camden County, 6/03 at 101.00 B2 2,315,018
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991 D, 7.250%, 12/01/10
2,000 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101.50 AAA 2,228,940
Bonds, Series FF, 5.250%, 7/01/13
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.3%
1,000 Jersey City Sewerage Authority, Hudson County, New Jersey, No Opt. Call AAA 1,208,080
Sewer Revenue Refunding Bonds, Series 1993, 6.250%, 1/01/14
3,100 New Jersey Economic Development Authority, Water Facilities 3/04 at 102.00 AAA 3,210,143
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 102.00 AAA 3,323,743
Revenue Bonds (New Jersey-American Water Company),
Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax)
6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,134,035
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
27
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 7,000 North Hudson Sewerage Authority, New Jersey, Sewer Revenue 8/06 at 101.00 AAA $ 7,196,840
Bonds, Series 1996, 5.125%, 8/01/22
3,500 North Hudson Sewerage Authority, New Jersey, Sewer Revenue 8/12 at 100.00 Aaa 3,777,340
Bonds, Series 2002A Refunding, 5.250%, 8/01/19
1,500 Wanaque Valley Regional Sewerage Authority, Passaic County, No Opt. Call AAA 1,756,320
New Jersey, Sewer Revenue Refunding Bonds, 1993 Series B,
5.750%, 9/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 254,735 Total Long-Term Investments (cost $253,708,446) - 142.3% 275,384,017
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.0% 9,737,190
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.3)% (91,600,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $193,521,207
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
28
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 0.3%
$ 250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 $ 249,370
Development Revenue Bonds, Newark Airport Marriott Hotel,
Series 1996 Refunding, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.0%
1,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 A1 964,930
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.6%
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 2,041,700
Rowan University, Series 2001C, 5.000%, 7/01/31
200 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 218,392
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 100.00 AAA 3,913,475
1,600 5.000%, 7/01/26 7/11 at 100.00 AAA 1,635,008
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,077,740
New Jersey Institute of Technology, Series 2001G,
5.250%, 7/01/18
1,565 New Jersey Educational Facilities Authority, Revenue Bonds, 7/10 at 100.00 AAA 1,723,143
Princeton University, Series 2000E, 5.250%, 7/01/16
Puerto Rico Industrial, Educational, Medical, and Environmental
Control Facilities Financing Authority, Higher Education Revenue
Bonds, Series 2001, University of the Sacred Heart Project:
2,000 5.250%, 9/01/21 9/11 at 100.00 BBB 2,052,360
2,000 5.250%, 9/01/31 9/11 at 100.00 BBB 2,024,160
500 Puerto Rico Industrial, Tourist, Educational, Medical, and 12/12 at 101.00 BBB 507,975
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Series 2002, Ana G. Mendez University
System Project Refunding, 5.500%, 12/01/31
1,905 University of Puerto Rico, University System Revenue Bonds, 6/05 at 101.50 AAA 1,954,282
Series M, 5.250%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.0%
1,000 Virgin Islands Government, Refinery Facilities Revenue Bonds, 1/13 at 100.00 BBB- 1,010,980
Hovensa Coker Project, Senior Secure Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 31.3%
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A3 3,595,095
Bonds, Kennedy Health System, Series 2001, 5.625%, 7/01/31
900 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 921,708
Bonds, South Jersey Hospital, Series 2002, 5.875%, 7/01/21
1,100 New Jersey Health Care Facilities Financing Authority, Revenue No Opt. Call AAA 1,238,567
Bonds, Kennedy Health System Obligated Group, Series 1998B,
5.750%, 7/01/06
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 541,060
Bonds, Trinitas Hospital Obligated Group Issue,
Series 2000, 7.500%, 7/01/30
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,000 5.750%, 7/01/25 7/10 at 100.00 A+ 3,200,100
12,000 5.750%, 7/01/31 7/10 at 100.00 A+ 12,753,600
6,000 New Jersey Health Care Facilities Financing Authority, Revenue 1/09 at 101.00 AAA 5,680,320
Bonds, Virtua Health System, Series 1998, 4.500%, 7/01/28
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 A2 2,526,775
Bonds, Burdette Tomlin Memorial Hospital, Series 1999
Refunding, 5.500%, 7/01/29
29
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 0.3%
$ 275 New Jersey Economic Development Authority, District Heating 12/03 at 102.00 BBB- $ 277,203
and Cooling Revenue Bonds (Trigen-Trenton Project),
1993 Series B, 6.100%, 12/01/04 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5%
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 102.00 A+ 1,109,270
335 5.500%, 6/01/31 6/11 at 102.00 A+ 353,328
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.6%
Board of Education of the Township of Hamilton in the County of
Mercer, New Jersey, General Obligation Bonds, Series 2001:
1,850 4.750%, 8/15/18 8/10 at 100.00 AAA 1,912,641
1,630 4.750%, 8/15/19 8/10 at 100.00 AAA 1,675,559
Commonwealth of Puerto Rico, Public Improvement Refunding
Series of 2001, General Obligation Bonds:
3,500 5.250%, 7/01/27 7/11 at 100.00 AAA 3,676,155
10,500 5.125%, 7/01/30 7/11 at 100.00 AAA 10,860,360
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 12.1%
New Jersey Economic Development Authority, School Facilities
Construction Bonds, 2001 Series A:
2,000 5.250%, 6/15/19 6/11 at 100.00 AAA 2,142,980
2,400 5.000%, 6/15/21 6/11 at 100.00 AAA 2,487,840
3,110 New Jersey Transportation Trust Fund Authority, Transportation 6/09 at 100.00 AA- 3,253,806
System Bonds, 1998 Series A, 5.000%, 6/15/17
2,350 Puerto Rico Highway and Transportation Authority, Transportation 7/18 at 100.00 AAA 2,361,539
Revenue Bonds, Series A, 4.750%, 7/01/38
1,500 Virgin Islands Public Finance Authority, Revenue and Refunding 10/08 at 101.00 AA 1,584,795
Bonds (Virgin Islands Matching Fund Loan Notes), Series 1998A
(Senior Lien/Refunding), 5.500%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 22.6%
8,000 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B+ 5,728,720
Revenue Bonds, Continental Airlines Inc. Project, Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
3,000 Port Authority of New York and New Jersey, Consolidated Bonds, 1/07 at 101.00 AAA 3,108,030
One Hundred Ninth Series, 5.375%, 1/15/32
3,500 Port Authority of New York and New Jersey, Consolidated Bonds, 10/07 at 101.00 AAA 3,647,490
One Hundred Twentieth Series, 5.500%, 10/15/35
(Alternative Minimum Tax)
5,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 5,380,500
Bonds, Series 6, JFK International Air Terminal LLC Project,
5.750%, 12/01/22 (Alternative Minimum Tax)
4,000 South Jersey Transportation Authority, New Jersey, 11/09 at 101.00 AAA 4,168,920
Transportation System Revenue Bonds, 1999 Series,
5.125%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.8%
5,215 Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 6,210,544
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
4,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 4,321,400
Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.7%
2,680 Pollution Control Financing Authority of Camden County, 6/03 at 101.00 B2 2,661,294
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 26.5%
$ 4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 AAA $ 4,812,891
Revenue Bonds, New Jersey/American Water Company
Project, Series 1997B, 5.375%, 5/01/32 (Alternative
Minimum Tax)
7,000 New Jersey Economic Development Authority, Water Facilities 2/08 at 102.00 AAA 7,234,080
Revenue Bonds, Middlesex Water Company Project,
Series 1998, 5.350%, 2/01/38 (Alternative Minimum Tax)
5,000 New Jersey Economic Development Authority, Water Facilities 7/08 at 102.00 AAA 5,113,450
Revenue Bonds, New Jersey/American Water Company
Project, Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax)
2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA 2,820,760
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewerage Authority, New Jersey, Sewer Revenue No Opt. Call Aaa 5,865,710
Bonds, Series 2001A Refunding, 0.000%, 8/01/23
------------------------------------------------------------------------------------------------------------------------------------
$ 149,435 Total Long-Term Investments (cost $138,468,487) - 146.3% 142,600,005
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 2,870,872
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.2)% (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $97,470,877
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
31
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ)
Portfolio of
INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 1.8%
$ 1,250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 $ 1,246,850
Development Revenue Bonds, Newark Airport Marriott Hotel,
Series 1996 Refunding, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9%
1,325 Tobacco Settlement Financing Corporation of the Virgin Islands, 5/11 at 100.00 A3 1,265,985
Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.8%
1,000 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 992,130
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
1,090 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AA 1,154,670
Rider University, Refunding Series 2002A, 5.000%, 7/01/17
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,089,040
College of New Jersey Project, Series 2002C, 4.750%, 7/01/19
Puerto Rico Industrial, Tourist, Educational, Medical, and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Series 1999 (Ana G. Mendez University
System Project):
2,000 5.375%, 2/01/19 2/09 at 101.00 BBB 2,056,640
1,000 5.375%, 2/01/29 2/09 at 101.00 BBB 1,004,500
3,000 University of Medicine and Dentistry, New Jersey, Revenue 12/12 at 100.00 AAA 3,064,590
Bonds, Series 2002A, 5.000%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.5%
1,000 Virgin Islands Government, Refinery Facilities Revenue Bonds, 1/13 at 100.00 BBB- 1,010,980
Hovensa Coker Project, Senior Secure Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 26.7%
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/07 at 102.00 BBB- 1,445,100
Bonds, Saint Elizabeth Hospital Obligated Group, Series 1997
Refunding, 6.000%, 7/01/27
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Jersey City Medical Center Issue, FHA-Insured Mortgage,
Series 2001:
1,000 5.000%, 8/01/31 8/11 at 100.00 AAA 1,013,540
1,925 5.000%, 8/01/41 8/11 at 100.00 AAA 1,946,753
1,150 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 1,176,209
Bonds, Bayshore Community Hospital, Series 2002 Refunding,
5.125%, 7/01/32
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 1,018,850
Bonds, Palisades Medical Center of New York, Presbyterian
Healthcare System, Series 2002, 6.625%, 7/01/31
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A- 2,567,175
Bonds, Atlantic City Medical Center, Series 2002 Refunding,
5.750%, 7/01/25
2,460 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 2,519,335
Bonds, South Jersey Hospital, Series 2002, 5.875%, 7/01/21
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 A+ 3,719,800
