LOGO: NUVEEN Investments
SEMIANNUAL REPORT December 31, 2000
Municipal Closed-End Exchange Traded Funds
Dependable, tax-free income to help you keep more of what you earn.
NEW JERSEY
NQJ
NNJ
PENNSYLVANIA
NQP
NPY
Photos of: Adults and children
INVEST WELL.
LOOK AHEAD.
LEAVE YOUR MARK.(SM)
Credit Quality
HIGHLIGHTS As of December 31, 2000
PIECHART:
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. (NQJ)
AAA/U.S. Guaranteed 68%
AA 14%
A 8%
BBB 3%
NR 5%
Other 2%
PIECHART:
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. (NNJ)
AAA/U.S. Guaranteed 68%
AA 10%
A 18%
NR 3%
Other 3%
PIECHART:
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND (NQP)
AAA/U.S. Guaranteed 78%
AA 12%
A 7%
BBB 3%
PIECHART:
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 (NPY)
AAA/U.S. Guaranteed 76%
AA 8%
A 6%
BBB 6%
NR 3%
Other 1%
CONTENTS
1 Dear Shareholder
3 Portfolio Managers' Comments
7 NQJ Performance Overview
8 NNJ Performance Overview
9 NQP Performance Overview
10 NPY Performance Overview
11 Shareholder Meeting Report
13 Portfolio of Investments
32 Statement of Net Assets
33 Statement of Operations
34 Statement of Changes in Net Assets
36 Notes to Financial Statements
41 Financial Highlights
44 Build Your Wealth Automatically
45 Fund Information
--------------------------------------------------------------------------------
COMPOUND YOUR WEALTH - AUTOMATICALLY
All Nuveen Municipal Closed-End ETFs let you reinvest dividends and capital
gains directly into additional shares of your Fund. This is a great way to see
your investment grow through the power of compounding.
For more information about Dividend Reinvestment, see the last page of this
report or speak with your financial advisor.
--------------------------------------------------------------------------------
Dear
SHAREHOLDER
Photo of: Timothy R. Schwertfeger
Chairman of the Board
SIDEBAR TEXT: " A WELL-BALANCED PORTFOLIO CAN HELP YOU REDUCE YOUR INVESTMENT
RISKS."
One of the primary goals of your Nuveen Fund is to provide you with attractive,
dependable tax-free income from a quality portfolio. I am pleased to report that
over the period covered by this report your Fund has continued to meet these
objectives. I urge you to read the Portfolio Managers' Comments and Performance
Overview pages included in this report, which provide more details about Fund
results, how they were achieved, and how the Funds are trying to position
themselves for the future.
The uncertain markets of this past reporting period also remind us of another
important reason for investing in Nuveen Funds. In times such as these, your
Nuveen Fund can help bring a measure of diversification to your overall
portfolio and serve as a useful counterbalance to other holdings. A
well-balanced portfolio can help you reduce your investment risks and provide
one of the keys to strong long-term performance.
Invest Well. Look Ahead. Leave Your Mark.
At Nuveen, we believe that investors should focus not only on investments that
can help them accumulate wealth, but also on the plans and services that can
help preserve that wealth and pass it along to future generations. This
long-term perspective is an integral part of our portfolio management
strategies, our insistence on quality, and our desire to provide investments
that can withstand the test of time.
In establishing a program tailored to your needs, the sound ongoing advice and
disciplined focus provided by a trusted financial advisor can be an invaluable
resource, enabling you to make wise investment decisions and build a program
that can result in a lasting legacy.
For more than a century, Nuveen has offered quality investments to those who
recognize and embrace the need for building, preserving and managing wealth. All
of us at Nuveen are dedicated to working with you and your financial advisor to
provide the services, products, perspectives, and solutions that can help you
meet your personal and family financial goals, now and for years to come. We
thank you for your continued confidence.
Sincerely,
/s/Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
February 16, 2001
Sidebar text: "IN ESTABLISHING A PROGRAM TAILORED TO YOUR NEEDS, THE SOUND
ONGOING ADVICE AND DISCIPLINED FOCUS PROVIDED BY A TRUSTED FINANCIAL ADVISOR CAN
BE AN INVALUABLE RESOURCE."
Nuveen New Jersey and Pennsylvania Closed-End Exchange-Traded Funds
(NQJ, NNJ, NQP, NPY)
Portfolio Managers'
COMMENTS
Portfolio managers Tom Futrell and Tom O'Shaughnessy discuss national and state
economic conditions, key investment strategies, and the performance of the
Nuveen Closed-End Exchange-Traded Funds for New Jersey and Pennsylvania. Tom
Futrell assumed portfolio management responsibility for NQJ and NNJ in 1998,
while Tom O'Shaughnessy has managed NQP since its inception in 1991 and NPY
since 1995.
WHAT MAJOR FACTORS AFFECTED THE U.S. ECONOMY AND
THE MUNICIPAL MARKET OVER THIS REPORTING PERIOD?
The major factor affecting the fixed-income markets has been Federal Reserve
policy. During the period covered by this report, the federal funds target rate
was 6.50%, the highest level in almost a decade. As evidence mounted that the
Fed's objective to slow the economy might be working, there was a growing debate
about whether the time had come to start cutting interest rates.
Shortly after the close of the reporting period, the Fed moved to lower interest
rates by 50 basis points, the first such move since the Asian financial crisis
in late 1998. The Fed made a second 50 basis point cut at the end of January
2001. The current consensus among many market observers is that the Fed will
continue to ease rates if a significant economic slowdown remains possible.
In the municipal market, signs of economic slowing and tighter new issue supply
helped many bonds perform well. During 2000, new issue supply of municipal bonds
totaled $199 billion nationwide, down 12% from 1999 levels. Part of this decline
stemmed from higher rate concerns earlier in the year, which made it less
attractive for some issuers to offer bonds. In addition, generally favorable
economic conditions in most cities and states enabled many issuers to use
pay-as-you-go funding for necessary projects, rather than financing obtained
through new issuance.
At the same time, demand for municipal bonds continued to be strong from
individual investors looking for diversification, income and an alternative to a
volatile stock market. As a result, municipal bond prices were higher and yields
lower at the end of 2000 when compared with the end of 1999. Nevertheless,
municipals still represented good value. As of December 31, 2000, long-term
municipal yields were more than 100% of 30-year Treasury yields, compared with
96% in December 1999 and the historical average of 86% for the period 1986-1999.
WHAT ABOUT THE ECONOMIC AND MARKET
ENVIRONMENT IN THESE TWO STATES?
TOM FUTRELL: Unlike the decline in supply seen in the national municipal market
in 2000, total issuance in New Jersey remained relatively unchanged from 1999
levels, with $8.5 billion in new supply. Some of this stability can be
attributed to the fact that two of the nation's top issuers last year were
located in the state: the New Jersey Turnpike Authority, with $1.87 billion, and
the New Jersey Transit Corporation with $1.77 billion. Over the past year, the
New Jersey economy continued to demonstrate strong growth, with employment
increasing across all sectors except manufacturing and utilities. However,
tighter labor markets are expected to curtail this growth somewhat over the near
term. New Jersey's real estate market continued to expand, driven by strong
commercial construction, as New York companies relocated some operations to the
state. Following approval of a major tax break aimed at attracting financial
firms, this trend is expected to continue with Chase Manhattan and Goldman Sachs
both recently announcing plans to move to the Jersey City area.
TOM O'SHAUGHNESSY: In Pennsylvania, municipal issuance for 2000 totaled only
$6.6 billion, down almost 42% from 1999 levels. Over the past year,
Pennsylvania's economy began to show signs of slowing due to weakness in the
retail trade, service and construction industries. To counteract this trend,
Pennsylvania officials took a proactive approach by reducing business
taxes to make the commonwealth more competitive in attracting businesses that
wish to relocate. One sector of the Pennsylvania economy that did demonstrate
growth in 2000 was technology, as venture capital investments in the
commonwealth increased 400% in the first half of the year. By the end of the
third quarter, the infusion of venture capital totaled approximately $345
million, which ranked the commonwealth 11th in the nation. Despite anticipated
growth in the high-tech, financial, insurance and real estate sectors,
Pennsylvania's overall economy is expected to slow further due to continued
weakness in housing and retail sales. However, even with the current slowdown,
the skill level of Pennsylvania's workforce has enabled personal income growth
to remain strong.
HOW DID THESE NUVEEN FUNDS
PERFORM OVER THE PAST 12 MONTHS?
For the 12 months ended December 31, 2000, the Nuveen Closed-End Exchange-Traded
Funds for New Jersey and Pennsylvania produced total returns on net asset value
(NAV) as shown in the accompanying table. The annual returns for the Lehman
Brothers Municipal Bond Index1 and the appropriate Lipper Peer Group2 are also
presented.
Market Total Return Lehman Lipper
Yield on NAV Total Return(1) Average(2)
----------------------------------------------------------------------
1 Year 1 Year 1 Year
Taxable- Ended Ended Ended
12/31/00 Equivalent(3) 12/31/00 12/31/00 12/31/00
----------------------------------------------------------------------
NQJ 5.81% 9.01% 12.11% 11.68% 17.85%
----------------------------------------------------------------------
NNJ 5.59% 8.67% 15.66% 11.68% 17.85%
----------------------------------------------------------------------
NQP 6.63 % 9.90% 10.82% 11.68% 15.70%
----------------------------------------------------------------------
NPY 6.03% 9.00% 16.26% 11.68% 15.70%
----------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Early in the year, as the Fed's interest rate hikes pushed yields higher,
municipal bond prices underwent a corresponding drop. Over the summer, however,
the tight supply of new municipal issues and generally favorable technicals
helped to prompt a shift in market outlook, rallying the municipal market and
boosting the prices of many bonds. The Funds' participation in the recovery of
the municipal market is reflected in the total returns on NAV listed in the
table on this page, which show dramatic improvement over the performance results
presented in the Funds' annual report last June.
WERE THE FUNDS' DIVIDENDS AFFECTED
BY THE MARKET ENVIRONMENT?
Over the past 12 months, NQJ's shorter duration4 helped to protect the Fund's
income stream in a changing interest rate environment. As of December 31, 2000,
this Fund had provided shareholders with 26 consecutive months of steady
dividends. The other three Funds, however, were less tolerant of interest rate
changes over the past 12 months. All four of the Funds covered in this report
use leverage as a way to potentially enhance the dividends paid to common
shareholders. The extent of this benefit is tied in part to the short-term rates
that the Funds pay their MuniPreferred(R) shareholders. When short-term rates
rise, the Funds must pay out more income to preferred shareholders, decreasing
the amount of income available for common shareholders.
As the Federal Reserve raised short-term rates between June 1999 and May 2000,
these increases had a corresponding impact on short-term municipal rates. In
Pennsylvania, the increase in short-term municipal rates was large enough to
cause a decrease in the common share dividends of NQP and NPY in June 2000. In
NNJ, the Fund's longer duration4 resulted in more portfolio impact from interest
rate movements and, ultimately, led to dividend cuts. Despite the dividend
adjustments in these three Funds, all of the Funds continued to provide
competitive market yields, as shown in the earlier table.
Recently, interest rate cuts by the Federal Reserve have helped cause the slope
of the municipal yield curve to become very steep. Lower rates for
shorter-maturity municipal securities could have beneficial effects on the
dividend stability of these leveraged Funds going forward by reducing the amount
the Funds pay their MuniPreferred(R) shareholders, which may leave more Fund
earnings to support common share dividends.
1 The Funds' performances are compared with that of the national Lehman Brothers
Municipal Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not reflect
any expenses.
2 The total returns of NQJ and NNJ are compared with the
average annualized return of the ten funds in the Lipper New Jersey Municipal
Debt Funds category, while the returns of NQP and NPY are compared with the
average return of the nine funds in the Lipper Pennsylvania category. Fund and
Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen fund on an
after-tax basis. The taxable-equivalent yield is based on the fund's market
yield on the indicated date and a federal income tax rate of 31% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: New Jersey 35.5% and Pennsylvania 33%.
4 Duration is a measure of a Fund`s NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a Fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
WHAT ABOUT THE FUNDS'
SHARE PRICE PERFORMANCE?
During the first part of 2000, uncertainties about inflation and interest rates,
coupled with investors' focus on equity market performance, tended to dampen
interest in most fixed-income products. The lack of demand put pressure on the
prices of many municipal bond investments. In recent months, as the bond market
showed signs of recovery and the stock market continued to be volatile, many
investors once again appeared to be considering tax-free fixed-income
alternatives. As a result, the share prices of these Funds generally improved
(see the charts on the individual Performance Overview pages).
As New Jersey investors recognized this opportunity, robust demand for NQJ moved
its discount (share price below NAV) to a premium (share price above NAV), while
NNJ's discount narrowed substantially over the past 12 months. Although we also
saw increased investor interest in Pennsylvania that helped support share
prices, demand lagged the rise in value of the bonds held by NQP and NPY,
leading to wider discounts on these two Funds by the end of 2000 than those of a
year earlier. With the market prices of NNJ, NQP, and NPY lower than the actual
value of the bonds in their portfolios, shareholders may want to consider taking
advantage of this opportunity to add to their holdings of their Nuveen Fund.
WHAT KEY STRATEGIES WERE USED TO
MANAGE THESE FUNDS DURING THE YEAR
ENDED DECEMBER 31, 2000?
Despite a slow start, the past year turned out to be generally positive for the
fixed-income markets, including municipal bonds. As evidenced by their strong
12-month total returns on NAV, these Nuveen Funds were well structured going
into this period. Given the tight supply of new issuance during 2000, we found
fewer opportunities to make trades that would substantially enhance the Funds'
holdings, especially in the Pennsylvania Funds. As opportunities did become
available in the market, we focused on strengthening long-term dividend-paying
capabilities, enhancing call protection, and purchasing bonds with the potential
to add value and diversification to the Funds' portfolios.
For example, in NQJ and NNJ, we recently leveraged our understanding of the
complexities of tobacco-backed bonds, gained through active participation in the
offerings of these types of bonds in New York, to purchase bonds issued by
Puerto Rico for the Children's Trust Fund. The proceeds from these tobacco
bonds, which are secured by Puerto Rico's share of payments under the $250
billion master settlement agreement between four major tobacco companies and 46
states in 1998, are earmarked for children's initiatives in this U.S.
commonwealth. These Aa3 rated bonds, which we purchased in late October, offered
attractive yields as well as federal and state income tax exemption. If prices
remain attractive, we plan to continue to add to our holdings of these bonds in
both New Jersey Funds, especially through purchases in the secondary market.
Over the past year, the Nuveen New Jersey Funds also added to their holdings of
New Jersey Turnpike Authority bonds, which we believe continued to provide
excellent performance potential. As a result of these additions, transportation
remained the largest sector holding in NNJ and the second largest in NQJ. Other
purchases over the past year also emphasized yield, including student loan
revenue bonds with maturities of 15-20 years and some lower investment-grade
healthcare bonds. This is an area where we rely on the expertise of Nuveen
research analysts, whose careful study enabled us to make the purchases that
should enhance Fund income streams over the long term.
In Pennsylvania, the healthcare sector remained challenging, as the situation
precipitated by the 1998 bankruptcy of the Allegheny Health and Education
Research Foundation (AHERF) continued to evolve. Neither NQP nor NPY owned any
AHERF-issued bonds during the period, and given the current environment in this
sector of the Pennsylvania market, both Funds
focused on simply maintaining their current positions. Overall, the low supply
of new issuance contributed to a relatively quiet year in the state's municipal
market and little turnover in the portfolios of the Nuveen Pennsylvania Funds.
All four Funds continued to offer excellent credit quality, with between 76% and
90% of their assets invested in bonds rated AAA/U.S. guaranteed and AA as of
December 31, 2000. The Funds also had allocations of BBB and non-rated bonds
that ranged from 3% to 9%, which generally provided higher yields over the past
year.
WHAT IS YOUR OUTLOOK FOR THESE NUVEEN FUNDS?
