UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6303
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Nuveen Quality Income Municipal Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31, 2003
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Date of reporting period: October 31, 2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
ANNUAL REPORT October 31, 2003
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND
NQM
NUVEEN SELECT QUALITY MUNICIPAL FUND
NQS
NUVEEN QUALITY INCOME MUNICIPAL FUND
NQU
NUVEEN PREMIER MUNICIPAL INCOME FUND
NPF
First Photo: Man holding up small boy.
Second Photo: 2 women with 2 girls looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
logo: NUVEEN investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
By registering for electronic delivery, you will receive an e-mail as soon as
your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM and follow the simple instructions, using the
address sheet that accompanied this report as a guide.
2 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen and follow the simple instructions.
3 Click Submit. Confirm the information you just entered is correct, then click
Submit again.
4 You should get a confirmation e-mail within 24 hours. If you do not, go back
through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information or
cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click on
Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go back
through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information or
cancel internet viewing.
logo: NUVEEN investments
Dear
SHAREHOLDER
Sidebar text: WE THINK YOUR NUVEEN FUND CAN BE AN IMPORTANT BUILDING BLOCK IN A
PORTFOLIO DESIGNED TO PERFORM WELL THROUGH A VARIETY OF MARKET CONDITIONS.
Photo of:Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
I am very pleased to report that for the year ended October 31, 2003, your
Nuveen Fund continued to provide you with attractive monthly tax-free income.
Your Nuveen Fund is managed with a value investing strategy that puts an
emphasis on finding securities that we think are undervalued or underrated. We
believe that there are always some municipal bonds that the market is not
properly valuing, and that by using a consistent, research-oriented management
approach we have the opportunity to find them for your Fund.
In this low-rate environment, many have begun to wonder whether interest rates
will soon start to rise, and whether that possibility should cause them to
adjust their holdings of fixed-income investments. We believe that by
constructing a carefully balanced portfolio with the help of a trusted
investment professional you may be able to reduce your overall investment risk
and give yourself a better chance to meet your financial goals. We think that
municipal bond investments like your Nuveen Fund can be important building
blocks in a portfolio designed to perform well through a variety of market
conditions.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 2003
1
Nuveen National Municipal Closed-End Exchange-Traded Funds
(NQM, NQS, NQU, NPF)
Portfolio Managers'
COMMENTS
Portfolio managers Tom Spalding and Dan Solender discuss U.S. economic and
market conditions, key investment strategies, and the annual performance of
these national Funds. A 27-year veteran of Nuveen, Tom has managed NQS and NQU
since January 2003. Tom recently turned over portfolio management responsibility
for NQM (in November 2003) and NPF (in September 2003) to Dan, who has 16 years
of investment experience.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
PERIOD ENDED OCTOBER 31, 2003?
Over the 12-month reporting period, the two greatest influences on the general
economy continued to be historically low interest rates and the overall pace of
economic improvement. In June 2003, the Federal Reserve reduced the fed funds
rate to 1.0%, the lowest level since 1958. The Fed's accommodative monetary
policy coupled with Washington's tax relief measures and increased spending for
defense helped to fuel an 8.2% year-over-year jump in the third-quarter Gross
Domestic Product (GDP), up from 3.3% in the second quarter. At the same time,
inflation remained under control throughout the period.
In the municipal market, the slower rate of economic recovery over the majority
of this reporting period, low interest rates, and lack of inflationary pressures
helped many municipal bonds perform well. During the summer of 2003, however,
stronger-than-expected economic data precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted results across all fixed-income
markets, including the municipal market, for the 12-month period ended October
31, 2003.
During the first 10 months of 2003, municipal supply nationally remained robust,
with $319.9 billion in new bonds, up 8% over the same period in 2002.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THIS REPORTING PERIOD?
Individual results for these Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL LEHMAN
RETURN TOTAL LIPPER
MARKET YIELD ON NAV RETURN1 AVERAGE2
============================================================
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
10/31/03 EQUIVALENT3 10/31/03 10/31/03 10/31/03
============================================================
NQM 6.68% 9.28% 6.88% 5.11% 8.08%
- ------------------------------------------------------------
NQS 6.73% 9.35% 8.96% 5.11% 8.08%
- ------------------------------------------------------------
NQU 6.74% 9.36% 9.37% 5.11% 8.08%
- ------------------------------------------------------------
NPF 6.72% 9.33% 6.57% 5.11% 8.08%
- ------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report. For the 12 months ended October 31, 2003, all four of the
Funds in this report outperformed the
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman Brothers
Municipal Bond Index, an unleveraged, unmanaged 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 these Funds are compared with the average annualized
return of the 62 funds in the Lipper General Leveraged Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment, other than an investment that generates qualified dividend
income that is taxable at a maximum rate of 15%, in order 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 28%.
2
unleveraged Lehman Brothers Municipal Bond Index. NQS and NQU also outperformed
their Lipper peer group average, while NQM and NPF trailed this measure. The use
of leverage was one of the factors that influenced the performances of these
Funds relative to the Lehman index over the past 12 months. While this is a
strategy that carries price risk and additional volatility, leveraging can
provide opportunities for additional income for common shareholders, especially
during periods of low short-term interest rates.
In general, the Funds also benefited from their duration4 positioning during
this period. As of October 31, 2003, the durations of NQM, NQS, and NQU ranged
from 9.10 to 10.01. However, NPF's duration of 12.22 had a negative impact on
the Fund's performance as interest rates rose during the summer of 2003.
Investments with longer durations generally would be expected to underperform
those with shorter durations during rising rate periods, all other factors being
equal.
In addition to leverage and duration, factors such as call exposure, portfolio
trading activity, and the price movement of specific sectors and holdings also
had an impact on the Funds' relative performances during this period. For
example, NQS and NQU held higher concentrations of airline-backed bonds than NQM
and NPF. Although airline bonds had depreciated significantly as the airlines
struggled with the economic downturn and the aftermath of September 11, 2001,
these bonds began to rebound in recent months, recovering some of their value.
Because NQM and NPF had little or no exposure to airline bonds, they did not
benefit from the recovery to the extent that NQS and NQU did.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels, the
dividend-paying capabilities of all of these Funds benefited from their use of
leverage. During the 12 months ended October 31, 2003, continued low short-term
rates enabled us to implement two dividend increases in NQM and NQS and one each
in NQU and NPF.
Even at these dividend levels, each Fund's common share net investment income
during the period exceeded the amount of dividends paid to common shareholders.
This excess net investment income, along with any excess net investment income
from
4 Duration is a measure of a fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
fund. References to duration in this commentary are intended to indicate fund
duration unless otherwise noted.
3
prior fiscal periods, was held in reserve by the Funds as undistributed net
investment income (UNII) and is part of the Funds' net asset value. The Funds,
over time, will pay all their net investment income out to common shareholders.
However, UNII reserves may help the Funds maintain more stable common share
dividend levels over time should the short-term rates the Funds pay on their
MuniPreferred shares rise or net common share earnings otherwise decline.
Despite the increased volatility in the fixed-income markets during the summer
of 2003, the share prices and net asset values of these Funds ended the period
higher than they had been at the beginning, with the exception of NPF, where the
NAV ended slightly lower. As of October 31, 2003, the discounts to common share
NAV for NQM, NQS, and NPF were narrower than they had been 12 months earlier,
while the discount on NQU had widened slightly.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE FISCAL YEAR ENDED
OCTOBER 31, 2003?
Over this 12-month reporting period, we continued to place strong emphasis on
keeping the Funds fully invested and well diversified, improving call
protection, and enhancing dividend-paying capabilities. We also continued to
focus on managing the Funds' durations, with the goal of enhancing our ability
to mitigate interest rate risk and produce potentially more consistent returns
over time. Interest rate risk is the risk that the value of a Fund's portfolio
will decline when market interest rates rise. The longer the duration of a
Fund's portfolio, the greater its interest rate risk. As a result of our
efforts, the durations of all four Funds shortened over the past 12 months.
In line with the steepness of the municipal yield curve, the majority of our
purchase activity over the past year focused on value opportunities in the
intermediate part of the yield curve (i.e., bonds that mature in 15 to 20
years). In many cases, bonds in this part of the curve offered yields similar to
those of longer-term bonds but, in our opinion, had less inherent interest rate
risk.
4
In the recent market environment, we have focused on bonds offering above-market
coupons that can help to support the Funds' dividends by generating cash flow.
In addition, they can provide more protection than lower coupons if rates should
rise. We also focused on issues in the low AA/high A credit quality sectors that
can add yield and diversification.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
OCTOBER 31, 2003?
We believe that, given the current geopolitical and economic climate,
maintaining strong credit quality remains a vital requirement. As of October 31,
2003, these Nuveen Funds offered excellent credit quality, with allocations of
bonds rated AAA/U.S. guaranteed and AA ranging from 73% to 84%.
Looking at bond calls, these Funds offer good levels of call protection over the
next two years, with potential call exposure ranging from 5% in NQM to 15% in
NPF during 2004 and 2005. The number of bond calls will depend largely on market
interest rates in coming months.
In general, we believe that these Nuveen Funds can continue to serve as
attractive sources of tax-free income, while simultaneously offering the
potential for portfolio diversification. In our opinion, the Funds represent a
quality component of a well-balanced core investment portfolio that can continue
to benefit shareholders over time.
5
Nuveen Investment Quality Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2003
NQM
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 75%
AA 9%
A 6%
BBB 6%
NR 3%
BB or Lower 1%
PORTFOLIO STATISTICS
- ---------------------------------------------------
Share Price $15.10
- ---------------------------------------------------
Common Share Net Asset Value $15.65
- ---------------------------------------------------
Market Yield 6.68%
- ---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.28%
- ---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $559,644
- ---------------------------------------------------
Average Effective Maturity (Years) 17.23
- ---------------------------------------------------
Leverage-Adjusted Duration 9.73
- ---------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 6/21/90)
- ---------------------------------------------------
ON SHARE PRICE ON NAV
- ---------------------------------------------------
1-Year 7.78% 6.88%
- ---------------------------------------------------
5-Year 6.15% 5.89%
- ---------------------------------------------------
10-Year 5.32% 6.12%
- ---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- ---------------------------------------------------
U.S. Guaranteed 22%
- ---------------------------------------------------
Tax Obligation/General 17%
- ---------------------------------------------------
Healthcare 11%
- ---------------------------------------------------
Tax Obligation/Limited 10%
- ---------------------------------------------------
Transportation 9%
- ---------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov $0.0815
Dec 0.0825
Jan 0.0825
Feb 0.0825
Mar 0.084
Apr 0.084
May 0.084
Jun 0.084
Jul 0.084
Aug 0.084
Sep 0.084
Oct 0.084
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price ($)
Past performance is not predictive of future results.
11/1/02 $ 15
14.8
14.51
14.5
14.57
14.8
14.55
14.7
14.9
15.1
14.8
14.79
14.95
14.99
15.05
15.07
15.12
15.36
15.28
15.39
15.03
15.25
15.17
15.18
15.24
15.34
15.51
15.58
15.9
16.22
16.41
15.93
15.95
16
15.82
14.96
14.6
14.98
14.68
14.54
14.55
14.64
14.88
14.92
15.08
14.89
14.97
15.03
10/31/03 15.1
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.0280 per share.
6
Nuveen Select Quality Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2003
NQS
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 66%
AA 7%
A 11%
BBB 13%
NR 1%
BB or Lower 2%
PORTFOLIO STATISTICS
- ---------------------------------------------------
Share Price $14.81
- ---------------------------------------------------
Common Share Net Asset Value $15.33
- ---------------------------------------------------
Market Yield 6.73%
- ---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.35%
- ---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $519,361
- ---------------------------------------------------
Average Effective Maturity (Years) 19.26
- ---------------------------------------------------
Leverage-Adjusted Duration 9.10
- ---------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/21/91)
- ---------------------------------------------------
ON SHARE PRICE ON NAV
- ---------------------------------------------------
1-Year 9.91% 8.96%
- ---------------------------------------------------
5-Year 5.08% 6.19%
- ---------------------------------------------------
10-Year 5.85% 6.30%
- ---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- ---------------------------------------------------
U.S. Guaranteed 16%
- ---------------------------------------------------
Healthcare 16%
- ---------------------------------------------------
Utilities 14%
- ---------------------------------------------------
Transportation 12%
- ---------------------------------------------------
Tax Obligation/Limited 9%
- ---------------------------------------------------
Bar chart:
2002-2003 Monthly Tax-Free Dividends Per Share
Nov $0.0805
Dec 0.0805
Jan 0.0805
Feb 0.0805
Mar 0.082
Apr 0.082
May 0.082
Jun 0.082
Jul 0.082
Aug 0.082
Sep 0.083
Oct 0.083
Line chart:
Share Price Performance
Weekly Closing Price ($)
Past performance is not predictive of future results.
11/1/02 $14.44
14.45
14.42
14.19
14.28
14.42
14.3
14.34
14.5
14.55
14.31
14.32
14.38
14.45
14.52
14.33
14.35
14.47
14.44
14.48
14.34
14.48
14.46
14.4
14.49
14.58
14.92
15.04
15.49
15.66
15.79
15.38
15.42
15.43
15.27
14.74
14.36
14.59
14.31
14.28
14.28
14.47
14.57
14.53
14.66
14.57
14.58
14.64
10/31/03 14.81
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
7
Nuveen Quality Income Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2003
NQU
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 72%
AA 10%
A 7%
BBB 8%
BB or Lower 3%
PORTFOLIO STATISTICS
- ---------------------------------------------------
Share Price $14.33
- ---------------------------------------------------
Common Share Net Asset Value $15.04
- ---------------------------------------------------
Market Yield 6.74%
- ---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.36%
- ---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $815,270
- ---------------------------------------------------
Average Effective Maturity (Years) 17.38
- ---------------------------------------------------
Leverage-Adjusted Duration 10.01
- ---------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/91)
- ---------------------------------------------------
ON SHARE PRICE ON NAV
- ---------------------------------------------------
1-Year 9.31% 9.37%
- ---------------------------------------------------
5-Year 3.66% 5.71%
- ---------------------------------------------------
10-Year 5.62% 5.99%
- ---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- ---------------------------------------------------
Tax Obligation/General 23%
- ---------------------------------------------------
U.S. Guaranteed 18%
- ---------------------------------------------------
Transportation 13%
- ---------------------------------------------------
Utilities 11%
- ---------------------------------------------------
Healthcare 9%
- ---------------------------------------------------
Bar chart:
2002-2003 Monthly Tax-Free Dividends Per Share2
Nov $0.079
Dec 0.079
Jan 0.079
Feb 0.079
Mar 0.0805
Apr 0.0805
May 0.0805
Jun 0.0805
Jul 0.0805
Aug 0.0805
Sep 0.0805
Oct 0.0805
Line chart:
Share Price Performance
Weekly Closing Price ($)
Past performance is not predictive of future results.
11/1/02 $14.09
14.1
13.92
13.76
13.92
13.98
13.71
13.64
13.86
14.13
13.69
13.82
13.98
14.17
14.21
13.98
14.01
14.18
14.13
14.13
13.98
14.28
14.22
14.05
14.24
14.37
14.58
14.67
14.97
15.23
15.32
15.16
15.25
15.26
15.07
14.34
13.87
14.1
13.9
14.14
14.11
14.1
14.23
14.28
14.28
14.23
14.24
14.23
10/31/03 14.33
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
2 The Fund also paid shareholders a capital gains distribution in December 2002
of $0.0286 per share.
8
Nuveen Premier Municipal Income Fund, Inc.
Performance
OVERVIEW As of October 31, 2003
NPF
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 71%
AA 12%
A 8%
BBB 7%
BB or Lower 2%
PORTFOLIO STATISTICS
- ---------------------------------------------------
Share Price $14.74
- ---------------------------------------------------
Common Share Net Asset Value $15.13
- ---------------------------------------------------
Market Yield 6.72%
- ---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.33%
- ---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $304,048
- ---------------------------------------------------
Average Effective Maturity (Years) 16.65
- ---------------------------------------------------
Leverage-Adjusted Duration 12.22
- ---------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/91)
- ---------------------------------------------------
ON SHARE PRICE ON NAV
- ---------------------------------------------------
1-Year 9.13% 6.57%
- ---------------------------------------------------
5-Year 3.73% 5.88%
- ---------------------------------------------------
10-Year 6.68% 6.36%
- ---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- ---------------------------------------------------
Tax Obligation/Limited 19%
- ---------------------------------------------------
Tax Obligation/General 17%
- ---------------------------------------------------
U.S. Guaranteed 13%
- ---------------------------------------------------
Utilities 10%
- ---------------------------------------------------
Water and Sewer 10%
- ---------------------------------------------------
Bar chart:
2002-2003 Monthly Tax-Free Dividends Per Share2
Nov $0.081
Dec 0.081
Jan 0.081
Feb 0.081
Mar 0.0825
Apr 0.0825
May 0.0825
Jun 0.0825
Jul 0.0825
Aug 0.0825
Sep 0.0825
Oct 0.0825
Line chart:
Share Price Performance
Weekly Closing Price ($)
Past performance is not predictive of future results.
11/1/02 $14.5
14.59
14.3
14
14.34
14.35
14.18
14.11
14.43
14.57
14.31
14.23
14.3
14.47
14.5
14.29
14.26
14.49
14.53
14.42
14.28
14.49
14.41
14.5
14.62
14.89
15.03
15.19
15.58
15.84
15.93
15.5
15.4
15.5
15.42
14.71
14.28
14.45
14.27
14.34
14.41
14.42
14.44
14.6
14.5
14.68
14.57
14.55
10/31/03 14.74
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2002 of $0.0860 per share.
9
Shareholder
MEETING REPORT
The annual shareholder meeting was held on July 28, 2003, at the Northern Trust
Bank, Chicago, Illinois.