Bonds, Robert Wood Johnson University Hospital, Series 2000,
5.750%, 7/01/31
510 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 526,096
Bonds, Meridian Health System Obligated Group Issue,
Series 1999, 5.250%, 7/01/29
2,100 Puerto Rico Industrial, Medical, Educational, and Environmental 12/03 at 103.00 A2 2,153,382
Pollution Control Facilities Financing Authority, Adjustable Rate
Industrial Revenue Bonds, 1983 Series A (American Home
Products Corporation), 5.100%, 12/01/18
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.5%
$ 2,250 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA $ 2,335,455
Housing Revenue Bonds, 1997 Series A, 5.650%, 5/01/40
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 4.0%
2,700 New Jersey Economic Development Authority, Economic No Opt. Call Baa3 2,690,523
Development Revenue Bonds, Kakpkowski Road Landfill
Project Refunding, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.8%
New Jersey Economic Development Authority, Economic
Development Revenue Bonds, Masonic Charity Foundation
Project, Series 2001:
1,000 5.500%, 6/01/21 6/11 at 102.00 A+ 1,070,790
4,000 5.500%, 6/01/31 6/11 at 102.00 A+ 4,218,840
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 7.7%
3,000 Township of Jackson, County of Ocean, New Jersey, General 4/12 at 100.00 AAA 3,118,440
Obligation Bonds, Series 2002, 5.000%, 4/15/21
1,000 Old Bridge Township Board of Education, Middlesex County, 7/11 at 100.00 AAA 1,022,650
New Jersey, General Obligation Bonds, Series 2002,
5.000%, 7/15/30
1,000 Commonwealth of Puerto Rico, Public Improvement Series of 2001, 7/11 at 100.00 AAA 1,042,160
General Obligation Bonds, 5.125%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.5%
3,000 Brick Township Municipal Utilities Authority, Ocean County, 12/12 at 100.00 Aaa 3,083,760
New Jersey, Revenue Bonds, Series 2002, 5.000%, 12/01/25
680 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 706,092
System Bonds, 2001 Series B, 5.000%, 12/15/21
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,083,140
Appropriation Bonds, 1998 Series A, 5.125%, 6/01/24
4,000 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 4,226,640
Appropriation Bonds, 2002 Series E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 40.5%
2,000 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B+ 1,432,180
Revenue Bonds, Continental Airlines Inc. Project, Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
3,105 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call A- 3,770,867
Series 1991 C, 6.500%, 1/01/16
2,000 Port Authority of New York and New Jersey, Special Project Bonds, 6/03 at 101.00 BB 1,959,480
Series 1R, Delta Air Lines, Inc. Project, LaGuardia Airport
Passenger Terminal, 6.950%, 6/01/08
4,000 Port Authority of New York and New Jersey, Consolidated Bonds, 6/14 at 100.00 AAA 4,084,440
One Hundred Twenty Seventh Series, 5.125%, 6/15/37
(Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Bonds,
One Hundred Twenty Fifth Series:
3,000 5.000%, 10/15/26 4/12 at 101.00 AAA 3,076,620
7,000 5.000%, 4/15/32 4/12 at 101.00 AAA 7,152,250
1,000 Port Authority of New York and New Jersey, Consolidated Bonds, 10/07 at 101.00 AAA 1,022,940
One Hundred Twenty First Series, 5.125%, 10/15/30
4,000 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 4,932,840
Bonds, Series 6, JFK International Air Terminal LLC Project,
7.000%, 12/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 9.3%
3,000 Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 3,572,700
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded
to 7/01/10)
2,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 2,700,875
Bonds, 2000 Series A, 5.500%, 10/01/40
33
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.9%
$ 1,220 Pollution Control Financing Authority of Camden County, 6/03 at 101.00 B2 $ 1,211,483
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,500 Guam Power Authority, Revenue Bonds, 1999 Series A, 10/09 at 101.00 AAA 2,598,300
5.250%, 10/01/34
2,500 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 2,469,474
Revenue Refunding Bonds, PSEG Power LLC Project,
Series 2001A, 5.000%, 3/01/12
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,129,480
2002 Series II, 5.125%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
$ 96,765 Total Long-Term Investments (cost $97,107,503) - 148.9% 100,684,044
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,448,360
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (34,500,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $67,632,404
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
34
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.8%
$ 5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 $ 4,547,050
Exempt Facilities Revenue Bonds, Amtrak Project, Series 2001A,
6.375%, 11/01/41 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.5%
13,300 Pennsylvania Economic Development Financing Authority, Solid No Opt. Call AA- 13,852,748
Waste Disposal Revenue Bonds, Procter & Gamble Paper
Project, Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.8%
10,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 10,234,300
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 1,964,260
Pennsylvania, College Revenue Bonds, Chatham College,
Series A of 1998, 5.250%, 9/01/18
2,000 Chester County Industrial Development Authority, Pennsylvania, 1/12 at 100.00 AAA 2,037,000
Educational Facilities Revenue Bonds, The Westtown School
Project, Series 2002, 5.000%, 1/01/26
3,000 Delaware County Authority, Pennsylvania, Haverford College 11/10 at 101.00 AA 3,282,900
Revenue Bonds, Series of 2000, 5.750%, 11/15/29
1,000 General Municipal Authority of the Borough of Harveys Lake, 11/09 at 100.00 A 1,059,280
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 100.00 AAA 1,564,086
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 466,799
815 11/01/16 No Opt. Call AAA 440,361
815 0.000%, 11/01/17 No Opt. Call AAA 415,128
815 0.000%, 11/01/18 No Opt. Call AAA 390,581
815 0.000%, 11/01/19 No Opt. Call AAA 366,766
2,750 Northeastern Pennsylvania Hospital and Education Authority, 10/08 at 100.00 AAA 2,729,210
Luzerne County, Pennsylvania, School Revenue Bonds (Wyoming
Seminary Project), Series of 1998, 4.750%, 10/01/28
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 Aaa 8,104,960
Acquisition Revenue Bonds, Series 2001 Refunding,
5.000%, 12/15/30
1,000 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,012,170
Thomas Jefferson University Revenue Bonds, Series 2002,
5.000%, 1/01/20
5,000 Pennsylvania Higher Educational Facilities Authority, Moravian 7/11 at 100.00 AA 5,182,850
College Revenue Bonds, Series 2001, 5.375%, 7/01/31
8,445 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/08 at 100.00 AA+ 8,544,229
College Revenue Bonds, Series of 1998, 5.000%, 9/15/28
1,665 Union County Higher Educational Facilities Financing Authority, 4/13 at 100.00 Aa3 1,818,713
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/18
275 General Municipal Authority of the City of Wilkes-Barre, 6/03 at 102.00 N/R 281,146
Pennsylvania, College Misericordia Revenue Bonds,
Refunding Series B of 1992, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 6.1%
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,209,853
Hamot Health Foundation, Series 2002, 5.250%, 11/01/15
1,600 Geisinger Authority, Montour County, Pennsylvania, Health System 8/08 at 101.00 Aa2 1,584,624
Revenue Bonds, Series A of 1998, Penn State Geisinger
Health System, 5.000%, 8/15/28
35
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 9,500 Pennsylvania Higher Educational Facilities Authority, UPMC 1/11 at 101.00 A+ $ 9,858,435
Health System Revenue Bonds, Series 2001A, 6.000%, 1/15/31
1,000 Hospitals and Higher Education Facilities Authority of 11/03 at 102.00 BBB 1,006,290
Philadelphia, Pennsylvania, Hospital Revenue Bonds,
Temple University Hospital, Series A of 1993, 6.625%, 11/15/23
1,615 Sayre Health Care Facilities Authority, Pennsylvania, Revenue 7/12 at 100.00 AAA 1,772,592
Bonds, Latrobe Area Hospital, Series 2002A, 5.250%, 7/01/13
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.4%
960 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 2/03 at 101.00 A2 974,112
Redevelopment Mortgage Revenue Bonds, 1992 Series C,
7.125%, 8/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.7%
5,645 Allegheny County Residential Finance Authority, Pennsylvania, No Opt. Call Aaa 1,111,783
Single Family Mortgage Revenue Bonds, 1994 Series Z,
0.000%, 5/01/27 (Alternative Minimum Tax)
715 Redevelopment Authority of the County of Berks, Pennsylvania, No Opt. Call A+ 774,173
Senior Single Family Mortgage Revenue Bonds, 1986 Series A,
8.000%, 12/01/17 (Alternative Minimum Tax)
2,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/05 at 102.00 AA+ 2,094,940
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 102.00 AA+ 1,042,040
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 102.00 AA+ 6,023,272
Revenue Bonds, Series 1996-49, 6.450%, 4/01/25 (Alternative
Minimum Tax)
220 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102.00 AA+ 231,436
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 102.00 AA+ 5,235,700
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 101.50 AA+ 5,230,850
Revenue Bonds, Series 1997-59A, 5.750%, 10/01/23
(Alternative Minimum Tax)
2,215 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 10/11 at 100.00 AAA 2,271,195
Mortgage Revenue Bonds, 2001 Series B, 5.450%, 10/01/32
(Alternative Minimum Tax)
1,385 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/06 at 102.00 AAA 1,440,788
Mortgage Revenue Bonds, 1996 Series C, 6.550%, 4/01/28
(Alternative Minimum Tax)
1,055 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/07 at 102.00 AAA 1,114,449
Mortgage Revenue Bonds, 1997 Series A, 6.250%, 10/01/28
1 (Alternative Minimum Tax)
2,865 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/03 at 101.00 AAA 2,891,816
Mortgage Revenue Bonds, 1991 Series G, 7.050%, 4/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 2.3%
5,000 Pennsylvania Industrial Development Authority, Economic No Opt. Call AAA 5,752,150
Development Revenue Bonds, Series 2002, 5.500%, 7/01/12
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.5%
1,500 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 AA 1,474,260
Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/26 (WI, settling 1/23/03)
3,225 Montgomery County Higher Education and Health Authority, 1/06 at 101.00 BBB 3,156,533
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 101.00 AAA 1,565,760
Revenue Bonds, Philadelphia Corporation for the Aging Project,
Series 2001B, 5.250%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 30.9%
3,550 County of Allegheny, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 3,706,768
Series 52, 5.250%, 11/01/23
3,120 County of Allegheny, Pennsylvania, General Obligation Refunding 5/11 at 100.00 AAA 3,315,468
Bonds, Series C-53, 5.250%, 11/01/20
2,000 Canon-McMillan School District, Washington County, No Opt. Call AAA 617,300
Pennsylvania, General Obligation Bonds, Series 2001A,
0.000%, 12/01/25
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Carlisle Area School District, Cumberland County, Pennsylvania,
General Obligation Bonds, Series 2002:
$ 1,665 4.750%, 3/01/20 3/12 at 100.00 Aaa $ 1,699,016
