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 811-06303
---------------------
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
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Date of reporting period: October 31, 2004
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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.
ANNUAL REPORT October 31, 2004
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQM
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NQS
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NQU
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
NPF
NUVEEN MUNICIPAL HIGH INCOME OPPORTUNITY FUND
NMZ
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DEPENDABLE, TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the most recent fiscal year your
Fund continued to provide you with monthly tax-free income and an attractive
total return. For more specific information about the performance of your Fund,
please see the Portfolio Managers' Perspective and Performance Overview sections
of this report.
With longer-term interest rates still relatively low, many investors have begun
to wonder whether these rates will soon begin to rise, and whether that makes
this the time to adjust their holdings of fixed-income investments. No one knows
what the future will bring, which is why we think a well-balanced portfolio that
is structured and carefully monitored with the help of an investment
professional can
"OUR MISSION CONTINUES TO BE TO ASSIST YOU AND YOUR FINANCIAL ADVISOR BY
OFFERING THE INVESTMENT SERVICES AND PRODUCTS THAT CAN HELP YOU TO SECURE YOUR
FINANCIAL OBJECTIVES."
be an important component in achieving your long-term financial goals. A well-
diversified portfolio may actually help to reduce your overall investment risk,
and we believe that a municipal bond investment like your Nuveen Fund can be an
important building block in a portfolio designed to perform well through a
variety of market conditions.
As in past reports, I'd also like to direct your attention to the inside front
cover, which explains the quick and easy process to begin receiving these Fund
reports via e-mail and the internet. Thousands of Nuveen Fund shareholders
already have signed-up, and they are getting their Fund information faster and
more conveniently than ever. I urge you to consider joining them.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering the investment services and products that can
help you to secure your financial objectives. We are grateful that you have
chosen us as a partner as you pursue your financial goals, and 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, 2004
Nuveen Municipal Closed-End Exchange-Traded Funds
NQM, NQS, NQU, NPF, NMZ
Portfolio Managers'
PERSPECTIVE
Portfolio managers Dan Solender, Tom Spalding and John Miller discuss the
economic and market environment, key investment strategies, and the annual
performance of these five Funds. With 12 years of investment experience, Dan has
managed NQM and NPF since 2003. A 27-year veteran of Nuveen, Tom also has
managed NQS and NQU since 2003. John, who has 11 years of municipal market
experience, assumed portfolio management responsibility for NMZ at its inception
in November 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED OCTOBER 31, 2004?
During this fiscal year, the U.S. economy demonstrated improvement in a number
of key areas, although the pace of the recovery slowed over the last six months
of the period. The gross domestic product (GDP) expanded at annualized rates of
4.2% in the fourth quarter of 2003 and 4.5% in the first quarter of 2004.
However, sharply higher energy prices restrained consumer spending during the
second and third quarters of 2004, which in turn impacted economic momentum.
Over this period, GDP growth moderated to 3.3% annualized in the second quarter
and 3.9% annualized in the third quarter.
Higher energy costs also continued to produce lingering concerns about
inflation. Although monthly gains in consumer prices were generally tame, by the
end of October 2004 inflation was running well ahead of the 2003 pace. The
Consumer Price Index (CPI) rose at a 3.9% annualized rate for the first 10
months of 2004, more than double the 1.9% rate for all of 2003. Excluding energy
and food, the CPI increased at an annual rate of 2.4% for the first 10 months of
2004.
During the second quarter of 2004 in particular, inflation worries, the slowing
pace of economic recovery and continued geopolitical uncertainty acted as
catalysts for heightened volatility in the fixed-income markets. As one example,
the yield on the Bond Buyer 25 Revenue Bond Index (BB25), a widely followed
municipal bond index, began this reporting period at 5.24%. The BB25 yield then
dropped steadily over the next five months to 4.73% by mid-March 2004. As a
series of improved employment reports sparked increased anticipation of action
by the Federal Reserve, the index yield began to climb again, rising more than
70 basis points over the next 8 weeks to 5.45%, where it hovered through the end
of June. However, more bond-friendly news--including indications of relatively
slow growth of wages and employment--prompted a retreat to 4.97% by the end of
October 2004.
While intermediate and long-term bond yields generally fell over most of the
second half of the Funds' fiscal years, short-term rates slowly rose. The
Federal Reserve instituted three different one-quarter-point increases in the
Fed Funds rate between June and September 2004. (On both November 10 and
December 14, following the end of this reporting period, the Fed added
additional quarter-point increases, bringing the Fed Funds rate to 2.25%.)
4
Over the 12 month period, municipal new issue supply nationwide remained
relatively strong, with $363.4 billion in new bonds coming to market. This
represented a decrease of about 5% from the preceding 12-month period, as the
improving economy and higher tax revenues lessened the need for some issuers to
borrow.
IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING
THE 12 MONTHS ENDED OCTOBER 31, 2004?
Four of these Funds - NQM, NQS, NQU and NPF - seek to provide attractive
tax-free income by investing in investment-grade quality bonds. NMZ may invest
up to half its assets in bonds rated below investment-grade. Given this
strategic difference, and NMZ's relative newness, the four older Funds and NMZ
had different investment strategies over the 12-month period.
As the market continued to anticipate increased short-term interest rates, our
focus for NQM, NQS, NQU and NPF during this reporting period remained on finding
bonds with the potential to add value and perform well under a variety of market
scenarios. This included purchasing attractive bonds that we believed would
enhance the Funds' yield curve positioning and help to mitigate interest rate
risk. Interest rate risk is the risk that the value of a Fund's portfolio will
decline if market interest rates rise (since bond prices move in the opposite
direction of interest rates). In general, our purchase activity in NQM and NPF
centered on trying to find attractive securities that mature in 15 to 22 years,
while NQS and NQU focused on bonds in the 20 to 25 year range. In many cases,
bonds in this long-intermediate part of the yield curve offered yields similar
to those of longer-term bonds with less inherent interest rate risk and, we
believed, greater total return potential.
When implementing this strategy, we sought to purchase higher-coupon bonds that
we believed gave the Funds a more defensive structure in the event that interest
rates rise from their current, relatively low levels. We also worked to enhance
the Funds' call protection by selling bonds with short call dates and investing
the proceeds of those sales in longer-term bonds.
While all of the Funds continued to be well diversified geographically, we took
advantage of price and yield differences between similar bonds issued in
different states to purchase securities that we believed offered stronger
performance potential and better liquidity. This was particularly true for NQM
and NPF, where we tended to purchase bonds issued in California, New York or
other states where higher state or local taxes made yields attractive. We
believed that the relatively higher demand often found in these states for
attractive bonds would help support their prices in the future.
Additionally, we actively sought to reduce the weightings of AAA rated bonds in
both NQM and NPF, and to increase their allocations to lower-rated securities
which had been relatively underweighted in their portfolios. In doing this, we
wanted not just to capture
5
additional yield for the Funds, which may help to support their dividends, but
also to increase their overall diversification and future total return
potential. As of October 31, 2004, allocations to AAA/U.S. guaranteed rated
bonds were 68% in NQM and 62% in NPF, down from 75% and 71%, respectively, a
year earlier.
In NMZ, which was introduced in November 2003, the majority of our initial
purchases were new issues, whose maturities typically placed them at the long
end of the yield curve. Following the completion of this initial investment
phase, our goal was the same as in the other Funds - to shorten NMZ's yield
curve positioning and help mitigate interest rate risk. To accomplish this, we
sold some bonds with longer maturities that we purchased initially with the
intent to quickly build the Fund's income stream but that we did not consider to
be desirable long term holdings for this Fund. As we sold these bonds, we looked
to reinvest the proceeds in the 15-year to 20-year part of the yield curve. We
deliberately sought to overweight specific sectors, such as property tax-backed
community development districts, hospitals, charter schools and industrial
development revenue bonds.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Funds, as well as relevant comparative
indexes, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 10/31/04
(Annualized)
1-YEAR 5-YEAR 10-YEAR
- --------------------------------------------------------------------------------
NQM 9.37% 9.29% 7.55%
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NQS 9.64% 9.18% 7.99%
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NQU 10.07% 8.46% 7.77%
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NPF 9.48% 8.63% 7.93%
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Lehman Brothers Municipal
Bond Index1 6.03% 7.19% 7.05%
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Lipper General Leveraged
Municipal Debt Funds
Average2 8.93% 8.78% 7.86%
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(Cumulative)
SINCE INCEPTION 5-YEAR 10-YEAR
- --------------------------------------------------------------------------------
NMZ 10.38%* NA NA
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Lehman Brothers
High-Yield
Municipal Bond Index1 8.48%** -- --
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Lipper High-Yield
Municipal Debt Funds
Average2 7.18%** -- --
- --------------------------------------------------------------------------------
* This return represents the period from NMZ's inception on November 19, 2003
through October 31, 2004.
** The Lehman Brothers Index and Lipper group average returns shown here
represents the 11-month period December 1, 2003 through October 31, 2004.
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
1 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. The Lehman Brothers High-Yield Municipal Bond Index is an
unleveraged, unmanaged national index comprising municipal bonds rated
below investment grade (i.e., below Baa by Moody's Investor Service and
below BBB by Standard & Poor's or Fitch). Results for the Lehman indexes do
not reflect any expenses.
2 The Lipper General Leveraged Municipal Debt Funds category average is
calculated using the returns of all closed-end exchange-traded funds in
this category for each period as follows: 1 year, 65 funds; 5 years, 51
funds; and 10 years, 46 funds. The Lipper High-Yield Municipal Debt Funds
category average is calculated using the returns of all 14 closed-end
exchange-traded funds in this category for the 12-month period
11/1/03-10/31/04. Fund and Lipper returns assume reinvestment of dividends.
6
For the 12 months ended October 31, 2004, the total returns on net asset value
(NAV) for NQM, NQS, NQU and NPF outperformed the return on the Lehman Brothers
Index as well as the average return for their Lipper peer group for this period.
NMZ also outperformed the return of the Lehman Brothers High-Yield Municipal
Index and the Lipper High-Yield peer group average for the period.
One of the primary factors benefiting the 12-month performances of these Funds
relative to that of the unleveraged Lehman Brothers indexes was the Funds' use
of financial leverage. While leverage can add volatility to the Funds' NAVs and
share prices, especially when substantial shifts in interest rates occur, this
strategy also can provide opportunities for additional income and total returns
for common shareholders when short-term interest rates remain low, as they did
during this period.
All five of these Funds benefited from their holdings of lower-rated bonds,
which generally outperformed other credit quality sectors as the economy
improved and demand for these lower-rated bonds increased. Among the lower-rated
bonds making positive contributions to the Funds' total returns during this
period were those issued by the healthcare sector, especially hospital bonds.
The performance of the healthcare sector as a whole ranked second among the
Lehman Brothers Index revenue sectors for the year. In particular, NQS and NMZ
benefited from their holdings of bonds issued by the Michigan State Hospital
Finance Authority for Detroit Medical Center, which appreciated in price as the
center's financial situation continued to improve. Another NMZ hospital holding,
the West Penn Allegheny Health System in Pennsylvania, also experienced price
appreciation due to strong financial results and the demand for high-yield
hospital bonds.
The Funds' returns were also helped by the strong performance of their holdings
of uninsured bonds backed by the 1998 master tobacco settlement agreement. Over
this period, NQS and NQU maintained exposures of approximately 5% to tobacco
bonds, NMZ had a 4% exposure, and NQM and NPF continued to allocate 2% to this
sector.
NQM, NQU, NPF and NMZ also benefited from the improvement in California general
obligation bonds, which were upgraded to A3/A/A- from Baa1/BBB/BBB by Moody's,
Standard & Poor's and Fitch between May and September 2004. NMZ also had several
other credits upgraded during this period, which resulted in price appreciation
and added to the Fund's total return. These included $12.9 million (par value)
of bonds issued by the Oklahoma Development Finance Authority for Hillcrest
Healthcare System, which were pre-refunded and upgraded to AAA from B1 by
Standard & Poor's following the system's acquisition by a private for-profit
hospital operator.
One sector that did not perform as well during this period was housing, both
multifamily and single family. The housing sector as a whole ranked at the
bottom of the Lehman Brothers Index revenue sectors for the 12-month period. The
sector's below-market
7
performance stemmed largely from the continued increase in mortgage prepayments
as interest rates remained low, which resulted in a number of bond calls. In
general, the Funds' housing exposure had a negative effect on their performance,
with NQU having the smallest weighting (5%) in housing bonds, and NPF and NMZ
the largest (10%). NPF also was impacted by its holding of $10.8 million (par
value) of non-rated bonds issued by Northwest Minnesota Multi-County Housing and
Redevelopment Authority. During this 12-month period, this distressed credit
declined in value to $0.53 on the dollar from $0.70 and stopped accruing
interest, which also affected NPF's income stream. (This holding was sold from
the portfolio after the end of this reporting period.)
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at relatively low levels throughout
this reporting period, the leveraged structures of these Funds continued to
support their dividend-paying capabilities. The extent of this benefit is tied
in part to the short-term rates the Funds pay their MuniPreferred(R)
shareholders. During periods of low short-term rates, leveraged Funds generally
pay relatively lower dividends to their MuniPreferred shareholders, which can
leave more earnings to support common share dividends. This strategy helped to
maintain the dividends of NQM, NQS and NQU throughout the reporting period. NMZ
paid its first dividend in January 2004 and maintained a stable dividend over
the remainder of the period. In NPF, however, the sale of some higher-yielding
zero coupon bonds as part of our efforts to enhance future performance potential
and reduce interest rate risk, combined with the distressed credit discussed
earlier, led to a dividend cut in September 2004.
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of
its earnings, the excess constitutes negative UNII that is likewise reflected in
the Fund's NAV. Each Fund will, over time, pay all of its net investment income
as dividends to shareholders. As of October 31, 2004, all of the Funds in this
report had positive UNII balances for both financial statement and tax purposes.
As of October 31, 2004, NQM, NQS, NQU and NPF were trading at discounts to their
NAVs that were in line with their average discounts over the course of the
entire fiscal
8
year. NMZ was trading at a premium to its NAV, which also was in line with its
average premium over the course of the year.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
OCTOBER 31, 2004?
Given the current geopolitical and economic climate, we continued to believe
that maintaining strong credit quality was an important requirement. As of
October 31, 2004, all four of the older Funds in this report continued to offer
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 75% in NPF to 76% in NQS, 79% in NQM and 80% in NQU. NMZ,
which can invest up to 50% of its portfolio in below investment-grade quality
bonds, held 16% of its portfolio in securities rated BB or lower and another 37%
of the portfolio invested in non-rated securities (some of which we have deemed
to be of investment-grade quality) as of October 31, 2004. The rest of NMZ's
assets were invested in investment-grade securities, including a 14% allocation
to bonds rated AAA/U.S. guaranteed and AA.
As of October 31, 2004, potential call exposure for these Funds during 2004-2006
ranged from 6% in NQM to 8% in NQU and NMZ, 12% in NQS and 14% in NPF. The
number of actual bond calls in all of these Funds depends largely on market
interest rates in the future.
9
Nuveen Investment Quality Municipal Fund, Inc.
NQM
Performance
OVERVIEW As of October 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 68%
AA 11%
A 13%
BBB 4%
NR 4%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.084
Dec 0.084
Jan 0.084
Feb 0.084
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.
11/1/03 15.15
15.06
15.18
15.24
15.4
15.24
15.32
15.27
15.34
15.63
15.85
15.9
15.68
15.76
15.74
15.78
15.99
15.88
16
15.99
15.98
15.56
14.77
14.42
14
13.34
13.63
13.85
14.14
14.04
13.7
13.85
14.19
14.44
14.37
14.31
14.56
14.75
14.87
14.9
15.01
14.96
15.16
15.12
15.21
15.13
15.2
15.17
15.16
10/31/04 15.33
FUND SNAPSHOT
- ------------------------------------
Share Price $15.33
- ------------------------------------
Common Share
Net Asset Value $16.06
- ------------------------------------
Premium/(Discount) to NAV -4.55%
- ------------------------------------
Market Yield 6.58%
- ------------------------------------
Taxable-Equivalent Yield1 9.14%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $574,164
- ------------------------------------
Average Effective
Maturity on Securities (Years) 16.55
- ------------------------------------
Leverage-Adjusted Duration 9.28
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/21/90)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 8.54% 9.37%
- ------------------------------------
5-Year 9.84% 9.29%
- ------------------------------------
10-Year 8.28% 7.55%
- ------------------------------------
STATES
(as a % of total investments)
- ------------------------------------
California 11.9%
- ------------------------------------
New York 10.9%
- ------------------------------------
Texas 10.9%
- ------------------------------------
Illinois 6.9%
- ------------------------------------
Washington 5.7%
- ------------------------------------
Rhode Island 4.2%
- ------------------------------------
Minnesota 4.1%
- ------------------------------------
District of Columbia 4.0%
- ------------------------------------
North Carolina 3.7%
- ------------------------------------
Georgia 3.7%
- ------------------------------------
Nevada 3.3%
- ------------------------------------
Colorado 3.1%
- ------------------------------------
Massachusetts 2.9%
- ------------------------------------
Michigan 2.7%
- ------------------------------------
Louisiana 2.4%
- ------------------------------------
Indiana 2.3%
- ------------------------------------
Wisconsin 2.2%
- ------------------------------------
Other 15.1%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
U.S. Guaranteed 19.9%
- ------------------------------------
Tax Obligation/General 14.7%
- ------------------------------------
Healthcare 13.8%
- ------------------------------------
Transportation 12.0%
- ------------------------------------
Tax Obligation/Limited 11.2%
- ------------------------------------
Utilities 7.3%
- ------------------------------------
Water and Sewer 6.7%
- ------------------------------------
Housing/Multifamily 6.1%
- ------------------------------------
Other 8.3%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
10
Nuveen Select Quality Municipal Fund, Inc.
NQS
Performance
OVERVIEW As of October 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 67%
AA 9%
A 7%
BBB 13%
NR 2%
BB or lower 2%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.083
Dec 0.083
Jan 0.083
Feb 0.083
Mar 0.083
Apr 0.083
May 0.083
Jun 0.083
Jul 0.083
Aug 0.083
Sep 0.083
Oct 0.083
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/03 14.82
14.78
14.83
14.98
15.02
14.92
14.97
15
15.16
15.4
15.5
15.69
15.35
15.5
15.38
15.45
15.68
15.72
15.54
15.67
15.55
15.32
14.27
14.24
13.8
13.22
13.4
13.62
13.95
13.85
13.74
13.87
14.06
14.28
14.37
14.3
14.35
14.63
14.64
14.67
14.96
14.9
15
15.12
15.16
14.9
15.03
14.91
15.05
10/31/04 15.19
FUND SNAPSHOT
- ------------------------------------
Share Price $15.19
- ------------------------------------
Common Share
Net Asset Value $15.69
- ------------------------------------
Premium/(Discount) to NAV -3.19%
- ------------------------------------
Market Yield 6.56%
- ------------------------------------
Taxable-Equivalent Yield1 9.11%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $531,694
- ------------------------------------
Average Effective
Maturity on Securities (Years) 17.97
- ------------------------------------
Leverage-Adjusted Duration 8.05
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 10.19% 9.64%
- ------------------------------------
5-Year 10.32% 9.18%
- ------------------------------------
10-Year 8.55% 7.99%
- ------------------------------------
STATES
(as a % of total investments)
- ------------------------------------
Illinois 11.1%
- ------------------------------------
New York 10.0%
- ------------------------------------
Texas 9.6%
- ------------------------------------
Nevada 6.0%
- ------------------------------------
Michigan 5.8%
- ------------------------------------
Colorado 5.6%
- ------------------------------------
South Carolina 5.4%
- ------------------------------------
Tennessee 4.4%
- ------------------------------------
New Jersey 4.2%
- ------------------------------------
New Mexico 2.9%
- ------------------------------------
Alabama 2.7%
- ------------------------------------
Washington 2.5%
- ------------------------------------
Utah 2.5%
- ------------------------------------
North Carolina 2.3%
- ------------------------------------
District of Columbia 2.1%
- ------------------------------------
Wisconsin 2.1%
- ------------------------------------
Florida 1.9%
- ------------------------------------
Oklahoma 1.6%
- ------------------------------------
South Dakota 1.6%
- ------------------------------------
Other 15.7%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
U.S. Guaranteed 17.7%
- ------------------------------------
Healthcare 17.7%
- ------------------------------------
Utilities 14.8%
- ------------------------------------
Transportation 11.9%
- ------------------------------------
Tax Obligation/Limited 9.8%
- ------------------------------------
Tax Obligation/General 8.4%
- ------------------------------------
Housing/Single Family 6.3%
- ------------------------------------
Consumer Staples 4.9%
- ------------------------------------
Other 8.5%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0725 per share.
11
Nuveen Quality Income Municipal Fund, Inc.
NQU
Performance
OVERVIEW As of October 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 69%
AA 11%
A 8%
BBB 8%
NR 1%
BB or Lower 3%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.0805
Dec 0.0805
Jan 0.0805
Feb 0.0805
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.
11/1/03 14.4
14.42
14.34
14.46
14.55
14.47
14.5
14.54
14.7
15.11
15.07
15.14
15.07
15.17
15.08
15.09
15.24
15.31
15.4
15.39
15.38
15.26
14.17
13.82
13.57
13.02
12.91
13.05
13.43
13.45
13.22
13.25
13.68
13.88
13.97
13.82
14
14.15
14.13
14.23
14.47
14.4
14.49
14.45
14.57
14.38
14.54
14.4
14.42
10/31/04 14.58
FUND SNAPSHOT
- ------------------------------------
Share Price $14.58
- ------------------------------------
Common Share
Net Asset Value $15.54
- ------------------------------------
Premium/(Discount) to NAV -6.18%
- ------------------------------------
Market Yield 6.63%
- ------------------------------------
Taxable-Equivalent Yield1 9.21%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $842,093
- ------------------------------------
Average Effective
Maturity on Securities (Years) 16.58
- ------------------------------------
Leverage-Adjusted Duration 8.65
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 8.76% 10.07%
- ------------------------------------
5-Year 7.94% 8.46%
- ------------------------------------
10-Year 8.28% 7.77%
- ------------------------------------
STATES
(as a % of total investments)
- ------------------------------------
New York 15.8%
- ------------------------------------
Texas 12.0%
- ------------------------------------
Illinois 9.3%
- ------------------------------------
Washington 7.2%
- ------------------------------------
South Carolina 4.9%
- ------------------------------------
Massachusetts 4.9%
- ------------------------------------
Nevada 4.8%
- ------------------------------------
Oklahoma 4.3%
- ------------------------------------
California 3.9%
- ------------------------------------
Pennsylvania 3.2%
- ------------------------------------
Colorado 3.2%
- ------------------------------------
Alabama 2.2%
- ------------------------------------
North Carolina 1.7%
- ------------------------------------
Ohio 1.6%
- ------------------------------------
Tennessee 1.5%
- ------------------------------------
Virginia 1.4%
- ------------------------------------
Louisiana 1.4%
- ------------------------------------
Other 16.7%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/General 22.7%
- ------------------------------------
U.S. Guaranteed 18.1%
- ------------------------------------
Transportation 13.3%
- ------------------------------------
Utilities 12.7%
- ------------------------------------
Healthcare 10.4%
- ------------------------------------
Tax Obligation/Limited 6.1%
- ------------------------------------
Consumer Staples 4.6%
- ------------------------------------
Other 12.1%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
12
Nuveen Premier Municipal Income Fund, Inc.
