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 811-10551
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Nuveen New Jersey Dividend Advantage Municipal Fund 2
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: April 30
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Date of reporting period: April 30, 2008
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Annual Report | Nuveen Investments
April 30, 2008 | Municipal Closed-End Funds
Photo of: Small child
NUVEEN NEW JERSEY
INVESTMENT QUALITY
MUNICIPAL FUND, INC.
NQJ
NUVEEN NEW JERSEY
PREMIUM INCOME
MUNICIPAL FUND, INC.
NNJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NUJ
NUVEEN PENNSYLVANIA
INVESTMENT QUALITY
MUNICIPAL FUND
NQP
NUVEEN PENNSYLVANIA
PREMIUM INCOME
MUNICIPAL FUND 2
NPY
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXM
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NVY
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NUVEEN
Investments
Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger | Chairman of the Board
It is with a variety of emotions that I write my last letter to Nuveen Fund
shareholders. For a dozen years, it has been my privilege to communicate
periodically with you through these annual and semi-annual reports about the
performance and uses of your Fund. Over that time, I've tried to emphasize the
central role that quality municipal bonds can play in creating attractive
opportunities for current tax-free income, long-term return and portfolio
diversification. I firmly believe that all our Fund shareholders, working in
conjunction with a trusted financial advisor, have the potential to reach their
financial objectives by using Nuveen Funds as a core component of a
well-balanced portfolio.
As I noted in your Fund's last shareholder report, Nuveen Investments was
acquired in November 2007 by a group led by Madison Dearborn Partners, LLC.
While this event had no impact on the investment objectives, portfolio
management strategies or dividend policies of your Fund, it did provide a
convenient point to begin implementing a long-planned transition in the senior
management team at Nuveen. As a part of this process, I will be leaving the
Board of the Nuveen Funds on June 30, 2008.
In addition, Nuveen and your Fund's Board determined that Fund shareholders
would be best served by having an independent director serve as the new chairman
of the Fund Board. Therefore, I am very excited and pleased to report that I
will be succeeded as chairman of your Nuveen Fund Board by Robert Bremner. A
member of the Board since 1997, Bob is a management consultant and private
investor not affiliated with Nuveen. Over the years, he has played a critical
role on the Fund Board, most recently as the lead independent director, and I
know Bob and the other Board members are determined to maintain the standards
and commitment to quality that you have come to expect from your Nuveen
investment.
Please take the time to review the Portfolio Manager's Comments, the Common
Share Dividend and Share Price Information, and the Performance Overview
sections of this report. All of us are grateful that you have chosen Nuveen
Investments as a partner as you pursue your financial goals, and, on behalf of
Bob Bremner and the other members of your Fund's Board, let me say 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
June 16, 2008
Portfolio Manager's COMMENTS
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| NQJ, NNJ, NXJ, NUJ,
Nuveen Investments Municipal Closed-End Funds | NQP, NPY, NXM, NVY
Portfolio manager Cathryn Steeves reviews U.S. economic and municipal market
conditions at the national and state levels, key investment strategies, and the
annual performance of the Nuveen New Jersey and Pennsylvania Funds. Cathryn, who
joined Nuveen in 1996, assumed portfolio management responsibility for these
eight Funds in 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED APRIL 30, 2008?
During this reporting period, developments in the financial sector, especially
in the credit markets, led to increased volatility, tightening liquidity and a
flight to quality. These developments, which began to take shape during the
summer of 2007, became particularly evident in August 2007 when market concerns
about defaults on sub-prime mortgages resulted in a liquidity crisis across all
fixed income asset classes. In September 2007, the Federal Reserve (Fed)
responded to credit market volatility by launching a series of interest rate
cuts that lowered the fed funds rate by 325 basis points--from 5.25% to
2.00%--in eight months, including reductions of 125 basis points in January 2008
alone.
The Fed's actions also were a response to increased signs of weakness in the
U.S. economy, as evidenced by the slowing growth of the U.S. gross domestic
product (GDP), a closely watched measure of economic performance. While GDP
expanded at 3.8% in the second quarter of 2007 and 4.9% in the third quarter of
2007, this measure dropped sharply to 0.6% in the fourth quarter of 2007 (all
GDP numbers annualized). In the first quarter of 2008, GDP grew at an annual
rate of 0.9%, restrained by a 25.5% decline in residential investment and the
weakest consumer spending since 2001. Driven largely by increased energy,
agricultural and commodities prices, the Consumer Price Index (CPI) registered a
3.9% year-over-year gain as of April 2008, while the increase in this inflation
gauge for the first four months of 2008 was 3.0% annualized. The core CPI (which
excludes food and energy prices) rose 2.3% between May 2007 and April 2008,
remaining above the Fed's unofficial target of 2.0% or lower. In the labor
markets, January 2008 marked the first decline in new jobs created since 2003,
breaking the longest string of employment growth (52 months) in U.S. history.
The national unemployment rate for April 2008 was 5.0%, up from 4.5% in April
2007.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
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In the municipal bond market, factors related to the sub-prime mortgage crisis
had an indirect, but important, influence on performance. General concerns about
the credit markets as well as more specific concerns about municipal bond
insurers with exposure to sub-prime mortgages caused some investors to curtail
purchases. Because some investors were avoiding exposure to such insurers, hedge
funds and other non-traditional buyers of municipal bonds were forced to sell
holdings of long-maturity bonds into a market already experiencing a lack of
liquidity. Combined with the Fed rate cuts, this selling produced a sharp
steepening of the municipal yield curve, as longer-term interest rates rose and
short-term interest rates declined. In this environment, bonds with shorter
maturities generally outperformed longer maturity bonds and higher quality bonds
tended to outperform lower quality credits.
Over the twelve months ended April 2008, municipal bond issuance nationwide
totaled $453.9 billion, a decrease of 4% from the previous twelve months. During
the first four months of 2008, as $129.0 billion in new securities came to
market, down 9% from the same period in 2007. To date in 2008, insured bonds
comprised 26% of new supply, compared with the recent historical figure of
approximately 50%. Despite disruptions in the markets, new municipal issuance
continued to be met with good demand by institutional and retail investors as
well as non-traditional buyers returning to the market toward the end of this
period.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN NEW JERSEY AND PENNSYLVANIA?
New Jersey continued to have a diverse and relatively stable economy, with a
large collection of high-tech and research companies, a highly diverse
industrial base and strong links to international trade through the state's
seaports. Drivers of employment growth in New Jersey included education and
health care, professional and business services, and the financial sector, which
helped to offset continued job losses in the manufacturing sector to some
degree. However, the state has not escaped the national housing market slowdown,
and the slide in housing prices statewide impacted construction payrolls as well
as sectors related to home and consumer spending. In addition, the sub-prime
mortgage crisis helped to fuel volatility in the equity markets and create risks
for financial services firms in the state. In April 2008, New Jersey's jobless
rate was 5.0%, up from 4.3% in April 2007, its highest level since May 2004 and
on par with the national average. As of April 30, 2008, New Jersey general
obligation debt was rated Aa3/AA-/AA- by Moody's, Standard & Poor's (S&P), and
Fitch, respectively. Both Moody's and S&P continued to list their outlooks for
the state as stable. For the twelve months ended April 30, 2008, municipal
issuance in New Jersey totaled $11.7 billion, a decrease of 22% from the
previous twelve months. During the first four months of 2008, issuance fell off
even more sharply to $3.3 billion, down 42% from the first four months of 2007.
According to Moody's, New Jersey carries the fourth largest debt load in the
nation.
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The Pennsylvania economy continued to perform relatively well, although the
commonwealth's labor market softened over the past twelve months. In recent
years, aggressive economic development efforts have helped Pennsylvania's
economy diversify into new areas, with health care and education services now
comprising the largest sector in terms of employment. In conjunction with these
industries, the commonwealth has a strong presence in biotechnology and
pharmaceutical research and manufacturing. Pennsylvania's higher education
institutions, including several medical schools, also have contributed to the
growth of this area. Other growth drivers include professional and business
services and transportation. On the other hand, the commonwealth's continued
dependence on its shrinking old-line manufacturing industries, declining home
prices and the resulting layoffs in housing-related industries, and an aging
infrastructure served as impediments to growth. As of April 2008, unemployment
in Pennsylvania was 5.0%, up from 4.3% in April 2007, Moody's, S&P, and Fitch,
respectively, maintained their ratings on Pennsylvania general obligation debt
at Aa2/AA/AA with stable outlooks as of the end of this reporting period and
municipal bond issuance in the commonwealth during the twelve months totaled
$19.0 billion, a decrease of 9%. For the first four months of 2008, Pennsylvania
saw issuance drop 16% compared with the first four months of 2007, with $4.9
billion in new municipal paper.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING
PERIOD?
During this period, the municipal market was characterized by volatility and a
steepening yield curve, we sought to capitalize on a turbulent environment by
continuing to focus on relative value, using a fundamental approach to find
undervalued sectors and individual credits with the potential to perform well
over the long term.
In the earlier part of the period, our emphasis was generally on purchasing
bonds with longer maturities and on managing the Funds' durations.1 When
August's liquidity crisis led the market to discount lower-quality and
higher-yielding bonds we took advantage of opportunities that we considered
overlooked and undervalued to selectively add these types of bonds to our
portfolios. Among the credits we added to the Funds were uninsured health care
and long-term care bonds, marking the first time in a while that we found bonds
in these sectors at attractive levels relative to their credit quality. We also
added exposure to the short end of the yield curve by purchasing small positions
in auction rate bonds. Auction rate bonds are short-term securities whose
interest payments are adjusted periodically through an auction process which
typically also serves as a means for buying and selling.
(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.
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6
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To generate cash for purchases, we selectively sold some holdings with shorter
durations at attractive prices resulting from high demand. Selling shorter
duration bonds and reinvesting further out on the yield curve also helped to
improve the Funds' overall call protection profiles. We also took advantage of
strong bids to sell some bonds that were attractive to the retail market.
As part of our disciplined approach to duration management, we use inverse
floating rate securities,(2) a type of derivative financial instrument, in all
the Fund's except NUJ during this reporting period. Inverse floaters typically
provide the dual benefit of lengthening the durations of the Funds to be closer
to our strategic target and enhancing their income-generation capabilities. All
four of the New Jersey Funds and NQP and NPY used forward interest rate swaps,
another type of derivative financial instrument. The goal of this strategy was
to help us manage the common share net asset value (NAV) volatility of these
Funds without having a negative impact on their income streams or common share
dividends over the short term. As of April 30, 2008, all of the forward interest
rate swaps had been removed from these six Funds.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen New Jersey and Pennsylvania Funds, as well
as relevant index and peer group information, are presented in the accompanying
table.
Total Returns on Common Share Net Asset Value*
For periods ended 4/30/08
1-Year 5-Year 10-Year
New Jersey Funds
NQJ -0.08% 4.62% 5.52%
NNJ 0.77% 4.20% 5.73%
NXJ -0.81% 4.77% N/A
NUJ -0.60% 5.17% N/A
Lipper New Jersey
Municipal Debt Funds Average(3) -2.70% 4.66% 5.32%
Lehman Brothers
Municipal Bond Index(4) 2.79% 4.03% 5.16%
Pennsylvania Funds
NQP -0.92% 3.72% 5.06%
NPY -2.06% 3.67% 5.41%
NXM -0.87% 4.65% N/A
NVY -0.60% 4.40% N/A
Lipper Pennsylvania
Municipal Debt Funds Average(3) -2.80% 3.92% 5.16%
Lehman Brothers
Municipal Bond Index(4) 2.79% 4.03% 5.16%
*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.
(2) An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a short-term
tax-exempt interest rate index. For the Nuveen Funds, the index typically used
is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index
(previously referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the Funds
invested during this reporting period, are further defined within the Notes to
Financial Statements and Glossary of Terms Used in This Report sections of this
shareholder report.
(3) The Lipper New Jersey Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as follows: 1
year, 13; 5 years, 13; and 10 years, 7. The Lipper Pennsylvania Municipal Debt
Funds Average is calculated using the returns of all closed-end funds for each
period as follows: 1 year, 9; 5 years, 9; and 10 years, 4. Fund and Lipper
returns assume reinvestment of dividends.
(4) The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal bonds.
Results for the Lehman index do not reflect any expenses.
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7
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For the twelve months ended April 30, 2008, the total returns on common share
NAV for the New Jersey and Pennsylvania Funds underperformed the return on the
national Lehman Brothers Municipal Bond Index. At the same time, the four New
Jersey Funds outperformed the average return for the Lipper New Jersey Municipal
Debt Funds Average, and the performance of the four Pennsylvania Funds exceeded
that of the Lipper Pennsylvania Municipal Debt Funds Average.
One of the major factors impacting the performance of these Funds in relation to
that of the unleveraged Lehman Brothers Municipal Bond Index was the use of
financial leverage. While leverage provides opportunities for additional income
and total returns for common shareholders, the benefits of leveraging are tied
in part to the short-term rates that leveraged Funds pay their preferred
shareholders. During this period, as the yields on longer-term bonds rose and
their prices correspondingly fell, declining valuations had a negative effect on
performance that was magnified by the use of leverage. In addition, the Funds'
borrowing costs remained relatively high, negatively impacting their total
returns.
Other key factors that influenced the Funds' returns included yield curve and
duration positioning, the use of derivatives, credit exposure and sector
allocations and holdings of bonds backed by certain municipal bond insurers.
Bonds in the Lehman Brothers Municipal Bond Index with maturities of less than
eight years, especially those maturing in approximately three to five years,
benefited the most from changes in the interest rate environment. As a result,
these bonds generally outperformed credits with longer maturities. Bonds having
the longest maturities (twenty-two years and longer) posted the worst returns
for the period. For the most part, the New Jersey Funds' yield curve positioning
was a net positive for performance during this period. Although these four Funds
were underexposed to the outperforming shorter maturity categories, this was
generally offset by the Funds' heavier weightings in the intermediate part of
the yield curve, which performed well and lower allocations to the
underperforming long part of the curve. Among the Pennsylvania Funds, NXM and
NVY benefited from having the shortest durations, while NQP and NPY were
penalized for their heavier exposures to the longer part of the yield curve.
As mentioned earlier, all four of the New Jersey Funds, NQP and NPY used forward
interest rate swaps. In the New Jersey Funds, these derivatives were used to
synthetically extend the Funds' durations and move them closer to our strategic
duration target. Despite the fact that longer duration instruments performed
relatively poorly, the use of these forward interest rate swaps had a positive
impact on the return performance of these four Funds. This was due to the fact
that these interest rate swaps provided exposure to taxable markets during a
period when, in contrast to historical trends, the U.S. Treasury market and the
municipal market moved in the opposite directions. As municipal market
performance lagged the significant gains made by
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8
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Treasuries, these interest rate swaps performed very well. However, in NQP and
NPY, which had durations that exceeded our target, interest rate swaps were used
to synthetically shorten duration. These positions, which reduced duration in
the outperforming taxable markets hurt the performance of NQP and NPY.
In addition, the inverse floaters used by NQJ, NNJ, NXJ, NQP and NPY had a
negative impact on performance. This resulted from the fact that the inverse
floaters effectively increased the Funds' exposure to longer maturity bonds
during a period when shorter maturities were in favor in the market. However,
the inverse floaters also benefited the Funds by helping to support their income
streams. In general, we believe the Nuveen Funds had smaller positions in
inverse floaters than their peers in the Lipper New Jersey and Pennsylvania
Municipal Debt Funds Average, which helped the relative performance of these
five Nuveen Funds.
As credit spreads widened, bonds rated BBB or below posted poor returns. The
underperformance of the lower credit quality sector was largely the result of
risk-averse investors' flight to quality as disruptions in the financial and
housing markets deepened. As of April 30, 2008, the New Jersey Funds' holdings
of bonds rated BBB or lower and non-rated bonds ranged from 12% in NNJ and 14%
in NXJ to 17% in NUJ and 18% in NQJ, while the Pennsylvania Funds' allocations
totaled approximately 7% in NQP, 17% in NPY, 20% in NXM, and 24% in NVY. The
Funds' allocations to these credit quality sectors were generally higher than
that of the Lehman Brothers Municipal Bond Index, and the negative impact of
this greater exposure to credit risk accounted for some of the performance
differential between these Funds and the index.
In general, bonds that carried any credit risk, regardless of sector, tended to
perform poorly. Revenue bonds as a whole, and especially the industrial
development and health care (including hospitals and long-term care) sectors
that had ranked among the top performers in the Lehman Brothers Municipal Bond
Index over the past few years, underperformed the general municipal market. The
housing sector also performed poorly, as did bonds backed by the 1998 master
tobacco settlement agreement, which comprised approximately 2% to 3% of the
portfolios of the New Jersey Funds as of April 30, 2008. The Pennsylvania Funds
did not hold any tobacco credits. Among the worst performers in the municipal
market were zero coupon bonds, which have longer durations and greater exposure
to interest rate risk. The performance of NXJ, which had the largest position in
zero coupon bonds among the New Jersey Funds, was adversely affected by these
holdings, while NNJ had the smallest allocation of zero coupon bonds.
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Sectors of the market that generally contributed positively to the Funds'
performances included general obligation bonds, water and sewer, and special tax
issues. Pre-refunded bonds5 performed exceptionally well, due primarily to their
shorter effective maturities and higher credit quality. Among the four
Pennsylvania Funds, NPY held significantly fewer advance refunded bonds than the
other three Funds, which explains some of the performance differential among
these Funds.
Another factor that had an impact on the performance of these Funds was their
exposure to bonds insured by certain municipal insurers. As concern increased
about the balance sheets of municipal bond insurers, prices on bonds insured by
these companies declined, detracting from the Funds' performance. On the whole,
the holdings within these Funds continued to be well diversified not only
between insured and uninsured bonds, but also within the insured bond category.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
The portfolios of investments reflect the ratings on certain bonds insured by
AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. During the period covered
by this report, at least one rating agency reduced the rating for AMBAC-insured
and MBIA-insured bonds to AA and at least one rating agency further reduced the
ratings for FGIC-insured and XLCA-insured bonds to BB. Subsequent to April 30,
2008, and at the time this report was prepared, at least one rating agency
further reduced the rating for CIFG-insured bonds to BB and MBIA-insured bonds
to A. As of April 30, 2008, at least one rating agency has placed XLCA-insured
bonds on "negative credit watch" and one or more rating agencies have placed
each of these insurers on "negative outlook", which may presage one or more
rating reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it would likely reduce
the effective rating of many of the bonds insured by that insurer or insurers.
It is important to note that municipal bonds historically have had a very low
rate of default.
(5) Advance refundings, also known as pre-refundings or refinancings, occur when
an issuer sells new bonds and uses the proceeds to fund principal and interest
payments of older existing bonds. This process often results in lower borrowing
costs for bond issuers.
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10
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RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the preferred shares issued by these Funds than there
were offers to buy. This meant that these auctions "failed to clear" and that
many or all auction preferred shareholders who wanted to sell their shares in
these auctions were unable to do so. This decline in liquidity in auction
preferred shares did not lower the credit quality of these shares, and auction
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions as calculated in accordance with
the pre-established terms of the auction preferred shares. At the time this
report was prepared, the Funds' managers could not predict when future auctions
might succeed in attracting sufficient buyers for the shares offered, if ever.
The Funds' managers are working diligently to refund the auction preferred
shares, and have made progress in these efforts, but at present there is no
assurance that these efforts will succeed. These developments generally do not
affect the management or investment policies of these Funds. However, one
implication of these auction failures for common shareholders is that the Funds'
cost of leverage will likely be higher, at least temporarily, than it otherwise
would have been had the auctions continued to be successful. As a result, the
Funds' future common share earnings may be lower than they otherwise would have
been.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
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11
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Common Share
Dividend and Share Price
INFORMATION
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As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. While this
strategy continued to provide incremental income, the extent of this benefit was
reduced to a degree by the borrowing costs associated with leverage, which
remained relatively high. The Funds' income streams were also impacted as the
proceeds from older, higher-yielding bonds that matured or were called were
reinvested into bonds currently available in the market, which generally offered
lower yields. These factors resulted in one monthly dividend reduction in NNJ,
NPY, and NVY and two reductions in NXJ, NUJ, and NXM over the twelve-month
period ended April 30, 2008. The dividend of NQJ remained stable throughout this
reporting period. In NQP, we were able to increase the monthly dividend
effective August 2007.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and/or net ordinary income
distributions at the end of December 2007 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NQJ $0.0299 --
NNJ $0.0413 $0.0008
NXJ $0.0269 --
NUJ $0.1515 --
NPY $0.0439 --
NXM $0.0516 --
NVY $0.0487 --
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
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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
common share 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 common share NAV. Each Fund will, over time, pay all of
its net investment income as dividends to shareholders. As of April 30, 2008,
all of the Funds in this report had positive UNII balances for tax purposes. NPY
had a positive UNII balance, while the remaining seven Funds in this report had
negative UNII balances for financial statement purposes.
As of April 30, 2008, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying chart:
4/30/08 Twelve-Month
Discount Average Discount
NQJ -8.20% -8.39%
NNJ -7.92% -7.53%
NXJ -8.06% -6.66%
NUJ -5.30% -3.26%
NQP -8.96% -9.63%
NPY -10.48% -9.89%
NXM -5.94% -6.08%
NVY -7.52% -5.68%
COMMON SHARE REPURCHASE AND SHARE PRICE INFORMATION
On July 10, 2007, the Board of Trustees of NQP and NPY approved an open market
share repurchase program as part of a broad, ongoing effort designed to support
the market prices of the Funds' common shares. Repurchases not only help to
support the market price, but because such purchases are made at a discount to
NAV, they have the effect of augmenting NAV. Under the terms of the program,
each Fund may repurchase up to 10% of its outstanding common shares. As of April
30, 2008, NQP and NPY had repurchased 139,900 and 156,100 common shares,
respectively, representing approximately 0.9% and 1.0% of the Funds' total
common shares outstanding, respectively.
-----
13
-----
NQJ | Nuveen New Jersey
Performance | Investment Quality
OVERVIEW | Municipal Fund, Inc.
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
Pie Chart:
AAA/U.S.
Guaranteed 57%
AA 12%
A 13%
BBB 16%
BB or Lower 1%
N/R 1%
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Bar Chart:
May $ 0.0545
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0545
Nov 0.0545
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
Common Share Price Performance -- Weekly Closing Price
Line Chart:
5/01/07 $ 14.30
14.36
14.43
14.26
14.00
13.99
13.81
13.63
13.45
13.72
13.65
13.55
13.38
13.47
13.37
13.22
13.01
13.21
13.28
13.49
13.55
13.42
13.62
13.52
13.10
13.13
13.19
13.19
13.03
12.46
12.63
12.89
13.06
12.79
12.62
12.94
13.38
13.59
13.33
13.67
13.68
13.70
12.85
12.78
12.59
13.00
12.65
12.61
12.99
12.89
12.99
12.97
13.13
4/30/08 13.09
Fund Snapshot
- --------------------------------------------------------------------------------
Common Share Price $ 13.09
- --------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.26
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.20%
- --------------------------------------------------------------------------------
Market Yield 5.00%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.42%
- --------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 292,194
- --------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.67
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.50
- --------------------------------------------------------------------------------
Average Annual Total Return
(Inception 2/21/91)
- --------------------------------------------------------------------------------
On Share Price On NAV
- --------------------------------------------------------------------------------
1-Year -3.64% -0.08%
- --------------------------------------------------------------------------------
5-Year 2.99% 4.62%
- --------------------------------------------------------------------------------
10-Year 4.27% 5.52%
- --------------------------------------------------------------------------------
Industries
(as a % of total investments)
- --------------------------------------------------------------------------------
Tax Obligation/Limited 21.9%
- --------------------------------------------------------------------------------
Transportation 16.4%
- --------------------------------------------------------------------------------
Health Care 15.1%
- --------------------------------------------------------------------------------
U.S. Guaranteed 13.8%
- --------------------------------------------------------------------------------
Education and Civic Organizations 11.0%
- --------------------------------------------------------------------------------
Water and Sewer 5.1%
- --------------------------------------------------------------------------------
Tax Obligation/General 4.9%
- --------------------------------------------------------------------------------
Other 11.8%
- --------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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 combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0299 per share.
- -----
14
- -----
NNJ | Nuveen New Jersey
Performance | Premium Income
OVERVIEW | Municipal Fund, Inc.
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
Pie Chart:
AAA/U.S.
Guaranteed 58%
AA 13%
A 17%
BBB 10%
BB or Lower 1%
N/R 1%
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Bar Chart:
May $ 0.0575
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0545
Nov 0.0545
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
Common Share Price Performance -- Weekly Closing Price
Line Chart:
5/01/07 $ 15.15
15.30
15.19
15.12
15.00
14.94
14.42
14.02
13.90
13.94
13.95
13.80
13.63
13.61
13.85
13.59
13.25
13.62
13.72
13.89
14.04
13.74
13.78
13.75
13.59
13.50
13.44
13.52
13.27
12.95
12.92
13.20
13.35
13.34
13.05
13.30
13.85
14.08
13.71
14.10
13.96
14.05
13.30
13.14
13.12
13.21
12.97
13.09
13.14
13.30
13.28
13.34
13.48
4/30/08 13.48
Fund Snapshot
- --------------------------------------------------------------------------------
Common Share Price $ 13.48
- --------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.64
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.92%
- --------------------------------------------------------------------------------
Market Yield 4.85%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.20%
- --------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 176,374
- --------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 15.38
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.15
- --------------------------------------------------------------------------------
Average Annual Total Return
(Inception 12/17/92)
- --------------------------------------------------------------------------------
On Share Price On NAV
- --------------------------------------------------------------------------------
1-Year -6.18% 0.77%
- --------------------------------------------------------------------------------
5-Year 3.44% 4.20%
- --------------------------------------------------------------------------------
10-Year 5.05% 5.73%
- --------------------------------------------------------------------------------
Industries
(as a % of total investments)
- --------------------------------------------------------------------------------
Tax Obligation/Limited 26.8%
- --------------------------------------------------------------------------------
U.S. Guaranteed 14.9%
- --------------------------------------------------------------------------------
Health Care 13.8%
- --------------------------------------------------------------------------------
Transportation 12.2%
- --------------------------------------------------------------------------------
Education and Civic Organizations 10.5%
- --------------------------------------------------------------------------------
Water and Sewer 8.5%
- --------------------------------------------------------------------------------
Tax Obligation/General 6.9%
- --------------------------------------------------------------------------------
Other 6.4%
- --------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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 combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0413 and $0.0008 per share,
respectively.
-----
15
-----
NXJ | Nuveen New Jersey
Performance | Dividend Advantage
OVERVIEW | Municipal Fund
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
Pie Chart:
AAA/U.S.
Guaranteed 60%
AA 6%
A 20%
BBB 11%
BB or Lower 2%
N/R 1%
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Bar Chart:
May $ 0.062
Jun 0.058
Jul 0.058
Aug 0.058
Sep 0.058
Oct 0.055
Nov 0.055
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Apr 0.055
Common Share Price Performance -- Weekly Closing Price
Line Chart:
5/01/07 $ 15.66
15.60
15.36
15.25
14.93
15.33
14.51
14.01
13.98
14.17
14.08
13.74
13.75
13.66
13.71
13.70
13.10
13.67
13.69
14.07
14.40
13.70
13.90
13.49
13.68
13.42
13.33
13.41
13.08
12.70
12.88
12.95
13.15
12.92
12.89
12.93
13.64
13.70
13.46
13.74
13.50
13.70
12.90
12.90
12.60
12.98
12.62
12.39
12.80
12.96
13.02
13.00
13.00
4/30/08 13.11
Fund Snapshot
- --------------------------------------------------------------------------------
Common Share Price $ 13.11
- --------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.26
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.06%
- --------------------------------------------------------------------------------
Market Yield 5.03%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.46%
- --------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 93,762
- --------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.82
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.05
- --------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/27/01)
- --------------------------------------------------------------------------------
On Share Price On NAV
- --------------------------------------------------------------------------------
1-Year -12.31% -0.81%
- --------------------------------------------------------------------------------
5-Year 3.75% 4.77%
- --------------------------------------------------------------------------------
Since
Inception 3.91% 5.79%
- --------------------------------------------------------------------------------
Industries
(as a % of total investments)
- --------------------------------------------------------------------------------
Tax Obligation/Limited 22.3%
- --------------------------------------------------------------------------------
Water and Sewer 15.7%
- --------------------------------------------------------------------------------
Health Care 15.2%
- --------------------------------------------------------------------------------
U.S. Guaranteed 13.7%
- --------------------------------------------------------------------------------
Education and Civic Organizations 11.8%
- --------------------------------------------------------------------------------
Transportation 11.7%
- --------------------------------------------------------------------------------
Other 9.6%
- --------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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 combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0269 per share.
- -----
16
- -----
NUJ | Nuveen New Jersey
Performance | Dividend Advantage
OVERVIEW | Municipal Fund 2
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
Pie Chart:
AAA/U.S.
Guaranteed 52%
AA 7%
A 24%
BBB 13%
BB or Lower 3%
N/R 1%
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Bar Chart:
May $ 0.0660
Jun 0.0615
Jul 0.0615
Aug 0.0615
Sep 0.0615
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
Common Share Price Performance -- Weekly Closing Price
Line Chart:
5/01/07 $ 16.40
16.34
16.25
16.39
15.87
15.65
15.33
14.84
14.98
14.96
15.10
14.82
14.68
14.85
14.72
14.59
13.94
14.21
14.30
14.62
14.75
14.58
14.81
14.60
14.47
14.40
14.02
13.94
13.66
13.45
13.35
13.58
13.81
13.49
13.34
13.26
13.95
14.20
13.98
14.12
14.46
14.24
13.50
13.27
13.05
13.20
12.99
12.99
13.34
13.45
13.43
13.49
13.51
4/30/08 13.59
Fund Snapshot
- --------------------------------------------------------------------------------
Common Share Price $ 13.59
- --------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.35
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.30%
- --------------------------------------------------------------------------------
Market Yield 5.08%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.54%
- --------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 64,904
- --------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.88
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.41
- --------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/25/02)
- --------------------------------------------------------------------------------
On Share Price On NAV
- --------------------------------------------------------------------------------
1-Year -12.41% -0.60%
- --------------------------------------------------------------------------------
5-Year 4.26% 5.17%
- --------------------------------------------------------------------------------
Since
Inception 4.47% 6.20%
- --------------------------------------------------------------------------------
Industries
(as a % of total investments)
- --------------------------------------------------------------------------------
Health Care 20.2%
- --------------------------------------------------------------------------------
Tax Obligation/Limited 18.2%
- --------------------------------------------------------------------------------
U.S. Guaranteed 17.5%
- --------------------------------------------------------------------------------
Transportation 15.2%
- --------------------------------------------------------------------------------
Education and Civic Organizations 10.0%
- --------------------------------------------------------------------------------
Long-Term Care 6.0%
- --------------------------------------------------------------------------------
Other 12.9%
- --------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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 combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.1515 per share.
-----
17
-----
NQP | Nuveen Pennsylvania
Performance | Investment Quality
OVERVIEW | Municipal Fund
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
Pie Chart:
AAA/U.S.
Guaranteed 60%
AA 21%
A 12%
BBB 6%
N/R 1%
2007-2008 Monthly Tax-Free Dividends Per Common Share
Bar Chart:
May $ 0.0535
Jun 0.0535
Jul 0.0535
Aug 0.0550
Sep 0.0550
Oct 0.0550
Nov 0.0550
Dec 0.0550
Jan 0.0550
Feb 0.0550
Mar 0.0550
Apr 0.0550
Common Share Price Performance -- Weekly Closing Price
Line Chart:
5/01/07 $ 14.05
14.10
14.01
13.97
13.85
13.86
13.51
13.48
13.33
13.40
13.51
13.27
13.31
13.24
13.37
13.15
13.08
13.20
13.28
13.46
13.50
13.31
13.65
13.50
13.44
13.34
13.47
13.46
12.96
12.65
12.64
12.74
13.01
12.95
12.64
12.93
13.54
13.72
13.42
13.67
13.57
13.52
12.92
12.73
12.39
12.88
12.57
12.38
12.76
12.90
12.92
13.23
13.09
4/30/08 13.10
Fund Snapshot
- --------------------------------------------------------------------------------
Common Share Price $ 13.10
- --------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.39
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.96%
- --------------------------------------------------------------------------------
Market Yield 5.04%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.22%
- --------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 232,528
- --------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.22
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.07
- --------------------------------------------------------------------------------
Average Annual Total Return
(Inception 2/21/91)
- --------------------------------------------------------------------------------
On Share Price On NAV
- --------------------------------------------------------------------------------
1-Year -1.78% -0.92%
- --------------------------------------------------------------------------------
5-Year 2.46% 3.72%
- --------------------------------------------------------------------------------
10-Year 3.26% 5.06%
- --------------------------------------------------------------------------------
Industries
(as a % of total investments)
- --------------------------------------------------------------------------------
Tax Obligation/General 19.9%
- --------------------------------------------------------------------------------
U.S. Guaranteed 19.0%
- --------------------------------------------------------------------------------
Education and Civic Organizations 17.1%
- --------------------------------------------------------------------------------
Transportation 8.5%
- --------------------------------------------------------------------------------
Health Care 7.7%
- --------------------------------------------------------------------------------
Tax Obligation/Limited 5.8%
- --------------------------------------------------------------------------------
Housing/Single Family 5.4%
- --------------------------------------------------------------------------------
Water and Sewer 4.4%
- --------------------------------------------------------------------------------
Utilities 4.4%
- --------------------------------------------------------------------------------
Other 7.8%
- --------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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 combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
- -----
18
- -----
NPY | Nuveen Pennsylvania
Performance | Premium Income
OVERVIEW | Municipal Fund 2
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
Pie Chart:
AAA/U.S.