In general, our outlook for the fixed-income markets over the next 12 months is
positive. Current projections call for continued strong demand for municipal
bonds, while new municipal issuance nationwide in 2001 is expected to remain
under $200 billion. These supply-and-demand dynamics should continue to provide
support for the municipal market and municipal bond prices. We will, of course,
continue to closely monitor the economy, including the progress of proposed tax
reduction plans, and Federal Reserve policy in order to be prepared to respond
appropriately to any developing situations.
Looking specifically at these Nuveen Funds, both NNJ and NPY offer excellent
levels of call protection over the next two years, with a total of 12% and 17%,
respectively, of their portfolios subject to calls during 2001 and 2002. In
February 2001, both NQJ and NQP reach the 10-year anniversary of their
inceptions, a period when they will see the increased potential for bond calls
normally associated with that point of the bond market cycle. Over the next two
years, about 44% of NQJ's portfolio is scheduled to be called, while as much as
53% of NQP's portfolio could be affected, depending on market interest rates
during this time. In general, we believe these positions are very manageable,
and we foresee no problems in working through them.
While we cannot control the direction of interest rates, we continue to work to
reduce the Funds' call exposure and to actively manage the Funds to mitigate the
longer-term effects of the bond call process. In NQJ, these strategies include
selling pre-refunded bonds with short maturities and reinvesting the proceeds in
the longer end of the market. For NQP, municipal supply in Pennsylvania will
continue to play a role in our call protection strategies. Although it is still
early, we do not expect to see a large increase in issuance in this market in
2001. At the present time, we anticipate holding older bonds with higher yields
as long as possible to maximize tax-exempt income and then selling these bonds
as they approach their call dates when we can do so without impacting dividends
or total return performance.
In addition to bond calls, we plan to continue to focus on strengthening the
Funds' dividend-payment capabilities as market conditions allow. Depending on
the interest rate environment, bond calls in NQJ and NQP could create
opportunities to further enhance the structure of these Funds. As value-oriented
investors, we will continue to look for areas of the market that can add value
for our shareholders. We believe these Nuveen Funds will continue to serve as a
dependable source of tax-free income and portfolio diversification, two
essential elements of a comprehensive investment strategy.
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
Performance
OVERVIEW As of December 31, 2000
NQJ
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 2/91
--------------------------------------------------
Share Price $15 13/16
--------------------------------------------------
Net Asset Value $15.02
--------------------------------------------------
Market Yield 5.81%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.42%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)(1) 9.01%
--------------------------------------------------
Fund Net Assets ($000) $462,534
--------------------------------------------------
Average Effective Maturity (Years) 16.30
--------------------------------------------------
Leverage-Adjusted Duration 6.77
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 33.47% 12.11%
--------------------------------------------------
5-Year 6.52% 5.59%
--------------------------------------------------
Since Inception 6.94% 7.33%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S.Guaranteed 17%
--------------------------------------------------
Transportation 17%
--------------------------------------------------
Housing/Multifamily 12%
--------------------------------------------------
Healthcare 9%
--------------------------------------------------
Tax Obligation/General 8%
--------------------------------------------------
Bar Chart:
2000 Monthly Tax-Free Dividends Per Share
1/00 0.0765
2/00 0.0765
3/00 0.0765
4/00 0.0765
5/00 0.0765
6/00 0.0765
7/00 0.0765
8/00 0.0765
9/00 0.0765
10/00 0.0765
11/00 0.0765
12/00 0.0765
Line Chart:
Share Price Performance
1/7/00 13.06
13.06
13.06
13.75
13.88
14
13.56
13.5
13.63
13.31
13.19
13.38
13.88
13.75
13.63
13.38
13.44
13.5
13.5
13.69
13.56
14.13
14.63
14.5
14.19
14.06
14.06
14
14.19
14.44
14.81
14.5
14.75
15.13
15.19
14.94
14.56
14.38
14.56
14.75
14.5
14.31
14.25
14.75
15.13
14.56
14.63
14.94
14.75
15.38
12/31/00 15.81
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
31%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 35.5%.
Nuveen New Jersey Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of December 31, 2000
NNJ
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 12/92
--------------------------------------------------
Share Price $14 1/2
--------------------------------------------------
Net Asset Value $15.19
--------------------------------------------------
Market Yield 5.59%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.10%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)(1) 8.67%
--------------------------------------------------
Fund Net Assets ($000) $274,069
--------------------------------------------------
Average Effective Maturity (Years) 16.40
--------------------------------------------------
Leverage-Adjusted Duration 8.77
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 25.15% 15.66%
--------------------------------------------------
5-Year 7.90% 6.22%
--------------------------------------------------
Since Inception 5.48% 6.80%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Transportation 22%
--------------------------------------------------
Tax Obligation/Limited 15%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
Housing/Multifamily 10%
--------------------------------------------------
Water and Sewer 9%
--------------------------------------------------
2000 Monthly Tax-Free Dividends Per Share
1/00 0.072
2/00 0.072
3/00 0.07
4/00 0.07
5/00 0.07
6/00 0.0675
7/00 0.0675
8/00 0.0675
9/00 0.0675
10/00 0.0675
11/00 0.0675
12/00 0.0675
Share Price Performance
1/7/00 12.81
13
12.88
12.94
13.75
13.38
13.19
12.69
12.63
12.69
12.5
12.63
13.06
13.25
13
12.81
12.81
13.13
12.63
12.94
12.81
13.13
13.38
13.13
13.19
13.38
13.69
13.5
13.5
13.44
14.06
13.88
14.69
14.44
14.44
14.5
14.13
13.75
14
13.94
13.5
13.5
13.44
13.75
13.44
13.5
13.69
14
14.06
14.13
12/31/00 14.5
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
31%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 35.5%.
Nuveen Pennsylvania Investment Quality Municipal Fund
Performance
OVERVIEW As of December 31, 2000
NQP
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 2/91
--------------------------------------------------
Share Price $13 3/4
--------------------------------------------------
Net Asset Value $14.79
--------------------------------------------------
Market Yield 6.63%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.61%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)(1) 9.90%
--------------------------------------------------
Fund Net Assets ($000) $370,164
--------------------------------------------------
Average Effective Maturity (Years) 13.94
--------------------------------------------------
Leverage-Adjusted Duration 8.24
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 10.83% 10.82%
--------------------------------------------------
5-Year 2.00% 4.76%
--------------------------------------------------
Since Inception 5.71% 7.47%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S.Guaranteed 39%
--------------------------------------------------
Tax Obligation/General 14%
--------------------------------------------------
Housing/Single Family 10%
--------------------------------------------------
Education and Civic Organizations 10%
--------------------------------------------------
Transportation 6%
--------------------------------------------------
2000 Monthly Tax-Free Dividends Per Share
1/00 0.081
2/00 0.081
3/00 0.081
4/00 0.081
5/00 0.081
6/00 0.076
7/00 0.076
8/00 0.076
9/00 0.076
10/00 0.076
11/00 0.076
12/00 0.076
Share Price Performance
1/7/00 14.06
14
13.88
14.31
14.44
14
14
13.69
13.63
13.56
13.5
13.94
14.13
13.81
13.56
13.5
13.69
13.88
13.63
13.56
13.69
13.81
13.63
13.69
14
14.38
14.56
14.63
14.69
14.75
14.5
14.31
14.44
14.69
14.63
14.63
14.44
14.25
14.31
14.13
13.56
13.63
13.75
14
13.5
13.63
13.94
14
13.94
14
12/31/00 13.75
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
31%. 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 33%.
Nuveen Pennsylvania Premium Income Municipal Fund 2
Performance
OVERVIEW As of December 31, 2000
NPY
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 3/93
--------------------------------------------------
Share Price $12 15/16
--------------------------------------------------
Net Asset Value $14.41
--------------------------------------------------
Market Yield 6.03%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.74%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)(1) 9.00%
--------------------------------------------------
Fund Net Assets ($000) $344,994
--------------------------------------------------
Average Effective Maturity (Years) 18.95
--------------------------------------------------
Leverage-Adjusted Duration 10.58
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 14.97% 16.26%
--------------------------------------------------
5-Year 7.07% 5.96%
--------------------------------------------------
Since Inception 4.07% 6.04%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------
U.S.Guaranteed 14%
--------------------------------------------------
Utilities 13%
--------------------------------------------------
Healthcare 12%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
2000 Monthly Tax-Free Dividends Per Share2
1/00 0.0675
2/00 0.0675
3/00 0.0675
4/00 0.0675
5/00 0.0675
6/00 0.065
7/00 0.065
8/00 0.065
9/00 0.065
10/00 0.065
11/00 0.065
12/00 0.065
Share Price Performance
1/7/00 12.19
12.06
11.88
12.25
12.56
12.13
11.81
11.81
12
11.75
11.63
11.75
11.94
12.19
12.25
11.88
12.38
12
11.94
11.69
11.81
12.13
12.31
12.25
12.19
12.38
12.56
12.94
12.56
12.44
12.81
12.5
12.75
12.63
12.75
12.81
12.75
12.63
12.5
12.5
12.38
12.19
12.13
12.19
12.25
12.31
12.38
12.5
12.31
12.63
12/31/00 12.94
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
31%. 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 33%.
2 The Fund also paid shareholders a net ordinary income distribution in December
2000 of $0.0023 per share.
Shareholder
MEETING REPORT
The Shareholder Meeting was held in Chicago, Illinois on December 20, 2000.
NQJ NNJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS
REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Common Shares Shares Shares
Shares Series - M Series - TH Series - F Shares Series - T Series - W Series - TH
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 18,361,467 3,182 1,963 1,228 11,016,836 613 1,328 1,566
Withhold 229,775 3 1 -- 133,956 2 53 2
------------------------------------------------------------------------------------------------------------------------------------
Total 18,591,242 3,185 1,964 1,228 11,150,792 615 1,381 1,568
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 18,364,107 3,182 1,963 1,228 11,016,790 613 1,328 1,566
Withhold 227,135 3 1 -- 134,002 2 53 2
------------------------------------------------------------------------------------------------------------------------------------
Total 18,591,242 3,185 1,964 1,228 11,150,792 615 1,381 1,568
------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 18,360,127 3,182 1,963 1,228 11,017,506 613 1,328 1,566
Withhold 231,115 3 1 -- 133,286 2 53 2
------------------------------------------------------------------------------------------------------------------------------------
Total 18,591,242 3,185 1,964 1,228 11,150,792 615 1,381 1,568
------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers
For 18,367,232 3,182 1,963 1,228 11,015,614 613 1,328 1,566
Withhold 224,010 3 1 -- 135,178 2 53 2
------------------------------------------------------------------------------------------------------------------------------------
Total 18,591,242 3,185 1,964 1,228 11,150,792 615 1,381 1,568
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 18,359,416 3,182 1,963 1,228 11,017,057 613 1,328 1,566
Withhold 231,826 3 1 -- 133,735 2 53 2
------------------------------------------------------------------------------------------------------------------------------------
Total 18,591,242 3,185 1,964 1,228 11,150,792 615 1,381 1,568
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- 3,182 1,963 1,228 -- 613 1,328 1,566
Withhold -- 3 1 -- -- 2 53 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,185 1,964 1,228 -- 615 1,381 1,568
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For -- 3,182 1,963 1,228 -- 613 1,328 1,566
Withhold -- 3 1 -- -- 2 53 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,185 1,964 1,228 -- 615 1,381 1,568
------------------------------------------------------------------------------------------------------------------------------------
RATIFICATION OF AUDITORS WAS
REACHED AS FOLLOWS:
For 18,350,842 3,120 1,955 1,228 11,036,500 613 1,327 1,557
Against 123,661 41 1 -- 37,062 -- 1 --
Abstain 116,739 24 8 -- 77,230 2 53 11
------------------------------------------------------------------------------------------------------------------------------------
Total 18,591,242 3,185 1,964 1,228 11,150,792 615 1,381 1,568
------------------------------------------------------------------------------------------------------------------------------------
Shareholder
MEETING REPORT (continued)
NQP NPY
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS
REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Common Shares Shares Shares
Shares Series - T Series - W Series - TH Shares Series - M Series - TH Series - F
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 14,343,636 880 2,334 1,918 14,313,419 784 1,742 1,653
Withhold 190,615 -- 12 -- 144,339 -- 14 1
------------------------------------------------------------------------------------------------------------------------------------
Total 14,534,251 880 2,346 1,918 14,457,758 784 1,756 1,654
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 14,319,400 880 2,335 1,918 14,310,941 784 1,742 1,654
Withhold 214,851 -- 11 -- 146,817 -- 14 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,534,251 880 2,346 1,918 14,457,758 784 1,756 1,654
------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 14,307,229 880 2,335 1,918 14,304,844 784 1,742 1,654
Withhold 227,022 -- 11 -- 152,914 -- 14 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,534,251 880 2,346 1,918 14,457,758 784 1,756 1,654
------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers
For 14,319,201 880 2,335 1,918 14,312,568 784 1,742 1,654
Withhold 215,050 -- 11 -- 145,190 -- 14 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,534,251 880 2,346 1,918 14,457,758 784 1,756 1,654
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 14,325,890 880 2,334 1,918 14,310,455 784 1,742 1,653
Withhold 208,361 -- 12 -- 147,303 -- 14 1
------------------------------------------------------------------------------------------------------------------------------------
Total 14,534,251 880 2,346 1,918 14,457,758 784 1,756 1,654
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- 880 2,335 1,918 -- 784 1,742 1,654
Withhold -- -- 11 -- -- -- 14 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 880 2,346 1,918 -- 784 1,756 1,654
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For -- 880 2,335 1,918 -- 784 1,756 1,654
Withhold -- -- 11 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 880 2,346 1,918 -- 784 1,756 1,654
------------------------------------------------------------------------------------------------------------------------------------
RATIFICATION OF AUDITORS WAS
REACHED AS FOLLOWS:
For 14,388,200 880 2,346 1,862 14,317,654 713 1,742 1,654
Against 59,189 -- -- -- 30,231 -- 11 --
Abstain 86,862 -- -- 56 109,873 71 3 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,534,251 880 2,346 1,918 14,457,758 784 1,756 1,654
------------------------------------------------------------------------------------------------------------------------------------