NPF
Performance
OVERVIEW As of October 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 62%
AA 13%
A 16%
BBB 7%
NR 2%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.0825
Dec 0.0825
Jan 0.0825
Feb 0.0825
Mar 0.0825
Apr 0.0825
May 0.0825
Jun 0.0825
Jul 0.0825
Aug 0.0825
Sep 0.08
Oct 0.08
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/03 14.68
14.78
14.77
14.75
14.76
14.63
14.61
14.58
14.7
15.18
15.27
15.42
15.32
15.45
15.46
15.55
15.59
15.71
15.48
15.5
15.54
15.39
14.01
13.91
13.63
13.15
13.34
13.21
13.48
13.56
13.3
13.3
13.8
13.95
13.91
13.78
14.13
14.32
14.38
14.38
14.45
14.41
14.47
14.44
14.49
14.38
14.4
14.45
14.39
10/31/04 14.43
FUND SNAPSHOT
- ------------------------------------
Share Price $14.43
- ------------------------------------
Common Share
Net Asset Value $15.53
- ------------------------------------
Premium/(Discount) to NAV -7.08%
- ------------------------------------
Market Yield 6.65%
- ------------------------------------
Taxable-Equivalent Yield1 9.24%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $311,991
- ------------------------------------
Average Effective
Maturity on Securities (Years) 15.45
- ------------------------------------
Leverage-Adjusted Duration 10.58
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 4.75% 9.48%
- ------------------------------------
5-Year 8.74% 8.63%
- ------------------------------------
10-Year 8.32% 7.93%
- ------------------------------------
STATES
(as a % of total investments)
- ------------------------------------
Illinois 13.5%
- ------------------------------------
California 10.8%
- ------------------------------------
New York 10.1%
- ------------------------------------
Washington 6.5%
- ------------------------------------
Minnesota 5.5%
- ------------------------------------
Indiana 5.3%
- ------------------------------------
South Carolina 4.9%
- ------------------------------------
Texas 4.1%
- ------------------------------------
Arizona 3.6%
- ------------------------------------
Wisconsin 3.3%
- ------------------------------------
Maine 3.2%
- ------------------------------------
Florida 2.9%
- ------------------------------------
Georgia 2.8%
- ------------------------------------
North Carolina 2.7%
- ------------------------------------
Nevada 2.6%
- ------------------------------------
Ohio 1.7%
- ------------------------------------
Rhode Island 1.5%
- ------------------------------------
Other 15.0%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 20.2%
- ------------------------------------
Tax Obligation/General 16.1%
- ------------------------------------
U.S. Guaranteed 13.9%
- ------------------------------------
Utilities 12.7%
- ------------------------------------
Healthcare 10.7%
- ------------------------------------
Housing/Multifamily 6.2%
- ------------------------------------
Education and
Civic Organizations 5.2%
- ------------------------------------
Water and Sewer 5.2%
- ------------------------------------
Other 9.8%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
13
Nuveen Municipal High Income Opportunity Fund
NMZ
Performance
OVERVIEW As of October 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 10%
AA 4%
A 16%
BBB 17%
NR 37%
BB or Lower 16%
Bar Chart:
2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.089
Feb 0.089
Mar 0.089
Apr 0.089
May 0.089
Jun 0.089
Jul 0.089
Aug 0.089
Sep 0.089
Oct 0.089
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/19/03 15.08
14.95
15.27
15.25
15.01
15
15.02
15.09
15.2
15.3
15.34
15.34
15.31
15.26
15.25
15.39
15.59
15.46
15.45
15.35
14.5
14.24
14.1
14.25
13.65
13.65
13.84
14.22
13.75
13.45
14.3
14.2
14.51
14.14
14.53
14.46
14.75
14.54
14.64
14.71
14.82
14.71
14.88
14.87
14.99
15
14.98
10/31/04 15.04
FUND SNAPSHOT
- -----------------------------------------
Share Price $15.04
- -----------------------------------------
Common Share
Net Asset Value $14.87
- -----------------------------------------
Premium/(Discount) to NAV 1.14%
- -----------------------------------------
Market Yield 7.10%
- -----------------------------------------
Taxable-Equivalent Yield1 9.86%
- -----------------------------------------
Net Assets Applicable to
Common Shares ($000) $345,023
- -----------------------------------------
Average Effective
Maturity on Securities (Years) 22.67
- -----------------------------------------
Leverage-Adjusted Duration 10.70
- -----------------------------------------
CUMULATIVE TOTAL RETURN
(Inception 11/19/03)
- -----------------------------------------
On Share Price On NAV
- -----------------------------------------
Since
Inception 6.49% 10.38%
- -----------------------------------------
STATES
(as a % of total investments)
- -----------------------------------------
California 13.6%
- -----------------------------------------
Florida 7.8%
- -----------------------------------------
Illinois 7.2%
- -----------------------------------------
Colorado 6.7%
- -----------------------------------------
Texas 6.0%
- -----------------------------------------
Louisiana 4.7%
- -----------------------------------------
Wisconsin 4.1%
- -----------------------------------------
Indiana 3.8%
- -----------------------------------------
Michigan 3.7%
- -----------------------------------------
Arizona 3.3%
- -----------------------------------------
Oklahoma 3.1%
- -----------------------------------------
Pennsylvania 2.8%
- -----------------------------------------
Washington 2.6%
- -----------------------------------------
Ohio 2.6%
- -----------------------------------------
New York 2.5%
- -----------------------------------------
New Jersey 2.4%
- -----------------------------------------
Virgin Islands 2.4%
- -----------------------------------------
Maryland 2.4%
- -----------------------------------------
Virginia 2.3%
- -----------------------------------------
Other 16.0%
- -----------------------------------------
Sectors
(as a % of total investments)
- -----------------------------------------
Tax Obligation/Limited 29.7%
- -----------------------------------------
Healthcare 25.3%
- -----------------------------------------
Housing/Multifamily 9.6%
- -----------------------------------------
Transportation 6.9%
- -----------------------------------------
Utilities 5.3%
- -----------------------------------------
Materials 4.7%
- -----------------------------------------
Consumer Staples 4.0%
- -----------------------------------------
U.S. Guaranteed 3.5%
- -----------------------------------------
Other 11.0%
- -----------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
14
Shareholder
MEETING REPORT
The annual shareholder meeting was held on August 3, 2004, at the Northern Trust
Bank, Chicago, Illinois.
NQM NQS NQU
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 32,438,640 -- 30,776,203 -- 48,595,551 --
Withhold 342,092 -- 403,970 -- 578,568 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,780,732 -- 31,180,173 -- 49,174,119 --
====================================================================================================================================
Lawrence H. Brown
For 32,422,996 -- 30,784,862 -- 48,588,457 --
Withhold 357,736 -- 395,311 -- 585,662 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,780,732 -- 31,180,173 -- 49,174,119 --
====================================================================================================================================
Jack B. Evans
For 32,420,686 -- 30,774,076 -- 48,564,894 --
Withhold 360,046 -- 406,097 -- 609,225 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,780,732 -- 31,180,173 -- 49,174,119 --
====================================================================================================================================
William C. Hunter
For 32,419,487 -- 30,777,663 -- 48,545,765 --
Withhold 361,245 -- 402,510 -- 628,354 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,780,732 -- 31,180,173 -- 49,174,119 --
====================================================================================================================================
William J. Schneider
For -- 11,417 -- 10,354 -- 17,381
Withhold -- 33 -- 72 -- 69
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,450 -- 10,426 -- 17,450
====================================================================================================================================
Timothy R. Schwertfeger
For -- 11,417 -- 10,354 -- 17,397
Withhold -- 33 -- 72 -- 53
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,450 -- 10,426 -- 17,450
====================================================================================================================================
Judith M. Stockdale
For 32,421,258 -- 30,754,566 -- 48,519,159 --
Withhold 359,474 -- 425,607 -- 654,960 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,780,732 -- 31,180,173 -- 49,174,119 --
====================================================================================================================================
15
Shareholder
MEETING REPORT (continued)
NPF NMZ
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 17,956,517 -- 22,645,136 --
Withhold 265,226 -- 146,402 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,221,743 -- 22,791,538 --
====================================================================================================================================
Lawrence H. Brown
For 17,946,285 -- 22,637,898 --
Withhold 275,458 -- 153,640 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,221,743 -- 22,791,538 --
====================================================================================================================================
Jack B. Evans
For 17,948,881 -- 22,638,669 --
Withhold 272,862 -- 152,869 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,221,743 -- 22,791,538 --
====================================================================================================================================
William C. Hunter
For 17,938,514 -- 22,638,454 --
Withhold 283,229 -- 153,084 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,221,743 -- 22,791,538 --
====================================================================================================================================
William J. Schneider
For -- 6,334 -- 5,981
Withhold -- 30 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,364 -- 5,982
====================================================================================================================================
Timothy R. Schwertfeger
For -- 6,334 -- 5,981
Withhold -- 30 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,364 -- 5,982
====================================================================================================================================
Judith M. Stockdale
For 17,949,506 -- 22,645,584 --
Withhold 272,237 -- 145,954 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,221,743 -- 22,791,538 --
====================================================================================================================================
16
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS/TRUSTEES 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.
NUVEEN MUNICIPAL HIGH INCOME OPPORTUNITY FUND
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., Nuveen Premier Municipal Income Fund, Inc. and Nuveen
Municipal High Income Opportunity Fund as of October 31, 2004, and the related
statements of operations and changes in net assets and the financial highlights
for the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (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, 2004, 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., Nuveen Premier Municipal
Income Fund, Inc., and Nuveen Municipal High Income Opportunity Fund at October
31, 2004, the results of their operations, the changes in their net assets and
the financial highlights for the periods indicated therein in conformity with
U.S. generally accepted accounting principles.
/s/Ernst & Young LLP
Chicago, Illinois
December 15, 2004
17
Nuveen Investment Quality Municipal Fund, Inc. (NQM)
Portfolio of
INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.7% (0.4% OF TOTAL INVESTMENTS)
$ 4,000 Northern Tobacco Securitization Corporation, Alaska, 6/10 at 100.00 BBB $ 3,780,480
Tobacco Settlement Asset-Backed Bonds, Series 2000,
6.500%, 6/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.4% (0.9% OF TOTAL INVESTMENTS)
2,780 Arkansas Development Finance Authority, Home Mortgage 7/08 at 101.50 AAA 2,872,491
Revenue Bonds, FNMA/GNMA Mortgage-Backed Securities
Program, Series 1998A, 5.150%, 7/01/17
Van Buren County, Arkansas, Sales and Use Tax Revenue Refunding
and Construction Bonds, Series 2000:
1,055 5.600%, 12/01/25 - AMBAC Insured 12/10 at 100.00 Aaa 1,170,016
3,600 5.650%, 12/01/31 - AMBAC Insured 12/10 at 100.00 Aaa 3,992,688
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 18.0% (11.9% OF TOTAL INVESTMENTS)
8,280 Alameda County, California, Certificates of Participation, 9/06 at 102.00 AAA 9,023,461
Alameda County Public Facilities Corporation, Series 1991,
6.000%, 9/01/21 (Pre-refunded to 9/01/06) - MBIA Insured
10,000 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A 10,607,700
5.250%, 2/01/25
2,500 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA- 2,855,125
5.250%, 7/01/14
5,925 California State Public Works Board, Lease Revenue Refunding 12/04 at 101.00 Aa2 5,996,456
Bonds, Various University of California Projects,
Series 1993A, 5.500%, 6/01/21
1,900 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 2,037,636
Bonds, San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
9,740 Huntington Park Redevelopment Agency, California, Single No Opt. Call AAA 14,269,003
Family Residential Mortgage Revenue Refunding Bonds,
Series 1986A, 8.000%, 12/01/19
5,730 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 6,110,988
Obligation Bonds, Series 2002E, 5.125%, 7/01/22 -
MBIA Insured
1,030 Natomas Union School District, Sacramento County, No Opt. Call AAA 1,254,097
California, General Obligation Refunding Bonds,
Series 1999, 5.950%, 9/01/21 - MBIA Insured
15,770 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 22,026,590
County, California, Revenue Refunding Bonds,
Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 -
MBIA Insured
13,145 Perris, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 18,134,579
Program Single Family Mortgage Revenue Bonds,
Series 1988B, 8.200%, 9/01/23 (Alternative Minimum Tax)
3,415 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 3,638,990
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
San Joaquin Hills Transportation Corridor Agency, California,
Toll Road Revenue Refunding Bonds, Series 1997A:
6,175 0.000%, 1/15/28 - MBIA Insured No Opt. Call AAA 1,823,354
8,135 0.000%, 1/15/34 - MBIA Insured No Opt. Call AAA 1,722,830
17,195 0.000%, 1/15/35 - MBIA Insured No Opt. Call AAA 3,442,955
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.6% (3.1% OF TOTAL INVESTMENTS)
165 Colorado Housing Finance Authority, Single Family Program 5/06 at 105.00 Aa2 167,006
Senior Bonds, Series 1996B, 7.450%, 11/01/27
12,450 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 13,910,136
Refunding Bonds, Series 2000A, 6.000%, 11/15/19
(Alternative Minimum Tax) - AMBAC Insured
3,200 Denver City and County, Colorado, Special Facilities Airport 4/05 at 100.00 N/R 2,304,000
Revenue Bonds, United Air Lines Corporation, Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax) #
7,865 El Paso County School District 11, Colorado Springs, 12/07 at 125.00 AA- 10,282,858
Colorado, General Obligation Improvement Bonds,
Series 1996, 7.125%, 12/01/21
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 6.0% (4.0% OF TOTAL INVESTMENTS)
$ 3,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA $ 3,624,900
6.000%, 6/01/16 - MBIA Insured
15,950 District of Columbia, Revenue Bonds, Georgetown University, 4/11 at 31.03 AAA 3,471,677
Series 2001A, 0.000%, 4/01/31 - MBIA Insured
23,645 District of Columbia Water and Sewerage Authority, Public 4/09 at 160.00 AAA 27,443,569
Utility Revenue Bonds, Series 1998, 5.500%, 10/01/23 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,200 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 3,502,336
Florida, Exempt Facilities Revenue Bonds, National Gypsum
Company Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 5.5% (3.7% OF TOTAL INVESTMENTS)
17,500 Atlanta, Georgia, Airport General Revenue Refunding 1/10 at 101.00 AAA 20,008,625
Bonds, Series 2000A, 5.600%, 1/01/30 (Pre-refunded
to 1/01/10) - FGIC Insured
2,000 Dalton Development Authority, Georgia, Revenue Certificates, No Opt. Call AAA 2,238,540
Hamilton Health Care System Inc., Series 1996,
5.500%, 8/15/26 - MBIA Insured
5,980 Fulton County Development Authority, Georgia, Revenue 9/11 at 102.00 AAA 6,621,953
Bonds, Georgia State University - TUFF/Atlanta Housing
LLC, Series 2001A, 5.500%, 9/01/22 - AMBAC Insured
2,250 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+ 2,794,163
Obligation Bonds, Fourth Crossover Series 1997E,
6.500%, 1/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.9% (0.6% OF TOTAL INVESTMENTS)
4,810 Boise City, Idaho, Revenue Refunding Bonds, Series 2001A, 12/11 at 100.00 Aaa 5,148,961
5.375%, 12/01/31 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.4% (6.9% OF TOTAL INVESTMENTS)
4,705 Bourbonnais, Illinois, Revenue Bonds, Olivet Nazarene 3/10 at 101.00 AA 5,289,879
University, Series 2000, 6.250%, 3/01/20 - RAAI Insured
9,000 Chicago, Illinois, Special Facility Revenue Bonds, O'Hare No Opt. Call N/R 3,240,000
International Airport, United Air Lines Inc. Project,
Series 2001A, 6.375%, 11/01/35 (Alternative Minimum Tax)
(Mandatory put 5/01/13) #
4,775 Chicago Public Building Commission, Illinois, General 3/13 at 100.00 AAA 5,112,258
Obligation Lease Bonds, Chicago Transit Authority,
Series 2003, 5.250%, 3/01/23 - AMBAC Insured
2,110 Illinois Development Finance Authority, Local Government 1/11 at 100.00 Aaa 2,418,060
Program Revenue Bonds, Elmhurst Community Unit School
District 205 Project, Series 2000, 6.000%, 1/01/19 -
FSA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,500 5.250%, 11/15/21 5/14 at 100.00 A 2,605,700
1,000 5.250%, 11/15/22 5/14 at 100.00 A 1,038,380
12,725 Kane, Cook and DuPage Counties School District 46, Elgin, No Opt. Call Aaa 16,370,713
Illinois, General Obligation School Bonds, Series 1997,
7.800%, 1/01/12 - FSA Insured
6,300 Madison County Community Unit School District 7, No Opt. Call AAA 7,325,703
Edwardsville, Illinois, School Building Bonds, Series 1994,
5.850%, 2/01/13 - FGIC Insured
3,585 Pekin, Illinois, FHA-Insured Section 8 Multifamily Housing 11/04 at 102.00 AAA 3,662,328
Revenue Refunding Bonds, United Auto Workers Senior
Center, Series 1992A, 6.875%, 5/01/22
5,390 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 6,307,001
Lake, McHenry and Will Counties, Illinois, General
Obligation Bonds, Series 1992A, 9.000%, 6/01/07 -
AMBAC Insured
860 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 1,006,312
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1992B, 9.000%, 6/01/07 - AMBAC Insured
1,180 Will County School District 17, Channahon, Illinois, General No Opt. Call Aaa 1,623,208
Obligation School Building Bonds, Series 2001,
8.400%, 12/01/13 - AMBAC Insured
Will County High School District 204, Joliet, Illinois, General
Obligation Bonds, Series 2001:
1,145 8.700%, 12/01/13 - FSA Insured No Opt. Call AAA 1,601,237
1,300 8.700%, 12/01/14 - FSA Insured No Opt. Call AAA 1,856,530
19
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5% (2.3% OF TOTAL INVESTMENTS)
$ 5,530 Allen County Jail Building Corporation, Indiana, First Mortgage 4/11 at 101.00 Aa3 $ 6,124,309
Bonds, Series 2000, 5.750%, 4/01/20
1,880 Indianapolis, Indiana, GNMA Collateralized Multifamily 7/10 at 102.00 Aaa 2,002,802
Housing Mortgage Revenue Bonds, Cloverleaf Apartments
Project Phase I, Series 2000, 6.000%, 1/20/31
5,065 Metropolitan School District Steuben County K-5 Building 7/10 at 101.00 AAA 5,967,330
Corporation, Indiana, First Mortgage Bonds, Series 2000,
6.125%, 1/15/21 (Pre-refunded to 7/15/10) - FSA Insured
2,495 Shelbyville, Indiana, GNMA Collateralized Multifamily 7/10 at 102.00 Aaa 2,657,649
Housing Revenue Bonds, Blueridge Terrace Project,
Series 2000, 6.050%, 1/20/36
2,765 Wayne County Jail Holding Corporation, Indiana, First 1/13 at 101.00 AAA 3,204,829
Mortgage Bonds, Series 2001, 5.750%, 7/15/14 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,560 Sedgwick and Shawnee Counties, Kansas, GNMA No Opt. Call Aaa 1,595,927
Mortgage-Backed Securities Program Single Family
Revenue Bonds, Series 1997A-1, 6.950%, 6/01/29
(Alternative Minimum Tax)
4,030 Topeka, Kansas, Industrial Revenue Refunding Bonds, 8/16 at 100.00 AAA 5,520,455
Sunwest Hotel Corporation, Series 1988,
9.500%, 10/01/16 (Alternative Minimum Tax)
(Pre-refunded to 8/15/16)
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.6% (1.7% OF TOTAL INVESTMENTS)
2,000 Jefferson County, Kentucky, Health Facilities Revenue 1/07 at 102.00 AAA 2,164,740
Refunding Bonds, Jewish Hospital HealthCare Services
Inc., Series 1996, 5.700%, 1/01/21 - AMBAC Insured
12,500 Jefferson County, Kentucky, Pollution Control Revenue 4/05 at 102.00 AAA 12,972,625
Bonds, Louisville Gas and Electric Company, Series 1995A,
5.900%, 4/15/23 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.7% (2.4% OF TOTAL INVESTMENTS)
1,780 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/07 at 102.00 Aaa 1,802,214
GNMA/FNMA Mortgage-Backed Securities Program Family
Mortgage Revenue Refunding Bonds, Series 1997D,
5.900%, 10/01/30 (Alternative Minimum Tax)
1,055 Jefferson Parish Home Mortgage Authority, Louisiana, 12/09 at 103.00 Aaa 1,101,536
Single Family Mortgage Revenue Refunding Bonds,
Series 2000A-2, 7.500%, 12/01/30 (Alternative Minimum Tax)
Jefferson Parish Home Mortgage Authority, Louisiana, Single
Family Mortgage Revenue Bonds, Series 2000G-2:
1,320 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 1,358,108
2,075 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 2,253,927
11,545 Orleans Parish School Board, Louisiana, General Obligation No Opt. Call AAA 14,489,437
Refunding Bonds, Series 1987, 9.000%, 2/01/09 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB 2,559,825
Revenue Bonds, Medstar Health, Series 2004,
5.375%, 8/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.3% (2.9% OF TOTAL INVESTMENTS)
12,000 Massachusetts, General Obligation Bonds, Consolidated 10/10 at 100.00 AAA 13,746,600
Loan, Series 2000C, 5.750%, 10/01/19 (Pre-refunded
to 10/01/10)
5,225 Massachusetts Development Financing Authority, 12/09 at 102.00 N/R 5,043,588
Assisted Living Revenue Bonds, Prospect House
Apartments, Series 1999, 7.000%, 12/01/31
1,640 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 1,757,326
Revenue Bonds, UMass Memorial Health Care,
Series 2001C, 6.500%, 7/01/21
2,000 Massachusetts Industrial Finance Agency, Resource 12/08 at 102.00 BBB 1,998,680
Recovery Revenue Refunding Bonds, Ogden Haverhill
Project, Series 1998A, 5.600%, 12/01/19 (Alternative
Minimum Tax)
2,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 2,173,440
Bonds, Series 2004, 5.250%, 1/01/22 - FGIC Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.1% (2.7% OF TOTAL INVESTMENTS)
$ 4,250 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA $ 4,792,768
Unlimited Tax School Building and Site Improvement
Bonds, Series 2001A, 5.500%, 5/01/20 - FSA Insured
10,215 Detroit, Michigan, Water Supply System Revenue Refunding No Opt. Call AAA 12,749,137
Bonds, Series 1993, 6.500%, 7/01/15 - FGIC Insured
5,100 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 101.00 AAA 5,968,734
Bonds, Series 2001A, 5.750%, 7/01/28 (Pre-refunded
to 7/01/11) - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 6.2% (4.1% OF TOTAL INVESTMENTS)
6,250 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A 6,392,875
Allete Inc., Series 2004, 4.950%, 7/01/22
5,000 Dakota and Washington Counties Housing and No Opt. Call AAA 7,301,750
Redevelopment Authority, Minnesota, GNMA
Mortgage-Backed Securities Program Single Family
Residential Mortgage Revenue Bonds, Series 1988,
8.450%, 9/01/19 (Alternative Minimum Tax)
20,000 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 21,768,800
Healthcare System Revenue Bonds, Fairview Hospital
and Healthcare Services, Series 2000A, 6.375%, 11/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,285,570
Revenue Bonds, Baptist Memorial Health Care,
Series 2004B-1, 5.000%, 9/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.5% (1.0% OF TOTAL INVESTMENTS)
7,565 Kansas City Industrial Development Authority, Missouri, 1/07 at 102.00 AAA 8,046,739
FNMA Multifamily Housing Revenue Bonds, Royal Woods
Apartments Project, Series 1997, 5.600%, 1/01/30
(Alternative Minimum Tax) (Mandatory put 1/01/10)
285 Missouri Housing Development Commission, GNMA/FNMA 3/07 at 105.00 AAA 286,194
Single Family Mortgage Revenue Bonds, Homeownership
Loan Program, Series 1997A-2, 7.300%, 3/01/28
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9% (1.3% OF TOTAL INVESTMENTS)
2,875 NebHelp Inc., Nebraska, Student Loan Program, Revenue 3/05 at 101.50 AAA 2,881,009
Bonds, Series 1993B, 5.875%, 6/01/14 (Alternative
Minimum Tax) - MBIA Insured
8,030 Nebraska Investment Finance Authority, Single Family 3/05 at 101.50 AAA 8,178,635
Housing Revenue Bonds, Series 1995B, 6.450%, 3/01/35
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.0% (3.3% OF TOTAL INVESTMENTS)
11,000 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 12,437,590
Bonds, Series 2002C, 5.500%, 6/15/19 - MBIA Insured
14,530 Director of Nevada State Department of Business 1/10 at 102.00 AAA 16,049,257
and Industry, Revenue Bonds, Las Vegas Monorail Project,
First Tier, Series 2000, 5.625%, 1/01/34 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,400 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 A+ 3,746,698
Transportation System Bonds, Series 2003C, 5.500%, 6/15/22
2,000 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,860,500
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.4% (0.3% OF TOTAL INVESTMENTS)
Farmington, New Mexico, Hospital Revenue Bonds,
San Juan Regional Medical Center Inc., Series 2004A:
880 5.125%, 6/01/17 6/14 at 100.00 A3 929,509
1,295 5.125%, 6/01/19 6/14 at 100.00 A3 1,351,773
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.5% (10.9% OF TOTAL INVESTMENTS)
New York City, New York, General Obligation Bonds,
Fiscal Series 1997G:
1,235 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 1,387,103
7,250 6.000%, 10/15/26 10/07 at 101.00 A 7,940,708
5,000 New York City, New York, General Obligation Bonds, 6/13 at 100.00 A 5,519,400
Fiscal Series 2003J, 5.500%, 6/01/20
3,600 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A 4,007,988
Fiscal Series 2004B, 5.250%, 8/01/15
21
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 5,000 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 A $ 5,415,600
Series 2004C, 5.250%, 8/15/20
10,000 New York City Municipal Water Finance Authority, 6/14 at 100.00 AA+ 10,664,400
New York, Water and Sewerage System Revenue
Bonds, Fiscal Series 2004C, 5.000%, 6/15/22
4,535 New York City Municipal Water Finance Authority, 6/06 at 101.00 AAA 4,846,781
New York, Water and Sewerage System Revenue
Bonds, Fiscal Series 1996B, 5.750%, 6/15/26 -
MBIA Insured
3,300 New York City Municipal Water Finance Authority, 6/10 at 101.00 AA+*** 3,963,564
New York, Water and Sewerage System Revenue Bonds,
Fiscal Series 2000B, 6.500%, 6/15/31 (Pre-refunded
to 6/15/10)
5,000 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AA+ 5,499,600
Future Tax Secured Bonds, Fiscal Series 2000C,
5.500%, 11/01/24
5,570 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AA+ 5,928,262
Future Tax Secured Bonds, Fiscal Series 2004C,
5.000%, 2/01/22
5,000 New York State Municipal Bond Bank Agency, Special 6/13 at 100.00 A+ 5,420,100
School Purpose Revenue Bonds, Series 2003C,
5.250%, 12/01/19
3,000 New York State Power Authority, General Revenue Bonds, 12/05 at 100.00 Aa2 3,117,360
Series 2000A, 5.500%, 11/15/16
16,445 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 19,841,386
Bonds, JFK International Air Terminal LLC, Sixth
Series 1997, 7.000%, 12/01/12 (Alternative Minimum Tax) -
MBIA Insured
New York City Sales Tax Asset Receivable Corporation, New York,
Local Government Assistance Corporation Dedicated Revenue Bonds,
Series 2004A:
3,225 5.000%, 10/15/24 (WI, settling 11/04/04) - MBIA Insured 10/14 at 100.00 AAA 3,421,048
1,665 5.000%, 10/15/25 (WI, settling 11/04/04) - MBIA Insured 10/14 at 100.00 AAA 1,755,143
5,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 5,890,806
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 5.6% (3.7% OF TOTAL INVESTMENTS)
2,795 Charlotte, North Carolina, FHA-Insured Mortgage Revenue 11/07 at 100.00 AAA 2,960,492
Bonds, Double Oaks Apartments, Series 1992,
7.350%, 5/15/26
19,775 North Carolina Eastern Municipal Power Agency, Power 1/07 at 102.00 AAA 21,555,937
System Revenue Refunding Bonds, Series 1996B,
5.875%, 1/01/21 - MBIA Insured
7,420 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA 7,761,988
Revenue Bonds, Mission-St. Joseph's Health System,
Series 2001, 5.250%, 10/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.6% (1.0% OF TOTAL INVESTMENTS)
8,650 Cuyahoga County, Ohio, Hospital Revenue and Improvement 2/09 at 101.00 A- 9,026,794
Bonds, MetroHealth System, Series 1999, 6.150%, 2/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.5% (0.4% OF TOTAL INVESTMENTS)
3,300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B- 3,097,314
Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Alternative Minimum Tax) (Mandatory put 12/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.2% (2.1% OF TOTAL INVESTMENTS)
11,000 Pennsylvania, General Obligation Bonds, Second 10/09 at 101.00 AAA 12,679,590
Series 1999, 5.750%, 10/01/18 (Pre-refunded to
10/01/09) - MBIA Insured
5,000 Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100.00 AAA 5,508,100
Series 2001, 5.250%, 9/15/18 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.3% (0.3% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,640,625
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 6.4% (4.2% OF TOTAL INVESTMENTS)
4,535 Newport Housing Development Corporation, Rhode Island, No Opt. Call AAA 5,162,191
FHA-Insured Section 8 Assisted Multifamily Mortgage
Revenue Refunding Bonds, Broadway-West Broadway
Apartments, Series 1995A, 6.800%, 8/01/24
24,000 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 26,207,040
Hospital Financing Revenue Bonds, Lifespan Obligated
Group, Series 1996, 5.750%, 5/15/23 - MBIA Insured
5,610 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,329,724
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.3% (1.5% OF TOTAL INVESTMENTS)
$ 2,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- $ 2,085,020
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 4,637,496
Installment Purchase Revenue Bonds, Growth Series 2004,
5.250%, 12/01/23
6,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 6,703,255
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,828,733
Revenue Bonds, Sioux Valley Hospitals and Health System,
Series 2004A, 5.500%, 11/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5% (0.4% OF TOTAL INVESTMENTS)
3,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 3,046,620
Board, Tennessee, Hospital Revenue Bonds, Baptist
Health System of East Tennessee Inc., Series 2002,
6.500%, 4/15/31
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.4% (10.9% OF TOTAL INVESTMENTS)
3,135 Austin Housing Finance Corporation, Texas, GNMA 12/10 at 105.00 Aaa 3,538,380
Collateralized Mortgage Loan Multifamily Housing Revenue
Bonds, Santa Maria Village Project, Series 2000A,
7.375%, 6/20/35 (Alternative Minimum Tax)
13,270 Bexar County Housing Finance Corporation, Texas, 5/16 at 100.00 N/R 12,942,895
Multifamily Housing Revenue Bonds, American Opportunity
for Housing, Series 2001A, 7.500%, 5/01/33
2,975 Bexar County Housing Finance Corporation, Texas, 5/16 at 100.00 N/R 2,845,171
Multifamily Housing Revenue Bonds, American
Opportunity for Housing, Series 2001B, 8.250%, 5/01/33
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
18,075 5.500%, 2/15/22 (Pre-refunded to 2/15/10) 2/10 at 100.00 AAA 20,450,597
635 5.500%, 2/15/22 2/10 at 100.00 AAA 701,345
Harris County Hospital District, Texas, Revenue Refunding
Bonds, Series 1990:
4,555 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 4,966,089
6,800 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 7,721,944
5,000 Harris County Hospital District, Texas, Revenue Refunding 8/10 at 100.00 AAA 5,711,550
Bonds, Series 2000, 6.000%, 2/15/14 - MBIA Insured
2,256 Heart of Texas Housing Finance Corporation, GNMA 6/10 at 105.00 AAA 2,498,791
Collateralized Mortgage Loan Revenue Bonds, Robinson
Garden Project, Series 2000A, 7.375%, 6/20/35
(Alternative Minimum Tax)
Houston, Texas, Junior Lien Water and Sewerage System
Revenue Refunding Bonds, Series 1998A:
11,950 0.000%, 12/01/22 - FSA Insured No Opt. Call AAA 5,075,763
4,680 0.000%, 12/01/22 - FSA Insured No Opt. Call AAA 1,956,146
3,960 Stafford Economic Development Corporation, Texas, Sales 9/15 at 100.00 AAA 4,316,004
Tax Revenue Bonds, Series 2000, 5.500%, 9/01/30 -
FGIC Insured
6,810 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 7,945,636
Texas, GNMA Collateralized Mortgage Loan Revenue
Bonds, Eastview Nursing Home, Ebony Lake Nursing Center,
Ft. Stockton Nursing Center, Lynnhaven Nursing Center and
Mission Oaks Manor, Series 2000A-1, 7.500%, 12/20/22
Texas Turnpike Authority, First Tier Revenue Bonds, Central
Texas Turnpike System, Series 2002A:
10,000 0.000%, 8/15/21 - AMBAC Insured No Opt. Call AAA 4,493,800
12,000 0.000%, 8/15/23 - AMBAC Insured No Opt. Call AAA 4,752,000
3,965 Tyler Health Facilities Development Corporation, Texas, 11/07 at 102.00 AAA 4,249,172
Hospital Revenue Bonds, East Texas Medical Center
Regional Healthcare Center, Series 1997C,
5.600%, 11/01/27 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,950 Virginia Beach Development Authority, Virginia, 10/14 at 102.00 N/R 1,843,413
Multifamily Residential Rental Housing Revenue Bonds,
Hamptons and Hampton Court Apartments, Series 1999,
7.500%, 10/01/39 (Alternative Minimum Tax)
23
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.6% (5.7% OF TOTAL INVESTMENTS)
$ 11,345 Chelan County Public Utility District 1, Washington, No Opt. Call AAA $ 5,800,130
Columbia River-Rock Island Hydro-Electric System Revenue
Refunding Bonds, Series 1997A, 0.000%, 6/01/19 -
MBIA Insured
17,075 Port of Seattle, Washington, Limited Tax General 12/10 at 100.00 AA+ 18,521,423
Obligation Bonds, Series 2000B, 5.750%, 12/01/25
(Alternative Minimum Tax)
5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 5,523,450
5.625%, 4/01/17 (Alternative Minimum Tax) - FGIC Insured
16,750 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AAA 18,412,100
5.625%, 2/01/30 - MBIA Insured
1,000 Seattle, Washington, Municipal Light and Power Revenue 11/13 at 100.00 AAA 1,113,340
Bonds, Series 2003, 5.250%, 11/01/16 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 5,107,900
Bonds, Appalachian Power Company, Series 2003L,
5.500%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.3% (2.2% OF TOTAL INVESTMENTS)
8,000 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 7,771,040
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
4,850 Wisconsin, General Obligation Refunding Bonds, No Opt. Call AAA 5,592,144
Series 2001-1, 5.500%, 5/01/13 - MBIA Insured
Wisconsin Health and Educational Facilities Authority,
Revenue Bonds, Eagle River Memorial Hospital
Inc., Series 2000:
1,000 5.750%, 8/15/20 - RAAI Insured 8/10 at 101.00 AA 1,102,720
3,000 5.875%, 8/15/30 - RAAI Insured 8/10 at 101.00 AA 3,218,280
1,150 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 1,184,960
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.750%, 5/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
$ 846,531 Total Long-Term Investments (cost $800,149,720) - 150.8% 865,464,708
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.1% (0.0% OF TOTAL INVESTMENTS)
800 Puerto Rico Government Development Bank, Adjustable A-1 800,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.700%, 12/01/15 - MBIA Insured +
- ------------------------------------------------------------------------------------------------------------------------------------
$ 800 Total Short-Term Investments (cost $800,000) 800,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $800,949,720) - 150.9% 866,264,708
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 8,898,897
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (301,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 574,163,605
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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
registered public accounting firm): 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.