NQM
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series W Series TH Series F
====================================================================================================================================
William E. Bennett
For 20,487,012 -- -- -- -- -- --
Withhold 547,734 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
Robert P. Bremner
For 20,487,818 -- -- -- -- -- --
Withhold 546,928 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
Lawrence H. Brown
For 20,500,203 -- -- -- -- -- --
Withhold 534,543 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
Jack B. Evans
For 20,500,831 -- -- -- -- -- --
Withhold 533,915 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
Anne E. Impellizzeri
For 20,482,468 -- -- -- -- -- --
Withhold 552,278 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
William L. Kissick
For 20,466,823 -- -- -- -- -- --
Withhold 567,923 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
Thomas E. Leafstrand
For 20,484,904 -- -- -- -- -- --
Withhold 549,842 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
Peter R. Sawers
For 20,491,021 -- -- -- -- -- --
Withhold 543,725 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
William J. Schneider
For -- 10,593 -- -- -- -- --
Withhold -- 87 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 10,680 -- -- -- -- --
====================================================================================================================================
10
NQM
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series W Series TH Series F
====================================================================================================================================
Timothy R. Schwertfeger
For -- 10,593 -- -- -- -- --
Withhold -- 87 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 10,680 -- -- -- -- --
====================================================================================================================================
Judith M. Stockdale
For 20,510,074 -- -- -- -- -- --
Withhold 524,672 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
Sheila W. Wellington
For 20,472,824 -- -- -- -- -- --
Withhold 561,922 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 -- -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT
TO LENDING
For 15,015,138 1,978 -- -- -- -- --
Against 1,252,708 342 -- -- -- -- --
Abstain 703,127 55 -- -- -- -- --
Broker Non-Vote 4,063,773 8,305 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 10,680 -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT
TO BORROWING
For 15,062,182 1,980 -- -- -- -- --
Against 1,241,403 344 -- -- -- -- --
Abstain 667,388 51 -- -- -- -- --
Broker Non-Vote 4,063,773 8,305 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 10,680 -- -- -- -- --
====================================================================================================================================
TO APPROVE AN AGREEMENT
AND PLAN OF REORGANIZATION
AND THE TRANSACTIONS
CONTEMPLATED THEREBY
For 15,260,738 2,172 442 721 356 233 420
Against 979,382 132 27 59 10 12 24
Abstain 730,853 71 17 27 5 14 8
Broker Non-Vote 4,063,773 8,305 1,553 1,566 1,741 1,579 1,866
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,034,746 10,680 2,039 2,373 2,112 1,838 2,318
====================================================================================================================================
11
Shareholder
MEETING REPORT (continued)
NQS
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series W Series TH Series F
====================================================================================================================================
William E. Bennett
For 19,727,236 -- -- -- -- -- --
Withhold 452,514 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
Robert P. Bremner
For 19,739,850 -- -- -- -- -- --
Withhold 439,900 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
Lawrence H. Brown
For 19,763,719 -- -- -- -- -- --
Withhold 416,031 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
Jack B. Evans
For 19,744,411 -- -- -- -- -- --
Withhold 435,339 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
Anne E. Impellizzeri
For 19,747,783 -- -- -- -- -- --
Withhold 431,967 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
William L. Kissick
For 19,717,178 -- -- -- -- -- --
Withhold 462,572 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
Thomas E. Leafstrand
For 19,754,483 -- -- -- -- -- --
Withhold 425,267 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
Peter R. Sawers
For 19,751,890 -- -- -- -- -- --
Withhold 427,860 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
William J. Schneider
For -- 10,310 -- -- -- -- --
Withhold -- 97 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 10,407 -- -- -- -- --
====================================================================================================================================
12
NQS
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series W Series TH Series F
====================================================================================================================================
Timothy R. Schwertfeger
For -- 10,311 -- -- -- -- --
Withhold -- 96 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 10,407 -- -- -- -- --
====================================================================================================================================
Judith M. Stockdale
For 19,744,141 -- -- -- -- -- --
Withhold 435,609 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
Sheila W. Wellington
For 19,746,774 -- -- -- -- -- --
Withhold 432,976 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 -- -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT
TO LENDING
For 14,196,625 1,967 -- -- -- -- --
Against 1,040,520 249 -- -- -- -- --
Abstain 693,610 80 -- -- -- -- --
Broker Non-Vote 4,248,995 8,111 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 10,407 -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT
TO BORROWING
For 14,184,926 1,945 -- -- -- -- --
Against 1,048,455 242 -- -- -- -- --
Abstain 697,374 109 -- -- -- -- --
Broker Non-Vote 4,248,995 8,111 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 10,407 -- -- -- -- --
====================================================================================================================================
TO APPROVE AN AGREEMENT
AND PLAN OF REORGANIZATION
AND THE TRANSACTIONS
CONTEMPLATED THEREBY
For 14,372,274 1,935 288 259 441 171 776
Against 818,234 250 21 78 72 43 36
Abstain 740,247 111 23 21 16 13 38
Broker Non-Vote 4,248,995 8,111 1,422 1,550 2,085 1,241 1,813
- ------------------------------------------------------------------------------------------------------------------------------------
Total 20,179,750 10,407 1,754 1,908 2,614 1,468 2,663
====================================================================================================================================
13
Shareholder
MEETING REPORT (continued)
NQU
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series W Series W2 Series TH Series F
====================================================================================================================================
William E. Bennett
For 31,940,042 -- -- -- -- -- -- --
Withhold 790,428 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
Robert P. Bremner
For 31,960,275 -- -- -- -- -- -- --
Withhold 770,195 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
Lawrence H. Brown
For 31,994,090 -- -- -- -- -- -- --
Withhold 736,380 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
Jack B. Evans
For 31,977,347 -- -- -- -- -- -- --
Withhold 753,123 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
Anne E. Impellizzeri
For 31,952,576 -- -- -- -- -- -- --
Withhold 777,894 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
William L. Kissick
For 31,950,421 -- -- -- -- -- -- --
Withhold 780,049 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
Thomas E. Leafstrand
For 31,977,823 -- -- -- -- -- -- --
Withhold 752,647 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
Peter R. Sawers
For 31,977,447 -- -- -- -- -- -- --
Withhold 753,023 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
William J. Schneider
For -- 16,403 -- -- -- -- -- --
Withhold -- 31 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 16,434 -- -- -- -- -- --
====================================================================================================================================
14
NQU
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series W Series W2 Series TH Series F
====================================================================================================================================
Timothy R. Schwertfeger
For -- 16,401 -- -- -- -- -- --
Withhold -- 33 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 16,434 -- -- -- -- -- --
====================================================================================================================================
Judith M. Stockdale
For 31,982,954 -- -- -- -- -- -- --
Withhold 747,516 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
Sheila W. Wellington
For 31,957,785 -- -- -- -- -- -- --
Withhold 772,685 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 -- -- -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT
TO LENDING
For 23,245,671 2,719 -- -- -- -- -- --
Against 1,810,029 226 -- -- -- -- -- --
Abstain 1,159,301 50 -- -- -- -- -- --
Broker Non-Vote 6,515,469 13,439 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 16,434 -- -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT
TO BORROWING
For 23,189,077 2,719 -- -- -- -- -- --
Against 1,862,942 226 -- -- -- -- -- --
Abstain 1,162,982 50 -- -- -- -- -- --
Broker Non-Vote 6,515,469 13,439 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 16,434 -- -- -- -- -- --
====================================================================================================================================
TO APPROVE AN AGREEMENT
AND PLAN OF REORGANIZATION
AND THE TRANSACTIONS
CONTEMPLATED THEREBY
For 23,579,164 2,750 492 296 478 385 607 492
Against 1,428,644 181 63 17 39 8 27 27
Abstain 1,207,193 64 11 3 10 1 16 23
Broker Non-Vote 6,515,469 13,439 2,206 2,372 2,118 1,638 2,921 2,184
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,730,470 16,434 2,772 2,688 2,645 2,032 3,571 2,726
====================================================================================================================================
15
Shareholder
MEETING REPORT (continued)
NPF
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series TH
====================================================================================================================================
William E. Bennett
For 11,637,159 -- -- -- --
Withhold 322,677 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
Robert P. Bremner
For 11,631,442 -- -- -- --
Withhold 328,394 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
Lawrence H. Brown
For 11,653,265 -- -- -- --
Withhold 306,571 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
Jack B. Evans
For 11,641,033 -- -- -- --
Withhold 318,803 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
Anne E. Impellizzeri
For 11,636,368 -- -- -- --
Withhold 323,468 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
William L. Kissick
For 11,618,157 -- -- -- --
Withhold 341,679 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
Thomas E. Leafstrand
For 11,645,562 -- -- -- --
Withhold 314,274 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
Peter R. Sawers
For 11,646,258 -- -- -- --
Withhold 313,578 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
William J. Schneider
For -- 6,020 -- -- --
Withhold -- 145 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,165 -- -- --
====================================================================================================================================
16
NPF
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series TH
====================================================================================================================================
Timothy R. Schwertfeger
For -- 6,126 -- -- --
Withhold -- 39 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,165 -- -- --
====================================================================================================================================
Judith M. Stockdale
For 11,657,919 -- -- -- --
Withhold 301,917 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
Sheila W. Wellington
For 11,643,601 -- -- -- --
Withhold 316,235 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO LENDING
For 8,605,142 1,442 -- -- --
Against 667,946 86 -- -- --
Abstain 446,047 64 -- -- --
Broker Non-Vote 2,240,701 4,573 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 6,165 -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO BORROWING
For 8,569,154 1,433 -- -- --
Against 719,039 91 -- -- --
Abstain 430,942 68 -- -- --
Broker Non-Vote 2,240,701 4,573 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 6,165 -- -- --
====================================================================================================================================
TO APPROVE AN AGREEMENT AND PLAN OF
REORGANIZATION AND THE TRANSACTIONS
CONTEMPLATED THEREBY
For 8,676,951 1,430 241 667 522
Against 583,723 88 4 63 21
Abstain 458,461 74 1 59 14
Broker Non-Vote 2,240,701 4,573 711 1,870 1,992
- ------------------------------------------------------------------------------------------------------------------------------------
Total 11,959,836 6,165 957 2,659 2,549
====================================================================================================================================
17
Report of
INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS AND SHAREHOLDERS
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Investment Quality Municipal Fund,
Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income
Municipal Fund, Inc. and Nuveen Premier Municipal Income Fund, Inc. as of
October 31, 2003, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended and the financial highlights for each of the five years then
ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of investments owned as of October 31, 2003, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal
Fund, Inc., Nuveen Quality Income Municipal Fund, Inc. and Nuveen Premier
Municipal Income Fund, Inc. at October 31, 2003, and the results of their
operations for the year then ended, changes in their net assets for each of the
two years in the period then ended and financial highlights for each of the five
years in the period then ended in conformity with accounting principles
generally accepted in the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
December 12, 2003
18
Nuveen Investment Quality Municipal Fund, Inc. (NQM)
Portfolio of
INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.6%
$ 22,225 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA $ 25,830,562
Warrants, Series 1999A, 5.750%, 2/01/38 (Pre-refunded to 2/01/09) -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.6%
10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 BBB 8,856,600
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.5%
3,380 Arkansas Development Finance Authority, Home Mortgage Revenue 7/08 at 101.50 AAA 3,540,077
Bonds, FNMA/GNMA Mortgage-Backed Securities Program, Series
1998A, 5.150%, 7/01/17
Van Buren County, Arkansas, Sales and Use Tax Revenue Bonds,
Refunding and Construction, Series 2000:
1,055 5.600%, 12/01/25 - AMBAC Insured 12/10 at 100.00 Aaa 1,133,281
3,600 5.650%, 12/01/31 - AMBAC Insured 12/10 at 100.00 Aaa 3,897,108
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.3%
8,545 Alameda County, California, Certificates of Participation, Alameda 9/06 at 102.00 AAA 9,717,801
County Public FacilitiesCorporation, Series 1991, 6.000%,
9/01/21 (Pre-refunded to 9/01/06) - MBIA Insured
10,000 State of California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A3 9,980,100
5.250%, 2/01/25
5,925 State Public Works Board of the State of California, Lease Revenue 12/03 at 102.00 Aa2 6,060,860
Refunding Bonds, The Regents of the University of California, Various
University of California Projects, 1993 Series A, 5.500%, 6/01/21
9,740 Huntington Park Redevelopment Agency, California, Single Family No Opt. Call AAA 13,871,124
Residential Mortgage Revenue Refunding Bonds, Series 1986A,
8.000%, 12/01/19
1,030 Natomas Unified School District, Sacramento County, California, No Opt. Call AAA 1,217,192
General Obligation Refunding Bonds, Series 1999, 5.950%, 9/01/21 -
MBIA Insured
15,770 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AAA 21,263,164
California, Revenue Refunding Bonds, Redevelopment Project 1,
Series 1995, 7.400%, 8/01/25 - MBIA Insured
13,145 Perris, California, Single Family Mortgage Revenue Bonds, GNMA No Opt. Call AAA 17,909,011
Mortgage-Backed Securities Program, Series 1988B, 8.200%,
9/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.6%
310 Colorado Housing and Finance Authority, Single Family Program Senior 5/06 at 105.00 Aa2 318,119
Bonds, Series 1996 B, 7.450%, 11/01/27
12,450 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100.00 AAA 13,476,005
Refunding Bonds, Series 2000A, 6.000%, 11/15/19 (Alternative
Minimum Tax) - AMBAC Insured
3,200 Denver, Colorado, Special Facilities Airport Revenue Bonds, United Air 4/04 at 101.00 Ca 1,600,000
Lines, Inc. Project, Series 1992A, 6.875%, 10/01/32 (Alternative
Minimum Tax)#
7,865 El Paso County School District 11, Colorado Springs, Colorado, General 12/07 at 125.00 AA- 10,247,859
Obligation Improvement Bonds, Series 1996, 7.125%, 12/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.2%
6,770 State of Connecticut, General Obligation Bonds, Series 2000 B, 6/10 at 100.00 AA*** 7,947,709
5.875%, 6/15/16 (Pre-refunded to 6/15/10)
4,350 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/07 at 102.00 AAA 4,515,822
Program Bonds, Series 1997 C, Subseries C-2, 5.850%, 11/15/28
(Alternative Minimum Tax)
19
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 6.8%
$ 3,000 District of Columbia, General Obligation Bonds, Series 1998B, 6.000%, No Opt. Call AAA $ 3,525,120
6/01/16 - MBIA Insured
15,950 District of Columbia, University Revenue Bonds, Georgetown University 4/11 at 31.03 AAA 3,200,208
Issue, Series 2001A, 0.000%, 4/01/31 - MBIA Insured
6,000 District of Columbia Tobacco Settlement Financing Corporation, Tobacco 5/11 at 101.00 BBB 5,416,560
Settlement Asset-Backed Bonds, Series 2001, 6.750%, 5/15/40
23,645 District of Columbia Water and Sewer Authority, Public Utility Revenue 4/09 at 160.00 AAA 26,121,814
Bonds, Series 1998, 5.500%, 10/01/23 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 5.6%
17,500 City of Atlanta, Georgia, Airport General Revenue and Refunding Bonds 1/10 at 101.00 AAA 20,237,175
Series 2000A, 5.600%, 1/01/30 (Pre-refunded to 1/01/10) - FGIC Insured
2,000 Dalton Development Authority, Georgia, Revenue Certificates, Hamilton No Opt. Call AAA 2,153,420
Health Care System, Series 1996, 5.500%, 8/15/26 - MBIA Insured
5,980 Fulton County Development Authority, Georgia, Revenue Bonds, 9/11 at 102.00 AAA 6,490,333
TUFF/Atlanta Housing, LLC Project at Georgia State University,
Series 2001A, 5.500%, 9/01/22 - AMBAC Insured
2,250 Municipal Electric Authority of Georgia, Project One Special Obligation No Opt. Call A+ 2,720,948
Bonds, Fourth Crossover Series, 6.500%, 1/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.9%
4,810 City of Boise City, Idaho, Revenue Refunding Bonds, Series 2001A, 12/11 at 100.00 Aaa 5,042,227
5.375%, 12/01/31 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.6%
4,705 Village of Bourbonnais, Illinois, Industrial Project Revenue Bonds, 3/10 at 101.00 AA 5,277,081
Olivet Nazarene University Project, Series 2000, 6.250%, 3/01/20 -
RAAI Insured
9,000 City of Chicago, Illinois, Chicago O'Hare International Airport, Special No Opt. Call Ca 2,340,000
Facility Revenue Bonds, United Air Lines, Inc. Project, Series 2001A,
6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13)#
7,500 Cook County Community College District 508, Chicago, Illinois, No Opt. Call AAA 9,005,850
Certificates of Participation, 8.750%, 1/01/07 - FGIC Insured
2,110 Illinois Development Finance Authority, Local Government Program 1/11 at 100.00 Aaa 2,402,826
Revenue Bonds, Elmhurst Community Unit School District 205 Project,
Series 2000, 6.000%, 1/01/19 - FSA Insured
12,725 School District No. 46, Elgin, Counties of Kane, Cook, and DuPage, No Opt. Call Aaa 16,338,264
Illinois, School Bonds, Series 1997, 7.800%, 1/01/12 - FSA Insured
6,300 Madison County Community Unit School District 7, Edwardsville, Illinois, No Opt. Call AAA 7,298,424
School Building Bonds, Series 1994, 5.850%, 2/01/13 - FGIC Insured
3,585 City of Pekin, Illinois, Multifamily Housing Refunding Revenue Bonds, 11/03 at 103.00 AAA 3,651,860
FHA-Insured Mortgage Loan - Section 8 Assisted Project, Series
1992A, 6.875%, 5/01/22
5,390 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry No Opt. Call AAA 6,650,505
