logo: NUVEEN Investments
Semiannual Report January 31, 2002
Municipal Closed End
Exchange-Traded Funds
Funds
Dependable, tax-free income to help
you keep more of what you earn.
ARIZONA
NAZ
NFZ
MICHIGAN
NUM
NMP
NZW
OHIO
NUO
NXI
NBJ
TEXAS
NTX
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Dear
Shareholder
photo: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
sidebar: "I also urge you to consider receiving future Fund reports and other
information electronically ...see the inside front cover of this report for
details."
In the aftermath of September 11, the financial markets have reacted with
volatility and uncertainty as investors attempt to better understand how the
U.S. and world economies are likely to perform in the months ahead. It's too
soon to tell what the long-term impact will be on the markets or your Fund, but
one thing that is increasingly clear to us is that a diversified portfolio that
includes high quality municipal bonds can leave you well positioned to reduce
overall investment volatility.
For example, during the period covered by this report, all of these Nuveen Funds
continued to meet their primary objectives of providing attractive monthly
income from a portfolio of high quality municipal bonds. Detailed information on
your Fund's performance can be found in the Portfolio Managers' Comments and
Performance Overview sections of this report. I urge you to take the time to
read them.
I also urge you to consider receiving future Fund reports and other information
electronically via the Internet and e-mail rather than in hard copy. Not only
will you be able to receive the information faster, but this may also help lower
Fund expenses. Sign up is quick and easy - see the inside front cover of this
report for detailed instructions.
In addition to providing you with steady tax-free income, your Nuveen Fund also
features several characteristics that can help make it an essential part of your
overall investment strategy.
1
These include careful research, constant surveillance and judicious trading by
Nuveen's seasoned portfolio management team, with every action designed to
supplement income, improve Fund structure, better adapt to current market
conditions or increase diversification. In turbulent times like these, prudent
investors understand the importance of diversification, balance, and risk
management, all attributes your Nuveen Fund can bring to your portfolio.
For more than 100 years, Nuveen has specialized in offering quality investments
such as these Nuveen Funds to those seeking to accumulate and preserve wealth
and establish a lasting legacy. Our mission continues to be to assist you and
your financial advisor by offering the investment services and products that can
help you invest well and leave your mark for future generations. We thank you
for continuing to choose Nuveen Investments as your partner as you work toward
that goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
March 15, 2002
2
Nuveen Arizona, Michigan, Ohio, and Texas Closed-End Exchange-Traded Funds
(NAZ, NFZ, NUM, NMP, NZW, NUO, NXI, NBJ, NTX)
Portfolio Manager's
Comments
Portfolio managers Mike Davern and Rick Huber review economic and market
conditions, key strategies, and recent Fund performance. With 17 years of
investment management experience, Mike has managed NAZ, NUM, NMP, and NTX since
1998. He added NFZ and NZW at their inceptions in January and September 2001,
respectively. Rick, who has 17 years of investment experience, assumed portfolio
management responsibility for NUO and NXI in March 2001, and added NBJ in
September 2001.
WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL
MARKET DURING THIS REPORTING PERIOD?
The two major forces at work during the twelve months ended January 31, 2002,
were the general slowdown in economic growth and the Federal Reserve's easing of
short-term interest rates. While these two factors had a great impact over the
entire period covered in this report, the events of September 11, 2001, and the
uncertain climate that followed also had a profound effect on the economy and
the markets.
In the fixed-income markets, the general environment of the past twelve months
helped many municipal securities perform well, while the Fed's easing created
favorable conditions for both new issuance and refundings. During 2001, national
new municipal supply reached its highest level - $286.3 billion - since 1993, an
increase of 43% over 2000. On the demand side, municipal bonds continued to be
highly sought after by individual investors looking for diversification,
tax-free income, quality, and an alternative to a volatile stock market.
MIKE, HOW WAS THE ECONOMIC AND MARKET ENVIRONMENT IN ARIZONA, MICHIGAN, AND
TEXAS?
All three of these states saw substantial increases in municipal issuance during
2001, with Arizona's $4.9 billion in new supply representing a 216% increase
over 2000 totals. Michigan issued $9.9 billion in municipal bonds during 2001,
for an increase of 87%, while Texas supply was up 67%, with $25.0 billion in new
bonds.
Over the past year, the Arizona economy was impacted by both the national
slowdown and the September 11th attacks. Major layoffs by some of Arizona's top
technology employers signaled weakness in that sector, while losses in the state
tourism industry in the aftermath of September 11 have been estimated at more
than $200 million. However, some observers think that the downturn in some
sectors of the state economy may be offset to a degree by the strong presence of
military services, which provide 50,000 jobs and nearly $6 billion for the
Arizona economy.
Michigan also saw unemployment rise over the past twelve months. In addition to
the weak automaking sector, other areas of manufacturing, including Michigan's
office furniture industry, have been forced to eliminate thousands of jobs in
recent months. A potential budget imbalance, declining tax revenues, and rising
costs have put pressure on Michigan's credit ratings. In December 2001, Moody's
revised its outlook for the state to negative, although both Moody's and
Standard & Poor's maintained their Aaa/AAA credit ratings.
Over the past ten years, the Texas economy has continued to diversify away from
a reliance on energy-related industries. Following September 11, this helped to
shelter the state somewhat from the effects of the weaker demand for oil,
especially jet fuel. During 2001, Texas trade was negatively impacted by the
slowdown in the U.S. manufacturing sector, which had a ripple effect in Mexico.
However, Texas remained the number-two state in exports, just behind California,
with approximately $95 billion in sales to foreign countries.
RICK, WHAT ABOUT OHIO?
Like Michigan, the Ohio economy remains heavily reliant on manufacturing, and
the state is facing many of the same problems, including rising unemployment,
weakness in auto production, and budgetary concerns. Ohio's auto industry
continued to decline, and the state's steelmakers struggled to compete with
global suppliers, with a number of bankruptcy filings in 2001. The state also
continues to face a final court determination in its decade-old public school
funding dispute, which could force it to further increase education spending. In
January 2002, these concerns caused Moody's to place Ohio on its negative
outlook list, although the state's general obligation debt retained its Aa1/AA+
credit ratings. Over the near term, Ohio's economy is projected to lag national
growth levels, compounded by labor shortages resulting from continued population
losses.
HOW DID THE NUVEEN FUNDS FOR THESE STATES PERFORM OVER THE PAST TWELVE MONTHS?
The total annual returns on net asset value (NAV) for the year ended January 31,
2002, for the five older Nuveen Closed-End Exchange-Traded Funds as well as for
NFZ, which just completed its first year of performance, are shown in the
accompanying table. The annual returns for the Lehman Brothers Municipal Bond
Index1 and relevant Lipper Peer Groups2 are also presented.
3
sidebar:
1 The Funds' performances are compared with that of the Lehman Brothers
Municipal Bond Index, a national unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not reflect
any expenses.
2 The total returns of NUM and NMP are compared with the average annualized
return of the six funds in the Lipper Michigan Municipal Debt Funds category,
while the total returns of the Arizona, Ohio, and Texas Funds are compared
with the average annualized return of the 25 funds in the Lipper Other States
Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of
dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 30% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: Arizona 33.5%, Michigan 33%, and Ohio 35%.
Because Texas has no state income tax, NTX's taxable-equivalent yield is based
on the federal income tax rate of 30%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a Fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
LEHMAN
MARKET TOTAL RETURN TOTAL LIPPER
YIELD ON NAV RETURN1 AVERAGE2
---------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
1/31/02 EQUIVALENT3 1/31/02 1/31/02 1/31/02
---------------------------------------------------------
NAZ 5.39% 8.11% 3.41% 5.90% 6.47%
---------------------------------------------------------
NFZ 5.47% 8.23% 5.85% 5.90% 6.47%
---------------------------------------------------------
NUM 5.76% 8.60% 6.78% 5.90% 7.58%
---------------------------------------------------------
NMP 5.82% 8.69% 8.01% 5.90% 7.58%
---------------------------------------------------------
NZW 5.78% 8.63% NA - -
---------------------------------------------------------
NUO 5.30% 8.15% 6.47% 5.90% 6.47%
---------------------------------------------------------
NXI 5.69% 8.75% NA - -
---------------------------------------------------------
NBJ 5.52% 8.49% NA - -
---------------------------------------------------------
NTX 6.19% 8.84% 6.71% 5.90% 6.47%
---------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Over the past twelve months, the Fed's interest rate easing, combined with
favorable market technicals, created a generally positive total return
environment for municipal bonds. While concerns about the potential strength of
an economic recovery sparked some increased volatility in the bond market during
the last two months of 2001, municipal bond performance made a strong comeback
in January 2002. Overall, the market environment of the past twelve months
favored funds with longer durations. As of January 31, 2002, the durations4 of
the five older Funds ranged from 8.24 for NAZ to 11.51 for NUM, compared with
7.66 for the unleveraged Lehman Brothers Municipal Bond Index. The durations of
the remaining four Funds, which were established in 2001, ranged from 12.05 to
18.98, which is typical of newer Funds. Over time, we plan to bring these
durations more closely in line with the other Nuveen Exchange-Traded Funds.
Since our last report in July 2001, in fact, the durations of NFZ and NXI have
both shortened. In addition to duration, the performance of these Nuveen Funds
over the past year was influenced by market activity, portfolio structure,
including call exposure, and individual holdings.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With the Fed's move to a policy of interest rate easing in January 2001, the
dividend-payment capabilities of these Funds benefited from the use of leverage,
a strategy that can potentially enhance the dividends paid to common
shareholders. This benefit is tied in part to the short-term rates these
leveraged Funds pay their MuniPreferred, shareholders. For example, declining
short-term rates can enable the Funds to reduce the amount of income they pay
preferred shareholders, which can leave more earnings to support common share
dividends.
During the year ended January 31, 2002, steady or falling short-term interest
rates enabled us to implement three dividend increases in NAZ and NTX, two
increases in NMP and NUO, and one increase in NUM. NFZ, NZW, NXI, and NBJ, all
of which were introduced during 2001, began paying regular monthly dividends on
schedule and are currently providing very attractive levels of tax-free income
to shareholders. In coming months, the lower rates currently offered by
municipal securities with shorter maturities may continue to benefit these Funds
by further reducing the amount paid to MuniPreferred shareholders. However, this
could be offset to some degree by the effect of bond calls on higher-yielding
securities, especially in the five older Funds. The level of short-term rates,
the number of bond calls, and the interest rates at which we can reinvest the
proceeds of any calls will all influence the dividends of these Nuveen Funds
over the next twelve months.
Over the past year, the continued volatility of the stock market and the strong
performance of the bond market prompted many investors to turn to tax-free
fixed-income investments as a way to add balance to their portfolios and reduce
overall risk. As a result, the share prices of the five older Funds improved
(see the charts on the individual Performance Overview pages). As investors
recognized the opportunity offered by these Funds, increased demand caused the
discount (share price below NAV) on NUM to move to a premium (share price above
NAV), while the premiums on NAZ and NUO widened and the discounts on NMP and NTX
narrowed over the past twelve months. The four Funds established in 2001 have
also benefited from strong demand since their introductions, and each Fund
finished January 2002 at a premium.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NUVEEN FUNDS DURING THE YEAR ENDED
JANUARY 31, 2002?
In investing new cash and bond call proceeds over the past twelve months, we
focused on finding attractive bonds with the potential to support the Funds'
long-term dividend-payment capabilities, enhance total return potential, and add
value and diversification. Among the sectors where we found value were those
regarded as providers of essential services, including healthcare, education,
and water and sewer bonds.
Looking specifically at the Arizona Funds, we were able to take advantage of
excellent supply in what is typically a lower issuance state to purchase several
attractive issues in the education sector. Arizona is one of the most
progressive states in the operation of charter schools, and we added $1.5
million in bonds issued for charter school projects in Maricopa County to NAZ
and $2.1 million in Maricopa County Horizon Community Charter School bonds to
NFZ. In addition to the attractive yield spreads offered by these bonds, we
believe Arizona's leadership and experience in this area make these credits an
excellent ongoing investment.
In Michigan, where municipal supply was also strong, our strategy was to look
for bonds in areas of scarcity, such as the water and sewer sector, that would
further enhance the diversification of NUM and NMP. During the past six months,
4
we also focused on bonds issued by building authorities, tax increment
districts, and university revenue bonds, including those issued for Kettering
University in Flint and Wayne State University in Detroit.
The Ohio municipal market continued to be very competitive, with robust demand,
especially on the retail side, at times outpacing the strong supply. Our major
focus over the past year was on strategies that would enhance yield and
structure, as we added issues such as Parma Community Hospital Association,
Kettering Medical Center in Dayton, and the Ohio Water Development Authority for
the Bay Shore power project. We also took advantage of increased issuance to get
ahead of some of the bond calls in NUO, selling selected callable bonds and
reinvesting the proceeds in longer-term credits that would enhance the yield of
this Fund.
In Texas, we looked for opportunities to add yield in the essential services
area, making numerous purchases in the education sector, which offered ample
supply, strong credit quality, and attractive yields at good prices. The
healthcare sector also provided some attractive yield situations, and one of our
purchases in this sector was $1 million of BBB bonds issued by Tyler Health for
Mother Frances Hospital.
In September 2001, we introduced the Nuveen Michigan Dividend Advantage
Municipal Fund (NZW) and the Nuveen Ohio Dividend Advantage Municipal Fund 2
(NBJ). Both of these Funds are now fully invested and, in our opinion,
performing well for shareholders. As of January 31, 2002, both Funds had their
heaviest sector weightings in general and limited tax obligations and healthcare
bonds. The Funds paid their first dividends in December 2001, and their holdings
place them in an excellent position to pay attractive dividends on a monthly
basis going forward.
In view of recent world events, maintaining strong credit quality remained a
primary area of emphasis. All of these Funds continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from
64% in NFZ to 90% in NUO as of January 31, 2002. All of the Funds also had a
portion of their assets invested in BBB and non-rated bonds, which serve to
enhance the Funds' income streams. The allocations to these credit sectors
ranged from 3% in NZW to 22% in NXI.
In terms of bond calls, the four newer Funds--NFZ, NZW, NXI, and NBJ--offer
excellent levels of call protection in 2002 and 2003, with call exposure ranging
from none in NZW to 9% in NXI over the next 23 months. NUM, NUO, and NTX, all of
which were introduced in 1991, still face a slightly elevated level of potential
calls (18%-22% in 2002 and 2003) as they continue to work their way past their
ten-year anniversaries. Both NAZ and NMP, which mark the ten-year anniversary of
their inceptions in 2002, are headed into this period and could potentially see
as much as 31%-36% of their portfolios called over the next two years. The
number of actual calls experienced by the Funds will depend largely on market
interest rates over this time.
We believe the overall call exposure of these Funds is very manageable, and we
foresee no problems in working through the call risk. Our general approach has
been to watch for opportunities to sell callable holdings when we find
attractive replacement bonds in either the primary or secondary markets,
especially in areas of scarcity and among issues with structures that can
benefit the Funds' diversification and income flow. This approach enables us to
trade when we find interesting replacement opportunities rather than being
locked into market offerings on a specific date. Over the past twelve months,
increased levels of municipal supply have helped us to implement this strategy.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE FUNDS IN
PARTICULAR?
In general, our outlook for the fixed-income markets over the next twelve months
remains positive. While the long-term economic effects of September 11 are still
being determined, the U.S. economy appears headed for a recovery, but one
characterized by a slower pace of growth, with inflation and interest rates
remaining low over the near term. Nationally, new municipal issuance should
continue to be strong, and we expect issuance in Arizona, Michigan, Ohio, and
Texas to remain steady. At the same time, demand for tax-exempt municipal bonds
should continue to be robust, as investors look for ways to rebalance their
portfolios and reduce risk.
We are also continuing to watch the consequences of the federal government's
decision to discontinue the 30-year Treasury bond. This action removed one of
the pricing benchmarks for the municipal market, which could result in some
pricing uncertainty and create more opportunities to add value for shareholders.
Overall, we continue to carefully monitor the fixed-income markets, especially
those sectors that were directly impacted by the events of September 11 or that
experience any further deceleration. We believe the Nuveen Funds covered in this
report are currently well diversified and well positioned for the market
environment ahead, and we will continue to respond to events as appropriate.
5
NAZ
Nuveen Arizona Premium Income Municipal Fund, Inc.
Performance
Overview As of January 31, 2002
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 59%
AA 19%
A 5%
BBB 14%
NR 1%
Other 2%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $16.15
---------------------------------------------------
Net Asset Value $14.28
---------------------------------------------------
Market Yield 5.39%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.70%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.11%
---------------------------------------------------
Fund Net Assets ($000) $92,843
---------------------------------------------------
Average Effective Maturity (Years) 16.75
---------------------------------------------------
Leverage-Adjusted Duration 8.24
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 11/92)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 8.46% 3.41%
---------------------------------------------------
5-Year 8.44% 5.25%
---------------------------------------------------
Since Inception 6.47% 5.93%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
U.S. Guaranteed 23%
---------------------------------------------------
Healthcare 16%
---------------------------------------------------
Tax Obligation/Limited 16%
---------------------------------------------------
Tax Obligation/General 9%
---------------------------------------------------
Utilities 9%
---------------------------------------------------
Bar chart:
2001-2002 Monthly Tax-Free Dividends Per Share(2)
($)
Feb 0.068
Mar 0.0695
Apr 0.0695
May 0.0695
Jun 0.071
Jul 0.071
Aug 0.071
Sep 0.0725
Oct 0.0725
Nov 0.0725
Dec 0.0725
Jan 0.0725
Line chart:
Share Price Performance
Weekly Closing Price
($)
2/01/01 15.71
15.66
15.85
15.8
15.71
15.82
15.77
15.89
15.85
15.78
15.72
15.75
15.9
15.95
15.89
15.95
15.89
15.92
15.94
15.86
15.86
16.1
16.18
16.21
16.3
16.36
16.35
16.36
16.46
16.66
16.53
16.4
16.42
16.25
16.12
16.15
16.23
16.1
16.15
16.28
16.54
16.45
16.44
16.15
16.1
15.87
15.98
16
16.17
16.09
16.2
1/31/02 16.12
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33.5%.
2 The Fund also paid shareholders a capital gains distribution in December 2001
of $0.0416 per share.
6
NFZ
Nuveen Arizona Dividend Advantage Municipal Fund
Performance
Overview As of January 31, 2002
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 47%
AA 17%
A 15%
BBB 21%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.35
---------------------------------------------------
Net Asset Value $14.36
---------------------------------------------------
Market Yield 5.47%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.81%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.23%
---------------------------------------------------
Fund Net Assets ($000) $34,077
---------------------------------------------------
Average Effective Maturity (Years) 21.58
---------------------------------------------------
Leverage-Adjusted Duration 13.49
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 1/01)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 7.69% 5.85%
---------------------------------------------------
Since Inception 7.69% 5.85%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/Limited 17%
---------------------------------------------------
Utilities 17%
---------------------------------------------------
Housing/Multifamily 14%
---------------------------------------------------
Healthcare 13%
---------------------------------------------------
Tax Obligation/General 11%
---------------------------------------------------
Bar chart:
2001-2002 Monthly Tax-Free Dividends Per Share(2)
($)
Mar 0.07
Apr 0.07
May 0.07
Jun 0.07
Jul 0.07
Aug 0.07
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.07
Jan 0.07
Line chart:
Share Price Performance
Weekly Closing Price
($)
2/01/01 15
15.2
15.13
15.24
15
15.15
15
15.17
15.2
15.25
15.3
14.4
15.1
15.25
15.25
15.22
15.05
15.2
15.19
15.24
15.2
15.2
15.29
15.61
15.65
15.59
15.7
15.76
15.91
15.95
15.73
15.64
15.82
15.35
15.23
15.34
15.32
15.36
15.44
15.32
15.88
15.71
15.71
15.79
15.64
15.25
15.05
15.11
15.17
15.33
15.36
1/31/02 15.27
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33.5%.
2 The Fund also paid shareholders a capital gains distribution in December 2001
of $0.0138 per share.
7
NUM
Nuveen Michigan Quality Income Municipal Fund, Inc.
Performance
Overview As of January 31, 2002
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 78%
AA 4%
A 11%
BBB 6%
NR 1%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.52
---------------------------------------------------
Net Asset Value $15.14
---------------------------------------------------
Market Yield 5.76%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.23%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.60%
---------------------------------------------------
Fund Net Assets ($000) $269,049
---------------------------------------------------
Average Effective Maturity (Years) 19.40
---------------------------------------------------
Leverage-Adjusted Duration 11.51
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 10/91)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 9.58% 6.78%
---------------------------------------------------
5-Year 6.28% 6.17%
---------------------------------------------------
10-Year 6.87% 7.40%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/General 25%
---------------------------------------------------
Utilities 14%
---------------------------------------------------
Healthcare 12%
---------------------------------------------------
Water and Sewer 10%
---------------------------------------------------
Tax Obligation/Limited 9%
---------------------------------------------------
Bar chart:
2001-2002 Monthly Tax-Free Dividends Per Share(2)
($)
Feb 0.0735
Mar 0.0735
Apr 0.0735
May 0.0735
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.0735
Oct 0.0735
Nov 0.0735
Dec 0.0745
Jan 0.0745
Line chart:
Share Price Performance
Weekly Closing Price
2/01/01 ($)
15.1
15.09
15
14.85
14.92
15.02
15.03
15.08
15.1
15.15
15.32
15.29
15.42
15.54
15.5
15.34
15.26
15.26
15.32
15.39
15.55
15.53
15.67
15.69
15.64
15.44
15.38
15.43
15.5
15.45
15.6
15.45
15.47
14.61
14.82
15.2
15.04
15.1
15
15
15.33
15.22
15.11
15.3
15
14.9
14.95
15.14
15.35
15.45
15.47
1/31/02 15.5
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
2 The Fund also paid shareholders a capital gains distribution in December 2001
of $0.0748 per share.
8
NMP
Nuveen Michigan Premium Income Municipal Fund, Inc.
Performance
Overview As of January 31, 2002
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 66%
AA 14%
A 13%
BBB 7%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $14.65
---------------------------------------------------
Net Asset Value $15.30
---------------------------------------------------
Market Yield 5.82%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.31%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.69%
---------------------------------------------------
Fund Net Assets ($000) $173,760
---------------------------------------------------
Average Effective Maturity (Years) 18.18
---------------------------------------------------
Leverage-Adjusted Duration 8.88
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 12/92)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 10.06% 8.01%
---------------------------------------------------
5-Year 8.98% 6.99%
---------------------------------------------------
Since Inception 5.72% 6.66%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/Limited 20%
---------------------------------------------------
Healthcare 20%
---------------------------------------------------
Utilities 17%
---------------------------------------------------
Tax Obligation/General 12%
---------------------------------------------------
Water and Sewer 10%
---------------------------------------------------
Bar chart:
2001-2002 Monthly Tax-Free Dividends Per Share
($)
Feb 0.0675
Mar 0.0675
Apr 0.0675
May 0.0675
Jun 0.0675
Jul 0.0675
Aug 0.0675
Sep 0.069
Oct 0.069
Nov 0.069
Dec 0.071
Jan 0.071
Line chart:
Share Price Performance
Weekly Closing Price
($)
2/01/01 14.09
13.85
13.96
13.6
13.89
13.9
14.07
14.24
14.27
14.25
14.18
14.5
14.43
14.59
14.6
14.44
14.13
14.19
14.45
14.44
14.65
14.64
14.67
15.01
14.87
14.65
14.8
14.73
14.85
14.7
14.75
14.79
14.76
14.2
14.31
14.53
14.33
14.37
14.36
14.53
14.58
14.46
14.38
14.48
14.25
14.25
14.17
14.28
14.44
14.4
14.5
1/31/02 14.6
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
9
NZW
Nuveen Michigan Dividend Advantage Municipal Fund
Performance
Overview As of January 31, 2002
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 79%
AA 5%
A 13%
BBB 3%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $14.42
---------------------------------------------------
Net Asset Value $13.99
---------------------------------------------------
Market Yield 5.78%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.26%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.63%
---------------------------------------------------
Fund Net Assets ($000) $44,787
---------------------------------------------------
Average Effective Maturity (Years) 24.51
---------------------------------------------------
Leverage-Adjusted Duration 18.98
---------------------------------------------------
TOTAL RETURN (Inception 9/01)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
Since Inception -2.48% -0.90%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/General 36%
---------------------------------------------------
Tax Obligation/Limited 23%
---------------------------------------------------
Healthcare 12%
---------------------------------------------------
Utilities 8%
---------------------------------------------------
Water and Sewer 7%
---------------------------------------------------
Bar chart:
2001-2002 Monthly Tax-Free Dividends Per Share
($)
Nov 0.0695
Dec 0.0695
Jan 0.0695
Line chart:
Share Price Performance
Weekly Closing Price
($)
9/28/01 15.05
15.1
15.2
15.2
15.06
15.15
15.02
14.8
14.87
14.93
15.04
14.56
14.13
14
13.81
14
14.07
1/31/02 14.01
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
10
NUO
Nuveen Ohio Quality Income Municipal Fund, Inc.