Guaranteed 56%
AA 16%
A 11%
BBB 10%
BB or Lower 3%
N/R 4%
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Bar Chart:
May $ 0.0535
Jun 0.0535
Jul 0.0535
Aug 0.0535
Sep 0.0535
Oct 0.0495
Nov 0.0495
Dec 0.0495
Jan 0.0495
Feb 0.0495
Mar 0.0495
Apr 0.0495
Common Share Price Performance -- Weekly Closing Price
Line Chart:
5/01/07 $ 13.80
13.76
13.61
13.70
13.51
13.54
13.28
13.16
13.04
13.16
13.06
12.97
13.01
13.07
13.18
12.93
12.43
12.73
12.95
13.10
13.37
13.05
12.97
12.91
12.74
12.77
12.60
12.64
12.34
11.94
12.13
12.31
12.41
12.21
12.07
12.34
12.77
12.93
12.71
12.84
12.85
12.87
12.23
12.23
11.83
12.10
11.92
11.80
12.05
12.25
12.15
12.35
12.35
4/30/08 12.30
Fund Snapshot
- --------------------------------------------------------------------------------
Common Share Price $ 12.30
- --------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.74
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -10.48%
- --------------------------------------------------------------------------------
Market Yield 4.83%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 6.92%
- --------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 215,252
- --------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.99
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.17
- --------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/18/93)
- --------------------------------------------------------------------------------
On Share Price On NAV
- --------------------------------------------------------------------------------
1-Year -5.26% -2.06%
- --------------------------------------------------------------------------------
5-Year 2.19% 3.67%
- --------------------------------------------------------------------------------
10-Year 5.11% 5.41%
- --------------------------------------------------------------------------------
Industries
(as a % of total investments)
- --------------------------------------------------------------------------------
Education and Civic Organizations 15.1%
- --------------------------------------------------------------------------------
Transportation 13.5%
- --------------------------------------------------------------------------------
U.S. Guaranteed 13.4%
- --------------------------------------------------------------------------------
Tax Obligation/General 12.1%
- --------------------------------------------------------------------------------
Utilities 8.8%
- --------------------------------------------------------------------------------
Health Care 8.1%
- --------------------------------------------------------------------------------
Water and Sewer 7.9%
- --------------------------------------------------------------------------------
Tax Obligation/Limited 5.6%
- --------------------------------------------------------------------------------
Long-Term Care 4.4%
- --------------------------------------------------------------------------------
Other 11.1%
- --------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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 combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0439 per share.
-----
19
-----
NXM | Nuveen Pennsylvania
Performance | Dividend Advantage
OVERVIEW | Municipal Fund
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
Pie Chart:
AAA/U.S.
Guaranteed 47%
AA 19%
A 14%
BBB 9%
BB or Lower 5%
N/R 6%
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Bar Chart:
May $ 0.0640
Jun 0.0600
Jul 0.0600
Aug 0.0600
Sep 0.0600
Oct 0.0570
Nov 0.0570
Dec 0.0570
Jan 0.0570
Feb 0.0570
Mar 0.0570
Apr 0.0570
Common Share Price Performance -- Weekly Closing Price
Line Chart:
5/01/07 $ 15.77
15.53
15.45
15.37
15.30
15.50
15.25
15.06
14.81
14.77
14.77
14.51
14.25
14.25
14.37
14.09
13.32
13.60
13.90
14.17
14.19
14.08
13.98
13.90
13.83
13.88
13.57
13.50
13.43
12.93
12.95
13.14
13.45
13.03
12.92
13.16
13.76
13.92
13.80
13.77
13.82
13.72
13.33
13.59
13.01
13.07
12.82
13.00
13.30
13.20
13.27
13.63
13.79
4/30/08 13.61
Fund Snapshot
- --------------------------------------------------------------------------------
Common Share Price $ 13.61
- --------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.47
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.94%
- --------------------------------------------------------------------------------
Market Yield 5.03%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.21%
- --------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 48,211
- --------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 17.31
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.75
- --------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/27/01)
- --------------------------------------------------------------------------------
On Share Price On NAV
- --------------------------------------------------------------------------------
1-Year -8.46% -0.87%
- --------------------------------------------------------------------------------
5-Year 4.00% 4.65%
- --------------------------------------------------------------------------------
Since
Inception 5.08% 6.64%
- --------------------------------------------------------------------------------
Industries
(as a % of total investments)
- --------------------------------------------------------------------------------
Education and Civic Organizations 21.2%
- --------------------------------------------------------------------------------
Health Care 12.9%
- --------------------------------------------------------------------------------
Long-Term Care 12.0%
- --------------------------------------------------------------------------------
U.S. Guaranteed 9.4%
- --------------------------------------------------------------------------------
Tax Obligation/Limited 9.3%
- --------------------------------------------------------------------------------
Tax Obligation/General 8.5%
- --------------------------------------------------------------------------------
Transportation 7.7%
- --------------------------------------------------------------------------------
Housing/Single Family 4.8%
- --------------------------------------------------------------------------------
Other 14.2%
- --------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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 combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0516 per share.
- -----
20
- -----
NVY | Nuveen Pennsylvania
Performance | Dividend Advantage
OVERVIEW | Municipal Fund 2
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
Pie Chart:
AAA/U.S.
Guaranteed 46%
AA 21%
A 9%
BBB 15%
BB or Lower 4%
N/R 5%
2007-2008 Monthly Tax-Free Dividends Per Share(3)
Bar Chart:
May $ 0.0610
Jun 0.0610
Jul 0.0610
Aug 0.0610
Sep 0.0610
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
Common Share Price Performance -- Weekly Closing Price
Line Chart:
5/01/07 $ 15.12
15.09
15.50
15.45
14.90
15.30
14.72
14.78
14.43
14.51
14.56
14.35
14.43
14.50
14.20
13.99
13.60
13.78
13.86
14.16
14.65
14.24
14.14
14.10
13.84
13.97
13.89
13.58
13.23
13.18
13.15
13.32
13.50
13.06
13.29
13.18
13.81
14.02
14.22
14.22
14.64
14.40
13.92
14.00
13.20
13.70
13.17
13.16
13.42
13.68
13.48
13.52
13.64
4/30/08 13.40
Fund Snapshot
- --------------------------------------------------------------------------------
Common Share Price $ 13.40
- --------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.49
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.52%
- --------------------------------------------------------------------------------
Market Yield 5.15%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.38%
- --------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 53,997
- --------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 15.32
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.32
- --------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/25/02)
- --------------------------------------------------------------------------------
On Share Price On NAV
- --------------------------------------------------------------------------------
1-Year -6.81% -0.60%
- --------------------------------------------------------------------------------
5-Year 3.46% 4.40%
- --------------------------------------------------------------------------------
Since
Inception 4.18% 6.12%
- --------------------------------------------------------------------------------
Industries
(as a % of total investments)
- --------------------------------------------------------------------------------
U.S. Guaranteed 19.5%
- --------------------------------------------------------------------------------
Tax Obligation/Limited 15.6%
- --------------------------------------------------------------------------------
Tax Obligation/General 14.8%
- --------------------------------------------------------------------------------
Education and Civic Organizations 11.1%
- --------------------------------------------------------------------------------
Health Care 11.0%
- --------------------------------------------------------------------------------
Water and Sewer 6.2%
- --------------------------------------------------------------------------------
Long-Term Care 4.7%
- --------------------------------------------------------------------------------
Industrials 3.9%
- --------------------------------------------------------------------------------
Other 13.2%
- --------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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 combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0487 per share.
-----
21
-----
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
The Board of Directors/Trustees and Shareholders
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
Nuveen New Jersey Premium Income Municipal Fund, Inc.
Nuveen New Jersey Dividend Advantage Municipal Fund
Nuveen New Jersey Dividend Advantage Municipal Fund 2
Nuveen Pennsylvania Investment Quality Municipal Fund
Nuveen Pennsylvania Premium Income Municipal Fund 2
Nuveen Pennsylvania Dividend Advantage Municipal Fund
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen New Jersey Investment Quality Municipal
Fund, Inc., Nuveen New Jersey Premium Income Municipal Fund, Inc., Nuveen New
Jersey Dividend Advantage Municipal Fund, Nuveen New Jersey Dividend Advantage
Municipal Fund 2, Nuveen Pennsylvania Investment Quality Municipal Fund, Nuveen
Pennsylvania Premium Income Municipal Fund 2, Nuveen Pennsylvania Dividend
Advantage Municipal Fund and Nuveen Pennsylvania Dividend Advantage Municipal
Fund 2 (the Funds) as of April 30, 2008, and the related statements of
operations and cash flows (Nuveen Pennsylvania Investment Quality Municipal Fund
only) for the year then ended, the statements of changes in net assets and
financial highlights for each of 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 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 April 30, 2008, by correspondence with the custodian and
brokers or by 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 New Jersey Investment Quality Municipal Fund, Inc., Nuveen New Jersey
Premium Income Municipal Fund, Inc., Nuveen New Jersey Dividend Advantage
Municipal Fund, Nuveen New Jersey Dividend Advantage Municipal Fund 2, Nuveen
Pennsylvania Investment Quality Municipal Fund, Nuveen Pennsylvania Premium
Income Municipal Fund 2, Nuveen Pennsylvania Dividend Advantage Municipal Fund
and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 at April 30, 2008,
the results of their operations and cash flows (Nuveen Pennsylvania Investment
Quality Municipal Fund only) for the year then ended, changes in their net
assets and their financial highlights for each of the periods indicated therein
in conformity with U.S. generally accepted accounting principles.
/s/ Ernest & Young LLP
Chicago, Illinois
June 23, 2008
- -----
22
- -----
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc.
| Portfolio of INVESTMENTS
April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.4% (0.3% of Total Investments)
Middlesex County Improvement Authority, New Jersey, Senior Revenue
Bonds, Heldrich Center Hotel/Conference Center Project, Series 2005A:
$ 800 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 671,928
690 5.125%, 1/01/37 1/15 at 100.00 Baa3 577,813
- ------------------------------------------------------------------------------------------------------------------------------------
1,490 Total Consumer Discretionary 1,249,741
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 3.9% (2.6% of Total Investments)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2007-1A:
4,300 4.750%, 6/01/34 6/17 at 100.00 BBB 3,400,956
10,000 5.000%, 6/01/41 6/17 at 100.00 BBB 8,003,798
- ------------------------------------------------------------------------------------------------------------------------------------
14,300 Total Consumer Staples 11,404,754
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 16.9% (11.0% of Total
Investments)
1,000 New Jersey Economic Development Authority, Revenue Bonds, The Seeing 6/15 at 100.00 AAA 1,033,690
Eye Inc., Series 2005, 5.000%, 12/01/24 - AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 N/R 1,866,400
Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32 -
ACA Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 502,425
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, Georgian 7/17 at 100.00 BBB+ 969,940
Court University, Series 2007D, 5.000%, 7/01/27
New Jersey Educational Facilities Authority, Revenue Bonds, Kean
University, Series 2007D:
3,555 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 A- 3,588,630
3,145 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 A- 3,153,963
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, Kean No Opt. Call A- 3,000,000
University, Series 2007E-1, 9.110%, 7/01/37 - FGIC Insured
120 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 125,308
Montclair State University, Series 2004L, 5.125%, 7/01/22 - MBIA
Insured
1,225 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 A2 1,301,808
Montclair State University, Series 2005F, 5.000%, 7/01/16 - FGIC
Insured
2,770 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 2,808,752
Montclair State University, Series 2006A, 5.000%, 7/01/36 - AMBAC
Insured
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2001G:
1,000 5.250%, 7/01/20 - MBIA Insured 7/11 at 100.00 AAA 1,037,560
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,018,054
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2004B:
1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 1,308,056
2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 2,560,451
185 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 176,847
-----
23
-----
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
$ 1,495 New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo 7/14 at 100.00 A- $ 1,575,521
College, Series 2004H, 5.000%, 7/01/16 - FGIC Insured
610 New Jersey Educational Facilities Authority, Revenue Bonds, Rider 7/14 at 100.00 AA 624,677
University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
510 New Jersey Educational Facilities Authority, Revenue Bonds, Rider 7/12 at 100.00 AA 501,886
University, Series 2007C, 5.000%, 7/01/37 - RAAI Insured
1,430 New Jersey Educational Facilities Authority, Revenue Bonds, William 7/14 at 100.00 A 1,469,454
Paterson University, Series 2004A, 5.125%, 7/01/21 - FGIC Insured
1,050 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,063,325
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 - RAAI
Insured
2,640 New Jersey Higher Education Assistance Authority, Student Loan 6/08 at 101.00 AAA 2,673,396
Revenue Bonds, New Jersey Class Loan Program, Series 1997A,
5.800%, 6/01/16 - MBIA Insured (Alternative Minimum Tax)
2,000 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 AAA 2,083,820
Revenue Bonds, Series 2000A, 6.125%, 6/01/17 - MBIA Insured
(Alternative Minimum Tax)
4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 4,216,620
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart, Series
2001, 5.250%, 9/01/21
University of Medicine and Dentistry of New Jersey, Certificates of
Participation, Child Health Institute, LLC, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 1,992,516
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,398,277
University of Medicine and Dentistry of New Jersey, Revenue Bonds,
Series 2002A:
2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,126,502
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,082,520
- ------------------------------------------------------------------------------------------------------------------------------------
48,600 Total Education and Civic Organizations 49,260,398
- ------------------------------------------------------------------------------------------------------------------------------------
Financials - 1.7% (1.1% of Total Investments)
5,000 New Jersey Economic Development Authority, Revenue Refunding Bonds, No Opt. Call Baa3 4,867,650
Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 23.1% (15.1% of Total Investments)
Camden County Improvement Authority, New Jersey, Revenue Bonds,
Cooper Health System, Series 2004A:
200 5.000%, 2/15/25 2/15 at 100.00 BBB 187,860
1,000 5.750%, 2/15/34 8/14 at 100.00 BBB 971,130
1,920 New Jersey Health Care Facilities Finance Authority, Revenue Bonds, 7/18 at 100.00 A+ 1,895,405
AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27 (WI/DD,
Settling 5/14/08)
5,750 New Jersey Health Care Facilities Financing Authority, FHA-Insured 8/11 at 100.00 AAA 5,721,825
Mortgage Revenue Bonds, Jersey City Medical Center, Series 2001,
5.000%, 8/01/41 - AMBAC Insured
2,000 New Jersey Health Care Facilities Financing Authority, New Jersey, 7/18 at 100.00 Baa2 1,950,140
Revenue Bonds, Saint Peters University Hospital, Series 2007,
5.750%, 7/01/37
3,750 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 3,578,250
Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%,
7/01/37
2,840 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa1 2,695,387
Bonds, Capital Health System Obligated Group, Series 2003A,
5.375%, 7/01/33
1,265 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aaa 1,283,507
Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 -
AGC Insured
- -----
24
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$ 400 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 $ 368,864
Bonds, Children's Specialized Hospital, Series 2005A, 5.500%,
7/01/36
650 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 625,268
Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36
615 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 603,893
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,052,920
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.500%, 7/01/21
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 3,582,145
Bonds, Meridian Health System Obligated Group, Series 1999,
5.250%, 7/01/29 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100.00 A2 3,971,121
2,000 5.750%, 7/01/31 7/10 at 100.00 A2 2,033,200
1,600 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 AA 1,560,416
Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%, 7/01/35 -
RAAI Insured
1,885 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 1,752,239
Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%,
7/01/29
2,850 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 AA 2,822,925
Bonds, Shore Memorial Health System, Series 2003, 5.000%, 7/01/23 -
RAAI Insured
5,040 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 AAA 5,119,834
Bonds, Society of the Valley Hospital Obligated Group, Series
2000, 5.375%, 7/01/31 - AMBAC Insured
3,300 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 2,756,622
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
2,160 5.000%, 7/01/36 7/16 at 100.00 A3 2,102,566
1,965 5.000%, 7/01/46 7/16 at 100.00 A3 1,880,800
1,690 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 1,750,147
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 - RAAI
Insured
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 2,056,140
Bonds, St. Peter's University Hospital, Series 2000A, 6.875%,
7/01/20
3,135 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 3,002,828
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
2,605 New Jersey Health Care Facilities Financing Authority, Revenue 7/08 at 101.00 Aaa 2,635,609
Refunding Bonds, St. Barnabas Healthcare System - West Hudson
Hospital Obligated Group, Series 1998A, 5.000%, 7/01/23 - MBIA
Insured
3,600 New Jersey Health Facilities Financing Authority, Revenue Bonds, 7/18 at 100.00 AAA 3,634,056
Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC Insured
3,730 Newark, New Jersey, GNMA Collateralized Healthcare Facility Revenue 6/12 at 102.00 Aaa 3,810,158
Bonds, New Community Urban Renewal Corporation, Series 2001A,
5.200%, 6/01/30
- ------------------------------------------------------------------------------------------------------------------------------------
68,300 Total Health Care 67,405,255
- ------------------------------------------------------------------------------------------------------------------------------------
-----
25
-----
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.2% (0.8% of Total Investments)
$ 645 Long Branch Housing Finance Corporation New Jersey, Housing Revenue 10/08 at 100.00 N/R $ 648,831
Bonds, Washington Manor Associates Ltd. Section 8 Assisted
Elderly Project, Series 1980, 10.000%, 10/01/11
2,743 Newark Housing Authority, New Jersey, GNMA Collateralized Housing 10/09 at 102.00 Aaa 2,823,616
Revenue Bonds, Fairview Apartments Project, Series 2000A, 6.400%,
10/20/34 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
3,388 Total Housing/Multifamily 3,472,447
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.5% (2.3% of Total Investments)
2,595 New Jersey Housing and Mortgage Finance Agency, Home Buyer Program 10/08 at 100.75 AAA 2,608,235
Revenue Bonds, Series 1997U, 5.850%, 4/01/29 - MBIA Insured
(Alternative Minimum Tax)
2,085 New Jersey Housing and Mortgage Finance Agency, Home Buyer Program 10/10 at 100.00 AAA 2,135,249
Revenue Bonds, Series 2000CC, 5.875%, 10/01/31 - MBIA Insured
(Alternative Minimum Tax)
350 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 309,393
Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37
(Alternative Minimum Tax)
2,545 Puerto Rico Housing Finance Corporation, Mortgage-Backed Securities 6/11 at 100.00 AAA 2,560,728
Home Mortgage Revenue Bonds, Series 2001A, 5.200%, 12/01/33
2,545 Puerto Rico Housing Finance Corporation, Mortgage-Backed Securities 6/11 at 100.00 AAA 2,552,050
Home Mortgage Revenue Bonds, Series 2001B, 5.300%, 12/01/28
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
10,120 Total Housing/Single Family 10,165,655
- ------------------------------------------------------------------------------------------------------------------------------------
Industrials - 0.3% (0.2% of Total Investments)
980 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 1,021,268
Resource Recovery Revenue Refunding Bonds, Waste Management Inc.
Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put 12/01/09)
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.9% (1.9% of Total Investments)
1,870 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 1,711,069
Development Revenue Bonds, The Evergreens Project, Series 2007,
5.625%, 1/01/38
1,125 New Jersey Economic Development Authority, First Mortgage Revenue 11/14 at 100.00 N/R 1,133,483
Bonds, Winchester Gardens at Wards Homestead, Series 2004A,
5.750%, 11/01/24
2,820 New Jersey Economic Development Authority, GNMA Collateralized 12/11 at 103.00 Aaa 2,875,610
Mortgage Revenue Bonds, Victoria Health Corporation, Series 2001A,
5.200%, 12/20/36
595 New Jersey Economic Development Authority, Revenue Bonds, Masonic 6/11 at 102.00 A- 630,801
Charity Foundation of New Jersey, Series 2001, 5.875%, 6/01/18
1,100 New Jersey Economic Development Authority, Revenue Bonds, Masonic 6/13 at 102.00 A- 1,113,574
Charity Foundation of New Jersey, Series 2002, 5.250%, 6/01/32
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 AA 1,003,990
Bonds, House of the Good Shepherd Obligated Group, Series 2001,
5.100%, 7/01/21 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
8,510 Total Long-Term Care 8,468,527
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 7.5% (4.9% of Total Investments)
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AA- 1,745,985
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AA- 1,665,804
1,000 Essex County, New Jersey, General Obligation Refunding Bonds, Series 5/08 at 101.00 A1 1,009,410
1996A-1, 5.000%, 11/15/11 - FGIC Insured
4,300 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 AAA 4,472,086
5.000%, 9/01/22 - AMBAC Insured
- -----
26
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,500 Middletown Township Board of Education, Monmouth County, New 8/10 at 100.00 AAA $ 1,517,520
Jersey, Refunding School Bonds, Series 2001, 5.000%, 8/01/27 -
FSA Insured
5,000 New Jersey, General Obligation Bonds, Series 1992D, 6.000%, 2/15/11 No Opt. Call AA 5,434,000
915 Ocean City Board of Education, Cape May County, New Jersey, General 4/16 at 100.00 Aaa 977,705
Obligation Bonds, Series 2005, 5.000%, 4/01/20 - MBIA Insured
1,285 Tinton Falls Board of Education, Monmouth County, New Jersey, 10/14 at 100.00 Aaa 1,409,311
General Obligation Bonds, Series 2004, 5.000%, 10/15/15 - FSA
Insured
West Deptford Township, New Jersey, General Obligation Bonds,
Series 2004:
1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aaa 1,804,836
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aaa 1,936,896
- ------------------------------------------------------------------------------------------------------------------------------------
20,880 Total Tax Obligation/General 21,973,553
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 33.6% (21.9% of Total Investments)
1,775 Bergen County Improvement Authority, New Jersey, Guaranteed Lease No Opt. Call Aaa 1,923,142
Revenue Bonds, County Administration Complex Project, Series
2005, 5.000%, 11/15/26
1,965 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 2,148,079
Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 -
AMBAC Insured
2,650 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 2,955,890
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
Gloucester County Improvement Authority, New Jersey, Lease Revenue
Bonds, Series 2005A:
1,100 5.000%, 9/01/18 - MBIA Insured 9/15 at 100.00 AAA 1,181,070
1,000 5.000%, 9/01/21 - MBIA Insured 9/15 at 100.00 AAA 1,054,070
1,420 5.000%, 9/01/22 - MBIA Insured 9/15 at 100.00 AAA 1,491,000
Hudson County Improvement Authority, New Jersey, County Secured
Lease Revenue Bonds, County Services Building Project, Series 2005:
1,090 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,127,954
2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,569,213
1,445 Lower Township Municipal Utilities Authority, Cape May County, New No Opt. Call Baa3 1,540,023
Jersey, Revenue Bonds, Series 2003D, 5.000%, 12/01/16 - FGIC
Insured
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,090,090
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,140,200
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,063,350
5,700 New Jersey Building Authority, State Building Revenue Bonds, Series 6/16 at 100.00 AA- 5,848,941
2007A, 5.000%, 6/15/26
New Jersey Economic Development Authority, Cigarette Tax Revenue
Bonds, Series 2004:
1,965 5.500%, 6/15/24 6/12 at 100.00 BBB 1,905,637
4,000 5.750%, 6/15/34 6/14 at 100.00 BBB 3,843,120
4,675 New Jersey Economic Development Authority, Lease Revenue Bonds, 3/15 at 100.00 AAA 4,819,271
Liberty State Park Project, Series 2005C, 5.000%, 3/01/27 -
FSA Insured
5,000 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AAA 5,436,650
Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured
New Jersey Economic Development Authority, Revenue Bonds, Newark
Downtown District Management Corporation Project, Series 2007:
205 5.125%, 6/15/27 6/17 at 100.00 Baa3 193,530
345 5.125%, 6/15/37 6/17 at 100.00 Baa3 303,869
-----
27
-----
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New Jersey Economic Development Authority, School Facilities
Construction Financing Program Bonds, Series 2007U:
$ 1,965 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AAA $ 2,007,523
3,930 5.000%, 9/01/37 9/17 at 100.00 AA- 4,012,058
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, Higher No Opt. Call AAA 2,121,562
Education Capital Improvement Fund, Series 2005A, 5.000%,
9/01/15 - FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,524,475
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2003, 5.000%, 9/15/25
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2005:
2,885 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AAA 3,031,616
4,455 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 4,540,046
3,405 New Jersey Transit Corporation, Lease Appropriation Bonds, Series 9/15 at 100.00 A2 3,522,541
2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal Highway Aid
Grant Anticipation Bonds, Series 2006:
1,075 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 A1 1,137,963
1,900 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 A1 1,992,568
4,200 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,754,358
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
3,890 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 4,136,354
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
4,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,840,682
System Bonds, Series 2006A, 5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
13,755 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AAA 4,829,105
10,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 2,775,100
15,310 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 3,787,082
2,500 New Jersey Transportation Trust Fund Authority, Transportation 12/17 at 100.00 AAA 2,602,600
System Bonds, Series 2007A, 5.000%, 12/15/26 - AMBAC Insured
1,625 Passaic County Improvement Authority, New Jersey, Lease Revenue 5/15 at 100.00 Aaa 1,640,291
Bonds, Preakness Healthcare Center Project, Series 2005, 5.000%,
5/01/30 - AMBAC Insured
1,315 Puerto Rico Convention Center District Authority, Hotel Occupancy 7/16 at 100.00 A+ 1,254,339
Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured
- ------------------------------------------------------------------------------------------------------------------------------------
121,795 Total Tax Obligation/Limited 98,145,362
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 25.0% (16.4% of Total Investments)
2,250 Casino Reinvestment Development Authority, New Jersey, Parking 6/15 at 100.00 AAA 2,355,368
Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey, Revenue
Bonds, Series 2005:
2,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA 2,039,620
4,050 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 4,116,299
1,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 1,521,975
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, Revenue 1/10 at 100.00 AAA 3,627,575
Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
2,960 Delaware River Port Authority, Pennsylvania and New Jersey, Revenue 1/12 at 100.00 AAA 3,050,073
Refunding Bonds, Port District Project, Series 2001A, 5.200%,
1/01/27 - FSA Insured
- -----
28
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
$ 3,000 New Jersey Economic Development Authority, Revenue Bonds, American 5/08 at 100.00 CCC+ $ 2,208,330
Airlines Inc., Series 1991, 7.100%, 11/01/31 (Alternative
Minimum Tax)
160 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, 6.500%, No Opt. Call AAA 184,222
1/01/16 - MBIA Insured
9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 A 9,780,343
1/01/19 - FGIC Insured
1,265 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.250%, No Opt. Call AAA 1,389,919
1/01/29 - FSA Insured
7,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/15 at 101.00 AA- 7,242,550
Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 - XLCA
Insured
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 2,042,040
Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, One Hundred Twenty-Fifth Series 2002:
2,280 5.000%, 10/15/26 - FSA Insured 4/12 at 101.00 AAA 2,345,824
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,097,900
1,330 Port Authority of New York and New Jersey, One Hundred and Forty 8/17 at 100.00 AAA 1,448,703
Eighth Consolidated Revenue Bonds, RITES Trust 1516, 9.749%,
8/15/32 - FSA Insured (IF)
Port Authority of New York and New Jersey, Special Project Bonds,
JFK International Air Terminal LLC, Sixth Series 1997:
3,500 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 3,896,445
6,605 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 6/08 at 102.00 AAA 6,627,391
12,130 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) 6/08 at 100.00 AAA 12,129,388
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal Revenue 1/13 at 100.00 A 2,018,040
Refunding Bonds, Series 2002K, 5.100%, 1/01/33
- ------------------------------------------------------------------------------------------------------------------------------------
72,030 Total Transportation 73,122,005
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 21.1% (13.8% of Total Investments) (4)
2,500 Bergen County Improvement Authority, New Jersey, Revenue Bonds, 9/12 at 101.00 N/R(4) 2,797,050
Yeshiva Ktana of Passaic Project, Series 2002, 6.000%, 9/15/27
(Pre-refunded 9/01/12)
3,275 Delaware River and Bay Authority, Delaware and New Jersey, Revenue 1/10 at 101.00 AAA 3,487,908
Bonds, Series 2000A, 5.750%, 1/01/29 (Pre-refunded 1/01/10) -
AMBAC Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/13 at 100.00 A-(4) 1,657,785
University, Series 2003D, 5.250%, 7/01/20 (Pre-refunded 7/01/13) -
FGIC Insured
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/16 at 100.00 AAA 2,130,706
University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16)-
MBIA Insured
1,380 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,528,819
Montclair State University, Series 2004L, 5.125%, 7/01/22
(Pre-refunded 7/01/14) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
2,850 5.000%, 7/01/18 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2(4) 3,134,972
1,460 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2(4) 1,605,985
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/12 at 100.00 AAA 2,164,160
Jersey City University, Series 2002A, 5.000%, 7/01/32
(Pre-refunded 7/01/12) - AMBAC Insured
1,300 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/13 at 100.00 A+(4) 1,425,125
University, Series 2003I, 5.125%, 7/01/21 (Pre-refunded 7/01/13) -
FGIC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, Rowan
University, Series 2004C:
1,195 5.000%, 7/01/20 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AAA 1,315,564
1,875 5.000%, 7/01/24 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AAA 2,064,169
-----
29
-----
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (4) (continued)
New Jersey Educational Facilities Authority, Revenue Bonds, St.