and Will Counties, Illinois, General Obligation Bonds, Series 1992A,
9.000%, 6/01/07 - AMBAC Insured
860 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry No Opt. Call AAA 1,061,120
and Will Counties, Illinois, General Obligation Bonds, Series 1992B,
9.000%, 6/01/07 - AMBAC Insured
1,180 Channahon School District Number 17, Will County, Illinois, General No Opt. Call Aaa 1,623,550
Obligation School Building Bonds, Series 2001, 8.400%, 12/01/13 -
AMBAC Insured
Joliet High School District Number 204, Joliet, Illinois,
General Obligation Bonds, Series 2001:
1,145 8.700%, 12/01/13 - FSA Insured No Opt. Call AAA 1,603,859
1,300 8.700%, 12/01/14 - FSA Insured No Opt. Call AAA 1,852,032
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5%
5,530 Allen County Jail Building Corporation, Indiana, First Mortgage Bonds, 4/11 at 101.00 Aa3 6,072,880
Series 2000, 5.750%, 4/01/20
1,880 Indianapolis, Indiana, GNMA Collateralized Multifamily Housing 7/10 at 102.00 Aaa 1,976,782
Mortgage Revenue Bonds, Cloverleaf Apartments Project Phase I,
Series 2000, 6.000%, 1/20/31
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 5,065 MSD Steuben County K-5 Building Corporation, Indiana, First Mortgage 7/10 at 101.00 AAA $ 5,806,010
Bonds, Series 2000, 6.125%, 1/15/21 - FSA Insured
2,495 Shelbyville, Indiana, GNMA Collateralized Multifamily Housing Revenue 7/10 at 102.00 Aaa 2,623,368
Bonds, Blueridge Terrace Project, Series 2000, 6.050%, 1/20/36
2,765 Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, 1/13 at 101.00 AAA 3,159,344
Series 2001, 5.750%, 7/15/14 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.6%
2,805 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 2,988,531
Securities Program Single Family Revenue Bonds, Series 1997A-1,
6.950%, 6/01/29 (Alternative Minimum Tax)
4,205 City of Topeka, Kansas, Industrial Revenue Refunding Bonds, Sunwest 8/16 at 100.00 AAA 5,786,669
Hotel Corporation Project, Series 1988, 9.500%, 10/01/16
(Alternative Minimum Tax) (Pre-refunded to 8/15/16)
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.8%
2,000 Jefferson County, Kentucky, Health Facilities Revenue Refunding Bonds, 1/07 at 102.00 AAA 2,160,700
Jewish Hospital Healthcare Services Inc., Series 1996, 5.700%,
1/01/21 - AMBAC Insured
12,500 County of Jefferson, Kentucky, Pollution Control Revenue Bonds, 4/05 at 102.00 AAA 13,388,250
Louisville Gas and Electric Company Project, Series 1995A, 5.900%,
4/15/23 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 7.1%
2,515 East Baton Rouge Mortgage Finance Authority, Louisiana, GNMA/FNMA 10/07 at 102.00 Aaa 2,600,711
Mortgage-Backed Securities Program, Family Mortgage Revenue
Refunding Bonds, Series 1997D, 5.900%, 10/01/30 (Alternative
Minimum Tax)
1,635 Jefferson Parish Home Mortgage Authority, Louisiana, Single Family 12/09 at 103.00 Aaa 1,786,156
Mortgage Revenue Refunding Bonds, Series 2000A-2, 7.500%,
12/01/30 (Alternative Minimum Tax)
Parish of Jefferson, Louisiana, Home Mortgage Authority, Single
Family Mortgage Revenue Bonds, Series 2000G-2:
2,955 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 3,266,427
1,865 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 1,890,924
965 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 971,987
Revenue Bonds, Comm-Care Corporation Project, Series 1994, 11.000%,
2/01/04
11,545 Orleans Parish School Board, Louisiana, Public School Refunding No Opt. Call AAA 15,120,487
Bonds, Series 1987, 9.000%, 2/01/09 - MBIA Insured
17,310 Tobacco Settlement Financing Corporation, Louisiana, Asset-Backed 5/11 at 101.00 BBB 13,859,425
Bonds, Series 2001B, 5.875%, 5/15/39
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.1%
12,000 The Commonwealth of Massachusetts, General Obligation Bonds, 10/10 at 100.00 AAA 13,941,360
Consolidated Loan Series 2000C, 5.750%, 10/01/19 (Pre-refunded
to 10/01/10)
5,000 The Commonwealth of Massachusetts, General Obligation Bonds, 9/09 at 101.00 AAA 5,857,100
Consolidated Loan Series 1999C, 5.875%, 9/01/17 (Pre-refunded
to 9/01/09)
5,255 Massachusetts Development Financing Authority, Assisted Living 12/09 at 102.00 N/R 5,153,421
Revenue Bonds, Prospect House Apartments, Series 1999, 7.000%,
12/01/31
1,640 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 100.00 BBB 1,704,419
Bonds, UMass Memorial Health Care, Series 2001C, 6.500%, 7/01/21
2,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 12/08 at 102.00 BBB 1,928,060
Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%,
12/01/19 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.1%
4,250 Detroit School District, Wayne County, Michigan, Unlimited Tax School 5/12 at 100.00 AAA 4,608,360
Building and Site Improvement General Obligation Bonds,
Series 2001A, 5.500%, 5/01/20 - FSA Insured
10,215 Detroit, Michigan, Water Supply System Revenue Refunding Bonds, No Opt. Call AAA 12,496,214
Series 1993, 6.500%, 7/01/15 - FGIC Insured
5,100 Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien, 7/11 at 101.00 AAA 5,983,524
Series 2001A, 5.750%, 7/01/28 (Pre-refunded to 7/01/11) -
FGIC Insured
21
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 5.6%
$ 5,000 Dakota County Housing and Redevelopment Authority and Washington No Opt. Call AAA $ 7,141,800
County Housing and Redevelopment Authority, Minnesota, Single
Family Residential Mortgage Backed Program Revenue
Bonds, Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax)
2,860 Hopkins, Minnesota, Elderly Housing Revenue Refunding Bonds, St. 3/04 at 102.00 AAA 2,968,766
Therese Southwest, Inc. Project, Series 1994A, 6.500%, 3/01/19
(Pre-refunded to 3/01/04) - RAAI Insured
20,000 Minnesota Agricultural and Economic Development Board, Healthcare 11/10 at 101.00 A 21,417,800
System Revenue Bonds, Fairview Health Services, Series 2000A,
6.375%, 11/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.8%
7,665 Kansas City Industrial Development Authority, Missouri, FNMA 1/07 at 102.00 AAA 8,220,559
Multifamily Housing Revenue Bonds, Royal Woods Apartments
Project, Series 1997, 5.600%, 1/01/30 (Alternative Minimum Tax)
(Mandatory put 1/01/10)
555 Missouri Housing Development Commission, Homeownership Loan 3/07 at 105.00 AAA 572,749
Program Single Family Mortgage Revenue Bonds, Series 1997A-2,
7.300%, 3/01/28 (Alternative Minimum Tax)
1,250 Missouri Health and Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 1,282,150
SSM Health Care, Series 2001A, 5.250%, 6/01/28 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.5%
3,095 NebHelp Inc, Nebraska, Student Loan Program Revenue Bonds, 3/04 at 102.00 AAA 3,115,025
Series 1993B, 5.875%, 6/01/14 (Alternative Minimum Tax) -
MBIA Insured
10,520 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101.50 AAA 10,797,202
Revenue Bonds, Series 1995B, 6.450%, 3/01/35 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.9%
11,000 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,937,860
Series 2002C, 5.500%, 6/15/19 - MBIA Insured
14,530 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 AAA 15,690,366
Revenue Bonds, Las Vegas Monorail Project, 1st Tier Series 2000,
5.625%, 1/01/34 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.7%
3,400 New Jersey Transportation Trust Fund Authority, Transportation System 6/13 at 100.00 AA- 3,680,942
Bonds, Series 2003C, 5.500%, 6/15/22
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.1%
7,770 Metropolitan Transportation Authority, New York, Commuter Facilities 7/09 at 100.00 AAA 8,892,376
Revenue Bonds, Series 1997C, 5.375%, 7/01/27 (Pre-refunded to
7/01/09) - FGIC Insured
City of New York, New York, General Obligation Bonds, Fiscal
Series 1997G:
1,515 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 1,761,824
8,485 6.000%, 10/15/26 10/07 at 101.00 A 9,273,172
7,000 New York City Municipal Water Finance Authority, New York, Water 6/06 at 101.00 AAA 7,693,630
and Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%,
6/15/26 - MBIA Insured
3,300 New York City Municipal Water Finance Authority, New York, Water 6/10 at 101.00 AA*** 4,035,570
and Sewer System Revenue Bonds, Fiscal 2000 Series B, 6.500%,
6/15/31 (Pre-refunded to 6/15/10)
5,000 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AA+ 5,335,450
Tax Secured Bonds, Fiscal 2000 Series C, 5.500%, 11/01/24
5,000 Power Authority of the State of New York, General Revenue Bonds, 12/05 at 100.00 Aa2 5,337,450
Series 2000A, 5.500%, 11/15/16
16,445 Port Authority of New York and New Jersey, Special Project Bonds, No Opt. Call AAA 19,722,489
JFK International Air Terminal LLC Project, Series 6, 7.000%,
12/01/12 (Alternative Minimum Tax) - MBIA Insured
5,400 Tobacco Settlement Financing Corporation of New York, 6/10 at 100.00 AA- 5,728,212
Asset-Backed Bonds, Series 2003-A1, 5.500%, 6/01/16
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 5.8%
$ 2,795 Charlotte, North Carolina, Mortgage Revenue Bonds, FHA-Insured 11/07 at 100.00 AAA $ 2,929,495
Mortgage, Double Oaks Apartments, 7.350%, 5/15/26
19,775 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102.00 AAA 21,973,189
Revenue Refunding Bonds, Series 1996B, 5.875%, 1/01/21 -
MBIA Insured
7,420 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA 7,570,552
Bonds, Mission-Saint Joseph's Health System, Series 2001,
5.250%, 10/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.6%
8,650 Cuyahoga County, Ohio, Hospital Improvement Revenue Bonds, 2/09 at 101.00 A- 8,983,977
MetroHealth System Project, Series 1999, 6.150%, 2/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.5%
3,300 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, Revenue 12/08 at 100.00 B- 2,808,498
Refunding Bonds, Series 2000B, 6.000%, 6/01/35 (Alternative
Minimum Tax) (Mandatory put 12/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.2%
11,000 Commonwealth of Pennsylvania, General Obligation Bonds, 2nd 10/09 at 101.00 AAA 12,443,200
Series of 1999, 5.750%, 10/01/18 - MBIA Insured
5,000 Philadelphia, Pennsylvania, General Obligation Bonds, Series 2001, 3/11 at 100.00 AAA 5,387,150
5.250%, 9/15/18 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.3%
1,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,619,235
Bonds, Series 2000A, 5.500%, 10/01/40
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 5.5%
4,635 Newport Housing Development Corporation, Rhode Island, Multifamily No Opt. Call AAA 5,016,275
Mortgage Revenue Refunding Bonds, Broadway-West Broadway
Apartments - FHA-Insured Mortgage Section 8 Assisted Project,
Series 1995A, 6.800%, 8/01/24
24,000 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 25,993,200
Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue,
Series 1996, 5.750%, 5/15/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.6%
10,000 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101.00 BBB 8,811,600
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%,
5/15/28
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.7%
3,135 Austin Housing Finance Corporation, Texas, Multifamily Housing 12/10 at 105.00 Aaa 3,502,391
Revenue Bonds, GNMA Collateralized Mortgage Loan - Santa Maria
Village Project, Series 2000A, 7.375%, 6/20/35 (Alternative
Minimum Tax)
13,400 Bexar County, Texas, Housing Finance Corporation, Multifamily 5/16 at 100.00 N/R 13,013,678
Housing Revenue Bonds, American Opportunity for Housing,
Series 2001A, 7.500%, 5/01/33
3,000 Bexar County, Texas, Housing Finance Corporation, Multifamily 5/16 at 100.00 N/R 2,909,910
Housing Revenue Bonds, American Opportunity for Housing,
Series 2001B, 8.250%, 5/01/33
18,710 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 19,958,893
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000, 5.500%, 2/15/22
Dallas Housing Corporation, Texas, Refunding and Capital Program
Revenue Bonds, Section 8 Assisted Projects, Series 1990:
445 7.700%, 8/01/05 2/04 at 100.00 Baa1 449,784
2,000 7.850%, 8/01/13 2/04 at 100.00 Baa1 2,025,500
Harris County Hospital District, Texas, Revenue Refunding Bonds,
Series 1990:
5,535 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 6,233,185
7,640 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 8,927,187
23
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 Harris County Hospital District, Texas, Refunding Revenue Bonds, 8/10 at 100.00 AAA $ 5,697,350
Series 2000, 6.000%, 2/15/14 - MBIA Insured
2,256 Heart of Texas Housing Finance Corporation, GNMA Collateralized 6/10 at 105.00 AAA 2,501,701
Mortgage Loan Revenue Bonds, Robinson Garden Project,
Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax)
3,960 Stafford, Texas, Economic Development Corporation, Sales Tax 9/15 at 100.00 AAA 4,250,347
Revenue Bonds, Series 2000, 5.500%, 9/01/30 - FGIC Insured
6,865 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105.00 Aaa 8,058,686
Mortgage Revenue Bonds, GNMA Collateralized Mortgage Loan -
Eastview Nursing Home, Ebony Lake Nursing Center, Ft. Stockton
Nursing Center, Lynnhaven Nursing Center and Mission Oaks Manor,
Series 2000-A1, 7.500%, 12/20/22
3,965 Tyler Health Facilities Development Corporation, Texas, Hospital 11/07 at 102.00 AAA 4,205,471
Revenue Bonds, East Texas Medical Center, Series 1997C, 5.600%,
11/01/27 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3%
1,960 City of Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 102.00 N/R 1,882,443
Residential Rental Housing Revenue Bonds, The Hamptons and
Hampton Court Apartments Project, Series 1999, 7.500%,
10/01/39 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.3%
17,075 Port of Seattle, Washington, Limited Tax General Obligation Bonds, 12/10 at 100.00 AA+ 17,918,334
Series 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax)
5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 5.625%, 10/11 at 100.00 AAA 5,385,450
4/01/17 (Alternative Minimum Tax) - FGIC Insured
16,750 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 5.625%, 8/10 at 100.00 AAA 17,881,463
2/01/30 - MBIA Insured
5,630 State of Washington, Various Purpose General Obligation Bonds, 7/08 at 100.00 AAA 5,398,945
Series 1998A, 4.500%, 7/01/23 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9%
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,962,000
Appalachian Power Company Project, Series 2003L, 5.500%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.7%
4,850 State of Wisconsin, General Obligation Refunding Bonds, No Opt. Call AAA 5,513,965
Series 2001-1, 5.500%, 5/01/13 - MBIA Insured
Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Eagle River Memorial Hospital Inc. Project, Series 2000:
1,000 5.750%, 8/15/20 - RAAI Insured 8/10 at 101.00 AA 1,068,540
3,000 5.875%, 8/15/30 - RAAI Insured 8/10 at 101.00 AA 3,205,560
- ------------------------------------------------------------------------------------------------------------------------------------
$ 773,831 Total Long-Term Investments (cost $778,388,891) - 148.9% 833,619,225
=============-----------------------------------------------------------------------------------------------------------------------
24
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8%
$ 1,000 Michigan Strategic Fund, Variable Rate Demand Limited Obligation A-1 $ 1,000,000
Revenue Bonds, Detroit Symphony Orchestra Project, Series 2001A,
1.150%, 6/01/31+
3,300 Nebraska Educational Finance Authority, Variable Rate Demand VMIG-1 3,300,000
Revenue Refunding Bonds, Creighton University Project, Series 2001,
1.150%, 8/01/31+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 4,300 Total Short-Term Investments (cost $4,300,000) 4,300,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $782,688,891) - 149.7% 837,919,225
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 22,725,071
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.8)% (301,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 559,644,296
====================================================================================================================
(1) All percentages shown in the Portfolio of
Investments are based on net assets applicable to
Common shares.
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Such
securities are normally considered to be equivalent
to AAA rated securities.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that
it was likely United would not remain current on
their interest payment obligations with respect to
these bonds and thus has stopped accruing interest.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but
has variable rate and demand features which qualify
it as a short-term security. The rate disclosed is
that currently in effect. This rate changes
periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
25
Nuveen Select Quality Municipal Fund, Inc. (NQS)
Portfolio of
INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.0%
$ 4,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA $ 4,575,760
Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded to 2/01/09)
- FGIC Insured
10,000 Health Care Authority of Lauderdale County, City of Florence, Alabama, 7/10 at 102.00 AAA 10,942,300
Revenue Bonds, Coffee Health Group, Series 2000A, 6.000%, 7/01/29
- FSA Insured
5,155 Phenix City Industrial Development Board, Alabama, Environmental 5/12 at 100.00 BBB 5,280,937
Improvement Revenue Bonds, MeadWestvaco Project, Series 2002A,
6.350%, 5/15/35 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1%
4,500 Little Rock, Arkansas, Hotel and Restaurant Gross Receipts Tax No Opt. Call A3 5,634,540
Refunding Bonds, Series 1993, 7.375%, 8/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 0.1%
550 California Pollution Control Financing Authority, Pollution Control 4/11 at 102.00 AAA 588,071
Revenue Refunding Bonds, Pacific Gas and Electric Company,
Series 1996A Remarketed, 5.350%, 12/01/16 (Alternative
Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.4%
11,000 Colorado Department of Transportation, Revenue Anticipation Bonds, 6/10 at 100.50 AAA 13,026,420
Series 2000, 6.000%, 6/15/15 (Pre-refunded to 6/15/10) -
AMBAC Insured
9,250 Colorado Health Facilities Authority, Remarketed Revenue Bonds, 7/06 at 102.00 A 9,512,792
Kaiser Permanente, Series 1994A, 5.350%, 11/01/16
16,995 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100.00 AAA 17,673,610
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 (Alternative
Minimum Tax) - AMBAC Insured
12,355 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 40.52 AAA 3,424,435
Bonds, Senior Series 2001B, 0.000%, 6/15/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.7%
9,285 Connecticut Development Authority, Health Facility Refunding 8/04 at 102.00 N/R 8,579,061
Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc.
Project, Series 1994A, 7.250%, 8/15/21
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.2%
District of Columbia, Washington D.C. General Obligation Bonds,
Series 1998B:
5,000 6.000%, 6/01/19 - MBIA Insured No Opt. Call AAA 5,873,450
7,265 5.250%, 6/01/26 - FSA Insured 6/08 at 101.00 AAA 7,428,027
3,380 District of Columbia Tobacco Settlement Financing Corporation, 5/11 at 101.00 BBB 3,093,883
Tobacco Settlement Asset-Backed Bonds, Series 2001, 6.250%,
5/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.7%
5,665 Florida Housing Finance Corporation, Housing Revenue Bonds, The 7/10 at 100.00 AAA 5,887,351
Park at Palm Bay, Series 2000R-1, 5.875%, 1/01/33 (Alternative
Minimum Tax) - FSA Insured
4,550 JEA, Florida, Water and Sewer System Revenue Bonds, Series 2002A, 4/07 at 100.00 AAA 4,741,601
5.375%, 10/01/30 - MBIA Insured
Lee County, Florida, Airport Revenue Bonds, Series 2000A:
3,075 5.875%, 10/01/18 (Alternative Minimum Tax) - FSA Insured 10/10 at 101.00 AAA 3,335,514
4,860 5.875%, 10/01/19 (Alternative Minimum Tax) - FSA Insured 10/10 at 101.00 AAA 5,247,731
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.8%
3,750 City of Atlanta, Georgia, Airport General Revenue Bonds, Series 1/10 at 101.00 AAA 3,905,100
2000B, 5.625%, 1/01/30 (Alternative Minimum Tax) - FGIC Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.6%
$ 5,000 City of Chicago, Illinois, General Obligation Bonds, Project and 1/06 at 102.00 AAA $ 5,041,400
Refunding Series 1996B, 5.125%, 1/01/25 - FGIC Insured
5,865 City of Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 7,146,796
Alive 21 Program, Series 2000A, 6.500%, 1/01/35 (Pre-refunded to
7/01/10) - FGIC Insured
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds, Dedicated Tax Revenues, Series 1997:
4,000 5.750%, 12/01/20 - AMBAC Insured 12/07 at 102.00 AAA 4,427,720
10,300 5.750%, 12/01/27 - AMBAC Insured 12/07 at 102.00 AAA 11,155,003
7,555 Chicago School Reform Board of Trustees of the Board of Education of 12/07 at 102.00 AAA 7,729,369
the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenues, Series 1997A, 5.250%, 12/01/27 -
AMBAC Insured
3,415 Chicago School Reform Board of Trustees of the Board of Education of No Opt. Call AAA 1,015,723
the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds,
Dedicated Tax Revenue, Series 1998-B1, 0.000%, 12/01/25 -
FGIC Insured
5,000 City of Chicago, Illinois, Chicago O'Hare International Airport, Special No Opt. Call Ca 1,300,000
Facility Revenue Bonds,United Air Lines, Inc. Project, Series 2001A,
6.375%, 11/01/35 (Alternative Minimum Tax)