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 1.4%
$ 6,250 The Pollution Control Financing Authority of Salem County, Waste 11/01 at 102 AA- $ 6,443,563
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 - 2.5%
6,600 The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, 7/10 at 100 Aa3 6,772,458
Series 2000, 5.750%, 7/01/20
5,000 New Jersey Economic Development Authority, Economic 12/01 at 100 N/R 5,019,600
Development Revenue Bonds (J & J Snack Foods Corporation
of New Jersey Project), Series 1991, 7.250%, 12/01/05
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.2%
4,390 New Jersey Higher Education Student Assistance Authority, 6/10 at 101 AAA 4,751,912
Student Loan Revenue Bonds, 2000 Series A, 6.125%, 6/01/17
(Alternative Minimum Tax)
2,900 New Jersey Economic Development Authority, School Revenue 2/08 at 101 N/R 2,825,992
Bonds (Gill/St. Bernard School), Series 1998, 6.000%, 2/01/25
1,575 New Jersey Educational Facilities Authority, Seton Hall 7/01 at 102 A- 1,629,322
University Project, Revenue Bonds,1991 Series (Project D),
7.000%, 7/01/21
New Jersey Educational Facilities Authority, Revenue Bonds,
Saint Peter's College Issue, 1998 Series B:
1,000 5.375%, 7/01/18 7/08 at 102 BBB 966,980
1,750 5.500%, 7/01/27 7/08 at 102 BBB 1,678,898
1,250 New Jersey Educational Facilities Authority, Seton Hall University 7/08 at 101 AAA 1,241,288
Project, Revenue Refunding Bonds, 1998 Series (Project F),
5.000%, 7/01/21
165 New Jersey Higher Education Assistance Authority, Senior 7/01 at 102 A 170,110
Student Loan Revenue Bonds, 1991 Series A, 7.200%, 7/01/09
(Alternative Minimum Tax)
5,520 New Jersey Higher Educational Assistance Authority, Student Loan 6/07 at 102 AAA 5,844,797
Revenue Bonds, Series 1997A (New Jersey Class Loan Program),
5.800%, 6/01/16 (Alternative Minimum Tax)
Rutgers, The State University of New Jersey, General Obligation
Refunding Bonds, 1992 Series A:
2,900 6.500%, 5/01/13 5/02 at 102 AA 3,033,023
1,725 6.500%, 5/01/18 5/02 at 102 AA 1,799,520
------------------------------------------------------------------------------------------------------------------------------------
Energy - 1.8%
8,000 Pollution Control Financing Authority of Middlesex County, 12/02 at 102 N/R 8,217,600
Pollution Control Revenue Refunding Bonds, Series 1992
(Amerada Hess Corporation Project), 6.875%, 12/01/22
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 9.0%
9,300 New Jersey Health Care Facilities Financing Authority, Revenue 7/01 at 102 AAA 9,604,017
Bonds, Centrastate Medical Center Issue, Series 1991A,
6.625%, 7/01/11
2,070 New Jersey Health Care Facilities Financing Authority, Revenue 7/01 at 102 AAA 2,133,901
Bonds, Robert Wood Johnson University Hospital Issue,
Series B, 6.625%, 7/01/16
4,350 New Jersey Health Care Facilities Financing Authority, Revenue 7/01 at 102 AAA 4,484,937
Bonds, Mercer Medical Center Issue, Series 1991, 6.500%, 7/01/10
New Jersey Health Care Facilities Financing Authority, Refunding
Revenue Bonds, Atlantic City Medical Center Issue, Series C:
3,600 6.800%, 7/01/05 7/02 at 102 A- 3,784,392
2,800 6.800%, 7/01/11 7/02 at 102 A- 2,932,524
2,535 New Jersey Health Care Facilities Financing Authority, Revenue 7/03 at 102 Baa2 2,387,919
Bonds, Deborah Heart and Lung Center Issue, Series of 1993,
6.200%, 7/01/13
4,320 New Jersey Health Care Facilities Financing Authority, Revenue 7/08 at 101 Aaa 4,271,098
and Refunding Bonds, Saint Barnabas Medical Center - West
Hudson Hospital Obligated Group Issue, Series 1998A,
5.000%, 7/01/23
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
$ 5,040 New Jersey Health Facilities Financing Authority, Revenue Bonds, 7/10 at 100 AAA $ 5,126,285
The Society of the Valley Obligated Group Issue, Series 2000,
5.375%, 7/01/31
2,000 New Jersey Health Facilities Financing Authority, Revenue 7/10 at 100 BBB 1,994,680
Bonds, Saint Peter's University Hospital Issue, Series 2000A,
6.875%, 7/01/20 (DD, settling 01/02/01)
1,200 New Jersey Health Care Facilities Financing Authority, Revenue 7/02 at 102 Baa3 1,240,740
Bonds, Palisades Medical Center Obligated Group Issue,
Series 1992, 7.500%, 7/01/06
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101 AAA 3,524,710
Bonds, Meridian Health System Obligated Group Issue,
Series 1999, 5.250%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 11.6%
3,790 Hudson County Improvement Authority, Multifamily Housing 6/04 at 100 AA 3,929,358
Revenue Bonds, Series 1992A (Conduit Financing - Observer
Park Project), 6.900%, 6/01/22 (Alternative Minimum Tax)
1,320 Housing Finance Corporation of the City of Long Branch, 4/01 at 100 N/R 1,326,389
Section 8 Assisted Housing Revenue Bonds (Washington Manor
Associates Ltd. - 1980 Elderly Project), 10.000%, 10/01/11
12,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/01 at 102 AAA 12,453,240
Housing Revenue Refunding Bonds, 1991 Series 1 (Presidential
Plaza at Newport Project - FHA-Insured Mortgages), 7.000%, 5/01/30
4,500 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/05 at 102 AAA 4,701,780
Housing Revenue Bonds, 1995 Series A, 6.000%, 11/01/14
4,500 New Jersey Housing Mortgage Finance Agency, Multifamily 5/06 at 102 AAA 4,659,975
Housing Revenue Bonds, 1996 Series A, 6.250%, 5/01/28
(Alternative Minimum Tax)
New Jersey Housing and Mortgage Finance Agency, Section 8 Bonds,
1991 Series A:
3,000 6.800%, 11/01/05 11/01 at 102 AA- 3,094,830
2,500 6.900%, 11/01/07 11/01 at 102 AA- 2,581,050
4,700 6.950%, 11/01/08 11/01 at 102 AA- 4,854,301
1,000 7.100%, 11/01/11 11/01 at 102 AA- 1,034,040
9,650 New Jersey Housing and Mortgage Finance Agency, Housing 5/02 at 102 A+ 10,079,522
Revenue Bonds, 1992 Series A, 6.950%, 11/01/13
1,810 New Jersey Housing and Mortgage Finance Agency, Housing 11/02 at 102 A+ 1,887,197
Revenue Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
2,743 Housing Authority of the City of Newark, Housing Revenue 10/09 at 102 Aaa 2,884,338
Bonds (GNMA Collateralized - Fairview Apartments Project),
2000 Series A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single-Family - 7.0%
3,550 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/01 at 102 AAA 3,609,605
Revenue Bonds, 1990 Series F-2, 6.300%, 4/01/25
(Alternative Minimum Tax)
2,580 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/05 at 101 1/2 AAA 2,699,196
Revenue Bonds, 1995 Series O, 6.350%, 10/01/27
(Alternative Minimum Tax)
4,415 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/07 at 101 1/2 AAA 4,588,774
Revenue Bonds, 1996 Series S, 6.050%, 10/01/28
(Alternative Minimum Tax)
10,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/07 at 101 1/2 AAA 10,352,000
Revenue Bonds, 1997 Series U, 5.850%, 4/01/29
(Alternative Minimum Tax)
10,325 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100 AAA 10,542,961
Revenue Bonds, 2000 Series CC, 5.875%, 10/01/31
(Alternative Minimum Tax)
710 Puerto Rico Housing Finance Corporation, Single Family Mortgage 10/01 at 102 AAA 729,724
Revenue Bonds (Portfolio One), Series C, 6.750%, 10/15/13
------------------------------------------------------------------------------------------------------------------------------------
Tax-Obligation/General - 8.1%
1,110 Township of East Brunswick, County of Middlesex, General Obligation 4/03 at 101 Aa2 1,131,134
Refunding Bonds, Series 1993, 5.125%, 4/01/13
County of Essex, General Obligation Refunding Bonds of 1996, Series A-1:
3,000 6.000%, 11/15/07 No Opt. Call Aaa 3,320,460
1,000 5.000%, 11/15/11 11/07 at 101 Aaa 1,038,520
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 2,320 City of Hoboken, Fiscal Year Adjustment General Obligation Bonds, No Opt. Call AAA $ 2,853,739
Series 1991, 8.900%, 8/01/06
5,250 Township of Howell, County of Monmouth, General Obligation 1/02 at 102 AAA 5,473,388
Refunding Bonds, Series 1991, 6.800%, 1/01/14
3,675 City of New Jersey, Fiscal Year Adjustment Bonds, Series B 1991, No Opt. Call AAA 4,392,654
8.400%, 5/15/06
1,000 Monmouth County Improvement Authority, Revenue Bonds, Series 7/07 at 101 AAA 1,063,750
1997 (Howell Township Board of Education Project),
5.800%, 7/15/17
2,000 Town of Morristown, County of Morris, General Obligation Refunding 8/05 at 102 AAA 2,197,120
Bonds, Series 1995, 6.500%, 8/01/19
5,000 State of New Jersey, General Obligation Bonds, Various Series, 8/02 at 101 1/2 AA+ 5,244,550
6.375%, 8/01/11
State of New Jersey, General Obligation Bonds, Series D:
4,000 5.750%, 2/15/06 No Opt. Call AA+ 4,287,880
5,000 6.000%, 2/15/11 No Opt. Call AA+ 5,650,000
900 Township of West Deptford, County of Gloucester, General 3/06 at 102 AAA 930,609
Obligation Bonds, Series of 1996, 5.250%, 3/01/14
------------------------------------------------------------------------------------------------------------------------------------
Tax-Obligation/Limited - 7.8%
3,320 The Atlantic County Improvement Authority, Egg Harbor Township 11/10 at 100 Aaa 3,392,210
Guaranteed Revenue Bonds, Series 2000 (The Egg Harbor Township
Golf Corporation Project), 5.400%, 11/01/30
1,000 The Board of Education of the Town of Dover, County of Morris, 12/01 at 100 AAA 1,019,330
Certificates of Participation, 6.600%, 6/01/11
10,000 The Essex County Improvement Authority, General Obligation 10/10 at 100 Aaa 10,953,800
Guaranteed Lease Revenue Bonds, Series 2000 (County
Correctional Facility Project), 6.000%, 10/01/25
2,535 The Board of Education of the Township of Mansfield, County 3/06 at 102 AAA 2,718,610
of Warren, Certificates of Participation, 5.900%, 3/01/15
4,000 The New Jersey Economic Development Authority, Lease Revenue 11/08 at 101 Aaa 3,797,080
Bonds, Series 1998 (Bergen County Administration Complex),
4.750%, 11/15/26
2,045 The New Jersey Sports and Exposition Authority, State Contract 3/02 at 102 AA 2,130,686
Bonds, 1992 Series A, 6.500%, 3/01/19
1,895 The North Bergen Township Municipal Utility Authority, Sewer No Opt. Call AAA 2,382,451
Revenue Refunding Bonds, Series 1993, 7.875%, 12/15/09
1,250 The Ocean County Utilities Authority, Wastewater Revenue 1/11 at 101 Aa2 1,254,725
Bonds, Refunding Series 2000, 5.000%, 1/01/18
4,000 The Passaic Valley Sewerage Commissioners, Sewer System 12/02 at 102 AAA 4,143,440
Bonds, Series D, 5.800%, 12/01/18
1,180 The Raritan Township Municipal Utilities Authority, Hunterdon 5/02 at 102 A+ 1,234,315
County (Secured by a Service Contract with the Township
of Raritan), Revenue Bonds, Series 1992 (Bank Qualified),
6.450%, 5/01/12
1,015 The South Toms River Sewerage Authority, Ocean County, Sewer 11/02 at 102 N/R 1,056,960
Refunding Revenue Bonds, Series 1992 (Bank-Qualified),
7.400%, 11/01/05
2,000 The Board of Education of the Township of West Orange, 10/09 at 101 Aaa 2,185,200
County of Essex, Certificates of Participation, 6.000%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 16.6%
3,275 Delaware River and Bay Authority, Revenue Bonds, Series 2000A, 1/10 at 101 AAA 3,483,356
5.750%, 1/01/29
7,000 Delaware River Port Authority, Revenue Bonds, Series 1995, 1/06 at 102 AAA 7,185,990
5.500%, 1/01/26
3,500 Delaware River Port Authority, Revenue Bonds, Series 1999, 1/10 at 100 AAA 3,723,685
5.750%, 1/01/22
3,000 New Jersey Economic Development Authority, Economic Development 11/01 at 102 Baa1 3,060,360
Bonds (American Airlines, Inc. Project), 7.100%, 11/01/31
(Alternative Minimum Tax)
3,000 New Jersey Highway Authority (Garden State Parkway), Senior 1/10 at 101 AA- 3,146,070
Parkway Revenue Refunding Bonds, 1999 Series, 5.625%, 1/01/30
3,065 New Jersey Highway Authority (Garden State Parkway), Senior 1/02 at 102 AA- 3,178,987
Parkway Revenue Refunding Bonds, 1992 Series, 6.250%, 1/01/14
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C:
$ 9,000 6.500%, 1/01/08 No Opt. Call AAA $ 10,183,860
2,100 6.500%, 1/01/16 No Opt. Call A- 2,437,470
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 2000A:
9,275 5.500%, 1/01/25 1/10 at 100 AAA 9,584,136
10,000 5.500%, 1/01/27 1/10 at 100 A- 10,296,900
3,150 The Port Authority of New York and New Jersey, Consolidated 7/04 at 101 AA- 3,286,521
Bonds, Ninety-Fifth Series, 6.125%, 7/15/29
(Alternative Minimum Tax)
4,300 The Port Authority of New York and New Jersey, Special Project 6/02 at 102 BBB- 4,481,589
Bonds, Series 1R (Delta Air Lines, Inc. Project - LaGuardia Airport
Passenger Terminal), 6.950%, 6/01/08
12,130 The Port Authority of New York and New Jersey, Special Project 12/07 at 100 AAA 12,616,656
Bonds, Series 6 (JFK International Air Terminal LLC Project),
5.750%, 12/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 16.6%
1,500 The Board of Education of the Township of Bedminster, County 3/01 at 102 A1*** 1,537,590
of Somerset, Certificates of Participation, 7.125%, 9/01/10
(Pre-refunded to 3/01/01)
7,000 The Bergen County Utilities Authority, 1992 Water Pollution 6/02 at 102 AAA 7,372,330
Control System Revenue Bonds, Series A, 6.500%,12/15/12
(Pre-refunded to 6/15/02)
7,800 County of Essex, Fiscal Year Adjustment Bonds, Series 1991, 12/01 at 101 AAA 8,053,656
6.500%, 12/01/11 (Pre-refunded to 12/01/01)
4,095 The Board of Education of the Township of Evesham, County 9/01 at 102 AAA 4,252,617
of Burlington, Certificates of Participation, 6.875%, 9/01/11
(Pre-refunded to 9/01/01)
3,500 The Monmouth County Improvement Authority, Sewage Facilities 2/01 at 102 AAA 3,578,190
Revenue Refunding Bonds, Series 1991, 6.750%, 2/01/13
(Pre-refunded to 2/01/01)
5,600 The New Jersey Economic Development Authority, Lease 3/02 at 102 AAA 5,887,000
Rental Bonds (Liberty State Park Project), 1992 Series,
6.800%, 3/15/22 (Pre-refunded to 3/15/02)
The New Jersey Health Care Facilities Financing Authority,
Refunding Revenue Bonds (Barnert Hospital - FHA-Insured
Mortgage), Series B:
90 6.750%, 8/01/11 (Pre-refunded to 2/01/01) 2/01 at 100 Aa2*** 90,212
220 6.750%, 8/01/11 (Pre-refunded to 2/01/01) 2/01 at 102 Aa2*** 224,902
2,845 6.800%, 8/01/19 (Pre-refunded to 2/01/01) 2/01 at 102 Aa2*** 2,908,500
4,875 The New Jersey Health Care Facilities Financing Authority, 7/01 at 102 AAA 5,040,263
Revenue Bonds, St. Peter's Medical Center Issue, Series E,
6.875%, 7/01/11 (Pre-refunded to 7/01/01)
5,025 The New Jersey Health Care Facilities Financing Authority, 7/01 at 102 N/R*** 5,186,755
Revenue Bonds, Pascack Valley Hospital Association Issue,
Series 1991, 6.700%, 7/01/11 (Pre-refunded to 7/01/01)
1,845 The New Jersey Health Care Facilities Financing Authority, 7/02 at 102 Baa3*** 1,942,711
Revenue Bonds, Palisades Medical Center Obligated Group
Issue, Series 1992, 7.500%, 7/01/06 (Pre-refunded to 7/01/02)
3,800 The New Jersey Economic Development Authority, Revenue 6/01 at 102 Aaa 3,923,082
Bonds (New Jersey Performing Arts Center Site Acquisition
Project), 1991 Series, 6.750%, 6/15/12 (Pre-refunded to 6/15/01)
State of New Jersey, General Obligation Bonds, Various Series:
8,200 6.750%, 9/15/07 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+*** 8,477,570
850 6.800%, 9/15/10 (Pre-refunded to 9/15/01) 9/01 at 101 1/2 AA+*** 879,053
400 The New Jersey Sports and Exposition Authority, State 3/02 at 102 AAA 418,820
Contract Bonds, 1992 Series A, 6.500%, 3/01/19
(Pre-refunded to 3/01/02)
435 The New Jersey Highway Authority (Garden State Parkway), 1/02 at 102 AA-*** 452,892
Senior Parkway Revenue Refunding Bonds, 1992 Series,
6.250%, 1/01/14 (Pre-refunded to 1/01/02)
7,500 The Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101 AAA 7,817,925
Obligation Bonds, 2000 Series A, 5.500%, 10/01/34
6,000 The Puerto Rico Electric Power Authority, Power Revenue 7/01 at 102 AAA 6,218,340
Bonds, Series P, 7.000%, 7/01/11 (Pre-refunded to 7/01/01)
2,450 University of Medicine and Dentistry of New Jersey, Revenue 12/01 at 102 AA-*** 2,552,410
Bonds, Series E, 6.500%, 12/01/18 (Pre-refunded to 12/01/01)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 4.9%
$ 3,700 Pollution Control Financing Authority of Camden County, 12/01 at 102 B2 $ 3,570,500
Solid Waste Disposal and Resource Recovery System Revenue
Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax)
3,500 Pollution Control Financing Authority of Camden County, 12/01 at 102 B2 3,378,830
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 - 7/01 at 103 A2 416,224
Fixed 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 1/2 AAA 6,365,071
Bond, Series FF, 5.250%, 7/01/13
5,000 Puerto Rico Electric Power Authority, Power Revenue Refunding No Opt. Call AAA 5,831,499
Bonds, Series Y, 7.000%, 7/01/07
3,000 Union County Utilities Authority, Solid Waste Facility Senior 6/08 at 101 AAA 2,903,639
Lease Revenue Bonds (Ogden Martin Systems of Union, Inc.