Performance
Overview As of January 31, 2002
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 70%
AA 20%
A 4%
BBB 2%
NR 3%
Other 1%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $17.42
---------------------------------------------------
Net Asset Value $16.05
---------------------------------------------------
Market Yield 5.30%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.57%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.15%
---------------------------------------------------
Fund Net Assets ($000) $229,949
---------------------------------------------------
Average Effective Maturity (Years) 17.41
---------------------------------------------------
Leverage-Adjusted Duration 9.35
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 10/91)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 8.50% 6.47%
---------------------------------------------------
5-Year 6.92% 6.27%
---------------------------------------------------
10-Year 7.62% 7.73%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/General 24%
---------------------------------------------------
U.S. Guaranteed 13%
---------------------------------------------------
Water and Sewer 12%
---------------------------------------------------
Housing/Multifamily 11%
---------------------------------------------------
Healthcare 9%
---------------------------------------------------
Bar chart:
2001-2002 Monthly Tax-Free Dividends Per Share
($)
Feb 0.075
Mar 0.075
Apr 0.075
May 0.075
Jun 0.075
Jul 0.075
Aug 0.075
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.077
Jan 0.077
Line chart:
Share Price Performance
Weekly Closing Price
($)
2/01/01 16.95
17.03
16.9
17.04
16.92
16.87
15.92
15.59
15.33
15.84
15.75
16.11
16.4
16.49
16.59
16.65
16.59
16.55
16.59
16.56
16.7
16.74
16.82
16.84
16.86
16.76
16.93
16.99
17.13
17.06
17.06
16.84
16.88
15.67
15.96
16.51
16.5
16.92
16.7
17
17.03
17.06
17
17.39
17.13
17.12
16.87
17.02
17.12
17.5
17.7
1/31/02 17.6
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 35%.
11
NXI
Nuveen Ohio Dividend Advantage Municipal Fund
Performance
Overview As of January 31, 2002
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 46%
AA 19%
A 11%
BBB 16%
NR 6%
Other 2%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.19
---------------------------------------------------
Net Asset Value $14.47
---------------------------------------------------
Market Yield 5.69%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.13%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.75%
---------------------------------------------------
Fund Net Assets ($000) $91,979
---------------------------------------------------
Average Effective Maturity (Years) 20.05
---------------------------------------------------
Leverage-Adjusted Duration 12.05
---------------------------------------------------
TOTAL RETURN (Inception 3/01)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
Since Inception 5.63% 5.58%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/General 26%
---------------------------------------------------
Healthcare 15%
---------------------------------------------------
Utilities 14%
---------------------------------------------------
Education and Civic Organizations 9%
---------------------------------------------------
Tax Obligation/Limited 9%
---------------------------------------------------
Bar chart:
2001-2002 Monthly Tax-Free Dividends Per Share
($)
May 0.072
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.072
Oct 0.072
Nov 0.072
Dec 0.072
Jan 0.072
Line chart:
Share Price Performance
Weekly Closing Price
($)
3/31/01 15
15.11
15.08
15.3
15.3
15.16
15.35
15.68
15.53
15.65
16
15.55
15.78
15.67
15.95
15.77
15.9
15.28
15.38
15.76
15.74
15.88
15.59
15.21
15.19
14.45
15.1
15.61
15.42
15.44
15.48
15.71
15.6
15.4
15.41
15.39
15.2
15.25
15.04
15.1
15.43
14.84
15
1/31/02 15.09
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 35%.
12
NBJ
Nuveen Ohio Dividend Advantage Municipal Fund 2
Performance
Overview As of January 31, 2002
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 59%
AA 13%
A 21%
BBB 4%
NR 3%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.00
---------------------------------------------------
Net Asset Value $14.09
---------------------------------------------------
Market Yield 5.52%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.89%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.49%
---------------------------------------------------
Fund Net Assets ($000) $67,852
---------------------------------------------------
Average Effective Maturity (Years) 23.24
---------------------------------------------------
Leverage-Adjusted Duration 15.84
---------------------------------------------------
TOTAL RETURN (Inception 9/01)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
Since Inception 1.39% -0.22%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/General 33%
---------------------------------------------------
Healthcare 20%
---------------------------------------------------
Tax Obligation/Limited 10%
---------------------------------------------------
Utilities 9%
---------------------------------------------------
Water and Sewer 7%
---------------------------------------------------
Bar chart:
2001-2002 Monthly Tax-Free Dividends Per Share
($)
Nov 0.069
Dec 0.069
Jan 0.069
Line chart:
Share Price Performance
Weekly Closing Price
($)
9/28/01 15.25
15.55
15.5
15.45
15.32
15.1
15.06
15.05
15.2
15.29
15.17
14.87
14.72
13.85
14.49
14.49
15
1/31/02 14.69
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 35%.
13
NTX
Nuveen Texas Quality Income Municipal Fund
Performance
Overview As of January 31, 2002
Pie chart:
Credit Quality
AAA/U.S. Guaranteed 55%
AA 13%
A 12%
BBB 15%
NR 2%
Other 3%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $14.84
---------------------------------------------------
Net Asset Value $14.88
---------------------------------------------------
Market Yield 6.19%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.84%
---------------------------------------------------
Fund Net Assets ($000) $209,512
---------------------------------------------------
Average Effective Maturity (Years) 21.35
---------------------------------------------------
Leverage-Adjusted Duration 11.29
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 10/91)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 8.67% 6.71%
---------------------------------------------------
5-Year 6.50% 5.93%
---------------------------------------------------
10-Year 6.46% 7.22%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/General 20%
---------------------------------------------------
Healthcare 17%
---------------------------------------------------
Education and Civic Organizations 8%
---------------------------------------------------
Tax Obligation/Limited 7%
---------------------------------------------------
Transportation 7%
---------------------------------------------------
Bar chart:
2001-2002 Monthly Tax-Free Dividends Per Share(2)
($)
Feb 0.0715
Mar 0.0715
Apr 0.0715
May 0.0715
Jun 0.0725
Jul 0.0725
Aug 0.0725
Sep 0.074
Oct 0.074
Nov 0.074
Dec 0.0765
Jan 0.0765
Line chart:
Share Price Performance
Weekly Closing Price
($)
2/01/01 14.8
14.85
14.72
14.5
14.6
14.4
14.13
14.33
14.5
14.22
14.15
14.22
14.12
14.35
14.1
14.05
14.1
14.22
14.5
14.32
14.31
14.56
14.63
14.7
14.62
14.72
14.82
14.87
14.89
14.95
15.07
15.1
15.04
13.9
14.52
14.85
14.84
14.54
14.5
14.7
14.85
14.83
14.76
14.44
14.18
14.25
14.24
14.44
14.58
14.85
14.81
1/31/02 14.95
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%.
2 The Fund also paid shareholders a capital gains distribution in December 2001
of $0.0672 per share.
14
Shareholder
Meeting Report
The Shareholder Meeting was held in Chicago, Illinois on December 19, 2001.
NAZ NUM NMP
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Common Shares Shares Common Shares Shares
Shares Series-TH Shares Series-TH Series-F Shares Series-M Series-TH
====================================================================================================================================
Robert P. Bremner
For 4,172,804 1,083 10,685,752 2,970 546 7,119,747 822 1,205
Withhold 60,856 1 172,405 29 -- 77,872 3 99
------------------------------------------------------------------------------------------------------------------------------------
Total 4,233,660 1,084 10,858,157 2,999 546 7,197,619 825 1,304
====================================================================================================================================
Lawrence H. Brown
For 4,190,543 1,084 10,674,877 2,970 546 7,110,404 822 1,220
Withhold 43,117 -- 183,280 29 -- 87,215 3 84
------------------------------------------------------------------------------------------------------------------------------------
Total 4,233,660 1,084 10,858,157 2,999 546 7,197,619 825 1,304
====================================================================================================================================
Anne E. Impellizzeri
For 4,184,893 1,084 10,679,073 2,944 535 7,109,155 803 1,206
Withhold 48,767 -- 179,084 55 11 88,464 22 98
------------------------------------------------------------------------------------------------------------------------------------
Total 4,233,660 1,084 10,858,157 2,999 546 7,197,619 825 1,304
====================================================================================================================================
Peter R. Sawers
For 4,190,543 1,084 10,675,890 2,954 535 7,113,304 822 1,220
Withhold 43,117 -- 182,267 45 11 84,315 3 84
------------------------------------------------------------------------------------------------------------------------------------
Total 4,233,660 1,084 10,858,157 2,999 546 7,197,619 825 1,304
====================================================================================================================================
Judith M. Stockdale
For 4,172,204 1,083 10,677,415 2,970 546 7,114,226 822 1,205
Withhold 61,456 1 180,742 29 -- 83,393 3 99
------------------------------------------------------------------------------------------------------------------------------------
Total 4,233,660 1,084 10,858,157 2,999 546 7,197,619 825 1,304
====================================================================================================================================
William J. Schneider
For -- 1,084 -- 2,970 546 -- 822 1,220
Withhold -- -- -- 29 -- -- 3 84
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,084 -- 2,999 546 -- 825 1,304
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,084 -- 2,954 535 -- 822 1,220
Withhold -- -- -- 45 11 -- 3 84
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,084 -- 2,999 546 -- 825 1,304
====================================================================================================================================
15
Shareholder
Meeting Report (continued)
NUO NTX
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Common Shares Shares
Shares Series-M Series-TH Series-TH2 Shares Series-M Series-TH
====================================================================================================================================
Robert P. Bremner
For 8,649,445 647 1,358 834 8,784,836 593 1,890
Withhold 69,425 -- 19 30 49,520 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,718,870 647 1,377 864 8,834,356 593 1,890
====================================================================================================================================
Lawrence H. Brown
For 8,643,942 647 1,358 834 8,783,861 593 1,890
Withhold 74,928 -- 19 30 50,495 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,718,870 647 1,377 864 8,834,356 593 1,890
====================================================================================================================================
Anne E. Impellizzeri
For 8,638,467 647 1,358 834 8,783,111 593 1,890
Withhold 80,403 -- 19 30 51,245 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,718,870 647 1,377 864 8,834,356 593 1,890
====================================================================================================================================
Peter R. Sawers
For 8,642,199 647 1,358 834 8,784,861 593 1,890
Withhold 76,671 -- 19 30 49,495 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,718,870 647 1,377 864 8,834,356 593 1,890
====================================================================================================================================
Judith M. Stockdale
For 8,640,034 647 1,358 817 8,784,086 593 1,890
Withhold 78,836 -- 19 47 50,270 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,718,870 647 1,377 864 8,834,356 593 1,890
====================================================================================================================================
William J. Schneider
For -- 647 1,358 834 -- 593 1,890
Withhold -- -- 19 30 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 647 1,377 864 -- 593 1,890
====================================================================================================================================
Timothy R. Schwertfeger
For -- 647 1,358 834 -- 593 1,890
Withhold -- -- 19 30 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 647 1,377 864 -- 593 1,890
====================================================================================================================================
16
Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ)
Portfolio of
Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 1.6%
$ 5,000 Industrial Development Authority, Gila County, Arizona, 1/08 at 102 B+ $ 1,449,700
Environmental Revenue Refunding Bonds (ASARCO Incorporated
Project), Series 1998, 5.550%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.7%
635 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 658,660
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.7%
1,750 Student Loan Acquisition Authority, Arizona, Subordinated Fixed 5/04 at 102 Aa1 1,912,138
Rate Student Loan Revenue Bonds, Series 1994B, 6.600%,
5/01/10 (Alternative Minimum Tax)
1,250 Industrial Development Authority, City of Glendale, Arizona, 5/11 at 101 BBB+ 1,270,713
Revenue Bonds (Midwestern University), Series 2001A,
5.875%, 5/15/31
100 Arizona Board of Regents, Certificates of Participation (University 7/02 at 102 A+ 104,128
of Arizona Telecommunications System Project), Series 1991,
6.500%, 7/15/12
1,000 Arizona Board of Regents, System Revenue Refunding Bonds 6/02 at 102 AA 1,035,430
(University of Arizona), Series 1992, 6.250%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.4%
2,000 Arizona Health Facilities Authority, Hospital Revenue Bonds 11/09 at 100 A3 2,053,280
(Phoenix Children's Hospital), Series 1999A, 6.125%, 11/15/22
2,125 Arizona Health Facilities Authority, Hospital System Revenue 12/10 at 102 BBB 2,188,134
Bonds (John C. Lincoln Health Network), Series 2000, 7.000%,
12/01/25
2,000 Arizona Health Facilities Authority, Revenue Bonds (Catholic 7/10 at 101 BBB 2,071,340
Healthcare West), 1999 Series A, 6.625%, 7/01/20
3,000 Industrial Development Authority, City of Mesa, Arizona, Revenue 1/10 at 101 AAA 3,137,070
Bonds (Discovery Health System), Series 1999A, 5.750%, 1/01/25
2,000 Hospital District No. One, Mohave County, Arizona, Refunding 6/02 at 101 AAA 2,047,920
General Obligation Bonds (Kingman Regional Medical Center
Project), Series 1992, 6.500%, 6/01/15
515 Puerto Rico Industrial, Tourist, Educational, Medical and 11/10 at 101 AA 578,515
Environmental Control Facilities Financing Authority, Hospital
Revenue Bonds (Hospital de la Concepcion Project),
2000 Series A, 6.375%, 11/15/15
250 Industrial Development Authority, City of Scottsdale, Arizona, 12/11 at 101 A3 248,573
Hospital Revenue Bonds (Scottsdale Healthcare), Series 2001,
5.800%, 12/01/31
2,000 University Medical Center Corporation, City of Tucson, Arizona, 7/02 at 102 AAA 2,075,740
Hospital Revenue Refunding Bonds, Series 1992, 6.250%, 7/01/16
1,055 Industrial Development Authority, City of Winslow, Arizona, 6/08 at 101 N/R 837,427
Hospital Revenue Bonds (Winslow Memorial Hospital Project),
Series 1998, 5.500%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.5%
2,011 Industrial Development Authority, City of Glendale, Arizona, 10/10 at 105 Aaa 2,322,926
Multifamily Housing Revenue Bonds (GNMA Collateralized
Mortgage Loan - Maridale Apartments Project), Series 2000A,
7.500%, 10/20/35
1,275 Industrial Development Authority, Maricopa County, Arizona, 10/10 at 105 Aaa 1,367,833
Multifamily Housing Revenue Bonds (GNMA Collateralized -
Villas at Augusta Project), Series 2000, 6.400%, 10/20/20
500 Industrial Development Authority, Maricopa County, Arizona, 10/11 at 105 AAA 537,535
Multifamily Housing Revenue Bonds (GNMA Collateralized -
Pine Ridge, Cambridge Court, Cove on 44th and Fountain Place
Apartments Projects), Refunding Series 2001-A1, 6.000%,
10/20/31
17
Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ) (continued)
Portfolio of Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 400 Industrial Development Authority, City of Phoenix, Arizona, 6/11 at 102 Aaa $ 410,768
Multifamily Housing Revenue Bonds (GNMA Collateralized -
Campaigne Place on Jackson Project), Series 2001, 5.700%,
6/20/31 (Alternative Minimum Tax)
3,215 Industrial Development Authority, Tucson County, Arizona, Senior 7/10 at 101 AA 3,257,824
Living Facilities Revenue Bonds (The Christian Care Project),
Series 2000A, 5.625%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.3%
240 Industrial Development Authority, City of Phoenix, Arizona, 6/05 at 102 AAA 258,017
Statewide Single Family Mortgage Revenue Bonds, Series 1995,
6.150%, 6/01/08 (Alternative Minimum Tax)
1,100 Industrial Development Authority, City of Phoenix, Arizona, 6/10 at 105 AAA 1,248,852
Single Family Mortgage Revenue Bonds, Series 2000-1B,
7.350%, 6/01/31 (Alternative Minimum Tax)
1,540 Industrial Development Authority, Pima County, Arizona, Single 5/07 at 102 AAA 1,582,211
Family Mortgage Revenue Bonds, Series 1997A, 6.250%,
11/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
500 Arizona Health Facilities Authority, Revenue Bonds (Bethesda 8/07 at 102 N/R 485,665
Foundation - Bethesda Gardens Project), Series 1997A, 6.375%,
8/15/15
1,000 Industrial Development Authority, Mohave County, Arizona, 5/06 at 103 AAA 1,064,590
Healthcare Revenue Refunding Bonds (GNMA Collateralized -
Chris Ridge and Silver Ridge Village Projects), Series 1996,
6.375%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.9%
1,400 Chandler Unified School District No. 80, Maricopa County, Arizona, 7/03 at 101 AAA 1,488,004
General Obligation Refunding Bonds, Series 1993, 5.950%,
7/01/10
3,000 City of Mesa, Arizona, General Obligation Bonds, Series 1999, 7/09 at 100 AAA 3,028,560
5.000%, 7/01/18
2,500 City of Phoenix, Arizona, General Obligation Refunding Bonds, 7/02 at 102 AA+ 2,599,650
Series 1992, 6.375%, 7/01/13
500 Commonwealth of Puerto Rico, Public Improvement General 7/11 at 100 A 500,525
Obligation Bonds, 2002 Series A, 5.375%, 7/01/28
585 Tempe Union High School District No. 213, Maricopa County, 7/04 at 101 AAA 636,345
Arizona, School Improvement and Refunding Bonds, Series 1994,
6.000%, 7/01/12
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.0%
City of Bullhead, Arizona, Parkway District Improvement Bonds,
Series 1993:
910 6.100%, 1/01/08 1/03 at 103 Baa2 949,676
970 6.100%, 1/01/09 1/03 at 103 Baa2 1,010,769
1,500 Industrial Development Authority, Maricopa County, Arizona, 7/10 at 102 Baa3 1,557,855
Education Revenue Bonds (Arizona Charter Schools Project I),
Series 2000A, 6.750%, 7/01/29
Industrial Development Authority, City of Phoenix, Arizona,
Government Office Lease Revenue Bonds (Capitol Mall L.L.C.
Project), Series 2000:
1,000 5.375%, 9/15/22 9/10 at 100 AAA 1,022,080
2,000 5.500%, 9/15/27 9/10 at 100 AAA 2,057,660
1,500 Industrial Development Authority, City of Phoenix, Arizona, 3/12 at 100 AAA 1,561,470
Government Office Lease Revenue Bonds (Capitol Mall L.L.C.
Project II), Series 2001, 5.250%, 9/15/16
2,150 Phoenix Civic Plaza Building Corporation, Arizona, Senior Lien 7/05 at 101 AA+ 2,317,249
Excise Tax Revenue Bonds, Series 1994, 6.000%, 7/01/14
1,000 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101 A 1,198,180
Revenue Bonds, Series B, 6.500%, 7/01/27
1,000 Puerto Rico Public Buildings Authority, Government Facilities 7/12 at 100 A 975,240
Revenue Refunding Bonds (Guaranteed by the Commonwealth
of Puerto Rico), Series D, 5.125%, 7/01/24
500 Municipal Property Corporation, City of Surprise, Arizona, Excise 7/09 at 101 AAA 528,765
Tax Revenue Bonds, Series 2000, 5.700%, 7/01/20
500 City of Tucson, Arizona, Certificates of Participation, Series 2000, 7/08 at 100 AAA 522,360
5.700%, 7/01/20
1,100 City of Tucson, Arizona, Junior Lien Street and Highway User 7/10 at 100 AAA 1,107,843
Revenue Bonds, Series 1994-E, 5.000%, 7/01/18
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.5%
$ 3,500 Industrial Development Authority, Maricopa County, Arizona, No Opt. Call AAA $ 4,255,230
Hospital System Revenue Refunding Bonds (Samaritan Health
Services), Series 1990A, 7.000%, 12/01/16
Industrial Development Authority, Mohave County, Arizona,
Hospital System Revenue RefundingBonds (Medical Environments,
Inc., Phoenix Baptist Hospital and Medical Center, Inc.), Series 1993:
5,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 5,437,200
1,000 7.000%, 7/01/16 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 1,090,630
2,700 Civic Improvement Corporation, City of Phoenix, Arizona, 7/03 at 102 AAA 2,913,408
Wastewater System Lease Revenue Bonds, Series 1993,
6.125%, 7/01/23 (Pre-refunded to 7/01/03)
1,510 Metropolitan Domestic Water Improvement District, Pima County, 1/03 at 101 AAA 1,588,173
Arizona, Special Assessment and Water Revenue Bonds,
Series 1992, 6.200%, 1/01/12 (Pre-refunded to 1/01/03)
1,415 Tempe Union High School District No. 213, Maricopa County, 7/04 at 101 AAA 1,547,062
Arizona, School Improvement and Refunding Bonds,
Series 1994, 6.000%, 7/01/12 (Pre-refunded to 7/01/04)
3,000 City of Tucson, Arizona, General Obligation Bonds, 7/04 at 101 AAA 3,297,480
Series 1984-G, 6.250%, 7/01/18 (Pre-refunded to 7/01/04)
725 City of Tucson, Arizona, Certificates of Participation, Series 1994, 7/04 at 100 AA*** 792,164
6.375%, 7/01/09 (Pre-refunded to 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.5%
2,865 Pollution Control Corporation, Coconino County, Arizona, 10/06 at 102 BBB- 2,862,679
Pollution Control Revenue Bonds (Nevada Power Company
Project), Series 1996, 6.375%, 10/01/36 (Alternative Minimum Tax)
2,000 Industrial Development Authority, Mohave County, Arizona, 11/03 at 101 BBB 1,950,420
Industrial Development Revenue Bonds (Citizen Utilities
Company Projects), Series 1994, 6.600%, 5/01/29 (Alternative
Minimum Tax)
500 Pollution Control Corporation, Navajo County, Arizona, Pollution 8/03 at 102 AAA 521,610
Control Revenue Refunding Bonds (Arizona Public Service
Company), 1993 Series A, 5.875%, 8/15/28
1,325 Industrial Development Authority, Pima County, Arizona, 7/02 at 103 AAA 1,391,911
Industrial Development Lease Obligation Refunding Revenue
Bonds (Irvington Project), 1988 Series A, 7.250%, 7/15/10
1,450 Industrial Development Authority, Yavapai County, Arizona, 6/07 at 101 BBB 1,197,410
Industrial Development Revenue Bonds (Citizens Utilities
Company Project), Series 1998, 5.450%, 6/01/33 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.2%
500 Industrial Development Authority, Maricopa County, Arizona, 12/07 at 102 AAA 504,630
Water System Improvement Revenue Bonds (Chaparral City
Water Company Project), Series 1997A, 5.400%, 12/01/22
(Alternative Minimum Tax)
2,000 Civic Improvement Corporation, City of Phoenix, Arizona, Junior 7/10 at 101 AAA 2,287,700
Lien Wastewater System Revenue Bonds, Series 2000,
6.000%, 7/01/24
2,000 City of Tucson, Arizona, Water System Revenue Refunding Bonds, 7/02 at 102 Aa3 2,046,220
Series 1992A, 5.750%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 90,066 Total Investments (cost $89,905,736) - 98.0% 90,951,147
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.6%
$ 1,500 Industrial Development Authority, City of Phoenix, Arizona, NR 1,500,000
============= Revenue Bonds (Valley of the Sun YMCA Project), Series 2001,
Variable Rate Demand Bonds, 1.500%, 1/01/31+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.4% 392,236
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 92,843,383
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but
has variable rate and demand features which qualify
it as a short-term security. The rate disclosed is
that currently in effect. This rate changes
periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
19
Nuveen Arizona Dividend Advantage Municipal Fund (NFZ)
Portfolio of
Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.6%
$ 1,020 Industrial Development Authority, City of Mesa, Arizona, Student 7/11 at 101 BBB- $ 1,021,112
Housing Revenue Bonds (Arizona State University - East
Maricopa County Community College District - Williams
Campus Project), Series 2001A, 6.000%, 7/01/26
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds (Ana G. Mendez University System
Project), Series 1999:
320 5.375%, 2/01/19 2/09 at 101 BBB 315,446
1,000 5.375%, 2/01/29 2/09 at 101 BBB 965,490
300 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100 BBB 297,990
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds (University of the Sacred Heart
Project), Series 2001, 5.250%, 9/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.7%
1,050 Arizona Health Facilities Authority, Hospital System Revenue 12/10 at 102 BBB 1,071,158
Bonds (John C. Lincoln Health Network), Series 2000, 6.875%,
12/01/20
2,170 Arizona Health Facilities Authority, Revenue Bonds (Catholic 7/10 at 101 BBB 2,247,404
Healthcare West), 1999 Series A, 6.625%, 7/01/20
1,000 Industrial Development Authority, City of Scottsdale, Arizona, 12/11 at 101 A3 994,290
Hospital Revenue Bonds (Scottsdale Healthcare), Series 2001,
5.800%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 13.6%
1,000 Industrial Development Authority, Maricopa County, Arizona, 7/09 at 102 Aaa 1,046,850
Multifamily Housing Revenue Bonds (Whispering Palms
Apartments Project), Series 1999A, 5.900%, 7/01/29
1,000 Industrial Development Authority, Maricopa County, Arizona, 5/10 at 102 A3 1,065,350
Multifamily Housing Revenue Bonds (Sun King Apartments
Project), Series 2000A, 6.750%, 5/01/31
1,125 Industrial Development Authority, Maricopa County, Arizona, 10/11 at 103 Aaa 1,156,376
Multifamily Housing Revenue Bonds (Syl-Mar Apartments
Project), Series 2001, 5.650%, 4/20/21 (Alternative Minimum Tax)
275 Industrial Development Authority, City of Phoenix, Arizona, 6/11 at 102 Aaa 282,403
Multifamily Housing Revenue Bonds (GNMA Collateralized -
Campaigne Place on Jackson Project), Series 2001, 5.700%,
6/20/31 (Alternative Minimum Tax)
1,000 Industrial Development Authority, City of Phoenix, Arizona, 11/11 at 105 AAA 1,068,140
Multifamily Housing Revenue Bonds (GNMA Collateralized -
Bay Club Apartments Project), Series 2001, 5.900%, 11/20/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.3%
470 Industrial Development Authority, Pima County, Arizona, Single 11/10 at 101 AAA 472,341
Family Mortgage Revenue Bonds, Series 2001-A1, 5.350%,
11/01/24 (Alternative Minimum Tax)
1,000 Industrial Development Authority, Pima County, Arizona, Single 11/10 at 101 AAA 1,004,910
Family Mortgage Revenue Bonds, Series 2001-A4, 5.050%,
5/01/17
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.9%
1,000 Mesa County, Colorado, Residential Care Facilities Mortgage 12/11 at 101 AA 973,740
Revenue Bonds (Hilltop Community Resources Inc. Obligated
Group Projects), Series 2001A, 5.375%, 12/01/28
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.5%
1,000 City of Mesa, Arizona, General Obligation Bonds, Series 1999, 7/09 at 100 AAA 1,012,630
5.000%, 7/01/17
1,000 City of Phoenix, Arizona, General Obligation Refunding Bonds, 7/05 at 101 AA+ 1,002,120
Series 1995A, 5.000%, 7/01/19
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 500 Commonwealth of Puerto Rico, Public Improvement General No Opt. Call A $ 525,905
Obligation Bonds of 2002, Series A, 5.500%, 7/01/29
1,020 City of Tucson, Arizona, General Obligation Refunding Bonds, 7/07 at 100 AA 1,024,039
Series 1997, 5.000%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.9%
700 Arizona School Facilities Board, State School Improvement 7/11 at 100 AAA 738,640
Revenue Bonds, Series 2001, 5.500%, 7/01/18
2,000 Industrial Development Authority, Maricopa County, Arizona, 6/07 at 102 A 2,098,940
Education Revenue Bonds (Horizon Community Learning Center
Project), Series 2000, 6.350%, 6/01/26
900 Industrial Development Authority, City of Phoenix, Arizona, 3/12 at 100 AAA 936,882
Government Office Lease Revenue Bonds (Capitol Mall L.L.C.