# 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.
See accompanying notes to financial statements.
24
Nuveen Select Quality Municipal Fund, Inc. (NQS)
Portfolio of
INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.0% (2.7% OF TOTAL INVESTMENTS)
$ 4,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA $ 4,487,840
Improvement Warrants, Series 1999A, 5.375%, 2/01/36
(Pre-refunded to 2/01/09) - FGIC Insured
10,000 Lauderdale County and Florence Health Authority, Alabama, 7/10 at 102.00 AAA 11,326,200
Revenue Bonds, Coffee Health Group, Series 2000A,
6.000%, 7/01/29 - FSA Insured
5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 5,419,194
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,000 Kenai Peninsula Borough, Alaska, Revenue Bonds, Central 8/13 at 100.00 Aaa 2,100,380
Kenai Peninsula Hospital Service Area, Series 2003,
5.000%, 8/01/23 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,750 Salt River Project Agricultural Improvement and Power 12/13 at 100.00 AAA 4,064,513
District, Arizona, Electric System Revenue Bonds,
Series 2003, 5.000%, 12/01/18 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,500 Little Rock, Arkansas, Hotel and Restaurant Gross Receipts No Opt. Call A3 5,617,575
Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 0.1% (0.1% OF TOTAL INVESTMENTS)
550 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 598,400
Revenue Bonds, Pacific Gas and Electric Company,
Series 1996A, 5.350%, 12/01/16 (Alternative Minimum
Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.5% (5.6% OF TOTAL INVESTMENTS)
11,000 Colorado Department of Transportation, Revenue 6/10 at 100.50 AAA 12,830,180
Anticipation Bonds, Series 2000, 6.000%, 6/15/15
(Pre-refunded to 6/15/10) - AMBAC Insured
9,250 Colorado Health Facilities Authority, Remarketed Revenue 7/06 at 102.00 AAA 9,913,595
Bonds, Kaiser Permanente, Series 1994A, 5.350%, 11/01/16
16,995 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 18,444,504
Refunding Bonds, Series 2000A, 5.625%, 11/15/23
(Alternative Minimum Tax) - AMBAC Insured
12,355 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 40.52 AAA 3,762,345
Senior Lien Revenue Bonds, Series 2001B,
0.000%, 6/15/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.7% (1.1% OF TOTAL INVESTMENTS)
9,285 Connecticut Development Authority, Health Facilities 2/05 at 102.00 N/R 9,110,721
Revenue Refunding Bonds, Alzheimer's Resource Center
of Connecticut Inc., Series 1994A, 7.250%, 8/15/21
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.2% (2.1% OF TOTAL INVESTMENTS)
District of Columbia, General Obligation Bonds, Series 1998B:
5,000 6.000%, 6/01/19 - MBIA Insured No Opt. Call AAA 6,100,050
7,265 5.250%, 6/01/26 - FSA Insured 6/08 at 101.00 AAA 7,666,028
3,250 District of Columbia Tobacco Settlement Corporation, 5/11 at 101.00 BBB 3,151,948
Tobacco Settlement Asset-Backed Bonds, Series 2001,
6.250%, 5/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.9% (1.9% OF TOTAL INVESTMENTS)
1,710 Florida State Board of Education, Full Faith and Credit 6/05 at 101.00 AA+ 1,757,213
Public Education Capital Outlay Refunding Bonds,
Series 1995E, 5.125%, 6/01/15
4,550 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 4,778,228
Series 2002A, 5.375%, 10/01/30 - MBIA Insured
25
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
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 $ 3,434,498
4,860 5.875%, 10/01/19 (Alternative Minimum Tax) - FSA Insured 10/10 at 101.00 AAA 5,428,183
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.7% (0.5% OF TOTAL INVESTMENTS)
3,750 Atlanta, Georgia, Airport General Revenue Bonds, 1/10 at 101.00 AAA 3,951,338
Series 2000B, 5.625%, 1/01/30 (Alternative Minimum
Tax) - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.5% (11.1% OF TOTAL INVESTMENTS)
5,000 Chicago, Illinois, General Obligation Refunding Bonds, 1/06 at 102.00 AAA 5,215,950
Series 1996B, 5.125%, 1/01/25 - FGIC Insured
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 7,026,857
Alive 21 Program, Series 2000A, 6.500%, 1/01/35
(Pre-refunded to 7/01/10) - FGIC Insured
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1997:
4,000 5.750%, 12/01/20 (Pre-refunded to 12/01/07) - AMBAC Insured 12/07 at 102.00 AAA 4,503,040
1,070 5.750%, 12/01/27 - AMBAC Insured 12/07 at 102.00 AAA 1,178,295
9,230 5.750%, 12/01/27 (Pre-refunded to 12/01/07) - AMBAC Insured 12/07 at 102.00 AAA 10,390,765
7,555 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 7,914,089
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
3,415 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 1,169,364
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1,
0.000%, 12/01/25 - FGIC Insured
5,000 Chicago, Illinois, Special Facility Revenue Bonds, O'Hare No Opt. Call N/R 1,800,000
International Airport, United Air Lines Inc. Project,
Series 2001A, 6.375%, 11/01/35 (Alternative Minimum
Tax) (Mandatory put 5/01/13) #
15,000 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 AAA 15,521,700
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue
Bonds, O'Hare International Airport, Series 2001C:
3,770 5.100%, 1/01/26 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 3,848,228
5,360 5.250%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,506,167
2,000 Illinois Health Facilities Authority, Revenue Bonds, Midwest 2/11 at 102.00 Aaa 2,141,760
Care Center I 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 Baa2 10,267,200
4,000 5.500%, 5/15/32 5/12 at 100.00 Baa2 3,906,200
4,500 Kane, McHenry, Cook and DeKalb Counties Community Unit 12/11 at 100.00 AAA 5,075,595
School District 300, Carpentersville, Illinois, General
Obligation Bonds, Series 2000, 5.500%, 12/01/18 -
MBIA Insured
2,920 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 2,997,643
Revenue Bonds, McCormick Place Expansion Project,
Series 2002A, 5.000%, 12/15/28 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,645 Indiana Housing Finance Authority, Single Family Mortgage 1/10 at 100.00 Aaa 1,727,464
Revenue Bonds, Series 2000D-3, 5.950%, 7/01/26
(Alternative Minimum Tax)
7,660 St. Joseph County Hospital Authority, Indiana, Revenue 2/11 at 100.00 AAA 8,140,205
Bonds, Memorial Health System, Series 2000,
5.625%, 8/15/33 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.7% (1.2% OF TOTAL INVESTMENTS)
5,000 Burlington, Kansas, Environmental Improvement Revenue No Opt. Call A3 5,241,950
Bonds, Kansas City Power and Light Company Project,
Series 1998A, 4.750%, 9/01/15 (Mandatory put 10/01/07)
3,790 Kansas Department of Transportation, Highway Revenue 3/14 at 100.00 AA+ 4,014,520
Bonds, Series 2004A, 5.000%, 3/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.4% OF TOTAL INVESTMENTS)
2,875 Lakeland Wesley Village Inc., Kentucky, FHA-Insured 11/04 at 100.00 N/R 2,907,861
Section 8 Assisted Multifamily Housing Mortgage
Revenue Refunding Bonds, Lakeland Wesley Village I
Elderly Project, Series 1991, 7.500%, 11/01/21
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.6% (1.1% OF TOTAL INVESTMENTS)
$ 7,500 Maryland Health and Higher Educational Facilities 7/09 at 101.00 AA*** $ 8,686,650
Authority, Revenue Bonds, Johns Hopkins University,
Series 1999, 6.000%, 7/01/39 (Pre-refunded to 7/01/09)
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,545 Boston Housing Development Corporation, Massachusetts, 1/05 at 101.00 AAA 3,580,344
FHA-Insured Section 8 Mortgage Loan Project Bonds,
Series 1994A, 5.500%, 7/01/24 - MBIA Insured
1,430 Massachusetts Educational Finance Authority, Student 12/09 at 101.00 AAA 1,481,237
Loan Revenue Refunding Bonds, Series 2000G,
5.700%, 12/01/11 (Alternative Minimum Tax) -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 8.7% (5.8% OF TOTAL INVESTMENTS)
10,000 Detroit, Michigan, Sewerage Disposal System Revenue 1/10 at 101.00 AAA 11,500,100
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to
1/01/10) - FGIC Insured
3,625 Fowlerville Community Schools, Ingham, Livingston and 5/07 at 100.00 AAA 3,937,258
Shiawassee 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 2/05 at 101.00 Ba3 3,089,799
Refunding Bonds, Detroit Medical Center Obligated
Group, Series 1993A, 6.500%, 8/15/18
6,525 Michigan State Hospital Finance Authority, Revenue Bonds, 11/09 at 101.00 AAA 7,497,878
Ascension 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 9/11 at 100.00 A- 6,223,080
Pollution Control Revenue Refunding 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 12/12 at 100.00 AAA 7,853,250
Refunding Bonds, Detroit Edison Company, Series 2002C,
5.450%, 12/15/32 (Alternative Minimum Tax) - XLCA Insured
5,900 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 6,117,592
Revenue Bonds, William Beaumont Hospital,
Series 2001M, 5.250%, 11/15/35 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.2% (1.5% OF TOTAL INVESTMENTS)
220 Chisago and Stearns Counties and Southcentral 3/05 at 102.85 AAA 226,354
Minnesota Multi-County Housing and Redevelopment
Authority, FNMA Mortgage-Backed Securities Program
Single Family Mortgage Revenue Bonds, Series
1994B, 7.050%, 9/01/27 (Alternative Minimum Tax)
7,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 7,383,880
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/32 - FGIC Insured
4,095 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 4,118,669
Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 2,495,518
Revenue Bonds, Baptist Memorial Health Care,
Series 2004B-1, 5.000%, 9/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Missouri-Illinois Metropolitan District Bi-State 10/13 at 100.00 AAA 1,546,545
Development Agency, Mass Transit Sales Tax Appropriation
Bonds, Metrolink Cross County Extension Project,
Series 2002B, 5.000%, 10/01/32 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.2% (0.8% OF TOTAL INVESTMENTS)
6,155 Nebraska Investment Finance Authority, Single Family 3/05 at 101.50 AAA 6,236,923
Housing Revenue Bonds, Series 1995A, 6.800%, 3/01/35
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 8.4% (5.6% OF TOTAL INVESTMENTS)
4,885 Clark County, Nevada, Limited Tax General Obligation 7/10 at 100.00 AA 5,453,956
Bank Bonds, Series 2000, 5.500%, 7/01/18
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue 7/10 at 101.00 AAA 8,782,050
Bonds, Series 1999A, 6.000%, 7/01/29 (Pre-refunded
to 7/01/10) - MBIA Insured
10,000 Clark County School District, Nevada, Limited Tax General 6/06 at 101.00 AAA 10,752,800
Obligation School Improvement Bonds, Series 1996,
6.000%, 6/15/15 (Pre-refunded to 6/15/06) - FGIC Insured
1,950 Director of Nevada State Department of Business and 1/10 at 102.00 AAA 2,153,502
Industry, Revenue Bonds, Las Vegas Monorail Project,
First Tier, Series 2000, 5.625%, 1/01/32 - AMBAC Insured
27
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 10,000 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100.00 AAA $ 10,429,800
Bonds, Series 2001A, 5.250%, 7/01/34 - FSA Insured
6,000 Washoe County, Nevada, Reno-Sparks Convention and 1/10 at 100.00 AAA 7,021,140
Visitors Authority, Limited Tax General Obligation Bonds,
Series 1999A, 6.375%, 7/01/23 (Pre-refunded
to 1/01/10) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.3% (4.2% OF TOTAL INVESTMENTS)
2,400 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 2,695,272
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
3,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 3,168,390
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 (Alternative Minimum Tax) -
AMBAC Insured
17,670 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100.00 AAA 18,678,250
Home Buyer Program Revenue Bonds, Series 2000CC,
5.850%, 10/01/25 (Alternative Minimum Tax) -
MBIA Insured
9,360 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 8,707,140
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 4.4% (2.9% OF TOTAL INVESTMENTS)
8,500 Farmington, New Mexico, Pollution Control Revenue 4/06 at 101.00 BBB 8,595,285
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 Aa3 8,424,560
6,200 5.500%, 8/01/30 8/11 at 101.00 Aa3 6,447,256
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.9% (10.0% OF TOTAL INVESTMENTS)
7,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 7,209,790
Service Contract Refunding Bonds, Series 2002A,
5.125%, 1/01/29
New York City, New York, General Obligation Bonds,
Fiscal Series 1997G:
2,555 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 2,869,674
6,735 6.000%, 10/15/26 10/07 at 101.00 A 7,376,643
5,000 New York City Municipal Water Finance Authority, 6/09 at 101.00 AAA 5,155,650
New York, Water and Sewerage System Revenue
Bonds, Fiscal Series 1999B, 5.000%, 6/15/29 -
FSA Insured
6,000 New York City Municipal Water Finance Authority, 6/09 at 101.00 AAA 6,537,120
New York, Water and Sewerage System Revenue
Bonds, Fiscal Series 2000A, 5.500%, 6/15/32 - FGIC Insured
2,255 New York City Transit Authority, New York, Metropolitan 1/10 at 101.00 AAA 2,601,526
Transportation Authority, Triborough Bridge and Tunnel
Authority, Certificates of Participation, Series 2000A,
5.750%, 1/01/20 (Pre-refunded to 1/01/10) - AMBAC Insured
9,750 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AA+*** 11,441,917
Future Tax Secured 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 5/10 at 101.00 A 11,027,500
Lease Revenue Bonds, Series 1999, 6.000%, 5/15/39
5,650 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 5,944,817
Revenue Bonds, Mental Health Services Facilities,
Series 1999D, 5.250%, 8/15/24 - FSA Insured
5,400 New York State Mortgage Agency, Homeowner Mortgage 3/09 at 101.00 Aa1 5,536,512
Revenue Bonds, Series 79, 5.300%, 4/01/29 (Alternative
Minimum Tax)
7,545 New York State Urban Development Corporation, Senior 7/06 at 102.00 AAA 8,039,198
Lien Corporate Purpose Bonds, Series 1996,
5.500%, 7/01/26
5,000 New York State Urban Development Corporation, Service No Opt. Call AA- 5,587,300
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.5% (2.3% OF TOTAL INVESTMENTS)
18,555 North Carolina Eastern Municipal Power Agency, Power 1/05 at 100.00 AAA 18,607,325
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/17 - FGIC Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 10,490 Grand Forks, North Dakota, Sales Tax Revenue Bonds, Aurora 12/07 at 100.00 AAA $ 11,310,423
Project, Series 1997A, 5.625%, 12/15/29 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.2% (1.5% OF TOTAL INVESTMENTS)
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
5,000 6.750%, 4/01/18 4/10 at 101.00 A3 5,558,450
5,000 6.750%, 4/01/22 4/10 at 101.00 A3 5,487,750
600 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 632,556
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,030 Central Oklahoma Transportation and Parking Authority, 7/06 at 100.00 AAA 1,083,766
Oklahoma City, Parking System Revenue Refunding Bonds,
Series 1996, 5.300%, 7/01/12 - FSA Insured
2,235 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 2,299,279
St. John Health System, Series 2004, 5.000%, 2/15/24
10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B- 9,257,400
Bonds, American Airlines Inc., Series 2001B,
5.650%, 12/01/35 (Alternative Minimum Tax)
(Mandatory put 12/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.0% (0.0% OF TOTAL INVESTMENTS)
95 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 107,111
Revenue Bonds, Series 1999, 5.750%, 1/01/15 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,000 Puerto Rico Public Buildings Authority, Guaranteed 7/17 at 100.00 AAA 2,159,460
Government Facilities Revenue Refunding Bonds,
Series 2002D, 0.000%, 7/01/31 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 8.1% (5.4% OF TOTAL INVESTMENTS)
10,000 Greenville County School District, South Carolina, 12/12 at 101.00 AA- 11,324,100
Installment Purchase Revenue Bonds, Series 2002,
6.000%, 12/01/21
3,750 Greenwood County, South Carolina, Hospital Revenue 10/11 at 100.00 A 3,886,163
Bonds, Self Memorial Hospital, Series 2001,
5.500%, 10/01/31
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,637,775
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 5.750%, 11/01/28
21,565 Piedmont Municipal Power Agency, South Carolina, No Opt. Call AAA 5,667,282
Electric Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 -
AMBAC Insured
1,690 South Carolina Housing Finance and Development 6/10 at 100.00 Aaa 1,722,042
Authority, 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 11,065,110
4,000 6.375%, 5/15/28 5/11 at 101.00 BBB 3,794,880
3,000 6.375%, 5/15/30 No Opt. Call BBB 2,800,080
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.4% (1.6% OF TOTAL INVESTMENTS)
2,500 South Dakota Education Loans Inc., Revenue Bonds, 6/08 at 102.00 A2 2,634,425
Subordinate Series 1998-1K, 5.600%, 6/01/20
(Alternative Minimum Tax)
6,175 Sioux Falls, South Dakota, Industrial Revenue Refunding 10/14 at 100.00 AAA 8,050,780
Bonds, Great Plains Hotel Corporation Project,
Series 1989, 8.500%, 11/01/16 (Alternative Minimum
Tax) (Pre-refunded to 10/15/14)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,828,733
Revenue Bonds, Sioux Valley Hospitals and Health
System, Series 2004A, 5.500%, 11/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 6.5% (4.4% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 5,077,700
Board, Tennessee, Hospital Revenue Bonds, Baptist
Health System of East Tennessee Inc., Series 2002,
6.500%, 4/15/31
20,060 Knox County Health, Educational and Housing Facilities 1/13 at 80.49 AAA 11,196,690
Board, Tennessee, Hospital Revenue Refunding Bonds,
Covenant Health, Series 2002A, 0.000%, 1/01/17 -
FSA Insured
29
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
$ 12,500 Metropolitan Government Nashville-Davidson County 11/09 at 101.00 AAA $ 14,436,875
Health and Educational Facilities Board, 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, Series 2000-1:
1,785 5.750%, 7/01/10 (Alternative Minimum Tax) No Opt. Call AA 1,836,337
2,145 6.000%, 7/01/13 (Alternative Minimum Tax) - MBIA Insured 7/10 at 101.00 AAA 2,181,529
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.4% (9.6% OF TOTAL INVESTMENTS)
7,925 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call BBB 8,598,784
Refunding 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 4/13 at 101.00 BBB 6,074,564
Refunding Bonds, TXU Electric Company Project,
Series 1999C, 7.700%, 3/01/32 (Alternative Minimum Tax)
4,500 Brazos River Authority, Texas, Revenue Bonds, Reliant 12/08 at 102.00 BBB- 4,931,595
Energy Inc., Series 1999B, 7.750%, 12/01/18
5,500 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 5,613,245
Revenue Bonds, Series 2001A, 5.000%, 12/01/31 -
AMBAC Insured
1,550 Gulf Coast Waste Disposal Authority, Texas, Waste 4/11 at 101.00 BBB 1,653,602
Disposal Revenue Bonds, Valero Energy Corporation,
Series 2001, 6.650%, 4/01/32 (Alternative Minimum Tax)
4,590 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,877,059
Bonds, Series 2000A, 5.625%, 7/01/30 (Alternative
Minimum Tax) - FSA Insured
5,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 5,162,400
Obligation Bonds, Series 2003, 5.000%, 2/15/26 -
AMBAC Insured
3,500 Houston, Texas, Junior Lien Water and Sewerage 12/12 at 100.00 AAA 3,934,630
System Revenue Refunding Bonds, Series 2002A,
5.000%, 12/01/30 (Pre-refunded to 12/01/12) -
FSA Insured
5,000 Katy Independent School District, Harris, Fort Bend 2/12 at 100.00 AAA 5,137,400
and Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.000%, 2/15/27
9,000 Matagorda County Navigation District 1, Texas, No Opt. Call AAA 9,505,530
Collateralized Revenue Refunding Bonds, Houston
Light and Power Company, Series 1997, 5.125%, 11/01/28
(Alternative Minimum Tax) - AMBAC Insured
1,355 Panhandle Regional Housing Finance Corporation, Texas, 11/04 at 100.00 AAA 1,361,924
GNMA 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 10/12 at 100.00 Baa2 5,066,224
Supply System Revenue Refunding Bonds, Series 2002A,
6.000%, 10/01/21
5,500 Spring Independent School District, Harris County, Texas, 8/11 at 100.00 AAA 5,644,485
Unlimited Tax Schoolhouse Bonds, Series 2001,
5.000%, 8/15/26
4,520 Texas, General Obligation Bonds, Water Financial 8/09 at 100.00 Aa1 4,902,528
Assistance, State Participation Program, Series 1999C,
5.500%, 8/01/35
3,795 Winter Garden Housing Finance Corporation, Texas, 4/05 at 102.00 AAA 3,846,384
GNMA/FNMA Mortgage-Backed Securities Program,
Single Family Mortgage Revenue Bonds, Series 1994,
6.950%, 10/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.8% (2.5% OF TOTAL INVESTMENTS)
3,565 Utah Associated Municipal Power Systems, Revenue 4/13 at 100.00 AAA 3,725,532
Bonds, Payson Power Project, Series 2003A,
5.000%, 4/01/24 - FSA Insured
16,050 Utah County, Utah, Hospital Revenue Bonds, IHC Health 8/07 at 101.00 AAA 16,470,189
Services Inc., Series 1997, 5.250%, 8/15/26 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.1% (1.4% OF TOTAL INVESTMENTS)
Vermont Educational and Health Buildings Financing Agency,
Revenue Bonds, Fletcher Allen Health Care Inc., Series 2000A:
3,720 6.125%, 12/01/15 - AMBAC Insured 12/10 at 101.00 AAA 4,305,900
4,265 6.250%, 12/01/16 - AMBAC Insured 12/10 at 101.00 AAA 4,969,962
1,925 Vermont Housing Finance Agency, Single Family Housing 11/09 at 100.00 AAA 2,013,665
Bonds, Series 2000-13A, 5.950%, 11/01/25 (Alternative
Minimum Tax) - FSA Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.8% (2.5% OF TOTAL INVESTMENTS)
$ 8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA $ 9,345,470
Consolidated System Revenue Bonds, Series 2001A,
5.600%, 1/01/36 (Alternative Minimum Tax) - MBIA Insured
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,870,050
Bonds, Columbia Generating Station, Series 2002C,
5.750%, 7/01/17 - MBIA Insured
7,225 Port of Seattle, Washington, Special Facility Revenue 3/10 at 101.00 AAA 8,070,105
Bonds, Terminal 18, Series 1999B, 6.000%, 9/01/20
(Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.0% (0.6% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 5,107,900
Bonds, Appalachian Power Company, Series 2003L,
5.500%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.1% (2.1% OF TOTAL INVESTMENTS)
9,395 Badger Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 9,126,111
Wisconsin, Tobacco Settlement Asset-Backed Bonds,
Series 2002, 6.125%, 6/01/27
5,000 Madison, Wisconsin, Industrial Development Revenue 4/12 at 100.00 AA- 5,372,100
Refunding Bonds, Madison Gas and Electric Company
Projects, Series 2002A, 5.875%, 10/01/34 (Alternative
Minimum Tax)
2,100 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 2,104,263
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2003A, 5.125%, 8/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
$ 784,110 Total Long-Term Investments (cost $738,410,218) - 149.3% 793,485,533
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5% (0.4% OF TOTAL INVESTMENTS)
2,895 Clark County School District, Nevada, General Obligation A-1+ 2,895,000
Bonds, Variable Rate Demand Obligations, Series 2001B,
1.6300%, 6/15/21 - FSA Insured +
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,895 Total Short-Term Investments (cost $2,895,000) 2,895,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $741,305,218) - 149.8% 796,380,533
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 14,313,838
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.5)% (279,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 531,694,371
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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
registered public accounting firm): 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.