Peter's College, Series 1998B:
$ 1,000 5.375%, 7/01/18 (Pre-refunded 7/01/08) 7/08 at 102.00 BB+(4) $ 1,025,230
1,750 5.500%, 7/01/27 (Pre-refunded 7/01/08) 7/08 at 102.00 BB+(4) 1,794,520
7,860 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A3(4) 8,724,441
Bonds, South Jersey Hospital System, Series 2002, 5.875%,
7/01/21 (Pre-refunded 7/01/12)
3,020 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 3,332,600
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 195,424
55 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 63,225
2,505 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,879,623
1,250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 1,384,238
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
7,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 7,819,573
Bonds, Series 2000A, 5.500%, 10/01/34
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
1,275 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,383,299
3,000 6.000%, 6/01/37 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,332,250
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
3,200 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,407,552
2,625 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,948,243
- ------------------------------------------------------------------------------------------------------------------------------------
56,470 Total U.S. Guaranteed 61,602,461
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 4.0% (2.6% of Total Investments)
3,500 Camden County Pollution Control Financing Authority, New Jersey, 6/08 at 100.00 Baa3 3,509,275
Solid Waste Disposal and Resource Recovery System Revenue Bonds,
Series 1991A, 7.500%, 12/01/10 (Alternative Minimum Tax)
755 Camden County Pollution Control Financing Authority, New Jersey, 6/08 at 100.00 Baa3 757,137
Solid Waste Disposal and Resource Recovery System Revenue Bonds,
Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax)
2,055 Mercer County Improvement Authority, New Jersey, Solid Waste 12/13 at 100.00 AA 2,223,387
Revenue Bonds, Regional Sludge Project, Series 2003, 5.000%,
12/15/14 - FGIC Insured
2,500 Salem County Pollution Control Financing Authority, New Jersey, 4/12 at 101.00 Baa1 2,388,150
Pollution Control Revenue Refunding Bonds, PSEG Power LLC
Project, Series 2001A, 5.750%, 4/01/31 (Alternative Minimum Tax)
3,000 Union County Utilities Authority, New Jersey, Solid Waste Facility 6/08 at 101.00 AAA 2,937,660
Senior Lien Revenue Bonds, Ogden Martin Systems of Union Inc.,
Series 1998A, 5.000%, 6/01/23 - AMBAC Insured Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
11,810 Total Utilities 11,815,609
- ------------------------------------------------------------------------------------------------------------------------------------
- -----
30
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 7.9% (5.1% of Total Investments)
$ 3,000 Jersey City Municipal Utilities Authority, Hudson County, New 7/08 at 102.00 Baa3 $ 2,972,640
Jersey, Sewer Revenue Bonds, Series 2001A-2, 5.200%, 7/15/21 -
FGIC Insured (Alternative Minimum Tax)
Lacey Municipal Utilities Authority, Ocean County, New Jersey,
Water Revenue Bonds, Series 2003B:
1,750 5.000%, 12/01/17 - FGIC Insured 12/13 at 100.00 Baa3 1,843,853
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Baa3 1,933,962
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Baa3 1,046,780
7,500 New Jersey Economic Development Authority, Water Facilities Revenue 5/08 at 100.00 Baa3 7,518,675
Bonds, American Water Company, Series 1996, 6.000%, 5/01/36 -
FGIC Insured (Alternative Minimum Tax)
North Hudson Sewerage Authority, New Jersey, Sewerage Revenue
Refunding Bonds, Series 2002A:
3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 Baa3 3,191,220
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Baa3 3,164,940
1,250 Ocean County Utilities Authority, New Jersey, Wastewater Revenue 1/11 at 101.00 Aa1 1,301,088
Refunding Bonds, Series 2000, 5.000%, 1/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
22,335 Total Water and Sewer 22,973,158
- ------------------------------------------------------------------------------------------------------------------------------------
$ 466,008 Total Investments (cost $446,279,228) - 153.0% 446,947,843
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 7,246,508
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.4)% (5) (162,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 292,194,351
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (36.2)%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
-----
31
-----
NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc.
| Portfolio of INVESTMENTS
April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.4% (0.3% of Total Investments)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 480 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 403,157
415 5.125%, 1/01/37 1/15 at 100.00 Baa3 347,525
- ------------------------------------------------------------------------------------------------------------------------------------
895 Total Consumer Discretionary 750,682
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 3.5% (2.4% of Total Investments)
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A:
2,520 4.750%, 6/01/34 6/17 at 100.00 BBB 1,993,118
5,300 5.000%, 6/01/41 6/17 at 100.00 BBB 4,242,014
- ------------------------------------------------------------------------------------------------------------------------------------
7,820 Total Consumer Staples 6,235,132
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 15.7% (10.5% of Total
Investments)
1,125 New Jersey Economic Development Authority, Revenue Bonds, 6/15 at 100.00 AAA 1,162,901
The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 -
AMBAC Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 N/R 466,600
Fairleigh Dickinson University, Series 2002D, 5.250%,
7/01/32 - ACA Insured
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 301,455
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
New Jersey Educational Facilities Authority, Revenue Bonds,
Kean University, Series 2007D:
2,090 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 A- 2,109,771
3,850 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 A- 3,860,973
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call A- 2,000,000
Kean University, Series 2007E-1, 9.110%, 7/01/37 - FGIC Insured
100 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 105,923
Montclair State University, Series 2004L, 5.125%,
7/01/19 - MBIA Insured
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 983,570
Montclair State University, Series 2006A, 5.000%,
7/01/36 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
New Jersey Institute of Technology, Series 2004B:
1,375 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 AAA 1,435,198
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 752,652
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 1,560,753
New Jersey Educational Facilities Authority, Revenue Bonds,
Ramapo College, Series 2004H:
1,640 5.000%, 7/01/18 - FGIC Insured 7/14 at 100.00 A- 1,702,878
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 A- 1,053,697
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 307,218
Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
115 New Jersey Educational Facilities Authority, Revenue Bonds, 6/08 at 100.00 A 115,400
Trenton State College Issue, Series 1976D, 6.750%,
7/01/08
1,405 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA 1,408,850
Loan Revenue Bonds, Series 1999A,
5.250%, 6/01/18 - MBIA Insured (Alternative Minimum Tax)
- -----
32
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
New Jersey Higher Education Assistance Authority, Student
Loan Revenue Bonds, Series 2000A:
$ 1,470 5.700%, 6/01/08 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA $ 1,473,278
985 6.000%, 6/01/15 - MBIA Insured (Alternative Minimum Tax) 6/10 at 101.00 AAA 1,026,784
2,025 University of Medicine and Dentistry of New Jersey, 4/13 at 100.00 AAA 2,064,548
Certificates of Participation, Child Health Institute, LLC,
Series 2003, 5.000%, 4/15/21 - AMBAC Insured
1,000 University of Medicine and Dentistry of New Jersey, 6/14 at 100.00 AAA 1,002,560
Certificates of Participation, University Housing Associates,
LLC, Series 2004, 5.000%, 6/15/29 - MBIA Insured
2,750 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 AAA 2,746,095
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
27,295 Total Education and Civic Organizations 27,641,104
- ------------------------------------------------------------------------------------------------------------------------------------
Financials - 0.8% (0.6% of Total Investments)
1,500 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,460,295
Refunding Bonds, Kapkowski Road Landfill Project, Series
2002, 5.750%, 10/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 20.5% (13.8% of Total Investments)
Camden County Improvement Authority, New Jersey, Revenue
Bonds, Cooper Health System, Series 2004A:
185 5.000%, 2/15/25 2/15 at 100.00 BBB 173,771
620 5.750%, 2/15/34 8/14 at 100.00 BBB 602,101
1,120 New Jersey Health Care Facilities Finance Authority, 7/18 at 100.00 A+ 1,105,653
Revenue Bonds, AHS Hospital Corporation, Series 2008A,
5.000%, 7/01/27 (WI/DD, Settling 5/14/08)
1,615 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 A+ 1,541,033
Revenue Bonds, Atlanticare Regional Medical Center,
Series 2007, 5.000%, 7/01/37
New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Capital Health System Obligated Group,
Series 2003A:
750 5.000%, 7/01/26 7/13 at 100.00 Baa1 708,848
1,670 5.375%, 7/01/33 7/13 at 100.00 Baa1 1,584,964
240 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 221,318
Revenue Bonds, Children's Specialized Hospital, Series
2005A, 5.500%, 7/01/36
2,900 New Jersey Health Care Facilities Financing Authority, 1/10 at 101.00 A3 2,950,025
Revenue Bonds, Hackensack University Medical Center,
Series 2000, 6.000%, 1/01/34
700 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 673,365
Revenue Bonds, Hunterdon Medical Center, Series 2006B,
5.000%, 7/01/36
375 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 368,228
Revenue Bonds, Hunterdon Medical Center, Series 2006,
5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A2 3,530,485
Revenue Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.625%, 7/01/31
1,700 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 1,773,678
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.625%, 7/01/12 - FSA Insured
465 New Jersey Health Care Facilities Financing Authority, 7/12 at 101.00 BBB- 480,517
Revenue Bonds, Palisades Medical Center of New York
Presbyterian Healthcare System, Series 2002, 6.625%,
7/01/31
1,000 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 AA 975,260
Revenue Bonds, RWJ Health Care Corporation, Series
2005B, 5.000%, 7/01/35 - RAAI Insured
1,160 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 BBB 1,078,301
Revenue Bonds, Saint Barnabas Health Care System, Series
2006A, 5.000%, 7/01/29
1,675 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 AA 1,659,088
Revenue Bonds, Shore Memorial Health System, Series
2003, 5.000%, 7/01/23 - RAAI Insured
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 2,106,620
Revenue Bonds, Society of the Valley Hospital Obligated Group,
Series 2000, 5.750%, 7/01/15 - AMBAC Insured
-----
33
-----
NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$ 1,875 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba2 $ 1,566,263
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, South Jersey Hospital System, Series 2006:
1,245 5.000%, 7/01/36 7/16 at 100.00 A3 1,211,895
1,155 5.000%, 7/01/46 7/16 at 100.00 A3 1,105,508
1,270 New Jersey Health Care Facilities Financing Authority, 7/14 at 100.00 AA 1,315,199
Revenue Bonds, St. Clare's Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured
2,050 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 Baa2 2,107,544
Revenue Bonds, St. Peter's University Hospital, Series
2000A, 6.875%, 7/01/20
630 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A+ 647,300
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,710,445
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.000%, 7/01/22 - RAAI Insured
2,160 New Jersey Health Facilities Financing Authority, Revenue 7/18 at 100.00 AAA 2,180,434
Bonds, Meridian Health, Series 2007-I, 5.000%, 7/01/38 -
AGC Insured
2,650 Puerto Rico Industrial, Tourist, Educational, Medical and 6/08 at 101.00 A3 2,757,219
Environmental Control Facilities Financing Authority, Adjustable
Rate Industrial Revenue Bonds, American Home Products Corporation,
Series 1983A, 5.100%, 12/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
36,420 Total Health Care 36,135,062
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 0.4% (0.3% of Total Investments)
340 Essex County Improvement Authority, New Jersey, FNMA 11/12 at 100.00 Aaa 327,672
Enhanced Multifamily Revenue Bonds, Mount Carmel Towers, Series
2002, 4.750%, 11/01/22 (Alternative Minimum Tax)
385 Long Branch Housing Finance Corporation New Jersey, Housing 10/08 at 100.00 N/R 387,287
Revenue Bonds, Washington Manor Associates Ltd. Section 8
Assisted Elderly Project, Series 1980, 10.000%, 10/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
725 Total Housing/Multifamily 714,959
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.6% (1.1% of Total Investments)
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Program Revenue Bonds, Series 1997U:
1,480 5.700%, 10/01/14 - MBIA Insured (Alternative Minimum Tax) 10/08 at 100.75 AAA 1,502,452
390 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 10/08 at 100.75 AAA 391,989
430 New Jersey Housing and Mortgage Finance Agency, Home Buyer No Opt. Call AAA 441,141
Program Revenue Bonds, Series 2000CC, 4.600%, 10/01/09 -
MBIA Insured
605 New Jersey Housing and Mortgage Finance Agency, Single 4/17 at 100.00 AA 534,808
Family Housing Revenue Bonds, Series 2007T, 4.700%,
10/01/37 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
2,905 Total Housing/Single Family 2,870,390
- ------------------------------------------------------------------------------------------------------------------------------------
Industrials - 0.4% (0.2% of Total Investments)
575 Gloucester County Improvement Authority, New Jersey, Solid No Opt. Call BBB 599,213
Waste Resource Recovery Revenue Refunding Bonds, Waste
Management Inc. Project, Series 1999B, 6.850%, 12/01/29
(Mandatory put 12/01/09)
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.6% (1.0% of Total Investments)
1,095 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 1,001,936
Development Revenue Bonds, The Evergreens Project,
Series 2007, 5.625%, 1/01/38
750 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 734,370
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.800%, 11/01/31
1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A- 1,041,740
Masonic Charity Foundation of New Jersey, Series 2001,
5.500%, 6/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
2,845 Total Long-Term Care 2,778,046
- ------------------------------------------------------------------------------------------------------------------------------------
- -----
34
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 10.3% (6.9% of Total Investments)
$ 2,460 Freehold Regional High School District, Monmouth County No Opt. Call AA $ 2,724,844
Board of Education, New Jersey, School District
Refunding Bonds, Series 2001, 5.000%, 3/01/17 - FGIC
Insured
2,500 Jersey City, New Jersey, General Obligation Bonds, Series 9/16 at 100.00 AAA 2,600,050
2006A, 5.000%, 9/01/22 - AMBAC Insured
2,000 Manalapan-Englishtown Regional Board of Education, New 10/13 at 100.00 AAA 2,194,460
Jersey, General Obligation Bonds, Series 2003, 5.000%,
10/01/27 - MBIA Insured
New Jersey, General Obligation Bonds, Series 1992D:
2,580 6.000%, 2/15/11 No Opt. Call AA 2,803,944
1,560 6.000%, 2/15/13 No Opt. Call AA 1,755,858
4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call A3 4,240,520
Bonds, Series 1993, 5.125%, 9/01/12 - FGIC Insured
1,780 West Deptford Township, New Jersey, General Obligation 9/14 at 100.00 Aaa 1,861,791
Bonds, Series 2004, 4.750%, 9/01/17 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
16,880 Total Tax Obligation/General 18,181,467
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 40.0% (26.8% of Total Investments)
1,000 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 1,083,460
Lease Revenue Bonds, County Administration Complex
Project, Series 2005, 5.000%, 11/15/26
5,385 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 5,730,446
Revenue Bonds, Series 2003, 5.125%, 12/15/19 - FSA
Insured
1,155 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 1,262,611
Consolidation Revenue Bonds, Series 2007, 5.250%,
12/15/22 - AMBAC Insured
1,225 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 1,366,402
Farmland Preservation Bonds, Series 2005C, 5.125%,
11/01/18 - FSA Insured
Hudson County Improvement Authority, New Jersey, County
Secured Lease Revenue Bonds, County Services Building
Project, Series 2005:
1,185 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,226,262
2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,803,240
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,090,090
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,063,350
3,450 New Jersey Building Authority, State Building Revenue 6/16 at 100.00 AA- 3,554,294
Bonds, Series 2007A, 5.000%, 6/15/25
New Jersey Economic Development Authority, Cigarette Tax
Revenue Bonds, Series 2004:
1,155 5.500%, 6/15/24 6/12 at 100.00 BBB 1,120,107
2,540 5.750%, 6/15/34 6/14 at 100.00 BBB 2,440,381
3,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 3,479,456
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
New Jersey Economic Development Authority, Revenue Bonds,
Newark Downtown District Management Corporation Project,
Series 2007:
120 5.125%, 6/15/27 6/17 at 100.00 Baa3 113,286
205 5.125%, 6/15/37 6/17 at 100.00 Baa3 180,560
New Jersey Economic Development Authority, School
Facilities Construction Financing Program Bonds, Series 2007U:
1,155 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AAA 1,179,994
2,310 5.000%, 9/01/37 9/17 at 100.00 AA- 2,358,233
2,720 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,746,629
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
New Jersey Health Care Facilities Financing Authority,
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2005:
2,615 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 2,664,920
3,000 5.000%, 9/15/28 - AMBAC Insured 9/15 at 100.00 AAA 3,025,590
-----
35
-----
NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 1,500 New Jersey Sports and Exposition Authority, Convention No Opt. Call AAA $ 1,687,815
Center Luxury Tax Bonds, Series 2004,
5.500%, 3/01/22 - MBIA Insured
3,000 New Jersey Transit Corporation, Certificates of No Opt. Call AAA 3,303,690
Participation, Federal Transit Administration Grants,
Series 2002A, 5.500%, 9/15/14 - AMBAC Insured
1,875 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 A2 1,939,725
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
400 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 A1 423,428
715 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 A1 749,835
2,600 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 2,943,174
Transportation System Bonds, Series 2004B,
5.500%, 12/15/16 - MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, 12/15 at 100.00 AA- 2,169,920
Transportation System Bonds, Series 2005B,
5.250%, 12/15/18 - FGIC Insured
1,110 New Jersey Transportation Trust Fund Authority, 6/15 at 100.00 AAA 1,180,296
Transportation System Bonds, Series 2005D,
5.000%, 6/15/19 - FSA Insured
1,700 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 1,913,758
Transportation System Bonds, Series 2006A,
5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
8,090 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AAA 2,840,237
6,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 1,665,060
4,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 989,440
4,000 New Jersey Transportation Trust Fund Authority, 12/17 at 100.00 AAA 4,164,160
Transportation System Bonds, Series 2007A,
5.000%, 12/15/26 - AMBAC Insured
780 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 A+ 744,019
Occupancy Tax Revenue Bonds, Series 2006A, 4.500%,
7/01/36 - CIFG Insured
2,745 Union County Improvement Authority, New Jersey, General 3/13 at 100.00 Aaa 2,787,191
Obligation Lease Revenue Bonds, Plainfield Park Madison
Redevelopment Project, Series 2003, 5.000%, 3/01/34 -
FSA Insured
2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,548,668
Obligation Lease Revenue Bonds, Series 2003, 5.000%,
6/15/23
- ------------------------------------------------------------------------------------------------------------------------------------
80,135 Total Tax Obligation/Limited 70,539,727
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 18.2% (12.2% of Total Investments)
2,750 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AAA 2,878,783
Parking Revenue Bonds, Series 2005A,
5.250%, 6/01/20 - MBIA Insured
2,500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AAA 2,536,625
Revenue Bonds, Series 2005, 5.000%, 1/01/27 - MBIA
Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
565 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 650,535
345 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 396,519
5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A 5,919,681
5.000%, 1/01/19 - FGIC Insured
2,750 Passaic County Improvement Authority, New Jersey, Revenue 4/15 at 100.00 Aaa 2,791,910
Bonds, Paterson Parking Deck Facility, Series 2005,
5.000%, 4/15/35 - FSA Insured
4,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AA- 4,138,600
Revenue Bonds, One Hundred Fortieth Series 2005, 5.000%,
12/01/28 - XLCA Insured
1,000 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 1,021,020
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
2,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,039,160
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 4/15/32 - FSA Insured
780 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 849,615
Forty Eighth Consolidated Revenue Bonds, RITES Trust
1516, 9.749%, 8/15/32 - FSA Insured (IF)
- -----
36
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
$ 8,000 Port Authority of New York and New Jersey, Special Project Bonds, 6/08 at 102.00 AAA $ 8,027,118
JFK International Air Terminal LLC, Sixth Series 1997, 5.750%,
12/01/22 - MBIA Insured (Alternative Minimum Tax)
850 Trenton Parking Authority, Mercer County, New Jersey, Guaranteed 10/13 at 100.00 Baa2 872,262
Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
31,290 Total Transportation 32,121,828
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 22.2% (14.9% of Total Investments) (4)
2,075 Egg Harbor Township School District, Atlantic County, New Jersey, 4/15 at 100.00 Aaa 2,284,845
General Obligation Bonds, Series 2005, 5.000%, 4/01/27
(Pre-refunded 4/01/15) - MBIA Insured
130 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aaa 143,884
Bonds, Series 2003, 5.125%, 12/15/19 (Pre-refunded 12/15/13) -
FSA Insured
2,705 New Jersey Economic Development Authority, Revenue Bonds, Yeshiva No Opt. Call N/R(4) 3,284,303
Ktana of Passaic, Series 1993, 8.000%, 9/15/18 (ETM)
595 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/16 at 100.00 AAA 658,582
University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16) -
MBIA Insured
1,145 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,268,477
Montclair State University, Series 2004L, 5.125%, 7/01/19
(Pre-refunded 7/01/14) - MBIA Insured
2,080 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 A2(4) 2,287,979
Montclair State University, Series 2005F, 5.000%, 7/01/32
(Pre-refunded 7/01/15) - FGIC Insured
400 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/14 at 100.00 AAA 440,356
University, Series 2004C, 5.000%, 7/01/20 (Pre-refunded 7/01/14) -
MBIA Insured
3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A3(4) 3,329,940
Bonds, South Jersey Hospital System, Series 2002, 5.875%,
7/01/21 (Pre-refunded 7/01/12)
545 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB-(4) 606,285
Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%,
7/01/30 (Pre-refunded 7/01/10)
4,445 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing 7/08 at 101.50 AAA 4,457,046
Revenue Bonds, Series 1997A, 5.550%, 5/01/27 - AMBAC Insured
(Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
465 6.500%, 1/01/16 (ETM) No Opt. Call AAA 534,541
195 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 224,162
120 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 137,946
6,590 6.500%, 1/01/16 (ETM) No Opt. Call AAA 7,575,533
1,760 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 2,023,208
750 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 830,543
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
2,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 AAA 2,350,293
2005RR, 5.000%, 7/01/35 (Pre-refunded 7/01/15) - FGIC Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
3,520 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,748,307
2,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,527,065
350 Trenton Parking Authority, Mercer County, New Jersey, Guaranteed 10/13 at 100.00 Baa2(4) 384,031
Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24
(Pre-refunded 10/01/13) - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
35,245 Total U.S. Guaranteed 39,097,326
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 0.7% (0.5% of Total Investments)
1,250 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 1,268,425
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
-----
37
-----
NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 12.7% (8.5% of Total Investments)
Bayonne Municipal Utilities Authority, New Jersey, Water System
Revenue Refunding Bonds, Series 2003A:
$ 1,450 5.000%, 4/01/19 - XLCA Insured 4/13 at 100.00 A3 $ 1,507,232
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 A3 1,275,600
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, Sewer No Opt. Call AAA 1,098,430
Revenue Refunding Bonds, Series 1993, 6.250%, 1/01/14 - AMBAC
Insured
3,100 New Jersey Economic Development Authority, Water Facilities Revenue 9/08 at 100.00 Aaa 3,101,364
Refunding Bonds, Hackensack Water Company, Series 1994B, 5.900%,
3/01/24 - MBIA Insured (Alternative Minimum Tax)
6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,336,279
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
1,650 New Jersey Water Supply Authority, Water Supply Authority Bonds, 8/15 at 100.00 AAA 1,687,125
Manasquan Reservoir, Series 2005, 5.000%, 8/01/31 - MBIA Insured
3,500 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue 8/12 at 100.00 Baa3 3,679,795
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call Aa2 1,060,940
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, New No Opt. Call AAA 1,625,505
Jersey, Sewer Revenue Refunding Bonds, Series 1993B, 5.750%,
9/01/18 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
21,400 Total Water and Sewer 22,372,270
- ------------------------------------------------------------------------------------------------------------------------------------
$ 267,180 Total Investments (cost $259,849,509) - 149.0% 262,765,926
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 5,207,969
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.9)% (5) (91,600,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 176,373,895
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.9)%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
- -----
38
- -----
NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS
April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.5% (0.3% of Total Investments)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 260 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 218,377
230 5.125%, 1/01/37 1/15 at 100.00 Baa3 192,604
45 New Jersey Economic Development Authority, General Motors No Opt. Call B- 44,271
Corporation, Series 1984, 5.350%, 4/01/09
- ------------------------------------------------------------------------------------------------------------------------------------
535 Total Consumer Discretionary 455,252
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 3.7% (2.5% of Total Investments)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2007-1A:
1,345 4.750%, 6/01/34 6/17 at 100.00 BBB 1,063,787
3,000 5.000%, 6/01/41 6/17 at 100.00 BBB 2,401,140
- ------------------------------------------------------------------------------------------------------------------------------------
4,345 Total Consumer Staples 3,464,927
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 17.5% (11.8% of Total
Investments)
250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 251,213
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
325 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 310,063
Georgian Court University, Series 2007D, 5.250%, 7/01/37
New Jersey Educational Facilities Authority, Revenue Bonds, Kean
University, Series 2007D:
1,115 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 A- 1,125,548
985 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 A- 987,807
60 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 62,869
Montclair State University, Series 2004L, 5.125%, 7/01/21 - MBIA
Insured
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 983,570
Montclair State University, Series 2006A, 5.000%, 7/01/36 -
AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/11 at 100.00 AAA 1,048,800
Jersey Institute of Technology, Series 2001G, 5.250%, 7/01/18 -
MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 1/14 at 100.00 AAA 1,027,480
Jersey Institute of Technology, Series 2004B, 5.000%, 7/01/21 -
AMBAC Insured
1,085 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/11 at 101.00 A+ 1,084,924
College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
630 New Jersey Educational Facilities Authority, Revenue Bonds, William 7/14 at 100.00 A 654,576
Paterson University, Series 2004A, 5.125%, 7/01/19 - FGIC
Insured
300 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 303,807
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 - RAAI
Insured
200 New Jersey Educational Facilities Authority, Revenue Refunding 7/11 at 100.00 AAA 210,312
Bonds, Seton Hall University Project, Series 2001A, 5.250%,
7/01/16 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Refunding
Bonds, Seton Hall University Project, Series 2001G:
3,820 4.875%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AAA 3,867,826
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,611,072
-----
39
-----
NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart, Series 2001:
$ 2,000 5.250%, 9/01/21 9/11 at 100.00 BBB $ 1,991,320
500 5.250%, 9/01/31 9/11 at 100.00 BBB 466,545
500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 464,770
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez University
System, Series 2002, 5.500%, 12/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
16,340 Total Education and Civic Organizations 16,452,502
- ------------------------------------------------------------------------------------------------------------------------------------
Energy - 1.1% (0.7% of Total Investments)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government Refinery 1/13 at 100.00 BBB 1,027,560
Facilities - Hovensa LLC Coker, Series 2002, 6.500%, 7/01/21
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Financials - 1.9% (1.3% of Total Investments)
850 New Jersey Economic Development Authority, Economic Development 11/08 at 101.00 N/R 798,669
Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%,
11/01/28 (Alternative Minimum Tax)
250 New Jersey Economic Development Authority, Industrial Development 10/08 at 100.00 Ba1 251,750
Revenue Refunding Bonds, Newark Airport Marriott Hotel, Series
1996, 7.000%, 10/01/14
750 New Jersey Economic Development Authority, Revenue Refunding Bonds, No Opt. Call Baa3 730,148
Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Financials 1,780,567
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 22.7% (15.2% of Total Investments)
310 Camden County Improvement Authority, New Jersey, Revenue Bonds, 8/14 at 100.00 BBB 301,050
Cooper Health System, Series 2004A, 5.750%, 2/15/34
560 New Jersey Health Care Facilities Finance Authority, Revenue Bonds, 7/18 at 100.00 A+ 552,826
AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27 (WI/DD,
Settling 5/14/08)
865 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 825,383
Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%,
7/01/37
890 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa1 844,681
Bonds, Capital Health System Obligated Group, Series 2003A,
5.375%, 7/01/33
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aaa 1,521,945
Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 -
AGC Insured
130 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 119,881
Bonds, Children's Specialized Hospital, Series 2005A, 5.500%,
7/01/36
400 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 384,780
Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36
180 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 176,749
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,530,485
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.625%, 7/01/31
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
750 5.750%, 7/01/25 7/10 at 100.00 A2 773,595
3,000 5.750%, 7/01/31 7/10 at 100.00 A2 3,049,800
445 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 413,659
Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%,
7/01/29
895 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 AA 886,498
Bonds, Shore Memorial Health System, Series 2003, 5.000%,
7/01/23 - RAAI Insured
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 835,340
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
- -----
40
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care (continued)
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
$ 665 5.000%, 7/01/36 7/16 at 100.00 A3 $ 647,318
615 5.000%, 7/01/46 7/16 at 100.00 A3 588,647
845 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 875,074
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured
1,100 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 1,130,877
Bonds, St. Peter's University Hospital, Series 2000A, 6.875%,
7/01/20
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 A2 2,512,450
Refunding Bonds, Burdette Tomlin Memorial Hospital, Series
1999, 5.500%, 7/01/29
1,280 New Jersey Health Facilities Financing Authority, Revenue Bonds, 7/18 at 100.00 AAA 1,292,109
Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
21,430 Total Health Care 21,263,147
- ------------------------------------------------------------------------------------------------------------------------------------
Industrials - 0.3% (0.2% of Total Investments)
310 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 323,054
Resource Recovery Revenue Refunding Bonds, Waste Management
Inc. Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put
12/01/09)
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.8% (1.9% of Total Investments)
585 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 535,281
Development Revenue Bonds, The Evergreens Project, Series
2007, 5.625%, 1/01/38
250 New Jersey Economic Development Authority, First Mortgage Revenue 11/14 at 100.00 N/R 244,790
Bonds, Winchester Gardens at Wards Homestead, Series 2004A,
5.800%, 11/01/31
New Jersey Economic Development Authority, Revenue Bonds, Masonic
Charity Foundation of New Jersey, Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102.00 A- 1,060,340
335 5.500%, 6/01/31 6/11 at 102.00 A- 342,424
500 New Jersey Economic Development Authority, Revenue Bonds, United 7/08 at 102.00 BB+ 425,220
Methodist Homes of New Jersey Obligated Group, Series 1998,
5.125%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
2,670 Total Long-Term Care 2,608,055
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 2.6% (1.7% of Total Investments)
1,000 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 AAA 1,040,020
5.000%, 9/01/22 - AMBAC Insured
1,350 Puerto Rico, General Obligation and Public Improvement Bonds,
Series 2001, 5.250%, 7/01/27 - FSA Insured 7/11 at 100.00 AAA 1,402,623
- ------------------------------------------------------------------------------------------------------------------------------------
2,350 Total Tax Obligation/General 2,442,643
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 33.1% (22.3% of Total Investments)
600 Bergen County Improvement Authority, New Jersey, Guaranteed Lease No Opt. Call Aaa 650,076
Revenue Bonds, County Administration Complex Project, Series
2005, 5.000%, 11/15/26
1,745 Burlington County Bridge Commission, New Jersey, Guaranteed Pooled 12/13 at 100.00 AAA 1,846,297
Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA Insured
1,000 Camden County Improvement Authority, New Jersey, County Guaranteed 9/15 at 100.00 AAA 1,092,680
Lease Revenue Bonds, Series 2005A, 5.000%, 9/01/16 - FSA Insured
1,100 Casino Reinvestment Development Authority, New Jersey, Hotel Room 1/15 at 102.00 AAA 1,202,135
Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 - AMBAC Insured
500 Essex County Improvement Authority, New Jersey, Lease Revenue Bonds, No Opt. Call Aaa 542,690
Series 2003, 5.000%, 12/15/12 - FSA Insured
620 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 677,765
Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 -
AMBAC Insured
-----
41
-----
NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 815 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA $ 909,075
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
1,785 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 1,828,001
Series 2007A, 5.000%, 6/15/27
New Jersey Economic Development Authority, Cigarette Tax
Revenue Bonds, Series 2004:
615 5.500%, 6/15/24 6/12 at 100.00 BBB 596,421
1,200 5.750%, 6/15/34 6/14 at 100.00 BBB 1,152,936
1,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,304,796
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
New Jersey Economic Development Authority, Revenue Bonds,
Newark Downtown District Management Corporation Project,
Series 2007:
65 5.125%, 6/15/27 6/17 at 100.00 Baa3 61,363
115 5.125%, 6/15/37 6/17 at 100.00 Baa3 101,290
New Jersey Economic Development Authority, School Facilities
Construction Financing Program Bonds, Series 2007U:
615 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AAA 628,309
1,235 5.000%, 9/01/37 9/17 at 100.00 AA- 1,260,787
525 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 578,608
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2005:
925 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AAA 972,009
1,400 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 1,426,726
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,101,230
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/14 - AMBAC Insured
1,000 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 A2 1,034,520
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
350 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 A1 370,500
610 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 A1 639,719
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,471,587
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
1,280 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,361,062
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,463,462
System Bonds, Series 2006A, 5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
4,315 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AAA 1,514,910
3,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 832,530
6,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,484,160
1,000 New Jersey Transportation Trust Fund Authority, Transportation 12/17 at 100.00 AAA 1,041,040
System Bonds, Series 2007A, 5.000%, 12/15/26 - AMBAC Insured
405 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 A+ 386,317
Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 -
CIFG Insured
1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 1,523,805
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
- -----------------------------------------------------------------------------------------------------------------------------------
39,120 Total Tax Obligation/Limited 31,056,806
- -----------------------------------------------------------------------------------------------------------------------------------
- -----
42
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 17.4% (11.7% of Total Investments)
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
$ 1,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA $ 1,019,810
1,000 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 1,016,370
500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 507,325
900 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 825,426
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
50 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AAA 57,570
6.500%, 1/01/16 - MBIA Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A 3,088,530
5.000%, 1/01/19 - FGIC Insured
300 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 329,625
5.250%, 1/01/29 - FSA Insured
500 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 510,510
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
420 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 457,485
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
9.749%, 8/15/32 - FSA Insured (IF)
5,000 Port Authority of New York and New Jersey, Special Project 6/08 at 102.00 AAA 5,016,950
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax)
3,435 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AAA 3,501,742
Transportation System Revenue Bonds, Series 1999, 5.125%,
11/01/22 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
16,105 Total Transportation 16,331,343
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 20.4% (13.7% of Total Investments) (4)
2,400 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 2,565,696
Construction Bonds, Series 2001A, 5.000%, 6/15/21
(Pre-refunded 6/15/11) - AMBAC Insured
385 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 426,141
Kean University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded
7/01/16) - MBIA Insured
690 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 764,410
Montclair State University, Series 2004L, 5.125%, 7/01/21
(Pre-refunded 7/01/14) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
1,200 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2(4) 1,319,988
1,000 5.000%, 7/01/24 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2(4) 1,099,990
520 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2(4) 571,995
415 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 A+(4) 448,067
Rowan College, Series 2001C, 5.000%, 7/01/31 (Pre-refunded
7/01/11) - FGIC Insured
625 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 688,056
Rowan University, Series 2004C, 5.000%, 7/01/24
(Pre-refunded 7/01/14) - MBIA Insured
1,350 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A3(4) 1,498,473
Bonds, South Jersey Hospital System, Series 2002, 5.875%,
7/01/21 (Pre-refunded 7/01/12)
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB-(4) 556,225
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30 (Pre-refunded 7/01/10)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
130 6.500%, 1/01/16 (ETM) No Opt. Call AAA 149,442
20 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 22,991
905 6.500%, 1/01/16 (ETM) No Opt. Call AAA 1,040,343
375 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 415,271
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,562,145
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
2,150 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 2,317,765
Series 2001, 5.250%, 7/01/27 (Pre-refunded 7/01/11) - FSA
Insured
-----
43
-----
NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (4) (continued)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
$ 2,240 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA $ 2,385,286
1,125 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,263,533
- ------------------------------------------------------------------------------------------------------------------------------------
17,530 Total U.S. Guaranteed 19,095,817
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 1.5% (1.0% of Total Investments)
625 Camden County Pollution Control Financing Authority, New 6/08 at 100.00 Baa3 626,769
Jersey, Solid Waste Disposal and Resource Recovery System
Revenue Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative
Minimum Tax)
750 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 761,055
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
1,375 Total Utilities 1,387,824
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 23.4% (15.7% of Total Investments)
225 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 227,522
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 A- 4,576,553
Revenue Bonds, American Water Company, Series 1997B, 5.375%,
5/01/32 - FGIC Insured (Alternative Minimum Tax)
7,000 New Jersey Economic Development Authority, Water Facilities 8/08 at 102.00 AAA 6,876,660
Revenue Bonds, Middlesex Water Company, Series 1998, 5.350%,
2/01/38 - MBIA Insured (Alternative Minimum Tax)
2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA 2,809,466
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue No Opt. Call Aaa 7,435,768
Refunding Bonds, Series 2001A, 0.000%, 8/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
30,475 Total Water and Sewer 21,925,969
- ------------------------------------------------------------------------------------------------------------------------------------
$ 155,435 Total Investments (cost $139,670,244) - 148.9% 139,615,466
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 2,146,566
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.2)% (5) (48,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 93,762,032
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying insurers
both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.4)%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
- -----
44
- -----
NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS
April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary - 0.5% (0.3% of Total Investments)
Middlesex County Improvement Authority, New Jersey, Senior Revenue
Bonds, Heldrich Center Hotel/Conference Center Project, Series 2005A:
$ 180 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 151,184
150 5.125%, 1/01/37 1/15 at 100.00 Baa3 125,612
40 New Jersey Economic Development Authority, General Motors No Opt. Call B- 39,352
Corporation, Series 1984, 5.350%, 4/01/09
- ------------------------------------------------------------------------------------------------------------------------------------
370 Total Consumer Discretionary 316,148
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 3.9% (2.6% of Total Investments)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2007-1A:
950 4.750%, 6/01/34 6/17 at 100.00 BBB 751,374
2,200 5.000%, 6/01/41 6/17 at 100.00 BBB 1,760,836
- ------------------------------------------------------------------------------------------------------------------------------------
3,150 Total Consumer Staples 2,512,210
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 15.1% (10.0% of Total
Investments)
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 A3 3,075,029
College of New Jersey Project, Series 2002C, 4.750%, 7/01/19 -
FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 200,970
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
New Jersey Educational Facilities Authority, Revenue Bonds, Kean
University, Series 2007D:
790 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 A- 797,473
695 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 A- 696,981
575 New Jersey Educational Facilities Authority, Revenue Bonds, New 1/14 at 100.00 AAA 590,801
Jersey Institute of Technology, Series 2004B, 5.000%, 7/01/21 -
AMBAC Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 A 519,505
William Paterson University, Series 2004A, 5.125%, 7/01/19 -
FGIC Insured
1,090 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,103,832
Bonds, Rider University, Series2002A, 5.000%, 7/01/17 - RAAI
Insured
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 996,680
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System, Series
1999, 5.375%, 2/01/19
1,790 University of Medicine and Dentistry of New Jersey, Revenue Bonds, 12/12 at 100.00 AAA 1,787,458
Series 2002A, 5.000%,12/01/31 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
9,640 Total Education and Civic Organizations 9,768,729
- ------------------------------------------------------------------------------------------------------------------------------------
Energy - 1.6% (1.1% of Total Investments)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government Refinery 1/13 at 100.00 BBB 1,027,560
Facilities - Hovensa LLC Coker, Series 2002, 6.500%, 7/01/21
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Financials - 5.0% (3.3% of Total Investments)
600 New Jersey Economic Development Authority, Economic Development 11/08 at 101.00 N/R 563,766
Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%,
11/01/28 (Alternative Minimum Tax)
1,250 New Jersey Economic Development Authority, Industrial Development 10/08 at 100.00 Ba1 1,258,750
Revenue Refunding Bonds, Newark Airport Marriott Hotel, Series
1996, 7.000%, 10/01/14
-----
45
-----
NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Financials (continued)
$ 1,450 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 $ 1,411,619
Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%,
10/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
3,300 Total Financials 3,234,135
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 30.4% (20.2% of Total Investments)
220 Camden County Improvement Authority, New Jersey, Revenue Bonds, 8/14 at 100.00 BBB 213,649
Cooper Health System, Series 2004A, 5.750%, 2/15/34
400 New Jersey Health Care Facilities Finance Authority, Revenue 7/18 at 100.00 A+ 394,876
Bonds, AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27
(WI/DD, Settling 5/14/08)
New Jersey Health Care Facilities Financing Authority, FHA-Insured
Mortgage Revenue Bonds, Jersey City Medical Center, Series 2001:
500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 521,730
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 1,915,568
610 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 582,062
Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%,
7/01/37
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Capital Health System Obligated Group, Series 2003A:
750 5.000%, 7/01/26 7/13 at 100.00 Baa1 708,848
630 5.375%, 7/01/33 7/13 at 100.00 Baa1 597,920
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aaa 1,014,630
Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 -
AGC Insured
90 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 82,994
Bonds, Children's Specialized Hospital, Series 2005A, 5.500%,
7/01/36
250 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 240,488
Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36
120 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 117,833
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Kennedy Health System Obligated Group, Series 2001:
400 5.500%, 7/01/21 7/11 at 100.00 A2 407,056
140 5.625%, 7/01/31 7/11 at 100.00 A2 141,219
510 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 521,970
Bonds, Meridian Health System Obligated Group, Series 1999,
5.250%, 7/01/29 - FSA Insured
1,185 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 1,224,543
Bonds, Palisades Medical Center of New York Presbyterian
Healthcare System, Series 2002, 6.625%, 7/01/31
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 A2 3,558,099
Bonds, Robert Wood Johnson University Hospital, Series 2000,
5.750%, 7/01/31
630 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 AA 624,015
Bonds, Shore Memorial Health System, Series 2003, 5.000%,
7/01/23 - RAAI Insured
700 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 584,738
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
455 5.000%, 7/01/36 7/16 at 100.00 A3 442,902
435 5.000%, 7/01/46 7/16 at 100.00 A3 416,360
775 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 796,754
Bonds, St. Peter's University Hospital, Series 2000A, 6.875%,
7/01/20
1,390 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A+ 1,428,169
Refunding Bonds, Atlantic City Medical Center, Series 2002,
5.750%, 7/01/25
1,150 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 1,101,516
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
- -----
46
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$ 960 New Jersey Health Facilities Financing Authority, Revenue Bonds, 7/18 at 100.00 AAA $ 969,082
Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC Insured
1,100 Puerto Rico Industrial, Tourist, Educational, Medical and 6/08 at 101.00 A3 1,144,506
Environmental Control Facilities Financing Authority, Adjustable
Rate Industrial Revenue Bonds, American Home Products
Corporation, Series 1983A, 5.100%, 12/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
19,825 Total Health Care 19,751,527
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 0.3% (0.2% of Total Investments)
225 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 198,896
Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Industrials - 0.3% (0.2% of Total Investments)
220 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 229,264
Resource Recovery Revenue Refunding Bonds, Waste Management Inc.
Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put 12/01/09)
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 9.0% (6.0% of Total Investments)
415 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 379,729
Development Revenue Bonds, The Evergreens Project, Series 2007,
5.625%, 1/01/38
New Jersey Economic Development Authority, Revenue Bonds, Masonic
Charity Foundation of New Jersey, Series 2001:
1,000 5.500%, 6/01/21 6/11 at 102.00 A- 1,041,740
4,000 5.500%, 6/01/31 6/11 at 102.00 A- 4,088,639
375 New Jersey Economic Development Authority, Revenue Bonds, United 7/08 at 102.00 BB+ 318,915
Methodist Homes of New Jersey Obligated Group, Series 1998,
5.125%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
5,790 Total Long-Term Care 5,829,023
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 1.7% (1.1% of Total Investments)
700 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 AAA 728,014
5.000%, 9/01/22 - AMBAC Insured
385 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 399,029
Series 2001, 5.125%, 7/01/23 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
1,085 Total Tax Obligation/General 1,127,043
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 27.5% (18.2% of Total Investments)
400 Bergen County Improvement Authority, New Jersey, Guaranteed Lease No Opt. Call Aaa 433,384
Revenue Bonds, County Administration Complex Project, Series
2005, 5.000%, 11/15/26
1,000 Burlington County Bridge Commission, New Jersey, Guaranteed Pooled 12/13 at 100.00 AAA 1,058,050
Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA Insured
750 Casino Reinvestment Development Authority, New Jersey, Hotel Room 1/15 at 102.00 AAA 819,638
Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 - AMBAC Insured
435 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 475,529
Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 -
AMBAC Insured
530 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 591,178
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
1,305 New Jersey Building Authority, State Building Revenue Bonds, Series 6/16 at 100.00 AA- 1,339,100
2007A, 5.000%, 6/15/26
New Jersey Economic Development Authority, Cigarette Tax Revenue
Bonds, Series 2004:
435 5.500%, 6/15/24 6/12 at 100.00 BBB 421,859
700 5.750%, 6/15/34 6/14 at 100.00 BBB 672,546
New Jersey Economic Development Authority, Revenue Bonds, Newark
Downtown District Management Corporation Project, Series 2007:
50 5.125%, 6/15/27 6/17 at 100.00 Baa3 47,203
75 5.125%, 6/15/37 6/17 at 100.00 Baa3 66,059
-----
47
-----
NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
New Jersey Economic Development Authority, School Facilities
Construction Financing Program Bonds, Series 2007U:
$ 435 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AAA $ 444,413
870 5.000%, 9/01/37 9/17 at 100.00 AA- 888,166
350 New Jersey Educational Facilities Authority, Revenue Bonds, Higher No Opt. Call AAA 385,739
Education Capital Improvement Fund, Series 2005A, 5.000%,
9/01/15 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2005:
655 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AAA 688,287
985 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 1,003,804
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,101,230
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/14 - AMBAC Insured
765 New Jersey Transit Corporation, Lease Appropriation Bonds, Series 9/15 at 100.00 A2 791,408
2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal Highway Aid
Grant Anticipation Bonds, Series 2006:
295 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 A1 312,278
525 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 A1 550,578
900 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,018,791
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
665 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 707,114
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
800 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 900,592
System Bonds, Series 2006A, 5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
3,040 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AAA 1,067,283
2,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 555,020
5,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,236,800
290 Puerto Rico Convention Center District Authority, Hotel Occupancy 7/16 at 100.00 A+ 276,622
Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured
- ------------------------------------------------------------------------------------------------------------------------------------
24,255 Total Tax Obligation/Limited 17,852,671
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 22.9% (15.2% of Total Investments)
500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AAA 507,325
Revenue Bonds, Series 2005, 5.000%, 1/01/27 - MBIA Insured
600 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 550,284
Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%,
11/15/30 (Alternative Minimum Tax)
2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 A 2,059,020
1/01/19 - FGIC Insured
1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.250%, No Opt. Call AAA 1,648,125
1/01/29 - FSA Insured
500 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 510,510
Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34
3,000 Port Authority of New York and New Jersey, Consolidated Revenue 4/12 at 101.00 AAA 3,086,609
Bonds, One Hundred Twenty-Fifth Series 2002, 5.000%, 10/15/26 -
FSA Insured
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/14 at 100.00 AAA 1,978,980
Bonds, One Hundred Twenty-Seventh Series 2002, 5.125%, 6/15/37 -
AMBAC Insured (Alternative Minimum Tax)
- -----
48
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
Port Authority of New York and New Jersey, Special Project Bonds,
JFK International Air Terminal LLC, Sixth Series 1997:
$ 4,000 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA $ 4,453,077
50 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 6/08 at 102.00 AAA 50,170
- ------------------------------------------------------------------------------------------------------------------------------------
14,150 Total Transportation 14,844,100
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 26.4% (17.5% of Total Investments) (4)
1,000 Bergen County Improvement Authority, New Jersey, Revenue Bonds, 9/12 at 101.00 N/R(4) 1,118,820
Yeshiva Ktana of Passaic Project, Series 2002, 6.000%, 9/15/27
(Pre-refunded 9/01/12)
500 Garden State Preservation Trust, New Jersey, Open Space and Farmland 11/13 at 100.00 AAA 555,550
Preservation Bonds, Series 2003A, 5.250%, 11/01/19 (Pre-refunded
11/01/13) - FSA Insured
2,000 Jackson Township School District, Ocean County, New Jersey, General 4/12 at 100.00 AA(4) 2,156,660
Obligation Bonds, Series 2002, 5.000%, 4/15/21 (Pre-refunded
4/15/12) - FGIC Insured
175 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/16 at 100.00 AAA 193,701
University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16) -
MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
800 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2(4) 879,992
315 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2(4) 346,497
1,250 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A3(4) 1,387,475
Bonds, South Jersey Hospital System, Series 2002, 5.875%, 7/01/21
(Pre-refunded 7/01/12)
1,920 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing 7/08 at 101.50 AAA 1,928,314
Revenue Bonds, Series 1997A, 5.650%, 5/01/40 - AMBAC Insured
(Alternative Minimum Tax)
535 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 590,378
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 195,424
2,430 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,793,407
250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 276,848
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,041,430
Bonds, Series 2000A, 5.500%, 10/01/40
505 Puerto Rico Public Finance Corporation, Commonwealth Appropriation 2/12 at 100.00 AAA 545,238
Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
1,600 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,703,776
1,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,403,925
- ------------------------------------------------------------------------------------------------------------------------------------
15,700 Total U.S. Guaranteed 17,117,435
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 5.1% (3.4% of Total Investments)
285 Camden County Pollution Control Financing Authority, New Jersey, 6/08 at 100.00 Baa3 285,807
Solid Waste Disposal and Resource Recovery System Revenue Bonds,
Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax)
2,300 Guam Power Authority, Revenue Bonds, Series 1999A, 5.250%, 10/01/34 - 10/09 at 101.00 AAA 2,299,885
MBIA Insured
750 New Jersey Economic Development Authority, Pollution Control Revenue No Opt. Call Baa1 761,055
Refunding Bonds, Public Service Electric and Gas Company, Series
2001A, 5.000%, 3/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
3,335 Total Utilities 3,346,747
- ------------------------------------------------------------------------------------------------------------------------------------
-----
49
-----
NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 1.0% (0.7% of Total Investments)
$ 150 Guam Government Waterworks Authority, Water and Wastewater System 7/15 at 100.00 Ba2 $ 151,682
Revenue Bonds, Series 2005, 6.000%, 7/01/25
500 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue 8/12 at 100.00 Baa3 525,685
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
650 Total Water and Sewer 677,367
- ------------------------------------------------------------------------------------------------------------------------------------
$ 102,695 Total Investments (cost $97,536,749) - 150.7% 97,832,855
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 1,571,320
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.2)% (5) (34,500,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 64,904,175
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (35.3)%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
- -----
50
- -----
NQP | Nuveen Pennsylvania Investment Quality Municipal Fund
| Portfolio of INVESTMENTS
April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 0.4% (0.3% of Total Investments)
$ 1,000 Pennsylvania Economic Development Financing Authority, Solid Waste No Opt. Call AA- $ 1,035,400
Disposal Revenue Bonds, Procter & Gamble Paper Project, Series
2001, 5.375%, 3/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 28.2% (17.1% of Total
Investments)
2,000 Allegheny County Higher Education Building Authority, Pennsylvania, 9/08 at 102.00 BBB 2,009,880
College Revenue Bonds, Chatham College, Series 1998A, 5.250%,
9/01/18
200 Allegheny County Higher Education Building Authority, Pennsylvania, No Opt. Call Baa3 202,682
College Revenue Refunding Bonds, Robert Morris College, Series
1998A, 6.000%, 5/01/28
3,000 Allegheny County Higher Education Building Authority, Pennsylvania, 3/12 at 100.00 AA- 3,050,400
Revenue Bonds, Carnegie Mellon University, Series 2002, 5.125%,
3/01/32
1,235 Allegheny County Higher Education Building Authority, Pennsylvania, 2/16 at 100.00 Baa3 1,096,557
Revenue Bonds, Robert Morris University, Series 2006A, 4.750%,
2/15/26
2,000 Chester County Industrial Development Authority, Pennsylvania, 1/12 at 100.00 AAA 2,023,240
Educational Facilities Revenue Bonds, Westtown School, Series
2002, 5.000%, 1/01/26 - AMBAC Insured
3,000 Delaware County Authority, Pennsylvania, Revenue Bonds, Haverford 11/10 at 101.00 AA 3,173,670
College, Series 2000, 5.750%, 11/15/29
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova
University, Series 2006:
1,710 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 1,759,966
840 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 860,479
Erie Higher Education Building Authority, Pennsylvania, College
Revenue Bonds, Gannon University, Series 2007-GG3:
790 5.000%, 5/01/32 - RAAI Insured 5/17 at 100.00 AA 745,736
250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 AA 233,188
1,000 Harveys Lake General Municipal Authority, Pennsylvania, College 11/09 at 100.00 N/R 1,009,050
Revenue Bonds, College of Misericordia Project, Series 1999,
6.000%, 5/01/19 - ACA Insured
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project, Series 1999B:
815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call AAA 598,935
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 566,767
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 534,053
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 503,417
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 473,874
1,515 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,339,184
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
355 New Wilmington, Pennsylvania, Revenue, Westminster College, Series 5/17 at 100.00 AA 333,363
2007G, 5.125%, 5/01/33 - RAAI Insured
8,000 Pennsylvania Higher Education Assistance Agency, Capital Acquisition 11/11 at 100.00 AAA 8,048,480
Revenue Refunding Bonds, Series 2001, 5.000%, 12/15/30 - MBIA
Insured
5,000 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aaa 5,194,900
Revenue Bonds, State System of Higher Education, Series 2002W,
5.000%, 6/15/19 - AMBAC Insured
1,435 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 5/16 at 100.00 A- 1,345,284
Allegheny College, Series 2006, 4.750%, 5/01/31
-----
51
-----
NQP | Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
$ 2,650 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 11/17 at 100.00 AAA $ 2,675,944
Drexel University, Series 2007A, 5.000%, 5/01/37 - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AA 4,976,650
Moravian College, Series 2001, 5.375%, 7/01/31 - RAAI Insured
3,870 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 4/16 at 100.00 AAA 4,029,754
Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA
Insured
320 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 1/13 at 100.00 A1 329,229
Thomas Jefferson University, Series 2002, 5.000%, 1/01/20
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AA+ 2,037,420
University of Pennsylvania, Series 2005C, 5.000%, 7/15/38
2,945 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AA 3,016,092
Ursinus College, Series 2003, 5.375%, 1/01/20 - RAAI Insured
785 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A 799,114
York College Project, Series 2005EE1, 5.250%, 11/01/27 - XLCA
Insured
6,500 Pennsylvania State University, General Revenue Bonds, Series 2005, 9/15 at 100.00 AA 6,680,310
5.000%, 9/01/29 (UB)
Philadelphia Authority for Industrial Development, Pennsylvania,
Revenue Bonds, Franklin Towne Charter High School, Series 2006A:
510 5.250%, 1/01/27 1/17 at 100.00 BBB 469,226
860 5.375%, 1/01/32 1/17 at 100.00 BBB 769,038
2,830 Swarthmore Borough Authority, Pennsylvania, Swarthmore College 9/08 at 100.00 AAA 2,846,584
Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,760,854
Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A,
5.250%, 4/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
66,340 Total Education and Civic Organizations 65,493,320
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 12.7% (7.7% of Total Investments)
1,555 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 1,350,160
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
1,000 Bucks County Industrial Development Authority, Pennsylvania, Revenue No Opt. Call AAA 1,000,000
Bonds, Grand View Hospital, Auction Rate Securities, Series
2004B, 4.500%, 7/01/34 - AMBAC Insured
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, Hamot 11/12 at 100.00 AAA 1,178,399
Health Foundation, Series 2002, 5.250%, 11/01/15 - AMBAC Insured
280 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, Hamot 11/17 at 100.00 A+ 265,541
Health Foundation, Series 2007, 5.000%, 11/01/37 - CIFG Insured
1,890 Lancaster County Hospital Authority, Pennsylvania, Hospital Revenue 3/17 at 100.00 AA- 1,900,660
Bonds, The Lancaster General Hospital Project, Series 2007A,
5.000%, 3/15/26
Lancaster County Hospital Authority, Pennsylvania, Lancaster General
Hospital Auction Rate Reset Securities, Series 2006A:
1,000 5.210%, 7/01/41 - CIFG Insured No Opt. Call AA- 1,000,000
675 4.500%, 7/01/41 - CIFG Insured No Opt. Call AA- 675,000
250 Lebanon County Health Facilities Authority, Pennsylvania, Revenue 11/12 at 101.00 BBB 252,988
Bonds, Good Samaritan Hospital Project, Series 2002, 5.800%,
11/15/22
1,250 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/14 at 100.00 A 1,291,338
Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24
5,345 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/17 at 100.00 AAA 5,491,506
Bonds, Good Shepherd Group, Series 2007, 5.000%, 11/01/30 - AGC
Insured
710 Monroe County Hospital Authority, Pennsylvania, Hospital Revenue 1/17 at 100.00 BBB+ 633,391
Bonds, Pocono Medical Center, Series 2007, 5.125%, 1/01/37
9,000 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 1/11 at 101.00 AA- 9,547,469
UPMC Health System, Series 2001A, 6.000%, 1/15/31
- -----
52
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$ 1,615 Sayre Health Care Facility Authority, Pennsylvania, Revenue Bonds, 7/12 at 100.00 AAA $ 1,722,381
Latrobe Area Hospital, Series 2002A, 5.250%, 7/01/13 -
AMBAC Insured
1,060 Sayre Healthcare Facility Authority, Pennsylvania, Revenue Bonds, 12/17 at 100.00 A 768,553
Guthrie Healthcare System, Series 2007, 4.263%, 12/01/31 - AMBAC
Insured
Southcentral Pennsylvania General Authority, Revenue Bonds, Hanover
Hospital Inc., Series 2005:
525 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA 514,064
370 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 357,194
1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 1,524,840
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of
the Sisters of Christian Charity Project, Series 2001, 6.250%,
1/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
29,140 Total Health Care 29,473,484
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 3.9% (2.4% of Total Investments)
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/17 at 100.00 A- 4,827,450
Bonds, Slippery Rock University Foundation Inc., Series 2007A,
5.000%, 7/01/39 - XLCA Insured
3,300 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 A- 3,153,579
Bonds, Slippery Rock University Foundation Inc., Student Housing
Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
800 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 749,800
Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown -
Morrisville Project, Series 2005A, 5.625%, 7/01/35
285 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Mortgage 8/08 at 100.00 A2 285,376
Revenue Bonds, Series 1992C, 7.125%, 8/01/13 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
9,385 Total Housing/Multifamily 9,016,205
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 8.8% (5.4% of Total Investments)
9,000 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/15 at 100.00 AA+ 8,253,449
Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative Minimum Tax)
2,750 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 4/15 at 100.00 AA+ 2,637,580
Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative Minimum Tax)
3,495 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/15 at 100.00 AA+ 3,294,212
Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative Minimum Tax)
1,355 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/16 at 100.00 AA+ 1,227,047
Bonds, Series 2007-97A, 4.600%, 10/01/27 (Alternative Minimum Tax)
2,130 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/16 at 100.00 AA+ 1,954,062
Bonds, Series 2007-98A, 4.850%, 10/01/31 (Alternative Minimum Tax)
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Mortgage 10/08 at 101.00 AAA 972,614
Revenue Bonds, Series 1997A, 6.250%, 10/01/28 (Alternative
Minimum Tax)
2,140 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Mortgage 10/11 at 100.00 AAA 2,125,619
Revenue Bonds, Series 2001B, 5.450%, 10/01/32 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
21,830 Total Housing/Single Family 20,464,583
- ------------------------------------------------------------------------------------------------------------------------------------
Industrials - 4.5% (2.8% of Total Investments)
5,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A2 5,083,550
Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.375%,
11/01/41 (Alternative Minimum Tax)
5,000 Pennsylvania Industrial Development Authority, Economic Development No Opt. Call AAA 5,415,850
Revenue Bonds, Series 2002, 5.500%, 7/01/12 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
10,000 Total Industrials 10,499,400
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.7% (1.6% of Total Investments)
1,330 Cumberland County Municipal Authority, Pennsylvania, Revenue Bonds, 1/17 at 100.00 N/R 1,114,633
Diakon Lutheran Social Ministries, Series 2007, 5.000%, 1/01/36
1,500 Cumberland County Municipal Authority, Pennsylvania, Revenue Bonds, 12/12 at 100.00 AA 1,476,750
Presbyterian Homes Inc., Series 2003A, 5.000%, 12/01/26 - RAAI
Insured
-----
53
-----
NQP | Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care (continued)
Lancaster County Hospital Authority, Pennsylvania, Health Center
Revenue Bonds, Masonic Homes Project, Series 2006:
$ 1,550 5.000%, 11/01/26 11/16 at 100.00 A+ $ 1,537,988
415 5.000%, 11/01/36 11/16 at 100.00 A+ 394,752
230 Philadelphia Authority for Industrial Development, Pennsylvania, 5/08 at 102.00 N/R 212,129
Health Care Facilities Revenue Bonds, Paul's Run, Series 1998A,
5.875%, 5/15/28
1,500 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,513,395
Revenue Bonds, Philadelphia Corporation for the Aging Project,
Series 2001B, 5.250%, 7/01/26 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
6,525 Total Long-Term Care 6,249,647
- ------------------------------------------------------------------------------------------------------------------------------------
Materials - 1.1% (0.7% of Total Investments)
1,260 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 1,200,163
Solid Waste Disposal Revenue Bonds, International Paper
Company, Series 2005B, 5.200%, 12/01/19
(Alternative Minimum Tax)
1,750 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102.00 N/R 1,511,090
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
3,010 Total Materials 2,711,253
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 32.8% (19.9% of Total Investments)
1,800 Allegheny County, Pennsylvania, General Obligation Bonds, Series 5/11 at 100.00 A 1,858,698
2000C-53, 5.250%, 11/01/20 - FGIC Insured
2,200 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,273,128
Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call Aa2 6,838,560
Government Revenue Bonds, Series 2002, 5.750%, 7/01/17
7,350 Erie City School District, Erie County, Pennsylvania, General No Opt. Call AAA 2,255,201
Obligation Bonds, Series 2000, 0.000%, 9/01/30 - AMBAC Insured
2,345 Lower Merion School District, Montgomery County, Pennsylvania, 9/17 at 100.00 Aaa 2,481,104
General Obligation Bonds, Series 2007, 5.000%, 9/01/24
7,500 Montgomery County, Pennsylvania, General Obligation Bonds, Series 7/09 at 100.00 Aaa 7,612,875
1999, 5.000%, 7/15/24
1,000 New Castle Area School District, Lawrence County, Pennsylvania, 3/10 at 100.00 AAA 1,033,190
General Obligation Bonds, Series 2000, 5.600%, 3/01/25 - MBIA
Insured
5,000 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 5,129,650
Bonds, School District of Philadelphia, Series 2006B, 5.000%,
6/01/33 - FSA Insured (UB)
4,830 Pennsylvania State, General Obligation Bonds, Series 2007, 3/17 at 100.00 AA 5,122,697
Residuals 1986, 8.746%, 3/01/27 (IF)
4,000 Pennsylvania, General Obligation Bonds, First Series 2006, 5.000%, 10/16 at 100.00 AA 4,346,000
10/01/18
1,500 Pennsylvania, General Obligation Bonds, Second Series 2005, 1/16 at 100.00 AA 1,622,850
5.000%, 1/01/18
1,500 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call Aa3 1,537,530
Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured
4,135 Pine-Richland School District, Pennsylvania, School Improvement 7/15 at 100.00 AAA 4,222,497
General Obligation Bonds, Series 2005, 5.000%, 7/15/35 - FSA
Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,398,790
General Obligation Refunding Bonds, Series 2002A, 5.500%,
9/01/15 - FSA Insured
1,070 Schuylkill Valley School District, Berks County, Pennsylvania, 4/16 at 100.00 A1 1,096,675
General Obligation Bonds, Series 2006A, 5.000%,
4/01/22 - FGIC Insured
445 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 N/R 468,460
Revenue Bonds, Conneaut School District, Series 2003, 5.250%,
11/01/21 - FGIC Insured
21,000 State Public School Building Authority, Pennsylvania, Lease No Opt. Call AAA 23,401,140
Revenue Bonds, Philadelphia School District, Series 2003,
5.500%, 6/01/28 - FSA Insured (UB)
- -----
54
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,465 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA $ 1,530,852
General Obligation Bonds, Series 2001A, 5.000%,
4/01/18 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
76,140 Total Tax Obligation/General 76,229,897
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 9.5% (5.8% of Total Investments)
3,500 Allegheny County Port Authority, Pennsylvania, Special 3/11 at 101.00 A 3,500,980
Transportation Revenue Bonds, Series 2001, 5.000%,
3/01/29 - FGIC Insured
8,725 Pennsylvania Intergovernmental Cooperative Authority, Special Tax 6/09 at 100.00 A+ 8,752,047
Revenue Refunding Bonds, Philadelphia Funding Program,
Series 1999, 4.750%, 6/15/23 - FGIC Insured
2,140 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior Lien 12/18 at 100.00 AAA 2,200,177
Revenue Bonds, Series 2003A, 5.000%, 12/01/32
(WI/DD, Settling 5/20/08) - MBIA Insured
2,700 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,905,821
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
4,000 Pittsburgh and Allegheny Counties Public Auditorium Authority, 8/09 at 101.00 AAA 4,005,600
Pennsylvania, Sales Tax Revenue Bonds, Regional Asset District,
Series 1999, 5.000%, 2/01/29 - AMBAC Insured
3,140 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 782,205
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
24,205 Total Tax Obligation/Limited 22,146,830
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 14.0% (8.5% of Total Investments)
630 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 665,960
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
3,000 Delaware River Port Authority, New Jersey and Pennsylvania, No Opt. Call AAA 3,000,000
Revenue Refunding Bonds, Series 2007-4, 4.750%,
1/01/26 - AMBAC Insured
2,035 Lehigh-Northampton Airport Authority, Pennsylvania, Airport 5/10 at 100.00 Aaa 2,055,899
Revenue Bonds, Lehigh Valley Airport System, Series 2000A,
6.000%, 5/15/30 - MBIA Insured (Alternative Minimum Tax)
5,400 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 BBB 5,354,208
Bonds, Amtrak 30th Street Station Parking Garage, Series 2002,
5.800%, 6/01/23 - ACA Insured (Alternative Minimum Tax)
2,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 12/11 at 101.00 AAA 2,236,322
2001R, 5.000%, 12/01/30 - AMBAC Insured
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2006A:
3,820 5.000%, 12/01/22 - AMBAC Insured 6/16 at 100.00 AAA 4,011,535
2,930 5.000%, 12/01/24 - AMBAC Insured 6/16 at 100.00 AAA 3,048,431
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, Series 6/11 at 101.00 A+ 4,837,200
2001B, 5.250%, 6/15/31 - FGIC Insured (Alternative Minimum Tax)
3,600 Philadelphia Airport System, Pennsylvania, Revenue Bonds, Series 6/15 at 100.00 AAA 3,221,568
2005A, 4.750%, 6/15/35 - MBIA Insured (Alternative Minimum Tax)
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,322,508
Revenue Bonds, Series 1999, 5.250%, 9/01/29 - FSA Insured
800 Scranton Parking Authority, Pennsylvania, Guaranteed Revenue 6/17 at 100.00 AA 739,080
Bonds, Series 2007, 5.250%, 6/01/39 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
32,665 Total Transportation 32,492,711
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 31.3% (19.0% of Total Investments) (4)
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, Series 5/11 at 100.00 A (4) 3,812,381
2000C-52, 5.250%, 11/01/23 (Pre-refunded 5/01/11) -
FGIC Insured
1,320 Allegheny County, Pennsylvania, General Obligation Refunding 5/11 at 100.00 A (4) 1,415,198
Bonds, Series 2000C-53, 5.250%, 11/01/20 (Pre-refunded 5/01/11) -
FGIC Insured
-----
55
-----
NQP | Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (4) (continued)
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewerage Revenue Bonds, Series 2001:
$ 5,325 5.100%, 5/01/20 (Pre-refunded 11/01/11) - FGIC Insured 11/11 at 100.00 A3 (4) $ 5,742,959
1,465 5.100%, 5/01/21 (Pre-refunded 11/01/11) - FGIC Insured 11/11 at 100.00 A3 (4) 1,579,988
1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,554,966
Pennsylvania, Sewerage Revenue Bonds, Series 2004, 5.250%,
5/01/20 (Pre-refunded 5/01/14) - MBIA Insured
5,000 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, Series 12/11 at 100.00 AAA 5,416,400
2001A, 5.200%, 12/01/30 (Pre-refunded 12/01/11) - MBIA Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 A (4) 6,824,565
Pennsylvania, General Obligation Bonds, Series 2002, 5.375%,
2/15/18 (Pre-refunded 2/15/12) - FGIC Insured
1,125 Lehigh County General Purpose Authority, Pennsylvania, Hospital 8/13 at 100.00 AAA 1,246,253
Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003,
5.375%, 8/15/33 (Pre-refunded 8/15/13)
680 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 (4) 737,433
Bonds, Thomas Jefferson University, Series 2002, 5.000%,
1/01/20 (Pre-refunded 1/01/13)
10,935 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 11,922,648
Lease Revenue Bonds, Series 2001B, 5.250%, 10/01/30
(Pre-refunded 10/01/11) - FSA Insured
690 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call AAA 816,104
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 Aa3 (4) 2,767,950
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) -
FGIC Insured
Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds,
Series 2001A:
5,525 5.375%, 11/01/20 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 A- (4) 6,092,197
3,185 5.000%, 11/01/31 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 A- (4) 3,461,936
1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Tax 5/09 at 100.00 A1 (4) 1,132,870
Increment Financing District Bonds, Center Triangle Project,
Series 1999A, 6.100%, 5/01/19 (Pre-refunded 5/01/09)
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 A (4) 6,582,388
General Obligation Bonds, Series 2001, 5.250%, 9/15/30
(Pre-refunded 9/15/11) - FGIC Insured
960 St. Mary Hospital Authority, Pennsylvania, Health System Revenue 11/14 at 100.00 A1 (4) 1,073,520
Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34
(Pre-refunded 11/15/14)
2,000 Sto Rox School District, Allegheny County, Pennsylvania, General 12/10 at 100.00 AAA 2,161,160
Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded 12/15/10) - MBIA Insured
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 Baa3 (4) 3,566,070
Pennsylvania, Water and Sewer Revenue Bonds, Series 1991,
7.100%, 12/01/21 (Pre-refunded 11/15/15) - FGIC Insured
3,975 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 4,929,119
Pennsylvania, Special Obligation Bonds, Series 1985A, 9.500%,
11/15/14 (ETM)
- ------------------------------------------------------------------------------------------------------------------------------------
66,100 Total U.S. Guaranteed 72,836,105
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 7.2% (4.4% of Total Investments)
1,250 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call Aaa 1,278,338
Pollution Control Revenue Refunding Bonds, Duquesne Light
Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured
1,210 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,228,271
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000,6.650%, 5/01/10 (Alternative
Minimum Tax)
2,430 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 A- 2,367,914
Pollution Control Revenue Bonds, Pennsylvania Power and Light
Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 716,352
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/13 at 100.00 AAA 2,145,980
Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 - FSA
Insured
5,490 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 AAA 5,493,843
Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
- -----
56
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$ 3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 $ 3,548,744
Pollution Control Revenue Refunding Bonds, PSEG Power Project,
Series 2001A, 5.500%, 9/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
16,780 Total Utilities 16,779,442
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 7.3% (4.4% of Total Investments)
2,100 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 2,210,880
Revenue Bonds, Series 2005A, 5.000%, 12/01/21 - MBIA Insured
2,205 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA 2,330,906
Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
5,000 Delaware County Industrial Development Authority, Pennsylvania, 10/12 at 100.00 AAA 4,940,550
Water Facilities Revenue Bonds, Philadelphia Water Company,
Series 2001, 5.350%, 10/01/31 - AMBAC Insured
(Alternative Minimum Tax)
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water Revenue 7/14 at 100.00 AAA 2,080,980
Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured
1,250 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage Revenue 4/14 at 100.00 AAA 1,311,500
Bonds, Series 2004, 5.000%, 4/01/20 - MBIA Insured
1,815 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 11/12 at 100.00 A- 1,807,540
Series 2001A, 5.000%, 11/01/31 - FGIC Insured
2,150 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 7/15 at 100.00 AAA 2,237,849
Series 2005A, 5.000%, 7/01/23 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
16,520 Total Water and Sewer 16,920,205
- ------------------------------------------------------------------------------------------------------------------------------------
$ 379,640 Total Investments (cost $375,618,349) - 164.4% 382,348,482
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.3)% (21,670,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 3,849,034
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (56.8)% (5) (132,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 232,527,516
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.5)%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS. No. 140.