5,760 5.000%, 3/01/22 3/12 at 100.00 Aaa 5,932,570
2,000 Claysburg Kimmel School District, Blair County, Pennsylvania, 1/09 at 100.00 AAA 2,021,240
General Obligation Bonds, Series 2002 Refunding,
5.000%, 1/15/31
4,600 Garnet Valley School District, Delaware County, Pennsylvania, 8/11 at 100.00 Aaa 4,681,972
General Obligation Bonds, Series 2001A, 5.000%, 2/15/25
2,750 Redevelopment Authority of the City of Harrisburg, Dauphin 5/16 at 68.04 AAA 836,028
County, Pennsylvania, Guaranteed Revenue Bonds, Series B
of 1998, 0.000%, 5/01/24
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,861,022
Pennsylvania, General Obligation Bonds, Series 2002,
5.375%, 2/15/18
Mckeesport Area School District, Allegheny County, Pennsylvania,
General Obligation Bonds, Series of 1999C:
3,430 0.000%, 10/01/23 No Opt. Call AAA 1,199,025
3,380 0.000%, 10/01/24 No Opt. Call AAA 1,113,710
3,420 0.000%, 10/01/25 No Opt. Call AAA 1,066,082
2,340 0.000%, 10/01/26 No Opt. Call AAA 691,376
2,340 0.000%, 10/01/27 No Opt. Call AAA 655,036
2,340 0.000%, 10/01/29 No Opt. Call AAA 588,089
7,500 County of Montgomery, Pennsylvania, General Obligation Bonds, 7/09 at 100.00 Aaa 7,652,775
Series 1999, 5.000%, 7/15/24
1,000 Commonwealth of Pennsylvania, General Obligation Bonds, 9/11 at 101.00 AA 1,084,930
Second Series of 2001, 5.000%, 9/15/15
1,700 City of Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100.00 AAA 1,723,290
Series 2000, 5.000%, 9/15/31
3,400 School District of Philadelphia, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,791,680
Bonds, Series 2002B, 5.625%, 8/01/18
15,000 School District of Philadelphia, Pennsylvania, General Obligation 9/05 at 101.00 AAA 15,610,800
Bonds, Series B of 1995, 5.500%, 9/01/25
3,000 School District of Pittsburgh, Allegheny County, Pennsylvania, No Opt. Call AAA 3,461,400
General Obligation Bonds, Series 2002A Refunding,
5.500%, 9/01/15
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 6,339,181
General Obligation Bonds, Series 2001, 5.250%, 9/15/30
1,590 Red Lion Area School District, York County, Pennsylvania, 10/11 at 100.00 Aaa 1,658,227
General Obligation Bonds, Series 2001, 5.000%, 4/15/20
1,465 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,551,098
General Obligation Bonds, Series 2001A, 5.000%, 4/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.1%
5,000 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 5,073,500
Pennsylvania, Revenue Bonds, Guaranteed County Building
Project, Series 2002A, 5.000%, 11/01/22 (DD, settling 1/02/03)
2,900 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 2,939,179
Pennsylvania, Guaranteed Revenue Bonds, Series 2002B,
Allegheny County Office Building Project, 5.000%, 11/01/29
5,750 Port Authority of Allegheny County, Pennsylvania, Special 3/11 at 101.00 AAA 5,844,760
Transportation Revenue Bonds, Series 2001, 5.000%, 3/01/29
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call Aa2 6,956,160
Government Revenue Bonds, Series 2002, 5.750%, 7/01/17
8,725 Pennsylvania Intergovernmental Cooperation Authority, Special 6/09 at 100.00 AAA 8,731,980
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 100.00 AAA 3,501,820
Revenue Bonds, Series A of 1998, 4.750%, 12/01/27
4,650 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 4,700,778
Bonds, Series of 2001, 5.000%, 7/15/41
10,935 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 11,387,272
Lease Revenue Bonds, Series 2001B, 5.250%, 10/01/30
37
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 5,000 Public Auditorium Authority of Pittsburgh and Allegheny 8/09 at 101.00 AAA $ 5,070,650
County, Pennsylvania, Regional Asset District Sales Tax
Revenue Bonds, Series of 1999, 5.000%, 2/01/29
1,090 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 5/09 at 100.00 A2 1,171,750
Tax Increment Bonds (Center Triangle Tax Increment Financing
District - PNC Bank Corp. Project), Series A of 1999, 6.100%, 5/01/19
10,250 Southeastern Pennsylvania Transportation Authority, Special 3/09 at 101.00 AAA 10,165,950
Revenue Bonds, Series A of 1999, 4.750%, 3/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.4%
2,000 Lehigh-Northampton Airport Authority, Pennsylvania, Lehigh 5/10 at 100.00 Aaa 2,155,780
Valley Airport System, Airport Revenue Bonds, Series 2000A,
6.000%, 5/15/30 (Alternative Minimum Tax)
5,400 Pennsylvania Economic Development Authority, Revenue Bonds, 6/12 at 102.00 A 5,419,386
30th Street Station Garage Project, Series 2002,
5.800%, 6/01/23 (WI, settling 1/07/03)
2,500 Pennsylvania Turnpike Commission, Pennsylvania, Turnpike 12/11 at 101.00 AAA 2,543,075
Revenue Bonds, 2001 Series R, 5.000%, 12/01/30
5,000 City of Philadelphia, Pennsylvania, Airport Revenue Bonds, 6/11 at 101.00 AAA 5,076,200
Philadelphia Airport System, Series 2001B, 5.250%, 6/15/31
(Alternative Minimum Tax)
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 101.00 AAA 7,326,338
3,085 5.125%, 7/01/28 (Alternative Minimum Tax) 7/08 at 101.00 AAA 3,101,412
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,367,650
Revenue Bonds, Series of 1999, 5.250%, 9/01/29
1,885 Pittsburgh Public Parking Authority, Pennsylvania, Parking System No Opt. Call AAA 2,103,396
Revenue Bonds, Series 2002 Refunding, 5.000%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.9%
1,355 Bensalem Township School District, Bucks County, Pennsylvania, 7/06 at 100.00 AAA 1,537,776
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 100.00 AAA 2,200,640
Pennsylvania, General Obligation Bonds, Series of 1995,
6.750%, 11/15/21 (Pre-refunded to 11/15/04)
1,980 Pittsburgh Water and Sewer Authority, Pennsylvania, Water No Opt. Call AAA 2,121,946
and Sewer System Revenue Refunding Bonds, Series of 1986,
7.625%, 9/01/04
2,000 Sto-Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,362,500
General Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded to 12/15/10)
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA 3,895,140
Pennsylvania, Water and Sewer Revenue Bonds,
Series of 1991, 7.100%, 12/01/21 (Pre-refunded to 11/15/15)
5,450 Municipal Authority of the Borough of West View, Allegheny No Opt. Call AAA 7,799,713
County, Pennsylvania, Special Obligation Bonds, Series of
1985A, 9.500%, 11/15/14
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.5%
1,250 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 1,286,788
Pollution Control Revenue Refunding Bonds, Duquesne Light
Company Project, Series 1999A, 4.350%, 12/01/13
2,900 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 3,052,859
Resource Recovery Revenue Refunding Bonds (Panther Creek
Partners Project), 2000 Series, 6.650%, 5/01/10 (Alternative
Minimum Tax)
4,000 Lehigh County Industrial Development Authority, Pennsylvania, 8/05 at 102.00 AAA 4,481,200
Pollution Control Revenue Refunding Bonds (Pennsylvania Power
and Light Company Project), 1995 Series A, 6.150%, 8/01/29
3,500 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,942,085
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.250%, 11/01/13
3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 3,580,379
Pollution Control Revenue Refunding Bonds, PSEG Power
Project, Series 2001A, 5.500%, 9/01/20
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 18.9%
$ 5,000 Delaware County Industrial Development Authority, Pennsylvania, 10/12 at 100.00 AAA $ 5,148,100
Water Facilities Revenue Bonds, Philadelphia Water Company
Project, Series 2001, 5.350%, 10/01/31 (Alternative Minimum Tax)
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewer Revenue Bonds, Series 2001A:
5,325 5.100%, 5/01/20 11/11 at 100.00 AAA 5,595,084
1,465 5.100%, 5/01/21 11/11 at 100.00 AAA 1,528,405
Erie City Water Authority, Erie County, Pennsylvania, Water
Revenue Bonds, Series 2001A:
2,670 0.000%, 12/01/23 No Opt. Call AAA 923,606
5,000 5.200%, 12/01/30 12/11 at 100.00 AAA 5,161,800
3,000 Luzerne County Industrial Development Authority, Pennsylvania, 4/03 at 102.00 A3 3,066,630
Exempt Facilities 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, Pennsylvania, 6/03 at 102.00 A3 3,627,709
Exempt Facilities 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, Pennsylvania, 12/04 at 102.00 AAA 5,590,800
Exempt Facilities Revenue Refunding Bonds (Pennsylvania Gas
and Water Company Project), 1994 Series A,
7.000%, 12/01/17 (Alternative Minimum Tax)
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 2001A:
5,525 5.375%, 11/01/20 11/12 at 100.00 AAA 5,985,344
10,750 5.000%, 11/01/31 11/12 at 100.00 AAA 10,920,496
------------------------------------------------------------------------------------------------------------------------------------
$ 391,180 Total Long-Term Investments (cost $362,150,183) - 152.8% 384,415,707
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.3)% (813,825)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.5)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $251,601,882
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
39
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 0.2%
$ 500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB $ 507,495
Environmental Improvement Revenue Refunding Bonds,
2000 Series B, 6.000%, 9/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.5%
2,000 New Morgan Industrial Development Authority, Pennsylvania, 4/04 at 102.00 BB- 1,775,420
Solid Waste Disposal Revenue Bonds (New Morgan Landfill
Company, Inc. Project), Series 1994, 6.500%, 4/01/19
(Alternative Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A3 1,812,660
Facilities Revenue Bonds, Amtrak Project, Series 2001A,
6.250%, 11/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 1.6%
4,500 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 3,952,935
Exempt Facilities Revenue Bonds, National Gypsum Project,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.0%
1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A 1,046,327
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 102.00 BBB- 3,006,270
Pennsylvania, College Revenue Bonds (Immaculata College),
Series of 1998, 5.625%, 10/15/27
1,350 Lancaster Higher Education Authority, Pennsylvania, College 4/03 at 100.00 AAA 1,366,929
Revenue Bonds (Franklin and Marshall College Project), Series
of 1993, 5.700%, 4/15/13
10,000 Pennsylvania Higher Education Assistance Agency, Student Loan 7/03 at 102.00 AAA 10,321,500
Revenue Bonds, 1988 Series D, 6.050%, 1/01/19 (Alternative
Minimum Tax)
1,000 Pennsylvania Higher Educational Facilities Authority, LaSalle 5/08 at 101.00 Aaa 1,035,020
University Revenue Bonds, Series 1998, 5.250%, 5/01/23
2,100 Pennsylvania Higher Educational Facilities Authority, Philadelphia 6/10 at 100.00 AA 2,271,234
University Revenue Bonds, Series 2000, 6.000%, 6/01/29
4,615 Pennsylvania Higher Educational Facilities Authority, Widener 7/03 at 102.00 AAA 4,799,462
University Revenue Bonds, Series 1993A, 5.250%, 7/15/11
1,500 Pennsylvania Higher Educational Facilities Authority, Temple 7/11 at 101.00 AAA 1,523,295
University Revenue Bonds, Series 2001, 5.000%, 7/15/31
5,750 Pennsylvania Higher Educational Facilities Authority, Thomas 1/13 at 100.00 A1 5,667,718
Jefferson University Revenue Bonds, Series 2002,
5.000%, 1/01/32
3,340 State Public School Building Authority, Pennsylvania, College 3/03 at 100.00 AAA 3,369,492
Revenue Bonds (Northampton County Area Community
College Project), Series U of 1993, 5.850%, 3/15/15