Lessee), Series 1998A, 5.000%, 6/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 6.3%
Cape May County Municipal Utilities Authority, Sewer Revenue
Refunding Bonds, Series 1992-A:
2,000 6.000%, 1/01/11 1/03 at 102 AAA 2,101,779
7,600 5.750%, 1/01/16 1/03 at 102 AAA 7,872,839
5,000 New Jersey Economic Development Authority, Water Facilities No Opt. Call N/R 5,005,499
Revenue Bonds (New Jersey-American Water Company,
Inc. Project), Series 1991, 7.400%, 11/01/01
(Alternative Minimum Tax)
7,500 New Jersey Economic Development Authority, Water Facilities 5/06 at 102 AAA 7,957,799
Revenue Bonds (New Jersey-American Water Company, Inc.
Project), Series 1996, 6.000%, 5/01/36 (Alternative Minimum Tax)
6,250 New Jersey Economic Development Authority, Water Facilities 7/08 at 102 AAA 6,204,312
Revenue Bonds (New Jersey-American Water Company, Inc.
Project), Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 438,053 Total Investments (cost $437,035,382) - 98.8% 456,829,546
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 5,704,207
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 462,533,753
--------------------------------------------------------------------------------------------------------------------
* 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. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
See accompanying notes to financial statements.
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 0.3%
$ 820 New Jersey Economic Development Authority, Economic Growth 12/03 at 102 Aa3 $ 848,093
Bonds, Composite Issue,1992 Second Series T, 5.300%,12/01/07
(Alternative Minimum Tax)
----------------%-------------------------------------------------------------------------------------------------------------------
Consumer Staples - 2.5%
6,600 The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, 7/10 at 100 Aa3 6,772,458
Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 10.7%
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 3,400,819
2,140 6.000%, 6/01/15 (Alternative Minimum Tax) 6/10 at 101 AAA 2,300,393
3,370 New Jersey Economic Development Authority, Economic No Opt. Call N/R 3,717,616
Development Bonds (Yeshiva Ktana of Passaic - 1992 Project),
8.000%, 9/15/18
3,000 New Jersey Economic Development Authority, School Revenue 2/08 at 101 N/R 2,923,440
Bonds (Gill/St. Bernard School), Series 1998, 6.000%, 2/01/25
755 New Jersey Educational Facilities Authority, Revenue Bonds, 1/01 at 100 A 756,404
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
2,095 New Jersey Educational Facilities Authority, Refunding Revenue 7/02 at 102 AAA 2,189,128
Bonds, Trenton State College Issue, Series 1992E, 6.000%, 7/01/09
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/04 at 102 AAA 1,055,730
New Jersey Institute of Technology Issue, Series 1994A,
6.000%, 7/01/24
3,330 New Jersey Educational Facilities Authority, Revenue Bonds, 7/06 at 101 AAA 3,493,636
Montclair State University Issue, Series 1996C (Dormitory/
Cafeteria Facility), 5.400%, 7/01/12
2,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/06 at 101 AAA 2,671,025
Rowan College of New Jersey Issue, Series 1996E, 6.000%, 7/01/21
2,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/10 at 100 AAA 2,635,225
Princeton University Issue, Series 2000E, 5.500%, 7/01/17
605 New Jersey Higher Education Assistance Authority, Student Loan 7/02 at 102 A+ 627,282
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 Loan 6/09 at 101 AAA 3,679,166
Revenue Bonds, 1999 Series A, 5.250%, 6/01/18
(Alternative Minimum Tax) (DD, settling 01/02/01)
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 5.8%
795 New Jersey Health Care Facilities Financing Authority, Refunding 8/04 at 102 AAA 850,507
Revenue Bonds, Wayne General Hospital Corp. Issue
(FHA-Insured Mortgage), Series B, 5.750%, 8/01/11
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/04 at 102 AAA 2,170,000
Bonds, Monmouth Medical Center Issue, Series C, 6.250%, 7/01/16
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 1,082,792
800 7.000%, 7/01/04 No Opt. Call AAA 872,448
1,900 New Jersey Health Care Facilities Financing Authority, Revenue 1/10 at 101 A3 1,977,539
Bonds, Hackensack University Medical Center Issue,
Series 2000, 6.000%, 1/01/34
2,000 New Jersey Health Facilities Financing Authority, Revenue Bonds, 7/10 at 100 AAA 2,158,700
The Society of the Valley Obligated Group Issue, Series 2000,
5.750%, 7/01/15
7,000 Puerto Rico Industrial, Medical, Educational and Environmental 12/03 at 103 A2 6,835,010
Pollution Control Facilities Financing Authority, Adjustable
Rate Industrial Revenue Bonds, 1983 Series A (American Home
Products Corporation), 5.100%, 12/01/18
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 10.3%
$ 800 Housing Finance Corporation of the City of Long Branch, 4/01 at 100 N/R $ 803,872
Section 8 Assisted Housing Revenue Bonds (Washington Manor
Associates Ltd. - 1980 Elderly Project), 10.000%, 10/01/11
4,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/01 at 102 AAA 4,151,080
Housing Revenue Refunding Bonds (Presidential Plaza at
Newport Project - FHA-Insured Mortgages), 1991 Series 1,
7.000%, 5/01/30
2,875 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/05 at 102 AAA 3,003,915
Housing Revenue Bonds, 1995 Series A, 6.000%, 11/01/14
7,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101 1/2 AAA 7,052,920
Housing Revenue Bonds, 1997 Series A, 5.550%, 5/01/27
(Alternative Minimum Tax)
New Jersey Housing and Mortgage Finance Agency, Housing Revenue
Bonds, 1992 Series A:
2,365 6.700%, 5/01/05 5/02 at 102 A+ 2,454,870
8,000 6.950%, 11/01/13 5/02 at 102 A+ 8,356,080
2,370 New Jersey Housing and Mortgage Finance Agency, Housing 11/02 at 102 A+ 2,471,081
Revenue Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.2%
1,000 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101 1/2 AAA 1,042,580
Home Buyer Revenue Bonds, 1995 Series O, 6.300%, 10/01/23
(Alternative Minimum Tax)
525 New Jersey Housing and Mortgage Finance Agency, 4/06 at 101 1/2 AAA 544,667
Home Buyer Revenue Bonds, 1996 Series P, 5.650%, 4/01/14
6,130 New Jersey Housing and Mortgage Finance Agency, 4/07 at 101 1/2 AAA 6,371,277
Home Buyer Revenue Bonds, 1996 Series S, 6.050%, 10/01/28
(Alternative Minimum Tax)
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Revenue Bonds, 1997 Series U:
1,965 5.700%, 10/01/14 (Alternative Minimum Tax) 10/07 at 101 1/2 AAA 2,065,962
1,500 5.850%, 4/01/29 (Alternative Minimum Tax) 10/07 at 101 1/2 AAA 1,552,800
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.3%
3,255 New Jersey Economic Development Authority (Morris Hall/ 4/03 at 103 A+ 3,427,190
St. Lawrence, Inc. Project), Series 1993A, 6.150%, 4/01/13
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 8.5%
State of New Jersey, General Obligation Bonds, Series D:
2,760 5.750%, 2/15/06 No Opt. Call AA+ 2,958,637
4,000 5.800%, 2/15/07 No Opt. Call AA+ 4,336,800
2,500 6.000%, 2/15/11 No Opt. Call AA+ 2,825,000
1,560 6.000%, 2/15/13 No Opt. Call AA+ 1,768,182
4,000 County of Passaic, General Improvement Refunding Bonds, No Opt. Call AAA 4,222,960
Series 1993, 5.125%, 9/01/12
5,000 Commonwealth of Puerto Rico, Public Improvement Refunding 7/05 at 101 1/2 AAA 5,239,550
Bonds of 1995, Obligation Bonds, 5.750%, 7/01/24
1,800 Township of Woodbridge, County of Middlesex, Sewer Utility 7/09 at 102 Aaa 1,843,560
Bonds, Series 1999, 5.300%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 14.4%
1,275 Camden County Improvement Authority, County Guaranteed Lease 10/05 at 102 AAA 1,334,606
Revenue Bonds, Series of 1995, 5.625%, 10/01/15
1,000 Hudson County Improvement Authority, Utility System Revenue 1/08 at 101 1/2 AAA 1,018,090
Bonds, Series 1997 (Harrison Franchise Acquisition Project),
5.350%, 1/01/27
2,250 New Jersey State Building Authority, State Building Revenue Bonds, 6/10 at 100 AA 2,270,093
Series 2000A, 5.125%, 6/15/20
2,000 New Jersey Economic Development Authority, Lease Revenue Bonds, 11/08 at 101 Aaa 1,898,540
Series 1998 (Bergen County Administration Complex),
4.750%, 11/15/26
1,000 New Jersey Economic Development Authority, Revenue Bonds, 8/03 at 102 AAA 1,034,930
Series 1993 (Public Schools Small Project Loan Program),
5.400%, 8/15/12
1,500 New Jersey Economic Development Authority, Market Transition No Opt. Call AAA 1,635,330
Facility Senior Lien Revenue Bonds, Series 1994A, 7.000%, 7/01/04
2,000 New Jersey Transit Corporation, Federal Transit Administration 9/09 at 100 AAA 2,211,420
Grants, Certificates of Participation, Series 2000A, 6.125%, 9/15/15
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, 1995 Series A:
$ 500 5.500%, 6/15/12 6/05 at 102 AAA $ 527,610
5,000 5.000%, 6/15/15 6/05 at 102 AAA 5,056,250
1,100 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102 AAA 1,146,343
System Bonds, 1995 Series B, 5.500%, 6/15/15
1,040 Passaic Valley Sewerage Commissioners, Sewer System Bonds, 12/02 at 102 AAA 1,084,793
Series D, 5.750%, 12/01/10
510 The Board of Education of the Township of Piscataway, County of 6/03 at 102 AAA 530,038
Middlesex, Certificates of Participation, 1993 Series,
5.375%, 12/15/10
8,160 Puerto Rico Public Building Authority, Public Education and 7/03 at 101 1/2 A 8,483,952
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, Revenue Bonds, 8/09 at 101 AAA 7,994,625
1999 Series A, 5.500%, 8/01/17
1,000 Stony Brook Regional Sewerage Authority, Revenue Refunding No Opt. Call AA- 1,086,980
Bonds, 1993 Series B, 5.450%, 12/01/12
2,250 Western Monmouth Utilities Authority, Revenue Refunding 2/05 at 102 AAA 2,362,005
Bonds, 1995 Series A, 5.600%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 22.0%
5,000 Delaware River Port Authority, Port District Project Bonds, 1/08 at 101 AAA 5,014,700
Series B of 1998, 5.000%, 1/01/19
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C:
1,000 6.500%, 1/01/08 No Opt. Call A- 1,118,080
2,185 6.500%, 1/01/16 No Opt. Call AAA 2,569,014
3,505 6.500%, 1/01/16 No Opt. Call AAA 4,121,004
8,420 6.500%, 1/01/16 No Opt. Call A- 9,773,094
2,495 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 1/10 at 100 AAA 2,578,158
Series 2000A, 5.500%, 1/01/25
3,000 The Port Authority of New York and New Jersey, Consolidated 10/04 at 101 AAA 3,214,260
Bonds, Ninety Sixth Series, 6.600%, 10/01/23
(Alternative Minimum Tax)
The Port Authority of New York and New Jersey, Consolidated
Bonds, Ninety Ninth Series:
1,200 5.750%, 11/01/09 (Alternative Minimum Tax) 5/05 at 101 AAA 1,268,100
2,500 5.750%, 11/01/14 (Alternative Minimum Tax) 5/05 at 101 AAA 2,611,700
1,500 The Port Authority of New York and New Jersey, Consolidated 7/06 at 101 AA- 1,583,205
Bonds, One Hundred Sixth Series, 6.000%, 7/01/16
(Alternative Minimum Tax)
2,500 The Port Authority of New York and New Jersey, Consolidated 6/05 at 101 AAA 2,610,950
Bonds, One Hundredth Series, 5.750%, 12/15/20
2,000 The Port Authority of New York and New Jersey, Consolidated 6/05 at 101 AA- 2,035,340
Bonds, One Hundred Twelfth Series, 5.250%, 12/01/13
(Alternative Minimum Tax)
The 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 AAA 10,530,400
11,000 5.750%, 12/01/25 (Alternative Minimum Tax) 12/07 at 100 AAA 11,441,320
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 6.5%
1,000 Essex County Utilities Authority, Solid Waste System Revenue 4/06 at 102 AAA 1,081,660
Bonds (Secured by a County Deficiency Agreement with the
County of Essex), 5.600%, 4/01/16 (Pre-refunded to 4/01/06)
New Jersey Educational Facilities Authority, Revenue Bonds,
Trenton State College Issue, Series 1996A:
4,000 5.100%, 7/01/21 (Pre-refunded to 7/01/06) 7/06 at 101 AAA 4,208,120
3,750 5.125%, 7/01/24 (Pre-refunded to 7/01/06) 7/06 at 101 AAA 3,949,688
1,115 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 1,209,942
1984 Series, 10.375%, 1/01/03
3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/02 at 101 1/2 AAA 3,676,295
Series R, 6.250%, 7/01/17 (Pre-refunded to 7/01/02)
Sparta Township School District, General Obligation Bonds
(Unlimited Tax):
1,100 5.800%, 9/01/19 (Pre-refunded to 9/01/06) 9/06 at 100 AAA 1,188,231
1,100 5.800%, 9/01/20 (Pre-refunded to 9/01/06) 9/06 at 100 AAA 1,188,231
1,100 5.800%, 9/01/21 (Pre-refunded to 9/01/06) 9/06 at 100 AAA 1,188,231
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 3.7%
$ 2,310 Pollution Control Financing Authority of Camden County, No Opt. Call B2 $ 2,283,320
Solid Waste Disposal and Resource Recovery System Revenue
Bonds, Series 1991C, 7.125%, 12/01/01 (Alternative Minimum Tax)
5,890 Pollution Control Financing Authority of Camden County, 12/01 at 102 B2 5,586,194
Solid Waste Disposal and Resource Recovery System Revenue
Bonds, Series 1991D, 7.250%, 12/01/10
2,000 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101 1/2 AAA 2,139,520
Bonds, Series FF, 5.250%, 7/01/13
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 8.5%
5,250 Cape May County Municipal Utilities Authority, Sewer Revenue 1/03 at 102 AAA 5,438,475
Refunding Bonds, Series 1992-A, 5.750%, 1/01/16
1,000 Jersey City Sewerage Authority, Sewer Revenue Refunding Bonds, No Opt. Call AAA 1,159,620
Series 1993, 6.250%, 1/01/14
1,485 New Jersey Economic Development Authority, Water Facilities 8/01 at 102 A+ 1,529,684
Refunding Bonds (Elizabeth Water Company Project), 1991 Series A,
6.700%, 8/01/21 (Alternative Minimum Tax)
3,100 New Jersey Economic Development Authority, Water Facilities 3/04 at 102 AAA 3,224,806
Revenue Refunding Bonds (Hackensack Water Company Project),
1994 Series B, 5.900%, 3/01/24 (Alternative Minimum Tax)
3,250 New Jersey Economic Development Authority, Water Facilities 7/08 at 102 AAA 3,226,242
Revenue Bonds (New Jersey-American Water Company, Inc.