Project II), Series 2001, 5.250%, 9/15/16
1,000 City of Tucson, Arizona, Junior Lien Street and Highway User 7/10 at 100 AAA 1,007,130
Revenue Bonds, Series 1994-E, 5.000%, 7/01/18
640 Municipal Property Corporation, City of Yuma, Arizona, Municipal 7/10 at 100 AAA 638,394
Facilities Revenue Bonds, Series 2001, 5.000%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.9%
1,000 Civic Improvement Corporation, City of Phoenix, Arizona, Senior 7/08 at 101 AAA 979,020
Lien Airport Revenue Bonds, Series 1998A, 5.000%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 5.7%
500 Industrial Development Authority, Maricopa County, Arizona, 9/05 at 101 AAA 547,810
Revenue Refunding Bonds (Baptist Hospital System),
Series 1995, 5.500%, 9/01/16 (Pre-refunded to 9/01/05)
1,350 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101 AAA 1,401,665
Obligation Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.7%
1,500 Arizona Power Authority, Power Resource Revenue Bonds No Opt. Call AA 1,569,420
(Hoover Uprating Project), Special Obligation Crossover
Refunding Series 2001, 5.250%, 10/01/17
1,000 Pollution Control Corporation, Coconino County, Arizona, 11/02 at 102 BBB- 922,160
Pollution Control Revenue Bonds (Nevada Power Company
Project), Series 1997B, 5.800%, 11/01/32 (Alternative
Minimum Tax)
1,000 City of Mesa, Arizona, Utility Systems Revenue Bonds, 7/09 at 100 AAA 1,011,020
Series 2000, 5.125%, 7/01/19
1,000 City of Mesa, Arizona, Utility System Revenue Refunding Bonds, No Opt. Call AAA 1,051,370
Series 2002, 5.250%, 7/01/17 (WI, settling 2/07/02)
805 Agricultural Improvement and Power District, Arizona, Electric 1/08 at 101 AA 804,493
System Refunding Revenue Bonds (Salt River Project),
1997 Series A, 5.000%, 1/01/20
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.8%
1,025 City of Chandler, Arizona, Water and Sewer Revenue Bonds, 7/10 at 101 AAA 967,476
Series 2001, 4.500%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 31,670 Total Investments (cost $31,896,797) - 94.6% 32,222,114
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.4% 1,854,868
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 34,076,982
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
21
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of
Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 0.4%
$ 1,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/03 at 102 BBB $ 1,013,540
(WMX Technologies, Inc. Project), Series 1993, 6.000%,
12/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.1%
330 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 342,296
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.4%
1,720 Board of Trustees of Ferris State University, Michigan, General 4/08 at 100 AAA 1,678,754
Revenue Bonds, Series 1998, 5.000%, 10/01/23
1,685 Michigan Higher Education Facilities Authority, Limited Obligation 9/11 at 100 Aaa 1,770,059
Revenue Bonds (Kettering University Refunding), Series 2001,
5.500%, 9/01/17
1,500 Michigan Higher Education Student Loan Authority, Student Loan No Opt. Call AAA 1,568,295
Refunding Revenue Bonds, Series XII-T, 5.300%, 9/01/10
(Alternative Minimum Tax)
1,000 Board of Trustees of Oakland University, Michigan, General 5/05 at 102 AAA 1,052,660
Revenue Bonds, Series 1995, 5.750%, 5/15/15
Board of Governors of Wayne State University, Michigan, General
Revenue Bonds, Series 1999:
3,430 5.250%, 11/15/19 11/09 at 101 AAA 3,479,152
1,000 5.125%, 11/15/29 11/09 at 101 AAA 986,790
1,450 Board of Trustees of Western Michigan University, General 7/03 at 102 AAA 1,431,324
Revenue Bonds, Series 1993A, 5.000%, 7/15/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.4%
2,900 Economic Development Corporation, City of Dearborn, Michigan, 11/05 at 102 AAA 3,006,024
Hospital Revenue Bonds (Oakwood Obligated Group),
Series 1995A, 5.875%, 11/15/25
2,235 Hospital Finance Authority, City of Hancock, Michigan, 8/08 at 100 AAA 2,243,247
FHA-Insured Mortgage Hospital Revenue Bonds (Portage Health
System, Inc.), Series 1998, 5.450%, 8/01/47
3,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds 7/11 at 101 AA 3,452,365
(Spectrum Health), Series 2001A, 5.250%, 1/15/21
3,544 Michigan State Hospital Finance Authority, Collateralized Loan No Opt. Call Baa2 3,576,562
(Detroit Medical Center), Series 2001, 7.360%, 4/01/07
1,000 Michigan State Hospital Finance Authority, Revenue Refunding 11/09 at 101 A 1,033,340
Bonds (OSF Healthcare System), Series 1999, 6.125%, 11/15/19
Michigan State Hospital Finance Authority, Revenue Bonds
(Ascension Health Credit Group), Series 1999A:
1,000 6.125%, 11/15/23 11/09 at 101 AAA 1,049,040
2,500 6.125%, 11/15/26 11/09 at 101 AA 2,613,700
1,700 Michigan State Hospital Finance Authority, Revenue and 8/09 at 101 AAA 1,775,089
Refunding Bonds (Mercy Health Services Obligated Group),
1999 Series X, 5.750%, 8/15/19
Michigan State Hospital Finance Authority, Hospital Revenue and
Refunding Bonds (Mercy Mount Clemens Corporation Obligated
Group), Series 1999A:
3,385 5.750%, 5/15/17 5/09 at 101 AAA 3,551,745
500 5.750%, 5/15/29 5/09 at 101 AAA 516,755
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 2,379,750
Bonds (The Detroit Medical Center Obligated Group),
Series 1998A, 5.250%, 8/15/28
1,000 Michigan State Hospital Finance Authority, Revenue and 11/09 at 101 BBB 944,650
Refunding Bonds (Memorial Healthcare Center Obligated
Group), Series 1999, 5.875%, 11/15/21
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101 A+ $ 5,120,250
Bonds (Henry Ford Health System), Series 1999A, 6.000%,
11/15/24
500 Hospital Finance Authority, City of Royal Oak, Michigan, 11/11 at 100 AAA 492,915
Hospital Revenue Bonds (William Beaumont Hospital),
Series 2001M, 5.250%, 11/15/31
2,195 Regents of the University of Michigan, Medical Service Plan No Opt. Call Aa2 1,473,899
Revenue Bonds, Series 1991, 0.000%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.4%
5,250 Michigan State Housing Development Authority, Limited 10/02 at 103 AAA 5,511,450
Obligation Revenue Bonds (Parkway Meadows Project),
Series 1991, 6.850%, 10/15/18
5,000 Michigan State Housing Development Authority, Rental Housing 6/05 at 102 AAA 5,241,550
Revenue Bonds, 1995 Series B, 6.150%, 10/01/15
6,795 Michigan State Housing Development Authority, Rental Housing 4/09 at 101 AAA 6,593,392
Revenue Bonds, 1999 Series A, 5.300%, 10/01/37 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.6%
620 Michigan State Housing Development Authority, Single Family 6/02 at 102 AA+ 628,761
Mortgage Revenue Bonds, 1991 Series B, 6.950%, 12/01/20
1,000 Michigan State Housing Development Authority, Single Family 1/11 at 100 AAA 1,007,440
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.4%
2,000 Economic Development Corporation, Charter Township of Grand 7/09 at 101 A 1,930,700
Rapids, Michigan, Limited Obligation Revenue Bonds (Porter
Hills Obligated Group - Cook Valley Estate Project), Series 1999,
5.450%, 7/01/29
3,300 Michigan State Hospital Finance Authority, Revenue Bonds 1/07 at 102 N/R 3,208,887
(Presbyterian Villages of Michigan Obligated Group),
Series 1997, 6.375%, 1/01/25
1,300 Michigan Strategic Fund, Limited Obligation Revenue Bonds 7/08 at 101 A 1,228,227
(Porter Hills Presbyterian Village), Refunding Series 1998,
5.375%, 7/01/28
5,280 Economic Development Corporation, City of Warren, Michigan, 3/02 at 101 Aaa 5,342,938
Nursing Home Revenue Refunding Bonds (GNMA
Mortgage-Backed Security - Autumn Woods Project),
Series 1992, 6.900%, 12/20/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.7%
Allegan Public Schools, Allegan County, Michigan, General
Obligation Bonds, Series 2000:
1,850 5.600%, 5/01/20 5/10 at 100 AAA 1,926,294
1,150 5.750%, 5/01/30 5/10 at 100 AAA 1,202,486
2,190 Anchor Bay School District, Counties of Macomb and St.Clair, 5/09 at 100 AAA 2,469,751
Michigan, School Building and Site Bonds (General Obligation -
Unlimited Tax), 1999 Series I, 6.000%, 5/01/29
4,200 Anchor Bay School District, Counties of Macomb and St. Clair, 5/11 at 100 AAA 4,080,972
Michigan, Refunding Bonds (General Obligation - Unlimited
Tax), Series 2001, 5.000%, 5/01/29
1,000 Anchor Bay School District, Counties of Macomb and St. Clair, 5/12 at 100 AAA 977,740
Michigan, General Obligation Refunding Bonds, Series 2002,
5.000%, 5/01/25 (WI, settling 2/06/02)
1,000 Belding Area Schools, Counties of Ionia, Kent and Montcalm, 5/08 at 100 AAA 973,210
Michigan, Refunding Bonds (General Obligation - Unlimited
Tax), Series 1998, 5.000%, 5/01/26
1,000 Charlotte Public Schools, Easton County, Michigan, School 5/09 at 100 AAA 1,003,200
Building and Site Bonds (General Obligation - Unlimited Tax),
Series 1999, 5.250%, 5/01/25
1,000 Chippewa Valley Schools, Macomb County, Michigan, 5/03 at 102 AAA 987,150
Refunding Bonds (General Obligation - Unlimited Tax),
Series 1993, 5.000%, 5/01/21
2,000 Clarkston Community Schools, Michigan, General Obligation 5/07 at 100 AAA 2,007,560
School Building and Site Bonds, Series 1997, 5.250%, 5/01/23
1,000 East China School District, St. Clair County, Michigan, 11/11 at 100 AAA 1,037,740
General Obligation Bonds, Series 2001, 5.500%, 5/01/20
1,085 Freeland Community School District, Counties of Saginaw, 5/10 at 100 AAA 1,105,637
Midland and Bay, Michigan, School Building and Sites Bonds
(General Obligation - Unlimited Tax), Series 2000, 5.250%,
5/01/19
23
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,300 Grand Ledge Public Schools, Counties of Eaton, Clinton and Ionia, 5/05 at 102 AAA $ 3,335,772
Michigan, Refunding Bonds, Series 1995, 5.375%, 5/01/24
3,000 Grand Rapids and Kent County Joint Building Authority, No Opt. Call AAA 764,820
Michigan, General Obligation - Limited Tax Bonds (Devos
Place Project), Series 2001, 0.000%, 12/01/26
1,500 Huron Valley School District, Counties of Oakland and 11/11 at 100 AAA 1,579,080
Livingston, Michigan, General Obligation Bonds, Series 2001,
5.500%, 5/01/17
725 Lake Orion Community School District, Oakland County, 5/05 at 101 AAA 738,804
Michigan, Refunding Bonds (General Obligation - Unlimited
Tax), Series 1995, 5.500%, 5/01/20
1,000 Mancelona Public School District, Counties of Antrim and 5/06 at 100 AAA 1,009,820
Kalkaska, Michigan, General Obligation Bonds, Series 1997,
5.200%, 5/01/17
6,400 Mattawan Consolidated School, Counties of Van Buren and 5/02 at 102 AAA 6,602,688
Kalamazoo, Michigan, Refunding Bonds (General Obligation -
Unlimited Tax), Series 1992, 6.300%, 5/01/17
2,875 Milan Area Schools, Counties of Washtenaw and Monroe, 5/10 at 100 AAA 3,020,044
Michigan, School Building and Site Bonds (General
Obligation - Unlimited Tax), 2000 Series A, 5.750%, 5/01/24
4,300 Building Authority, Montcalm County, Michigan, Correctional 5/10 at 100 AAA 4,315,351
Facility Improvement Bonds (General Obligation), Series 2000,
5.250%, 5/01/25
2,500 Montrose Township School District, Michigan, School Building No Opt. Call AAA 2,821,000
and Site Bonds, Series 1997, 6.000%, 5/01/22
1,000 Muskegon Heights Public Schools, Muskegon County, Michigan, 5/09 at 100 AAA 968,830
School Building and Site Bonds (General Obligation - Unlimited
Tax), Series 1999, 5.000%, 5/01/29
1,045 Nice Community School District, Counties of Marquette and 5/04 at 101 AAA 1,053,015
Baraga, Michigan, School Building and Site Bonds (General
Obligation - Unlimited Tax), Series 1995, 5.250%, 5/01/20
1,225 North Branch Area Schools, Lapeer County, Michigan, 5/03 at 101 1/2 AAA 1,235,780
Refunding Bonds (General Obligation - Unlimited Tax),
Series 1993, 5.375%, 5/01/21
1,625 Northville Public Schools, Wayne County, Michigan, General 11/11 at 100 AAA 1,677,146
Obligation Bonds, Series 2001, 5.375%, 5/01/18
1,000 Building Authority, Oakland County, Michigan, General 9/11 at 100 AAA 1,001,460
Obligation Bonds, Series 2002, 5.125%, 9/01/22
1,225 Paw Paw Public Schools, Van Buren County, Michigan, General No Opt. Call AAA 1,227,168
Obligation Refunding Bonds, Series 1998, 5.000%, 5/01/21
4,000 Pinckney Community Schools, Counties of Livingston and 5/07 at 100 AAA 4,067,400
Washtenaw, Michigan, School Building and Site Bonds (General
Obligation - Unlimited Tax), Series 1997, 5.500%, 5/01/27
685 Reeths-Puffer Schools, Muskegon County, Michigan, School 5/05 at 101 AAA 724,483
Building and Site and Refunding Bonds, Series 1995, 5.750%,
5/01/15
1,000 Rochester Community School District, Counties of Oakland and 5/10 at 100 AAA 1,060,160
Macomb, Michigan, School Building and Site and Refunding
Bonds (General Obligation - Unlimited Tax), 2000 Series I,
5.750%, 5/01/19
2,100 Romulus Community Schools, Wayne County, Michigan, School 5/09 at 100 AAA 2,335,452
Building and Site Bonds (General Obligation - Unlimited Tax),
Series 1999, 5.750%, 5/01/25
2,500 Building Authority, City of Taylor, Wayne County, Michigan, General 3/10 at 100 AAA 2,529,575
Obligation - Limited Tax Bonds, Series 2000, 5.125%, 3/01/17
1,050 Warren Consolidated Schools, Counties of Macomb and Oakland, 11/11 at 100 AAA 1,079,600
Michigan, General Obligation Bonds, Series 2001, 5.375%,
5/01/19
1,980 Building Authority, Washtenaw County, Michigan, Building 9/07 at 100 AAA 2,029,421
Authority Bonds (General Obligation - Limited Tax), Series 1999,
5.400%, 9/01/17
2,600 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100 AAA 2,929,446
School Building and Site Bonds (General Obligation -
Unlimited Tax), Series 2000, 5.900%, 5/01/18
1,125 Whitehall District Schools, Muskegon County, Michigan, 11/11 at 100 AAA 1,184,310
General Obligation Bonds, Series 2001, 5.500%, 5/01/17
1,725 Williamston Community School District, Michigan, General No Opt. Call AAA 1,831,571
Obligation - Unlimited Tax Bonds, Series 1996, 5.500%, 5/01/25
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.5%
$ 1,800 Tax Increment Finance Authority, City of Dearborn Heights, 10/10 at 100 AAA $ 1,750,158
Wayne County, Michigan, Tax Increment Bonds (General
Obligation - Limited Tax)(Police and Courthouse
Facility), Series 2001-A, 5.000%, 10/01/26
1,000 Building Authority, City of Grand Rapids, Kent County, No Opt. Call AA 1,026,020
Michigan, General Obligation - Limited Tax Bonds,
Series 1998, 5.000%, 4/01/16
1,145 Building Authority, City of Grand Rapids, Kent County, 10/11 at 100 AAA 1,133,848
Michigan, General Obligation - Limited Tax Bonds,
Series 2001, 5.125%, 10/01/26
255 Michigan Municipal Bond Authority, Local Government Loan 5/02 at 102 A 261,334
Program Revenue Bonds, Series 1992D, 6.650%, 5/01/12
750 State Building Authority, Michigan, Revenue Refunding Bonds 10/09 at 100 AA+ 711,038
(Facilities Program), 1998 Series I, 4.750%, 10/15/21
State of Michigan, Certificates of Participation (525 Redevco,
Inc.), Series 2000:
2,000 5.500%, 6/01/19 6/10 at 100 AAA 2,068,020
2,000 5.500%, 6/01/27 6/10 at 100 AAA 2,041,500
1,000 State of Michigan, Certificates of Participation (New Center 9/11 at 100 AAA 1,017,940
Development, Inc.), Series 2001, 5.375%, 9/01/21
1,000 State of Michigan, State Trunk Line Fund Bonds, Series 2001A, 11/11 at 100 AAA 974,820
5.000%, 11/01/25
1,100 Muskegon County, Michigan, Wastewater Management 7/11 at 100 AAA 1,070,465
System No. 2 Revenue Bonds (General Obligation - Limited
Tax), Series 2002, 5.000%, 7/01/26
Puerto Rico Highway and Transportation Authority, Highway
Revenue Bonds, 1996 Series Y:
4,100 5.500%, 7/01/36 7/16 at 100 A 4,168,470
2,000 5.000%, 7/01/36 7/16 at 100 A 1,907,840
1,125 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101 A 1,307,801
Revenue Bonds, Series B, 6.000%, 7/01/39
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call A- 1,107,890
Appropriation Bonds, 2002 Series E, 6.000%, 8/01/26
5,000 Charter County of Wayne, Michigan, Airport Hotel Revenue 12/11 at 101 AAA 4,910,200
Bonds (Detroit Metropolitan Airport)(General Obligation -
Limited Tax), Series 2001A, 5.000%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.4%
2,505 Charter County of Wayne, Michigan, Subordinate Lien Airport 12/03 at 100 AAA 2,591,924
Revenue Bonds (Detroit Metropolitan Airport), Series 1991B,
6.750%, 12/01/21 (Alternative Minimum Tax)
3,000 Charter County of Wayne, Michigan, Airport Revenue Bonds 12/08 at 101 AAA 2,837,250
(Detroit Metropolitan Airport), Series 1998A, 5.000%,
12/01/28 (Alternative Minimum Tax)
1,195 Charter County of Wayne, Michigan, Airport Revenue Bonds 12/08 at 101 AAA 1,128,928
(Detroit Metropolitan Airport), Series 1998B, 4.875%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 9.4%
2,000 East Grand Rapids Public Schools, Kent County, Michigan, School 5/09 at 100 AAA 2,255,480
Building and Site Bonds (General Obligation - Unlimited Tax),
Series 2000, 6.000%, 5/01/29 (Pre-refunded to 5/01/09)
1,600 Gaylord Community Schools, Counties of Ostego and Antrim, 5/02 at 102 AAA 1,652,288
Michigan, School Building and Site and Refunding Bonds,
Series 1992, 6.600%, 5/01/21 (Pre-refunded to 5/01/02)
1,000 Grosse Ile Township School District, Michigan, General 5/07 at 100 AAA 1,115,080
Obligation School Improvement Refunding Bonds, Series 1996,
6.000%, 5/01/22 (Pre-refunded to 5/01/07)
3,100 Hemlock Public School District, Counties of Saginaw and 5/02 at 102 AAA 3,202,889
Midland, Michigan, School Building and Site and Refunding
Bonds, Series 1992, 6.750%, 5/01/21 (Pre-refunded to 5/01/02)
2,000 Lincoln Park School District, Michigan, General Obligation Bonds, 5/06 at 101 AAA 2,227,400
Series 1996, 5.900%, 5/01/26 (Pre-refunded to 5/01/06)
2,100 Michigan Municipal Bond Authority, State Revolving Fund 10/02 at 102 AAA 2,211,804
Revenue Bonds, Series 1992A, 6.600%, 10/01/18
(Pre-refunded to 10/01/02)
25
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 1,745 Michigan Municipal Bond Authority, Local Government Loan 5/02 at 102 A*** $ 1,802,114
Program Revenue Bonds, Series 1992D, 6.650%, 5/01/12
(Pre-refunded to 5/01/02)
3,035 Michigan State Hospital Finance Authority, Hospital Revenue 12/02 at 102 AAA 3,227,510
Bonds (MidMichigan Obligated Group), Series 1992, 6.900%,
12/01/24 (Pre-refunded to 12/01/02)
2,150 North Branch Area Schools, Lapeer County, Michigan, School 5/02 at 102 AAA 2,220,262
Building and Site and Refunding Bonds (General Obligation -
Unlimited Tax), Series 1992, 6.600%, 5/01/17 (Pre-refunded
to 5/01/02)
4,845 Saginaw-Midland Municipal Water Supply Corporation, 9/04 at 102 A2*** 5,462,544
Michigan, Water Supply Revenue Bonds (General Obligation -
Limited Tax), Series 1992, 6.875%, 9/01/16 (Pre-refunded
to 9/01/04)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.2%
3,000 Michigan Public Power Agency, Project Revenue Bonds 1/12 at 100 AAA 2,997,780
(Combustion Turbine No. 1), 2001 Series A, 5.250%, 1/01/27
2,390 Michigan South Central Power Agency, Power Supply System 5/02 at 102 Baa1 2,442,269
Revenue Refunding Bonds, Series 1991, 6.750%, 11/01/10
4,475 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 4,707,208
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,630 Michigan Strategic Fund, Limited Obligation Refunding Revenue No Opt. Call AAA 4,497,207
Bonds (The Detroit Edison Company), Series 1991BB, 7.000%,
5/01/21
2,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue No Opt. Call Aaa 2,048,460
Bonds (The Detroit Edison Company), Series 1995CC
Remarketing, 4.850%, 9/01/30 (Mandatory put 9/01/11)
4,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/11 at 100 A- 3,980,000
Bonds (The Detroit Edison Company Pollution Control Project),
Collateralized Series 2001C, 5.450%, 9/01/29
1,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102 AAA 1,017,040
Bonds (The Detroit Edison Company Pollution Control Project),
Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax)
7,000 Monroe County, Michigan, Pollution Control Revenue Bonds 9/02 at 102 AAA 7,312,970
(The Detroit Edison Company - Monroe and Fermi Plants
Project), Collateralized 1992 Series I, 6.875%, 9/01/22
(Alternative Minimum Tax)
400 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101 AAA 403,976
Series HH, 5.250%, 7/01/29
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100 A- 1,007,210
Series X, 5.500%, 7/01/25
5,000 City of Wyandotte, Wayne County, Michigan, Electric Revenue 10/02 at 102 AAA 5,225,250
Refunding Bonds, Series 1992, 6.250%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.9%
5,250 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 100 AAA 5,118,960
Refunding Bonds, Series 1995-B, 5.000%, 7/01/25
City of Detroit, Michigan, Sewage Disposal System Revenue
Bonds, Series 1997-A:
3,000 5.500%, 7/01/20 7/07 at 101 AAA 3,089,070
1,730 5.000%, 7/01/22 7/07 at 101 AAA 1,696,300
1,000 City of Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101 AAA 1,127,990
Bonds, Series 1999-A, 5.875%, 7/01/27
1,500 City of Detroit, Michigan, Sewage System Disposal Revenue No Opt. Call AAA 1,603,020
Bonds, Second Lien Series 2001B, 5.500%, 7/01/29
6,000 City of Detroit, Michigan, Water Supply System Revenue and 7/04 at 102 AAA 5,834,520
Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/23
2,000 City of Detroit, Michigan, Senior Lien Water Supply System 1/10 at 101 AAA 2,236,320
Revenue Bonds, Series 1999-A, 5.750%, 7/01/26
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 3,400 City of Detroit, Michigan, Senior Lien Water Supply System 7/11 at 101 AAA $ 3,592,474
Revenue Bonds, Series 2001-A, 5.750%, 7/01/28
City of Muskegon Heights, Muskegon County, Michigan, Water
Supply System Revenue Bonds, Series 2000A:
1,040 5.625%, 11/01/25 11/10 at 100 Aaa 1,079,926
1,160 5.625%, 11/01/30 11/10 at 100 Aaa 1,201,212
------------------------------------------------------------------------------------------------------------------------------------
$ 262,104 Total Investments (cost $253,437,807) - 98.8% 265,751,461
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.8%
2,900 Michigan Strategic Fund, Pollution Control Bonds (Consumers VMIG-1 2,900,000
Power Company) Variable Rate Demand Bonds, 1.500%,
4/15/18+
2,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds N/R 2,000,000
(Detroit Symphony Orchestra Project), Variable Rate Demand
Bonds, Series 2001A, 1.450%, 6/01/31+
------------------------------------------------------------------------------------------------------------------------------------
$ 4,900 Total Short-Term Investments (cost $4,900,000) 4,900,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.6)% (1,602,788)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 269,048,673
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but
has variable rate and demand features which qualify
it as a short-term security. The rate disclosed is
that currently in effect. This rate changes
periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
27
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of
Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 2.6%
$ 3,050 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102 BBB $ 3,143,147
(Waste Management, Inc. Project), Series 1992, 6.625%,
12/01/12 (Alternative Minimum Tax)
1,370 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/03 at 102 BBB 1,388,550
(WMX Technologies, Inc. Project), Series 1993, 6.000%,