(Mandatory put 5/01/13)#
15,000 City of Chicago, Illinois, Chicago O'Hare International Airport, 1/11 at 101.00 AAA 15,326,850
Second Lien Passenger Facility Charge Revenue Bonds, Series 2001A,
5.375%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured
City of Chicago, Illinois, Chicago O'Hare International Airport,
Second Lien Passenger Facility Charge Revenue Bonds, Series
2001C:
3,770 5.100%, 1/01/26 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 3,783,987
5,360 5.250%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,428,822
2,000 Illinois Health Facilities Authority, Revenue Bonds, Midwest Care 2/11 at 102.00 Aaa 2,086,260
Center Inc., Series 2001, 5.950%, 2/20/36
Illinois Health Facilities Authority, Revenue Bonds, Condell Medical
Center, Series 2002:
10,000 5.750%, 5/15/22 5/12 at 100.00 A3 10,274,500
4,000 5.500%, 5/15/32 5/12 at 100.00 A3 3,974,240
2,920 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place 6/12 at 101.00 AAA 2,936,469
Expansion Project Revenue Bonds, Series 2002A, 5.000%, 12/15/28
- MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.7%
4,640 Avon Community School Building Corporation, Hendricks County, 7/04 at 101.00 AAA 4,824,904
Indiana, First Mortgage Bonds, Series 1994, 5.500%, 1/01/16
(Pre-refunded to 7/01/04) - MBIA Insured
4,615 Beacon Heights Housing Development Corporation, Indiana, 12/03 at 100.00 AAA 4,621,230
Multifamily Mortgage Revenue Refunding Bonds, FHA Mortgage
Insured - Section 8 Assisted Project, Series 1991A, 7.625%, 2/01/21
4,170 Indiana Housing Finance Authority, Single Family Mortgage Revenue 1/10 at 100.00 Aaa 4,351,604
Bonds, Series 2000D-3, 5.950%, 7/01/26 (Alternative Minimum Tax)
5,125 Indianapolis, Indiana, Economic Development Revenue Bonds, 7/06 at 102.00 D 2,562,500
Willowbrook Apartments Project, Series 1996A, 6.500%, 7/01/26##
7,660 Hospital Authority of St. Joseph County, Indiana, Health System 2/11 at 100.00 AAA 8,027,910
Revenue Bonds, Memorial Health System, Series 2000, 5.625%,
8/15/33 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.0%
5,000 Burlington, Kansas, Environmental Improvement Revenue Bonds, No Opt. Call A2 5,330,500
Kansas City Power and Light Company Project, Series 1998A,
4.750%, 9/01/15 (Mandatory put 10/01/07)
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.6%
2,945 Lakeland Wesley Village, Inc., Kentucky, Mortgage Revenue Refunding 11/03 at 100.00 N/R 2,965,586
Bonds, Lakeland Wesley Village I Elderly Section 8 Assisted Project
- FHA-Insured Mortgage, Series 1991, 7.500%, 11/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7%
7,500 Maryland Health and Higher Educational Facilities Authority, Revenue 7/09 at 101.00 AA*** 8,876,025
Bonds, Johns Hopkins University Issue, Series 1999, 6.000%,
7/01/39 (Pre-refunded to 7/01/09)
27
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.8%
$ 7,375 Boston Housing Development Corporation, Massachusetts, Mortgage 1/04 at 102.00 AAA $ 7,439,458
Revenue Bonds, FHA-Insured Mortgage Loans - Section 8 Assisted
Projects, Series 1994A, 5.500%, 7/01/24 - MBIA Insured
1,595 Massachusetts Educational Financing Authority, Education Loan 12/09 at 101.00 AAA 1,782,732
Revenue and Refunding Bonds, Issue G, Series 2000A, 5.700%,
12/01/11 (Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 8.7%
10,000 Detroit, Michigan, Sewage Disposal System Revenue Bonds, Series 1/10 at 101.00 AAA 11,660,400
1999A, 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured
3,625 Fowlerville Community Schools, Ingham, Livingston and Shiawassee 5/07 at 100.00 AAA 4,070,803
Counties, Michigan, School Building and Site Bonds, Series 1996,
5.600%, 5/01/26 (Pre-refunded to 5/01/07) - MBIA Insured
3,275 Michigan State Hospital Finance Authority, Revenue and Refunding 2/04 at 102.00 Ba3 2,414,985
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
6,525 Michigan State Hospital Finance Authority, Revenue Bonds, Ascension 11/09 at 101.00 AAA 7,684,493
Health Credit Group, Series 1999A, 5.750%, 11/15/16 (Pre-refunded
to 11/15/09) - MBIA Insured
6,000 Michigan Strategic Fund, Collateralized Limited Obligation Revenue 9/11 at 100.00 A- 6,119,220
Refunding Pollution Control Bonds, Fixed Rate Conversion, Detroit
Edison Company, Series 1999C, 5.650%, 9/01/29 (Alternative
Minimum Tax)
7,500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, Detroit 12/12 at 100.00 AAA 7,698,450
Edison Company, Series 2002C Refunding, 5.450%, 12/15/32
(Alternative Minimum Tax) - XLCA Insured
5,900 Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue 11/11 at 100.00 AAA 5,990,270
Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/35
- MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.6%
510 Housing and Redevelopment Authorities of the Counties of Chisago, 3/04 at 102.85 AAA 525,703
Southcentral Minnesota, and Stearns, Single Family Mortgage
Revenue Bonds, Fannie Mae Mortgage-Backed Securities Program,
Series 1994B, 7.050%, 9/01/27 (Alternative Minimum Tax)
7,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA 7,174,580
Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32 - FGIC Insured
5,800 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 100.00 AA+ 6,007,988
Series 2000C, 6.100%, 7/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.3%
1,500 Missouri-Illinois Metropolitan District Bi-State Development Agency, 10/13 at 100.00 AAA 1,513,725
Metrolink Cross County Extension Project, Mass Transit Sales Tax
Appropriation Bonds, Series 2002B, 5.000%, 10/01/32 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6%
8,185 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101.50 AAA 8,366,871
Revenue Bonds, Series 1995A, 6.800%, 3/01/35 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 8.7%
4,885 Clark County, Nevada, General Obligation Limited Tax Bond Bank 7/10 at 100.00 AA 5,388,790
Bonds, Series 2000, 5.500%, 7/01/18
7,500 Clark County, Nevada, Airport System Subordinate Lien Revenue 7/10 at 101.00 AAA 8,914,050
Bonds, Series 1999A, 6.000%, 7/01/29 (Pre-refunded to 7/01/10) -
MBIA Insured
10,000 Clark County School District, Nevada, General Obligation Limited 6/06 at 101.00 AAA 11,226,700
Tax School Improvement Bonds, Series 1996, 6.000%, 6/15/15
(Pre-refunded to 6/15/06) - FGIC Insured
1,850 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 AAA 1,993,357
Revenue Bonds, Las Vegas Monorail Project, 1st Tier Series 2000,
5.625%, 1/01/32 - AMBAC Insured
10,000 Truckee Meadows Water Authority, Nevada, Water Revenue Bonds, 7/11 at 100.00 AAA 10,290,900
Series 2001A, 5.250%, 7/01/34 - FSA Insured
6,000 Washoe County, Nevada, Reno-Sparks Convention and Visitors 1/10 at 100.00 AAA 7,145,040
Authority, General Obligation Limited Tax and Revenue Bonds,
Series 1999A, 6.375%, 7/01/23 (Pre-refunded to 1/01/10) -
FSA Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.8%
$ 3,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA $ 3,141,240
Housing Revenue Bonds, Series 1997A, 5.550%, 5/01/27
(Alternative Minimum Tax) - AMBAC Insured
17,670 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 AAA 18,466,917
Revenue Bonds, Series 2000CC, 5.850%, 10/01/25 (Alternative
Minimum Tax) - MBIA Insured
9,645 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 BBB 8,305,406
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 4.4%
8,500 City of Farmington, New Mexico, Pollution Control Revenue 4/06 at 101.00 BBB- 8,417,040
Refunding Bonds, Public Service Company of New Mexico, San
Juan Project, Series 1997B, 5.800%, 4/01/22
New Mexico Hospital Equipment Loan Council, Hospital Revenue
Bonds, Presbyterian Healthcare Services, Series 2001A:
8,000 5.500%, 8/01/25 8/11 at 101.00 A+ 8,107,360
6,200 5.500%, 8/01/30 8/11 at 101.00 A+ 6,244,392
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.0%
7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,092,400
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
City of New York, New York, General Obligation Bonds, Fiscal
Series 1997G:
1,410 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 1,639,717
7,880 6.000%, 10/15/26 10/07 at 101.00 A 8,611,973
5,000 New York City Municipal Water Finance Authority, New York, Water 6/09 at 101.00 AAA 5,037,550
and Sewer System Revenue Bonds, Fiscal Series 1999B, 5.000%,
6/15/29 - FSA Insured
6,000 New York City Municipal Water Finance Authority, New York, Water 6/09 at 101.00 AAA 6,420,180
and Sewer System Revenue Bonds, Fiscal Series 2000A, 5.500%,
6/15/32 - FGIC Insured
2,255 New York City Transit Authority, Metropolitan Transportation 1/10 at 101.00 AAA 2,507,199
Authority, and the Triborough Bridge and Tunnel Authority, New York,
Certificates of Participation, Series 2000A, 5.750%, 1/01/20 -
AMBAC Insured
9,750 New York Transitional Finance Authority, New York, Future Tax Secured 5/10 at 101.00 AA+*** 11,601,817
Bonds, Fiscal Series 2000B, 6.000%, 11/15/29 (Pre-refunded to 5/15/10)
10,000 Dormitory Authority of the State of New York, Court Facilities Lease 5/10 at 101.00 A 10,650,000
Revenue Bonds, City of New York Issue, Series 1999, 6.000%, 5/15/39
5,650 Dormitory Authority of the State of New York, Mental Health Services 8/09 at 101.00 AAA 5,841,027
Facilities Improvement Revenue Bonds, Series 1999D, 5.250%,
8/15/24 - FSA Insured
5,400 State of New York Mortgage Agency, Homeowner Mortgage Revenue 3/09 at 101.00 Aa1 5,479,488
Bonds, Series 79, 5.300%, 4/01/29 (Alternative Minimum Tax)
7,545 New York State Urban Development Corporation, Corporate Purpose 7/06 at 102.00 AAA 8,023,655
Senior Lien Bonds, Series 1996, 5.500%, 7/01/26
5,000 New York State Urban Development Corporation, Correctional and No Opt. Call AA- 5,573,400
Youth Facilities Service Contract Revenue Bonds, Series 2002A,
5.500%, 1/01/17 (Mandatory put 1/01/11)
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.6%
18,555 North Carolina Eastern Municipal Power Agency, Power System 1/04 at 100.00 AAA 18,613,819
Revenue Bonds, Refunding Series 1993 B, 5.500%, 1/01/17 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 2.1%
10,000 Grand Forks, North Dakota, Sales Tax Revenue Bonds, Aurora 12/07 at 100.00 AAA 10,715,000
Project, Series 1997A, 5.625%, 12/15/29 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.3%
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
5,000 6.750%, 4/01/18 4/10 at 101.00 BBB+ 5,429,750
5,000 6.750%, 4/01/22 4/10 at 101.00 BBB+ 5,353,700
985 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 1,032,172
Program Residential Mortgage Revenue Bonds, Series 2000C,
6.050%, 3/01/32 (Alternative Minimum Tax)
29
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.6%
$ 10,000 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, Revenue 12/08 at 100.00 B- $ 8,411,300
Bonds, Refunding Series 2001B, American Airlines Inc, 5.650%,
12/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.0%
95 Delaware River Port Authority, New Jersey and Pennsylvania, Revenue 1/10 at 100.00 AAA 106,312
Bonds, Series 1999, 5.750%, 1/01/15 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.0%
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 11,083,800
Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/21
3,750 Greenwood County, South Carolina, Hospital Revenue Bonds, Self 10/11 at 100.00 A+ 3,741,825
Memorial Hospital, Series 2001, 5.500%, 10/01/31
2,500 Lexington County Health Services District, South Carolina, Hospital 11/13 at 100.00 A 2,601,225
Revenue Bonds, Series 2003 Refunding and Improvement, 5.750%,
11/01/28
2,080 South Carolina State Housing Finance and Development Authority, 6/10 at 100.00 Aaa 2,094,810
Mortgage Revenue Bonds, Series 2000A-2, 6.000%, 7/01/20
(Alternative Minimum Tax) - FSA Insured
Tobacco Settlement Revenue Management Authority, South Carolina,
Tobacco Settlement Asset Backed Bonds, Series 2001B:
11,530 6.000%, 5/15/22 5/11 at 101.00 BBB 10,447,679
4,000 6.375%, 5/15/28 5/11 at 101.00 BBB 3,524,640
3,000 6.375%, 5/15/30 No Opt. Call BBB 2,618,280
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.1%
2,500 South Dakota Education Loans Inc., Revenue Bonds, Subordinate 6/08 at 102.00 A2 2,567,925
Series 1998-1K, 5.600%, 6/01/20 (Alternative Minimum Tax)
6,445 Sioux Falls, South Dakota, Industrial Revenue Refunding Bonds, Great 10/14 at 100.00 AAA 8,538,916
Plains Hotel Corporation Project, Series 1989, 8.500%, 11/01/16
(Alternative Minimum Tax) (Pre-refunded to 10/15/14)
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 6.6%
5,000 Knox County Health, Educational, and Housing Facilities Board, 4/12 at 101.00 Baa2 5,150,950
Tennessee, Hospital Facilities Revenue Bonds, Baptist Health
System of East Tennessee, Series 2002, 6.500%, 4/15/31
20,060 Knox County Health, Educational, and Housing Facility Board, 1/13 at 80.49 AAA 10,322,876
Tennessee, Hospital Revenue Bonds, Covenant Health, Series 2002A
Refunding, 0.000%, 1/01/17 - FSA Insured
12,500 Health and Educational Facilities Board of the Metropolitan 11/09 at 101.00 AAA 14,777,125
Government of Nashville and Davidson County, Tennessee, Revenue
Bonds, Ascension Health Credit Group, Series 1999A, 5.875%,
11/15/28 (Pre-refunded to 11/15/09) - AMBAC Insured
Tennessee Housing Development Agency, Homeownership Program
Bonds, Issue 2000-1:
1,785 5.750%, 7/01/10 (Alternative Minimum Tax) No Opt. Call AA 1,878,463
2,145 6.000%, 7/01/13 (Alternative Minimum Tax) - MBIA Insured 7/10 at 101.00 AAA 2,234,704
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.7%
10,000 Brazos River Authority, Texas, Pollution Control Revenue Refunding No Opt. Call BBB 10,469,400
Bonds, TXU Electric Company Project, Series 2001C, 5.750%,
5/01/36 (Alternative Minimum Tax) (Mandatory put 11/01/11)
5,110 Brazos River Authority, Texas, Pollution Control Revenue Refunding 4/13 at 101.00 BBB 5,686,664
Bonds, TXU Electric Company Project, Series 1999C, 7.700%,
4/01/32 (Alternative Minimum Tax)
4,500 Brazos River Authority, Texas, Revenue Refunding Bonds, Reliant 12/08 at 102.00 BBB- 4,875,705
Energy, Inc. Project, Series 1999B, 7.750%, 12/01/18
5,500 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 5,534,265
Bonds, Series 2001A, 5.000%, 12/01/31 - AMBAC Insured
1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101.00 BBB 1,595,105
Revenue Bonds, Valero Energy Corporation Project, Series 2001,
6.650%, 4/01/32 (Alternative Minimum Tax)
4,590 Houston, Texas, Airport System Subordinate Lien Revenue Bonds, 7/10 at 100.00 AAA 4,761,941
Series 2000A, 5.625%, 7/01/30 (Alternative Minimum Tax) -
FSA Insured
3,500 Houston, Texas, Water and Sewer System Junior Lien Revenue 12/12 at 100.00 AAA 3,511,270
Refunding Bonds, Series 2002A, 5.000%, 12/01/30 - FSA Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 Katy Independent School District, Harris, Fort Bend, and Waller 2/12 at 100.00 AAA $ 5,031,350
Counties, Texas, General Obligation Bonds, Series 2002A,
5.000%, 2/15/27
9,000 Matagorda County Navigation District 1, Texas, Collateralized Revenue No Opt. Call AAA 9,090,090
Refunding Bonds, Houston Light and Power Company Project,
Series 1997, 5.125%, 11/01/28 (Alternative Minimum Tax) -
AMBAC Insured
1,355 Panhandle Regional Housing Finance Corporation, Texas, GNMA 11/03 at 100.00 AAA 1,362,358
Mortgage-Backed Securities Program, Single Family Mortgage
Revenue Bonds, Series 1991A, 7.500%, 5/01/24 (Alternative
Minimum Tax)
4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply System 10/12 at 100.00 Baa2 4,838,603
Revenue Refunding Bonds, Series 2002A, 6.000%, 10/01/21
5,500 Spring Independent School District, Texas, Harris County, Texas, 8/11 at 100.00 AAA 5,522,495
Unlimited Tax Schoolhouse Bonds, Series 2001, 5.000%, 8/15/26
4,520 State of Texas, General Obligation Bonds, Water Financial 8/09 at 100.00 Aa1 4,755,763
Assistance, Series 1999C, State Participation Program, 5.500%,
8/01/35
4,560 Winter Garden Housing Finance Corporation, Texas, GNMA/FNMA 4/04 at 103.00 AAA 4,662,144
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1994, 6.950%, 10/01/27 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.9%
3,565 Utah Associated Municipal Power System, Revenue Bonds, Payson 4/13 at 100.00 AAA 3,598,190
Power Project, Series 2003A, 5.000%, 4/01/24 - FSA Insured
16,050 Utah County, Utah, Hospital Revenue Bonds, IHC Health Services, 8/07 at 101.00 AAA 16,406,792
Inc., Series 1997, 5.250%, 8/15/26 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.4%
Vermont Educational and Health Buildings Financing Agency,
Revenue Bonds, Fletcher Allen Health Care Project, Series 2000A:
3,720 6.125%, 12/01/15 - AMBAC Insured 12/10 at 101.00 AAA 4,274,578
4,265 6.250%, 12/01/16 - AMBAC Insured 12/10 at 101.00 AAA 4,933,880
2,925 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/09 at 100.00 AAA 3,023,748
Series 2000-13A, 5.950%, 11/01/25 (Alternative Minimum Tax) -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.3%
8,810 Public Utility District No. 1 of Chelan County, Washington, Chelan 7/11 at 101.00 AAA 9,161,690
Hydro Consolidated System Revenue Bonds, Series 2001A, 5.600%,
1/01/36 (Alternative Minimum Tax) - MBIA Insured
7,225 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 7,793,824
Terminal 18 Project, Series 1999B, 6.000%, 9/01/20 (Alternative
Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.0%
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,962,000
Series 2003L, Appalachian Power Company Project, 5.500%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.1%
10,000 Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco 6/12 at 100.00 BBB 9,140,800
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27
5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- 5,137,250
Bonds, Madison Gas & Electric Company Projects, Series 2002A,
5.875%, 10/01/34 (Alternative Minimum Tax)
2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 1,971,943
Bonds, Wheaton Franciscan Services, Series 2003A, 5.125%, 8/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
$ 762,380 Total Long-Term Investments (cost $731,588,439) - 148.2% 769,854,376
=============-----------------------------------------------------------------------------------------------------------------------
31
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.0%
$ 5,000 Alachua County Health Facilities Authority, Florida, Continuing Care VMIG-1 $ 5,000,000
Retirement Community Revenue Bonds, Oak Hammock Project,
Variable Rate Demand Obligations, Series 2002A, 1.150%, 10/01/32+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,000 Total Short-Term Investments (cost $5,000,000) 5,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $736,588,439) - 149.2% 774,854,376
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.5% 23,506,253
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.7)% (279,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $519,360,629
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
## Non-income producing security. In the case of a bond,
non-income producing generally denotes that the issuer
has defaulted on the payment of principal or interest
or has filed for bankruptcy.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
32
Nuveen Quality Income Municipal Fund, Inc. (NQU)
Portfolio of
INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.4%
$ 3,500 Bessemer Governmental Utility Services Corporation, Alabama, Water 6/08 at 102.00 AAA $ 3,591,770
Supply Revenue Bonds, Series 1998, 5.200%, 6/01/24 - MBIA Insured
Jefferson County, Alabama, Sewer Revenue Capitol Improvement
Warrants, Series 2001A:
7,475 5.500%, 2/01/31 (Pre-refunded to 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 8,597,745
6,340 5.500%, 2/01/31 (Pre-refunded to 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 7,252,516
6,970 5.500%, 2/01/31 (Pre-refunded to 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 8,016,894
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.8%
6,360 Alaska Housing Finance Corporation, Governmental Purpose Bonds, 12/05 at 102.00 AAA 6,649,253
Series 1995A, 5.875%, 12/01/30 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.4%
5,350 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,410,990
Multipurpose Stadium Facility Project, Series 2003A, 5.000%,
7/01/28 - MBIA Insured
5,000 Maricopa County Industrial Development Authority, Arizona, 9/10 at 103.00 AAA 5,035,650
Multifamily Housing Revenue Bonds, Bay Club at Mesa Cove
Project, Series 2000A, 5.800%, 9/01/35 - MBIA Insured
1,000 Mesa, Arizona, Utility System Revenue Refunding Bonds, No Opt. Call AAA 1,114,360
Series 2002, 5.250%, 7/01/17 - FGIC Insured
8,010 Salt River Project Agricultural Improvement and Power District, 1/12 at 101.00 AA 8,199,517
Arizona, Electric System Revenue Refunding Bonds, Salt River
Project, Series 2002A, 5.125%, 1/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.5%
3,655 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102.00 AAA 3,795,717
Revenue Bonds, Mortgage-Backed Securities Program, Series
1995B, 6.700%, 7/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.3%
5,000 State of California, General Obligation Veterans Welfare Bonds, 12/03 at 102.00 A 5,025,450
Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
10,000 State of California, Various Purpose General Obligation Bonds, 4/09 at 101.00 AAA 9,733,300
