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 811-06456
---------------------
Nuveen Premier Municipal Income 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
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: October 31, 2005
------------------
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, 2005
Nuveen Investments
Municipal Exchange-Traded
Closed-End 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 12-month period covered by this
report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please see the Portfolio Managers' Comments and Performance Overview
sections of this report.
Given recent reports of a strengthening economy, some market commentators are
speculating about whether longer-term interest rates will soon begin to rise
substantially, mirroring the rise that has taken place in shorter-term rates. If
longer-term rates do begin to rise significantly, some have suggested that this
would be a signal to begin selling your holdings of fixed-income investments.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
Nobody knows what the market will do in the future or what investments will turn
out to be tomorrow's best performers. But from our experience, we do know that a
well-balanced portfolio, structured and carefully monitored with the help of a
trusted investment professional, can be an important component in helping you
achieve your long-term financial goals. In fact, a well-diversified portfolio
may actually help to reduce your overall investment risk over the long term.
That is one reason why we believe that a municipal bond investment like your
Fund can be an important building block in a comprehensive investment program
designed to perform well in a variety of market conditions.
As an added convenience for you, I urge you to consider receiving future Fund
reports and other Fund information by e-mail and the Internet. Not only will you
be able to receive the information faster, but this also may help lower your
Fund's expenses. Sign up is quick and easy - see the inside front cover of this
report for instructions.
Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of
Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a
substantial portion of its stake in Nuveen. More recently, St. Paul sold the
balance of its shares to Nuveen Investments or to others. Please be assured that
these transactions only affect Nuveen's corporate structure, and they do not
have any impact on the investment objectives or management of your Fund.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering 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, 2005
Nuveen Investments Municipal Exchange-Traded Closed-End Funds
NQM, NQS, NQU, NPF, NMZ
Portfolio Managers'
COMMENTS
Portfolio managers Dan Solender, Tom Spalding and John Miller discuss the
economic and municipal market environments, key investment strategies and the
annual performance of these five Funds. With 13 years of investment experience,
Dan has managed NQM and NPF since 2003. A 30-year veteran of Nuveen, Tom has
managed NQS and NQU since 2003. John, who has 12 years of municipal market
experience, assumed portfolio management responsibility for NMZ at its inception
in 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
PERIOD ENDED OCTOBER 31, 2005?
Between November 1, 2004, and October 31, 2005, the Federal Reserve implemented
eight 0.25% increases in the closely-watched fed funds rate. These increases,
which were aimed at controlling the pace of inflation, raised this short-term
target rate to 3.75% from 1.75%. (On November 1, 2005, and December 13, 2005,
the fed funds rate was increased by 0.25% to reach 4.25%.) Over this same
12-month period, shorter-term municipal market rates also rose significantly.
Longer-term yields declined throughout much of this period before rising toward
the end of the fiscal year. The yield on the benchmark 10-year U.S. Treasury
note ended October 2005 at 4.56%, compared with 4.03% one year earlier.
Longer-term yields in the municipal market followed a similar pattern, with the
yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of
longer-term municipal market rates, ending the reporting period at 5.21%, an
increase of 24 basis points from October 31, 2004. Together, the steady rise in
shorter-term rates and the much more modest increase in longer rates over this
period produced an overall flattening of the yield curve, which generally led to
better relative performance for bonds with longer effective maturities and
poorer returns for bonds with shorter maturities or short call dates.
The economy continued to improve over the 12-month period. After expanding at an
annualized rate of 3.3% in the fourth quarter of 2004, the U.S. gross domestic
product (GDP) grew by annualized rates of 3.8% in the first quarter of 2005,
3.3% in the second quarter and 3.8% in the third quarter. The overall employment
picture showed some improvement, with national unemployment at 5.0% in October
2005, down from 5.5% in October 2004. However, the 4.3% year-over-year increase
in the Consumer Price Index as of October 2005 raised some inflation concerns.
Over the 12 months ended October 2005, municipal bond new issue supply
nationwide remained strong, as $363.4 billion in new securities came to market.
A major factor behind this strong supply was the flattening yield curve, which
made advance refundings more economically attractive for many issuers. (Advance
refundings, also known as pre-
4
refundings or refinancings, occur when an issuer sells new bonds and uses the
proceeds to fund the principal and interest payments of older, previously issued
bonds that carry a higher coupon rate. This process usually results in lower
total borrowing costs for bond issuers.) Between January and October 2005,
pre-refunding volume was nearly 50% higher than during the same period in 2004,
as issuers sought to take advantage of the current interest rate environment.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE 12 MONTHS ENDED
OCTOBER 31, 2005?
With the Fed continuing to raise short-term interest rates and the overall
flattening of the yield curve, one of our priorities during this period was to
focus on the yield curve positioning of each Fund. As part of this effort, we
generally took proceeds from called, matured or sold holdings and reinvested
them in bonds with longer maturities. The specific areas of the yield curve that
we targeted--as well as some of our management strategies--varied during this
period according to the differing needs of each Fund. In general, we bought
bonds maturing in 15 to 20 years for NQM and NPF, in 25 years for NQS and NQU,
and in 20 to 30 years for NMZ. Among the bonds we sold, particularly in NQM and
NPF, were those with shorter durations1 (under five years). This included
pre-refunded bonds and bonds priced to short call dates, which tended to
underperform in the interest rate environment of this 12-month period. The
longer maturity bonds we added to all of the Funds' portfolios enabled us to
maintain the Funds' durations within our desired range and generally contributed
positively to their performance for the period. Selling shorter duration bonds
and reinvesting further out on the yield curve also helped to improve the Funds'
overall call protection.
While our main focus was the intermediate and long parts of the yield curve, we
kept an opportunistic eye toward all types of issuance that we believed could
add value to the Funds' portfolios. In NQM and NPF, we continued to make
progress in adding to the Funds' weightings of bonds rated BBB and lower,
especially in the healthcare sector. However, lower-rated bonds performed very
well during this period, and considerable investor demand limited the number of
attractive opportunities. Another area of emphasis in these two Funds was
purchasing credits from states such as California and New York, where state
income taxes are relatively higher. High state income taxes generally result in
greater demand for municipal bonds issued in these states, providing a measure
of support for bond prices and additional liquidity for the Funds' portfolio
activity. Overall, we found value in the general obligation, limited tax
obligation, and water and sewer sectors.
In NQS and NQU, our purchase activity generally emphasized finding premium
coupon bonds with adequate call protection. Premium bonds are those trading
above their par
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
5
values because their coupons were higher than the then current coupon levels.
Historically, premium bonds have held their value better than current coupon
bonds when interest rates have risen. Premium bonds also are good candidates for
advance refundings, and trading pre-refunded bonds at opportune times in the
interest rate cycle has historically been a key strategy for adding value to
these Funds.
We also were buying essential services revenue bonds, with an emphasis on
keeping the Funds well diversified geographically. Because we did not find many
attractive opportunities among lower-rated bonds, the majority of our purchases
were higher quality bonds, especially during the second half of this period.
NMZ was established as a high-yield Fund that can invest up to 50% of its
portfolio in below-investment-grade quality securities. NMZ's top priorities
during this period were the yield curve positioning previously mentioned and the
selection of bonds with what we considered to be strengthening credit quality.
We believed these to be the two most critical elements of success in this area
of the municipal market over the 12 month period. In keeping with the Fund's
investment guidelines, our purchase activity generally focused on lower-rated
bonds, using the bottom-up credit selection approach that we considered the best
way to manage high-yield municipal investments. Our favored sectors included
hospitals, charter schools and land-secured community development district
bonds. In addition, the healthcare sector continued to benefit from a stable
environment, growing demand from an aging population and effective cost-cutting
measures. With the continued strength of the real estate market, conditions for
infrastructure bonds that are supported by property taxes also remained
favorable. Equally important, our fundamental approach to individual credit
selection also helped us to avoid some of the credit problems in the high-yield
market during this period, such as additional bankruptcies in the airline
industry.
6
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as for comparative indexes and
averages, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 10/31/05
1-YEAR 5-YEAR 10-YEAR
- --------------------------------------------------------------------------------
NQM 3.10% 7.62% 6.41%
- --------------------------------------------------------------------------------
NQS 4.77% 8.11% 6.81%
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NQU 4.15% 7.60% 6.58%
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NPF 2.49% 7.45% 6.50%
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Lehman Brothers
Municipal
Bond Index2 2.54% 5.98% 5.85%
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Lipper General
Leveraged
Municipal Debt
Funds Average3 5.08% 7.75% 6.52%
- --------------------------------------------------------------------------------
NMZ 11.20% NA NA
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Lehman Brothers
High-Yield Municipal
Bond Index2 9.41% -- --
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Lipper High-Yield
Municipal Debt
Funds Average3 8.20% -- --
- --------------------------------------------------------------------------------
*Annualized
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended October 31, 2005, the total returns on net asset value
(NAV) for NQM, NQS, and NQU exceeded the return on the Lehman Brothers Municipal
Bond Index, while NPF performed roughly in line with this measure. Each of these
four Funds underperformed the average return for their Lipper peer group for
this period. NMZ outperformed both the Lehman Brothers High-Yield Municipal Bond
Index and the Lipper High-Yield peer group average for the period.
One of the factors that, on balance, benefited the 12-month performance of these
Funds relative to that of the unleveraged Lehman Brothers indexes was the Funds'
use of financial leverage. Leveraging can provide opportunities for enhanced
income for common shareholders when short-term interest rates remain below the
yields of the bonds purchased for the Funds' portfolios. This continued to be
the case during these 12 months. At the same time, leveraging can add volatility
to a Fund's NAV and share price, and can act to constrain the overall Fund
return during periods when longer-term interest rates rise. For NQM, NQS, NQU
and NPF, this was evident during this reporting period.
2 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 Investors Service and
below BBB by Standard & Poor's or Fitch Ratings). Results for the Lehman
Brothers indexes do not reflect any expenses.
3 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, 64 funds; 5 years, 48
funds; and 10 years, 43 funds. The Lipper High-Yield Municipal Debt Funds
category average is calculated using the returns of all 15 closed-end
exchange-traded funds in this category for the one-year period. Fund and
Lipper returns assume reinvestment of dividends.
7
In general, the yield advantage from leverage during this period was partially
offset by the negative impact that leverage had on the Funds' NAVs.
As noted earlier, the municipal market yield curve flattened over the course of
this reporting period. Longer maturity bonds generally performed better than
securities with shorter maturities. Yield curve positioning or, more
specifically, the Funds' heavier exposure to the intermediate and longer parts
of the yield curve helped their performances relative to the Lehman Brothers
municipal index, which is more evenly weighted across the entire yield curve.
All five of these Funds also benefited from their allocations of lower-quality
bonds during this period, as bonds rated BBB and lower generally outperformed
other credit quality sectors. Among the lower-rated credits making significant
contributions to the Funds' total returns for this period were bonds backed by
the 1998 master tobacco settlement agreement. As the litigation environment
improved, supply/demand dynamics drove tobacco bond prices higher. Uninsured
tobacco bond holdings accounted for 2% of the portfolio of NPF, 2.5% of NQM, 5%
of NQS and NMZ, and 6% of NQU as of October 31, 2005. These allocation
differences accounted for some of the performance differences between these
Funds over the 12-month period.
Lower-rated hospital holdings also contributed positively to the Funds' total
returns, as the healthcare sector ranked second in terms of performance among
the Lehman municipal revenue sectors for the period. Three of the
better-performing hospital bonds in our portfolios during this period were those
issued for the Detroit Medical Center in Michigan (held by NQS and NMZ), which
had its outlook upgraded to positive by all three major credit rating agencies;
Knox County hospital revenue bonds issued for Baptist Health System of East
Tennessee (held by NQM, NQS, NQU, and NMZ); and West Penn Allegheny Health
System bonds in Pennsylvania (held by NMZ).
In addition to its 16% position in bonds rated BBB, NMZ also held 19% in bonds
rated BB- or lower and 40% in non-rated bonds, some of which Nuveen has
determined to be of investment-grade quality. On the whole, conditions in the
high-yield market were very positive during this 12-month period, and these
holdings benefited the performance of NMZ.
NMZ also saw significant price appreciation in its holdings of BB-rated
Pocahontas Parkway Association (Virginia) bonds following the June 2005
announcement of a proposed acquisition of the toll road by Transurban, an
Australian company. NMZ has been building an opportunistic position in these
credits over the past two years and, as of October 31, 2005, held 2.7% of its
portfolio in Pocahontas Parkway bonds.
An additional positive factor in the performance of these Funds was their
holdings of zero coupon bonds. These bonds do not make periodic interest
payments and therefore typi-
8
cally have very long initial maturities. The prices of these bonds tend to be
very sensitive to changes in interest rates. Zero coupon bonds in the Lehman
Municipal Bond Index outperformed the general market by 130 basis points.
In addition to yield curve positioning, credit exposure, and specific holdings,
another factor in the Funds' performances during this period was advance
refundings. Refinancings rose sharply during this period, and the Funds'
performances benefited from the amount of their respective portfolios that
became advance refunded and the timing of these events. Generally, newly
refunded bonds received a higher credit rating, which usually translates to a
higher price. This was especially true in NQS and NQU, while NMZ also had a
number of holdings advance refunded, including three previously non-rated or
below-investment-grade charter school credits in Arizona and Colorado and the
non-rated Baldwin County Eastern Shore Healthcare Authority for Thomas Hospital
in Alabama.
While newly pre-refunded bonds enhanced the Funds' performances, their holdings
of older, previously pre-refunded bonds tended to underperform the general
municipal market during this period. This was primarily because the shorter
effective maturities of these bonds dampened their ability to appreciate as much
as longer maturity bonds. In addition, at the beginning of this reporting
period, NPF held a distressed credit (Northwest Minnesota Multi-County Housing
and Redevelopment Authority) that had stopped accruing interest. Although this
holding was sold in December 2004, it nevertheless had a negative impact on
NPF's total return for the entire reporting period and on the income available
for common share dividends. NQM's annual performance also was adversely affected
by the calls of some of its higher-yielding housing bonds.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
OCTOBER 31, 2005?
We continued to believe that maintaining strong credit quality was an important
requirement for our investment-grade-oriented Funds. As of October 31, 2005,
NQM, NQS, NQU, and NPF continued to offer excellent credit quality, with
allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 72% in NPF to
76% in NQS and NQM, and 81% in NQU. As noted, NMZ held 19% of its portfolio in
securities rated BB or lower and 40% in non-rated securities (some of which we
deemed to be investment-grade quality) as of October 31, 2005. The remainder of
NMZ's portfolio was invested in investment-grade quality securities, including a
13% allocation to bonds rated AAA/U.S. guaranteed and AA.
As of October 31, 2005, potential call exposure for the period from November
2005 through the end of 2006 ranged from 2% in NQM to 3% in NQU, 6% in NPF, 7%
in NMZ and 9% in NQS. The number of actual bond calls in all of these Funds
depends largely on future market interest rates.
9
Dividend and Share Price
INFORMATION
All of the Funds in this report use leverage to enhance opportunities for
additional income for common shareholders. The extent of this benefit is tied in
part to the short-term rates these five leveraged Funds pay their
MuniPreferred(R) shareholders. During periods of low short-term rates, leveraged
Funds generally pay lower dividends to their MuniPreferred shareholders, which
can leave more earnings to support common share dividends. However, when
short-term interest rates rise, as they did during this reporting period, the
Funds' borrowing costs also rise. While leveraging still provided benefits for
common shareholders, the extent of these benefits was reduced. This resulted in
two monthly dividend reductions in NQS, three in NQM and NQU, and four in NPF
over the 12-month period ended October 31, 2005. The dividend of NMZ remained
stable throughout this reporting period.
In addition, due to normal portfolio activity, common shareholders of the
following Funds received capital gains and net ordinary income distributions at
the end of December 2004 as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
- --------------------------------------------------------------------------------
NQM $0.1015 $ --
- --------------------------------------------------------------------------------
NPF $0.1347 $0.0012
- --------------------------------------------------------------------------------
NMZ $ -- $0.0621
- --------------------------------------------------------------------------------
The relatively large distributions from these Funds represented an important
part of the Funds' total returns for this period. For the most part, these
distributions were generated by bond calls or by sales of appreciated
securities. This had a slight negative impact on the Funds' earning power per
common share and was a minor factor in the per share dividend reductions noted
above.
All of the Funds in this report 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, 2005, NQM,
NQS, NQU and NMZ had positive UNII balances for both financial statement and tax
purposes. NPF had a positive UNIIbalance for tax purposes and a negative
UNIIbalance for financial statement purposes.
10
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
10/31/05 12-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
- --------------------------------------------------------------------------------
NQM -6.71% -5.99%
- --------------------------------------------------------------------------------
NQS -4.08% -5.38%
- --------------------------------------------------------------------------------
NQU -6.03% -7.55%
- --------------------------------------------------------------------------------
NPF -8.93% -8.67%
- --------------------------------------------------------------------------------
NMZ +4.10% +0.85%
- --------------------------------------------------------------------------------
11
Nuveen Investment Quality Municipal Fund, Inc.
NQM
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 67%
AA 9%
A 14%
BBB 6%
NR 4%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.084
Dec 0.084
Jan 0.084
Feb 0.084
Mar 0.081
Apr 0.081
May 0.081
Jun 0.077
Jul 0.077
Aug 0.077
Sep 0.0735
Oct 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 15.35
15.4
15.28
15.3
14.85
14.53
14.62
14.56
14.62
14.69
14.72
14.75
14.88
14.87
14.79
14.8
14.78
14.82
14.8
14.71
14.58
14.64
14.48
14.67
14.72
14.73
14.75
14.74
14.8
14.6
14.59
14.6
14.59
14.63
14.59
14.55
14.52
14.45
14.5
14.53
14.53
14.63
14.79
14.89
14.8
14.87
14.93
14.99
15
14.94
14.9
14.82
14.73
14.72
14.66
14.59
14.61
14.69
14.69
14.69
14.74
14.79
14.85
14.86
14.86
14.92
15.04
15.15
15.18
15.29
15.3
15.16
15.1
15.08
14.99
15.05
14.93
14.79
14.82
14.87
14.9
14.85
14.8
14.86
14.89
14.91
14.94
14.95
14.87
14.93
14.79
14.7
14.74
14.63
14.69
14.68
14.67
14.5
13.98
13.99
13.89
13.94
14.04
14.3
14.39
14.39
14.48
14.55
14.49
14.45
14.56
14.6
14.58
14.6
14.62
14.69
14.64
14.54
14.47
14.47
14.48
14.51
14.68
14.71
14.8
14.8
14.78
14.7
14.78
14.79
14.7
14.76
14.87
14.82
14.82
14.84
14.85
14.84
14.88
14.89
14.86
14.91
14.94
14.95
14.94
15.05
15.11
15.1
15.13
15.2
15.1
15.16
15.13
15.1
15.13
14.98
15.06
15.02
15.16
15.15
15.14
15.04
15.08
15.15
15.15
15.19
15.21
15.25
15.21
15.18
15.22
15.26
15.32
15.4
15.36
15.4
15.4
15.44
15.34
15.22
15.29
15.36
15.26
15.33
15.29
15.39
15.39
15.4
15.36
15.36
15.36
15.36
15.39
15.4
15.29
15.07
15.13
15.15
15.11
15.15
15.1
15.14
15.14
15.11
15.2
15.24
15.25
15.31
15.34
15.37
15.4
15.42
15.38
15.51
15.55
15.53
15.47
15.48
15.52
15.42
15.44
15.29
15.21
15.18
15.1
15.14
15.13
15.07
14.96
14.9
14.75
14.9
14.9
14.9
14.9
15.01
14.99
14.92
14.93
14.92
14.92
14.74
14.48
14.52
14.44
14.38
14.3
14.31
14.42
14.45
14.46
14.38
14.45
14.41
10/31/05 14.45
FUND SNAPSHOT
- ------------------------------------
Common Share Price $14.45
- ------------------------------------
Common Share Net Asset Value $15.49
- ------------------------------------
Premium/(Discount) to NAV -6.71%
- ------------------------------------
Market Yield 6.10%
- ------------------------------------
Taxable-Equivalent Yield1 8.47%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $553,857
- ------------------------------------
Average Effective Maturity on
Securities (Years) 15.84
- ------------------------------------
Leverage-Adjusted Duration 9.17
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/21/90)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 1.17% 3.10%
- ------------------------------------
5-Year 9.29% 7.62%
- ------------------------------------
10-Year 6.31% 6.41%
- ------------------------------------
STATES
(as a % of total investments)
- ------------------------------------
New York 12.8%
- ------------------------------------
California 11.6%
- ------------------------------------
Texas 10.9%
- ------------------------------------
Illinois 6.3%
- ------------------------------------
Washington 5.5%
- ------------------------------------
Minnesota 4.6%
- ------------------------------------
District of Columbia 4.0%
- ------------------------------------
Georgia 3.9%
- ------------------------------------
North Carolina 3.6%
- ------------------------------------
Rhode Island 3.6%
- ------------------------------------
Nevada 3.2%
- ------------------------------------
Colorado 3.1%
- ------------------------------------
Michigan 2.5%
- ------------------------------------
Louisiana 2.5%
- ------------------------------------
Massachusetts 2.4%
- ------------------------------------
Indiana 2.1%
- ------------------------------------
Other 17.4%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
U.S. Guaranteed 20.5%
- ------------------------------------
Healthcare 13.7%
- ------------------------------------
Transportation 13.6%
- ------------------------------------
Tax Obligation/General 12.4%
- ------------------------------------
Tax Obligation/Limited 12.0%
- ------------------------------------
Water and Sewer 7.1%
- ------------------------------------
Housing/Multifamily 6.2%
- ------------------------------------
Utilities 5.5%
- ------------------------------------
Other 9.0%
- ------------------------------------
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%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.1015 per share.
12
Nuveen Select Quality Municipal Fund, Inc.
NQS
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 66%
AA 10%
A 7%
BBB 13%
BB or Lower 2%
NR 2%
Bar Chart:
2004-2005 Monthly Tax-Free Dividends Per Share
Nov 0.083
Dec 0.083
Jan 0.083
Feb 0.083
Mar 0.08
Apr 0.08
May 0.08
Jun 0.08
Jul 0.08
Aug 0.08
Sep 0.077
Oct 0.077
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 15.15
15.22
15.22
15.1
14.73
14.31
14.5
14.48
14.55
14.59
14.64
14.69
14.73
14.75
14.68
14.89
14.8
14.81
14.71
14.62
14.49
14.51
14.38
14.53
14.56
14.54
14.55
14.6
14.66
14.52
14.6
14.7
14.61
14.65
14.67
14.6
14.65
14.68
14.73
14.85
14.77
14.95
15.05
15.03
14.89
14.84
14.85
14.84
14.79
14.72
14.55
14.5
14.36
14.46
14.49
14.53
14.56
14.64
14.61
14.56
14.58
14.63
14.69
14.68
14.7
14.79
14.83
14.92
14.98
15
15.01
14.88
14.96
15.04
14.96
14.98
14.66
14.48
14.6
14.7
14.76
14.73
14.76
14.75
14.75
14.75
14.77
14.71
14.68
14.67
14.56
14.41
14.35
14.36
14.46
14.38
14.3
14.13
13.85
13.86
13.8
13.78
13.97
14.25
14.29
14.3
14.31
14.37
14.35
14.25
14.39
14.39
14.39
14.4
14.56
14.6
14.5
14.35
14.25
14.24
14.3
14.39
14.52
14.55
14.53
14.53
14.58
14.59
14.55
14.56
14.55
14.58
14.65
14.61
14.52
14.51
14.63
14.56
14.69
14.72
14.67
14.65
14.72
14.73
14.84
14.87
14.91
14.92
14.99
14.93
14.99
14.99
15.03
15.03
15.02
14.95
15.02
14.98
15.02
15.09
15.07
15.07
15.09
15.01
15.12
15.08
15.09
15.2
15.27
15.26
15.29
15.28
15.34
15.36
15.45
15.47
15.37
15.37
15.25
15.29
15.35
15.44
15.4
15.41
15.36
15.36
15.45
15.56
15.43
15.43
15.34
15.36
15.4
15.45
15.29
15.1
15.1
15.16
15.14
15.22
15.24
15.32
15.28
15.27
15.34
15.37
15.32
15.36
15.38
15.34
15.33
15.35
15.4
15.49
15.48
15.56
15.59
15.6
15.59
15.56
15.44
15.4
15.41
15.37
15.3
15.29
15.41
15.26
15.15
15.07
15.02
15.12
15.21
15.26
15.18
15.21
15.21
15.21
15.25
15.25
15.35
15.12
14.9
14.85
14.75
14.71
14.66
14.69
14.86
14.9
14.82
14.69
14.82
14.81
10/31/05 14.83
FUND SNAPSHOT
- ------------------------------------
Common Share Price $14.83
- ------------------------------------
Common Share Net Asset Value $15.46
- ------------------------------------
Premium/(Discount) to NAV -4.08%
- ------------------------------------
Market Yield 6.23%
- ------------------------------------
Taxable-Equivalent Yield1 8.65%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $523,994
- ------------------------------------
Average Effective Maturity on
Securities (Years) 15.90
- ------------------------------------
Leverage-Adjusted Duration 7.10
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 4.14% 4.77%
- ------------------------------------
5-Year 9.77% 8.11%
- ------------------------------------
10-Year 6.95% 6.81%
- ------------------------------------
STATES
(as a % of total investments)
- ------------------------------------
Illinois 11.1%
- ------------------------------------
New York 10.2%
- ------------------------------------
Texas 9.6%
- ------------------------------------
South Carolina 6.2%
- ------------------------------------
Colorado 6.0%
- ------------------------------------
Michigan 5.7%
- ------------------------------------
Nevada 4.5%
- ------------------------------------
Tennessee 4.4%
- ------------------------------------
New Jersey 4.2%
- ------------------------------------
New Mexico 3.1%
- ------------------------------------
Utah 2.8%
- ------------------------------------
Alabama 2.7%
- ------------------------------------
Washington 2.5%
- ------------------------------------
North Carolina 2.4%
- ------------------------------------
District of Columbia 2.1%
- ------------------------------------
Wisconsin 2.1%
- ------------------------------------
Florida 1.7%
- ------------------------------------
Other 18.7%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
U.S. Guaranteed 25.8%
- ------------------------------------
Utilities 15.2%
- ------------------------------------
Transportation 13.6%
- ------------------------------------
Healthcare 12.5%
- ------------------------------------
Tax Obligation/General 7.4%
- ------------------------------------
Tax Obligation/Limited 7.2%
- ------------------------------------
Consumer Staples 5.3%
- ------------------------------------
Housing/Single Family 5.1%
- ------------------------------------
Other 7.9%
- ------------------------------------
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%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable-equivalent yield is lower.