Project), Series 1998A, 5.250%, 7/01/38 (Alternative Minimum Tax)
7,000 North Hudson Sewerage Authority, Sewer Revenue Bonds, 8/06 at 101 AAA 7,034,649
Series 1996, 5.125%, 8/01/22
1,500 Wanaque Valley Regional Sewerage Authority, Passaic County, No Opt. Call AAA 1,661,729
Sewer Revenue Refunding Bonds, 1993 Series B, Insured,
5.750%, 9/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 258,290 Total Investments (cost $256,744,651) - 98.7% 270,629,961
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 3,438,982
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 274,068,943
--------------------------------------------------------------------------------------------------------------------
* 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) Portion of security purchased on a delayed delivery
basis.
See accompanying notes to financial statements.
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals - 2.1%
$ 12,150 Pennsylvania Economic Development Finance Authority, Solid Waste 6/09 at 102 BBB $ 7,950,960
Disposal Revenue Bonds (USG Corporation Project), Series 1999,
6.000%, 6/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 9.9%
2,000 Allegheny County Higher Education Building Authority, College 9/08 at 102 BBB 1,831,660
Revenue Bonds, Series A of 1998 (Chatham College), 5.250%, 9/01/18
3,000 Delaware County Authority, College Revenue Bonds, Series of 2000 11/10 at 101 AA 3,180,360
(Haverford College), 5.750%, 11/15/29
1,030 Delaware County Authority, University Revenue Bonds, 8/01 at 100 AAA 1,044,894
Series of 1991 (Villanova University), 6.900%, 8/01/16
1,000 The General Municipal Authority of the Borough of Harveys Lake, 11/09 at 100 A 1,046,300
College Revenue Bonds, Series of 1999 (College Misericordia
Project), 6.000%, 5/01/19
1,450 Indiana County Industrial Development Authority, Revenue Bonds, 11/06 at 100 AAA 1,496,792
Series 1999A (The Student Cooperative Association, Inc. - Indiana
University of Pennsylvania Student Union Project), 5.875%, 11/01/29
Indiana County Industrial Development Authority, Revenue Bonds,
Series 1999B (The Student Cooperative Association, Inc. - Indiana
University of Pennsylvania Student Union Project):
815 0.000%, 11/01/15 No Opt. Call AAA 385,462
815 0.000%, 11/01/16 No Opt. Call AAA 363,677
815 0.000%, 11/01/17 No Opt. Call AAA 342,789
815 0.000%, 11/01/18 No Opt. Call AAA 322,789
815 0.000%, 11/01/19 No Opt. Call AAA 303,653
2,750 Northeastern Pennsylvania Hospital and Education Authority, 10/08 at 100 AAA 2,560,278
Luzerne County, School Revenue Bonds, Series of 1998
(Wyoming Seminary Project), 4.750%, 10/01/28
4,000 Pennsylvania Higher Education Assistance Agency, Student Loan 9/01 at 102 AAA 4,271,040
Revenue Bonds, Fixed Rate Bonds, 1991 Series C, 7.150%, 9/01/21
(Alternative Minimum Tax)
3,000 Pennsylvania Higher Education Assistance Agency, Student Loan 9/02 at 102 AAA 3,111,990
Revenue Bonds, Fixed Rate Bonds, 1992 Series C, 6.400%, 3/01/22
(Alternative Minimum Tax)
3,825 Pennsylvania State University Bonds, Refunding Bonds, 3/01 at 102 AA- 3,976,508
Series 1992, 6.250%, 3/01/11
2,900 Scranton-Lackawanna Health and Welfare Authority, University 3/02 at 102 A- 3,013,042
Revenue Bonds (University of Scranton Project), 1992 Series A,
6.500%, 3/01/13
8,445 Swarthmore Borough Authority, College Revenue Bonds, 9/08 at 100 Aaa 8,195,450
Series of 1998 (Swarthmore College), 5.000%, 9/15/28
340 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at 102 N/R 359,751
College Revenue Bonds, Refunding Series B of 1992 (Misericordia
College), 7.750%, 12/01/12
645 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at 102 N/R 697,677
College Revenue Bonds, Refunding Series A of 1992 (Misericordia
College), 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 2.5%
3,520 Hospitals and Higher Education Facilities Authority of Philadelphia, 12/01 at 102 AAA 3,672,486
Hospital Revenue Refunding Bonds, Series of 1991 (Magee
Rehabilitation Hospital Project), 7.000%, 12/01/10
5,500 Health Care Facilities Authority of Sayre, Variable Rate Hospital 6/01 at 103 AAA 5,722,585
Revenue Bonds (VHA of Pennsylvania, Inc. - Capital Asset
Financing Program), Series of 1985E (Guthrie Healthcare System
Conversion), 7.200%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 0.3%
990 Urban Redevelopment Authority of Pittsburgh, Redevelopment 2/02 at 102 A 1,019,502
Mortgage Revenue Bonds, 1992 Series C, 7.125%, 8/01/13
(Alternative Minimum Tax)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 10.4%
$ 1,995 Allegheny County Residential Finance Authority, Single Family 11/08 at 102 Aaa $ 1,942,532
Mortgage Revenue Bonds, 1998 Series DD-2, 5.400%, 11/01/29
(Alternative Minimum Tax)
9,550 Allegheny County Residential Finance Authority, Single Family No Opt. Call Aaa 1,520,265
Mortgage Revenue Bonds, 1994 Series Z, 0.000%, 5/01/27
(Alternative Minimum Tax)
50 Redevelopment Authority of the City of Altoona, Home Improvement 12/01 at 102 A3 51,466
Loan Revenue Bonds, Series of 1991 (Cities of Altoona and
Meadville Program) (FHA-Title1-Insured Loans), 7.150%, 12/01/09
(Alternative Minimum Tax)
1,405 Redevelopment Authority of the County of Berks, Senior Single No Opt. Call A+ 1,486,729
Family Mortgage Revenue Bonds, 1986 Series A,
8.000%, 12/01/17 (Alternative Minimum Tax)
3,195 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/02 at 102 AA+ 3,331,107
Revenue Bonds, Series 1992-33, 6.900%, 4/01/17
1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/02 at 102 AA+ 1,036,770
Revenue Bonds, Series 1992-34B, 7.000%, 4/01/24
(Alternative Minimum Tax)
2,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/05 at 102 AA+ 2,099,040
Revenue Bonds, Series 1995-46, 6.200%, 10/01/14
(Alternative Minimum Tax)
1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 1,028,720
Revenue Bonds, Series 1996-48, 6.150%, 4/01/25
(Alternative Minimum Tax)
5,725 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 5,990,468
Revenue Bonds, Series 1996-49, 6.450%, 4/01/25
(Alternative Minimum Tax)
4,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 4,183,720
Revenue Bonds, Series 1996-50B, 6.350%, 10/01/27
(Alternative Minimum Tax)
5,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 5,182,050
Revenue Bonds, Series 1996-52B, 6.250%, 10/01/24
(Alternative Minimum Tax)
5,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/07 at 101 1/2 AA+ 5,061,200
Revenue Bonds, Series 1997-59A, 5.750%, 10/01/23
(Alternative Minimum Tax)
1,475 Urban Redevelopment Authority of Pittsburgh, Mortgage 4/06 at 102 AAA 1,521,109
Revenue Bonds, 1996 Series C, 6.550%, 4/01/28
(Alternative Minimum Tax)
1,095 Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue 4/07 at 102 AAA 1,141,417
Bonds, 1997 Series A, 6.250%, 10/01/28 (Alternative Minimum Tax)
2,865 Urban Redevelopment Authority of Pittsburgh, Mortgage Revenue 10/01 at 102 AAA 2,932,700
Bonds, 1991 Series G, 7.050%, 4/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care-- 0.9%
3,225 Montgomery County Higher Education and Health Authority, 1/06 at 101 BBB 2,904,758
Mortgage Revenue Bonds, Series 1996 (Waverly Heights Project),
6.375%, 1/01/26
485 The Hospitals and Higher Education Facilities Authority of Philadelphia, 8/02 at 102 A+ 504,153
Hospital Revenue Bonds, Series 1992A (Children's Seashore
House), 7.000%, 8/15/03
------------------------------------------------------------------------------------------------------------------------------------
Tax-Obligation/General---13.7%
3,550 County of Alleghney, General Obligation Bonds, Series 52, 5/11 at 100 AAA 3,559,585
5.250%, 11/01/23 (DD, settling 01/02/01)
3,120 County of Allegheny, General Obligation Refunding Bonds, 5/11 at 100 AAA 3,158,282
Series C-53, 5.250%, 11/01/20 (DD, settling 01/02/01)
2,000 Canon-McMillan School District, Washington County, General No Opt. Call AAA 524,920
Obligation Bonds, 0.000%, 12/01/25 (WI, settling 01/03/01)
Redevelopment Authority of the City of Harrisburg, Dauphin
County, Guaranteed Revenue Bonds, Series B of 1998:
2,750 0.000%, 5/01/24 5/16 at 68 1/32 AAA 756,030
2,750 0.000%, 11/01/24 5/16 at 66 5/16 AAA 735,405
5,160 0.000%, 5/01/25 5/16 at 64 9/16 AAA 1,342,219
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Mckeesport Area School District, Allegheny County, General Obligation
Bonds, Series of 1999C:
$ 3,430 0.000%, 10/01/23 No Opt. Call AAA $ 1,017,990
3,380 0.000%, 10/01/24 No Opt. Call AAA 948,834
3,420 0.000%, 10/01/25 No Opt. Call AAA 910,062
2,340 0.000%, 10/01/26 No Opt. Call AAA 588,767
2,340 0.000%, 10/01/27 No Opt. Call AAA 557,037
2,340 0.000%, 10/01/29 No Opt. Call AAA 498,537
7,500 County of Montgomery, General Obligation Bonds, Series 1999, 7/09 at 100 Aaa 7,292,550
5.000%, 7/15/24
6,000 Commonwealth of Pennsylvania, General Obligation Bonds, 3/02 at 101 1/2 AA 6,228,960
First Series of 1992, 6.375%, 9/15/11
15,000 The School District of Philadelphia, General Obligation Bonds, 9/05 at 101 AAA 15,287,850
Series B of 1995, 5.500%, 9/01/25
5,000 State Public School Building Authority, School Revenue Bonds 3/01 at 100 AAA 5,019,250
(Hazelton Area School District Project), Series J of 1991,
6.500%, 3/01/08
2,000 Sto-Rox School District, Allegheny County, General Obligation 12/10 at 100 AAA 2,124,780
Bonds, Series 2000, 5.800%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 5.1%
4,390 Fairview Township Authority, York County, Guaranteed Sewer 11/01 at 100 AAA 4,472,927
Revenue Bonds, Series of 1991, 6.700%, 11/01/21
9,225 Pennsylvania Intergovernmental Cooperation Authority, 6/09 at 100 AAA 8,719,378
Special Tax Revenue Refunding Bonds (City of Philadelphia
Funding Program), Series of 1999, 4.750%, 6/15/23
3,500 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/08 at 100 AAA 3,266,305
Revenue Bonds, Series A of 1998, 4.750%, 12/01/27
1,090 Urban Redevelopment Authority of Pittsburgh, Tax Increment 11/09 at 100 A2 1,135,028
Bonds (Center Triangle Tax Increment Financing District -
PNC Bank Corp. Project), Series A of 1999, 6.100%, 5/01/19
1,200 Southeastern Pennsylvania Transportation Authority, Special 3/09 at 101 AAA 1,114,836
Revenue Bonds, Series A of 1999, 4.750%, 3/01/29
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 6.0%
2,500 County of Allegheny, Airport Revenue Bonds, Series 1992A 1/02 at 102 AAA 2,599,100
and 1992B (Greater Pittsburgh International Airport),
6.625%, 1/01/22 (Alternative Minimum Tax)
2,000 Lehigh-Northampton Airport Authority, Lehigh Valley Airport 5/10 at 100 Aaa 2,110,580
System, Airport Revenue Bonds, Series 2000A, 6.000%, 5/15/30
(Alternative Minimum Tax)
1,650 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/01 at 102 AA- 1,712,832
Series N of 1991, 6.500%, 12/01/13
735 Pennsylvania Turnpike Commission, Revenue Bonds, Series O 12/02 at 102 AAA 749,355
of 1992, 5.500%, 12/01/17
Philadelphia Authority for Industrial Development, Airport
Revenue Bonds, Series 1998A (Philadelphia Airport System
Project):
7,315 5.000%, 7/01/23 (Alternative Minimum Tax) 7/08 at 101 AAA 6,950,128
5,085 5.125%, 7/01/28 (Alternative Minimum Tax) 7/08 at 101 AAA 4,864,769
3,250 Philadelphia Parking Authority, Airport Parking Revenue Bonds, 9/09 at 101 AAA 3,256,338
Series of 1999, 5.250%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 39.3%
6,300 Allegheny County Hospital Development Authority, Hospital 10/01 at 100 BBB+*** 6,439,545
Revenue Bonds, Series 1991A (St. Margaret Memorial Hospital),
7.125%, 10/01/21 (Pre-refunded to 10/01/01)
1,355 Bensalem Township School District, Bucks County, General 7/06 at 100 AAA 1,465,582
Obligation Bonds, Series of 1996, 5.850%, 7/15/12
(Pre-refunded to 7/15/06)
Bethlehem Authority, Northampton and Lehigh Counties,
Water Revenue Bonds, Series of 1992:
3,045 6.250%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 100 AAA 3,104,926
4,000 6.250%, 11/15/21 (Pre-refunded to 11/15/01) 11/01 at 100 AAA 4,078,720
5,000 Butler County Hospital Authority, Hospital Revenue Bonds, 6/01 at 102 AAA 5,160,700
Series 1991A (North Hills Passavant Hospital), 7.000%, 6/01/22
(Pre-refunded to 6/01/01)
3,470 Delaware County Authority, University Revenue Bonds, 8/01 at 100 AAA 3,529,233
Series of 1991 (Villanova University), 6.900%, 8/01/16
(Pre-refunded to 8/01/01)
3,400 Erie County Hospital Authority, Hospital Revenue Bonds, 2/01 at 102 AAA 3,480,716
1991 Series A (Hamot Medical Center), 7.100%, 2/15/10
(Pre-refunded to 2/15/01)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
$ 2,000 Hampton Township School District, Allegheny County, General 11/04 at 100 AAA $ 2,187,000
Obligation Bonds, Series of 1995, 6.750%, 11/15/21
(Pre-refunded to 11/15/04)
3,400 Lehigh County General Purpose Authority, College Revenue Bonds, 6/02 at 100 AAA 3,529,132
Series of 1992 (Allentown College of St. Francis de Sales Project),
6.750%, 12/15/12 (Pre-refunded to 6/15/02)
3,130 McKean County Solid Waste Authority, Guaranteed Solid Waste 1/02 at 100 AAA 3,212,037
Revenue Bonds, Series of 1992, 6.650%, 1/01/12
(Pre-refunded to 1/01/02)
4,500 Pennsylvania Turnpike Commission, Revenue Bonds, Series I 12/01 at 102 AAA 4,717,575
of 1986, 7.200%, 12/01/17 (Pre-refunded to 12/01/01)
1,250 Philadelphia Authority for Industrial Development, 5/02 at 102 N/R*** 1,313,375
Revenue Bonds, Series of 1992 (National Board of Medical
Examiners Project), 6.750%, 5/01/12 (Pre-refunded to 5/01/02)
4,270 City of Philadelphia, Gas Works Revenue Bonds, Thirteenth 6/01 at 102 AAA 4,426,453
Series, 7.700%, 6/15/21 (Pre-refunded to 6/15/01)
8,530 The Hospitals and Higher Education Facilities Authority 8/01 at 102 Aa*** 8,835,886
of Philadelphia, Refunding Revenue Bonds, (Saint Agnes
Medical Center Project - FHA-Insured Mortgage), Series 1991,
7.250%, 8/15/31 (Pre-refunded to 8/15/01)
1,850 The School District of Philadelphia, General Obligation Bonds, 5/02 at 100 3/4 AAA 1,923,297
Series A of 1992, 6.500%, 5/15/05 (Pre-refunded to 5/15/02)
2,800 The School District of Philadelphia, General Obligation Bonds, 7/01 at 102 AAA 2,869,412
Series B of 1991, 7.000%, 7/01/05 (Pre-refunded to 7/01/01)
10,625 City of Philadelphia, Water and Sewer Revenue Bonds, 8/01 at 100 AAA 10,812,213
Sixteenth Series, 7.000%, 8/01/18 (Pre-refunded to 8/01/01)
8,800 The Hospitals and Higher Education Facilities Authority 12/01 at 102 N/R*** 9,215,448
of Philadelphia, Hospital Revenue Bonds, Series of 1991
(Presbyterian Medical Center of Philadelphia), 7.250%, 12/01/21
(Pre-refunded to 12/01/01)