Series 1999, 4.750%, 4/01/29 - MBIA Insured
14,600 State of California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A3 14,497,800
5.250%, 2/01/28
1,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 1,092,480
Bonds, Series 2002A, 5.750%, 5/01/17
17,000 California Public Works Board, Lease Revenue Bonds, Department of 11/04 at 102.00 Aaa 18,349,970
Corrections, California State Prison at Monterey County - Soledad II,
Series 1994A, 7.000%, 11/01/19 (Pre-refunded to 11/01/04)
8,500 Foothill-Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,515,045
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
2,500 Los Angeles Community Redevelopment Agency, California, Tax 1/04 at 100.00 BBB*** 2,526,200
Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.6%
10,000 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100.00 AAA 10,399,300
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 (Alternative
Minimum Tax) - AMBAC Insured
11,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/07 at 101.00 AAA 10,950,390
Series 1997A, 4.750%, 9/01/23 - MBIA Insured
14,400 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 65.63 AAA 7,050,240
2000 Series B, 0.000%, 9/01/17 - MBIA Insured
8,740 Poudre School District R-1, Larimer County, Colorado, General 12/10 at 100.00 AAA 9,238,267
Obligation Bonds, Series 2000, 5.125%, 12/15/19 - FGIC Insured
33
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6%
$ 4,395 City of Bridgeport, Connecticut, General Obligation Bonds, Series C, 8/11 at 100.00 AAA $ 4,821,315
5.375%, 8/15/17 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.7%
5,000 Washington Convention Center Authority, District of Columbia, Senior 10/08 at 101.00 AAA 5,351,650
Lien Dedicated Tax Revenue Bonds, Series 1998, 5.250%, 10/01/17
- AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.6%
2,000 Dade County, Florida, Water and Sewer System Revenue Bonds, 10/07 at 102.00 AAA 2,202,480
Series 1997, 5.375%, 10/01/16 - FGIC Insured
5,300 Escambia County Health Facilities Authority, Florida, Revenue Bonds, No Opt. Call AA 5,736,296
Ascension Health Credit Group, Series 2003A, 5.250%, 11/15/14
5,000 Orange County Health Facility Authority, Florida, Hospital Revenue 11/10 at 101.00 A 5,418,350
Bonds, Adventist Health System - Sunbelt Obligated Group,
Series 2000, 6.500%, 11/15/30
- ------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.3%
10,000 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 AAA 10,946,300
Refunding Bonds, Series 2000B, 5.750%, 7/01/21 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.0%
6,450 City of Chicago, Illinois, General Obligation Project and Refunding 7/12 at 100.00 AAA 6,742,508
Bonds, Series 2002A, 5.000%, 1/01/18 - AMBAC Insured
32,670 City of Chicago, Illinois, General Obligation Bonds, City Colleges of No Opt. Call AAA 6,913,952
Chicago Capital ImprovementProject, Series 1999, 0.000%, 1/01/32
- FGIC Insured
5,000 City of Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 5,537,700
Alive 21 Program, Series 2000A, 6.000%, 1/01/28 - FGIC Insured
5,045 City of Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 5,474,884
Series 2000D, 5.750%, 1/01/30 - FGIC Insured
Board of Education of the City of Chicago, Illinois, Unlimited
Tax General Obligation Bonds, Dedicated Revenues, Series 2001C:
1,000 5.500%, 12/01/18 - FSA Insured 12/11 at 100.00 AAA 1,099,650
3,690 5.000%, 12/01/19 - FSA Insured 12/11 at 100.00 AAA 3,844,463
3,000 5.000%, 12/01/20 - FSA Insured 12/11 at 100.00 AAA 3,100,590
2,000 5.000%, 12/01/21 - FSA Insured 12/11 at 100.00 AAA 2,054,100
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds, Dedicated Tax Revenue, Series 1998-B1:
9,400 0.000%, 12/01/14 - FGIC Insured No Opt. Call AAA 5,740,204
4,400 0.000%, 12/01/15 - FGIC Insured No Opt. Call AAA 2,530,792
12,750 City of Chicago, Illinois, Chicago Midway Airport, Revenue Bonds, 1/09 at 101.00 AAA 12,758,160
Series 1998A, 5.125%, 1/01/35 (Alternative Minimum Tax) -
MBIA Insured
City of Chicago, Illinois, Second Lien Wastewater Transmission
Revenue Bonds, Series 2000:
8,000 5.750%, 1/01/25 - MBIA Insured 1/10 at 101.00 AAA 8,655,040
7,750 6.000%, 1/01/30 (Pre-refunded to 1/01/10) - MBIA Insured 1/10 at 101.00 AAA 9,130,973
11,000 Illinois Health Facilities Authority, Hospital Revenue Bonds, 11/03 at 102.00 AAA 11,253,220
Hindsdale Hospital, Series 1993A, 7.000%, 11/15/19
10,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa Health 2/10 at 101.00 AAA 10,746,800
System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured
2,545 Illinois Housing Development Authority, Section 8 Elderly Housing 3/04 at 101.00 A 2,572,410
Revenue Bonds, Garden House of Maywood Development,
Series 1992, 7.000%, 9/01/18
Illinois Educational Facilities Authority, Student Housing
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002:
3,000 6.625%, 5/01/17 5/12 at 101.00 Baa2 3,177,720
1,800 6.000%, 5/01/22 5/12 at 101.00 Baa2 1,805,814
5,000 State of Illinois, General Obligation Bonds, Illinois FIRST, Series 12/10 at 100.00 AAA 5,358,450
of December 2000, 5.450%, 12/01/21 - MBIA Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 3,360 Joliet Regional Port District, Illinois, Airport Facilities Revenue 7/07 at 103.00 N/R $ 3,009,787
Bonds, Lewis University Airport, Series 1997A, 7.250%, 7/01/18
(Alternative Minimum Tax)
2,270 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,282,803
Bonds McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.7%
3,240 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, 7/12 at 100.00 AAA 3,524,440
Marion General Hospital Project, Series 2002, 5.625%, 7/01/19
- AMBAC Insured
5,125 City of Petersburg, Indiana, Pollution Control Refunding Revenue 12/04 at 102.00 A 5,398,726
Bonds, Indianapolis Power & Light Company Project, Series 1995A,
6.625%, 12/01/24 - ACA Insured
5,530 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/08 at 101.00 AAA 5,279,878
Memorial Health System, Series 1998A, 4.625%, 8/15/28 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.1%
8,585 Iowa Finance Authority, Hospital Facilities Revenue Bonds, Iowa 7/08 at 102.00 AAA 8,697,979
Health System, Series 1998A, 5.125%, 1/01/28 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.6%
4,585 Unified School District No. 232 of Johnson County, Kansas, General 9/10 at 100.00 Aaa 4,690,776
Obligation Bonds, Series 2000, 4.750%, 9/01/19 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.3%
2,500 Commonwealth of Kentucky, State Property and Buildings 2/12 at 100.00 AAA 2,703,775
Commission, Revenue Refunding Bonds, Project No. 74, Series 2002,
5.375%, 2/01/18 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.0%
10,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, No Opt. Call AAA 11,104,800
Franciscan Missionaries of Our Lady Health System Project,
Series 1998A, 5.750%, 7/01/25 - FSA Insured
5,500 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA 5,538,115
University, Series 2002A, 5.000%, 7/01/32 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.4%
7,405 Massachusetts Health and Educational Facilities Authority, Revenue No Opt. Call AAA 8,317,000
Bonds, Massachusetts Institute of Technology, Series 2002K,
5.500%, 7/01/32
6,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 5,784,180
Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A,
5.600%, 12/01/19 (Alternative Minimum Tax)
8,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102.00 AAA 8,516,660
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured
13,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 101.00 AAA 13,531,050
Revenue Bonds, Subordinated Series 1999A, 5.000%, 1/01/39
- AMBAC Insured
6,945 Massachusetts Water Pollution Abatement Trust, Water Pollution 8/09 at 101.00 AAA 7,563,313
Abatement Revenue Bonds, MWRA Program, Subordinate
Series 1999A, 5.750%, 8/01/29
10,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/10 at 101.00 AAA 10,959,100
Series 2000A, 5.750%, 8/01/39 - FGIC Insured
5,380 University of Massachusetts Building Authority, Project Revenue 11/10 at 100.00 AAA 5,730,615
Bonds, Senior Series 2000-2, 5.250%, 11/01/20 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.1%
1,000 Detroit, Michigan, Water Supply System Revenue Bonds, Senior 7/11 at 101.00 AAA 1,173,240
Lien, Series 2001A, 5.750%, 7/01/28 (Pre-refunded to 7/01/11) -
FGIC Insured
7,425 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 11/09 at 101.00 A1 7,750,438
Henry Ford Health System, Series 1999A, 6.000%, 11/15/24
35
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.8%
Chaska, Minnesota, Electric Revenue Bonds, Generating Facility
Project, Series 2000A:
$ 1,930 6.000%, 10/01/20 10/10 at 100.00 A3 $ 2,054,929
2,685 6.000%, 10/01/25 10/10 at 100.00 A3 2,820,243
3,655 Dakota County Housing and Redevelopment Authority, Washington No Opt. Call AAA 5,220,656
County Housing and Redevelopment Authority, Minnesota, Single
Family Residential Mortgage-Backed Program Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, Airport 1/08 at 101.00 AAA 3,022,740
Revenue Bonds, Series 1998A, 5.000%, 1/01/30 - AMBAC Insured
1,180 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/04 at 102.00 AA+ 1,205,394
Series 1994J, 6.950%, 7/01/26 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.7%
3,080 Canton Housing Development Corporation, Mississippi, Multifamily No Opt. Call AAA 3,445,935
Mortgage Revenue Refunding Bonds, Canton Estates Apartments
Project, FHA-Insured Mortgage Loan, Section 8 Assisted Project,
Series 1990A, 7.750%, 8/01/24
2,500 Mississippi Hospital Equipment and Facilities Authority, Revenue 1/11 at 101.00 Aaa 2,629,850
Bonds, Forrest County General Hospital Project, Series 2000,
5.500%, 1/01/27 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.8%
2,400 Missouri-Illinois Metropolitan District Bi-State Development Agency, 10/13 at 100.00 AAA 2,451,672
Metrolink Cross County Extension Project, Mass Transit Sales Tax
Appropriation Bonds, Series 2002B, 5.000%, 10/01/23 -
FSA Insured
15,350 Public Building Corporation of the City of Springfield, Missouri, No Opt. Call AAA 3,752,461
Leasehold Revenue Bonds, Series 2000A, Jordan Valley Park
Projects, 0.000%, 6/01/30 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9%
8,530 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101.50 AAA 8,719,537
Revenue Bonds, Series 1995A, 6.800%, 3/01/35 (Alternative
Minimum Tax)
6,315 Nebraska Investment Finance Authority, Single Family Housing 3/05 at 101.50 AAA 6,481,400
Revenue Bonds, Series 1995B, 6.450%, 3/01/35 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.2%
Clark County School District, Nevada, General Obligation Bonds,
Series 2002C:
34,470 5.000%, 6/15/20 - MBIA Insured 6/12 at 100.00 AAA 35,576,832
12,150 5.000%, 6/15/21 - MBIA Insured 6/12 at 100.00 AAA 12,470,274
10,380 5.000%, 6/15/22 - MBIA Insured 6/12 at 100.00 AAA 10,594,451
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.7%
4,200 Camden County Pollution Control Financing Authority, New Jersey, 12/03 at 100.00 B2 4,030,194
Solid Waste Disposal and Resource Recovery System Revenue
Bonds, Series 1991D, 7.250%, 12/01/10
1,000 New Jersey Building Authority, State Building Revenue Bonds, 12/12 at 100.00 AAA 1,112,520
Series 2002A, 5.000%, 12/15/21 (Pre-refunded to 12/15/12)
- FSA Insured
3,200 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AA- 3,464,416
System Bonds, Series 2003C, 5.500%, 6/15/22
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,411,046
System Bonds, Series 2001B, 6.000%, 12/15/19 (Pre-refunded to
12/15/11) - MBIA Insured
3,125 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 BBB 2,840,313
Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.7%
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 A+ 6,100,617
Bonds, Presbyterian Healthcare Services, Series 2001A,
5.500%, 8/01/21
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 24.8%
$ 25,000 Erie County Tobacco Asset Securitization Corporation, New York, 7/10 at 101.00 BBB $23,861,750
Senior Tobacco Settlement Asset-Backed Bonds, Series 2000,
6.125%, 7/15/30
1,130 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- 1,154,532
Revenue Bonds, Series 2001A, 5.375%, 9/01/25
15,000 Metropolitan Transportation Authority, New York, Dedicated Tax 4/10 at 100.00 AAA 17,685,150
Fund Bonds, Series 2000A, 6.000%, 4/01/30 (Pre-refunded to
4/01/10) - FGIC Insured
2,070 N.F. Housing and Commercial Rehabilitation Corporation, New York, No Opt. Call AA 2,300,846
Multifamily Mortgage Revenue Refunding Bonds, FHA-Insured
Mortgage - Section 8 Assisted Project, Series 1992, 7.350%, 8/01/23
12,500 Nassau County Tobacco Settlement Corporation, New York, Tobacco 7/09 at 101.00 Baa2 12,440,875
Settlement Asset-Backed Bonds, Series 1999A, 6.400%, 7/15/33
5,475 City of New York, New York, General Obligation Bonds, Fiscal 8/04 at 101.00 Aaa 5,797,806
Series 1995B-1, 7.250%, 8/15/19 (Pre-refunded to 8/15/04)
14,800 City of New York, New York, General Obligation Bonds, Fiscal 6/07 at 101.00 AAA 16,316,408
Series 1997M, 5.500%, 6/01/17 - AMBAC Insured
6,700 City of New York, New York, General Obligation Bonds, Fiscal 2/05 at 101.00 Aaa 7,234,727
Series 1995F, 6.625%, 2/15/25 (Pre-refunded to 2/15/05)
City of New York, New York, General Obligation Bonds, Fiscal
Series 2002G:
950 5.000%, 8/01/17 8/12 at 100.00 A 971,898
10,545 5.750%, 8/01/18 8/12 at 100.00 A 11,516,827
5,000 City of New York, New York, General Obligation Bonds, Fiscal 2003 8/12 at 100.00 A 5,460,800
Series A, 5.750%, 8/01/16
City of New York, New York, General Obligation Bonds, Fiscal
Series 1997H:
45 6.125%, 8/01/25 (Pre-refunded to 8/01/07) 8/07 at 101.00 A*** 52,294
5,955 6.125%, 8/01/25 8/07 at 101.00 A 6,612,194
4,190 New York Municipal Water Finance Authority, New York, Water and 6/05 at 101.00 AAA 4,547,617
Sewer System Revenue Bonds, Fiscal Series 1996A, 5.875%,
6/15/25 (Pre-refunded to 6/15/05) - MBIA Insured
New York Transitional Finance Authority, New York, Future Tax
Secured Bonds, Fiscal Series 2000B:
8,035 5.750%, 11/15/19 (Pre-refunded to 5/15/10) 5/10 at 101.00 AA+*** 9,442,330
2,065 5.750%, 11/15/19 5/10 at 101.00 AA+ 2,332,273
2,250 Dormitory Authority of the State of New York, Mount Sinai School No Opt. Call AAA 2,369,025
of Medicine, Insured Revenue Bonds, Series 1994A, 5.150%,
7/01/24 - MBIA Insured
Dormitory Authority of the State of New York, Mental Health
Services Facilities Improvement Revenue Bonds, Series 1997A:
4,825 5.750%, 2/15/27 (Pre-refunded to 2/15/07) 2/07 at 102.00 AA-*** 5,518,449
175 5.750%, 2/15/27 2/07 at 102.00 AA- 184,562
Dormitory Authority of the State of New York, Mental Health
Services Facilities Improvement Revenue Bonds, Series 2000B:
8,830 6.000%, 2/15/30 (Pre-refunded to 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 10,364,036
1,170 6.000%, 2/15/30 - MBIA Insured 2/10 at 100.00 AAA 1,315,490
1,900 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 1,915,732
Mount Sinai NYU Obligated Group, Series 2000A, 6.500%, 7/01/25
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds Revenue Bonds, New York
City Municipal Water Finance Authority Projects, Series 2001C,
Second Resolution Bonds:
6,035 5.000%, 6/15/20 6/11 at 100.00 AAA 6,242,906
6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,744,241
8,000 New York State Medical Care Facilities Finance Agency, New York 2/05 at 102.00 AAA 8,702,400
Hospital FHA-Insured Mortgage Revenue Bonds, Series 1994A,
6.500%, 8/15/29 (Pre-refunded to 2/15/05) - AMBAC Insured
5,000 New York State Medical Care Facilities Finance Agency, Brookdale 2/05 at 102.00 AAA 5,462,700
Hospital Medical Center Secured Hospital Revenue Bonds,
Series 1995A, 6.850%, 2/15/17 (Pre-refunded to 2/15/05)
New York State Medical Care Facilities Finance Agency,
FHA-Insured Mortgage Project Revenue Bonds, Series 1995F:
3,440 6.200%, 8/15/15 (Pre-refunded to 8/15/05) 8/05 at 102.00 AA*** 3,808,562
4,250 6.300%, 8/15/25 (Pre-refunded to 8/15/05) 8/05 at 102.00 AA*** 4,712,825
37
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 3,040 Penfield-Crown Oak Housing Development Corporation, New York, 2/04 at 100.00 AAA $ 3,049,576
Multifamily Mortgage Revenue Refunding Bonds, Crown Oak Estates
- FHA-Insured Mortgage Section 8 Assisted Project,
Series 1991A, 7.350%, 8/01/23
13,620 The Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 14,298,412
Bonds, One Hundred Twenty Eighth Series, 5.000%, 11/01/20
- FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.6%
7,500 North Carolina Municipal Power Agency Number 1, Catawba Electric 1/13 at 100.00 AAA 7,990,725
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured
13,720 North Carolina Medical Care Commission, Hospital Revenue Bonds, 12/08 at 101.00 AAA 13,511,868
Pitt County Memorial Hospital, Series 1998A, 4.750%, 12/01/28
- MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.1%
Cincinnati City School District, Hamilton County, Ohio, General
Obligation Bonds, Series 2002:
2,165 5.250%, 6/01/19 - FSA Insured 12/12 at 100.00 AAA 2,317,394
2,600 5.250%, 6/01/21 - FSA Insured 12/12 at 100.00 AAA 2,750,930
2,000 5.000%, 12/01/22 - FSA Insured 12/12 at 100.00 AAA 2,053,540
1,990 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds, 3/05 at 102.00 Aaa 2,057,242
GNMA Mortgage-Backed Securities Program, Series 1995A-2,
6.625%, 3/01/26 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 6.5%
17,510 Pottawatomie County Home Finance Authority, Oklahoma, Single No Opt. Call AAA 23,297,580
Family Mortgage Revenue Bonds, Series 1991A, 8.625%, 7/01/10
11,750 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, Revenue 12/08 at 100.00 B- 9,999,955
Refunding Bonds, Series 2000B, 6.000%, 6/01/35 (Alternative
Minimum Tax) (Mandatory put 12/01/08)
23,005 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, Revenue 12/08 at 100.00 B- 19,350,196
Refunding Bonds, American Airlines Inc., Series 2001B, 5.650%,
12/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4%
3,000 Administrative School District No. 1, Bend-La Pine, Deschutes 6/11 at 100.00 Aaa 3,309,360
County, Oregon, General Obligation Bonds, Series 2001A, 5.500%,
6/15/18 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.7%
6,615 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 7,110,067
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
2,820 Falls Township Hospital Authority, Pennsylvania, Refunding Revenue 2/04 at 101.00 AAA 2,998,365
Bonds, The Delaware Valley Medical Center Project, FHA-Insured
Mortgage, Series 1992, 7.000%, 8/01/22
7,000 Pennsylvania General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 7,531,930
5.000%, 9/15/15
7,800 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, General 8/13 at 100.00 AAA 7,840,638
Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA Insured
Philadelphia School District, Pennsylvania, General Obligation
Bonds, Series 2002B:
6,000 5.625%, 8/01/19 - FGIC Insured 8/12 at 100.00 AAA 6,571,920
5,500 5.625%, 8/01/20 - FGIC Insured 8/12 at 100.00 AAA 6,032,675
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.3%
8,150 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset- 5/12 at 100.00 BBB 7,360,673
Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
1,500 Puerto Rico Public Improvement, General Obligation Bonds, No Opt. Call A- 1,597,515
Series 2002A, 5.500%, 7/01/29
1,500 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 A- 1,537,875
Facilities Revenue Refunding Bonds, Series 2002D, 5.125%, 7/01/20
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.4%
$ 24,725 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- $26,062,623
Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22
Horry County School District, South Carolina, General Obligation
Bonds, Series 2001A:
5,840 5.000%, 3/01/20 3/12 at 100.00 AA+ 6,050,941
5,140 5.000%, 3/01/21 3/12 at 100.00 AA+ 5,296,821
13,615 South Carolina Transportation Infrastructure Bank, Junior Lien 10/11 at 100.00 Aaa 14,128,149
Revenue Bonds, Series 2001B, 5.125%, 10/01/21 - AMBAC Insured
10,000 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101.00 BBB 8,811,600
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.4%
3,000 Knox County Health, Educational, and Housing Facilities Board, 4/12 at 101.00 Baa2 3,092,190
Tennessee, Hospital Facilities Revenue Bonds, Baptist Health
System of East Tennessee, Series 2002, 6.375%, 4/15/22
7,415 City of Memphis, Tennessee, General Improvement Bonds, 11/10 at 101.00 AA 7,689,652
Series 2002, 5.000%, 11/01/20
8,315 Tennessee Housing Development Agency, Homeownership Program 7/10 at 100.00 AA 8,814,565
Bonds, Issue 2000-2B, 6.350%, 1/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 18.4%
Arlington Independent School District, Tarrant County, Texas,
General Obligation Bonds, Series 1995:
3,410 0.000%, 2/15/11 2/05 at 71.95 Aaa 2,385,738
4,105 0.000%, 2/15/14 2/05 at 58.79 Aaa 2,346,664
6,500 Bell County Health Facilities Development Corporation, Texas, 11/08 at 101.00 A- 6,461,520
Retirement Facility Revenue Bonds, Buckner Retirement Services,
Inc. Obligated Group Project, Series 1998, 5.250%, 11/15/19
14,200 Brazos River Authority, Texas, Pollution Control Revenue Refunding No Opt. Call BBB 14,866,548