12/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.3%
475 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 492,699
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.2%
1,100 Michigan Higher Education Student Loan Authority, Student Loan 10/02 at 102 A1 1,137,367
and Refunding Revenue Bonds, Series XV-A, 6.700%,
10/01/05 (Alternative Minimum Tax)
1,000 Board of Control of Saginaw Valley, Michigan, State University 7/09 at 100 Aaa 1,031,720
General Revenue Bonds, Series 1999, 5.625%, 7/01/29
3,500 Board of Governors of Wayne State University, Michigan, General 11/09 at 101 AAA 3,453,765
Revenue Bonds, Series 1999, 5.125%, 11/15/29
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.7%
2,050 Economic Development Corporation, City of Dearborn, Michigan, 11/05 at 102 AAA 2,124,948
Hospital Revenue Bonds (Oakwood Obligated Group),
Series 1995A, 5.875%, 11/15/25
2,200 Hospital Finance Authority, City of Hancock, Michigan, 8/08 at 100 AAA 2,208,118
FHA-Insured Mortgage Hospital Revenue Bonds (Portage
Health System, Inc.), Series 1998, 5.450%, 8/01/47
2,500 Hospital Finance Authority, City of Kalamazoo, Michigan, 5/06 at 102 AAA 2,606,050
Hospital Revenue Refunding and Improvement Bonds (Bronson
Methodist Hospital), Series 1996, 5.750%, 5/15/16
Michigan State Hospital Finance Authority, Revenue and Refunding
Bonds (The Detroit Medical Center Obligated Group), Series
1993A:
3,000 6.250%, 8/15/13 8/03 at 102 BBB- 2,982,870
3,200 6.500%, 8/15/18 8/03 at 102 BBB- 3,117,792
4,000 Michigan State Hospital Finance Authority, Hospital Revenue 9/02 at 102 A+ 4,057,640
and Refunding Bonds (Henry Ford Health System),
Series 1992A, 5.750%, 9/01/17
2,000 Michigan State Hospital Finance Authority, Hospital Revenue and 1/05 at 102 A+ 2,060,700
Refunding Bonds (Otsego Memorial Hospital - Gaylord,
Michigan), Series 1995, 6.250%, 1/01/20
2,500 Michigan State Hospital Finance Authority, Revenue Bonds 11/09 at 101 AA 2,613,700
(Ascension Health Credit Group), Series 1999A, 6.125%,
11/15/26
4,000 Michigan State Hospital Finance Authority, Hospital Revenue and 5/09 at 101 AAA 4,134,040
Refunding Bonds (Mercy Mount Clemens Corporation Obligated
Group), Series 1999A, 5.750%, 5/15/29
500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101 A1 487,680
Refunding Bonds (Sparrow Obligated Group), Series 2001,
5.625%, 11/15/31
500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 396,625
Bonds ( The Detroit Medical Center Obligated Group),
Series 1998A, 5.250%, 8/15/28
4,300 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101 A+ 4,403,415
Bonds (Henry Ford Health System), Series 1999A, 6.000%,
11/15/24
3,000 Regents of the University of Michigan, Hospital Revenue 12/02 at 102 AA 3,011,850
Refunding Bonds, Series 1993A, 5.500%, 12/01/21
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.0%
$ 1,335 Michigan State Housing Development Authority, Senior Lien 12/10 at 100 AAA $ 1,369,336
Multifamily Revenue Bonds (Landings Project), Series 2001A,
5.950%, 12/01/33
2,400 Michigan State Housing Development Authority, Limited 4/04 at 103 AAA 2,477,544
Obligation Revenue Bonds (Walled Lake Villa Project),
Series 1993, 6.000%, 4/15/18
1,500 Michigan State Housing Development Authority, Limited 10/03 at 103 AAA 1,523,055
Obligation Revenue Bonds (Brenton Village Green Project),
Series 1993, 5.625%, 10/15/18
790 Michigan State Housing Development Authority, Rental Housing 4/03 at 102 AAA 804,860
Revenue Bonds, 1993 Series A, 5.875%, 10/01/17
Mount Clemens Housing Corporation, Michigan, Multifamily Housing
Revenue Refunding Bonds (FHA-Insured Mortgage Loan - Section 8
Assisted Project), Series 1992A:
1,000 6.600%, 6/01/13 6/03 at 102 AAA 1,036,530
1,500 6.600%, 6/01/22 6/03 at 102 AAA 1,552,035
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.0%
85 Michigan State Housing Development Authority, Single Family 6/05 at 102 AA+ 86,234
Mortgage Revenue Bonds, Series 1995A, 6.800%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.6%
1,000 Central Montcalm Public Schools, Counties of Montcalm and 5/09 at 100 AAA 1,045,360
Ionia, Michigan, School Building and Site Bonds (General
Obligation - Unlimited Tax), Series 1999, 5.750%, 5/01/24
730 Clarkston Community Schools, Oakland County, Michigan, 5/03 at 102 AAA 762,595
School Building and Site and Refunding Bonds, Series 1993,
5.900%, 5/01/16
1,500 School District of the City of Detroit, Wayne County, Michigan, 5/09 at 101 AAA 1,378,080
School Building and Site Improvement Bonds (General
Obligation - Unlimited Tax), Series 1998B, 4.750%, 5/01/28
500 School District of the City of Detroit, Wayne County, Michigan, 5/12 at 100 AAA 518,395
School Building and Site Improvement Bonds (General
Obligation - Unlimited Tax), Series 2001A, 5.500%, 5/01/21
3,000 Dexter Community Schools, Counties of Washtenaw and 5/03 at 102 AAA 3,000,210
Livingston, Michigan, School Building and Site and Refunding
Bonds (General Obligation - Unlimited Tax), Series 1993,
5.000%, 5/01/17
1,000 Durand Area Schools, Shiawasee County, Michigan, General 5/07 at 100 AAA 1,011,160
Obligation Bonds, Series 1997, 5.375%, 5/01/23
3,815 Building Authority, City of East Lansing, Counties of Ingham and 4/11 at 100 AA 3,869,860
Clinton, Michigan, Building Authority Bonds (General
Obligation - Unlimited Tax), Series 2000, 5.375%, 4/01/25
1,240 Milan Area Schools, Counties of Washtenaw and Monroe, 5/10 at 100 AAA 1,318,901
Michigan, School Building and Site Bonds (General
Obligation - Unlimited Tax), 2000 Series A, 5.625%, 5/01/16
1,100 Commonwealth of Puerto Rico, General Obligation Public 7/07 at 101 1/2 A 1,244,408
Improvement Refunding Bonds, Series 1997, 5.750%, 7/01/17
380 Reeths-Puffer Schools, Muskegon County, Michigan, School 5/05 at 101 AAA 401,903
Building and Site and Refunding Bonds, Series 1995,
5.750%, 5/01/15
1,000 Rochester Community School District, Counties of Oakland and 5/10 at 100 AAA 1,060,160
Macomb, Michigan, School Building and Site and Refunding
Bonds (General Obligation - Unlimited Tax), 2000 Series I,
5.750%, 5/01/19
1,500 Romulus Community Schools, Wayne County, Michigan, School 5/09 at 100 AAA 1,668,180
Building and Site Bonds (General Obligation - Unlimited Tax),
Series 1999, 5.750%, 5/01/25
2,500 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100 AAA 2,799,400
School Building and Site Bonds (General Obligation -
Unlimited Tax), Series 2000, 5.800%, 5/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.3%
5,750 City of Detroit, Michigan, Limited Tax Convention Facility 9/03 at 102 AAA 5,910,540
Revenue Refunding Bonds (Cobo Hall Expansion Project),
Series 1993, 5.250%, 9/30/12
1,400 Downtown Development Authority, City of Detroit, Michigan, 7/08 at 100 AAA 1,301,776
Tax Increment Refunding Bonds (Development Area No. 1
Projects), Series 1998A, 4.750%, 7/01/25
7,000 Detroit-Wayne County Stadium Authority, Michigan, Building 2/07 at 102 AAA 7,017,850
Authority Stadium Bonds (General Obligation - Limited Tax),
Series 1997, 5.250%, 2/01/27
29
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 5,000 Michigan Municipal Bond Authority, State Revolving Fund 10/09 at 101 AAA $ 5,196,900
Revenue Bonds (Drinking Water Revolving Fund), Series 1999,
5.500%, 10/01/21
1,500 State Building Authority, Michigan, Revenue Bonds (Facilities 10/10 at 100 AA+ 1,534,410
Program), 2000 Series I, 5.375%, 10/15/20
State Building Authority, Michigan, Revenue Refunding Bonds
(Facilities Program), 2001 Series I:
2,720 5.500%, 10/15/19 10/11 at 100 AA+ 2,837,178
3,500 5.000%, 10/15/24 10/11 at 100 AA+ 3,418,485
1,000 State of Michigan, Certificates of Participation (New Center 9/11 at 100 AAA 1,017,940
Development, Inc.), Series 2001, 5.375%, 9/01/21
2,275 State of Michigan, Comprehensive Transportation Bonds, 5/02 at 100 AA 2,303,005
Series 1992A, 5.750%, 5/15/12
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100 A 953,920
Revenue Bonds, 1996 Series Y, 5.000%, 7/01/36
3,615 Saginaw-Midland Municipal Water Supply Corporation, 9/02 at 101 1/2 A2 3,675,262
Michigan, Water Supply System Revenue Bonds (General
Obligation - Limited Tax), Series 1993, 5.250%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.1%
1,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds 6/03 at 102 BB 795,550
(American Airlines, Inc. Project), 1993 Series A, 6.300%,
6/01/23 (Alternative Minimum Tax)
2,000 Charter County of Wayne, Michigan, Airport Revenue Bonds 12/08 at 101 AAA 1,891,500
(Detroit Metropolitan Airport), Series 1998A, 5.000%,
12/01/28 (Alternative Minimum Tax)
1,000 Charter County of Wayne, Michigan, Airport Revenue 12/08 at 101 AAA 944,710
Bonds (Detroit Metropolitan Airport), Series 1998B, 4.875%,
12/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 6.6%
3,000 Board of Regents of Eastern Michigan University, Michigan, 12/06 at 101 AAA 3,322,650
General Revenue Bonds, Series 1997, 5.500%, 6/01/27
(Pre-refunded to 12/01/06)
2,000 Board of Control of Ferris State University, Michigan, General 10/03 at 102 AAA 2,176,060
Revenue Bonds, Series 1993, 6.250%, 10/01/19
(Pre-refunded to 10/01/03)
1,950 Michigan Municipal Bond Authority, State Revolving Fund No Opt. Call AAA 2,107,131
Revenue Bonds, Series 1994, 7.000%, 10/01/03
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/03 at 102 AAA 3,167,250
Refunding Bonds (St. John Hospital), Series 1993A,
6.000%, 5/15/13
620 Reeths-Puffer Schools, Muskegon County, Michigan, School 5/05 at 101 AAA 679,737
Building and Site and Refunding Bonds, Series 1995, 5.750%,
5/01/15 (Pre-refunded to 5/01/05)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.1%
4,020 Michigan Public Power Agency, Refunding Revenue Bonds 1/03 at 102 AA- 4,032,181
(Belle River Project), 1993 Series A, 5.250%, 1/01/18
1,000 Michigan Public Power Agency, Project Revenue Bonds 1/12 at 100 AAA 999,260
(Combustion Turbine No. 1), 2001 Series A, 5.250%, 1/01/27
1,000 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 1,051,890
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,500 Michigan Strategic Fund, Limited Obligation Refunding Revenue 6/03 at 102 AAA 3,737,475
Bonds (Consumers Power Company Project), Collateralized
Series 1993B, 5.800%, 6/15/10
3,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue No Opt. Call Aaa 3,072,690
Bonds (The Detroit Edison Company), Series 1995CC
Remarketing, 4.850%, 9/01/30 (Mandatory put 9/01/11)
5,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/11 at 100 A- 4,975,000
Bonds (The Detroit Edison Company Pollution Control Project),
Collateralized Series 2001C, 5.450%, 9/01/29
1,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102 AAA 1,017,040
Bonds (The Detroit Edison Company Pollution Control Project),
Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax)
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
Monroe County, Michigan, Pollution Control Revenue Bonds (The
Detroit Edison Company Project), Series CC-1992:
$ 2,500 6.550%, 6/01/24 (Alternative Minimum Tax) 6/03 at 102 AAA $ 2,666,150
1,500 6.550%, 9/01/24 (Alternative Minimum Tax) 9/03 at 102 AAA 1,611,255
6,000 Monroe County, Michigan, Pollution Control Revenue Bonds No Opt. Call AAA 6,569,520
(The Detroit Edison Company Project), Series 1994-A, 6.350%,
12/01/04 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.3%
2,000 City of Detroit, Michigan, Sewage Disposal System Revenue 7/07 at 101 AAA 2,059,380
Bonds, Series 1997-A, 5.500%, 7/01/20
3,755 City of Detroit, Michigan, Sewage Disposal System Revenue 7/03 at 102 AAA 3,925,740
and Revenue Refunding Bonds, Series 1993-A, 5.700%, 7/01/13
2,000 City of Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101 AAA 2,255,980
Bonds, Series 1999-A, 5.875%, 7/01/27
1,500 City of Detroit, Michigan, Sewage System Disposal Revenue No Opt. Call AAA 1,603,020
Bonds, Second Lien Series 20001B, 5.500%, 7/01/29
2,700 City of Detroit, Michigan, Senior Lien Water Supply System 7/11 at 100 AAA 2,697,812
Revenue Bonds, Series 2001-A, 5.250%, 7/01/33
4,000 City of Detroit, Michigan, Senior Lien Water Supply System 1/10 at 101 AAA 4,472,640
Revenue Bonds, Series 1999-A, 5.750%, 7/01/26
1,000 City of Grand Rapids, Michigan, Sanitary Sewer System 7/08 at 101 AAA 923,590
Improvement and Refunding Revenue Bonds, Series 1998A,
4.750%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 166,925 Total Investments (cost $162,221,667) - 98.8% 171,703,359
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,056,899
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $173,760,258
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
31
Nuveen Michigan Dividend Advantage Municipal Fund (NZW)
Portfolio of
Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.5%
$ 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100 Aaa $ 1,118,858
Obligation Revenue Bonds (Kettering University Refunding),
Series 2001, 5.000%, 9/01/26
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.3%
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds 7/11 at 101 AA 986,390
(Spectrum Health), Series 2001A, 5.250%, 1/15/21
1,200 Michigan State Hospital Finance Authority, Hospital Revenue 1/06 at 102 Baa3 1,189,704
Bonds (Sinai Hospital Refunding), Series 1995, 6.625%, 1/01/16
600 Michigan State Hospital Finance Authority, Hospital Revenue 5/06 at 102 A+ 581,490
and Refunding Bonds (Henry Ford Health System),
Series 1995A, 5.250%, 11/15/20
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101 A1 975,360
Refunding Bonds (Sparrow Obligated Group), Series 2001,
5.625%, 11/15/31
1,800 Hospital Finance Authority, City of Royal Oak, Michigan, 11/11 at 100 AAA 1,774,494
Hospital Revenue Bonds (William Beaumont Hospital),
Series 2001M, 5.250%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.7%
1,700 Michigan State Housing Development Authority, Limited 8/12 at 102 Aaa 1,653,811
Obligation Multifamily Housing Revenue Bonds (GNMA
Collateralized Program - Cranbrook Apartments), Series 2001A,
5.400%, 2/20/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.8%
1,250 Michigan State Housing Development Authority, Single Family 1/11 at 100 AAA 1,259,300
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 35.7%
1,000 School District of the City of Detroit, Wayne County, Michigan, 5/09 at 101 AAA 918,720
School Building and Site Improvement Bonds (General
Obligation - Unlimited Tax), Series 1998B, 4.750%, 5/01/28
1,000 School District of the City of Detroit, Wayne County, 5/12 at 100 AAA 1,036,790
Michigan, School Building and Site Improvement Bonds
(General Obligation - Unlimited Tax), Series 2001A,
5.500%, 5/01/21
1,000 School District of the City of Garden, Wayne County, 5/11 at 100 AAA 973,210
Michigan, General Obligation Bonds, Refunding Series 2001,
5.000%, 5/01/26
1,300 Harper Creek Community School District, Calhoun County, 5/11 at 100 AAA 1,280,513
Michigan, General Obligation Bonds, Series 2001, 5.125%,
5/01/31
2,200 Huron School District, Counties of Wayne and Monroe, Michigan, 5/11 at 100 AAA 2,231,834
General Obligation Bonds, Series 2001, 5.375%, 5/01/26
1,500 Huron Valley School District, Counties of Oakland and Livingston, 11/11 at 100 AAA 1,458,375
Michigan, General Obligation Bonds, Series 2001, 5.000%,
5/01/27
1,050 Lawton Community Schools, Van Buren County, Michigan, 11/11 at 100 AAA 1,088,808
General Obligation Bonds, Series 2001, 5.500%, 5/01/21
1,000 Manchester Community Schools, Michigan, General Obligation 5/11 at 100 AAA 966,380
Bonds, Series 2001, 5.000%, 5/01/31
1,000 Portland Public Schools, Ionia County, Michigan, General 11/11 at 100 AAA 971,660
Obligation Bonds, Series 2001, 5.000%, 5/01/29
1,000 Commonwealth of Puerto Rico, General Obligation Public 7/11 at 100 A 963,210
Improvement Bonds of 2002, Series A, 5.125%, 7/01/31
1,000 Rochester Community School District, Counties of Oakland and 11/11 at 100 AAA 1,035,400
Macomb, Michigan, General Obligation Bonds, 2001 Series II,
5.500%, 5/01/22
500 Building Authority, City of Warren, Michigan, General Obligation - 11/10 at 100 AAA 500,760
Limited Tax Bonds, Series 2001, 5.150%, 11/01/22
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Washtenaw County, Michigan, General Obligation - Limited Tax
Bonds (Sylvan Township Water and Wastewater System), Series
2001:
$ 500 5.000%, 5/01/19 No Opt. Call AAA $ 497,390
800 5.000%, 5/01/20 No Opt. Call AAA 791,816
1,300 Willow Run Community Schools, Washtenaw County, Michigan, 5/11 at 100 AAA 1,283,295
General Obligation Bonds, Series 2001, 5.000%, 5/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.5%
400 Tax Increment Finance Authority, City of Dearborn Heights, 10/10 at 100 AAA 386,556
Wayne County, Michigan, Tax Increment Bonds (General
Obligation - Limited Tax)(Police and Courthouse
Facility), Series 2001-A, 5.000%, 10/01/30
1,300 Building Authority, City of Grand Rapids, Kent County, Michigan, 10/11 at 100 AAA 1,287,338
General Obligation - Limited Tax Bonds, Series 2001, 5.125%,
10/01/26
1,000 Michigan Municipal Bond Authority, State Revolving Fund 10/10 at 101 AAA 1,098,090
Revenue Bonds (Drinking Water Revolving Fund), Series 2000,
5.875%, 10/01/17
1,205 State Building Authority, Michigan, Revenue Refunding Bonds 10/11 at 100 AA+ 1,176,936
(Facilities Program), 2001 Series I, 5.000%, 10/15/24
2,000 State of Michigan, State Trunk Line Fund Bonds, Series 2001A, 11/11 at 100 AAA 1,949,640
5.000%, 11/01/25
1,450 Muskegon County, Michigan, Wastewater Management 7/11 at 100 AAA 1,411,068
System No. 2 Revenue Bonds (General Obligation - Limited
Tax), Series 2002, 5.000%, 7/01/26
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call A- 1,107,890
Appropriation Bonds, 2002 Series E, 6.000%, 8/01/26
1,750 Charter County of Wayne, Michigan, Airport Hotel Revenue Bonds 12/11 at 101 AAA 1,681,470
(General Obligation - Limited Tax) (Detroit Metropolitan
Airport), Series 2001A, 5.000%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.7%
1,750 Charter County of Wayne, Michigan, Airport Revenue Bonds 12/08 at 101 AAA 1,655,063
(Detroit Metropolitan Airport), Series 1998A, 5.000%,
12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 1.2%
500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 519,135
Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.7%
1,235 Michigan Public Power Agency, Project Revenue Bonds 1/12 at 100 AAA 1,236,359
(Combustion Turbine No. 1), 2001 Series A, 5.250%, 1/01/24
2,215 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/11 at 100 A- 2,191,364
Bonds (The Detroit Edison Company Pollution Control Project),
Collateralized Series 1999C (Fixed Rate Conversion), 5.650%,
9/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.8%
1,000 City of Detroit, Michigan, Sewage System Disposal Revenue No Opt. Call AAA 1,068,680
Bonds, Second Lien Series 2001B, 5.500%, 7/01/29
City of Detroit, Michigan, Senior Lien Water Supply System
Revenue Bonds, 2001 Series A:
1,000 5.000%, 7/01/30 7/11 at 100 AAA 966,840
1,000 5.250%, 7/01/33 7/11 at 100 AAA 999,190
------------------------------------------------------------------------------------------------------------------------------------
$ 44,655 Total Investments (cost $44,452,489) - 98.9% 44,273,187
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 513,448
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 44,786,635
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
33
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of
Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.0%
$ 2,210 Ohio Water Development Authority, Revenue Bonds (USA Waste 3/02 at 102 N/R $ 2,258,487
Services), Series 1992, 7.750%, 9/01/07 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.4%
3,065 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 3,179,202
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.4%
825 Bowling Green State University, Ohio, General Receipts Bonds, 6/02 at 101 A 846,623
Series 1991, 6.700%, 6/01/07
3,665 State of Ohio, Education Loan Revenue Bonds (Supplemental 6/07 at 102 AAA 3,770,186
Student Loan Program), Series 1997A1, 5.850%, 12/01/19
(Alternative Minimum Tax)
1,000 Ohio Higher Educational Facility Commission, Higher Educational 12/04 at 102 AAA 1,067,950
Facility Revenue Bonds (University of Dayton - 1994 Project),
5.800%, 12/01/14
2,400 Ohio Higher Educational Facility Commission, Higher 12/03 at 102 AAA 2,638,200
Educational Facility Mortgage Revenue Bonds (University
of Dayton - 1992 Project), 6.600%, 12/01/17
1,200 Ohio Higher Educational Facility Commission, Higher 9/06 at 101 N/R 1,236,732
Educational Facility Revenue Bonds (University of Findlay -
1996 Project), 6.125%, 9/01/16
1,200 Ohio State University, General Receipts Bonds, Series 2002, 12/12 at 100 AA 1,185,456
5.125%, 12/01/31
1,575 The Ohio State University, General Receipts Bonds, Series 1992-A1, 12/02 at 102 AA 1,659,011
5.875%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 8.4%
2,675 Clermont County, Ohio, Hospital Facilities Revenue Refunding 1/03 at 102 AAA 2,754,153
Bonds (Mercy Health System), Series 1993A, 5.875%, 1/01/15
1,000 Cuyahoga County, Ohio, Hospital Improvement and Refunding 2/07 at 102 AAA 1,041,790
Revenue Bonds (MetroHealth System Project), Series 1997,
5.625%, 2/15/17
1,170 Cuyahoga County, Ohio, Hospital Facilities Revenue Bonds 2/03 at 102 Aa3 1,209,207
(Health Cleveland, Inc. - Fairview General Hospital Project),
Series 1993, 6.300%, 8/15/15
Franklin County, Ohio, Hospital Refunding and Improvement
Revenue Bonds (The Children's Hospital Project), 1996 Series A:
1,000 5.750%, 11/01/20 11/06 at 101 Aa2 1,025,690
1,500 5.875%, 11/01/25 11/06 at 101 Aa2 1,542,495
1,500 Franklin County, Ohio, Hospital Revenue Refunding and 11/02 at 102 Aa2 1,581,450
Improvement Bonds (The Children's Hospital Project),
1992 Series A, 6.600%, 5/01/13
2,500 Marion County, Ohio, Hospital Refunding and Improvement 5/06 at 102 BBB+ 2,580,025
Revenue Bonds (The Community Hospital), Series 1996,
6.375%, 5/15/11
1,500 Montgomery County, Ohio, Hospital Facilities Revenue 4/06 at 102 AAA 1,560,810
Refunding and Improvement Bonds (Kettering Medical Center),
Series 1996, 5.625%, 4/01/16
2,500 Richland County, Ohio, Hospital Facilities Improvement Revenue 11/10 at 101 A- 2,586,450
Bonds (MedCentral Health System Obligated Group),
Series 2000B, 6.375%, 11/15/30
1,500 City of Steubenville, Ohio, Hospital Facilities Revenue 10/10 at 100 A3 1,567,815
Refunding and Improvement Bonds (Trinity Health System),
Series 2000, 6.375%, 10/01/20
1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds 10/11 at 101 AA 1,767,233
(Union Hospital Project), Series 2001, 5.750%, 10/01/21
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.2%
$ 1,385 Clermont County, Ohio, Mortgage Revenue Bonds (GNMA 8/03 at 103 Aaa $ 1,399,764
Collateralized - S.E.M. Villa II Project), Series 1994-A,
5.950%, 2/20/30
1,435 Cuyahoga County, Ohio, Multifamily Housing Revenue Bonds 6/08 at 105 Aaa 1,502,904
(Water Street Associates Project), Series 1997, 6.150%,
12/20/26 (Alternative Minimum Tax)
Cuyahoga County, Ohio, Multifamily Housing Mortgage Revenue
Bonds (GNMA Collateralized - Longwood Phase One Associates L.P.