See accompanying notes to financial statements.
-----
57
-----
NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2
| Portfolio of INVESTMENTS
April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 23.4% (15.1% of Total
Investments)
$ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 N/R $ 953,061
Pennsylvania, College Revenue Bonds, Thiel College, Series
1999A, 5.375%, 11/15/29 - ACA Insured
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 202,682
Pennsylvania, College Revenue Refunding Bonds, Robert Morris
College, Series 1998A, 6.000%, 5/01/28
1,245 Allegheny County Higher Education Building Authority, 3/14 at 100.00 A- 1,299,282
Pennsylvania, Revenue Bonds, Duquesne University, Series 2004A,
5.000%, 3/01/19 - FGIC Insured
1,140 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 1,012,206
Pennsylvania, Revenue Bonds, Robert Morris University, Series
2006A, 4.750%, 2/15/26
3,000 Chester County Health and Education Facilities Authority, 10/08 at 102.00 BB+ 2,757,300
Pennsylvania, College Revenue Bonds, Immaculata College, Series
1998, 5.625%, 10/15/27
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova
University, Series 2006:
1,565 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 1,610,729
770 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 788,773
Delaware County Authority, Pennsylvania, Revenue Refunding Bonds,
Villanova University, Series 2003:
1,705 5.250%, 8/01/19 - FGIC Insured 8/13 at 100.00 A2 1,775,843
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 A2 1,400,315
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 A2 1,032,070
Erie Higher Education Building Authority, Pennsylvania, College
Revenue Bonds, Gannon University, Series 2007-GG3:
725 5.000%, 5/01/32 - RAAI Insured 5/17 at 100.00 AA 684,378
250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 AA 233,188
3,060 Indiana County Industrial Development Authority, Pennsylvania, 11/14 at 100.00 AAA 3,097,240
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project,
Series 2004, 5.000%, 11/01/24 - AMBAC Insured
1,575 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,392,221
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
325 New Wilmington, Pennsylvania, Revenue, Westminster College, Series 5/17 at 100.00 AA 305,191
2007G, 5.125%, 5/01/33 - RAAI Insured
4,085 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aaa 4,244,233
Revenue Bonds, State System of Higher Education, Series 2002W,
5.000%, 6/15/19 - AMBAC Insured
1,285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,204,662
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
2,420 Pennsylvania Higher Educational Facilities Authority, Revenue 11/17 at 100.00 AAA 2,443,692
Bonds, Drexel University, Series 2007A, 5.000%, 5/01/37 -
MBIA Insured
3,000 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 3,123,840
Bonds, Temple University, First Series of 2006, 5.000%,
4/01/21 - MBIA Insured
1,845 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,848,672
Bonds, Thomas Jefferson University, Series 2002, 5.000%,
1/01/32
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AA+ 2,037,420
Bonds, University of Pennsylvania, Series 2005C, 5.000%,
7/15/38
1,310 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA 1,338,217
Bonds, Ursinus College, Series 2003, 5.500%, 1/01/24 -
RAAI Insured
- -----
58
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
$ 800 Pennsylvania Higher Educational Facilities Authority, Revenue 11/15 at 100.00 A $ 814,384
Bonds, York College Project, Series 2005EE1, 5.250%, 11/01/27 -
XLCA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, University 5/15 at 100.00 A- 924,870
of the Sciences in Philadelphia Revenue Bonds, Series 2005,
4.750%, 11/01/33 - XLCA Insured
10,600 Pennsylvania State University, General Revenue Bonds, Series 8/16 at 100.00 AA 10,285,816
2007A, 4.500%, 8/15/36 (UB)
Philadelphia Authority for Industrial Development, Pennsylvania,
Revenue Bonds, Franklin Towne Charter High School, Series 2006A:
470 5.250%, 1/01/27 1/17 at 100.00 BBB 432,424
790 5.375%, 1/01/32 1/17 at 100.00 BBB 706,442
1,545 State Public School Building Authority, Pennsylvania, College 5/15 at 100.00 Aaa 1,651,203
Revenue Bonds, Montgomery County Community College, Series 2005,
5.000%, 5/01/18 - AMBAC Insured
750 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 798,878
Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A,
5.250%, 4/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
50,855 Total Education and Civic Organizations 50,399,232
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 12.5% (8.1% of Total Investments)
1,455 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 1,263,333
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 1,000,000
Revenue Bonds, Grand View Hospital, Auction Rate Securities,
Series 2004B, 4.500%, 7/01/34 - AMBAC Insured
1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,292,681
Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 - AMBAC
Insured
395 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 A+ 374,602
Hamot Health Foundation, Series 2007, 5.000%, 11/01/37 - CIFG
Insured
1,885 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 1,895,631
Revenue Bonds, The Lancaster General Hospital Project, Series
2007A, 5.000%, 3/15/26
Lancaster County Hospital Authority, Pennsylvania, Lancaster
General Hospital Auction Rate Reset Securities, Series 2006A:
1,000 5.210%, 7/01/41 - CIFG Insured No Opt. Call AA- 1,000,000
400 4.500%, 7/01/41 - CIFG Insured No Opt. Call AA- 400,000
5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB 5,025,150
Revenue Bonds, Good Samaritan Hospital Project, Series 2002,
5.900%, 11/15/28
1,250 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/14 at 100.00 A 1,291,338
Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24
4,505 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/17 at 100.00 AAA 4,628,482
Bonds, Good Shepherd Group, Series 2007, 5.000%, 11/01/30 - AGC
Insured
650 Monroe County Hospital Authority, Pennsylvania, Hospital Revenue 1/17 at 100.00 BBB+ 579,865
Bonds, Pocono Medical Center, Series 2007, 5.125%, 1/01/37
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
2,000 5.500%, 7/01/18 7/08 at 100.00 BB- 1,878,860
2,000 5.625%, 7/01/24 7/08 at 100.00 BB- 1,824,400
Sayre Health Care Facility Authority, Pennsylvania, Revenue
Bonds, Latrobe Area Hospital, Series 2002A:
1,700 5.250%, 7/01/14 - AMBAC Insured 7/12 at 100.00 AAA 1,803,564
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,264,548
970 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 703,299
Bonds, Guthrie Healthcare System, Series 2007, 4.263%, 12/01/31 -
AMBAC Insured
-----
59
-----
NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care (continued)
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
$ 475 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA $ 465,106
330 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 318,579
- ------------------------------------------------------------------------------------------------------------------------------------
27,445 Total Health Care 27,009,438
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 5.3% (3.5% of Total Investments)
3,455 Bucks County Redevelopment Authority, Pennsylvania, Section 8 8/08 at 100.00 Baa2 3,457,660
Assisted Second Lien Multifamily Mortgage Revenue Bonds, Country
Commons Apartments, Series 1993A, 6.200%, 8/01/14
(Alternative Minimum Tax)
2,000 Delaware County Industrial Development Authority, Pennsylvania, 4/12 at 100.00 AAA 2,022,000
Multifamily Housing Revenue Bonds, Darby Townhouses Project,
Series 2002A, 5.500%, 4/01/32 (Mandatory put 4/01/22)
(Alternative Minimum Tax)
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds, Slippery Rock University Foundation Inc., Student Housing
Project, Series 2005A:
2,035 5.000%, 7/01/19 - XLCA Insured 7/15 at 100.00 A- 2,080,991
3,400 5.000%, 7/01/37 - XLCA Insured 7/15 at 100.00 A- 3,249,142
740 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 693,565
Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown -
Morrisville Project, Series 2005A, 5.625%, 7/01/35
- ------------------------------------------------------------------------------------------------------------------------------------
11,630 Total Housing/Multifamily 11,503,358
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 6.0% (3.9% of Total Investments)
880 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa 887,102
GNMA Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 2000II-2, 5.900%, 11/01/32
(Alternative Minimum Tax)
4,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,668,200
Revenue Bonds, Series 1995A, 4.900%, 10/01/37
(Alternative Minimum Tax)
265 Pennsylvania Housing Finance Agency, Single Family Mortgage 6/08 at 101.50 AA+ 266,685
Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22
(Alternative Minimum Tax)
1,410 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 1,352,359
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
3,295 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,105,702
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(Alternative Minimum Tax)
1,355 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,227,047
Revenue Bonds, Series 2007-97A, 4.600%, 10/01/27
(Alternative Minimum Tax)
1,710 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,568,754
Revenue Bonds, Series 2007-98A, 4.850%, 10/01/31
(Alternative Minimum Tax)
765 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Mortgage 10/08 at 101.00 AAA 771,197
Revenue Bonds, Series 1997A, 6.200%, 10/01/21
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
13,680 Total Housing/Single Family 12,847,046
- ------------------------------------------------------------------------------------------------------------------------------------
Industrials - 3.2% (2.1% of Total Investments)
2,000 New Morgan Industrial Development Authority, Pennsylvania, Solid 10/08 at 100.00 BB- 1,944,400
Waste Disposal Revenue Bonds, New Morgan Landfill Company Inc.,
Series 1994, 6.500%, 4/01/19 (Alternative Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A2 2,012,980
Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.250%,
11/01/31 (Alternative Minimum Tax)
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 2,978,058
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 - AMBAC
Insured
- ------------------------------------------------------------------------------------------------------------------------------------
6,750 Total Industrials 6,935,438
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 6.9% (4.4% of Total Investments)
1,100 Chester County Health and Education Facilities Authority, 12/08 at 100.00 BBB- 1,071,433
Pennsylvania, Mortgage Revenue Refunding Bonds, Tel Hai
Obligated Group, Series 1998, 5.500%, 6/01/25
- -----
60
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care (continued)
$ 4,905 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R $ 4,110,733
Bonds, Diakon Lutheran Social Ministries, Series 2007, 5.000%,
1/01/36
1,000 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 AA 1,001,170
Bonds, Presbyterian Homes Inc., Series 2003A, 5.000%, 12/01/22 -
RAAI Insured
Lancaster County Hospital Authority, Pennsylvania, Health
Center Revenue Bonds, Masonic Homes Project, Series 2006:
1,565 5.000%, 11/01/31 11/16 at 100.00 A+ 1,503,339
230 5.000%, 11/01/36 11/16 at 100.00 A+ 218,778
Pennsylvania Economic Development Financing Authority, Revenue
Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000:
1,000 6.150%, 12/01/20 - RAAI Insured 8/08 at 100.00 AA 1,044,780
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,028,160
1,230 Pennsylvania Economic Development Financing Authority, Revenue 6/08 at 100.00 BB+ 1,038,760
Bonds, Northwestern Human Services Inc., Series 1998A, 5.250%,
6/01/28
Philadelphia Authority for Industrial Development, Pennsylvania,
Health Care Facilities Revenue Bonds, Paul's Run, Series 1998A:
1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,350,851
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,521,795
- ------------------------------------------------------------------------------------------------------------------------------------
16,030 Total Long-Term Care 14,889,799
- ------------------------------------------------------------------------------------------------------------------------------------
Materials - 2.6% (1.6% of Total Investments)
1,190 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 1,133,487
Solid Waste Disposal Revenue Bonds, International Paper Company,
Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax)
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 511,700
Environmental Improvement Revenue Refunding Bonds, Series 2000B,
6.000%, 9/01/16 (Alternative Minimum Tax)
4,500 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102.00 N/R 3,885,660
Facilities Revenue Bonds, National Gypsum Company, Series 1997B,
6.125%, 11/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
6,190 Total Materials 5,530,847
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 18.7% (12.1% of Total Investments)
2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,190,469
Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured
Harrisburg Redevelopment Authority, Dauphin County,
Pennsylvania, Guaranteed Revenue Bonds, Series 1998B:
1,750 0.000%, 5/01/22 - FSA Insured 5/16 at 75.56 AAA 850,483
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,302,400
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,256,420
Lower Merion School District, Montgomery County, Pennsylvania,
General Obligation Bonds, Series 2007:
2,260 5.000%, 9/01/23 9/17 at 100.00 Aaa 2,403,713
55 5.000%, 9/01/24 9/17 at 100.00 Aaa 58,192
1,000 New Castle Area School District, Lawrence County, Pennsylvania, 3/10 at 100.00 AAA 1,033,190
General Obligation Bonds, Series 2000, 5.600%, 3/01/25 - MBIA
Insured
2,115 Owen J. Roberts School District, Chester County, Pennsylvania, 5/16 at 100.00 Aaa 2,201,588
General Obligation Bonds, Series 2006, 5.000%, 5/15/24 - FSA
Insured
4,835 Pennsylvania State, General Obligation Bonds, Series 2007, 3/17 at 100.00 AA 5,128,001
Residuals 1986, 8.746%, 3/01/27 (IF)
3,200 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 3,476,800
5.000%, 10/01/18
2,000 Pennsylvania, General Obligation Bonds, Second Series 2005, 1/16 at 100.00 AA 2,163,800
5.000%, 1/01/18
1,500 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call Aa3 1,537,530
Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured
3,775 Pine-Richland School District, Pennsylvania, School Improvement 7/15 at 100.00 AAA 3,854,879
General Obligation Bonds, Series 2005, 8.746%, 7/15/35 - FSA
Insured
-----
61
-----
NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 2,700 Pittsburgh, Pennsylvania, General Obligation Bonds, Series No Opt. Call AAA $ 3,007,962
2006B, 5.250%, 9/01/16 - FSA Insured
6,710 Reading School District, Berks County, Pennsylvania, General No Opt. Call A 1,800,293
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC Insured
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
360 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 N/R 378,979
490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 N/R 513,819
1,500 State Public School Building Authority, Pennsylvania, School 5/13 at 100.00 Aaa 1,463,850
Revenue Bonds, York City School District, Series 2003, 4.000%,
5/01/21 - FSA Insured
1,535 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,603,998
General Obligation Bonds, Series 2001A, 5.000%, 4/01/19 - FSA
Insured
1,400 Woodland Hills School District, Allegheny County, Pennsylvania, 9/15 at 100.00 AAA 1,511,356
General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 - FSA
Insured
2,400 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AAA 2,454,624
2006, 5.000%, 6/01/33 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
47,205 Total Tax Obligation/General 40,192,346
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 8.7% (5.6% of Total Investments)
1,500 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 A 1,488,765
Convention Center Revenue Bonds, Series 2005, 5.000%, 1/15/36 -
FGIC Insured
1,950 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior Lien 12/18 at 100.00 AAA 2,004,834
Revenue Bonds, Series 2003A, 5.000%, 12/01/32
(WI/DD, Settling 5/20/08) - MBIA Insured
5,015 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 5,397,293
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
6,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 6,470,580
Revenue Bonds, Series 2007N, 5.500%, 7/01/29 - AMBAC Insured
2,880 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 717,437
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
2,405 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AAA 2,588,983
Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
19,750 Total Tax Obligation/Limited 18,667,892
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 20.9% (13.5% of Total Investments)
650 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 687,102
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
2,500 Delaware River Port Authority, New Jersey and Pennsylvania, No Opt. Call AAA 2,500,000
Revenue Refunding Bonds, Series 2007-4, 4.750%, 1/01/26 - AMBAC
Insured
4,600 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 BBB 4,374,278
Bonds, Amtrak 30th Street Station Parking Garage, Series 2002,
5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax)
3,575 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 3,634,023
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
2,680 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 2,788,326
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
3,250 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/15 at 100.00 AAA 2,908,360
Series 2005A, 4.750%, 6/15/35 - MBIA Insured
(Alternative Minimum Tax)
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 A+ 9,780,196
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System
Project, Series 2001A, 5.250%, 7/01/28 - FGIC Insured
(Alternative Minimum Tax)
- -----
62
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation (continued)
$ 6,525 Pittsburgh and Allegheny County Sports and Exhibition 6/08 at 100.00 Aaa $ 6,532,439
Authority, Pennsylvania, Parking Revenue Bonds, Series 2001A,
5.350%, 12/01/26 - AMBAC Insured
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 Baa3 2,022,560
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured
730 Scranton Parking Authority, Pennsylvania, Guaranteed Revenue 6/17 at 100.00 AA 674,411
Bonds, Series 2007, 5.250%, 6/01/39 - RAAI Insured
2,355 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 Baa3 2,348,147
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
6,700 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 6,643,251
Airport System Revenue Bonds, Series 2003B, 5.000%, 1/01/33 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
45,565 Total Transportation 44,893,093
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 20.8% (13.4% of Total Investments) (4)
1,695 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA 1,833,346
Revenue Bonds, Series 2000, 5.500%, 12/01/30
(Pre-refunded 12/01/10) - MBIA Insured
1,200 Butler County, Pennsylvania, General Obligation Bonds, Series 7/13 at 100.00 A+(4) 1,325,820
2003, 5.250%, 7/15/23 (Pre-refunded 7/15/13) - FGIC Insured
1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,793,764
Pennsylvania, Sewerage Revenue Bonds, Series 2004, 5.250%,
5/01/23 (Pre-refunded 5/01/14) - MBIA Insured
2,110 Fayette County, Pennsylvania, General Obligation Bonds, Series 11/10 at 100.00 AAA 2,270,824
2000, 5.625%, 11/15/28 (Pre-refunded 11/15/10) - AMBAC Insured
2,600 Norristown Area School District, Montgomery County, 3/13 at 100.00 Baa3(4) 2,828,098
Pennsylvania, General Obligation Bonds, Series 2003, 5.000%,
9/01/24 (Pre-refunded 3/01/13) - FGIC Insured
1,060 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,202,729
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15 (ETM)
2,100 Pennsylvania Higher Educational Facilities Authority, Revenue 6/10 at 100.00 AA(4) 2,253,111
Bonds, Philadelphia University, Series 2000, 6.000%, 6/01/29
(Pre-refunded 6/01/10) - RAAI Insured
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,619,490
Bonds, Temple University, Series 2001, 5.000%, 7/15/31
(Pre-refunded 7/15/11) - MBIA Insured
3,905 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1(4) 4,234,816
Bonds, Thomas Jefferson University, Series 2002, 5.000%, 1/01/32
(Pre-refunded 1/01/13)
5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/09 at 101.00 AAA 5,994,490
Ordinance, Second Series 1999, 5.000%, 7/01/29
(Pre-refunded 7/01/09) - FSA Insured
Philadelphia Hospitals and Higher Education Facilities
Authority, Pennsylvania, Hospital Revenue Bonds, Presbyterian
Medical Center of Philadelphia, Series 1993:
825 6.500%, 12/01/11 (ETM) No Opt. Call AAA 885,935
3,740 6.650%, 12/01/19 (ETM) No Opt. Call AAA 4,457,407
1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1(4) 1,135,024
Revenue Bonds, Catholic Health East, Series 2004B, 5.375%,
11/15/34 (Pre-refunded 11/15/14)
State Public School Building Authority, Berkes County,
Pennsylvania, School Revenue Bonds, Brandywine Heights Area
School District, Series 2003:
1,930 5.000%, 2/01/20 (Pre-refunded 2/01/13) - FGIC Insured 2/13 at 100.00 A1(4) 2,091,695
1,955 5.000%, 2/01/21 (Pre-refunded 2/01/13) - FGIC Insured 2/13 at 100.00 A1(4) 2,118,790
4,050 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,419,360
Revenue Bonds, Philadelphia School District, Series 2003, 5.000%,
6/01/33 (Pre-refunded 6/01/13) - FSA Insured
2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+(4) 2,764,375
College Revenue Bonds, Elizabethtown College Project, Series
2001, 5.900%, 12/15/18 (Pre-refunded 12/15/11)
1,205 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 1,494,236
Pennsylvania, Special Obligation Bonds, Series 1985A, 9.500%,
11/15/14 (ETM)
- ------------------------------------------------------------------------------------------------------------------------------------
40,755 Total U.S. Guaranteed 44,723,310
- ------------------------------------------------------------------------------------------------------------------------------------
-----
63
-----
NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 13.6% (8.8% of Total Investments)
$ 1,125 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call Aaa $ 1,150,504
Pollution Control Revenue Refunding Bonds, Duquesne Light
Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured
8,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102.00 AAA 8,005,040
Exempt Facilities Revenue Bonds, Shippingport Project, Series
1998A, 5.375%, 6/01/28 - AMBAC Insured (Alternative Minimum Tax)
1,645 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,669,840
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
7,590 Indiana County Industrial Development Authority, Pennsylvania, 5/08 at 101.00 AAA 7,635,920
Pollution Control Revenue Bonds, Metropolitan Edison Company,
Series 1997A, 5.950%, 5/01/27 - AMBAC Insured (Alternative
Minimum Tax)
2,000 Indiana County Industrial Development Authority, Pennsylvania, 6/12 at 101.00 Baa1 1,923,040
Pollution Control Revenue Refunding Bonds, PSEG Power LLC,
Series 2001A, 5.850%, 6/01/27 (Alternative Minimum Tax)
2,150 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 A- 2,095,068
Pollution Control Revenue Bonds, Pennsylvania Power and Light
Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 716,352
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/13 at 100.00 AAA 1,072,990
Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 - FSA Insured
5,050 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 AAA 5,053,535
Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
- -----------------------------------------------------------------------------------------------------------------------------------
29,260 Total Utilities 29,322,289
- -----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 12.2% (7.9% of Total Investments)
305 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/10 at 101.00 AAA 318,118
Bonds, Series 2000, 5.500%, 12/01/30 - MBIA Insured
Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue
Bonds, Series 2005A:
1,900 5.000%, 12/01/21 - MBIA Insured 12/15 at 100.00 AAA 2,000,320
2,545 5.000%, 12/01/30 - MBIA Insured 12/15 at 100.00 AAA 2,575,336
2,500 Bethlehem Authority, Northampton and Lehigh Counties, Pennsylvania, 11/14 at 100.00 AAA 2,642,750
Guaranteed Water Revenue Bonds, Series 2004, 5.000%, 11/15/20 -
FSA Insured
4,000 Bucks County Industrial Development Authority, Pennsylvania, Water 3/12 at 100.00 AA- 4,005,120
Facility Revenue Bonds, Pennsylvania Suburban Water Company,
Series 2002, 5.550%, 9/01/32 - FGIC Insured (Alternative Minimum
Tax)
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water Revenue 7/14 at 100.00 AAA 2,080,980
Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured
1,315 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage Revenue 4/14 at 100.00 AAA 1,370,493
Bonds, Series 2004, 5.000%, 4/01/21 - MBIA Insured
3,360 Mercer County Industrial Development Authority, Pennsylvania, Water 7/10 at 100.00 AAA 3,396,355
Facility Revenue Bonds, Consumers Water Company, Shenango Valley
Division Project, Series 2000, 6.000%, 7/01/30 - MBIA Insured
(Alternative Minimum Tax)
Norristown Municipal Waste Authority, Pennsylvania, Sewer Revenue
Bonds, Series 2003:
1,140 5.125%, 11/15/22 - FGIC Insured 11/13 at 100.00 Baa3 1,161,147
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Baa3 2,572,163
2,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 7/15 at 100.00 AAA 2,081,720
Series 2005A, 5.000%, 7/01/23 - FSA Insured
- -----
64
- -----
Principal Optional Call
Amount(000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer (continued)
$ 2,000 Unity Township Municipal Authority, Pennsylvania, Sewerage Revenue 12/14 at 100.00 AAA $ 2,040,380
Bonds, Series 2004, 5.000%, 12/01/34 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
25,600 Total Water and Sewer 26,244,882
- ------------------------------------------------------------------------------------------------------------------------------------
$ 340,715 Total Investments (cost $331,092,447) - 154.8% 333,158,970
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.3)% (7,065,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.4% 7,258,298
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.9)% (5) (118,100,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 215,252,268
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (35.4)%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
65
-----
NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS
April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 2.2% (1.4% of Total Investments)
$ 1,000 Pennsylvania Economic Development Financing Authority, Solid Waste No Opt. Call AA- $ 1,035,400
Disposal Revenue Bonds, Procter & Gamble Paper Project, Series
2001, 5.375%, 3/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 32.0% (21.2% of Total
Investments)
100 Allegheny County Higher Education Building Authority, Pennsylvania, No Opt. Call Baa3 101,341
College Revenue Refunding Bonds, Robert Morris College, Series
1998A, 6.000%, 5/01/28
235 Allegheny County Higher Education Building Authority, Pennsylvania, 2/16 at 100.00 Baa3 208,657
Revenue Bonds, Robert Morris University, Series 2006A, 4.750%,
2/15/26
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 Aaa 2,275,200
Revenue Bonds, George School Project, Series 2001, 5.125%,
9/15/31 - AMBAC Insured
700 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 654,171
Pennsylvania, Revenue Bonds, Immaculata University, Series 2005,
5.500%, 10/15/25
720 Chester County Industrial Development Authority, Pennsylvania, Avon 12/17 at 100.00 BB+ 686,412
Grove Charter School Revenue Bonds, Series 2007A, 6.375%,
12/15/37
1,000 Delaware County Authority, Pennsylvania, College Revenue Refunding 10/11 at 100.00 BBB 1,000,700
Bonds, Neumann College, Series 2001, 6.000%, 10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova
University, Series 2006:
295 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 303,620
145 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 148,535
160 Erie Higher Education Building Authority, Pennsylvania, College 5/17 at 100.00 AA 151,035
Revenue Bonds, Gannon University, Series 2007-GG3, 5.000%,
5/01/32 - RAAI Insured
300 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 265,185
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
1,000 Montgomery County Industrial Development Authority, Pennsylvania, 8/15 at 100.00 Aaa 1,031,980
Revenue Bonds, Hill School, Series 2005, 5.000%, 8/15/27 - MBIA
Insured
75 New Wilmington, Pennsylvania, Revenue, Westminster College, Series 5/17 at 100.00 AA 70,429
2007G, 5.125%, 5/01/33 - RAAI Insured
1,000 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aaa 1,038,980
Revenue Bonds, State System of Higher Education, Series 2002W,
5.000%, 6/15/19 - AMBAC Insured
220 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 206,246
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
540 Pennsylvania Higher Educational Facilities Authority, Revenue 11/17 at 100.00 AAA 545,287
Bonds, Drexel University, Series 2007A, 5.000%, 5/01/37 - MBIA
Insured
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 1,492,995
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 - RAAI
Insured
700 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 728,896
Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 -
MBIA Insured
350 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 373,062
Bonds, Thomas Jefferson University, Series 2002, 5.500%, 1/01/16
3,000 Pennsylvania State University, General Obligation Refunding Bonds, No Opt. Call AA 3,337,499
Series 2002, 5.250%, 8/15/14
255 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 234,613
Revenue Bonds, Franklin Towne Charter High School, Series 2006A,
5.250%, 1/01/27
- -----
66
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations (continued)
$ 470 Philadelphia Authority for Industrial Development, Pennsylvania, 1/13 at 102.00 BB $ 378,251
Revenue Bonds, Leadership Learning Partners, Series 2005A,
5.375%, 7/01/36
230 Philadelphia Authority for Industrial Development, Pennsylvania, 5/16 at 100.00 BB+ 212,435
Revenue Bonds, Richard Allen Preparatory Charter School, Series
2006, 6.250%, 5/01/33
- ------------------------------------------------------------------------------------------------------------------------------------
15,245 Total Education and Civic Organizations 15,445,529
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 19.5% (12.9% of Total Investments)
260 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 225,750
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
700 Allentown Area Hospital Authority, Pennsylvania, Revenue Bonds, No Opt. Call BB- 684,236
Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,513,099
Pennsylvania, Health System Revenue Bonds, Jefferson Health
System, Series 1997B, 5.375%, 5/15/27
80 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, Hamot 11/17 at 100.00 A+ 75,869
Health Foundation, Series 2007, 5.000%, 11/01/37 - CIFG Insured
230 Fulton County, Pennsylvania, Industrial Development Authority 7/16 at 100.00 N/R 206,391
Hospital Revenue Bonds, Fulton County Medical Center Project,
Series 2006, 5.900%, 7/01/40
250 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/14 at 100.00 A 258,268
Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24
1,025 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/17 at 100.00 AAA 1,049,928
Bonds, Good Shepherd Group, Series 2007, 5.000%, 11/01/37 - AGC
Insured
140 Monroe County Hospital Authority, Pennsylvania, Hospital Revenue 1/17 at 100.00 BBB+ 124,894
Bonds, Pocono Medical Center, Series 2007, 5.125%, 1/01/37
2,150 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 AA- 2,280,784
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
25 Pottsville Hospital Authority, Pennsylvania, Hospital Revenue 7/08 at 100.00 BB- 22,805
Bonds, Pottsville Hospital and Warne Clinic, Series 1998,
5.625%, 7/01/24
215 Sayre Healthcare Facility Authority, Pennsylvania, Revenue Bonds, 12/17 at 100.00 A 155,886
Guthrie Healthcare System, Series 2007, 4.263%, 12/01/31 -
AMBAC Insured
1,000 Washington County Hospital Authority, Pennsylvania, Revenue Bonds, 6/12 at 101.00 A3 1,038,410
Monongahela Valley Hospital Project, Series 2002, 5.500%,
6/01/17
750 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 762,420
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of
the Sisters of Christian Charity Project, Series 2001, 6.250%,
1/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
9,325 Total Health Care 9,398,740
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.6% (1.1% of Total Investments)
700 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 A- 668,941
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
100 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 93,725
Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown -
Morrisville Project, Series 2005A, 5.625%, 7/01/35
- ------------------------------------------------------------------------------------------------------------------------------------
800 Total Housing/Multifamily 762,666
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 7.2% (4.8% of Total Investments)
1,495 Allegheny County Residential Finance Authority, Pennsylvania, GNMA 11/08 at 102.00 Aaa 1,493,116
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1998DD-2, 5.400%, 11/01/29 (Alternative
Minimum Tax)
500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 458,525
Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative
Minimum Tax)
495 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 474,764
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative
Minimum Tax)
-----
67
-----
NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
$ 700 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ $ 659,785
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative
Minimum Tax)
430 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 394,482
Revenue Bonds, Series 2007-98A, 4.850%, 10/01/31 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
3,620 Total Housing/Single Family 3,480,672
- ------------------------------------------------------------------------------------------------------------------------------------
Industrials - 7.0% (4.6% of Total Investments)
2,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A2 2,012,980
Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.250%,
11/01/31 (Alternative Minimum Tax)
1,250 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 1,353,663
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 - AMBAC
Insured
- ------------------------------------------------------------------------------------------------------------------------------------
3,250 Total Industrials 3,366,643
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 18.1% (12.0% of Total Investments)
Bucks County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Lutheran Community at Telford Center, Series 2007:
220 5.750%, 1/01/27 1/17 at 100.00 N/R 201,062
360 5.750%, 1/01/37 1/17 at 100.00 N/R 317,462
265 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 222,089
Bonds, Diakon Lutheran Social Ministries, Series 2007, 5.000%,
1/01/36
200 Lancaster County Hospital Authority, Pennsylvania, Health Center 11/16 at 100.00 A+ 190,242
Revenue Bonds, Masonic Homes Project, Series 2006, 5.000%,
11/01/36
2,100 Lancaster County Hospital Authority, Pennsylvania, Health Center 12/11 at 100.00 A- 2,127,237
Revenue Bonds, Willow Valley Retirement Communities Project,
Series 2001, 5.875%, 6/01/31
185 Lancaster County Hospital Authority, Pennsylvania, Revenue Bonds, 7/17 at 100.00 N/R 182,070
Brethren Village Project, Series 2008A, 6.375%, 7/01/30
785 Lebanon County Health Facilities Authority, Pennsylvania, Health 12/14 at 100.00 N/R 705,377
Center Revenue Bonds, Pleasant View Retirement Community,
Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority, Revenue