Bonds, TXU Electric Company Project, Series 2001C, 5.750%,
5/01/36 (Alternative Minimum Tax) (Mandatory put 11/01/11)
5,000 Cities of Dallas and Fort Worth, Texas, Dallas-Ft. Worth 11/11 at 100.00 AAA 5,242,250
International Airport, Joint Revenue Refunding and Improvement
Bonds, Series 2001A, 5.625%, 11/01/21 (Alternative Minimum Tax) -
FGIC Insured
1,110 Ft. Worth Housing Finance Corporation, Texas, Home Mortgage 4/04 at 101.00 Aa2 1,124,153
Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11
8,235 Grand Prairie Housing Finance Corporation, GNMA Multifamily 9/10 at 105.00 AAA 8,619,904
Housing Revenue Bonds, Landings of Carrier Project, Series 2000A,
6.875%, 9/20/42
2,700 Houston Sports Authority, Harris County, Texas, Senior Lien Revenue 11/11 at 100.00 AAA 2,773,845
Bonds, Series 2001G, 5.250%, 11/15/30 - MBIA Insured
2,500 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA 2,518,600
Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%,
11/15/30 - MBIA Insured
22,500 Houston, Texas, Water and Sewer System Junior Lien Revenue 12/10 at 100.00 AAA 23,052,150
Refunding Bonds, Series 2000B, 5.250%, 12/01/30 - FGIC Insured
Lubbock Health Facilities Development Corporation, Texas, Revenue
Bonds, St. Joseph Health System, Series 1998:
4,900 5.250%, 7/01/15 7/08 at 101.00 AA- 5,106,290
8,495 5.250%, 7/01/16 7/08 at 101.00 AA- 8,816,281
17,655 Matagorda County Navigation District 1, Texas, Revenue Refunding 11/08 at 102.00 AAA 17,892,989
Bonds, Houston Industries Incorporated Project, Series 1998B,
5.150%, 11/01/29 - MBIA Insured
7,650 Port of Corpus Christi Authority, Nueces County, Texas, Revenue 5/06 at 101.00 BBB 7,747,002
Refunding Bonds, Union Pacific Corporation Project, Series 1992,
5.350%, 11/01/10
2,095 Port of Houston Authority, Harris County, Texas, General Obligation 10/10 at 100.00 AA+ 2,331,526
Port Improvement Revenue Bonds, Series 2000A, 5.750%, 10/01/20
11,300 City of San Antonio, Texas, Electric and Gas System Revenue No Opt. Call AAA 12,304,457
Refunding Bonds, Series 1992, 5.000%, 2/01/17
14,680 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 17,120,256
General Obligation Bonds, Series 1999, 5.800%, 8/15/29
(Pre-refunded to 8/15/09)
39
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,750 Spring Branch Independent School District, Harris County, Texas, 2/11 at 100.00 AAA $ 3,825,675
Limited Tax Schoolhouse and Refunding Bonds, Series 2001,
5.125%, 2/01/23
5,000 City of Wichita Falls, Wichita County, Texas, Water and Sewer 8/11 at 100.00 AAA 5,097,750
System Priority Lien Revenue Bonds, Series 2001, 5.000%, 8/01/22
- AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.6%
5,800 Carbon County, Utah, Solid Waste Disposal Refunding Revenue 2/05 at 102.00 BB- 5,958,108
Bonds, Laidlaw/ECDC Project, Guaranteed by Allied Waste
Industries, Series 1995, 7.500%, 2/01/10 (Alternative Minimum Tax)
7,155 Utah Associated Municipal Power System, Revenue Bonds, Payson 4/13 at 100.00 AAA 7,205,443
Power Project, Series 2003A, 5.000%, 4/01/25 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.2%
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Refunding Bonds, 7/11 at 100.00 AAA 4,024,920
Series 2001B, 5.125%, 7/01/31 (Alternative Minimum Tax) - FGIC Insured
11,040 Suffolk Redevelopment and Housing Authority, Virginia, FNMA No Opt. Call Aaa 11,773,939
Multifamily Housing Revenue Refunding Bonds, Windsor at Potomac
Vista L.P. Project, Series 2001, 4.850%, 7/01/31 (Mandatory put 7/01/11)
665 Virginia Housing Development Authority, Rental Housing Bonds, 5/09 at 101.00 AA+ 690,529
1999 Series F, 5.000%, 5/01/15 (Alternative Minimum Tax)
Virginia Resources Authority, Water Revenue Refunding Bonds,
Series 2002:
500 5.000%, 4/01/18 4/12 at 102.00 AA 533,120
500 5.000%, 4/01/19 4/12 at 102.00 AA 529,100
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.1%
4,185 Douglas County Public Utility District 1, Washington, Wells 9/06 at 106.00 AA 5,171,070
Hydroelectric Revenue Bonds, Series 1986, 8.750%, 9/01/18
6,750 Energy Northwest, Washington, Columbia Generation Station Electric 7/12 at 100.00 AAA 7,253,280
Revenue Refunding Bonds, Series 2002B, 5.350%, 7/01/18 - FSA Insured
12,415 King County Federal Way School District 210, Washington, 12/03 at 100.00 A1*** 12,476,703
Unlimited Tax General Bonds, Series 1991, 6.950%, 12/01/11
(Pre-refunded to 12/01/03)
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 5.625%, 8/10 at 100.00 AAA 7,225,151
2/01/24 (Alternative Minimum Tax) - MBIA Insured
13,400 The City of Seattle, Washington, Municipal Light and Power Revenue 12/10 at 100.00 Aa3 13,813,256
Bonds, 2000, 5.400%, 12/01/25
1,675 Spokane Downtown Foundation, Washington, Parking Revenue Bonds, 8/08 at 102.00 D 730,719
River Park Square Project, Series 1998, 5.600%, 8/01/19#
9,440 City of Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 10,562,322
Bonds, Series 2001A, 5.750%, 1/01/18 - FSA Insured
18,145 State of Washington, Various Purpose General Obligation Bonds, 7/11 at 100.00 AAA 18,414,998
2001 Series 02-A, 5.000%, 7/01/23 - FSA Insured
State of Washington, Motor Vehicle Fuel Tax General Obligation
Bonds, Series 2002C:
7,000 5.000%, 1/01/21 - FSA Insured 1/12 at 100.00 AAA 7,185,983
7,750 5.000%, 1/01/22 - FSA Insured 1/12 at 100.00 AAA 7,913,603
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.1%
7,545 City of La Crosse, Wisconsin, Pollution Control Refunding Revenue 12/08 at 102.00 AAA 8,197,416
Bonds, Dairyland Power Cooperative Project, Series 1997A, 5.450%,
9/01/14 - AMBAC Insured
915 Wisconsin Housing and Economic Development Authority, Housing 1/04 at 100.00 AA 917,727
Revenue Bonds, Series 1992A, 6.850%, 11/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,236,905 Total Long-Term Investments (cost $1,168,901,135) - 151.8% 1,237,774,047
=============-----------------------------------------------------------------------------------------------------------------------
40
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1%
$ 2,200 Chester County Industrial Development Authority, Pennsylvania, VMIG-1 $ 2,200,000
Archdiocese of Philadelphia, Variable Rate Revenue Demand Bonds,
Series 2001, 1.150%, 7/01/31+
1,500 Fulton County Residential Care Facilities Authority, Georgia, Variable A-1+ 1,500,000
Rate Demand Revenue Refunding Bonds, Lenbrook Square
Foundation Inc., Series 1996, 1.200%, 1/01/18+
2,500 Massachusetts Health and Educational Facilities Authority, Capital A-1+ 2,500,000
Assets Program, Variable Rate Demand Bonds, Series 1985B,
1.130%, 7/01/10 - MBIA Insured+
2,445 Missouri Health and Educational Facilities Authority, Health Facilities A-1+ 2,445,000
Revenue Bonds, Variable Rate Demand Obligations, St. Francis
Medical Center, Series 1996A, 1.150%, 6/01/26+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 8,645 Total Short-Term Investments (cost $8,645,000) 8,645,000
================--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,177,546,135) - 152.9% 1,246,419,047
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 20,850,933
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.4)% (452,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $815,269,980
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# Non-income producing security, in the case of a bond,
generally denotes that issuer has defaulted on the
payment of principal or interest or has filed for
bankruptcy.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
41
Nuveen Premier Municipal Income Fund, Inc. (NPF)
Portfolio of
INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.4%
$ 1,075 Alabama Higher Education Loan Corporation, Student Loan Revenue No Opt. Call AAA $ 1,110,873
Refunding Bonds, Series 1994D, 5.850%, 9/01/04 (Alternative
Minimum Tax) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.7%
2,000 Alaska Housing Finance Corporation, General Mortgage Revenue 6/09 at 101.00 AAA 2,079,540
Bonds, Series 1999A, 6.000%, 6/01/49 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.9%
3,650 Gilbert Unified School District No. 41 of Maricopa County, Arizona, 7/04 at 100.00 AAA 3,773,699
School Improvement Bonds, Project of 1993, Series 1994C, 6.100%,
7/01/14 (Pre-refunded to 7/01/04) - FGIC Insured
6,000 Agricultural Improvement and Power District, Arizona, Electric System 1/12 at 101.00 AA 6,589,860
Revenue Refunding Bonds, Salt River Project, Series 2002A,
5.250%, 1/01/15
7,500 Agricultural Improvement and Power District, Arizona, Electric 1/13 at 100.00 AA 7,606,950
System Revenue Bonds, Salt River Project, Series 2002B, 5.000%,
1/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.5%
570 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102.00 AAA 596,682
Revenue Bonds, Mortgage-Backed Securities Program, Series 1994C,
6.600%, 7/01/17
815 Arkansas Development Finance Authority, Single Family Mortgage 7/05 at 102.00 AAA 830,004
Revenue Bonds, Mortgage-Backed Securities Program,
Series 1995B, 6.550%, 7/01/18 (Alternative Minimum Tax)
88 Drew County Public Facilities Board, Arkansas, FNMA-Backed Single 2/04 at 103.00 Aaa 91,108
Family Mortgage Revenue Refunding Bonds, Series 1993A-2,
7.900%, 8/01/11
85 Stuttgart Public Facilities Board, Arkansas, Single Family Mortgage 9/06 at 100.00 Aaa 87,983
Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.7%
5,690 Department of Veterans Affairs of the State of California, Home 6/12 at 101.00 AAA 5,920,900
Purchase Revenue Bonds, Series 2002A, 5.300%, 12/01/21 -
AMBAC Insured
Foothill-Eastern Transportation Corridor Agency, California, Toll Road
Revenue Bonds, Series 1995A:
28,000 0.000%, 1/01/17 No Opt. Call AAA 15,414,840
10,000 0.000%, 1/01/22 - FSA Insured No Opt. Call AAA 4,016,300
10,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/10 at 101.00 AAA 10,553,000
Merged Area Redevelopment Project, Series 2002, 5.000%,
8/01/17 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.4%
1,000 Colorado Health Facilities Authority, Hospital Revenue Bonds, 12/09 at 101.00 Aaa 1,084,790
Poudre Valley Health Care, Inc., Series 1999A, 5.750%, 12/01/23 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.1%
2,000 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 2,097,420
Refunding Bonds, Connecticut Light and Power Company,
Series 1993A, 5.850%, 9/01/28
1,300 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102.00 AAA 1,369,966
Program Bonds, Series 1996C-2, 6.250%, 11/15/18
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.2%
District of Columbia, University Revenue Bonds, Georgetown
University Issue, Series 2001A:
14,105 0.000%, 4/01/24 - MBIA Insured 4/11 at 47.66 AAA 4,362,818
7,625 0.000%, 4/01/25 - MBIA Insured 4/11 at 44.82 AAA 2,217,198
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.8%
$ 4,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA $ 4,345,680
5.750%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured
5,000 JEA, Florida, Water and Sewer System Revenue Bonds, 10/04 at 101.00 Aa3 5,181,200
Series 1999A, 5.400%, 10/01/39
4,790 Jacksonville, Florida, Sales Tax Revenue Bonds, Series 1996, 4/06 at 101.00 AAA 5,071,987
River City Renaissance Project, 5.125%, 10/01/18 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.2%
8,000 George L. Smith II World Congress Center Authority, Georgia, 7/10 at 101.00 AAA 8,404,800
Revenue Refunding Bonds, Domed Stadium Project, Series 2000,
5.500%, 7/01/20 (Alternative Minimum Tax) - MBIA Insured
4,105 Municipal Electric Authority of Georgia, Combustion Turbine Project 11/13 at 100.00 AAA 4,401,012
Revenue Bonds, Series 2003A, 5.125%, 11/01/17 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.8%
2,250 Hawaii Department of Budget and Finance, Special Purpose 1/09 at 101.00 AAA 2,523,308
Revenue Bonds, Hawaii Electric Company, Inc. and Subsidiaries
Project, Series 1999D, 6.150%, 1/01/20 (Alternative Minimum Tax)
- AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.2%
480 Idaho Housing and Finance Association, Single Family Mortgage 7/06 at 102.00 Aa1 483,250
Bonds, Series 1996E, 6.350%, 7/01/14 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 26.3%
City of Chicago, Illinois, General Obligation Bonds, City
Colleges of Chicago Capital Improvement Project, Series 1999:
8,670 0.000%, 1/01/24 - FGIC Insured No Opt. Call AAA 2,913,640
16,670 0.000%, 1/01/26 - FGIC Insured No Opt. Call AAA 4,966,493
3,740 Chicago School Reform Board of Trustees of the Board of Education No Opt. Call AAA 2,026,220
of the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenue, Series 1998-B1, 0.000%, 12/01/16 -
FGIC Insured
960 Chicago Public Building Commission, Illinois, General Obligation No Opt. Call AAA 1,150,886
Lease Certificates, Chicago Board of Education, Series 1990B,
7.000%, 1/01/15 - MBIA Insured
13,000 City of Chicago, Illinois, Wastewater Transmission Revenue Bonds, 1/06 at 102.00 AAA 13,132,080
Series 1995, 5.125%, 1/01/25 - FGIC Insured
12,130 City of Chicago, Illinois, Senior Lien Water Revenue Bonds, No Opt. Call AAA 13,833,537
Series 2001, 5.750%, 11/01/30 - AMBAC Insured
6,615 Cicero, Illinois, General Obligation Tax Increment Bonds, Series 12/04 at 102.00 N/R*** 7,034,589
1995A, 8.125%, 12/01/12 (Pre-refunded to 12/01/04)
4,295 Illinois Housing Development Authority, Section 8 Elderly 3/04 at 101.00 A 4,341,257
Housing Revenue Bonds, Garden House of Maywood Development,
Series 1992, 7.000%, 9/01/18
1,500 State of Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 1,642,890
Series 2002, 5.500%, 2/01/17 - FGIC Insured
9,300 Community Unit School District No. 220 of the Counties of Lake, No Opt. Call AAA 10,267,293
Cook, Kane, and McHenry, Illinois, General Obligation Bonds,
Series 2002, 5.250%, 12/01/18 - FSA Insured
2,270 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/12 at 101.00 AAA 2,282,803
Place Expansion Project Revenue Bonds, Series 2002A, 5.000%,
12/15/28 - MBIA Insured
Metropolitan Pier and Exposition Authority, Illinois, McCormick
Place Expansion Project Refunding Bonds, Series 1996A:
8,330 0.000%, 12/15/16 - MBIA Insured No Opt. Call AAA 4,527,855
10,575 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 3,637,906
10,775 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 3,446,492
2,000 Onterie Center Housing Finance Corporation (An Illinois Not For 1/04 at 101.50 AAA 2,016,540
Profit Corporation), FHA-Insured Mortgage Revenue Refunding
Bonds, Loan - Onterie Center Project, Series 1992A, 7.050%,
7/01/27 - MBIA Insured
3,488 Wood River Township, Madison County, Illinois, General Obligation 2/04 at 102.00 N/R 3,115,655
Bonds, Series 1993, 6.625%, 2/01/14
43
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.9%
Anderson School Building Corporation, Madison County, Indiana,
First Mortgage Bonds, Series 2003:
$ 1,000 5.500%, 7/15/19 (WI, settling 11/13/03) - FSA Insured 1/14 at 100.00 AAA $ 1,100,390
2,275 5.500%, 7/15/23 (WI, settling 11/13/03) - FGIC Insured 1/14 at 100.00 AAA 2,454,543
Crown Point Multi-School Building Corporation, Indiana, First
Mortgage Bonds, Crown Point Community School Corporation, Series
2000:
7,480 0.000%, 1/15/21 - MBIA Insured No Opt. Call AAA 3,097,692
7,980 0.000%, 1/15/22 - MBIA Insured No Opt. Call AAA 3,089,936
6,180 0.000%, 1/15/23 - MBIA Insured No Opt. Call AAA 2,237,716
2,350 Indiana Transportation Finance Authority, Highway Revenue Bonds, 6/13 at 100.00 AAA 2,528,529
Series 2003A, 5.250%, 6/01/18 - FSA Insured
29,255 The Indianapolis, Indiana, Local Public Improvement Bond Bank, No Opt. Call AAA 9,159,741
Series 1999E, 0.000%, 2/01/25 - AMBAC Insured
2,860 St. Joseph County PHM Elementary/Middle School Building No Opt. Call A 3,287,770
Corporation, Indiana, First Mortgage Bonds, Series 1994,
6.300%, 1/15/09
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.5%
1,310 Louisiana Housing Finance Agency, GNMA Collateralized Mortgage 9/05 at 103.00 AAA 1,385,705
Revenue Bonds, St. Dominic Assisted Care Facility, Series 1995, 6.850%, 9/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 2.8%
7,965 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A2 8,546,764
Student Loan Revenue Bonds, Series 1994-B2, 6.250%, 11/01/06
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.0%
6,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB 6,015,300
Bonds, Woodside Apartments Project, Series 1994, 7.450%,
12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03)
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.7%
Massachusetts Municipal Wholesale Electric Company, Power
Supply System Revenue Bonds, Series 1987A:
5 8.750%, 7/01/18 (Pre-refunded to 1/01/04) 1/04 at 100.00 Aaa 5,064
5 8.750%, 7/01/18 (Pre-refunded to 7/01/04) 7/04 at 100.00 Aaa 5,255
5 8.750%, 7/01/18 (Pre-refunded to 1/01/05) 1/05 at 100.00 Aaa 5,436
1,900 Commonwealth of Massachusetts, General Obligation Bonds, 10/13 at 100.00 Aa2 2,012,138
Series 2003D, 5.250%, 10/01/20
3,875 Massachusetts Health and Educational Facilities Authority, 2/04 at 102.00 Aa2*** 4,008,339
Revenue Refunding Bonds, Youville Hospital Issue, FHA-Insured
Project, Series B, 6.000%, 2/15/25 (Pre-refunded to 2/15/04)
2,000 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/07 at 101.00 AAA 2,027,880
Revenue Bonds, Series 1997C, 5.625%, 7/01/40 (Alternative
Minimum Tax) - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.7%
1,975 Clinton Charter Township, Macomb County, Michigan, Unlimited 4/09 at 101.00 AAA 1,894,321
Tax General Obligation Police Building Bonds, Series 1998,
4.000%, 4/01/18 - FGIC Insured
2,925 City of Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 AAA 3,148,763
5.250%, 4/01/17 - XLCA Insured
3,025 Wayne County, Michigan, Airport Revenue Refunding Bonds, 12/12 at 100.00 AAA 3,251,966
Detroit Metropolitan Airport, Refunding Series 2002C, 5.375%,
12/01/19 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 6.6%
6,900 Champlin, Minnesota, GNMA Guaranteed Senior Housing 6/12 at 105.00 Aaa 6,932,637
Revenue Bonds, Champlin Shores Senior Living Center, Series
2002A, 3.000%, 12/20/43
2,290 Minneapolis/St. Paul Housing and Redevelopment Authority, 12/13 at 100.00 BBB+ 2,360,601
Minnesota, Revenue Bonds, HealthPartners Inc. Project, Series
2003, 6.000%, 12/01/20
10,780 Northwest Minnesota Multi-County Housing and Redevelopment 10/04 at 102.00 N/R 7,546,000
Authority, Governmental Housing Revenue Bonds, Pooled
Housing Program, Series 1994B, 8.125%, 10/01/26
3,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 12/13 at 100.00 AA+ 3,191,910
Office Building at Cedar Street, Series 2003, 5.250%, 12/01/20
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.2%
$ 8,610 Mississippi Home Corporation, Residual Revenue Capital 3/04 at 41.66 Aaa $ 3,559,374
Appreciation Bonds, Series 1992I, 0.000%, 9/15/16
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.3%
5,000 State of Missouri, General Obligation Bonds, Series 2002A, Fourth 10/12 at 100.00 AAA 5,315,800
State Building Refunding, 5.000%, 10/01/18
1,590 Health and Educational Facilities Authority of the State of 6/11 at 101.00 AAA 1,630,895
Missouri, Revenue Bonds, SSM Health Care Series 2001A,
5.250%, 6/01/28 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9%
2,830 Grand Island, Nebraska, Electric System Revenue Bonds, Series 1977, 3/04 at 100.00 A+*** 3,193,598
6.100%, 9/01/12
2,350 Nebraska Higher Education Loan Program Incorporated, Senior No Opt. Call AAA 2,585,235
Subordinate Bonds, Series 1993A-5B, 6.250%, 6/01/18
(Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.9%
10,900 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,829,334
Series 2002C, 5.500%, 6/15/19 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.9%
590 New Hampshire Municipal Bond Bank, Revenue Bonds, Coe-Brown No Opt. Call N/R 594,449
Northwood Academy Project, Series 1994, 7.250%, 5/01/09
5,000 New Hampshire Housing Finance Authority, FHLMC Multifamily 7/10 at 101.00 Aaa 5,220,950
Housing Revenue Remarketing Bonds, Countryside LP Project,
Series 1994, 6.100%, 7/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.1%
3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AA- 3,204,240
System Bonds, Series 2003C, 5.500%, 6/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.8%
1,000 City of New York, New York, General Obligation Bonds, Fiscal No Opt. Call A 1,042,270
Series 1995A, 7.000%, 8/01/04
City of New York, New York, General Obligation Bonds, Fiscal
Series 1996J-1:
630 5.875%, 2/15/19 (Pre-refunded to 2/15/06) 2/06 at 101.50 A*** 701,209
3,370 5.875%, 5/15/19 2/06 at 101.50 A 3,648,227
4,265 City of New York, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 A 4,369,578
Series 2003D, 5.250%, 10/15/22
New York Transitional Finance Authority, New York, Future Tax
Secured Bonds, Fiscal Series 1998A:
1,750 5.125%, 8/15/21 (Pre-refunded to 8/15/07) 8/07 at 101.00 AA+*** 1,971,690
2,730 5.125%, 8/15/21 8/07 at 101.00 AA+ 2,804,502
10,000 Dormitory Authority of the State of New York, State University 5/10 at 101.00 AAA 11,603,700
Educational Facilities Revenue Bonds, Series 2000B, 1999
Resolution, 5.500%, 5/15/30 (Pre-refunded to 5/15/10) - FSA Insured
1,320 New York State Medical Care Facilities Finance Agency, Hospital 2/04 at 101.00 AAA 1,376,760
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