13
Nuveen Quality Income Municipal Fund, Inc.
NQU
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 70%
AA 11%
A 7%
BBB 8%
BB or Lower 3%
NR 1%
Bar Chart:
2004-2005 Monthly Tax-Free Dividends Per Share
Nov 0.0805
Dec 0.0805
Jan 0.0805
Feb 0.0805
Mar 0.0775
Apr 0.0775
May 0.0775
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.07
Oct 0.07
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 14.64
14.7
14.66
14.68
14.32
13.99
14.11
14.08
14.14
14.16
14.26
14.28
14.33
14.35
14.22
14.3
14.35
14.34
14.35
14.26
14.16
14.16
14.04
14.22
14.19
14.25
14.34
14.35
14.36
14.3
14.22
14.22
14.12
14.13
14.15
14.09
14.06
14
13.97
13.97
13.97
14.09
14.13
14.22
14.3
14.29
14.34
14.33
14.34
14.32
14.17
14.15
14.01
14.09
14.07
14.13
14.1
14.14
14.15
14.17
14.22
14.27
14.34
14.36
14.39
14.4
14.54
14.61
14.57
14.62
14.58
14.56
14.52
14.59
14.53
14.43
14.35
14.28
14.44
14.5
14.48
14.51
14.48
14.44
14.48
14.49
14.48
14.49
14.34
14.34
14.2
14.08
13.97
13.97
13.96
13.9
13.82
13.74
13.45
13.6
13.47
13.48
13.76
13.9
13.95
13.9
13.84
13.9
13.95
13.78
13.93
13.95
13.95
13.88
13.86
13.96
14
13.96
13.88
13.89
13.98
13.96
13.99
14.07
14.06
14.06
14.07
14.18
14.16
14.2
14.12
14.15
14.19
14.12
14.1
14.1
14.18
14.19
14.21
14.24
14.26
14.32
14.37
14.38
14.39
14.39
14.41
14.47
14.43
14.4
14.44
14.47
14.46
14.44
14.43
14.31
14.3
14.24
14.37
14.37
14.28
14.32
14.41
14.42
14.45
14.43
14.4
14.47
14.45
14.45
14.45
14.48
14.5
14.54
14.52
14.55
14.49
14.48
14.49
14.44
14.49
14.45
14.42
14.49
14.46
14.55
14.57
14.55
14.54
14.54
14.5
14.59
14.62
14.64
14.59
14.51
14.52
14.5
14.51
14.81
14.86
14.86
14.85
14.9
14.97
15.06
15.07
15.08
15.08
15.1
15.07
15.06
15.07
15.09
15.12
15.15
15.16
15.2
15.19
15.11
15.03
14.95
14.84
14.78
14.7
14.73
14.76
14.59
14.57
14.52
14.39
14.51
14.54
14.51
14.49
14.55
14.62
14.56
14.51
14.43
14.53
14.32
14.22
14.08
14.14
14.04
14.14
14.13
14.28
14.3
14.29
14.2
14.25
14.3
10/31/05 14.34
FUND SNAPSHOT
- ------------------------------------
Common Share Price $14.34
- ------------------------------------
Common Share Net Asset Value $15.26
- ------------------------------------
Premium/(Discount) to NAV -6.03%
- ------------------------------------
Market Yield 5.86%
- ------------------------------------
Taxable-Equivalent Yield1 8.14%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $827,077
- ------------------------------------
Average Effective Maturity on
Securities (Years) 14.96
- ------------------------------------
Leverage-Adjusted Duration 7.62
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 4.78% 4.15%
- ------------------------------------
5-Year 8.78% 7.60%
- ------------------------------------
10-Year 6.56% 6.58%
- ------------------------------------
STATES
(as a % of total investments)
- ------------------------------------
New York 12.7%
- ------------------------------------
Texas 12.0%
- ------------------------------------
Illinois 9.3%
- ------------------------------------
Washington 7.2%
- ------------------------------------
South Carolina 5.8%
- ------------------------------------
Massachusetts 5.7%
- ------------------------------------
Nevada 4.8%
- ------------------------------------
Oklahoma 4.3%
- ------------------------------------
California 4.2%
- ------------------------------------
Colorado 3.6%
- ------------------------------------
Pennsylvania 3.1%
- ------------------------------------
New Jersey 2.4%
- ------------------------------------
Alabama 2.1%
- ------------------------------------
North Carolina 1.7%
- ------------------------------------
Indiana 1.6%
- ------------------------------------
Other 19.5%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
U.S. Guaranteed 27.1%
- ------------------------------------
Tax Obligation/General 19.5%
- ------------------------------------
Transportation 12.7%
- ------------------------------------
Utilities 11.0%
- ------------------------------------
Healthcare 9.7%
- ------------------------------------
Tax Obligation/Limited 5.5%
- ------------------------------------
Consumer Staples 4.2%
- ------------------------------------
Other 10.3%
- ------------------------------------
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%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable-equivalent yield is lower.
14
Nuveen Premier Municipal Income Fund, Inc.
NPF
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 57%
AA 15%
A 18%
BBB 9%
NR 1%
Bar Chart:
2004-2005 Monthly Tax-Free Dividends Per Share2
Nov 0.08
Dec 0.077
Jan 0.077
Feb 0.077
Mar 0.074
Apr 0.074
May 0.074
Jun 0.07
Jul 0.07
Aug 0.07
Sep 0.066
Oct 0.066
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 14.49
14.48
14.47
14.59
14.2
13.99
14.16
14.05
14.07
14.06
14.06
14.05
14.1
14.1
14.01
14.11
14.16
14.05
14.07
14.02
13.93
13.97
13.91
13.95
13.97
14.02
14.1
14.05
14.16
13.96
13.93
13.96
13.92
13.93
13.88
13.65
13.71
13.64
13.65
13.65
13.69
13.83
13.9
13.91
13.84
13.86
13.92
13.99
14.03
14.11
13.9
13.94
13.94
13.9
14.02
13.99
14.03
14.09
14.04
14.05
14.08
14.12
14.11
14.19
14.17
14.35
14.43
14.55
14.54
14.45
14.49
14.38
14.33
14.3
14.3
14.26
14.1
13.92
13.98
14.09
14.19
14.19
14.29
14.32
14.28
14.28
14.32
14.32
14.16
14.2
14.05
13.93
13.8
13.71
13.82
13.71
13.61
13.54
13.32
13.34
13.22
13.27
13.37
13.46
13.49
13.5
13.46
13.49
13.47
13.47
13.51
13.58
13.52
13.64
13.61
13.64
13.67
13.57
13.55
13.58
13.62
13.62
13.68
13.69
13.68
13.68
13.71
13.79
13.81
13.83
13.74
13.8
13.88
13.86
13.9
13.92
13.99
13.97
14.05
14.05
14
14.07
14.12
14.12
14.01
14.1
14.09
14.06
14.13
14.15
14.13
14.16
14.24
14.16
14.18
14.12
14.16
13.99
14.08
14.03
14.04
14.05
14.1
14.09
14.09
14.14
14.15
14.17
14.21
14.19
14.13
14.19
14.16
14.23
14.22
14.28
14.21
14.2
14.16
14.2
14.2
14.18
14.18
14.2
14.2
14.22
14.2
14.22
14.27
14.27
14.32
14.33
14.34
14.24
14.08
14.09
14.04
14.05
14.05
14.02
14.01
14.06
14.06
14.05
14
14.03
14.03
14.07
14.11
14.08
14.12
14.13
14.16
14.23
14.23
14.25
14.21
14.23
14.25
14.25
14.19
14.1
13.98
13.97
13.95
13.97
14
13.95
13.89
13.79
13.75
13.91
13.97
14.02
13.89
13.88
13.94
13.86
13.85
13.89
13.89
13.77
13.51
13.56
13.45
13.36
13.38
13.33
13.4
13.49
13.49
13.45
13.52
13.52
10/31/05 13.57
FUND SNAPSHOT
- ------------------------------------
Common Share Price $13.57
- ------------------------------------
Common Share Net Asset Value $14.90
- ------------------------------------
Premium/(Discount) to NAV -8.93%
- ------------------------------------
Market Yield 5.84%
- ------------------------------------
Taxable-Equivalent Yield1 8.11%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $299,423
- ------------------------------------
Average Effective Maturity on
Securities (Years) 15.17
- ------------------------------------
Leverage-Adjusted Duration 10.16
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 1.05% 2.49%
- ------------------------------------
5-Year 6.96% 7.45%
- ------------------------------------
10-Year 6.15% 6.50%
- ------------------------------------
STATES
(as a % of total investments)
- ------------------------------------
California 16.7%
- ------------------------------------
New York 11.9%
- ------------------------------------
Washington 7.4%
- ------------------------------------
Illinois 7.2%
- ------------------------------------
South Carolina 5.1%
- ------------------------------------
Arizona 3.6%
- ------------------------------------
Texas 3.5%
- ------------------------------------
Florida 3.4%
- ------------------------------------
Wisconsin 3.3%
- ------------------------------------
Indiana 3.1%
- ------------------------------------
Minnesota 3.1%
- ------------------------------------
Maine 3.0%
- ------------------------------------
Georgia 2.8%
- ------------------------------------
North Carolina 2.6%
- ------------------------------------
Massachusetts 2.4%
- ------------------------------------
Rhode Island 1.8%
- ------------------------------------
Ohio 1.8%
- ------------------------------------
Other 17.3%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/General 16.9%
- ------------------------------------
Tax Obligation/Limited 13.9%
- ------------------------------------
Utilities 13.9%
- ------------------------------------
U.S. Guaranteed 13.5%
- ------------------------------------
Healthcare 12.5%
- ------------------------------------
Transportation 6.4%
- ------------------------------------
Education and Civic
Organizations 6.1%
- ------------------------------------
Water and Sewer 5.2%
- ------------------------------------
Other 11.6%
- ------------------------------------
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%. When
comparing this Fund to 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 2004 of $0.1359 per share.
15
Nuveen Municipal High Income Opportunity Fund
NMZ
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 10%
AA 3%
A 12%
BBB 16%
BB or Lower 19%
NR 40%
Bar Chart:
2004-2005 Monthly Tax-Free Dividends Per Share2
Nov 0.089
Dec 0.089
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.
11/1/04 15.05
15.16
15.05
15.08
14.86
14.8
14.73
14.77
14.77
14.98
15
14.95
14.93
15.02
14.89
14.93
14.88
14.91
14.88
15
15.09
15
15
15.02
15.06
15
15
14.98
15
14.85
14.82
14.92
14.95
14.92
15
14.95
15
15.01
15.02
15.01
15.02
15.15
15.18
15.1
15.01
15.08
15.01
15.14
15.11
15
14.95
14.98
15.1
14.98
14.94
14.9
14.92
14.96
14.91
14.87
14.95
15
14.95
15
15.09
15.12
15.2
15.3
15.42
15.34
15.4
15.2
15.3
15.27
15.25
15.18
15.23
15.2
15.1
15.25
15.36
15.3
15.25
15.25
15.32
15.33
15.34
15.3
15.21
15.2
15.11
14.97
15.04
14.91
15
15.08
14.9
14.85
14.7
14.82
14.75
14.78
14.79
14.92
14.93
15.01
14.99
15.1
15.06
15.03
15
15.05
14.95
14.93
15
15.02
15
15.07
15.16
15.12
15.04
15.14
15.15
15.23
15.43
15.43
15.26
15.37
15.39
15.47
15.47
15.63
15.62
15.44
15.48
15.44
15.44
15.31
15.4
15.36
15.35
15.47
15.33
15.32
15.4
15.39
15.42
15.46
15.56
15.55
15.62
15.64
15.6
15.61
15.63
15.49
15.6
15.63
15.64
15.65
15.67
15.59
15.64
15.68
15.67
15.73
15.73
15.75
15.67
15.75
15.84
15.84
15.94
16
15.97
16
15.97
15.91
15.63
15.42
15.45
15.47
15.5
15.51
15.5
15.8
15.69
15.79
15.77
15.77
15.8
15.89
15.81
15.86
15.84
15.75
15.8
15.8
15.68
15.74
15.78
15.78
15.75
15.73
15.7
15.73
15.84
15.85
15.77
15.79
15.81
15.8
15.96
16.01
16.04
16.03
16.02
16.07
16.18
16.29
16.14
16.05
16.05
15.98
15.95
15.92
15.98
15.95
15.92
15.87
15.8
15.92
15.87
16
16.05
16.02
15.98
16.05
16
16.09
16.18
16
15.78
15.73
15.7
15.68
15.66
15.65
15.85
15.81
15.86
15.88
16
16.02
10/31/05 15.99
FUND SNAPSHOT
- ------------------------------------
Common Share Price $15.99
- ------------------------------------
Common Share Net Asset Value $15.36
- ------------------------------------
Premium/(Discount) to NAV 4.10%
- ------------------------------------
Market Yield 6.68%
- ------------------------------------
Taxable-Equivalent Yield1 9.28%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $357,025
- ------------------------------------
Average Effective Maturity on
Securities (Years) 21.39
- ------------------------------------
Leverage-Adjusted Duration 8.69
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/19/03)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 14.35% 11.20%
- ------------------------------------
Since
Inception 10.63% 11.08%
- ------------------------------------
STATES
(as a % of total investments)
- ------------------------------------
California 13.4%
- ------------------------------------
Illinois 7.7%
- ------------------------------------
Colorado 6.8%
- ------------------------------------
Florida 6.5%
- ------------------------------------
Texas 6.2%
- ------------------------------------
Louisiana 4.6%
- ------------------------------------
Wisconsin 4.1%
- ------------------------------------
Pennsylvania 3.4%
- ------------------------------------
Michigan 3.3%
- ------------------------------------
Arizona 3.3%
- ------------------------------------
Oklahoma 3.0%
- ------------------------------------
Virginia 3.0%
- ------------------------------------
Ohio 2.8%
- ------------------------------------
New Jersey 2.8%
- ------------------------------------
Washington 2.5%
- ------------------------------------
Indiana 2.5%
- ------------------------------------
New York 2.4%
- ------------------------------------
Virgin Islands 2.4%
- ------------------------------------
Maryland 2.4%
- ------------------------------------
Other 16.9%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Healthcare 24.0%
- ------------------------------------
Tax Obligation/Limited 20.8%
- ------------------------------------
Housing/Multifamily 10.6%
- ------------------------------------
Transportation 7.6%
- ------------------------------------
Education and Civic
Organizations 6.8%
- ------------------------------------
U.S. Guaranteed 6.0%
- ------------------------------------
Utilities 5.8%
- ------------------------------------
Consumer Staples 4.8%
- ------------------------------------
Other 13.6%
- ------------------------------------
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%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2004 of $0.0621 per share.
16
Shareholder
MEETING REPORT
The annual shareholder meeting was held on July 26, 2005, at The Northern Trust
Bank, 50 S. LaSalle St., Chicago, Illinois.
NQM NQS NQU
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT
AGREEMENT WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting
together as a class together as a class together as a class
====================================================================================================================================
For 32,473,248 31,015,979 49,020,175
Against 281,107 282,118 302,491
Abstain 349,338 426,104 667,963
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,103,693 31,724,201 49,990,629
====================================================================================================================================
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 32,753,131 -- 31,362,535 -- 49,413,525 --
Withhold 350,562 -- 361,666 -- 577,104 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,103,693 -- 31,724,201 -- 49,990,629 --
====================================================================================================================================
Lawrence H. Brown
For 32,731,541 -- 31,382,972 -- 49,428,832 --
Withhold 372,152 -- 341,229 -- 561,797 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,103,693 -- 31,724,201 -- 49,990,629 --
====================================================================================================================================
Jack B. Evans
For 32,763,449 -- 31,366,614 -- 49,429,263 --
Withhold 340,244 -- 357,587 -- 561,366 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,103,693 -- 31,724,201 -- 49,990,629 --
====================================================================================================================================
William C. Hunter
For 32,764,501 -- 31,368,612 -- 49,437,944 --
Withhold 339,192 -- 355,589 -- 552,685 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,103,693 -- 31,724,201 -- 49,990,629 --
====================================================================================================================================
David J. Kundert
For 32,758,179 -- 31,373,193 -- 49,429,839 --
Withhold 345,514 -- 351,008 -- 560,790 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,103,693 -- 31,724,201 -- 49,990,629 --
====================================================================================================================================
William J. Schneider
For -- 11,416 -- 10,632 -- 17,092
Withhold -- 71 -- 39 -- 28
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,487 -- 10,671 -- 17,120
====================================================================================================================================
Timothy R. Schwertfeger
For -- 11,416 -- 10,632 -- 17,092
Withhold -- 71 -- 39 -- 28
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,487 -- 10,671 -- 17,12
====================================================================================================================================
Judith M. Stockdale
For 32,760,785 -- 31,384,517 -- 49,436,287 --
Withhold 342,908 -- 339,684 -- 554,342 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,103,693 -- 31,724,201 -- 49,990,629 --
====================================================================================================================================
Eugene S. Sunshine
For 32,746,974 -- 31,375,432 -- 49,441,795 --
Withhold 356,719 -- 348,769 -- 548,834 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,103,693 -- 31,724,201 -- 49,990,629 --
====================================================================================================================================
17
Shareholder
MEETING REPORT (continued)
NPF NMZ
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT
AGREEMENT WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred
shares voting shares voting
together as a class together as a class
====================================================================================================================================
For 18,115,955 22,382,046
Against 105,373 179,368
Abstain 281,206 168,300
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,502,534 22,729,714
====================================================================================================================================
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 18,257,879 -- 22,580,613 --
Withhold 244,655 -- 149,101 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,502,534 -- 22,729,714 --
====================================================================================================================================
Lawrence H. Brown
For 18,250,760 -- 22,556,526 --
Withhold 251,774 -- 173,188 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,502,534 -- 22,729,714 --
====================================================================================================================================
Jack B. Evans
For 18,252,946 -- 22,574,624 --
Withhold 249,588 -- 155,090 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,502,534 -- 22,729,714 --
====================================================================================================================================
William C. Hunter
For 18,257,117 -- 22,580,297 --
Withhold 245,417 -- 149,417 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,502,534 -- 22,729,714 --
====================================================================================================================================
David J. Kundert
For 18,245,767 -- 22,581,156 --
Withhold 256,767 -- 148,558 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,502,534 -- 22,729,714 --
====================================================================================================================================
William J. Schneider
For -- 6,259 -- 6,100
Withhold -- 3 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,262 -- 6,100
====================================================================================================================================
Timothy R. Schwertfeger
For -- 6,259 -- 6,100
Withhold -- 3 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,262 -- 6,100
====================================================================================================================================
Judith M. Stockdale
For 18,252,111 -- 22,591,307 --
Withhold 250,423 -- 138,407 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,502,534 -- 22,729,714 --
====================================================================================================================================
Eugene S. Sunshine
For 18,256,205 -- 22,587,972 --
Withhold 246,329 -- 141,742 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 18,502,534 -- 22,729,714 --
====================================================================================================================================
18
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, 2005, and the related
statements of operations for the year then ended, and the statements of 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. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with the custodian
and brokers or other appropriate auditing procedures where replies from brokers
were not received. 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, 2005, and the results of their operations for the year then ended, and
changes in their net assets and their financial highlights for the periods
indicated therein in conformity with U.S. generally accepted accounting
principles.