Project), 2001 Series A:
2,475 5.350%, 1/20/21 7/11 at 102 Aaa 2,463,269
2,250 5.450%, 1/20/31 7/11 at 102 Aaa 2,230,515
985 Franklin County, Ohio, Multifamily Housing Mortgage Revenue 1/05 at 103 Aa 963,941
Bonds (FHA-Insured Mortgage Loan - Hamilton Creek
Apartments Project), Series 1994A, 5.550%, 7/01/24
(Alternative Minimum Tax)
5,200 Hamilton County, Ohio, Multifamily Housing Revenue Bonds 1/07 at 102 AAA 5,215,288
(Huntington Meadows Project), Series 1997, 5.700%, 1/01/27
(Alternative Minimum Tax)
4,060 Lucas Northgate Housing Development Corporation, Ohio, 1/04 at 102 Aaa 4,140,429
Mortgage Revenue Refunding Bonds (FHA- Insured Mortgage
Loan - Northgate Apartments Section 8 Assisted Project),
Series 1999A, 6.000%, 7/01/24
3,265 Ohio Housing Finance Agency, Multifamily Housing Revenue 12/09 at 100 AAA 3,385,283
Bonds (Timber Lake Apartments Project), Series 1999C,
6.150%, 12/01/24 (Alternative Minimum Tax)
4,315 Ohio Capital Corporation for Housing, Mortgage Revenue 2/09 at 102 Aa2 4,474,310
Refunding Bonds (FHA-Insured Mortgage Loans - Section 8
Assisted Projects), Series 1999G, 5.950%, 2/01/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.5%
2,970 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/09 at 100 Aaa 3,128,776
Bonds (Mortgage-Backed Securities Program), 2000 Series A1,
6.350%, 9/01/31 (Alternative Minimum Tax)
2,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 2,080,080
Bonds (Mortgage-Backed Securities Program), 2000 Series F,
5.625%, 9/01/16
3,075 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/07 at 102 Aaa 3,131,519
Bonds (Mortgage-Backed Securities Program), 1996 Series B-3,
5.750%, 9/01/28 (Alternative Minimum Tax)
4,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/08 at 102 Aaa 3,999,800
Bonds (Mortgage-Backed Securities Program), 1997 Series B,
5.400%, 9/01/29 (Alternative Minimum Tax)
5,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/08 at 101 1/2 AAA 4,999,750
Bonds, 1998 Series A1, 5.300%, 9/01/19 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0%
1,365 Franklin County, Ohio, Healthcare Facilities Revenue Bonds 7/03 at 102 N/R 1,262,748
(Ohio Presbyterian Retirement Services), Series 1993,
6.500%, 7/01/23
1,000 Marion County, Ohio, Healthcare Facilities Refunding and 11/03 at 102 BBB- 972,110
Improvement Revenue Bonds (United Church Homes, Inc.
Project), Series 1993, 6.300%, 11/15/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.4%
1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102 Aaa 1,036,700
Obligation Bonds, Series 2000, 5.500%, 12/01/22
Berea City School District, Ohio, School Improvement Bonds
(General Obligation - Unlimited Tax), Series 1993:
650 7.500%, 12/15/06 12/03 at 102 AAA 726,830
680 7.450%, 12/15/07 12/03 at 102 AAA 759,757
1,750 Brecksville-Broadview Heights City School District, Ohio, 12/06 at 102 AAA 1,983,573
School Improvement Bonds (General Obligation - Unlimited
Tax), Series 1996, 6.500%, 12/01/16
1,000 Cincinnati City School District, Hamilton County, Ohio, School 12/11 at 100 AAA 1,057,030
Improvement Bonds (General Obligation - Limited Tax),
Series 2001, 5.375%, 12/01/15
1,000 City of Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100 Aa1 994,500
Bonds, Series 2000A, 5.000%, 12/01/20
1,300 Franklin County, Ohio, Refunding Bonds (General Obligation - 12/08 at 102 AAA 1,339,520
Limited Tax), Series 1993, 5.375%, 12/01/20
35
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,000 Garfield Heights City School District, Cuyahoga County, Ohio, 12/11 at 100 Aaa $ 1,956,700
General Obligation School Improvement Bonds, Series 2001,
5.000%, 12/15/26
1,505 Greater Cleveland Regional Transit Authority, Ohio, General 12/06 at 101 Aaa 1,677,593
Obligation Capital Improvement Bonds, Series 1996,
5.650%, 12/01/16
1,000 Hilliard City School District, Ohio, General Obligation School 12/10 at 101 AAA 1,061,220
Improvement Bonds, Series 2000, 5.750%, 12/01/24
2,000 Lakota Local School District, Butler County, Ohio, School 6/11 at 100 Aaa 1,988,740
Improvement and Refunding Bonds (General Obligation -
Unlimited Tax), Series 2001, 5.125%, 12/01/26
1,000 Logan Hocking Local School District, Counties of Hocking, Perry 12/11 at 100 Aaa 973,690
and Vinton, Ohio, Construction and Improvement Bonds,
Series 2001, 5.000%, 12/01/29
1,750 London City School District, Ohio, General Obligation School 12/11 at 100 Aaa 1,703,958
Facilities Construction and Improvement Bonds, Series 2001,
5.000%, 12/01/29
2,500 Louisville City School District, Ohio, General Obligation Bonds, 12/11 at 100 Aaa 2,435,675
Series 2001, 5.000%, 12/01/29
2,335 Milford Exempted Village School District, Ohio, General 12/11 at 100 Aaa 2,310,529
Obligation Bonds, Series 2001, 5.125%, 12/01/30
1,260 Morgan Local School District, Counties of Morgan, Muskingum 12/10 at 101 AA- 1,339,153
and Washington, Ohio, School Improvement Bonds (General
Obligation - Unlimited Tax), Series 2000, 5.750%, 12/01/22
North Canton City School District, Ohio, School Improvement
Bonds (General Obligation - Unlimited Tax), Series 1994:
650 9.750%, 12/01/03 No Opt. Call AAA 738,719
715 9.700%, 12/01/04 No Opt. Call AAA 853,145
2,720 Pickerington Local School District, Counties of Fairfield and 12/11 at 100 AAA 2,651,565
Franklin, Ohio, General Obligation School Facilities Construction
and Improvement Bonds, Series 2001, 5.000%, 12/01/28
1,500 Plain Local School District, Counties of Franklin and Licking, Ohio, 12/10 at 100 Aaa 1,628,805
Various Purpose Bonds, Series 2000, 6.000%, 12/01/20
1,100 Plain Local School District, Counties of Franklin and Licking, 6/12 at 100 Aaa 1,162,535
Ohio, Various Purpose Bonds (General Obligation - Unlimited
Tax), Series 2002, 5.500%, 12/01/17 (WI, settling 2/07/02)
1,445 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100 AAA 1,410,696
5.000%, 12/01/27
2,000 Commonwealth of Puerto Rico, General Obligation Public 7/06 at 101 1/2 A 2,009,260
Improvement Bonds, Series 1996, 5.400%, 7/01/25
1,300 Commonwealth of Puerto Rico, General Obligation Public 7/07 at 101 1/2 A 1,470,664
Improvement Refunding Bonds, Series 1997, 5.750%, 7/01/17
1,000 Revere Local School District, Ohio, School Improvement Bonds 12/03 at 102 AAA 1,072,020
(General Obligation - Unlimited Tax), Series 1993,
6.000%, 12/01/16
2,870 City of Strongsville, Ohio, Various Purpose Improvement Bonds 12/06 at 102 Aa2 3,054,369
(General Obligation - Limited Tax), Series 1996, 5.950%,
12/01/21
2,000 City of Strongsville, Ohio, General Obligation Bonds, 12/11 at 100 Aaa 1,981,240
Series 2001, 5.000%, 12/01/21
1,135 City of Toledo, Ohio, Various Purpose Improvement Bonds No Opt. Call AAA 1,235,709
(General Obligation - Limited Tax), Series 1994, 7.000%,
12/01/03
1,000 Upper Arlington City School District, Ohio, General Obligation 12/06 at 101 AAA 1,008,170
Improvement Bonds, Series 1996, 5.250%, 12/01/22
2,000 Board of Education, Wayne Local School District, Warren 12/06 at 101 AAA 2,126,280
County, Ohio, School Improvement Bonds (General
Obligation - Unlimited Tax), Series 1996, 6.100%, 12/01/24
3,000 Board of Education, West Clermont Local School District, 12/05 at 100 AAA 3,225,780
Clermont County, Ohio, School Improvement Bonds (General
Obligation - Unlimited Tax), Series 1995, 6.000%, 12/01/18
2,000 Westerville City School District, Counties of Franklin and 6/11 at 100 AAA 1,953,360
Delaware, Ohio, General Obligation Various Purpose Bonds,
Series 2001, 5.000%, 12/01/27
1,000 City of Westlake, Ohio, General Obligation Various Purpose 12/08 at 101 Aaa 1,055,500
Improvement and Refunding Bonds, Series 1997, 5.550%,
12/01/17
1,820 Worthington City School District, Franklin County, Ohio, Refunding 6/02 at 102 AAA 1,885,101
Bonds (General Obligation - Unlimited Tax), 6.375%, 12/01/12
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 4.3%
$ 1,250 City of Columbus, Ohio, Tax Increment Financing Bonds (Easton 6/09 at 101 AAA $ 1,196,788
Project), Series 1999, 4.875%, 12/01/24
7,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series B, No Opt. Call Aaa 1,615,810
0.000%, 12/01/28
New Albany Community Authority, Ohio, Community Facilities
Revenue Bonds, Refunding Series 2001B:
1,000 5.500%, 10/01/15 4/12 at 100 AAA 1,070,270
1,000 5.500%, 10/01/17 4/12 at 100 AAA 1,054,490
1,000 Ohio Building Authority, State Facilities Bonds (Juvenile 10/02 at 102 AA 1,049,140
Correctional Building Fund Projects), 1992 Series B, 6.000%,
10/01/12
3,000 Ohio Building Authority, State Facilities Bonds (Adult Correctional 10/03 at 102 AA 3,257,460
Building Fund Projects), 1993 Series A, 6.125%, 10/01/12
745 Department of Transportation, Ohio, Certificates of Participation 4/02 at 101 AA 750,029
(Rickenbacker Port Authority Improvements), 6.125%, 4/15/15
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 0.2%
500 Franklin County, Ohio, Revenue Bonds (Online Computer Library 4/03 at 100 N/R 504,365
Center, Inc. Project), Series 1993, 6.000%, 4/15/13
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.1%
3,000 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101 AAA 2,908,440
Series 2000A, 5.000%, 1/01/31
3,430 City of Cleveland, Ohio, Parking Facilities Refunding Revenue 9/06 at 102 AAA 3,508,959
Bonds, Series 1996, 5.500%, 9/15/22
Columbus Municipal Airport Authority, Ohio, Airport Improvement
Revenue Bonds (Port Columbus International Airport Project),
Series 1994A:
830 5.950%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102 AAA 871,193
1,000 6.000%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102 AAA 1,048,120
1,500 City of Dayton, Ohio, Special Facilities Revenue Refunding Bonds 2/08 at 102 BB+ 1,128,705
(Emery Air Freight Corporation and Emery Worldwide Airlines,
Inc. - Guarantors), Series 1998A, 5.625%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.6%
2,000 City of Cleveland, Ohio, Public Power System First Mortgage 11/04 at 102 AAA 2,279,680
Revenue Bonds, Series 1994A, 7.000%, 11/15/24 (Pre-refunded
to 11/15/04)
3,960 City of Cleveland, Ohio, Waterworks Improvement and Refunding 1/06 at 102 AAA 4,394,887
Revenue Bonds, First Mortgage Series 1996-H, 5.750%,
1/01/26 (Pre-refunded to 1/01/06)
1,950 Columbus City School District, Franklin County, Ohio, School 12/02 at 102 AAA 2,070,393
Building Renovation and Improvement Bonds (General
Obligation - Unlimited Tax), Series 1992, 6.650%, 12/01/12
(Pre-refunded to 12/01/02)
1,000 Dublin City School District, Counties of Franklin, Delaware and 12/02 at 102 AAA 1,058,030
Union, Ohio, Various Purpose School Building Construction
and Improvement Bonds (General Obligation - Unlimited Tax),
6.200%, 12/01/19 (Pre-refunded to 12/01/02)
2,480 Franklin County, Ohio, First Mortgage Revenue Bonds (Online 6/02 at 103 AAA 2,823,852
Computer Library Center, Inc. Project), Series 1979,
7.500%, 6/01/09
3,250 City of Garfield Heights, Ohio, Hospital Improvement and 11/02 at 102 Aa3*** 3,442,270
Refunding Revenue Bonds (Marymount Hospital Project),
Series 1992B, 6.650%, 11/15/11 (Pre-refunded to 11/15/02)
3,000 Kent State University, Ohio, General Receipts Bonds, Series 1992, 5/02 at 102 AAA 3,097,470
6.500%, 5/01/22 (Pre-refunded to 5/01/02)
2,100 Lakota Local School District, Butler County, Ohio, School 12/05 at 100 AAA 2,348,934
Improvement Bonds (General Obligation - Unlimited Tax),
Series 1994, 6.250%, 12/01/14 (Pre-refunded to 12/01/05)
1,000 City of Newark, Ohio, Water System Improvement Bonds (General 12/03 at 102 AAA 1,088,520
Obligation - Limited Tax), 6.000%, 12/01/18 (Pre-refunded
to 12/01/03)
1,000 Ohio Water Development Authority, Water Development 6/05 at 102 AAA 1,112,620
Revenue Bonds, 1995 Fresh Water Series, 5.900%,
12/01/21 (Pre-refunded to 6/01/05)
2,500 Commonwealth of Puerto Rico, General Obligation Public 7/02 at 101 1/2 AAA 2,591,000
Improvement Bonds, Series 1992, 6.600%, 7/01/13
(Pre-refunded to 7/01/02)
37
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 1,400 Reynoldsburg City School District, Ohio, General Obligation 12/02 at 102 AAA $ 1,485,274
School Building Construction and Improvement Bonds, 6.550%,
12/01/17 (Pre-refunded to 12/01/02)
1,000 Sylvania City School District, Ohio, General Obligation - 12/05 at 101 AAA 1,111,280
Unlimited Tax Bonds, Series 1995, 5.800%, 12/01/15
(Pre-refunded to 12/01/05)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.6%
1,250 City of Hamilton, Ohio, Electric System Mortgage Revenue Bonds, 10/02 at 102 AAA 1,306,113
1992 Series B, 6.300%, 10/15/25
Ohio Air Quality Development Authority, Air Quality Development
Revenue Refunding Bonds (JMG Funding Limited Partnership
Project), Series 1994:
2,000 6.375%, 1/01/29 (Alternative Minimum Tax) 10/04 at 102 AAA 2,187,340
4,000 6.375%, 4/01/29 (Alternative Minimum Tax) 10/04 at 102 AAA 4,374,680
3,000 Ohio Air Quality Development Authority, Air Quality Development 4/07 at 102 AAA 3,068,760
Revenue Bonds (JMG Funding Limited Partnership Project),
Series 1997, 5.625%, 1/01/23 (Alternative Minimum Tax)
2,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102 N/R 1,831,920
Revenue Bonds (Bay Shore Power Project), Convertible
Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.0%
City of Cincinnati, Ohio, Water System Revenue Bonds, Series 2001:
1,000 5.500%, 12/01/17 6/11 at 100 AA+ 1,052,480
6,010 5.000%, 12/01/18 6/11 at 100 AA+ 6,025,145
3,000 5.000%, 12/01/19 6/11 at 100 AA+ 2,994,540
1,000 5.000%, 12/01/20 6/11 at 100 AA+ 994,500
1,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage No Opt. Call AAA 1,071,470
Refunding Revenue Bonds, Series G, Series 1993, 5.500%,
1/01/21
1,000 City of Cleveland, Ohio, Waterworks Improvement and Refunding 1/08 at 101 AAA 973,740
Revenue Bonds, 1998 Series I, 5.000%, 1/01/28
40 City of Cleveland, Ohio, Waterworks Improvement and Refunding 1/06 at 102 AAA 41,570
Revenue Bonds, First Mortgage Series 1996-H, 5.750%, 1/01/26
2,500 City of Columbus, Ohio, Sewerage System Revenue Refunding 6/02 at 102 Aa2 2,587,975
Bonds, Series 1992, 6.250%, 6/01/08
2,110 Hamilton County, Ohio, Sewer System Improvement Revenue 6/10 at 101 AAA 2,232,359
Bonds (Metropolitan Sewer District of Greater Cincinnati),
Series 2000A, 5.750%, 12/01/25
1,000 Montgomery County, Ohio, Water Revenue Bonds (Greater 11/02 at 102 AAA 1,052,110
Moraine Beavercreek Sewer District), Series 1992,
6.250%, 11/15/17
2,000 Northeast Ohio Regional Sewer District, Wastewater Improvement 11/05 at 101 AAA 2,114,740
Revenue Refunding Bonds, Series 1995, 5.600%, 11/15/16
3,000 Ohio Water Development Authority, Water Development Revenue 12/11 at 100 AAA 2,937,210
Bonds, Fresh Water Series 2001A, 5.000%, 12/01/25
1,250 City of Oxford, Ohio, Water Supply System Mortgage Revenue 12/02 at 102 AAA 1,310,970
Refunding Bonds, Series 1992, 6.000%, 12/01/14
2,000 Southwest Regional Water District, Ohio, Waterworks System 12/05 at 101 AAA 2,167,780
Revenue Bonds, Series 1995, 6.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
$ 223,510 Total Investments (cost $216,663,468) - 98.1% 225,470,918
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 4,478,322
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $229,949,240
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
38
Nuveen Ohio Dividend Advantage Municipal Fund (NXI)
Portfolio of
Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.1%
$ 1,000 State of Ohio, Higher Educational Facilities Revenue Bonds 12/10 at 101 AAA $ 1,032,510
(University of Dayton - 2000 Project), 5.500%, 12/01/25
2,000 Ohio Higher Educational Facility Commission, Higher 11/11 at 101 AA 1,991,280
Educational Facility Revenue Bonds (Denison University -
2001 Project), 5.200%, 11/01/26
3,150 The Student Loan Funding Corporation, City of Cincinnati, Ohio, 7/02 at 100 N/R 3,171,515
Student Loan Subordinated Revenue Refunding Bonds,
Series 1992D, 6.600%, 7/01/05 (Alternative Minimum Tax)
2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101 AAA 2,164,240
Series 2001A, 5.750%, 6/01/17
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.0%
1,300 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/03 at 102 Baa1 1,286,896
Hospital Facilities Revenue Bonds (Summa Health System
Project), Series 1993A, 5.500%, 11/15/13
1,950 Lucas County, Ohio, Hospital Revenue Bonds (ProMedica 11/09 at 101 AAA 1,975,019
Healthcare Obligated Group), Series 1999, 5.375%, 11/15/29
Miami County, Ohio, Hospital Facilities Revenue Refunding and
Improvement Bonds (Upper Valley Medical Center), Series 1996A:
2,405 6.250%, 5/15/16 5/06 at 102 BBB+ 2,430,950
2,500 6.375%, 5/15/26 5/06 at 102 BBB+ 2,510,600
City of Parma, Ohio, Hospital Improvement and Refunding Revenue
Bonds (The Parma Community Hospital Association), Series 1998:
2,250 5.250%, 11/01/13 11/08 at 101 A- 2,237,153
2,000 5.375%, 11/01/29 11/08 at 101 A- 1,859,860
1,500 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds 10/03 at 102 Baa1 1,534,830
(Union Hospital Project), Series 1993A, 6.500%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.1%
1,790 Lucas Northgate Housing Development Corporation, Ohio, 1/04 at 102 Aaa 1,827,017
Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage
Loan - Northgate Apartments - Section 8 Assisted Project),
Series 1999A, 5.950%, 7/01/19
2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage (Asbury 4/11 at 102 Aa2 2,894,347
Woods Project), Series 2001A, 5.450%, 4/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.4%
2,460 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 2,550,208
Bonds (Mortgage-Backed Securities Program), 2000 Series C,
6.050%, 3/01/32 (Alternative Minimum Tax)
2,865 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 3,015,986
Bonds (Mortgage-Backed Securities Program), 2000 Series D,
5.450%, 9/01/31 (Alternative Minimum Tax)
2,065 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 2,147,683
Bonds (Mortgage Backed Securities Program), 2000 Series F,
5.625%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.2%
1,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds 7/11 at 101 N/R 993,360
(Ohio Presbyterian Retirement Services), Series 2001A,
7.125%, 7/01/29
1,970 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102 A 1,990,567
Revenue Bonds (Twin Towers), Series 1999A, 5.750%, 10/01/19
39
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.5%
$ 2,440 Bay Village City School District, Ohio, School Improvement Bonds 12/10 at 100 Aa2 $ 2,385,002
(General Obligation - Unlimited Tax), Series 2001, 5.000%,
12/01/25
1,000 City of Centerville, Ohio, Capital Facilities Improvement Bonds 12/11 at 100 Aa3 994,370
(General Obligation - Limited Tax), Series 2001, 5.125%,
12/01/26
2,000 Hamilton Local School District, Franklin County, Ohio, School 12/11 at 100 AAA 1,949,680
Facilities Construction and Improvement Bonds (General
Obligation - Unlimited Tax), 5.000%, 12/01/28
Jackson City School District, Jackson County, Ohio, School
Improvement Bonds (General Obligation - Unlimited Tax), Series
2001:
880 5.500%, 12/01/22 6/11 at 100 Aaa 914,091
935 5.500%, 12/01/23 6/11 at 100 Aaa 968,398
2,000 Lakota Local School District, Butler County, Ohio, School 6/11 at 100 Aaa 1,988,740
Improvement and Refunding Bonds (General Obligation -
Unlimited Tax), Series 2001, 5.125%, 12/01/26
1,000 Nordonia Hills City School District, Ohio, School Improvement 12/10 at 101 AAA 1,028,780
Bonds, Series 2000, 5.450%, 12/01/25
1,850 Swanton Local School District, Fulton County, Ohio, General 12/11 at 101 AAA 1,865,836
Obligation Bonds, Series 2001, 5.250%, 12/01/25
1,275 Sycamore Community School District, Hamilton County, Ohio, 12/09 at 101 AAA 1,255,263
School Improvement Bonds (General Obligation - Unlimited
Tax), Series 1999, 5.000%, 12/01/23
2,000 Tipp City Exempted Village School District, Ohio, School Facilities 6/11 at 100 Aaa 1,963,800
Construction and Improvement Bonds, Series 2001, 5.000%,
12/01/24
1,485 West Chester Township, Butler County, Ohio, Various Purpose 11/11 at 101 Aaa 1,572,021
Refunding Bonds (General Obligation - Limited Tax),
eries 2001, 5.500%, 12/01/17
1,000 West Holmes Local School District, Ohio, School Improvement 6/07 at 101 AAA 1,017,490
Bonds, Series 1997, 5.375%, 12/01/23
2,500 Westerville City School District, Counties of Franklin and 6/11 at 100 AAA 2,441,700
Delaware, Ohio, General Obligation Various Purpose Bonds,
Series 2001, 5.000%, 12/01/27
2,965 City of Worthington, Franklin County, Ohio, Various Purpose 12/11 at 100 AA+ 3,042,209
Bonds (General Obligation - Unlimited Tax), Series 2001,
5.375%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.7%
2,000 State of Ohio, Higher Education Capital Facilities Bonds, 2/11 at 100 AA+ 2,000,720
Series II-2001A, 5.000%, 2/01/20
4,000 Puerto Rico Municipal Finance Agency, 1999 Series A Bonds, 8/09 at 101 AAA 4,457,000
6.000%, 8/01/16
1,400 Virgin Islands Public Finance Authority, Revenue Bonds (Gross 10/10 at 101 BBB- 1,503,264
Receipts Tax Loan Note), Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.5%
700 City of Cleveland, Ohio, Airport Special Revenue Bonds 9/08 at 101 BB- 454,454
(Continental Airlines, Inc. Project), Series 1998, 5.375%,
9/15/27 (Alternative Minimum Tax)
2,000 City of Cleveland, Ohio, Airport Special Revenue Bonds 12/09 at 101 BB- 1,438,400
(Continental Airlines, Inc. Refunding), Series 1999, 5.700%,
12/01/19 (Alternative Minimum Tax)
1,000 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101 AAA 969,480
Series 2000A, 5.000%, 1/01/31
2,000 State of Ohio, Turnpike Revenue Bonds (Issued by the Ohio 2/11 at 100 AA 2,056,580
Turnpike Commission), Series 2001, 5.500%, 2/15/26
1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 1,068,640
Bonds (CSX Transportation, Inc. Project), Series 1992,
6.450%, 12/15/21
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.2%
City of Lebanon, Ohio, Electric System Mortgage Revenue
Bonds, Series 2001:
565 5.500%, 12/01/17 12/10 at 101 AAA 595,900
910 5.500%, 12/01/18 12/10 at 101 AAA 956,128
2,000 Ohio Air Quality Development Authority, Revenue Bonds 6/03 at 102 A3 2,037,020
(Columbus Southern Power Company Project), 1985 Series A,
6.250%, 12/01/20
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 2,000 Ohio Air Quality Development Authority, Air Quality Development 9/05 at 102 A3 $ 2,035,780
Revenue Refunding Bonds (The Dayton Power and Light
Company Project), Series 1995, 6.100%, 9/01/30
2,000 Ohio Air Quality Development Authority, Air Quality 5/09 at 101 AAA 1,984,240
Development Revenue Refunding Bonds (Ohio Power
Company Project), Series C, 5.150%, 5/01/26
1,500 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100 Baa2 1,560,540
Revenue Refunding Bonds (Ohio Edison Company Project),
Series 1999-C, 5.800%, 6/01/16 (Optional put 12/01/04)
3,000 Ohio Water Development Authority, Pollution Control Revenue No Opt. Call BBB- 2,991,780
Refunding Bonds (Ohio Edison Company Project),
Series 1999-A, 4.300%, 6/01/33 (Mandatory put 6/01/03)
1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102 N/R 915,960
Revenue Bonds (Bay Shore Power Project), Convertible
Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.5%
1,700 City of Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100 AA+ 1,707,393
Series 2001, 5.125%, 12/01/21
1,500 Ohio Water Development Authority, Water Development Revenue 12/11 at 100 AAA 1,485,930
Bonds, Fresh Water Series 2001A, 5.000%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 90,695 Total Investments (cost $90,256,072) - 99.2% 91,220,610
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 758,334
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 91,978,944
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
41
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ)
Portfolio of
Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.3%
$ 3,000 State of Ohio, Sewage and Solid Waste Disposal Facilities 11/11 at 100 A+ $ 2,945,520
Revenue Bonds (Anheuser-Busch Project), Series 2001,
5.500%, 11/01/35
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.6%
2,050 Ohio Higher Educational Facilities Commission, Higher 12/11 at 100 A3 2,150,635
Education Facility Revenue Bonds (Wittenberg Universit
Project), Series 2001, 5.500%, 12/01/15
1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101 AAA 972,200
Series 2001A, 5.000%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.0%