6,110 The Hospitals and Higher Education Facilities Authority 2/02 at 102 Aaa 6,390,877
of Philadelphia, Hospital Revenue Bonds, Series A of 1992
(The Children's Hospital of Philadelphia Project), 6.500%, 2/15/21
(Pre-refunded to 2/15/02)
The Philadelphia Municipal Authority, Justice Lease Revenue Bonds,
1991 Series B:
1,500 7.100%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 102 AAA 1,569,270
9,900 7.125%, 11/15/18 (Pre-refunded to 11/15/01) 11/01 at 102 AAA 10,359,261
3,000 The Pittsburgh Water and Sewer Authority, Water and Sewer No Opt. Call AAA 3,260,610
System Revenue Refunding Bonds, Series of 1986, 7.625%, 9/01/04
7,065 The Pittsburgh Water and Sewer Authority, Water and Sewer System 9/01 at 102 AAA 7,321,671
Revenue Refunding Bonds, Series A of 1991, 6.500%, 9/01/14
(Pre-refunded to 9/01/01)
2,500 Saint Mary Hospital Authority, Hospital Revenue Bonds, 7/02 at 102 AAA 2,634,700
Series 1992A (Franciscan Health System/Saint Mary Hospital
of Langhorne Inc.), 6.500%, 7/01/12 (Pre-refunded to 7/01/02)
8,475 Somerset County General Authority, Commonwealth Lease 10/01 at 100 AAA 8,675,180
Revenue Bonds, Series of 1991, 7.000%, 10/15/13
(Pre-refunded to 10/15/01)
3,500 Upper Merion Area School District, Montgomery County, 9/01 at 100 Aa2*** 3,567,060
General Obligation Bonds, Series of 1993, 6.900%, 9/01/16
(Pre-refunded to 9/01/01)
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100 AAA 3,736,620
Water and Sewer Revenue Bonds, Series of 1991,
7.100%, 12/01/21 (Pre-refunded to 11/15/15)
5,000 West Chester Area School District, Chester and Delaware Counties, 1/01 at 100 Aa1*** 5,005,800
General Obligation Bonds, Series A of 1991,
6.700%, 1/15/11 (Pre-refunded to 1/15/01)
5,450 The Municipal Authority of the Borough of West View, Allegheny No Opt. Call AAA 7,351,723
County, Special Obligation Bonds, Series of 1985A, 9.500%, 11/15/14
5,000 County of Westmoreland, General Obligation Bonds, Series of 1992, 8/01 at 100 AAA 5,078,600
6.700%, 8/01/09 (Pre-refunded to 8/01/01)
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 3.8%
3,750 Delaware County Industrial Development Authority, Pollution 4/01 at 102 A 3,844,838
Control Revenue Refunding Bonds, 1991 Series A (Philadelphia
Electric Company Project), 7.375%, 4/01/21
380 Greater Lebanon Refuse Authority, Lebanon County, Solid Waste 11/02 at 100 A- 391,164
Revenue Bonds, Series of 1992, 7.000%, 11/15/04
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$ 4,000 Lehigh County Industrial Development Authority, Pollution Control 8/05 at 102 AAA $ 4,249,759
Revenue Refunding Bonds, 1995 Series A (Pennsylvania Power
and Light Company Project), 6.150%, 8/01/29
5,500 Montgomery County Industrial Development Authority, Resource 1/03 at 100 A+ 5,638,049
Recovery Revenue Bonds, Series 1989 (Montgomery County
Project), 7.500%, 1/01/12
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 5.7%
3,000 Luzerne County Industrial Development Authority, Exempt Facilities 10/02 at 102 A 3,168,719
Revenue Refunding Bonds, 1992 Series A (Pennsylvania Gas
and Water Company Project), 7.200%, 10/01/17
(Alternative Minimum Tax)
3,550 Luzerne County Industrial Development Authority, Exempt Facilities 12/02 at 102 A 3,756,716
Revenue Bonds, 1992 Series B (Pennsylvania Gas and Water
Company Project), 7.125%, 12/01/22 (Alternative Minimum Tax)
5,000 Luzerne County Industrial Development Authority, Exempt 12/04 at 102 AAA 5,491,599
Facilities Revenue Refunding Bonds, 1994 Series A (Pennsylvania
Gas and Water Company Project), 7.000%, 12/01/17
(Alternative Minimum Tax)
20,000 Pittsburgh Water and Sewer Authority, Water and Sewer System No Opt. Call AAA 5,029,399
First Lien Revenue Bonds, Series B of 1998, 0.000%, 9/01/26
12,625 Municipal Authority of Westmoreland County, Municipal Service No Opt. Call AAA 3,772,602
Revenue Bonds, Series of 1999A, 0.000%, 8/15/23
------------------------------------------------------------------------------------------------------------------------------------
$ 419,735 Total Investments (cost $357,573,192) - 99.7% 368,885,950
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 1,278,337
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 370,164,287
--------------------------------------------------------------------------------------------------------------------
* 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. 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.
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 0.1%
$ 500 Erie County Industrial Development Authority, Environmental 9/10 at 101 BBB+ $ 497,240
Improvement Revenue Refunding Bonds, 2000 Series B,
6.000%, 9/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Capital Goods - 0.5%
2,000 New Morgan Industrial Development Authority, Solid Waste 4/04 at 102 BB- 1,852,040
Disposal Revenue Bonds (New Morgan Landfill Company,
Inc. Project), Series 1994, 6.500%, 4/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 9.9%
4,000 Allegheny County Higher Education Building Authority, College 5/09 at 102 A 3,830,280
Revenue Bonds, Series A of 1999 (Thiel College), 5.375%, 11/15/29
3,000 Chester County Health and Education Facilities Authority, College 10/08 at 102 BBB- 2,748,270
Revenue Bonds, Series of 1998 (Immaculata College), 5.625%, 10/15/27
1,350 Lancaster Higher Education Authority, College Revenue Bonds, 4/03 at 100 AAA 1,379,970
Series of 1993 (Franklin and Marshall College Project), 5.700%, 4/15/13
10,000 Pennsylvania Higher Education Assistance Agency, Student Loan 1/03 at 102 AAA 10,354,100
Revenue Bonds, 1988 Series D, 6.050%, 1/01/19
(Alternative Minimum Tax)
3,250 Pennsylvania Higher Education Facility Authority, College Revenue 11/03 at 102 AAA 3,456,765
Refunding Bonds, Series 1993A (Allegheny College), 6.100%, 11/01/08
1,000 Pennsylvania Higher Educational Facilities Authority, University 5/08 at 101 Aaa 1,007,650
Revenue Bonds, Series of 1998 (LaSalle University), 5.250%, 5/01/23
2,100 Pennsylvania Higher Educational Facilities Authority, University 6/10 at 100 AA 2,213,400
Revenue Bonds, Series 2000 (Philadelphia University), 6.000%, 6/01/29
4,615 Pennsylvania Higher Educational Facilities Authority, Revenue 7/03 at 102 AAA 4,750,958
Bonds, 1993 Series A (Widener University), 5.250%, 7/15/11
3,340 State Public School Building Authority, College Revenue Bonds, 3/03 at 100 AAA 3,416,887
Series U of 1993 (Northampton County Area Community
College Project), 5.850%, 3/15/15
865 The General Municipal Authority of the City of Wilkes-Barre, 12/02 at 102 N/R 915,248
College Revenue Bonds, Refunding Series B of 1992
(Misericordia College), 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 11.4%
8,500 Allegheny County Hospital Development Authority, Hospital 5/06 at 102 AAA 8,816,795
Revenue Bonds, Series A of 1996 (South Hills Health System),
5.875%, 5/01/26
14,000 Allegheny County Hospital Development Authority, Health 4/07 at 102 AAA 14,283,780
Center Revenue Bonds, Series 1997A (University of Pittsburgh
Medical Center System), 5.625%, 4/01/27
8,400 Montgomery County Higher Education and Health Authority, 1/09 at 101 AAA 8,006,628
Revenue Bonds, Series 1998 (Pottstown Healthcare
Corporation), 5.000%, 1/01/27
485 Montgomery County Higher Education and Health Authority, 6/03 at 102 AAA 501,577
Hospital Revenue Bonds, Series A of 1993 (Abington
Memorial Hospital), 6.000%, 6/01/22
4,700 Pennsylvania Higher Educational Facilities Authority, 1/06 at 101 A 4,525,442
The University of Pennsylvania Health Services Revenue
Bonds, Series A of 1996, 5.750%, 1/01/22
City of Pottsville Hospital Authority, Hospital Revenue Bonds,
Series of 1998 (The Pottsville Hospital and Warne Clinic):
2,000 5.500%, 7/01/18 7/08 at 100 BBB- 1,656,000
2,000 5.625%, 7/01/24 7/08 at 100 BBB- 1,628,080
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 3.9%
4,345 Bucks County Redevelopment Authority, Second Lien 8/03 at 100 Baa2 4,325,013
Multifamily Mortgage Revenue Bonds, Series 1993A (Section 8
Assisted Country Commons Apartments), 6.200%, 8/01/14
(Alternative Minimum Tax)
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily (continued)
$ 1,665 Luzerne County Housing Corporation, Mortgage Revenue Refunding 7/03 at 100 Aaa $ 1,680,917
Bonds, Series 1993 (FHA-Insured Mortgage Loan - Freeland
Apartments Section 8 Assisted Project), 6.125%, 7/15/23
5,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding 7/02 at 102 AAA 5,190,000
Bonds, Issue 1992, 6.400%, 7/01/12
2,345 Swissvale Housing Development Corporation (An Instrumentality 7/03 at 100 Aa 2,367,700
of the Allegheny County Housing Authority), Multifamily Mortgage
Revenue Refunding Bonds, Series 1993C (FHA-Insured Mortgage
Loan - Section 8 Assisted Swissvale Project), 6.100%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 9.3%
3,250 Allegheny County Residential Finance Authority, Single Family 11/08 at 102 Aaa 3,164,525
Mortgage Revenue Bonds, 1998 Series DD-2, 5.400%, 11/01/29
(Alternative Minimum Tax)
1,355 Allegheny County, Residential Finance Authority, Single Family 11/10 at 100 Aaa 1,381,206
Mortgage Revenue Bonds, 2000 Series II-2, 5.900%, 11/01/32
(Alternative Minimum Tax)
2,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102 AA+ 2,016,640
Revenue Bonds, Series 1993-37A, 5.450%, 10/01/17
1,120 Pennsylvania Housing Finance Agency, Single Family Mortgage No Opt. Call AA+ 1,244,634
Revenue Bonds, Series 1996-47, 6.750%, 10/01/06
(Alternative Minimum Tax)
3,305 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 3,431,714
Revenue Bonds, Series 1996-51, 6.375%, 4/01/28
(Alternative Minimum Tax)
2,750 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/06 at 102 AA+ 2,846,250
Revenue Bonds, Series 1997-54A, 6.150%, 10/01/22
(Alternative Minimum Tax)
Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 1997-56A:
1,500 6.050%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102 AA+ 1,567,770
4,000 6.150%, 10/01/27 (Alternative Minimum Tax) 4/07 at 102 AA+ 4,140,760
1,635 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/07 at 101 1/2 AA+ 1,663,596
Revenue Bonds, Series 1997-58A, 5.950%, 10/01/28
(Alternative Minimum Tax)
1,645 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/07 at 101 1/2 AA+ 1,686,651
Revenue Bonds, Series 1997-59A, 5.700%, 4/01/17
(Alternative Minimum Tax)
1,200 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/08 at 101 1/2 AA+ 1,196,868
Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22
(Alternative Minimum Tax)
1,500 Urban Redevelopment Authority of Pittsburgh, Mortgage 4/06 at 102 AAA 1,550,535
Revenue Bonds, 1996 Series C, 6.500%, 10/01/23
(Alternative Minimum Tax)
Urban Redevelopment Authority of Pittsburgh, Mortgage
Revenue Bonds,1997 Series A:
845 6.150%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102 AAA 889,439
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102 AAA 797,597
1,375 Urban Redevelopment Authority of Pittsburgh, Mortgage 4/03 at 102 AAA 1,433,946
Revenue Bonds, 1992 Series D, 6.500%, 4/01/17
2,460 Urban Redevelopment Authority of Pittsburgh, Mortgage 4/03 at 102 AAA 2,561,155
Revenue Bonds, 1992 Series C-1, 6.800%, 10/01/25
(Alternative Minimum Tax)
615 Urban Redevelopment Authority of Pittsburgh, Mortgage 4/04 at 102 AAA 651,679
Revenue Bonds, 1994 Series B, 6.950%, 10/01/10
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Industrial/Other - 0.6%
2,165 Montgomery County Industrial Development Authority, 6/03 at 102 N/R 2,108,472
Health Facilities Revenue Bonds, Series of 1993 (Emergency
Care Research Institute Project), 6.850%, 6/01/13
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.0%
1,230 Pennsylvania Economic Development Financing Authority, 6/08 at 100 BBB 960,409
Revenue Bonds, Series A of 1998 (Northwestern Human
Services, Inc. Project), 5.250%, 6/01/28
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Series of 2000 (Dr. Gertrude A. Barber Center Inc.):
1,000 6.150%, 12/01/20 No Opt. Call AA 1,000,360
2,000 5.900%, 12/01/30 12/10 at 100 AA 2,040,060
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care (continued)
Philadelphia Authority for Industrial Development, Health Care
Facilities Revenue Bonds, Series 1998A (Pauls Run):
$ 1,350 5.750%, 5/15/18 5/08 at 102 N/R $ 1,117,935
1,650 5.875%, 5/15/28 5/08 at 102 N/R 1,319,159
4,000 Philadelphia Hospital and Higher Educational Facilities 8/03 at 102 BBB+ 4,065,120
Authority of Philadelphia, Revenue Refunding Bonds,
Series 1992 (Philadelphia MR Project), 5.625%, 8/01/04
----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 5.5%
Chichester School District, Delaware County, General Obligation
Bonds, Series of 1999:
3,125 0.000%, 3/01/23 No Opt. Call AAA 947,563
3,125 0.000%, 3/01/24 No Opt. Call AAA 895,906
3,125 0.000%, 3/01/25 No Opt. Call AAA 846,875
2,110 Fayette County, General Obligation Bonds, Series 2000, 5.625%, 11/15/28 11/10 at 100 AAA 2,189,357
Redevelopment Authority of the City of Harrisburg, Dauphin
County, Guaranteed Revenue Bonds, Series B of 1998:
1,750 0.000%, 5/01/22 5/16 at 75 9/16 AAA 539,070
2,750 0.000%, 11/01/22 5/16 at 73 5/8 AAA 824,065
2,750 0.000%, 5/01/23 5/16 at 71 23/32 AAA 800,415
2,750 0.000%, 11/01/23 5/16 at 69 7/8 AAA 778,608
4,305 County of Montgomery, General Obligation Bonds, Series B 10/06 at 100 Aaa 4,353,733
of 1996, 5.375%, 10/15/21
2,000 School District of Philadelphia, General Obligation Refunding No Opt. Call AAA 2,264,980
Bonds, Series A of 1995, 6.250%, 9/01/09
3,500 The School District of Philadelphia, General Obligation Bonds, 4/09 at 100 AAA 3,163,930
Series A of 1999, 4.500%, 4/01/23
1,305 Wallenpaupack Area School District, Wayne and Pike Counties, 4/01 at 100 AAA 1,308,054
General Obligation Bonds, Series of 1993, 5.500%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited---16.1%
4,060 Delaware Valley Regional Finance Authority, Local Government 4/06 at 100 AAA 4,258,940
Revenue Bonds, Series A, 6.000%, 4/15/26
17,895 Harrisburg Authority, Dauphin County, Tax-Exempt Revenue 9/07 at 100 AAA 18,375,660
Bonds (The City of Harrisburg Project), Series II of 1997,
5.625%, 9/15/22
Pennsylvania Industrial Development Authority, Economic
Development Revenue Bonds, Series 1994:
2,000 7.000%, 7/01/06 No Opt. Call AAA 2,257,540
1,550 7.000%, 1/01/07 No Opt. Call AAA 1,763,730
1,000 7.000%, 7/01/07 No Opt. Call AAA 1,147,840
9,000 Public Auditorium Authority of Pittsburgh and Allegheny 8/09 at 101 AAA 7,983,630
County, Hotel Room Exercise Tax Revenue Bonds, Series