Ernst & Young LLP
Chicago, Illinois
December 14, 2005
19
Nuveen Investment Quality Municipal Fund, Inc. (NQM)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 1,250 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB $ 1,238,400
Control Revenue Bonds, International Paper Company,
Series 2005A, 5.000%, 6/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 BBB 4,211,920
Settlement Asset-Backed Bonds, Series 2000,
6.500%, 6/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,185 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 3,237,935
Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.5% (1.6% OF TOTAL INVESTMENTS)
2,170 Arkansas Development Finance Authority, Home Mortgage 7/08 at 101.50 AAA 2,189,443
Revenue Bonds, FNMA/GNMA Mortgage-Backed Securities
Program, Series 1998A, 5.150%, 7/01/17
University of Arkansas, Pine Bluff Campus, Revenue Bonds, Series 2005A:
3,290 5.000%, 12/01/30 - AMBAC Insured 12/15 at 100.00 Aaa 3,409,888
2,000 5.000%, 12/01/35 - AMBAC Insured 12/15 at 100.00 Aaa 2,067,960
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 1,140,782
3,600 5.650%, 12/01/31 - AMBAC Insured 12/10 at 100.00 Aaa 3,904,056
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 979,960
Washington Regional Medical Center, Series 2005B,
5.000%, 2/01/30
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 18.1% (11.6% OF TOTAL INVESTMENTS)
3,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 3,024,690
University of Southern California, Series 2005,
4.750%, 10/01/28
2,500 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A3 2,534,425
Bonds, Cedars-Sinai Medical Center, Series 2005,
5.000%, 11/15/27 (DD, settling 11/08/05)
10,000 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A 10,528,900
5.250%, 2/01/25
5,925 California State Public Works Board, Lease Revenue Refunding 12/05 at 100.00 Aa2 5,930,155
Bonds, Various University of California Projects, Series 1993A,
5.500%, 6/01/21
1,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 1,015,460
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/30
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 1,998,515
San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
2,675 Commerce Joint Power Financing Authority, California, No Opt. Call AA 2,695,303
Tax Allocation Refunding Bonds, Redevelopment
Projects 2 and 3, Series 2003A, 5.000%, 8/01/28 -
RAAI Insured
9,740 Huntington Park Redevelopment Agency, California, Single No Opt. Call AAA 13,612,234
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 6,049,734
Obligation Bonds, Series 2002E, 5.125%, 7/01/22 -
MBIA Insured
1,030 Natomas Union School District, Sacramento County, California, No Opt. Call AAA 1,206,614
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 21,195,984
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 Program No Opt. Call AAA 18,397,479
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 3,633,936
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
$ 6,175 0.000%, 1/15/28 - MBIA Insured No Opt. Call AAA $ 2,030,093
8,135 0.000%, 1/15/34 - MBIA Insured No Opt. Call AAA 1,967,612
17,195 0.000%, 1/15/35 - MBIA Insured No Opt. Call AAA 3,910,143
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.8% (3.1% OF TOTAL INVESTMENTS)
105 Colorado Housing Finance Authority, Single Family Program 5/06 at 105.00 Aa2 107,639
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 13,519,704
Refunding Bonds, Series 2000A, 6.000%, 11/15/19
(Alternative Minimum Tax) - AMBAC Insured
3,200 Denver City and County, Colorado, Special Facilities Airport 4/06 at 100.00 N/R 2,810,080
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, Colorado, 12/07 at 125.00 AA- 10,080,649
General Obligation Improvement Bonds, Series 1996,
7.125%, 12/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 6.1% (4.0% OF TOTAL INVESTMENTS)
3,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 3,461,610
6.000%, 6/01/16 - MBIA Insured
15,950 District of Columbia, Revenue Bonds, Georgetown University, 4/11 at 31.03 AAA 3,764,200
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 26,829,036
Utility Revenue Bonds, Series 1998, 5.500%, 10/01/23 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,570 Escambia County Health Facilities Authority, Florida, Health 10/08 at 101.00 A3 1,599,485
Facility Revenue Refunding Bonds, Baptist Hospital and
Baptist Manor, Series 1998, 5.125%, 10/01/19
3,200 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 3,551,744
Exempt Facilities Remarketed Revenue Bonds, National
Gypsum Company, Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
1,000 Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 1/13 at 100.00 AAA 1,036,230
5.000%, 1/01/25 - FGIC Insured
3,700 Sarasota County, Florida, Utility System Revenue Bonds, 10/15 at 100.00 AAA 3,878,229
Series 2005A, 5.000%, 10/01/24 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 6.0% (3.9% OF TOTAL INVESTMENTS)
17,500 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 19,117,350
Series 2000A, 5.600%, 1/01/30 (Pre-refunded to 1/01/10) -
FGIC Insured
2,710 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 2,826,693
Series 2004, 5.000%, 11/01/23 - FSA Insured
2,000 Dalton Development Authority, Georgia, Revenue Certificates, No Opt. Call AAA 2,257,900
Hamilton Health Care System Inc., Series 1996,
5.500%, 8/15/26 - MBIA Insured
5,980 Fulton County Development Authority, Georgia, Revenue Bonds, 9/11 at 102.00 AAA 6,501,875
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+ 2,671,493
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 5,120,004
5.375%, 12/01/31 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.7% (6.3% OF TOTAL INVESTMENTS)
4,705 Bourbonnais, Illinois, Revenue Bonds, Olivet Nazarene 3/10 at 101.00 AA 5,121,487
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 4,089,690
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 5,049,754
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 2,345,117
Program Revenue Bonds, DuPage and Cook Counties
Community Unit School District 205 - Elmhurst, Series 2000,
6.000%, 1/01/19 (Pre-refunded to 1/01/11) - FSA Insured
21
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
$ 2,500 5.250%, 11/15/21 5/14 at 100.00 A $ 2,591,300
1,000 5.250%, 11/15/22 5/14 at 100.00 A 1,034,390
12,725 Kane, Cook and DuPage Counties School District 46, Elgin, No Opt. Call Aaa 15,471,564
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 7,039,368
Edwardsville, Illinois, School Building Bonds, Series 1994,
5.850%, 2/01/13 - FGIC Insured
6,015 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,808,584
Refunding Bonds, McCormick Place Expansion Project,
Series 1996A, 0.000%, 12/15/21 - MBIA Insured
3,585 Pekin, Illinois, FHA-Insured Section 8 Multifamily Housing 11/05 at 101.00 AAA 3,617,337
Revenue Refunding Bonds, United Auto Workers Senior
Center, Series 1992A, 6.875%, 5/01/22
1,180 Will County School District 17, Channahon, Illinois, General No Opt. Call Aaa 1,535,522
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 1,513,507
1,300 8.700%, 12/01/14 - FSA Insured No Opt. Call AAA 1,752,933
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.2% (2.1% OF TOTAL INVESTMENTS)
5,530 Allen County Jail Building Corporation, Indiana, First Mortgage 4/11 at 101.00 Aa3*** 6,157,213
Bonds, Series 2000, 5.750%, 4/01/20 (Pre-refunded to 4/01/11)
1,880 Indianapolis, Indiana, GNMA Collateralized Multifamily Housing 7/10 at 102.00 Aaa 1,975,072
Mortgage Revenue Bonds, Cloverleaf Apartments Project
Phase I, Series 2000, 6.000%, 1/20/31
St. Joseph County Hospital Authority, Indiana, Revenue Bonds,
Madison Center Inc., Series 2005:
1,550 5.250%, 2/15/23 2/15 at 100.00 BBB 1,545,521
2,500 5.375%, 2/15/34 2/15 at 100.00 BBB 2,458,725
2,495 Shelbyville, Indiana, GNMA Collateralized Multifamily Housing 7/10 at 102.00 Aaa 2,622,120
Revenue Bonds, Blueridge Terrace Project, Series 2000,
6.050%, 1/20/36
2,765 Wayne County Jail Holding Corporation, Indiana, First Mortgage 1/13 at 101.00 AAA 3,080,957
Bonds, Series 2001, 5.750%, 7/15/14 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.1% (0.7% OF TOTAL INVESTMENTS)
1,055 Sedgwick and Shawnee Counties, Kansas, GNMA No Opt. Call Aaa 1,060,528
Mortgage-Backed Securities Program Single Family
Revenue Bonds, Series 1997A-1, 6.950%, 6/01/29
(Alternative Minimum Tax)
3,840 Topeka, Kansas, Industrial Revenue Refunding Bonds, Sunwest 8/16 at 100.00 AAA 5,041,037
Hotel Corporation, Series 1988, 9.500%, 10/01/16 (Alternative
Minimum Tax) (Pre-refunded to 8/15/16)
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,000 Jefferson County, Kentucky, Health Facilities Revenue 1/07 at 102.00 AAA 2,087,460
Refunding Bonds, Jewish Hospital HealthCare Services Inc.,
Series 1996, 5.700%, 1/01/21 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.8% (2.5% OF TOTAL INVESTMENTS)
1,265 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/07 at 102.00 Aaa 1,268,200
GNMA/FNMA Mortgage-Backed Securities Program Family
Mortgage Revenue Refunding Bonds, Series 1997D,
5.900%, 10/01/30 (Alternative Minimum Tax)
675 Jefferson Parish Home Mortgage Authority, Louisiana, Single 12/09 at 103.00 Aaa 677,646
Family Mortgage Revenue Refunding Bonds, Series 2000A-2,
7.500%, 12/01/30 (Alternative Minimum Tax)
(Pre-refunded to 12/01/09)
Jefferson Parish Home Mortgage Authority, Louisiana, Single
Family Mortgage Revenue Bonds, Series 2000G-2:
1,575 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 1,637,811
1,015 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 1,034,031
3,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 3,058,440
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
11,545 Orleans Parish School Board, Louisiana, General Obligation No Opt. Call AAA 13,489,409
Refunding Bonds, Series 1987, 9.000%, 2/01/09 -
MBIA Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 2,500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 $ 2,603,725
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.7% (2.4% OF TOTAL INVESTMENTS)
5,155 Massachusetts Development Financing Authority, Assisted 12/09 at 102.00 N/R 4,986,999
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 1,780,564
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.500%, 7/01/21
1,325 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 1,306,344
Revenue Bonds, UMass Memorial Health Care,
Series 2005D, 5.000%, 7/01/33
2,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,040,520
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
6,600 Massachusetts School Building Authority, Dedicated Sales 8/15 at 100.00 AAA 6,919,836
Tax Revenue Bonds, Series 2005A, 5.000%, 8/15/23 -
FSA Insured
2,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 2,170,420
Bonds, Series 2004, 5.250%, 1/01/22 (Pre-refunded to
1/01/14) - FGIC Insured
1,000 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 1,083,480
Bonds, Series 2005A, 5.250%, 8/01/26 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.9% (2.5% OF TOTAL INVESTMENTS)
4,250 Detroit City School District, Wayne County, Michigan, Unlimited 5/12 at 100.00 AAA 4,677,593
Tax School Building and Site Improvement Bonds,
Series 2001A, 5.500%, 5/01/20 (Pre-refunded to 5/01/12) -
FSA Insured
10,215 Detroit, Michigan, Water Supply System Revenue Refunding No Opt. Call AAA 12,115,194
Bonds, Series 1993, 6.500%, 7/01/15 - FGIC Insured
1,800 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 1,912,536
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
Michigan State Building Authority, Revenue Bonds, Facilities
Program, Series 2005II:
1,605 5.000%, 10/15/21 - AMBAC Insured 10/15 at 100.00 AAA 1,691,863
1,350 5.000%, 10/15/22 - AMBAC Insured 10/15 at 100.00 AAA 1,418,594
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 7.2% (4.6% OF TOTAL INVESTMENTS)
8,250 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A 8,260,395
Allete Inc., Series 2004, 4.950%, 7/01/22
5,000 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 7,088,950
Authority, Minnesota, GNMA Mortgage-Backed Securities
Program Single Family Residential Mortgage Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax)
700 Minnesota Higher Education Facilities Authority, St. John's 10/15 at 100.00 A2 727,153
University Revenue Bonds, Series 2005-6G, 5.000%, 10/01/22
Minnesota Agricultural and Economic Development Board,
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A:
19,380 6.375%, 11/15/29 (Pre-refunded to 11/15/10) 11/10 at 101.00 A*** 21,985,253
620 6.375%, 11/15/29 11/10 at 101.00 A 669,705
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,079,380
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,276,721
Revenue Bonds, Baptist Memorial Healthcare,
Series 2004B-1, 5.000%, 9/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.8% (1.2% OF TOTAL INVESTMENTS)
7,450 Kansas City Industrial Development Authority, Missouri, 1/07 at 102.00 AAA 7,723,341
FNMA Multifamily Housing Revenue Bonds, Royal Woods
Apartments Project, Series 1997, 5.600%, 1/01/30 (Alternative
Minimum Tax) (Mandatory put 1/01/10)
135 Missouri Housing Development Commission, GNMA/FNMA 3/07 at 105.00 AAA 136,196
Single Family Mortgage Revenue Bonds, Homeownership
Loan Program, Series 1997A-2, 7.300%, 3/01/28 (Alternative
Minimum Tax)
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
780 6.000%, 6/01/20 No Opt. Call BBB+ 882,157
1,225 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,227,719
23
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 3,000 Montana Board of Housing, Single Family Program Bonds, 6/14 at 100.00 AA+ $ 2,947,260
Series 2005-RA-1, 4.750%, 6/01/44 (WI, settling 11/16/05)
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.8% (0.4% OF TOTAL INVESTMENTS)
2,640 NebHelp Inc., Nebraska, Revenue Bonds, Student Loan 3/06 at 101.00 AAA 2,645,861
Program, Series 1993B, 5.875%, 6/01/14 (Alternative
Minimum Tax) - MBIA Insured
1,985 Nebraska Investment Finance Authority, Single Family Housing 3/06 at 100.75 AAA 2,002,309
Revenue Bonds, Series 1995B, 6.450%, 3/01/35 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.0% (3.2% OF TOTAL INVESTMENTS)
11,000 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 12,132,010
Bonds, Series 2002C, 5.500%, 6/15/19 (Pre-refunded to
6/15/12) - MBIA Insured
14,530 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 AAA 15,755,315
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.625%, 1/01/34 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.4% (0.9% OF TOTAL INVESTMENTS)
3,350 Essex County, New Jersey, General Obligation Bonds, 5/15 at 100.00 Aaa 3,511,336
Series 2005A, 5.000%, 5/01/26 - MBIA Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 2,116,960
Princeton University, Series 2005A, 5.000%, 7/01/24
1,910 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,985,636
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 915,147
1,295 5.125%, 6/01/19 6/14 at 100.00 A3 1,336,311
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 19.9% (12.8% OF TOTAL INVESTMENTS)
2,250 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 2,339,100
Transportation Revenue Bonds, Series 2005B,
5.000%, 11/15/30 - AMBAC Insured
5,000 New York City, New York, General Obligation Bonds, 6/13 at 100.00 A+ 5,376,200
Fiscal Series 2003J, 5.500%, 6/01/20
3,600 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A+ 3,864,060
Fiscal Series 2004B, 5.250%, 8/01/15
5,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A+ 5,297,300
Fiscal Series 2004C, 5.250%, 8/15/20
4,200 New York City, New York, General Obligation Bonds, 3/15 at 100.00 A+ 4,311,636
Fiscal Series 2005J, 5.000%, 3/01/25
7,000 New York City, New York, General Obligation Bonds, 4/15 at 100.00 A+ 7,198,310
Fiscal Series 2005M, 5.000%, 4/01/24
1,250 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 1,301,788
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005C, 5.000%, 6/15/25 - MBIA Insured
7,800 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 8,103,576
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/28 - AMBAC Insured
10,000 New York City Transitional Finance Authority, New York, Senior 11/15 at 100.00 AAA 10,460,600
Lien Future Tax Secured Bonds, Fiscal Series 2006A-1,
5.000%, 11/01/23 (WI, settling 11/03/05)
3,850 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AAA 4,167,510
Future Tax Secured Bonds, Fiscal Series 2000C,
5.500%, 11/01/24 (Pre-refunded to 5/01/10)
5,570 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 5,796,810
Future Tax Secured Bonds, Fiscal Series 2004C,
5.000%, 2/01/22
5,000 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 5,297,800
Purpose Revenue Bonds, Series 2003C, 5.250%, 12/01/19
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
6,440 5.000%, 1/01/26 - FSA Insured 7/15 at 100.00 AAA 6,728,319
3,000 4.750%, 1/01/29 - FSA Insured 7/15 at 100.00 AAA 3,031,110
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 2,030 New York State Thruway Authority, Highway and Bridge Trust 10/15 at 100.00 AAA $ 2,141,163
Fund Bonds, Second Generation, Series 2005B,
5.000%, 4/01/21 - AMBAC Insured
4,205 New York State Urban Development Corporation, State 3/14 at 100.00 AAA 4,378,372
Personal Income Tax Revenue Bonds, Series 2004A-1,
5.000%, 3/15/23 - FGIC Insured
16,445 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 19,111,228
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,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
3,225 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 3,377,833
1,665 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,741,390
5,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 5,767,416
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 5.7% (3.6% OF TOTAL INVESTMENTS)
2,795 Charlotte, North Carolina, FHA-Insured Mortgage Revenue 11/07 at 100.00 AAA 2,902,635
Bonds, Double Oaks Apartments, Series 1992, 7.350%, 5/15/26
19,775 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102.00 AAA 20,711,742
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 7,742,844
Revenue Bonds, Mission St. Joseph's Health System,
Series 2001, 5.250%, 10/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.7% (1.1% OF TOTAL INVESTMENTS)
8,650 Cuyahoga County, Ohio, Hospital Revenue and Improvement 2/09 at 101.00 A-*** 9,454,104
Bonds, MetroHealth System, Series 1999, 6.150%, 2/15/29
(Pre-refunded to 2/15/09)
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B- 3,142,722
Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Alternative Minimum Tax) (Mandatory put 12/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,355 Chester County, Pennsylvania, General Obligation Bonds, 5/15 at 100.00 Aa1 1,419,363
Series 2005, 5.000%, 11/15/23
5,000 Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100.00 AAA 5,332,800
Series 2001, 5.250%, 9/15/18 - FSA Insured
1,000 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 1,059,480
Revenue Bonds, Catholic Health East, Series 2004B,
5.500%, 11/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,626,150
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,038,390
Series 2005RR, 5.000%, 7/01/30 - XLCA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 5.6% (3.6% OF TOTAL INVESTMENTS)
24,000 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 25,219,440
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 5,925,955
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.4% (1.6% OF TOTAL INVESTMENTS)
2,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,067,740
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 4,592,213
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- 6,807,060
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
25
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ $ 1,843,257
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 3,161,700
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.8% (10.8% OF TOTAL INVESTMENTS)
3,135 Austin Housing Finance Corporation, Texas, GNMA 12/10 at 105.00 Aaa 3,464,426
Collateralized Mortgage Loan Multifamily Housing
Revenue Bonds, Santa Maria Village Project, Series 2000A,
7.375%, 6/20/35 (Alternative Minimum Tax)
13,130 Bexar County Housing Finance Corporation, Texas, Multifamily 5/16 at 100.00 N/R 12,675,046
Housing Revenue Bonds, American Opportunity for Housing,
Series 2001A, 7.500%, 5/01/33
2,950 Bexar County Housing Finance Corporation, Texas, Multifamily 5/16 at 100.00 N/R 2,848,697
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 19,558,235
635 5.500%, 2/15/22 2/10 at 100.00 AAA 677,729
Harris County Hospital District, Texas, Revenue Refunding
Bonds, Series 1990:
3,075 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 3,264,943
5,890 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 6,402,489
5,000 Harris County Hospital District, Texas, Revenue Refunding 8/10 at 100.00 AAA 5,482,200
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 2,472,734
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 5,296,718
4,680 0.000%, 12/01/22 - FSA Insured No Opt. Call AAA 2,046,845
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series 2005:
800 5.250%, 8/15/21 No Opt. Call BBB- 819,432
1,000 5.125%, 8/15/26 No Opt. Call BBB- 992,340
3,960 Stafford Economic Development Corporation, Texas, Sales Tax 9/15 at 100.00 AAA 4,325,904
Revenue Bonds, Series 2000, 5.500%, 9/01/30 - FGIC Insured
5,515 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 6,210,883
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 4,735,400
12,000 0.000%, 8/15/23 - AMBAC Insured No Opt. Call AAA 5,066,880
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,499,825
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
(WI, settling 11/15/05)
3,965 Tyler Health Facilities Development Corporation, Texas, 11/07 at 102.00 AAA 4,170,823
Hospital Revenue Bonds, East Texas Medical Center Regional
Healthcare Center, Series 1997C, 5.600%, 11/01/27 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,935 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 102.00 N/R 1,999,629
Residential Rental Housing Revenue Bonds, Hamptons and
Hampton Court Apartments, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.6% (5.5% OF TOTAL INVESTMENTS)
11,345 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AAA 5,901,442
River-Rock Island Hydro-Electric System Revenue Refunding
Bonds, Series 1997A, 0.000%, 6/01/19 - MBIA Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 17,075 Port of Seattle, Washington, Limited Tax General Obligation 12/10 at 100.00 AA+ $ 18,214,073
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 5,371,000
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 18,019,312
5.625%, 2/01/30 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,091,850
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.4% (1.6% OF TOTAL INVESTMENTS)
7,565 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 8,021,850
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
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 1,072,260
3,000 5.875%, 8/15/30 - RAAI Insured 8/10 at 101.00 AA 3,239,640
1,150 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 1,211,982
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.750%, 5/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
$ 851,021 Total Long-Term Investments (cost $803,342,549) - 153.2% 848,516,751
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.2% (1.4% OF TOTAL INVESTMENTS)
8,400 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's VMIG-1 8,400,000
Regional Medical Center, Variable Rate Demand Obligations,
Series 2000, 2.730%, 7/01/30 - FSA Insured +
3,000 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's VMIG-1 3,000,000
Regional Medical Center, Variable Rate Demand Obligations,
Series 2005, 2.730%, 7/01/35 - FSA Insured +
1,000 North Central Texas Health Facilities Development Corporation, VMIG-1 1,000,000
Hospital Revenue Bonds, Presbyterian Medical Center, Variable
Rate Demand Obligations, Series 1985D, 2.730%, 12/01/15 -
MBIA Insured +
- ------------------------------------------------------------------------------------------------------------------------------------
$ 12,400 Total Short-Term Investments (cost $12,400,000) 12,400,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $815,742,549) - 155.4% 860,916,751
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.1)% (6,059,930)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.3)% (301,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 553,856,821
====================================================================================================================
(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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
** 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) Portion of security purchased on a delayed delivery
basis.
(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 investment. The rate disclosed is that in
effect at the end of the reporting period. 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.