750 Union County Higher Educational Facilities Financing Authority, 4/13 at 100.00 Aa3 812,715
Pennsylvania, Revenue Bonds (Bucknell University), Series 2002A,
5.250%, 4/01/19
2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ 2,595,850
College Revenue Bonds (Elizabethtown College Project),
Series 2001, 5.900%, 12/15/18
700 General Municipal Authority of the City of Wilkes-Barre, 6/03 at 102.00 N/R 715,645
Pennsylvania, College Misericordia Revenue Bonds, Refunding
Series B of 1992, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.6%
8,500 Allegheny County Hospital Development Authority, Pennsylvania, 5/06 at 102.00 AAA 9,092,875
Hospital Revenue Bonds, Series A of 1996 (South Hills Health
System), 5.875%, 5/01/26
14,000 Allegheny County Hospital Development Authority, Pennsylvania, 4/07 at 102.00 AAA 14,693,980
Health Center Revenue Bonds, Series 1997A (University of
Pittsburgh Medical Center System), 5.625%, 4/01/27
1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,324,353
Hamot Health Foundation, Series 2002, 5.250%, 11/01/16
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB+ $ 4,934,950
Revenue Bonds, Good Samaritan Hospital Project, Series 2002,
5.900%, 11/15/28 (DD, settling 1/02/03)
7,900 Montgomery County Higher Education and Health Authority, 1/09 at 101.00 AAA 7,964,780
Pennsylvania, Hospital Revenue Bonds, Series 1998,
Pottstown Healthcare Corporation, 5.000%, 1/01/27
485 Montgomery County Higher Education and Health Authority, 6/03 at 102.00 AAA 500,632
Pennsylvania, Hospital Revenue Bonds, Series A of 1993,
Abington Memorial Hospital, 6.000%, 6/01/22
4,700 Pennsylvania Higher Educational Facilities Authority, University 1/06 at 101.00 A 4,751,794
of Pennsylvania Health Services Revenue Bonds, Series A
of 1996, 5.750%, 1/01/22
City of Pottsville Hospital Authority, Pennsylvania, Hospital
Revenue Bonds (Pottsville Hospital and Warne Clinic), Series of
1998:
2,000 5.500%, 7/01/18 7/08 at 100.00 BBB- 1,769,880
2,000 5.625%, 7/01/24 7/08 at 100.00 BBB- 1,727,600
Sayre Health Care Facilities Authority, Pennsylvania, Revenue
Bonds, Latrobe Area Hospital, Series 2002A:
1,700 5.250%, 7/01/14 7/12 at 100.00 AAA 1,854,649
1,200 5.250%, 7/01/15 7/12 at 100.00 AAA 1,299,336
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.3%
4,345 Bucks County Redevelopment Authority, Pennsylvania, Second 8/03 at 100.00 Baa2 4,298,813
Lien Multifamily Mortgage Revenue Bonds, Section 8 Assisted
(Country Commons Apartments), Series 1993A, 6.200%, 8/01/14
(Alternative Minimum Tax)
2,000 Delaware County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 2,083,700
Multifamily Housing Revenue Bonds, Darby Townhouses
Project, Series 2002A, 5.500%, 4/01/32 (Alternative Minimum Tax)
(Mandatory put 4/01/22)
1,595 Luzerne County Housing Corporation, Pennsylvania, Mortgage 9/03 at 100.00 Aaa 1,602,225
Revenue Refunding Bonds, Series 1993 (FHA-Insured
Mortgage Loan - Section 8 Assisted, Freeland Apartments
Project), 6.125%, 7/15/23
2,345 Swissvale Housing Development Corporation (An Instrumentality 7/03 at 100.00 Aa2 2,353,677
of the Allegheny County Housing Authority), Pennsylvania,
Multifamily Mortgage Revenue Refunding Bonds, Series
1993C (FHA-Insured Mortgage Loan, Section 8 Assisted -
Swissvale Project), 6.100%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.7%
1,330 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa 1,397,378
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 102.00 AA+ 2,046,140
Revenue Bonds, Series 37A, 5.450%, 10/01/17
1,120 Pennsylvania Housing Finance Agency, Single Family Mortgage No Opt. Call AA+ 1,255,587
Revenue Bonds, Series 1996-47, 6.750%, 10/01/06 (Alternative
Minimum Tax)
2,815 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102.00 AA+ 2,949,867
Revenue Bonds, Series 1996-51, 6.375%, 4/01/28 (Alternative
Minimum Tax)
2,170 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/06 at 102.00 AA+ 2,286,572
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 102.00 AA+ 1,586,190
4,000 6.150%, 10/01/27 (Alternative Minimum Tax) 4/07 at 102.00 AA+ 4,204,080
1,585 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/07 at 101.50 AA+ 1,644,342
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 101.50 AA+ 1,737,992
Revenue Bonds, Series 1997-59A, 5.700%, 4/01/17 (Alternative
Minimum Tax)
1,190 Pennsylvania Housing Finance Agency, Single Family Mortgage 6/08 at 101.50 AA+ 1,231,567
Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22 (Alternative
Minimum Tax)
1,500 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/06 at 102.00 AAA 1,563,270
Mortgage Revenue Bonds, 1996 Series C, 6.500%, 10/01/23
(Alternative Minimum Tax)
41
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
Urban Redevelopment Authority of Pittsburgh, Pennsylvania,
Mortgage Revenue Bonds, 1997 Series A:
$ 845 6.150%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102.00 AAA $ 896,756
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102.00 AAA 811,726
1,375 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/03 at 102.00 AAA 1,408,124
Mortgage Revenue Bonds, 1992 Series D, 6.500%, 4/01/17
2,460 Urban Redevelopment Authority of Pittsburgh, Pennsylvania, 4/03 at 102.00 AAA 2,516,998
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 102.00 AAA 639,791
Mortgage Revenue Bonds, 1994 Series B, 6.950%, 10/01/10
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 3.5%
Pennsylvania Industrial Development Authority, Economic
Development Revenue Bonds, Series 1994:
2,000 7.000%, 7/01/06 No Opt. Call AAA 2,336,040
1,550 7.000%, 1/01/07 No Opt. Call AAA 1,829,155
1,000 7.000%, 7/01/07 No Opt. Call AAA 1,193,930
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,074,885
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.4%
1,000 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 AA 1,001,900
Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/22 (WI, settling 1/23/03)
1,230 Pennsylvania Economic Development Financing Authority, 6/08 at 100.00 BB+ 956,227
Revenue 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 2/03 at 100.00 AA 1,001,230
2,000 5.900%, 12/01/30 12/10 at 100.00 AA 2,134,300
Philadelphia Authority for Industrial Development, Pennsylvania,
Healthcare Facilities Revenue Bonds, Paul's Run, Series 1998A:
1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,261,076
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,503,497
2,700 Philadelphia Hospital and Higher Educational Facilities Authority, 8/03 at 102.00 BBB+ 2,791,098
Pennsylvania, Revenue Refunding Bonds, Philadelphia MR
Project, Series 1992, 5.625%, 8/01/04
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.3%
2,000 Centre County, Pennsylvania, General Obligation Bonds, 7/13 at 100.00 Aaa 2,017,520
Series 2003, 4.500%, 7/01/19 (WI, settling 1/08/03)
Chichester School District, Delaware County, Pennsylvania,
General Obligation Bonds, Series of 1999:
3,125 0.000%, 3/01/23 No Opt. Call AAA 1,102,188
3,125 0.000%, 3/01/24 No Opt. Call AAA 1,038,063
3,125 0.000%, 3/01/25 No Opt. Call AAA 979,031
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 75.56 AAA 609,000
2,750 0.000%, 11/01/22 5/16 at 73.64 AAA 931,233
2,750 0.000%, 5/01/23 5/16 at 71.71 AAA 890,670
2,750 0.000%, 11/01/23 5/16 at 69.88 AAA 866,333
1,500 Lancaster County, Pennsylvania, General Obligation Bonds, 11/12 at 100.00 Aaa 1,530,120
Series 2002A, 4.700%, 11/01/20
4,305 County of Montgomery, Pennsylvania, General Obligation Bonds, 10/06 at 100.00 Aaa 4,450,466
Series B of 1996, 5.375%, 10/15/21
2,000 School District of Philadelphia, Pennsylvania, General Obligation No Opt. Call AAA 2,384,940
Refunding Bonds, Series A of 1995, 6.250%, 9/01/09
1,700 Pine-Richland School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 1,726,775
General Obligation Refunding Bonds, Series of 2001,
5.000%, 9/01/29
1,535 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,614,390
General Obligation Bonds, Series 2001A, 5.000%, 4/01/19
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.0%
$ 4,060 Delaware Valley Regional Finance Authority, Pennsylvania, Local 4/06 at 100.00 AAA $ 4,514,639
Government Revenue Bonds, Series 1996A, 6.000%, 4/15/26
9,000 Public Auditorium Authority of Pittsburgh and Allegheny 8/09 at 101.00 AAA 8,581,050
County, Pennsylvania, Hotel Room Excise Tax Revenue Bonds,
Series of 1999, 4.500%, 2/01/29
11,225 Southeastern Pennsylvania Transportation Authority, Special 3/09 at 101.00 AAA 11,132,955
Revenue Bonds, Series A of 1999, 4.750%, 3/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.4%
2,300 County of Allegheny, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,390,436
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Alternative Minimum Tax)
4,600 Pennsylvania Economic Development Authority, Revenue Bonds, 6/12 at 102.00 A 4,583,578
30th Street Station Garage Project, Series 2002,
5.875%, 6/01/33 (WI, settling 1/07/03)
3,575 Pennsylvania Turnpike Commission, Pennsylvania, Turnpike 12/11 at 101.00 AAA 3,636,597
Revenue Bonds, 2001 Series R, 5.000%, 12/01/30
10,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 10,179,700
Airport Revenue Bonds, Philadelphia Airport System Project,
Series 2001A, 5.250%, 7/01/28 (Alternative Minimum Tax)
6,525 Sports and Exhibition Authority of Pittsburgh and Allegheny 12/06 at 100.00 Aaa 6,667,571
County, Pennsylvania, Parking Revenue Bonds, Series A
of 2001, 5.350%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.4%
2,000 Bangor Area School District, Northampton County, Pennsylvania, 3/06 at 100.00 AAA 2,231,020
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 100.00 AAA 2,839,375
General Obligation Bonds, Series of 1996, 5.875%, 7/15/16
(Pre-refunded to 7/15/06)
2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AAA 2,463,172
Series 2000, 5.625%, 11/15/28 (Pre-refunded to 11/15/10)
17,895 Harrisburg Authority, Dauphin County, Pennsylvania, Tax-Exempt 9/07 at 100.00 AAA 20,536,123
Revenue Bonds (City of Harrisburg Project), Series II of 1997,
5.625%, 9/15/22 (Pre-refunded to 9/15/07)
1,500 Ligonier Valley School District, Westmoreland County, Pennsylvania, 3/04 at 100.00 AAA 1,583,355
General Obligation Bonds, Series of 1994, 6.000%, 3/01/23
(Pre-refunded to 3/01/04)
2,015 Montgomery County Higher Education and Health Authority, 6/03 at 102.00 AAA 2,095,540
Pennsylvania, Hospital Revenue Bonds, Abington Memorial
Hospital, Series A of 1993, 6.000%, 6/01/22 (Pre-refunded
to 6/01/03)
2,165 Montgomery County Industrial Development Authority, 6/03 at 102.00 N/R*** 2,255,497
Pennsylvania, Health Facilities Revenue Bonds, Emergency
Care Research Institute, Series of 1993, 6.850%, 6/01/13
(Pre-refunded to 6/01/03)
1,445 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,821,177
Revenue Bonds, Ninth Series, 7.625%, 7/01/15
1,005 Hospitals and Higher Education Facilities Authority of 5/04 at 102.00 AAA 1,089,269
Philadelphia, Pennsylvania, Community College Revenue
Bonds, Community College of Philadelphia, Series of 1994,
6.100%, 5/01/10 (Pre-refunded to 5/01/04)
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1993:
1,160 5.750%, 6/15/13 (Pre-refunded to 6/15/03) 6/03 at 102.00 AAA 1,207,224
1,135 5.500%, 6/15/14 (Pre-refunded to 6/15/03) 6/03 at 102.00 AAA 1,179,912
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 102.00 AAA 1,201,290
3,690 6.650%, 12/01/19 12/03 at 102.00 AAA 4,655,267