1,850 Lorain County, Ohio, Hospital Revenue Refunding and 10/11 at 101 AA- 1,853,497
Improvement Bonds (Catholic Healthcare Partners),
Series 2001A, 5.400%, 10/01/21
2,000 Montgomery County, Ohio, Revenue Bonds (Catholic Health 9/11 at 100 AA- 1,959,740
Initiatives), Series 2001, 5.250%, 9/01/24
2,000 City of Parma, Ohio, Hospital Improvement and Refunding 11/08 at 101 A- 1,859,860
Revenue Bonds (The Parma Community Hospital Association),
Series 1998, 5.375%, 11/01/29
4,000 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101 A- 4,138,320
Bonds (MedCentral Health System Obligated Group),
Series 2000B, 6.375%, 11/15/30
3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds 10/11 at 101 AA 3,787,844
(Union Hospital Project), Series 2001, 5.750%, 10/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.2%
2,850 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/10 at 100 Aaa 2,855,643
Bonds (Mortgage-Backed Securities Program), Series 2001A,
5.500%, 9/01/34
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.0%
2,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102 A 2,019,480
Revenue Bonds (Twin Towers), Series 1999A, 5.800%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.4%
1,860 Fairfield City School District, Ohio, General Obligation Bonds, 12/11 at 100 AAA 1,914,256
Series 2001 Refunding, 5.375%, 12/01/19
1,575 Garaway Local School District, Ohio, School Improvement 6/02 at 101 AAA 1,621,872
Bonds (General Obligation - Unlimited Tax), Series 1990,
7.200%, 12/01/14
1,000 Greater Cleveland Regional Transit Authority, Ohio, General 12/11 at 100 Aaa 1,003,760
Obligation Capital Improvement Bonds, Series 2001A,
5.125%, 12/01/21
2,000 Hamilton Local School District, Franklin County, Ohio, School 12/11 at 100 AAA 1,949,680
Facilities Construction and Improvement Bonds (General
Obligation - Unlimited Tax), 5.000%, 12/01/28
Lebanon City School District, Warren County, Ohio, General
Obligation Bonds, Series 2001:
4,000 5.500%, 12/01/21 12/11 at 100 AAA 4,152,000
2,000 5.000%, 12/01/29 12/11 at 100 AAA 1,948,540
2,000 Louisville City School District, Ohio, General Obligation Bonds, 12/11 at 100 Aaa 1,948,540
Series 2001, 5.000%, 12/01/29
3,000 Milford Exempted Village School District, Ohio, General 12/11 at 100 Aaa 2,968,560
Obligation Bonds, Series 2001, 5.125%, 12/01/30
1,000 State of Ohio, General Obligation Common School Capital 9/11 at 100 AA+ 995,610
Facilities Bonds (Full Faith and Credit), Series 2001B,
5.000%, 9/15/21
1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100 AAA 1,920,036
5.000%, 12/01/25
1,500 City of Strongsville, Ohio, General Obligation Bonds, 12/11 at 100 Aaa 1,485,930
Series 2001, 5.000%, 12/01/21
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.0%
$ 1,000 Deerfield Township, Ohio, Tax Increment Revenue Notes, 12/11 at 101 Aaa $ 979,610
Series 2001B, 5.000%, 12/01/25
1,700 City of Hamilton, Butler County, Ohio, Revenue Bonds (One 11/11 at 101 Aaa 1,663,246
Renaissance Center Acquisition) (General Obligation -
Limited Tax), Series 2001A, 5.000%, 11/01/26
1,000 City of Mason, Warren County, Ohio, Certificates of 12/11 at 100 Aaa 972,900
Participation (Municipal Facilities Project), 5.000%, 12/01/26
1,000 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100 A 1,047,450
Revenue Bonds, Series E Refunding, 5.750%, 7/01/24
(WI, settling 2/07/02)
1,000 Summit County Port Authority, Ohio, Revenue Bonds (Civic 12/11 at 100 AAA 1,031,730
Theatre Project), Series 2001, 5.500%, 12/01/26
1,000 Virgin Islands Public Finance Authority, Revenue Bonds (Gross 10/10 at 101 BBB- 1,073,760
Receipts Tax Loan Note), Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.2%
3,495 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101 AAA 3,545,781
Series 2000A, 5.250%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.7%
2,500 Ohio Air Quality Development Authority, Air Quality 5/09 at 101 AAA 2,480,300
Development Revenue Refunding Bonds (Ohio Power Company
Project), Series C, 5.150%, 5/01/26
1,500 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100 Baa2 1,560,540
Revenue Refunding Bonds (Ohio Edison Company Project),
Series 1999-C, 5.800%, 6/01/16 (Optional put 12/01/04)
2,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102 N/R 1,831,920
Revenue Bonds (Bay Shore Power Project), Convertible
Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.5%
3,000 City of Cleveland, Ohio, Waterworks Improvement and 1/08 at 101 AAA 2,948,310
Refunding Revenue Bonds, 1998 Series I, 5.000%, 1/01/23
1,500 Ohio Water Development Authority, Water Development Revenue 12/11 at 100 AAA 1,485,930
Bonds, Fresh Water Series 2001A, 5.000%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 67,010 Total Investments (cost $67,145,803) - 98.9% 67,073,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 778,533
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 67,851,533
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
43
Nuveen Texas Quality Income Municipal Fund (NTX)
Portfolio of
Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 3.8%
$ 4,500 Industrial Development Corporation, Cass County, Texas, 3/10 at 101 BBB $ 4,699,035
Environmental Improvement Revenue Bonds (International
Paper Company Project), 2000 Series A, 6.600%, 3/15/24
(Alternative Minimum Tax)
3,000 Guadalupe-Blanco River Authority, Texas, Sewage and Solid 4/06 at 102 AA- 3,182,070
Waste Disposal Facility Bonds (E.I. du Pont de Nemours and
Company Project), Series 1996, 6.400%, 4/01/26 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.3%
690 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 715,709
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.9%
2,255 Brazos Higher Education Authority, Inc., Texas, Student Loan 3/02 at 102 N/R 2,305,805
Revenue Refunding Bonds, Series 1992-A, 6.875%, 9/01/04
(Alternative Minimum Tax)
1,055 Brazos Higher Education Authority, Inc., Texas, Student Loan No Opt. Call Aaa 1,132,564
Revenue Refunding Bonds, Series 1992C-1, 6.650%, 11/01/04
(Alternative Minimum Tax)
205 Brazos Higher Education Authority, Inc., Texas, Student Loan No Opt. Call Aa2 221,232
Revenue Refunding Bonds, Subordinate Series 1993A-2,
6.800%, 12/01/04 (Alternative Minimum Tax)
1,000 Higher Education Finance Corporation, City of Georgetown, 2/04 at 100 A+ 1,028,760
Texas, Higher Education Revenue Bonds (Southwestern
University Project), Series 1994, 6.300%, 2/15/14
1,000 Raven Hills Higher Education Corporation, Texas, Student 8/11 at 100 Aaa 994,120
Housing Revenue Bonds (Cardinal Village L.L.C. - Lamar
University Project), Series 2001A, 5.250%, 8/01/24
1,445 Tyler Junior College District, Counties of Smith and Van Zanlt, 8/04 at 100 AAA 1,526,541
Texas, Combined Fee Improvement Revenue and Refunding
Bonds, Series 1994, 5.900%, 8/15/13
2,330 Education Facilities Corporation, City of Universal, Texas, 3/11 at 102 A- 2,314,669
Revenue Bonds (Wayland Baptist University Project),
Series 2001, 5.625%, 3/01/26
2,000 Board of Regents of the University of Houston, Texas, 2/05 at 100 AAA 2,125,880
Consolidated Revenue Bonds, Series 1995, 6.000%, 2/15/17
5,000 Board of Regents of the University of North Texas, Financing 4/12 at 100 AAA 4,846,400
System Revenue Bonds, Series 2001, 5.000%, 4/15/24
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 5.7%
5,000 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/08 at 102 BBB 4,689,250
Revenue Bonds (Valero Refining and Marketing Company
Project), Series 1998, 5.600%, 4/01/32 (Alternative
Minimum Tax)
5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/08 at 102 Baa2 4,690,450
Disposal Revenue Bonds (Valero Refining and Marketing
Company Project), Series 1997, 5.600%, 12/01/31 (Alternative
Minimum Tax)
2,800 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/09 at 101 BBB 2,664,592
Revenue Bonds (Valero Energy Corporation Project),
Series 1999, 5.700%, 4/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.7%
3,500 Abilene Health Facilities Development Corporation, Texas, 9/05 at 102 AAA 3,767,785
Hospital Revenue Refunding and Improvement Bonds (Hendrick
Medical Center Project), Series 1995C, 6.150%, 9/01/25
Health Facilities Development Corporation, Gregg County, Texas,
Hospital Revenue Bonds (Good Shepherd Medical Center Project),
Series 2000:
2,000 6.875%, 10/01/20 10/10 at 101 AA 2,216,640
3,250 6.375%, 10/01/25 10/10 at 101 AA 3,448,965
1,500 Health Facilities Development Corporation, Harris County, Texas, 8/11 at 100 AA 1,500,510
Revenue Bonds (St. Luke's Episcopal Hospital), Series 2001A,
5.500%, 2/15/21
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,000 Health Facilities Development Corporation, Harris County, 10/09 at 101 AA $ 957,070
Texas, Hospital Revenue Bonds (Texas Children's Hospital
Project), Series 1999A, 5.250%, 10/01/29
2,000 Health Facilities Development Corporation, Harris County, 6/11 at 101 A- 2,082,720
Texas, Hospital Revenue Bonds (Memorial Hermann
Healthcare System), Series 2001A, 6.375%, 6/01/29
5,750 Midland County Hospital District, Texas, Hospital Revenue No Opt. Call A- 3,546,255
Bonds, Series 1992, 0.000%, 6/01/11
2,000 Health Facilities Development Corporation, North Central 5/11 at 100 AA- 1,901,260
Texas, Hospital Revenue Bonds (Baylor Healthcare System
Project), Series 2001A, 5.125%, 5/15/29
1,760 Parker County Hospital District, Texas, Hospital Revenue Bonds 8/09 at 102 BBB 1,701,445
(Campbell Health System), Series 1999, 6.250%, 8/15/19
4,500 Port of Corpus Christi Authority, Nueces County, Texas, 4/02 at 102 BBB 4,610,790
Pollution Control Revenue Bonds (Hoechst Celanese
Corporation), Series 1992, 6.875%, 4/01/17 (Alternative
Minimum Tax)
1,050 Health Facilities Development Corporation, Tarrant County, 11/08 at 101 A- 986,097
Texas, Hospital Revenue Bonds (Adventist Health System -
Sunbelt Obligated Group), Series 1998, 5.375%, 11/15/20
3,500 Health Facilities Development Corporation, Tarrant County, 11/10 at 101 A- 3,687,740
Texas, Hospital Revenue Bonds (Adventist Health System -
Sunbelt Obligated Group), Series 2000, 6.625%, 11/15/20
1,500 Texas Health Facilities Development Corporation, Hospital 8/03 at 102 AAA 1,599,090
Revenue Bonds (All Saints Episcopal Hospitals of Fort Worth
Project), Series 1993B, 6.250%, 8/15/22
2,000 Health Facilities Development Corporation, Tom Green County, 5/11 at 101 Baa3 2,002,860
Texas, Hospital Revenue Bonds (Shannon Health System
Project), Series 2001, 6.750%, 5/15/21
1,000 Tyler Health Facilities Development Corporation, Texas, Hospital 7/12 at 100 Baa1 982,320
Revenue Bonds (Mother Frances Hospital Regional Health
Center), Series 2001, 6.000%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.9%
Housing Finance Corporation, Bexar County, Texas, Multifamily
Housing Revenue Bonds (The Waters at Northern Hills Apartments
Project), Series 2001A:
2,000 6.000%, 8/01/31 8/11 at 105 Aaa 2,115,880
750 6.050%, 8/01/36 8/11 at 105 Aaa 794,265
Housing Finance Corporation, City of Grand Prairie, Texas,
Multifamily Housing Revenue Bonds (Landings at Carrier Project),
GNMA Series 2000A:
1,000 6.650%, 9/20/22 9/10 at 105 AAA 1,084,770
2,030 6.750%, 9/20/28 9/10 at 105 AAA 2,197,861
5,668 Housing Finance Corporation, City of Houston, Texas, Multifamily 9/11 at 105 Aaa 6,097,011
Housing Revenue Bonds (GNMA Collateralized Mortgage)(RRG
Apartments Project), Series 2001, 6.250%, 9/20/35
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.7%
675 Baytown Housing Finance Corporation, Texas, Single Family 9/02 at 103 Aa2 714,967
Mortgage Revenue Refunding Bonds, Series 1992-A,
8.500%, 9/01/11
2,800 El Paso Housing Finance Corporation, Texas, Single Family 4/11 at 106 3/4 AAA 2,985,864
Mortgage Revenue Bonds, Series 2001A-3, 4.850%, 4/01/33
465 Property Finance Authority, Inc., City of Galveston, Texas, Single 3/02 at 103 A3 481,270
Family Mortgage Revenue Bonds, Series 1991A, 8.500%, 9/01/11
1,275 Harrison County Finance Corporation, Texas, Single Family 6/02 at 103 A1 1,308,915
Mortgage Revenue Refunding Bonds, Series 1991, 8.875%,
12/01/11
830 Houston Housing Finance Corporation, Texas, Single Family 6/03 at 102 AAA 843,180
Mortgage Revenue Refunding Bonds, Series 1993A, 5.950%,
12/01/10
505 Port Arthur Housing Finance Corporation, Texas, Single Family 9/02 at 103 A2 535,502
Mortgage Revenue Refunding Bonds, Series 1992, 8.700%,
3/01/12
2,305 Texas Department of Housing and Community Affairs, Single 9/06 at 102 AAA 2,411,791
Family Mortgage Revenue Bonds, 1996 Series E, 6.000%,
9/01/17
555 Victoria Housing Finance Corporation, Texas, Single Family No Opt. Call Aaa 567,698
Mortgage Revenue Refunding Bonds, Series 1995, 8.125%,
1/01/11
45
Nuveen Texas Quality Income Municipal Fund (NTX) (continued)
Portfolio of Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.7%
Health Facilities Development Corporation, Bell County, Texas,
Retirement Facility Revenue Bonds (Buckner Retirement Services,
Inc. Obligated Group Project), Series 1998:
$ 3,400 5.250%, 11/15/19 11/08 at 101 A- $ 3,184,916
5,000 5.250%, 11/15/28 11/08 at 101 A- 4,555,950
2,000 Health Facilities Development Corporation, Tarrant County, Texas, 1/08 at 105 AAA 2,113,120
Mortgage Revenue Bonds (South Central Nursing Homes,
Inc. Project), Series 1997A, 6.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 19.5%
1,000 Caddo Mills Independent School District, Hunt County, Texas, 2/05 at 100 N/R 1,100,220
Unlimited Tax School Building and Refunding Bonds,
Series 1995, 6.375%, 8/15/25
4,130 Coppell Independent School District, Dallas County, Texas, 8/09 at 75 11/32 AAA 2,138,018
Unlimited Tax School Building and Refunding Bonds,
Series 1992, 0.000%, 8/15/14
1,000 DeSoto Independent School District, Dallas County, Texas, 8/11 at 100 AAA 1,054,930
General Obligation Refunding Bonds, Series 2001,
5.375%, 8/15/14
1,450 Donna Independent School District, Hidalgo County, Texas, 2/11 at 100 AAA 1,583,574
Unlimited Tax School Building Bonds, Series 2000, 6.000%,
2/15/17
1,750 El Paso County, Texas, Certificates of Obligation, Series 2001, 2/12 at 100 AAA 1,715,228
5.000%, 2/15/21
2,800 City of Ennis, Texas, General Obligation Refunding and 8/02 at 100 AAA 2,867,452
Improvement Bonds, Series 1992, 6.500%, 8/01/13
2,000 Harlingen Consolidated Independent School District, Cameron 8/09 at 100 AAA 2,061,140
County, Texas, Unlimited Tax School Building Bonds,
Series 1999, 5.650%, 8/15/29
2,600 Klein Independent School District, Harris County, Texas, Unlimited 8/09 at 100 AAA 2,595,658
Tax Schoolhouse Bonds, Series 1999A, 5.000%, 8/01/18
1,500 Lake Dallas Independent School District, Denton County, Texas, 8/11 at 100 Aaa 1,437,330
General Obligation Building Bonds, Series 2001, 5.000%, 8/15/30
5,220 Leander Independent School District, Counties of Williamson 8/09 at 46 3/4 AAA 1,631,981
and Travis, Texas, Unlimited Tax School Building and Refunding
Bonds, Series 2000, 0.000%, 8/15/21
1,545 Montgomery County (a political subdivision of the state of Texas), 9/07 at 72 3/8 AAA 827,780
Refunding Bonds, Series 1997, 0.000%, 3/01/14
2,000 Northside Independent School District, Bexar County, Texas, 8/10 at 100 AAA 2,118,240
Unlimited Tax School Building and Refunding Bonds,
Series 2000, 5.875%, 8/15/25
500 Commonwealth of Puerto Rico, General Obligation Public No Opt. Call A 525,905
Improvement Bonds of 2002, Series A, 5.500%, 7/01/29
1,825 Socorro Independent School District, El Pasco County, Texas, 2/06 at 100 Aaa 1,874,111
Unlimited Tax School Building Bonds, Series 1996, 5.750%,
2/15/21
2,000 State of Texas, General Obligation Veterans Land Bonds, 12/04 at 100 Aa1 2,124,760
Series 1994, 6.400%, 12/01/24 (Alternative Minimum Tax)
3,490 State of Texas, General Obligation Veterans Housing Assistance 12/03 at 102 Aa1 3,624,121
Bonds, Series 1993, 6.800%, 12/01/23 (Alternative Minimum Tax)
2,000 State of Texas, General Obligation Bonds (Water Financial 8/11 at 100 Aa1 2,008,160
Assistance), Series 2001, 5.250%, 8/01/23
1,500 Public Finance Authority, Texas, General Obligation Bonds, 10/12 at 100 Aa1 1,489,005
Refunding Series 2002, 5.000%, 10/01/18 (WI, settling 2/13/02)
1,795 United Independent School District, Webb County, Texas, 8/12 at 100 AAA 1,845,870
Unlimited Tax School Building Bonds, Series 2000, 5.375%,
8/15/18
5,290 Weslaco Independent School District, Hidalgo County, Texas, 2/10 at 100 Aaa 5,377,444
General Obligation School Building Bonds, Series 2000,
5.500%, 2/15/25
West Independent School District, Counties of McLennan and Hill,
Texas, Unlimited Tax School Building and Refunding Bonds, Series
1998:
1,000 0.000%, 8/15/22 8/13 at 61 7/32 AAA 309,030
1,000 0.000%, 8/15/23 8/13 at 57 31/32 AAA 290,640
1,000 0.000%, 8/15/24 8/13 at 54 7/8 AAA 272,640
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 7.2%
$ 4,500 City of Austin, Texas, Subordinate Lien Hotel Occupancy Tax 11/09 at 100 AAA $ 4,703,850
Revenue Refunding Bonds, Series 1999, 5.800%, 11/15/29
2,250 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100 AAA 2,248,673
Revenue Bonds, Series 2001G, 5.250%, 11/15/22
1,575 Harris County, Texas, Unlimited Tax Subordinate Lien Toll Road 8/02 at 102 AA+ 1,640,583
Revenue Refunding Bonds, Series 1992A, 6.500%, 8/15/15
800 City of Laredo, Webb County, Texas, Revenue Certificates 8/04 at 100 AAA 862,656
of Obligation (Combination Tax and Waterworks System),
Series 1994, 5.625%, 8/15/11
1,000 City of Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, 3/09 at 100 AAA 998,450
Series 2001, 5.300%, 3/15/26
4,580 City of San Antonio, Texas, Hotel Occupancy Tax Revenue Bonds 8/06 at 102 AAA 4,714,377
(Henry B. Gonzalez Convention Center Project), 5.700%, 8/15/26
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.2%
4,005 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue 6/02 at 101 BB 3,440,936
Bonds (American Airlines, Inc. Project), Series 1990, 7.500%,
12/01/29 (Alternative Minimum Tax)
5,020 Facility Improvement Corporation, Texas, Revenue Bonds 5/02 at 102 AAA 5,171,052
(Dallas-Fort Worth International Airport) (United Parcel
Service, Inc.), Series 1992, 6.600%, 5/01/32 (Alternative
Minimum Tax)
3,000 Facility Improvement Corporation, Texas, Revenue Bonds 11/09 at 101 BB 2,239,950
(Dallas-Fort Worth International Airport - American Airlines,
Inc.), Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax)
1,000 Harris County, Texas, Senior Lien Toll Road Revenue Refunding 8/04 at 102 AAA 1,008,380
Bonds, Series 1994, 5.375%, 8/15/20
220 Harris County, Texas, Senior Lien Toll Road Revenue Refunding 8/02 at 102 AAA 229,944
Bonds, Series 1992A, 6.500%,8/15/17
320 Harris County, Texas, Senior Lien Toll Road Revenue Refunding 2/02 at 100 AAA 321,322
Bonds, Series 1992B, 6.625%, 8/15/17
2,000 City of Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100 AAA 2,023,680
Bonds, Series 2000A, 5.625%, 7/01/30 (Alternative Minimum Tax)
700 Puerto Rico Ports Authority, Special Facilities Revenue Bonds 6/06 at 102 BB 546,707
(American Airlines, Inc. Project), 1996 Series A, 6.250%,
6/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 4.8%
255 Abilene Housing Development Corporation, Texas, First Lien No Opt. Call N/R*** 283,662
Revenue Bonds, Series 1978, 7.000%, 7/01/08
1,475 City of Corpus Christi, Texas, General Improvement and Refunding 3/02 at 100 AAA 1,481,387
Bonds, Series 1992, 6.700%, 3/01/08 (Pre-refunded to 3/01/02)
1,185 Levee Improvement District No. 11, Fort Bend County (a political 9/04 at 100 AAA 1,317,009
subdivision of the state of Texas), Unlimited Tax Levee
Improvement Bonds, Series 1994, 6.900%, 9/01/17
(Pre-refunded to 9/01/04)
1,450 Industrial Development Corporation, City of Galveston, Texas, 9/05 at 100 AAA 1,587,837
Sales Tax Revenue Bonds, Series 1995, 5.750%, 9/01/15
(Pre-refunded to 9/01/05)
1,000 Health Facilities Development Corporation, North Central No Opt. Call AAA 1,078,400
Texas, Hospital Revenue Bonds (Presbyterian Healthcare
System Project), Series 1996B, 5.750%, 6/01/26
2,500 Retama Development Corporation, Texas, Special Facilities No Opt. Call AAA 3,568,750
Revenue Bonds (Retama Park Racetrack Project), Series 1993,
8.750%, 12/15/17
665 City of San Antonio, Texas, Water System Revenue Refunding No Opt. Call AAA 760,042
Bonds, Series 1992, 6.500%, 5/15/10
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.8%
2,500 Brazos River Authority, Texas, Revenue Refunding Bonds 4/09 at 101 Baa1 2,359,300
(Reliant Energy, Inc. Project), Series 1999A, 5.375%, 4/01/19
2,000 Health Facilities Development Corporation, Harris County, Texas, 2/10 at 100 AAA 2,098,920
Thermal Utility Revenue Bonds (TECO Project), Series 2000,
5.750%, 2/15/15 (Alternative Minimum Tax)
1,500 Navigation District Number One, Matagorda County, Texas, 7/03 at 102 AAA 1,584,330
Pollution Control Revenue Refunding Bonds (Central Power and
Light Company Project), Series 1993, 6.000%, 7/01/28
2,000 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call BBB+ 1,984,060
Refunding Bonds (TXU Electric Company Project), Series 2001A,
5.500%, 5/01/22 (Mandatory put 11/01/11)
47
Nuveen Texas Quality Income Municipal Fund (NTX) (continued)
Portfolio of Investments January 31, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.1%
$ 7,000 City of Houston, Texas, Junior Lien Water and Sewer System No Opt. Call AAA $ 1,637,230
Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/27
1,000 City of Houston, Texas, Prior Lien Water and Sewer System 12/02 at 102 Aaa 1,054,370
Revenue Refunding Bonds, Series 1992B, 6.375%, 12/01/14
5,275 City of Houston, Texas, Junior Lien Water and Sewer System 12/10 at 100 AAA 5,247,412
Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30
800 City of Houston, Texas, Junior Lien Water and Sewer System 12/07 at 101 AAA 805,576
Revenue Bonds, Series 1997C, 5.375%, 12/01/27
2,385 City of San Antonio, Texas, Water System Revenue Refunding 5/02 at 102 AAA 2,466,374
Bonds, Series 1992, 6.500%, 5/15/10
1,500 Texas Water Development Board, State Revolving Fund, Senior 7/09 at 100 AAA 1,539,120
Lien Revenue Bonds, Series1999A, 5.500%, 7/15/21
------------------------------------------------------------------------------------------------------------------------------------
$ 218,703 Total Investments (cost $199,935,053) - 98.3% 205,999,160
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 3,513,294
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $209,512,454
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
48
Statement of
Net Assets January 31, 2002 (Unaudited)
ARIZONA ARIZONA MICHIGAN MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME INCOME ADVANTAGE
(NAZ) (NFZ) (NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities,
at market value $90,951,147 $32,222,114 $265,751,461 $171,703,359 $44,273,187
Temporary investments in short-term
municipal securities, at amortized cost,
which approximates market value 1,500,000 -- 4,900,000 -- --
Cash 13,649 1,489,419 -- 910,971 --
Receivables:
Interest 805,946 322,788 3,479,736 2,407,932 551,725
Investments sold 15,051 1,308,323 46,866 -- 524,146
Other assets 1,876 3,335 8,185 3,829 7,639
------------------------------------------------------------------------------------------------------------------------------------
Total assets 93,287,669 35,345,979 274,186,248 175,026,091 45,356,697
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 3,055,533 -- 310,916
Payable for investments purchased -- 1,056,115 974,440 525,151 --
Accrued expenses:
Management fees 51,202 10,123 146,634 95,313 13,308
Other 68,237 94,520 76,204 86,737 102,320
Preferred share dividends payable 5,748 613 22,789 12,244 482
Common share dividends payable 319,099 107,626 861,975 546,388 143,036
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 444,286 1,268,997 5,137,575 1,265,833 570,062
------------------------------------------------------------------------------------------------------------------------------------
Net assets $92,843,383 $34,076,982 $269,048,673 $173,760,258 $44,786,635
====================================================================================================================================
Preferred shares, at liquidation value $30,000,000 $12,000,000 $ 94,000,000 $ 56,000,000 $16,000,000
====================================================================================================================================