Bonds, Northwestern Human Services Inc., Series 1998A:
1,240 5.250%, 6/01/14 6/08 at 100.00 BB+ 1,181,559
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 45,899
Philadelphia Authority for Industrial Development, Pennsylvania,
Revenue Bonds, Philadelphia Corporation for the Aging Project,
Series 2001B:
670 5.250%, 7/01/23 - AMBAC Insured 7/11 at 101.00 AAA 682,382
2,875 5.250%, 7/01/31 - AMBAC Insured 7/11 at 101.00 AAA 2,887,678
- ------------------------------------------------------------------------------------------------------------------------------------
8,950 Total Long-Term Care 8,743,057
- ------------------------------------------------------------------------------------------------------------------------------------
Materials - 4.1% (2.7% of Total Investments)
350 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call Baa3 350,354
Revenue Bonds, United States Steel Corporation, Series 2005,
5.500%, 11/01/16
210 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 200,027
Solid Waste Disposal Revenue Bonds, International Paper
Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum
Tax)
750 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 779,168
Environmental Improvement Revenue Bonds, USX Corporation
Project, Series 1995, 5.400%, 11/01/17 (Mandatory put 11/01/11)
750 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102.00 N/R 647,610
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
2,060 Total Materials 1,977,159
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 12.8% (8.5% of Total Investments)
300 Pennsylvania, General Obligation Bonds, First Series 2006, 5.000%, 10/16 at 100.00 AA 325,950
10/01/18
375 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call Aa3 384,383
Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured
- -----
68
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 840 Pine-Richland School District, Pennsylvania, School Improvement 7/15 at 100.00 AAA $ 857,774
General Obligation Bonds, Series 2005, 5.000%, 7/15/35 - FSA
Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, General No Opt. Call AAA 3,379,918
Obligation Refunding Bonds, Series 2002A, 5.500%, 9/01/14 - FSA
Insured
2,220 Reading School District, Berks County, Pennsylvania, General No Opt. Call A 595,626
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC Insured
600 York County, Pennsylvania, General Obligation Bonds, Series 2006, 12/15 at 100.00 AAA 613,656
5.000%, 6/01/33 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
7,335 Total Tax Obligation/General 6,157,307
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 14.0% (9.3% of Total Investments)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF Revenue No Opt. Call N/R 983,380
Bonds, Pittsburg Mills Project, Series 2004, 5.600%, 7/01/23
450 Erie County Convention Center Authority, Pennsylvania, Convention 1/15 at 100.00 A 446,630
Center Revenue Bonds, Series 2005, 5.000%, 1/15/36 - FGIC Insured
425 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior Lien 12/18 at 100.00 AAA 436,951
Revenue Bonds, Series 2003A, 5.000%, 12/01/32 (WI/DD, Settling
5/20/08) - MBIA Insured
1,000 Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, No Opt. Call AAA 1,115,320
Series 2005A, 5.250%, 7/15/18 - FSA Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue Bonds, 11/13 at 100.00 AAA 1,076,230
Series 2003B, 5.250%, 11/15/17 - FSA Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue Bonds, 4/12 at 100.00 Baa1 1,545,900
Philadelphia Neighborhood Transformation Initiative, Series
2002A, 5.500%, 4/15/19 - FGIC Insured
750 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call AAA 789,915
Bonds, Series 2007N, 5.250%, 7/01/33 - MBIA Insured
630 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue No Opt. Call BBB+ 156,939
Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
250 Washington County Redevelopment Authority, Pennsylvania, Tanger 7/17 at 100.00 N/R 216,268
Outlet Victory Center Tax Increment Bonds, Series 2006A, 5.450%,
7/01/35
- ------------------------------------------------------------------------------------------------------------------------------------
7,005 Total Tax Obligation/Limited 6,767,533
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 11.6% (7.7% of Total Investments)
130 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 137,420
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 BBB 950,930
Bonds, Amtrak 30th Street Station Parking Garage, Series 2002,
5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax)
420 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 436,976
2006A, 5.000%, 12/01/24 - AMBAC Insured
1,750 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 A+ 1,711,535
Airport Revenue Bonds, Philadelphia Airport System Project,
Series 2001A, 5.250%, 7/01/28 - FGIC Insured (Alternative Minimum
Tax)
2,210 Pittsburgh and Allegheny County Sports and Exhibition Authority, 6/08 at 100.00 Aaa 2,212,586
Pennsylvania, Parking Revenue Bonds, Series 2001A, 5.375%,
12/01/30 - AMBAC Insured
160 Scranton Parking Authority, Pennsylvania, Guaranteed Revenue Bonds, 6/17 at 100.00 AA 147,816
Series 2007, 5.250%, 6/01/39 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
5,670 Total Transportation 5,597,263
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 14.2% (9.4% of Total Investments) (4)
1,000 Cumberland County Municipal Authority, Pennsylvania, Retirement 1/13 at 101.00 N/R (4) 1,167,590
Community Revenue Bonds, Wesley Affiliated Services Inc., Series
2002A, 7.125%, 1/01/25 (Pre-refunded 1/01/13)
-----
69
-----
NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (4) (continued)
$ 1,105 Oxford Area School District, Chester County, Pennsylvania, General 2/12 at 100.00 A(4) $ 1,206,693
Obligation Bonds, Series 2001A, 5.500%, 2/15/17 (Pre-refunded
2/15/12) - FGIC Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General
Ordinance, Fourth Series 1998:
1,000 5.250%, 8/01/18 (Pre-refunded 8/01/13) - FSA Insured 8/13 at 100.00 AAA 1,101,040
1,000 5.250%, 8/01/19 (Pre-refunded 8/01/13) - FSA Insured 8/13 at 100.00 AAA 1,101,040
160 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth Series No Opt. Call AAA 189,242
1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
1,700 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 Aa3(4) 1,882,206
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) -
FGIC Insured
170 St. Mary Hospital Authority, Pennsylvania, Health System Revenue 11/14 at 100.00 A1(4) 190,103
Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34
(Pre-refunded 11/15/14)
- ------------------------------------------------------------------------------------------------------------------------------------
6,135 Total U.S. Guaranteed 6,837,914
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 4.2% (2.8% of Total Investments)
500 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call Aaa 511,335
Pollution Control Revenue Refunding Bonds, Duquesne Light
Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured
285 Pennsylvania Economic Development Financing Authority, Exempt 12/09 at 103.00 Ba3 288,015
Facilities Revenue Bonds, Reliant Energy Inc., Series 2003A,
6.750%, 12/01/36 (Alternative Minimum Tax)
140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 143,270
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured
1,105 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh Series, 10/17 at 100.00 AAA 1,105,774
2007, 5.000%, 10/01/37 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
2,030 Total Utilities 2,048,394
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 2.4% (1.6% of Total Investments)
500 Bethlehem Authority, Northampton and Lehigh Counties, Pennsylvania, 11/14 at 100.00 AAA 528,550
Guaranteed Water Revenue Bonds, Series 2004, 5.000%, 11/15/20 -
FSA Insured
600 Harrisburg Authority, Dauphin County, Pennsylvania, Water Revenue 7/14 at 100.00 AAA 624,294
Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
1,100 Total Water and Sewer 1,152,844
- ------------------------------------------------------------------------------------------------------------------------------------
$ 73,525 Total Investments (cost $71,740,834) - 150.9% 72,771,121
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 440,310
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.9)% (5) (25,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 48,211,431
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.4)%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
- -----
70
- -----
NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS
April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 17.1% (11.1% of Total
Investments)
$ 1,000 Allegheny County Higher Education Building Authority, Pennsylvania, No Opt. Call Baa3 $ 1,013,410
College Revenue Refunding Bonds, Robert Morris College, Series
1998A, 6.000%, 5/01/28
800 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 747,624
Pennsylvania, Revenue Bonds, Immaculata University, Series 2005,
5.500%, 10/15/25
720 Chester County Industrial Development Authority, Pennsylvania, Avon 12/17 at 100.00 BB+ 686,412
Grove Charter School Revenue Bonds, Series 2007A, 6.375%,
12/15/37
325 Delaware County Authority, Pennsylvania, College Revenue Refunding 10/11 at 100.00 BBB 325,228
Bonds, Neumann College, Series 2001, 6.000%, 10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova
University, Series 2006:
340 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 349,935
165 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 169,023
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding Bonds, 8/13 at 100.00 A2 1,531,949
Villanova University, Series 2003, 5.250%, 8/01/17 - FGIC Insured
180 Erie Higher Education Building Authority, Pennsylvania, College 5/17 at 100.00 AA 169,915
Revenue Bonds, Gannon University, Series 2007-GG3, 5.000%,
5/01/32 - RAAI Insured
450 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 397,778
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
80 New Wilmington, Pennsylvania, Revenue, Westminster College, Series 5/17 at 100.00 AA 75,124
2007G, 5.125%, 5/01/33 - RAAI Insured
285 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 5/16 at 100.00 A- 267,182
Allegheny College, Series 2006, 4.750%, 5/01/31
610 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 11/17 at 100.00 AAA 615,972
Drexel University, Series 2007A, 5.000%, 5/01/37 - MBIA Insured
800 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, 4/16 at 100.00 AAA 833,024
Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA
Insured
315 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 289,816
Revenue Bonds, Franklin Towne Charter High School, Series 2006A,
5.250%, 1/01/27
530 Philadelphia Authority for Industrial Development, Pennsylvania, 1/13 at 102.00 BB 426,539
Revenue Bonds, Leadership Learning Partners, Series 2005A,
5.375%, 7/01/36
270 Philadelphia Authority for Industrial Development, Pennsylvania, 5/16 at 100.00 BB+ 249,380
Revenue Bonds, Richard Allen Preparatory Charter School, Series
2006, 6.250%, 5/01/33
1,000 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,065,170
Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A,
5.250%, 4/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
9,305 Total Education and Civic Organizations 9,213,481
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 16.9% (11.0% of Total Investments)
295 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 256,140
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
800 Allentown Area Hospital Authority, Pennsylvania, Revenue Bonds, No Opt. Call BB- 781,984
Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
1,000 Bucks County Industrial Development Authority, Pennsylvania, Revenue No Opt. Call AAA 1,000,000
Bonds, Grand View Hospital, Auction Rate Securities, Series
2004B, 4.500%, 7/01/34 - AMBAC Insured
-----
71
-----
NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care (continued)
$ 2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- $ 2,010,480
Pennsylvania, Health System Revenue Bonds, Jefferson Health
System, Series 1997B, 5.375%, 5/15/27
95 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, Hamot 11/17 at 100.00 A+ 90,094
Health Foundation, Series 2007, 5.000%, 11/01/37 - CIFG Insured
270 Fulton County, Pennsylvania, Industrial Development Authority 7/16 at 100.00 N/R 242,285
Hospital Revenue Bonds, Fulton County Medical Center Project,
Series 2006, 5.900%, 7/01/40
1,000 Lancaster County Hospital Authority, Pennsylvania, Lancaster No Opt. Call AA- 1,000,000
General Hospital Auction Rate Reset Securities, Series 2006A,
5.210%, 7/01/41 - CIFG Insured
1,155 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/17 at 100.00 AAA 1,183,090
Bonds, Good Shepherd Group, Series 2007, 5.000%, 11/01/37 - AGC
Insured
160 Monroe County Hospital Authority, Pennsylvania, Hospital Revenue 1/17 at 100.00 BBB+ 142,736
Bonds, Pocono Medical Center, Series 2007, 5.125%, 1/01/37
70 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 AA- 74,258
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
245 Sayre Healthcare Facility Authority, Pennsylvania, Revenue Bonds, 12/17 at 100.00 A 177,637
Guthrie Healthcare System, Series 2007, 4.263%, 12/01/31 - AMBAC
Insured
1,450 Washington County Hospital Authority, Pennsylvania, Revenue Bonds, 6/12 at 101.00 A3 1,526,372
Monongahela Valley Hospital Project, Series 2002, 6.250%, 6/01/22
West Shore Area Hospital Authority, Cumberland County,
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of
the Sisters of Christian Charity Project, Series 2001:
25 6.150%, 1/01/21 1/12 at 100.00 BBB 25,745
600 6.250%, 1/01/32 1/12 at 100.00 BBB 609,936
- ------------------------------------------------------------------------------------------------------------------------------------
9,165 Total Health Care 9,120,757
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 1.6% (1.0% of Total Investments)
800 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 A- 764,504
Bonds, Slippery Rock University Foundation Inc., Student Housing
Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
120 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 112,470
Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown -
Morrisville Project, Series 2005A, 5.625%, 7/01/35
- ------------------------------------------------------------------------------------------------------------------------------------
920 Total Housing/Multifamily 876,974
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 5.9% (3.8% of Total Investments)
500 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/15 at 100.00 AA+ 458,525
Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative Minimum Tax)
565 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 4/15 at 100.00 AA+ 541,903
Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative Minimum Tax)
800 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/15 at 100.00 AA+ 754,040
Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative Minimum Tax)
1,100 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/16 at 100.00 AA+ 996,127
Bonds, Series 2007-97A, 4.600%, 10/01/27 (Alternative Minimum Tax)
480 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/16 at 100.00 AA+ 440,352
Bonds, Series 2007-98A, 4.850%, 10/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
3,445 Total Housing/Single Family 3,190,947
- ------------------------------------------------------------------------------------------------------------------------------------
Industrials - 5.9% (3.9% of Total Investments)
3,000 Pennsylvania Industrial Development Authority, Economic Development 7/12 at 101.00 AAA 3,205,319
Revenue Bonds, Series 2002, 5.500%, 7/01/19 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
- -----
72
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 7.3% (4.7% of Total Investments)
Bucks County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Lutheran Community at Telford Center, Series 2007:
$ 250 5.750%, 1/01/27 1/17 at 100.00 N/R $ 228,480
400 5.750%, 1/01/37 1/17 at 100.00 N/R 352,736
300 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 251,421
Bonds, Diakon Lutheran Social Ministries, Series 2007, 5.000%,
1/01/36
205 Lancaster County Hospital Authority, Pennsylvania, Health Center 11/16 at 100.00 A+ 194,998
Revenue Bonds, Masonic Homes Project, Series 2006, 5.000%,
11/01/36
185 Lancaster County Hospital Authority, Pennsylvania, Revenue 7/17 at 100.00 N/R 182,070
Bonds, Brethren Village Project, Series 2008A, 6.375%, 7/01/30
785 Lebanon County Health Facilities Authority, Pennsylvania, Health 12/14 at 100.00 N/R 705,377
Center Revenue Bonds, Pleasant View Retirement Community,
Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority, Revenue
Bonds, Northwestern Human Services Inc., Series 1998A:
1,260 5.250%, 6/01/14 6/08 at 100.00 BB+ 1,200,616
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 45,899
750 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 763,860
Revenue Bonds, Philadelphia Corporation for the Aging
Project, Series 2001B, 5.250%, 7/01/23 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
4,185 Total Long-Term Care 3,925,457
- ------------------------------------------------------------------------------------------------------------------------------------
Materials - 4.3% (2.8% of Total Investments)
400 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call Baa3 400,404
Revenue Bonds, United States Steel Corporation, Series 2005,
5.500%, 11/01/16
280 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 266,703
Solid Waste Disposal Revenue Bonds, International Paper
Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax)
1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 1,038,890
Environmental Improvement Revenue Bonds, USX Corporation
Project, Series 1995, 5.400%, 11/01/17 (Mandatory put 11/01/11)
750 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102.00 N/R 647,610
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
2,430 Total Materials 2,353,607
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 22.7% (14.8% of Total Investments)
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 Baa3 1,761,385
General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 -
FGIC Insured
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call Aa2 4,559,037
Government Revenue Bonds, Series 2002, 5.750%, 7/01/17
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Refunding Bonds, Series 2002:
725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 A 778,607
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 A 1,071,170
625 Lower Merion School District, Montgomery County, Pennsylvania, 9/17 at 100.00 Aaa 661,275
General Obligation Bonds, Series 2007, 5.000%, 9/01/24
375 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call Aa3 384,383
Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured
950 Pine-Richland School District, Pennsylvania, School Improvement 7/15 at 100.00 AAA 970,102
General Obligation Bonds, Series 2005, 5.000%, 7/15/35 - FSA
Insured
225 Pittsburgh, Pennsylvania, General Obligation Bonds, Series No Opt. Call AAA 250,664
2006B, 5.250%, 9/01/16 - FSA Insured
2,510 Reading School District, Berks County, Pennsylvania, General No Opt. Call A 673,433
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC Insured
500 Woodland Hills School District, Allegheny County, Pennsylvania, 9/15 at 100.00 AAA 539,770
General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 - FSA
Insured
-----
73
-----
NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 600 York County, Pennsylvania, General Obligation Bonds, Series 2006, 12/15 at 100.00 AAA $ 613,656
5.000%, 6/01/33 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
13,250 Total Tax Obligation/General 12,263,482
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 24.0% (15.6% of Total Investments)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF No Opt. Call N/R 983,380
Revenue Bonds, Pittsburg Mills Project, Series 2004, 5.600%,
7/01/23
2,000 Grove City Area Hospital Authority, Mercer County, Pennsylvania, 3/12 at 100.00 Baa3 1,958,740
Revenue Bonds, County Guaranteed, Woodland Place Project,
Series 2002, 5.400%, 3/01/31 - FGIC Insured
4,000 Harrisburg Parking Authority, Pennsylvania, Guaranteed Revenue 9/11 at 100.00 Aaa 4,110,839
Refunding Bonds, Series 2001J, 5.000%, 9/01/22 - MBIA Insured
485 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior Lien 12/18 at 100.00 AAA 498,638
Revenue Bonds, Series 2003A, 5.000%, 12/01/32 (WI/DD, Settling
5/20/08) - MBIA Insured
1,200 Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, No Opt. Call AAA 1,338,384
Series 2005A, 5.250%, 7/15/18 - FSA Insured
Philadelphia Redevelopment Authority, Pennsylvania, Revenue Bonds,
Philadelphia Neighborhood Transformation Initiative, Series 2002A:
1,000 5.500%, 4/15/18 - FGIC Insured 4/12 at 100.00 Baa1 1,034,620
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 Baa1 1,785,438
800 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call AAA 842,576
Bonds, Series 2007N, 5.250%, 7/01/33 - MBIA Insured
710 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 176,868
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
250 Washington County Redevelopment Authority, Pennsylvania, Tanger 7/17 at 100.00 N/R 216,268
Outlet Victory Center Tax Increment Bonds, Series 2006A,
5.450%, 7/01/35
- ------------------------------------------------------------------------------------------------------------------------------------
13,195 Total Tax Obligation/Limited 12,945,751
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 5.4% (3.5% of Total Investments)
130 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 137,420
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 BBB 950,930
Bonds, Amtrak 30th Street Station Parking Garage, Series 2002,
5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax)
670 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 697,081
2006A, 5.000%, 12/01/24 - AMBAC Insured
180 Scranton Parking Authority, Pennsylvania, Guaranteed Revenue 6/17 at 100.00 AA 166,293
Bonds, Series 2007, 5.250%, 6/01/39 - RAAI Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, Airport 1/13 at 100.00 Aaa 958,840
System Revenue Bonds, Series 2003A, 5.000%, 1/01/28 - AMBAC
Insured (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
2,980 Total Transportation 2,910,564
- ------------------------------------------------------------------------------------------------------------------------------------
- -----
74
- -----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 30.0% (19.5% of Total Investments) (4)
$ 2,000 Adams County, Pennsylvania, General Obligation Bonds, Series 2001, 5/11 at 100.00 A1(4) $ 2,163,980
5.500%, 11/15/26 (Pre-refunded 5/15/11) - FGIC Insured
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
100 9.250%, 11/15/22 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 117,702
300 9.250%, 11/15/30 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 353,106
1,155 Bucks County Industrial Development Authority, Pennsylvania, Revenue 10/12 at 101.00 BBB+(4) 1,303,672
Bonds, Pennswood Village Project, Series 2002A, 6.000%, 10/01/34
(Pre-refunded 10/01/12)
1,000 Cumberland County Municipal Authority, Pennsylvania, Retirement 1/13 at 101.00 N/R(4) 1,167,590
Community Revenue Bonds, Wesley Affiliated Services Inc., Series
2002A, 7.125%, 1/01/25 (Pre-refunded 1/01/13)
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, Series 11/12 at 57.97 Aaa 551,474
2002B, 0.000%, 11/15/21 (Pre-refunded 11/15/12) - MBIA Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, 7/11 at 101.00 AAA 3,218,825
Series 2001, 5.500%, 7/15/33 (Pre-refunded 7/15/11) - AMBAC
Insured
2,000 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 2,172,520
Lease Revenue Bonds, Series 2001B, 5.125%, 10/01/26 (Pre-refunded
10/01/11) - FSA Insured
2,420 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,664,517
Ordinance, Fourth Series 1998, 5.250%, 8/01/20 (Pre-refunded
8/01/13) - FSA Insured
65 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth Series No Opt. Call AAA 76,879
1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,000 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 2,182,280
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) - FSA
Insured
225 St. Mary Hospital Authority, Pennsylvania, Health System Revenue 11/14 at 100.00 A1(4) 251,606
Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34
(Pre-refunded 11/15/14)
- ------------------------------------------------------------------------------------------------------------------------------------
15,310 Total U.S. Guaranteed 16,224,151
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 3.2% (2.1% of Total Investments)
315 Pennsylvania Economic Development Financing Authority, Exempt 12/09 at 103.00 Ba3 318,333
Facilities Revenue Bonds, Reliant Energy Inc., Series 2003A,
6.750%, 12/01/36 (Alternative Minimum Tax)
145 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 148,387
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured
1,240 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh Series, 10/17 at 100.00 AAA 1,240,868
2007, 5.000%, 10/01/37 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
1,700 Total Utilities 1,707,588
- ------------------------------------------------------------------------------------------------------------------------------------
-----
75
-----
NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 9.5% (6.2% of Total Investments)
$ 4,500 Bucks County Industrial Development Authority, Pennsylvania, Water 3/12 at 100.00 AA- $ 4,505,759
Facility Revenue Bonds, Pennsylvania Suburban Water Company,
Series 2002, 5.550%, 9/01/32 - FGIC Insured (Alternative
Minimum Tax)
600 Harrisburg Authority, Dauphin County, Pennsylvania, Water Revenue 7/14 at 100.00 AAA 624,294
Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
5,100 Total Water and Sewer 5,130,053
- ------------------------------------------------------------------------------------------------------------------------------------
$ 83,985 Total Investments (cost $81,915,907) - 153.8% 83,068,131
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.0)% (571,395)
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.8)% (5) (28,500,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 53,996,736
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.3)%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
- -----
76
- -----
| Statement of
| ASSETS & LIABILITIES
April 30, 2008
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
(NQJ) (NNJ) (NXJ) (NUJ)
- ------------------------------------------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $446,279,228, $259,849,509,
$139,670,244 and $97,536,749, respectively) $ 446,947,843 $ 262,765,926 $ 139,615,466 $ 97,832,855
Cash -- 1,199,098 -- 734,138
Receivables:
Interest 7,098,078 3,916,084 2,224,816 1,567,040
Investments sold 4,511,867 2,000,000 2,000,000 --
Other assets 47,017 33,444 914 699
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 458,604,805 269,914,552 143,841,196 100,134,732
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 1,141,867 -- 1,089,551 --
Floating rate obligations -- -- -- --
Payable for investments purchased 1,912,800 1,115,800 557,900 398,500
Accrued expenses:
Management fees 231,077 137,866 56,272 35,478
Other 119,161 77,480 29,415 24,381
Common share dividends payable 950,775 560,177 341,064 249,125
Preferred share dividends payable 54,774 49,334 4,962 23,073
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 4,410,454 1,940,657 2,079,164 730,557
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 292,194,351 $ 176,373,895 $ 93,762,032 $ 64,904,175
====================================================================================================================================
Common shares outstanding 20,484,322 12,049,496 6,577,112 4,523,121
====================================================================================================================================
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common shares
outstanding) $ 14.26 $ 14.64 $ 14.26 $ 14.35
====================================================================================================================================
Net assets applicable to Common shares consist of:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 204,843 $ 120,495 $ 65,771 $ 45,231
Paid-in surplus 289,027,855 172,022,510 93,391,374 64,153,279
Undistributed (Over-distribution of) net investment income (281,426) (87,500) (123,595) (30,843)
Accumulated net realized gain (loss) from investments and
derivative transactions 2,574,464 1,401,973 483,260 440,402
Net unrealized appreciation (depreciation) of
investments 668,615 2,916,417 (54,778) 296,106
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 292,194,351 $ 176,373,895 $ 93,762,032 $ 64,904,175
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
-----
77
-----
| Statement of
| ASSETS & LIABILITIES (continued)
April 30, 2008
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
(NQP) (NPY) (NXM) (NVY)
- ------------------------------------------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $375,618,349, $331,092,447
$71,740,834 and $81,915,907, respectively) $ 382,348,482 $ 333,158,970 $ 72,771,121 $ 83,068,131
Cash 1,648,349 3,921,867 -- --
Receivables:
Interest 5,746,894 5,630,318 1,204,179 1,146,214
Investments sold 705,000 1,740,000 155,525 120,575
Other assets 46,080 39,054 542 583
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 390,494,805 344,490,209 74,131,367 84,335,503
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- -- 260,505 78,514
Floating rate obligations 21,670,000 7,065,000 -- --
Payable for investments purchased 3,189,220 2,994,850 434,775 1,496,155
Accrued expenses:
Management fees 186,178 170,612 29,140 29,507
Other 105,226 182,777 20,034 23,458
Common share dividends payable 744,708 676,510 172,895 205,517
Preferred share dividends payable 71,957 48,192 2,587 5,616
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 25,967,289 11,137,941 919,936 1,838,767
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 232,527,516 $ 215,252,268 $ 48,211,431 $ 53,996,736
====================================================================================================================================
Common shares outstanding 16,161,598 15,670,651 3,332,584 3,725,809
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 14.39 $ 13.74 $ 14.47 $ 14.49
====================================================================================================================================
Net assets applicable to Common shares consist of:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 161,616 $ 156,707 $ 33,326 $ 37,258
Paid-in surplus 228,889,752 214,507,120 47,308,739 52,811,188
Undistributed (Over-distribution of) net investment income (317,352) 22,143 (44,697) (24,148)
Accumulated net realized gain (loss) from investments and
derivative transactions (2,936,633) (1,500,225) (116,224) 20,214
Net unrealized appreciation (depreciation) of
investments 6,730,133 2,066,523 1,030,287 1,152,224
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 232,527,516 $ 215,252,268 $ 48,211,431 $ 53,996,736
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
- -----
78
- -----
| Statement of
| OPERATIONS
Year Ended April 30, 2008
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
(NQJ) (NNJ) (NXJ) (NUJ)
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income $ 22,403,038 $ 13,012,162 $ 7,012,401 $ 4,947,649
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 2,848,041 1,695,232 911,086 642,562
Preferred shares - auction fees 405,558 229,315 120,166 86,369
Preferred shares - dividend disbursing agent fees 30,014 30,018 10,000 10,000
Shareholders' servicing agent fees and expenses 36,291 21,998 1,702 1,589
Interest expense on floating rate obligations -- -- -- --
Custodian's fees and expenses 135,649 110,461 44,162 29,197
Directors'/Trustees' fees and expenses 10,768 6,129 3,450 2,471
Professional fees 34,320 24,704 15,192 13,084
Shareholders' reports - printing and mailing expenses 62,176 43,602 21,005 17,781
Stock exchange listing fees 9,559 9,526 682 469
Investor relations expense 37,422 22,853 11,871 14,878
Other expenses 37,100 20,615 14,780 13,739
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 3,646,898 2,214,453 1,154,096 832,139
Custodian fee credit (31,692) (10,265) (13,525) (14,749)
Expense reimbursement -- -- (282,177) (249,155)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,615,206 2,204,188 858,394 568,235
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 18,787,832 10,807,974 6,154,007 4,379,414
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments 1,697,124 1,002,315 222,219 667,227
Forward swaps 1,271,098 560,840 372,082 194,404
Change in net unrealized appreciation (depreciation) of:
Investments (16,370,030) (7,924,293) (5,887,711) (4,419,598)
Forward swaps (2,853) (984) (590) (295)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (13,404,661) (6,362,122) (5,294,000) (3,558,262)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Preferred Shareholders
From net investment income (5,356,071) (3,012,048) (1,639,115) (1,046,557)
From accumulated net realized gains (225,437) (175,613) (53,203) (214,756)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (5,581,508) (3,187,661) (1,692,318) (1,261,313)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (198,337) $ 1,258,191 $ (832,311) $ (440,161)
====================================================================================================================================
See accompanying notes to financial statements.
-----
79
-----
| Statement of
| OPERATIONS (continued)
Year Ended April 30, 2008
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
(NQP) (NPY) (NXM) (NVY)
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income $ 19,328,812 $ 17,565,938 $ 3,778,346 $ 4,256,850
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 2,301,180 2,121,327 472,145 532,112
Preferred shares - auction fees 330,455 295,655 62,586 71,349
Preferred shares - dividend disbursing agent fees 30,030 30,014 10,000 10,000
Shareholders' servicing agent fees and expenses 39,125 34,039 1,896 1,645
Interest expense on floating rate obligations 891,445 580,467 53,868 59,894
Custodian's fees and expenses 151,568 221,704 34,282 41,597
Directors'/Trustees' fees and expenses 8,415 9,171 1,755 2,025
Professional fees 26,870 24,912 11,808 12,310
Shareholders' reports - printing and mailing expenses 59,125 52,183 15,511 18,860
Stock exchange listing fees 9,515 9,515 346 387
Investor relations expense 37,013 36,067 8,210 9,544
Other expenses 32,535 20,989 12,839 13,073
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 3,917,276 3,436,043 685,246 772,796
Custodian fee credit (25,781) (26,613) (9,538) (6,192)
Expense reimbursement -- -- (145,854) (206,312)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,891,495 3,409,430 529,854 560,292
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 15,437,317 14,156,508 3,248,492 3,696,558
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments (700,898) (976,106) 20,306 74,310
Forward swaps (1,940,455) (524,955) -- --
Change in net unrealized appreciation (depreciation) of:
Investments (11,038,711) (13,138,981) (2,827,071) (3,075,387)
Forward swaps 340,646 (181,467) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (13,339,418) (14,821,509) (2,806,765) (3,001,077)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Preferred Shareholders
From net investment income (4,735,546) (4,100,251) (849,664) (970,796)
From accumulated net realized gains -- (267,657) (54,170) (61,834)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (4,735,546) (4,367,908) (903,834) (1,032,630)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ (2,637,647) $ (5,032,909) $ (462,107) $ (337,149)
====================================================================================================================================
See accompanying notes to financial statements.