1,750 Pine-Richland School District, Allegheny County, Pennsylvania, 9/03 at 100.00 AAA 1,807,383
General Obligation Bonds, Series A of 1993, 6.100%, 9/01/18
(Pre-refunded to 9/01/03)
2,500 Schuylkill Valley School District, Berks County, Pennsylvania, 4/03 at 100.00 AAA 2,533,800
General Obligation Bonds, Series of 1993, 5.850%, 4/15/13
(Pre-refunded to 4/15/03)
1,650 Municipal Authority of the Borough of West View, Allegheny No Opt. Call AAA 2,361,381
County, Pennsylvania, Special Obligation Bonds, Series of 1985A,
9.500%, 11/15/14
43
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 18.7%
$ 1,125 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call AAA $ 1,158,109
Pollution Control Revenue Refunding Bonds, Duquesne Light
Company Project, Series 1999A, 4.350%, 12/01/13
8,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102.00 AAA 8,213,520
Exempt Facilities Revenue Bonds, Shippingport Project,
1998 Series A, 5.375%, 6/01/28 (Alternative Minimum Tax)
3,935 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 4,142,414
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 102.00 AAA 8,260,880
Pollution Control Revenue Bonds, Metropolitan Edison
Company Project, 1997 Series A, 5.950%, 5/01/27 (Alternative
Minimum Tax)
2,000 Indiana County Industrial Development Authority, Pennsylvania, 6/12 at 101.00 Baa1 1,924,300
Pollution Control Revenue Refunding Bonds, PSEG Power LLC
Project, Series 2001A, 5.850%, 6/01/27 (Alternative
Minimum Tax)
13,500 Lehigh County Industrial Development Authority, Pennsylvania, 5/03 at 102.00 AAA 13,823,595
Pollution Control Revenue Refunding Bonds, Pennsylvania Power
and Light Company Project, 1992 Series A, 6.400%, 11/01/21
1,530 Montgomery County Industrial Development Authority, No Opt. Call AAA 1,723,254
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.250%, 11/01/13
5,750 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 7/09 at 101.00 AAA 5,809,110
1998 General Ordinance, Second Series, 5.000%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.4%
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewer 12/10 at 101.00 AAA 2,124,660
Revenue Bonds, Series of 2000, 5.500%, 12/01/30
4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,180,240
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company Project, Series 2002, 5.550%, 9/01/32 (Alternative
Minimum Tax)
7,350 Luzerne County Industrial Development Authority, Pennsylvania, 4/03 at 102.00 A3 7,513,243
Exempt Facilities Revenue Refunding Bonds, 1992 Series A
(Pennsylvania Gas and Water Company Project),
7.200%, 10/01/17 (Alternative Minimum Tax)
4,500 Luzerne County Industrial Development Authority, Pennsylvania, 6/03 at 102.00 A3 4,598,504
Exempt Facilities Revenue Bonds, 1992 Series B (Pennsylvania
Gas and Water Company Project), 7.125%, 12/01/22
(Alternative Minimum Tax)
3,360 Mercer County Industrial Development Authority, Pennsylvania, 7/10 at 100.00 AAA 3,638,946
Water Facility Revenue Bonds, Series of 2000 (Consumers
Pennsylvania Water Company - Shenango Valley Division
Project), 6.000%, 7/01/30 (Alternative Minimum Tax)
5,500 Northumberland County Industrial Development Authority, 10/03 at 102.00 AA- 5,776,980
Pennsylvania, Exempt Facilities Revenue Bonds, 1993 Series
(Roaring Creek Water Company Project), 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 3,384,510
2,730 6.250%, 8/01/10 No Opt. Call AAA 3,270,785
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1993:
1,175 5.750%, 6/15/13 6/03 at 102.00 AAA 1,221,940
1,165 5.500%, 6/15/14 6/03 at 102.00 AAA 1,208,081
10,000 Pittsburgh Water and Sewer Authority, Pennsylvania, Water No Opt. Call AAA 2,585,600
and Sewer System First Lien Revenue Bonds, Series B of 1998,
0.000%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 368,225 Total Long-Term Investments (cost $339,186,364) - 150.0% 362,339,640
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.1)% (2,759,411)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.9)% (118,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 241,480,229
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such 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.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
44
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 3.5%
$ 2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 $ 1,812,660
Exempt Facilities Revenue Bonds, Amtrak Project, Series 2001A,
6.250%, 11/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 5.1%
3,000 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 2,635,290
Exempt Facilities Revenue Bonds, National Gypsum Project,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.5%
3,200 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- 3,332,992
Solid Waste Disposal Revenue Bonds, Procter & Gamble Paper
Project, Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 28.6%
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 Aaa 2,304,270
Revenue Bonds, Series of 2001, George School Project,
5.125%, 9/15/31
1,825 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,865,278
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
2,370 Montgomery County Industrial Development Authority, 8/07 at 100.00 AAA 2,433,208
Pennsylvania, Revenue Bonds, Series of 1997, Hill School
Project, 5.350%, 8/15/27
1,090 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,188,460
Thomas Jefferson University Revenue Bonds, Series 2002,
5.500%, 1/01/16
1,500 Pennsylvania Higher Educational Facilities Authority, Moravian 7/11 at 100.00 AA 1,554,855
College Revenue Bonds, Series 2001, 5.375%, 7/01/31
3,000 Pennsylvania State University Bonds, Series 2002 Refunding, No Opt. Call AA 3,397,950
5.250%, 8/15/14
2,000 West Cornwall Township, Pennsylvania, Municipal Authority 12/11 at 100.00 BBB+ 2,050,720
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 6.000%, 12/15/27
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.1%
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,514,950
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
500 Geisinger Authority, Montour County, Pennsylvania, Health System 8/08 at 101.00 Aa2 495,195
Revenue Bonds, Series A of 1998, Penn State Geisinger
Health System, 5.000%, 8/15/28
2,900 Pennsylvania Higher Educational Facilities Authority, UPMC 1/11 at 101.00 A+ 3,009,417
Health System Revenue Bonds, Series 2001A, 6.000%, 1/15/31
1,000 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,035,830
Bonds, Monongahela Valley Hospital Project, Series 2002,
5.500%, 6/01/17
2,250 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 2,283,210
Pennsylvania, Hospital Revenue Bonds, Series 2001, Holy Spirit
Hospital of the Sisters of Christian Charity Project,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.5%
2,255 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102.00 Aaa 2,302,152
Single Family Mortgage Revenue Bonds, 1998 Series DD2,
5.400%, 11/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 2.7%
1,250 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 1,397,675
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.8%
1,000 Cumberland County Municipal Authority, Pennsylvania, Retirement 1/13 at 101.00 N/R 985,280
Community Revenue Bonds, Series 2002A, Wesley Affiliated
Services Inc., 7.125%, 1/01/25
2,100 Lancaster County Hospital Authority, Pennsylvania, Health Center 12/11 at 100.00 A- 2,119,446
Revenue Bonds, Willow Valley Retirement Communities Project,
Series 2001, 5.875%, 6/01/31
45
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 2,875 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA $ 2,989,166
Revenue Bonds, Series 2001B, Philadelphia Corporation for the
Aging Project, 5.250%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 39.5%
2,415 Central Bucks School District, Bucks County, Pennsylvania, 5/12 at 100.00 Aaa 2,682,727
General Obligation Bonds, Series 2002, 5.500%, 5/15/18
Lake-Lehman School District, Luzerne County, Pennsylvania,
General Obligation Bonds, Series 2001:
1,315 0.000%, 4/01/25 No Opt. Call AAA 419,183
1,315 0.000%, 4/01/26 No Opt. Call AAA 397,459
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,227,467
General Obligation Bonds, 2001 Series A, 5.500%, 2/15/17
2,000 Commonwealth of Pennsylvania, General Obligation Bonds, 9/11 at 101.00 AA 2,206,900
Second Series of 2001, 5.000%, 9/15/13
2,500 School District of Philadelphia, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,788,000
Bonds, Series 2002B, 5.625%, 8/01/18
3,000 School District of Pittsburgh, Allegheny County, Pennsylvania, No Opt. Call AAA 3,463,080
General Obligation Bonds, Series 2002A Refunding,
5.500%, 9/01/14
9,270 Reading School District, Berks County, Pennsylvania, General 7/11 at 54.58 AAA 3,226,331
Obligation Bonds, Series 2001A, 0.000%, 1/15/22
2,625 Sto-Rox School District, Allegheny County, Pennsylvania, General 12/11 at 100.00 AAA 2,693,749
Obligation Bonds, Series 2001 Refunding, 5.125%, 12/15/29
1,230 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,326,715
General Obligation Bonds, Series 2001A, 5.000%, 4/01/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 7.1%
1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AAA 1,645,575
Bonds, Series 2002A, City of Philadelphia Neighborhood
Transformation Initiative, 5.500%, 4/15/19
2,000 Public Auditorium Authority of Pittsburgh and Allegheny County, 8/09 at 101.00 AAA 2,028,260
Pennsylvania, Regional Asset District Sales Tax Revenue Bonds,
Series of 1999, 5.000%, 2/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.7%
1,000 Pennsylvania Economic Development Authority, Revenue Bonds, 6/12 at 102.00 A 996,430
30th Street Station Garage Project, Series 2002,
5.875%, 6/01/33 (WI, settling 1/07/03)
1,750 Philadelphia Industrial Development Authority, Pennsylvania, 7/11 at 101.00 AAA 1,781,448
Airport Revenue Bonds, Series 2001A, Philadelphia Airport
System Project, 5.250%, 7/01/28 (Alternative Minimum Tax)
2,210 Sports and Exhibition Authority of Pittsburgh and Allegheny 12/06 at 100.00 Aaa 2,256,764
County, Pennsylvania, Parking Revenue Bonds, Series A
of 2001, 5.375%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.3%
500 Allegheny County Industrial Development Authority, No Opt. Call AAA 514,715
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Series 1999A, Duquesne Light Company Project,
4.350%, 12/01/13
3,100 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,436,411
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Montenay Montgomery County Project, Series 2002A,
5.000%, 11/01/10
1,000 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 8/13 at 100.00 AAA 1,073,450
1998 Resolution, Fourth Series, 5.250%, 8/01/19
2,240 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 7/03 at 102.00 BBB 2,339,231
Fourteenth Series, 6.375%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
$ 82,940 Total Long-Term Investments (cost $73,979,933) - 151.4% 78,211,899
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (3.0)% (1,557,584)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.4)% (25,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $51,654,315
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
46
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
Portfolio of
INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 3.9%
$ 2,190 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ $ 2,224,405
Environmental Improvement Revenue Bonds, USX Corp.