+ 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.
# 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.
See accompanying notes to financial statements.
31
Nuveen Quality Income Municipal Fund, Inc. (NQU)
Portfolio of
INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.3% (2.2% OF TOTAL INVESTMENTS)
$ 3,500 Bessemer Governmental Utility Services Corporation, 6/08 at 102.00 AAA $ 3,733,975
Alabama, Water 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 8,585,187
6,340 5.500%, 2/01/31 (Pre-refunded to 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 7,250,424
6,970 5.500%, 2/01/31 (Pre-refunded to 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 8,005,184
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.8% (0.5% OF TOTAL INVESTMENTS)
6,360 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 6,565,174
Bonds, Series 1995A, 5.875%, 12/01/30 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,350 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,529,118
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/28 - MBIA Insured
1,000 Mesa, Arizona, Utility System Revenue Refunding Bonds, No Opt. Call AAA 1,150,690
Series 2002, 5.250%, 7/01/17 - FGIC Insured
8,010 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 AA 8,425,879
District, Arizona, Electric System Revenue Refunding
Bonds, Series 2002A, 5.125%, 1/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,400 Arkansas Development Finance Authority, FNMA/GNMA 7/05 at 102.00 AAA 2,464,296
Mortgage-Backed Securities Program Single Family
Mortgage Bonds, Series 1995B, 6.700%, 7/01/27
(Alternative Minimum Tax)
4,000 University of Arkansas, Fayetteville, Revenue Bonds, 11/14 at 100.00 Aaa 4,094,400
UAMS Campus, Series 2004B, 5.000%, 11/01/34
(WI, settling 11/18/04) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.8% (3.9% OF TOTAL INVESTMENTS)
6,000 California Health Facilities Financing Authority, Revenue 3/13 at 100.00 A 6,017,880
Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
5,000 California, General Obligation Veterans Welfare Bonds, 12/04 at 101.00 A 5,031,150
Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
10,000 California, Various Purpose General Obligation Bonds, 4/09 at 101.00 AAA 10,049,500
Series 1999, 4.750%, 4/01/29 - MBIA Insured
14,600 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A 15,351,754
5.250%, 2/01/28
1,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 1,135,590
Revenue Bonds, Series 2002A, 5.750%, 5/01/17
8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,722,020
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
2,500 Los Angeles Community Redevelopment Agency, California, 1/05 at 100.00 BBB*** 2,559,000
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.8% (3.2% OF TOTAL INVESTMENTS)
10,000 Denver City and County Colorado, Airport System Revenue 11/10 at 100.00 AAA 10,852,900
Refunding Bonds, Series 2000A, 5.625%, 11/15/23
(Alternative Minimum Tax) - AMBAC Insured
12,000 E-470 Public Highway Authority, Colorado, Senior 9/07 at 101.00 AAA 12,172,800
Revenue Bonds, Series 1997A, 4.750%, 9/01/23 -
MBIA Insured
14,400 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 65.63 AAA 7,485,408
Bonds, Series 2000B, 0.000%, 9/01/17 - MBIA Insured
8,740 Larimer County School District R1, Poudre, Colorado, 12/10 at 100.00 AAA 9,800,337
General Obligation Bonds, Series 2000, 5.125%, 12/15/19
(Pre-refunded to 12/15/10) - FGIC Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 4,395 Bridgeport, Connecticut, General Obligation Bonds, 8/11 at 100.00 AAA $ 4,974,349
Series 2001C, 5.375%, 8/15/17 (Pre-refunded to
8/15/11) - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.7% (0.4% OF TOTAL INVESTMENTS)
5,000 Washington Convention Center Authority, District of 10/08 at 101.00 AAA 5,480,150
Columbia, Senior Lien Dedicated Tax Revenue Bonds,
Series 1998, 5.250%, 10/01/17 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.0% (1.3% OF TOTAL INVESTMENTS)
2,250 Dade County, Florida, Water and Sewerage System Revenue 10/07 at 102.00 AAA 2,483,460
Bonds, Series 1997, 5.375%, 10/01/16 - FGIC Insured
5,300 Escambia County Health Facilities Authority, Florida, Revenue No Opt. Call AA 5,930,064
Bonds, Ascension Health Credit Group, Series 2003A,
5.250%, 11/15/14
2,500 Florida State Board of Education, Full Faith and Credit 6/06 at 101.00 AA+ 2,624,600
Public Education Capital Outlay Bonds, Series 1996A,
5.250%, 6/01/22
5,000 Orange County Health Facilities Authority, Florida, 11/10 at 101.00 A 5,480,150
Hospital Revenue Bonds, Adventist Health System/Sunbelt
Obligated Group, Series 2000, 6.500%, 11/15/30
- ------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.3% (0.9% OF TOTAL INVESTMENTS)
10,000 Hawaii Department of Transportation, Airport System 7/10 at 101.00 AAA 11,307,200
Revenue Refunding Bonds, Series 2000B, 5.750%, 7/01/21 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.8% (9.3% OF TOTAL INVESTMENTS)
6,450 Chicago, Illinois, General Obligation Refunding Bonds, 7/12 at 100.00 AAA 6,918,399
Series 2002A, 5.000%, 1/01/18 - AMBAC Insured
32,670 Chicago, Illinois, General Obligation Bonds, City Colleges No Opt. Call AAA 7,802,903
of Chicago Capital Improvement Project, Series 1999,
0.000%, 1/01/32 - FGIC Insured
5,000 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 5,714,900
Alive 21 Program, Series 2000A, 6.000%, 1/01/28 -
FGIC Insured
5,045 Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 5,627,042
Series 2000D, 5.750%, 1/01/30 - FGIC Insured
Chicago Board of Education, 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 1,127,910
3,690 5.000%, 12/01/19 - FSA Insured 12/11 at 100.00 AAA 3,970,625
3,000 5.000%, 12/01/20 - FSA Insured 12/11 at 100.00 AAA 3,202,560
2,000 5.000%, 12/01/21 - FSA Insured 12/11 at 100.00 AAA 2,112,840
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
9,400 0.000%, 12/01/14 - FGIC Insured No Opt. Call AAA 6,204,752
4,400 0.000%, 12/01/15 - FGIC Insured No Opt. Call AAA 2,751,100
12,750 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998A, 1/09 at 101.00 AAA 12,934,875
5.125%, 1/01/35 (Alternative Minimum Tax) - MBIA Insured
Chicago, Illinois, Second Lien Wastewater Transmission Revenue
Bonds, Series 2000:
8,000 5.750%, 1/01/25 (Pre-refunded to 1/01/10) - MBIA Insured 1/10 at 101.00 AAA 9,200,080
7,750 6.000%, 1/01/30 (Pre-refunded to 1/01/10) - MBIA Insured 1/10 at 101.00 AAA 9,005,268
5,000 Illinois Finance Authority, Revenue Bonds, Northwestern Memorial 8/14 at 100.00 AA+ 5,200,400
Hospital, Series 2004A, 5.500%, 8/15/43
10,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa Health 2/10 at 101.00 AAA 11,103,500
System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured
2,470 Illinois Housing Development Authority, Section 8 Elderly Housing 3/05 at 100.00 A 2,485,166
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 3,319,110
1,800 6.000%, 5/01/22 5/12 at 101.00 Baa2 1,886,004
33
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 12/10 at 100.00 AAA $ 5,579,700
Series 2000, 5.450%, 12/01/21 - MBIA Insured
3,270 Joliet Regional Port District, Illinois, Airport Facilities 7/07 at 103.00 N/R 2,943,850
Revenue Bonds, Lewis University Airport, Series 1997A,
7.250%, 7/01/18 (Alternative Minimum Tax)
4,500 Kane, McHenry, Cook and DeKalb Counties Community 12/11 at 100.00 AAA 5,075,595
Unit School District 300, Carpentersville, Illinois,
General Obligation Bonds, Series 2000,
5.500%, 12/01/18 - MBIA Insured
2,270 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 2,330,359
Revenue Bonds, McCormick Place Expansion Project,
Series 2002A, 5.000%, 12/15/28 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.0% (1.3% OF TOTAL INVESTMENTS)
3,240 Indiana Health Facility Financing Authority, Hospital 7/12 at 100.00 AAA 3,580,200
Revenue Bonds, Marion General Hospital, Series 2002,
5.625%, 7/01/19 - AMBAC Insured
2,000 Indiana Health Facility Financing Authority, Hospital 3/14 at 100.00 AAA 2,123,960
Revenue Bonds, Deaconess Hospital Inc., Series 2004A,
5.375%, 3/01/34 - AMBAC Insured
5,125 Petersburg, Indiana, Pollution Control Revenue Refunding 12/04 at 102.00 A 5,239,749
Bonds, Indianapolis Power and Light Company,
Series 1995A, 6.625%, 12/01/24 - ACA Insured
5,730 St. Joseph County Hospital Authority, Indiana, Revenue 2/08 at 101.00 AAA 5,614,598
Bonds, Memorial Health System, Series 1998A,
4.625%, 8/15/28 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.0% (0.7% OF TOTAL INVESTMENTS)
8,585 Iowa Finance Authority, Hospital Facilities Revenue 7/08 at 102.00 AAA 8,802,887
Bonds, Iowa Health System, Series 1998A,
5.125%, 1/01/28 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,585 Johnson County Unified School District 232, Kansas, 9/10 at 100.00 Aaa 4,867,436
General Obligation Bonds, Series 2000,
4.750%, 9/01/19 - FSA Insured
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, 6/14 at 100.00 AAA 1,860,373
Kansas Gas and Electric Company, Series 2004,
5.300%, 6/01/31 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,500 Kentucky State Property and Buildings Commission, Revenue 2/12 at 100.00 AAA 2,856,075
Refunding Bonds, Project 74, Series 2002,
5.375%, 2/01/18 (Pre-refunded to 2/01/12) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.0% (1.4% OF TOTAL INVESTMENTS)
10,000 Louisiana Public Facilities Authority, Hospital Revenue No Opt. Call AAA 11,603,500
Bonds, Franciscan Missionaries of Our Lady Health
System, Series 1998A, 5.750%, 7/01/25 - FSA Insured
5,500 Louisiana Public Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 5,626,225
Tulane University, Series 2002A, 5.000%, 7/01/32 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.4% (4.9% OF TOTAL INVESTMENTS)
7,405 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 8,595,724
Revenue Bonds, Massachusetts Institute of Technology,
Series 2002K, 5.500%, 7/01/32
6,000 Massachusetts Industrial Finance Agency, Resource 12/08 at 102.00 BBB 5,996,040
Recovery Revenue Refunding Bonds, Ogden Haverhill
Project, Series 1998A, 5.600%, 12/01/19 (Alternative
Minimum Tax)
8,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 8,590,185
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
13,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101.00 AAA 13,655,385
System Revenue Bonds, Subordinate Series 1999A,
5.000%, 1/01/39 - AMBAC Insured
Massachusetts Water Pollution Abatement Trust, Revenue Bonds,
MWRA Loan Program, Subordinate Series 1999A:
1,375 5.750%, 8/01/29 (Pre-refunded to 8/01/09) 8/09 at 101.00 AAA 1,579,806
5,570 5.750%, 8/01/29 8/09 at 101.00 AAA 6,200,691
10,000 Massachusetts Water Resources Authority, General 8/10 at 101.00 AAA 11,197,800
Revenue Bonds, Series 2000A, 5.750%, 8/01/39 -
FGIC Insured
5,730 University of Massachusetts Building Authority, Senior 11/10 at 100.00 AAA 6,298,187
Lien Project Revenue Bonds, Series 2000-2,
5.250%, 11/01/20 - AMBAC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 1,000 Detroit, Michigan, Senior Lien Water Supply System 7/11 at 101.00 AAA $ 1,170,340
Revenue Bonds, Series 2001A, 5.750%, 7/01/28
(Pre-refunded to 7/01/11) - FGIC Insured
7,425 Michigan State Hospital Finance Authority, Hospital 11/09 at 101.00 A1 7,921,213
Revenue Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6% (1.0% OF TOTAL INVESTMENTS)
Chaska, Minnesota, Electric Revenue Bonds, Generating
Facility Project, Series 2000A:
1,930 6.000%, 10/01/20 10/10 at 100.00 A3 2,104,607
2,685 6.000%, 10/01/25 10/10 at 100.00 A3 2,898,753
3,655 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 5,337,579
Authority, Minnesota, GNMA Mortgage-Backed Securities
Program Single Family Residential Mortgage Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/08 at 101.00 AAA 3,088,680
Minnesota, Airport Revenue Bonds, Series 1998A,
5.000%, 1/01/30 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,020 Canton Housing Development Corporation, Mississippi, No Opt. Call AAA 3,486,469
FHA-Insured Section 8 Assisted Multifamily Mortgage
Revenue Refunding Bonds, Canton Estates Apartments,
Series 1990A, 7.750%, 8/01/24
2,500 Mississippi Hospital Equipment and Facilities Authority, 1/11 at 101.00 Aaa 2,670,375
Revenue Bonds, Forrest County General Hospital Project,
Series 2000, 5.500%, 1/01/27 - FSA Insured
1,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,890,544
Revenue Bonds, Baptist Memorial Health Care,
Series 2004B-1, 5.000%, 9/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,400 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,527,872
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/23 - FSA Insured
15,350 Springfield Public Building Corporation, Missouri, Lease No Opt. Call AAA 4,034,134
Revenue Bonds, Jordan Valley Park Projects, Series 2000A,
0.000%, 6/01/30 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.4% (0.9% OF TOTAL INVESTMENTS)
6,410 Nebraska Investment Finance Authority, Single Family 3/05 at 101.50 AAA 6,495,317
Housing Revenue Bonds, Series 1995A, 6.800%, 3/01/35
(Alternative Minimum Tax)
4,820 Nebraska Investment Finance Authority, Single Family 3/05 at 101.50 AAA 4,909,218
Housing Revenue Bonds, Series 1995B, 6.450%, 3/01/35
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.2% (4.8% OF TOTAL INVESTMENTS)
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 36,750,190
12,150 5.000%, 6/15/21 - MBIA Insured 6/12 at 100.00 AAA 12,888,113
10,380 5.000%, 6/15/22 - MBIA Insured 6/12 at 100.00 AAA 10,954,844
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.1% (1.2% OF TOTAL INVESTMENTS)
2,580 Camden County Pollution Control Financing Authority, 12/04 at 100.00 B2 2,579,613
New Jersey, 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 12/12 at 100.00 AAA 1,128,420
Bonds, Series 2002A, 5.000%, 12/15/21 (Pre-refunded to
12/15/12) - FSA Insured
2,150 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 2,414,513
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
3,200 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 A+ 3,526,304
Transportation System Bonds, Series 2003C, 5.500%, 6/15/22
2,025 New Jersey Transportation Trust Fund Authority, 12/11 at 100.00 AAA 2,401,022
Transportation System Bonds, Series 2001B,
6.000%, 12/15/19 (Pre-refunded to 12/15/11) - MBIA Insured
4,125 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 4,046,217
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39
35
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 5,925 New Mexico Hospital Equipment Loan Council, Hospital 8/11 at 101.00 Aa3 $ 6,329,915
Revenue Bonds, Presbyterian Healthcare Services,
Series 2001A, 5.500%, 8/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 23.7% (15.8% OF TOTAL INVESTMENTS)
25,000 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB 24,273,500
New York, Senior Tobacco Settlement Asset-Backed
Bonds, Series 2000, 6.125%, 7/15/30
1,130 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 1,187,924
General Revenue Bonds, Series 2001A, 5.375%, 9/01/25
15,000 Metropolitan Transportation Authority, New York, Dedicated 4/10 at 100.00 AAA 17,435,700
Tax Fund Bonds, Series 2000A, 6.000%, 4/01/30
(Pre-refunded to 4/01/10) - FGIC Insured
2,010 Niagara Falls Housing and Commercial Rehabilitation No Opt. Call AA 2,300,164
Corporation, New York, FHA-Insured Section 8 Assisted
Multifamily Mortgage Revenue Refunding Bonds, Colt
Block Apartments, Series 1992, 7.350%, 8/01/23
12,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 BBB- 12,746,375
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.400%, 7/15/33
14,800 New York City, New York, General Obligation Bonds, 6/07 at 101.00 AAA 16,113,056
Fiscal Series 1997M, 5.500%, 6/01/17 - AMBAC Insured
6,700 New York City, New York, General Obligation Bonds, 2/05 at 101.00 Aaa 6,863,011
Fiscal Series 1995F, 6.625%, 2/15/25 (Pre-refunded
to 2/15/05)
New York City, New York, General Obligation Bonds,
Fiscal Series 2002G:
950 5.000%, 8/01/17 8/12 at 100.00 A 1,010,467
10,545 5.750%, 8/01/18 8/12 at 100.00 A 11,768,115
5,000 New York City, New York, General Obligation Bonds, 8/12 at 100.00 A 5,611,800
Fiscal Series 2003A, 5.750%, 8/01/16
New York City, New York, General Obligation Bonds,
Fiscal Series 1997H:
165 6.125%, 8/01/25 (Pre-refunded to 8/01/07) 8/07 at 101.00 A*** 184,772
5,835 6.125%, 8/01/25 8/07 at 101.00 A 6,388,566
4,190 New York City Municipal Water Finance Authority, 6/05 at 101.00 AAA 4,339,834
New York, Water and Sewerage System Revenue Bonds,
Fiscal Series 1996A, 5.875%, 6/15/25 (Pre-refunded
to 6/15/05) - MBIA Insured
New York City 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+*** 9,326,707
2,065 5.750%, 11/15/19 5/10 at 101.00 AA+ 2,350,693
2,250 Dormitory Authority of the State of New York, Insured No Opt. Call AAA 2,475,180
Revenue Bonds, Mount Sinai School of Medicine,
Series 1994A, 5.150%, 7/01/24 - MBIA Insured
2,500 Dormitory Authority of the State of New York, Insured 7/08 at 101.00 AAA 2,586,225
Revenue Bonds, Fordham University, Series 1998,
5.000%, 7/01/28 - MBIA Insured
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 1997A:
4,825 5.750%, 2/15/27 (Pre-refunded to 2/15/07) 2/07 at 102.00 AA-*** 5,326,028
175 5.750%, 2/15/27 2/07 at 102.00 AA- 189,401
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 2000B:
8,830 6.000%, 2/15/30 (Pre-refunded to 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 10,201,564
1,170 6.000%, 2/15/30 - MBIA Insured 2/10 at 100.00 AAA 1,314,986
1,900 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 Ba1 1,975,715
Bonds, Mount Sinai NYU Health 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, Second
Resolution Bonds, Series 2001C:
6,035 5.000%, 6/15/20 6/11 at 100.00 AAA 6,505,006
6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,932,614
8,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 8,270,800
FHA-Insured Mortgage Revenue Bonds, New York and
Presbyterian Hospital, Series 1994A, 6.500%, 8/15/29
(Pre-refunded to 2/15/05) - AMBAC Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 5,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA $ 5,174,650
Secured Hospital Revenue Bonds, Brookdale Hospital
Medical Center, Series 1995A, 6.850%, 2/15/17
(Pre-refunded to 2/15/05)
New York State Medical Care Facilities Finance Agency,
FHA-Insured Mortgage Revenue Bonds, St. Charles
Hospital, Series 1995F:
3,210 6.200%, 8/15/15 (Pre-refunded to 8/15/05) 8/05 at 102.00 AA*** 3,385,555
4,250 6.300%, 8/15/25 (Pre-refunded to 8/15/05) 8/05 at 102.00 AA*** 4,485,790
2,970 Penfield-Crown Oak Housing Development Corporation, 2/05 at 100.00 AAA 2,987,256
New York, FHA-Insured Section 8 Assisted Multifamily
Mortgage Revenue Refunding Bonds, Crown Oak
Estates, Series 1991A, 7.350%, 8/01/23
13,620 The Port Authority of New York and New Jersey, 11/12 at 101.00 AAA 14,658,934
Consolidated Bonds, One Hundred Twenty Eighth
Series 2002, 5.000%, 11/01/20 - FSA Insured
2,250 United Nations Development Corporation, New York, 1/08 at 100.00 A3 2,385,900
Senior Lien Revenue Bonds, Series 2004A, 5.250%, 7/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.5% (1.7% OF TOTAL INVESTMENTS)
7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 8,188,575
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 -
MBIA Insured
13,070 North Carolina Medical Care Commission, Hospital Revenue 12/08 at 101.00 AAA 13,099,669
Bonds, Pitt County Memorial Hospital, Series 1998A,
4.750%, 12/01/28 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.3% (1.6% OF TOTAL INVESTMENTS)
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 2,394,165
2,600 5.250%, 6/01/21 - FSA Insured 12/12 at 100.00 AAA 2,827,292
2,000 5.000%, 12/01/22 - FSA Insured 12/12 at 100.00 AAA 2,120,660
910 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/05 at 102.00 Aaa 910,655
Securities Program Residential Mortgage Revenue Bonds,
Series 1995A-2, 6.625%, 3/01/26 (Alternative Minimum Tax)
11,550 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 11,382,872
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 6.5% (4.3% OF TOTAL INVESTMENTS)
17,510 Pottawatomie County Home Finance Authority, Oklahoma, No Opt. Call AAA 22,588,776
Single Family Mortgage Revenue Bonds, Series 1991A,
8.625%, 7/01/10
11,750 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B- 11,028,315
Bonds, American Airlines Inc., Series 2000B,
6.000%, 6/01/35 (Alternative Minimum Tax)
(Mandatory put 12/01/08)
23,005 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B- 21,296,649
Bonds, American Airlines Inc., Series 2001B,
5.650%, 12/01/35 (Alternative Minimum Tax)
(Mandatory put 12/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,000 Deschutes County School District 1, Bend-La Pine, Oregon, 6/11 at 100.00 Aaa 3,365,250
General Obligation Bonds, Series 2001A,
5.500%, 6/15/18 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.8% (3.2% OF TOTAL INVESTMENTS)
6,090 Carbon County Industrial Development Authority, No Opt. Call BBB- 6,608,929
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
2,650 Falls Township Hospital Authority, Pennsylvania, 2/05 at 100.00 AAA 2,747,520
FHA-Insured Revenue Refunding Bonds, Delaware
Valley Medical Center Project, Series 1992, 7.000%, 8/01/22
7,000 Pennsylvania, General Obligation Bonds, Second 9/11 at 101.00 AA 7,662,550
Series 2001, 5.000%, 9/15/15
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue 12/14 at 100.00 AAA 2,838,628
Bonds, Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
7,800 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 8,010,366
General 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 6,688,680
5,500 5.625%, 8/01/20 - FGIC Insured 8/12 at 100.00 AAA 6,107,970
37
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.5% (1.0% OF TOTAL INVESTMENTS)
$ 4,190 Puerto Rico, The Children's Trust Fund, Tobacco 5/12 at 100.00 BBB $ 3,836,825
Settlement Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
1,500 Puerto Rico, Public Improvement General Obligation No Opt. Call A- 1,663,515
Bonds, Series 2001A, 5.500%, 7/01/29
1,500 Puerto Rico Public Buildings Authority, Guaranteed 7/12 at 100.00 A- 1,590,120
Government Facilities Revenue Refunding Bonds,
Series 2002D, 5.125%, 7/01/20
5,000 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 5,213,350
5.000%, 8/01/27 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.4% (4.9% OF TOTAL INVESTMENTS)
24,725 Greenville County School District, South Carolina, 12/12 at 101.00 AA- 26,540,062
Installment 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+ 6,229,002
5,140 5.000%, 3/01/21 3/12 at 100.00 AA+ 5,455,442
13,615 South Carolina Transportation Infrastructure Bank, 10/11 at 100.00 Aaa 14,716,454
Junior Lien Revenue Bonds, Series 2001B,
5.125%, 10/01/21 - AMBAC Insured
10,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 9,487,200
South Carolina, Tobacco Settlement Asset-Backed
Bonds, Series 2001B, 6.375%, 5/15/28
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.2% (1.5% OF TOTAL INVESTMENTS)
3,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 3,037,800
Board, Tennessee, Hospital Revenue Bonds, Baptist
Health System of East Tennessee Inc. Series 2002,
6.375%, 4/15/22
7,415 Memphis, Tennessee, General Improvement Bonds, 11/10 at 101.00 AA 7,876,065