- -----
80
- -----
| Statement of
| CHANGES in NET ASSETS
New Jersey New Jersey
Investment Quality (NQJ) Premium Income (NNJ)
------------------------------------------ --------------------------------------------
Year Ten Months Year Ten Months
Ended Ended Year Ended Ended Ended Year Ended
4/30/08 4/30/07 6/30/06 4/30/08 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 18,787,832 $ 15,440,608 $ 18,688,118 $ 10,807,974 $ 8,918,431 $ 10,793,726
Net realized gain (loss) from:
Investments 1,697,124 705,064 2,924,752 1,002,315 510,558 1,016,202
Forward swaps 1,271,098 -- -- 560,840 -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment
restrictions -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (16,370,030) 8,995,606 (18,288,152) (7,924,293) 5,450,660 (11,273,653)
Forward swaps (2,853) 2,853 -- (984) 984 --
Distributions to Preferred Shareholders:
From net investment income (5,356,071) (4,125,527) (3,729,225) (3,012,048) (2,385,561) (1,991,793)
From accumulated net realized gains (225,437) (168,273) (599,726) (175,613) (27,729) (454,296)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (198,337) 20,850,331 (1,004,233) 1,258,191 12,467,343 (1,909,814)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (13,396,750) (11,286,866) (16,230,307) (7,926,161) (7,003,612) (9,510,935)
From accumulated net realized gains (612,481) (700,556) (4,917,869) (497,644) (123,667) (3,721,776)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (14,009,231) (11,987,422) (21,148,176) (8,423,805) (7,127,279) (13,232,711)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Common shares:
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- -- 608,791 -- -- 159,660
Repurchased -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions -- -- 608,791 -- -- 159,660
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (14,207,568) 8,862,909 (21,543,618) (7,165,614) 5,340,064 (14,982,865)
Net assets applicable to Common
shares at the beginning of year 306,401,919 297,539,010 319,082,628 183,539,509 178,199,445 193,182,310
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $292,194,351 $306,401,919 $297,539,010 $ 176,373,895 $183,539,509 $178,199,445
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ (281,426) $ (309,186) $ (337,401) $ (87,500) $ 44,669 $ 515,769
====================================================================================================================================
See accompanying notes to financial statements.
-----
81
-----
| Statement of
| CHANGES in NET ASSETS (continued)
New Jersey New Jersey
Dividend Advantage (NXJ) Dividend Advantage 2 (NUJ)
------------------------------------------ --------------------------------------------
Year Ten Months Year Ten Months
Ended Ended Year Ended Ended Ended Year Ended
4/30/08 4/30/07 6/30/06 4/30/08 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 6,154,007 $ 5,144,398 $ 6,237,805 $ 4,379,414 $ 3,733,391 $ 4,467,174
Net realized gain (loss) from:
Investments 222,219 307,186 484,326 667,227 526,783 178,837
Forward swaps 372,082 -- -- 194,404 -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment
restrictions -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (5,887,711) 2,703,743 (5,541,649) (4,419,598) 1,671,929 (3,595,338)
Forward swaps (590) 590 -- (295) 295 --
Distributions to Preferred Shareholders:
From net investment income (1,639,115) (1,250,055) (1,154,022) (1,046,557) (919,957) (861,957)
From accumulated net realized gains (53,203) (7,668) (82,061) (214,756) (3,401) (57,711)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (832,311) 6,898,194 (55,601) (440,161) 5,009,040 131,005
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (4,465,787) (4,204,503) (5,512,880) (3,231,672) (2,982,781) (3,899,566)
From accumulated net realized gains (176,924) (34,815) (678,056) (685,253) (14,809) (424,522)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,642,711) (4,239,318) (6,190,936) (3,916,925) (2,997,590) (4,324,088)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Common shares:
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions 34,444 166,210 122,384 23,495 76,290 111,985
Repurchased -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions 34,444 166,210 122,384 23,495 76,290 111,985
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (5,440,578) 2,825,086 (6,124,153) (4,333,591) 2,087,740 (4,081,098)
Net assets applicable to Common
shares at the beginning of year 99,202,610 96,377,524 102,501,677 69,237,766 67,150,026 71,231,124
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $ 93,762,032 $ 99,202,610 $ 96,377,524 $ 64,904,175 $ 69,237,766 $ 67,150,026
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ (123,595) $ (171,723) $ 139,151 $ (30,843) $ (128,820) $ 41,782
====================================================================================================================================
See accompanying notes to financial statements.
- -----
82
- -----
Pennsylvania Investment Pennsylvania Premium
Quality (NQP) Income 2 (NPY)
------------------------------------------- -------------------------------------------
Year Ten Months Year Ten Months
Ended Ended Year Ended Ended Ended Year Ended
4/30/08 4/30/07 6/30/06 4/30/08 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 15,437,317 $ 12,522,643 $ 14,590,128 $ 14,156,508 $ 11,784,988 $ 14,058,368
Net realized gain (loss) from:
Investments (700,898) 525,913 (822,081) (976,106) 1,099,235 (44,620)
Forward swaps (1,940,455) -- -- (524,955) -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased in
violation of investment restrictions -- -- -- -- -- 27,169
Change in net unrealized appreciation
(depreciation) of:
Investments (11,038,711) 7,529,900 (13,473,894) (13,138,981) 6,516,874 12,682,405
Forward swaps 340,646 (340,646) -- (181,467) 181,467 --
Distributions to Preferred Shareholders:
From net investment income (4,735,546) (3,721,535) (3,413,477) (4,100,251) (3,333,169) (2,800,234)
From accumulated net realized gains -- -- (261,069) (267,657) -- (435,619)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations (2,637,647) 16,516,275 (3,380,393) (5,032,909) 16,249,395 (1,877,341)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (10,625,493) (8,590,894) (11,533,314) (9,656,362) (8,720,545) (12,127,724)
From accumulated net realized gains -- -- (1,732,849) (688,161) -- (3,389,440)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (10,625,493) (8,590,894) (13,266,163) (10,344,523) (8,720,545) (15,517,164)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Common shares:
Net proceeds from shares issued to
shareholders due to reinvestment of
distributions -- -- -- -- -- 142,460
Repurchased (1,853,014) -- -- (2,020,258) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (1,853,014) -- -- (2,020,258) -- 142,460
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (15,116,154) 7,925,381 (16,646,556) (17,397,690) 7,528,850 (17,252,045)
Net assets applicable to Common shares at
the beginning of year 247,643,670 239,718,289 256,364,845 232,649,958 225,121,108 242,373,153
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at
the end of year $ 232,527,516 $ 247,643,670 $ 239,718,289 $ 215,252,268 $ 232,649,958 $225,121,108
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of year $ (317,352) $ (393,373) $ (603,568) $ 22,143 $ (377,624) $ (110,182)
====================================================================================================================================
See accompanying notes to financial statements.
-----
83
-----
| Statement of
| CHANGES in NET ASSETS (continued)
Pennsylvania Dividend Pennsylvania Dividend
Advantage (NXM) Advantage 2 (NVY)
------------------------------------------- -------------------------------------------
Year Ten Months Year Ten Months
Ended Ended Year Ended Ended Ended Year Ended
4/30/08 4/30/07 6/30/06 4/30/08 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 3,248,492 $ 2,711,602 $ 3,240,349 $ 3,696,558 $ 3,086,215 $ 3,667,111
Net realized gain (loss) from:
Investments 20,306 212,309 (47,126) 74,310 328,218 239,396
Forward swaps -- -- -- -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased in
violation of investment restrictions -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (2,827,071) 1,305,436 (2,528,439) (3,075,387) 1,348,046 (3,414,928)
Forward swaps -- -- -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (849,664) (684,854) (637,236) (970,796) (791,861) (715,207)
From accumulated net realized gains (54,170) -- (40,350) (61,834) (22,246) (47,059)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations (462,107) 3,544,493 (12,802) (337,149) 3,948,372 (270,687)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (2,342,752) (2,195,386) (2,902,469) (2,635,991) (2,318,778) (2,942,584)
From accumulated net realized gains (171,961) -- (336,361) (181,447) (90,880) (363,540)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (2,514,713) (2,195,386) (3,238,830) (2,817,438) (2,409,658) (3,306,124)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Common shares:
Net proceeds from shares issued to
shareholders due to reinvestment of
distributions 28,147 151,298 199,614 9,543 6,072 --
Repurchased -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 28,147 151,298 199,614 9,543 6,072 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,948,673) 1,500,405 (3,052,018) (3,145,044) 1,544,786 (3,576,811)
Net assets applicable to Common shares at
the beginning of year 51,160,104 49,659,699 52,711,717 57,141,780 55,596,994 59,173,805
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at
the end of year $ 48,211,431 $ 51,160,104 $ 49,659,699 $ 53,996,736 $ 57,141,780 $ 55,596,994
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of year $ (44,697) $ (100,466) $ 68,404 $ (24,148) $ (109,173) $ (83,424)
====================================================================================================================================
See accompanying notes to financial statements.
- -----
84
- -----
| Statement of
| CASH FLOWS
Year Ended April 30, 2008
Pennsylvania
Investment
Quality
(NQP)
- --------------------------------------------------------------------------------------------------
Cash Flows from Operating Activities:
Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations $ (2,637,647)
Adjustments to reconcile the net increase (decrease) in net assets applicable
to Common shares from operations to net cash provided by (used in) operating
activities:
Purchases of investments (77,517,382)
Proceeds from sales and maturities of investments 86,446,049
Cash settlement of forward swaps (1,940,455)
Proceeds from (purchase of) short-term investments, net 1,771
Amortization/(Accretion) of premiums and discounts, net 357,503
(Increase) Decrease in receivable for interest 77,066
(Increase) Decrease in receivable for investments sold 8,903,451
(Increase) Decrease in other assets (2,130)
Increase (Decrease) in payable for investments purchased (6,229,005)
Increase (Decrease) in accrued management fees (7,089)
Increase (Decrease) in accrued other liabilities 3,787
Increase (Decrease) in Preferred share dividends payable 8,768
Net realized (gain) loss from investments 700,898
Net realized (gain) loss from forward swaps 1,940,455
Change in net unrealized (appreciation) depreciation of investments 11,038,711
Change in net unrealized (appreciation) depreciation of forward swaps (340,646)
- --------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 20,804,105
- --------------------------------------------------------------------------------------------------
Cash Flows from Financing Activities:
Increase (Decrease) in floating rate obligations (7,045,000)
Increase (Decrease) in cash overdraft balance (376,957)
Cash distributions paid to Common shareholders (9,880,785)
Cost of Common shares repurchased (1,853,014)
- --------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (19,155,756)
- --------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Cash 1,648,349
Cash at the beginning of year --
- --------------------------------------------------------------------------------------------------
Cash at the End of Year $ 1,648,349
==================================================================================================
Supplemental Disclosure of Cash Flow Information
Cash paid for interest on floating rate obligations was $891,445.
See accompanying notes to financial statements.
-----
85
-----
| Notes to
| FINANCIAL STATEMENTS
1. General Information and Significant Accounting Policies
The state funds covered in this report and their corresponding Common share
stock exchange symbols are Nuveen New Jersey Investment Quality Municipal Fund,
Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ), Nuveen
New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen New Jersey Dividend
Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania Investment Quality
Municipal Fund (NQP), Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY),
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) and Nuveen
Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (collectively, the
"Funds"). Common shares of New Jersey Investment Quality (NQJ), New Jersey
Premium Income (NNJ), Pennsylvania Investment Quality (NQP) and Pennsylvania
Premium Income 2 (NPY) are traded on the New York Stock Exchange while Common
shares of New Jersey Dividend Advantage (NXJ), New Jersey Dividend Advantage 2
(NUJ), Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage
2 (NVY) are traded on the American Stock Exchange. The Funds are registered
under the Investment Company Act of 1940, as amended, as closed-end management
investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state or certain U.S. territories.
In February 2007, the Board of Directors/Trustees of the Funds approved a change
in the Funds' fiscal year end from June 30 to April 30.
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 may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or forward swap
contract, each Fund may use market quotes provided by major broker/dealers in
such investments. If it is determined that the market price for an investment or
derivative instrument is unavailable or inappropriate, the Board of
Directors/Trustees of the Funds, or its designee, may establish fair value in
accordance with procedures established in good faith by the Board of
Directors/Trustees. 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/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/delayed delivery purchase commitments. At April 30 2008, New Jersey
Investment Quality (NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend
Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania Investment
Quality (NQP), Pennsylvania Premium Income 2 (NPY), Pennsylvania Dividend
Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) had outstanding
when-issued/delayed delivery purchase commitments of $1,912,800, $1,115,800,
$557,900, $398,500, $2,189,220, $1,994,850, $434,775 and $496,155, respectively.
- -----
86
- -----
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.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its 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 and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
Effective October 31, 2007, the Funds adopted Financial Accounting Standards
Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes"
(FIN 48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax benefit or expense in the
current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the fiscal year ended April 30, 2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
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 at least 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 one or more Series. The dividend rate paid by the Funds on each
Series 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 number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
(NQJ) (NNJ) (NXJ) (NUJ)
- --------------------------------------------------------------------------------
Number of shares:
Series M 3,200 -- -- --
Series T -- 624 1,920 --
Series W -- 1,440 -- 1,380
Series TH 2,000 1,600 -- --
Series F 1,280 -- -- --
- --------------------------------------------------------------------------------
Total 6,480 3,664 1,920 1,380
================================================================================
-----
87
-----
| Notes to
| FINANCIAL STATEMENTS (continued)
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
(NQP) (NPY) (NXM) (NVY)
- -------------------------------------------------------------------------------------
Number of shares:
Series M -- 844 -- 1,140
Series T 880 -- 1,000 --
Series W 2,400 -- -- --
Series TH 2,000 2,080 -- --
Series F -- 1,800 -- --
- -------------------------------------------------------------------------------------
Total 5,280 4,724 1,000 1,140
=====================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future Common share earnings may be lower
than they otherwise would have been.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") with a broker-dealer by which a Fund agrees to reimburse the
broker-dealer, in certain circumstances, for the difference between the
liquidation value of the fixed-rate bond held by the trust and the liquidation
value of the floating rate certificates, as well as any shortfalls in interest
cash flows. The inverse floater held by a Fund gives the Fund the right (a) to
cause the holders of the floating rate certificates to tender their notes at
par, and (b) to have the broker transfer the fixed-rate bond held by the trust
to the Fund, thereby collapsing the trust. An investment in an
externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater, recourse trust or credit recovery swap is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an
- -----
88
- -----
inverse floating rate trust", with the Fund accounting for the short-term
floating rate certificates issued by the trust as "Floating rate obligations" on
the Statement of Assets and Liabilities. In addition, the Fund reflects in
Investment Income the entire earnings of the underlying bond and accounts for
the related interest paid to the holders of the short-term floating rate
certificates as "Interest expense on floating rate obligations" in the Statement
of Operations.
During the fiscal year ended April 30, 2008, New Jersey Investment Quality
(NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend Advantage (NXJ),
Pennsylvania Investment Quality (NQP), Pennsylvania Premium Income 2 (NPY),
Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2
(NVY) invested in externally deposited inverse floaters and/or self-deposited
inverse floaters. New Jersey Dividend Advantage 2 (NUJ) did not invest in any
such instruments during the fiscal year ended April 30, 2008.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended April 30, 2008, were as follows:
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
(NQP) (NPY) (NXM) (NVY)
- ----------------------------------------------------------------------------------------------------
Average floating rate obligations $ 25,880,205 $ 16,358,962 $ 1,486,475 $ 1,652,678
Average annual interest rate and fees 3.44% 3.55% 3.62% 3.62%
====================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount. Pennsylvania Dividend
Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) were the only Funds
that did not invest in forward interest rate swap transactions during the fiscal
year ended April 30, 2008.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
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.
-----
89
-----
| Notes to
| FINANCIAL STATEMENTS (continued)
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
On July 10, 2007, the Board of Trustees of Pennsylvania Investment Quality (NQP)
and Pennsylvania Premium Income 2 (NPY) approved an open-market share repurchase
program, as part of a broad, ongoing effort designed to support the market
prices of the Funds' Common shares. Under the terms of the new program, each
Fund may repurchase up to 10% of its outstanding Common shares.
Transactions in Common shares were as follows:
New Jersey New Jersey
Investment Quality (NQJ) Premium Income (NNJ)
------------------------------------ ------------------------------------
Ten Months Ten Months
Year Ended Ended Year Ended Year Ended Ended Year Ended
4/30/08 4/30/07 6/30/06 4/30/08 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to reinvestment of
distributions -- -- 39,742 -- -- 10,167
Repurchased -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased -- -- -- -- -- --
Weighted average discount per Common share repurchased -- -- -- -- -- --
====================================================================================================================================
New Jersey New Jersey
Dividend Advantage (NXJ) Dividend Advantage 2 (NUJ)
------------------------------------ ------------------------------------
Ten Months Ten Months
Year Ended Ended Year Ended Year Ended Ended Year Ended
4/30/08 4/30/07 6/30/06 4/30/08 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to reinvestment of
distributions 2,302 10,642 7,907 1,545 4,764 6,973
Repurchased -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased -- -- -- -- -- --
Weighted average discount per Common share repurchased -- -- -- -- -- --
====================================================================================================================================
Pennsylvania Pennsylvania
Investment Quality (NQP) Premium Income 2 (NPY)
------------------------------------ ------------------------------------
Ten Months Ten Months
Year Ended Ended Year Ended Year Ended Ended Year Ended
4/30/08 4/30/07 6/30/06 4/30/08 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to reinvestment of
distributions -- -- -- -- -- 9,155
Repurchased (139,900) -- -- (156,100) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased $ 13.23 -- -- $ 12.92 -- --
Weighted average discount per Common share repurchased 9.64% -- -- 8.93% -- --
====================================================================================================================================
- -----
90
- -----
Pennsylvania Pennsylvania
Dividend Advantage (NXM) Dividend Advantage 2 (NVY)
------------------------------------ ------------------------------------
Ten Months Ten Months
Year Ended Ended Year Ended Year Ended Ended Year Ended
4/30/08 4/30/07 6/30/06 4/30/08 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to reinvestment of
distributions 1,846 9,600 12,400 626 393 --
Repurchased -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased -- -- -- -- -- --
Weighted average discount per Common share repurchased -- -- -- -- -- --
====================================================================================================================================
3. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended April 30, 2008, were
as follows:
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
(NQJ) (NNJ) (NXJ) (NUJ)
- --------------------------------------------------------------------------------------
Purchases $ 78,341,126 $ 52,062,150 $ 24,414,821 $ 15,975,543
Sales and maturities 77,406,899 52,675,657 24,578,717 16,444,593
======================================================================================
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
(NQP) (NPY) (NXM) (NVY)
- --------------------------------------------------------------------------------------
Purchases $ 77,517,382 $ 94,750,926 $ 15,286,409 $ 22,867,093
Sales and maturities 86,446,049 116,777,363 16,033,142 22,746,248
======================================================================================
4. Income Tax Information
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No.140. To the extent that differences arise that
are permanent in nature, such amounts are reclassified within the capital
accounts on the Statement of Assets and Liabilities presented in the annual
report, based on their federal tax basis treatment; temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At April 30, 2008, the cost of investments was as follows:
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
(NQJ) (NNJ) (NXJ) (NUJ)
- --------------------------------------------------------------------------------------
Cost of investments $446,254,322 $259,681,873 $139,607,365 $ 97,509,864
======================================================================================
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
(NQP) (NPY) (NXM) (NVY)
- --------------------------------------------------------------------------------------
Cost of investments $354,057,004 $323,829,634 $ 71,702,443 $ 81,887,847
======================================================================================
-----
91
-----
| Notes to
| FINANCIAL STATEMENTS (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2008, were as follows:
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
(NQJ) (NNJ) (NXJ) (NUJ)
- ----------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 9,739,080 $ 7,674,004 $ 2,984,847 $ 2,217,630
Depreciation (9,045,559) (4,589,951) (2,976,746) (1,894,639)
- ----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 693,521 $ 3,084,053 $ 8,101 $ 322,991
- --------------------------------------================================================================================
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
(NQP) (NPY) (NXM) (NVY)
- ----------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 12,951,067 $ 9,097,805 $ 2,342,435 $ 2,757,729
Depreciation (6,329,954) (6,833,653) (1,273,757) (1,577,445)
- ----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 6,621,113 $ 2,264,152 $ 1,068,678 $ 1,180,284
- --------------------------------------================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at April 30, 2008, the Funds' tax year end, were
as follows:
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
(NQJ) (NNJ) (NXJ) (NUJ)
- ----------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 864,838 $ 450,899 $ 71,016 $ 319,006
Undistributed net ordinary income ** 1,237,909 516,439 346,098 182,576
Undistributed net long-term capital gains 1,336,555 885,534 144,716 265,912
======================================================================================================================
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
(NQP) (NPY) (NXM) (NVY)
- ----------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 626,146 $ 610,618 $ 109,462 $ 167,649
Undistributed net ordinary income ** -- 37,787 -- --
Undistributed net long-term capital gains -- -- -- 20,215
- --------------------------------------================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on April 1, 2008, paid on May 1, 2008.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
- -----
92
- -----
The tax character of distributions paid during the Funds' tax year ended April
30, 2008, ten months ended April 30, 2007, and during the tax year ended June
30, 2006, was designated for purposes of the dividends paid deduction as
follows:
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
Year Ended April 30, 2008 (NQJ) (NNJ) (NXJ) (NUJ)
- ----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $ 18,776,382 $ 10,955,180 $ 6,276,949 $ 4,206,447
Distributions from net ordinary income ** -- 12,727 -- 886
Distributions from net long-term capital gains **** 837,918 673,257 230,127 899,123
======================================================================================================================
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
Year Ended April 30, 2008 (NQP) (NPY) (NXM) (NVY)
- ----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $ 15,335,512 $ 13,821,804 $ 3,228,981 $ 3,634,945
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains**** -- 955,818 226,011 243,281
======================================================================================================================
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
Ten Months Ended April 30, 2007 (NQJ) (NNJ) (NXJ) (NUJ)
- ----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 15,443,038 $ 9,395,450 $ 5,456,484 $ 3,895,191
Distributions from net ordinary income ** -- 3,495 -- 127
Distributions from net long-term capital gains 868,829 151,396 42,483 18,210
======================================================================================================================
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
Ten Months Ended April 30, 2007 (NQP) (NPY) (NXM) (NVY)
- ----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 12,242,231 $ 12,079,079 $ 2,880,245 $ 3,111,211
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- -- -- 113,126
======================================================================================================================
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
Year Ended June 30, 2006 (NQJ) (NNJ) (NXJ) (NUJ)
- ----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 20,266,148 $ 11,621,963 $ 6,701,392 $ 4,803,247
Distributions from net ordinary income ** -- 9,989 -- 124
Distributions from net long-term capital gains 5,517,595 4,174,209 760,117 482,233
======================================================================================================================
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
Year Ended June 30, 2006 (NQP) (NPY) (NXM) (NVY)
- ----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 15,205,803 $ 15,141,147 $ 3,570,220 $ 3,664,279
Distributions from net ordinary income ** 8,580 41,520 -- --
Distributions from net long-term capital gains 1,984,315 3,816,421 357,090 410,598
======================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
April 30, 2008, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended April 30, 2008.
-----
93
-----
| Notes to
| FINANCIAL STATEMENTS (continued)
At April 30, 2008, the Funds' tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
Pennsylvania Pennsylvania
Investment Premium
Quality Income 2
(NQP) (NPY)
- --------------------------------------------------------------------------------------------------------------------------
Expiration:
April 30, 2014 $ 124,650 $ --
April 30, 2015 170,887 --
April 30, 2016 217,013 840,338
- --------------------------------------------------------------------------------------------------------------------------
Total $ 512,550 $ 840,338
==========================================================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2007 through April 30, 2008, the Funds' tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the
following fiscal year:
Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend
Quality Income 2 Advantage
(NQP) (NPY) (NXM)
- --------------------------------------------------------------------------------------------------------------------------
$ 2,297,704 $ 659,889 $ 116,226
==========================================================================================================================
5. Management Fees 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 Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), 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:
New Jersey Investment Quality (NQJ)
New Jersey Premium Income (NNJ)
Pennsylvania Investment Quality (NQP)
Pennsylvania Premium Income 2 (NPY)
Average Daily Net Assets (including net assets 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
==========================================================================================================================
- -----
94
- -----
New Jersey Dividend Advantage (NXJ)
New Jersey Dividend Advantage 2 (NUJ)
Pennsylvania Dividend Advantage (NXM)
Pennsylvania Dividend Advantage 2 (NVY)
Average Daily Net Assets (including net assets 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 net assets over $2 billion .3750
==========================================================================================================================
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 tables below. As
of April 30, 2008, the complex-level fee rate was .1855%.
Effective August 20, 2007, the complex-level fee schedule is as follows:
Complex-Level Asset Breakpoint Level (1) Effective Rate at Breakpoint Level
- --------------------------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
==========================================================================================================================
Prior to August 20, 2007, the complex-level fee schedule was as follows:
Complex-Level Asset Breakpoint Level (1) Effective Rate at Breakpoint Level
- --------------------------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1698
$125 billion .1617
$200 billion .1536
$250 billion .1509
$300 billion .1490
==========================================================================================================================
(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
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
-----
95
-----
| Notes to
| FINANCIAL STATEMENTS (continued)
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first ten years of New Jersey Dividend Advantage's (NXJ) and
Pennsylvania Dividend Advantage's (NXM) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
Year Ending Year Ending
March 31, March 31,
- --------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage (NXJ) and
Pennsylvania Dividend Advantage (NXM) for any portion of their fees and expenses
beyond March 31, 2011.
For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and
Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
Year Ending Year Ending
March 31, March 31,
- --------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and
expenses beyond March 31, 2012.
As a result of certain trading errors that occurred during the fiscal year ended
June 30, 2006, Pennsylvania Premium Income 2 (NPY) was reimbursed $27,169 by the
Adviser to offset losses realized upon the disposal of investments purchased in
violation of investment restrictions.
- -----
96
- -----
Agreement and Plan of Merger
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City
Investments, Inc. ("Windy City"), a corporation formed by investors led by
Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy
City would acquire Nuveen Investments. Madison Dearborn is a private equity
investment firm based in Chicago, Illinois. The merger was consummated on
November 13, 2007.
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser, and resulted in the automatic
termination of each Fund's agreement. The Board of Directors/Trustees of each
Fund considered and approved a new investment management agreement with the
Adviser on the same terms as the previous agreements. Each new ongoing
agreement, was approved by the shareholders of each Fund and took effect on
November 13, 2007.
The investors led by Madison Dearborn includes an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation will
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
6. New Accounting Pronouncements
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157
In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This
standard establishes a single authoritative definition of fair value, sets out a
framework for measuring fair value and requires additional disclosures about
fair value measurements. SFAS No. 157 applies to fair value measurements already
required or permitted by existing standards. SFAS No. 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The changes to current generally
accepted accounting principles from the application of this standard relate to
the definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of April 30, 2008,
management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts; however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements included within the Statement of Operations for the period.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of April 30, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
-----
97
-----
| Notes to
| FINANCIAL STATEMENTS (continued)
7. Subsequent Events
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 2, 2008, to shareholders of record on
May 15, 2008, as follows:
New Jersey New Jersey New Jersey New Jersey
Investment Premium Dividend Dividend
Quality Income Advantage Advantage 2
(NQJ) (NNJ) (NXJ) (NUJ)
- --------------------------------------------------------------------------------------------
Dividend per share $.0545 $.0545 $.0550 $.0575
============================================================================================
Pennsylvania Pennsylvania Pennsylvania Pennsylvania
Investment Premium Dividend Dividend
Quality Income 2 Advantage Advantage 2
(NQP) (NPY) (NXM) (NVY)
- --------------------------------------------------------------------------------------------
Dividend per share $.0550 $.0495 $.0570 $.0575
============================================================================================
Auction Rate Preferred Shares (ARPS)
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as inverse floating rate securities or
inverse floaters, to refinance a portion of the funds' outstanding ARPS, whose
auctions have been failing for several months, including an initial phase of
approximately $1 billion in forty-one funds. Of this amount, Nuveen expects that
approximately $560 million in ARPS redemption notices will be issued shortly for
thirteen funds.
- -----
98
- -----
| Financial
| HIGHLIGHTS
-----
99
-----
| Financial
| HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations
--------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
- -----------------------------------------------------------------------------------------------------------------
New Jersey Investment Quality (NQJ)
- -----------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 14.96 $ .92 $(.67) $ (.26) $ (.01) $ (.02)
2007(b) 14.53 .75 .47 (.20) (.01) 1.01
Year Ended 6/30:
2006 15.61 .91 (.75) (.18) (.03) (.05)
2005 14.69 .95 1.13 (.10) (.01) 1.97
2004 15.65 1.01 (.75) (.05) (.01) .20
2003 15.07 1.05 .61 (.07) (.01) 1.58
New Jersey Premium Income (NNJ)
- -----------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 15.23 .90 (.53) (.25) (.01) .11
2007(b) 14.79 .74 .49 (.20) --** 1.03
Year Ended 6/30:
2006 16.05 .90 (.85) (.17) (.04) (.16)
2005 15.35 .94 1.01 (.10) (.01) 1.84
2004 16.28 .99 (.79) (.05) (.01) .14
2003 15.60 1.04 .63 (.07) -- 1.60
=================================================================================================================
Less Distributions
------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
- -------------------------------------------------------------------------------------------------------
New Jersey Investment Quality (NQJ)
- -------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ (.65) $(.03) $ (.68) $ -- $ 14.26 $ 13.09
2007(b) (.55) (.03) (.58) -- 14.96 14.30
Year Ended 6/30:
2006 (.79) (.24) (1.03) -- 14.53 13.70
2005 (.94) (.11) (1.05) -- 15.61 15.25
2004 (.96) (.20) (1.16) -- 14.69 14.19
2003 (.93) (.07) (1.00) -- 15.65 15.94
New Jersey Premium Income (NNJ)
- -------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (.66) (.04) (.70) -- 14.64 13.48
2007(b) (.58) (.01) (.59) -- 15.23 15.12
Year Ended 6/30:
2006 (.79) (.31) (1.10) -- 14.79 14.16
2005 (.92) (.22) (1.14) -- 16.05 15.76
2004 (.94) (.13) (1.07) -- 15.35 14.19
2003 (.92) -- (.92) -- 16.28 16.10
=======================================================================================================
Total Returns
-------------------------
Based
on
Based Common
on Share Net
Market Asset
Value*** Value***
- -------------------------------------------------------------------------------------
New Jersey Investment Quality (NQJ)
- -------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (3.64)% (.08)%
2007(b) 8.75 7.05
Year Ended 6/30:
2006 (3.62) (.31)
2005 15.13 13.81
2004 (4.09) 1.26
2003 11.68 10.72
New Jersey Premium Income (NNJ)
- -------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (6.18) .77
2007(b) 11.10 7.03
Year Ended 6/30:
2006 (3.36) (1.04)
2005 19.43 12.31
2004 (5.65) .85
2003 10.18 10.48
=====================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement****
---------------------------------------- ----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey Investment Quality (NQJ)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 292,194 1.23% 1.23% 6.30% 1.21% 1.21% 6.31% 17%
2007(b) 306,402 1.20* 1.20* 6.04* 1.19* 1.19* 6.06* 7
Year Ended 6/30:
2006 297,539 1.21 1.21 6.05 1.19 1.19 6.08 17
2005 319,083 1.21 1.21 6.22 1.20 1.20 6.23 15
2004 299,671 1.21 1.21 6.64 1.21 1.21 6.64 19
2003 316,970 1.22 1.22 6.80 1.22 1.22 6.81 12
New Jersey Premium Income (NNJ)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 176,374 1.24 1.24 6.04 1.23 1.23 6.04 19
2007(b) 183,540 1.21* 1.21* 5.83* 1.20* 1.20* 5.84* 6
Year Ended 6/30:
2006 178,199 1.19 1.19 5.81 1.18 1.18 5.83 12
2005 193,182 1.18 1.18 5.91 1.17 1.17 5.92 21
2004 184,753 1.18 1.18 6.23 1.18 1.18 6.23 23
2003 195,568 1.20 1.20 6.48 1.20 1.20 6.48 13
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
- ---------------------------------------------------------------------------------------------------------
New Jersey Investment Quality (NQJ)
- ---------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 162,000 $ 25,000 $ 70,092 $ -- $ --
2007(b) 162,000 25,000 72,284 -- --
Year Ended 6/30:
2006 162,000 25,000 70,917 -- --
2005 162,000 25,000 74,241 -- --
2004 162,000 25,000 71,246 -- --
2003 162,000 25,000 73,915 -- --
New Jersey Premium Income (NNJ)
- ---------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 91,600 25,000 73,137 -- --
2007(b) 91,600 25,000 75,093 -- --
Year Ended 6/30:
2006 91,600 25,000 73,635 -- --
2005 91,600 25,000 77,724 -- --
2004 91,600 25,000 75,424 -- --
2003 91,600 25,000 78,376 -- --
=========================================================================================================
* Annualized.