Project, Series 1995, 5.400%, 11/01/17 (Mandatory
put 11/01/11)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.2%
700 Allegheny County Higher Education Building Authority, No Opt. Call AA- 700,756
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.450%, 3/01/27
1,500 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 1,550,580
Pennsylvania, Revenue Refunding Bonds, Robert Morris
College, Series A of 1998, 6.000%, 5/01/28
2,000 Pennsylvania Higher Educational Facilities Authority, Temple 7/11 at 101.00 AAA 2,031,060
University Revenue Bonds, Series 2001, 5.000%, 7/15/31
5,000 Pennsylvania State University Bonds, Series 2002 Refunding, No Opt. Call AA 5,673,550
5.250%, 8/15/12
1,000 Union County Higher Educational Facilities Financing Authority, 4/13 at 100.00 Aa3 1,076,720
Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A,
5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.0%
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,011,960
Pennsylvania, Health System Revenue Bonds, Jefferson Health
System, Series 1997B, 5.375%, 5/15/27
1,000 Hospitals and Higher Education Facilities Authority of 11/03 at 102.00 BBB 1,006,290
Philadelphia, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series A of 1993, 6.625%, 11/15/23
1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,543,772
Bonds, Monongahela Valley Hospital Project, Series 2002,
6.250%, 6/01/22
600 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 608,856
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/OTHER - 5.8%
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,311,970
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.5%
965 Allegheny County Residential Finance Authority, Pennsylvania, 5/12 at 102.00 Aaa 1,004,054
Healthcare Facilities Revenue Bonds, Lemington Home for the
Aged Project (GNMA Collateralized), Series 2002A,
5.750%, 5/20/37
1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+ 1,169,934
Revenue Bonds, Pennswood Village Project, Series 2002A,
6.000%, 10/01/34
1,000 Cumberland County Municipal Authority, Pennsylvania, Retirement 1/13 at 101.00 N/R 985,280
Community Revenue Bonds, Series 2002A, Wesley Affiliated
Services Inc., 7.125%, 1/01/25
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 42.6%
2,500 Ambridge Area School District, Beaver County, Pennsylvania, 11/12 at 100.00 AAA 2,590,100
General Obligation Bonds, Series 2002B, 5.125%, 5/01/23
1,740 Butler Area School District, Butler County, Pennsylvania, General 10/12 at 100.00 AAA 1,842,764
Obligation Bonds, Series 2002A, 5.375%, 10/01/26
765 Butler Area School District, Butler County, Pennsylvania, General 10/12 at 100.00 AAA 808,330
Obligation Bonds, Series 2002B, 5.375%, 10/01/29
2,150 Fairview School District, Erie County, Pennsylvania, General 8/11 at 100.00 AAA 2,204,374
Obligation Bonds, Series 2001B, 5.125%, 2/01/29
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Bonds, Series 2002 Refunding:
725 5.375%, 9/15/15 9/12 at 100.00 AAA 812,855
1,000 5.375%, 9/15/16 9/12 at 100.00 AAA 1,112,620
47
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS December 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 4,280 Lehigh County, Pennsylvania, General Obligation Bonds, 11/11 at 100.00 Aa3 $ 4,628,392
Series 2001, 5.000%, 11/15/15
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 387,145
Series 2002B, 0.000%, 11/15/21
4,000 Commonwealth of Pennsylvania, General Obligation Bonds, 9/11 at 101.00 AA 4,339,720
Second Series of 2001, 5.000%, 9/15/15
2,000 School District of Philadelphia, Pennsylvania, General 2/12 at 100.00 AAA 2,123,940
Obligation Bonds, Series 2002A, 5.500%, 2/01/31
3,170 School District of Philadelphia, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,535,184
Bonds, Series 2002B, 5.625%, 8/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 33.3%
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call Aa2 4,637,440
Government Revenue Bonds, Series 2002, 5.750%, 7/01/17
2,000 Grove City Area Hospital Authority, Mercer County, Pennsylvania, 3/12 at 100.00 AAA 2,083,340
Woodland Place Project Revenue Bonds (County Guaranteed),
Series 2002, 5.400%, 3/01/31
4,000 Harrisburg Parking Authority, Pennsylvania, Guaranteed Revenue 9/11 at 100.00 Aaa 4,114,480
Refunding Bonds, Series 2001J, 5.000%, 9/01/22
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,140,666
Bonds, Series of 2001, 5.500%, 7/15/33
2,000 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 2,057,520
Lease Revenue Bonds, Series 2001B, 5.125%, 10/01/26
Philadelphia Redevelopment Authority, Pennsylvania, Revenue
Bonds, City of Philadelphia Neighborhood Transformation
Initiative, Series 2002A:
1,000 5.500%, 4/15/18 4/12 at 100.00 AAA 1,105,140
1,750 5.500%, 4/15/22 4/12 at 100.00 AAA 1,884,977
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.7%
1,000 Pennsylvania Economic Development Authority, Revenue Bonds, 6/12 at 102.00 A 996,430
30th Street Station Garage Project, Series 2002,
5.875%, 6/01/33 (WI, settling 1/07/03)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 4.0%
2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 2,308,120
Series 2001, 5.500%, 11/15/26 (Pre-refunded to 5/15/11)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.3%
3,135 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,475,210
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.000%, 11/01/10
2,420 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 8/13 at 100.00 AAA 2,580,857
1998 Resolution, Fourth Series, 5.250%, 8/01/20
2,600 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 7/03 at 102.00 BBB 2,715,180
Fourteenth Series, 6.375%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.2%
4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,702,770
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company Project, Series 2002, 5.550%, 9/01/32 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 80,340 Total Long-Term Investments (cost $80,908,442) - 148.5% 85,086,741
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 727,039
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 57,313,780
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
48
Statement of
ASSETS AND LIABILITIES December 31, 2002 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $457,118,762 $275,384,017 $142,600,005 $100,684,044
Cash 81,286 -- 419,143 --
Receivables:
Interest 7,988,879 4,794,566 2,552,547 1,549,427
Investments sold 9,792,000 5,355,000 -- --
Other assets 23,054 18,873 3,296 4,088
------------------------------------------------------------------------------------------------------------------------------------
Total assets 475,003,981 285,552,456 145,574,991 102,237,559
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 111,907 -- --
Payables:
Bank borrowings -- 11 -- 38,627
Investments purchased -- -- -- --
Accrued expenses:
Management fees 253,803 153,770 42,478 30,024
Organization and offering costs -- -- 8,800 4,638
Other 107,991 150,170 51,257 24,213
Preferred share dividends payable 8,833 15,391 1,579 7,653
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 370,627 431,249 104,114 105,155
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $312,633,354 $193,521,207 $ 97,470,877 $ 67,632,404
====================================================================================================================================
Common shares outstanding 20,258,649 12,012,930 6,547,000 4,507,353
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.43 $ 16.11 $ 14.89 $ 15.00
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 202,586 $ 120,129 $ 65,470 $ 45,074
Paid-in surplus 285,491,638 171,406,368 92,908,796 63,908,317
Undistributed (Over-distribution of) net investment income 2,436,245 1,936,752 559,249 83,234
Accumulated net realized gain (loss) from investments 659,913 (1,617,613) (194,156) 19,238
Net unrealized appreciation of investments 23,842,972 21,675,571 4,131,518 3,576,541
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $312,633,354 $193,521,207 $ 97,470,877 $ 67,632,404
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
49
Statement of
ASSETS AND LIABILITIES December 31, 2002 (Unaudited) (continued)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $384,415,707 $362,339,640 $78,211,899 $85,086,741
Cash 360,529 1,212,606 -- 432,084
Receivables:
Interest 5,545,197 5,250,449 1,109,721 1,328,392
Investments sold 5,500,000 3,520,000 519,484 --
Other assets 17,280 28,564 4,188 4,088
-----------------------------------------------------------------------------------------------------------------------------------
Total assets 395,838,713 372,351,259 79,845,292 86,851,305
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Payables:
Bank borrowings -- -- 2,112,703 --
Investments purchased 11,913,766 12,402,291 986,140 986,140
Accrued expenses:
Management fees 205,085 193,168 22,490 25,154
Organization and offering costs -- -- 8,800 4,650
Other 106,488 165,664 59,679 20,254
Preferred share dividends payable 11,492 9,907 1,165 1,327
-----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 12,236,831 12,771,030 3,190,977 1,037,525
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $251,601,882 $241,480,229 $51,654,315 $57,313,780
===================================================================================================================================
Common shares outstanding 16,275,318 15,753,059 3,296,957 3,723,722
===================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.46 $ 15.33 $ 15.67 $ 15.39
===================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 162,753 $ 157,531 $ 32,970 $ 37,237
Paid-in surplus 230,329,015 215,352,146 46,726,936 52,782,784
Undistributed (Over-distribution of) net investment income 998,500 2,735,316 426,575 (67,295)
Accumulated net realized gain (loss) from investments (2,153,910) 81,960 235,868 382,755
Net unrealized appreciation of investments 22,265,524 23,153,276 4,231,966 4,178,299
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $251,601,882 $241,480,229 $51,654,315 $57,313,780
===================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
===================================================================================================================================
See accompanying notes to financial statements.
50
Statement of
OPERATIONS Six Months Ended December 31, 2002 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $12,587,751 $ 7,416,076 $3,774,471 $2,634,725
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,511,332 913,584 469,125 331,679
Preferred shares - auction fees 204,164 115,441 60,493 43,479
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,041 5,041
Shareholders' servicing agent fees and expenses 33,820 20,382 1,122 897
Custodian's fees and expenses 60,128 38,738 24,280 21,795
Directors'/Trustees' fees and expenses 3,508 2,271 879 1,008
Professional fees 9,725 7,248 5,095 4,519
Shareholders' reports - printing and mailing expenses 29,994 13,610 6,163 6,182
Stock exchange listing fees 8,537 8,537 462 --
Investor relations expense 25,850 16,695 6,141 965
Other expenses 15,745 10,260 4,505 1,321
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,917,926 1,161,889 583,306 416,886
Custodian fee credit (3,628) (3,292) (2,862) (7,882)
Expense reimbursement -- -- (217,058) (153,086)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,914,298 1,158,597 363,386 255,918
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 10,673,453 6,257,479 3,411,085 2,378,807
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENTS
Net realized gain from investments 781,740 129,132 98,004 183,379
Change in net unrealized appreciation (depreciation)
of investments 7,324,514 5,689,754 2,857,095 2,346,301
-----------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 8,106,254 5,818,886 2,955,099 2,529,680
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From and in excess of net investment income (719,047) (483,066) (251,229) (184,562)
From accumulated net realized gains from investments (169,479) -- -- (20,192)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (888,526) (483,066) (251,229) (204,754)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $17,891,181 $11,593,299 $6,114,955 $4,703,733
===================================================================================================================================
See accompanying notes to financial statements.
51
Statement of
OPERATIONS Six Months Ended December 31, 2002 (Unaudited) (continued)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 9,922,118 $ 9,735,864 $1,999,181 $2,085,612
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,217,520 1,146,989 248,771 277,649
Preferred shares - auction fees 166,356 148,838 31,507 35,918
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,041 5,041
Shareholders' servicing agent fees and expenses 40,090 30,645 1,701 1,328
Custodian's fees and expenses 61,797 44,592 21,588 24,547
Directors'/Trustees' fees and expenses 3,211 2,017 355 643
Professional fees 7,981 6,918 4,575 4,046
Shareholders' reports - printing and mailing expenses 39,542 17,292 5,428 5,898
Stock exchange listing fees 8,537 8,537 243 --
Investor relations expense 27,614 18,246 3,283 3,046
Other expenses 9,416 10,388 4,798 1,160
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 1,597,187 1,449,585 327,290 359,276
Custodian fee credit (6,356) (7,780) (2,568) (13,703)
Expense reimbursement -- -- (114,818) (128,146)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,590,831 1,441,805 209,904 217,427
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 8,331,287 8,294,059 1,789,277 1,868,185
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENTS
Net realized gain from investments 850,530 777,190 430,046 424,511
Change in net unrealized appreciation (depreciation)
of investments 11,383,481 6,688,940 2,082,013 2,539,273
-----------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 12,234,011 7,466,130 2,512,059 2,963,784
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From and in excess of net investment income (752,733) (664,981) (124,445) (174,645)
From accumulated net realized gains from investments -- -- (47,322) (17,220)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (752,733) (664,981) (171,767) (191,865)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $19,812,565 $15,095,208 $4,129,569 $4,640,104
===================================================================================================================================
See accompanying notes to financial statements.
52
Statement of
CHANGES IN NET ASSETS (Unaudited)
NEW JERSEY INVESTMENT NEW JERSEY NEW JERSEY
QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
--------------------------------- ---------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/02 6/30/02 12/31/02 6/30/02 12/31/02 6/30/02
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 10,673,453 $ 22,266,375 $ 6,257,479 $ 12,692,718 $ 3,411,085 $ 6,785,279
Net realized gain (loss)
from investments 781,740 2,008,530 129,132 1,446,786 98,004 (285,894)
Change in net unrealized
appreciation (depreciation)
of investments 7,324,514 (2,377,570) 5,689,754 1,407,496 2,857,095 (122,252)
Distributions to
Preferred Shareholders:
From and in excess of net
investment income (719,047) (2,560,820) (483,066) (1,417,848) (251,229) (855,272)
From accumulated net
realized gains
from investments (169,479) -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations 17,891,181 19,336,515 11,593,299 14,129,152 6,114,955 5,521,861
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From and in excess of net
investment income (9,295,880) (18,508,380) (5,464,684) (10,187,469) (2,774,378) (5,578,064)
From accumulated net realized gains
from investments (1,345,170) -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to
Common shareholders (10,641,050) (18,508,380) (5,464,684) (10,187,469) (2,774,378) (5,578,064)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 575,330 2,194,939 -- -- -- --
Preferred shares offering costs -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 575,330 2,194,939 -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 7,825,461 3,023,074 6,128,615 3,941,683 3,340,577 (56,203)
Net assets applicable to Common
shares at the beginning
of period 304,807,893 301,784,819 187,392,592 183,450,909 94,130,300 94,186,503
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $312,633,354 $304,807,893 $193,521,207 $187,392,592 $97,470,877 $94,130,300
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 2,436,245 $ 1,768,070 $ 1,936,752 $ 1,610,542 $ 559,249 $ 184,283
===================================================================================================================================
See accompanying notes to financial statements.