Preferred shares outstanding 1,200 480 3,760 2,240 640
====================================================================================================================================
Common shares outstanding 4,401,374 1,537,520 11,563,331 7,695,609 2,058,070
====================================================================================================================================
Net asset value per Common share outstanding
(net assets less Preferred shares
at liquidation value,
divided by Common shares outstanding) $ 14.28 $ 14.36 $ 15.14 $ 15.30 $ 13.99
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, $25,000 stated value per share,
at liquidation value $30,000,000 $12,000,000 $ 94,000,000 $ 56,000,000 $16,000,000
Common shares, $.01 par value per share 44,014 15,375 115,633 76,956 20,581
Paid-in surplus 61,079,052 21,702,762 161,502,028 107,504,115 29,073,731
Balance of undistributed net investment income 461,970 43,504 957,904 831,873 53,159
Accumulated net realized gain (loss) from
investment transactions 212,936 (9,976) 159,454 (134,378) (181,534)
Net unrealized appreciation (depreciation)
of investments 1,045,411 325,317 12,313,654 9,481,692 (179,302)
------------------------------------------------------------------------------------------------------------------------------------
Net assets $92,843,383 $34,076,982 $269,048,673 $173,760,258 $44,786,635
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 Unlimited 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
49
Statement of
Net Assets January 31, 2002 (Unaudited) (continued)
OHIO OHIO OHIO TEXAS
QUALITY DIVIDEND DIVIDEND QUALITY
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NUO) (NXI) (NBJ) (NTX)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $225,470,918 $91,220,610 $67,073,000 $205,999,160
Temporary investments in short-term municipal securities,
at amortized cost, which approximates market value -- -- -- --
Cash 3,999,931 -- -- 1,505,413
Receivables:
Interest 2,672,815 1,255,702 801,991 3,506,641
Investments sold -- -- 1,390,008 1,461,573
Other assets 1,943 4,031 7,641 361
------------------------------------------------------------------------------------------------------------------------------------
Total assets 232,145,607 92,480,343 69,272,640 212,473,148
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 71,583 42,260 --
Payable for investments purchased 1,153,768 -- 1,047,790 2,021,504
Accrued expenses:
Management fees 125,791 27,310 20,164 114,708
Other 164,981 97,852 95,007 87,616
Preferred share dividends payable 17,892 1,189 1,147 14,645
------------------------------------------------------------------------------------------------------------------------------------
Common share dividends payable 733,935 303,465 214,739 722,221
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,196,367 501,399 1,421,107 2,960,694
------------------------------------------------------------------------------------------------------------------------------------
Net assets $229,949,240 $91,978,944 $67,851,533 $209,512,454
====================================================================================================================================
Preferred shares, at liquidation value $ 77,000,000 $31,000,000 $24,000,000 $ 69,000,000
====================================================================================================================================
Preferred shares outstanding 3,080 1,240 960 2,760
====================================================================================================================================
Common shares outstanding 9,531,751 4,214,900 3,112,164 9,440,806
====================================================================================================================================
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 16.05 $ 14.47 $ 14.09 $ 14.88
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, $25,000 stated value per share,
at liquidation value $ 77,000,000 $31,000,000 $24,000,000 $ 69,000,000
Common shares, $.01 par value per share 95,318 42,149 31,122 94,408
Paid-in surplus 144,060,062 59,757,807 44,049,564 133,770,404
Balance of undistributed net investment income 754,722 215,286 106,701 1,086,216
Accumulated net realized gain (loss) from
investment transactions (768,312) (836) (263,051) (502,681)
Net unrealized appreciation (depreciation) of investments 8,807,450 964,538 (72,803) 6,064,107
------------------------------------------------------------------------------------------------------------------------------------
Net assets $229,949,240 $91,978,944 $67,851,533 $209,512,454
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
50
Statement of
Operations Six Months Ended January 31, 2002 (Unaudited)
ARIZONA ARIZONA MICHIGAN MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME INCOME ADVANTAGE
(NAZ) (NFZ) (NUM) (NMP) (NZW)*
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 2,781,909 $ 910,183 $ 7,607,010 $4,775,781 $ 613,424
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 309,113 112,291 876,896 568,490 86,685
Preferred shares - auction fees 37,808 15,073 118,467 70,575 8,438
Preferred shares - dividend disbursing agent fees 5,042 5,042 10,081 10,081 2,110
Shareholders' servicing agent fees and expenses 3,529 2,269 15,629 11,092 1,262
Custodian's fees and expenses 17,926 10,352 33,201 25,156 9,388
Directors'/Trustees' fees and expenses 707 504 1,765 1,058 351
Professional fees 8,168 7,128 8,238 7,676 5,684
Shareholders' reports - printing and
mailing expenses 7,159 9,158 19,660 13,839 6,136
Stock exchange listing fees 11,373 5,042 15,879 11,342 251
Investor relations expense 7,068 3,520 22,090 15,296 --
Other expenses 5,571 3,285 10,338 6,874 1,217
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 413,464 173,664 1,132,244 741,479 121,522
Custodian fee credit (4,978) (1,884) (3,777) (7,225) (1,252)
Expense reimbursement -- (51,826) -- -- (39,543)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 408,486 119,954 1,128,467 734,254 80,727
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,373,423 790,229 6,478,543 4,041,527 532,697
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment
transactions 213,098 80,192 757,463 595,089 (181,534)
Change in net unrealized appreciation
(depreciation) of investments (2,409,477) (104,911) (2,336,203) (967,714) (179,302)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (2,196,379) (24,719) (1,578,740) (372,625) (360,836)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 177,044 $ 765,510 $ 4,899,803 $3,668,902 $ 171,861
====================================================================================================================================
* For the period September 25, 2001 (commencement of operations) through January
31, 2002.
See accompanying notes to financial statements.
51
Statement of
Operations Six Months Ended January 31, 2002 (Unaudited) (continued)
OHIO OHIO OHIO TEXAS
QUALITY DIVIDEND DIVIDEND QUALITY
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NUO) (NXI) (NBJ)** (NTX)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,486,227 $2,465,593 $ 937,729 $ 6,212,255
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 748,909 302,957 130,484 688,818
Preferred shares - auction fees 97,042 39,069 12,657 86,958
Preferred shares - dividend disbursing agent fees 15,123 5,042 2,110 10,081
Shareholders' servicing agent fees and expenses 16,888 2,017 1,539 8,067
Custodian's fees and expenses 39,213 16,981 10,939 30,904
Directors'/Trustees' fees and expenses 1,411 1,008 522 1,260
Professional fees 8,192 7,632 5,866 7,965
Shareholders' reports - printing and mailing expenses 16,888 12,477 7,772 12,251
Stock exchange listing fees 11,417 504 249 11,342
Investor relations expense 19,232 -- -- 13,991
Other expenses 9,261 15,091 1,283 8,123
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 983,576 402,778 173,421 879,760
Custodian fee credit (13,652) (4,682) (1,893) (8,269)
Expense reimbursement -- (139,826) (59,516) --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 969,924 258,270 112,012 871,491
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,516,303 2,207,323 825,717 5,340,764
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions 992,286 24,768 (263,051) (252,899)
Change in net unrealized appreciation (depreciation)
of investments (2,007,242) (550,953) (72,803) (2,139,674)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (1,014,956) (526,185) (335,854) (2,392,573)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 4,501,347 $1,681,138 $ 489,863 $ 2,948,191
====================================================================================================================================
** For the period September 26, 2001 (commencement of operations) through
January 31, 2002.
See accompanying notes to financial statements.
52
Statement of
Changes in Net Assets (Unaudited)
ARIZONA
ARIZONA PREMIUM INCOME (NAZ) DIVIDEND ADVANTAGE (NFZ) MICHIGAN QUALITY INCOME (NUM)
--------------------------- ------------------------- -----------------------------
FOR THE
PERIOD 1/31/01
SIX MONTHS SIX MONTHS (COMMENCEMENT SIX MONTHS
ENDED YEAR ENDED ENDED OF OPERATIONS) ENDED YEAR ENDED
1/31/02 7/31/01 ENDED 1/31/02 THROUGH 7/31/01 1/31/02 7/31/01
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,373,423 $ 4,754,581 $ 790,229 $ 668,042 $ 6,478,543 $ 13,395,664
Net realized gain (loss)
from investment transactions 213,098 574,900 80,192 (64,221) 757,463 722,430
Change in net unrealized
appreciation (depreciation)
of investments (2,409,477) 1,610,292 (104,911) 432,476 (2,336,203) 8,535,587
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 177,044 6,939,773 765,510 1,036,297 4,899,803 22,653,681
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (1,905,793) (3,620,798) (645,534) (537,665) (5,115,340) (10,158,506)
Preferred shareholders (234,250) (1,026,132) (107,067) (126,749) (680,874) (3,290,957)
From accumulated net realized
gains from investment transactions:
Common shareholders (182,992) (26,704) (21,217) -- (863,646) (222,220)
Preferred shareholders (51,989) (7,956) (4,730) -- (279,535) (73,780)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (2,375,024) (4,681,590) (778,548) (664,414) (6,939,395) (13,745,463)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 21,858,485 -- --
Net proceeds from shares issued
to shareholders due to reinvestment
of distributions 182,359 314,009 17,581 4,296 424,365 326,968
Net proceeds from sale of
Preferred shares -- -- -- 11,737,500 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions 182,359 314,009 17,581 33,600,281 424,365 326,968
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets (2,015,621) 2,572,192 4,543 33,972,164 (1,615,227) 9,235,186
Net assets at the beginning
of period 94,859,004 92,286,812 34,072,439 100,275 270,663,900 261,428,714
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $92,843,383 $94,859,004 $34,076,982 $34,072,439 $269,048,673 $270,663,900
====================================================================================================================================
Balance of undistributed net
investment income at the
end of period $ 461,970 $ 228,590 $ 43,504 $ 3,628 $ 957,904 $ 116,948
====================================================================================================================================
See accompanying notes to financial statements.
53
Statement of
Changes in Net Assets (Unaudited) (continued)
MICHIGAN
DIVIDEND
MICHIGAN PREMIUM INCOME (NMP) ADVANTAGE (NZW) OHIO QUALITY INCOME (NUO)
------------------------------- --------------- ------------------------------
FOR THE
PERIOD 9/25/01
(COMMENCEMENT
SIX MONTHS YEAR ENDED OF OPERATIONS) SIX MONTHS YEAR ENDED
ENDED 1/31/02 7/31/01 THROUGH 1/31/02 ENDED 1/31/02 7/31/01
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,041,527 $ 8,237,452 $ 532,697 $ 5,516,303 $ 11,399,510
Net realized gain (loss) from investment
transactions 595,089 1,000,973 (181,534) 992,286 319,530
Change in net unrealized appreciation
(depreciation) of investments (967,714) 7,232,198 (179,302) (2,007,242) 5,042,976
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 3,668,902 16,470,623 171,861 4,501,347 16,762,016
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (3,205,222) (6,298,850) (429,098) (4,351,799) (8,621,168)
Preferred shareholders (487,479) (1,952,915) (50,440) (716,926) (2,592,880)
From accumulated net realized gains from
investment transactions:
Common shareholders -- -- -- -- --
Preferred shareholders -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (3,692,701) (8,251,765) (479,538) (5,068,725) (11,214,048)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 29,319,045 -- --
Net proceeds from shares issued
to shareholders due to reinvestment
of distributions -- -- 992 352,463 571,647
Net proceeds from sale of
Preferred shares -- -- 15,674,000 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions -- -- 44,994,037 352,463 571,647
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (23,799) 8,218,858 44,686,360 (214,915) 6,119,615
Net assets at the beginning of period 173,784,057 165,565,199 100,275 230,164,155 224,044,540
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $173,760,258 $173,784,057 $44,786,635 $229,949,240 $230,164,155
====================================================================================================================================
Balance of undistributed net
investment income at the end of period $ 831,873 $ 213,121 $ 53,159 $ 754,722 $ 270,766
====================================================================================================================================
See accompanying notes to financial statements.
54
OHIO
OHIO DIVIDEND
DIVIDEND ADVANTAGE (NXI) ADVANTAGE 2 (NBJ) TEXAS QUALITY INCOME (NTX)
------------------------------ ---------------- ---------------------------
FOR THE FOR THE
PERIOD 3/28/01 PERIOD 9/26/01
(COMMENCEMENT (COMMENCEMENT
SIX MONTHS OF OPERATIONS) OF OPERATIONS) SIX MONTHS YEAR ENDED
ENDED 1/31/02 THROUGH 7/31/01 THROUGH 1/31/02 ENDED 1/31/02 7/31/01
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,207,323 $ 1,209,414 $ 825,717 $ 5,340,764 $ 10,923,284
Net realized gain (loss) from investment
transactions 24,768 (25,604) (263,051) (252,899) 1,598,134
Change in net unrealized appreciation
(depreciation) of investments (550,953) 1,528,249 (72,803) (2,139,674) 6,666,684
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 1,681,138 2,712,059 489,863 2,948,191 19,188,102
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (1,820,959) (910,419) (644,199) (4,224,760) (8,175,738)
Preferred shareholders (305,067) (177,887) (74,817) (506,198) (2,522,800)
From accumulated net realized gains
from investment transactions:
Common shareholders -- -- -- (634,401) --
Preferred shareholders -- -- -- (197,372) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (2,126,026) (1,088,306) (719,016) (5,562,731) (10,698,538)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 60,151,930 44,385,975 -- --
Net proceeds from shares issued
to shareholders due to reinvestment
of distributions -- 124 2,436 -- --
Net proceeds from sale of
Preferred shares -- 30,547,750 23,592,000 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions -- 90,699,804 67,980,411 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (444,888) 92,323,557 67,751,258 (2,614,540) 8,489,564
Net assets at the beginning of period 92,423,832 100,275 100,275 212,126,994 203,637,430
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $91,978,944 $92,423,832 $67,851,533 $209,512,454 $212,126,994
====================================================================================================================================
Balance of undistributed net
investment income at the end of period $ 215,286 $ 121,108 $ 106,701 $ 1,086,216 $ 425,080
====================================================================================================================================
See accompanying notes to financial statements.
55
Notes to
Financial Statements (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds (the "Funds") covered in this report and their corresponding
exchange symbols are Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ),
Nuveen Arizona Dividend Advantage Municipal Fund (NFZ), Nuveen Michigan Quality
Income Municipal Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal
Fund, Inc. (NMP), Nuveen Michigan Dividend Advantage Municipal Fund (NZW),
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO), Nuveen Ohio Dividend
Advantage Municipal Fund (NXI), Nuveen Ohio Dividend Advantage Municipal Fund 2
(NBJ) and Nuveen Texas Quality Income Municipal Fund (NTX). Arizona Premium
Income (NAZ), Michigan Quality Income (NUM), Michigan Premium Income (NMP), Ohio
Quality Income (NUO) and Texas Quality Income (NTX) are traded on the New York
Stock Exchange while Arizona Dividend Advantage (NFZ), Michigan Dividend
Advantage (NZW), Ohio Dividend Advantage (NXI) and Ohio Dividend Advantage 2
(NBJ) are traded on the American Stock Exchange. Prior to the commencement of
operations of Arizona Dividend Advantage (NFZ), Michigan Dividend Advantage
(NZW), Ohio Dividend Advantage (NXI) and Ohio Dividend Advantage 2 (NBJ), each
Fund had no operations other than those related to organizational matters, the
initial capital contribution of $100,275 by Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of The John Nuveen Company, and the
recording of the organizational expenses ($15,000, $11,500, $15,000 and $11,500,
respectively) and their reimbursement by Nuveen Investments, also a wholly owned
subsidiary of The John Nuveen Company.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes, where applicable, by investing primarily in a
diversified portfolio of municipal obligations issued by state and local
government authorities within a single state. The Funds are registered under the
Investment Company Act of 1940 as closed-end management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors/Trustees of the Funds may
establish a fair value for the security. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
securities are valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
January 31, 2002, Arizona Dividend Advantage (NFZ), Michigan Quality Income
(NUM), Ohio Quality Income (NUO), Ohio Dividend Advantage 2 (NBJ) and Texas
Quality Income (NTX) had outstanding when-issued purchase commitments of
$1,056,115, $974,440, $1,153,768, $1,047,790 and $1,497,358, respectively. There
were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
for financial reporting purposes.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its share holders. 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, where applicable, to retain such tax-exempt
status when distributed to shareholders of the Funds.
56
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts after month-end. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set by the auction agent. The
number of shares outstanding, by Series and in total, for each Fund is as
follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME INCOME ADVANTAGE
(NAZ) (NFZ) (NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- -- -- 840 --
Series T -- 480 -- -- --
Series W -- -- -- -- 640
Series Th 1,200 -- 3,200 1,400 --
Series Th2 -- -- -- -- --
Series F -- -- 560 -- --
----------------------------------------------------------------------------------------------------------
Total 1,200 480 3,760 2,240 640
==========================================================================================================
OHIO OHIO OHIO TEXAS
QUALITY DIVIDEND DIVIDEND QUALITY
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NUO) (NXI) (NBJ) (NTX)
----------------------------------------------------------------------------------------------------------
Number of shares:
Series M 680 -- -- 760
Series T -- -- -- --
Series W -- 1,240 -- --
Series Th 1,400 -- -- 2,000
Series Th2 1,000 -- -- --
Series F -- -- 960 --
----------------------------------------------------------------------------------------------------------
Total 3,080 1,240 960 2,760
==========================================================================================================
Effective November 16, 2001, Michigan Dividend Advantage (NZW) issued 640 Series
W, $25,000 stated value Preferred shares.
Effective November 16, 2001, Ohio Dividend Advantage 2 (NBJ) issued 960 Series
F, $25,000 stated value Preferred shares.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the period ended January 31, 2002.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments has agreed to pay all offering costs (other than the sales
load) that exceed $.03 per Common share for Arizona Dividend Advantage (NFZ),
Michigan Dividend Advantage (NZW), Ohio Dividend Advantage (NXI) and Ohio
Dividend Advantage 2 (NBJ). Arizona Dividend Advantage's (NFZ), Michigan
Dividend Advantage's (NZW), Ohio Dividend Advantage's (NXI) and Ohio Dividend
Advantage 2's (NBJ) share of offering costs ($45,873, $61,530, $126,237 and
$93,150, respectively) were recorded as a reduction of the proceeds from the
sale of the common shares.
57
Notes to
Financial Statements (Unaudited) (continued)
Costs incurred by Arizona Dividend Advantage (NFZ), Michigan Dividend Advantage
(NZW), Ohio Dividend Advantage (NXI) and Ohio Dividend Advantage 2 (NBJ) in
connection with their offering of Preferred shares ($262,500, $326,000, $452,250
and $408,000, respectively) were recorded as a reduction of the proceeds from
the sale of the Preferred shares.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
Change in Accounting Policy
As required, effective August 1, 2001, the Funds have adopted the provisions of
the new AICPA Audit and Accounting Guide for Investment Companies and began
accreting taxable market discount on debt securities. Prior to August 1, 2001,
the Funds did not accrete taxable market discount on debt securities until they
were sold. The cumulative effect of this accounting change had no impact on the
total net assets or the net assets values of the Funds, but resulted in an
increase in the cost of securities and a corresponding decrease in unrealized
appreciation or increase in unrealized depreciation based on securities held by
the Funds on August 1, 2001, as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME INCOME ADVANTAGE
(NAZ) (NFZ) (NUM) (NMP) (NZW)
-----------------------------------------------------------------------------------------------------------
$-- $2,248 $158,627 $269,926 $--
===========================================================================================================
OHIO OHIO OHIO TEXAS
QUALITY DIVIDEND DIVIDEND QUALITY
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NUO) (NXI) (NBJ) (NTX)
-----------------------------------------------------------------------------------------------------------
$36,378 $12,758 $-- $51,330
===========================================================================================================
The effect of this change for the period ended January 31, 2002, was to increase
net investment income with a corresponding decrease in net unrealized
appreciation or increase in unrealized depreciation as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME INCOME ADVANTAGE
(NAZ) (NFZ) (NUM) (NMP) (NZW)
-----------------------------------------------------------------------------------------------------------
$-- $3,095 $16,479 $25,193 $--
===========================================================================================================
OHIO OHIO OHIO TEXAS
QUALITY DIVIDEND DIVIDEND QUALITY
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NUO) (NXI) (NBJ) (NTX)
-----------------------------------------------------------------------------------------------------------
$4,202 $22,637 $1,463 $13,586
===========================================================================================================
The Statement of Changes in Net Assets and Financial Highlights for the prior
periods have not been restated to reflect this change in presentation.