of 1999, 4.500%, 2/01/29
20,775 Southeastern Pennsylvania Transportation Authority, Special 3/09 at 101 AAA 19,300,598
Revenue Bonds, Series A of 1999, 4.750%, 3/01/29
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 0.7%
2,300 County of Allegheny, Airport Revenue Refunding Bonds, 1/08 at 101 AAA 2,305,198
Series 1997A (Pittsburgh International Airport),
5.250%, 1/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 14.0%
750 Allegheny County Hospital Development Authority, Health 6/02 at 102 N/R*** 792,533
and Education Revenue Bonds, Series 1992 (The Rehabilitation
Institute of Pittsburgh Project), 7.000%, 6/01/22
(Pre-refunded to 6/01/02)
3,000 Allegheny County Hospital Development Authority, Health 11/02 at 100 AAA 3,114,270
Center Revenue Bonds, Series 1992A (Presbyterian University
Health System, Inc. Project), 6.250%, 11/01/23
(Pre-refunded to 11/01/02)
2,000 Bangor Area School District, Northampton County, General 3/06 at 100 AAA 2,121,860
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, General 7/06 at 100 AAA 2,707,075
Obligation Bonds, Series of 1996, 5.875%, 7/15/16
(Pre-refunded to 7/15/06)
Bethlehem Authority, Northampton and Lehigh Counties, Water
Revenue Bonds, Series A of 1992:
3,785 6.100%, 11/15/18 (Pre-refunded to 11/15/02) 11/02 at 100 AAA 3,924,099
3,100 6.100%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 100 AAA 3,213,925
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2000 (Unaudited)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
$ 1,500 Fort LeBoeuf School District, Erie County, General Obligation Bonds, 1/03 at 100 AAA $ 1,549,050
Series A of 1993, 5.800%, 1/01/16 (Pre-refunded to 1/01/03)
3,500 Hollidaysburg Sewer Authority, Guaranteed Sewer Revenue 1/03 at 100 AAA 3,634,470
Bonds, Series of 1993, 6.100%, 1/01/23 (Pre-refunded to 1/01/03)
1,500 Ligonier Valley School District, Westmoreland County, General 3/04 at 100 AAA 1,583,190
Obligation Bonds, Series of 1994, 6.000%, 3/01/23
(Pre-refunded to 3/01/04)
2,015 Montgomery County Higher Educational and Health Authority, 6/03 at 102 AAA 2,138,157
Hospital Revenue Bonds, Series A of 1993 (Abington Memorial
Hospital), 6.000%, 6/01/22 (Pre-refunded to 6/01/03)
1,570 Pennsylvania Higher Educational Facilities Authority, College and No Opt. Call Aaa 1,889,385
University Revenue Bonds, 9th Series, 7.625%, 7/01/15
1,005 The Hospitals and Higher Education Facilities Authority 5/04 at 102 AAA 1,083,139
of Philadelphia, Community College Revenue Bonds,
Series of 1994, 6.100%, 5/01/10 (Pre-refunded to 5/01/04)
City of Philadelphia, Water and Wastewater Revenue Bonds,
Series 1993:
955 5.750%, 6/15/13 (Pre-refunded to 6/15/03) 6/03 at 102 AAA 1,008,451
915 5.500%, 6/15/14 (Pre-refunded to 6/15/03) 6/03 at 102 AAA 960,915
The Hospitals and Higher Education Facilities Authority of
Philadelphia, Hospital Revenue Bonds, Series of 1993
(Presbyterian Medical Center of Philadelphia):
1,000 6.500%, 12/01/11 12/03 at 102 AAA 1,144,710
3,690 6.650%, 12/01/19 12/03 at 102 AAA 4,369,329
1,750 Pine-Richland School District, Allegheny County, 9/03 at 100 AAA 1,838,288
General Obligation Bonds, Series A of 1993,
6.100%, 9/01/18 (Pre-refunded to 9/01/03)
3,660 Rose Tree Media School District, Delaware County, 9/01 at 100 AAA 3,730,272
General Obligation Bonds, Series of 1993,
6.700%, 3/15/12 (Pre-refunded to 9/15/01)
2,500 Schuylkill Valley School District, Berks County, 4/03 at 100 AAA 2,595,525
General Obligation Bonds, Series of 1993,
5.850%, 4/15/13 (Pre-refunded to 4/15/03)
2,695 Wallenpaupack Area School District, Wayne and Pike 4/01 at 100 AAA 2,705,376
Counties, General Obligation Bonds, Series of 1993,
5.500%, 4/01/11 (Pre-refunded to 4/01/01)
1,650 The Municipal Authority of the Borough of West View, No Opt. Call AAA 2,225,751
Allegheny County, Special Obligation Bonds, Series of 1985A,
9.500%, 11/15/14
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 12.9%
8,000 Beaver County Industrial Development Authority, Exempt Facilities 6/08 at 102 AAA 7,915,840
Revenue Bonds, 1998 Series A (Shippingport Project),
5.375%, 6/01/28 (Alternative Minimum Tax)
4,000 Carbon County Industrial Development Authority, Resource No Opt. Call BBB- 4,122,880
Recovery Revenue Refunding Bonds, 2000 Series (Panther
Creek Partners Project), 6.650%, 5/01/10 (Alternative Minimum Tax)
7,590 Indiana County Industrial Development Authority, Pollution 5/07 at 102 AAA 7,939,216
Control Revenue Bonds, 1997 Series A (Metropolitan Edison
Company Project), 5.950%, 5/01/27 (Alternative Minimum Tax)
16,000 Lehigh County Industrial Development Authority, Pollution 11/02 at 102 AAA 16,791,040
Control Revenue Refunding Bonds, 1992 Series A (Pennsylvania
Power and Light Company Project), 6.400%, 11/01/21
8,000 City of Philadelphia, Gas Works Revenue Bonds, 7/09 at 101 AAA 7,688,880
1998 General Ordinance, Second Series, 5.000%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 10.7%
2,000 Allegheny County Sanitary Authority, Sewer Revenue Bonds, 12/10 at 101 AAA 2,057,200
Series of 2000, 5.500%, 12/01/30
1,975 Delaware County Industrial Development Authority, 6/02 at 102 AAA 2,064,843
Water Facilities Revenue Refunding Bonds, Series of 1992
(Philadelphia Suburban Water Company Project), 6.500%, 6/01/10
7,350 Luzerne County Industrial Development Authority, Exempt Facilities 10/02 at 102 A 7,763,364
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, Exempt Facilities 12/02 at 102 A 4,762,035
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, Water 7/10 at 100 AAA 3,547,991
Facilities Revenue Bonds, Series of 2000 (Consumers Pennsylvania
Water Company - Shenango Valley Division Project),
6.000%, 7/01/30 (Alternative Minimum Tax)
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer (continued)
$ 5,500 Northumberland County Industrial Development Authority, 10/03 at 102 N/R $ 5,184,959
Exempt Facilities Revenue Bonds, 1993 Series (Roaring Creek
Water Company Project), 6.375%, 10/15/23 (Alternative Minimum Tax)
City of Philadelphia, Water and Wastewater Revenue Bonds, Series 1995:
3,000 6.750%, 8/01/05 No Opt. Call AAA 3,307,589
2,730 6.250%, 8/01/10 No Opt. Call AAA 3,104,337
City of Philadelphia, Water and Wastewater Revenue Bonds, Series 1993:
1,380 5.750%, 6/15/13 6/03 at 102 AAA 1,438,718
1,385 5.500%, 6/15/14 6/03 at 102 AAA 1,423,765
10,000 City of Pittsburgh Water and Sewer Authority, Water and Sewer No Opt. Call AAA 2,244,399
System First Lien Revenue Bonds, Series B of 1998, 0.000%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 357,160 Total Investments (cost $326,707,363) - 98.6% 340,233,738
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 4,759,926
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 344,993,664
--------------------------------------------------------------------------------------------------------------------
* 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. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
Statement of
NET ASSETS December 31, 2000 (Unaudited)
New Jersey New Jersey Pennsylvania Pennsylvania
Investment Quality Premium Income Investment Quality Premium Income 2
(NQJ) (NNJ) (NQP) (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Assets
Investments in municipal securities, at market value $456,829,546 $270,629,961 $368,885,950 $340,233,738
Cash 281,617 183,428 3,165,827 833
Receivables:
Interest 8,034,429 4,606,167 5,632,653 5,477,588
Investments sold 175,000 480,000 -- 15,000
Other assets 18,309 22,417 18,620 24,189
Total assets 465,338,901 275,921,973 377,703,050 345,751,348
------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Payable for investments purchased 1,983,340 1,400,676 6,960,023 --
Accrued expenses:
Management fees 247,927 148,196 199,217 185,388
Other 470,735 275,361 312,628 497,515
Preferred share dividends payable 103,146 28,797 66,895 74,781
Total liabilities 2,805,148 1,853,030 7,538,763 757,684
------------------------------------------------------------------------------------------------------------------------------------
Net assets $462,533,753 $274,068,943 $370,164,287 $344,993,664
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value $162,000,000 $ 91,600,000 $132,000,000 $118,100,000
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding 6,480 3,664 5,280 4,724
------------------------------------------------------------------------------------------------------------------------------------
Common shares outstanding 20,009,983 12,012,930 16,100,358 15,747,462
------------------------------------------------------------------------------------------------------------------------------------
Netasset value per Common share outstanding (net assets
less Preferred shares at liquidation value, divided by
Common shares outstanding) $ 15.02 $ 15.19 $ 14.79 $ 14.41
------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
Statement of
OPERATIONS Six Months Ended December 31, 2000 (Unaudited)
New Jersey New Jersey Pennsylvania Pennsylvania
Investment Quality Premium Income Investment Quality Premium Income 2
(NQJ) (NNJ) (NQP) (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Investment Income $13,757,116 $ 7,545,692 $11,466,365 $ 9,730,280
------------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 1,457,820 866,158 1,177,345 1,082,151
Preferred shares - auction fees 204,165 115,442 166,356 148,838
Preferred shares - dividend disbursing agent fees 15,123 15,123 15,123 15,123
Shareholders' servicing agent fees and expenses 9,630 5,947 11,417 8,941
Custodian's fees and expenses 45,752 30,199 50,812 48,172
Directors'/Trustees' fees and expenses 2,011 1,168 1,636 1,479
Professional fees 11,522 7,733 9,836 8,137
Shareholders' reports - printing and mailing expenses 33,732 14,727 29,342 24,349
Stock exchange listing fees 12,602 12,230 12,560 12,230
Investor relations expense 27,810 16,656 24,369 21,396
Other expenses 11,827 10,715 7,620 12,523
Total expenses before custodian fee credit 1,831,994 1,096,098 1,506,416 1,383,339
Custodian fee credit (22,169) (10,657) (4,096) (18,782)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,809,825 1,085,441 1,502,320 1,364,557
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,947,291 6,460,251 9,964,045 8,365,723
------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions (378,420) (212,940) (171) 544,105
Change in net unrealized appreciation (depreciation)
of investments 11,821,175 11,238,630 6,615,531 14,213,233
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 11,442,755 11,025,690 6,615,360 14,757,338
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $23,390,046 $17,485,941 $16,579,405 $23,123,061
------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
Statement of
CHANGES IN NET ASSETS (Unaudited)
New Jersey Investment Quality (NQJ) New Jersey Premium Income (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
12/31/00 6/30/00 12/31/00 6/30/00
------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 11,947,291 $ 23,967,002 $ 6,460,251 $ 12,986,995
Net realized gain (loss) from
investment transactions (378,420) (508,488) (212,940) (369,629)
Change in net unrealized appreciation
(depreciation) of investments 11,821,175 (12,136,060) 11,238,630 (7,043,096)
Net increase in net assets from operations 23,390,046 11,322,454 17,485,941 5,574,270
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From and in excess of net investment income:
Common shareholders (9,176,673) (18,329,919) (4,865,238) (10,248,237)
Preferred shareholders (2,925,675) (5,763,883) (1,647,618) (3,018,492)
From accumulated net realized gains from investment transactions:
Common shareholders -- (751,266) -- --
Preferred shareholders -- (220,556) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (12,102,348) (25,065,624) (6,512,856) (13,266,729)
------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares
issued to shareholders
due to reinvestment of distributions 435,767 1,224,251 -- 484,299
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 11,723,465 (12,518,919) 10,973,085 (7,208,160)
Net assets at the beginning of period 450,810,288 463,329,207 263,095,858 270,304,018
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $462,533,753 $450,810,288 $274,068,943 $263,095,858
------------------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income
at the end of period $ 487,797 $ 642,854 $ 194,292 $ 246,897
------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
Pennsylvania Investment Quality (NQP) Pennsylvania Premium Income 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
12/31/00 6/30/00 12/31/00 6/30/00
------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 9,964,045 $ 20,033,075 $ 8,365,723 $ 16,716,116
Net realized gain (loss) from
investment transactions (171) (757,155) 544,105 (3,053,064)
Change in net unrealized appreciation
(depreciation) of investments 6,615,531 (12,452,732) 14,213,233 (9,308,011)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 16,579,405 6,823,188 23,123,061 4,355,041
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders From and in excess of net investment income:
Common shareholders (7,340,943) (15,781,613) (6,177,742) (12,716,093)
Preferred shareholders (2,755,379) (4,693,796) (2,376,453) (4,243,502)
From accumulated net realized gains from investment transactions:
Common shareholders -- (1,173,604) -- (236,212)
Preferred shareholders -- (288,698) -- (69,046)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (10,096,322) (21,937,711) (8,554,195) (17,264,853)
------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares
issued to shareholders
due to reinvestment of distributions 155,869 1,171,443 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 6,638,952 (13,943,080) 14,568,866 (12,909,812)
Net assets at the beginning of period 363,525,335 377,468,415 330,424,798 343,334,610
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $370,164,287 $363,525,335 $344,993,664 $330,424,798
------------------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income
at the end of period $ (239,581) $ (107,304) $ 443,653 $ 632,125
------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding New
York Stock Exchange symbols are Nuveen New Jersey Investment Quality Municipal
Fund, Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ),
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) and Nuveen
Pennsylvania Premium Income Municipal Fund 2 (NPY).