Series 2002, 5.000%, 11/01/20
7,605 Tennessee Housing Development Agency, Homeownership 7/10 at 100.00 AA 7,963,043
Program Bonds, Series 2000-2B, 6.350%, 1/01/31
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 18.0% (12.0% OF TOTAL INVESTMENTS)
Arlington Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 1995:
3,410 0.000%, 2/15/11 (Pre-refunded to 2/15/05) 2/05 at 71.95 Aaa 2,440,776
4,105 0.000%, 2/15/14 (Pre-refunded to 2/15/05) 2/05 at 58.79 Aaa 2,400,645
6,500 Bell County Health Facilities Development Corporation, 11/08 at 101.00 A- 6,660,290
Texas, Retirement Facility Revenue Bonds, Buckner
Retirement Services Inc. Obligated Group, Series 1998,
5.250%, 11/15/19
11,255 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call BBB 12,211,900
Refunding Bonds, TXU Electric Company Project,
Series 2001C, 5.750%, 5/01/36 (Alternative Minimum
Tax) (Mandatory put 11/01/11)
5,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 5,496,000
Refunding and Improvement Bonds, Series 2001A,
5.625%, 11/01/21 (Alternative Minimum Tax) - FGIC Insured
360 Ft. Worth Housing Finance Corporation, Texas, Home 4/05 at 100.00 Aa2 361,184
Mortgage Revenue Refunding Bonds, Series 1991A,
8.500%, 10/01/11
8,235 Grand Prairie Housing Finance Corporation, Texas, GNMA 9/10 at 105.00 AAA 9,053,394
Multifamily Housing Revenue Bonds, Landings of
Carrier Project, Series 2000A, 6.875%, 9/20/42
2,700 Harris County-Houston Sports Authority, Texas, Senior 11/11 at 100.00 AAA 2,807,811
Lien Revenue Bonds, Series 2001G, 5.250%, 11/15/30 -
MBIA Insured
2,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,549,150
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
22,500 Houston, Texas, Junior Lien Water and Sewerage System 12/10 at 100.00 AAA 25,365,600
Revenue Refunding Bonds, Series 2000B,
5.250%, 12/01/30 (Pre-refunded to 12/01/10) - 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- 5,148,479
8,495 5.250%, 7/01/16 7/08 at 101.00 AA- 8,899,107
17,655 Matagorda County Navigation District 1, Texas, Revenue 11/08 at 102.00 AAA 18,269,924
Refunding Bonds, Houston Industries Inc., Series 1998B,
5.150%, 11/01/29 - MBIA Insured
7,650 Nueces County, Port of Corpus Christi Authority, Texas, 5/06 at 101.00 BBB 7,809,350
Revenue Refunding Bonds, Union Pacific Corporation
Project, Series 1992, 5.350%, 11/01/10
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 2,095 Port of Houston Authority, Harris County, Texas, 10/10 at 100.00 AA+ $ 2,369,005
General Obligation Port Improvement Revenue Bonds,
Series 2000A, 5.750%, 10/01/20
2,000 Sam Rayburn Municipal Power Agency, Texas, Power 10/12 at 100.00 AA 2,208,420
Supply System Revenue Refunding Bonds, Series 2002A,
5.750%, 10/01/21 - RAAI Insured
11,300 San Antonio, Texas, Electric and Gas System Revenue No Opt. Call AAA 12,547,746
Refunding Bonds, New Series 1992, 5.000%, 2/01/17
14,680 San Antonio Independent School District, Bexar County, 8/09 at 100.00 AAA 16,744,889
Texas, General Obligation Bonds, Series 1999,
5.800%, 8/15/29 (Pre-refunded to 8/15/09)
3,750 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 3,925,613
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/23
5,000 Wichita Falls, Wichita County, Texas, Priority Lien Water 8/11 at 100.00 AAA 5,237,350
and Sewerage System Revenue Bonds, Series 2001,
5.000%, 8/01/22 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.6% (1.0% OF TOTAL INVESTMENTS)
5,800 Carbon County, Utah, Solid Waste Disposal Revenue 2/05 at 102.00 BB- 5,916,232
Refunding 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 Systems, Revenue Bonds, 4/13 at 100.00 AAA 7,441,415
Payson Power Project, Series 2003A, 5.000%, 4/01/25 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.1% (1.4% OF TOTAL INVESTMENTS)
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Refunding 7/11 at 100.00 AAA 4,076,400
Bonds, Series 2001B, 5.125%, 7/01/31 (Alternative
Minimum Tax) - FGIC Insured
11,040 Suffolk Redevelopment and Housing Authority, Virginia, No Opt. Call Aaa 12,063,739
FNMA 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 5/09 at 101.00 AA+ 698,715
Bonds, Series 1999F, 5.000%, 5/01/15 (Alternative
Minimum Tax)
Virginia Resources Authority, Water System Revenue
Refunding Bonds, Series 2002:
500 5.000%, 4/01/18 4/12 at 102.00 AA 545,865
500 5.000%, 4/01/19 4/12 at 102.00 AA 543,490
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.9% (7.2% OF TOTAL INVESTMENTS)
4,185 Douglas County Public Utility District 1, Washington, 9/06 at 106.00 AA 4,921,769
Revenue Bonds, Wells Hydroelectric, Series 1986,
8.750%, 9/01/18
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,870,050
Bonds, Columbia Generating Station, Series 2002C,
5.750%, 7/01/17 - MBIA Insured
6,750 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 7,486,223
Bonds, Columbia Generating Station, Series 2002B,
5.350%, 7/01/18 - FSA Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AAA 7,545,893
5.625%, 2/01/24 (Alternative Minimum Tax) - MBIA Insured
13,400 Seattle, Washington, Municipal Light and Power Revenue 12/10 at 100.00 Aa3 14,082,864
Bonds, Series 2000, 5.400%, 12/01/25
9,440 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 10,724,973
Bonds, Series 2001A, 5.750%, 1/01/18 - FSA Insured
3,545 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 3,538,619
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
18,145 Washington, General Obligation Bonds, Series 2001-02A, 7/11 at 100.00 AAA 18,900,558
5.000%, 7/01/23 - FSA Insured
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 7,376,530
7,750 5.000%, 1/01/22 - FSA Insured 1/12 at 100.00 AAA 8,127,658
5,500 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 6,104,285
Bonds, Swedish Health Services, Series 1998,
5.500%, 11/15/14 - AMBAC Insured
39
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 7,545 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/08 at 102.00 AAA $ 8,432,064
Bonds, Dairyland Power Cooperative, Series 1997A,
5.450%, 9/01/14 - AMBAC Insured
535 Wisconsin Housing and Economic Development Authority, 1/05 at 100.00 AA 536,041
Housing Revenue Bonds, Series 1992A, 6.850%, 11/01/12
3,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 3,067,200
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.750%, 5/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,237,935 Total Long-Term Investments (cost $1,172,126,209) - 150.5% 1,267,342,553
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,500 Illinois Health Facilities Authority, Revenue Bonds, A-1+ 1,500,000
Resurrection Healthcare System, Variable Rate Demand
Obligations, Series 1999A, 1.750%, 5/15/29 - FSA Insured +
2,000 Nebraska Educational Finance Authority, Gross Revenue VMIG-1 2,000,000
Refunding Bonds, Creighton University Project, Variable
Rate Demand Obligations, Series 2001, 1.740%, 8/01/31 +
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,500 Total Short-Term Investments (cost $3,500,000) 3,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,175,626,209) - 150.9% 1,270,842,553
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 23,250,695
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.7)% (452,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 842,093,248
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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
registered public accounting firm): 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.
40
Nuveen Premier Municipal Income Fund, Inc. (NPF)
Portfolio of
INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 2,000 University of South Alabama, Student Tuition Revenue 3/14 at 100.00 Aaa $ 2,117,300
Bonds, Series 2004, 5.000%, 3/15/23 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.7% (0.4% OF TOTAL INVESTMENTS)
2,000 Alaska Housing Finance Corporation, General Mortgage 6/09 at 101.00 AAA 2,099,540
Revenue Bonds, Series 1999A, 6.000%, 6/01/49 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.4% (3.6% OF TOTAL INVESTMENTS)
2,000 Arizona Water Infrastructure Finance Authority, Water Quality 10/14 at 100.00 AAA 2,159,860
Revenue Bonds, Series 2004A, 5.000%, 10/01/21
6,000 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 AA 6,689,220
District, Arizona, Electric System Revenue Refunding
Bonds, Series 2002A, 5.250%, 1/01/15
7,500 Salt River Project Agricultural Improvement and Power 1/13 at 100.00 AA 7,855,500
District, Arizona, Electric System Revenue Bonds,
Series 2002B, 5.000%, 1/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
380 Arkansas Development Finance Authority, 7/05 at 102.00 AAA 382,398
FNMA/GNMA Mortgage-Backed Securities Program
Single Family Mortgage Bonds, Series 1994C,
6.600%, 7/01/17
540 Arkansas Development Finance Authority, FNMA/GNMA 7/05 at 102.00 AAA 546,448
Mortgage-Backed Securities Program Single Family
Mortgage Bonds, Series 1995B, 6.550%, 7/01/18
(Alternative Minimum Tax)
62 Drew County Public Facilities Board, Arkansas, 2/05 at 102.00 Aaa 63,391
FNMA Mortgage-Backed Single Family Revenue Refunding
Bonds, Series 1993A-2, 7.900%, 8/01/11
64 Stuttgart Public Facilities Board, Arkansas, Single Family 9/06 at 100.00 Aaa 65,262
Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 9/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.8% (10.5% OF TOTAL INVESTMENTS)
2,000 California Health Facilities Financing Authority, Revenue No Opt. Call BBB+ 2,096,220
Bonds, Catholic Healthcare West, Series 2004I,
4.950%, 7/01/26 (Mandatory put 7/01/14)
4,000 California, General Obligation Bonds, Series 2004, 2/14 at 100.00 A 4,185,240
5.000%, 2/01/23
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 6,111,401
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 -
AMBAC Insured
1,000 California, Economic Recovery Revenue Bonds, No Opt. Call AA- 1,142,050
Series 2004A, 5.250%, 7/01/14
1,000 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 1,072,440
Bonds, San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
Foothill/Eastern Transportation Corridor Agency, California,
Toll Road Revenue Bonds, Series 1995A:
28,000 0.000%, 1/01/17 No Opt. Call AAA 16,892,400
10,000 0.000%, 1/01/22 - FSA Insured No Opt. Call AAA 4,529,900
2,640 North Orange County Community College District, California, 8/14 at 100.00 AAA 2,929,027
General Obligation Bonds, Series 2003B, 5.000%, 8/01/16 -
FGIC Insured
10,000 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 10,814,800
Bonds, Merged Area Redevelopment Project,
Series 2002, 5.000%, 8/01/17 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,150 Colorado Health Facilities Authority, Revenue Bonds, 9/14 at 100.00 Baa1 1,148,149
Parkview Medical Center, Series 2004, 5.000%, 9/01/25
1,000 Colorado Health Facilities Authority, Revenue Bonds, 12/09 at 101.00 Aaa 1,118,850
Poudre Valley Health Care Inc., Series 1999A,
5.750%, 12/01/23 - FSA Insured
41
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 2,000 Connecticut Development Authority, Pollution Control 10/08 at 102.00 A3 $ 2,111,820
Revenue Refunding Bonds, Connecticut Light and Power
Company, Series 1993A, 5.850%, 9/01/28
1,300 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA 1,363,804
Finance Program Bonds, Series 1996C-2, 6.250%, 11/15/18
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.4% (2.9% OF TOTAL INVESTMENTS)
4,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 4,265,000
5.750%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured
2,500 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 2,602,325
Florida, Pollution Control Revenue Bonds, Tampa Electric
Company Project, Series 2002, 5.100%, 10/01/13
1,700 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 1,860,616
Florida, Exempt Facilities Revenue Bonds, National Gypsum
Company Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
4,790 Jacksonville, Florida, Sales Tax Revenue Bonds, River City 4/06 at 101.00 AAA 5,034,434
Renaissance Project, Series 1996, 5.125%, 10/01/18 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.2% (2.8% OF TOTAL INVESTMENTS)
8,000 George L. Smith II World Congress Center Authority, 7/10 at 101.00 AAA 8,726,560
Atlanta, Georgia, 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 11/13 at 100.00 AAA 4,511,600
Revenue Bonds, Series 2003A, 5.125%, 11/01/17 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,250 Hawaii Department of Budget and Finance, Special Purpose 1/09 at 101.00 AAA 2,509,515
Revenue Bonds, Hawaiian Electric Company Inc.,
Series 1999D, 6.150%, 1/01/20 (Alternative Minimum
Tax) - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
270 Idaho Housing and Finance Association, Single Family 7/06 at 102.00 Aa1 270,259
Mortgage Bonds, Series 1996E, 6.350%, 7/01/14
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 20.3% (13.5% OF TOTAL INVESTMENTS)
8,670 Chicago, Illinois, General Obligation Bonds, City Colleges No Opt. Call AAA 3,341,158
of Chicago Capital Improvement Project, Series 1999,
0.000%, 1/01/24 - FGIC Insured
905 Chicago Public Building Commission, Illinois, General No Opt. Call AAA 1,070,733
Obligation Lease Certificates, Chicago Board of Education,
Series 1990B, 7.000%, 1/01/15 - MBIA Insured
Chicago, Illinois, Wastewater Transmission Revenue Bonds,
Series 1995:
9,995 5.125%, 1/01/25 (Pre-refunded to 1/01/06) - FGIC Insured 1/06 at 102.00 AAA 10,571,212
3,005 5.125%, 1/01/25 - FGIC Insured 1/06 at 102.00 AAA 3,134,786
8,500 Chicago, Illinois, Senior Lien Water Revenue Bonds, No Opt. Call AAA 10,082,360
Series 2001, 5.750%, 11/01/30 - AMBAC Insured
6,090 Cicero, Illinois, General Obligation Tax Increment Bonds, 12/04 at 102.00 N/R*** 6,190,850
Series 1995A, 8.125%, 12/01/12 (Pre-refunded to 12/01/04)
4,165 Illinois Housing Development Authority, Section 8 Elderly 3/05 at 100.00 A 4,190,573
Housing Revenue Bonds, Garden House of Maywood
Development, Series 1992, 7.000%, 9/01/18
1,500 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 1,693,755
Series 2002, 5.500%, 2/01/17 - FGIC Insured
9,300 Lake, Cook, Kane and McHenry Counties Community Unit No Opt. Call AAA 10,677,981
School District 220, Barrington, Illinois, School Refunding
Bonds, Series 2002, 5.250%, 12/01/18 - FSA Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project, Series 1996A:
10,575 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 4,178,394
10,775 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 3,987,720
2,000 Onterie Center Housing Finance Corporation, Illinois, 1/05 at 101.00 AAA 2,031,780
FHA-Insured Section 8 Assisted Mortgage Revenue
Refunding Bonds, Onterie Center Project, Series 1992A,
7.050%, 7/01/27 - MBIA Insured
2,588 Wood River Township, Madison County, Illinois, General 2/05 at 101.00 N/R 2,354,633
Obligation Bonds, Series 1993, 6.625%, 2/01/14
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.0% (5.3% OF TOTAL INVESTMENTS)
Anderson School Building Corporation, Madison County,
Indiana, First Mortgage Bonds, Series 2003:
$ 1,000 5.500%, 7/15/19 - FSA Insured 1/14 at 100.00 AAA $ 1,124,810
2,275 5.500%, 7/15/23 - FGIC Insured 1/14 at 100.00 AAA 2,512,555
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 3,472,515
7,980 0.000%, 1/15/22 - MBIA Insured No Opt. Call AAA 3,486,143
6,180 0.000%, 1/15/23 - MBIA Insured No Opt. Call AAA 2,536,643
2,535 Hammond Multi-School Building Corporation, Lake County, 7/13 at 100.00 AAA 2,657,947
Indiana, First Mortgage Revenue Bonds, Series 2003A,
5.000%, 7/15/23 - FGIC Insured
2,350 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 2,682,290
Bonds, Series 2003A, 5.250%, 6/01/18 (Pre-refunded
to 6/01/13) - FSA Insured
9,255 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA 3,330,412
Series 1999E, 0.000%, 2/01/25 - AMBAC Insured
2,860 St. Joseph County PHM Elementary/Middle School Building No Opt. Call A 3,191,131
Corporation, Indiana, First Mortgage Bonds, Series 1994,
6.300%, 1/15/09
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,310 Louisiana Housing Finance Agency, GNMA Collateralized 9/05 at 103.00 AAA 1,372,985
Mortgage Revenue Bonds, St. Dominic Assisted Care
Facility, Series 1995, 6.850%, 9/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 4.8% (3.2% OF TOTAL INVESTMENTS)
7,965 Maine Educational Loan Marketing Corporation, No Opt. Call A2 8,344,692
Student Loan Revenue Bonds, Subordinate Series 1994B-2,
6.250%, 11/01/06 (Alternative Minimum Tax)
6,395 Maine State Housing Authority, Mortgage Purchase Bonds, 5/13 at 100.00 AA+ 6,746,789
Series 2004A-2, 5.000%, 11/15/21 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.7% (0.4% OF TOTAL INVESTMENTS)
2,000 Maryland Health and Higher Educational Facilities 8/14 at 100.00 BBB 2,047,860
Authority, Revenue Bonds, Medstar Health, Series 2004,
5.375%, 8/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.1% (1.4% OF TOTAL INVESTMENTS)
5 Massachusetts Municipal Wholesale Electric Company, 1/05 at 100.00 Aaa 5,060
Power Supply System Revenue Bonds, Nuclear Project 6,
Series 1987A, 8.750%, 7/01/18 (Pre-refunded to 1/01/05)
1,900 Massachusetts, General Obligation Bonds, Series 2003D, 10/13 at 100.00 Aa2 2,139,685
5.250%, 10/01/20 (Pre-refunded to 10/01/13)
1,000 Massachusetts Development Finance Authority, Revenue 10/14 at 100.00 BBB 1,046,780
Bonds, Hampshire College, Series 2004, 5.625%, 10/01/24
3,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 3,234,000
Bonds, Series 2004, 5.250%, 1/01/24 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.1% (1.4% OF TOTAL INVESTMENTS)
2,925 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 AAA 3,193,983
5.250%, 4/01/17 - XLCA Insured
3,025 Wayne County, Michigan, Airport Revenue Refunding 12/12 at 100.00 AAA 3,359,111
Bonds, Detroit Metropolitan Airport, Series 2002C,
5.375%, 12/01/19 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 8.3% (5.5% OF TOTAL INVESTMENTS)
6,900 Champlin, Minnesota, GNMA Guaranteed Senior Housing 6/12 at 105.00 Aaa 6,990,873
Revenue Bonds, Champlin Shores Senior Living Center,
Series 2002A, 3.000%, 12/20/43
3,100 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A 3,170,866
Allete Inc., Series 2004, 4.950%, 7/01/22
1,000 Duluth Economic Development Authority, Minnesota, 2/14 at 100.00 A- 1,035,240
Healthcare Facilities Revenue Bonds, Benedictine
Health System - St. Mary's Duluth Clinic, Series 2004,
5.250%, 2/15/21
2,290 Minneapolis-St. Paul Housing and Redevelopment Authority, 12/13 at 100.00 BBB+ 2,442,926
Minnesota, Revenue Bonds, HealthPartners Inc.,
Series 2003, 6.000%, 12/01/20
1,000 Minnesota Municipal Power Agency, Electric Revenue 10/14 at 100.00 A3 1,086,990
Bonds, Series 2004A, 5.250%, 10/01/19
43
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
Minnesota Higher Education Facilities Authority, Revenue
Bonds, University of St. Thomas, Series 2004-5Y:
$ 530 5.250%, 10/01/19 10/14 at 100.00 A2 $ 576,105
1,500 5.250%, 10/01/34 10/14 at 100.00 A2 1,557,885
10,780 Northwest Minnesota Multi-County Housing and 4/05 at 102.00 N/R 5,713,400
Redevelopment 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+ 3,294,090
Office Building at Cedar Street, Series 2003, 5.250%, 12/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,285,570
Revenue Bonds, Baptist Memorial Health Care,
Series 2004B-1, 5.000%, 9/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 Missouri, General Obligation Refunding Bonds, Fourth State 10/12 at 100.00 AAA 5,464,200
Building, Series 2002A, 5.000%, 10/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.3% (1.5% OF TOTAL INVESTMENTS)
1,580 Douglas County Hospital Authority 2, Nebraska, Health No Opt. Call A2 1,694,787
Facilities Revenue Bonds, Nebraska Medical Center,
Series 2003, 5.000%, 11/15/16
2,580 Grand Island, Nebraska, Electric System Revenue Bonds, 3/05 at 100.00 A+*** 2,868,315
Series 1977, 6.100%, 9/01/12
2,350 Nebraska Higher Education Loan Program Incorporated, No Opt. Call AAA 2,510,035
Senior Subordinate Bonds, Series 1993A-5B,
6.250%, 6/01/18 (Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.0% (2.6% OF TOTAL INVESTMENTS)
10,900 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 12,324,521
Bonds, Series 2002C, 5.500%, 6/15/19 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.9% (1.2% OF TOTAL INVESTMENTS)
490 New Hampshire Municipal Bond Bank, Revenue Bonds, No Opt. Call N/R 494,062
Coe-Brown Northwood Academy Project, Series 1994,
7.250%, 5/01/09
5,000 New Hampshire Housing Finance Authority, FHLMC 7/10 at 101.00 Aaa 5,308,400
Multifamily Housing Revenue Remarketed Bonds,
Countryside LP Project, Series 1994, 6.100%, 7/01/24
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.1% (0.7% OF TOTAL INVESTMENTS)
3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 A+ 3,278,520
System Bonds, Series 2003C, 5.500%, 6/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.2% (10.1% OF TOTAL INVESTMENTS)
5,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 5,378,250
Transportation Revenue Refunding Bonds, Series 2002A,
5.125%, 11/15/21 - FGIC Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 1996J:
3,855 5.875%, 2/15/19 (Pre-refunded to 2/15/06) 2/06 at 101.50 A*** 4,114,596
145 5.875%, 5/15/19 2/06 at 101.50 A 153,185
1,200 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A 1,335,996
Fiscal Series 2004B, 5.250%, 8/01/15
4,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A 4,332,480
Fiscal Series 2004C, 5.250%, 8/15/20
4,265 New York City, New York, General Obligation Bonds, 10/13 at 100.00 A 4,548,878
Fiscal Series 2003D, 5.250%, 10/15/22
New York City 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+*** 1,914,658
935 5.125%, 8/15/21 (Pre-refunded to 8/15/07) 8/07 at 101.00 AA+*** 1,022,974
1,795 5.125%, 8/15/21 8/07 at 101.00 AA+ 1,860,715
1,500 Dormitory Authority of the State of New York, State and 7/14 at 100.00 AA- 1,633,380
Local Appropriation Lease Bonds, Upstate Community
Colleges, Series 2004B, 5.250%, 7/01/19
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 10,000 Dormitory Authority of the State of New York, Revenue 5/10 at 101.00 AAA $ 11,479,900
Bonds, State University Educational Facilities Revenue
Bonds, 1999 Resolution, Series 2000B, 5.500%, 5/15/30
(Pre-refunded to 5/15/10) - FSA Insured
1,115 New York State Medical Care Facilities Finance Agency, 2/05 at 100.00 AAA 1,149,576
FHA-Insured Mortgage Revenue Bonds, Hospital and Nursing
Home Projects, Series 1992B, 6.200%, 8/15/22
3,775 New York State Medical Care Facilities Finance Agency, 2/05 at 101.00 AAA 3,890,892
FHA-Insured Mortgage Revenue Bonds, St. Luke's-Roosevelt
Hospital Center, Series 1993A, 5.600%, 8/15/13
3,250 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 3,469,635
Purpose Revenue Bonds, Series 2003C, 5.250%, 6/01/22
1,000 New York State Urban Development Corporation, 7/14 at 100.00 A 1,063,440
Subordinate Lien Corporate Purpose Bonds, Series 2004A,
5.125%, 1/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.0% (2.7% OF TOTAL INVESTMENTS)
10,300 North Carolina Eastern Municipal Power Agency, Power No Opt. Call AAA 12,487,617
System Revenue Refunding Bonds, Series 1993B,
6.000%, 1/01/22 - CAPMAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.6% (1.7% OF TOTAL INVESTMENTS)
2,110 Cleveland-Rock Glen Housing Assistance Corporation, Ohio, 1/05 at 103.00 AAA 2,175,959