53
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
--------------------------------- --------------------------------- ----------------------------------
FOR THE PERIOD
3/26/02
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/02 THROUGH 6/30/02 12/31/02 6/30/02 12/31/02 6/30/02
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,378,807 $ 698,933 $ 8,331,287 $ 17,648,265 $ 8,294,059 $ 16,894,284
Net realized gain (loss)
from investments 183,379 (213) 850,530 2,590,369 777,190 1,191,174
Change in net unrealized
appreciation (depreciation)
of investments 2,346,301 1,230,987 11,383,481 (1,250,135) 6,688,940 3,570,190
Distributions to
Preferred Shareholders:
From and in excess of net
investment income (184,562) (52,247) (752,733) (2,216,547) (664,981) (1,898,830)
From accumulated net
realized gains
from investments (20,192) -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 4,703,733 1,877,460 19,812,565 16,771,952 15,095,208 19,756,818
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From and in excess of net
investment income (2,068,872) (689,572) (7,420,837) (14,777,891) (7,234,960) (13,598,132)
From accumulated net
realized gains
from investments (143,736) -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,212,608) (689,572) (7,420,837) (14,777,891) (7,234,960) (13,598,132)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 64,327,500 -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 5,261 122 283,963 1,744,182 84,070 --
Preferred shares offering costs (17,393) (462,374) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (12,132) 63,865,248 283,963 1,744,182 84,070 --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,478,993 65,053,136 12,675,691 3,738,243 7,944,318 6,158,686
Net assets applicable to Common
shares at the beginning
of period 65,153,411 100,275 238,926,191 235,187,948 233,535,911 227,377,225
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $67,632,404 $65,153,411 $251,601,882 $238,926,191 $241,480,229 $233,535,911
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 83,234 $ (42,886) $ 998,500 $ 847,477 $ 2,735,316 $ 2,445,025
===================================================================================================================================
See accompanying notes to financial statements.
54
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
--------------------------------- --------------------------------
FOR THE
PERIOD 3/25/02
(COMMENCEMENT
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED OF OPERATIONS)
12/31/02 6/30/02 12/31/02 THROUGH 6/30/02
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,789,277 $ 3,696,942 $ 1,868,185 $ 568,127
Net realized gain (loss) from investments 430,046 226,686 424,511 85,308
Change in net unrealized appreciation
(depreciation) of investments 2,082,013 1,011,994 2,539,273 1,639,929
Distributions to Preferred Shareholders:
From and in excess of net
investment income (124,445) (436,152) (174,645) (51,479)
From accumulated net realized gains
from investments (47,322) (9,362) (17,220) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 4,129,569 4,490,108 4,640,104 2,241,885
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From and in excess of net
investment income (1,459,079) (2,880,695) (1,708,919) (569,467)
From accumulated net realized gains
from investments (322,656) (41,536) (109,844) --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,781,735) (2,922,231) (1,818,763) (569,467)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 53,105,925
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- 15,496 25,883 198
Preferred shares offering costs -- -- (14,038) (398,222)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 15,496 11,845 52,707,901
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,347,834 1,583,373 2,833,186 54,380,319
Net assets applicable to Common
shares at the beginning of period 49,306,481 47,723,108 54,480,594 100,275
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $51,654,315 $49,306,481 $57,313,780 $54,480,594
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 426,575 $ 272,643 $ (67,295) $ (52,819)
===================================================================================================================================
See accompanying notes to financial statements.
55
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
Common share 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
New Jersey Dividend Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania
Investment Quality Municipal Fund (NQP), Nuveen Pennsylvania Premium Income
Municipal Fund 2 (NPY), Nuveen Pennsylvania Dividend Advantage Municipal Fund
(NXM) and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY). New
Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ), Pennsylvania
Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY) are traded on
the New York Stock Exchange while New Jersey Dividend Advantage (NXJ), New
Jersey Dividend Advantage 2 (NUJ), Pennsylvania Dividend Advantage (NXM) and
Pennsylvania Dividend Advantage 2 (NVY) are traded on the American Stock
Exchange.
Prior to the commencement of operations of New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY), each Fund had no operations other
than those related to organizational matters, the initial capital contribution
of $100,275 per Fund by Nuveen Advisory Corp. (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments, Inc. (formerly, The John Nuveen Company) and
the recording of the organization expenses ($11,500 per Fund) and their
reimbursement by Nuveen Investments, LLC (formerly, Nuveen Investments) also a
wholly owned subsidiary of Nuveen Investments, Inc.
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. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors/Trustees of the Funds or
its designee may establish a fair value for the security. 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
December 31, 2002, Pennsylvania Investment Quality (NQP), Pennsylvania Premium
Income 2 (NPY), Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend
Advantage 2 (NVY) had outstanding when-issued and/or delayed delivery purchase
commitments of $11,913,766, $12,402,291, $986,140 and $986,140, respectively.
There were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
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 shareholders of the Funds.
56
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared and paid monthly.
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 Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of 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 pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each of the Funds is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,200 -- -- --
Series T -- 624 1,920 --
Series W -- 1,440 -- 1,380
Series TH 2,000 1,600 -- --
Series F 1,280 -- -- --
--------------------------------------------------------------------------------
Total 6,480 3,664 1,920 1,380
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Number of shares:
Series M -- 844 -- 1,140
Series T 880 -- 1,000 --
Series W 2,400 -- -- --
Series TH 2,000 2,080 -- --
Series F -- 1,800 -- --
--------------------------------------------------------------------------------
Total 5,280 4,724 1,000 1,140
================================================================================
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 six months ended December 31, 2002.
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, LLC has agreed to pay all offering costs (other than the
sales load) that exceed $.03 per Common share for New Jersey Dividend Advantage
2 (NUJ) and Pennsylvania Dividend Advantage 2 (NVY). New Jersey Dividend
Advantage 2's (NUJ) and Pennsylvania Dividend Advantage 2's (NVY) share of
offering costs ($135,000 and $111,450, respectively) were recorded as a
reduction of the proceeds from the sale of Common shares.
Costs incurred by New Jersey Dividend Advantage 2 (NUJ) and Pennsylvania
Dividend Advantage 2 (NVY) in connection with their offering of Preferred shares
($479,767 and $412,260, respectively) were recorded as a reduction to paid-in
surplus.
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
------------------------ ----------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
12/31/02 6/30/02 12/31/02 6/30/02 12/31/02 6/30/02
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 37,370 141,510 -- -- -- --
---------------------------------------------------------------------------------------------------------
37,370 141,510 -- -- -- --
=========================================================================================================
Preferred shares sold -- -- -- -- -- --
=========================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
---------------------------- ------------------------ -------------------------
FOR THE
PERIOD 3/26/02
(COMMENCEMENT
SIX MONTHS OF OPERATIONS) SIX MONTHS SIX MONTHS
ENDED THROUGH ENDED YEAR ENDED ENDED YEAR ENDED
12/31/02 6/30/02 12/31/02 6/30/02 12/31/02 6/30/02
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- 4,500,000 -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 345 8 18,725 115,618 5,597 --
---------------------------------------------------------------------------------------------------------
345 4,500,008 18,725 115,618 5,597 --
=========================================================================================================
Preferred shares sold -- 1,380 -- -- -- --
=========================================================================================================
58
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
------------------------ --------------------------
FOR THE
PERIOD 3/25/02
(COMMENCEMENT
SIX MONTHS SIX MONTHS OF OPERATIONS)
ENDED YEAR ENDED ENDED THROUGH
12/31/02 6/30/02 12/31/02 6/30/02
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 3,715,000
Shares issued to shareholders
due to reinvestment of
distributions -- 1,057 1,709 13
---------------------------------------------------------------------------------------------------------
-- 1,057 1,709 3,715,013
=========================================================================================================
Preferred shares sold -- -- -- 1,140
=========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term securities during the six months ended December 31,
2002, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $16,002,050 $1,791,450 $1,967,500 $2,930,213
Short-term securities 6,300,000 2,400,000 1,000,000 --
Sales and maturities:
Long-term municipal securities 27,650,640 8,859,600 2,356,231 3,748,675
Short-term securities 6,800,000 2,400,000 1,000,000 5,500,000
=========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $30,112,633 $27,387,960 $ 8,289,340 $8,927,935
Short-term securities 20,700,000 9,245,000 -- --
Sales and maturities:
Long-term municipal securities 25,657,609 20,227,140 10,087,203 9,206,278
Short-term securities 23,000,000 9,245,000 -- --
=========================================================================================================
59
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At December 31, 2002, the cost of investments were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Cost of investments $433,201,465 $253,545,368 $138,448,685 $97,103,638
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Cost of investments $362,078,058 $338,981,439 $73,959,613 $80,905,327
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at December 31, 2002, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $25,874,041 $21,899,414 $ 6,544,250 $4,158,258
Depreciation (1,956,744) (60,765) (2,392,930) (577,852)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments $23,917,297 $21,838,649 $ 4,151,320 $3,580,406
==========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $22,999,942 $24,895,400 $4,457,106 $4,181,414
Depreciation (662,293) (1,537,199) (204,820) --
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments $22,337,649 $23,358,201 $4,252,286 $4,181,414
==========================================================================================================
60
The tax components of undistributed net investment income and net realized gains
at June 30, 2002, the Funds' last fiscal year end, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------
Undistributed tax-exempt income $3,132,838 $2,109,297 $653,719 $305,681
Undistributed ordinary income * -- 132,968 -- --
Undistributed net long-term capital gains 1,396,202 -- -- --
=========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------
Undistributed tax-exempt income $1,874,255 $3,139,695 $465,412 $238,706
Undistributed ordinary income * -- 61,572 107,024 85,308
Undistributed net long-term capital gains -- -- 74,964 --
=========================================================================================================
The tax character of distributions paid during the period ended June 30, 2002,
the Funds' last fiscal year end, were designated for purposes of the dividends
paid deduction as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
----------------------------------------------------------------------------------------------------------
Distributions from tax-exempt income $21,088,032 $11,570,615 $6,441,891 $393,252
Distributions from ordinary income * -- -- -- --
Distributions from net long-term capital gains -- -- -- --
==========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------
Distributions from tax-exempt income $16,999,987 $15,403,533 $3,318,131 $329,421
Distributions from ordinary income * -- -- 50,898 --
Distributions from net long-term capital gains -- -- -- --
==========================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At June 30, 2002, the Funds' last fiscal year end, 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 PENNSYLVANIA PENNSYLVANIA
PREMIUM DIVIDEND INVESTMENT PREMIUM
INCOME ADVANTAGE QUALITY INCOME 2
(NNJ) (NXJ) (NQP) (NPY)
--------------------------------------------------------------------------------
Expiration year:
2003 $ 129,409 $ -- $ -- $ --
2004 650,143 -- -- --
2005 174,583 -- -- --
2006 -- -- -- --
2007 244,178 -- -- --
2008 27,220 -- 394,765 695,230
2009 521,212 6,266 362,560 --
2010 -- 285,894 2,247,115 --
--------------------------------------------------------------------------------
Total $1,746,745 $292,160 $3,004,440 $695,230
================================================================================
61
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under New Jersey Investment Quality's (NQJ), New Jersey Premium Income's (NNJ),
Pennsylvania Investment Quality's (NQP) and Pennsylvania Premium Income 2's
(NPY) 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 (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under New Jersey Dividend Advantage's (NXJ), New Jersey Dividend Advantage 2's
(NUJ), Pennsylvania Dividend Advantage's (NXM) and Pennsylvania Dividend
Advantage 2's (NVY) 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 (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
For the first ten years of New Jersey Dividend Advantage's (NXJ) and
Pennsylvania Dividend Advantage's (NXM) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts,
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage (NXJ) and
Pennsylvania Dividend Advantage (NXM) for any portion of their fees and expenses
beyond March 31, 2011.
62
For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and
Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts,
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and
expenses beyond March 31, 2012.