Each Fund 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, diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
December 31, 2000, New Jersey Investment Quality (NQJ), New Jersey Premium
Income (NNJ) and Pennsylvania Investment Quality (NQP) had outstanding
when-issued and delayed delivery purchase commitments of $1,983,340, $1,400,676
and $6,960,023, respectively. There were no such outstanding purchase
commitments in Pennsylvania Premium Income 2 (NPY).
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each New Jersey Fund intends to satisfy conditions which
will enable interest from municipal securities, which is exempt from regular
federal and New Jersey state income taxes, to retain such tax-exempt status when
distributed to the shareholders of the New Jersey Funds. Each Pennsylvania Fund
intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal, Pennsylvania state personal
income and the Philadelphia School District Investment Income taxes, to retain
such tax-exempt status when distributed to shareholders of the Pennsylvania
Funds.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of such distributions are determined in accordance with
federal income tax regulations, which may differ from accounting principles
generally accepted in the United States. Accordingly, temporary
over-distributions as a result of these differences may occur and will be
classified as either distributions in excess of net investment income,
distributions in excess of net realized gains and/or distributions in excess of
net ordinary taxable income from investment transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent.
The number of shares outstanding, by Series and in total, were as follows:
New Jersey New Jersey Pennsylvania Pennsylvania
Investment Premium Investment Premium
Quality Income Quality Income 2
(NQJ) (NNJ) (NQP) (NPY)
-----------------------------------------------------------------------------------
Number of Shares:
Series M 3,200 -- -- 844
Series T -- 624 880 --
Series W -- 1,440 2,400 --
Series Th 2,000 1,600 2,000 2,080
Series F 1,280 -- -- 1,800
-----------------------------------------------------------------------------------
Total 6,480 3,664 5,280 4,724
-----------------------------------------------------------------------------------
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, 2000.
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.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
Audit Guide
In November 2000, the American Institute of Certified Public Accountants (AICPA)
issued a revised version of the AICPA Audit and Accounting Guide for Investment
Companies (the "Guide"). The Guide is effective for annual financial statements
issued for fiscal years beginning after December 15, 2000. It is not anticipated
that the adoption of the Guide will have a significant effect on the financial
statements.
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
2. FUND SHARES
Transactions in Common shares were as follows:
New Jersey New Jersey
Investment Quality (NQJ) Premium Income (NNJ)
------------------------ -----------------------
Six Year Six Year
Months Ended Ended Months Ended Ended
12/31/00 6/30/00 12/31/00 6/30/00
---------------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment
of distributions 29,499 78,713 -- 32,233
---------------------------------------------------------------------------------------
Pennsylvania Pennsylvania
Investment Quality (NQP) Premium Income 2 (NPY)
------------------------- -----------------------
Six Year Six Year
Months Ended Ended Months Ended Ended
12/31/00 6/30/00 12/31/00 6/30/00
---------------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of
distributions 10,826 75,763 -- --
---------------------------------------------------------------------------------------
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid February 1, 2001, to shareholders of record on
January 15, 2001, as follows:
New Jersey New Jersey Pennsylvania Pennsylvania
Investment Premium Investment Premium
Quality Income Quality Income 2
(NQJ) (NNJ) (NQP) (NPY)
-----------------------------------------------------------------------------
Dividend per share $ .0765 $ .0675 $ .0760 $ .0650
-----------------------------------------------------------------------------
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the six months ended
December 31, 2000, were as follows:
New Jersey New Jersey Pennsylvania Pennsylvania
Investment Premium Investment Premium
Quality Income Quality Income 2
(NQJ) (NNJ) (NQP) (NPY)
------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $44,508,410 $14,650,917 $8,899,869 $17,296,119
Short-term municipal securities -- -- -- --
Sales and maturities:
Long-term municipal securities 47,388,873 15,091,250 5,894,477 25,654,708
Short-term municipal securities -- 1,000,000 -- --
------------------------------------------------------------------------------------------
At December 31, 2000, the identified cost of investments owned for federal
income tax purposes were as follows:
New Jersey New Jersey Pennsylvania Pennsylvania
Investment Premium Investment Premium
Quality Income Quality Income 2
(NQJ) (NNJ) (NQP) (NPY)
-------------------------------------------------------------------------------------------
$438,261,515 $257,091,692 $357,935,581 $326,707,363
-------------------------------------------------------------------------------------------
At June 30, 2000, 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 Pennsylvania Pennsylvania
Premium Investment Premium
Income Quality Income 2
(NNJ) (NQP) (NPY)
------------------------------------------------------------------------------
Expiration year:
2002 $3,583,548 $ -- $ --
2003 129,409 -- --
2004 650,143 -- --
2005 174,583 -- --
2006 -- -- --
2007 244,178 -- --
2008 27,220 396,097 3,053,064
------------------------------------------------------------------------------
Total $4,809,081 $396,097 $3,053,064
------------------------------------------------------------------------------
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at December 31, 2000, were as follows:
New Jersey New Jersey Pennsylvania Pennsylvania
Investment Premium Investment Premium
Quality Income Quality Income 2
(NQJ) (NNJ) (NQP) (NPY)
------------------------------------------------------------------------------------------
Gross unrealized:
appreciation $20,329,648 $14,485,559 $16,338,673 $15,998,250
depreciation (1,761,617) (947,290) (5,388,304) (2,471,875)
-----------------------------------------------------------------------------------------
Net unrealized appreciation $18,568,031 $13,538,269 $10,950,369 $13,526,375
-----------------------------------------------------------------------------------------
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Management Fee
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
--------------------------------------------------------------------------------
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
7. COMPOSITION OF NET ASSETS
At December 31, 2000, net assets consisted of:
New Jersey New Jersey Pennsylvania Pennsylvania
Investment Premium Investment Premium
Quality Income Quality Income 2
(NQJ) (NNJ) (NQP) (NPY)
--------------------------------------------------------------------------------------------------------------
Preferred shares, $25,000 stated value per share,
at liquidation value $162,000,000 $ 91,600,000 $132,000,000 $118,100,000
Common shares, $.01 par value per share 200,100 120,129 161,004 157,475
Paid-in surplus 281,656,247 173,638,122 227,688,763 215,268,132
Undistributed (Over-distribution of)
net investment income 487,797 194,292 (239,581) 443,653
Accumulated net realized gain (loss) from
investment transactions (1,604,555) (5,368,910) (758,657) (2,501,971)
Net unrealized appreciation of investments 19,794,164 13,885,310 11,312,758 13,526,375
--------------------------------------------------------------------------------------------------------------
Net assets $462,533,753 $274,068,943 $370,164,287 $344,993,664
--------------------------------------------------------------------------------------------------------------
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
--------------------------------------------------------------------------------------------------------------
Financial
HIGHLIGHTS (Unaudited)
Financial HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------- ------------------------------------------------------------
From and From and
in Excess in Excess
of Net of Net
Net Investment Investment Capital Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
------------------------------------------------------------------------------------------------------------------------------------
New Jersey Investment Quality (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) $14.45 $ .60 $ .58 $1.18 $ (.46) $(.15) $ -- $ -- $ (.61)
2000 15.14 1.20 (.63) .57 (.92) (.29) (.04) (.01) (1.26)
1999 15.65 1.14 (.46) .68 (.93) (.20) (.03) (.01) (1.17)
1998 15.41 1.16 .29 1.45 (.95) (.22) (.03) (.01) (1.21)
1997 15.05 1.18 .34 1.52 (.95) (.21) -- -- (1.16)
1996 15.06 1.17 (.01) 1.16 (.94) (.23) -- -- (1.17)
New Jersey Premium Income (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 14.28 .54 .92 1.46 (.41) (.14) -- -- (.55)
2000 14.92 1.08 (.62) .46 (.85) (.25) -- -- (1.10)
1999 15.34 1.08 (.41) .67 (.87) (.22) -- -- (1.09)
1998 14.71 1.10 .65 1.75 (.86) (.26) -- -- (1.12)
1997 14.18 1.09 .51 1.60 (.84) (.23) -- -- (1.07)
1996 13.97 1.08 .20 1.28 (.81) (.26) -- -- (1.07)
Pennsylvania Investment Quality (NQP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 14.39 .62 .41 1.03 (.46) (.17) -- -- (.63)
2000 15.33 1.25 (.83) .42 (.98) (.29) (.07) (.02) (1.36)
1999 15.94 1.22 (.59) .63 (1.01) (.21) -- -- (1.22)
1998 15.91 1.23 .10 1.33 (1.01) (.23) (.05) (.01) (1.30)
1997 15.72 1.26 .22 1.48 (1.01) (.24) (.03) (.01) (1.29)
1996 15.86 1.28 (.08) 1.20 (1.05) (.25) (.03) (.01) (1.34)
Pennsylvania Premium Income 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 13.48 .53 .94 1.47 (.39) (.15) -- -- (.54)
2000 14.30 1.06 (.78) .28 (.81) (.27) (.02) -- (1.10)
1999 14.86 1.04 (.61) .43 (.76) (.23) -- -- (.99)
1998 14.20 1.02 .67 1.69 (.77) (.26) -- -- (1.03)
1997 13.57 1.04 .63 1.67 (.78) (.26) -- -- (1.04)
1996 13.25 1.04 .33 1.37 (.78) (.27) -- -- (1.05)
------------------------------------------------------------------------------------------------------------------------------------
Total Returns
---------------------
Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value** Value**
-----------------------------------------------------------------------------------------------------
New Jersey Investment Quality (NQJ)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) $ -- $15.02 $15.8125 15.96 % 7.23%
2000 -- 14.45 14.0625 (4.94) 1.94
1999 (.02) 15.14 15.8125 (2.33) 2.82
1998 -- 15.65 17.1250 11.38 8.12
1997 -- 15.41 16.3125 16.50 8.92
1996 -- 15.05 14.8750 8.17 6.28
New Jersey Premium Income (NNJ)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) -- 15.19 14.5000 11.58 9.33
2000 -- 14.28 13.3750 (9.95) 1.64
1999 -- 14.92 15.8125 7.17 2.87
1998 -- 15.34 15.5625 11.12 10.35
1997 -- 14.71 14.8125 20.95 9.94
1996 -- 14.18 13.0000 4.24 7.37
Pennsylvania Investment Quality (NQP)
-----------------------------------------------------------------------------------------------------
Year Ended
6/30:
2001(a) -- 14.79 13.7500 (1.25) 6.03
2000 -- 14.39 14.3750 (7.39) .94
1999 (.02) 15.33 16.6875 2.56 2.50
1998 -- 15.94 17.2500 8.77 7.02
1997 -- 15.91 16.8750 9.75 8.01
1996 -- 15.72 16.3750 12.74 6.00
Pennsylvania Premium Income 2 (NPY)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) -- 14.41 12.9375 7.85 9.95
2000 -- 13.48 12.3750 (3.87) .21
1999 -- 14.30 13.7500 7.98 1.27
1998 -- 14.86 13.4375 6.27 10.29
1997 -- 14.20 13.3750 14.82 10.61
1996 -- 13.57 12.3750 2.21 8.39
-----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------------
Before Credit
-----------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
-----------------------------------------------------------------------------------------------------
New Jersey Investment Quality (NQJ)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) $462,534 1.24%* 8.07%* .80%* 5.20%*
2000 450,810 1.22 8.27 .78 5.30
1999 463,329 1.13 7.27 .80 5.12
1998 438,878 1.13 7.40 .79 5.20
1997 431,622 1.14 7.70 .80 5.36
1996 422,338 1.16 7.67 .81 5.33
New Jersey Premium Income (NNJ)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 274,069 1.24* 7.27* .81* 4.78*
2000 263,096 1.24 7.61 .81 4.95
1999 270,304 1.24 7.00 .83 4.68
1998 274,276 1.25 7.24 .83 4.81
1997 266,074 1.27 7.53 .83 4.91
1996 259,708 1.32 7.53 .86 4.90
Pennsylvania Investment Quality (NQP)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 370,164 1.28* 8.44* .82* 5.40*
2000 363,525 1.26 8.57 .81 5.47
1999 377,468 1.16 7.61 .81 5.30
1998 363,139 1.15 7.65 .80 5.34
1997 360,749 1.17 7.96 .81 5.52
1996 355,823 1.18 7.98 .82 5.53
Pennsylvania Premium Income 2 (NPY)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 344,994 1.26* 7.60* .82* 4.93*
2000 330,425 1.26 7.88 .81 5.06
1999 343,335 1.24 6.93 .83 4.61
1998 352,123 1.24 6.99 .82 4.63
1997 341,751 1.27 7.47 .83 4.85
1996 331,863 1.30 7.59 .84 4.90
-----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Municipal Auction Rate Cumulative
After Credit*** Preferred Stock at End of Period
----------------------------------------------------- -----------------------------------
Ratio Ratio
of Net of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average Liquidation
Net Assets Net Assets Total Total Aggregate and
Applicable Applicable Net Assets Net Assets Portfolio Amount Market Asset
to Common to Common Including Including Turnover Outstanding Value Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Per Share Per Share
--------------------------------------------------------------------------------------------------------------------------
New Jersey Investment Quality (NQJ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 1.22%* 8.08%* .79%* 5.21%* 10% $162,000 $25,000 $71,379
2000 1.21 8.28 .78 5.31 11 162,000 25,000 69,569
1999 1.13 7.27 .80 5.12 8 162,000 25,000 71,501
1998 1.13 7.40 .79 5.20 6 130,000 25,000 84,400
1997 1.14 7.70 .80 5.36 15 130,000 25,000 83,004
1996 1.16 7.67 .81 5.33 16 130,000 25,000 81,219
--------------------------------------------------------------------------------------------------------------------------
New Jersey Premium Income (NNJ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 1.22* 7.29* .81* 4.79* 6 91,600 25,000 74,800
2000 1.23 7.63 .80 4.96 10 91,600 25,000 71,806
1999 1.24 7.00 .83 4.68 10 91,600 25,000 73,773
1998 1.25 7.24 .83 4.81 13 91,600 25,000 74,857
1997 1.27 7.53 .83 4.91 18 91,600 25,000 72,618
1996 1.32 7.53 .86 4.90 32 91,600 25,000 70,881
--------------------------------------------------------------------------------------------------------------------------
Pennsylvania Investment Quality (NQP)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 1.27* 8.44* .81* 5.40* 2 132,000 25,000 70,107
2000 1.25 8.59 .80 5.48 8 132,000 25,000 68,849
1999 1.16 7.61 .81 5.30 16 132,000 25,000 71,490
1998 1.15 7.65 .80 5.34 9 110,000 25,000 82,532
1997 1.17 7.96 .81 5.52 8 110,000 25,000 81,988
1996 1.18 7.98 .82 5.53 12 110,000 25,000 80,869
Pennsylvania Premium Income 2 (NPY)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2001(a) 1.24* 7.62* .81* 4.94* 5 118,100 25,000 73,030
2000 1.25 7.89 .80 5.07 14 118,100 25,000 69,946
1999 1.24 6.93 .82 4.62 9 118,100 25,000 72,679
1998 1.24 6.99 .82 4.63 32 118,100 25,000 74,539
1997 1.27 7.47 .83 4.85 29 118,100 25,000 72,344
1996 1.30 7.59 .84 4.90 19 118,100 25,000 70,250
--------------------------------------------------------------------------------------------------------------------------
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per share. Total
returns are not annualized.
*** After custodian fee credit, 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 six months ended December 31, 2000.
See accompanying notes to financial statements.
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 6-month period ended December 31, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
Serving Investors
FOR GENERATIONS
PHOTO OF: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Invest well.
Look ahead.
LEAVE YOUR MARK.(SM)
LOGO: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive FSA-2-12-00
Chicago, IL 60606 o www.nuveen.com