FHA-Insured Section 8 Mortgage Revenue Refunding Bonds,
Series 1994A, 6.750%, 1/15/25
2,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa3 2,086,560
Obligation Bonds, Series 2001, 5.000%, 12/01/24
4,000 Ohio, Solid Waste Revenue Bonds, Republic Services Inc., No Opt. Call BBB+ 3,937,360
Series 2004, 4.250%, 4/01/33 (Alternative Minimum Tax)
(Mandatory put 4/01/14)
- ------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.3% (0.9% OF TOTAL INVESTMENTS)
Oregon, General Obligation Bonds, State Board of Higher
Education, Series 2004A:
1,795 5.000%, 8/01/21 8/14 at 100.00 AA- 1,927,453
1,990 5.000%, 8/01/23 8/14 at 100.00 AA- 2,108,863
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,775 Falls Township Hospital Authority, Pennsylvania, FHA-Insured 2/05 at 100.00 AAA 1,840,320
Revenue Refunding Bonds, Delaware Valley Medical
Center Project, Series 1992, 7.000%, 8/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.3% (1.5% OF TOTAL INVESTMENTS)
7,655 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 7,272,556
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.5% (4.9% OF TOTAL INVESTMENTS)
2,500 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,606,275
Purchase Revenue Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 4,637,496
Installment Purchase Revenue Bonds, Series 2004,
5.250%, 12/01/23
3,340 Greenville County School District, South Carolina, 12/13 at 100.00 AA- 3,594,742
Installment Purchase Revenue Bonds, Series 2003,
5.250%, 12/01/19
3,620 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AAA 3,912,351
Refunding Bonds, Series 2003A, 5.250%, 5/01/21 -
AMBAC Insured
1,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 1,546,905
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
5,500 South Carolina JOBS Economic Development Authority, 8/13 at 100.00 BBB 5,883,515
Hospital Refunding and Improvement Revenue Bonds,
Palmetto Health Alliance, Series 2003C, 6.375%, 8/01/34
1,145 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 1,098,834
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,828,733
Revenue Bonds, Sioux Valley Hospitals and Health System,
Series 2004A, 5.500%, 11/01/31
45
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 2,060 Johnson City Health and Educational Facilities Board, 1/09 at 101.00 AAA $ 2,235,450
Tennessee, Hospital Revenue Refunding and Improvement
Bonds, Johnson City Medical Center, Series 1998C,
5.125%, 7/01/25 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.2% (4.1% OF TOTAL INVESTMENTS)
1,075 Brazos River Authority, Texas, Pollution Control Revenue 10/13 at 101.00 BBB 1,149,487
Bonds, TXU Energy Company LLC, Series 2003C,
6.750%, 10/01/38 (Alternative Minimum Tax)
3,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 3,219,900
Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured
2,265 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 2,413,290
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.250%, 5/15/25 - AMBAC Insured
2,000 Mansfield Independent School District, Tarrant County, 2/11 at 100.00 AAA 2,111,240
Texas, General Obligation Bonds, Series 2001, 5.375%, 2/15/26
3,735 Texas General Services Commission, Certificates of 3/05 at 100.50 A 3,795,357
Participation, 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 3,885,854
2,250 5.250%, 2/15/19 - AMBAC Insured 8/13 at 100.00 AAA 2,471,535
160 Victoria Housing Finance Corporation, Texas, FNMA Single No Opt. Call Aaa 160,230
Family Mortgage Revenue Refunding Bonds, Series 1995,
8.125%, 1/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4% (0.3% OF TOTAL INVESTMENTS)
680 Utah Housing Corporation, Single Family Mortgage Bonds, 7/11 at 100.00 Aa2 708,628
Series 2001D, 5.500%, 1/01/21 (Alternative Minimum Tax)
115 Utah Housing Finance Agency, Single Family Mortgage 1/07 at 102.00 AA 115,124
Bonds, Series 1996C, 6.450%, 7/01/14 (Alternative
Minimum Tax)
450 Utah Housing Finance Agency, Single Family Mortgage 7/07 at 101.50 AA 472,010
Bonds, Series 1997F, 5.750%, 7/01/15 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.8% (6.5% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,870,050
Bonds, Columbia Generating Station, Series 2002C,
5.750%, 7/01/17 - MBIA Insured
3,000 Energy Northwest, Washington, Electric Revenue 7/13 at 100.00 Aaa 3,374,820
Refunding Bonds, Nuclear Project 1, Series 2003A,
5.500%, 7/01/16
6,160 King County Public Hospital District 2, Washington, 6/11 at 101.00 AAA 6,527,074
Limited Tax General Obligation Bonds, Evergreen
Hospital Medical Center, Series 2001A,
5.250%, 12/01/24 - AMBAC Insured
5,000 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 5,654,850
Refunding and Improvement Bonds, Series 2001,
5.500%, 3/01/12 - FSA Insured
1,000 Skagit County Public Hospital District 1, Washington, No Opt. Call Baa3 1,017,870
Revenue Bonds, Skagit Valley Hospital, Series 2003,
6.000%, 12/01/23
9,750 Washington, General Obligation Refunding Bonds, No Opt. Call Aa1 11,173,305
Series 1992A and 1992AT-6, 6.250%, 2/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.8% (1.2% OF TOTAL INVESTMENTS)
3,150 West Virginia Water Development Authority, Loan 11/13 at 101.00 AAA 3,433,626
Program II 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 2,231,640
Revenue Bonds, Series 2003A, 5.500%, 10/01/23 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.9% (3.3% OF TOTAL INVESTMENTS)
455 Wisconsin Housing and Economic Development Authority, 1/05 at 100.00 AA 455,892
Housing Revenue Bonds, Series 1992A, 6.850%, 11/01/12
5,000 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 AA 5,628,000
Revenue Bonds, Marshfield Clinic, Series 1999,
6.250%, 2/15/18 - RAAI Insured
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 5,670 Wisconsin Health and Educational Facilities Authority, 7/11 at 100.00 A- $ 5,920,897
Revenue 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+ 2,410,816
Revenue Bonds, Froedtert and Community Health Obligated
Group, Series 2001, 5.375%, 10/01/30
1,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 1,026,950
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.375%, 5/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
$ 497,044 Total Long-Term Investments (cost $441,063,749) - 150.3% 469,121,429
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,200 California Statewide Community Development Authority, A-1+ 1,200,000
Certificates of Participation, John Muir/Mt. Diablo Health
System, Variable Rate Demand Obligations, Series 1997,
1.6500%, 8/15/27 - AMBAC Insured +
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,200 Total Short-Term Investments (cost $1,200,000) 1,200,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $442,263,749) - 150.7% 470,321,429
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 6,669,817
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (165,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 311,991,246
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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
registered public accounting firm): 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.
# Non-income producing security, in the case of a bond,
generally denotes that the issuer has defaulted on the
payment of principal or interest or has filed for
bankruptcy. The security was sold subsequent to the
reporting period.
+ 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
Nuveen Municipal High Income Opportunity Fund (NMZ)
Portfolio of
INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.3% (1.6% OF TOTAL INVESTMENTS)
$ 2,000 Baldwin County Eastern Shore Healthcare Authority, 4/06 at 102.00 BBB- $ 2,075,960
Alabama, Hospital Revenue Bonds, Thomas Hospital,
Series 1996, 6.750%, 4/01/15
6,200 Baldwin County Eastern Shore Healthcare Authority, 4/08 at 102.00 BBB- 6,019,580
Alabama, Hospital Revenue Bonds, Thomas Hospital,
Series 1998, 5.750%, 4/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 4.7% (3.3% OF TOTAL INVESTMENTS)
600 Estrella Mountain Ranch Community Facilities District, 7/10 at 102.00 N/R 666,000
Goodyear, Arizona, Special Assessment Lien Bonds,
Series 2001A, 7.875%, 7/01/25 (DD, settling 11/10/04)
6,720 Maricopa County Industrial Development Authority, Arizona, 1/11 at 103.00 BBB 6,641,376
Senior Living Facility Revenue Bonds, Christian Care
Mesa II Inc., Series 2004A, 6.625%, 1/01/34 (Alternative
Minimum Tax)
Phoenix Industrial Development Authority, Arizona,
Educational Revenue Bonds, Keystone Montessori
School, Series 2004A:
350 6.375%, 11/01/13 11/11 at 103.00 N/R 353,696
790 7.250%, 11/01/23 11/11 at 103.00 N/R 799,780
1,715 7.500%, 11/01/33 11/11 at 103.00 N/R 1,735,957
550 Pima County Industrial Development Authority, Arizona, 12/14 at 100.00 BBB- 551,595
Charter School Revenue Bonds, Noah Webster Basic
Schools Inc., Series 2004, 6.125%, 12/15/34
1,645 Pima County Industrial Development Authority, Arizona, 7/14 at 100.00 N/R 1,678,607
Charter School Revenue Bonds, Heritage Elementary
School, Series 2004, 7.500%, 7/01/34
Pima County Industrial Development Authority, Arizona, Charter
School Revenue Bonds, Pointe Educational Services Charter
School, Series 2004:
500 6.250%, 7/01/14 No Opt. Call N/R 505,550
1,000 7.125%, 7/01/24 7/14 at 100.00 N/R 1,010,640
1,150 Pinal County Industrial Development Authority, Arizona, 10/12 at 100.00 A 1,189,089
Correctional Facilities Contract Revenue Bonds, Florence
West Prison LLC, Series 2002A, 5.250%, 10/01/22 -
ACA Insured
1,000 Tucson Industrial Development Authority, Arizona, 9/14 at 100.00 BBB- 1,001,020
Charter School Revenue Bonds, Arizona Agribusiness
and Equine Center Charter School, Series 2004A,
5.850%, 9/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 19.5% (13.6% OF TOTAL INVESTMENTS)
8,000 Alameda Public Finance Authority, California, Bond No Opt. Call N/R 8,035,600
Anticipation Notes, Alameda Power and Telecom,
Series 2004, 7.000%, 6/01/09
500 California Health Facilities Financing Authority, Health No Opt. Call BBB+ 524,055
Facility Revenue Bonds, Catholic Healthcare West,
Series 2004I, 4.950%, 7/01/26 (Mandatory put 7/01/14)
1,100 California Health Facilities Financing Authority, Hospital 11/04 at 101.00 BB+ 1,040,897
Revenue Bonds, Downey Community Hospital,
Series 1993, 5.750%, 5/15/15
3,360 California, General Obligation Bonds, Series 2003, 5.000%, 11/01/21 11/13 at 100.00 A 3,558,542
3,500 California, General Obligation Bonds, Series 2004, 5.100%, 2/01/34 2/09 at 100.00 A 3,553,305
California State Public Works Board, Lease Revenue Bonds,
Department of General Services, Series 2003D:
1,090 5.000%, 6/01/21 12/13 at 100.00 A- 1,148,119
1,170 5.100%, 6/01/23 12/13 at 100.00 A- 1,226,382
3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 3,090,900
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.000%, 6/01/25
1,025 California Statewide Community Development Authority, 1/14 at 100.00 N/R 1,039,914
Subordinate Lien Multifamily Housing Revenue Bonds,
Corona Park Apartments, Series 2004I-S, 7.750%, 1/01/34
(Alternative Minimum Tax)
3,800 California Statewide Community Development Authority, 10/15 at 103.00 N/R 4,177,872
Senior Lien Revenue Bonds, East Valley Tourist Authority,
Series 2003B, 9.250%, 10/01/20
48
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 2,925 California Statewide Community Development Authority, 3/14 at 102.00 N/R $ 2,982,184
Revenue Bonds, Epidaurus Project, Series 2004A,
7.750%, 3/01/34
1,000 Golden State Tobacco Securitization Corporation, 6/13 at 100.00 BBB 1,081,050
California, Tobacco Settlement Asset-Backed Revenue
Bonds, Series 2003A-2, 7.900%, 6/01/42
5,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 5,402,045
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
4,975 Golden State Tobacco Securitization Corporation, 6/13 at 100.00 A- 5,335,041
California, Enhanced Tobacco Settlement Asset-Backed
Bonds, Series 2003B, 5.625%, 6/01/33
Huntington Beach, California, Special Tax Bonds, Community
Facilities District 2003-1, Huntington Center, Series 2004:
500 5.800%, 9/01/23 9/14 at 100.00 N/R 511,050
1,000 5.850%, 9/01/33 9/14 at 100.00 N/R 1,016,740
2,500 Independent Cities Lease Finance Authority, California, 5/14 at 100.00 N/R 2,563,425
Revenue Bonds, El Granada Mobile Home Park,
Series 2004A, 6.450%, 5/15/44
1,015 Independent Cities Lease Finance Authority, California, 5/14 at 100.00 N/R 1,018,887
Subordinate Lien Revenue Bonds, El Granada Mobile
Home Park, Series 2004B, 6.500%, 5/15/44
1,200 Lake Elsinore, California, Special Tax Bonds, Community 9/13 at 102.00 N/R 1,207,032
Facilities District 2003-2 Improvement Area A,
Canyon Hills, Series 2004A, 5.950%, 9/01/34
3,400 Lee Lake Water District, Riverside County, California, 9/13 at 102.00 N/R 3,474,630
Special Tax Bonds, Community Facilities District 3,
Series 2004, 5.950%, 9/01/34
300 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 272,100
California, Sublease Revenue Bonds, Los Angeles
International Airport, American Airlines Inc. Terminal 4
Project, Series 2002B, 7.500%, 12/01/24 (Alternative
Minimum Tax)
1,250 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 1,133,750
California, Sublease Revenue Bonds, Los Angeles
International Airport, American Airlines Inc. Terminal 4
Project, Series 2002C, 7.500%, 12/01/24 (Alternative
Minimum Tax)
Moreno Valley Unified School District, Riverside County,
California, Community Facilities District Special Tax Bonds,
Series 2004:
800 5.550%, 9/01/29 (WI, settling 11/04/04) 9/05 at 102.00 N/R 800,232
1,250 5.650%, 9/01/34 (WI, settling 11/04/04) 9/05 at 102.00 N/R 1,252,225
1,555 Murrieta Valley Unified School District, Riverside County, 9/11 at 100.00 N/R 1,515,099
California, Special Tax Bonds, Community Facilities
District 2000-1, Series 2004B, 5.300%, 9/01/34
1,000 Oceanside, California, Special Tax Revenue Bonds, Morro 3/14 at 100.00 N/R 1,023,480
Hills Community Facilities District, Series 2004,
5.750%, 9/01/28
Orange County, California, Special Tax Bonds, Community
Facilities District 03-1 of Ladera Ranch, Series 2004A:
500 5.500%, 8/15/23 8/12 at 101.00 N/R 513,810
1,625 5.600%, 8/15/28 8/12 at 101.00 N/R 1,661,644
1,000 5.625%, 8/15/34 8/12 at 101.00 N/R 1,024,290
2,250 San Diego and Imperial Counties, California, Certificates 9/12 at 100.00 BBB- 2,261,903
of Participation, Developmental Services Foundation
Project, Series 2002, 5.500%, 9/01/27
3,895 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 3,965,227
Tax Bonds, Community Facilities District 2001-1,
Series 2004A, 6.125%, 9/01/39
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.6% (6.7% OF TOTAL INVESTMENTS)
925 Bradburn Metropolitan District 3, Colorado, General 12/13 at 101.00 N/R 952,926
Obligation Bonds, Series 2003, 7.500%, 12/01/33
5,600 Buffalo Ridge Metropolitan District, Colorado, Limited 12/13 at 101.00 N/R 5,769,064
Obligation Assessment Bonds, Series 2003, 7.500%, 12/01/33
925 Colorado Educational and Cultural Facilities Authority, 7/10 at 100.00 N/R 948,116
Charter School Revenue Bonds, Compass Montessori
Charter School, Series 2000, 7.750%, 7/15/31
650 Colorado Educational and Cultural Facilities Authority, 9/11 at 100.00 Baa3 656,812
Charter School Revenue Bonds, Bromley East Charter
School, Series 2000A, 7.250%, 9/15/30
49
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 400 Colorado Educational and Cultural Facilities Authority, 12/10 at 101.00 BBB $ 436,564
Charter School Revenue Bonds, Academy Charter
School, Series 2000, 6.875%, 12/15/20
1,450 Colorado Educational and Cultural Facilities Authority, 6/11 at 100.00 Ba1 1,507,029
Charter School Revenue Bonds, Weld County School
District 6 - Frontier Academy, Series 2001, 7.250%, 6/01/20
1,822 Colorado Educational and Cultural Facilities Authority, 2/12 at 100.00 N/R 1,902,769
Charter School Revenue Bonds, Jefferson County
School District R-1 - Compass Montessori Secondary
School, Series 2002, 8.000%, 2/15/32
3,500 Colorado Educational and Cultural Facilities Authority, 5/14 at 101.00 N/R 3,645,005
Charter School Revenue Bonds, Denver Arts and Technology
Academy, Series 2003, 8.000%, 5/01/34
Colorado Educational and Cultural Facilities Authority, Charter
School Revenue Bonds, Excel Academy Charter School, Series 2003:
500 7.300%, 12/01/23 12/13 at 100.00 N/R 514,140
875 7.500%, 12/01/33 12/13 at 100.00 N/R 899,535
1,500 Colorado Educational and Cultural Facilities Authority, 6/14 at 100.00 N/R 1,554,255
Charter School Revenue Bonds, Heritage Christian School,
Series 2004A, 7.500%, 6/01/34
2,000 Colorado Educational and Cultural Facilities Authority, 6/14 at 100.00 N/R 2,003,860
Revenue Bonds, Colorado Lutheran High School Association,
Series 2004A, 7.500%, 6/01/24
1,000 Colorado Housing and Finance Authority, Multifamily 10/12 at 100.00 AA 1,031,790
Project Bonds, Class II Series 2002C-6, 5.300%, 10/01/42
4,250 Denver Health and Hospitals Authority, Colorado, Revenue 12/14 at 100.00 BBB 4,543,293
Bonds, Series 2004A, 6.250%, 12/01/33
1,000 Denver City and County, Colorado, FHA-Insured Multifamily 7/08 at 102.00 AAA 1,031,220
Housing Mortgage Loan Revenue Bonds, Garden Court
Community Project, Series 1998, 5.400%, 7/01/39
800 Eagle County Air Terminal Corporation, Colorado, Airport 5/06 at 101.00 N/R 815,568
Terminal Revenue Bonds, Series 1996, 7.500%, 5/01/21
(Alternative Minimum Tax)
1,250 Mesa County, Colorado, Residential Care Facilities 12/11 at 101.00 AA 1,318,125
Mortgage Revenue Bonds, Hilltop Community Resources
Inc. Obligated Group, Series 2001A, 5.250%, 12/01/21 -
RAAI Insured
2,000 Park Creek Metropolitan District, Colorado, Limited Tax 12/32 at 100.00 N/R 2,015,880
Obligation Revenue Bonds, Series 2003CR-2,
7.875%, 12/01/13
Tallyn's Reach Metropolitan District 2, Aurora Colorado, Limited
Tax General Obligation Bonds, Series 2004:
250 6.000%, 12/01/18 12/13 at 100.00 N/R 250,938
315 6.375%, 12/01/23 12/13 at 100.00 N/R 316,162
Tallyn's Reach Metropolitan District 3, Aurora Colorado, Limited
Tax General Obligation Bonds, Series 2004:
500 6.625%, 12/01/23 12/13 at 100.00 N/R 501,820
500 6.750%, 12/01/33 12/13 at 100.00 N/R 501,810
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,025 Eastern Connecticut Resource Recovery Authority, 1/05 at 100.00 BBB 1,027,573
Solid Waste Revenue Bonds, Wheelabrator Lisbon
Project, Series 1993A, 5.500%, 1/01/20 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 11.2% (7.8% OF TOTAL INVESTMENTS)
4,535 Bartram Springs Community Development District, Duval 5/13 at 102.00 N/R 4,774,902
County, Florida, Special Assessment Bonds, Series 2003A,
6.650%, 5/01/34
700 Broward County, Florida, Airport Facility Revenue Bonds, 11/14 at 101.00 BBB- 777,595
Learjet Inc., Series 2000, 7.500%, 11/01/20 (Alternative
Minimum Tax)
3,000 Capital Trust Agency, Florida, Revenue Bonds, Seminole 10/12 at 102.00 N/R 3,701,490
Tribe Convention Center, Series 2002A, 10.000%, 10/01/33
1,195 Century Gardens Community Development District, 5/14 at 101.00 N/R 1,187,555
Miami-Dade County, Florida, Special Assessment
Revenue Bonds, Series 2004, 5.900%, 5/01/34
Islands at Doral Northeast Community Development District,
Florida, Special Assessment Bonds, Series 2004:
500 6.125%, 5/01/24 5/14 at 101.00 N/R 512,450
450 6.250%, 5/01/34 5/14 at 101.00 N/R 459,374
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 5,785 Lee County Industrial Development Authority, Florida, No Opt. Call A1 $ 6,140,546
Multifamily Housing Revenue Bonds, Legacy at Lehigh
Project, Senior Series 2003A, 6.000%, 12/01/43
645 Lexington Community Development District, Florida, Special 5/14 at 101.00 N/R 658,010
Assessment Revenue Bonds, Series 2004, 6.125%, 5/01/34
4,000 MMA Financial CDD Junior Securitization Trust, Florida, 11/07 at 100.00 N/R 4,019,440
Pass-Through Certificates, Class A Series 2003I,
8.000%, 11/01/13
3,370 Meadowwoods Community Development District, Pasco 5/14 at 101.00 N/R 3,410,474
County, Florida, Special Assessment Revenue Bonds,
Series 2004A, 6.050%, 5/01/35
1,000 Orlando Utilities Commission, Florida, Subordinate Lien No Opt. Call Aa1*** 1,261,550
Water and Electric Revenue Bonds, Series 1989D,
6.750%, 10/01/17
4,000 Palm Beach County Housing Finance Authority, Florida, 7/09 at 103.00 N/R 3,961,960
Multifamily Housing Revenue Bonds, Lake Delray
Apartments, Series 1999A, 6.400%, 1/01/31 (Alternative
Minimum Tax)
1,700 South-Dade Venture Community Development District, 5/14 at 101.00 N/R 1,728,288
Florida, Special Assessment Revenue Bonds, Series 2004,
6.125%, 5/01/34
Stonegate Community Development District, Florida, Special
Assessment Revenue Bonds, Series 2004:
500 6.000%, 5/01/24 5/14 at 101.00 N/R 508,375
500 6.125%, 5/01/34 5/14 at 101.00 N/R 508,320
Westchester Community Development District 1, Florida,
Special Assessment Bonds, Series 2003:
1,150 6.000%, 5/01/23 5/13 at 101.00 N/R 1,168,722
3,750 6.125%, 5/01/35 5/13 at 101.00 N/R 3,817,538
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
2,000 Fulton County Residential Care Facilities Authority, Georgia, 12/13 at 102.00 N/R 2,050,000
Revenue Bonds, St. Anne's Terrace, Series 2003,
7.625%, 12/01/33
900 Fulton County Residential Care Facilities Authority, Georgia, 2/09 at 100.00 N/R 896,742
Revenue Bonds, Canterbury Court, Series 2004A,
6.125%, 2/15/34
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.4% (7.2% OF TOTAL INVESTMENTS)
2,000 Chicago, Illinois, Certificates of Participation Tax Increment 12/08 at 100.00 N/R 2,102,640
Revenue Notes, Chicago/Kingsbury Redevelopment Project,
Series 2004A, 6.570%, 2/15/13
1,400 Illinois Health Facilities Authority, Revenue Bonds, Midwest 11/08 at 102.00 BB+ 1,256,178
Physicians Group Ltd., Series 1998, 5.500%, 11/15/19
795 Illinois Health Facilities Authority, Revenue Bonds, Victory 8/07 at 101.00 Baa2 739,310
Health Services, Series 1997A, 5.750%, 8/15/27
8,725 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 9,072,255
Forest Hospital, Series 2002A, 5.750%, 7/01/29
Illinois Health Facilities Authority, FHA-Insured Mortgage
Revenue Refunding Bonds, Sinai Health System, Series 2003:
5,000 5.000%, 8/15/24 8/13 at 100.00 AAA 5,137,500
10,000 5.100%, 8/15/33 8/13 at 100.00 AAA 10,151,500
5,000 5.150%, 2/15/37 8/13 at 100.00 AAA 5,075,950
305 Illinois Health Facilities Authority, Revenue Refunding 1/05 at 100.00 BB+ 305,088
Bonds, Proctor Community Hospital, Series 1991,
7.375%, 1/01/23
2,065 Plano Special Service Area 1, Illinois, Special Tax Bonds, 3/14 at 102.00 N/R 2,063,410
Lakewood Springs, Series 2004A, 6.200%, 3/01/34
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.4% (3.8% OF TOTAL INVESTMENTS)
6,360 Carmel Redevelopment District, Indiana, Tax Increment 7/12 at 103.00 N/R 6,397,524
Revenue Bonds, Series 2004A, 6.650%, 1/15/24
Indiana Health Facility Financing Authority, Hospital Revenue
Bonds, Community Foundation of Northwest Indiana, Series 2004A:
500 6.250%, 3/01/25 3/14 at 101.00 BBB- 516,905
2,500 6.000%, 3/01/34 3/14 at 101.00 BBB- 2,491,200
7,650 Vincennes, Indiana, Economic Development Revenue 1/09 at 102.00 N/R 7,322,657
Bonds, Southwest Indiana Regional Youth Village,
Series 1999, 6.250%, 1/01/24
51