27
Nuveen Select Quality Municipal Fund, Inc. (NQS)
Portfolio of
INVESTMENTS October 31, 2005
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 $ 4,284,160
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 11,081,700
Revenue Bonds, Coffee Health Group, Series 2000A,
6.000%, 7/01/29 - MBIA Insured
5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 5,535,130
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 2,084,080
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 District, 12/13 at 100.00 AAA 3,941,888
Arizona, Electric System Revenue Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.0% (0.8% OF TOTAL INVESTMENTS)
4,500 Little Rock, Arkansas, Hotel and Restaurant Gross Receipts No Opt. Call A3 5,348,115
Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 1.5% (1.0% OF TOTAL INVESTMENTS)
550 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 585,063
Revenue Bonds, Pacific Gas and Electric Company,
Series 1996A, 5.350%, 12/01/16 (Alternative Minimum
Tax) - MBIA Insured
1,000 Coachella Valley Unified School District, Riverside County, No Opt. Call AAA 283,190
California, General Obligation Bonds, Series 2005A,
0.000%, 8/01/30 - FGIC Insured
1,045 Lake Tahoe Unified School District, El Dorado County, No Opt. Call Aaa 294,972
California, General Obligation Bonds, Series 2001B,
0.000%, 8/01/31 - MBIA Insured
5,000 Riverside County Asset Leasing Corporation, California, No Opt. Call AAA 1,868,450
Leasehold Revenue Bonds, Riverside County Hospital
Project, Series 1997, 0.000%, 6/01/25 - MBIA Insured
12,615 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 2,868,651
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
5,000 Santa Monica Community College District, Los Angeles County, No Opt. Call AAA 1,733,750
California, General Obligation Bonds, Series 2005C,
0.000%, 8/01/26 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.1% (6.0% OF TOTAL INVESTMENTS)
11,000 Colorado Department of Transportation, Revenue Anticipation 6/10 at 100.50 AAA 12,200,210
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 9,673,835
Bonds, Kaiser Permanente System, Series 1994A,
5.350%, 11/01/16
16,995 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 18,088,118
Refunding Bonds, Series 2000A, 5.625%, 11/15/23
(Alternative Minimum Tax) - AMBAC Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 1997B:
1,045 0.000%, 9/01/23 - MBIA Insured No Opt. Call AAA 435,410
8,515 0.000%, 9/01/25 - MBIA Insured No Opt. Call AAA 3,166,643
12,355 Northwest Parkway Public Highway Authority, Colorado, Senior 6/11 at 40.52 AAA 3,904,674
Lien Revenue Bonds, Series 2001B, 0.000%, 6/15/26 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.8% (1.2% OF TOTAL INVESTMENTS)
9,285 Connecticut Development Authority, Health Facilities Revenue 2/06 at 101.00 N/R 9,355,380
Refunding Bonds, Alzheimer's Resource Center of
Connecticut Inc., Series 1994A, 7.250%, 8/15/21
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 5,853,300
7,265 5.250%, 6/01/26 - FSA Insured 6/08 at 101.00 AAA 7,591,198
3,210 District of Columbia Tobacco Settlement Corporation, 5/11 at 101.00 BBB 3,428,794
Tobacco Settlement Asset-Backed Bonds, Series 2001,
6.250%, 5/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.5% (1.7% OF TOTAL INVESTMENTS)
4,550 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 4,658,381
Series 2002A, 5.375%, 10/01/30 - MBIA Insured
Lee County, Florida, Airport Revenue Bonds, Series 2000A:
3,075 5.875%, 10/01/18 (Alternative Minimum Tax) - FSA Insured 10/10 at 101.00 AAA 3,331,578
4,860 5.875%, 10/01/19 (Alternative Minimum Tax) - FSA Insured 10/10 at 101.00 AAA 5,265,518
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.7% (0.5% OF TOTAL INVESTMENTS)
3,750 Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 1/10 at 101.00 AAA 3,925,425
5.625%, 1/01/30 (Alternative Minimum Tax) - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.8% (11.1% OF TOTAL INVESTMENTS)
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 6,672,845
Alive 21 Program, Series 2000A, 6.500%, 1/01/35
(Pre-refunded to 7/01/10) - FGIC Insured
2,575 Chicago, Illinois, General Obligation Refunding Bonds, 1/06 at 102.00 AAA 2,632,165
Series 1996B, 5.125%, 1/01/25 - 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) - 12/07 at 102.00 AAA 4,283,960
AMBAC Insured
1,070 5.750%, 12/01/27 (Pre-refunded to 12/01/07) - 12/07 at 102.00 AAA 1,145,959
AMBAC Insured
9,230 5.750%, 12/01/27 (Pre-refunded to 12/01/07) - 12/07 at 102.00 AAA 9,885,238
AMBAC Insured
7,555 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 7,907,970
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 1,269,116
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 2,272,050
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 15,498,300
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 3,835,146
5,360 5.250%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,494,268
2,000 Illinois Health Facilities Authority, Revenue Bonds, Midwest 2/11 at 102.00 Aaa 2,136,140
Care Center I Inc., Series 2001, 5.950%, 2/20/36
10,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 10,444,900
Medical Center, Series 2002, 5.750%, 5/15/22
4,500 Kane, McHenry, Cook and DeKalb Counties Community Unit 12/11 at 100.00 AAA 4,954,995
School District 300, Carpentersville, Illinois, General
Obligation Bonds, Series 2000, 5.500%, 12/01/18
(Pre-refunded to 12/01/11) - MBIA Insured
8,945 Lake and McHenry Counties Community Unit School 1/15 at 74.44 Aaa 4,210,769
District 118, Wauconda, Illinois, General Obligation Bonds,
Series 2005B, 0.000%, 1/01/21 - FSA Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
4,500 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 1,888,245
2,920 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 2,998,957
29
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.8% (1.2% OF TOTAL INVESTMENTS)
$ 1,110 Indiana Housing Finance Authority, Single Family Mortgage 1/10 at 100.00 Aaa $ 1,151,625
Revenue Bonds, Series 2000D-3, 5.950%, 7/01/26
(Alternative Minimum Tax)
7,660 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/11 at 100.00 AAA 8,251,352
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 Bonds, No Opt. Call A3 5,103,500
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 Bonds, 3/14 at 100.00 AA+ 3,964,492
Series 2004A, 5.000%, 3/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.4% OF TOTAL INVESTMENTS)
2,795 Lakeland Wesley Village Inc., Kentucky, FHA-Insured Section 8 11/05 at 100.00 N/R 2,822,056
Assisted Multifamily Housing Mortgage Revenue Refunding
Bonds, Lakeland Wesley Village I Elderly Project, Series 1991,
7.500%, 11/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.6% (1.0% OF TOTAL INVESTMENTS)
7,500 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 AA*** 8,242,350
Revenue Bonds, Johns Hopkins University, Series 1999,
6.000%, 7/01/39 (Pre-refunded to 7/01/09)
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,545 Boston Housing Development Corporation, Massachusetts, 1/06 at 100.00 AAA 3,548,545
FHA-Insured Section 8 Mortgage Loan Project Bonds,
Series 1994A, 5.500%, 7/01/24 - MBIA Insured
1,210 Massachusetts Educational Finance Authority, Student Loan 12/09 at 101.00 AAA 1,248,478
Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11
(Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 8.6% (5.7% OF TOTAL INVESTMENTS)
10,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 10,969,700
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 3,756,551
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 Refunding 2/06 at 100.00 BB- 3,276,507
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
6,475 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 7,066,491
Bonds, 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 A3 6,219,000
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 Refunding 12/12 at 100.00 AAA 7,826,100
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 6,096,942
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/35 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.0% (1.3% OF TOTAL INVESTMENTS)
15 Chisago and Stearns Counties and Southcentral Minnesota 3/06 at 102.85 AA 15,197
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 7,291,270
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/32 - FGIC Insured
3,150 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 3,225,222
Revenue 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 2,478,341
Revenue Bonds, Baptist Memorial Healthcare,
Series 2004B-1, 5.000%, 9/01/24
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA $ 1,543,890
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
900 Nebraska Investment Finance Authority, Single Family Housing 3/06 at 100.75 AAA 908,046
Revenue Bonds, Series 1995A, 6.800%, 3/01/35
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.8% (4.5% OF TOTAL INVESTMENTS)
4,885 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AA 5,255,185
Bonds, Series 2000, 5.500%, 7/01/18
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue 7/10 at 101.00 AAA 8,352,225
Bonds, Series 1999A, 6.000%, 7/01/29 (Pre-refunded to
7/01/10) - MBIA Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
1,950 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 2,114,444
2,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 2,066,840
10,750 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100.00 AAA 11,251,488
Bonds, Series 2001A, 5.250%, 7/01/34 - FSA Insured
6,000 Washoe County, Nevada, Reno-Sparks Convention and Visitors 1/10 at 100.00 AAA 6,676,560
Authority, Limited Tax General Obligation Bonds,
Series 1999A, 6.375%, 7/01/23 (Pre-refunded to 1/01/10) -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.4% (4.2% OF TOTAL INVESTMENTS)
2,400 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 2,670,576
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 3,134,820
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, Home 10/10 at 100.00 AAA 18,415,851
Buyer Program Revenue Bonds, Series 2000CC,
5.850%, 10/01/25 (Alternative Minimum Tax) - MBIA Insured
8,930 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 9,283,628
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 4.6% (3.1% OF TOTAL INVESTMENTS)
8,500 Farmington, New Mexico, Pollution Control Revenue Refunding 4/06 at 101.00 BBB 8,678,160
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 (Pre-refunded to 8/01/11) 8/11 at 101.00 AA-*** 8,809,280
6,200 5.500%, 8/01/30 (Pre-refunded to 8/01/11) 8/11 at 101.00 AA-*** 6,827,192
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.5% (10.2% OF TOTAL INVESTMENTS)
7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,283,920
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
9,290 New York City, New York, General Obligation Bonds, Fiscal 10/07 at 101.00 Aaa 9,886,883
Series 1997G, 6.000%, 10/15/26 (Pre-refunded to 10/15/07)
5,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 5,144,200
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, New York, 6/09 at 101.00 AAA 6,501,300
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000A, 5.500%, 6/15/32 (Pre-refunded to 6/15/09) -
FGIC Insured
2,255 New York City Transit Authority, New York, Metropolitan 1/10 at 101.00 AAA 2,481,966
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 AAA 10,871,835
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, New York City, 5/10 at 101.00 A+*** 11,119,400
Lease Revenue Bonds, Court Facilities, Series 1999,
6.000%, 5/15/39 (Pre-refunded to 5/15/10)
31
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 5,650 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA $ 6,014,086
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 5,585,652
Revenue Bonds, Series 79, 5.300%, 4/01/29 (Alternative
Minimum Tax)
7,545 New York State Urban Development Corporation, Senior Lien 7/06 at 102.00 AAA 7,796,022
Corporate Purpose Bonds, Series 1996, 5.500%, 7/01/26
5,000 New York State Urban Development Corporation, Service No Opt. Call AA- 5,379,300
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
2,320 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 2,477,853
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.5% (2.4% OF TOTAL INVESTMENTS)
18,555 North Carolina Eastern Municipal Power Agency, Power 1/06 at 100.00 AAA 18,587,286
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/17 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 2.1% (1.4% OF TOTAL INVESTMENTS)
10,490 Grand Forks, North Dakota, Sales Tax Revenue Bonds, 12/07 at 100.00 AAA 11,020,479
Aurora Project, Series 1997A, 5.625%, 12/15/29
(Pre-refunded to 12/15/07) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.2% (1.4% 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 A 5,498,500
5,000 6.750%, 4/01/22 4/10 at 101.00 A 5,485,850
395 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 402,217
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 1,045,512
Oklahoma City, Parking System Revenue Refunding Bonds,
Series 1996, 5.300%, 7/01/12 (Pre-refunded to 7/01/06) -
FSA Insured
2,235 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 2,282,740
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- 9,429,100
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 103,081
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 Government 7/17 at 100.00 AAA 2,281,200
Facilities Revenue Refunding Bonds, Series 2002D,
0.000%, 7/01/31 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 9.3% (6.2% OF TOTAL INVESTMENTS)
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2002:
5,500 6.000%, 12/01/21 (Pre-refunded to 12/01/12) 12/12 at 101.00 AA-*** 6,296,400
4,500 6.000%, 12/01/21 12/12 at 101.00 AA- 5,028,120
3,750 Greenwood County, South Carolina, Hospital Revenue Bonds, 10/11 at 100.00 A 3,872,925
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 2,651,975
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 5.750%, 11/01/28
2,825 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 2,998,257
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/22 - MBIA Insured
21,565 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 6,388,416
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 -
AMBAC Insured
1,415 South Carolina Housing Finance and Development Authority, 6/10 at 100.00 Aaa 1,462,374
Mortgage Revenue Bonds, Series 2000A-2, 6.000%, 7/01/20
(Alternative Minimum Tax) - FSA Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
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 $ 12,235,290
4,000 6.375%, 5/15/28 5/11 at 101.00 BBB 4,296,560
3,000 6.375%, 5/15/30 No Opt. Call BBB 3,406,170
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.2% (1.5% OF TOTAL INVESTMENTS)
2,500 South Dakota Education Loans Inc., Revenue Bonds, 6/08 at 102.00 A2 2,589,825
Subordinate Series 1998-1K, 5.600%, 6/01/20 (Alternative
Minimum Tax)
5,875 Sioux Falls, South Dakota, Industrial Revenue Refunding Bonds, 10/14 at 100.00 AAA 7,335,995
Great Plains Hotel Corporation, 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+ 1,843,257
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 6.6% (4.4% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 5,269,500
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 Board, 1/13 at 80.49 AAA 11,549,545
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2002A, 0.000%, 1/01/17 - FSA Insured
12,500 Metropolitan Government of Nashville-Davidson County Health 11/09 at 101.00 AAA 13,742,375
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 1,815,988
2,145 6.000%, 7/01/13 (Alternative Minimum Tax) - MBIA Insured 7/10 at 101.00 AAA 2,188,479
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.4% (9.6% OF TOTAL INVESTMENTS)
7,925 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Baa2 8,387,107
Refunding Bonds, TXU Electric Company, 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 Baa2 6,058,058
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
4,500 Brazos River Authority, Texas, Revenue Bonds, Reliant Energy 12/08 at 102.00 BBB- 4,951,845
Inc., Series 1999B, 7.750%, 12/01/18
4,080 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 4,177,675
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/35 - FGIC Insured
5,500 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 5,613,905
Revenue Bonds, Series 2001, 5.000%, 12/01/31 -
AMBAC Insured
1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101.00 BBB- 1,672,342
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 4,867,282
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 5,152,000
Obligation Bonds, Series 2003, 5.000%, 2/15/26 -
AMBAC Insured
5,000 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 5,131,150
Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.000%, 2/15/27
9,000 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call AAA 9,461,430
Revenue Refunding Bonds, Houston Light and Power
Company, Series 1997, 5.125%, 11/01/28 (Alternative
Minimum Tax) - AMBAC Insured
775 Panhandle Regional Housing Finance Corporation, Texas, 11/05 at 100.00 AAA 778,844
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 Supply 10/12 at 100.00 Baa2 4,970,344
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 5,637,005
Unlimited Tax Schoolhouse Bonds, Series 2001,
5.000%, 8/15/26
4,520 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 Aa1 4,790,793
State Participation Program, Series 1999C, 5.500%, 8/01/35
33
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,010 Winter Garden Housing Finance Corporation, Texas, 4/06 at 101.00 AAA $ 3,033,689
GNMA/FNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Bonds, Series 1994,
6.950%, 10/01/27 (Alternative Minimum Tax)
2,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 57.10 AAA 690,720
General Obligation Bonds, Series 2005, 0.000%, 8/15/26
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.2% (2.8% OF TOTAL INVESTMENTS)
2,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 AAA 2,074,560
Bonds, Special Obligation Crossover, Sixth Series 1996B,
6.000%, 7/01/16 - MBIA Insured
3,565 Utah Associated Municipal Power Systems, Revenue Bonds, 4/13 at 100.00 AAA 3,695,800
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 16,352,703
Services Inc., Series 1997, 5.250%, 8/15/26 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.0% (1.3% 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 4,172,798
4,265 6.250%, 12/01/16 - AMBAC Insured 12/10 at 101.00 AAA 4,794,756
1,505 Vermont Housing Finance Agency, Single Family Housing 11/09 at 100.00 AAA 1,521,660
Bonds, Series 2000-13A, 5.950%, 11/01/25 (Alternative
Minimum Tax) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.8% (2.5% OF TOTAL INVESTMENTS)
8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 9,343,357
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 2,765,200
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
7,225 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 7,815,499
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 5,091,850
Bonds, Appalachian Power Company, Series 2003L,
5.500%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.2% (2.1% OF TOTAL INVESTMENTS)
8,880 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 9,416,262
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- 5,329,400
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 2,121,335
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2003A, 5.125%, 8/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
$ 815,275 Total Long-Term Investments (cost $739,748,470) - 150.5% 788,379,742
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 14,614,455
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.2)% (279,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 523,994,197
====================================================================================================================
(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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
** 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.
# 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.
34
Nuveen Quality Income Municipal Fund, Inc. (NQU)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.2% (2.1% OF TOTAL INVESTMENTS)
$ 3,500 Bessemer Governmental Utility Services Corporation, 6/08 at 102.00 AAA $ 3,689,455
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 8,217,193
6,340 5.500%, 2/01/31 (Pre-refunded to 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 6,947,182
6,970 5.500%, 2/01/31 (Pre-refunded to 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 7,662,051
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.5% (1.0% OF TOTAL INVESTMENTS)
6,360 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 6,502,782
Bonds, Series 1995A, 5.875%, 12/01/30 (Pre-refunded
to 12/01/05) - MBIA Insured
6,110 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AAA 6,296,416
Bonds, Series 2005A, 5.000%, 12/01/27 - FGIC 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 5,526,764
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 1,101,340
Series 2002, 5.250%, 7/01/17 - FGIC Insured
8,010 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 AA 8,347,622
District, Arizona, Electric System Revenue Refunding
Bonds, Series 2002A, 5.125%, 1/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.5% (0.3% OF TOTAL INVESTMENTS)
4,000 University of Arkansas, Fayetteville, Revenue Bonds, 11/14 at 100.00 Aaa 4,127,240
Medical Sciences Campus, Series 2004B, 5.000%, 11/01/34 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.4% (4.2% OF TOTAL INVESTMENTS)
6,000 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 6,023,340
Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
3,450 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,512,066
Bonds, J. David Gladstone Institutes, Series 2001,
5.250%, 10/01/34
5,000 California, General Obligation Veterans Welfare Bonds, 12/05 at 100.00 AA- 5,008,600
Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
10,000 California, Various Purpose General Obligation Bonds, 4/09 at 101.00 AAA 10,017,400
Series 1999, 4.750%, 4/01/29 - MBIA Insured
14,600 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A 15,265,030
5.250%, 2/01/28
1,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 1,100,100
Revenue Bonds, Series 2002A, 5.750%, 5/01/17
1,360 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 1,381,026
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/30
8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,730,775
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
1,500 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 1,527,555
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/32 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.5% (3.6% OF TOTAL INVESTMENTS)
5,240 Adams 12 Five Star Schools, Adams County, Colorado, 12/15 at 100.00 AAA 5,492,149
General Obligation Bonds, Series 2005, 5.000%, 12/15/24 -
FSA Insured
10,000 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 10,643,200
Refunding Bonds, Series 2000A, 5.625%, 11/15/23
(Alternative Minimum Tax) - AMBAC Insured
35
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 12,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/07 at 101.00 AAA $ 12,137,520
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 7,851,024
Bonds, Series 2000B, 0.000%, 9/01/17 (Pre-refunded
to 9/01/10) - MBIA Insured
8,740 Larimer County School District R1, Poudre, Colorado, 12/10 at 100.00 AAA 9,395,675
General Obligation Bonds, Series 2000, 5.125%, 12/15/19
(Pre-refunded to 12/15/10) - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6% (0.4% OF TOTAL INVESTMENTS)
4,395 Bridgeport, Connecticut, General Obligation Bonds, 8/11 at 100.00 AAA 4,794,330
Series 2001C, 5.375%, 8/15/17 (Pre-refunded to 8/15/11) -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,000 Washington Convention Center Authority, District of 10/08 at 101.00 AAA 5,274,950
Columbia, Senior Lien Dedicated Tax Revenue Bonds,
Series 1998, 5.250%, 10/01/17 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,250 Dade County, Florida, Water and Sewerage System Revenue 10/07 at 102.00 AAA 2,377,440
Bonds, Series 1997, 5.375%, 10/01/16 - FGIC Insured
5,300 Escambia County Health Facilities Authority, Florida, Revenue No Opt. Call AA 5,719,018
Bonds, Ascension Health Credit Group, Series 2003A,
5.250%, 11/15/14
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A+*** 5,700,700
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded
to 11/15/10)
- ------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.3% (0.9% OF TOTAL INVESTMENTS)
10,000 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 AAA 10,907,800
Refunding Bonds, Series 2000B, 5.750%, 7/01/21 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.2% (9.3% OF TOTAL INVESTMENTS)
32,670 Chicago, Illinois, General Obligation Bonds, City Colleges of No Opt. Call AAA 8,904,535
Chicago Capital Improvement Project, Series 1999,
0.000%, 1/01/32 - FGIC Insured
5,045 Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 5,465,652
Series 2000D, 5.750%, 1/01/30 - FGIC Insured
Chicago, Illinois, General Obligation Bonds, Neighborhoods
Alive 21 Program, Series 2000A:
680 6.000%, 1/01/28 (Pre-refunded to 7/01/10) - FGIC Insured 7/10 at 101.00 AAA 757,574
4,320 6.000%, 1/01/28 (Pre-refunded to 7/01/10) - FGIC Insured 7/10 at 101.00 AAA 4,812,826
Chicago, Illinois, General Obligation Bonds, Series 2002A:
70 5.000%, 1/01/18 (Pre-refunded to 7/01/12) - AMBAC Insured 7/12 at 100.00 AAA 75,180
6,380 5.000%, 1/01/18 - AMBAC Insured 7/12 at 100.00 AAA 6,679,413
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Revenues, Series 2001C:
1,000 5.500%, 12/01/18 (Pre-refunded to 12/01/11) - FSA Insured 12/11 at 100.00 AAA 1,101,110
3,690 5.000%, 12/01/19 (Pre-refunded to 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,963,208
3,000 5.000%, 12/01/20 (Pre-refunded to 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,222,120
2,000 5.000%, 12/01/21 (Pre-refunded to 12/01/11) - FSA Insured 12/11 at 100.00 AAA 2,148,080
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 6,320,936
4,400 0.000%, 12/01/15 - FGIC Insured No Opt. Call AAA 2,804,164
12,750 Chicago, Illinois, Revenue Bonds, Midway Airport, 1/09 at 101.00 AAA 12,914,603
Series 1998A, 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 8,782,320
7,750 6.000%, 1/01/30 (Pre-refunded to 1/01/10) - MBIA Insured 1/10 at 101.00 AAA 8,566,540
5,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 5,259,150
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,050 Illinois Finance Authority, General Obligation Debt Certificates, 12/14 at 100.00 Aaa $ 1,101,933
Local Government Program - Kankakee County, Series 2005B,
5.000%, 12/01/20 - AMBAC Insured
10,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa Health 2/10 at 101.00 AAA 10,939,200
System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured
2,385 Illinois Housing Development Authority, Section 8 Elderly 3/06 at 100.00 A 2,395,566
Housing 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 3,314,430
1,800 6.000%, 5/01/22 5/12 at 101.00 Baa2 1,913,166
5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 12/10 at 100.00 AAA 5,376,000
Series 2000, 5.450%, 12/01/21 - MBIA Insured
3,165 Joliet Regional Port District, Illinois, Airport Facilities Revenue 7/07 at 103.00 N/R*** 3,339,961
Bonds, Lewis University Airport, Series 1997A,
7.250%, 7/01/18 (Alternative Minimum Tax) (Pre-refunded
to 7/01/07)
4,500 Kane, McHenry, Cook and DeKalb Counties Community Unit 12/11 at 100.00 AAA 4,954,995
School District 300, Carpentersville, Illinois, General Obligation
Bonds, Series 2000, 5.500%, 12/01/18 (Pre-refunded
to 12/01/11) -MBIA Insured
2,270 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,331,381
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.4% (1.6% OF TOTAL INVESTMENTS)
3,240 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 3,494,113
Bonds, Marion General Hospital, Series 2002,
5.625%, 7/01/19 - AMBAC Insured
2,000 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 100.00 AAA 2,110,120
Bonds, Deaconess Hospital Inc., Series 2004A,
5.375%, 3/01/34 - AMBAC Insured
2,400 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,458,368
Community Hospitals of Indiana, Series 2005A,
5.000%, 5/01/35 - AMBAC Insured
5,125 Petersburg, Indiana, Pollution Control Revenue Refunding No Opt. Call A 5,238,980
Bonds, Indianapolis Power and Light Company, Series 1995A,
6.625%, 12/01/24 - ACA Insured
6,455 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/08 at 101.00 AAA 6,316,605