Series 1992B, 6.200%, 8/15/22
4,120 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 4,264,612
FHA-Insured Mortgage Revenue Bonds, St. Luke's-Roosevelt
Hospital Center, Series 1993A, 5.600%, 8/15/13
4,000 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 4,121,360
Hospital Insured Mortgage Revenue Bonds, 1994 Series A
Refunding, 5.500%, 8/15/24 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.9%
10,300 North Carolina Eastern Municipal Power Agency, Power No Opt. Call AAA 11,985,286
System Revenue Bonds, Refunding Series 1993B, 6.000%,
1/01/22 - CAPMAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.7%
2,110 Cleveland-Rock Glen Housing Assistance Corporation, Ohio, 7/04 at 103.00 AAA 2,170,093
Mortgage Revenue Refunding Bonds, Series 1994A (FHA-Insured
Mortgage Loans - Section 8 Assisted Projects), 6.750%, 1/15/25
45
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.6%
$ 1,885 Falls Township Hospital Authority, Pennsylvania, Refunding 2/04 at 101.00 AAA $ 2,004,226
Revenue Bonds, FHA-Insured Mortgage, The Delaware Valley
Medical Center Project, Series 1992, 7.000%, 8/01/22
2,825 Philadelphia Water and Sewer System, Pennsylvania, Water and No Opt. Call AAA 2,973,313
Wastewater Revenue Bonds, Series 10, 7.350%, 9/01/04
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 8.7%
3,340 Greenville County School District, South Carolina, Installment 12/13 at 100.00 AA- 3,479,245
Purchase Revenue Bonds, Series 2003, 5.250%, 12/01/19
3,620 Greenville Hospital System Board of Trustees, South Carolina, 5/13 at 100.00 AAA 3,781,018
Hospital Facilities Revenue Refunding Bonds, Series 2003A,
5.250%, 5/01/21 - AMBAC Insured
5,500 South Carolina Jobs-Economic Development Authority, Hospital 8/13 at 100.00 BBB 5,650,755
Revenue Bonds, Palmetto Health Alliance, 2003C, 6.375%, 8/01/34
14,800 Tobacco Settlement Revenue Management Authority, South 5/11 at 101.00 BBB 13,410,724
Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B,
6.000%, 5/15/22
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7%
2,060 The Health and Educational Facilities Board of the City of Johnson 7/23 at 100.00 AAA 2,150,722
City, Tennessee, Hospital Revenue Refunding and Improvement
Bonds, Johnson City Medical Center Hospital, Series 1998C,
5.125%, 7/01/25 (Pre-refunded to 7/01/23) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.4%
1,500 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 10/13 at 101.00 BBB 1,567,050
TXU Energy Company LLC, Series 2003C, 6.750%, 10/01/38
(Alternative Minimum Tax)
6,415 Edgewood Independent School District, Bexar County, Texas, 8/11 at 100.00 Aaa 6,486,335
General Obligation Refunding Bonds, Series 2001, 5.125%, 8/15/31
7,500 Houston, Texas, Water and Sewer System Junior Lien Revenue No Opt. Call AAA 8,578,125
Refunding Bonds, Series 2002A, 5.750%, 12/01/32 - FSA Insured
2,265 Lower Colorado River Authority, Texas, Contract Revenue Refunding 5/13 at 100.00 AAA 2,348,375
Bonds, Transmission Services Corporation Project, Series 2003C,
5.250%, 5/15/25 - AMBAC Insured
2,000 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 2,072,980
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
3,833 Texas General Services Commission, Participation Interests, 9/05 at 100.00 A 3,896,497
Series 1992, 7.500%, 9/01/22
Texas Tech University, Financing System Revenue Bonds, 9th
Series 2003:
3,525 5.250%, 2/15/18 - AMBAC Insured 8/13 at 100.00 AAA 3,797,342
2,250 5.250%, 2/15/19 - AMBAC Insured 8/13 at 100.00 AAA 2,407,095
325 Victoria Housing Finance Corporation, Texas, FNMA Single No Opt. Call Aaa 328,270
Family Mortgage Revenue Refunding Bonds, Series 1995,
8.125%, 1/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6%
715 Utah Housing Corporation, Single Family Mortgage Bonds, 7/11 at 100.00 Aa2 728,363
Series 2001D, 5.500%, 1/01/21 (Alternative Minimum Tax)
205 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/07 at 102.00 AA 206,476
Series 1996C, 6.450%, 7/01/14 (Alternative Minimum Tax)
895 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AA 936,958
Series 1997F, 5.750%, 7/01/15 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.1%
3,200 Suffolk Redevelopment and Housing Authority, Virginia, Multifamily 1/04 at 101.00 Baa2 3,232,960
Housing Revenue Refunding Bonds, Chase Heritage Project,
Series 1994, 7.000%, 7/01/24 (Mandatory put 7/01/04)
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.8%
$ 3,000 Energy Northwest, Washington, Nuclear Project No. 1 Electric 7/13 at 100.00 Aa1 $ 3,310,830
Revenue Refunding Bonds, Series 2003A, 5.500%, 7/01/16
6,160 Public Hospital District No. 2, King County, Washington, Limited 6/11 at 101.00 AAA 6,359,461
Tax General Obligation Bonds, Evergreen Healthcare,
Series 2001A, 5.250%, 12/01/24 - AMBAC Insured
5,000 City of Seattle, Washington, Municipal Light and Power 3/11 at 100.00 AAA 5,569,750
Improvements and Refunding Revenue Bonds, Series 2001,
5.500%, 3/01/12 - FSA Insured
9,750 State of Washington, General Obligation Refunding Bonds, No Opt. Call AA+ 11,484,623
Series 1992A and AT-6, 6.250%, 2/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.8%
3,150 West Virginia Water Development Authority, Loan Program II 11/13 at 101.00 AAA 3,318,241
Revenue Bonds, Series 2003B, 5.250%, 11/01/23 - AMBAC Insured
2,000 West Virginia Water Development Authority, Infrastructure 10/13 at 101.00 AAA 2,170,040
Revenue Bonds, Series 2003A, 5.500%, 10/01/23 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.8%
775 Wisconsin Housing and Economic Development Authority, Housing 1/04 at 100.00 AA 777,310
Revenue Bonds, Series 1992A, 6.850%, 11/01/12
5,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101.00 AA 5,632,850
Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/18 -
RAAI Insured
5,670 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 5,796,895
Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%, 7/01/30
2,350 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 A+ 2,326,776
Revenue Bonds, Froedert and Community Health Obligated Group,
Series 2001, 5.375%, 10/01/30
- ------------------------------------------------------------------------------------------------------------------------------------
$ 554,764 Total Long-Term Investments (cost $441,570,132) - 152.6% 463,822,467
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.9%
3,800 Clark County School District, Nevada, General Obligation A-1+ 3,800,000
Variable Rate Demand Bonds, 1.040%, 6/15/21 - FSA Insured+
1,000 Fulton County Residential Care Facilities Authority, Georgia, A-1+ 1,000,000
Variable Rate Demand Revenue Refunding Bonds, Lenbrook
Square Foundation Inc., Series 1996, 1.200%, 1/01/18+
1,000 Nebraska Educational Finance Authority, Variable Rate Demand VMIG-1 1,000,000
Revenue Refunding Bonds, Creighton University Project,
Refunding, Series 2001, 1.150%, 8/01/31+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,800 Total Short-Term Investments (cost $5,800,000) 5,800,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $447,370,132) - 154.5% 469,622,467
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.2)% (574,511)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.3)% (165,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $304,047,956
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
47
Statement of
ASSETS AND LIABILITIES October 31, 2003
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $782,688,891,
$736,588,439, $1,177,546,135 and $447,370,132) $837,919,225 $774,854,376 $1,246,419,047 $469,622,467
Cash 7,040,019 2,694,589 -- 1,599,700
Receivables:
Interest 14,874,867 13,407,855 21,424,727 6,200,475
Investments sold 1,434,515 7,973,243 1,937,707 2,138,290
Other assets 40,225 50,981 55,495 30,003
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 861,308,851 798,981,044 1,269,836,976 479,590,935
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 1,627,492 --
Payable for investments purchased -- -- -- 10,182,085
Accrued expenses:
Management fees 455,412 422,654 662,725 252,090
Other 188,592 179,034 250,668 101,622
Preferred share dividends payable 20,551 18,727 26,111 7,182
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 664,555 620,415 2,566,996 10,542,979
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 301,000,000 279,000,000 452,000,000 165,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $559,644,296 $519,360,629 $ 815,269,980 $304,047,956
====================================================================================================================================
Common shares outstanding 35,748,959 33,887,474 54,204,488 20,091,018
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common
shares, divided by Common
shares outstanding) $ 15.65 $ 15.33 $ 15.04 $ 15.13
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 357,490 $ 338,875 $ 542,045 $ 200,910
Paid-in surplus 498,208,643 471,843,702 755,082,160 279,090,125
Undistributed net investment income 6,957,588 6,325,123 8,714,448 2,927,464
Accumulated net realized gain (loss) from investments (1,109,759) 2,586,992 (17,941,585) (422,878)
Net unrealized appreciation of investments 55,230,334 38,265,937 68,872,912 22,252,335
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $559,644,296 $519,360,629 $ 815,269,980 $304,047,956
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000 1,000,000
====================================================================================================================================
See accompanying notes to financial statements.
48
Statement of
OPERATIONS Year Ended October 31, 2003
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $46,533,728 $43,005,784 $ 67,493,861 $25,105,633
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 5,399,313 4,984,875 7,802,249 3,003,707
Preferred shares - auction fees 760,356 702,255 1,139,398 416,046
Preferred shares - dividend disbursing agent fees 50,000 50,000 60,000 30,000
Shareholders' servicing agent fees and expenses 101,402 91,082 145,781 54,606
Custodian's fees and expenses 197,489 194,843 271,628 105,168
Directors' fees and expenses 11,747 15,081 21,700 7,180
Professional fees 74,507 204,660 41,822 64,124
Shareholders' reports - printing and mailing expenses 96,509 105,193 128,700 42,633
Stock exchange listing fees 15,742 15,742 21,774 15,742
Investor relations expense 110,874 102,918 135,139 50,679
Other expenses 53,564 50,933 62,786 34,258
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 6,871,503 6,517,582 9,830,977 3,824,143
Custodian fee credit (25,075) (32,186) (31,898) (21,255)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 6,846,428 6,485,396 9,799,079 3,802,888
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 39,687,300 36,520,388 57,694,782 21,302,745
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments (1,111,259) 2,974,735 (17,548,461) (462,037)
Change in net unrealized appreciation (depreciation)
of investments 2,071,439 7,303,621 36,283,394 359,740
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 960,180 10,278,356 18,734,933 (102,297)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,742,396) (2,528,064) (4,025,308) (1,449,983)
From accumulated net realized gains from investments (81,498) -- (138,847) (162,994)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (2,823,894) (2,528,064) (4,164,155) (1,612,977)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations $37,823,586 $44,270,680 $ 72,265,560 $19,587,471
====================================================================================================================================
See accompanying notes to financial statements.
49
Statement of
CHANGES IN NET ASSETS
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
--------------------------------- --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/03 10/31/02 10/31/03 10/31/02
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 39,687,300 $ 41,282,342 $ 36,520,388 $ 37,911,318
Net realized gain (loss) from investments (1,111,259) 895,339 2,974,735 (429,582)
Change in net unrealized appreciation (depreciation)
of investments 2,071,439 (6,641,410) 7,303,621 (12,369,670)
Distributions to Preferred Shareholders:
From net investment income (2,742,396) (4,042,793) (2,528,064) (3,065,241)
From accumulated net realized gains from investments (81,498) (228,928) -- (1,332,496)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations 37,823,586 31,264,550 44,270,680 20,714,329
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (35,966,517) (33,499,195) (33,209,730) (31,783,529)
From accumulated net realized gains from investments (816,999) (738,605) -- (5,228,137)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (36,783,516) (34,237,800) (33,209,730) (37,011,666)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares 1,040,070 (2,973,250) 11,060,950 (16,297,337)
Net assets applicable to Common shares at the
beginning of year 558,604,226 561,577,476 508,299,679 524,597,016
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of year $559,644,296 $558,604,226 $519,360,629 $508,299,679
====================================================================================================================================
Undistributed net investment income at the end of year $ 6,957,588 $ 5,981,643 $ 6,325,123 $ 5,625,560
====================================================================================================================================
See accompanying notes to financial statements.
50
QUALITY INCOME (NQU) PREMIER INCOME (NPF)
--------------------------------- --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/03 10/31/02 10/31/03 10/31/02
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 57,694,782 $ 60,850,583 $ 21,302,745 $ 23,130,784
Net realized gain (loss) from investments (17,548,461) 1,692,020 (462,037) 1,888,384
Change in net unrealized appreciation (depreciation)
of investments 36,283,394 (34,664,726) 359,740 (4,481,311)
Distributions to Preferred Shareholders:
From net investment income (4,025,308) (5,357,084) (1,449,983) (2,203,634)
From accumulated net realized gains from investments (138,847) (1,401,793) (162,994) (136,932)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations 72,265,560 21,119,000 19,587,471 18,197,291
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (52,036,285) (50,249,044) (19,773,812) (19,246,966)
From accumulated net realized gains from investments (1,550,167) (4,915,477) (1,723,562) (488,220)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (53,586,452) (55,164,521) (21,497,374) (19,735,186)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares 18,679,108 (34,045,521) (1,909,903) (1,537,895)
Net assets applicable to Common shares at the
beginning of year 796,590,872 830,636,393 305,957,859 307,495,754
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of year $815,269,980 $796,590,872 $304,047,956 $305,957,859
====================================================================================================================================
Undistributed net investment income at the end of year $ 8,714,448 $ 7,102,394 $ 2,927,464 $ 2,887,729
====================================================================================================================================
See accompanying notes to financial statements.
51
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
Common share New York Stock Exchange symbols are Nuveen Investment Quality
Municipal Fund, Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc. (NQS),
Nuveen Quality Income Municipal Fund, Inc. (NQU) and Nuveen Premier Municipal
Income Fund, Inc. (NPF). The Funds are registered under the Investment Company
Act of 1940, as amended, as closed-end, diversified management investment
companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities.
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. 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, evaluations
of anticipated cash flows or collateral and general market conditions. If it is
determined that market prices for a security are unavailable or inappropriate,
the Board of Directors of the Funds, or its designee, may establish a fair value
for the security. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At October 31, 2003,
Premier Income (NPF) had outstanding when-issued and delayed delivery purchase
commitments of $3,458,064. There were no such outstanding purchase commitments
in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of the Fund's shareholders.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal income
tax, to retain such tax-exempt status when distributed to shareholders of the
Funds. All monthly tax-exempt income dividends paid during the fiscal year ended
October 31, 2003, have been designated Exempt Interest Dividends.
52
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
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 pursuant to a dutch
auction process by the auction agent, and is payable at or near the end of each
rate period. The number of Preferred shares outstanding, by Series and in total,
for each Fund is as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
- --------------------------------------------------------------------------------
Number of shares:
Series M 2,500 2,000 3,000 1,000
Series T 2,500 2,000 3,000 2,800
Series W 2,500 2,800 3,000 --
Series W2 -- -- 2,080 --
Series TH 2,040 1,560 4,000 2,800
Series F 2,500 2,800 3,000 --
- --------------------------------------------------------------------------------
Total 12,040 11,160 18,080 6,600
================================================================================
53
Notes to
FINANCIAL STATEMENTS (continued)
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the fiscal year ended October 31, 2003.
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 applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
None of the Funds engaged in transactions in their own shares during the fiscal
years ended October 31, 2003 and October 31, 2002.
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended October 31, 2003, were as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
- --------------------------------------------------------------------------------
Purchases $38,241,527 $65,983,747 $109,545,816 $88,923,874
Sales and maturities 50,339,000 81,006,440 109,851,535 89,892,684
================================================================================
54
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At October 31, 2003, the cost of investments were as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
- --------------------------------------------------------------------------------
Cost of investments $782,316,480 $736,278,011 $1,177,631,850 $447,272,471
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2003, were as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
- --------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 71,385,520 $ 51,726,751 $78,207,146 $27,208,971
Depreciation (15,782,775) (13,150,386) (9,419,949) (4,858,975)
- --------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $ 55,602,745 $ 38,576,365 $68,787,197 $22,349,996
============================================================================================
The tax components of undistributed net investment income and net realized gains
at October 31, 2003, were as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
- ---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $9,471,609 $8,784,109 $12,774,454 $4,492,818
Undistributed net ordinary income * 137,030 61,975 980 1,676
Undistributed net long-term capital gains -- 2,586,992 -- --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
55
Notes to
FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the fiscal years ended October
31, 2003 and October 31, 2002, was designated for purposes of the dividends paid
deduction as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
2003 (NQM) (NQS) (NQU) (NPF)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $38,441,758 $35,672,184 $56,010,189 $21,206,118
Distributions from net ordinary income * 200,905 -- -- 4,704
Distributions from net long-term capital gains 897,555 -- 1,689,014 1,886,500
=========================================================================================================
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
2002 (NQM) (NQS) (NQU) (NPF)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $37,269,102 $34,419,253 $55,481,812 $21,382,991
Distributions from net ordinary income * 1,870 364,764 -- --
Distributions from net long-term capital gains 967,533 6,367,510 6,317,270 625,152
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31 2003, 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:
INVESTMENT QUALITY PREMIER
QUALITY INCOME INCOME
(NQM) (NQU) (NPF)
- --------------------------------------------------------------------------------
Expiration year:
2011 $1,109,759 $17,527,285 $422,878
- --------------------------------------------------------------------------------
Total $1,109,759 $17,527,285 $422,878
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc.