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 1,935 Whitley County, Indiana, Solid Waste and Sewerage 11/10 at 102.00 N/R $ 2,041,735
Disposal Revenue Bonds, Steel Dynamics Inc.,
Series 1998, 7.250%, 11/01/18 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,875 Kenton County Airport Board, Kentucky, Special Facilities No Opt. Call CC 2,017,158
Revenue Bonds, Delta Air Lines Project, Series 1992A,
7.500%, 2/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.7% (4.7% OF TOTAL INVESTMENTS)
3,405 Carter Plantation Community Development District, 11/05 at 100.00 N/R 3,392,095
Livingston Parish, Louisiana, Special Assessment Bonds,
Series 2004, 5.500%, 5/01/16
8,500 Hodge, Louisiana, Combined Utility System Revenue Bonds, No Opt. Call B 9,984,865
Stone Container Corporation, Series 2003, 7.450%, 3/01/24
(Alternative Minimum Tax)
2,640 Lafourche Parish Housing Authority, Louisiana, GNMA 1/11 at 105.00 AAA 2,982,329
Collateralized Mortgage Loan Multifamily Mortgage
Revenue Bonds, City Place II Apartments, Series 2001,
6.700%, 1/20/40
Ouachita Parish Industrial Development Authority, Louisiana,
Solid Waste Disposal Revenue Bonds, White Oaks Project, Series 2004A:
865 8.250%, 3/01/19 (Alternative Minimum Tax) 3/10 at 102.00 N/R 889,350
805 8.500%, 3/01/24 (Alternative Minimum Tax) 3/10 at 102.00 N/R 822,976
5,125 St. James Parish, Louisiana, Solid Waste Disposal Revenue No Opt. Call N/R 5,133,456
Bonds, Freeport McMoran Project, Series 1992,
7.700%, 10/01/22 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,155 Portland Housing Development Corporation, Maine, 2/14 at 102.00 Baa2 3,143,863
Senior Living Section 8 Assisted Revenue Bonds, Avesta
Housing Development Corporation, Series 2004A, 6.000%, 2/01/34
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 3.4% (2.4% OF TOTAL INVESTMENTS)
2,000 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 2,048,380
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
3,800 Maryland Health and Higher Educational Facilities 8/14 at 100.00 BBB 3,881,928
Authority, Revenue Bonds, Medstar Health, Series
2004, 5.500%, 8/15/33
7,435 Prince George's County, Maryland, Revenue Refunding and 1/05 at 102.00 B3 5,784,653
Project Bonds, Dimensions Health Corporation, Series 1994,
5.300%, 7/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.5% (1.0% OF TOTAL INVESTMENTS)
1,350 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB 1,335,299
Revenue Bonds, Northern Berkshire Community Services
Inc., Series 2004B, 6.375%, 7/01/34
3,490 Massachusetts Housing Finance Agency, Rental Housing 7/10 at 100.00 AAA 3,760,894
Mortgage Revenue Bonds, Series 2000H, 6.650%, 7/01/41
(Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.3% (3.7% OF TOTAL INVESTMENTS)
1,335 Countryside Charter School, Berrien County, Michigan, 4/09 at 100.00 N/R 1,287,341
Charter School Revenue Bonds, Series 1999, 7.000%, 4/01/29
930 Countryside Charter School, Berrien County, Michigan, 4/09 at 100.00 N/R 953,585
Charter School Revenue Bonds, Series 2000, 8.000%, 4/01/29
1,480 Detroit Local Development Finance Authority, Michigan, 5/09 at 101.00 BB- 1,286,253
Tax Increment Bonds, Series 1998A, 5.500%, 5/01/21
3,500 Michigan State Hospital Finance Authority, Hospital Revenue 2/05 at 102.00 Ba3 2,891,875
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993B, 5.500%, 8/15/23
2,775 Nataki Talibah Schoolhouse, Wayne County, Michigan, 6/10 at 102.00 N/R 2,940,140
Certificates of Participation, Series 2000, 8.250%, 6/01/30
Pontiac Hospital Finance Authority, Michigan, Hospital Revenue
Refunding Bonds, NOMC Obligated Group, Series 1993:
1,000 6.000%, 8/01/13 2/05 at 101.00 Ba1 947,110
1,500 6.000%, 8/01/18 2/05 at 101.00 Ba1 1,327,545
1,800 6.000%, 8/01/23 2/05 at 101.00 Ba1 1,556,172
52
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 5,000 Saginaw Hospital Finance Authority, Michigan, Hospital 7/14 at 100.00 A $ 5,181,000
Revenue Bonds, Covenant Medical Center, Series 2004G,
5.125%, 7/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.8% (2.0% OF TOTAL INVESTMENTS)
Minneapolis, Minnesota, Student Housing Revenue Bonds,
Riverton Community Housing Project, Series 2000:
100 7.200%, 7/01/14 7/10 at 100.00 N/R 102,669
100 7.300%, 7/01/15 7/10 at 100.00 N/R 102,661
500 Minneapolis, Minnesota, Commercial Development Revenue 11/04 at 100.00 N/R 500,590
Bonds, Thresher Square Limited Partnership II, Series 1996,
7.250%, 5/01/15
1,325 Ramsey, Anoka County, Minnesota, Charter School Lease 6/14 at 102.00 N/R 1,346,717
Revenue Bonds, PACT Charter School, Series 2004A,
6.750%, 12/01/33
5,000 St. Louis Park, Minnesota, Revenue Bonds, Park Nicollet 7/14 at 100.00 A- 5,131,250
Health Services, Series 2003B, 5.250%, 7/01/30
1,100 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 1,118,029
Charter School Revenue Bonds, HOPE Community Academy
Charter School, Series 2004A, 6.750%, 12/01/33
1,430 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 1,460,631
Charter School Revenue Bonds, Higher Ground Academy
Charter School, Series 2004A, 6.625%, 12/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,000 Mississippi Home Corporation, Multifamily Housing Revenue 11/19 at 101.00 N/R 1,014,720
Bonds, Tupelo Personal Care Apartments, Series 2004-2,
6.125%, 9/01/34
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.4% (1.0% OF TOTAL INVESTMENTS)
2,400 Kansas City Industrial Development Authority, Missouri, 2/14 at 102.00 N/R 2,439,552
Multifamily Housing Revenue Bonds, Pickwick Apartments
Project, Series 2004, 8.000%, 2/01/34 (Alternative
Minimum Tax)
2,500 St. Louis County Industrial Development Authority, 12/04 at 100.00 N/R 2,552,500
Missouri, Revenue Bonds, Kiel Center Multipurpose Arena,
Series 1992, 7.875%, 12/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.6% (1.1% OF TOTAL INVESTMENTS)
5,200 Montana Board of Investments, Exempt Facility Revenue 7/10 at 101.00 Ba3 5,506,904
Bonds, Stillwater Mining Company Project, Series 2000,
8.000%, 7/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,500 Clark County, Nevada, Local Improvement Bonds, Mountain's 2/05 at 103.00 N/R 1,546,485
Edge Special Improvement District 142, Series 2003,
6.375%, 8/01/23
3,670 Clark County, Nevada, Industrial Development Revenue 1/05 at 100.00 B- 3,537,403
Bonds, Nevada Power Company Project, Series 1995C,
5.500%, 10/01/30
500 Clark County, Nevada, Industrial Development Revenue 11/04 at 100.00 B- 490,665
Bonds, Nevada Power Company Project, Series 1997A,
5.900%, 11/01/32 (Alternative Minimum Tax)
550 Director of Nevada State Department of Business and 1/10 at 102.00 N/R 556,831
Industry, Revenue Bonds, Las Vegas Monorail Project,
Second Tier, Series 2000, 7.375%, 1/01/40
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.5% (2.4% OF TOTAL INVESTMENTS)
1,510 New Jersey Economic Development Authority, Special 9/09 at 101.00 B 1,097,045
Facilities Revenue Bonds, Continental Airlines Inc.,
Series 1999, 6.250%, 9/15/29 (Alternative Minimum Tax)
500 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 561,515
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
7,825 6.750%, 6/01/39 6/13 at 100.00 BBB 7,675,543
2,760 7.000%, 6/01/41 6/13 at 100.00 BBB 2,760,635
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.4% (1.0% OF TOTAL INVESTMENTS)
4,500 Jicarilla Apache Nation, New Mexico, Revenue Bonds, 9/13 at 101.00 N/R 4,722,660
Series 2002A, 5.000%, 9/01/18
53
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.6% (2.5% OF TOTAL INVESTMENTS)
$ 1,700 New York City Industrial Development Agency, New York, 8/06 at 100.00 CCC $ 1,074,485
Special Facilities Revenue Bonds, American Airlines Inc.,
Series 1994, 6.900%, 8/01/24 (Alternative Minimum Tax)
750 New York City Industrial Development Agency, New York, No Opt. Call CCC 602,130
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002A, 8.000%, 8/01/12 (Alternative
Minimum Tax)
New York Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003B-1C:
5,000 5.500%, 6/01/21 6/13 at 100.00 AA- 5,473,850
5,000 5.500%, 6/01/22 6/13 at 100.00 AA- 5,440,000
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6% (1.1% OF TOTAL INVESTMENTS)
5,500 North Carolina Capital Facilities Financing Agency, Solid 7/12 at 106.00 N/R 5,503,685
Waste Facilities Revenue Bonds, Liberty Tire Services
of North Carolina LLC, Series 2004A, 6.750%, 7/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.7% (2.6% OF TOTAL INVESTMENTS)
Belmont County, Ohio, Revenue Bonds, Ohio Valley Health Services
and Education Corporation, Series 1998:
500 5.700%, 1/01/13 1/08 at 102.00 B 467,975
400 5.800%, 1/01/18 1/08 at 102.00 B 359,404
3,375 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/14 at 102.00 N/R 3,386,509
Revenue Bonds, Garfield Heights, Series 2004D,
5.250%, 5/15/23
7,800 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 7,687,134
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
800 Toledo-Lucas County Port Authority, Ohio, Port Revenue 3/14 at 101.00 A+ 808,600
Bonds, Cargill Inc., Series 2004A, 4.800%, 3/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.5% (3.1% OF TOTAL INVESTMENTS)
Oklahoma Development Finance Authority, Revenue Refunding
Bonds, Hillcrest Healthcare System, Series 1999A:
1,200 5.750%, 8/15/15 (Pre-refunded to 8/15/09) 8/09 at 101.00 AAA 1,366,788
11,680 5.625%, 8/15/29 (Pre-refunded to 8/15/09) 8/09 at 101.00 AAA 13,187,888
1,335 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, 6/05 at 102.00 B- 1,042,461
American Airlines Inc., Series 1995, 6.250%, 6/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.1% (2.8% OF TOTAL INVESTMENTS)
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
695 9.250%, 11/15/22 11/10 at 102.00 B1 801,710
6,455 9.250%, 11/15/30 11/10 at 102.00 B1 7,446,101
190 Monroeville Hospital Authority, Pennsylvania, Revenue No Opt. Call B1 179,877
Bonds, Forbes Health System, Series 1992, 7.000%, 10/01/13
300 Monroeville Hospital Authority, Pennsylvania, Revenue Bonds, 10/05 at 102.00 B1 276,357
Forbes Health System, Series 1995, 6.250%, 10/01/15
240 New Morgan Industrial Development Authority, Pennsylvania, 4/05 at 101.00 BB- 234,938
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company Inc. Project, Series 1994, 6.500%, 4/01/19
(Alternative Minimum Tax)
580 Pennsylvania Economic Development Financing Authority 6/08 at 100.00 BB+ 564,775
Revenue Bonds, Northwestern Human Services Inc. Project,
Series 1998A, 5.250%, 6/01/09
4,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 4,277,040
Revenue Bonds, Amtrak 30th Street Station Parking Garage
Project, Series 2002, 5.800%, 6/01/23 (Alternative
Minimum Tax) - ACA Insured
230 Pennsylvania Higher Educational Facilities Authority, No Opt. Call B1 225,094
Revenue Bonds, Allegheny General Hospital, Series 1991A,
7.250%, 9/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.8% (0.6% OF TOTAL INVESTMENTS)
3,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 2,711,640
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
54
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.1% (1.5% OF TOTAL INVESTMENTS)
$ 2,755 Berkeley County School District, South Carolina, 12/13 at 100.00 A- $ 2,935,149
Installment Purchase Revenue Securing Assets for
Education, Series 2003, 5.250%, 12/01/19
Piedmont Municipal Power Agency, South Carolina,
Electric Revenue Bonds, Series 1991:
975 6.750%, 1/01/19 - FGIC Insured No Opt. Call AAA 1,275,904
1,375 6.750%, 1/01/19 - FGIC Insured No Opt. Call AAA 1,766,201
1,150 South Carolina JOBS Economic Development Authority, 8/11 at 100.00 AA 1,203,774
Hospital Revenue Bonds, Georgetown Memorial Hospital,
Series 2001, 5.250%, 2/01/21 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 3,046,620
Board, Tennessee, Hospital Revenue Bonds, Baptist
Health System of East Tennessee Inc. Series 2002,
6.500%, 4/15/31
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.7% (6.0% OF TOTAL INVESTMENTS)
750 Brazoria County Municipal Utility District 19, Texas, 9/12 at 100.00 AA 751,883
General Obligation Bonds, Series 2004, 5.000%, 9/01/28 -
RAAI Insured
1,200 Dallas-Ft. Worth International Airport Facility Improvement 11/04 at 100.00 CCC 734,136
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 1992, 7.250%, 11/01/30 (Alternative Minimum Tax)
2,705 Dallas-Ft. Worth International Airport Facility Improvement 11/05 at 102.00 CCC 1,666,037
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 1995, 6.000%, 11/01/14
565 Dallas-Ft. Worth International Airport Facility Improvement 11/09 at 101.00 CCC 314,502
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax)
Decatur Hospital Authority, Texas, Revenue Bonds, Wise
Regional Health System, Series 2004A:
1,840 7.000%, 9/01/25 9/14 at 100.00 N/R 1,867,177
6,600 7.125%, 9/01/34 9/14 at 100.00 N/R 6,727,974
585 Gulf Coast Industrial Development Authority, Texas, 4/12 at 100.00 Ba3 650,222
Solid Waste Disposal Revenue Bonds, Citgo Petroleum
Corporation Project, Series 1998, 8.000%, 4/01/28
(Alternative Minimum Tax)
3,000 Harris County Health Facilities Development Corporation, 12/14 at 100.00 A 3,052,140
Texas, Hospital Revenue Bonds, Memorial Hermann
Healthcare System, Series 2004A, 5.125%, 12/01/23
2,020 Houston, Texas, Airport System Special Facilities Revenue 7/09 at 101.00 B- 1,352,976
Bonds, Continental Air Lines Inc. Project, Series 1998B,
5.700%, 7/15/29 (Alternative Minimum Tax)
975 Houston, Texas, Airport System Special Facilities Revenue 7/09 at 101.00 B- 653,045
Bonds, Continental Air Lines Inc. Project, Series 1998C,
5.700%, 7/15/29 (Alternative Minimum Tax)
Houston, Texas, Airport System Special Facilities Revenue
Bonds, Continental Air Lines Inc. Project, Series 2001E:
600 7.375%, 7/01/22 (Alternative Minimum Tax) 7/11 at 101.00 B- 515,832
5,350 6.750%, 7/01/29 (Alternative Minimum Tax) 7/11 at 101.00 B- 4,133,999
Houston Health Facilities Development Corporation, Texas,
Revenue Bonds, Buckingham Senior Living Community Inc.,
Series 2004A:
250 7.000%, 2/15/23 2/14 at 101.00 N/R 260,470
1,400 7.125%, 2/15/34 2/14 at 101.00 N/R 1,452,598
5,850 Texas Department of Housing and Community Affairs, 7/21 at 100.00 N/R 5,858,073
Multifamily Housing Revenue Bonds, Humble Parkway
Townhomes, Series 2004, 6.600%, 1/01/41 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 3.5% (2.4% OF TOTAL INVESTMENTS)
5,000 Virgin Islands Public Finance Authority, Refinery Revenue 1/14 at 100.00 BBB- 5,378,500
Bonds, Hovensa LLC, Series 2003, 6.125%, 7/01/22
(Alternative Minimum Tax)
3,300 Virgin Islands Public Finance Authority, Senior Secured 7/14 at 100.00 BBB- 3,498,792
Lien Refinery Revenue Bonds, Hovensa LLC, Series 2004,
5.875%, 7/01/22
3,000 Virgin Islands Public Finance Authority, Gross Receipts 10/14 at 100.00 AA 3,099,450
Taxes Loan Notes, Series 2003, 5.000%, 10/01/26 -
RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 3.2% (2.3% OF TOTAL INVESTMENTS)
Pocahontas Parkway Association, Virginia, Senior Lien Revenue
Bonds, Route 895 Connector Toll Road, Series 1998B:
2,000 0.000%, 8/15/12 8/08 at 82.10 BB 1,172,480
3,000 0.000%, 8/15/15 8/08 at 68.82 BB 1,462,170
9,000 0.000%, 8/15/19 8/08 at 54.38 BB 3,313,170
55
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA (continued)
Pocahontas Parkway Association, Virginia, Senior Lien Revenue
Bonds, Route 895 Connector Toll Road, Series 1998A:
$ 2,000 0.000%, 8/15/14 8/08 at 73.23 BB $ 1,022,340
4,250 5.500%, 8/15/28 8/08 at 102.00 BB 3,872,133
1,850 0.000%, 8/15/30 8/08 at 28.38 BB 340,530
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.7% (2.6% OF TOTAL INVESTMENTS)
3,000 Skagit County Public Hospital District 1, Washington, 12/13 at 100.00 Baa3 3,124,500
Revenue Bonds, Skagit Valley Hospital, Series 2003,
6.000%, 12/01/18
Vancouver Downtown Redevelopment Authority, Washington,
Revenue Bonds, Conference Center Project, Series 2003A:
1,750 6.000%, 1/01/28 - ACA Insured 1/14 at 100.00 A 1,872,028
2,500 5.250%, 1/01/34 - ACA Insured 1/14 at 100.00 A 2,517,900
3,500 6.000%, 1/01/34 - ACA Insured 1/14 at 100.00 A 3,725,540
1,295 Washington Public Power Supply System, Nuclear Project 3 No Opt. Call AAA 1,694,935
Revenue Refunding Bonds, Series 1989B, 7.125%, 7/01/16 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 5.9% (4.1% OF TOTAL INVESTMENTS)
550 Lac Courte Oreilles Band of Lake Superior Chippewa Indians, 12/14 at 101.00 N/R 552,657
Wisconsin, Revenue Bonds, Series 2003A, 7.750%, 6/01/16
300 Wisconsin Health and Educational Facilities Authority, 7/06 at 102.00 N/R 307,515
Revenue Bonds, Milwaukee Catholic Home Inc.,
Series 1996, 7.250%, 7/01/17
500 Wisconsin Health and Educational Facilities Authority, 8/05 at 100.00 A-1 502,861
Revenue Bonds, Oakwood Village Obligated Group,
Series 2000A, 7.000%, 8/15/15
5,000 Wisconsin Health and Educational Facilities Authority, 2/12 at 101.00 A 5,239,550
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2002, 5.750%, 8/15/30
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Aurora Health Care Inc., Series 1999A:
2,300 5.600%, 2/15/29 - ACA Insured 2/09 at 101.00 A 2,354,070
9,380 5.600%, 2/15/29 2/09 at 101.00 BBB+ 9,491,620
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Southwest Health Center Inc.,
Series 2004A:
875 6.125%, 4/01/24 4/14 at 100.00 N/R 865,260
1,000 6.250%, 4/01/34 4/14 at 100.00 N/R 981,210
- ------------------------------------------------------------------------------------------------------------------------------------
$ 494,917 Total Long-Term Investments (cost $475,025,852) - 141.8% 489,501,353
=============-----------------------------------------------------------------------------------------------------------------------
OTHER LONG-TERM INVESTMENTS - 1.9% (1.3% OF TOTAL INVESTMENTS)
Charter Mac Equity Issuer Trust, Preferred Shares, Series 2004A-4:
1,000 5.750%, 4/30/15 (Alternative Minimum Tax) No Opt. Call A3 1,070,650
5,000 6.000%, 12/31/45 (Alternative Minimum Tax) No Opt. Call A3 5,387,000
(Mandatory put 4/30/19)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 6,000 Total Other Long-Term Investments (cost $6,069,408) 6,457,650
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $481,095,260) - 143.7% 495,959,003
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 4,064,160
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (44.9%) (155,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 345,023,163
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
56
Statement of
ASSETS AND LIABILITIES October 31, 2004
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $800,949,720,
$741,305,218, $1,175,626,209, $442,263,749 and
$481,095,260, respectively) $866,264,708 $796,380,533 $1,270,842,553 $470,321,429 $495,959,003
Cash 78,249 1,033,783 -- 49,834 --
Receivables:
Interest 14,236,576 13,294,555 21,293,986 6,967,056 9,539,900
Investments sold 398,756 575,000 18,960,000 -- 65,000
Other assets 51,204 51,537 72,254 36,624 5,080
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 881,029,493 811,335,408 1,311,168,793 477,374,943 505,568,983
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 9,328,563 -- 2,205,905
Payable for investments purchased 5,172,429 -- 6,731,884 -- 2,732,931
Accrued expenses:
Management fees 457,521 424,117 668,220 253,171 172,177
Other 177,959 164,059 262,415 102,975 288,950
Preferred share dividends payable 57,979 52,861 84,463 27,551 145,857
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 5,865,888 641,037 17,075,545 383,697 5,545,820
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 301,000,000 279,000,000 452,000,000 165,000,000 155,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $574,163,605 $531,694,371 $ 842,093,248 $311,991,246 $345,023,163
====================================================================================================================================
Common shares outstanding 35,748,959 33,887,474 54,204,488 20,091,018 23,204,035
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common
shares, divided by Common
shares outstanding) $ 16.06 $ 15.69 $ 15.54 $ 15.53 $ 14.87
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 357,490 $ 338,875 $ 542,045 $ 200,910 $ 232,040
Paid-in surplus 498,308,980 471,842,025 755,082,994 279,091,550 328,134,502
Undistributed net investment income 6,271,417 6,843,905 8,510,236 1,726,402 227,378
Accumulated net realized gain (loss)
from investments 3,910,730 (2,405,749) (17,258,371) 2,914,704 1,565,500
Net unrealized appreciation (depreciation)
of investments 65,314,988 55,075,315 95,216,344 28,057,680 14,863,743
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $574,163,605 $531,694,371 $ 842,093,248 $311,991,246 $345,023,163
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
57
Statement of
OPERATIONS Year Ended October 31, 2004
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)*
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $45,084,365 $42,821,736 $66,306,100 $24,053,026 $24,849,825
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 5,398,345 5,017,364 7,880,764 2,987,029 3,153,658
Preferred shares - auction fees 754,560 699,411 1,133,096 413,631 144,981
Preferred shares - dividend disbursing agent fees 50,138 50,138 60,163 30,082 13,333
Shareholders' servicing agent fees and expenses 78,367 70,059 119,593 41,868 1,510
Custodian's fees and expenses 166,349 154,150 258,792 106,441 138,256
Directors'/Trustees' fees and expenses 23,868 18,925 29,871 11,198 14,736
Professional fees 97,417 127,688 134,157 186,651 27,154
Shareholders' reports - printing and
mailing expenses 82,014 75,665 129,068 45,272 62,401
Stock exchange listing fees 14,702 14,065 21,936 11,698 1,600
Investor relations expense 76,136 71,304 112,593 41,035 47,479
Other expenses 48,635 46,783 64,148 33,915 13,232
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit,
expense reimbursement and legal fee refund 6,790,531 6,345,552 9,944,181 3,908,820 3,618,340
Custodian fee credit (15,845) (41,999) (24,785) (8,388) (35,760)
Expense reimbursement -- -- -- -- (1,375,441)
Legal fee refund -- (257,678) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 6,774,686 6,045,875 9,919,396 3,900,432 2,207,139
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 38,309,679 36,775,861 56,386,704 20,152,594 22,642,686
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 4,952,784 (2,412,210) 680,647 3,300,711 1,565,331
Change in net unrealized appreciation
(depreciation) of investments 10,084,653 16,809,379 26,343,433 5,805,345 14,863,743
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 15,037,437 14,397,169 27,024,080 9,106,056 16,429,074
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,792,857) (2,441,256) (4,225,966) (1,525,702) (1,782,677)
From accumulated net realized gains
from investments -- (189,626) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,792,857) (2,630,882) (4,225,966) (1,525,702) (1,782,677)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations $50,554,259 $48,542,148 $79,184,818 $27,732,948 $37,289,083
====================================================================================================================================
* For the period November 19, 2003 (commencement of operations) through
October 31, 2004.