** Distributions from Capital Gains to Preferred Shareholders rounds to less
than $.01 per share.
*** Total 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
**** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the ten months ended April 30, 2007.
See accompanying notes to financial statements.
----------------
100-101 spread
----------------
| Financial
| HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
- -----------------------------------------------------------------------------------------------------------------------
New Jersey Dividend Advantage (NXJ)
- -----------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 15.09 $ .94 $ (.80) $ (.25) $ (.01) $ (.12)
2007(b) 14.68 .78 .47 (.19) --** 1.06
Year Ended 6/30:
2006 15.63 .95 (.77) (.18) (.01) (.01)
2005 14.59 .98 1.09 (.10) -- 1.97
2004 15.35 1.00 (.77) (.05) -- .18
2003 14.38 1.04 .86 (.07) -- 1.83
New Jersey Dividend Advantage 2 (NUJ)
- -----------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 15.31 .97 (.79) (.23) (.05) (.10)
2007(b) 14.87 .83 .47 (.20) --** 1.10
Year Ended 6/30:
2006 15.79 .99 (.76) (.19) (.01) .03
2005 14.62 1.00 1.25 (.11) -- 2.14
2004 15.44 1.03 (.82) (.06) -- .15
2003 14.46 1.05 .96 (.08) -- 1.93
=======================================================================================================================
Less Distributions
------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
- ------------------------------------------------------------------------------------------------------------
New Jersey Dividend Advantage (NXJ)
- ------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ (.68) $ (.03) $ (.71) $ -- $ 14.26 $ 13.11
2007(b) (.64) (.01) (.65) -- 15.09 15.75
Year Ended 6/30:
2006 (.84) (.10) (.94) -- 14.68 14.35
2005 (.93) -- (.93) -- 15.63 15.38
2004 (.94) -- (.94) -- 14.59 13.63
2003 (.87) -- (.87) .01 15.35 15.30
New Jersey Dividend Advantage 2 (NUJ)
- ------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (.71) (.15) (.86) -- 14.35 13.59
2007(b) (.66) --** (.66) -- 15.31 16.50
Year Ended 6/30:
2006 (.86) (.09) (.95) -- 14.87 14.90
2005 (.92) (.05) (.97) -- 15.79 15.90
2004 (.92) (.05) (.97) -- 14.62 13.74
2003 (.92) (.03) (.95) -- 15.44 15.40
============================================================================================================
Total Returns
-------------------------
Based
on
Based Common
on Share Net
Market Asset
Value*** Value***
- -------------------------------------------------------------------------------------
New Jersey Dividend Advantage (NXJ)
- -------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (12.31)% (.81)%
2007(b) 14.37 7.26
Year Ended 6/30:
2006 (.78) (.05)
2005 19.97 13.80
2004 (5.13) 1.20
2003 15.09 13.18
New Jersey Dividend Advantage 2 (NUJ)
- -------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (12.41) (.60)
2007(b) 15.40 7.50
Year Ended 6/30:
2006 (.49) .25
2005 23.39 15.00
2004 (4.81) 1.02
2003 9.14 13.74
=====================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement****
---------------------------------------- ----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey Dividend Advantage (NXJ)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 93,762 1.20% 1.20% 6.10% .89% .89% 6.41% 17%
2007(b) 99,203 1.20* 1.20* 5.85* .83* .83* 6.23* 9
Year Ended 6/30:
2006 96,378 1.19 1.19 5.83 .75 .75 6.28 16
2005 102,502 1.19 1.19 5.94 .74 .74 6.39 17
2004 95,651 1.20 1.20 6.26 .74 .74 6.71 11
2003 100,502 1.19 1.19 6.56 .74 .74 7.01 8
New Jersey Dividend Advantage 2 (NUJ)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 64,904 1.25 1.25 6.16 .85 .85 6.56 16
2007(b) 69,238 1.24* 1.24* 6.03* .78* .78* 6.49* 11
Year Ended 6/30:
2006 67,150 1.23 1.23 5.99 .76 .76 6.47 13
2005 71,231 1.23 1.23 6.09 .77 .77 6.54 11
2004 65,919 1.25 1.25 6.41 .79 .79 6.87 11
2003 69,616 1.23 1.23 6.53 .76 .76 7.00 12
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
- ----------------------------------------------------------------------------------------------------------
New Jersey Dividend Advantage (NXJ)
- ----------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 48,000 $ 25,000 $ 73,834 $ -- $ --
2007(b) 48,000 25,000 76,668 -- --
Year Ended 6/30:
2006 48,000 25,000 75,197 -- --
2005 48,000 25,000 78,386 -- --
2004 48,000 25,000 74,818 -- --
2003 48,000 25,000 77,345 -- --
New Jersey Dividend Advantage 2 (NUJ)
- ----------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 34,500 25,000 72,032 -- --
2007(b) 34,500 25,000 75,172 -- --
Year Ended 6/30:
2006 34,500 25,000 73,659 -- --
2005 34,500 25,000 76,617 -- --
2004 34,500 25,000 72,767 -- --
2003 34,500 25,000 75,446 -- --
==========================================================================================================
* Annualized.
** Distributions from Capital Gains to Preferred Shareholders and
Distributions from Capital Gains to Common Shareholders rounds to less
than $.01 per share.
*** Total 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
**** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the ten months ended April 30, 2007.
See accompanying notes to financial statements.
----------------
102-103 spread
----------------
| Financial
| HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
- ----------------------------------------------------------------------------------------------------------------------
Pennsylvania Investment Quality (NQP)
- ----------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 15.19 $ .95 $ (.80) $ (.29) $ -- $ (.14)
2007(b) 14.71 .77 .47 (.23) -- 1.01
Year Ended 6/30:
2006 15.73 .90 (.87) (.21) (.02) (.20)
2005 14.92 .92 1.05 (.12) (.01) 1.84
2004 15.91 .98 (.98) (.06) -- (.06)
2003 14.70 1.02 1.19 (.09) -- 2.12
Pennsylvania Premium Income 2 (NPY)
- ----------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 14.70 .90 (.93) (.26) (.02) (.31)
2007(b) 14.22 .74 .50 (.21) -- 1.03
Year Ended 6/30:
2006 15.32 .89 (.80) (.18) (.03) (.12)
2005 14.74 .92 .88 (.10) (.01) 1.69
2004 15.65 .98 (.77) (.05) (.01) .15
2003 14.83 1.04 .79 (.08) -- 1.75
======================================================================================================================
Less Distributions
-------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
- -------------------------------------------------------------------------------------------------------------
Pennsylvania Investment Quality (NQP)
- -------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ (.66) $ -- $ (.66) $ -- $ 14.39 $ 13.10
2007(b) (.53) -- (.53) -- 15.19 14.01
Year Ended 6/30:
2006 (.71) (.11) (.82) -- 14.71 12.95
2005 (.89) (.14) (1.03) -- 15.73 15.16
2004 (.92) (.01) (.93) -- 14.92 13.58
2003 (.91) -- (.91) -- 15.91 16.01
Pennsylvania Premium Income 2 (NPY)
- -------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (.61) (.04) (.65) -- 13.74 12.30
2007(b) (.55) -- (.55) -- 14.70 13.67
Year Ended 6/30:
2006 (.77) (.21) (.98) -- 14.22 12.96
2005 (.93) (.18) (1.11) -- 15.32 15.16
2004 (.95) (.11) (1.06) -- 14.74 13.84
2003 (.93) -- (.93) -- 15.65 16.00
=============================================================================================================
Total Returns
----------------------
Based
on
Based Common
on Share Net
Market Asset
Value** Value**
- ---------------------------------------------------------------------------------------------
Pennsylvania Investment Quality (NQP)
- ---------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (1.78)% (.92)%
2007(b) 12.41 6.89
Year Ended 6/30:
2006 (9.47) (1.34)
2005 19.53 12.67
2004 (9.73) (.38)
2003 11.98 14.79
Pennsylvania Premium Income 2 (NPY)
- ---------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (5.26) (2.06)
2007(b) 9.83 7.31
Year Ended 6/30:
2006 (8.42) (.80)****
2005 17.79 11.80
2004 (7.22) .94
2003 15.09 12.09
=============================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------------------ ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Investment Quality (NQP)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 232,528 1.65% 1.27% 6.48% 1.64% 1.26% 6.49% 20%
2007(b) 247,644 1.54* 1.25* 6.06* 1.53* 1.23* 6.07* 16
Year Ended 6/30:
2006 239,718 1.23 1.23 5.87 1.21 1.21 5.89 20
2005 256,365 1.23 1.23 5.96 1.22 1.22 5.97 18
2004 243,287 1.23 1.23 6.38 1.22 1.22 6.39 17
2003 258,924 1.27 1.27 6.59 1.26 1.26 6.60 11
Pennsylvania Premium Income 2 (NPY)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 215,252 1.55 1.28 6.36 1.53 1.27 6.37 27
2007(b) 232,650 1.40* 1.21* 6.08* 1.39* 1.20* 6.09* 15
Year Ended 6/30:
2006 225,121 1.20 1.20 6.01 1.18 1.18 6.03 18
2005 242,373 1.19 1.19 6.09 1.19 1.19 6.10 22
2004 232,455 1.18 1.18 6.45 1.17 1.17 6.46 16
2003 246,604 1.20 1.20 6.76 1.19 1.19 6.77 19
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
- ----------------------------------------------------------------------------------------------------------
Pennsylvania Investment Quality (NQP)
- ----------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 132,000 $ 25,000 $ 69,039 $ 21,670 $ 17,822
2007(b) 132,000 25,000 71,902 28,715 14,221
Year Ended 6/30:
2006 132,000 25,000 70,401 -- --
2005 132,000 25,000 73,554 -- --
2004 132,000 25,000 71,077 -- --
2003 132,000 25,000 74,039 -- --
Pennsylvania Premium Income 2 (NPY)
- ----------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 118,100 25,000 70,566 7,065 48,184
2007(b) 118,100 25,000 74,249 22,585 16,530
Year Ended 6/30:
2006 118,100 25,000 72,655 -- --
2005 118,100 25,000 76,307 -- --
2004 118,100 25,000 74,207 -- --
2003 118,100 25,000 77,202 -- --
==========================================================================================================
* Annualized.
** Total 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
**** During the fiscal year ended June 30, 2006, Pennsylvania Premium Income 2
(NPY) received a payment from the Adviser of $27,169, to offset losses
realized on the disposal of investments purchased in violation of the
Fund's investment restrictions. This reimbursement did not have an impact
on the Fund's Total Return on Common Share Net Asset Value.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the ten months ended April 30, 2007.
See accompanying notes to financial statements.
----------------
104-105 spread
----------------
| Financial
| HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
- -------------------------------------------------------------------------------------------------------------------------
Pennsylvania Dividend Advantage (NXM)
- -------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 15.36 $ .97 $ (.84) $ (.25) $ (.02) $ (.14)
2007(b) 14.95 .82 .46 (.21) -- 1.07
Year Ended 6/30:
2006 15.93 .98 (.78) (.19) (.01) --
2005 15.32 .99 1.06 (.10) (.02) 1.93
2004 16.25 1.04 (.78) (.05) (.01) .20
2003 14.96 1.08 1.29 (.07) (.01) 2.29
Pennsylvania Dividend Advantage 2 (NVY)
- -------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 15.34 .99 (.80) (.26) (.02) (.09)
2007(b) 14.93 .83 .44 (.21) (.01) 1.05
Year Ended 6/30:
2006 15.89 .98 (.85) (.19) (.01) (.07)
2005 14.87 .97 1.08 (.11) -- 1.94
2004 15.90 .98 (.87) (.05) (.01) .05
2003 14.64 1.00 1.30 (.09) -- 2.21
=========================================================================================================================
Less Distributions
-------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
- ----------------------------------------------------------------------------------------------------------------
Pennsylvania Dividend Advantage (NXM)
- ----------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ (.70) $ (.05) $ (.75) $ -- $ 14.47 $ 13.61
2007(b) (.66) -- (.66) -- 15.36 15.70
Year Ended 6/30:
2006 (.88) (.10) (.98) -- 14.95 15.10
2005 (.96) (.36) (1.32) -- 15.93 16.14
2004 (.96) (.17) (1.13) -- 15.32 14.39
2003 (.92) (.10) (1.02) .02 16.25 16.46
Pennsylvania Dividend Advantage 2 (NVY)
- ----------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (.71) (.05) (.76) -- 14.49 13.40
2007(b) (.62) (.02) (.64) -- 15.34 15.18
Year Ended 6/30:
2006 (.79) (.10) (.89) -- 14.93 14.16
2005 (.88) (.04) (.92) -- 15.89 14.90
2004 (.92) (.16) (1.08) -- 14.87 13.48
2003 (.92) (.03) (.95) -- 15.90 15.84
================================================================================================================
Total Returns
-----------------------
Based
on
Based Common
on Share Net
Market Asset
Value** Value**
- --------------------------------------------------------------------------------------------------
Pennsylvania Dividend Advantage (NXM)
- --------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (8.46)% (.87)%
2007(b) 8.40 7.22
Year Ended 6/30:
2006 (.56) (.01)
2005 21.84 13.02
2004 (5.95) 1.30
2003 18.13 15.95
Pennsylvania Dividend Advantage 2 (NVY)
- --------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 (6.81) (.60)
2007(b) 11.88 7.14
Year Ended 6/30:
2006 .88 (.46)
2005 17.63 13.37
2004 (8.58) .29
2003 14.38 15.48
==================================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------------------- ----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
- -----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Dividend Advantage (NXM)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 48,211 1.39% 1.28% 6.26% 1.07% .96% 6.57% 20%
2007(b) 51,160 1.33* 1.27* 5.99* .95* .89* 6.37* 11
Year Ended 6/30:
2006 49,660 1.25 1.25 5.90 .80 .80 6.35 12
2005 52,712 1.23 1.23 5.82 .78 .78 6.28 13
2004 50,549 1.21 1.21 6.15 .76 .76 6.60 10
2003 53,591 1.23 1.23 6.44 .79 .79 6.88 13
Pennsylvania Dividend Advantage 2 (NVY)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 53,997 1.40 1.29 6.29 1.01 .90 6.67 27
2007(b) 57,142 1.33* 1.27* 6.03* .88* .82* 6.48* 13
Year Ended 6/30:
2006 55,597 1.24 1.24 5.93 .77 .77 6.40 13
2005 59,174 1.23 1.23 5.80 .78 .78 6.25 8
2004 55,370 1.24 1.24 5.95 .78 .78 6.40 4
2003 59,202 1.25 1.25 6.07 .78 .78 6.53 13
===================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
- -------------------------------------------------------------------------------------------------------------
Pennsylvania Dividend Advantage (NXM)
- -------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 $ 25,000 $ 25,000 $ 73,211 $ -- $ --
2007(b) 25,000 25,000 76,160 1,305 59,360
Year Ended 6/30:
2006 25,000 25,000 74,660 -- --
2005 25,000 25,000 77,712 -- --
2004 25,000 25,000 75,549 -- --
2003 25,000 25,000 78,591 -- --
Pennsylvania Dividend Advantage 2 (NVY)
- -------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008 28,500 25,000 72,366 -- --
2007(b) 28,500 25,000 75,124 1,460 59,659
Year Ended 6/30:
2006 28,500 25,000 73,769 -- --
2005 28,500 25,000 76,907 -- --
2004 28,500 25,000 73,570 -- --
2003 28,500 25,000 76,932 -- --
=============================================================================================================
* Annualized.
** Total 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the ten months ended April 30, 2007.
See accompanying notes to financial statements.
----------------
106-107 spread
----------------
Board Members & 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 eight. 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 Principal
Year First of Portfolios Occupation(s)
Name, | Elected or in Fund Complex Including other
Birthdate | Position(s) Held Appointed Overseen by Directorships
& Address | with the Funds and Term(2) Board Member During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------------------
Board member who is an interested person of the Funds:
o TIMOTHY R. SCHWERTFEGER(1) Former director (1994-November 12, 2007), Chairman
3/28/49 | Chairman of 1994 (1996-June 30, 2007), Non-Executive Chairman (July 1,
333 W. Wacker Drive | the Board Annual 185 2007-November 12, 2007) and Chief Executive Officer
Chicago, IL 60606 | and Board Member (1996-June 30, 2007) of Nuveen Investments, Inc.,
Nuveen Asset Management and certain other subsidiaries
of Nuveen Investments, Inc.; formerly, Director
(1992-2006) of Institutional Capital Corporation.
Board members who are not interested persons of the Funds:
o ROBERT P. BREMNER Private Investor and Management Consultant.
8/22/40 | Lead 1997
333 W. Wacker Drive | Independent Class III 185
Chicago, IL 60606 | Board member
o JACK B. EVANS President, The Hall-Perrine Foundation, a private
10/22/48 | 1999 philanthropic corporation (since 1996); Director and
333 W. Wacker Drive | Board member Class III 185 Vice Chairman, United Fire Group, a publicly held
Chicago, IL 60606 | company; Member of the Board of Regents for the State
of Iowa University System; Director, Gazette Companies;
Life Trustee of Coe College and Iowa College
Foundation; Member of the Advisory Council of the
Department of Finance in the Tippie College of
Business, University of Iowa; 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.
o WILLIAM C. HUNTER Dean, Tippie College of Business, University of Iowa
3/6/48 | 2004 (since July 2006); formerly, Dean and Distinguished
333 W. Wacker Drive | Board member Class II 185 Professor of Finance, School of Business at the
Chicago, IL 60606 | University of Connecticut (2003-2006); previously,
Senior Vice President and Director of Research at the
Federal Reserve Bank of Chicago (1995-2003); Director
(since 1997), Credit Research Center at Georgetown
University; Director (since 2004) of Xerox Corporation;
Director (since 2005), Beta Gamma Sigma International
Honor Society; Director, SS&C Technologies, Inc. (May
2005-October 2005).
- ------
108
- ------
- ------------------------------------------------------------------------------------------------------------------------------------
Number Principal
Year First of Portfolios Occupation(s)
Name, | Elected or in Fund Complex Including other
Birthdate | Position(s) Held Appointed Overseen by Directorships
& Address | with the Funds and Term(2) Board Member During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------------------
Board members who are not interested persons of the Funds:
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth Management
10/28/42 | 2005 Company; Retired (since 2004) as Chairman, JPMorgan
333 W. Wacker Drive | Board member Class II 183 Fleming Asset Management, President and CEO, Banc One
Chicago, IL 60606 | Investment Advisors Corporation, and President, One
Group Mutual Funds; prior thereto, Executive Vice
President, Banc One Corporation and Chairman and CEO,
Banc One Investment Management Group; Member, Board of
Regents, Luther College; member of the Wisconsin Bar
Association; member of Board of Directors, Friends of
Boerner Botanical Gardens; member of Investment
Committee, Greater Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman, formerly, Senior Partner and Chief Operating
9/24/44 | 1997 Officer (retired, 2004) of Miller-Valentine Partners
333 W. Wacker Drive | Board member Annual 185 Ltd., a real estate investment company; Director,
Chicago, IL 60606 | Dayton Development Coalition; formerly, member,
Business Advisory Council, Cleveland Federal Reserve
Bank.
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy Donnelley
12/29/47 | 1997 Foundation (since 1994); prior thereto, Executive
333 W. Wacker Drive | Board member Class I 185 Director, Great Lakes Protection Fund (from 1990 to
Chicago, IL 60606 | 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange (since 2006);
6/28/47 | 2007 Chair New York Racing Association Oversight Board
333 West Wacker Drive | Board member Class I 185 (since 2005); Commissioner, New York State Commission
Chicago, IL 60606 | on Public Authority Reform (since 2005); formerly
Director, New York State Division of the Budget
(2000-2004), Chair, Public Authorities Control Board
(2000-2004) and Director, Local Government Assistance
Corporation (2000-2004).
Officers of the Fund:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant Secretary and
9/9/56 | Chief Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive | Administrative 1988 185 Assistant General Counsel, of Nuveen Investments, LLC;
Chicago, IL 60606 | Officer Managing Director (since 2002), Associate General
Counsel and Assistant Secretary, of Nuveen Asset
Management; Vice President and Assistant Secretary of
NWQ Investment Management Company, LLC. (since 2002),
Nuveen Investments Advisers Inc. (since 2002), Symphony
Asset Management LLC, and NWQ Investment Management
Company, LLC (since 2003), Tradewinds Global Investors,
LLC, and Santa Barbara Asset Management, LLC (since
2006); Nuveen HydePark Group LLC and Richards &
Tierney, Inc. (since 2007); Managing Director,
Associate General Counsel and Assistant Secretary of
Rittenhouse Asset Management, Inc. (since 2003);
Managing Director (since 2004) and Assistant Secretary
(since 1994) of Nuveen Investments, Inc.; formerly,
Managing Director (2002-2004), General Counsel
(1998-2004) and Assistant Secretary of Nuveen Advisory
Corp. and Nuveen Institutional Advisory Corp.(3);
Chartered Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President, U.S. Structured Products of
6/9/55 | Nuveen Investments, LLC, (since 1999), prior thereto,
333 West Wacker Drive | Vice President 2007 120 Managing Director of Structured Investments.
Chicago, IL 60606 |
------
109
------
- ------------------------------------------------------------------------------------------------------------------------------------
Number
of Portfolios
Name, | Year First in Fund Complex Principal
Birthdate | Position(s) Held Elected or Overseen Occupation(s)
and Address | with the Funds Appointed(4) by Officer During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------------------
Officers of the Fund:
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004) previously, Vice
1/11/62 | President (1993-2004) of Nuveen Investments, LLC.
333 W. Wacker Drive | Vice President 2007 120
Chicago, IL 60606 |
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen Investments, LLC.
2/3/66 | Vice President
333 W. Wacker Drive | and Assistant 2000 185
Chicago, IL 60606 | Secretary
o LORNA C. FERGUSON Managing Director (since 2004), formerly, Vice
10/24/45 | President of Nuveen Investments, LLC, Managing Director
333 W. Wacker Drive | Vice President 1998 185 (2004) formerly, Vice President (1998-2004) of Nuveen
Chicago, IL 60606 | Advisory Corp. and Nuveen Institutional Advisory
Corp.(3); Managing Director (since 2005) of Nuveen
Asset Management.
o STEPHEN D. FOY Vice President (since 1993) and Funds Controller (since
5/31/54 | Vice President 1998) of Nuveen Investments, LLC; formerly, Vice
333 W. Wacker Drive | and Controller 1998 185 President and Funds Controller (1998-2004) of Nuveen
Chicago, IL 60606 | Investments, Inc.; Certified Public Accountant.
o WALTER M. KELLY Senior Vice President (since 2008), Vice President
2/24/70 | Chief Compliance (2006-2008) formerly, Assistant Vice President and
333 West Wacker Drive | Officer and Vice 2003 185 Assistant General Counsel (2003-2006) of Nuveen
Chicago, IL 60606 | President Investments, LLC; Vice President (since 2006) and
Assistant Secretary (since 2008) of Nuveen Asset
Management.
o DAVID J. LAMB Vice President (since 2000) of Nuveen Investments, LLC;
3/22/63 | Certified Public Accountant.
333 W. Wacker Drive | Vice President 2000 185
Chicago, IL 60606 |
o TINA M. LAZAR Vice President of Nuveen Investments, LLC (since 1999).
8/27/61 |
333 W. Wacker Drive | Vice President 2002 185
Chicago, IL 60606 |
o LARRY W. MARTIN Vice President, Assistant Secretary and Assistant
7/27/51 | Vice President General Counsel of Nuveen Investments, LLC; Vice
333 W. Wacker Drive | and Assistant 1988 185 President (since 2005) and Assistant Secretary of
Chicago, IL 60606 | Secretary 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); NWQ Investment Management Company, LLC
(since 2002), Symphony Asset Management LLC (since
2003), Tradewinds Global Investors, LLC, Santa Barbara
Asset Management LLC (since 2006) and of Nuveen
HydePark Group, LLC and Richards & Tierney, Inc. (since
2007); formerly, Vice President and Assistant Secretary
of Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.(3)
- ------
110
- ------
- ------------------------------------------------------------------------------------------------------------------------------------
Number
of Portfolios
Name, | Year First in Fund Complex Principal
Birthdate | Position(s) Held Elected or Overseen Occupation(s)
and Address | with the Funds Appointed(4) by Officer During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------------------
Officers of the Fund:
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice
3/26/66 | Vice President President (2007-2008), Nuveen Investments, LLC; Vice
333 W. Wacker Drive | and Secretary 2007 185 President, and Assistant Secretary, Nuveen Asset
Chicago, IL 60606 | Management, Rittenhouse Asset Management, Inc., Nuveen
Investment Advisers Inc., Nuveen Investment
Institutional Services Group LLC, NWQ Investment
Management Company, LLC, Tradewinds Global Investors
LLC, NWQ Holdings, LLC, Symphony Asset Management LLC,
Santa Barbara Asset Management LLC, Nuveen HydePark
Group, LLC and Richards & Tierney, Inc. (since 2007);
Managing Director (since 2008), formerly, Vice
President (2007-2008) and Assistant General Counsel,
Nuveen Investments, Inc. prior thereto, Partner, Bell,
Boyd & Lloyd LLP (1997-2007).
o JOHN V. MILLER Managing Director (since 2007), formerly, Vice
4/10/67 | Vice President President (2002-2007) of Nuveen Investments, LLC;
333 W. Wacker Drive | and Assistant 2007 185 Chartered Financial Analyst.
Chicago, IL 60606 |
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since 2008);
8/1/71 | Vice President Vice President and Assistant Secretary, Nuveen Asset
333 W. Wacker Drive | and Assistant 2008 185 Management (since 2008); Vice President and Assistant
Chicago, IL 60606 | Secretary General Counsel, Nuveen Investment, Inc. (since 2008);
prior thereto, Associate, Skadden, Arps, Slate Meagher
& Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments since 2007; prior
7/3/62 | Vice President thereto, Partner, Deloitte & Touche USA LLP (since
333 W. Wacker Drive | and Assistant 2007 185 2005), formerly, senior tax manager (since 2002);
Chicago, IL 60606 | Secretary Certified Public Accountant.
o MARK L. WINGET Vice President, Nuveen Investments, LLC (since 2008);
12/21/68 | Vice President Vice President and Assistant Secretary, Nuveen Asset
333 W. Wacker Drive | and Assistant 2008 185 Management (since 2008); Vice President and Assistant
Chicago, IL 60606 | Secretary General Counsel, Nuveen Investments Inc. (since 2008);
prior thereto, Counsel, Vedder Price P.C. (1997-2007).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, by reason of being the former Chairman and
Chief Executive Officer of Nuveen Investments, Inc. and having previously
served in various other capacities with Nuveen Investments, Inc. and its
subsidiaries. It is expected that Mr. Schwertfeger will resign from the
Board of Trustees by the end of the second quarter of 2008.
(2) Board Members serve three year terms, except for two board members who are
elected by the holders of Preferred Shares. The Board of Trustees is
divided into three classes, Class I, Class II, and Class III, with each
being elected to serve until the third succeeding annual shareholders'
meeting subsequent to its election or thereafter in each case when its
respective successors are duly elected or appointed, except two board
members are elected by the holders of Preferred Shares to serve until the
next annual shareholders' meeting subsequent to its election or thereafter
in each case when its respective successors are duly elected or appointed.
The first year 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.
------
111
------
Reinvest Automatically
EASILY and CONVENIENTLY
- --------------------------------------------------------------------------------
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
Nuveen Closed-End Funds Dividend Reinvestment Plan
Your Nuveen 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 greater of the net asset value or 95% of 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. If the Plan Agent
begins purchasing Fund shares on the open market while shares are trading
below net asset value, but the Fund's shares subsequently trade at or
above their net asset value before the Plan Agent is able to complete its
purchases, the Plan Agent may cease open-market purchases and may invest
the uninvested portion of the distribution in newly-issued Fund shares at
a price equal to the greater of the shares' net asset value or 95% of the
shares' market value on the last business day immediately prior to the
purchase date. 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.
- ------
112
- ------
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.
------
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------
Glossary of
TERMS USED in this REPORT
--------------------------------------------------------------------------
o Auction Rate Bond: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o 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.
o Average Effective Maturity: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (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 unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o Inverse Floaters: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o 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.
o Market Yield (also known as Dividend Yield or Current Yield): An
investment's current annualized dividend divided by its current market
price.
o Net Asset Value (NAV): A Fund's common share NAV per share is calculated
by subtracting the liabilities of the Fund (including any Preferred 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.
o 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.
o Zero Coupon Bond: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
- ------
114
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| Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2007, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549.
CEO Certification Disclosure
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) 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.
Board of Directors/Trustees
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J.Schneider
Timothy R.Schwertfeger
Judith M. Stockdale
Carole E. Stone
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust Company
Boston, MA
Transfer Agent and Shareholder Services
State Street Bank & Trust Company
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. During the
period covered by this report, NQP and NPY repurchased 139,900 and 156,100
common shares, respectively. Any future repurchases will be reported to
shareholders in the next annual or semi-annual report.
------
115
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Nuveen Investments:
- --------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Managing $153 billion in assets, as of March 31, 2008, 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 six
distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; Symphony,
a leading institutional manager of market-neutral alternative investment
portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader
in global equities.
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.
Learn more about Nuveen Funds at: www.nuveen.com/etf
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EAN-B-0408D
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 Shareholder 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, 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 New Jersey Dividend Advantage Municipal Fund 2
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 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 (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
- -----------------------------------------------------------------------------------------------------------------------------
April 30, 2008 $ 10,274 $ 0 $ 500 $ 800
- -----------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
- -----------------------------------------------------------------------------------------------------------------------------
April 30, 2007 (5) $ 9,081 $ 0 $ 0 $ 1,500
- -----------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
- -----------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
(5) Fund changed fiscal year from June to April starting in 2007.
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
- ------------------------------------------------------------------------------------------------------------
April 30, 2008 $ 0 $ 0 $ 0
- ------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------
April 30, 2007 (1) $ 0 $ 0 $ 0
- ------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------
(1) Fund changed fiscal year from June to April starting in 2007.
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. 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
- ---------------------------------------------------------------------------------------------------------------------------
April 30, 2008 $ 1,300 $ 0 $ 0 $ 1,300
April 30, 2007 (1) $ 1,500 $ 0 $ 0 $ 1,500
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
(1) Fund changed fiscal year from June to April starting in 2007.
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)). As of
April 30, 2008, the members of the audit committee are Robert P. Bremner, Jack
B. Evans, William J. Schneider and David J. Kundert.
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.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
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 registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Cathryn P. Steeves Nuveen New Jersey Dividend Advantage Municipal Fund 2
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS*
- --------------------------------------------------------------------------------
Cathryn P. Steeves Registered Investment Company 41 $8.216 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of April 30, 2008. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing manager's performance
against a specified investment benchmark. This fund-specific benchmark is a
customized subset (limited to bonds in each Fund's specific state and with
certain maturity parameters) of the S&P/Investortools Municipal Bond index, an
index comprised of bonds held by managed municipal bond fund customers of
Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund
holdings aggregate at least $2 million. As of May 31, 2008, the
S&P/Investortools Municipal Bond index was comprised of 52,259 securities with
an aggregate current market value of $1,047 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors lead by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of the April 30, 2008, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
DOLLAR EQUITY SECURITIES
RANGE OF BENEFICIALLY OWNED
EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS
BENEFICIALLY MANAGED BY NAM'S
NAME OF PORTFOLIO OWNED IN MUNICIPAL
MANAGER FUND FUND INVESTMENT TEAM
- --------------------------------------------------------------------------------------------------------------------
Cathryn P. Steeves Nuveen New Jersey Dividend Advantage Municipal Fund 2 $0 $10,000-$50,000
PORTFOLIO MANAGER BIO:
Cathryn P. Steeves, PhD is currently a portfolio manager for 42 state-specific
municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst
in the healthcare sector. Ms. Steeves has an undergraduate degree from Wake
Forest University as well as an MA, an MPhil and a PhD from Columbia University.
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 registrants 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 New Jersey Dividend Advantage Municipal Fund 2
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: July 9, 2008
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2008
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2008
-------------------------------------------------------------------