58
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
ARIZONA PREMIUM ARIZONA DIVIDEND MICHIGAN QUALITY
INCOME (NAZ) ADVANTAGE (NFZ) INCOME (NUM)
------------------------- ---------------------------- -----------------------
FOR THE
PERIOD 1/31/01
(COMMENCEMENT
OF OPERATIONS)
SIX MONTHS YEAR ENDED SIX MONTHS THROUGH SIX MONTHS YEAR ENDED
ENDED 1/31/02 7/31/01 ENDED 1/31/02 7/31/01 ENDED 1/31/02 7/31/01
----------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 1,529,100 -- --
Shares issued to
shareholders
due to reinvestment of
distributions 11,256 20,422 1,136 284 27,990 21,344
----------------------------------------------------------------------------------------------------------
11,256 20,422 1,136 1,529,384 27,990 21,344
==========================================================================================================
Preferred shares sold -- -- -- 480 -- --
==========================================================================================================
MICHIGAN
DIVIDEND
MICHIGAN PREMIUM ADVANTAGE OHIO QUALITY
INCOME (NMP) (NZW) INCOME (NUO)
------------------------ --------------- -------------------------
FOR THE
PERIOD 9/25/01
(COMMENCEMENT
OF OPERATIONS)
SIX MONTHS YEAR ENDED THROUGH SIX MONTHS YEAR ENDED
ENDED 1/31/02 7/31/01 1/31/02 ENDED 1/31/02 7/31/01
----------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- 2,051,000 -- --
Shares issued to shareholders
due to reinvestment of
distributions -- -- 70 20,815 34,578
----------------------------------------------------------------------------------------------------------
-- -- 2,051,070 20,815 34,578
==========================================================================================================
Preferred shares sold -- -- 640 -- --
==========================================================================================================
OHIO
DIVIDEND
OHIO DIVIDEND ADVANTAGE 2 TEXAS QUALITY
ADVANTAGE (NXI) (NBJ) INCOME (NTX)
--------------------------- ---------------- ------------------------
FOR THE FOR THE
PERIOD 3/28/01 PERIOD 9/26/01
(COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) OF OPERATIONS)
SIX MONTHS THROUGH THROUGH SIX MONTHS YEAR ENDED
ENDED 1/31/02 7/31/01 1/31/02 ENDED 1/31/02 7/31/01
----------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- 4,207,900 3,105,000 -- --
Shares issued to shareholders
due to reinvestment of
distributions -- 8 164 -- --
----------------------------------------------------------------------------------------------------------
-- 4,207,908 3,105,164 -- --
==========================================================================================================
Preferred shares sold -- 1,240 960 -- --
==========================================================================================================
59
Notes to
Financial Statements (Unaudited) (continued)
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid March 1, 2002, to shareholders of record on
February 15, 2002, as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME INCOME ADVANTAGE
(NAZ) (NFZ) (NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
Dividend per share $.0725 $.0700 $.0745 $.0710 $.0695
==========================================================================================================
OHIO OHIO OHIO TEXAS
QUALITY DIVIDEND DIVIDEND QUALITY
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NUO) (NXI) (NBJ) (NTX)
----------------------------------------------------------------------------------------------------------
Dividend per share $.0770 $.0720 $.0690 $.0765
==========================================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the six months ended
January 31, 2002, were as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME INCOME ADVANTAGE
(NAZ) (NFZ) (NUM) (NMP) (NZW)*
----------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $4,813,350 $7,806,620 $33,804,139 $11,098,278 $52,988,323
Short-term municipal securities 3,000,000 -- 4,900,000 4,100,000 6,000,000
Sales and maturities:
Long-term municipal securities 5,244,493 9,407,714 34,110,708 10,918,100 8,352,824
Short-term municipal securities 1,500,000 -- -- 4,100,000 6,000,000
==========================================================================================================
OHIO OHIO OHIO TEXAS
QUALITY DIVIDEND DIVIDEND QUALITY
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NUO) (NXI) (NBJ)** (NTX)
----------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $38,298,667 $5,799,375 $79,458,021 $27,511,341
Short-term municipal securities 2,500,000 1,700,000 22,750,000 1,000,000
Sales and maturities:
Long-term municipal securities 35,691,546 5,286,485 12,029,209 29,316,842
Short-term municipal securities 2,500,000 1,700,000 22,750,000 1,000,000
==========================================================================================================
* For the period September 25, 2001 (commencement of operations) through
January 31, 2002.
** For the period September 26, 2001 (commencement of operations) through
January 31, 2002.
60
At January 31, 2002, the cost of investments owned for federal income tax
purposes were as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME INCOME ADVANTAGE
(NAZ) (NFZ) (NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
$91,405,736 $31,955,675 $258,339,621 $161,926,548 $44,452,489
==========================================================================================================
OHIO OHIO OHIO TEXAS
QUALITY DIVIDEND DIVIDEND QUALITY
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NUO) (NXI) (NBJ) (NTX)
----------------------------------------------------------------------------------------------------------
$216,622,888 $90,246,281 $67,144,340 $199,877,516
==========================================================================================================
At July 31, 2001, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
MICHIGAN OHIO
PREMIUM QUALITY
INCOME INCOME
(NMP) (NUO)
-------------------------------------------------------------------------------
Expiration year:
2002 $ -- $ 780,558
2003 -- 16,493
2004 729,467 622,243
2005 -- --
2006 -- --
2007 -- --
2008 -- 279,929
2009 -- 61,376
-------------------------------------------------------------------------------
Total $729,467 $1,760,599
===============================================================================
61
Notes to
Financial Statements (Unaudited) (continued)
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at January 31, 2002, were as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME INCOME ADVANTAGE
(NAZ) (NFZ) (NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
appreciation $ 5,120,028 $ 405,699 $13,336,953 $10,372,778 $ 115,998
depreciation (4,074,617) (139,260) (1,025,113) (595,967) (295,300)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) $ 1,045,411 $ 266,439 $12,311,840 $ 9,776,811 $(179,302)
==========================================================================================================
OHIO OHIO OHIO TEXAS
QUALITY DIVIDEND DIVIDEND QUALITY
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NUO) (NXI) (NBJ) (NTX)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
appreciation $9,714,960 $1,561,807 $ 260,855 $ 8,851,771
depreciation (866,930) (587,478) (332,195) (2,730,127)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) $8,848,030 $ 974,329 $ (71,340) $ 6,121,644
==========================================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Arizona Premium Income's (NAZ), Michigan Quality Income's (NUM), Michigan
Premium Income's (NMP), Ohio Quality Income's (NUO) and Texas Quality Income's
(NTX) investment management agreements with the Adviser, each Fund pays an
annual management fee, payable monthly, at the rates set forth below, which are
based upon the average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
---------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For the next $3 billion .5875 of 1
For net assets over $5 billion .5750 of 1
---------------------------------------------------------------------------
62
Under Arizona Dividend Advantage's (NFZ), Michigan Dividend Advantage's (NZW),
Ohio Dividend Advantage's (NXI) and Ohio Dividend Advantage 2's (NBJ) investment
management agreements with the Adviser, each Fund pays an annual management fee,
payable monthly, at the rates set forth below, which are based upon the average
daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5750 of 1
------------------------------------------------------------------------------
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of Arizona Dividend Advantage (NFZ) in an amount equal to .30% of the
average daily net assets for the period from the Fund's commencement of
operations through January 31, 2006, .25% of the average daily net assets for
the year ended January 31, 2007, .20% of the average daily net assets for the
year ended January 31, 2008, .15% of the average daily net assets for the year
ended January 31, 2009, .10% of the average daily net assets for the year ended
January 31, 2010, and .05% of the average daily net assets for the year ended
January 31, 2011. The Adviser has not agreed to reimburse Arizona Dividend
Advantage (NFZ) for any portion of its fees and expenses beyond January 31,
2011.
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of Ohio Dividend Advantage (NXI) in an amount equal to .30% of the
average daily net assets for the period from the Fund's commencement of
operations through March 31, 2006, .25% of the average daily net assets for the
year ended March 31, 2007, .20% of the average daily net assets for the year
ended March 31, 2008, .15% of the average daily net assets for the year ended
March 31, 2009, .10% of the average daily net assets for the year ended March
31, 2010, and .05% of the average daily net assets for the year ended March 31,
2011. The Adviser has not agreed to reimburse Ohio Dividend Advantage (NXI) for
any portion of its fees and expenses beyond March 31, 2011.
The adviser has agreed to waive part of its management fee or reimburse certain
expenses of Michigan Dividend Advantage (NZW) and Ohio Dividend Advantage 2
(NBJ) in an amount equal to .30% of the average daily net assets for the period
from the Funds' commencement of operations through September 30, 2006, .25% of
the average daily net assets for the year ended September 30, 2007, .20% of the
average daily net assets for the year ended September 30, 2008, .15% of the
average daily net assets for the year ended September 30, 2009, .10% of the
average daily net assets for the year ended September 30, 2010, and .05% of the
average daily net assets for the year ended September 30, 2011. The adviser has
not agreed to reimburse Michigan Dividend Advantage (NZW) or Ohio Dividend
Advantage 2 (NBJ) for any portion of its fees and expenses beyond September 30,
2011.
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
63
Financial
Highlights (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------- -----------------------------
Net Net
Net Investment Investment
Realized/ Income to Income to
Beginning Net Unrealized Common Preferred
Net Asset Investment Investment Share- Share-
Value Income Gain (Loss) Total holders holders+
------------------------------------------------------------------------------------------------------------------------
ARIZONA PREMIUM INCOME (NAZ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) $14.77 $ .54 $(.50) $ .04 $(.43) $(.05)
2001 14.25 1.09 .50 1.59 (.83) (.23)
2000 14.90 1.06 (.61) .45 (.85) (.25)
1999 15.43 1.07 (.55) .52 (.84) (.21)
1998 15.34 1.05 .10 1.15 (.83) (.23)
1997 14.51 1.06 .81 1.87 (.82) (.22)
ARIZONA DIVIDEND ADVANTAGE (NFZ)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 14.37 .51 (.02) .49 (.42) (.07)
2001(b) 14.33 .44 .23 .67 (.35) (.08)
MICHIGAN QUALITY INCOME (NUM)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 15.32 .56 (.15) .41 (.44) (.06)
2001 14.54 1.16 .82 1.98 (.88) (.29)
2000 15.20 1.19 (.53) .66 (.92) (.30)
1999 15.91 1.15 (.63) .52 (.92) (.21)
1998 15.95 1.17 (.01) 1.16 (.95) (.24)
1997 15.28 1.18 .72 1.90 (.95) (.24)
MICHIGAN PREMIUM INCOME (NMP)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 15.31 .53 (.06) .47 (.42) (.06)
2001 14.24 1.07 1.07 2.14 (.82) (.25)
2000 14.68 1.07 (.41) .66 (.83) (.27)
1999 15.30 1.05 (.64) .41 (.82) (.21)
1998 15.14 1.04 .19 1.23 (.82) (.25)
1997 14.16 1.05 .97 2.02 (.80) (.24)
MICHIGAN DIVIDEND ADVANTAGE (NZW)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(c) 14.33 .26 (.17) .09 (.21) (.03)
===========================================================================================================================
Less Distributions Total Returns
-------------------------------------- --------------------
Offering
Capital Capital Costs and Based
Gains to Gains to Preferred Ending Based on
Common Preferred Share Net Ending on Net
Share- Share- Underwriting Asset Market Market Asset
holders holders+ Total Discounts Value Value Value** Value**
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA PREMIUM INCOME (NAZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) $(.04) $(.01) $ (.53) $ -- $14.28 $16.1500 1.90% (.12)%
2001 (.01) -- (1.07) -- 14.77 16.3200 17.77 9.74
2000 -- -- (1.10) -- 14.25 14.6250 (8.80) 1.61
1999 -- -- (1.05) -- 14.90 17.0000 8.67 1.92
1998 -- -- (1.06) -- 15.43 16.4375 12.18 6.14
1997 -- -- (1.04) -- 15.34 15.4375 17.81 11.74
ARIZONA DIVIDEND ADVANTAGE (NFZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) (.01) -- (.50) -- 14.36 15.3500 .87 2.96
2001(b) -- -- (.43) (.20) 14.37 15.6500 6.76 2.81
MICHIGAN QUALITY INCOME (NUM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) (.07) (.02) (.59) -- 15.14 15.5200 4.13 2.23
2001 (.02) (.01) (1.20) -- 15.32 15.4200 17.11 11.90
2000 (.08) (.02) (1.32) -- 14.54 14.0000 (9.92) 2.51
1999 (.06) (.02) (1.21) (.02) 15.20 16.6875 2.18 1.62
1998 (.01) -- (1.20) -- 15.91 17.3125 10.27 5.97
1997 (.03) (.01) (1.23) -- 15.95 16.6250 14.02 11.19
MICHIGAN PREMIUM INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) -- -- (.48) -- 15.30 14.6500 2.49 2.67
2001 -- -- (1.07) -- 15.31 14.7100 17.81 13.61
2000 -- -- (1.10) -- 14.24 13.2500 (6.16) 2.95
1999 -- -- (1.03) -- 14.68 15.0625 5.95 1.23
1998 -- -- (1.07) -- 15.30 15.0000 13.74 6.62
1997 -- -- (1.04) -- 15.14 13.9375 14.95 12.97
MICHIGAN DIVIDEND ADVANTAGE (NZW)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(c) -- -- (.24) (.19) 13.99 14.4200 (2.48) (.90)
====================================================================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------------------------- ----------------------------------------------
Ratio Ratio Ratio Ratio
of Net of Net of Net of Net
Ratio of Investment Ratio of Investment Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to Expenses Income to Expenses Income to
to Average Average to Average Average to Average Average to Average Average
Ending Net Assets Net Assets Total Total Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++ Shares++ Shares++ Preferred++ Preferred++
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA PREMIUM INCOME (NAZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) $ 92,843 1.28%* 7.31%* .87%* 4.98%* 1.26%* 7.32%* .86%* 4.99%*
2001 94,859 1.28 7.47 .87 5.07 1.27 7.48 .87 5.08
2000 92,287 1.26 7.58 .85 5.09 1.25 7.59 .84 5.10
1999 94,775 1.29 6.88 .89 4.75 1.29 6.88 .89 4.75
1998 96,546 1.28 6.85 .88 4.71 1.28 6.85 .88 4.71
1997 95,731 1.29 7.18 .87 4.86 1.29 7.18 .87 4.86
ARIZONA DIVIDEND ADVANTAGE (NFZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 34,077 1.55* 6.56* 1.01* 4.26* 1.07* 7.04* .69* 4.58*
2001(b) 34,072 1.43* 5.80* 1.00* 4.07* .95* 6.28* .66* 4.40*
MICHIGAN QUALITY INCOME (NUM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 269,049 1.27* 7.27* .83* 4.74* 1.27* 7.27* .83* 4.75*
2001 270,664 1.30 7.79 .84 5.03 1.29 7.80 .83 5.04
2000 261,429 1.29 8.29 .82 5.28 1.27 8.31 .81 5.29
1999 268,591 1.19 7.28 .82 5.02 1.19 7.28 .82 5.03
1998 261,259 1.19 7.35 .82 5.09 1.19 7.35 .82 5.09
1997 260,247 1.21 7.64 .83 5.23 1.21 7.64 .83 5.23
MICHIGAN PREMIUM INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 173,760 1.24* 6.76* .84* 4.59* 1.23* 6.77* .84* 4.60*
2001 173,784 1.24 7.24 .83 4.85 1.23 7.25 .82 4.86
2000 165,565 1.29 7.73 .85 5.07 1.28 7.74 .84 5.08
1999 168,851 1.29 6.82 .87 4.62 1.28 6.83 .87 4.63
1998 173,451 1.29 6.87 .87 4.64 1.29 6.87 .87 4.64
1997 172,275 1.29 7.27 .86 4.83 1.29 7.27 .86 4.83
MICHIGAN DIVIDEND ADVANTAGE (NZW)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(c) 44,787 1.22* 4.94* .91* 3.69* .81* 5.35* .61* 4.00*
====================================================================================================================================
Ratios/
Supplemental Municipal Auction Rate Cumulative
Data Preferred Stock Option at End of Period
------------ ---------------------------------------
Aggregate Liquidation
Portfolio Amount and Market Asset
Turnover Outstanding Value Coverage
Rate (000) Per Share Per Share
--------------------------------------------------------------------------
ARIZONA PREMIUM INCOME (NAZ)
--------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 5% $30,000 $25,000 $77,369
2001 18 30,000 25,000 79,049
2000 33 30,000 25,000 76,906
1999 6 30,000 25,000 78,979
1998 17 30,000 25,000 80,455
1997 11 30,000 25,000 79,776
ARIZONA DIVIDEND ADVANTAGE (NFZ)
--------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 23 12,000 25,000 70,994
2001(b) 21 12,000 25,000 70,984
MICHIGAN QUALITY INCOME (NUM)
--------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 13 94,000 25,000 71,555
2001 20 94,000 25,000 71,985
2000 25 94,000 25,000 69,529
1999 21 94,000 25,000 71,434
1998 8 80,000 25,000 81,644
1997 11 80,000 25,000 81,327
MICHIGAN PREMIUM INCOME (NMP)
--------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 6 56,000 25,000 77,572
2001 15 56,000 25,000 77,582
2000 34 56,000 25,000 73,913
1999 9 56,000 25,000 75,380
1998 6 56,000 25,000 77,433
1997 4 56,000 25,000 76,908
MICHIGAN DIVIDEND ADVANTAGE (NZW)
--------------------------------------------------------------------------
Year Ended 7/31:
2002(c) 24 16,000 25,000 69,979
=========================================================================
* Annualized.
** Total Investment Return on Market Value is the combination
of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in stock price per share.
Total Return on Net Asset Value is the combination of
reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per
share. Total returns are not annualized.
*** After custodian fee credit 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) For the six months ended January 31, 2002.
(b) For the period January 31, 2001 (commencement of operations)
through July 31, 2001.
(c) For the period September 25, 2001 (commencement of
operations) through January 31, 2002.
See accompanying notes to financial statements.
64-65 [spread]
Financial
Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------- -----------------------------
Net Net
Net Investment Investment
Realized/ Income to Income to
Beginning Net Unrealized Common Preferred
Net Asset Investment Investment Share- Share-
Value Income Gain (Loss) Total holders holders+
------------------------------------------------------------------------------------------------------------------------
OHIO QUALITY INCOME (NUO)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) $16.10 $ .58 $(.09) $ .49 $(.46) $(.08)
2001 15.52 1.20 .56 1.76 (.91) (.27)
2000 16.13 1.21 (.56) .65 (.97) (.29)
1999 16.65 1.21 (.51) .70 (.98) (.24)
1998 16.57 1.22 .09 1.31 (.97) (.26)
1997 15.69 1.23 .88 2.11 (.96) (.27)
OHIO DIVIDEND ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 14.57 .52 (.12) .40 (.43) (.07)
2001(b) 14.33 .29 .35 .64 (.22) (.04)
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(c) 14.33 .27 (.11) .16 (.21) (.02)
TEXAS QUALITY INCOME (NTX)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 15.16 .57 (.26) .31 (.45) (.05)
2001 14.26 1.16 .88 2.04 (.87) (.27)
2000 15.13 1.16 (.74) .42 (.91) (.27)
1999 15.90 1.16 (.72) .44 (.90) (.22)
1998 15.86 1.17 .07 1.24 (.93) (.27)
1997 15.06 1.19 .81 2.00 (.94) (.26)
========================================================================================================================
Less Distributions Total Returns
-------------------------------------- --------------------
Offering
Capital Capital Costs and Based
Gains to Gains to Preferred Ending Based on
Common Preferred Share Net Ending on Net
Share- Share- Underwriting Asset Market Market Asset
holders holders+ Total Discounts Value Value Value** Value**
------------------------------------------------------------------------------------------------------------------------------------
OHIO QUALITY INCOME (NUO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) $ -- $ -- $ (.54) $ -- $16.05 $17.4200 6.53% 2.55%
2001 -- -- (1.18) -- 16.10 16.8000 6.86 9.85
2000 -- -- (1.26) -- 15.52 16.6250 (1.80) 2.50
1999 -- -- (1.22) -- 16.13 18.0000 5.09 2.74
1998 -- -- (1.23) -- 16.65 18.0625 10.14 6.53
1997 -- -- (1.23) -- 16.57 17.3125 14.70 12.14
OHIO DIVIDEND ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) -- -- (.50) -- 14.47 15.1900 1.79 2.29
2001(b) -- -- (.26) (.14) 14.57 15.3500 3.77 3.21
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(c) -- -- (.23) (.17) 14.09 15.0000 1.39 (.22)
TEXAS QUALITY INCOME (NTX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) (.07) (.02) (.59) -- 14.88 14.8400 4.33 1.56
2001 -- -- (1.14) -- 15.16 14.7300 21.16 12.74
2000 (.09) (.02) (1.29) -- 14.26 12.9375 (7.93) 1.15
1999 (.07) (.02) (1.21) -- 15.13 15.1875 2.97 1.21
1998 -- -- (1.20) -- 15.90 15.6875 6.45 6.27
1997 -- -- (1.20) -- 15.86 15.6250 11.76 11.93
====================================================================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------------------------- ----------------------------------------------
Ratio Ratio Ratio Ratio
of Net of Net of Net of Net
Ratio of Investment Ratio of Investment Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to Expenses Income to Expenses Income to
to Average Average to Average Average to Average Average to Average Average
Ending Net Assets Net Assets Total Total Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++ Shares++ Shares++ Preferred++ Preferred++
------------------------------------------------------------------------------------------------------------------------------------
OHIO QUALITY INCOME (NUO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) $229,949 1.27%* 7.11%* .85%* 4.73%* 1.25%* 7.13%* .83%* 4.75%*
2001 230,164 1.32 7.58 .87 5.01 1.30 7.60 .86 5.02
2000 224,045 1.31 7.88 .85 5.15 1.29 7.89 .84 5.16
1999 228,961 1.26 7.26 .84 4.87 1.25 7.27 .84 4.88
1998 232,940 1.29 7.37 .86 4.92 1.29 7.37 .86 4.92
1997 231,232 1.30 7.73 .85 5.08 1.30 7.73 .85 5.08
OHIO DIVIDEND ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 91,979 1.30* 6.66* .86* 4.43* .83* 7.13* .55* 4.74*
2001(b) 92,424 1.15* 5.58* .87* 4.25* .71* 6.02* .54* 4.58*
HIO DIVIDEND ADVANTAGE 2 (NBJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(c) 67,852 1.16* 5.10* .87* 3.82* .75* 5.51* .56* 4.12*
TEXAS QUALITY INCOME (NTX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 209,512 1.22* 7.41* .82* 4.99* 1.21* 7.42* .82* 5.00*
2001 212,127 1.21 7.87 .81 5.25 1.19 7.88 .80 5.26
2000 203,637 1.27 8.18 .84 5.39 1.26 8.19 .83 5.40
1999 211,784 1.23 7.31 .84 5.00 1.23 7.32 .84 5.00
1998 218,669 1.22 7.40 .83 5.06 1.22 7.40 .83 5.06
1997 217,999 1.22 7.81 .83 5.27 1.22 7.81 .83 5.27
====================================================================================================================================
Ratios/
Supplemental Municipal Auction Rate Cumulative
Data Preferred Stock Option at End of Period
------------ ---------------------------------------
Aggregate Liquidation
Portfolio Amount and Market Asset
Turnover Outstanding Value Coverage
Rate (000) Per Share Per Share
--------------------------------------------------------------------------
OHIO QUALITY INCOME (NUO)
--------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 16% $77,000 $25,000 $74,659
2001 15 77,000 25,000 74,729
2000 11 77,000 25,000 72,742
1999 3 77,000 25,000 74,338
1998 9 77,000 25,000 75,630
1997 25 77,000 25,000 75,075
OHIO DIVIDEND ADVANTAGE (NXI)
--------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 6 31,000 25,000 74,177
2001(b) 4 31,000 25,000 74,535
OHIO DIVIDEND ADVANTAGE 2 (NBJ)
--------------------------------------------------------------------------
Year Ended 7/31:
2002(c) 32 24,000 25,000 70,679
TEXAS QUALITY INCOME (NTX)
--------------------------------------------------------------------------
Year Ended 7/31:
2002(a) 13 69,000 25,000 75,910
2001 24 69,000 25,000 76,858
2000 32 69,000 25,000 73,782
1999 19 69,000 25,000 76,733
1998 17 69,000 25,000 79,228
1997 13 69,000 25,000 78,985
==========================================================================
* Annualized.
** Total Investment Return on Market Value is the combination
of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in stock price per share.
Total Return on Net Asset Value is the combination of
reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per
share. Total returns are not annualized.
*** After custodian fee credit 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) For the six months ended January 31, 2002.
(b) For the period January 31, 2001 (commencement of
operations) through July 31, 2001.
(c) For the period September 25, 2001 (commencement of
operations) through January 31, 2002.
See accompanying notes to financial statements.
66-67 [spread]
Build Your Wealth
Automatically
sidebar: Nuveen makes reinvesting easy. A phone call is all it takes to set up
your reinvestment account.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
68
Fund
Information
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
JPMorgan Chase Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended January 31, 2002. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
69
Serving Investors
for Generations
PHOTO: John Nuveen, Sr.
John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
LOGO:
Invest well.
Look ahead.
LEAVE YOUR MARK.SM
NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com FSA-1-01-02