See accompanying notes to financial statements.
58
Statement of
CHANGES IN NET ASSETS
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
------------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/04 10/31/03 10/31/04 10/31/03
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 38,309,679 $ 39,687,300 $ 36,775,861 $ 36,520,388
Net realized gain (loss) from investments 4,952,784 (1,111,259) (2,412,210) 2,974,735
Change in net unrealized appreciation (depreciation)
of investments 10,084,653 2,071,439 16,809,379 7,303,621
Distributions to Preferred Shareholders:
From net investment income (2,792,857) (2,742,396) (2,441,256) (2,528,064)
From accumulated net realized gains from investments -- (81,498) (189,626) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations 50,554,259 37,823,586 48,542,148 44,270,680
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (36,034,950) (35,966,517) (33,809,362) (33,209,730)
From accumulated net realized gains from investments -- (816,999) (2,399,044) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (36,034,950) (36,783,516) (36,208,406) (33,209,730)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders due
to reinvestment of distributions -- -- -- --
Preferred shares offering costs -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from capital share transactions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares 14,519,309 1,040,070 12,333,742 11,060,950
Net assets applicable to Common shares at the
beginning of period 559,644,296 558,604,226 519,360,629 508,299,679
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $574,163,605 $559,644,296 $531,694,371 $519,360,629
====================================================================================================================================
Undistributed net investment income at the end of period $ 6,271,417 $ 6,957,588 $ 6,843,905 $ 6,325,123
====================================================================================================================================
See accompanying notes to financial statements.
59
Statement of
CHANGES IN NET ASSETS (continued)
HIGH INCOME
OPPORTUNITY
QUALITY INCOME (NQU) PREMIER INCOME (NPF) (NMZ)
------------------------------ ---------------------------- --------------
FOR THE
PERIOD
11/19/03
(COMMENCEMENT
OF OPERATIONS)
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
10/31/04 10/31/03 10/31/04 10/31/03 10/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 56,386,704 $ 57,694,782 $ 20,152,594 $ 21,302,745 $ 22,642,686
Net realized gain (loss) from investments 680,647 (17,548,461) 3,300,711 (462,037) 1,565,331
Change in net unrealized appreciation
(depreciation) of investments 26,343,433 36,283,394 5,805,345 359,740 14,863,743
Distributions to Preferred Shareholders:
From net investment income (4,225,966) (4,025,308) (1,525,702) (1,449,983) (1,782,677)
From accumulated net realized gains
from investments -- (138,847) -- (162,994) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 79,184,818 72,265,560 27,732,948 19,587,471 37,289,083
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (52,361,550) (52,036,285) (19,789,658) (19,773,812) (20,632,463)
From accumulated net realized gains
from investments -- (1,550,167) -- (1,723,562) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common shareholders (52,361,550) (53,586,452) (19,789,658) (21,497,374) (20,632,463)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- 330,929,250
Net proceeds from shares issued
to shareholders due
to reinvestment of distributions -- -- -- -- 707,518
Preferred shares offering costs -- -- -- -- (3,370,500)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from capital share transactions -- -- -- -- 328,266,268
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares 26,823,268 18,679,108 7,943,290 (1,909,903) 344,922,888
Net assets applicable to Common shares at the
beginning of period 815,269,980 796,590,872 304,047,956 305,957,859 100,275
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $842,093,248 $815,269,980 $311,991,246 $304,047,956 $345,023,163
====================================================================================================================================
Undistributed net investment income
at the end of period $ 8,510,236 $ 8,714,448 $ 1,726,402 $ 2,927,464 $ 227,378
====================================================================================================================================
See accompanying notes to financial statements.
60
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share 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), Nuveen Premier Municipal Income Fund, Inc. (NPF) and
Nuveen Municipal High Income Opportunity Fund (NMZ). Common shares of Investment
Quality (NQM), Select Quality (NQS), Quality Income (NQU) and Premier Income
(NPF) are traded on the New York Stock Exchange while Common shares of High
Income Opportunity (NMZ) are traded on the American Stock Exchange. The Funds
are registered under the Investment Company Act of 1940, as amended, as
closed-end, diversified management investment companies.
Prior to the commencement of operations of High Income Opportunity (NMZ), the
Fund had no operations other than those related to organizational matters, the
initial capital contribution of $100,275 by Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., and the
recording of the organization expenses ($11,500) and their reimbursement by
Nuveen Investments, LLC, also a wholly owned subsidiary of Nuveen Investments,
Inc.
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 U.S.
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, 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/Trustees of the Funds, or its designee, may establish a
fair value for the security. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At October 31, 2004,
Investment Quality (NQM), Quality Income (NQU) and High Income Opportunity (NMZ)
had when-issued or delayed delivery purchase commitments of $5,172,429,
$4,096,067, and $2,732,931, respectively. There were no such outstanding
purchase commitments in either 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.
Investment income also includes paydown gains and losses, if any.
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 Fund shareholders. Legal fee refund presented on the
Statement of Operations for Select Quality (NQS) reflects a refund of workout
expenditures paid in a prior reporting period.
61
Notes to
FINANCIAL STATEMENTS (continued)
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute all net investment income and net capital gains to
shareholders and to otherwise comply with the requirements of Subchapter M of
the Internal Revenue Code applicable to regulated investment companies.
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, 2004,
have been designated Exempt Interest Dividends. Net realized capital gains and
ordinary income distributions made by the Funds are subject to federal taxation.
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 U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate on each Series, with the
exception of High Income Opportunity's (NMZ) Series T and Series W, is
determined every seven days, pursuant to a dutch auction process overseen by the
auction agent, and is payable weekly at the end of each rate period. The initial
dividend rates for High Income Opportunity's Series T and Series W were
negotiated at the time of the Preferred share offerings and are set for periods
of two years and three years, respectively, from their inception, and payable
monthly. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- --------------------------------------------------------------------------------
Number of shares:
Series M 2,500 2,000 3,000 1,000 3,000
Series T 2,500 2,000 3,000 2,800 1,600
Series W 2,500 2,800 3,000 -- 1,600
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 6,200
================================================================================
High Income Opportunity (NMZ) issued the Preferred shares listed above on
January 23, 2004.
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, 2004.
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.
62
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for High Income
Opportunity (NMZ). High Income Opportunity's (NMZ) share of Common share
offering costs ($694,500) were recorded as a reduction of the proceeds from the
sale of Common shares.
Costs incurred by High Income Opportunity (NMZ) in connection with its offering
of Preferred shares ($3,370,500) were recorded as a reduction to paid-in
surplus.
Indemnifications
Under the Funds' organizational documents, its Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
INVESTMENT SELECT QUALITY
QUALITY (NQM) QUALITY (NQS) INCOME (NQU)
--------------------- ---------------------- ---------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/04 10/31/03 10/31/04 10/31/03 10/31/04 10/31/03
- ---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment
of distributions -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------
-- -- -- -- -- --
=========================================================================================================
Preferred shares sold -- -- -- -- -- --
=========================================================================================================
PREMIER HIGH INCOME
INCOME (NPF) OPPORTUNITY (NMZ)
------------------------ ------------------
FOR THE
PERIOD
11/19/03
(COMMENCEMENT
YEAR YEAR OF OPERATIONS)
ENDED ENDED THROUGH
10/31/04 10/31/03 10/31/04
- ---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- 23,150,000
Shares issued to shareholders
due to reinvestment of distributions -- -- 47,035
- ---------------------------------------------------------------------------------------------------------
-- -- 23,197,035
=========================================================================================================
Preferred shares sold -- -- 6,200
=========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended October 31, 2004, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)*
- ------------------------------------------------------------------------------------------------------------
Purchases $153,362,732 $42,486,787 $74,444,760 $101,556,645 $709,592,348
Sales and maturities 135,711,752 31,636,318 72,606,789 107,340,102 229,835,597
============================================================================================================
* For the period November 19, 2003 (commencement of operations) through
October 31, 2004.
63
Notes to
FINANCIAL STATEMENTS (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses on investments,
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, 2004, the cost of investments was as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- --------------------------------------------------------------------------------------------------------------
Cost of investments $800,524,228 $740,908,303 $1,175,581,800 $442,217,085 $480,795,686
==============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2004, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- -------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $74,111,822 $60,963,993 $98,474,094 $33,602,385 $18,539,439
Depreciation (8,371,342) (5,491,763) (3,213,341) (5,498,041) (3,376,122)
- -------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $65,740,480 $55,472,230 $95,260,753 $28,104,344 $15,163,317
=============================================================================================================
The tax components of undistributed net investment income and net realized gains
at October 31, 2004, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- ---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $8,906,815 $9,312,512 $12,499,450 $3,288,396 $2,136,977
Undistributed net ordinary income ** -- -- -- 26,171 1,567,342
Undistributed net long-term
capital gains 3,910,730 -- -- 2,914,704 --
=========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2004, paid on November 1, 2004.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal years ended October
31, 2004 and October 31, 2003, was designated for purposes of the dividends paid
deduction as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
2004 (NQM) (NQS) (NQU) (NPF) (NMZ)***
- ---------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $38,790,379 $36,154,509 $56,529,162 $21,345,220 $20,204,122
Distributions from net ordinary income ** -- 61,975 -- -- --
Distributions from net long-term capital gains -- 2,588,670 -- -- --
===============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** For the period November 19, 2003 (commencement of operations) through
October 31, 2004.
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
============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
64
At October 31, 2004, 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:
SELECT QUALITY
QUALITY INCOME
(NQS) (NQU)
- --------------------------------------------------------------------------------
Expiration year:
2011 $-- $16,844,071
2012 2,405,749 --
- --------------------------------------------------------------------------------
Total $2,405,749 $16,844,071
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
As approved by the Board of Directors/Trustees, effective August 1, 2004, a
complex-wide management fee structure was adopted for all funds sponsored by
Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. and its affiliates. This fee structure separates each fund's
management fee into two components - a complex-level component, based on the
aggregate amount of all funds assets managed by the Adviser and its affiliates,
and a specific fund-level component, based only on the amount of assets within
each individual fund. This pricing structure enables Nuveen fund shareholders to
benefit from growth in the assets within each individual fund as well as from
growth in the amount of complex-wide assets managed by the Adviser and its
affiliates. Under no circumstances will this pricing structure result in a fund
paying management fees at a rate higher than would otherwise have been
applicable had the complex-wide management fee structure not been implemented.
As a consequence of this new management fee structure, the funds' effective
management fees were reduced by approximately .006% as of November 30, 2004.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
INVESTMENT QUALITY (NQM)
SELECT QUALITY (NQS)
QUALITY INCOME (NQU)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS PREMIER INCOME (NPF)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS HIGH INCOME OPPORTUNITY (NMZ)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $125 million .5500%
For the next $125 million .5375
For the next $250 million .5250
For the next $500 million .5125
For the next $1 billion .5000
For net assets over $2 billion .4750
================================================================================
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
65
Notes to
FINANCIAL STATEMENTS (continued)
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
INVESTMENT QUALITY (NQM)
SELECT QUALITY (NQS)
QUALITY INCOME (NQU)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS PREMIER INCOME (NPF)
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
- --------------------------------------------------------------------------------
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
================================================================================
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS HIGH INCOME OPPORTUNITY (NMZ)
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
- --------------------------------------------------------------------------------
For the first $125 million .7500%
For the next $125 million .7375
For the next $250 million .7250
For the next $500 million .7125
For the next $1 billion .7000
For net assets over $2 billion .6750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised Funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
Funds.
For the first eight years of High Income Opportunity's (NMZ) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts, and for the time periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
- --------------------------------------------------------------------------------
2003* .32% 2009 .24%
2004 .32 2010 .16
2005 .32 2011 .08
2006 .32
2007 .32
2008 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse High Income Opportunity (NMZ) for any
portion of its fees and expenses beyond November 30, 2011.
66
6. 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, 2004, to shareholders of record
on November 15, 2004, as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- --------------------------------------------------------------------------------
Dividend per share $.0840 $.0830 $.0805 $.0800 $.0890
================================================================================
67
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
INVESTMENT QUALITY (NQM)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 $15.65 $1.07 $ .43 $(.08) $ -- $1.42 $(1.01) $ -- $(1.01)
2003 15.63 1.11 .02 (.08) -- 1.05 (1.01) (.02) (1.03)
2002 15.71 1.15 (.15) (.11) (.01) .88 (.94) (.02) (.96)
2001 14.67 1.16 1.00 (.27) -- 1.89 (.85) -- (.85)
2000 14.03 1.21 .66 (.34) -- 1.53 (.89) -- (.89)
SELECT QUALITY (NQS)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 15.33 1.09 .42 (.07) (.01) 1.43 (1.00) (.07) (1.07)
2003 15.00 1.08 .30 (.07) -- 1.31 (.98) -- (.98)
2002 15.48 1.12 (.38) (.09) (.04) .61 (.94) (.15) (1.09)
2001 14.48 1.19 .95 (.26) (.01) 1.87 (.87) -- (.87)
2000 14.05 1.22 .47 (.34) -- 1.35 (.92) -- (.92)
QUALITY INCOME (NQU)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 15.04 1.04 .51 (.08) -- 1.47 (.97) -- (.97)
2003 14.70 1.06 .34 (.07) -- 1.33 (.96) (.03) (.99)
2002 15.32 1.12 (.59) (.10) (.03) .40 (.93) (.09) (1.02)
2001 14.53 1.21 .76 (.26) -- 1.71 (.91) (.01) (.92)
2000 14.33 1.28 .21 (.34) -- 1.15 (.95) -- (.95)
PREMIER INCOME (NPF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 15.13 1.00 .47 (.08) -- 1.39 (.99) -- (.99)
2003 15.23 1.06 (.01) (.07) (.01) .97 (.98) (.09) (1.07)
2002 15.31 1.15 (.13) (.11) (.01) .90 (.96) (.02) (.98)
2001 14.42 1.23 .84 (.26) -- 1.81 (.92) -- (.92)
2000 14.24 1.26 .21 (.34) -- 1.13 (.95) -- (.95)
HIGH INCOME OPPORTUNITY (NMZ)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(a) 14.33 .98 .71 (.08) -- 1.61 (.89) -- (.89)
====================================================================================================================================
Total Returns
-----------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
==============================================================================================
INVESTMENT QUALITY (NQM)
- ----------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 $ -- $16.06 $15.3300 8.54% 9.37%
2003 -- 15.65 15.1000 7.78 6.88
2002 -- 15.63 14.9900 7.71 5.85
2001 -- 15.71 14.8400 22.33 13.16
2000 -- 14.67 12.8750 3.70 11.38
SELECT QUALITY (NQS)
- ----------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 -- 15.69 15.1900 10.19 9.64
2003 -- 15.33 14.8100 9.91 8.96
2002 -- 15.00 14.4000 5.24 4.22
2001 -- 15.48 14.7500 20.09 13.23
2000 -- 14.48 13.0625 6.85 10.02
QUALITY INCOME (NQU)
- ----------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 -- 15.54 14.5800 8.76 10.07
2003 -- 15.04 14.3300 9.31 9.37
2002 -- 14.70 14.0400 3.05 2.71
2001 -- 15.32 14.6200 18.72 12.09
2000 -- 14.53 13.1250 .73 8.37
PREMIER INCOME (NPF)
- ----------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 -- 15.53 14.4300 4.75 9.48
2003 -- 15.13 14.7400 9.13 6.57
2002 -- 15.23 14.5200 4.57 6.19
2001 -- 15.31 14.8400 15.93 12.89
2000 -- 14.42 13.6250 9.71 8.22
HIGH INCOME OPPORTUNITY (NMZ)
- ----------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(a) (.18) 14.87 15.0400 6.49 10.38
==============================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------
Before Credit/ After Credit/
Reimbursement/Refund Reimbursement/Refund***
------------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
================================================================================================================================
INVESTMENT QUALITY (NQM)
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 $574,164 1.20% 6.78% 1.20% 6.79% 16%
2003 559,644 1.22 7.05 1.22 7.05 5
2002 558,604 1.21 7.48 1.21 7.49 5
2001 561,577 1.24 7.56 1.23 7.56 17
2000 524,320 1.24 8.57 1.22 8.59 35
SELECT QUALITY (NQS)
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 531,694 1.21 6.96 1.15 7.02 4
2003 519,361 1.26 7.06 1.25 7.06 9
2002 508,300 1.24 7.46 1.23 7.47 19
2001 524,597 1.24 7.89 1.23 7.89 28
2000 490,683 1.22 8.67 1.21 8.68 30
QUALITY INCOME (NQU)
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 842,093 1.20 6.83 1.20 6.83 6
2003 815,270 1.21 7.12 1.21 7.13 9
2002 796,591 1.23 7.50 1.22 7.51 32
2001 830,636 1.21 8.05 1.21 8.06 30
2000 787,829 1.21 8.95 1.20 8.95 23
PREMIER INCOME (NPF)
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 311,991 1.28 6.57 1.27 6.58 22
2003 304,048 1.24 6.91 1.23 6.91 19
2002 305,958 1.29 7.66 1.28 7.67 25
2001 307,496 1.28 8.25 1.26 8.26 14
2000 289,103 1.27 8.84 1.26 8.85 9
HIGH INCOME OPPORTUNITY (NMZ)
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(a) 345,023 1.15* 6.75* .70* 7.20* 52
================================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
============================================================================
INVESTMENT QUALITY (NQM)
- ----------------------------------------------------------------------------
Year Ended 10/31:
2004 $301,000 $25,000 $72,688
2003 301,000 25,000 71,482
2002 301,000 25,000 71,396
2001 301,000 25,000 71,643
2000 301,000 25,000 68,548
SELECT QUALITY (NQS)
- ----------------------------------------------------------------------------
Year Ended 10/31:
2004 279,000 25,000 72,643
2003 279,000 25,000 71,538
2002 279,000 25,000 70,547
2001 279,000 25,000 72,007
2000 279,000 25,000 68,968
QUALITY INCOME (NQU)
- ----------------------------------------------------------------------------
Year Ended 10/31:
2004 452,000 25,000 71,576
2003 452,000 25,000 70,092
2002 452,000 25,000 69,059
2001 452,000 25,000 70,942
2000 452,000 25,000 68,575
PREMIER INCOME (NPF)
- ----------------------------------------------------------------------------
Year Ended 10/31:
2004 165,000 25,000 72,271
2003 165,000 25,000 71,068
2002 165,000 25,000 71,357
2001 165,000 25,000 71,590
2000 165,000 25,000 68,804
HIGH INCOME OPPORTUNITY (NMZ)
- ----------------------------------------------------------------------------
Year Ended 10/31:
2004(a) 155,000 25,000 80,649
============================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit, expense reimbursements and legal fee refund,
where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period November 19, 2003 (commencement of operations) through
October 31, 2004.
See accompanying notes to financial statements.
68-69 spread
Board Members
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
Members of the Funds. The number of board members of the Funds is currently set
at seven. None of the board members 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 board members 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 BOARD MEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 152
3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and
333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 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).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 152
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 152
7/29/34 Trust Company; Director, Community Advisory Board for
333 W. Wacker Drive Highland Park and Highwood, United Way of the North
Chicago, IL 60606 Shore (since 2002).
- ------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 152
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire & Casualty Company; formerly Director, Federal Reserve
Chicago, IL 60606 Bank of Chicago; formerly, President and Chief Operating
Officer, SCI Financial Group, Inc., a regional financial
services firm.
- ------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 152
3/6/48 Business at the University of Connecticut (since 2003);
333 W. Wacker Drive previously Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003);
Director, Credit Research Center at Georgetown University;
Director of Xerox Corporation (since 2004).
70
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 BOARD MEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Senior Partner and Chief Operating Officer, Miller-Valentine 152
9/24/44 Group, Vice President, Miller-Valentine Realty, a construction
333 W. Wacker Drive company; Chair, Miami Valley 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 Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 152
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994)
Chicago, IL 60606
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 152
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer 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.; Managing
Director (since 2004) and Assistant Secretary (since 1994)
of Nuveen Investments Inc.; 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 2003); Chartered
Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Vice President (since 2002), formerly, Assistant Vice President 152
9/22/63 (since 1999) of Nuveen Investments, LLC; Chartered
333 W. Wacker Drive Financial Analyst.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 152
2/3/66 and Assistant President (since 2000), previously, Associate of Nuveen
333 W. Wacker Drive Secretary Investments, LLC.
Chicago, IL 60606
71
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 152
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); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 152
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 Managing Director (since 2004) formerly, Vice President of 152
10/24/45 Nuveen Investments, LLC; Managing Director (since 2004)
333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp.
- ------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 152
3/2/64 LLC; Managing Director (since 2001), formerly Vice President
333 W. Wacker Drive of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 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 1998) 152
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2003) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
72
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance 152
4/13/56 and Chief (since August 2004) of Nuveen Investments, LLC,
333 W. Wacker Drive Compliance Nuveen Investments Advisers Inc., Nuveen Asset
Chicago, IL 60606 Officer Management Inc., Nuveen Advisory Corp., Nuveen
Institutional Advisory Corp. and Rittenhouse Asset
Management, Inc.; formerly, Senior Attorney
(1994-July 2004), The Northern Trust Company.
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 152
3/22/63 LLC, previously Assistant Vice President (since 1999);
333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC;
Chicago, IL 60606 Certified Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 152
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 152
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).
- ------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, LLC; 152
7/7/65 Managing Director (since 1997), formerly Vice President
333 W. Wacker Drive (since 1996) of Nuveen Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.; Managing Director of Nuveen Asset Management
Inc. (since 1999). Chartered Financial Analyst.
(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 board member
of the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Officers serve one year terms 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.
73
Reinvest Automatically
EASILY AND CONVENIENTLY
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
the dividends or distributions awaiting reinvestment. Because the market price
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.
FLEXIBLE
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.
74
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments and (ii) information
regarding how the Funds voted proxies relating to portfolio securities held
during the most recent 12-month period ended June 30, 2004, are available
without charge, upon request, by calling Nuveen Investments toll-free at (800)
257-8787 or on Nuveen's web site at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the sensitivity of a bond
or bond fund's value to changes when interest rates change. 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 longer than the duration of
the Fund's portfolio of bonds.
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 common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage 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.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
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 purchased during the period ended October 31, 2004.
Any future repurchases will be reported to shareholders in the next annual or
semiannual report.
75
Nuveen Investments:
SERVING Investors
For Generations
Photo of: 2 women looking at a photo album.
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.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $100 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.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
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.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
EAN-C-1004D
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 or Trustees 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 Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR. Mr. Evans has served as the
registrant's audit committee financial expert from July 26, 2004 to the end of
the reporting period on October 31, 2004.
Prior to July 26, 2004, William E. Bennett, who was "independent" for purposes
of Item 3 of Form N-CSR, served as the audit committee financial expert.
Although Mr. Bennett served as the audit committee financial expert during the
reporting period, he unexpectedly resigned from the Board effective April 30,
2004. Accordingly for this reporting period, the registrant did not have a
designated "audit committee financial expert" from May 1, 2004 to July 26, 2004.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidiary, 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.
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that Ernst & Young LLP provided to the Fund, except for those non-audit services
that were subject to the pre-approval exception under Rule 2-01 of Regulation
S-X (the "pre-approval exception"). The pre-approval exception for services
provided directly to the Fund waives the pre-approval requirement for services
other than audit, review or attest services if: (A) the aggregate amount of all
such services provided constitutes no more than 5% of the total amount of
revenues paid by the Fund to its accountant during the fiscal year in which the
services are provided; (B) the Fund did not recognize the services as non-audit
services at the time of the engagement; and (C) the services are promptly
brought to the Audit Committee's attention, and the Committee (or its delegate)
approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
- ------------------------------------------------------------------------------------------------------------------------------------
October 31, 2004 $ 33,833 $ 0 $ 364 $ 2,550
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
October 31, 2003 $ 28,706 $ 0 $ 599 $ 2,350
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Advisory Corp. ("NAC" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAC ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The table also shows the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
- ------------------------------------------------------------------------------------------------------------------------------------
October 31, 2004 $ 0 $ 0 $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
October 31, 2003 $ 0 $ 0 $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A N/A N/A
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Services Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
October 31, 2004 $ 2,914 $ 0 $ 0 $ 2,914
October 31, 2003 $ 2,949 $ 0 $ 0 $ 2,949
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit
committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the audit committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the audit committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the audit committee at
the next audit committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
audit committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") (15 U.S.C.
78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner,
Lawrence H. Brown, Jack B. Evans and William J. Schneider.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Schedule I in Item 1.
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,
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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors or trustees and
reserves the right to interview all candidates and to make the final selection
of any new directors or trustees.
ITEM 11. 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 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 second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. 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 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(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 1940 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 6, 2005
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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
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Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: January 6, 2005
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: January 6, 2005
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* Print the name and title of each signing officer under his or her signature.