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.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid February 3, 2003, to shareholders of record on
January 15, 2003, as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Dividend per share $.0765 $.0755 $.0720 $.0765
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Dividend per share $.0760 $.0765 $.0765 $.0765
================================================================================
63
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
-------------------------------------------------------------------- --------------------------------
Distributions From and
from and in Distributions in Excess
Excess of Net from of Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) $15.07 $ .53 $ .41 $(.04) $(.01) $ .89 $(.46) $(.07) $(.53)
2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92)
2001 14.45 1.19 .58 (.27) -- 1.50 (.92) -- (.92)
2000 15.14 1.20 (.63) (.29) (.01) .27 (.92) (.04) (.96)
1999 15.65 1.14 (.46) (.20) (.01) .47 (.93) (.03) (.96)
1998 15.41 1.16 .29 (.22) (.01) 1.22 (.95) (.03) (.98)
NEW JERSEY
PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 15.60 .52 .48 (.04) -- .96 (.45) -- (.45)
2002 15.27 1.06 .24 (.12) -- 1.18 (.85) -- (.85)
2001 14.28 1.07 .99 (.25) -- 1.81 (.82) -- (.82)
2000 14.92 1.08 (.62) (.25) -- .21 (.85) -- (.85)
1999 15.34 1.08 (.41) (.22) -- .45 (.87) -- (.87)
1998 14.71 1.10 .65 (.26) -- 1.49 (.86) -- (.86)
NEW JERSEY
DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 14.38 .52 .46 (.04) -- .94 (.43) -- (.43)
2002 14.39 1.04 (.07) (.13) -- .84 (.85) -- (.85)
2001(a) 14.33 .14 .22 (.03) -- .33 (.14) -- (.14)
NEW JERSEY
DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 14.46 .53 .54 (.04) -- 1.03 (.46) (.03) (.49)
2002(b) 14.33 .16 .27 (.01) -- .42 (.15) -- (.15)
====================================================================================================================================
Total Returns
----------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===========================================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
---------------------------------------------------------------------------
Year Ended 6/30:
2003(c) $-- $15.43 $15.0400 2.27% 5.94%
2002 -- 15.07 15.2200 4.19 6.56
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
NEW JERSEY
PREMIUM
INCOME (NNJ)
---------------------------------------------------------------------------
Year Ended 6/30:
2003(c) -- 16.11 15.3100 1.73 6.25
2002 -- 15.60 15.5000 7.88 7.91
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
NEW JERSEY
DIVIDEND
ADVANTAGE (NXJ)
---------------------------------------------------------------------------
Year Ended 6/30:
2003(c) -- 14.89 14.1500 3.26 6.61
2002 -- 14.38 14.1200 (.17) 6.05
2001(a) (.13) 14.39 14.9900 .87 1.42
NEW JERSEY
DIVIDEND
ADVANTAGE 2 (NUJ)
---------------------------------------------------------------------------
Year Ended 6/30:
2003(c) -- 15.00 14.7400 1.31 7.21
2002(b) (.14) 14.46 15.0400 1.29 1.98
===========================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==========================================================================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
----------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) $312,633 1.23%* 6.82%* 1.22%* 6.82%* 3%
2002 304,808 1.25 7.35 1.23 7.36 22
2001 301,785 1.24 7.97 1.23 7.99 16
2000 288,810 1.22 8.27 1.21 8.28 11
1999 301,329 1.13 7.27 1.13 7.27 8
1998 308,878 1.13 7.40 1.13 7.40 6
NEW JERSEY
PREMIUM
INCOME (NNJ)
----------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 193,521 1.21* 6.50* 1.20* 6.50* 1
2002 187,393 1.22 6.85 1.22 6.86 14
2001 183,451 1.25 7.14 1.24 7.15 6
2000 171,496 1.24 7.61 1.23 7.63 10
1999 178,704 1.24 7.00 1.24 7.00 10
1998 182,676 1.25 7.24 1.25 7.24 13
NEW JERSEY
DIVIDEND
ADVANTAGE (NXJ)
----------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 97,471 1.21* 6.62* .75* 7.08* 1
2002 94,130 1.24 6.76 .75 7.25 7
2001(a) 94,187 1.05* 3.65* .66* 4.03* 1
NEW JERSEY
DIVIDEND
ADVANTAGE 2 (NUJ)
----------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 67,632 1.24* 6.59* .76* 7.07* 3
2002(b) 65,153 1.07* 3.86* .67* 4.25* --
==========================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=========================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
---------------------------------------------------------
Year Ended 6/30:
2003(c) $162,000 $25,000 $73,246
2002 162,000 25,000 72,038
2001 162,000 25,000 71,572
2000 162,000 25,000 69,569
1999 162,000 25,000 71,501
1998 130,000 25,000 84,400
NEW JERSEY
PREMIUM
INCOME (NNJ)
---------------------------------------------------------
Year Ended 6/30:
2003(c) 91,600 25,000 77,817
2002 91,600 25,000 76,144
2001 91,600 25,000 75,068
2000 91,600 25,000 71,806
1999 91,600 25,000 73,773
1998 91,600 25,000 74,857
NEW JERSEY
DIVIDEND
ADVANTAGE (NXJ)
---------------------------------------------------------
Year Ended 6/30:
2003(c) 48,000 25,000 75,766
2002 48,000 25,000 74,026
2001(a) 48,000 25,000 74,055
NEW JERSEY
DIVIDEND
ADVANTAGE 2 (NUJ)
---------------------------------------------------------
Year Ended 6/30:
2003(c) 34,500 25,000 74,009
2002(b) 34,500 25,000 72,213
=========================================================
* 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 Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share 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 26, 2002 (commencement of operations) through June 30,
2002.
(c) For the six months ended December 31, 2002.
See accompanying notes to financial statements.
2 page spread 64-65
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
-------------------------------------------------------------------- -------------------------------
Distributions From and
from and in Distributions in Excess
Excess of Net from of Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PENNSYLVANIA
INVESTMENT
QUALITY (NQP)
Year Ended 6/30:
2003(c) $14.70 $ .51 $ .76 $(.05) $-- $1.22 $ (.46) $-- $ (.46)
2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91)
2001 14.39 1.23 .16 (.30) -- 1.09 (.91) -- (.91)
2000 15.33 1.25 (.83) (.29) (.02) .11 (.98) (.07) (1.05)
1999 15.94 1.22 (.59) (.21) -- .42 (1.01) -- (1.01)
1998 15.91 1.23 .10 (.23) (.01) 1.09 (1.01) (.05) (1.06)
PENNSYLVANIA
PREMIUM INCOME 2
(NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 14.83 .53 .47 (.04) -- .96 (.46) -- (.46)
2002 14.44 1.07 .30 (.12) -- 1.25 (.86) -- (.86)
2001 13.48 1.07 .95 (.27) -- 1.75 (.79) -- (.79)
2000 14.30 1.06 (.78) (.27) -- .01 (.81) (.02) (.83)
1999 14.86 1.04 (.61) (.23) -- .20 (.76) -- (.76)
1998 14.20 1.02 .67 (.26) -- 1.43 (.77) -- (.77)
PENNSYLVANIA
DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 14.96 .54 .77 (.04) (.01) 1.26 (.45) (.10) (.55)
2002 14.48 1.12 .37 (.13) -- 1.36 (.87) (.01) (.88)
2001(a) 14.33 .14 .35 (.03) -- .46 (.15) -- (.15)
PENNSYLVANIA
DIVIDEND
ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 14.64 .50 .79 (.05) -- 1.24 (.46) (.03) (.49)
2002(b) 14.33 .15 .46 (.01) -- .60 (.15) -- (.15)
====================================================================================================================================
Total Returns
----------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===========================================================================
PENNSYLVANIA
INVESTMENT
QUALITY (NQP)
Year Ended 6/30:
2003(c) $-- $15.46 $14.7500 .16% 8.36%
2002 -- 14.70 15.1800 6.57 7.34
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
PENNSYLVANIA
PREMIUM INCOME 2
(NPY)
---------------------------------------------------------------------------
Year Ended 6/30:
2003(c) -- 15.33 14.4300 .67 6.54
2002 -- 14.83 14.7900 13.25 8.88
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
PENNSYLVANIA
DIVIDEND
ADVANTAGE (NXM)
---------------------------------------------------------------------------
Year Ended 6/30:
2003(c) -- 15.67 15.0700 4.96 8.49
2002 -- 14.96 14.8900 9.10 9.67
2001(a) (.16) 14.48 14.4900 (2.45) 2.06
PENNSYLVANIA
DIVIDEND
ADVANTAGE 2 (NVY)
---------------------------------------------------------------------------
Year Ended 6/30:
2003(c) -- 15.39 14.5800 2.20 8.55
2002(b) (.14) 14.64 14.7400 (.73) 3.24
===========================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==========================================================================================================
PENNSYLVANIA
INVESTMENT
QUALITY (NQP)
Year Ended 6/30:
2003(c) $251,602 1.28%* 6.68%* 1.28%* 6.69%* 7%
2002 238,926 1.31 7.42 1.30 7.44 34
2001 235,188 1.29 8.40 1.27 8.41 17
2000 231,525 1.26 8.57 1.25 8.59 8
1999 245,468 1.16 7.61 1.16 7.61 16
1998 253,139 1.15 7.65 1.15 7.65 9
PENNSYLVANIA
PREMIUM INCOME 2
(NPY)
----------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 241,480 1.21* 6.89* 1.20* 6.90* 6
2002 233,536 1.24 7.28 1.23 7.29 7
2001 227,377 1.25 7.55 1.24 7.57 10
2000 212,325 1.26 7.88 1.25 7.89 14
1999 225,235 1.24 6.93 1.24 6.93 9
1998 234,023 1.24 6.99 1.24 6.99 32
PENNSYLVANIA
DIVIDEND
ADVANTAGE (NXM)
----------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 51,654 1.27* 6.51* .82* 6.97* 11
2002 49,306 1.29 7.12 .82 7.59 48
2001(a) 47,723 1.26* 3.51* .87* 3.90* --
PENNSYLVANIA
DIVIDEND
ADVANTAGE 2 (NVY)
----------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003(c) 57,314 1.27* 6.09* .77* 6.59* 11
2002(b) 54,481 1.09* 3.77* .70* 4.15* 8
==========================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=========================================================
PENNSYLVANIA
INVESTMENT
QUALITY (NQP)
Year Ended 6/30:
2003(c) $132,000 $25,000 $72,652
2002 132,000 25,000 70,251
2001 132,000 25,000 69,543
2000 132,000 25,000 68,849
1999 132,000 25,000 71,490
1998 110,000 25,000 82,532
PENNSYLVANIA
PREMIUM INCOME 2
(NPY)
---------------------------------------------------------
Year Ended 6/30:
2003(c) 118,100 25,000 76,118
2002 118,100 25,000 74,436
2001 118,100 25,000 73,132
2000 118,100 25,000 69,946
1999 118,100 25,000 72,679
1998 118,100 25,000 74,539
PENNSYLVANIA
DIVIDEND
ADVANTAGE (NXM)
---------------------------------------------------------
Year Ended 6/30:
2003(c) 25,000 25,000 76,654
2002 25,000 25,000 74,306
2001(a) 25,000 25,000 72,723
PENNSYLVANIA
DIVIDEND
ADVANTAGE 2 (NVY)
---------------------------------------------------------
Year Ended 6/30:
2003(c) 28,500 25,000 75,275
2002(b) 28,500 25,000 72,790
=========================================================
* 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 Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share 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 29, 2001 (commencement of operations) through June 30,
2001.
(b) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
(c) For the six months ended December 31, 2002.
See accompanying notes to financial statements.
2 page spread 66-67
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End 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.
68
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
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Policy Change
On November 14, 2002, the Board adopted a policy that allows these Funds, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) THAT
WOULD HAVE BEEN NECESSARY ON AN ANNUAL BASIS TO EQUAL THE INVESTMENT'S actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. 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.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
---------
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 six-month period ended December 31, 2002. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
69
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.
Logo: NUVEEN Investments
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333 West Wacker Drive o Chicago o Illinois 60606
WWW.NUVEEN.COM
ESA-B-1202D