Memorial Health System, Series 1998A, 4.625%, 8/15/28 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.1% (0.7% OF TOTAL INVESTMENTS)
8,585 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA 9,142,166
Iowa Health System, Series 1998A, 5.125%, 1/01/28
(Pre-refunded to 7/01/08) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,585 Johnson County Unified School District 232, Kansas, General 9/10 at 100.00 Aaa 4,697,057
Obligation Bonds, Series 2000, 4.750%, 9/01/19 - FSA Insured
2,500 Kansas Development Finance Authority, Water Pollution Control 11/12 at 100.00 AAA 2,744,575
Revolving Fund Leveraged Bonds, Series 2002-II,
5.500%, 11/01/21
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 1,848,823
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 2,732,325
Refunding Bonds, Project 74, Series 2002, 5.375%, 2/01/18
(Pre-refunded to 2/01/12) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1% (1.4% OF TOTAL INVESTMENTS)
10,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, No Opt. Call AAA 11,470,100
Franciscan Missionaries of Our Lady Health System,
Series 1998A, 5.750%, 7/01/25 - FSA Insured
5,500 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA 5,572,710
University, Series 2002A, 5.000%, 7/01/32 - AMBAC Insured
37
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 8.6% (5.7% OF TOTAL INVESTMENTS)
$ 7,405 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA $ 8,554,108
Revenue Bonds, Massachusetts Institute of Technology,
Series 2002K, 5.500%, 7/01/32
4,365 Massachusetts Health and Educational Facilities Authority, 10/15 at 100.00 AAA 4,555,620
Revenue Bonds, Berkshire Health System, Series 2005F,
5.000%, 10/01/19 - AGC Insured
6,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 6,121,560
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
13,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 13,658,625
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 13,610,160
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 1,498,626
5,570 5.750%, 8/01/29 8/09 at 101.00 AAA 6,022,730
10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AAA 11,018,500
Bonds, Series 2000A, 5.750%, 8/01/39 (Pre-refunded to
8/01/10) - FGIC Insured
5,730 University of Massachusetts Building Authority, Senior Lien 11/10 at 100.00 AAA 6,185,764
Project Revenue Bonds, Series 2000-2, 5.250%, 11/01/20
(Pre-refunded to 11/01/10) - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.1% (1.3% OF TOTAL INVESTMENTS)
5,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 5,160,250
Revenue Bonds, Series 2005A, 5.000%, 7/01/35 -
MBIA Insured
3,790 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 3,958,579
Detroit City School District, Series 2005, 5.000%, 6/01/20 -
FSA Insured
7,425 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 7,867,233
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6% (1.1% OF TOTAL INVESTMENTS)
Chaska, Minnesota, Electric Revenue Bonds, Generating
Facility Project, Series 2000A:
1,930 6.000%, 10/01/20 (Pre-refunded to 10/01/10) 10/10 at 100.00 A3*** 2,135,584
2,685 6.000%, 10/01/25 (Pre-refunded to 10/01/10) 10/10 at 100.00 A3*** 2,971,006
3,655 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 5,182,022
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 3,042,000
Minnesota, Airport Revenue Bonds, Series 1998A,
5.000%, 1/01/30 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.4% OF TOTAL INVESTMENTS)
2,500 Mississippi Hospital Equipment and Facilities Authority, 1/11 at 101.00 Aaa 2,626,300
Revenue Bonds, Forrest County General Hospital,
Series 2000, 5.500%, 1/01/27 - FSA Insured
1,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,877,531
Revenue Bonds, Baptist Memorial Healthcare, 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 2,507,544
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 4,200,067
Revenue Bonds, Jordan Valley Park Projects, Series 2000A,
0.000%, 6/01/30 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.3% (0.2% OF TOTAL INVESTMENTS)
940 Nebraska Investment Finance Authority, Single Family Housing 3/06 at 100.75 AAA 948,404
Revenue Bonds, Series 1995A, 6.800%, 3/01/35 (Alternative
Minimum Tax)
1,195 Nebraska Investment Finance Authority, Single Family Housing 3/06 at 100.75 AAA 1,205,420
Revenue Bonds, Series 1995B, 6.450%, 3/01/35 (Alternative
Minimum Tax)
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.4% (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 $ 36,151,791
12,150 5.000%, 6/15/21 - MBIA Insured 6/12 at 100.00 AAA 12,701,246
10,380 5.000%, 6/15/22 - MBIA Insured 6/12 at 100.00 AAA 10,808,902
1,275 Nevada, General Obligation Refunding Bonds, Municipal Bond 5/08 at 100.00 AAA 1,312,919
Bank Projects 65 and R-6, Series 1998, 5.000%, 5/15/22 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.6% (2.4% OF TOTAL INVESTMENTS)
1,090 Camden County Pollution Control Financing Authority, 12/05 at 100.00 Baa3 1,095,308
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 Bonds, 12/12 at 100.00 AAA 1,077,780
Series 2002A, 5.000%, 12/15/21 (Pre-refunded to 12/15/12) -
FSA Insured
2,150 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 2,392,391
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30
3,200 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,547,776
System Bonds, Series 2003C, 5.500%, 6/15/22 (Pre-refunded
to 6/15/13)
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,281,163
System Bonds, Series 2001B, 6.000%, 12/15/19 (Pre-refunded
to 12/15/11) - MBIA Insured
2,720 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 2,827,712
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
14,485 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 16,523,764
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.4% OF TOTAL INVESTMENTS)
5,925 New Mexico Hospital Equipment Loan Council, Hospital 8/11 at 101.00 AA-*** 6,524,373
Revenue Bonds, Presbyterian Healthcare Services,
Series 2001A, 5.500%, 8/01/21 (Pre-refunded to 8/01/11)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 19.5% (12.7% OF TOTAL INVESTMENTS)
20,000 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 22,333,000
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.125%, 7/15/30 (Pre-refunded to 7/15/10)
1,130 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- 1,203,473
Revenue Bonds, Series 2001A, 5.375%, 9/01/25
15,000 Metropolitan Transportation Authority, New York, Dedicated 4/10 at 100.00 AAA 16,563,750
Tax Fund Bonds, Series 2000A, 6.000%, 4/01/30 (Pre-refunded
to 4/01/10) - FGIC Insured
12,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 BBB- 13,220,750
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.400%, 7/15/33
New York City, New York, General Obligation Bonds, Fiscal
Series 2002G:
950 5.000%, 8/01/17 8/12 at 100.00 A+ 985,444
10,545 5.750%, 8/01/18 8/12 at 100.00 A+ 11,603,613
5,000 New York City, New York, General Obligation Bonds, 8/12 at 100.00 A+ 5,501,950
Fiscal Series 2003A, 5.750%, 8/01/16
New York City, New York, General Obligation Bonds, Fiscal
Series 1997H:
905 6.125%, 8/01/25 (Pre-refunded to 8/01/07) 8/07 at 101.00 A+*** 960,178
5,095 6.125%, 8/01/25 8/07 at 101.00 A+ 5,367,277
New York City, New York, General Obligation Bonds, Fiscal
Series 1997M:
7,200 5.500%, 6/01/17 (Pre-refunded to 6/01/07) - AMBAC Insured 6/07 at 101.00 AAA 7,539,624
7,600 5.500%, 6/01/17 - AMBAC Insured 6/07 at 101.00 AAA 7,930,600
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 AAA 8,900,771
2,065 5.750%, 11/15/19 (Pre-refunded to 5/15/10) 5/10 at 101.00 AAA 2,287,504
2,250 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AAA 2,434,725
Bonds, Mount Sinai School of Medicine, Series 1994A,
5.150%, 7/01/24 - MBIA Insured
39
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
Dormitory Authority of the State of New York, Insured Revenue
Bonds, Fordham University, Series 1998:
$ 2,225 5.000%, 7/01/28 (Pre-refunded to 7/01/08) - MBIA Insured 7/08 at 101.00 AAA $ 2,348,399
275 5.000%, 7/01/28 - MBIA Insured 7/08 at 101.00 AAA 283,827
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-*** 5,076,865
115 5.750%, 2/15/27 (Pre-refunded to 2/15/07) 2/07 at 102.00 AA-*** 121,003
60 5.750%, 2/15/27 2/07 at 102.00 AA- 62,749
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 9,703,375
1,005 6.000%, 2/15/30 (Pre-refunded to 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 1,107,349
165 6.000%, 2/15/30 - MBIA Insured 2/10 at 100.00 AAA 179,693
1,900 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 2,011,511
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 6,345,199
6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,876,858
2,895 Penfield-Crown Oak Housing Development Corporation, 2/06 at 100.00 AAA 2,919,144
New York, FHA-Insured Section 8 Assisted Multifamily
Mortgage Revenue Refunding Bonds, Crown Oak Estates,
Series 1991A, 7.350%, 8/01/23
13,620 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 14,334,369
Revenue Bonds, One Hundred Twenty-Eighth Series 2002,
5.000%, 11/01/20 - FSA Insured
2,250 United Nations Development Corporation, New York, Senior 1/08 at 100.00 A3 2,328,750
Lien Revenue Bonds, Series 2004A, 5.250%, 7/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.6% (1.7% OF TOTAL INVESTMENTS)
7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 8,011,275
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 13,098,754
Bonds, Pitt County Memorial Hospital, Series 1998A,
4.750%, 12/01/28 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.2% (1.5% 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 2,325,167
2,600 5.250%, 6/01/21 - FSA Insured 12/12 at 100.00 AAA 2,789,722
2,000 5.000%, 12/01/22 - FSA Insured 12/12 at 100.00 AAA 2,084,260
11,150 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 11,217,346
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 21,206,186
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- 11,189,995
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- 21,691,645
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 3,285,900
General Obligation Bonds, Series 2001A, 5.500%, 6/15/18
(Pre-refunded to 6/15/11) - FSA Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.8% (3.1% OF TOTAL INVESTMENTS)
$ 5,505 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- $ 5,898,112
Resource Recovery Revenue Refunding Bonds, Panther
Creek Partners Project, Series 2000, 6.650%, 5/01/10
(Alternative Minimum Tax)
2,470 Falls Township Hospital Authority, Pennsylvania, FHA-Insured 2/06 at 100.00 AAA 2,503,790
Revenue Refunding Bonds, Delaware Valley Medical Center,
Series 1992, 7.000%, 8/01/22
7,000 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA*** 7,562,170
5.000%, 9/15/15 (Pre-refunded to 9/15/11)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 2,837,562
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
7,800 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 7,998,354
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 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 6,669,540
5,500 5.625%, 8/01/20 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 6,113,745
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.5% (1.0% OF TOTAL INVESTMENTS)
4,065 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 4,189,023
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
1,500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call BBB 1,666,740
Series 2001A, 5.500%, 7/01/29
1,500 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB 1,550,775
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 5,180,600
5.000%, 8/01/27 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 8.8% (5.8% OF TOTAL INVESTMENTS)
24,725 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 26,514,348
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 Aa1 6,120,612
5,140 5.000%, 3/01/21 3/12 at 100.00 Aa1 5,369,809
Medical University Hospital Authority, South Carolina,
FHA-Insured Mortgage Revenue Bonds, Series 2004A:
5,240 5.250%, 8/15/20 - MBIA Insured 8/14 at 100.00 AAA 5,581,072
3,000 5.250%, 2/15/24 - MBIA Insured 8/14 at 100.00 AAA 3,172,800
13,615 South Carolina Transportation Infrastructure Bank, Junior 10/11 at 100.00 Aaa 14,429,858
Lien Revenue Bonds, Series 2001B, 5.125%, 10/01/21 -
AMBAC Insured
11,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 11,815,540
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.9% (1.2% OF TOTAL INVESTMENTS)
3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 3,159,630
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 Aa3 7,765,210
Series 2002, 5.000%, 11/01/20
4,350 Tennessee Housing Development Agency, Homeownership 7/10 at 100.00 AA 4,393,848
Program Bonds, Series 2000-2B, 6.350%, 1/01/31
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 18.2% (12.0% OF TOTAL INVESTMENTS)
1,000 Alamo Community College District, Bexar County, Texas, 11/11 at 100.00 AAA 1,082,960
Combined Fee Revenue Refunding Bonds, Series 2001,
5.375%, 11/01/16 - FSA Insured
6,500 Bell County Health Facilities Development Corporation, Texas, 11/08 at 101.00 A- 6,616,610
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 Baa2 11,911,279
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Alternative Minimum Tax) (Mandatory
put 11/01/11)
5,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 5,570,290
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
41
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA $ 5,359,650
Refunding and Improvement Bonds, Series 2001A,
5.625%, 11/01/21 (Alternative Minimum Tax) - FGIC Insured
8,235 Grand Prairie Housing Finance Corporation, Texas, GNMA 9/10 at 105.00 AAA 8,989,491
Multifamily Housing Revenue Bonds, Landings of Carrier
Project, Series 2000A, 6.875%, 9/20/42
2,700 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,795,877
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 2,548,000
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 24,309,675
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- 5,121,970
8,495 5.250%, 7/01/16 7/08 at 101.00 AA- 8,849,072
17,655 Matagorda County Navigation District 1, Texas, Revenue 11/08 at 102.00 AAA 18,249,091
Refunding Bonds, Houston Industries Inc., Series 1998B,
5.150%, 11/01/29 - MBIA Insured
7,650 Port of Corpus Christi Authority, Nueces County, Texas, 5/06 at 101.00 BBB 7,764,827
Revenue Refunding Bonds, Union Pacific Corporation,
Series 1992, 5.350%, 11/01/10
2,095 Port of Houston Authority, Harris County, Texas, General 10/10 at 100.00 AA+*** 2,306,658
Obligation Port Improvement Revenue Bonds, Series 2000A,
5.750%, 10/01/20 (Pre-refunded to 10/01/10)
2,000 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 2,173,080
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 12,089,531
Refunding Bonds, New Series 1992, 5.000%, 2/01/17
14,680 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 15,940,865
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 3,931,650
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/23
5,000 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AAA 5,183,250
Sewerage System Revenue Bonds, Series 2001,
5.000%, 8/01/22 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.6% (1.1% OF TOTAL INVESTMENTS)
5,800 Carbon County, Utah, Solid Waste Disposal Revenue Refunding 2/06 at 101.00 BB- 5,960,022
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 7,398,270
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 4,070,320
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 11,588,136
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+ 683,194
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 530,955
500 5.000%, 4/01/19 4/12 at 102.00 AA 529,790
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.9% (7.2% OF TOTAL INVESTMENTS)
$ 4,185 Douglas County Public Utility District 1, Washington, Revenue 9/06 at 106.00 AA $ 4,615,176
Bonds, Wells Hydroelectric, Series 1986, 8.750%, 9/01/18
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,765,200
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
6,750 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 7,228,103
Bonds, Columbia Generating Station - Nuclear Project 2,
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 7,379,649
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 13,983,436
Bonds, Series 2000, 5.400%, 12/01/25
9,440 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 10,474,152
Bonds, Series 2001A, 5.750%, 1/01/18 (Pre-refunded to
1/01/11) - FSA Insured
3,450 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 3,740,282
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 18,799,852
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 7,287,140
7,960 5.000%, 1/01/22 - FSA Insured 1/12 at 100.00 AAA 8,254,600
5,500 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 5,854,090
Bonds, Swedish Health Services, Series 1998,
5.500%, 11/15/14 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4% (0.8% OF TOTAL INVESTMENTS)
195 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 206,775
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
7,545 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/08 at 102.00 AAA 8,091,106
Bonds, Dairyland Power Cooperative, Series 1997A,
5.450%, 9/01/14 - AMBAC Insured
535 Wisconsin Housing and Economic Development Authority, 1/06 at 100.00 AA 535,876
Housing Revenue Bonds, Series 1992A, 6.850%, 11/01/12
3,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 3,121,620
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.750%, 5/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,236,870 Total Long-Term Investments (cost $1,179,639,042) - 152.4% 1,260,517,194
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 18,559,482
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.7)% (452,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 827,076,676
====================================================================================================================
(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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
** 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.
See accompanying notes to financial statements.
43
Nuveen Premier Municipal Income Fund, Inc. (NPF)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.0% (0.8% OF TOTAL INVESTMENTS)
$ 1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 $ 1,016,160
Alabama, Revenue Bonds, Baptist Medical Center,
Series 2004C, 5.250%, 11/15/29
2,000 University of South Alabama, Student Tuition Revenue Bonds, 3/14 at 100.00 Aaa 2,085,320
Series 2004, 5.000%, 3/15/23 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.7% (0.5% OF TOTAL INVESTMENTS)
2,000 Alaska Housing Finance Corporation, General Mortgage 6/09 at 101.00 AAA 2,070,500
Revenue Bonds, Series 1999A, 6.000%, 6/01/49 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.5% (3.6% OF TOTAL INVESTMENTS)
2,000 Arizona Water Infrastructure Finance Authority, Water 10/14 at 100.00 AAA 2,109,540
Quality Revenue Bonds, Series 2004A, 5.000%, 10/01/21
6,000 Salt River Project Agricultural Improvement and Power District, 1/12 at 101.00 AA 6,469,320
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 7,771,725
District, Arizona, Electric System Revenue Bonds,
Series 2002B, 5.000%, 1/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
45 Drew County Public Facilities Board, Arkansas, FNMA 2/06 at 101.00 Aaa 45,713
Mortgage-Backed Single Family Revenue Refunding Bonds,
Series 1993A-2, 7.900%, 8/01/11
46 Stuttgart Public Facilities Board, Arkansas, Single Family 9/06 at 100.00 Aaa 46,325
Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 9/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 25.6% (16.7% OF TOTAL INVESTMENTS)
3,250 Anaheim City School District, Orange County, California, 8/15 at 100.00 AAA 3,409,608
General Obligation Bonds, Series 2005, 5.000%, 8/01/23 -
FGIC Insured
1,800 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 1,814,814
University of Southern California, Series 2005,
4.750%, 10/01/28
2,000 California Health Facilities Financing Authority, Health No Opt. Call A- 2,082,820
Facility Revenue Bonds, Catholic Healthcare West,
Series 2004I, 4.950%, 7/01/26 (Mandatory put 7/01/14)
4,500 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A3 4,561,965
Bonds, Cedars-Sinai Medical Center, Series 2005,
5.000%, 11/15/27 (DD, settling 11/08/05)
4,000 California, General Obligation Bonds, Series 2004, 2/14 at 100.00 A 4,134,880
5.000%, 2/01/23
4,000 California, General Obligation Bonds, Series 2005, 8/15 at 100.00 A 4,167,400
5.000%, 8/01/22
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 5,956,064
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 -
AMBAC Insured
1,000 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA- 1,104,220
5.250%, 7/01/14
1,000 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 1,051,850
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 17,147,200
10,000 0.000%, 1/01/22 - RAAI Insured No Opt. Call AAA 4,674,200
2,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 2,048,120
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/35 - FGIC Insured
2,350 Grossmont-Cuyamaca Community College District, California, 8/15 at 100.00 AAA 2,452,131
General Obligation Bonds, Series 2005B, 5.000%, 8/01/26 -
FGIC Insured
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,255 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA $ 3,421,623
Obligation Bonds, Series 2005E, 5.000%, 7/01/22 -
AMBAC Insured
2,640 North Orange County Community College District, California, 8/14 at 100.00 AAA 2,876,887
General Obligation Bonds, Series 2003B, 5.000%, 8/01/16
(Pre-refunded to 8/01/14) - FGIC Insured
Peralta Community College District, Alameda County,
California, General Obligation Bonds, Series 2005D:
1,995 5.000%, 8/01/24 - FSA Insured 8/13 at 102.00 AAA 2,088,127
2,090 5.000%, 8/01/25 - FSA Insured 8/13 at 102.00 AAA 2,182,503
7,500 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 8,117,400
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/17 (Pre-refunded to 8/01/10) - MBIA Insured
3,500 San Jose Unified School District, Santa Clara County, 8/15 at 100.00 AAA 3,652,110
California, General Obligation Bonds, Series 2005B,
5.000%, 8/01/26 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.2% (1.5% OF TOTAL INVESTMENTS)
Adams and Weld Counties School District 27J, Brighton, Colorado,
General Obligation Bonds, Series 2004:
1,000 5.000%, 12/01/23 - FGIC Insured 12/14 at 100.00 AAA 1,048,690
1,500 5.000%, 12/01/24 - FGIC Insured 12/14 at 100.00 AAA 1,569,600
1,150 Colorado Health Facilities Authority, Revenue Bonds, 9/14 at 100.00 A3 1,156,958
Parkview Medical Center, Series 2004, 5.000%, 9/01/25
1,000 Colorado Health Facilities Authority, Revenue Bonds, 12/09 at 101.00 Aaa 1,096,450
Poudre Valley Healthcare Inc., Series 1999A,
5.750%, 12/01/23 (Pre-refunded to 12/01/09) - FSA Insured
750 Colorado Health Facilities Authority, Revenue Bonds, 1/15 at 100.00 BBB 769,088
Vail Valley Medical Center, Series 2004, 5.000%, 1/15/17
1,000 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 1,044,250
Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,000 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 Baa1 2,133,900
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 1,336,062
Finance Program Bonds, Series 1996C-2, 6.250%, 11/15/18
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.2% (3.4% OF TOTAL INVESTMENTS)
4,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 4,150,280
5.750%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured
2,000 Florida Board of Education, Lottery Revenue Bonds, 7/15 at 101.00 AAA 2,112,520
Series 2005A, 5.000%, 7/01/22 - AMBAC Insured
2,500 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 2,590,025
Florida, Pollution Control Revenue Bonds, Tampa Electric
Company Project, Series 2002, 5.100%, 10/01/13
1,700 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 1,886,864
Exempt Facilities Remarketed 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 4,872,005
Renaissance Project, Series 1996, 5.125%, 10/01/18 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.3% (2.8% OF TOTAL INVESTMENTS)
8,000 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 AAA 8,524,720
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 4,380,856
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 2,420,257
Revenue Bonds, Hawaiian Electric Company Inc.,
Series 1999D, 6.150%, 1/01/20 (Alternative Minimum Tax) -
AMBAC Insured
45
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.0% OF TOTAL INVESTMENTS)
$ 170 Idaho Housing and Finance Association, Single Family 7/06 at 102.00 Aa1 $ 171,753
Mortgage Bonds, Series 1996E, 6.350%, 7/01/14 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.1% (7.2% OF TOTAL INVESTMENTS)
8,670 Chicago, Illinois, General Obligation Bonds, City Colleges No Opt. Call AAA 3,610,968
of Chicago Capital Improvement Project, Series 1999,
0.000%, 1/01/24 - FGIC Insured
850 Chicago Public Building Commission, Illinois, General No Opt. Call AAA 967,938
Obligation Lease Certificates, Chicago Board of Education,
Series 1990B, 7.000%, 1/01/15 - MBIA Insured
8,500 Chicago, Illinois, Senior Lien Water Revenue Bonds, No Opt. Call AAA 10,063,490
Series 2001, 5.750%, 11/01/30 - AMBAC Insured
4,020 Illinois Housing Development Authority, Section 8 Elderly 3/06 at 100.00 A 4,037,809
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 1,628,850
Series 2002, 5.500%, 2/01/17 - FGIC Insured
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
850 5.250%, 1/01/25 1/16 at 100.00 AA- 888,786
1,750 5.250%, 1/01/30 1/16 at 100.00 AA- 1,818,355
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 4,437,376
10,775 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 4,285,649
1,628 Wood River Township, Madison County, Illinois, General 2/06 at 100.00 N/R 1,546,523
Obligation Bonds, Series 1993, 6.625%, 2/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.8% (3.1% 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 1,098,550
2,275 5.500%, 7/15/23 - FSA Insured 1/14 at 100.00 AAA 2,474,222
6,180 Crown Point Multi-School Building Corporation, Indiana, No Opt. Call AAA 2,673,468
First Mortgage Bonds, Crown Point Community School
Corporation, Series 2000, 0.000%, 1/15/23 - MBIA Insured
2,535 Hammond Multi-School Building Corporation, Lake County, 7/13 at 100.00 AAA 2,620,759
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 2,566,459
Bonds, Series 2003A, 5.250%, 6/01/18 (Pre-refunded to
6/01/13) - FSA Insured
2,860 St. Joseph County PHM Elementary/Middle School Building No Opt. Call A 3,032,515
Corporation, Indiana, First Mortgage Bonds, Series 1994,
6.300%, 1/15/09
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.1% (0.7% OF TOTAL INVESTMENTS)
3,000 Kentucky State Property and Buildings Commission, Revenue 8/15 at 100.00 AAA 3,152,190
Bonds, Project 85, Series 2005, 5.000%, 8/01/22 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,310 Louisiana Housing Finance Agency, GNMA Collateralized 3/06 at 103.00 AAA 1,350,256
Mortgage Revenue Bonds, St. Dominic Assisted Care
Facility, Series 1995, 6.850%, 9/01/25
3,950 Morehouse Parish, Louisiana, Pollution Control Revenue No Opt. Call BBB 4,230,292
Bonds, International Paper Company, Series 2002A,
5.700%, 4/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 4.7% (3.0% OF TOTAL INVESTMENTS)
7,965 Maine Educational Loan Marketing Corporation, Student Loan No Opt. Call A2 8,085,749
Revenue Bonds, Subordinate Series 1994B-2,
6.250%, 11/01/06 (Alternative Minimum Tax)
5,730 Maine State Housing Authority, Single Family Mortgage 5/13 at 100.00 AA+ 5,892,159
Purchase Bonds, Series 2004A-2, 5.000%, 11/15/21
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.7% (0.5% OF TOTAL INVESTMENTS)
2,000 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 2,082,980
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.7% (2.4% OF TOTAL INVESTMENTS)
$ 1,900 Massachusetts, General Obligation Bonds, Series 2003D, 10/13 at 100.00 AA*** $ 2,064,445
5.250%, 10/01/20 (Pre-refunded to 10/01/13)
1,000 Massachusetts Development Finance Authority, Revenue 10/14 at 100.00 BBB 1,043,380
Bonds, Hampshire College, Series 2004, 5.625%, 10/01/24
4,360 Massachusetts School Building Authority, Dedicated Sales 8/15 at 100.00 AAA 4,581,924
Tax Revenue Bonds, Series 2005A, 5.000%, 8/15/22 -
FSA Insured
3,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 3,255,630
Bonds, Series 2004, 5.250%, 1/01/24 (Pre-refunded to
1/01/14) - 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 3,108,339
5.250%, 4/01/17 - XLCA Insured