(formerly, 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 (including net assets attributable to Preferred shares) of each
Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates.
56
6. INVESTMENT COMPOSITION
At October 31, 2003, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
- --------------------------------------------------------------------------------------------------------
Consumer Staples 4% 5% 4% 3%
Education and Civic Organizations 3 1 2 6
Healthcare 11 16 9 9
Housing/Multifamily 7 4 3 9
Housing/Single Family 4 8 3 3
Tax Obligation/General 17 9 23 17
Tax Obligation/Limited 10 9 6 19
Transportation 9 12 13 1
U.S. Guaranteed 22 16 18 13
Utilities 6 14 11 10
Water and Sewer 6 4 6 10
Other 1 2 2 --
- --------------------------------------------------------------------------------------------------------
100% 100% 100% 100%
========================================================================================================
Certain investments owned by the Funds are either covered by insurance issued by
several private insurers or are backed by an escrow or trust containing U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest in the event of default (65% for Investment
Quality (NQM), 60% for Select Quality (NQS), 64% for Quality Income (NQU) and
62% for Premier Income (NPF)). Such insurance or escrow, however, does not
guarantee the market value of the municipal securities or the value of the
Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2003, to shareholders of record
on November 15, 2003, as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
- --------------------------------------------------------------------------------
Dividend per share $.0840 $.0830 $.0805 $.0825
================================================================================
57
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each year:
Investment Operations
---------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Net Investment Capital
Common Realized/ Income to Gains to
Share Net Unrealized Preferred Preferred
Net Asset Investment Investment Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
====================================================================================================
INVESTMENT QUALITY (NQM)
- ----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 $15.63 $1.11 $ .02 $(.08) $-- $1.05
2002 15.71 1.15 (.15) (.11) (.01) .88
2001 14.67 1.16 1.00 (.27) -- 1.89
2000 14.03 1.21 .66 (.34) -- 1.53
1999 16.00 1.21 (1.96) (.24) -- (.99)
SELECT QUALITY (NQS)
- ----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 15.00 1.08 .30 (.07) -- 1.31
2002 15.48 1.12 (.38) (.09) (.04) .61
2001 14.48 1.19 .95 (.26) (.01) 1.87
2000 14.05 1.22 .47 (.34) -- 1.35
1999 15.68 1.22 (1.64) (.24) -- (.66)
QUALITY INCOME (NQU)
- ----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 14.70 1.06 .34 (.07) -- 1.33
2002 15.32 1.12 (.59) (.10) (.03) .40
2001 14.53 1.21 .76 (.26) -- 1.71
2000 14.33 1.28 .21 (.34) -- 1.15
1999 15.83 1.27 (1.48) (.25) -- (.46)
PREMIER INCOME (NPF)
- ----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 15.23 1.06 (.01) (.07) (.01) .97
2002 15.31 1.15 (.13) (.11) (.01) .90
2001 14.42 1.23 .84 (.26) -- 1.81
2000 14.24 1.26 .21 (.34) -- 1.13
1999 15.76 1.22 (1.51) (.24) -- (.53)
====================================================================================================
Less Distributions
--------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
===========================================================================================
INVESTMENT QUALITY (NQM)
- -------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 $(1.01) $(.02) $(1.03) $ -- $15.65 $15.1000
2002 (.94) (.02) (.96) -- 15.63 14.9900
2001 (.85) -- (.85) -- 15.71 14.8400
2000 (.89) -- (.89) -- 14.67 12.8750
1999 (.96) -- (.96) (.02) 14.03 13.3125
SELECT QUALITY (NQS)
- -------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 (.98) -- (.98) -- 15.33 14.8100
2002 (.94) (.15) (1.09) -- 15.00 14.4000
2001 (.87) -- (.87) -- 15.48 14.7500
2000 (.92) -- (.92) -- 14.48 13.0625
1999 (.96) -- (.96) (.01) 14.05 13.1250
QUALITY INCOME (NQU)
- -------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 (.96) (.03) (.99) -- 15.04 14.3300
2002 (.93) (.09) (1.02) -- 14.70 14.0400
2001 (.91) (.01) (.92) -- 15.32 14.6200
2000 (.95) -- (.95) -- 14.53 13.1250
1999 (1.03) -- (1.03) (.01) 14.33 14.0000
PREMIER INCOME (NPF)
- -------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 (.98) (.09) (1.07) -- 15.13 14.7400
2002 (.96) (.02) (.98) -- 15.23 14.5200
2001 (.92) -- (.92) -- 15.31 14.8400
2000 (.95) -- (.95) -- 14.42 13.6250
1999 (.97) -- (.97) (.02) 14.24 13.3125
===========================================================================================
Ratios/Supplemental Data
-----------------------------------------------
Total Returns Before Credit
--------------------- --------------------------
Ratio of Net
Ratio of Investment
Based Ending Expenses Income to
on Net to Average Average
Based Common Assets Net Assets Net Assets
on Share Net Applicable Applicable Applicable
Market Asset to Common to Common to Common
Value* Value* Shares (000) Shares++ Shares++
==================================================================================================
INVESTMENT QUALITY (NQM)
- --------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 7.78% 6.88% $559,644 1.22% 7.05%
2002 7.71 5.85 558,604 1.21 7.48
2001 22.33 13.16 561,577 1.24 7.56
2000 3.70 11.38 524,320 1.24 8.57
1999 (8.51) (6.64) 501,508 1.17 7.85
SELECT QUALITY (NQS)
- --------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 9.91 8.96 519,361 1.26 7.06
2002 5.24 4.22 508,300 1.24 7.46
2001 20.09 13.23 524,597 1.24 7.89
2000 6.85 10.02 490,683 1.22 8.67
1999 (13.63) (4.55) 476,102 1.17 8.07
QUALITY INCOME (NQU)
- --------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 9.31 9.37 815,270 1.21 7.12
2002 3.05 2.71 796,591 1.23 7.50
2001 18.72 12.09 830,636 1.21 8.05
2000 .73 8.37 787,829 1.21 8.95
1999 (11.17) (3.20) 776,845 1.17 8.27
PREMIER INCOME (NPF)
- --------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 9.13 6.57 304,048 1.24 6.91
2002 4.57 6.19 305,958 1.29 7.66
2001 15.93 12.89 307,496 1.28 8.25
2000 9.71 8.22 289,103 1.27 8.84
1999 (17.25) (3.71) 285,509 1.19 7.98
==================================================================================================
Ratios/Supplemental Data
-----------------------------------------
After Credit** Preferred Shares at End of Period
---------------------------- ----------------------------------------
Ratio of Net
Ratio of Investment
Expenses Income to
to Average Average
Net Assets Net Assets Aggregate Liquidation
Applicable Applicable Portfolio Amount and Market Asset
to Common to Common Turnover Outstanding Value Coverage
Shares++ Shares++ Rate (000) Per Share Per Share
============================================================================================================
INVESTMENT QUALITY (NQM)
- ------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 1.22% 7.05% 5% $301,000 $25,000 $71,482
2002 1.21 7.49 5 301,000 25,000 71,396
2001 1.23 7.56 17 301,000 25,000 71,643
2000 1.22 8.59 35 301,000 25,000 68,548
1999 1.16 7.86 16 301,000 25,000 66,654
SELECT QUALITY (NQS)
- ------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 1.25 7.06 9 279,000 25,000 71,538
2002 1.23 7.47 19 279,000 25,000 70,547
2001 1.23 7.89 28 279,000 25,000 72,007
2000 1.21 8.68 30 279,000 25,000 68,968
1999 1.16 8.08 27 279,000 25,000 67,661
QUALITY INCOME (NQU)
- ------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 1.21 7.13 9 452,000 25,000 70,092
2002 1.22 7.51 32 452,000 25,000 69,059
2001 1.21 8.06 30 452,000 25,000 70,942
2000 1.20 8.95 23 452,000 25,000 68,575
1999 1.16 8.27 13 452,000 25,000 67,967
PREMIER INCOME (NPF)
- ------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 1.23 6.91 19 165,000 25,000 71,068
2002 1.28 7.67 25 165,000 25,000 71,357
2001 1.26 8.26 14 165,000 25,000 71,590
2000 1.26 8.85 9 165,000 25,000 68,804
1999 1.18 7.99 11 165,000 25,000 68,259
============================================================================================================
* Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share 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.
See accompanying notes to financial statements.
58-59 spread
Directors
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board of
Directors of the Funds. The number of directors of the Funds is currently set at
twelve. None of the directors who are not "interested" persons of the Funds has
ever been a director or employee of, or consultant to, Nuveen or its affiliates.
The names and business addresses of the directors and officers of the Funds,
their principal occupations and other affiliations during the past five years,
the number of portfolios each oversees and other directorships they hold are set
forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS DIRECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
DIRECTOR WHO IS AN INTERESTED PERSON OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 142
3/28/49 Board and Investments, Inc. and Nuveen Investments, LLC;
333 W. Wacker Drive Director Director (since 1992) and Chairman (since 1996) of
Chicago, IL 60606 Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.; Chairman and Director (since 1997)
of Nuveen Asset Management, Inc.; Director (since 1996)
of Institutional Capital Corporation; Chairman and Director
(since 1999) of Rittenhouse Asset Management, Inc.;
Chairman of Nuveen Investments Advisers Inc. (since 2002).
DIRECTORS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
William E. Bennett Director 2001 Private Investor; previously, President and Chief Executive 142
10/16/46 Officer, Draper & Kramer, Inc., a private company that
333 W. Wacker Drive handles mortgage banking, real estate development, pension
Chicago, IL 60606 advisory and real estate management (1995-1998). Prior
thereto, Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidiary, The
First National Bank of Chicago.
- ------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Director 1997 Private Investor and Management Consultant. 141
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Director 1993 Retired (since 1989) as Senior Vice President of The 141
7/29/34 Northern Trust Company; Director of the United Way of
333 W. Wacker Drive Highland Park-Highwood (since 2002).
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Director 1999 President, The Hall-Perrine Foundation, a private philanthropic 131
10/22/48 corporation (since 1996); Director, Alliant Energy; Director and
333 W. Wacker Drive Vice Chairman, United Fire & Casualty Company; Director,
Chicago, IL 60606 Federal Reserve Bank of Chicago; formerly, President and Chief
Operating Officer, SCI Financial Group, Inc., a regional financial
services firm.
- ------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri Director 1994 Retired, formerly, Executive Director (since 1998) of Manitoga/ 141
1/26/33 The Russel Wright Design Center; prior thereto, President and
333 W. Wacker Drive Chief Executive Officer of Blanton-Peale Institute (since 1990);
Chicago, IL 60606 prior thereto, Vice President, Metropolitan Life Insurance Co.
- ------------------------------------------------------------------------------------------------------------------------------------
William L. Kissick Director 1992 Professor Emeritus, School of Medicine and the Wharton 131
7/29/32 School of Management and former Chairman, Leonard Davis
333 W. Wacker Drive Institute of Health Economics, University of Pennsylvania;
Chicago, IL 60606 Adjunct Professor, Health Policy and Management, Yale
University.
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas E. Leafstrand Director 1992 Retired; previously, Vice President in charge of Municipal 131
11/11/31 Underwriting and Dealer Sales at The Northern Trust
333 W. Wacker Drive Company.
Chicago, IL 60606
60
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS DIRECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
DIRECTORS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers Director 1991 Adjunct Professor of Business and Economics, University of 141
4/3/33 Dubuque, Iowa; formerly (1991-2000) Adjunct Professor, Lake
333 W. Wacker Drive Forest Graduate School of Management, Lake Forest, Illinois;
Chicago, IL 60606 prior thereto, Executive Director, Towers Perrin Australia, a
management consulting firm; Chartered Financial Analyst;
Certified Management Consultant; Director, Executive
Service Corps of Chicago, a not-for-profit organization.
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Director 1997 Senior Partner and Chief Operating Officer, Miller-Valentine 141
9/24/44 Group, Vice President, Miller-Valentine Realty, a construction
333 W. Wacker Drive company; Chair, MiamiValley Hospital; Chair, Dayton
Chicago, IL 60606 Development Coalition; formerly, Member, Community
Advisory Board, National City Bank, Dayton, Ohio and
Business Advisory Council, Cleveland Federal Reserve Bank.
- ------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Director 1997 Executive Director, Gaylord and Dorothy Donnelley Foundation 141
12/29/47 (since 1994); prior thereto, Executive Director, Great Lakes
333 W. Wacker Drive Protection Fund (from 1990 to 1994).
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Sheila W. Wellington Director 1994 President (since 1993) of Catalyst (a not-for-profit organization 131
2/24/32 focusing on women's leadership development in business
333 W. Wacker Drive and the professions).
Chicago, IL 60606
POSITION(S) YEAR FIRST NUMBER OF PORTFOLIOS
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary 142
9/9/56 Administrative and Associate General Counsel, formerly, Vice President
333 W. Wacker Drive Officer and Assistant General Counsel of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.;
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
2000), of Nuveen Asset Management, Inc.; Assistant
Secretary of Nuveen Investments, Inc. (since 1994);
Assistant Secretary of NWQ Investment Management
Company, LLC (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General
Counsel and Assistant Secretary of Rittenhouse Asset
Management, Inc. (since May 2003); Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant 142
2/3/66 and Assistant Vice President (since 2000), previously, Associate of
333 W. Wacker Drive Secretary Nuveen Investments, LLC.
Chicago, IL 60606
61
Directors
AND OFFICERS (CONTINUED)
POSITION(S) YEAR FIRST NUMBER OF PORTFOLIOS
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Paul L. Brennan Vice President 1999 Vice President (since 2002), formerly, Assistant 128
11/10/66 Vice President (since 1997), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager of Flagship Financial Inc.;
Chicago, IL 60606 Chartered Financial Analyst and Certified Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 142
11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997); Vice
333 W. Wacker Drive President and Treasurer of Nuveen Investments, Inc. (since
Chicago, IL 60606 1999); Vice President and Treasurer of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp. (since 1999); Vice
President and Treasurer of Nuveen Asset Management,
Inc. (since 2002) and of Nuveen Investments Advisers
Inc. (since 2002); Assistant Treasurer of NWQ Investment
Management Company, LLC (since 2002); Chartered
Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Susan M. DeSanto Vice President 2001 Vice President of Nuveen Advisory Corp. (since 2001); 142
9/8/54 previously, Vice President of Van Kampen Investment
333 W. Wacker Drive Advisory Corp. (since 1998); Vice President of Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 2002); prior thereto,
Assistant Vice President of Van Kampen Investment
Advisory Corp. (since 1994).
- ------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 142
9/24/64 and Secretary (since 1998); formerly, Assistant Vice President (since 1998)
333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002)
Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.
- ------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Vice President of Nuveen Investments, LLC; Vice 142
10/24/45 President (since 1998) of Nuveen Advisory Corp. and
333 W. Wacker Drive Nuveen Institutional Advisory Corp.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 142
3/2/64 LLC; Managing Director (since 2001), formerly Vice
333 W. Wacker Drive President of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 1995); Managing
Director of Nuveen Asset Management, Inc. (since 2001);
Vice President of Nuveen Investment Advisers Inc.
(since 2002); Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 142
5/31/54 and Controller 1998) of Nuveen Investments, LLC and Vice President and
333 W. Wacker Drive Funds Controller (since 1998) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
J. Thomas Futrell Vice President 1988 Vice President of Nuveen Advisory Corp.; 128
7/5/55 Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Steven J. Krupa Vice President 1990 Vice President of Nuveen Advisory Corp. 128
8/21/57
333 W. Wacker Drive
Chicago, IL 60606
62
POSITION(S) YEAR FIRST NUMBER OF PORTFOLIOS
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, LLC, 142
3/22/63 previously Assistant Vice President (since 1999); prior
333 W. Wacker Drive thereto, Associate of Nuveen Investments, LLC; Certified
Chicago, IL 60606 Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 142
8/27/61 President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 142
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.; Assistant Secretary of Nuveen
Investments, Inc. and (since 1997) Nuveen Asset Management,
Inc.; Vice President (since 2000), Assistant Secretary and
Assistant General Counsel (since 1998) of Rittenhouse Asset
Management, Inc.; Vice President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since 2002); Assistant
Secretary of NWQ Investment Management Company, LLC
(since 2002).
- ------------------------------------------------------------------------------------------------------------------------------------
John V. Miller Vice President 2003 Vice President (since 2003), previously, Assistant 128
4/10/67 Vice President (since 1999), prior thereto, credit
333 W. Wacker Drive analyst (since 1996) of Nuveen Advisory Corp.;
Chicago, IL 60606 Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, 142
7/7/65 LLC; Managing Director (since 1997), formerly Vice
333 W. Wacker Drive President (since 1996) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.; Managing Director
of Nuveen Asset Management, Inc. (since 1999).
Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. O'Shaughnessy Vice President 1999 Vice President (since 2002), formerly, Assistant 128
9/4/60 Vice President (since 1998), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel S. Solender Vice President 2003 Vice President of Nuveen Advisory Corp. (since 2003); 128
10/27/65 previously, Principal and portfolio manager with The Vanguard
333 W. Wacker Drive Group (1999-2003); prior thereto, Assistant Vice President
Chicago, IL 60606 of the Nuveen Advisory Corp.; Chartered
Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas C. Spalding Vice President 1982 Vice President of Nuveen Advisory Corp. and Nuveen 128
7/31/51 Institutional Advisory Corp.; Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and trustee of the
Adviser.
(2) Directors serve a one-year term until his/her successor is elected. The year
first elected or appointed represents the year in which the Director was
first elected or appointed to any fund in the Nuveen Complex.
(3) Officers serve a one-year term through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
63
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
64
Fund
INFORMATION
BOARD OF DIRECTORS
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
Anne E. Impellizzeri
William L. Kissick
Thomas E. Leafstrand
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Sheila W. Wellington
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows each Fund, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Duration: Duration is a measure of a bond or bond fund's sensitivity to
changes in interest rates. Generally, the longer a bond or fund's duration, the
more the price of the bond or fund will change as interest rates change.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
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Each Fund intends to repurchase shares of its own common or preferred stock,
where applicable, in the future at such times and in such amounts as is deemed
advisable. No shares were repurchased during the fiscal year ended October 31,
2003. Any future repurchases will be reported to shareholders in the next annual
or semiannual report
65
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $90 billion in assets, Nuveen Investments offers access to
a number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style
equities; Rittenhouse, a leader in growth-style equities; and Symphony, a
leading institutional manager of market-neutral alternative investment
portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
EAN-C-1003D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. The registrant has posted such code of
ethics on its website at www.nuveen.com/etf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors has determined that the registrant has
at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its audit committee. The registrant's audit committee
financial expert is William E. Bennett, who is "independent" for purposes of
Item 3 of Form N-CSR.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidary, The First National Bank
of Chicago. As part of his role as Chief Credit Officer, Mr. Bennett set policy
as to accrual of assets/loans; designated performing/non-performing assets; set
the level of reserves against the credit portfolio; and determined the carrying
value of credit related assets and exposure. Among other things, Mr. Bennett was
also responsible for the oversight of the internal analysis function including
setting ground rules for the review and preparation of financial analysis and
financial statements for use in making credit and risk decisions for clients.
Mr. Bennett has significant experience reviewing, analyzing and evaluating
financial statements of domestic and international companies in a variety of
industries with complex accounting issues.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
Nuveen Advisory Corp. (the "Adviser") would either engage an independent third
party to determine how the proxy should be voted or vote the proxy with the
consent, or based on the instructions, of the Fund's Board of Directors or
Trustees or its representative. In the case of a conflict of interest, the proxy
would be submitted to the applicable Fund's Board to determine how the proxy
should be voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/etf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Quality Income Municipal Fund, Inc.
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: January 8, 2004
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: January 8, 2004
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By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: January 8, 2004
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* Print the name and title of each signing officer under his or her signature.