3,025 Wayne County, Michigan, Airport Revenue Refunding Bonds, 12/12 at 100.00 AAA 3,260,890
Detroit Metropolitan Airport, Series 2002C,
5.375%, 12/01/19 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.8% (3.1% OF TOTAL INVESTMENTS)
4,350 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A 4,355,481
Allete Inc., Series 2004, 4.950%, 7/01/22
1,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- 1,034,900
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+ 2,493,970
Minnesota, Revenue Bonds, HealthPartners Inc.,
Series 2003, 6.000%, 12/01/20
1,000 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,062,850
Series 2004A, 5.250%, 10/01/19
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 563,311
1,500 5.250%, 10/01/34 10/14 at 100.00 A2 1,566,465
3,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 12/13 at 100.00 AA+ 3,245,970
Office Building at Cedar Street, Series 2003, 5.250%, 12/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,525 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,527,059
Revenue Bonds, Baptist Memorial Healthcare,
Series 2004B-1, 5.000%, 9/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.0% (0.7% OF TOTAL INVESTMENTS)
2,880 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 3,016,771
Facilities Revenue Bonds, Freeman Health System,
Series 2004, 5.500%, 2/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.2% (1.4% OF TOTAL INVESTMENTS)
1,580 Douglas County Hospital Authority 2, Nebraska, Health No Opt. Call A1 1,654,971
Facilities Revenue Bonds, Nebraska Medical Center,
Series 2003, 5.000%, 11/15/16
2,320 Grand Island, Nebraska, Electric System Revenue Bonds, 3/06 at 100.00 A+*** 2,489,986
Series 1977, 6.100%, 9/01/12
2,350 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call AAA 2,403,933
Loan Program, Series 1993A-5B, 6.250%, 6/01/18 (Alternative
Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.9% (1.2% OF TOTAL INVESTMENTS)
390 New Hampshire Municipal Bond Bank, Revenue Bonds, No Opt. Call N/R 393,436
Coe-Brown Northwood Academy, Series 1994,
7.250%, 5/01/09
5,000 New Hampshire Housing Finance Authority, FHLMC Multifamily 7/10 at 101.00 Aaa 5,259,100
Housing Remarketed Revenue Bonds, Countryside LP,
Series 1994, 6.100%, 7/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.5% (1.6% OF TOTAL INVESTMENTS)
3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,326,040
System Bonds, Series 2003C, 5.500%, 6/15/24 (Pre-refunded
to 6/15/13)
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 2,622,575
5.000%, 1/01/25 - FSA Insured
1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 1,577,370
5.000%, 1/01/19 - FGIC Insured
47
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 18.3% (11.9% OF TOTAL INVESTMENTS)
$ 5,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA $ 5,307,400
Transportation Revenue Refunding Bonds, Series 2002A,
5.125%, 11/15/21 - FGIC Insured
New York City, New York, General Obligation Bonds,
Fiscal Series 1996J:
55 5.875%, 2/15/19 (Pre-refunded to 2/15/06) 2/06 at 101.50 A+*** 56,295
40 5.875%, 2/15/19 2/06 at 101.50 A+ 40,861
4,265 New York City, New York, General Obligation Bonds, 10/13 at 100.00 A+ 4,498,722
Fiscal Series 2003D, 5.250%, 10/15/22
1,200 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A+ 1,288,020
Fiscal Series 2004B, 5.250%, 8/01/15
4,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A+ 4,237,840
Fiscal Series 2004C, 5.250%, 8/15/20
3,500 New York City, New York, General Obligation Bonds, 6/15 at 100.00 A+ 3,564,155
Fiscal Series 2005O, 5.000%, 6/01/30
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 1998A:
360 5.125%, 8/15/21 (Pre-refunded to 8/15/07) 8/07 at 101.00 AAA 376,333
1,435 5.125%, 8/15/21 8/07 at 101.00 AAA 1,493,232
1,500 Dormitory Authority of the State of New York, State and 7/14 at 100.00 AA- 1,591,515
Local Appropriation Lease Bonds, Upstate Community
Colleges, Series 2004B, 5.250%, 7/01/19
10,000 Dormitory Authority of the State of New York, Revenue Bonds, 5/10 at 101.00 AAA 10,964,200
State University Educational Facilities Revenue Bonds,
1999 Resolution, Series 2000B, 5.500%, 5/15/30
(Pre-refunded to 5/15/10) -FSA Insured
900 New York State Medical Care Facilities Finance Agency, 2/06 at 100.00 AAA 904,923
FHA-Insured Mortgage Revenue Bonds, Hospital and Nursing
Home Projects, Series 1992B, 6.200%, 8/15/22
3,245 New York State Medical Care Facilities Finance Agency, 2/06 at 100.00 Aa2 3,306,363
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+ 3,450,688
Purpose Revenue Bonds, Series 2003C, 5.250%, 6/01/22
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
6,460 5.000%, 1/01/25 - FSA Insured 7/15 at 100.00 AAA 6,744,046
2,580 5.000%, 1/01/26 - FSA Insured 7/15 at 100.00 AAA 2,695,507
1,000 New York State Urban Development Corporation, Subordinate 7/14 at 100.00 A 1,046,210
Lien Corporate Purpose Bonds, Series 2004A, 5.125%, 1/01/22
3,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AA- 3,231,180
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.1% (2.6% OF TOTAL INVESTMENTS)
10,300 North Carolina Eastern Municipal Power Agency, Power System No Opt. Call AAA 12,158,532
Revenue Refunding Bonds, Series 1993B, 6.000%, 1/01/22 -
CAPMAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.7% (1.8% OF TOTAL INVESTMENTS)
2,110 Cleveland-Rock Glen Housing Assistance Corporation, Ohio, 1/06 at 102.00 AAA 2,154,648
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 Aa2 2,077,100
Obligation Bonds, Series 2001, 5.000%, 12/01/24
4,000 Ohio, Solid Waste Revenue Bonds, Republic Services Inc., No Opt. Call BBB+ 3,853,000
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- 1,883,709
1,990 5.000%, 8/01/23 8/14 at 100.00 AA- 2,079,490
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 3,138,990
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 -
MBIA Insured
1,655 Falls Township Hospital Authority, Pennsylvania, FHA-Insured 2/06 at 100.00 AAA 1,677,640
Revenue Refunding Bonds, Delaware Valley Medical Center,
Series 1992, 7.000%, 8/01/22
48
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.7% (1.8% OF TOTAL INVESTMENTS)
$ 7,655 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB $ 8,086,130
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.8% (5.1% OF TOTAL INVESTMENTS)
2,500 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,584,675
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 4,592,213
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/23
3,340 Greenville County School District, South Carolina, Installment 12/13 at 100.00 AA- 3,528,910
Purchase Revenue Bonds, Series 2003, 5.250%, 12/01/19
3,620 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AAA 3,834,919
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- 1,570,860
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+ 6,086,080
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 1,215,040
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+ 1,843,257
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7% (0.5% OF TOTAL INVESTMENTS)
2,060 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 AAA 2,156,882
Tennessee, Hospital Revenue Refunding and Improvement
Bonds, Johnson City Medical Center, Series 1998C,
5.125%, 7/01/25 (Pre-refunded to 7/01/23) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.4% (3.5% OF TOTAL INVESTMENTS)
1,075 Brazos River Authority, Texas, Pollution Control Revenue 10/13 at 101.00 Baa2 1,189,842
Bonds, TXU Energy Company LLC Project, 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 3,185,310
Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series 2005:
400 5.250%, 8/15/21 No Opt. Call BBB- 409,716
500 5.125%, 8/15/26 No Opt. Call BBB- 496,170
2,265 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 2,393,290
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.250%, 5/15/25 - AMBAC Insured
2,000 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 2,096,260
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
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 3,785,427
2,250 5.250%, 2/15/19 - AMBAC Insured 8/13 at 100.00 AAA 2,416,230
110 Victoria Housing Finance Corporation, Texas, FNMA Single No Opt. Call Aaa 111,427
Family Mortgage Revenue Refunding Bonds, Series 1995,
8.125%, 1/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3% (0.2% OF TOTAL INVESTMENTS)
625 Utah Housing Corporation, Single Family Mortgage Bonds, 7/11 at 100.00 Aa2 640,363
Series 2001D, 5.500%, 1/01/21 (Alternative Minimum Tax)
45 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/07 at 102.00 AA 45,195
Series 1996C, 6.450%, 7/01/14 (Alternative Minimum Tax)
315 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AA 324,441
Series 1997F, 5.750%, 7/01/15 (Alternative Minimum Tax)
49
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.3% (7.4% OF TOTAL INVESTMENTS)
$ 2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA $ 2,765,200
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
7,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 7,593,180
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
6,160 King County Public Hospital District 2, Washington, Limited 6/11 at 101.00 AAA 6,463,380
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 5,410,350
Refunding and Improvement Bonds, Series 2001,
5.500%, 3/01/12 - FSA Insured
1,000 Skagit County Public Hospital District 1, Washington, Revenue No Opt. Call Baa3 1,070,240
Bonds, Skagit Valley Hospital, Series 2003, 6.000%, 12/01/23
9,750 Washington, General Obligation Refunding Bonds, No Opt. Call Aa1 10,593,668
Series 1992A and 1992AT-6, 6.250%, 2/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.9% (1.2% OF TOTAL INVESTMENTS)
3,150 West Virginia Water Development Authority, Loan Program II 11/13 at 101.00 AAA 3,395,354
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 2,210,520
Revenue Bonds, Series 2003A, 5.500%, 10/01/23 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 5.1% (3.3% OF TOTAL INVESTMENTS)
455 Wisconsin Housing and Economic Development Authority, 1/06 at 100.00 AA 455,743
Housing Revenue Bonds, Series 1992A, 6.850%, 11/01/12
5,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101.00 AA 5,449,150
Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/18 -
RAAI Insured
5,670 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 5,942,044
Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%, 7/01/30
2,350 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA- 2,415,401
Bonds, Froedtert and Community Health Obligated Group,
Series 2001, 5.375%, 10/01/30
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/14 at 100.00 BBB+ 1,043,510
Bonds, Fort Healthcare Inc., Series 2004, 5.375%, 5/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
$ 472,834 Total Long-Term Investments (cost $438,710,727) - 153.4% 459,497,918
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.1% (0.0% OF TOTAL INVESTMENTS)
200 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's VMIG-1 200,000
Regional Medical Center, Variable Rate Demand Obligations,
Series 2005, 2.730%, 7/01/35 - FSA Insured +
- ------------------------------------------------------------------------------------------------------------------------------------
$ 200 Total Short-Term Investments (cost $200,000) 200,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $438,910,727) - 153.5% 459,697,918
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 4,725,037
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.1)% (165,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 299,422,955
====================================================================================================================
(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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
** 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) Portion of security purchased on a delayed delivery
basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in
effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
50
Nuveen Municipal High Income Opportunity Fund (NMZ)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL - 2.1% (1.5% OF TOTAL INVESTMENTS)
Charter Mac Equity Issuer Trust, Preferred Shares, Series 2004A-4:
$ 5,000 6.000%, 12/31/45 (Alternative Minimum Tax) No Opt. Call A3 $ 5,465,450
(Mandatory put 4/30/19)
1,000 5.750%, 12/31/45 (Mandatory put 4/30/15) No Opt. Call A3 1,065,820
1,000 GMAC Municipal Mortgage Trust, Series B-1, 5.600%, 10/31/39 No Opt. Call Baa1 1,029,020
(Alternative Minimum Tax) (Mandatory put 10/31/19)
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.4% (1.7% OF TOTAL INVESTMENTS)
2,000 Baldwin County Eastern Shore Healthcare Authority, Alabama, 4/06 at 102.00 N/R 2,049,180
Hospital Revenue Bonds, Thomas Hospital, Series 1996,
6.750%, 4/01/15
6,200 Baldwin County Eastern Shore Healthcare Authority, Alabama, 4/08 at 102.00 N/R*** 6,618,686
Hospital Revenue Bonds, Thomas Hospital, Series 1998,
5.750%, 4/01/27 (Pre-refunded to 4/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 4.6% (3.3% OF TOTAL INVESTMENTS)
576 Estrella Mountain Ranch Community Facilities District, Goodyear, 7/10 at 102.00 N/R 633,381
Arizona, Special Assessment Lien Bonds, Series 2001A,
7.875%, 7/01/25
6,720 Maricopa County Industrial Development Authority, Arizona, 1/11 at 103.00 BBB 6,731,760
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 351,957
790 7.250%, 11/01/23 11/11 at 103.00 N/R 797,142
1,715 7.500%, 11/01/33 11/11 at 103.00 N/R 1,731,601
550 Pima County Industrial Development Authority, Arizona, 12/14 at 100.00 BBB- 558,393
Charter School Revenue Bonds, Noah Webster Basic Schools
Inc., Series 2004, 6.125%, 12/15/34
1,645 Pima County Industrial Development Authority, Arizona, Charter 7/14 at 100.00 N/R 1,693,774
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*** 568,915
1,000 7.125%, 7/01/24 (Pre-refunded to 7/01/14) 7/14 at 100.00 N/R*** 1,196,510
1,150 Pinal County Industrial Development Authority, Arizona, 10/12 at 100.00 A 1,183,511
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, Charter 9/14 at 100.00 BBB- 1,009,170
School Revenue Bonds, Arizona Agribusiness and Equine
Center Charter School, Series 2004A, 5.850%, 9/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 19.0% (13.4% OF TOTAL INVESTMENTS)
8,000 Alameda Public Finance Authority, California, Revenue Bond No Opt. Call N/R 7,946,320
Anticipation Notes, Alameda Power and Telecom,
Series 2004, 7.000%, 6/01/09
500 California Health Facilities Financing Authority, Health No Opt. Call A- 520,705
Facility Revenue Bonds, Catholic Healthcare West,
Series 2004I, 4.950%, 7/01/26 (Mandatory put 7/01/14)
1,005 California Health Facilities Financing Authority, Hospital 11/05 at 100.00 BB 1,005,070
Revenue Bonds, Downey Community Hospital, Series 1993,
5.750%, 5/15/15
3,360 California, General Obligation Bonds, Series 2003, 11/13 at 100.00 A 3,488,990
5.000%, 11/01/21
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- 1,129,916
1,170 5.100%, 6/01/23 12/13 at 100.00 A- 1,217,654
3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 3,102,480
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.000%, 6/01/25
51
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,020 California Statewide Community Development Authority, 1/14 at 100.00 N/R $ 1,076,049
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 4,150,056
Senior Lien Revenue Bonds, East Valley Tourist Authority,
Series 2003B, 9.250%, 10/01/20 (a)
2,925 California Statewide Community Development Authority, 3/14 at 102.00 N/R 3,045,188
Revenue Bonds, Epidaurus Project, Series 2004A,
7.750%, 3/01/34
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 1,223,190
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 6,274,125
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
4,975 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 Aaa 5,582,796
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.625%, 6/01/33 (Pre-refunded to 6/01/13)
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 515,960
1,000 5.850%, 9/01/33 9/14 at 100.00 N/R 1,031,060
2,500 Independent Cities Lease Finance Authority, California, Revenue 5/14 at 100.00 N/R 2,774,125
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 1,075,951
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 1,271,820
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, Special 9/13 at 102.00 N/R 3,550,178
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- 295,818
California, Sublease Revenue Bonds, Los Angeles
International Airport, American Airlines Inc. Terminal 4 Project,
Series 2002B, 7.500%, 12/01/24 (Alternative Minimum Tax)
2,950 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 2,908,877
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, Special Tax Bonds, Community Facilities District,
Series 2004:
800 5.550%, 9/01/29 9/14 at 100.00 N/R 816,720
1,250 5.650%, 9/01/34 9/14 at 100.00 N/R 1,276,150
1,555 Murrieta Valley Unified School District, Riverside County, 9/11 at 100.00 N/R 1,590,967
California, Special Tax Bonds, Community Facilities
District 2000-1, Series 2004B, 5.300%, 9/01/34
1,000 Oceanside, California, Special Tax Revenue Bonds, Community 3/14 at 100.00 N/R 1,032,980
Facilities District - Morro Hills, 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 517,065
1,625 5.600%, 8/15/28 8/12 at 101.00 N/R 1,670,776
1,000 5.625%, 8/15/34 8/12 at 101.00 N/R 1,022,670
2,250 San Diego County, California, Certificates of Participation, 9/12 at 100.00 BBB- 2,256,795
Developmental Services Foundation, Series 2002,
5.500%, 9/01/27
3,895 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 4,091,347
Tax Bonds, Community Facilities District 2001-1, Series 2004A,
6.125%, 9/01/39
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.6% (6.8% OF TOTAL INVESTMENTS)
925 Bradburn Metropolitan District 3, Colorado, General Obligation 12/13 at 101.00 N/R 988,612
Bonds, Series 2003, 7.500%, 12/01/33
5,600 Buffalo Ridge Metropolitan District, Colorado, Limited 12/13 at 101.00 N/R 5,985,112
Obligation Assessment Bonds, Series 2003, 7.500%, 12/01/33
52
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 920 Colorado Educational and Cultural Facilities Authority, 7/08 at 100.00 N/R*** $ 989,497
Charter School Revenue Bonds, Compass Montessori
Elementary Charter School, Series 2000, 7.750%, 7/15/31
(Pre-refunded to 7/15/08)
650 Colorado Educational and Cultural Facilities Authority, 9/11 at 100.00 Ba1*** 757,218
Charter School Revenue Bonds, Bromley East Charter
School, Series 2000A, 7.250%, 9/15/30 (Pre-refunded
to 9/15/11)
400 Colorado Educational and Cultural Facilities Authority, 12/10 at 101.00 BBB 441,172
Charter School Revenue Bonds, Academy Charter School -
Douglas County School District Re. 1, Series 2000,
6.875%, 12/15/20
1,450 Colorado Educational and Cultural Facilities Authority, 6/11 at 100.00 Ba1 1,497,401
Charter School Revenue Bonds, Weld County School
District 6 - Frontier Academy, Series 2001, 7.250%, 6/01/20
1,809 Colorado Educational and Cultural Facilities Authority, 2/12 at 100.00 N/R 1,899,938
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 3,723,685
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:
875 7.500%, 12/01/33 (Pre-refunded to 12/01/11) 12/11 at 100.00 AAA 1,055,556
500 7.300%, 12/01/23 (Pre-refunded to 12/01/11) 12/11 at 100.00 AAA 597,770
1,500 Colorado Educational and Cultural Facilities Authority, 6/14 at 100.00 N/R 1,651,755
Independent School Improvement Revenue Bonds, Heritage
Christian School of Northern Colorado, Series 2004A,
7.500%, 6/01/34
2,000 Colorado Educational and Cultural Facilities Authority, Revenue 6/14 at 100.00 N/R 2,106,320
Bonds, Colorado Lutheran High School Association,
Series 2004A, 7.500%, 6/01/24
900 Colorado Housing and Finance Authority, Multifamily Project 10/12 at 100.00 AA 916,479
Bonds, Class II Series 2002C-6, 5.300%, 10/01/42
4,300 Denver Health and Hospitals Authority, Colorado, Revenue 12/14 at 100.00 BBB 4,699,857
Bonds, Series 2004A, 6.250%, 12/01/33
1,000 Denver, Colorado, FHA-Insured Multifamily Housing Mortgage 7/08 at 102.00 AAA 1,019,480
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 815,376
Terminal Revenue Bonds, Series 1996, 7.500%, 5/01/21
(Alternative Minimum Tax)
1,250 Mesa County, Colorado, Residential Care Facilities Mortgage 12/11 at 101.00 AA 1,303,200
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 No Opt. Call N/R 2,252,680
Obligation Revenue Bonds, Series 2003CR-2,
7.875%, 12/01/32 (Mandatory put 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 253,418
315 6.375%, 12/01/23 12/13 at 100.00 N/R 322,762
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 520,240
500 6.750%, 12/01/33 12/13 at 100.00 N/R 516,120
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,025 Eastern Connecticut Resource Recovery Authority, Solid 1/06 at 100.00 BBB 1,025,000
Waste Revenue Bonds, Wheelabrator Lisbon Project,
Series 1993A, 5.500%, 1/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 9.2% (6.5% OF TOTAL INVESTMENTS)
4,445 Bartram Springs Community Development District, Duval 5/13 at 102.00 N/R 4,842,116
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- 791,819
Learjet Inc., Series 2000, 7.500%, 11/01/20 (Alternative
Minimum Tax)
1,190 Century Gardens Community Development District, 5/14 at 101.00 N/R 1,228,854
Miami-Dade County, Florida, Special Assessment Revenue
Bonds, Series 2004, 5.900%, 5/01/34
53
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
Islands at Doral Northeast Community Development District,
Miami-Dade County, Florida, Special Assessment Bonds, Series 2004:
$ 485 6.125%, 5/01/24 5/14 at 101.00 N/R $ 517,738
450 6.250%, 5/01/34 5/14 at 101.00 N/R 475,227
6,880 Lee County Industrial Development Authority, Florida, No Opt. Call B2 5,972,253
Multifamily Housing Revenue Bonds, Legacy at Lehigh
Project, Senior Series 2003A, 6.000%, 12/01/43
640 Lexington Community Development District, Florida, Special 5/14 at 101.00 N/R 664,256
Assessment Revenue Bonds, Series 2004, 6.125%, 5/01/34
3,940 MMA Financial CDD Junior Securitization Trust, Florida, 11/07 at 100.00 N/R 3,946,816
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 3,422,269
County, Florida, Special Assessment Revenue Bonds,
Series 2004A, 6.050%, 5/01/35
3,985 Palm Beach County Housing Finance Authority, Florida, 7/09 at 103.00 N/R 4,013,533
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, Florida, 5/14 at 101.00 N/R 1,787,431
Special Assessment Revenue Bonds, Series 2004,
6.125%, 5/01/34
Stonegate Community Development District, Florida, Special
Assessment Revenue Bonds, Series 2004:
485 6.000%, 5/01/24 5/14 at 101.00 N/R 512,495
500 6.125%, 5/01/34 5/14 at 101.00 N/R 522,695
Westchester Community Development District 1, Florida,
Special Assessment Bonds, Series 2003:
150 6.000%, 5/01/23 5/13 at 101.00 N/R 157,059
3,750 6.125%, 5/01/35 5/13 at 101.00 N/R 3,915,450
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,975 Fulton County Residential Care Facilities Authority, Georgia, 12/13 at 102.00 N/R 2,172,994
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 918,135
Revenue Bonds, Canterbury Court, Series 2004A,
6.125%, 2/15/34
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.9% (7.7% OF TOTAL INVESTMENTS)
2,000 Chicago, Illinois, Certificates of Participation Tax Increment 12/08 at 100.00 N/R 2,105,200
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+ 1,289,736
Physicians Group Ltd., Series 1998, 5.500%, 11/15/19
795 Illinois Health Facilities Authority, Revenue Bonds, Victory 8/07 at 101.00 BBB- 792,965
Health Services, Series 1997A, 5.750%, 8/15/27
8,800 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 9,197,496
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 5,109,650
10,000 5.100%, 8/15/33 8/13 at 100.00 AAA 10,176,700
5,000 5.150%, 2/15/37 8/13 at 100.00 AAA 5,110,600
305 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/06 at 100.00 BBB- 305,162
Proctor Community Hospital, Series 1991, 7.375%, 1/01/23
1,650 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 1,725,652
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
1,000 Lombard Public Facilities Corporation, Illinois, Third Tier 4/06 at 100.00 N/R 986,660
Conference Center and Hotel Revenue Bonds, Series 2005C-3,
4.000%, 1/01/36
2,065 Plano Special Service Area 1, Illinois, Special Tax Bonds, 3/14 at 102.00 N/R 2,089,119
Lakewood Springs Project, Series 2004A, 6.200%, 3/01/34
54
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5% (2.5% OF TOTAL INVESTMENTS)
$ 6,360 Carmel Redevelopment District, Indiana, Tax Increment Revenue 7/12 at 103.00 N/R $ 6,365,406
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- 535,030
2,500 6.000%, 3/01/34 3/14 at 101.00 BBB- 2,624,850
1,000 St. Joseph County, Indiana, Economic Development Revenue 7/15 at 103.00 N/R 1,057,360
Bonds, Chicago Trail Village Apartments, Series 2005A,
7.500%, 7/01/35
1,865 Whitley County, Indiana, Solid Waste and Sewerage Disposal 11/10 at 102.00 N/R 2,021,306
Revenue Bonds, Steel Dynamics Inc., Series 1998,
7.250%, 11/01/18 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.5% (4.6% OF TOTAL INVESTMENTS)
2,590 Carter Plantation Community Development District, Livingston 11/05 at 100.00 N/R 2,524,577
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 10,058,645
Smurfit-Stone Container Corporation, Series 2003,
7.450%, 3/01/24 (Alternative Minimum Tax)
2,620 Lafourche Parish Housing Authority, Louisiana, GNMA 1/11 at 105.00 AAA 2,800,623
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 897,645
805 8.500%, 3/01/24 (Alternative Minimum Tax) 3/10 at 102.00 N/R 833,650
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)
1,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,043,460
Settlement Asset-Backed Bonds, Series 2001B,
5.875%, 5/15/39
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,155 Portland Housing Development Corporation, Maine, Section 8 2/14 at 102.00 Baa2 3,258,800
Assisted Senior Living 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, 9/07 at 100.00 N/R 2,030,620
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
3,800 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 3,943,070
Revenue Bonds, MedStar Health, Series 2004,
5.500%, 8/15/33
7,435 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/06 at 101.00 B3 6,128,447
Health Corporation, Series 1994, 5.300%, 7/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.4% (1.0% OF TOTAL INVESTMENTS)
1,350 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB- 1,413,855
Revenue Bonds, Northern Berkshire Community Services Inc.,
Series 2004B, 6.375%, 7/01/34
3,470 Massachusetts Housing Finance Agency, Rental Housing 7/10 at 100.00 AAA 3,717,585
Mortgage Revenue Bonds, Series 2000H, 6.650%, 7/01/41
(Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.7% (3.3% OF TOTAL INVESTMENTS)
1,315 Countryside Charter School, Berrien County, Michigan, 4/09 at 100.00 N/R 1,317,051
Charter School Revenue Bonds, Series 1999, 7.000%, 4/01/29
915 Countryside Charter School, Berrien County, Michigan, 4/09 at 100.00 N/R 943,832
Charter School Revenue Bonds, Series 2000, 8.000%, 4/01/29
1,450 Detroit Local Development Finance Authority, Michigan, Tax 5/09 at 101.00 BB- 1,379,603
Increment Bonds, Series 1998A, 5.500%, 5/01/21
3,580 Michigan State Hospital Finance Authority, Hospital Revenue 2/06 at 101.00 BB- 3,438,447
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993B, 5.500%, 8/15/23
2,740 Nataki Talibah Schoolhouse, Wayne County, Michigan, 6/10 at 102.00 N/R 2,913,716
Certificates of Participation, Series 2000, 8.250%, 6/01/30
55
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
Pontiac Hospital Finance Authority, Michigan, Hospital Revenue
Refunding Bonds, NOMC Obligated Group, Series 1993:
$ 1,000 6.000%, 8/01/13 2/06 at 100.00 BB $ 998,480
1,500 6.000%, 8/01/18 2/06 at 100.00 BB 1,448,055
1,800 6.000%, 8/01/23 2/06 at 100.00 BB 1,687,824
2,500 Saginaw Hospital Finance Authority, Michigan, Hospital Revenue 7/14 at 100.00 A 2,556,000
Bonds, Covenant Medical Center, Series 2004G,
5.125%, 7/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.9% (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 102,163
100 7.300%, 7/01/15 7/10 at 100.00 N/R 102,157
1,325 Ramsey, Anoka County, Minnesota, Charter School Lease 6/14 at 102.00 N/R 1,341,377
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 5,123,800
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 1,141,613
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 1,453,266
Charter School Revenue Bonds, Higher Ground Academy
Charter School, Series 2004A, 6.625%, 12/01/23
1,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 5/15 at 100.00 N/R 1,012,990
HealthEast Midway Campus, Series 2005B, 6.000%, 5/01/30
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,000 Mississippi Home Corporation, Multifamily Housing Revenue 11/19 at 101.00 N/R 1,013,200
Bonds, Tupelo Personal Care Apartments, Series 2004-2,
6.125%, 9/01/34
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.4% (1.0% OF TOTAL INVESTMENTS)
2,380 Kansas City Industrial Development Authority, Missouri, 2/14 at 102.00 N/R 2,497,477
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, Missouri, 12/05 at 100.00 N/R 2,542,750
Revenue Bonds, Kiel Center Multipurpose Arena,
Series 1992, 7.875%, 12/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 2.1% (1.5% OF TOTAL INVESTMENTS)
5,200 Montana Board of Investments, Exempt Facility Revenue 7/10 at 101.00 B1 5,402,124
Bonds, Stillwater Mining Company, Series 2000,
8.000%, 7/01/20 (Alternative Minimum Tax)
2,000 Montana Board of Investments, Resource Recovery Revenue No Opt. Call N/R 1,994,220
Bonds, Yellowstone Energy LP, Series 1993, 7.000%, 12/31/19
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.3% (1.6% OF TOTAL INVESTMENTS)
1,500 Clark County, Nevada, Local Improvement Bonds, Mountain's 2/06 at 103.00 N/R 1,552,590
Edge Special Improvement District 142, Series 2003,
6.375%, 8/01/23
2,000 Clark County, Nevada, Industrial Development Revenue Bonds, No Opt. Call B- 1,984,500
Nevada Power Company, Series 1995A, 5.600%, 10/01/30
(Alternative Minimum Tax)
3,670 Clark County, Nevada, Industrial Development Revenue Bonds, No Opt. Call B- 3,614,032
Nevada Power Company Project, Series 1995C,
5.500%, 10/01/30
500 Clark County, Nevada, Industrial Development Revenue Bonds, No Opt. Call B- 500,005
Nevada Power Company, Series 1997A, 5.900%, 11/01/32
(Alternative Minimum Tax)
550 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 573,694
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40
56
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.9% (2.8% OF TOTAL INVESTMENTS)
$ 1,510 New Jersey Economic Development Authority, Special Facilities 9/09 at 101.00 B $ 1,224,852
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- 556,370
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 8,926,369
2,760 7.000%, 6/01/41 6/13 at 100.00 BBB 3,230,939
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.3% (0.9% OF TOTAL INVESTMENTS)
4,500 Jicarilla Apache Nation, New Mexico, Revenue Bonds, 9/13 at 101.00 N/R 4,624,245
Series 2002A, 5.000%, 9/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.4% (2.4% OF TOTAL INVESTMENTS)
500 New York City Industrial Development Agency, New York, 3/09 at 103.00 N/R 531,635
Liberty Revenue Bonds, 7 World Trade Center, Series 2005A,
6.250%, 3/01/15
1,700 New York City Industrial Development Agency, New York, 8/06 at 100.00 CCC 1,255,501
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 B- 762,008
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002A, 8.000%, 8/01/12 (Alternative
Minimum Tax)
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003B-1C:
4,000 5.500%, 6/01/21 6/13 at 100.00 AA- 4,333,240
5,000 5.500%, 6/01/22 6/13 at 100.00 AA- 5,386,250
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6% (1.1% OF TOTAL INVESTMENTS)
5,500 North Carolina Capital Facilities Finance Agency, Solid Waste 7/12 at 106.00 N/R 5,549,225
Facilities Revenue Bonds, Liberty Tire Services of
North Carolina LLC, Series 2004A, 6.750%, 7/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.9% (2.8% 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 477,595
400 5.800%, 1/01/18 1/08 at 102.00 B 367,520
3,375 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/14 at 102.00 N/R 3,374,933
Revenue Bonds, Bond Fund Program - Garfield Heights
Project, Series 2004D, 5.250%, 5/15/23
7,600 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 7,645,904
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+ 798,248
Bonds, Cargill Inc., Series 2004A, 4.800%, 3/01/22
1,275 Trumbull County, Ohio, Sewerage Disposal Revenue Bonds, No Opt. Call BB- 1,277,321
General Motors Corporation, Series 1994, 6.750%, 7/01/14
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.2% (3.0% 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 1,307,940
11,680 5.625%, 8/15/29 (Pre-refunded to 8/15/09) 8/09 at 101.00 AAA 12,679,107
1,335 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, 12/05 at 102.00 B- 1,144,589
American Airlines Inc., Series 1995, 6.250%, 6/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.8% (3.4% 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 830,720
6,455 9.250%, 11/15/30 11/10 at 102.00 B1 7,687,260
2,000 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 1,922,340
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.750%, 10/15/37
57
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 190 Monroeville Hospital Authority, Pennsylvania, Revenue Bonds, No Opt. Call B1 $ 190,253
Forbes Health System, Series 1992, 7.000%, 10/01/13
300 Monroeville Hospital Authority, Pennsylvania, Revenue Bonds, 4/06 at 102.00 B1 305,550
Forbes Health System, Series 1995, 6.250%, 10/01/15
500 New Morgan Industrial Development Authority, Pennsylvania, 4/06 at 100.00 BB- 496,700
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company Inc., Series 1994, 6.500%, 4/01/19 (Alternative
Minimum Tax)
600 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B+ 642,648
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
400 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B+ 428,432
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2002A, 6.750%, 12/01/36 (Alternative Minimum Tax)
4,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 4,284,320
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.800%, 6/01/23 (Alternative Minimum Tax) -
ACA Insured
230 Pennsylvania Higher Educational Facilities Authority, Revenue No Opt. Call B1 230,338
Bonds, Allegheny General Hospital, Series 1991A,
7.250%, 9/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,500 Central Falls Detention Facility Corporation, Rhode Island, 7/15 at 103.00 N/R 1,559,595
Detention Facility Revenue Bonds, Series 2005,
7.250%, 7/15/35
3,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 3,176,130
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.9% (1.4% OF TOTAL INVESTMENTS)
2,755 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,870,875
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/19
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Bonds, Series 1991:
500 6.750%, 1/01/19 - FGIC Insured No Opt. Call AAA 629,360
1,375 6.750%, 1/01/19 - FGIC Insured No Opt. Call AAA 1,691,333
1,150 South Carolina JOBS Economic Development Authority, 8/11 at 100.00 AA 1,186,133
Hospital Revenue Bonds, Georgetown Memorial Hospital,
Series 2001, 5.250%, 2/01/21 - RAAI Insured
490 Tobacco Settlement Revenue Management Authority, No Opt. Call BBB 556,341
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/30
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.0% (0.7% OF TOTAL INVESTMENTS)
3,500 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 3,688,650
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.7% (6.2% OF TOTAL INVESTMENTS)
1,200 Dallas-Ft. Worth International Airport Facility Improvement 11/05 at 100.00 CCC 871,704
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 2,056,666
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 Caa2 366,917
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 1,981,533
6,600 7.125%, 9/01/34 9/14 at 100.00 N/R 7,113,876
585 Gulf Coast Industrial Development Authority, Texas, Solid 4/12 at 100.00 Ba1 659,769
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 3,069,870
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- 1,483,912
Bonds, Continental Air Lines Inc., Series 1998B,
5.700%, 7/15/29 (Alternative Minimum Tax)
975 Houston, Texas, Airport System Special Facilities Revenue 7/09 at 101.00 B- 716,245
Bonds, Continental Air Lines Inc., Series 1998C,
5.700%, 7/15/29 (Alternative Minimum Tax)
58
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
Houston, Texas, Airport System Special Facilities Revenue
Bonds, Continental Air Lines Inc., Series 2001E:
$ 600 7.375%, 7/01/22 (Alternative Minimum Tax) 7/11 at 101.00 B- $ 563,358
5,350 6.750%, 7/01/29 (Alternative Minimum Tax) 7/11 at 101.00 B- 4,621,170
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 274,335
1,400 7.125%, 2/15/34 2/14 at 101.00 N/R 1,531,572
5,850 Texas Department of Housing and Community Affairs, 7/21 at 100.00 N/R 5,852,106
Multifamily Housing Revenue Bonds, Humble Parkway
Townhomes, Series 2004, 6.600%, 1/01/41 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 3.4% (2.4% OF TOTAL INVESTMENTS)
5,000 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 5,465,800
Refinery Project - Hovensa LLC, Series 2003,
6.125%, 7/01/22 (Alternative Minimum Tax)
3,300 Virgin Islands Public Finance Authority, Senior Secured Lien 7/14 at 100.00 BBB 3,552,483
Revenue Bonds, Refinery Project - Hovensa LLC, Series 2004,
5.875%, 7/01/22
3,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AA 3,100,140
Loan Note, Series 2003, 5.000%, 10/01/26 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 4.2% (3.0% 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- 1,401,280
3,000 0.000%, 8/15/15 8/08 at 68.82 BB- 1,764,750
9,000 0.000%, 8/15/19 8/08 at 54.38 BB- 4,164,300
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- 1,252,280
4,250 5.500%, 8/15/28 8/08 at 102.00 BB- 4,382,005
1,850 0.000%, 8/15/30 8/08 at 28.38 BB- 447,589
650 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 672,230
Horse Center Revenue Bonds, Series 2001A, 7.400%, 7/15/21
1,000 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 998,430
Horse Center Revenue Refunding Bonds, Series 2001C,
6.850%, 7/15/21
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.6% (2.5% OF TOTAL INVESTMENTS)
3,000 Skagit County Public Hospital District 1, Washington, Revenue 12/13 at 100.00 Baa3 3,221,460
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 1,887,305
4,725 6.000%, 1/01/34 - ACA Insured 1/14 at 100.00 A 5,075,924
2,500 5.250%, 1/01/34 - ACA Insured 1/14 at 100.00 A 2,525,450
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 5.7% (4.1% OF TOTAL INVESTMENTS)
550 Lac Courte Oreilles Band of Lake Superior Chippewa Indians, 12/14 at 101.00 N/R 546,700
Wisconsin, Revenue Bonds, Series 2003A, 7.750%, 6/01/16
300 Wisconsin Health and Educational Facilities Authority, Revenue 7/06 at 102.00 N/R 307,291
Bonds, Milwaukee Catholic Home Inc., Series 1996,
7.250%, 7/01/17
500 Wisconsin Health and Educational Facilities Authority, Revenue No Opt. Call N/R 500,303
Bonds, Oakwood Village Obligated Group, Series 2000A,
7.000%, 8/15/15
5,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 101.00 A 5,284,100
Bonds, Wheaton Franciscan Services Inc., Series 2002,
5.750%, 8/15/30
59
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
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 $ 2,357,130
9,380 5.600%, 2/15/29 2/09 at 101.00 BBB+ 9,579,886
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 888,440
1,000 6.250%, 4/01/34 4/14 at 100.00 N/R 1,012,980
- ------------------------------------------------------------------------------------------------------------------------------------
$ 497,125 Total Long-Term Investments (cost $476,990,194) - 141.3% 504,640,205
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 7,385,218
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (43.4)% (155,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% 357,025,423
====================================================================================================================
(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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
** 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.
(a) The issuer has received a preliminary adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
See accompanying notes to financial statements.
60
Statement of
ASSETS AND LIABILITIES October 31, 2005
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $815,742,549,
$739,748,470, $1,179,639,042, $438,910,727
and $476,990,194, respectively) $860,916,751 $788,379,742 $1,260,517,194 $459,697,918 $504,640,205
Cash 34,770 2,294,368 -- 15,596 --
Receivables:
Interest 13,712,143 12,728,399 20,987,151 6,631,578 9,503,317
Investments sold 7,953,635 207,082 1,490,000 -- 340,000
Other assets 56,491 70,092 79,535 41,117 10,753
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 882,673,790 803,679,683 1,283,073,880 466,386,209 514,494,275
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 2,900,463 -- 1,812,849
Payable for investments purchased 27,076,031 -- -- 1,545,313 --
Accrued expenses:
Management fees 449,319 422,070 664,383 248,078 180,876
Other 201,225 184,816 294,373 114,789 320,581
Preferred share dividends payable 90,394 78,600 137,985 55,074 154,546
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 27,816,969 685,486 3,997,204 1,963,254 2,468,852
- ------------------------------------------------------------------------------------------------------------------------------------
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 $553,856,821 $523,994,197 $ 827,076,676 $299,422,955 $357,025,423
====================================================================================================================================
Common shares outstanding 35,748,959 33,887,474 54,204,488 20,091,018 23,248,122
====================================================================================================================================
Net asset value per Common share
outstanding (net assets applicable
to Common shares, divided by Common
shares outstanding) $ 15.49 $ 15.46 $ 15.26 $ 14.90 $ 15.36
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 357,490 $ 338,875 $ 542,045 $ 200,910 $ 232,481
Paid-in surplus 498,308,982 471,842,025 755,082,993 279,090,016 328,797,000
Undistributed (Over-distribution of)
net investment income 3,934,793 4,579,876 5,379,712 (60,808) 763,211
Accumulated net realized gain (loss)
from investments 6,081,354 (1,397,851) (14,806,226) (594,354) (417,280)
Net unrealized appreciation of investments 45,174,202 48,631,272 80,878,152 20,787,191 27,650,011
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $553,856,821 $523,994,197 $ 827,076,676 $299,422,955 $357,025,423
====================================================================================================================================
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.
61
Statement of
OPERATIONS Year Ended October 31, 2005
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $44,148,106 $42,298,069 $65,179,818 $22,718,293 $30,992,483
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 5,347,579 5,007,510 7,883,007 2,958,746 3,695,148
Preferred shares - auction fees 752,500 697,500 1,130,000 412,500 186,167
Preferred shares - dividend disbursing agent fees 50,000 50,000 60,000 30,000 15,994
Shareholders' servicing agent fees and expenses 69,975 61,901 102,965 39,620 2,480
Custodian's fees and expenses 205,139 165,926 261,927 111,305 168,227
Directors'/Trustees' fees and expenses 14,642 14,111 22,482 7,921 10,693
Professional fees 98,154 61,188 59,468 57,610 52,064
Shareholders' reports - printing and
mailing expenses 70,768 68,242 104,988 39,967 44,183
Stock exchange listing fees 13,923 13,204 21,120 10,469 1,965
Investor relations expense 115,478 108,404 171,927 63,626 69,442
Other expenses 58,179 50,705 78,332 38,308 18,382
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit,
expense reimbursement and legal fee refund 6,796,337 6,298,691 9,896,216 3,770,072 4,264,745
Custodian fee credit (8,872) (39,774) (45,754) (6,396) (2,703)
Expense reimbursement -- -- -- -- (1,625,837)
Legal fee refund (112,424) (62,458) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 6,675,041 6,196,459 9,850,462 3,763,676 2,636,205
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 37,473,065 36,101,610 55,329,356 18,954,617 28,356,278
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 6,082,899 960,964 2,451,781 (575,979) (419,282)
Change in net unrealized appreciation
(depreciation) of investments (20,140,785) (6,444,043) (14,338,193) (7,270,490) 12,786,268
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (14,057,886) (5,483,079) (11,886,412) (7,846,469) 12,366,986
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (5,597,765) (5,583,403) (8,862,398) (3,156,277) (3,009,376)
From accumulated net realized gains
from investments (283,920) -- -- (210,150) (126,806)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (5,881,685) (5,583,403) (8,862,398) (3,366,427) (3,136,182)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations $17,533,494 $25,035,128 $34,580,546 $7,741,721 $37,587,082
====================================================================================================================================
See accompanying notes to financial statements.
62
Statement of
CHANGES IN NET ASSETS
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
------------------------------ -----------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/05 10/31/04 10/31/05 10/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 37,473,065 $ 38,309,679 $ 36,101,610 $ 36,775,861
Net realized gain (loss) from investments 6,082,899 4,952,784 960,964 (2,412,210)
Change in net unrealized appreciation
(depreciation) of investments (20,140,785) 10,084,653 (6,444,043) 16,809,379
Distributions to Preferred Shareholders:
From net investment income (5,597,765) (2,792,857) (5,583,403) (2,441,256)
From accumulated net realized gains
from investments (283,920) -- -- (189,626)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 17,533,494 50,554,259 25,035,128 48,542,148
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (34,211,757) (36,034,950) (32,735,302) (33,809,362)
From accumulated net realized gains
from investments (3,628,521) -- -- (2,399,044)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (37,840,278) (36,034,950) (32,735,302) (36,208,406)
- ------------------------------------------------------------------------------------------------------------------------------------
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 (20,306,784) 14,519,309 (7,700,174) 12,333,742
Net assets applicable to Common shares
at the beginning of year 574,163,605 559,644,296 531,694,371 519,360,629
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of year $553,856,821 $574,163,605 $523,994,197 $531,694,371
====================================================================================================================================
Undistributed net investment income
at the end of year $ 3,934,793 $ 6,271,417 $ 4,579,876 $ 6,843,905
====================================================================================================================================
See accompanying notes to financial statements.
63
Statement of
CHANGES IN NET ASSETS (continued)
HIGH INCOME
QUALITY INCOME (NQU) PREMIER INCOME (NPF) OPPORTUNITY (NMZ)
----------------------------- ------------------------------ ----------------------------
FOR THE
PERIOD
11/19/03
(COMMENCEMENT
YEAR YEAR YEAR YEAR YEAR OF OPERATIONS)
ENDED ENDED ENDED ENDED ENDED THROUGH
10/31/05 10/31/04 10/31/05 10/31/04 10/31/05 10/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 55,329,356 $ 56,386,704 $ 18,954,617 $ 20,152,594 $ 28,356,278 $ 22,642,686
Net realized gain (loss)
from investments 2,451,781 680,647 (575,979) 3,300,711 (419,282) 1,565,331
Change in net unrealized
appreciation (depreciation)
of investments (14,338,193) 26,343,433 (7,270,490) 5,805,345 12,786,268 14,863,743
Distributions to Preferred
Shareholders:
From net investment income (8,862,398) (4,225,966) (3,156,277) (1,525,702) (3,009,376) (1,782,677)
From accumulated net realized
gains from investments -- -- (210,150) -- (126,806) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations 34,580,546 79,184,818 7,741,721 27,732,948 37,587,082 37,289,083
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (49,597,118) (52,361,550) (17,603,925) (19,789,658) (24,809,067) (20,632,463)
From accumulated net realized
gains from investments -- -- (2,706,087) -- (1,439,677) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (49,597,118) (52,361,550) (20,310,012) (19,789,658) (26,248,744) (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 -- -- -- -- 679,398 707,518
Preferred shares offering costs -- -- -- -- (15,476) (3,370,500)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- -- -- -- 663,922 328,266,268
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (15,016,572) 26,823,268 (12,568,291) 7,943,290 12,002,260 344,922,888
Net assets applicable to Common
shares at the beginning
of period 842,093,248 815,269,980 311,991,246 304,047,956 345,023,163 100,275
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares
at the end of period $827,076,676 $842,093,248 $299,422,955 $311,991,246 $357,025,423 $345,023,163
====================================================================================================================================
Undistributed net investment
income at the end of period $ 5,379,712 $ 8,510,236 $ (60,808) $ 1,726,402 $ 763,211 $ 227,378
====================================================================================================================================
See accompanying notes to financial statements.
64
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.
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 or certain U.S. territories.
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
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 the Adviser, the recording of the
organization expenses ($11,500) and its reimbursement by Nuveen Investments,
LLC, also a wholly owned subsidiary of Nuveen.
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.
Investment 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
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service or, in the absence of a pricing
service for a particular security, the Board of Directors/Trustees of the Funds,
or its designee, may establish fair market value using a wide variety of market
data including yields or prices of municipal bonds of comparable quality, type
of issue, coupon, maturity and rating, market quotes or indications of value
from securities dealers, evaluations of anticipated cash flows or collateral,
general market conditions and other information and analysis, including the
obligor's credit characteristics considered relevant by the pricing service or
the Board of Directors'/Trustees' designee. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
investments are valued at amortized cost, which approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments 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, 2005,
Investment Quality (NQM) and Premier Income (NPF) had when-issued and/or delayed
delivery purchase commitments of $17,619,549 and $1,545,313, respectively. There
were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
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 refunds presented on the
Statement of Operations for Investment Quality (NQM) and Select Quality (NQS)
reflect a refund of workout expenditures paid in a prior reporting period.
65
Notes to
FINANCIAL STATEMENTS (continued)
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially 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, 2005, have been designated Exempt Interest Dividends. Net realized capital
gains and ordinary income distributions paid 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 paid by the Funds 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 at the end of each rate period.
The initial dividend rates for High Income Opportunity's (NMZ) 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
================================================================================
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, 2005.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all 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 ($698,559) were recorded as a reduction of the proceeds from the
sale of Common shares.
66
Costs incurred by High Income Opportunity (NMZ) in connection with its offering
of Preferred shares ($3,385,976) were recorded as a reduction to paid-in
surplus.
Indemnifications
Under the Funds' organizational documents, their 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
10/31/05 10/31/04 10/31/05 10/31/04 10/31/05 10/31/04
- ----------------------------------------------------------------------------------------------------------------
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 YEAR OF OPERATIONS)
ENDED ENDED ENDED THROUGH
10/31/05 10/31/04 10/31/05 10/31/04
- ----------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 23,150,000
Shares issued to shareholders
due to reinvestment of distributions -- -- 44,087 47,035
- ----------------------------------------------------------------------------------------------------------------
-- -- 44,087 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, 2005, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- --------------------------------------------------------------------------------------------------------------
Purchases $186,586,886 $32,591,743 $77,946,704 $93,033,659 $30,876,067
Sales and maturities 189,033,172 33,235,492 73,184,620 95,965,024 34,943,764
==============================================================================================================
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, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions. At October 31, 2005, 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 $815,328,875 $739,300,942 $1,179,443,277 $438,858,262 $476,266,829
==============================================================================================================
67
Notes to
FINANCIAL STATEMENTS (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2005, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- ---------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $52,810,256 $52,980,682 $83,530,484 $22,833,955 $30,504,473
Depreciation (7,222,380) (3,901,882) (2,456,567) (1,994,299) (2,131,097)
- ---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $45,587,876 $49,078,800 $81,073,917 $20,839,656 $28,373,376
===============================================================================================================
The tax components of undistributed net investment income and net realized gains
at October 31, 2005, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- ---------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $6,155,980 $6,819,511 $8,701,944 $1,265,315 $2,255,401
Undistributed net ordinary income ** 83,080 772 -- 2,490 8,072
Undistributed net long-term capital gains 6,081,356 -- -- -- --
===============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 3, 2005, paid on November 1, 2005.
** 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, 2005 and October 31, 2004, was designated for purposes of the
dividends paid deduction as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
2005 (NQM) (NQS) (NQU) (NPF) (NMZ)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $40,152,471 $38,496,292 $58,975,142 $20,987,782 $27,803,988
Distributions from net ordinary income ** -- -- -- 26,171 1,567,342
Distributions from net long-term
capital gains 3,912,439 -- -- 2,914,704 --
=========================================================================================================
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.
At October 31, 2005, 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 PREMIER HIGH INCOME
QUALITY INCOME INCOME OPPORTUNITY
(NQS) (NQU) (NPF) (NMZ)
- ----------------------------------------------------------------------------------------------------------
Expiration year:
2011 $ -- $14,391,926 $ -- $ --
2012 1,397,851 -- -- --
2013 -- -- 594,354 417,280
- ----------------------------------------------------------------------------------------------------------
Total $1,397,851 $14,391,926 $594,354 $417,280
==========================================================================================================
68
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, 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.
The annual fund-level fee, payable monthly, for each Fund 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)
AVERAGE DAILY NET ASSETS QUALITY INCOME (NQU)
(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
================================================================================
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 stated in the table below. As
of October 31, 2005, the complex-level fee rate was .1905%.
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.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to their 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.
69
Notes to
FINANCIAL STATEMENTS (continued)
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.
6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen and
was deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which resulted in the
automatic termination of each agreement under the 1940 Act. In anticipation of
such deemed assignment, the Board of Directors/Trustees had approved new ongoing
investment management agreements for each Fund and the submission of those
agreements for approval by each respective Fund's shareholders, which
shareholder approval was received prior to the settlement of transactions (C)
and (D). The new ongoing management agreements took effect upon such settlement.
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2005, to shareholders of record
on November 15, 2005, as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
- ---------------------------------------------------------------------------------------------------------
Dividend per share $.0735 $.0770 $.0700 $.0660 $.0890
=========================================================================================================
70
Financial
HIGHLIGHTS
71
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
INVESTMENT QUALITY (NQM)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 $16.06 $1.05 $(.39) $(.16) $(.01) $ .49 $ (.96) $(.10) $(1.06)
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)
SELECT QUALITY (NQS)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 15.69 1.06 (.16) (.16) -- .74 (.97) -- (.97)
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)
QUALITY INCOME (NQU)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 15.54 1.02 (.22) (.16) -- .64 (.92) -- (.92)
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)
PREMIER INCOME (NPF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 15.53 .94 (.39) (.16) (.01) .38 (.88) (.13) (1.01)
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)
HIGH INCOME OPPORTUNITY (NMZ)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 14.87 1.22 .54 (.13) (.01) 1.62 (1.07) (.06) (1.13)
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:
2005 $ -- $15.49 $14.45 1.17% 3.10%
2004 -- 16.06 15.33 8.54 9.37
2003 -- 15.65 15.10 7.78 6.88
2002 -- 15.63 14.99 7.71 5.85
2001 -- 15.71 14.84 22.33 13.16
SELECT QUALITY (NQS)
- --------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 -- 15.46 14.83 4.14 4.77
2004 -- 15.69 15.19 10.19 9.64
2003 -- 15.33 14.81 9.91 8.96
2002 -- 15.00 14.40 5.24 4.22
2001 -- 15.48 14.75 20.09 13.23
QUALITY INCOME (NQU)
- --------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 -- 15.26 14.34 4.78 4.15
2004 -- 15.54 14.58 8.76 10.07
2003 -- 15.04 14.33 9.31 9.37
2002 -- 14.70 14.04 3.05 2.71
2001 -- 15.32 14.62 18.72 12.09
PREMIER INCOME (NPF)
- --------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 -- 14.90 13.57 1.05 2.49
2004 -- 15.53 14.43 4.75 9.48
2003 -- 15.13 14.74 9.13 6.57
2002 -- 15.23 14.52 4.57 6.19
2001 -- 15.31 14.84 15.93 12.89
HIGH INCOME OPPORTUNITY (NMZ)
- --------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 -- 15.36 15.99 14.35 11.20
2004(a) (.18) 14.87 15.04 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:
2005 $553,857 1.20% 6.59% 1.18% 6.61% 22%
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
SELECT QUALITY (NQS)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 523,994 1.18 6.76 1.16 6.78 4
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
QUALITY INCOME (NQU)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 827,077 1.18 6.57 1.17 6.57 6
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
PREMIER INCOME (NPF)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 299,423 1.23 6.16 1.22 6.17 20
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
HIGH INCOME OPPORTUNITY (NMZ)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 357,025 1.20 7.54 .74 8.00 6
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:
2005 $301,000 $25,000 $71,001
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
SELECT QUALITY (NQS)
- -------------------------------------------------------------------------------
Year Ended 10/31:
2005 279,000 25,000 71,953
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
QUALITY INCOME (NQU)
- -------------------------------------------------------------------------------
Year Ended 10/31:
2005 452,000 25,000 70,745
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
PREMIER INCOME (NPF)
- -------------------------------------------------------------------------------
Year Ended 10/31:
2005 165,000 25,000 70,367
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
HIGH INCOME OPPORTUNITY (NMZ)
- -------------------------------------------------------------------------------
Year Ended 10/31:
2005 155,000 25,000 82,585
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 reimbursement 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.
72-73 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 Fund is currently set
at nine. 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 (since 1996) and Director of Nuveen Investments, 156
3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and
333 W. Wacker Drive and Trustee Nuveen Institutional Advisory Corp.(3); Director (since 1996)
Chicago, IL 60606 of Institutional Capital Corporation; Chairman and Director
(since 1997) of Nuveen Asset Management; Chairman and
Director of Rittenhouse Asset Management, Inc. (since 1999);
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. 156
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 156
7/29/34 Northern Trust Company; Director (since 2002) Community
333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United
Chicago, IL 60606 Way of the North Shore.
- ------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 156
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College; Director, Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
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 156
3/6/48 Business at the University of Connecticut (since 2002);
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
(since 1997), Credit Research Center at Georgetown University;
Director (since 2004) of Xerox Corporation.
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 154
10/28/42 Management, President and CEO, Banc One Investment
333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual
Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One Investment
Management Group; Board of Regents, Luther College;
currently a member of the American and Wisconsin Bar
Associations.
74
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 Chairman of Miller-Valentine Partners Ltd., a real estate 156
9/24/44 investment company; formerly, Senior Partner and Chief
333 W. Wacker Drive Operating Officer (retired, December 2004), of Miller-Valentine
Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty, a
construction company; Board Member, Chair of the Finance Committee
and member of the Audit Committee of Premier Health Partners, the
not-for-profit company of Miami Valley Hospital; Vice President,
Dayton Philharmonic Orchestra Association; Board Member, Regional
Leaders Forum, which promotes cooperation on economic development
issues; Director, Dayton 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 156
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
- ------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 156
1/22/50 Northwestern University (since 1997); Director (since 2003),
333 W. Wacker Drive Chicago Board Options Exchange; Director (since 2003),
Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider
of home and community-based services; Chairman (since
1997), Board of Directors, Rubicon, a pure captive insurance
company owned by Northwestern University; Director (since
1997), Evanston Chamber of Commerce and Evanston
Inventure, a business development organization.
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(4) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
- ------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 156
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 (2002-2004), General Counsel (1998-2004)
and Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002) and Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
1997), of Nuveen Asset Management; 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.
75
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(4) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 156
9/22/63 (since 2002); formerly, Assistant Vice President (since 2000)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 156
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); Vice 156
11/28/67 and Treasurer President and Treasurer (since 1999) of Nuveen Investments,
333 W. Wacker Drive Inc.; Vice President and Treasurer (1999-2004) of Nuveen
Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Vice President and Treasurer of Nuveen Asset Management
(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.
- ------------------------------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 156
8/24/61 Investments, LLC (since January 2005); formerly, Director,
333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004),
Chicago, IL 60606 Director, Business Development and Transformation, Deutsche
Trust Bank Japan (2002-2003); previously, Senior Vice President, Head
of Investment Operations and Systems, Scudder Investments Japan,
(2000-2002), Senior Vice President, Head of Plan Administration and
Participant Services, Scudder Investments (1995-2002).
- ------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 156
9/24/64 and Secretary Assistant General Counsel (since 1998) formerly, Assistant
333 W. Wacker Drive Vice President (since 1998) of Nuveen Investments, LLC;
Chicago, IL 60606 Vice President (2002-2004) and Assistant Secretary (1998-2004)
formerly, Assistant Vice President of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3); Vice President and
Assistant Secretary (since 2005) of Nuveen Asset Management.
- ------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 156
10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly,
333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
- ------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 156
3/2/64 Nuveen Investments; Managing Director (1997-2004) of
333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp.(3); Managing Director of Nuveen Asset Management
(since 2001); Vice President of Nuveen Investments Advisers
Inc. (since 2002); Chartered Financial Analyst.
76
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(4) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 156
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 156
4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc.,
333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management,
Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Compliance
(2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Corp.(3); formerly, Senior Attorney (1994-2004), The Northern
Trust Company.
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 156
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 156
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 156
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.(3); Vice President (since 2005)
and Assistant Secretary of Nuveen Investments, Inc.; Vice
President (since 2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; 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).
(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) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) 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.
77
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds,
including the independent Trustees, unanimously approved the Investment
Management Agreement between each Fund and NAM.
THE APPROVAL PROCESS
To assist the Board in its evaluation of an advisory contract with NAM, the
independent Trustees received a report in adequate time in advance of their
meeting which outlined, among other things, the services provided by NAM; the
organization of NAM, including the responsibilities of various departments and
key personnel; the Fund's past performance as well as the Fund's performance
compared to funds of similar investment objectives compiled by an independent
third party (a "Peer Group"); the profitability of NAM and certain industry
profitability analyses for advisers to unaffiliated investment companies; the
expenses of NAM in providing the various services; the management fees of NAM,
including comparisons of such fees with the management fees of comparable funds
in its Peer Group as well as comparisons of NAM's management fees with the fees
NAM assesses to other types of investment products or accounts, if any; the soft
dollar practices of NAM; and the expenses of each Fund, including comparisons of
the Fund's expense ratios (after any fee waivers) with the expense ratios of its
Peer Group. This information supplements that received by the Board throughout
the year regarding Fund performance, expense ratios, portfolio composition,
trade execution and sales activity.
In addition to the foregoing materials, independent legal counsel to the
independent Trustees provided, in advance of the meeting, a legal memorandum
outlining, among other things, the duties of the Trustees under the 1940 Act as
well as the general principles of relevant state law in reviewing and approving
advisory contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards of
directors have fulfilled their duties and factors to be considered by the board
in voting on advisory agreements.
At the Board meeting, NAM made a presentation to and responded to questions from
the Board. After the presentations and after reviewing the written materials,
the independent Trustees met privately with their legal counsel to review the
Board's duties in reviewing advisory contracts and consider the renewal of the
advisory contracts. It is with this background that the Trustees considered each
Investment Management Agreement with NAM. The independent Trustees, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and SEC directives relating to the renewal of advisory contracts. As
outlined in more detail below, the Trustees considered all factors they believed
relevant with respect to each Fund, including the following: (a) the nature,
extent and quality of the services to be provided by NAM; (b) the investment
performance of the Fund and NAM; (c) the costs of the services to be provided
and profits to be realized by NAM and its affiliates from the relationship with
the Fund; (d) the extent to which economies of scale would be realized as the
Fund grows; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, extent and quality of NAM's services, the Trustees
reviewed information concerning the types of services that NAM or its affiliates
provide and are expected to provide to the Nuveen Funds; narrative and
statistical information concerning the Fund's performance record and how such
performance compares to the Fund's Peer Group; information describing NAM's
organization and its various departments, the experience and responsibilities of
key personnel, and available resources. In the discussion of key personnel, the
Trustees received materials regarding the changes or additions in personnel of
NAM. The Trustees further noted the willingness of the personnel of NAM to
engage in open, candid discussions with the Board. The Trustees further
considered the quality of NAM's investment process in making portfolio
management decisions, including any refinements or improvements to the portfolio
management processes, enhancements to technology and systems that are available
to portfolio managers, and any additions of new personnel which may strengthen
or expand the research and investment capabilities of NAM. In their review of
the advisory contracts for the fixed income funds, such as the Funds, the
Trustees also noted that Nuveen won the Lipper Award for Best Fund Family: Fixed
Income-Large Asset Class, for 2004. Given the Trustees' experience with the
Funds, other Nuveen funds and NAM, the Trustees noted that they were familiar
with and continue to have a good understanding of the organization, operations
and personnel of NAM.
In addition to advisory services, the independent Trustees considered the
quality of the administrative or non-advisory services provided. In this regard,
NAM provides the Funds with such administrative and other services (exclusive
of, and in addition to, any such services provided by others for the Funds) and
officers and other personnel as are necessary for the operations of the
respective Fund. In addition to investment management services, NAM and its
affiliates provide each Fund with a wide range of services, including: preparing
shareholder reports; providing daily accounting; providing quarterly financial
statements; overseeing and coordinating the activities of other service
providers; administering and organizing Board meetings and preparing the Board
materials for such
78
meetings; providing legal support (such as helping to prepare registration
statements, amendments thereto and proxy statements and responding to regulatory
inquiries); and performing other Fund administrative tasks necessary for the
operation of the respective Fund (such as tax reporting and fulfilling
regulatory filing requirements). In addition, in evaluating the administrative
services, the Trustees considered, in particular, NAM's policies and procedures
for assuring compliance with applicable laws and regulations in light of the new
SEC regulations governing compliance. The Trustees noted NAM's focus on
compliance and its compliance systems. In their review, the Trustees considered,
among other things, the additions of experienced personnel to NAM's compliance
group and modifications and other enhancements to NAM's computer systems. In
addition to the foregoing, the Trustees also noted that NAM outsources certain
services that cannot be replicated without significant costs or at the same
level of expertise. Such outsourcing has been a beneficial and efficient use of
resources by keeping expenses low while obtaining quality services.
In addition to the above, in reviewing the variety of additional services that
NAM or its affiliates must provide to closed-end funds, such as the Funds, the
independent Trustees determined that Nuveen's commitment to supporting the
secondary market for the common shares of its closed-end funds is particularly
noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor
numerous forums for analysts and specialists regarding the various Nuveen
closed-end funds, its creation of a new senior position dedicated to providing
secondary market support services and enhancing communications with investors
and analysts, and its advertising and media relations efforts designed to raise
investor and analyst awareness of the closed-end funds.
With respect to services provided to municipal funds, including the Funds, the
Trustees also noted, among other things, the enhancements NAM implemented to its
municipal portfolio management processes (e.g., the increased use of benchmarks
to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify NAM's computer systems as necessary to support
the innovations of the municipal investment team (such as, the ability to assess
certain historical data in order to create customized benchmarks, perform
attribution analysis and facilitate the use of derivatives as hedging
instruments). With respect to certain of the Nuveen funds with a less seasoned
portfolio, the Trustees also noted the hedging program implemented for such
funds and the team responsible for developing, implementing and monitoring the
hedging procedures. The hedging program was designed to help maintain the
applicable fund's duration with certain benchmarks.
Based on their review, the Trustees concluded that, overall, they were satisfied
with the nature, extent and quality of services provided (and expected to be
provided) to the Funds under the Investment Management Agreements.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER
As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group. Among other things, the Board received
materials reflecting a Fund's historic performance and the Fund's performance
compared to its Peer Group. In evaluating the performance information, in
certain limited instances, the Trustees noted that the closest Peer Group for a
Fund still would not adequately reflect such Fund's investment objectives and
strategies, thereby limiting the usefulness of the comparisons of such Fund's
performance with that of the Peer Group.
As noted above, the performance data included, among other things, the
respective Fund's performance relative to its peers. More specifically, a Fund's
one-, three- and five-year total returns (as applicable) for the periods ending
December 31, 2004 were evaluated relative to the unaffiliated funds in its
respective Peer Group (including the returns of individual peers as well as the
Peer Group average) as well as additional performance information with respect
to all funds in the Peer Group. Based on their review, the Trustees determined
that the respective Fund's absolute and relative investment performance over
time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that a Fund is expected to
bear, the Trustees considered the respective Fund's current management fee
structure and the Fund's expected expense ratios in absolute terms as well as
compared with the fees and expense ratios of the unaffiliated funds in its
Peer Group. The Trustees reviewed the financial information of NAM, including
its respective revenues, expenses and profitability. In reviewing fees, the
Trustees, among other things, reviewed comparisons of the Fund's gross
management fees (fees after fund-level and complex-wide level breakpoints but
before reimbursement and fee waivers), net management fees (after breakpoints
and reimbursements and fee waivers) and total expense ratios (before and
after waivers) with those of the unaffiliated funds in the Peer Group and
peer averages. In this regard, the Trustees noted that the relative ranking
of the Nuveen funds on fees and expenses was aided by the significant level
of fee reductions provided by the fund-level and complex-wide breakpoint
schedules, and the fee waivers and reimbursements provided by Nuveen for
certain funds launched since 1999. The complex-wide breakpoint schedule was
instituted in 2004 and is described in further detail below in Section D
entitled "Economies of Scale and Whether Fee Levels Reflect these Economies
of Scale." In their review of the fee and expense information provided,
including, in particular, the expense ratios of the unaffiliated funds in the
respective Peer Group, the Trustees determined that each Fund's net total
expense ratio was within an acceptable range compared to such peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further compared the fees of NAM to the fees NAM assessed for
other types of clients investing in municipal funds (such as municipal
managed accounts). With respect to such separately managed accounts, the
advisory fees for such accounts are generally lower than those charged to the
comparable Funds. The Trustees noted, however, the additional services that
are provided and the costs incurred by Nuveen in managing and operating
registered investment companies, such as the Funds, compared to individually
managed separate accounts. For instance, as described above, NAM and its
affiliates provide numerous services to the Funds including, but not limited
to, preparing shareholder reports; providing daily accounting; preparing
quarterly
79
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
financial statements; overseeing and coordinating the activities of other
service providers; administering and organizing Board meetings and preparing
the Board materials for such meetings; providing legal support; and
administering all other aspects of the Fund's operations. Further, the
Trustees noted the increased compliance requirements for funds in light of
new SEC regulations and other legislation. These services are generally not
required to the same extent, if at all, for separate accounts. In addition to
the differences in services, the Trustees also considered, among other
things, the differences in product distribution, investment policies,
investor profiles and account sizes. Accordingly, the Trustees believe that
the nature and number of services provided to operate a Fund merit the higher
fees than those to separate managed accounts.
3. PROFITABILITY OF NAM
In conjunction with its review of fees, the Trustees also considered NAM's
profitability. The Trustees reviewed NAM's revenues, expenses and
profitability margins (on both a pre-tax and after-tax basis). In reviewing
profitability, the Trustees recognized that one of the most difficult issues
in determining profitability is establishing a method of allocating expenses.
Accordingly, the Trustees reviewed NAM's assumptions and methodology of
allocating expenses. In this regard, the methods of allocation used appeared
reasonable but the Board noted the inherent limitations in allocating costs
among various advisory products. The Trustees also recognized that individual
fund or product line profitability of other advisers is generally not
publicly available. Further, profitability may be affected by numerous
factors including the types of funds managed, expense allocations, business
mix, etc. and therefore comparability of profitability is somewhat limited.
Nevertheless, to the extent available, the Trustees considered NAM's profit
margin compared to the profitability of various publicly-traded investment
management companies and/or investment management companies that publicly
disclose some or all of their financial results compiled by three independent
third-party service providers. The Trustees also reviewed the revenues,
expenses and profit margins of various unaffiliated advisory firms with
similar amounts of assets under management for the last year prepared by NAM.
Based on their review, the Trustees were satisfied that NAM's level of
profitability from its relationship with each Fund was reasonable in light of
the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to NAM as well as any indirect benefits
(such as soft dollar arrangements, if any) NAM and its affiliates are
expected to receive that are directly attributable to their management of the
Funds, if any. See Section E below for additional information. Based on their
review of the overall fee arrangements of the applicable Fund, the Trustees
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
In reviewing the compensation, the Trustees have long understood the benefits of
economies of scale as the assets of a fund grow and have sought to ensure that
shareholders share in these benefits. One method for shareholders to share in
economies of scale is to include breakpoints in the advisory fee schedules that
reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed
the schedules of advisory fees for each Fund, including fund-level breakpoints
thereto. In addition, after lengthy negotiations with management, the Board in
May, 2004 approved a complex-wide fee arrangement pursuant to which fees of the
funds in the Nuveen complex, including the Funds, are reduced as the assets in
the fund complex reach certain levels. The complex-wide fee arrangement was
introduced on August 1, 2004 and the Trustees reviewed data regarding the
reductions of fees for the Nuveen funds for the period of August 1, 2004 to
December 31, 2004. In evaluating the complex-wide fee arrangement, the Trustees
considered, among other things, the historic and expected fee savings to
shareholders as assets grow, the amount of fee reductions at various asset
levels, and that the arrangement would extend to all funds in the Nuveen
complex. The Trustees also considered the impact, if any, the complex-wide fee
arrangement may have on the level of services provided. Based on their review,
the Trustees concluded that the breakpoint schedule and complex-wide fee
arrangement currently were acceptable and desirable in providing benefits from
economies of scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. In this regard, the Trustees considered any benefits from soft dollar
arrangements. The Trustees noted that although NAM manages a large amount of
assets, it has very little, if any, brokerage to allocate. This is due to the
fact that NAM typically manages the portfolios of the municipal funds in the
Nuveen complex and municipal bonds generally trade on a principal basis.
Accordingly, NAM does not currently have any soft dollar arrangements and does
not pay excess brokerage commissions (or spreads on principal transactions) in
order to receive research services. In addition to soft dollar arrangements, the
Trustees also
80
considered any other revenues, if any, received by NAM or its affiliates. In
this regard, the Trustees considered revenues received by Nuveen for serving as
agent for broker-dealers at its preferred trading desk and for acting as
co-manager in the initial public offering of new closed-end exchange-traded
funds.
F. OTHER CONSIDERATIONS
Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers
Companies, Inc. ("St. Paul"). As noted, St. Paul earlier this year announced its
intention to divest its equity stake in Nuveen. Nuveen is the parent of NAM.
Pursuant to a series of transactions, St. Paul had begun to reduce its interest
in Nuveen which will ultimately result in a change of control of Nuveen and
therefore NAM. As mandated by the 1940 Act, such a change in control would
result in an assignment of the Investment Management Agreements with NAM and the
automatic termination of such agreements. Accordingly, the Board also considered
the approval of a New Investment Management Agreement with each Fund in light
of, and which would take effect upon, the anticipated change of control. More
specifically, the Board considered for each Fund a New Investment Management
Agreement on substantially identical terms to the existing Investment Management
Agreement, to take effect after the change of control has occurred and the
contract has been approved by Fund shareholders. In its review, the Board
considered whether the various transactions necessary to divest St. Paul's
interest will have an impact on the various factors they considered in approving
NAM, such as the scope and quality of services to be provided following the
change of control. In reviewing the St. Paul transactions, the Board considered,
among other things, the impact, if any, on the operations and organizational
structure of NAM; the possible benefits and costs of the transactions to the
respective Fund; the potential implications of any arrangements used by Nuveen
to finance certain of the transactions; the ability of NAM to perform its duties
after the transactions; whether a fee structure or expense ratio would change;
any changes to the current practices of the respective Fund; any changes to the
terms of the advisory agreement; and any anticipated changes to the respective
operations of NAM. Based on its review, the Board determined that St. Paul's
divestiture would not affect the nature and quality of services provided by NAM,
the terms of the respective Investment Management Agreement, including the fees
thereunder, and would not materially affect the organization or operations of
NAM. Accordingly, the Board determined that their analysis of the various
factors regarding their approval of NAM would continue to apply after the change
of control.
G. APPROVAL
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that NAM's fees are reasonable in light of the services
provided to each Fund, that the renewal of the NAM Investment Management
Agreements should be approved and that the new, post-change of control NAM
Investment Managements Agreement be approved and recommended to shareholders.
81
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 EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
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.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
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.
82
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website 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.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
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 expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's 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
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
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 in the future at such times and in such amounts as is deemed
advisable. No shares were repurchased during the period covered by this report.
Any future repurchases will be reported to shareholders in the next annual or
semiannual report.
83
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 more than $131 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 fixed-income 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, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
EAN-C-1005D
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. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
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 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.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Premier Municipal Income 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, 2005 $ 16,612 $ 0 $ 453 $ 2,750
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
October 31, 2004 $ 15,918 $ 0 $ 364 $ 2,550
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon
procedures required by the rating agencies to rate fund preferred shares. 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 Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("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 tables also show 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, 2005 $ 0 $ 282,575 $ 0
- ---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- ---------------------------------------------------------------------------------------------------------------------
October 31, 2004 $ 0 $ 0 $ 0
- ---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- ---------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Fund tax
return preparation.
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's 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, 2005 $ 3,203 $ 282,575 $ 0 $ 285,778
October 31, 2004 $ 2,914 $ 0 $ 0 $ 2,914
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax-Fees" billed
to Adviser in the amount of $282,575 from previous table.
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 (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments 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.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
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 Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the 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 the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(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 Premier Municipal Income 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, 2006
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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, 2006
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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, 2006
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* Print the name and title of each signing officer under his or her signature.